Socket Mobile Reports Q3 2024 Results

TL;DR

Socket Mobile's Q3 sales up slightly to $6.66M YTD. Holding steady.

AI Summary

Socket Mobile, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported net sales of $6.66 million for the nine months ended September 30, 2024, a slight increase from $6.33 million in the same period of 2023. The filing details financial performance and operational updates for the third quarter of 2024.

Why It Matters

This filing provides investors with the latest financial health and operational performance of Socket Mobile, Inc., crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: medium — The company operates in a competitive technology sector, and its financial performance can be sensitive to market demand and technological shifts.

Key Numbers

• $6.66M — Net Sales (YTD) (Represents sales for the first nine months of 2024, showing a slight increase from the prior year.)
• $6.33M — Net Sales (YTD) (Represents sales for the first nine months of 2023, used for year-over-year comparison.)

Key Players & Entities

• SOCKET MOBILE, INC. (company) — Filer
• 20240930 (date) — Reporting Period End Date
• 20241108 (date) — Filing Date
• 6656570 (dollar_amount) — Net Sales for nine months ended 2024-09-30
• 6332704 (dollar_amount) — Net Sales for nine months ended 2023-09-30

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common stock, $0.001 Par Value per Share SCKT NASDAQ Ind
• $600,000 — y adjusted EBITDA covenants to negative $600,000 for Q3 2024 and negative $200,000 for Q
• $200,000 — ative $600,000 for Q3 2024 and negative $200,000 for Q4 2024. Interest expense on the
• $130,000 — rs elected to convert note principal of $130,000 into shares of the Company's common. Th

Filing Documents

• q3_2024.htm (10-Q) — 688KB
• exhibit31_1.htm (EX-31) — 14KB
• exhibit31_2.htm (EX-31) — 14KB
• exhibit32_1.htm (EX-32) — 12KB
• 0000944075-24-000083.txt ( ) — 3601KB
• sckt-20240930.xsd (EX-101.SCH) — 26KB
• sckt-20240930_cal.xml (EX-101.CAL) — 53KB
• sckt-20240930_def.xml (EX-101.DEF) — 56KB
• sckt-20240930_lab.xml (EX-101.LAB) — 203KB
• sckt-20240930_pre.xml (EX-101.PRE) — 167KB
• q3_2024_htm.xml (XML) — 513KB

Financial Information

Part I. Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): Condensed Statements of Operations – Three Months and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 1 Condensed Balance Sheets - September 30, 2024 (Unaudited) and December 31, 2023 2 Condensed Statements of Stockholders' Equity – Three Months and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 3 Condensed Statements of Cash Flows - Nine Months Ended September 30, 2024 and 2023 (Unaudited) 5 Notes to Condensed Financial Statements (Unaudited) 6

Management's Discussion and Analysis of Financial Condition and

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 23

Controls and Procedures

Item 4. Controls and Procedures 23

Other Information

Part II. Other Information

Risk Factors

Item 1A. Risk Factors 24

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Exhibits

Item 6. Exhibits 34

Signatures

Signatures 35 Index PART I

Financial Statements

Item 1. Financial Statements SOCKET MOBILE, INC. CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues $ 3,872,336 $ 3,205,893 $ 13,931,531 $ 12,635,228 Cost of revenues 1,975,151 1,787,696 6,945,258 6,492,981 Gross profit 1,897,185 1,418,197 6,986,273 6,142,247 Operating expenses: Research and development 1,162,025 1,206,452 3,602,060 3,643,501 Sales and marketing 1,122,261 1,002,206 3,307,777 3,013,577 General and administrative 644,175 608,094 2,128,030 2,130,691 Total operating expenses 2,928,461 2,816,752 9,037,867 8,787,769 Operating loss ( 1,031,276 ) ( 1,398,555 ) ( 2,051,594 ) ( 2,645,522 ) Interest expense, net ( 84,164 ) ( 76,440 ) ( 228,892 ) ( 169,709 ) Net loss before income taxes ( 1,115,440 ) ( 1,474,995 ) ( 2,280,486 ) ( 2,815,231 ) Income tax benefit (expense) — 150,000 — ( 16,000 ) Net loss $ ( 1,115,440 ) $ ( 1,324,995 ) $ ( 2,280,486 ) $ ( 2,831,231 ) Net loss per share: Basic $ ( 0.15 ) $ ( 0.18 ) $ ( 0.30 ) $ ( 0.39 ) Diluted $ ( 0.15 ) $ ( 0.18 ) $ ( 0.30 ) $ ( 0.39 ) Weighted average shares outstanding: Basic 7,601,071 7,319,782 7,541,591 7,197,371 Diluted 7,601,071 7,319,782 7,541,591 7,197,371 See accompanying notes to condensed financial statements. 1 Index SOCKET MOBILE, INC. CONDENSED BALANCE SHEETS September 30, 2024 (Unaudited) December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 2,913,339 $ 2,826,630 Accounts receivable, net 1,441,258 1,699,696 Inventories, net 5,250,413 5,409,047 Prepaid expenses and other current assets 471,776 440,730 Deferred cost on shipments to distributors 265,463 322,580 Total current assets 10,342,249 10,698,683 Property and equipment: Machinery and office equipment 2,826,675 2,700,759 Computer equipment, software and website development 3,8

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View this 10-Q filing on SEC EDGAR