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<SEC-DOCUMENT>0000944075-11-000005.txt : 20110217
<SEC-HEADER>0000944075-11-000005.hdr.sgml : 20110217
<ACCEPTANCE-DATETIME>20110217160925
ACCESSION NUMBER:		0000944075-11-000005
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20101231
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110217
DATE AS OF CHANGE:		20110217

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:		11621056

	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-8k0217.htm
<DESCRIPTION>FORM 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
  17</b></font><font face="Times New Roman, Times, serif"><b><font size=3>, 2011</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="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 February 17, 2011, Socket
  Mobile, Inc., issued a press release reporting its results for the three months
  and year ended December 31, 2010. 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 17, 2011, titled &quot;Socket Mobile Reports
      2010 Q4 and Annual 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: February
          17, 2011</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 17, 2011, titled &quot;Socket Mobile Reports
      2010 Q4 and Annual Results&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>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b><font size="5"><br>
  </font></b><font size="4"><b><font size="5">Socket Mobile Reports 2010 Q4 and
  Annual Results<br>
  <br>
  </font></b></font></font></p>
<p align="left"><font face="Times New Roman, Times, serif" size="3"><b> NEWARK,
  Calif., - February 17, 2011 - </b>Socket Mobile, Inc. (NASDAQ: SCKT), an innovative
  provider of mobile productivity solutions, today reported financial results
  for the 2010 fourth quarter and year ended December 31, 2010.</font></p>
<p>Revenue for the 2010 full year totaled $13.5 million, compared to revenue of
  $17.1 million for 2009. Net loss for 2010 was $4.0 million, or a loss of $1.05
  per share, compared to a net loss for 2009 of $7.9 million, or a loss of $2.21
  per share. The portion of the net loss attributable to stock option expensing
  in 2010 was $677,000 or $0.18 per share, compared to $715,000 or $0.20 per share
  in 2009. 2009 results included a goodwill impairment charge of $5.4 million,
  or $1.51 loss per share, and a gain on sale of assets of $450,000, or $0.13
  per share. </p>
<p>Revenue for the fourth quarter of 2010 was $2.6 million, compared to revenue
  of $3.6 million in the same quarter a year ago. Net loss for the fourth quarter
  of 2010 was $1.6 million, or a loss of $0.42 per share, compared to a net loss
  of $6.3 million, or a loss of $1.66 per share, in the fourth quarter of 2009.
  The portion of the net loss attributable to stock option expensing in the fourth
  quarter of 2010 was $168,000, or $0.04 per share, compared to $192,000, or $0.05
  per share, in the fourth quarter of 2009. Fourth quarter of 2009 results included
  a goodwill impairment charge of $5.4 million, or $1.42 loss per share for the
  quarter.</p>
<p>Kevin Mills, president and chief executive officer, commented, &quot;Industry-wide
  LCD component shortages in the fourth quarter of 2010 caused us to defer over
  $1.2 million in shipments into 2011. While our 2010 revenue was down from the
  previous year, the bookings for our handheld computer and barcode scanners,
  which together represented 80 percent of our 2010 revenue, increased in 2010
  by 15 percent over 2009. The remaining revenue declines were from legacy products
  sold in 2009 that have been phased out. </p>
<p>&quot;We accomplished significant product development goals in 2010 including
  releasing a lightweight, cordless 2D bar code scanner and updating our SocketScan
  software to work with Smartphones using operating systems from Google, RIM and,
  in process, Apple. Our software application partners and OEM customers are expanding
  the use of their mobile applications to workers using Socket products in our
  key vertical markets of healthcare and hospitality. We further reduced our operating
  expenses in 2010 while retaining our essential employees and maintaining a high
  level of customer service.</p>
<p>&quot;Improved bookings in January plus our backlog carried forward into 2011
  totaled more than $3.6 million in orders as of the end of January. These orders
  are scheduled for delivery in the first quarter as our suppliers catch up with
  existing component shortages. We remain committed to reaching sustainable profitable
  operating levels in 2011,&quot; Mills concluded.</p>
<p>&nbsp;</p>
<hr>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif" size="3"><b>Conference Call</b><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) 407-9210 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 366899#. 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 &quot;About Socket&quot;/&quot;Investor Relations&quot;/
  and &quot;Conference Calls and Events.&quot;</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>About Socket Mobile,
  Inc. </b><br>
  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.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>Forward-Looking Statements
  </b><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 the new products or may not
  be successful in doing so, the risk that acceptance of our new 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" size="3"><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; 2011
  Socket Mobile, Inc. All rights reserved. </i></font></p>
<p>&nbsp;</p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Mobile Contact:</u></b></font></td>
    <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><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=488 height=25><font face="Times New Roman, Times, serif">Krista
      Rogers</font></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=488 height=20><font face="Times New Roman, Times, serif">Marketing
      Communications Specialist</font></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=488 height=20><font face="Times New Roman, Times, serif">(510) 933-3051</font></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=488 height=20><font face="Times New Roman, Times, serif">krista@socketmobile.com</font></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><font face="Times New Roman, Times, serif" size="3"><br>
  </font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3">--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><br>
        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><br>
        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>(Unaudited)<br>
        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>(Unaudited)<br>
        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">$ 13,498
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 17,127
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 2,623
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 3,638
