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<SEC-DOCUMENT>0000944075-05-000027.txt : 20050627
<SEC-HEADER>0000944075-05-000027.hdr.sgml : 20050627
<ACCEPTANCE-DATETIME>20050627145906
ACCESSION NUMBER:		0000944075-05-000027
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20041231
FILED AS OF DATE:		20050627
DATE AS OF CHANGE:		20050627

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOCKET COMMUNICATIONS INC
		CENTRAL INDEX KEY:			0000944075
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				943155066
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		11-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13810
		FILM NUMBER:		05917263

	BUSINESS ADDRESS:	
		STREET 1:		37400 CENTRAL COURT
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560
		BUSINESS PHONE:		5107442700

	MAIL ADDRESS:	
		STREET 1:		37400 CENTRAL COURT
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>form11-k.htm
<TEXT>
<html>
<head>
<title>Untitled Document</title>

</head>

<body bgcolor="#FFFFFF">
<hr align="LEFT" size=4 width="100%">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>FORM
        11-K<br>
        SECURITIES AND EXCHANGE COMMISSION<br>
        WASHINGTON D.C. 20549 </b></font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>ANNUAL
        REPORT</b></font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>PURSUANT
        TO SECTION 15(d)<br>
        OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left"><font face="Times New Roman, Times, serif" size="3">(X)
        Annual report pursuant to Section 15(d) of the Securities Exchange Act
        of 1934 </font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left"><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbspFor
        the fiscal year ended December 31, 2004</font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left"><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbspCommission
        file number 1-13810</font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp</font>&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left"><font face="Times New Roman, Times, serif" size="3">A.
        Full title of the plan and the address of the plan, if different from
        that of the issuer named below: </font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>SOCKET
        COMMUNICATIONS, INC. 401(k) PLAN</b></font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left"><font face="Times New Roman, Times, serif" size="3">B.
        Name of issuer of the securities held pursuant to the plan and the address
        of its principal <br>
        &nbsp&nbsp&nbsp&nbspexecutive office:</font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp</font>&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>SOCKET
        COMMUNICATIONS, INC.<br>
        37400 CENTRAL COURT<br>
        NEWARK, CA 94560</b><br>
        </font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"></div>
    </td>
  </tr>
</table>

<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4>
<p></p>
<p></p>
<p></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><br>
  <b><font size="4"><i>Socket Communications, Inc.<br>
  401(k) Plan<br>
  </i></font></b><font size="4"><i>Financial Statements<br>
  <u>December 31, 2004 and 2003</u></i></font></font></p>
<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4 width="100%">
<p><font face="Times New Roman, Times, serif" size="3"><b>SOCKET COMMUNICATIONS,
  INC.<br>
  401(k) PLAN</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>Financial Statements<br>
  December 31, 2004 and 2003</b></font></p>
<table border=0 cellspacing=0 cellpadding=0 width=100% align="left">
  <tr valign="bottom">
    <td colspan="2" height="29"><font face="Times New Roman, Times, serif" size="3"><br>
      </font><font face="Times New Roman"
      size=1><b><font size="3">Table of Contents</font></b></font><br>
      <hr color=#000000 noShade size=0>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="29">&nbsp;</td>
    <td width="12%" height="29">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="29">
      <p align="center">&nbsp;</p>
    </td>
    <td width="12%" height="29">
      <p align="center"><font face="Times New Roman, Times, serif" size="3"><u><b>Page</b></u></font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="30">
      <p align="left"><font face="Times New Roman, Times, serif" size="3">Report
        of Independent Registered Public Accounting Firm</font>
    </td>
    <td width="12%" height="30">
      <p align="center">1<font face="Times New Roman, Times, serif" size="3">
        </font>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="30">
      <p align="left"><font face="Times New Roman, Times, serif" size="3">Financial
        Statements</font>:
    </td>
    <td width="12%" height="30">
      <p align="center">&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="30"><font face="Times New Roman, Times, serif" size="3">Statements
      of Net Assets Available for Benefits</font></td>
    <td width="12%" height="30">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">2</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="30"><font face="Times New Roman, Times, serif" size="3">Statements
      of Changes in Net Assets Available for Benefits</font></td>
    <td width="12%" height="30">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">3</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="30"><font face="Times New Roman, Times, serif" size="3">Notes
      to Financial Statements</font></td>
    <td width="12%" height="30">
      <div align="center">4</div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="45"><font face="Times New Roman, Times, serif" size="3">Supplemental
      schedules are omitted because they are not applicable.</font></td>
    <td width="12%" height="45">
      <div align="center"></div>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp; </p>
