SOBR Safe, Inc.: Form 10-Q for the period ended Sep 30, 2023
Filed with the SEC on Nov 8, 2023 and accepted by EDGAR at Nov 8, 2023, 17:25 ET.
Management's discussion and analysis
As filed, 28,335 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Disclaimer Regarding Forward Looking Statements
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”).
Although the forward-looking statements in this Quarterly Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.
Corporate Overview
On September 19, 2011, we, as Imagine Media, Ltd., a Delaware corporation, acquired approximately 52% of the outstanding shares of TransBiotec, Inc. (“TBT”), a California corporation, from TBT’s directors in exchange for 124,439 shares of our common stock. In January 2012, our Board of Directors amended our Certificate of Incorporation changing our name from Imagine Media, Ltd. to TransBiotec, Inc., and we acquired approximately 45% of the remaining outstanding shares of TBT in exchange for 109,979 shares of our common stock. With the acquisitions in September 2011 and January 2012 of TBT common stock, we own approximately 99% of the outstanding shares of TBT. As a result of the acquisitions, TBT’s business is our business, and, unless otherwise indicated, any references to “we” or “us” include the business and operations of TBT.
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.
Pursuant to approval of an application with Nasdaq to uplist our common stock to their exchange under the ticker symbol “SOBR,” our common stock began trading and quoted on the Nasdaq exchange on May 16, 2022. Prior to this uplist to the Nasdaq exchange, our common stock was quoted on the “OTCQB” tier of the OTC Markets under the ticker symbol “SOBR.”
Our corporate offices are located at 6400 South Fiddlers Green Circle, Suite 1400, Greenwood Village, Colorado 80111, telephone number (844) 762-7723.
The following discussion:
- summarizes our plan of operation; and
- analyzes our financial condition and the results of our operations for the nine months ended September 30, 2023.
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This discussion and analysis should be read in conjunction with our financial statements included as part of this Quarterly Report on Form 10-Q, as well as our financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022.
Business Operations
We provide a non-invasive technology that quickly and safely identifies the presence of alcohol in individuals. This technology is integrated within our robust and scalable data platform, producing statistical and measurable user and business data. Our mission is to save lives, increase productivity, create significant economic benefits and positively impact behavior. To that end, we developed the scalable, patent-pending SOBRsafe™ software platform for non-invasive alcohol detection and identity verification, a solution that has applications in behavioral health, fleet & facility safety, youth drivers, and judicial markets.
SOBRcheck™ is our stationary identification and alcohol monitoring product. When installed, SOBRcheck™ enables a rapid, hygienic biometric finger scan to authenticate ID and determine the presence or absence of alcohol. The SOBRcheck™ product provides the administrator with real-time results, delivered securely, to manage their existing substance abuse policy more efficiently. Our device is meant to be a specific point in time, quick test for the presence of alcohol, with the results to be used as a complementary data source in support of the organization’s alcohol policies. If alcohol is detected by the device, then our customers follow up in accordance with its own policies, which could include additional tests via a blood test or breathalyzer (we will not provide these devices). We will gather de-identified information regarding Pass/Fail tests for use in determining trends in a company and/or industry, etc., but such information does not include any specific data about the individual user, only whether a pass or fail result occurred.
Our second device, the SOBRsure™, is our transdermal, alcohol-detecting wearable wristband that uses the same SOBRsafe™ hardware/software technology platform for ongoing, real-time alcohol monitoring and GPS tracking. The primary intended applications include behavioral health, commercial fleets, and youth drivers. The wearable wristband is in commercial production and became available for sale in late September 2023.
Our SOBRsafe™ technology can also be deployed across numerous additional devices and form factors for various uses; among those we are currently exploring include possible integrations with existing telematics systems, and it could be licensed by non-competitive third parties.
Design, manufacturing, quality testing and distribution for all SOBRsafe™ devices takes place in the United States.
Our SOBRcheck™ and SOBRsureTM revenue model consists of two components: a hardware device purchase price and a recurring monthly SaaS subscription fee per user.
