SOBR Safe Reports 35% Revenue Growth but Net Loss Reduces to $8.6 Million for Fiscal Year 2024

SOBR Safe, Inc. reported a revenue increase of 35% for the fiscal year ending December 31, 2024, generating $212,736 compared to $157,292 in the previous year. Despite this growth, the company experienced a net loss of $8.6 million, a reduction from the $10.2 million loss reported in 2023. The decrease in net loss was attributed to lower operating expenses, which fell to $7.7 million from $9.7 million, primarily due to reduced stock-based compensation and research and development costs. The gross profit margin also saw a significant decline, dropping to 9% from 39.6%, largely due to inventory disposals related to the transition from first-generation to second-generation products.

In terms of operational developments, SOBR Safe has made strides in product offerings, launching its second-generation SOBRsure device in November 2024. The company reported 127 active subscribers in its business-to-consumer channel and 20 enterprise subscribers with a total of 1,534 users. The company’s marketing strategy includes direct sales, channel partnerships, and licensing agreements, with a focus on expanding its customer base and enhancing product awareness through various promotional activities.

SOBR Safe's financial position improved significantly, with cash reserves increasing to $8.4 million as of December 31, 2024, up from $2.8 million the previous year. This increase was bolstered by a private placement that raised $8.2 million in October 2024. The company also successfully converted a substantial portion of its convertible debt into equity, which contributed to a reduction in total liabilities from $4.2 million in 2023 to $1.4 million in 2024. The company’s accumulated deficit stood at approximately $98.3 million, reflecting its ongoing challenges in achieving profitability.

Strategically, SOBR Safe has undergone significant organizational changes, including a reverse stock split of 1-for-110 in October 2024 and a subsequent 1-for-10 split in April 2025, aimed at maintaining compliance with Nasdaq listing requirements. The company has also focused on enhancing its internal controls and governance, with a commitment to improving its operational efficiency and financial reporting processes. Looking ahead, SOBR Safe anticipates that the release of its new products and a comprehensive marketing plan will drive revenue growth and improve cash flow, although it acknowledges the need for ongoing capital to support its operations and expansion efforts.