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<SEC-DOCUMENT>0000944075-10-000034.txt : 20100722
<SEC-HEADER>0000944075-10-000034.hdr.sgml : 20100722
<ACCEPTANCE-DATETIME>20100722161238
ACCESSION NUMBER:		0000944075-10-000034
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20100630
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100722
DATE AS OF CHANGE:		20100722

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:		10964949

	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-8k0722.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>July 22</b></font><font face="Times New Roman, Times, serif"><b><font size=3>,
  2010</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 July 22, 2010, Socket
  Mobile, Inc., issued a press release reporting its results for the three and
  six months ended June 30, 2010. A copy of the press release is furnished as
  Exhibit 99.1.</font><font
face="Times New Roman, Times, serif"></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="380" 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=13 height=54>&nbsp;</td>
    <td align="left" height="54" width="1243" 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=380 height="22">&nbsp;</td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22"><font face="Times New Roman, Times, serif">Text
      of press release, dated July 22, 2010, titled "Socket Mobile Reports Second
      Quarter 2010 Financial Results.&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: July
          22, 2010</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="380" 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=13 height=54><font face="Times New Roman, Times, serif"></font></td>
    <td align="left" height="54" width="1243" 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=380 height="22"><font face="Times New Roman, Times, serif"></font></td>
    <td width=13 height="22"><font face="Times New Roman, Times, serif"></font></td>
    <td width=1243 height="22"><font face="Times New Roman, Times, serif"></font></td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=13 height="22"><font face="Times New Roman, Times, serif"></font></td>
    <td width=1243 height="22"><font face="Times New Roman, Times, serif">Text
      of press release, dated July 22, 2010, titled "Socket Mobile Reports Second
      Quarter 2010 Financial Results.&quot;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p align=center>&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>EXHIBIT 99.1
<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 Media Contact:</u></b></font></td>
    <td width=488 height=20>&nbsp;</td>
    <td width=488 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=25><font face="Times New Roman, Times, serif"
      size=3>Krista Rogers</font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20>Marketing Communications Specialist</td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20>(510) 933-3055</td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif"
      size=3>krista@socketmobile.com</font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif"
      size=3><b><u>Socket 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>Todd Kehrli or Jim Byers</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20>Chief Financial Officer</td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>MKR Group, Inc.</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20>(510) 933-3035</td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>(323) 468-2300</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>sckt@mkr-group.com</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 Second Quarter 2010 Financial Results</font></b><br>
  <font size="4"><i>Handheld computer sales up 19% sequentially; 48% of Q2 revenue</i></font></font></p>
<p align="left"><font face="Times New Roman, Times, serif" size="3"><b> <br>
  NEWARK, Calif., - July 22, 2010</b> - Socket Mobile, Inc. (NASDAQ: SCKT), an
  innovative provider of mobile productivity products, today reported financial
  results for the 2010 second quarter ended June 30, 2010. </font></p>
<p>Revenue for the second quarter of 2010 was $3.7 million, compared to revenue
  of $4.1 million for the same quarter a year ago and $3.8 million in the immediately
  preceding quarter. Net loss for the second quarter of 2010 was $575,000, or
  a loss of $0.15 per share, compared to a net loss of $945,000, or a loss of
  $0.27 per share, in the second quarter of 2009 and a net loss of $1,039,000,
  or a loss of $0.27 per share, in the immediately preceding quarter. The portion
  of the net loss attributable to stock option expensing in the second quarter
  of 2010 was $155,000, or $0.04 per share, compared to $167,000, or $0.05 per
  share, in the second quarter of 2009 and $165,000, or $0.04 per share, in the
  immediately preceding quarter.</p>
<p>Operating expenses for the second quarter of 2010 were $2.0 million, a decrease
  of 22 percent compared to operating expenses of $2.6 million for the same quarter
  a year ago, and a decrease of 22 percent compared to $2.6 million in the immediately
  preceding quarter. </p>
<p>Cash and cash equivalents were approximately $2.0 million at June 30, 2010,
  compared to $2.0 million at March 31, 2010 and $1.9 million at December 31,
  2009.</p>
<p>Kevin Mills, president and chief executive officer, commented, &quot;Our SoMo
  650 handheld computer continues to gain increasing customer acceptance and traction
  in the business mobility market and generated record sales in the second quarter.
  Handheld computer sales were up 19 percent over the previous quarter and up
  9 percent over the second quarter a year ago, and represented 48 percent of
  our second quarter revenues. </p>
<p><font face="Times New Roman, Times, serif"><br>
  <br>
  </font></p>
<hr>
<p><font face="Times New Roman, Times, serif"><br>
  &quot;Our second quarter results reflect the slower economy and resulting slower
  pace of business purchases and deployments of mobile solutions. Our newest 2D
  barcode scanner Model 7X introduced during the first quarter, compatible for
  use with many mobile phones and tablets including the latest versions of the
  popular iPad, iPod touch and iPhone products, generated nearly 3% of our revenue
  in the quarter. Earlier this week we announced our 7 series family of laser-based
  barcode scanning products which enables us to support many mobile phones and
  tablets including the Blackberry from Research In Motion has been upgraded to
  the same level of compatibility. The laser-based barcode scanning products will
  be available for Apple customers later this quarter, and will provide a variety
  of pricing and performance options for barcode scanning with mobile solutions.&quot;
  </font></p>
<p>For the six months ended June 30, 2010, revenue was $7.5 million, compared
  to $8.9 million in the year ago period. Net loss was $1.6 million, or a loss
  of $0.43 per share, compared to a net loss of $1.7 million, or a loss of $0.50
  per share for the same period one year ago. Included in the 2010 net loss were
  expenses relating to the expensing of stock options of $320,000 ($0.08 per share)
  for the six months ended June 30, 2010, compared to $320,000 ($0.10 per share)
  for the six months ended June 30, 2009.</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.
