8-K
Socket Mobile, Inc. (SCKT)
UNITED STATES
SECURITIESAND EXCHANGE COMMISSION
Washington,DC 20549
FORM8-K
CURRENTREPORT
Pursuantto Section 13 or 15(d) of
TheSecurities Exchange Act of 1934
April 22, 2021
Date of Report
(Date of earliest event reported)
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SOCKETMOBILE, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-13810 | 94-3155066 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer<br><br>Identification No.) |
39700 Eureka Drive
Newark, CA 94560
(Address of principal executive offices, including zip code)
(510) 933-3000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title<br> of each class | Trading<br> Symbol(s) | Name<br> of each exchange on which registered |
|---|---|---|
| Common<br> stock, $0.001 Par Value per Share | SCKT | NASDAQ |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition
On April 22, 2021, Socket Mobile, Inc. issued a press release reporting its results for the three months ended March 31, 2021. The full text of the press release is furnished as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description |
|---|---|
| 99.1 | Text<br> of press release, dated April 22, 2021, titled "Socket<br>Mobile Reports First Quarter Results". |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SOCKET MOBILE, INC. | |
|---|---|
| Date: April 22, 2021 | /s/ Lynn Zhao |
| Lynn Zhao | |
| Vice President, Finance and Administration <br><br>and Chief Financial Officer |
EXHIBIT INDEX
| Exhibit Number | Description |
|---|---|
| 99.1 | Text<br> of press release, dated April 22, 2021, titled "Socket<br>Mobile Reports First Quarter Results". |
Exhibit 99.1
SocketMobile Reports First Quarter Results
NEWARK,Calif., – April 22, 2021 – Socket Mobile, Inc. (NASDAQ: SCKT), a leading innovator of data capture and delivery solutions for enhanced workplace productivity, today reported financial results for the first quarter of 2021.
FirstQuarter Financial Highlights:
| • | Revenue<br> for the first quarter of 2021 was $4.8 million, up 14% from $4.2 million in the first quarter<br> of 2020. |
|---|---|
| • | Operating<br> expenses for both the first quarter of 2021 and 2020 were $2.3 million. |
| --- | --- |
| • | Net<br> income for the first quarter of 2021 was $203,000, or $0.03 per basic and fully diluted share,<br> compared to a net loss of ($90,000), or ($0.01) per basic and fully diluted share, in the<br> first quarter of 2020. |
| --- | --- |
| • | Q1<br> 2021 ending cash position of $5.0 million, an increase of $2.8 million from the previous<br> quarter. |
| --- | --- |
“We are off to a strong start to 2021 with continued solid growth in bookings. The deployments of business applications, particularly in retail as the economy re-opens, have served as a key driver of our underlying growth in Q1,” said Kevin Mills, president and chief executive officer. “We are seeing strong demand but are also experiencing supply chain and logistics issues. Our operations team is taking every measure to cope with supply interruption and to protect our supply and margins. We are working hard and remaining focused on serving our customers, while ensuring we stay safe and healthy.”
“The positive demand trend we are seeing is encouraging as it validates our application driven business model. We remain focused on strengthening our application developer tools, meeting the requirements of our customers with a breadth of products that align with their needs, and investing in new products to drive long-term profitable growth.
“In Q1, we entered into a technology transfer agreement with SpringCard SAS, a market leader in the contactless field. Under the agreement, we acquired a perpetual, royalty-free license to the core technology to use in our products and to support new requirements in the future. Our DuraScan D600 Contactless Reader/Writer and SocketScan S550 Contactless Reader/Writer include this core contactless technology. The SocketScan S550 supports both contactless cards and phone-centric mobile passes. The S500 is Apple Value Added Services (VAS) and Google Wallet certified for mobile passes.
“We look forward to providing more details on the key drivers of our recent performance along with updates on our business and products during our first quarter earnings call,” concluded Mills.
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ConferenceCall
Management of Socket Mobile will hold a conference call and web cast today at 2 P.M. Pacific (5 P.M. Eastern) to discuss the quarterly results and outlook for the future. The dial-in number to access the call is (888) 424-8151 passcode 7255 653. From international locations, obtain the local dial-in number through your web browser at http://web.meetme.net/r.aspx?p=11&a=UgMKNZxUkuOKVY. A live and replay audio webcast of the conference call can be accessed through a link
https://onlinexperiences.com/Launch/QReg/ShowUUID=DBDC6C8D-EF67-42D9-935C-0CB52CE909DD&LangLocaleID=1033
AboutSocket Mobile, Inc.
