SOBR Safe Inc
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
SOBR$0.20-48.0%Stored close · as of Sep 15, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-12.
0001477932-24-004685
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001477932-24-007122
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 91 previous paragraphs and 92 current paragraphs.
50 unchanged; 31 reworded; 11 added; 10 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Reverse Stock Split
Current report
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. As a result, all common stock share amounts, as well as share amounts and exercise and conversion prices have been adjusted to reflect the reverse stock split.
Current report
Subsequent to the nine-months ended September 30, 2024, the following developments occurred and are reflective of the reverse stock split completed on October 2, 2024 as detailed below:
Current report
General and administrative expenses increased by $140,547, from $1,358,749 for the three-month period ended September 30, 2023, to $1,499,296 for the three-month period ended September 30, 2024. This increase is primarily attributable to an increase in legal and investor relations professional services expense of $185,790, marketing expenses of $43,855 and an accrual for a legal settlement of $85,000 offset by a decrease in payroll and employee benefit costs of $141,546 and other general and administrative expenses of $32,552.
Current report
Research and development expenses decreased by $19,908, to $194,466 for the three-months ended September 30, 2024, compared to $214,374 for the three months ended September 30, 2023. The 9% decrease in research and development is due to timing of product and software development project spend.
Current report
Loss on Extinguishment of Debt
Current report
Interest expense decreased by $173,106 from $179,014 for the three months ended September 30, 2023, to $5,908 for the three months ended September 30, 2024. The decrease in interest expense is due to the conversion of the outstanding convertible debt balances by the noteholders to equity during the second quarter of 2024.
Current report
Results of Operations for Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Current report
General and administrative expenses decreased by $532,291, or 11%, from $4,843,082 for the nine-month period ended September 30, 2023, to $4,310,791 for the nine-month period ended September 30, 2024. This decrease is primarily attributable to a decrease in employee payroll and benefits of $299,962, professional services spend for investor relations of $423,476, accounting services of $106,273, human resource services of $104,432, and travel expense of $108,309, offset by increases in legal services of $256,964, marketing expenses of $198,742, and other general administrative expenses of $54,955.
Current report
Loss on Extinguishment of Debt
Current report
Interest expense decreased by $161,604 from $613,324 for the nine months ended September 30, 2023, to $451,720 for the nine months ended September 30, 2024. The decrease in interest expense is due to the conversion of the outstanding convertible debt balances by the noteholders to equity during the second quarter of 2024.
Removed paragraphs (10)
Previous report
General and administrative expenses decreased by $503,450, from $1,899,383 for the three-month period ended June 30, 2023, to $1,395,933 for the three-month period ended June 30, 2024. This decrease is primarily attributable to a decrease in professional services spend by $317,188 a decrease in payroll costs by $88,125, and a decrease in travel expense by $41,172.
Previous report
Research and development expenses increased by $115,252, to $308,427 for the three months ended June 30, 2024, compared to $193,175 for the three months ended June 30, 2023. The increase in research and development is due to the Company making improvements to its existing SOBRsafe™ software platform and other device functionality improvements.
Previous report
Gain (Loss) on Extinguishment of Debt, net
Previous report
The Company had no notes payable conversion expense for the three months ended June 30, 2024.
Previous report
Interest expense was relatively consistent for the three-month periods ended June 30, 2024, and 2023, increasing by $4,171, from $209,125 for the three months ended June 30, 2023, to $213,296 for the three months ended June 30, 2024.
Previous report
Results of Operations for Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Previous report
General and administrative expenses decreased by $672,838, from $3,484,333 for the six-month period ended June 30, 2023, to $2,811,495 for the six-month period ended June 30, 2024. This decrease is primarily attributable to a decrease in professional services spend by $416,404 a decrease in payroll costs by $147,674, and a decrease in travel expense by $74,124.
Previous report
Gain (Loss) on Extinguishment of Debt, net
Previous report
Notes Payable – Conversion Expense
Previous report
Interest expense was relatively consistent for the six-month periods ended June 30, 2024, and 2023, increasing by $11,502 from $434,310 for the six months ended June 30, 2023, to $445,812 for the six months ended June 30, 2024.
Reworded paragraphs (31)
Previous wording
Our Management’s Discussion and Analysis of financial condition and results of operations contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national and local general economic and market conditions; demographic changes; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; raw material costs and availability; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission (“SEC”).
