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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
________________________________________
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
May 1, 2024
Date of Report
(Date of earliest event reported)
________________________________________
SOCKET MOBILE, INC.
(Exact name of registrant as specified in its charter)
Delaware 001-13810 94-3155066
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
40675 Encyclopedia Circle
Fremont, CA 94538
(Address of principal executive offices, including zip code)
(510) 933-3000
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneouslysatisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act(17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, $0.001 Par Value per Share SCKT NASDAQ
Indicate by check mark whether the registrant is an emerging growth company as
definedin Rule 405 of the Securities Act of 1933 (17 CFR (s)230.405) or Rule
12b-2 of the Securities Exchange Act of 1934 (17 CFR (s)240.12b-2).
Emerging growth company
[ ]
If an emerging growth company, indicate by check mark if the registrant has
electednot to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section13(a) of
the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition
On May 1, 2024, Socket Mobile, Inc. issued a press release reportingits
results for the three months ended March 31, 2024. The full text of the press
release is furnished as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit No.
Description
99.1 Text of press release, dated May 1, 2024, titled "Socket Mobile Reports First Quarter 2024 Results".
SIGNATURES
Pursuant to the requirements of the Securities Exchange Actof 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SOCKET MOBILE, INC.
By: /s/ Lynn Zhao
Name: Lynn Zhao
Vice President, Finance and Administration
and Chief Financial Officer
Date: May 1, 2024
Exhibit99.1
SocketMobile Reports First Quarter 2024 Results
FREMONT,Calif., - May 1, 2024
- Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and
delivery solutionsfor enhanced workplace productivity, today reported
financial results that are determined in accordance with generally accepted
accountingprinciples in the United States ("GAAP") for the three months ended
March 31, 2024.
FirstQuarter 2024 Financial Highlights:
• Revenue of $5.0 million, reflecting a 15% increase compared to $4.3 million for the prior year's
quarter, and a 13% sequential increase compared to $4.4 million for the preceding quarter.
• Gross margin of 50.3% versus 48.1% in the prior year's quarter and 52.8% in the preceding quarter.
• Operating expenses remained unchanged at $3.0 million compared to the prior
year's period and increased from $2.8 million in the preceding quarter.
• Operating loss amounted to $0.5 million, a decrease from $1.0 million in the prior year's
quarter, and remained unchanged from the loss of $0.5 million in the preceding quarter.
• Cash balances on March 31, 2024 were approximately $2.8M, similar to those as of December 31, 2023.
"Our first quarter results were in line with our expectations," said Kevin
Mills, President, and Chief Executive Officer. "Wewere pleased with the
operational improvement and expense control."
"Aswe look ahead, our focus remains on promoting our new products and pursuing
new opportunities. We've made progress in promotingour camera-based scanning
technology by integrating it with our app partners' platforms, enabling their
customers to scan barcodesdirectly into their apps and enhance productivity.
We're advocating for the adoption of our advanced version of SocketCam
C860,catering to both cost-conscious and feature-conscious data capture
requirements within a single application. As customers upgrade toSocketCam
C860, this selection will generate a recurring revenue stream for us each
month," continued Mills.
"Wealso see traction with our XtremeScan and DuraScan Wear products in the
industrial barcode market, facilitating
theuse of iPhones and iOS applications in rugged work environments.
"Additionally,we announced availability of the DuraSledTM Bluetooth Barcode
Scanners for the iPhone 15. Our DuraSled models combine 1D/2D Bluetoothbarcode
scanning capabilities into a handheld sled case for iPhones, creating a
one-handed solution. Employers can now support workerswho use iPhone 15 in
addition to supporting older iPhones all using the same chargers, accessories,
and SDK," continued Mr. Mills.
"Welook forward to discussing our new products and strategies for fostering
sales growth in the upcoming conference call," concludedMr. Mills.
ConferenceCall
Managementof Socket Mobile will hold a conference call today at 2 P.M. Pacific
(5 P.M. Eastern) to discuss the quarterly results and outlook forthe future.
The dial-in number to access the live conference call is
(800) 237-1091
toll-free from within the U.S. or
(848)488-9280
(toll).
AboutSocket Mobile, Inc.
