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<SEC-DOCUMENT>0000944075-10-000038.txt : 20101027
<SEC-HEADER>0000944075-10-000038.hdr.sgml : 20101027
<ACCEPTANCE-DATETIME>20101027160755
ACCESSION NUMBER:		0000944075-10-000038
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20100930
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20101027
DATE AS OF CHANGE:		20101027

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:		101145017

	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-8k1027.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><font size="4">October
  27</font></b></font><font face="Times New Roman, Times, serif" size="4"><b>,
  2010</b></font><font face="Times New Roman, Times, serif"><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="6"><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 October 27, 2010, Socket
  Mobile, Inc., issued a press release reporting its results for the three and
  nine months ended September 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 October 27, 2010, titled "Socket Mobile Reports
      Third 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: October
          27, 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 October 27, 2010, titled "Socket Mobile Reports
      Third 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>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b><font size="5"><br>
  Socket Mobile Reports Third Quarter 2010 Financial Results</font></b><br>
  <font size="4"></font></font></p>
<p align="left"><font face="Times New Roman, Times, serif" size="3"><b> <br>
  NEWARK, Calif., - October 27, 2010</b> - Socket Mobile, Inc. (NASDAQ: SCKT),
  an innovative provider of mobile productivity products, today reported financial
  results for the 2010 third quarter ended September 30, 2010. </font></p>
<p>Revenue for the third quarter of 2010 was $3.4 million, compared to revenue
  of $4.6 million for the same quarter a year ago and a decrease of 7 percent
  over revenue of $3.7 million in the immediately preceding quarter. Net loss
  for the third quarter of 2010 was $768,000, or $0.20 per share, compared to
  net income of $49,000, or $0.01 per share, in the third quarter of 2009 and
  a net loss of $575,000, or a loss of $0.15 per share, in the immediately preceding
  quarter. Third quarter net income in 2009 included a non-recurring gain of $450,000,
  or $0.12 per share, from the sale of the Company's serial product line. Stock
  option expense in the third quarter of 2010 was $189,000, or $0.05 per share,
  compared to $204,000, or $0.05 per share, in the third quarter of 2009 and $155,000,
  or $0.04 per share, in the immediately preceding quarter.</p>
<p>Operating expenses for the third quarter of 2009 were $2.1 million, a decrease
  of 13 percent compared to operating expenses of $2.4 million for the same quarter
  a year ago, and an increase of three percent compared to operating expenses
  of $2.0 million in the immediately preceding quarter. </p>
<p>Cash and cash equivalents decreased to approximately $1.5 million at September
  30, 2010, compared to $2.0 million at June 30, 2010. </p>
<p>Kevin Mills, president and chief executive officer, commented, &quot;We continue
  to make solid progress with both products and partners in our key targeted verticals
  of healthcare and hospitality. During the quarter, our SoMo handheld computer
  was selected by the Lancaster Health Group for electronic medical record keeping
  in multiple assisted living facilities. Earlier this month, we made a major
  step forward in the area of hospitality when the developers of the Digital Dining
  restaurant management and point-of-sale (POS) software systems selected the
  SoMo for use with their handheld POS solution. </p>
<p><font face="Times New Roman, Times, serif"><br>
  <br>
  </font></p>
<hr>
<p><font face="Times New Roman, Times, serif"><br>
  &quot;While our third quarter is typically our weakest, SoMo sales in the quarter
  remained stable and we anticipate increased deployments in the fourth quarter
  based on orders received to-date. Sales of our cordless scanning products increased
  modestly during the quarter, driven by our initial support for Apple's iPhone.
  We expect to see positive momentum with the introduction of SocketScan 10, announced
  earlier this week, representing core software that will enable supporting the
  smartphone market with robust scanning. We have completed the transition of
  our OEM business from older Bluetooth technology to Wireless LAN and we expect
  to see improvement in our OEM business in the fourth quarter.&quot;</font></p>
<p>For the nine months ended September 30, 2010, revenue was $10.9 million, compared
  to $13.5 million in the year ago period. Net loss was $2.4 million, or a loss
  of $0.63 per share, compared to a net loss of $1.6 million, or a loss of $0.46
  per share for the same period one year ago. The net loss for the nine months
  ended September 30, 2009 includes the one-time gain on sale of $450,000, or
  $0.12 per share, from the sale of the Company's serial product line in the third
  quarter. The portion of the net loss attributable to stock option expensing
  for the nine months ended September 30, 2010 was $509,000, or $0.13 per share,
  compared to $524,000, or $0.15 per share, for the nine months ended September
  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) 689-8050
  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 358639#. 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 18 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 for the mobile
  device market. Socket is headquartered in Newark, Calif. and can be reached
  at 510-933-3000 or www.socketmobile.com.</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><font face="Times New Roman, Times, serif"
      size=3><b><u>Socket Investor Contact:</u></b></font></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=488 height=25><font face="Times New Roman, Times, serif"
      size=3>Dave Dunlap</font></td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20>Marketing Communications Specialist</td>
    <td width=488 height=20>Chief Financial Officer</td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20>(510) 933-3055</td>
    <td width=488 height=20>(510) 933-3035</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=488 height=20><font face="Times New Roman, Times, serif"
      size=3>dave@socketmobile.com </font></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>Investor Relations Contact:</u></b></font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=488 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=564 height=20>Todd Kehrli / Jim Byers</td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=564 height=20>MKR Group, Inc.</td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=564 height=20>(323) 468-2300</td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width=564 height=20>sckt@mkr-group.com</td>
    <td width=564 height=20>&nbsp;</td>
    <td width=564 height=20>&nbsp;</td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font size="2" face="Times New Roman, Times, serif"><i>Socket, SoMo and Cordless
  Hand Scanner are trademarks or registered trademarks of Socket Mobile, Inc.
