UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(X)

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2026

( )

TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period ___________________ to ___________________.

Commission file number 1-13810

SOCKET MOBILE, INC.

(Exact name of registrant as specified in its charter)

Delaware		94-3155066
(State of incorporation)		(IRS Employer Identification No.)

40675 Encyclopedia, Fremont, CA 94538

(Address of principal executive offices including zip code)

(510) 933-3000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.001 Par Value per Share	SCKT	NASDAQ

Indicate by check mark whether the registrant (1) has ﬁled all reports required to be ﬁled by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to ﬁle such reports), and (2) has been subject to such ﬁling requirements for the past 90 days. YES [ X ] NO [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES [ X ] NO [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [X]

Smaller reporting company [X] 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. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES [ ] NO [X]

The number of shares of Common Stock ($0.001 par value) outstanding as of May 8, 2026 was 8,240,958 shares.

INDEX

			PAGE NO.
Part I. Financial Information

Item 1. Financial Statements (Unaudited):

Condensed Statements of Operations – Three Months Ended March 31, 2026 and 2025 (Unaudited)			1

Condensed Balance Sheets - March 31, 2026 (Unaudited) and December 31, 2025			2

Condensed Statements of Stockholders’ Equity – Three Months Ended March 31, 2026 and 2025 (Unaudited)			3

Condensed Statements of Cash Flows - Three Months Ended March 31, 2026 and 2025 (Unaudited)			4

Notes to Condensed Financial Statements (Unaudited)			5

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			14

Item 3. Quantitative and Qualitative Disclosures about Market Risk			19

Item 4. Controls and Procedures			20

Part II. Other Information

Item 1A. Risk Factors			21

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			31

Item 6. Exhibits			31

Signatures			32


	Three Months Ended March 31,
	2026			2025

Revenues	$	3,700,309		$	3,965,920

Cost of revenues		1,802,790			1,968,026

Gross profit		1,897,519			1,997,894

Operating expenses:
Research and development		1,090,161			1,131,715
Sales and marketing		901,645			1,106,432
General and administrative		665,380			653,420
Total operating expenses		2,657,186			2,891,567

Operating loss		(759,667	)		(893,673	)

Interest expense, net		(139,909	)		(100,467	)

Net loss	$	(899,576	)	$	(994,140	)

Net loss per share:

Basic	$	(0.11	)	$	(0.13	)
Diluted	$	(0.11	)	$	(0.13	)

Weighted average shares outstanding:

Basic		8,135,728			7,829,484
Diluted		8,135,728			7,829,484


	March 31, 2026 (Unaudited)			December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	1,710,280		$	2,032,468
Accounts receivable, net		2,197,349			1,711,047
Inventories, net		3,870,200			4,220,822
Prepaid expenses and other current assets		566,951			548,379
Deferred cost on shipments to distributors		125,247			122,480
Total current assets		8,470,027			8,635,196

Property and equipment:
Machinery and office equipment		3,125,288			3,101,647
Computer equipment		3,816,571			3,786,880
		6,941,859			6,888,527
Accumulated depreciation		(5,023,208	)		(4,763,692	)
Property and equipment, net		1,918,651			2,124,835

Intangible assets, net		1,272,953			1,304,777
Other long-term assets		285,911			285,911
Operating lease right-of-use asset		1,953,015			2,086,621
Total assets	$	13,900,557		$	14,437,340


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	1,299,202		$	1,309,675
Accrued payroll and related expenses		543,154			713,205
Deferred revenue on shipments to distributors		345,793			335,874
Short term portion of deferred service revenue		17,081			18,091
Subordinated convertible notes payable, net of discount		500,000			400,000
Subordinated convertible notes payable, net of discount-related party		5,486,652			5,083,007
Operating lease – current portion		586,322			575,172
Total current liabilities		8,778,204			8,435,024

Long-term portion of deferred service revenue		8,691			10,167
Long-term portion of operating lease		1,564,571			1,713,536
Total liabilities		10,351,466			10,158,727

Commitments and contingencies		—			—
Stockholders’ equity:
Common stock, $0.001 par value: Authorized – 20,000,000 shares, Issued 8,582,208 and outstanding 8,222,958 at March 31, 2026; Issued 8,336,193 and outstanding 7,976,943 at December 31, 2025		8,223			7,977
Additional paid-in capital		70,031,894			69,862,086
Treasury stock		(1,037,988	)		(1,037,988	)
Accumulated deficit		(65,453,038	)		(64,553,462	)
Total stockholders’ equity		3,549,091			4,278,613
Total liabilities and stockholders’ equity	$	13,900,557		$	14,437,340