<p>&nbsp; </p>
<p><font face="Times New Roman, Times, serif" size="3"><br>
  </font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4 width="100%">
<p>&nbsp; </p>
<p align="center"></p>
<p align="center"></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b>REPORT
  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>To the Participants
  and<br>
  Plan Administrator of the<br>
  Socket Communications, Inc.<br>
  401(k) Plan</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3">We have audited the financial
  statements of the Socket Communications, Inc. 401(k) Plan as of December 31,
  2004 and 2003, and for the years then ended, as listed in the accompanying table
  of contents. These financial statements are the responsibility of the Plan's
  management. Our responsibility is to express an opinion on these financial statements
  based on our audits. </font></p>
<p><font face="Times New Roman, Times, serif" size="3">We conducted our audits
  in accordance with standards of the Public Company Accounting Oversight Board
  (United States). Those standards require that we plan and perform the audits
  to obtain reasonable assurance about whether the financial statements are free
  of material misstatement. An audit includes examining, on a test basis, evidence
  supporting the amounts and disclosures in the financial statements. An audit
  also includes assessing the accounting principles used and significant estimates
  made by the Plan's management, as well as evaluating the overall financial statement
  presentation. We believe that our audits provide a reasonable basis for our
  opinion.</font></p>
<p><font face="Times New Roman, Times, serif" size="3">In our opinion, the financial
  statements referred to above present fairly, in all material respects, the net
  assets available for benefits of the Plan as of December 31, 2004 and 2003,
  and the changes in net assets available for benefits for the years then ended,
  in conformity with accounting principles generally accepted in the United States
  of America.</font></p>
<p></p>
<blockquote>
  <p>&nbsp;</p>

</blockquote>
<table width="44%" border="0">
  <tr>
    <td width="91%">MOHLER, NIXON & WILLIAMS</td>
  </tr>
  <tr>
    <td width="91%">Accountancy Corporation</td>
  </tr>
</table>
<br>
<br>
<table width="30%" border="0">
  <tr>
    <td>Campbell, California</td>
  </tr>
  <tr>
    <td>May 18, 2005</td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">1</font></p>
<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4>
<p><font face="Times New Roman, Times, serif" size="3"><b>SOCKET COMMUNICATIONS,
  INC.<br>
  401(k) PLAN</b></font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b>STATEMENTS
  OF NET ASSETS AVAILABLE FOR BENEFITS</b></font></p>
<table width="100%" border="0" cellspacing="0" align="center" cellpadding="0">
  <tr>
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="6">&nbsp;</td>
  </tr>
  <tr>
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="6">
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>December
        31,</b></font></div>
    </td>
  </tr>
  <tr bordercolor="#000000">
    <td height="10" width="57%">&nbsp;</td>
    <td width="4%" bgcolor="#FFFFFF" height="10">&nbsp;</td>
    <td width="1%" bgcolor="#FFFFFF" height="10">&nbsp;</td>
    <td width="17%" bgcolor="#FFFFFF" height="10">&nbsp;</td>
    <td width="4%" height="10">&nbsp;</td>
    <td width="1%" height="10">&nbsp;</td>
    <td width="16%" height="10">&nbsp;</td>
  </tr>
  <tr bordercolor="#000000">
    <td height="35" width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;
      </font></td>
    <td width="4%" bgcolor="#FFFFFF" height="35">&nbsp;</td>
    <td colspan="2" bgcolor="#FFFFFF" height="10">
      <div align="center"><font face="Times New Roman"
      size=1><b><font size="3">2004</font></b></font><br>
        <hr color=#000000 noShade size=0>
        <font face="Times New Roman, Times, serif" size="3"><b></b></font></div>
    </td>
    <td width="4%" height="35">&nbsp;</td>
    <td colspan="2" height="10">
      <div align="center"><font face="Times New Roman"
      size=1><b><font size="3">2003</font></b></font><br>
        <hr color=#000000 noShade size=0>
        <font face="Times New Roman, Times, serif" size="3"></font></div>
    </td>
  </tr>
  <tr>
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">Assets:
      </font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="17%">
      <div align="right"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font><font size="3"></font></font></font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font><font size="3"></font></font></font></div>
    </td>
  </tr>
  <tr>
    <td width="57%">
      <p><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Investments,
        at fair value</font></p>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">$</td>
    <td width="17%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">2,383,194</font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">$</td>
    <td width="16%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">2,009,005</font></div>
    </td>
  </tr>
  <tr>
    <td height="6" width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Participant
      loans </font></td>
    <td width="4%" height="6">&nbsp;</td>
    <td width="1%" height="6">&nbsp;</td>
    <td width="17%" height="6">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">45,326</font></div>
    </td>
    <td width="4%" height="6">&nbsp;</td>
    <td width="1%" height="6">&nbsp;</td>
    <td width="16%" height="6">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">&nbsp;4,747</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%" height="11">&nbsp;</td>
    <td width="4%" height="11">&nbsp;</td>
    <td width="1%" height="11">
      <div align="right">
        <hr color=#000000 noShade size=1>
      </div>
    </td>
