Socket Mobile(SCKT) - 2024 Q3 - Quarterly Report

Revenue Performance - Total revenues for Q3 2024 were approximately $3.9 million, a 21$3.2 million in Q3 2023[85] - For the nine-month period, revenue increased by 10.3% to approximately $13.9 million from$12.6 million in the prior year[85] Profitability - Gross profit margin for Q3 2024 was 49%, up from 44.2% in the prior year, while the nine-month margin was 50.1%, up from 48.6%[86] Expenses - Research and development expenses for Q3 2024 were approximately $1.2 million, a decrease of 4$1.1 million, an increase of 12% compared to $1.0 million in Q3 2023[89] - General and administrative expenses for Q3 2024 were approximately$644,000, an increase of 6% compared to $608,000 in Q3 2023[90] - Interest expense for Q3 2024 was approximately$84,000, compared to $76,000 in the same period last year, due to new convertible notes issued in August 2024[91] Cash Flow - Net cash used in operating activities for the first nine months of 2024 was approximately$434,000, an improvement from $523,000 in the same period of 2023, with a net loss of$2.3 million in 2024 compared to $2.8 million in 2023[95] - Changes in operating assets and liabilities resulted in net cash used in operating activities of approximately$120,000 in 2024, primarily due to operating lease payments, while in 2023, it provided approximately $365,000[96][97] - Net cash provided by financing activities was approximately$1.0 million in the first nine months of 2024, compared to $1.5 million in the same period of 2023[99] Investments - Total investments in manufacturing tooling, firmware development, website development, and leasehold improvements were approximately$564,000 in 2024, down from $1.5 million in 2023[98] Obligations and Credit Facilities - Total contractual obligations as of September 30, 2024, amounted to$8,190,000, with $5,429,000 due within one year[103] - The company has a revolving credit line facility of up to$2.5 million, with variable interest rates based on the lender's prime rate, which could increase interest expenses if rates rise[106] Foreign Exchange Impact - A 10% adverse change in foreign exchange rates would have increased the net loss by approximately $34,400 for the third quarter of 2024, while the actual net adjustment was a gain of approximately$3,400[107] Product Development - The company introduced the XtremeScan family in August 2023, targeting the industrial barcode scanning market[73] - The DuraScan Wear DW930 & DW940 are the first wearable additions to the DuraScan Product Family, enhancing scanning capabilities in industrial settings[77]