Socket Mobile, Inc. Q3 FY2025 earnings call

• Kevin Mills noted Q3 revenue was lower than expected due to weaker sales to distribution partners; distribution partners didn't replenish inventory as expected. • Delivered Capture SDK 2.0, a milestone supporting new Bluetooth Low Energy products and compatible with existing devices. • Controlled expenses tightly, reducing overall expenses by 16% in Q3 while maintaining R&D and Apple sales investment. • Dave Holmes highlighted expansion into industrial scanning and handheld computing markets, received first POs from Fortune 50 companies in various verticals; continued investing in DuraSled and ExtremeScan product lines for iPhone. • Lynn Zhao provided financial details: revenue decreased 20% Y/Y to $3.1M, gross margin 47.7% (down from prior quarters), operating expenses $2.5M (lower than prior year), operating loss $1.1M, adjusted EBITDA loss $540,000, and discussed balance sheet details like cash and inventory levels.

Revenue for Q3 was $3.1 million, a 20% decrease over Q3 2024. Expenses were $2.5 million, 16% lower than Q3 2024. Operating loss was $1.1 million, similar to Q3 2024. Revenue contribution from product segments not specifically broken down further, but overall revenue was $3.1M, expenses $2.5M, operating loss $1.1M.

• Expect Q4 to be EBITDA neutral. • Look forward to a stronger 2026.

• 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 distribution channels may not distribute products or be successful in doing so. • Risk that acceptance in vertical application markets may not occur as anticipated.

Q: Will we need to do any more convertible debt before too long?

A: We have no plan to do a convertible debt at this stage. If we can get through Q4 at EBITDA neutral, we believe we have enough business in the hopper to get back to profitable operating levels.

Q: So we think we got enough cash with what we're looking at going forward that we aren't going to need to raise any more cash. Is that right?

A: That's correct.