    <td width="17%" height="11">
      <div align="left">
        <hr color=#000000 noShade size=1>
      </div>
    </td>
    <td width="4%" height="11">&nbsp;</td>
    <td width="1%" height="11">
      <div align="right">
        <hr color=#000000 noShade size=1>
      </div>
    </td>
    <td width="16%" height="11">
      <div align="right">
        <hr color=#000000 noShade size=1>
      </div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="2" width="57%"><font size="3" face="Times New Roman, Times, serif">Assets
      held for investment purposes</font></td>
    <td width="4%" height="2">&nbsp;</td>
    <td width="1%" height="2">$</td>
    <td width="17%" height="2">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">
        <b>2,428,520</b></font></div>
    </td>
    <td width="4%" height="2">&nbsp;</td>
    <td width="1%" height="2">$</td>
    <td width="16%" height="2">
      <div align="right"><font size="3" face="Times New Roman, Times, serif"><b>2,013,752</b></font></div>
    </td>
  </tr>
  <tr>
    <td width="57%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">
      <div align="right">
        <hr color=#000000 noShade size=3>
      </div>
    </td>
    <td width="17%">
      <div align="right">
        <hr color=#000000 noShade size=3>
      </div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">
      <div align="right">
        <hr color=#000000 noShade size=3>
      </div>
    </td>
    <td width="16%">
      <div align="right">
        <hr color=#000000 noShade size=3>
      </div>
    </td>
  </tr>
  <tr>
    <td width="57%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="17%">
      <div align="right"></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"></div>
    </td>
  </tr>
  <tr>
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">See notes
      to financial statements. </font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="17%">
      <div align="right"><font size="2" face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;
        </font><font size="3"></font></font></font> </font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font size="2" face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;
        </font><font size="3"></font></font></font> </font></div>
    </td>
  </tr>
</table>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">2</font></p>
<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4 width="100%">
<p><font face="Times New Roman, Times, serif" size="3"><b>SOCKET COMMUNICATIONS,
  INC.<br>
  401(k) PLAN</b></font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><b><font face="Times New Roman, Times, serif" size="3">STATEMENTS
  OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS</font></b></p>
<table width="100%" border="0" cellspacing="0" align="center" cellpadding="0">
  <tr valign="bottom">
    <td width="57%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
    <td colspan="7">
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b><font face="Times New Roman, Times, serif" size="3"><b>Years
        ended </b></font>December 31,</b></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%">&nbsp;</td>
    <td colspan="7">
      <div align="center"></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td colspan="3">
      <div align="center"><font face="Times New Roman"
      size=1><b><font size="3">2004</font></b></font><br>
        <hr color=#000000 noShade size=0>
        <font face="Times New Roman, Times, serif" size="3"><b></b></font></div>
    </td>
    <td width="3%">&nbsp;</td>
    <td colspan="2">
      <div align="center"><font face="Times New Roman"
      size=1><b><font size="3">2003</font></b></font><br>
        <hr color=#000000 noShade size=0>
        <font face="Times New Roman, Times, serif" size="3"><b></b></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font face="Times New Roman, Times, serif" size="3">Additions
      to net assets attributed to:</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%"><u><font face="Times New Roman, Times, serif" size="3"></font></u></td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Investment
      income: </font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%"><u><font face="Times New Roman, Times, serif" size="3"></font></u></td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
      and interest</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">$</td>
    <td width="18%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">44,479</font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">$</td>
    <td width="16%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">18,064</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      realized and unrealized appreciation (depreciation)</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><u></u></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%">
      <blockquote>
        <blockquote>
          <p>in fair value of investments</p>
        </blockquote>
      </blockquote>
    </td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">(378</font></div>
    </td>
    <td width="1%">)</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">628,590</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%" height="22">&nbsp;</td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="18%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="16%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%" height="22"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">&nbsp;</td>
    <td width="18%" height="22">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">44,101</font></div>
    </td>
    <td width="1%" height="22">&nbsp;</td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">&nbsp;</td>
    <td width="16%" height="22">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">646,654</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><u></u></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants'
