#USA #Convertible Notes #Fremont #Socket Mobile #SCKT

Socket Mobile Enhances Financial Stability with $1.5 Million Convertible Note Offering

Socket Mobile, Inc., a prominent company listed on NASDAQ under the ticker SCKT, has successfully completed a significant financial maneuver, securing $1.5 million through a subordinated convertible note financing. This move is designed to bolster the company's working capital, ensuring that it remains robust in a competitive market.

Financial Details and Terms

The newly issued notes come with a three-year term and are set to mature on May 30, 2028. They carry an annual interest rate of 10%, which is to be paid quarterly. An interesting feature of these notes is that the holder has the right to demand repayment of the principal along with any accrued interest from May 30, 2026 onwards.

These notes are secured by Socket Mobile's assets but are subordinated to outstanding debts owed to Western Alliance Bank, its senior lender, offering a layered approach to financial security.

Moreover, the principal amount tied to these notes can be converted into shares of Socket Mobile's common stock. The conversion price is pegged at $1.07 per share, aligning with the stock's closing price on the Nasdaq as of May 30, 2025. This conversion feature is poised to attract investors who are optimistic about the company's future growth prospects.

Key Participants in the Financing

Several high-profile individuals associated with Socket Mobile participated in this financing round. This includes Charlie Bass, the Chairman of the Board of Directors, and Kevin Mills, the Chief Executive Officer. Other notable participants are Lynn Zhao (CFO and Board Director), Bill Parnell (Board Director), Jason Wu (Controller), Eric Glaenzer (CTO), and Enrico Mills (adult son of Kevin Mills). Their involvement underscores the confidence that the leadership has in the company’s growth trajectory and financial health.

Strategic Implications

This strategic financing move comes at a pivotal time for Socket Mobile, which is recognized for its innovative data capture and delivery solutions aimed at enhancing productivity. With an expansive network of developers who leverage Socket Mobile's technology for mobile applications across various sectors, this financing effort is projected to provide necessary liquidity for further growth and expansion.

Socket Mobile's revenue model primarily revolves around the integration of its barcode scanners and contactless readers with diverse mobile applications, particularly in markets such as specialty retail, field services, and manufacturing. The infusion of funds from this financing will facilitate continued innovation and product development, crucial for maintaining their competitive edge.

Looking Ahead

As Socket Mobile moves forward, the company plans to outline additional details concerning this financing in an upcoming Form 8-K, which will be filed with the SEC (Securities and Exchange Commission). Stakeholders and investors eagerly await these developments, as they could provide insights into the company's future strategy and operational direction.

In conclusion, Socket Mobile's recent financial activity reflects its determination to enhance financial stability and growth. By leveraging convertible notes and inviting key players in the company to participate financially, Socket Mobile is poised for a potential growth spurt that may benefit its stakeholders significantly in the years ahead.

As always, those interested in Socket Mobile's offerings or seeking to learn more can visit their official website at www.socketmobile.com or connect with them through various social media platforms including LinkedIn and X.

This financing round is a testament to the strategic foresight of Socket Mobile’s leadership and stands as a pivotal moment in its ongoing journey in the data capture solutions market.