SOBRHIGH SIGNALFINANCIAL10-K

SOBR experienced significant financial deterioration with assets declining by over 40% while operating losses deepened and share count nearly doubled, indicating potential dilutive financing activity.

The combination of substantially reduced assets, deeper operating losses, and an 85% increase in outstanding shares suggests the company underwent dilutive equity raises to fund operations while burning through cash. The removal of convertible note dilution risks from the risk factors, coupled with dramatically lower interest expense, indicates these instruments may have been converted or retired, contributing to the share count increase.

Comparing 2026-04-10 vs 2025-04-15View on EDGAR →
FINANCIAL ANALYSIS

SOBR's financial position weakened considerably with total assets declining 41% to $6.6M and current assets falling to $5.2M, while operating losses expanded from $7.7M to $9.2M despite meaningfully reduced R&D spending. The 95% decline in interest expense alongside the doubling of share count suggests convertible debt was converted to equity, providing temporary liquidity relief but at significant dilution to existing shareholders. The overall picture reflects a cash-constrained technology company managing liquidity through dilutive financing while struggling to control operating losses.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
-95.2%
$458K→$22K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

R&D Expense
P&L
-55.9%
$748K→$330K

R&D spending cut 55.9% — could signal cost discipline or concerning reduction in innovation investment.

Stockholders Equity
Balance Sheet
-49.5%
$9.9M→$5.0M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Accounts Receivable
Balance Sheet
+46.8%
$24K→$36K

Receivables surged 46.8% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Current Assets
Balance Sheet
-41%
$8.9M→$5.2M

Current assets declined 41% — monitor working capital adequacy and short-term liquidity.

Total Assets
Balance Sheet
-40.7%
$11.2M→$6.6M

Total assets contracted 40.7% — asset sales, write-downs, or balance sheet optimization underway.

Inventory
Balance Sheet
-34.8%
$225K→$147K

Inventory drawn down 34.8% — strong sell-through or deliberate destocking; watch for supply constraints.

Current Liabilities
Balance Sheet
+32.8%
$1.3M→$1.7M

Current liabilities surged 32.8% — significant near-term obligations; verify ability to meet short-term debt.

Total Liabilities
Balance Sheet
+23.9%
$1.4M→$1.7M

Liabilities increased 23.9% — monitor debt-to-equity ratio and interest coverage.

Operating Income
P&L
-19.3%
-$7.7M→-$9.2M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

LANGUAGE CHANGES
NEW — 2026-04-10
PRIOR — 2025-04-15
ADDED
As of April 10, 2026, there were 2,806,579 shares of common stock, $0.00001 par value, issued and outstanding.
28 ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
48 ITEM 13 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE .
SUMMARY RISK FACTORS General Risks Related to Our Business Our business plan, which is focused on the development and commercialization of personal alcohol awareness tracking devices, is dependent upon our SOBRsafe TM technology.
Our stock price could become more volatile, and your investment could lose value.
We may not be able to maintain our listing on the Nasdaq Capital Market ( Nasdaq ), which could have a material adverse effect on us and our stockholders.
REVERSE STOCK SPLIT At the open of market on April 4, 2025, our 1-for-10 reverse split of our common stock went effective with Nasdaq.
This reverse stock split did not have any impact on the number of authorized shares of common stock, which remains at 100,000,000 shares.
Our non-invasive technologies are integrated within our scalable and patent-pending software platform, SOBRsafe, producing statistical, measurable business and user data.
Our SOBRsure device is a patent-pending, fitness-style wearable band with a personal alcohol awareness tracking solution intended for discrete, low-profile and voluntary use providing qualified, real-time alcohol tracking and GPS tracking.
REMOVED
As of April 15, 2025, there were 1,516,145 shares of common stock, $0.00001 par value, issued and outstanding.
27 ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
47 ITEM 13 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
SUMMARY RISK FACTORS General Risks Related to Our Business Our business plan, which is focused on the development and commercialization of alcohol monitoring and detection devices, is dependent upon our SOBRsafe technology.
Conversion of our convertible senior notes into common stock may dilute the ownership interests of existing stockholders or may otherwise depress the price of our common stock.
REVERSE STOCK SPLIT At the open of market on April 4, 2025, our 1-for-10 reverse split of our common stock went effective with Nasdaq Capital Markets.
At the open of market on October 2, 2024, our 1-for-110 reverse split of our common stock went effective with Nasdaq Capital Markets.
At the open of market on April 28, 2023, our 1-for-3 reverse split of our common stock went effective with the OTC Markets.
These reverse stock splits did not have any impact on the number of authorized shares of Common Stock which remains at 100,000,000 shares.
Our non-invasive technologies are integrated within our scalable and patent-pending software platform, SOBRsafe , producing statistical, measurable business and user data.
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