Current wording
Our Management’s Discussion and Analysis of Financial Condition and Results of Operations contain not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national and local general economic and market conditions; demographic changes; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; raw material costs and availability; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission (“SEC”).
Previous wording
On March 9, 2020, our Board of Directors approved the amendment to our Certificate of Incorporation and stockholders holding 52% of our then outstanding voting stock approved an amendment to our Articles of Incorporation. The Certificate of Amendment to our Certificate of Incorporation was for the purpose of, among other things, changing our name from “TransBiotec, Inc.” to “SOBR Safe, Inc.” The Certificate of Amendment to our Certificate of Incorporation became effective with the State of Delaware on April 24, 2020.
Current wording
On March 9, 2020, our Board of Directors approved the amendment to our Certificate of Incorporation and stockholders holding 52% of our then outstanding voting stock approved an amendment to our Certificate of Incorporation. The Certificate of Amendment to our Certificate of Incorporation was for the purpose of, among other things, changing our name from “TransBiotec, Inc.” to “SOBR Safe, Inc.” The Certificate of Amendment to our Certificate of Incorporation became effective with the State of Delaware on April 24, 2020.
Previous wording
We believe our device portfolio approach could yield a substantial repository of user data – a potentially monetizable asset for statistical analytics. The opportunity to collect data points over time could enable the development of business and insurance liability benchmarking, through artificial intelligence (AI), powerful guidance for perpetual safety improvement and associated cost savings capture. By demonstrating substance-free environments, organizations could deliver a data-driven argument for lowering insurance premiums. We could potentially partner with insurance providers to mandate use of the SOBRsafe™ devices and/or technology.
Current wording
We believe our device portfolio approach could yield a substantial repository of user data – a potentially monetizable asset for statistical analytics. The opportunity to collect data points over time could enable the development of business and insurance liability benchmarking, through artificial intelligence (AI), powerful guidance for perpetual safety improvement and associated cost savings capture. By demonstrating substance-free environments, organizations could deliver a data-driven argument for lowering insurance premiums. We could potentially partner with insurance providers to encourage use of the SOBRsafe™ devices and/or technology.
Previous wording
Our products continue to gain awareness and recognition through trade shows, media exposure, social media and product demonstrations. To generate sales, we have a three-part strategy: 1) direct sales to businesses and consumers, 2) enter into agreements with channel partners and 3) enter into licensing and integration agreements. We currently employ four highly experienced sales professionals facilitating direct sales and channel partner relationships. Licensing and integration opportunities with non-competitive third parties continue in preliminary stages. We anticipate hiring an expert in licensing and integrations in 2024 to formulate and execute an expansion plan.
Current wording
Our products continue to gain awareness and recognition through trade shows, media exposure, social media and product demonstrations. To generate sales, we have a three-part strategy: 1) direct sales to businesses and consumers, 2) enter into agreements with channel partners and 3) enter into licensing and integration agreements. We currently employ four highly experienced sales professionals facilitating direct sales and channel partner relationships. Licensing and integration opportunities with non-competitive third parties continue in preliminary stages.
Previous wording
During the six-months ended June 30, 2024, the following developments occurred:
Current wording
During the nine-months ended September 30, 2024, the following developments occurred:
Previous wording
The Company progressed to commercial production of its SOBRsure TM device in the third quarter of 2023 and began executing customer agreements. Revenues of $102,181 for the six-month period ended June 30, 2024, have increased by $16,712 as compared to the prior year period of $85,469. This increase is primarily driven by increased sales of our SOBRsure TM device of $35,257, offset by decreased sales of our SOBRcheck TMdevice of $13,458.
Current wording
The Company progressed to commercial production of its SOBRsure TM device in the third quarter of 2023 and began executing customer agreements. Revenues of $46,129 for the three-month period ended September 30, 2024, have increased by $9,855 as compared to the prior year period of $36,274. This increase of $9,855 is primarily driven by revenues derived from SOBRsure TM device sales and SaaS user subscriptions during the 2024 period.
Previous wording
The cost of goods and services for the three months ended June 30, 2024, was $41,156 resulting in a gross profit of $13,035 and a gross margin of 24%. The increased cost of goods and services for the period was due to one-time write-offs of defective SOBRcheck TM devices of $17,434. Without these one-time write-offs, the normalized gross margin would be 56%. Due to the limited history of generating revenue, the gross profit and gross margin for the three months ended June 30, 2024, and 2023 may not be indicative of future planned or actual performance of the Company, its product lines or services.