      contributions </font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">384,377</font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">318,813</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%" height="22">&nbsp;</td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="18%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="16%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      additions </font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">428,478</font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">965,467</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%" height="22">&nbsp;</td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="18%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="16%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">Deductions
      from net assets attributed to</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><u><font size="2" face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"></font></font>
        </font></u></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;withdrawals
      and distributions</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">13,710</font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">17,792</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%" height="22">&nbsp;</td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="18%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="16%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">Net increase
      in net assets</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">
        414,768</font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">947,675</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font face="Times New Roman, Times, serif" size="3"></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><u><u><u><u></u></u></u></u></font></font></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">Net assets
      available for benefits:</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><u><u><u><u></u></u></u></u></font></font></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Beginning
      of year</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">2,013,752</font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font size="3" face="Times New Roman, Times, serif">1,066,077</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%" height="22">&nbsp;</td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="18%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
    <td width="16%" height="22">
      <hr color=#000000 noShade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><b><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></b><font size="3" face="Times New Roman, Times, serif">End
      of year</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%"><b>$</b></td>
    <td width="18%">
      <div align="right"><b><font size="3" face="Times New Roman, Times, serif">2,428,520</font></b><u><b></b></u></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%"><b>$</b></td>
    <td width="16%">
      <div align="right"><b><font size="3" face="Times New Roman, Times, serif">2,013,752</font></b></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%" height="22">&nbsp;</td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=3>
    </td>
    <td width="18%" height="22">
      <hr color=#000000 noShade size=3>
    </td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=3>
    </td>
    <td width="3%" height="22">&nbsp;</td>
    <td width="1%" height="22">
      <hr color=#000000 noShade size=3>
    </td>
    <td width="16%" height="22">
      <hr color=#000000 noShade size=3>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="57%"><font face="Times New Roman, Times, serif" size="3">See notes
      to financial statements.</font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="center"></div>
    </td>
  </tr>
</table>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">3</p>
<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4>
<p><font face="Times New Roman, Times, serif" size="3"><b>SOCKET COMMUNICATIONS,
  INC.<br>
  401(k) PLAN</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTES TO FINANCIAL STATEMENTS<br>
  DECEMBER 31, 2004 and 2003</b></font><font face="Times New Roman, Times, serif" size="3"><b>
  &nbsp &nbsp &nbsp </b></font></p>
<hr align=left color=#000000 noShade size=2 width="100%">
<br>
<font face="Times New Roman, Times, serif" size="3"><b>NOTE 1 - THE PLAN AND ITS
SIGNIFICANT ACCOUNTING POLICIES</b></font>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>General</i></b> -
  The following description of the Socket Communications, Inc. 401(k) Plan (the
  Plan) provides only general information. Participants should refer to the Plan
  document for a more complete description of the Plan's provisions.</font></p>
<p>The Plan is a defined contribution plan that was established in 1996 by Socket
  Communications, Inc. (the Company) to provide benefits to eligible employees,
  as defined in the Plan document. The Plan administrator believes that the Plan
  is currently designed and operated in compliance with the applicable requirements
  of the Internal Revenue Code, as amended, and the provisions of the Employee
  Retirement Income Security Act of 1974 (ERISA), as amended.</p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Administration</i></b>
  - Under the terms of the Plan, a group of designated officers of the Company
  act as the trustee. The Company has appointed an Administrative Committee (the
  Committee) to manage the operation and administration of the Plan. The Company
  has contracted with a third-party administrator to process and maintain the
  records of participant data. During the year ended December 31, 2003, the Company
  contracted with U.S. Bancorp Piper Jaffray (Piper Jaffray) to act as the custodian.