Business Outlook and Challenges
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, 2) distributors and sales agents and 3) licensing & integration. We currently employ highly experienced sales professionals and multiple targeted distributors and industry-expert sales agents actively introducing our solutions to established companies in drug and alcohol testing, behavioral health, justice, workplace, fleet, telematics, and oil and gas verticals. Finally, initial licensing & integration discussions are underway, and we anticipate hiring an expert in this field in 2024 to formulate and execute a global expansion plan.
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We anticipate that our outsourced manufacturers can adequately support an increase in sales for the foreseeable future. We expect that we will need to continue to evolve our products and software to meet diverse customer requirements across varied markets.
Since inception we have generated significant losses from operations and anticipate that we will continue to generate significant losses for the foreseeable future.
Management believes that cash balances of approximately $4,125,000 and positive working capital of $3,687,000 at September 30, 2023 do not provide adequate working capital for operating activities for the next twelve months after 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 expense reduction tactics to preserve working capital provide the opportunity for the Company to continue as a going concern as of September 30, 2023. 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, 2023. As such, substantial doubt about the entity’s ability to continue as a going concern has not been alleviated as of September 30, 2023.
Additional capital may be required under the following circumstances: 1) accelerated customer acquisition increasing capital outlay, 2) advanced purchasing of materials, 3) acquisition of new technology, 4) potential acquisition of a key asset, and 5) global expansion.
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Results of Operations for Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022
Summary of Results of Operations
| Three Months Ended September 30, 2023 | 2022 | |
|---|---|---|
| Revenues | $36,274 | $9,734 |
| Cost of goods and services | 20,195 | 4,950 |
| Gross profit | 16,079 | 4,784 |
| Operating expenses: | ||
| Selling, general, and administrative | 1,358,749 | 1,732,382 |
| Stock-based compensation expense | 509,999 | 594,763 |
| Research and development | 214,374 | 459,847 |
| Total operating expenses | 2,083,122 | 2,786,992 |
| Loss from operations | (2,067,043) | (2,782,208) |
| Other income (expense): | ||
| Other income, net | 48,677 | 1,292 |
| Interest expense | (179,014) | (317,774) |
| Total other expense, net | (130,337) | (316,482) |
| Net loss | $(2,197,380) | $(3,098,690) |
Operating Loss; Net Loss
Our operating loss decreased by $715,165 from $2,782,208 for the three months ended September 30, 2022 to $2,067,043 for the three months ended September 30, 2023. The decrease in our operating loss for the three months ended September 30, 2023, compared to the same prior year period, is primarily a result of an overall decrease in our operating expenses of $703,870 including decreases in selling, general, and administrative expense; stock-based compensation expense; and research and development expense.
Our net loss decreased by $901,310 from $3,098,690 for the three-month period ended September 30, 2022 to $2,197,380 for the three-month period ended September 30, 2023. The decrease in our net loss is driven by a decrease in our operating loss of $715,165 in addition to a decrease in other expense, net of $186,145. The changes are detailed below.
Revenue
Revenues of $36,274 for the three months ended September 30, 2023 have increased by $26,540 as compared to the prior year period of $9,734. This increase is primarily driven by increased sales of our SOBRcheckTM device of $5,880 and an increase in recurring software subscription revenues of $20,660.
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Gross Profit
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 cost of goods and services for the three months ended September 30, 2022 was $4,950 resulting in a gross profit of $4,784 and a gross margin of 49%. Due to the limited history of generating revenue, the gross profit and gross margin for the three months ended September 30, 2023 and 2022 may not be indicative of future planned or actual performance of the Company, its product lines or services.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses decreased by $373,633 from $1,732,382 for the three months ended September 30, 2022 to $1,358,749 for the three months ended September 30, 2023. This decrease is primarily attributable to a decrease in professional services of $729,086, partially offset by an increase in payroll and employee benefits expenses of $366,986 from a planned increase in employee headcount.