Current wording
The cost of goods and services for the three-months ended September 30, 2024, was $15,992 resulting in a gross profit of $30,137 and a gross margin of 65%. The cost of goods and services for the three months ended September 30, 2023, was $20,195 resulting in a gross profit of $16,079 and a gross margin of 44%. The increase in gross profit margin of $ 14,058 was due to a higher proportion of revenue being attributed to recurring SaaS subscriptions, and SOBRsure TM device sales and user subscriptions. Due to the limited history of generating revenue, the gross profit and gross margin for the three months ended September 30, 2024, and 2023 may not be indicative of future planned or actual performance of the Company, its product lines or SaaS services.
Previous wording
The Company had stock-based compensation expense of $185,910 for the three months ended June 30, 2024, compared to $627,762 for the three months ended June 30, 2023. The reduction in stock-based compensation expense is due to previously issued awards becoming fully vested and no issuance of new awards in 2024.
Current wording
The Company had stock-based compensation expense of $184,243 for the three months ended September 30, 2024, compared to $509,999 for the three months ended September 30, 2023. The reduction in stock-based compensation expense is due to previously issued awards becoming fully vested or forfeited and no issuance of new awards in 2024.
Previous wording
Other income, net decreased by $47,430 from $60,587 for the three months ended June 30, 2023 to $13,157 for the three months ended June 30, 2024. Other income consists primarily of interest income earned on cash deposits. The decrease is due to less cash on hand in 2024 when compared to 2023.
Current wording
Other income, net decreased by $36,111 from $48,677 for the three months ended September 30, 2023 to $12,566 for the three months ended September 30, 2024. Other income consists primarily of interest income earned on cash deposits. The decrease is due to less cash held in liquid investments in 2024 as compared to the same period in 2023.
Previous wording
Our operating loss decreased by $822,060 from $2,699,295 for the three months ended June 30, 2023, to $1,877,235 for the three months ended June 30, 2024. The change in our operating loss for the three months ended June 30, 2024, compared to the same prior year period, is primarily a result in a reduction in general and administrative expense due to less spend on travel, professional services, and payroll. Stock-based compensation expense also decreased due to rewards fully vesting.
Current wording
Our operating loss of $1,847,868 for the three months ended September 30, 2024 decreased by $219,175, or 11%, from $2,067,043 for the three months ended September 30, 2023. The change in our operating loss for the three months ended September 30, 2024, compared to the same prior year period, is primarily a result in a reduction in employee payroll and benefits expense, and stock-based compensation expense offset by an increase in increased professional services and marketing expenses as detailed above.
Previous wording
Our net loss decreased by $796,584 from $2,873,958 for the three-month period ended June 30, 2023, to $2,077,374 for the three-month period ended June 30, 2024. This change was primarily driven by a reduction in general and administrative expenses and stock-based compensation expense as detailed above. This has been slightly offset by a reduction in interest income as detailed above.
Current wording
Our net loss decreased by $356,170, or 16%, from $2,197,380 for the three-month period ended September 30, 2023, to $1,841,210 for the three-month period ended September 30, 2024. This change was primarily driven by a reduction in operating expenses as detailed above, a reduction in interest income and a reduction in interest expense due to the conversion of the outstanding convertible debt balances by the noteholders to equity during the second quarter of 2024.
Previous wording
The Company progressed to commercial production of its SOBRsure TM device in the third quarter of 2023 and began executing customer agreements. Revenues of $54,191 for the three-month period ended June 30, 2024, have increased by $16,590 as compared to the prior year period of $37,601. This increase is primarily driven by increased sales of our SOBRsure TM device of $21,993, offset by decreased sales of our SOBRcheck TMdevice of $2,163.
Current wording
The Company progressed to commercial production of its SOBRsure TM device in the third quarter of 2023 and began executing customer agreements. Revenues of $148,310 for the nine-month period ended September 30, 2024, have increased by $26,567, or 22%, as compared to the prior year period of $121,743. This increase is primarily driven by revenues derived from our SOBRsure TM device sales and SaaS user subscriptions of $66,267, offset by decreased revenues from our SOBRcheck TMdevice sales and SaaS subscriptions of $36,211.