  On January 1, 2004, Wachovia Securities was appointed as the custodian of the
  Plan. Effective July 1, 2004, Reliance Trust Company (Reliance) was appointed
  as the custodian of the Plan. Substantially all expenses incurred for administering
  the Plan are paid by the Company. </font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Estimates</i></b>
  - The preparation of financial statements in conformity with accounting principles
  generally accepted in the United States of America requires management to make
  estimates and assumptions that affect the reported amounts of assets and liabilities,
  and changes therein, and disclosure of contingent assets and liabilities. Actual
  results could differ from those estimates.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Basis of accounting</i></b>
  - The financial statements of the Plan are prepared on the accrual method of
  accounting in accordance with accounting principles generally accepted in the
  United States of America.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Investments</i></b>
  - Investments of the Plan are held by the custodians and invested based solely
  upon instructions received from participants. The Company's common stock was
  an investment option prior to November 30, 2003. Effective November 30, 2003,
  new contributions are no longer allowed in the Socket Communications, Inc. Common
  Stock Fund. <br>
  <br>
  </font>The Plan's investments in mutual funds and the Socket Communications,
  Inc. Common Stock Fund are valued at fair value as of the last day of the Plan
  year, as measured by quoted market prices. Participant loans are valued at cost,
  which approximates fair value.</p>
<p align="center"><font face="Times New Roman, Times, serif">4</font></p>
<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4 width="100%">
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Income taxes </i></b>-
  The Plan has adopted a prototype plan that has received an opinion letter from
  the Internal Revenue Service. The Company believes that the Plan is operated
  in accordance with, and qualifies under, the applicable requirements of the
  Internal Revenue Code and related state statutes, and that the trust, which
  forms a part of the Plan, is exempt from federal income and state franchise
  taxes.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Risks and uncertainties</i></b>
  - The Plan provides for various investment options in any combination of investment
  securities offered by the Plan, including Company common stock, which was disallowed
  as an investment option. Investment securities are exposed to various risks,
  such as interest rate, market fluctuations and credit risks. Due to the risk
  associated with certain investment securities, it is at least reasonably possible
  that changes in market values, interest rates or other factors in the near term
  would materially affect participants' account balances and the amounts reported
  in the statements of net assets available for benefits and the statements of
  changes in net assets available for benefits.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 2 - PARTICIPATION
  AND BENEFITS</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Participant contributions</i>
  </b>- Participants may elect to have the Company contribute up to 20% of their
  eligible pre-tax compensation not to exceed the amount allowable under current
  income tax regulations. Participants who elect to have the Company contribute
  a portion of their compensation to the Plan agree to accept an equivalent reduction
  in taxable compensation. Contributions withheld are invested in accordance with
  the participant's direction.</font></p>
<p>Participants are also allowed to make rollover contributions of amounts received
  from other tax-qualified employer-sponsored retirement plans. Such contributions
  are deposited in the appropriate investment funds in accordance with the participant's
  direction and the Plan's provisions.</p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Employer contributions</i>
  </b>- The Company is allowed to make qualified non-elective matching contributions
  as defined in the Plan. No qualified non-elective matching contribution has
  been made for the years ended December 31, 2004 and 2003.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Vesting </i></b>-
  Participants are fully vested in their account at all times. </font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Participant accounts</i></b><i>
  </i>- Each participant's account is credited with the participant's contribution,
  Plan earnings or losses and an allocation of the Company's contribution, if
  any. Allocation of the Company's contribution is based on eligible employee
  compensation, as defined in the Plan.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><i><b>Payment of benefits</b></i>
  - Upon termination, the participants or beneficiaries may elect to leave their
  account balance in the Plan, or receive their total benefits in a lump sum amount,
  installments, employer securities or other marketable securities equal to the
  value of the participant's account. The Plan allows for the automatic lump sum
  distribution of participant account balances that do not exceed $5,000.</font></p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3">5</font></p>
<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4 width="100%">
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Loans to participants</i></b>
  - The Plan allows participants to borrow up to the lesser of $50,000 or 50%
  of their account balance. The loans are secured by the participant's account
  balance. Such loans bear interest at the available market financing rates and
  must be repaid to the Plan within a five-year period, unless the loan is used
  for the purchase of a principal residence in which case the maximum repayment
  period may be longer. The specific terms and conditions of such loans are established
  by the Plan administrator. Outstanding loans at December 31, 2004 carry interest
  rates ranging from 4.25% to 5%.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 3 - INVESTMENTS</b></font></p>
<p>The following table presents the fair values of investments and investment
  funds that include 5% or more of the Plan's net assets at December 31:</p>
<table width="80%" border="0" cellspacing="0" cellpadding="0" align="center">
  <tr valign="bottom">
