SOBR: Advanced technology company disrupting the alcohol management industry by focusing on preventive solutions instead of reactive processes.

By Thomas Kerr, CFA

NASDAQ:SOBR

OVERVIEW

SOBR Safe, Inc, (“SOBRsafe”) (NASDAQ: SOBR) develops and provides organizations with a non-invasive technology to quickly and safely identify potential alcohol issues with their employees or contractors. If left undetected, alcohol related driving accidents and workplace incidents could result in injury, death, reputational harm, and increased insurance rates. These products and technologies are integrated within a robust and scalable data platform that produces statistical and measurable user and business data. The company’s stated mission is to save lives, increase productivity, and create economic benefit for its customers.

The company has developed a scalable, patent pending SOBRsafe™ hardware/software platform for non-invasive alcohol detection and identity verification. This solution has potential applications in commercial vehicle fleets, manufacturing and warehousing facilities, construction, DUI probation, third-party alcohol testing, outpatient alcohol rehabilitation and youth drivers. The comprehensive daily use of this device could result in material insurance savings across workers’ compensation, general liability, umbrella and fleet policies.

In 2021, the company successfully completed several pilot testing programs involving the SOBRsafe™ system with the SOBRcheck device. This device is a palm sized detector used for non-invasive alcohol detection and identity verification. After successful validation of the software platform and hardware device, the company has now progressed to commercial production, launch and sale of the SOBRcheck™ devices and software solution to initial customers with an initial focus on last mile delivery fleets.

The company has developed a second device which is a wearable wristband branded as SOBRsure™. The wristband utilizes the same SOBRsafe™ sensor technology and software platform, which was validated during the SOBRcheck™ development process. The primary intended use for this band is for managed care / alcohol rehabilitation and commercial safety fleet management, with an additional potential application for young individual drivers. The wearable band is now commercially available and expected to be sold in the consumer markets as well starting in 2023.

The addressable market for these devices and solutions could approach $30 billion in total value. This includes last mile delivery or trucking fleets, warehouses, manufacturing facilities, construction sites, young drivers, or alcohol related rehabilitation facilities and processes. The annual cost of alcohol abuse in the U.S. across various avenues is approximately $250 billion.

In May 2022, the company raised $10 million in gross proceeds from a public offering. Net proceeds to the company were $8.7 million of which $3.0 million was used to repay existing debt balances. Based on current levels of cash, the company believes it has sufficient capital to fund operations through March 2023.

PRODUCTS AND TECHNOLOGY

SOBRcheck is a palm sized device that utilizes finger touch technology to detect the presence of alcohol in the body. The device takes the natural humidity in the skin and tests the natural vapor for alcohol components. The SOBRcheck is placed at entry points to facilities or driver centers and employees place their hands/fingers on the device to verify and scan for alcohol. Employees who receive a green light are then given the keys to their particular vehicle.

Unlike traditional breathalyzer tests, the SOBRcheck is very hygienic with no need for blood, saliva or breath-based components. The results are almost instantaneous, and the company has reported it can test 180 employees per hour. According to the company’s research, the dependability or accuracy rate is 97% compared to average accuracy rates of 84% for classic breathalyzer machines, which is a 60-year-old technology.

One of the key competitive advantages of this system is the device connects to a powerful cloud-based reporting and data management system. This database and reporting system aggregates data in order to maintain compliance and safety discounting with insurers as well as create safety management and incident reporting for clients. Current and potential partnerships with property & casualty insurers is a key focus in terms of product development, insurer support, and client productivity and cost savings.

The company’s second device is a wearable wristband branded as SOBRsure and is the mobile version of the company’s core SOBRsafe technologies. This is a continuous on person monitoring device that can be used in markets such as teenage driving, remote monitoring of last mile and fleet management applications, alcohol rehabilitation support and corporate wellness efforts. The product is commercially available now with an initial focus on alcohol rehabilitation facilities and addiction programs. SOBRsure is expected …

Full story available on Benzinga.com

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