Stock-Based Compensation Expense
The Company had stock-based compensation expense of $509,999 for the three months ended September 30, 2023, compared to $594,763 for the three months ended September 30, 2022, a decrease of $84,764. Stock-based compensation expense is related to the issuance of common stock options and restricted stock units as compensation to certain consultants and employees which are recognized over the period of service. The decrease is mainly due to fewer restricted stock units outstanding during the three months ended September 30, 2023 compared to the same prior year period.
Research and Development
Research and development expenses decreased by $245,473 from $459,847 for the three months ended September 30, 2022 to $214,374 for the three months ended September 30, 2023. The decrease in research and development is due to the Company finalizing development related to the SOBRsure™ device, which is now in commercial production.
Other Income, net
Other income, net increased by $47,385 from $1,292 for the three months ended September 30, 2022 to $48,677 for the three months ended September 30, 2023. This increase is primarily due to higher interest earnings on cash deposits during the three months ended September 30, 2023 compared to the same period in the prior year.
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Interest Expense
Interest expense decreased by $138,760 from $317,774 for the three months ended September 30, 2022 to $179,014 for the three months ended September 30, 2023. This decrease is primarily due to $115,831 included in interest expense for the three-month period ended September 30, 2022 for amortization of debt discounts related to beneficial conversion features associated with debt. The three months ended September 30, 2023 did not include any amortization of debt discounts related to beneficial conversion features due to the adoption of ASU 2020-06 effective January 1, 2023 which eliminated the concept of beneficial conversion features and the debt discounts previously recognized as a result.
Results of Operations for Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022
Summary of Results of Operations
| Nine Months Ended September 30, 2023 | 2022 | |
|---|---|---|
| Revenues | $121,743 | $12,734 |
| Cost of goods and services | 66,835 | 6,050 |
| Gross profit | 54,908 | 6,684 |
| Operating expenses: | ||
| Selling, general, and administrative | 4,843,082 | 3,953,961 |
| Stock-based compensation expense | 1,836,674 | 2,272,826 |
| Research and development | 588,467 | 992,491 |
| Total operating expenses | 7,268,223 | 7,219,278 |
| Loss from operations | (7,213,315) | (7,212,594) |
| Other income (expense): | ||
| Other income, net | 179,734 | 217,722 |
| Gain (loss) on extinguishment of debt, net | (26,125) | 245,105 |
| Gain on fair value adjustment – derivatives, net | - | 1,040,000 |
| Interest expense | (613,324) | (3,146,987) |
| Total other expense, net | (459,715) | (1,644,160) |
| Net loss | $(7,673,030) | $(8,856,754) |
Operating Loss; Net Loss
Our operating loss increased slightly by $721 from $7,212,594 for the nine months ended September 30, 2022 compared to $7,213,315 for the nine months ended September 30, 2023. The increase in our operating loss for the nine months ended September 30, 2023, compared to the same prior year period, is driven by an overall increase in our operating expenses of $48,945, partially offset by an increase in gross profit of $48,224.
Our net loss decreased by $1,183,724 from $8,856,754 for the nine months ended September 30, 2022 compared to $7,673,030 for the nine months ended September 30, 2023. The decrease in our net loss is primarily due to a decrease in interest expense of $2,533,663, partially offset by decreases in other income and gains recognized upon extinguishing debt and adjusting derivative liabilities to fair value. The changes are detailed below.
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Revenue
During the nine months ended September 30, 2023, the Company increased revenues by $109,009 to $121,743 as compared to $12,734 for same period in 2022. This increase during the nine months in 2023 is a result of an increase in sales of our SOBRcheckTM device of $40,622 and an increase in recurring software subscription revenues of $68,387 as compared to the prior year period.