    <td width="60%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="2">
      <div align="center"><font face="Times New Roman"
      size=1><b><font size="3">2004</font></b></font><br>
      </div>
      <hr color=#000000 noShade size=0 align="center">
    </td>
    <td width="4%">&nbsp;</td>
    <td colspan="2">
      <div align="center"><font face="Times New Roman"
      size=1><b><font size="3">2003</font></b></font><br>
      </div>
      <hr color=#000000 noShade size=0 align="center">
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></td>
    <td width="4%"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></font></font></font></font></font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="14%">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></font></font></font></font></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">Alliance
      Premier Growth Fund</font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%"><font face="Times New Roman, Times, serif" size="3">$</font></td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">
        235,632 </font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%"><font face="Times New Roman, Times, serif" size="3">$</font></td>
    <td width="14%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">
        192,380</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="19" width="60%"><font face="Times New Roman, Times, serif" size="3">Lord
      Abbett Mid Cap Value Fund</font></td>
    <td height="19" width="4%">&nbsp;</td>
    <td height="19" width="1%">&nbsp;</td>
    <td height="19" width="16%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">
        427,151</font></div>
    </td>
    <td height="19" width="4%">&nbsp;</td>
    <td height="19" width="1%">&nbsp;</td>
    <td height="19" width="14%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">
        301,087</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">MFS Ser
      TR V Total Return Fund </font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">170,612</font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="14%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">112,718</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">Vanguard
      500 Index Fund</font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">500,237</font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="14%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">299,191</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">First
      American Prime Obligations Fund </font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">241,086</font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="14%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">289,043</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">Putnam
      International Equity </font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">136,113</font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="14%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">90,040</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">Lord Abbett
      Affiliated</font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right">128,162</div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="14%">
      <div align="right">68,468</div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">Columbia
      Acorn Fund</font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">218,217</font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="14%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">103,340</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">PIMCO
      Total Return Fund </font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><u></u></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="14%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">61,450</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="21" width="60%">&nbsp;</td>
    <td height="21" width="4%">&nbsp;</td>
    <td height="21" width="1%">&nbsp;</td>
    <td height="21" width="16%">
      <div align="right"></div>
    </td>
    <td height="21" width="4%">&nbsp;</td>
    <td height="21" width="1%">&nbsp;</td>
    <td height="21" width="14%">
      <div align="right"></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">Socket
      Communications Common Stock Fund</font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">266,634</font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="14%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">491,288</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font face="Times New Roman, Times, serif" size="3">Other
      funds individually less than 5%</font></td>
    <td width="4%">&nbsp;</td>
    <td height="21" width="1%">&nbsp;</td>
    <td height="21" width="16%">
      <div align="right"></div>
    </td>
    <td height="21" width="4%">&nbsp;</td>
    <td height="21" width="1%">&nbsp;</td>
    <td height="21" width="14%">
      <div align="right"></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="60%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;of
      net assets</font></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="16%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">104,676</font></div>
    </td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="14%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">4,747</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="22" width="60%"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></td>
    <td height="22" width="4%">&nbsp;</td>
    <td height="22" width="1%">
      <div align="right">
        <hr color=#000000 noShade size=1>
      </div>
    </td>
    <td height="22" width="16%">
      <div align="right">
        <hr color=#000000 noShade size=1>
        <font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"></font></font></font></font></font></div>
    </td>
    <td height="22" width="4%">&nbsp;</td>
    <td height="22" width="1%">
      <div align="right">
        <hr color=#000000 noShade size=1>
      </div>
    </td>
    <td height="22" width="14%">
      <div align="left">
        <hr color=#000000 noShade size=1>
      </div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="29" width="60%">
      <p><b><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp</font></b><font face="Times New Roman, Times, serif" size="3">Assets
        held for investment purposes</font></p>
    </td>
    <td height="29" width="4%">&nbsp;</td>
    <td height="29" width="1%"><b><font face="Times New Roman, Times, serif" size="3">$</font></b></td>
