Socket Mobile, Inc. (NASDAQ:SCKT) Q1 2025 Earnings Conference Call April 24, 2025 5:00 PM ET Company Participants Kevin Mills - President and Chief Executive Officer Dave Holmes - Chief Business Officer Lynn Zhao - Chief Financial Officer Operator Welcome to Socket Mobile, Inc.’s Q1 2025 Earnings Call. My name is Paul, and I will be your operator for today’s call. Before we begin, I’d like to remind everyone that this conference call may contain forward-looking statements within the meaning of Section 27A o ...

Exhibit 99.1 Socket Mobile Reports First Quarter 2025 Results FREMONT, Calif., – April 24, 2025 – 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, 2025. First Quarter 2025 Financial Highlights: "Our first quarter revenue came in lower than projected, ...

FREMONT, Calif., April 24, 2025 /PRNewswire/ -- 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, 2025.First Quarter 2025 Financial Highlights: Revenue of $4.0 million, reflecting a 20% decrease compared to $5.0 million for the prior year's quarter, ...

FREMONT, Calif., April 17, 2025 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions for enhanced productivity, today announced that it will release its first quarter 2025 financial results at the close of the market on Thursday, April 24, 2025. Management will also host a conference call to discuss these results that will begin at 5 p.m. Eastern Time (2 p.m. Pacific Time). What:              Socket Mobile First Quarter 2025 Results Conference Call Wh ...

FREMONT, Calif., April 8, 2025 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture solutions, today announced its entry into the $27 billion mobile handheld computing market with the launch of the XtremeScan™ iXG and iXS Series, powered by iOS 18.3. The market is projected to grow to $40 billion by 2034, driven by rising demand for mobile solutions in industrial environments.In response to growing demand, Socket Mobile's new iXG and iXS Series represent a breakthrough in t ...

Product Offerings - The company offers a range of cordless data capture devices utilizing barcode scanning and RFID/NFC technologies, compatible with Apple, Google, and Microsoft operating systems [17]. - The XtremeScan product line, introduced in 2024, includes devices designed for industrial environments, enhancing durability and battery life, targeting the underserved BYOD market [18]. - The SocketCam family includes the C820 and C860, with the C860 providing advanced scanning capabilities for damaged barcodes and poor lighting conditions, catering to diverse customer needs [19]. - The DuraScan family features rugged NFC & RFID readers and companion scanners, designed for durability in warehousing, manufacturing, and distribution [20]. - The CaptureSDK simplifies integration for app developers, allowing customization of data capture capabilities and supporting various development tools and frameworks [23]. Financial Performance - Revenue for 2024 was $18.8 million, an increase of 10% compared to $17.0 million for 2023, driven by growth in serving retail POS app providers [125]. - Gross margins on revenue increased to 50.4% in 2024 from 49.7% in 2023, attributed to higher production volumes [126]. - Total revenues for 2024 increased to $18,762,520, representing a 10.2% growth from $17,033,593 in 2023 [161]. - Gross profit for 2024 was $9,451,409, up from $8,462,854 in 2023, indicating a gross margin improvement [161]. - Operating loss narrowed to $(2,462,501) in 2024 compared to $(3,120,993) in 2023, reflecting better operational efficiency [161]. - Net loss for 2024 was $(2,242,350), compared to $(1,919,154) in 2023, with net loss per share at $(0.30) for both years [161]. Market and Competition - The company’s revenue is primarily driven by sales of barcode scanners integrated into mobile Point of Sale applications, with expectations for growth in mobile application markets [31]. - The company faces competition in the camera-based scanning market but offers flexible pricing models to encourage adoption among app partners and end users [39]. - The market for the company's products is characterized by rapidly changing technology and short product life cycles, necessitating timely development and introduction of new products [56]. - The company’s financial performance may be adversely affected by increased competition and price reductions in the market [60]. Operational Aspects - The company distributes products through a worldwide network, including major distributors like Ingram Micro and Amazon, enhancing product availability [34]. - The company’s agreements with distributors are generally nonexclusive and may be terminated on short notice, impacting sales growth [65]. - The company relies on a limited number of qualified suppliers for components, which poses risks of shortages or delays [55]. - The company relies on strategic alliances with key players in the mobile applications market, which may be revoked or lead to competition, potentially delaying product development and customer acquisition [67]. Research and Development - Significant resources have been allocated to research and development for compatibility with operating systems like iOS, Android, and Windows, diverting funds from other projects [68]. - Research and development expenses were approximately $4.7 million in 2024, a decrease of approximately $111,000, or 2%, compared to $4.8 million in 2023 [127]. - Research and development expenses as a percentage of revenue were 25% in 2024, down from 28% in 2023, indicating a focus on maintaining a leadership position in product innovation [128]. Employee and Organizational Structure - The total employee headcount was 59 as of December 31, 2024, compared to 61 in 2023, with 22 in sales, marketing, and customer service [44]. - Sales and marketing expenses in 2024 were approximately $4.4 million, an increase of approximately 10% compared to $4.0 million in 2023, primarily due to increased employee numbers and salary adjustments [129]. - General and administrative expenses in 2024 were $2.78 million, an increase of approximately $44,000 or 2% compared to $2.74 million in 2023, influenced by foreign currency fluctuations [130]. Legal and Compliance - The company has not experienced any material legal proceedings, indicating a stable legal environment [100]. - The company’s ability to maintain effective internal controls is crucial for reliable financial reporting and preventing fraud [52]. - The company may face claims of intellectual property infringement, which could result in substantial liabilities due to aggressive industry litigation [72]. Currency and Financial Risks - The company’s export sales are primarily in Euros and British pounds, making it vulnerable to currency fluctuations that could affect competitiveness [81]. - An adverse change of 10% in foreign exchange rates could have resulted in a decrease in net income of approximately $36,000 for the fourth quarter of 2024 if unprotected [142]. Stock and Equity - As of March 20, 2025, the company had 7,952,988 shares of common stock outstanding, with substantial shares freely tradable in the public market [88]. - The common stock price fluctuated between $1.72 and $0.91 from January 1, 2024, indicating potential volatility influenced by various external factors [90]. - The company reported a total stockholders' equity of $18,160,495 in 2024, down from $19,420,004 in 2023, primarily due to accumulated deficit increases [159]. Cash Flow and Financing - Net cash used in operating activities was $521,485 for 2024, compared to net cash provided by operating activities of $48,562 for 2023 [109]. - Financing activities in 2024 provided approximately $0.9 million, down from approximately $1.3 million in 2023, with significant proceeds from convertible notes [110]. - The company had no outstanding drawings against the existing $2.5 million revolving credit facility as of December 31, 2024 [111].

