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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 simultaneously satisfy 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 defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(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 reporting its 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 Act of 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
Exhibit 99.1
Socket Mobile Reports First Quarter 2024 Results
FREMONT, Calif., – May 1, 2024 – Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions for enhanced workplace productivity, today reported financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”) for the three months ended March 31, 2024.
First Quarter 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. “We were pleased with the operational improvement and expense control.”
“As we look ahead, our focus remains on promoting our new products and pursuing new opportunities. We’ve made progress in promoting our camera-based scanning technology by integrating it with our app partners’ platforms, enabling their customers to scan barcodes directly 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 to SocketCam C860, this selection will generate a recurring revenue stream for us each month,” continued Mills.
“We also see traction with our XtremeScan and DuraScan Wear products in the industrial barcode market, facilitating the use of iPhones and iOS applications in rugged work environments.
“Additionally, we announced availability of the DuraSled™ Bluetooth Barcode Scanners for the iPhone 15. Our DuraSled models combine 1D/2D Bluetooth barcode scanning capabilities into a handheld sled case for iPhones, creating a one-handed solution. Employers can now support workers who use iPhone 15 in addition to supporting older iPhones all using the same chargers, accessories, and SDK,” continued Mr. Mills.
"We look forward to discussing our new products and strategies for fostering sales growth in the upcoming conference call,” concluded Mr. Mills.
Conference Call
Management of Socket Mobile will hold a conference call today at 2 P.M. Pacific (5 P.M. Eastern) to discuss the quarterly results and outlook for the 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).
About Socket Mobile, Inc.
Socket Mobile is a leading provider of data capture and delivery solutions for enhanced productivity in workforce mobilization. Socket Mobile’s revenue is primarily driven by the deployment of third-party barcode-enabled mobile applications that integrate Socket Mobile’s cordless barcode scanners and contactless readers/writers. Mobile Applications servicing the specialty retailer, field service, digital ID, transportation, and manufacturing markets are the primary revenue drivers. Socket Mobile has a network of thousands of developers who use its software developer tools to add sophisticated data capture to their mobile applications. Socket Mobile is headquartered in Fremont, Calif., and can be reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on LinkedIn, Twitter, and keep up with our latest News and Updates.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements regarding new 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 statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in such forward-looking statements as 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 market acceptance and sales opportunities may not happen as anticipated, the risk that our application partners and current distribution channels may choose not to distribute the new products or may not be successful in doing so, the risk that acceptance of our new products in vertical application markets may not happen as anticipated, and other risks described in our most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission.
| Socket Mobile Investor Contact: |
| Lynn Zhao |
| Chief Financial Officer |
| 510-933-3016 |
| lynn@socketmobile.com |
Socket Mobile is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.
© 2024, Socket Mobile, Inc. All rights reserved.
– Financial tables to follow –
Socket Mobile, Inc.
Condensed Summary Statements of Operations (Unaudited)
(Amounts in 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 | ||||||
Socket Mobile, Inc.
Condensed Summary Balance Sheets
(Amounts in Thousands)
| (Unaudited) March 31, 2024 |
December 31, 2023* | |||||||
| 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 | ||||
*Derived from audited financial statements.
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