Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2024



The Company has incurred recurring losses from operations and has limited cash liquidity and capital resources to meet future capital requirements. The Company’s ability to meet future capital requirements will depend on many factors, including the Company’s ability to develop and sell products, generate cash flow from operations, and assess competing market developments. The Company may need additional capital resources in the near future. Sources of debt financing may result in additional interest expense. Any financing, if available, may be on unfavorable terms. If adequate funds are not available or obtained, the Company may be required to reduce or curtail operations.


As of March 31, 2024, the Company has an accumulated deficit of approximately ($91,800,000). During the three months ended March 31, 2024, the Company experienced negative cash flows from operating activities of approximately ($1,450,000) and has approximately $2,000,000 of current convertible notes payable due in various amounts in March 2025. These principal conditions and events, when considered in the aggregate, could indicate it is probable that the Company will be unable to meet its obligations as they become due within one year after the date the financial statements are issued. However, the Company has identified factors that may mitigate the probable conditions that have raised substantial doubt about the entity’s ability to continue as a going concern.


Based on an evaluation of current operating cash usage, management identified several areas in which the Company is capable to reduce spend should it be needed. This includes reductions in operating headcount, discretionary sales & marketing spend, investor relations initiatives, and product/software research and development planning. Ongoing activities to identify and reduce monthly expenses by management will continue in perpetuity until such time financial liquidity and substantial cash flow from sales are realized.

Management believes the introduction of its SOBRsureTM product in Q3-2023 and a defined focus on the multi-vertical Behavioral Health space have well-positioned the Company to generate a positive improvement in revenue generation and positive cash flows from sales.


Management believes that cash balances of approximately $1,300,000 and negative working capital of approximately ($1,500,000) at March 31, 2024, do not provide adequate 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 March 31, 2024. These plans are contingent upon the actions to be performed by the Company and these conditions have not been met on or before May 15, 2024. As such, substantial doubt about the entity’s ability to continue as a going concern has not been alleviated as of March 31, 2024.