    <td height="29" width="16%">
      <div align="right"><b><font face="Times New Roman, Times, serif" size="3">2,428,520</font></b></div>
    </td>
    <td height="29" width="4%">&nbsp;</td>
    <td height="29" width="1%"><b><font face="Times New Roman, Times, serif" size="3">$</font></b></td>
    <td height="29" width="14%">
      <div align="right"><b><font face="Times New Roman, Times, serif" size="3">2,013,752</font></b></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="23" width="60%"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></td>
    <td height="23" width="4%"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></td>
    <td height="23" width="1%">
      <div align="right">
        <hr color=#000000 noShade size=3>
      </div>
    </td>
    <td height="23" width="16%">
      <div align="right">
        <hr color=#000000 noShade size=3>
        <font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"></font></font></font></font></font></div>
    </td>
    <td height="23" width="4%">&nbsp;</td>
    <td height="23" width="1%">
      <div align="right">
        <hr color=#000000 noShade size=3>
      </div>
    </td>
    <td height="23" width="14%">
      <div align="right">
        <hr color=#000000 noShade size=3>
      </div>
    </td>
  </tr>
</table>
<p align="left"><font face="Times New Roman, Times, serif" size="3">The Plan's
  investments (including gains and losses on investments bought and sold, as well
  as held during the year) appreciated (depreciated) in value as follows for the
  years ended December 31:</font></p>
<table width="80%" border="0" cellspacing="0" cellpadding="0" align="center">
  <tr valign="bottom">
    <td width="56%">&nbsp;</td>
    <td colspan="3">
      <div align="center"><font face="Times New Roman"
      size=1><b><font size="3">2004</font></b></font><br>
      </div>
      <hr color=#000000 noShade size=0 align="center">
    </td>
    <td width="3%">&nbsp;</td>
    <td colspan="2">
      <div align="center"><font face="Times New Roman"
      size=1><b><font size="3">2003</font></b></font><br>
      </div>
      <hr color=#000000 noShade size=0 align="center">
    </td>
  </tr>
  <tr valign="bottom">
    <td width="56%"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></td>
    <td width="2%">&nbsp;</td>
    <td width="19%">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></font></font></font></font></font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></font></font></font></font></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="56%"><font face="Times New Roman, Times, serif" size="3">Common
      stock</font></td>
    <td width="2%"><font face="Times New Roman, Times, serif" size="3">$</font></td>
    <td width="19%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">
        (176,174</font></div>
    </td>
    <td width="1%">)</td>
    <td width="3%">&nbsp;</td>
    <td width="1%"><font face="Times New Roman, Times, serif" size="3">$</font></td>
    <td width="18%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">
        443,372</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="19" width="56%"><font face="Times New Roman, Times, serif" size="3">Mutual
      funds</font></td>
    <td height="19" width="2%">&nbsp;</td>
    <td height="19" width="19%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">
        175,796</font></div>
    </td>
    <td height="19" width="1%">&nbsp;</td>
    <td height="19" width="3%">&nbsp;</td>
    <td height="19" width="1%">&nbsp;</td>
    <td height="19" width="18%">
      <div align="right"><font face="Times New Roman, Times, serif" size="3">
        185,218</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="22" width="56%"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></td>
    <td height="22" width="2%">
      <div align="right">
        <hr color=#000000 noShade size=1>
      </div>
    </td>
    <td height="22" width="19%">
      <div align="right">
        <hr color=#000000 noShade size=1>
        <font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"></font></font></font></font></font></div>
    </td>
    <td height="22" width="1%">&nbsp;</td>
    <td height="22" width="3%">&nbsp;</td>
    <td height="22" width="1%">
      <div align="right">
        <hr color=#000000 noShade size=1>
      </div>
    </td>
    <td height="22" width="18%">
      <div align="right">
        <hr color=#000000 noShade size=1>
      </div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="29" width="56%">
      <p><b><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp</font></b><font face="Times New Roman, Times, serif" size="3">Assets
        held for investment purposes</font></p>
    </td>
    <td height="29" width="2%"><b><font face="Times New Roman, Times, serif" size="3">$</font></b></td>
    <td height="29" width="19%">
      <div align="right"><b><font face="Times New Roman, Times, serif" size="3">(378</font></b></div>
    </td>
    <td height="29" width="1%">)</td>
    <td height="29" width="3%">&nbsp;</td>
    <td height="29" width="1%"><b><font face="Times New Roman, Times, serif" size="3">$</font></b></td>
    <td height="29" width="18%">
      <div align="right"><b><font face="Times New Roman, Times, serif" size="3">628,590</font></b></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="23" width="56%"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></td>
    <td height="23" width="2%">
      <div align="right">
        <hr color=#000000 noShade size=3>
      </div>
    </td>
    <td height="23" width="19%">
      <div align="right">
        <hr color=#000000 noShade size=3>
        <font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"></font></font></font></font></font></div>
    </td>
    <td height="23" width="1%">&nbsp;</td>
    <td height="23" width="3%">&nbsp;</td>
    <td height="23" width="1%">
      <div align="right">
        <hr color=#000000 noShade size=3>
      </div>
    </td>
    <td height="23" width="18%">
      <div align="right">
        <hr color=#000000 noShade size=3>
      </div>
    </td>
  </tr>
</table>
<p align="center"><font face="Times New Roman, Times, serif">6</font></p>
<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4 width="100%">
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 4 - PARTY-IN-INTEREST
  TRANSACTIONS</b></font></p>
<p>As allowed by the Plan, participants could have elected to invest a portion
  of their account in the common stock of the Company through November 30, 2003.
