SOBRsafe(TM) (NASDAQ: SOBR) technology is doing something for alcohol awareness that hasn't been done in over three decades: make it efficiently and non-invasively possible for companies, agencies, and treatment facilities to manage on a daily basis. The company is delivering to market an alcohol detection and monitoring platform that can forever change the rules of how companies and agencies screen, monitor, and enforce alcohol consumption policy. While Alcohol Awareness Month in April aims to promote renewed discussions on these topics, it would be misleading to think that this is the only actual month for people, managers, and healthcare providers to be mindful of the consequences related to workplace and pedestrian alcohol consumption. It isn't, and that's a good thing.
More people than ever are learning about SOBRsafe and its SOBRcheck and SOBRsure technologies, which can provide alcohol detection and management solutions for everyday use with down-to-the-second accuracy. That's more than excellent news for those needing this groundbreaking technology to manage their interests; it's also greatfor investors looking for ground-floor investment opportunities in companies that are revolutionizing landscapes. SOBRsafe checks that box.
And better still, by developing and already penetrating key sectors with an alcohol-detection platform that offers multiple benefits over conventional detection systems, more lives can be saved by preventing accidents before they can occur. Its competitive advantages have expedited client adoption, positioning its platform to become one of the most impactful advancements in combating alcohol abuse and misuse in workplaces, legal systems, and commercial enterprises.
Meeting that scale and demand could generate exponential growth for SOBR and, just as importantly from an investor's perspective, steepen a share price trajectory that is already in a bullish trend. Plenty supports that optimism.
Capitalizing On Oil And Gas Services Client Interest
Foremost, SOBR technology adoption is happening faster than many expected. This is evidenced by updates showing its SOBRcheck platform continues to earn business from leaders in the oil and gas services and logistics landscape. In May, SOBR proved that business momentum is at its back, announcing that oil and gas customer TerraTech Services has completed the rollout of SOBRcheck(TM) to all of its sixteen facilities across eleven states for both fleet and workplace applications. Don't under-appreciate the deal. TerraTech is one of the world's largest oilfield services and logistics providers, and expanding its business relationship with them helps establish more than credibility; it validates the platform and opens significant doors to new business opportunities. (Note: TerraTech closed one minor facility since the previously announced count of seventeen)
Remember that this milestone doesn't provide Terra Tech with a one-and-done detection tool. With the integration of SOBRcheck(TM) into its core safety protocols, each of its approximately 300 service center employees scans up to four times a day to continually verify alcohol-free fitness for duty. In other words, SOBRcheck does more than provide a single snapshot in time for later review. Instead, and different from competing devices and platforms, the SOBRcheck scan provides data transmitted in real-time to onsite TerraTech supervisors and is aggregated in SOBR's proprietary reporting software for TerraTech corporate oversight. That difference represents a critical distinction from other alcohol detection and screening platforms, bringing a significant advantage. And don't think that Terra Tech isn't aware of its benefits.
Because they undoubtedly understand the need and value of protecting against a significant issue related to their industry. Statistics show that the oil and gas industry has the highest rate of binge drinking of any industry in the
And it's led to multiple awards, accolades, and recognitions.
Recognizing SOBRcheck For Being Better
For its ability to check and continuously monitor for alcohol use, SOBRcheck(TM) was awarded the
Accretive to client needs, from an investor's perspective, each platform can be a significant near-term value driver. While SOBRcheck(TM) is used to manage employees, patients, and people at the point of check-in, which benefits thousands of companies, SOBRsure(TM) can be a game-changer in the teen drivers market. And it's timely to the opportunity. According to the
With graduation, prom, and summer season in full swing, expectations are high that SOBRsure will earn significant adoption. And with a price point making it attainable to most and pre-orders ramping up, evidence points to that welcome trend starting sooner than later. But keep in mind that tapping into that market is just the tip of the revenue-generating iceberg.
Statistics show that the annual cost of alcohol abuse in the
Best of all, SOBR platforms, SOBRcheck(TM) and SOBRsure(TM), are user-friendly solutions that best traditional alcohol detection methods in accuracy, convenience, and dignity. Additionally, unlike competing platforms and devices, SOBRcheck(TM) seamlessly integrates with client infrastructures, providing real-time cloud-based reports through privacy-compliant measures to assess and report alcohol consumption during testing and continuously throughout the desired measurement period.
Indeed, the best way to describe the differences of SOBRcheck(TM) is as advantages. And as seen through the expanding adoption by current clients, they could accelerate widespread user adoption by besting the deficiencies associated with decades-old screening technologies. Remember, conventional detection methods require frequent calibration, are prone to inaccuracies, and present false positives triggered by common substances such as mouthwash or cologne. These methods also rely on intrusive detection techniques that can make the systems impractical to implement and demeaning to workers. Furthermore, most of these platforms rely on a single measurement, which can lead to false assurances of one's continued sobriety beyond that point.
SOBRcheck And SOBRsure Are 21st Century Solutions
Thus, understanding the limitations of the status quo, SOBRsafe developed an alternative to transform how workers and employers monitor inappropriate alcohol consumption. And they succeeded. In addition to integrating 21st-century cloud-based technology, SOBRcheck(TM) simply performs better, surpassing traditional methods in accuracy, convenience, and cost-effectiveness while offering the greater potential to prevent accidents, injuries, and fatalities from alcohol misuse. Not only is it highly accurate, but it also brings favorable changes to the screening and detection processes.
