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<SEC-DOCUMENT>0000944075-09-000003.txt : 20090218
<SEC-HEADER>0000944075-09-000003.hdr.sgml : 20090218
<ACCEPTANCE-DATETIME>20090218162107
ACCESSION NUMBER:		0000944075-09-000003
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20081231
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090218
DATE AS OF CHANGE:		20090218

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOCKET MOBILE, 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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25904
		FILM NUMBER:		09618885

	BUSINESS ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808
		BUSINESS PHONE:		5109333000

	MAIL ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SOCKET COMMUNICATIONS INC
		DATE OF NAME CHANGE:	19950418
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form-8k0218.htm
<DESCRIPTION>8-K
<TEXT>
<html>
<head>

</head>

<body bgcolor="#FFFFFF">
<div align=left>
  <hr width="100%">
  <div align=center>
    <hr width="100%">
    <p><font face="Times New Roman, Times, serif" size="3"><b><font size="5">UNITED
      STATES<br>
      </font></b><font size="5"><strong>SECURITIES AND EXCHANGE COMMISSION</strong></font></font></p>
  </div>
</div>
<p align=center><font face="Times New Roman, Times, serif" size="3">Washington,
  DC 20549</font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3">__________________________</font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"> <b><font size="5">FORM
  8-K</font></b><br>
  <br>
  <b>CURRENT REPORT</b><br>
  <br>
  Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934<br>
  <b><br>
  </b></font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>February
  18</b></font><font face="Times New Roman, Times, serif"><b><font size=3>, 2009</font></b><font size=3><br>
  Date of Report<br>
  <font size="2">(Date of earliest event reported)</font></font></font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><br>
  </font></p>
<p align=center><font face="Times New Roman, Times, serif" size="5"><strong>SOCKET
  MOBILE, INC.</strong></font><font face="Times New Roman, Times, serif"><br>
  <font size=2>(Exact name of registrant as specified in its charter) </font></font></p>
<p>&nbsp;
<table cols=3 width="100%">
  <tr>
    <td height=28 width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>Delaware<br>
        </b></font><font face="Times New Roman, Times, serif" size=2>(State or
        other jurisdiction of incorporation)</font><font face="Times New Roman, Times, serif" size=3><b>
        </b> </font>
      </center>
    </td>
    <td height=28 width="32%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>001-13810<br>
        </b></font><font face="Times New Roman, Times, serif" size=2>(Commission
        File Number)</font><font face="Times New Roman, Times, serif" size=3><b>
        </b></font>
      </center>
    </td>
    <td height=28 width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>94-3155066</b><br>
        </font><font face="Times New Roman, Times, serif" size=2>(IRS Employer
        Identification No.)</font><font face="Times New Roman, Times, serif" size=3>
        </font>
      </center>
    </td>
  </tr>
</table>
<font face="Times New Roman, Times, serif"><br>
</font>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>39700 Eureka
  Drive <br>
  Newark, CA 94560</b></font><font face="Times New Roman, Times, serif"><br>
  <font size=2>(Address of principal executive offices, including zip code) </font></font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>(510) 933-3000<br>
  </b></font> <font face="Times New Roman, Times, serif"><font size="2">(Registrant's
  telephone number, including area code)</font></font>
<div align="center">
  <p>&nbsp;</p>
  <p align="left"><font face="Times New Roman, Times, serif">Check the appropriate
    box below if the Form 8-K filing is intended to simultaneously satisfy the
    filing obligation of the registrant under any of the following provisions
    (see General Instruction A.2. below):</font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Written communications pursuant to Rule 425 under the Securities Act (17
    CFR 230.425)</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))<br>
    <br>
    </font></font></p>
</div>
<p style="PAGE-BREAK-BEFORE: always"> </p>
<div align=left></div>
<div align=left>
  <hr width="100%">
</div>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif"><b>Item 2.02 Results of Operations
  and Financial Condition.</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif" size="3">On February 18, 2009, Socket
  Mobile, Inc., issued a press release reporting its results for the three months
  and year ended December 31, 2008. A copy of the press release is furnished as
  Exhibit 99.1.</font><font face="Times New Roman, Times, serif"><br>
  </font></p>
<p><font face="Times New Roman, Times, serif"><b>Item 9.01 Financial Statements
  and Exhibits.</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif">(d) Exhibits.</font></p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td align="left" height="54" width="215" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div align="center" class="border"><font face="Times New Roman, Times, serif">Exhibit
          Number</font></div>
      </div>
    </td>
    <td width=29 height=54>&nbsp;</td>
    <td align="left" height="54" width="680" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div class="border">