Previous wording
The cost of goods and services for the six months ended June 30, 2024 was $65,937 resulting in a gross profit of $36,244 and a gross margin of 35%. The cost of goods and services for the six months ended June 30, 2023, was $46,640 resulting in a gross profit of $38,829 and a gross margin of 45%. The increased cost of goods and services for the period was due to one-time write-offs of defective SOBRcheck TM devices of $21,284. Without these one-time write-offs, the normalized gross margin would be 58%. Due to the limited history of generating revenue, the gross profit and gross margins for the six months ended June 30, 2024, and 2023 may not be indicative of future planned or actual performance of the Company, its product lines or services.
Current wording
The cost of goods and services for the nine months ended September 30, 2024 was $81,929 resulting in a gross profit of $66,381 and a gross margin of 45%. The cost of goods and services for the nine months ended September 30, 2023, was $66,835 resulting in a gross profit of $54,908 and a gross margin of 45%. Due to the limited history of generating revenue, the gross profit and gross margins for the nine months ended September 30, 2024, and 2023, may not be indicative of future planned or actual performance of the Company, its product lines or SaaS services.
Previous wording
The Company had stock-based compensation expense of $400,308 for the six months ended June 30, 2024, compared to $1,326,675 for the six months ended June 30, 2023. The reduction in stock-based compensation expense is due to previously issued awards becoming fully vested and no issuance of new awards in 2024.
Current wording
The Company had stock-based compensation expense of $584,551 for the nine months ended September 30, 2024, compared to $1,836,674 for the nine months ended September 30, 2023. The reduction in stock-based compensation expense is due to previously issued awards becoming fully vested or forfeited, and no issuance of new awards in 2024.
Previous wording
Research and development expenses for the six months ended June 30, 2024, and 2023, increased by $36,368, from $374,093 for the six months ended June 30, 2023, to $410,461 for the six months ended June 30, 2024. The increase in research and development is due to the Company making improvements to its existing SOBRsafe™ software platform and other device functionality improvements.
Current wording
Research and development expenses for the nine months ended September 30, 2024, and 2023, increased by $16,460, from $588,467 for the nine months ended September 30, 2023, to $604,927 for the nine months ended September 30, 2024. The increase in product and software research and development is due to the Company’s continuous improvement to its existing SOBRsafe™ software platform and related SaaS offerings, and other device functionality.
Previous wording
Other income, net decreased by $96,645 from $131,057 for the six months ended June 30, 2023 to $34,412 for the six months ended June 30, 2024. Other income consists primarily of interest income earned on cash deposits. The decrease is due to less cash on hand in 2024 when compared to 2023.
Current wording
Other income, net decreased by $132,756 from $179,734 for the nine months ended September 30, 2023 to $46,978 for the nine months ended September 30, 2024. Other income consists primarily of interest income earned on cash deposits. The decrease is due to less cash held in liquid investments in 2024 as compared to the same period in 2023.
Previous wording
During the six months ended June 30, 2023, the Company recorded a loss on extinguishment of debt of $26,125 which related to the early payoff of convertible notes issued in 2021.
Current wording
During the nine months ended September 30, 2023, the Company recorded a loss on extinguishment of debt of $26,125 which related to the early payoff of convertible notes issued in 2021.
Previous wording
Notes payable conversion expense was $585,875 for the six months ended June 30, 2024. This expense relates to the convertible debt inducement that occurred on March 4, 2024.
Current wording
Notes payable conversion expense was $585,875 for the nine months ended September 30, 2024. This expense relates to the Convertible Debt Inducement completed on March 4, 2024.
Previous wording
Our operating loss decreased by $1,560,252 from $5,146,272 for the six-month period ended June 30, 2023, compared to $3,586,020 for the six-month period ended June 30, 2024. The change in our operating loss for the six months ended June 30, 2024, compared to the same prior year period, is primarily a result in a reduction in general and administrative expense due to less spend on travel, professional services, and payroll. Stock-based compensation expense also decreased due to rewards fully vesting.
Current wording
Our operating loss of $5,433,888 for the nine-month period ended September 30, 2024 decreased by $1,779,427, or 25%, from $7,213,315 for the nine-month period ended September 30, 2023. The change in our operating loss for the nine months ended September 30, 2024, compared to the same prior year period, is primarily a result in a reduction employee payroll and benefits, general professional services, travel expense, stock-based compensation expense, offset by increases in legal services, marketing expense, research and development expense, and general administrative expense as detailed above.