  Aggregate investment in the Socket Communications, Inc. Common Stock Fund at
  December 31, 2004 and 2003 was as follows:</p>
<table width="80%" border="0" cellspacing="0" cellpadding="0" align="center" height="104">
  <tr>
    <td width="147" height="34">
      <div align="center"><u><font face="Times New Roman, Times, serif" size="3">Date</font></u></div>
    </td>
    <td width="335" height="34">
      <div align="center"><u><font face="Times New Roman, Times, serif" size="3">Number
        of shares</font></u></div>
    </td>
    <td width="225" height="34">
      <div align="center"><u><font face="Times New Roman, Times, serif" size="3">Fair
        value</font></u></div>
    </td>
  </tr>
  <tr>
    <td width="147">
      <div align="center">2004</div>
    </td>
    <td width="335">
      <div align="center">133,317</div>
    </td>
    <td width="225">
      <div align="center">$ 266,634</div>
    </td>
  </tr>
  <tr>
    <td width="147">
      <div align="center">2003</div>
    </td>
    <td width="335">
      <div align="center">147,102</div>
    </td>
    <td width="225">
      <div align="center">$ 491,288</div>
    </td>
  </tr>
</table>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 5 - PLAN TERMINATION
  OR MODIFICATION</b></font></p>
<p>The Company intends to continue the Plan indefinitely for the benefit of its
  participants; however, it reserves the right to terminate or modify the Plan
  at any time by resolution of its Board of Directors and subject to the provisions
  of ERISA. </p>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 6 - SUBSEQUENT
  EVENT </b></font></p>
<p>As of May 18, 2005, the Company's common stock is trading at $1.15 per share
  and has decreased by approximately 43% since December 31, 2004.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p></p>
<p></p>
<p></p>
<p></p>
<p></p>
<p></p>
<p></p>
<p align="center"><font face="Times New Roman, Times, serif">7</font></p>
<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4 width="100%">
<p align="center"><font face="Times New Roman, Times, serif" size="3"> <b>SIGNATURES</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><i>The Plan</i>. Pursuant
  to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
  1934, the registrant has duly caused this report to be signed on its behalf
  by the undersigned, hereunto duly authorized.</font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><u>SOCKET
  COMMUNICATIONS, INC.</u><br>
  Registrant</font></p>
<table width="80%" border="0" cellspacing="0" cellpadding="0" align="left">
  <tr>
    <td width="498"><font face="Times New Roman, Times, serif" size="3">Date:
      June 23, 2005</font></td>
    <td width="370"><font face="Times New Roman, Times, serif" size="3"><u>/s/
      Kevin J. Mills</u></font></td>
  </tr>
  <tr>
    <td width="498">&nbsp;</td>
    <td width="370"><font face="Times New Roman, Times, serif" size="3">Kevin
      J. Mills<br>
      President and Chief Executive Officer </font></td>
  </tr>
  <tr>
    <td width="498">&nbsp;</td>
    <td width="370">&nbsp;</td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p style="PAGE-BREAK-BEFORE: always">
<hr align="LEFT" size=4 width="100%">
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b>CONSENT
  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</b></font></p>
<p>We consent to the incorporation by reference in the Registration Statement
  on Form S-8 (No. 333-106502) of Socket Communications, Inc. of our report dated
  May 18, 2005, with respect to the financial statements as of and for the years
  ended December 31, 2004 and 2003, which report appears in the December 31, 2004
  annual report on Form 11-K of the Socket Communications, Inc. 401(k) Plan.<font face="Times New Roman, Times, serif" size="3"><br>
  </font></p>
<p>&nbsp;</p>
<table width="44%" border="0">
  <tr>
    <td width="91%">MOHLER, NIXON & WILLIAMS</td>
  </tr>
  <tr>
    <td width="91%">Accountancy Corporation</td>
  </tr>
</table>
<br>
<table width="30%" border="0">
  <tr>
    <td>Campbell, California</td>
  </tr>
  <tr>
    <td>June 23, 2005</td>
  </tr>
</table>
<p>&nbsp;</p>
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