          <div align="center"><font face="Times New Roman, Times, serif">Description</font></div>
        </div>
      </div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">&nbsp;</td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">
      <div align=center><font
      face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22"><font face="Times New Roman, Times, serif">Text
      of press release, dated February 18, 2009, titled &quot;Socket Mobile Reports
      Record Revenue for 2008, up 10% Year-Over-Year Despite Fourth Quarter Sales
      Slowdown&quot;.</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p style="PAGE-BREAK-BEFORE: always">
<p style="PAGE-BREAK-BEFORE: always">
<p>&nbsp;</p>
<hr width="100%">
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif"><b>SIGNATURES</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif">Pursuant to the requirements 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>&nbsp;</p>
<dir>
  <dir>
    <dir>
      <dir>
        <dir>
          <blockquote>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <p align=left> </p>
            <tr valign="bottom"
align="left"></tr>
          </blockquote>
        </dir>
      </dir>
    </dir>
  </dir>
</dir>
<div align=left>
  <table height=135 cellspacing=0 cellpadding=0 width=96% align=left border=0>
    <tr>
      <td width=300>&nbsp;</td>
      <td width=21>&nbsp;</td>
      <td colspan="2"><font face="Times New Roman, Times, serif"><b>SOCKET MOBILE,
        INC.</b></font></td>
    </tr>
    <tr>
      <td width=300>&nbsp;</td>
      <td width=21>&nbsp;</td>
      <td colspan="2">&nbsp;</td>
    </tr>
    <tr>
      <td width=300>
        <div align=left></div>
      </td>
      <td width=21>&nbsp;</td>
      <td colspan="2">&nbsp;</td>
    </tr>
    <tr>
      <td width=300 height=19>
        <div align=left><font face="Times New Roman, Times, serif">Date: February
          18, 2009</font></div>
      </td>
      <td width=21 height=19>&nbsp;</td>
      <td width=30 height=19><font face="Times New Roman, Times, serif">By: <u>/s/
        </u></font></td>
      <td width=379 height=19><font face="Times New Roman, Times, serif"><u>David
        W. Dunlap</u></font></td>
    </tr>
    <tr>
      <td width=300 height=40>
        <div align=left></div>
      </td>
      <td width=21 height=40>&nbsp;</td>
      <td width=30 height=40>
        <blockquote>
          <div align="left"></div>
        </blockquote>
      </td>
      <td width=379 height=40><font face="Times New Roman, Times, serif">Name:
        David W. Dunlap<br>
        Vice President, Finance and Administration <br>
        and Chief Financial Officer</font></td>
    </tr>
  </table>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p align=center>&nbsp;</p>
<p align=center><font face="Times New Roman, Times, serif"><b>EXHIBIT INDEX</b></font></p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td align="left" height="54" width="215" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div align="center" class="border"><font face="Times New Roman, Times, serif">Exhibit
          Number</font></div>
      </div>
    </td>
    <td width=29 height=54>&nbsp;</td>
    <td align="left" height="54" width="680" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div class="border">
          <div align="center"><font face="Times New Roman, Times, serif">Description</font></div>
        </div>
      </div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">&nbsp;</td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">
      <div align=center><font
      face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22"><font face="Times New Roman, Times, serif">Text
      of press release, dated February 18, 2009, titled &quot;Socket Mobile Reports
      Record Revenue for 2008, up 10% Year-Over-Year Despite Fourth Quarter Sales
      Slowdown&quot;.</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p align=center>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>pressrelease.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<html>
<head>
<title>Untitled Document</title>

</head>

<body bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman, Times, serif" size="3"><b>Exhibit
  99.1</b></font></p>
<p>&nbsp;</p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td width=488 height=25><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Mobile Contact:</u></b></font></td>
    <td width=488 height=20>&nbsp;</td>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3"><b><u>Editorial
      Contacts:</u></b></font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=25><font face="Times New Roman, Times, serif">Krista
      Rogers</font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">Catherine
      Koo / Nicole Wasowski</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif">Sr. Marketing
      Communications Specialist</font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">Lewis PR</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif">(510) 933-3051</font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">(415) 992-4400</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif">krista@socketmobile.com</font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">socketmobile@lewispr.com</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20><font face="Times New Roman, Times, serif"></font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Mobile Investor Contact:</u></b></font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3"><b><u>Investor
