NOTE 16. SUBSEQUENT EVENTS

The Company has evaluated subsequent events for recognition and disclosure through May 23, 2022, which is the date the condensed consolidated financial statements were available to be issued.

Our Common Stock has been approved for listing on the Nasdaq Capital Market (“Nasdaq”) under the symbol “SOBR” and began trading the exchange on May 16, 2022.

In concert with our up listing to Nasdaq, on May 18, 2022, we received approximately $8,779,000 of net proceeds from the sale of an underwritten public offering of 2,352,942 units (Units) at a public offering price of $4.25 per Unit, with each Unit consisting of one share of our Common Stock, par value $0.00001, and two warrants each to purchase one share of Common Stock. The Units have no stand-alone rights and will not be certified or issued as stand-alone securities.  The Warrants included in the Units are exercisable immediately and have an exercise price of $4.25 per share (100% of the price per Unit sold in the offering). The Warrants will not be listed for trading and will expire five years from the date of their issuance.

On May 19, 2022, the $3,048,781 principal balance of the Armistice Capital Master Fund, Ltd 18% Original Issue Discount Convertible Debenture, which was in default at March 31, 2022, was paid in full satisfying all amounts due and accrued under the default including penalty, damages and interest provisions of the debt agreement.