Financial Data and Key Metrics Changes - Revenue for 2024 was $18.8 million, an increase of 10% over 2023 [4] - Gross margin rose to 50.4%, up from 49.7% in 2023 [19] - Operating loss improved to $2.5 million from a $3.1 million loss in 2023 [4][19] - Adjusted EBITDA for 2024 was negative $318,000 compared to a negative $1 million in 2023 [19] - Q4 2024 revenue grew 10% year-over-year to $4.8 million, up from $4.4 million in Q4 2023 [20] - Q4 operating loss was $411,000 compared to a $475,000 loss in Q4 2023 [21] Business Line Data and Key Metrics Changes - The Xtreme product line, targeted at the industrial market, did not see meaningful deployment in 2024 but is expected to grow in 2025 [5][6] - Significant investments were made in R&D, totaling $4.7 million, primarily for improvements to CaptureSDK [7] Market Data and Key Metrics Changes - The ruggedized scanning market is identified as a large opportunity, with a focus on diversifying beyond retail [10] - The introduction of the XtremeScan product line aims to capture new customer segments in industrial environments [11][12] Company Strategy and Development Direction - The company is focused on expanding its market presence in new markets, particularly in industrial environments [10] - Investments in customer and developer experience were made, including a new website and AI-powered developer support [16] - The strategy aims to reduce dependence on retail and become a more complete data capture company [17] Management Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 was a difficult year for revenue but expressed optimism for deployments in 2025 [5][6] - The company expects to be cash positive in the second half of 2025, with no plans to raise cash in the current year [26] Other Important Information - The company ended 2024 with a cash balance of $2.5 million and inventory levels at $4.9 million [23] Q&A Session Summary Question: Will the company need to raise cash this year? - Management stated that there are currently no plans to raise cash this year, expecting to start the year with enough cash and to be cash positive in the second half [26]

Financial Performance - Q4 2024 revenue was $4.8 million, a 10% increase from $4.4 million in Q4 2023, and a 25% increase sequentially from $3.9 million in Q3 2024[7] - Full year 2024 revenue reached $18.8 million, representing a 10.2% year-over-year increase from $17.0 million in 2023[7] - Gross margin for Q4 2024 was 51.0%, down from 52.8% in Q4 2023, while the full year gross margin improved to 50.4% from 49.7% in 2023[7] - Operating loss for Q4 2024 was $411,000, an improvement from a loss of $476,000 in Q4 2023, and the full year operating loss decreased to $2.5 million from $3.1 million in 2023[7] - The net loss per share for the full year 2024 was ($0.30), compared to ($0.27) in 2023[7] Product Development - The company launched the XtremeScan Mag product family, targeting the BYOD market, which is expected to drive significant growth[6] - The S320 countertop QR Code Payment Reader was introduced, expanding the product offerings for retail POS application providers[8] - A new website and an updated developer portal, Alfred, were launched to enhance customer engagement and support for developers[9] Operational Insights - The company identified key areas for improvement in the warehousing and logistics sectors, which are taking longer to adopt their solutions[5] Asset and Liability Overview - Total assets decreased to $27.3 million in 2024 from $28.7 million in 2023, while total liabilities remained relatively stable[18]

FREMONT, Calif., Feb. 25, 2025 /PRNewswire/ -- 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 and twelve months ended December 31, 2024.Fourth Quarter 2024 Financial Highlights:  Revenue of $4.8 million, a 10% increase compared to $4.4 million in the comparable prior yea ...

FREMONT, Calif., Feb. 24, 2025 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions, is pleased to announce that its industrial and rugged scanning solutions, XtremeScan and DuraSled families, respectively, are compatible with the new iPhone® 16e.The iPhone 16e is a durable, cost-effective device ideally suited for industrial environments. With an extra-long battery life, enhanced drop resistance, and the trusted iOS platform, it is expected to quickl ...