      Relations Contact:</u></b></font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=25><font face="Times New Roman, Times, serif" size="3">David
      Dunlap</font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">Todd Kehrli
      or Jim Byers</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif">Chief Financial
      Officer</font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">MKR Group,
      Inc.</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif">(510) 933-3035</font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">(323) 468-2300</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3">dave@socketmobile.com
      </font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">sckt@mkr-group.com</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&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" size="3"><b><font size="5"><br>
  Socket Mobile Reports Record Revenue for 2008, up 10% Year-Over-Year</font></b><br>
  <font size="4"><b><font size="5">Despite Fourth Quarter Sales Slowdown<br>
  <br>
  </font></b></font></font></p>
<p align="left"><font face="Times New Roman, Times, serif" size="3"><b> NEWARK,
  Calif., - February 18, 2009</b> - Socket Mobile, Inc. (NASDAQ: SCKT), an innovative
  provider of mobile productivity solutions, today reported financial results
  for the 2008 fourth quarter and year ended December 31, 2008.</font></p>
<p><font face="Times New Roman, Times, serif">Revenue for the 2008 full year totaled
  a record $26.6 million, a 10% increase over revenue of $24.1 million for 2007.
  Net loss for 2008 was $2.8 million, or a loss of $0.86 per share, compared to
  a net loss for 2007 of $3.3 million, or a loss of $1.05 per share. The portion
  of the net loss attributable to stock option expensing in 2008 was $715,000,
  or $0.22 per share, compared to $1,023,000, or $0.32 per share in 2007. </font></p>
<p><font face="Times New Roman, Times, serif">Revenue for the fourth quarter of
  2008 was $4.9 million, compared to revenue of $6.8 million in the same quarter
  a year ago and revenue of $8.0 million in the third quarter of 2008. Revenue
  in the fourth quarter of 2008 was reduced by $0.7 million, from $5.6 million
  to $4.9 million, due to a change in estimate relating to data collection product
  returns to two distributors from their resellers. The Company defers revenue
  recognition until inventory is sold out of distributor inventory, so product
  returns back to distributor inventory reduce revenue recognized during the period.
  The fourth quarter was the first quarter in which the Company has experienced
  significant returns to its distributors, reflecting current economic conditions.
  Net loss for the fourth quarter was $1.6 million, or a loss of $0.49 per share,
  compared to a net loss of $0.4 million, or a loss of $0.13 per share, in the
  fourth quarter of 2007 and a net loss of $80,000, or a loss of $0.02 per share,
  in the previous sequential quarter. The portion of the net loss attributable
  to stock option expensing in the fourth quarter of 2008 was $149,000, or $0.05
  per share, compared to $231,000, or $0.07 per share, in the fourth quarter of
  2007 and $172,000 or $0.05 per share in the previous sequential quarter.</font></p>
<p><font face="Times New Roman, Times, serif">Kevin Mills, president and chief
  executive officer, commented, "While economic conditions are challenging, overall
  customer response to our SoMo 650 handheld mobile computer has been excellent
  and we expect the SoMo to continue to increase its market acceptance. Since
  the introduction of the SoMo in 2007, we have shipped more than 10,000 units
  and unit sales have grown in every quarter. For the 2008 full year, SoMo sales
  grew to $4.7 million, compared to $1.3 million in 2007, and our partners offering
  or developing business applications for use with the SoMo increased to more
  than 200. We continue to successfully establish the SoMo in business applications
  addressing a number of vertical markets including healthcare, hospitality, retail
  merchandising and automotive. As part of this increasing sales traction, in
  2008 we added international language support and introduced models with anti-microbial
  cases for the healthcare market and models without wireless capabilities for
  secure applications.</font></p>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif"><br>
  <br>
  </font></p>
<hr>
<p><br>
  <font face="Times New Roman, Times, serif">"Current economic conditions slowed
  the pace of customer orders in the fourth quarter for most of our products except
  the SoMo 650 handheld computer. We have responded to these conditions by reducing
  our headcount and other expenses, and we are closely managing our cash and working
  capital going forward. We continue to work closely with our distribution and
  value-added reseller partners in supporting the business mobility solutions
  needed by their customers, especially in this difficult economy where efficiency
  and productivity are especially important to companies," Mr. Mills concluded.</font></p>
<p><font face="Times New Roman, Times, serif"><b>Conference Call</b><br>
  <br>
  Management of Socket will hold a conference call and web cast today at 2 P.M.