  All other trademarks and trade names contained herein may be those of their
  respective owners.</i><br>
  <br>
  &copy; 2010, Socket Mobile, Inc. All rights reserved. <br>
  </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 with respect to the distribution,
  timing and market acceptance of our products, and statements predicting trends,
  sales, order activity, backlog 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 shipments of our products may be delayed or not happen 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 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. Socket does not undertake any obligation to update
  any forward-looking statements.</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="32%" 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 Sept 30,</font></p>
    </td>
    <td colspan=2 height=17 valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">Nine
        months ended Sept 30,</font></div>
    </td>
  </tr>
  <tr>
    <td width="32%" 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="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>
  </tr>
  <tr>
    <td width="32%" 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">$ 3,414</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 4,574</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 10,875</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 13,489</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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"> 2,052</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 2,508</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 6,403</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 7,483</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">1,362</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,066</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">4,472</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">6,006</font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="32%" 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">40%</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">45%</font></div>
    </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">45%</font></div>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">581</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">664</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,821</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,167</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">973</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,208</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,172</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,931</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">515</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">504</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,668</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,695</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">45</font></div>
    </td>
    <td width="17%" height=17 valign="top">
      <div align=center><font face="Times New Roman, Times, serif" size="3">62</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="32%" 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">2,084</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">2,391</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">6,706</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">7,855</font></div>
    </td>
  </tr>
  <tr>
    <td width="32%" height=17 valign="bottom"><font face="Times New Roman, Times, serif" size="3">Gain
      on sale of assets</font></td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>---</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>(450)</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">---</font></div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(450)</font></div>
    </td>
  </tr>
  <tr>
    <td width="32%" 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>38</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>68</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">140</font></div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">185</font></div>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">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>
    <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">24</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Net income (loss)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (768)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 49
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (2,382)</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (1,608)</font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="32%" height=16>
      <p><font face="Times New Roman, Times, serif" size="3">Net income (loss)
        per share:<br>
        &nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspBasic and diluted</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.20)</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 0.01</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.63)
        </font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.46)
        </font></p>
    </td>
  </tr>
  <tr>
    <td rowspan="2" height=17 width="32%" 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<br>
        &nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspDiluted </font></p>
    </td>
    <td rowspan="2" height=17 width="17%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,798<br>
        3,798</font></p>
    </td>
    <td rowspan="2" height=17 width="17%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,787<br>
        3,951</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<br>
        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">3,487<br>
        3,487</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><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">September
        30, 2010<br>
        (Unaudited) </font></div>
    </td>
    <td height=26 width="28%">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">
        December 31, 2009*<br>
        </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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">$ 1,450</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 1,940</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <p><font face="Times New Roman, Times, serif" size="3">Accounts receivable
        </font></p>
    </td>
    <td width="28%">
      <p align=center>1,453</p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 1,660
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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">1,437
        </font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,044</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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">481</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">415</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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">557</font></div>
    </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3"> 787</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 4,427
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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">225</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 270</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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">170</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">200</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td 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">$ 10,200
        </font></p>
    </td>
    <td width="28%">
      <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>
      <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">$ 4,302</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 3,709</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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">788</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,002</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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">850</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">918</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td><font face="Times New Roman, Times, serif" size="3">Deferred service revenue</font></td>
    <td width="28%">
      <div align=center>568</div>
    </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">587</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td><font face="Times New Roman, Times, serif" size="3">Other liabilities
      </font></td>
    <td width="28%">
      <div align=center>149</div>
    </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">139</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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">56,731</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">56,194
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td>
      <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">(53,188)</font></div>
    </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(50,806)</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td 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">$
        10,200</font></div>
    </td>
    <td width="28%">
      <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>
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