SocketMobile is a leading provider of data capture and delivery solutions for
enhanced productivity in workforce mobilization. Socket Mobile'srevenue is
primarily driven by the deployment of third-party barcode-enabled mobile
applications that integrate Socket Mobile'scordless barcode scanners and
contactless readers/writers. Mobile Applications servicing the specialty
retailer, field service, digitalID, transportation, and manufacturing markets
are the primary revenue drivers. Socket Mobile has a network of thousands of
developerswho use its software developer tools to add sophisticated data
capture to their mobile applications. Socket Mobile is headquartered
inFremont, Calif., and can be reached at +1-510-933-3000 or www.socketmobile.com
. Follow Socket Mobile on LinkedIn, Twitter, and keep upwith our latest News
and Updates.
Forward-LookingStatements
Thispress release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section21E of the
Securities Exchange Act of 1934, as amended. Such forward-looking statements
include, but are not limited to, statements regardingnew mobile computer and
data collection products, including details on the timing, distribution, and
market acceptance of the products,and statements predicting trends, sales,
market conditions, and opportunities in the markets in which we sell our
products. Such statementsinvolve risks and uncertainties, and actual results
could differ materially from the results anticipated in such forward-looking
statementsas a result of a number of factors, including, but not limited to,
the risk that our new products may be delayed or not rollout as predicted,if
ever, due to technological, market, or financial factors, including the
availability of necessary working capital, the risk that marketacceptance and
sales opportunities may not happen as anticipated, the risk that our
application partners and current distribution channelsmay choose not to
distribute the new products or may not be successful in doing so, the risk
that acceptance of our new products in verticalapplication markets may not
happen as anticipated, and other risks described in our most recent Form 10-K
and 10-Q reports filed withthe Securities and Exchange Commission.
Socket Mobile Investor Contact:
Lynn Zhao
Chief Financial Officer
510-933-3016
lynn@socketmobile.com
SocketMobile is a registered trademark of Socket Mobile. All other trademarks
and trade names contained herein may be those of their respectiveowners.
(c)2024, Socket Mobile, Inc. All rights reserved.
-Financial tables to follow -
SocketMobile, Inc.
CondensedSummary Statements of Operations (Unaudited)
(Amountsin thousands except per share amounts)
Three months ended March 31,
2024 2023
Revenue $ 4,978 $ 4,312
Cost of revenue 2,473 2,240
Gross margin 2,505 2,072
Gross margin percent 50.3 % 48.1 %
Research & development 1,208 1,247
Sales & marketing 1,031 1,006
General & administrative 751 774
Total operating expenses 2,990 3,027
Operating loss (485 ) (955 )
Interest expense, net (72 ) (38 )
Income tax expense - -
Net loss $ (557 ) $ (993 )
Net loss per share:
Basic $ (0.07 ) $ (0.12 )
Fully diluted $ (0.07 ) $ (0.12 )
Weighted average shares outstanding:
Basic 7,442 7,107
Fully diluted 7,442 7,107
SocketMobile, Inc.
CondensedSummary Balance Sheets
(Amountsin Thousands)
(Unaudited) December 31, 2023*
March 31, 2024
Cash $ 2,772 $ 2,827
Accounts receivable 2,073 1,700
Inventories 5,413 5,409
Deferred costs on shipments to distributors 363 323
Other current assets 380 441
Property and equipment, net 2,796 3,033
Deferred tax assets 10,112 10,112
Intangible assets, net 1,528 1,559
Operating leases right-of-use assets 2,976 3,088
Other long-term assets 249 250
Total assets $ 28,662 $ 28,742
Accounts payable and accrued liabilities $ 2,385 $ 2,185
Subordinated convertible notes payable, net of discount 150 150
Subordinated convertible notes payable, net of discount-related party 2,837 2,836
Deferred revenue on shipments to distributors 912 826
Deferred service revenue 34 33
Operating lease liabilities 3,185 3,292
Total liabilities 9,503 9,322
Common stock 68,687 68,391
Accumulated deficit (48,490 ) (47,933 )
Treasury stock (1,038 ) (1,038 )
Total equity 19,159 19,420
Total liabilities and equity $ 28,662 $ 28,742
*Derivedfrom audited financial statements.
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