							Additional											Total
	Common Stock						Paid-In			Treasury Stock					Accumulated			Stockholders’
	Shares			Amount			Capital			Shares		Amount			Deficit			Equity
Balance at December 31, 2025		7,976,943		$	7,977		$	69,862,086			359,250	$	(1,037,988	)	$	(64,553,462	)	$	4,278,613
Vesting of restricted stocks		324,355			324			(324	)		—		—			—			—
Restricted stock retired for tax withholding		(78,340	)		(78	)		78			—		—			—			—
Stock-based compensation		—			—			170,054			—		—			—			170,054
Net loss		—			—			—			—		—			(899,576	)		(899,576	)
Balance at March 31, 2026		8,222,958		$	8,223		$	70,031,894			359,250	$	(1,037,988	)	$	(65,453,038	)	$	3,549,091


Fiscal Year	Amount
2026 (April 1, 2026 to December 31, 2026)		95,472
2027		127,296
2028		127,296
2029		127,296
2030		127,296
Thereafter		668,297
	$	1,272,953


	March 31,			December 31,
	2026			2025
Raw materials and sub-assemblies	$	4,758,278		$	5,006,124
Finished goods		277,865			350,640
Inventory reserves		(1,165,943	)		(1,135,942	)
Inventory, net	$	3,870,200		$	4,220,822


Issuance Year		Principal Issued		Principal Outstanding*		Maturity Date	Conversion Price
	2020	$	1,400,000	$	1,400,000	August 30, 2027	$	1.46
	2023	$	1,600,000	$	1,600,000	May 26, 2028	$	1.34
	2024	$	1,000,000	$	1,000,000	August 21, 2027	$	0.9515
	2025	$	1,500,000	$	1,500,000	May 30, 2028	$	1.07
	2026	$	500,000	$	500,000	March 27, 2029	$	0.90
	*Principal outstanding as of March 31, 2026.


	Three Months Ended March 31,
Revenues:	2026		2025
United States	$	2,838,126	$	3,060,782
Europe		622,816		546,078
Asia and rest of world		239,367		359,060
Total revenues	$	3,700,309	$	3,965,920


Annual minimum payments:	Amount
2026 (April 1 through December 31, 2026)		510,860
2027		692,644
2028		713,423
2029		425,646
Total minimum payments		2,342,573
Less: Present value factor		(191,680	)
Total operating lease liabilities		2,150,893
Less: Current portion of operating lease		(586,322	)
Long-term portion of operating lease	$	1,564,571

	Payments Due by Period
Contractual Obligations	Total		Less than 1 year		1 to 3 years		4 to 5 years		More than 5 years

Unconditional purchase obligations with contract manufacturers	$	2,835,000	$	2,835,000	$	—	$	—	$	—
Operating lease		2,343,000		681,000		1,416,000		246,000		—
Total contractual obligations	$	5,178,000	$	3,516,000	$	1,416,000	$	246,000	$	—


Exhibit Number	Exhibit Description

31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101**	XBRL Document


	Three Months Ended March 31,
	2026			2025
BlueStar, Inc.		28	%		31	%
Synnex Corporation		13	%		10	%
Ingram Micro, Inc.		12	%		11	%
Scansource, Inc.		12	%		*
*Customer accounted for less than 10% of the Company’s total revenue


	March 31,			December 31,
	2026			2025
BlueStar, Inc.		28	%		43	%
Ingram Micro Inc.		21	%		*
ScanSource, Inc.		19	%		19	%
Synnex Corporation		11	%		*
* Customer accounted for less than 10% of the Company’s accounts receivable balances


Date: May 13, 2026	/s/ Kevin J. Mills
	Kevin J. Mills
	President and Chief Executive Officer
	(Duly Authorized Officer and Principal Executive Officer)


Date: May 13, 2026	/s/ Lynn Zhao
	Lynn Zhao
	Vice President of Finance and Administration and Chief Financial Officer (Duly Authorized Officer and Principal Financial and Accounting Officer)

SEC Form 10-Q filed by Socket Mobile Inc.