  Pacific (5 P.M. Eastern) to discuss the quarterly results and outlook for the
  future. The dial-in number to access the call is (877) 407-8033 from within
  the U.S. or (201) 689-8033 from international locations. A replay will be available
  via telephone for a week following the call at (877) 407-0778 from within the
  US, or (201) 612-7415 from international locations. Access code for the replay
  is 286# followed by conference ID 309372#. The call will also be carried live
  and available via replay through a link on Socket's website at www.socketmobile.com.
  From the home page, select "About Socket"/"Investor Relations"/ and "Conference
  Calls and Events".</font></p>
<p><font face="Times New Roman, Times, serif"><b>About Socket Mobile, Inc.</b></font></p>
<p><font face="Times New Roman, Times, serif">Socket makes mobility computing
  and productivity work. The company is a one-stop supplier of mobile computing
  hardware systems, offering a handheld mobile computer specifically designed
  for business mobility use and an extensive portfolio of essential mobile data
  collection and networking peripherals that enable mobile automation and productivity
  increases. The company also offers OEM solutions. Socket is headquartered in
  Newark, Calif. and can be reached at 510-933-3000 or www.socketmobile.com</font></p>
<p><font face="Times New Roman, Times, serif"><b>Forward Looking Statements</b>
  <br>
  <br>
  This press release contains forward looking statements within the meaning of
  Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
  Securities Exchange Act of 1934, as amended. Such forward looking statements
  include, but are not limited to, statements regarding our new handheld mobile
  computer product, including details on the timing, distribution and market acceptance
  of the product, and statements predicting trends, sales and market opportunities
  in the markets in which we sell our products. Such statements involve risks
  and uncertainties, and actual results could differ materially from the results
  anticipated in such forward looking statements as a result of a number of factors,
  including, but not limited to, the risk that our new product may be delayed
  or not rollout as predicted, if ever, due to technological, market, or financial
  factors, including the availability of necessary working capital, the risk that
  market acceptance and sales opportunities may not happen as anticipated, the
  risk that our integrator program and current distribution channels may not choose
  to distribute the new product or may not be successful in doing so, the risk
  that acceptance of our new product in vertical application markets may not happen
  as anticipated and the risk that evidence of strength in the mobile computing
  market may not be indicative of a trend, and other risks described in our most
  recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission.</font></p>
<p><font size="2" face="Times New Roman, Times, serif"><i>Socket and SoMo are
  registered trademarks of Socket Mobile, Inc. All other trademarks and trade
  names contained herein may be those of their respective owners. &copy; 2009,
  Socket Mobile, Inc. All rights reserved.</i></font></p>
<p><font face="Times New Roman, Times, serif"><br>
  </font></p>
<p align="center"><font face="Times New Roman, Times, serif">--Financial tables
  to follow--</font></p>
<p align="center">&nbsp;</p>
<hr>
<p align="center">&nbsp;</p>
<p>&nbsp;</p>
<table cellspacing=1 cellpadding=1 width=80% align=center border=1>
  <tr>
    <td colspan=5 height=70 valign="bottom">
      <p align=center><font size="3" face="Times New Roman, Times, serif"><b>Socket
        Mobile, Inc.<br>
        Condensed Summary Statements of Operations<br>
        (Amounts in thousands except per share amounts)</b></font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp; </font></p>
    </td>
    <td colspan=2 height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">Year
        ended<br>
        Dec 31,</font></p>
    </td>
    <td colspan=2 height=17 valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">Three
        Months ended<br>
        Dec 31,</font></div>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp; </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>(Unaudited)<br>
        2008</u> </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2007*</u>
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>(Unaudited)<br>
        2008</u> </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>(Unaudited)<br>
        2007</u> </font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Revenue </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 26,557
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 24,118
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 4,876
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 6,846
        </font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Cost of revenue </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 14,167</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 12,244</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 2,807</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 3,457</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Gross profit</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">12,390</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">11,874</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,069</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,389</font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="17%" height=17> <font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspGross
      profit percent</font> </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">47%</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">49%</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">43%</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">50%</font></div>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Research and development
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">4,496</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">5,005</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,063</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,293</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Sales and marketing
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">7,777</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">7,380</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,896</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,852</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">General and administrative
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,674</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,742</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">636</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">637</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom"><font face="Times New Roman, Times, serif" size="3">Amortization
      of intangible technology</font></td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">127</font></div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">135</font></div>
    </td>
    <td width="17%" height=17 valign="top">
      <div align=center><font face="Times New Roman, Times, serif" size="3">31</font></div>
    </td>
    <td width="17%" height=17 valign="top">
      <div align=center><font face="Times New Roman, Times, serif" size="3">33</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="17%" height=17> <font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspTotal
      operating expenses</font> </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">15,074</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">15,262</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">3,626</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">3,815</font></div>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom"><font face="Times New Roman, Times, serif" size="3">Interest
      (income) expense, net</font></td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>49</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>(80)</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">12</font></div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(3)</font></div>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Deferred tax expense</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">32</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center>32</p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">8</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">8</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Net loss </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (2,765)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (3,340)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (1,577)</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (431)</font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="36%" height=16>
      <p><font face="Times New Roman, Times, serif" size="3">Basic and diluted
        net loss per share applicable to common stockholders</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.86)</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (1.05)
        </font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.49)
        </font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.13)
        </font></p>
    </td>
  </tr>
  <tr>
    <td height=17 width="36%" valign="bottom"><font face="Times New Roman, Times, serif" size="3">Weighted
      average shares outstanding:<br>
      &nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspBasic<br>
      &nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspFully Diluted</font></td>
    <td height=17 width="17%" valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">3,219<br>
        3,219</font></div>
    </td>
    <td height=17 width="17%" valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">3,193<br>
        3,193</font></div>
    </td>
    <td height=17 width="17%" valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">3,230<br>
        3,230</font></div>
    </td>
    <td height=17 width="17%" valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">3,198<br>
        3,198</font></div>
    </td>
  </tr>
  <tr>
    <td height=5 colspan="5" valign="bottom"><font face="Times New Roman, Times, serif" size="3">*Derived
      from audited financial statements.</font></td>
  </tr>
</table>
<font face="Times New Roman, Times, serif"> </font> <font face="Times New Roman, Times, serif"><br>
<br>
<br>
<br>
<br>
</font>
<hr>
<font face="Times New Roman, Times, serif"><br>
<br>
<br>
<br>
<br>
</font>
<table cellspacing=1 cellpadding=1 width=80% align=center border=1>
  <tr valign=bottom>
    <td colspan=3 height="67">
      <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>Socket
        Mobile, Inc.<br>
        Condensed Summary Balance Sheets<br>
        (Amounts in Thousands)</b></font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td height=26 width="45%">&nbsp;</td>
    <td height=26 colspan="2">
      <div align="center">December 31,</div>
    </td>
  </tr>
  <tr valign=bottom>
    <td height=34 width="45%"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;
      </font></td>
    <td height=34 width="28%">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">(Unaudited)<br>
        <u>2008</u> </font></div>
    </td>
    <td height=34 width="27%">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">
        <br>
        <u>2007*</u> </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Cash</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 757</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 4,963</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Accounts receivable
        </font></p>
    </td>
    <td width="28%">
      <p align=center>3,335</p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 2,615
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Inventories</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,930
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,438</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Other current assets</font>
      </p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">387</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">283</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Property and equipment,
        net</font></p>
    </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">977</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3"> 1,145</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Goodwill</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">9,798
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 9,798
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Intangible technology</font>
      </p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">347</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 474
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Other assets</font>
      </p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">226</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 258</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="17%" height=17> <font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspTotal
      Assets</font> </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 19,757
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 21,974
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td colspan=3><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Accounts payable
        and accrued liabilities</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 4,288</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 3,281
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Bank line of credit</font>
      </p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,006</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,622</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Deferred income on
        shipments to distributors</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,434</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,745</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%"><font face="Times New Roman, Times, serif" size="3">Other
      liabilities </font></td>
    <td width="28%">
      <div align=center>354</div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">792</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Common stock</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">54,592</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">53,686
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Accumulated deficit</font>
      </p>
    </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(42,917)</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(40,152)</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="17%" height=17> <font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp</font>Total
      Liabilities and Equity </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">$
        19,757</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">$
        21,974</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td colspan=3>
      <p><font face="Times New Roman, Times, serif" size="3">*Derived from audited
        financial statements. </font></p>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p></p>
<p></p>
<p></p>
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