SOBRcheck(TM) doesn't rely on blood, saliva, or breath samples to measure for alcohol, instead measuring vapors in the skin with a simple finger touch. Better yet, the platform can detect alcohol presence with impressive 93% accuracy, surpassing the mid-80% accuracy of traditional devices. Additionally, SOBRcheck(TM) is hygienic, user-friendly, and requires no special training for employees or individuals being monitored. These features make it accessible for any individual or company to use.
That's more than a valuable distinction; it's a value driver, putting over 243,000 fleet companies in
A Tool To Curb Workplace Alcohol Use And Abuse
That's not surprising, as studies show that over 50% of workplace accidents are alcohol-related. Not only can these accidents cause a company's insurance premiums to skyrocket, but those directly involved, and their families, can suffer life-changing injuries or hardships. That doesn't need to be the case.
SOBR offers the perfect platform to support businesses in maintaining a 100% alcohol-free workplace, which can positively impact cost savings and potential catastrophe. In addition to that, SOBR technology has the potential to improve employee productivity, reduce the risk of injury or death in the workplace, and enable proactive treatment rather than termination. Realizing the power of these distinct advantages, SOBR is focused on raising awareness of the many benefits its next-generation platform can offer potential clients and their employees.
Scoring Impressive Revenue-Generating Deals
In addition to its oil and gas services sector deal, SOBRsafe signed agreements with prominent companies such as Continental Services,
Those include strategic moves to enhance efficiency and quality while reducing fixed costs. The company recently announced a deal outsourcing manufacturing and customer support, signing agreements with BGM Electronic Services and Helm, respectively. BGM will manage SOBRsafe's design, engineering, manufacturing, and testing. Another benefit of that relationship is that it could provide SOBR introductions to BGM clients such as
And that potential is deserved. From a product and platform perspective, SOBR technology is simply best-in-class. Unlike traditional methods that involve blood samples or forceful blowing into a tube for an extended period, SOBRcheck(TM) utilizes finger-touch technology that analyzes the natural humidity and vapor from the skin to generate a result within 10 seconds and with an accuracy of 93%. That's impressive, considering that devices like the Breathalyzer can take up to 30 seconds of forcefully blowing into a tube only to present results with low to mid 80% accuracy. Other traditional technologies fare no better. But remember this when appraising the SOBR value proposition: the device is only part of SOBR's overall monetization strategy; SaaS services are another value driver.
SOBR is already monetizing the value of its SaaS capabilities through signed agreements, including a deal with a Top 100 Property & Casualty insurance company to test SOBR's technology with its fleet customers. Should the results align with expectations, this respected but unnamed carrier may explore incorporating SOBRsafe technology as a safety solution and incentive for customer discounts. Although specific revenue projections were not provided, A-Rated carriers typically possess a significant customer base.
Additional contributions from these SaaS services appear likely, given recent momentum-generating deals with the companies mentioned that endorse SOBRcheck(TM) adoption.
Growing Its Customer Base, Reaching More Domestic And International Markets
There's more driving the value proposition. Specifically, SOBR is making significant strides to transform its ambition into revenue. Since 2022, the company has tripled its in-house sales team, recruiting specialists to serve the justice, commercial fleet, and captive insurance sectors. Moreover, SOBR has implemented a "force multiplier" distributor strategy, leveraging groups' trust-based relationships with potential alcohol detection buyers. This approach aims to expedite sales of SOBRcheck(TM) to early adopters and innovators, all at no fixed cost to SOBRsafe. By the end of the year, these efforts led to signing contracts with 14 distributors, aligning them with 83 sales professionals and a potential user base of up to 20,000 customers.
Indeed, maximizing resources to expand market presence can be immediately accretive to growth. And so can marketing other products, including its SOBRsure(TM) wristband, a wearable alcohol detection and monitoring device that has earned considerable attention in the fleet, rehabilitation, and justice sectors. A clear indication of that interest was shown in an announcement in July last year, in which SOBR shared that an innovative in-home alcohol treatment provider placed a pre-order for 1,150 white-label bands. In another update, SOBR announced that a specialized, member-based rideshare company has committed to equipping its highly vetted drivers with SOBRsure(TM) upon its commercial launch. This opens up possibilities within the expansive market for school-bus drivers and related services that depend on the sobriety of its employees to keep customers, which can include millions of children, safe. And not only in
SOBR's commitment to preventing alcohol abuse in the workplace has landed them deals with businesses outside
Another deal has SOBRsafe entering into an agreement with global distributor
SOBRsafe also announced signing a software-as-a-service agreement with a prominent Native American tribe, a self-governing nation serving thousands of members in
A Sum Of Its Parts Calculation Exposes Disconnect
All told, SOBR's sum of its parts helps expose a valuation disconnect worthy of immediate consideration. Note that while still under the radar, SOBR is making its way onto investors' screens, not from hype but from substance proving its technology is a multi-industry alcohol detection game changer. But here's the most interesting part of the value proposition: even single parts of the SOBR asset portfolio can justify and support higher share prices. But appraising in that way isn't a fair representation.
SOBR has at least two products that are changing the alcohol detection landscape, and each targets multi-billion dollar market opportunities with considerable built-in demand. The better news is that the SOBR story isn't a wait-and-see proposition. It's already marketing its products, penetrating lucrative markets, and has a revenue-generating tailwind, which is expected to strengthen significantly in 2H/2023.
In other words, current prices aren't just attractive; they may present a valuation disconnect and near, mid, and long-term investment opportunity that is too good to ignore. Its technology, cash to accelerate growth, near-term product launch targeting a massive teen drivers market, and faster-than-expected market penetration into the transportation sector justify that optimism.
In fact, with updates expected about the speed of penetrating the
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