Business Context and Reporting Period
This Form 8-K filing by SOBR Safe, Inc. (SOBR) reports a change in the registrant's certifying accountant. The report date is April 18, 2023, with the document signed on April 20, 2023. The company is incorporated in Delaware and trades on the Nasdaq Capital Market.
Key Financial Metrics
This filing does not contain specific financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity figures. The document focuses exclusively on the administrative change of the independent registered public accounting firm.
Material Changes
- Dismissal of Accountant: On April 18, 2023, the Board of Directors dismissed Macias Gini & O'Connell LLP (MGO) as the independent registered public accounting firm.
- Appointment of New Accountant: On the same date, Haynie & Company was engaged as the new independent registered public accounting firm for the fiscal year ending December 31, 2023.
- Reason for Change: The dismissal was not the result of any disagreements regarding accounting principles, practices, or auditing scope.
Outlook, Risks, and Contingencies
Going Concern and Internal Controls: The filing highlights significant risks related to the company's financial reporting infrastructure. MGO's audit report for the year ended December 31, 2021, included an explanatory paragraph noting substantial doubt about the company's ability to continue as a going concern.
Material Weaknesses: The company disclosed material weaknesses in internal controls over financial reporting for the fiscal years ended December 31, 2022, and 2021. These weaknesses include:
- Lack of sufficient segregation of duties within accounting functions.
- Lack of documentation of internal controls covering the recording and reporting of financial transactions.
- Lack of maintenance of effective controls over the control environment.
Remediation Status: As of the date of this report, these material weaknesses have not been remediated.
Investor Verification Checklist
- Verify the status of the "substantial doubt" regarding the company's ability to continue as a going concern noted in the 2021 audit.
- Confirm the timeline and progress for remediating the material weaknesses in internal controls over financial reporting.
- Review the letter from the former accountant (MGO) attached as Exhibit 16.1 to ensure no undisclosed disagreements exist.
- Monitor future filings for the first audit opinion issued by the new firm, Haynie & Company.