  PT to discuss the quarterly results and outlook for the future. The dial-in
  number to access the call is (877) 407-9210 from within the U.S. or (201) 689-8049
  from international locations. A replay will be available via telephone for a
  week following the call at (877) 660-6853 from within the U.S., or (201) 612-7415
  from international locations. Access code for the replay is 286# followed by
  conference ID 353868#. 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, choose &quot;About Socket&quot;/&quot;Investor Relations&quot;/&quot;Conference
  Calls and Events.&quot; A transcript will be posted within a few days of the
  call. </font></p>
<p><font face="Times New Roman, Times, serif"><b>About Socket Mobile, Inc.</b></font></p>
<p>With more than 15 years of experience in the Automatic Identification and Data
  Capture market, Socket makes mobile computing and productivity work. The company
  offers a family of handheld computers and an extensive portfolio of AIDC peripherals
  designed specifically for business mobility deployments and to enable productivity
  increases and drive operational efficiencies in healthcare, hospitality and
  other vertical markets. The company also offers OEM solutions. Socket is headquartered
  in Newark, Calif. and can be reached at 510-933-3000 or www.socketmobile.com.
  Follow Socket on Twitter at http://twitter.com/socketmobile.</p>
<p><font size="2" face="Times New Roman, Times, serif"><i>Socket is a registered
  trademark of Socket Mobile, Inc. All other trademarks and trade names contained
  herein may be those of their respective owners.&copy; 2010, Socket Mobile, Inc.
  All rights reserved.</i></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 new mobile computer, data
  collection and OEM products, including details on the timing, distribution and
  market acceptance of the products, and statements predicting trends, sales and
  market conditions and 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 products 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 application partners and current
  distribution channels may choose not to distribute our products or may not be
  successful in doing so, the risk that acceptance of our products in vertical
  application markets may not happen as anticipated, 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 face="Times New Roman, Times, serif"><br>
  <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"><font size="3" face="Times New Roman, Times, serif"></font></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>
        Summary Statements of Operations (Unaudited)<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">Three
        months ended June 30,</font></p>
    </td>
    <td colspan=2 height=17 valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">Six
        months ended June 30,</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>2010</u>
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2009</u>
        </font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2010</u>
        </font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2009</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">$ 3,654</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 4,143</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 7,461</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 8,915</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"> 2,149</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 2,428</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 4,351</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 4,975</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">1,505</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,715</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,110</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,940</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">41%</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">41%</font></div>
    </td>
    <td width="16%" height=17>
      <div align="center"><font size="3">42%</font></div>
    </td>
    <td width="16%" height=17>
      <div align="center"><font size="3">44%</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">559</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">727</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,240</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,503</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">960</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,309</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,199</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,723</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">492</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">549</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,153</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,191</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom"><font face="Times New Roman, Times, serif" size="3">Amortization
      of intangibles</font></td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">15</font></div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">15</font></div>
    </td>
    <td width="17%" height=17 valign="top">
      <div align=center><font face="Times New Roman, Times, serif" size="3">30</font></div>
    </td>
    <td width="17%" height=17 valign="top">
      <div align=center><font face="Times New Roman, Times, serif" size="3">47</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">2,026</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">2,600</font></div>
    </td>
    <td width="16%" height=17>
      <div align="center"><font size="3">4,622</font></div>
    </td>
    <td width="16%" height=17>
      <div align="center"><font size="3">5,464</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>54</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>52</div>
    </td>
    <td width="16%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">102</font></div>
    </td>
    <td width="16%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">117</font></div>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Deferred tax provision</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">---</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>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">---</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">16</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">$ (575)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (945)
        </font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (1,614)</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (1,657)</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</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.15)</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.27)</font></p>
    </td>
    <td width="16%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.43)
        </font></p>
    </td>
    <td width="16%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.50)
        </font></p>
    </td>
  </tr>
  <tr>
    <td rowspan="2" height=17 width="36%" valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Weighted average
        shares outstanding:<br>
        </font><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspBasic
        and diluted</font></p>
    </td>
    <td rowspan="2" height=17 width="17%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,794</font></p>
    </td>
    <td rowspan="2" height=17 width="17%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,444</font></p>
    </td>
    <td rowspan="2" height=17 width="16%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,791
        </font></p>
    </td>
    <td rowspan="2" height=17 width="16%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,337
        </font></p>
    </td>
  </tr>
  <tr valign=bottom> </tr>
</table>
<br>
<br>
<br>
<br>
<hr>
<br>
<br>
<br>
<br>
<br>
<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%"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;
      </font></td>
    <td height=26 width="28%">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">June
        30, 2010<br>
        (Unaudited) </font></div>
    </td>
    <td height=26 width="27%">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">
        December 31, 2009*<br>
        </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">$ 1,992</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 1,940</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>1,866</p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 1,660
        </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">1,597
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,044</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">469</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">415</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">653</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3"> 787</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">4,427
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 4,427
        </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">240</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 270
        </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">185</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 200</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">$ 11,429
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 11,743
        </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">$ 4,496</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 3,709</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">1,145</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,002</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">964</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">918</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%"><font face="Times New Roman, Times, serif" size="3">Deferred
      service revenue</font></td>
    <td width="28%">
      <div align=center>601</div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">587</font></div>
    </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>119</div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">139</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">56,524</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">56,194
        </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">(52,420)</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(50,806)</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">$
        11,429</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">$
        11,743</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>
<p></p>
<p></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif"># # #</font></p>
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