Socket Mobile is a leading provider of data capture and delivery solutions for enhanced productivity in workforce mobilization. Socket Mobile’s revenue is primarily driven by the deployment of third-party barcode enabled mobile applications that integrate Socket Mobile’s cordless barcode scanners and contactless reader/writers. Mobile Applications servicing the specialty retailer, field service, transportation, and manufacturing markets are the primary revenue drivers. Socket Mobile has a network of thousands of developers who use its software developer tools to add sophisticated data capture to their mobile applications. Socket Mobile is headquartered in Newark, Calif. and can be reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on Facebook, Twitter @socketmobile and on our sockettalk blog.
Forward-LookingStatements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements regarding new mobile computer and data collection products, including details on the timing, distribution and market acceptance of the products, and statements predicting trends, sales and market conditions and opportunities in the markets in which we sell our products. Such statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in such forward-looking statements as a result of a number of factors, including, but not limited to, the risk that our new products may be delayed or not rollout as predicted, if ever, due to technological, market, or financial factors, including the availability of necessary working capital, the risk that market acceptance and sales opportunities may not happen as anticipated, the risk that our application partners and current distribution channels may choose not to distribute the new products or may not be successful in doing so, the risk that acceptance of our new products in vertical application markets may not happen as anticipated, and other risks described in our most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission.
| Socket Mobile Investor Contact: |
|---|
| Lynn<br> Zhao |
| Chief<br> Financial Officer |
| 510-933-3016 |
| [email protected] |
Socketis a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.
©2021, Socket Mobile, Inc. All rights reserved.
-- Financial tables to follow --
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SocketMobile, Inc.
CondensedSummary Statements of Operations (Unaudited)
(Amountsin thousands except per share amounts)
| Three months ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Revenue | $ | 4,813 | $ | 4,221 | ||
| Cost of revenue | 2,239 | 1,997 | ||||
| Gross profit | 2,574 | 2,224 | ||||
| Gross profit margin percent | 53.5 | % | 52.7 | % | ||
| Research & development | 931 | 881 | ||||
| Sales & marketing | 660 | 768 | ||||
| General & administrative | 741 | 666 | ||||
| Total operating expenses | 2,332 | 2,315 | ||||
| Operating income (loss) | 242 | (91 | ) | |||
| Other income | 10 | 20 | ||||
| Interest expense, net | (49 | ) | (19 | ) | ||
| Deferred income tax benefit (expense) | — | — | ||||
| Net income (loss) | $ | 203 | $ | (90 | ) | |
| Net income (loss) per share: <br>Basic <br>Fully Diluted | $<br><br> $ | 0.03<br><br>0.03 | $<br><br>$ | (0.01)<br> <br>(0.01) | ||
| Weighted average shares outstanding: <br>Basic <br>Fully Diluted | 6,484<br> <br>7,306 | 6,014<br> <br>6,014 |
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SocketMobile, Inc.
CondensedSummary Balance Sheets
(Amountsin Thousands)
| December 31, | ||||||
|---|---|---|---|---|---|---|
| (Unaudited)<br> <br>2021 | 2020* | |||||
| Cash | $ | 4,961 | $ | 2,122 | ||
| Accounts receivable | 2,407 | 2,113 | ||||
| Inventories | 3,725 | 3,196 | ||||
| Deferred costs on shipments to distributors | 179 | 170 | ||||
| Other current assets | 388 | 335 | ||||
| Property and equipment, net | 858 | 848 | ||||
| Deferred tax assets | 5,507 | 5,507 | ||||
| Intangible assets, net | 1,909 | — | ||||
| Operating leases right-of-use assets | 513 | 609 | ||||
| Other long-term assets | 148 | 159 | ||||
| Total assets | $ | 20,595 | $ | 15,059 | ||
| Accounts payable and accrued liabilities | $ | 2,575 | $ | 1,748 | ||
| Bank non-formula loan | 1,000 | — | ||||
| Subordinated convertible notes payable, net of discount | 141 | 170 | ||||
| Subordinated convertible notes payable, net of discount-related party | 1,179 | 1,272 | ||||
| Deferred revenue on shipments to distributors | 47 | 54 | ||||
| Deferred service revenue | 47 | 54 | ||||
| Operating lease liabilities | 625 | 741 | ||||
| Total liabilities | $ | 6,092 | $ | 4,436 | ||
| Common stock | 65,417 | 61,740 | ||||
| Accumulated deficit | (50,914 | ) | (51,117 | ) | ||
| Total stockholder equity | $ | 14,503 | $ | 10,623 | ||
| Total Liabilities and Equity | $ | 20,595 | $ | 15,059 |
*Derived from audited financial statements.
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