Company Overview - Socket Mobile, Inc. is a leading provider of data capture and delivery solutions aimed at enhancing productivity in workforce mobilization [3] - The company's revenue is primarily driven by the deployment of third-party barcode-enabled mobile applications that integrate its cordless barcode scanners and contactless reader/writers [3] - Key markets for Socket Mobile include specialty retail, field service, digital ID, transportation, and manufacturing [3] Upcoming Financial Results - Socket Mobile will release its first quarter 2025 financial results on April 24, 2025, at the close of the market [1] - A conference call to discuss these results will take place at 5 p.m. Eastern Time (2 p.m. Pacific Time) on the same day [1] Accessing the Conference Call - Investors can access the live conference call via a provided link or by dialing a toll-free number within the U.S. [2]

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]

Core Viewpoint - Socket Mobile, Inc. reported improved financial performance for both Q4 and the full year 2024 compared to 2023, primarily driven by growth in retail POS application providers, although adoption in warehousing and logistics is slower than anticipated [4]. Financial Highlights Fourth Quarter 2024 - Revenue reached $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 [8]. - Gross margin was 51.0%, down from 52.8% in the prior year quarter but up from 49.0% in the preceding quarter [8]. - Operating loss was $411,000, an improvement from a loss of $476,000 a year ago and $1,031,000 in the preceding quarter [8]. - Diluted earnings per share were $0.00, compared to $0.08 a year ago and a net loss per share of ($0.15) in the prior quarter [8]. Full Year 2024 - Total revenue for 2024 was $18.8 million, up 10.2% from $17.0 million in 2023 [8]. - Gross margin for the year was 50.4%, compared to 49.7% in 2023 [8]. - Operating loss for 2024 was $2.5 million, an improvement from a loss of $3.1 million in 2023 [8]. - Net loss per share was ($0.30), compared to ($0.27) in the prior year [8]. Product Development and Market Strategy - The company launched several new products in 2024, including the XtremeScan product family and the S320 countertop QR Code Payment Reader, targeting the growing BYOD market [5][6]. - The S320 supports various functionalities beyond QR Code payment processing, enhancing its appeal to retail POS application providers [6]. - An updated developer portal, Alfred, was introduced to improve customer engagement and support for developers [7]. Future Outlook - The company remains committed to innovation and expanding its product offerings while strengthening its market position [7].

Core Insights - Socket Mobile, Inc. announces compatibility of its XtremeScan and DuraSled scanning solutions with the new iPhone 16e, enhancing data capture capabilities in industrial environments [1][4] Product Features - The iPhone 16e is designed for durability and cost-effectiveness, featuring an extra-long battery life and enhanced drop resistance, making it suitable for sectors like warehousing, logistics, and manufacturing [2] - Socket Mobile's XtremeScan provides rugged protection against water, dust, and drops, while DuraSled offers a sleek design for one-handed scanning, both enhancing the iPhone 16e's functionality in challenging conditions [3] Business Impact - The integration of Socket Mobile's scanning solutions with the iPhone 16e allows businesses to leverage the iOS platform for efficient data capture, improving overall productivity and user satisfaction [4] - CaptureSDK enables seamless compatibility with existing applications, allowing developers to enhance their apps with reliable data capture performance without additional work [4]

Core Insights - Socket Mobile, Inc. is expanding its DuraScan product family to enhance data capture solutions specifically for the logistics and manufacturing sectors [1][2] Product Details - The new DuraScan D762 is a high-performance 1D/2D barcode scanner designed for warehousing, logistics, and manufacturing environments [2][3] - The D762 offers a read range of up to 14 feet, allowing workers to scan pallets, inventory, and packages from a distance, which is beneficial in fast-paced warehouse operations [3] - The scanner is compatible with mobile applications that support Socket Mobile devices, making it suitable for various platforms including iOS and Android [3][4] Strategic Commitment - The company aims to empower logistics and manufacturing partners with tools to enhance operational performance, with the D762 being the first in a series of specialized data capture solutions [4] - The D762 is designed to address the unique challenges faced by these industries, providing extended range and fast scanning capabilities [4] Compatibility and Integration - The D762 is fully compatible with existing applications using Socket Mobile's CaptureSDK, allowing for seamless integration without additional work [4] - Application developers can utilize CaptureSDK to enhance their apps' data capture performance, increasing overall productivity and customer satisfaction [4] Availability and Pricing - The DuraScan D762 is currently available on the Socket Mobile website and will be distributed through partners starting in March, with a manufacturer's suggested retail price (MSRP) of $699 [5]

Company Overview - Socket Mobile, Inc. is a leading provider of data capture and delivery solutions aimed at enhancing productivity in workforce mobilization [3] - The company's revenue is primarily driven by the deployment of third-party barcode-enabled mobile applications that integrate its cordless barcode scanners and contactless reader/writers [3] - Key markets for Socket Mobile include specialty retail, field service, digital ID, transportation, and manufacturing [3] Financial Results Announcement - Socket Mobile will release its fourth quarter and full year 2024 financial results on February 25, 2025, at the close of the market [1] - A conference call to discuss these results will take place at 5 p.m. Eastern Time (2 p.m. Pacific Time) on the same day [2] Investor Contact Information - The Chief Financial Officer, Lynn Zhao, can be contacted at 510-933-3016 for investor inquiries [4]

Core Insights - Socket Mobile, Inc. has made its CaptureSDK publicly available on GitHub, enhancing accessibility and collaboration for developers [1][2] - The open access to CaptureSDK allows developer partners to integrate and utilize a variety of development tools, including SocketCam camera scanning, to improve workplace productivity [2][3] - The integration of CaptureSDK is free for app developers, providing a streamlined solution for accessing all Socket Mobile products [3][5] Developer Support and Functionality - Socket Mobile is committed to transparency and providing high-performance integration tools, enabling developers to create user-focused applications [3][5] - Regular updates to CaptureSDK ensure compatibility with new operating systems and products, allowing developers to stay informed through real-time notifications on GitHub [4] - The enhancements in CaptureSDK support diverse industries such as retail, logistics, and commercial services, optimizing workflows and improving customer experiences [5]