- Transdermal alcohol detection solutions provider SOBRsafe is implementing strategies to further strengthen its financial position
- During Q2 2024, the company eliminated $2.6 million in debt and improved its balance sheet with a capital infusion from the exercise of warrants
- SOBRsafe has increased its revenue by 44% from Q2 2023 as it continues to onboard new customers in 2024
SOBRsafe (NASDAQ: SOBR), the provider of next-generation transdermal alcohol detection solutions, has continued to implement plans and strategies to strengthen its financial position and restructure shareholder equity throughout the second quarter of its 2024 financial year, according to its recent Q2 2024 quarterly update (https://ibn.fm/ZWPa8).
In June the company entered into a Warrant Inducement agreement. The execution of the agreement provided the company with gross proceeds of approximately $2.8 million and net cash proceeds of approximately $2.4 million in exchange for the exercise of 10,319,163 applicable warrants to common shares and issuance of 20,638,326 new plain vanilla warrants to subscribe for and purchase from the company a similar number of shares (https://ibn.fm/63YRz).
The company also settled its remaining debt balances by converting outstanding notes payable into 4,358,957 shares of common stock. Terming these efforts as “very positive developments for the future of SOBRsafe,” Dave Gandini, CEO and Chairman, noted that the company had “significantly strengthened” its balance sheet with the infusion of capital and elimination of $2.6 million in debt.
“With the execution of the company’s strategy to strengthen the balance sheet through the acquisition of liquidity and reduction in future debt obligations, exchange of equity units with unfavorable terms to those conducive to our growth, and in retaining the company’s public market listing, we continue to fortify our financial position and improve our ability to raise capital in the future,” said SOBRsafe CFO Christopher Whitaker in the Q2 2024 update.
In addition to providing a comprehensive update on the status of its financial positioning, SOBRsafe shared its sales progress. In the second quarter of 2024, the company secured 17 customer accounts and, as a result, grew its 2024 new customer count to 33 new accounts, compared to three accounts booked in 2023. The new customers have driven SOBRsafe’s revenue up 44% compared to Q2 2023 figures, to $54,191.
Among the 17 new Q2 customer accounts are two new behavioral health customers, a Texas-based integrative care provider and a Colorado-based recovery services provider, who signed a hardware/software agreement with SOBRsafe (https://ibn.fm/NtsSF). Others include LightHouse Recovery Resources and Mountain House Recovery (https://ibn.fm/Rn44l) as well as a three-facility behavioral health provider (https://ibn.fm/fs4fG), all of whom signed hardware/software agreements.
The recent agreements exemplify the company’s focus on the growing behavioral health market and the progress made since entering this market late last year. “We first entered our core market of behavioral health in Q4 2023, where our technology is re-inventing the continuum of care by reducing redundancy, eliminating paper trails, creating digital records, improving billing processes, and most importantly, creating more time and focus for clinical practice,” said Gandini in the Q2 2024 quarterly update. “Consistent with our sales strategy, we are earning validation in the behavioral health market.”
Gandini noted that the validation it is progressively earning is the “first and most important step” in building its industry brand. Additionally, he went on, it “empowers the range of continued customer adoption – from single location providers with fewer than 25 patients to providers with multiple facilities and larger patient populations.”
SOBRsafe’s growing list of customers relies on its eponymous transdermal technology, which detects and instantaneously reports the presence of alcohol as emitted through a person’s skin. Unlike traditional alcohol monitoring and screening solutions, SOBRsafe’s technology does not require breath, blood, or urine samples.
The company’s alcohol detection technology is fitted into SOBRcheck, its point-of-care alcohol screening device, and SOBRsure, its continuous alcohol monitoring wristband. The technology is also supported by a powerful backend data platform that enables real-time reporting and, depending on the device, GPS tracking.
For more information, visit the company’s website at www.SOBRsafe.com.
NOTE TO INVESTORS: The latest news and updates relating to SOBR are available in the company’s newsroom at https://ibn.fm/SOBR
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