SOBR Safe (SOBR) investor relations material

Executive summary

• Revenue for Q1 2026 was $79,003, down 8.8% year-over-year, primarily due to inventory constraints and deferred revenue, partially offset by increased software subscription sales.

• Net loss for Q1 2026 increased to $2,292,922 from $1,879,055 in Q1 2025, driven by higher general and administrative expenses and lower interest income.

• The company continues to operate as a single segment focused on non-invasive alcohol detection and monitoring solutions, with ongoing product innovation and expanded marketing efforts.

• A merger agreement with Clean World Ventures, Inc. was signed in April 2026, expected to close in Q3 2026, with CWV shareholders to own 98% of the combined entity.

Financial highlights

• Gross profit for Q1 2026 was $44,918, with a gross margin of 56.9%, compared to $50,964 and 58.8% in Q1 2025.

• General and administrative expenses rose 27.4% year-over-year to $2,323,989, mainly due to increased marketing, payroll, legal, and consulting costs.

• Stock-based compensation expense dropped significantly to $7,243 from $139,678 in the prior year, reflecting completed vesting and cancellations.

• Research and development expenses decreased 42.1% to $23,693, as focus shifted to software improvements over hardware development.

• Cash as of March 31, 2026, was $2,106,473, down from $4,759,370 at year-end 2025.

• Net cash used in operating activities for Q1 2026 was $2,591,201, up from $1,705,497 in Q1 2025.

Outlook and guidance

• Management expects existing cash resources will not be sufficient to fund operations for the next twelve months and is seeking additional capital.

• Anticipates increased revenue with the release of the second-generation SOBRsure device and expanded marketing.

• The merger with Clean World Ventures is expected to provide future liquidity and strategic support, but completion is subject to significant conditions.