Socket Mobile(US:SCKT)2025-08-14 18:38Financial Performance - Total revenues for Q2 2025 were approximately $4.04 million, reflecting a 20% decline compared to $5.08 million in Q2 2024[89] - Gross profit margin on sales reached 49.9% in Q2 2025, slightly lower from 50.9% in the same period last year[90] - The net loss for the first half of 2025 was approximately $1,786,000, up from a net loss of $1,165,000 in the first half of 2024, indicating a year-over-year increase of 53.3%[98] Expenses - Research and development expenses were approximately $1,101,000 in Q2 2025, reflecting an 11% decrease compared to $1,232,000 in Q2 2024[91] - Sales and marketing expenses totaled approximately $1,025,000 in Q2 2025, reflecting an 11% decrease compared to $1,154,000 in the same quarter last year[92] - General and administrative expenses were approximately $569,000 in Q2 2025, reflecting a 22% decrease from approximately $733,000 in Q2 2024[93] - Interest expense, net of interest income, was approximately $115,000 in Q2 2025 compared to $72,000 in Q2 2024[94] Cash Flow - Net cash used in operating activities was approximately $1,197,000 in the first half of 2025, compared to $638,000 in the same period of 2024, reflecting an increase of 87.6%[98] - Net cash provided by financing activities was $1,500,000 in the first half of 2025, a significant increase from $24,000 in the same period of 2024[100] - Changes in operating assets and liabilities resulted in net cash used in operating activities of approximately $657,000 in the first half of 2025[98] Assets and Liabilities - Deferred tax asset as of June 30, 2025, was valued at $10,663,419, up from $10,112,419 as of June 30, 2024[96] - Total contractual obligations as of June 30, 2025, amounted to $5,697,000, with $3,456,000 due within one year[103] - The company has no off-balance sheet arrangements as of June 30, 2025[104] Foreign Exchange Impact - An adverse change of 10% in foreign exchange rates would have resulted in a decrease in net income of approximately $48,400 for the second quarter of 2025[106] - The actual net adjustment for foreign currency effects in the second quarter of 2025 was a gain of approximately $30,000[106] Product and Services - The company’s products are integrated into mobile applications across various sectors, including POS, logistics, and healthcare[78] - The company offers a Software Developer Kit (CaptureSDK) to facilitate integration of data capture capabilities into applications[85] Investments - The company invested approximately $189,000 in leasehold improvements and software development in the first half of 2025, compared to $168,000 in the same period of 2024, representing a 12.5% increase[99] Borrowing Capacity - Borrowings under bank credit line facilities provide up to $3.0 million in capacity, with interest rates subject to a minimum of 4.25% plus 0.75%[105]