Business Context and Reporting Period
Company: SOBR Safe, Inc. (formerly TransBiotec, Inc.)
Filing Type: Form 8-K (Current Report)
Date of Report: February 19, 2021
Reporting Period: The filing addresses events occurring between January 1, 2021, and February 23, 2021, specifically regarding a change in the company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on corporate governance and auditor changes.
Material Changes Versus Prior Period
- Auditor Resignation: Hall & Company Certified Public Accountants and Consultants, Inc. ("Hall") resigned as the independent auditor on February 19, 2021. This resignation resulted from Hall's merger with Macias Gini & O'Connell ("MGO") on January 1, 2021.
- New Auditor Engagement: On February 23, 2021, the Board of Directors approved the engagement of MGO as the new independent registered public accounting firm.
- Historical Audit Opinions: Hall's reports for the years ended December 31, 2019, and 2018 did not contain adverse opinions or disclaimers. However, they included an explanatory paragraph regarding substantial doubt about the company's ability to continue as a going concern.
- Disagreements: There were no disagreements with Hall regarding accounting principles, practices, financial statement disclosures, or auditing scope during the relevant periods.
Guidance, Outlook, and Risks
Management Commentary: The company confirmed that prior to engaging MGO, no consultations occurred regarding specific accounting principles or proposed transactions, and MGO provided no advice that influenced the decision to change auditors.
Risks and Contingencies: The filing highlights the historical "substantial doubt about our ability to continue as a going concern" noted in prior audit reports. No new risks or contingencies were disclosed in this specific report beyond the transition of audit services.
Investor Verification Checklist
- Verify the status of the "substantial doubt about going concern" noted in the 2018 and 2019 audit reports to assess current solvency risks.
- Confirm the effective date of MGO's engagement and the scope of their initial review of the company's financials.
- Review the letter from Hall & Company (Exhibit 16.1) to ensure no undisclosed disagreements exist regarding the resignation.
- Monitor subsequent filings for updated financial statements prepared under the new auditor's oversight.