Socket Mobile(SCKT) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter revenue was $4.0 million, an 18% decrease from $4.8 million in the prior-year quarter, but a 28% sequential increase from $3.1 million in Q3 2025 [4]. - Full year revenue totaled $15.1 million, a 19.6% year-over-year decrease from $18.8 million in 2024 [4]. - Operating loss for Q4 2025 was $0.6 million, compared to a loss of $0.4 million in the prior-year quarter, and a loss of $1.1 million in Q3 2025 [4]. - The company reported a total operating loss of $3.2 million for the full year 2025, compared to a loss of $2.5 million in 2024 [4]. - The accumulated deficit increased to $64.6 million in 2025 from $50.2 million in 2024, reflecting ongoing financial challenges [16]. Gross Margin - Gross margin for Q4 2025 was 50.2%, compared to 51.0% in the prior-year quarter, and 49.7% for the full year 2025, down from 50.4% in 2024 [4]. Tax and Net Loss - The company recognized a one-time adjustment of $10.7 million against deferred tax assets, resulting in a net loss per share of ($1.43) for Q4 2025, compared to $0.00 in the prior-year quarter [4]. - Total assets decreased to $14.4 million in 2025 from $27.3 million in 2024, primarily due to a reduction in deferred tax assets [16]. Product Development and Expansion - The company launched several new products, including CaptureSDK 2.0 and the SocketScan S721, enhancing its mobile data capture capabilities [6]. - Socket Mobile received official approval in Japan for its S370 and S550 models as certified 'My Number Card' readers, expanding its international presence [6].