Previous wording
Our net loss decreased by $892,355 from $5,475,650 for the six-month period ended June 30, 2023, compared to $4,583,295 for the six-month period ended June 30, 2024. The decrease in the operating loss of $1,560,252 for the six-month period ended June 30, 2024, from the prior year period was offset by a one-time expense incurred for notes payable conversion as well as a reduction in interest income as detailed above.
Current wording
Our net loss of $6,424,505 for the nine-month period ended September 30, 2024 decreased by $1,248,525, or 16%, from $7,673,030 for the nine-month period ended September 30, 2023. The decrease from the operating loss of $1,779,427 as stated above, was offset by a one-time expense incurred for notes payable conversion as well as a reduction in interest income as detailed above.
Previous wording
Liquidity and Capital Resources for Six Months Ended June 30, 2024 Compared to December 31, 2023
Current wording
Liquidity and Capital Resources for Nine Months Ended September 30, 2024 Compared to December 31, 2023
Previous wording
During the six-months ended June 30, 2024, and 2023, the Company has incurred recurring losses from operations. Future capital requirements will depend on many factors including the Company’s ability to sell and develop products, generate cash flow from operations, and assess competing market developments. The Company will need additional capital in the near term. Our cash on hand as of June 30, 2024, was $2,166,404 and our current normalized operating cash flow burn rate is approximately $475,000 per month.
Current wording
During the nine-months ended September 30, 2024, and 2023, the Company has incurred recurring losses from operations. Future capital requirements will depend on many factors including the Company’s ability to sell and develop products, generate cash flow from operations, and assess competing market developments. The Company will need additional capital in the near term. Our cash on hand as of September 30, 2024, was $304,537 and our current normalized operating cash flow burn rate is approximately $550,000 per month.
Previous wording
Management believes that cash balances at June 30, 2024 do not provide adequate operating capital for operating activities for the twelve months from the date these financial statements are issued. However, management believes actions presently being taken to generate product and services revenues, and positive cash flows, in addition to the Company’s plans and ability to access capital sources and implement additional expense reduction tactics to preserve working capital, provide the opportunity for the Company to continue as a going concern. These plans are contingent upon the actions to be performed by the Company and these conditions have not been met on or before June 30, 2024. As such, substantial doubt about the entity’s ability to continue as a going concern has not been alleviated as of June 30, 2024.
Current wording
Management believes that cash balances at September 30, 2024 do not provide adequate operating capital for operating activities for the twelve months from the date these financial statements are issued. However, management believes actions presently being taken to generate product and services revenues, and positive cash flows, in addition to the Company’s ability to access capital sources and implement additional expense reduction tactics to preserve working capital, provide the opportunity for the Company to continue as a going concern. These plans are contingent upon the actions to be performed by the Company and these conditions have not been met on or before September 30, 2024. As such, substantial doubt about the entity’s ability to continue as a going concern has not been alleviated as of September 30, 2024.
Previous wording
Our total current assets and total assets decreased as of June 30, 2024, as compared to December 31, 2023, primarily due to use of cash to support our negative cash flow from operations.
Current wording
Our total current assets and total assets decreased as of September 30, 2024, as compared to December 31, 2023, primarily due to use of cash to support our negative cash flow from operations of approximately $2,500,000 accompanied by scheduled amortization reducing the balances of our intellectual technology and right of use assets by approximately $370,000.
Previous wording
Our total current liabilities and total liabilities decreased as of June 30, 2024, as compared to December 31, 2023. The decrease was due to the conversion of the entire convertible debt balance due in March 2025 to equity during the quarter.
Current wording
Our total current liabilities and total liabilities decreased as of September 30, 2024, as compared to December 31, 2023. The decrease in total liabilities is primarily due to the conversion of the outstanding convertible debt balances and related interest expense due in March 2025 by the noteholders to equity during the second quarter of 2024 of approximately $2,450,000. Other decreases include a reduction in accounts payable and accrued expenses of approximately $510,000, offset by current notes payable for insurance premiums of approximately $162,000.