        </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"> 8,096</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 9,753</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 1,693</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 2,270</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">5,402</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">7,374</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">930</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,368</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&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">43%</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">35%</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">38%</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">2,403</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,850</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">582</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">683</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">4,106</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">5,168</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">934</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,237</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">2,547</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,236</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">879</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">541</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Goodwill impairment
        charge </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center>---</p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">5,371</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center>---</p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">5,371</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">60</font></div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">77</font></div>
    </td>
    <td width="17%" height=17 valign="top">
      <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">15</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&nbspTotal
      operating expenses</font> </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">9,116</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">15,702</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">2,410</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">7,847</font></div>
    </td>
  </tr>
  <tr>
    <td width="36%" 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>---</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>---</div>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom"><font face="Times New Roman, Times, serif" size="3">Interest
      expense, net</font></td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>(246)</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>(225)</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(106)</font></div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(40)</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)/benefit</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">(16)</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">214</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">238</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">$ (3,976)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (7,889)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (1,594)</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (6,281)</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">$ (1.05)</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (2.21)</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.42)
        </font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (1.66)
        </font></p>
    </td>
  </tr>
  <tr>
    <td height=24 width="36%" valign="bottom"><font face="Times New Roman, Times, serif" size="3">Weighted
      average shares outstanding:<br>
      &nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspBasic and Fully Diluted</font></td>
    <td height=24 width="17%" valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">3,796
        </font></div>
    </td>
    <td height=24 width="17%" valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">3,562
        </font></div>
    </td>
    <td height=24 width="17%" valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">3,802
        </font></div>
    </td>
    <td height=24 width="17%" valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">3,788
        </font></div>
    </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=19 width="45%">&nbsp;</td>
    <td height=19 colspan="2">
      <div align="center">December 31,</div>
    </td>
  </tr>
  <tr valign=bottom>
    <td height=4 width="45%"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;
      </font></td>
    <td height=4 width="28%">
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><u>2010</u>
        </font></div>
    </td>
    <td height=4 width="28%">
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><u>2009</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">$ 1,172</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 width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Accounts receivable
        </font></p>
    </td>
    <td width="28%">
      <p align=center>814</p>
    </td>
    <td width="28%">
      <p align=center>1,660</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">1,699
        </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 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">128</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 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">471</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 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="28%">
      <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">210</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 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">146</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 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">$ 9,067
        </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 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">$ 4,404</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 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>---</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 width="45%">
      <p>Notes payable net of debt discount </p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">330</font></p>
    </td>
    <td width="28%">
      <p align=center>---</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">674</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 width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Deferred service
        revenue </font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">521</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">587</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>245</div>
    </td>
    <td width="28%">
      <div align=center>139</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">57,675</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 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">(54,782)</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 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">$
        9,067</font></div>
    </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">$
        11,743</font></div>
    </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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