Gross Profit
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%. The cost of goods and services for the nine months ended September 30, 2022 was $6,050 resulting in a gross profit of $6,684 and a gross margin of 52%. Due to the limited history of generating revenue, the gross profit and gross margins for the nine months ended September 30, 2023 and 2022 may not be indicative of future planned or actual performance of the Company, its product lines or services.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses increased by $889,121, from $3,953,961 for the nine months ended September 30, 2022 to $4,843,082 for the nine months ended September 30, 2023. This increase is primarily due to an increase in payroll and employee benefits expenses of $826,097 as a result of higher employee headcount during the nine months ended September 30, 2023. Other items contributing to the increase in selling, general, and, and administrative expenses include increases in insurance expense of $130,485, marketing and business development expenses of $83,265, travel-related expenses of $79,010, and rental expense of $19,776, offset by a decrease in professional, legal, and consulting services of $366,986.
Stock-Based Compensation Expense
The Company had stock-based compensation expense of $1,836,674 for the nine months ended September 30, 2023, compared to $2,272,826 for the nine months ended September 30, 2022, a decrease of $436,152. Stock-based compensation expense is related to the issuance of common stock options and restricted stock units as compensation to certain consultants and employees which are recognized over the period of service. The decrease is mainly due to several restricted stock units becoming fully vested in January 2023 and, as a result, only minimal expense was recognized for these restricted stock units during the nine months ended September 30, 2023 compared to the same prior year period.
Research and Development
Research and development expenses decreased by $404,024 from $992,491 for the nine months ended September 30, 2022 to $588,467 for the nine months ended September 30, 2023. The decrease in research and development is due to the Company finalizing development related to the SOBRsure™ device during the nine months ended September 30, 2023, which is now in commercial production. This compared to research and development expense during the same period in the prior year related to the final development of both the SOBRsafeTM software platform and the SOBRcheckTM device, and the inception of research and development costs for the SOBRsure™ device.
Other Income, net
Other income, net decreased by $37,988 from $217,722 for the nine months ended September 30, 2022 to $179,734 for the nine months ended September 30, 2023. For the nine months ended September 30, 2023, other income primarily consisted of interest earned on cash deposits. For the nine months ended September 30, 2022, other income primarily consisted of employee tax retention credits applied for and received under the CARES Act.
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Gain (Loss) on Extinguishment of Debt, net
During the nine months ended September 30, 2023, we recorded a loss on extinguishment of debt of $26,125 which related to the early payoff of convertible notes issued in 2021. During the nine months ended September 30, 2022, we recorded a net gain on extinguishment of debt of $245,105 consisting of a $1,109,195 net gain related to the payoff of a $3,048,751 convertible debenture issued in 2021, offset by a net loss of $864,000 recorded for a modification to the terms of the original warrants issued with the convertible debenture.
Fair Value Adjustment – Derivatives
Fair value adjustment – derivatives was a gain of $1,040,000 for the nine-month period ended September 30, 2022, which was related to financial instruments issued in September 2021 that contained an embedded derivative liability component. We did not have any outstanding financial instruments that contained derivative liability components during the nine-month period ended September 30, 2023. The gain or loss related to the derivative instruments is affected by the price of our common stock.
Interest Expense
Interest expense decreased by $2,533,663, from $3,146,987 for the nine months ended September 30, 2022 to $613,324 for the nine months ended September 30, 2023. This decrease is mainly due to a decrease in amortization of debt discounts of $1,624,144. In addition, interest expense for the nine months ended September 30, 2022 included a one-time expense of $914,634 to recognize default penalties on a convertible debenture payable.
Liquidity and Capital Resources for Nine Months Ended September 30, 2023 Compared to December 31, 2022
Introduction
During the nine months ended September 30, 2023, we did not generate positive operating cash flows because of our operating losses. 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 may need additional capital in the future. Our cash on hand as of September 30, 2023 was $4,124,569 and our current normalized monthly operating cash flow burn rate is approximately $500,000.
Management believes that cash balances and positive working capital at September 30, 2023 do not provide adequate operating capital for operating activities for the next twelve months after 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 expense reduction tactics to preserve working capital provide the opportunity for the Company to continue as a going concern as of September 30, 2023. 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, 2023. As such, substantial doubt about the entity’s ability to continue as a going concern has not been alleviated as of September 30, 2023.
