SOBR Safe, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable improvements in revenue and gross profit compared to the same periods in 2023. For the third quarter of 2024, revenues reached $46,129, a 27% increase from $36,274 in Q3 2023. Gross profit for the same period was $30,137, up from $16,079, resulting in a gross margin of 65%, compared to 44% in the prior year. For the nine-month period, revenues totaled $148,310, reflecting a 22% increase from $121,743 in 2023, with gross profit remaining stable at $66,381.

Despite these revenue gains, the company continued to experience significant operating losses. The operating loss for Q3 2024 was $(1,847,868), an improvement from $(2,067,043) in Q3 2023. For the nine-month period, the operating loss decreased to $(5,433,888) from $(7,213,315) in the previous year. The net loss for Q3 2024 was $(1,841,210), down from $(2,197,380) in Q3 2023, while the nine-month net loss improved to $(6,424,505) from $(7,673,030).

The company’s total operating expenses for the nine months ended September 30, 2024, were $5,500,269, a decrease from $7,268,223 in 2023. General and administrative expenses also saw a reduction, falling by 11% to $4,310,791. However, stock-based compensation expenses decreased significantly, totaling $584,551 for the nine months ended September 30, 2024, compared to $1,836,674 in 2023.

SOBR Safe, which focuses on non-invasive alcohol detection technologies, has been actively managing its financial position. As of September 30, 2024, the company reported an accumulated deficit of approximately $(96,100,000) and negative working capital of $(265,000). The company had cash balances of approximately $300,000 and experienced negative cash flows from operating activities of about $(4,900,000) during the nine-month period.

Strategically, the company has engaged in several financial maneuvers, including a reverse stock split of 1-for-110 effective October 2, 2024, and a private placement transaction that raised $8.2 million on October 7, 2024. Additionally, the company has been focusing on cost reduction measures and exploring opportunities in the multi-vertical Behavioral Health space to enhance revenue generation.

SOBR Safe continues to face challenges, including defaults on several notes payable and ongoing legal proceedings, but management remains committed to improving operational efficiency and financial stability.