SOCKET MOBILE, INC. Q4 FY2024 earnings call

• 2024 revenue was $18.8 million, up 10% from 2023; margin was 50.4%, slightly higher than 2023's 49.7%; operating loss was $2.5 million, an improvement from 2023's $3.1 million. • Xtreme products targeted at industrial market: engaged with customers in 2024 but deployments didn't happen in 2024, but expect deployments in 2025 to grow revenue. • Spent $4.7 million on R&D in 2024, primarily improving CaptureSDK which supports major operating systems and cross development platforms. • In 2025, focus on new products: XtremeScan product line for industrial environments, compatible with iPhone 16e; invested in customer and developer experience in 2024 with new website, developer portal, and AI-powered developer support Alfred.

In 2024, revenue was $18.8 million, an increase of 10% over 2023. Gross margin was 50.4%, slightly higher than 49.7% in 2023. Operating loss was $2.5 million, an improvement from $3.1 million in 2023. In Q4 2024, revenue grew 10% year-over-year to $4.8 million, up from $4.4 million in the prior year quarter and increased 25% sequentially from $3.9 million in Q3 2024. Gross margin for Q4 was 51%. Adjusted EBITDA in Q4 2024 was $138,000, up from $52,000 in Q4 2023.

• Expect deployments of Xtreme products in industrial market in 2025 to enable revenue growth. • 2024 Q4 revenue grew 10% year-over-year and 25% sequentially. • Currently, no plan to raise cash this year; start the year with enough cash, first six months may be a bit cash-strained, but expect second half to be cash positive.

• Risk that manufacture of products may be delayed or not rolled out as predicted due to technological, market or financial factors, including availability of product components and necessary working capital. • Risk that market acceptance and sales opportunities may not happen as anticipated. • Risk that application partners and current distribution channels may choose not to distribute the products or may not be successful in doing so. • Risk that acceptance of products in vertical application markets may not happen as anticipated.

Q: Are we going to need to raise any cash this year? And If so, how much and when do you foresee that happening?

A: Currently, we do not have any plans to raise cash this year. So, we start the year with enough cash. We expect the first six months to be a little bit of a strain on our cash, but then we expect in the second half to be cash positive. But we don't expect to raise any cash this year right now. So that's the current plan.