Our cash, current assets, total assets, current liabilities, and total liabilities as of September 30, 2023 and as of December 31, 2022, respectively, are as follows:
| September 30, 2023 | December 31, 2022 | Change | |
|---|---|---|---|
| Cash | $4,124,569 | $8,578,997 | $(4,454,428) |
| Total Current Assets | 4,717,831 | 9,025,717 | (4,307,886) |
| Total Assets | 7,626,782 | 11,912,037 | (4,285,255) |
| Total Current Liabilities | 1,030,610 | 2,821,684 | (1,791,074) |
| Total Liabilities | 3,511,751 | 2,821,684 | 690,068 |
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Our current assets and total assets decreased as of September 30, 2023, as compared to December 31, 2022, by approximately $4.3 million primarily due to a decrease in our cash balances of approximately $4.5 million, partially offset by an increase in prepaid insurance premiums of approximately $95,000.
Our current liabilities decreased as of September 30, 2023, as compared to December 31, 2022, by approximately $1.8 million. This decrease was primarily due to principal and interest payments of approximately $2.4 million made in March and April 2023 to fully repay convertible notes issued in 2021. Current liabilities at December 31, 2022 included approximately $2.1 million of principal, net of debt discounts, and accrued interest payable related to these 2021 convertible notes. The decrease in current liabilities as a result of paying off the 2021 convertible notes was partially offset by an increase in accounts payable of $104,167 and an increase in the current portion of operating lease liabilities of $93,775.
To repay all our obligations in full or in part when due, we will be required to generate adequate cash flow from operations or raise significant capital from other sources. There is no assurance, however, that we will be successful in these efforts.
Sources and Uses of Cash
Operating
We had net cash used in operating activities of $4,705,018 for the nine months ended September 30, 2023, as compared to net cash used in operating activities of $4,264,014 for the nine months ended September 30, 2022. For the nine months ended September 30, 2023, the net cash used in operating activities consisted primarily of our net loss of $7,673,030, offset by non-cash items including amortization of intangibles of $289,098, amortization of debt discounts of $417,647, stock-based compensation expense of $1,836,674, and other non-cash items totaling $91,609, as well as changes in our assets and liabilities including changes in inventory of ($51,721), prepaid expenses of $571,129, accounts payable of $106,054, accrued interest payable of ($281,079), and other changes in our assets and liabilities totaling ($11,399).
For the nine months ended September 30, 2022, the net cash used in operating activities consisted primarily of our net loss of $8,856,754, offset by non-cash items including amortization of intangibles of $289,098, amortization of debt discounts of $2,043,288, gain on extinguishment of debt of ($245,105), change in fair value of a derivative liability of ($1,040,000), and stock-based compensation expense of $2,272,826, as well as changes in our assets and liabilities including changes in accounts receivable of ($8,484), inventory of ($157,303), prepaid expenses of $375,001, other assets of $3,149, accounts payable of ($149,145), accrued expenses of $1,027,548, accrued interest payable of $172,343, related party payables of ($60,976), and common stock payable of $70,500.
Investing
We had no cash provided by or used in investing activities during the nine-month periods ended September 30, 2023 and 2022.
Financing
During the nine months ended September 30, 2023, we received gross proceeds of $3,000,001 from the issuance of convertible notes payable which was offset by issuance costs of $537,750. We also repaid $2,211,661 in principal on notes payable held by related and non-related parties.
During the nine months ended September 30, 2022, we received net proceeds of $8,694,382 from our underwritten public financing and received net proceeds of $5,130,754 from a private equity offering. In addition, we fully repaid the $3,048,781 principal balance of a convertible debenture and repaid $145,932 in principal on notes payable held by non-related parties.
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Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements as of September 30, 2023 and December 31, 2022.
