Socket Mobile, Inc. Q2 FY2025 earnings call

• Kevin mentioned Q2 was a difficult quarter with revenue lower than expected due to weakness in domestic and international businesses, project delays, and slowed deployments. However, first XtremeScan products were delivered to a large industrial customer with flawless deployment, though part of the deployment was delayed to 2026. • Dave highlighted investments in industrial scanning and handheld computing markets over 2 years are bearing fruit with interest from various customers in multiple industries, purchase orders from Fortune 50 companies, and XtremeScan product line expansion to include models with iPhone 16E for mobile handheld computing. • Lynn noted revenue decrease due to soft customer demand and cautious purchasing, gross margin 50% consistent with Q1 2025, operating expenses reduced to $2.7 million from $3.1 million in Q2 2024, and adjusted EBITDA loss of $100,000 in Q2.

In Q2, Socket Mobile's revenue was $4 million, a 20% decrease from Q2 2024's $5 million. Gross margin was 50%, slightly down from 51% in Q2 2024. Operating loss was $700,000 compared to $500,000 in Q2 2024. The XtremeScan product line delivered first products to a large industrial customer, but a significant portion of the deployment was delayed to 2026. Revenue contribution details per segment not explicitly broken down beyond the overall figures.

• Expect to be EBITDA neutral rather than profitable in the second half of 2025. • Will continue to manage expenses tightly and sustain investments in R&D and Apple sales-related opportunities.

• Risk that manufacture of products may be delayed or not rolled out as predicted due to technological, market, or financial factors. • 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 products or be unsuccessful. • Risk of acceptance of products in vertical application markets may not happen as anticipated.

Q: Are there any questions?

A: Operator states it appears there are no questions at this time Q: Closing remarks?

A: Lynn thanks everyone and wishes a good afternoon