Previous wording
We had net cash used in operating activities of $3,049,161 for the six-month period ended June 30, 2024, as compared to net cash used in operating activities of $3,262,642 for the six-month period ended June 30, 2023. For the period in 2024, the net cash used in operating activities consisted primarily of our net loss of $4,583,295, offset by non-cash expense items including amortization of $192,732, amortization of debt discounts of $237,250, stock-based compensation expense of $400,307, non-cash interest expense of $336,510, non-cash lease expense of $44,284, non-cash conversion expense of $585,875 and changes in our assets and liabilities for accounts receivable of ($9,708), inventory of $60,844, prepaid expenses of $81,051, accrued expenses of ($208,212), accrued interest payable of ($128,214), and operating lease liabilities of ($46,872).
Current wording
We had net cash used in operating activities of $4,911,028 for the nine-month period ended September 30, 2024, as compared to net cash used in operating activities of $4,705,018 for the nine-month period ended September 30, 2023. For the period in 2024, the net cash used in operating activities consisted primarily of our net loss of $6,424,505, offset by non-cash expense items including amortization of $289,098, amortization of debt discounts of $237,250, stock-based compensation expense of $584,551, non-cash interest expense of $336,510, non-cash lease expense of $67,315, non-cash conversion expense of $585,875 and changes in our assets and liabilities for accounts receivable of ($20,573), inventory of $72,798, prepaid expenses of $86,566, other assets of ($21,534), accounts payable of ($200,355), accrued expenses of ($306,941), accrued interest payable of ($126,086), bad debt expense of $202, and operating lease liabilities of ($71,199).
Previous wording
For the period in 2023, the net cash used in operating activities consisted primarily of our net loss of $5,475,650, offset by non-cash expense items including amortization of $192,732, amortization of interest of $286,346, loss on extinguishment of debt of $26,125, stock warrants expense of $182,901, stock-based compensation expense of $1,326,675, non-cash interest expense of $29,638, non-cash lease expense of $13,747, bad debt expense of $1,132 and changes in our assets and liabilities for accounts receivable of ($1,938), inventory of ($47,867), prepaid expenses of $398,521, other assets of ($15,931), accounts payable of $341,425, accrued expenses of $1,185, accrued interest payable of $(324,083), and operating lease liabilities of ($14,699).
Current wording
For the period in 2023, the net cash used in operating activities consisted primarily of our net loss of $7,673,030, offset by non-cash expense items including amortization of $289,098, amortization of debt discounts of $417,647, loss on extinguishment of debt of $26,125, stock-based compensation expense of $1,836,674, non-cash interest expense of $29,638, non-cash lease expense of $34,714, bad debt expense of $1,132 and changes in our assets and liabilities for accounts receivable of $3,456, inventory of ($51,721), prepaid expenses of $571,129, other assets of ($18,411), accounts payable of $106,054, accrued expenses of $13,171, accrued interest payable of ($281,079), related party payables of ($1,887), and operating lease liabilities of ($7,728).
Previous wording
We had no cash provided by or used in investing activities during the six-month periods ended June 30, 2024, or June 30, 2023.
Current wording
We had no cash provided by or used in investing activities during the nine-month periods ended September 30, 2024, or September 30, 2023.
Previous wording
We received gross proceeds from the exercise of warrants of $2,786,174 during the six-month period ended June 30, 2024, which was offset by transactional costs of ($360,756).
Current wording
We received gross proceeds from the exercise of warrants of $2,786,174 during the nine-month period ended September 30, 2024, which was offset by transactional costs of ($360,756).
Previous wording
During the six-month period ended June 30, 2023, we received gross proceeds from the issuance of convertible notes payable of $3,000,001 which was offset by issuance costs of $537,750. Payments of approximately $2,100,000 were made toward the principal and accrued interest amounts for matured convertible notes payable issued in 2021 to both related and non-related parties.
Current wording
During the nine-month period ended September 30, 2023, we received gross proceeds from the issuance of convertible notes payable of $3,000,001 which was offset by issuance costs of $537,750. Payments of $2,211,661 were made toward the principal and accrued interest amounts for matured convertible notes payable issued in 2021, due in March 2025, to both related and non-related parties.
Previous wording
There have been no recent accounting pronouncements or changes in accounting pronouncements during the period ended June 30, 2024, or subsequently thereto, that we believe are of potential significance to our financial statements.
Current wording
There have been no recent accounting pronouncements or changes in accounting pronouncements during the nine-month period ended September 30, 2024, or subsequently thereto, that we believe are of potential significance to our financial statements.