Effects of Inflation
We do not believe that inflation has had a material impact on our business, revenue or operating results during the periods presented. However, continued increases in inflation could have an adverse effect on our results of operations, financial position, and liquidity in the future.
Recent Accounting Pronouncements
There have been no recent accounting pronouncements or changes in accounting pronouncements during the period ended September 30, 2023, or subsequently thereto, that we believe are of potential significance to our financial statements.
Controls and procedures
As filed, 3,474 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
(a) Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to management, including the chief executive officer and chief financial officer, to allow timely decisions regarding required disclosures.
As of September 30, 2023, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer (our Principal Executive Officer) and Chief Financial Officer (our Principal Financial Officer), of the effectiveness of our disclosure controls and procedures. Based on that evaluation, management has concluded that our disclosure controls and procedures were effective as of September 30, 2023.
In designing and evaluating the disclosure controls and procedures, management recognizes that there are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their desired control objectives. Additionally, in evaluating and implementing possible controls and procedures, management is required to apply its reasonable judgment.
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(b) Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Our process for evaluating controls and procedures is continuous and encompasses constant improvement of the design and effectiveness of established controls and procedures and the remediation of any deficiencies, which may be identified during this process.
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
(c) Officer’s Certifications
Appearing as an exhibit to this quarterly report on Form 10-Q are “Certifications” of our Chief Executive Officer and Chief Financial Officer. The Certifications are required pursuant to Sections 302 of the Sarbanes-Oxley Act of 2002 (the “Section 302 Certifications”). This section of the quarterly report on Form 10-Q contains information concerning the Controls Evaluation referred to in the Section 302 Certifications. This information should be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented.
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Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2023-09-30. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2023-07-01 to 2023-09-30 | $36.3k | us-gaap:Revenues |
| Revenue | 9 months2023-01-01 to 2023-09-30 | $121.7k | us-gaap:Revenues |
| Cost of revenue | 3 months2023-07-01 to 2023-09-30 | $20.2k | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 9 months2023-01-01 to 2023-09-30 | $66.8k | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months2023-07-01 to 2023-09-30 | $16.1k | us-gaap:GrossProfit |
| Gross profit | 9 months2023-01-01 to 2023-09-30 | $54.9k | us-gaap:GrossProfit |
| Research and development | 3 months2023-07-01 to 2023-09-30 | $214.4k | us-gaap:ResearchAndDevelopmentExpense |
| Research and development | 9 months2023-01-01 to 2023-09-30 | $588.5k | us-gaap:ResearchAndDevelopmentExpense |
| Operating income | 3 months2023-07-01 to 2023-09-30 | −$2.1m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months2023-01-01 to 2023-09-30 | −$7.2m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months2023-07-01 to 2023-09-30 | $179.0k | us-gaap:InterestExpense |
| Interest expense | 9 months2023-01-01 to 2023-09-30 | $613.3k | us-gaap:InterestExpense |
| Income tax | 3 months2023-07-01 to 2023-09-30 | $0 | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months2023-01-01 to 2023-09-30 | $0 | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2023-07-01 to 2023-09-30 | −$2.2m | us-gaap:NetIncomeLoss |
| Net income | 9 months2023-01-01 to 2023-09-30 | −$7.7m | us-gaap:NetIncomeLoss |
| Operating cash flow | 9 months2023-01-01 to 2023-09-30 | −$4.7m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Cash and equivalents | At period end2023-09-30 | $4.1m | us-gaap:Cash |
| Current assets | At period end2023-09-30 | $4.7m | us-gaap:AssetsCurrent |
| Total assets | At period end2023-09-30 | $7.6m | us-gaap:Assets |
| Current liabilities | At period end2023-09-30 | $1.0m | us-gaap:LiabilitiesCurrent |
| Total liabilities | At period end2023-09-30 | $3.5m | us-gaap:Liabilities |
| Shareholders' equity | At period end2023-09-30 | $4.2m | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0001477932-23-008193. Last ingested by Listed: Nov 5, 2026, 13:37 ET. Listed shows no prices and gives no investment advice.