Sobr Safe Inc (SOBR) is a company that develops and markets alcohol detection systems for various applications, such as vehicles, workplaces, schools, and homes. The company’s flagship product is the Sobr Check™, a non-invasive device that can measure a person’s blood alcohol level from their skin in seconds. The device can be integrated with ignition interlocks, access control systems, or mobile apps to prevent impaired driving, enhance workplace safety, or monitor sobriety.
The Market Opportunity for Sobr Safe Inc
According to the World Health Organization (WHO), alcohol consumption is responsible for more than 3 million deaths every year, and is a causal factor in more than 200 diseases and injuries. Moreover, alcohol-impaired driving is one of the leading causes of road traffic fatalities, accounting for nearly 25% of all road deaths globally. In the US alone, drunk driving costs the society more than $44 billion annually in terms of medical expenses, lost productivity, legal fees, and property damage.
To address this public health and social issue, many countries have implemented strict laws and regulations to deter and punish drunk drivers. For instance, in the US, all states have adopted the 0.08% blood alcohol concentration (BAC) limit for drivers aged 21 and above, and some states have enacted zero-tolerance laws for drivers under 21. Additionally, some states require offenders to install ignition interlock devices (IID) in their vehicles, which prevent the engine from starting if the driver’s BAC exceeds a preset level.
However, these measures are not enough to prevent alcohol-impaired driving, as many drivers still evade detection or circumvent the existing systems. For example, some drivers may use mouthwash, breath mints, or other substances to mask the alcohol odor or alter the breath test results. Some drivers may also ask someone else to blow into the IID for them, or disconnect the device altogether.
This is where Sobr Safe Inc comes in. The company aims to provide a more reliable and convenient solution for alcohol detection that can overcome the limitations of the current methods. The Sobr Check™ device uses transdermal technology to measure the alcohol level from the skin, which is less prone to manipulation or interference than breath or saliva tests. The device can also communicate wirelessly with other systems or devices to enable real-time monitoring and reporting of the user’s sobriety status.
The Competitive Advantage of Sobr Safe Inc
Sobr Safe Inc claims that its Sobr Check™ device has several advantages over its competitors in the alcohol detection industry. Some of these advantages are:
- Accuracy: The Sobr Check™ device has been tested and validated by independent laboratories and certified by the US Department of Transportation (DOT) as a conforming product for alcohol screening. The device can measure BAC levels from 0.00% to 0.40%, with a margin of error of +/- 0.01%.
- Speed: The Sobr Check™ device can provide results in less than 10 seconds, compared to breath tests that can take up to 30 seconds or more.
- Convenience: The Sobr Check™ device is easy to use and does not require mouthpieces, tubes, or batteries. The user simply places their finger on the sensor pad and waits for the LED indicator to show green (pass), yellow (warn), or red (fail).
- Versatility: The Sobr Check™ device can be used for various purposes and applications, such as personal use, fleet management, workplace testing, school safety, or home monitoring. The device can be integrated with existing systems or platforms, such as ignition interlocks, access control systems, mobile apps, or cloud services.
- Affordability: The Sobr Check™ device is expected to cost around $150 per unit, which is significantly lower than other alcohol detection devices in the market. For instance, a typical IID can cost between $70 and $150 for installation, plus $60 to $80 per month for maintenance and monitoring.
The Financial Performance of Sobr Safe Inc
Sobr Safe Inc is a relatively new company that was founded in 2018 and went public in 2020 through a reverse merger with HighCom Global Security Inc. The company is currently in the pre-revenue stage and has not generated any sales from its Sobr Check™ device yet. However, the company expects to launch its product in the US market by the end of 2023 and expand internationally in 2024.
As of March 31, 2023, the company had cash and short-term investments of $8.29 million, total assets of $11.77 million, total liabilities of $3.94 million, and total equity of $7.83 million. The company reported a net loss of $2.60 million for the first quarter of 2023, compared to a net loss of $1.70 million for the same period in 2022. The company attributed the increase in net loss to higher operating expenses related to research and development, marketing, and general and administrative activities.
The company’s stock price has been volatile since its debut on the Nasdaq Capital Market in December 2020. The stock reached its all-time high of $4.27 per share on February 10, 2023, but has since declined by more than 60% to $1.51 per share as of August 9, 2023. The stock has a market capitalization of $27.78 million and an average trading volume of 126,262 shares per day.
The Future Outlook for Sobr Safe Inc
Sobr Safe Inc faces several challenges and risks in its quest to become a leader in the alcohol detection industry. Some of these challenges and risks are:
- Competition: The company competes with several established players in the alcohol detection market, such as Intoxalock, LifeSafer, Smart Start, Draeger, AlcoSense, BACtrack, and AlcoHAWK. These competitors may have more resources, experience, brand recognition, customer base, distribution channels, and patents than Sobr Safe Inc.
- Regulation: The company’s product is subject to various federal, state, and local laws and regulations that govern the manufacture, sale, use, and testing of alcohol detection devices. These laws and regulations may vary from jurisdiction to jurisdiction and may change over time. The company may also face legal claims or liabilities from customers, users, or third parties arising from the use or misuse of its product.
- Technology: The company’s product relies on complex and proprietary technology that may be difficult to maintain, improve, or protect. The company may encounter technical difficulties, defects, errors, or failures in its product that could affect its performance, reliability, or safety. The company may also face intellectual property infringement or challenges from competitors or others who claim rights to its technology.
- Market: The company’s product is subject to market demand and acceptance by customers, users, regulators, insurers, and other stakeholders. The company may face difficulties in penetrating or expanding its target markets due to factors such as price sensitivity, consumer preferences, social stigma, ethical concerns, or legal barriers. The company may also face competition from alternative or emerging technologies or solutions that could reduce the need or demand for its product.
Despite these challenges and risks, Sobr Safe Inc also has several opportunities and strengths that could support its growth and success in the future. Some of these opportunities and strengths are:
- Innovation: The company’s product is based on a novel and patented technology that offers a unique value proposition to customers and users. The company’s product is designed to be more accurate, faster, convenient, versatile, and affordable than existing alcohol detection devices in the market. The company also plans to develop new features and functionalities for its product that could enhance its appeal and utility.
- Partnership: The company has established strategic partnerships with several organizations and entities that could help it promote and distribute its product. For instance, the company has partnered with the National Sheriffs’ Association (NSA), the largest law enforcement association in the US, to endorse its product and provide education and training to sheriffs and deputies. The company has also partnered with Fleet Complete®, a leading provider of fleet management solutions, to integrate its product with their platform and offer it to their customers.
- Social Impact: The company’s product has the potential to make a positive social impact by reducing the incidence and consequences of alcohol-impaired driving and other alcohol-related problems. The company’s product could save lives, prevent injuries, protect property, enhance productivity, improve health, and promote well-being for individuals and communities.
Sobr Safe Inc is a company that develops and markets alcohol detection systems for various applications. The company’s flagship product is the Sobr Check™ device that can measure a person’s blood alcohol level from their skin in seconds. The device can be integrated with other systems or devices to prevent impaired driving, enhance workplace safety, or monitor sobriety.
The company faces several challenges and risks in its quest to become a leader in the alcohol detection industry. These include competition from established players; regulation from various authorities; technology issues such as defects or infringement; and market factors such as demand or acceptance.