<SEC-DOCUMENT>0000944075-15-000030.txt : 20150729
<SEC-HEADER>0000944075-15-000030.hdr.sgml : 20150729
<ACCEPTANCE-DATETIME>20150729163242
ACCESSION NUMBER:		0000944075-15-000030
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20150729
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20150729
DATE AS OF CHANGE:		20150729

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:		151013173

	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-8k0729.htm
<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 STYLE="font: 16pt Times New Roman, Times, serif"><B> July 29, 2015</B></FONT><FONT STYLE="font-size: small"> </FONT><br><FONT STYLE="font-size: small"> </FONT><FONT STYLE="font-size: x-small">(Date
of earliest event reported)</FONT></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><br>
  __________________________</FONT></P>

<P STYLE="text-align: center"><FONT STYLE="font: small Times New Roman, Times, serif">&nbsp;</font></p>
<p align=center><font style="font: 18pt Times New Roman, Times, serif"><b>SOCKET MOBILE, INC.</b></font><br>
<font style="font: x-small Times New Roman, Times, serif">(Exact name of registrant as specified in its charter) </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 29, 2015, Socket    Mobile, Inc., issued a press release
reporting its results for the three    and six months ended         June 30, 2015. 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">
</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 CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR>
    <TD STYLE="font-family: Times New Roman, Times, serif; text-align: center; border-bottom: Black 1pt solid">Exhibit Number</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, serif; text-align: left"></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, serif; text-align: center; vertical-align: bottom">&nbsp;Description</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="font-family: Times New Roman, Times, serif; text-align: center; vertical-align: top">99.1</TD>
    <TD STYLE="font-family: Times New Roman, Times, serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, serif; text-align: left; vertical-align: top; padding-left: 5.4pt; padding-right: 5.4pt"><font face="Times New Roman, Times, serif">Text
                                                                                        of press release, dated July 29, 2015, titled &quot;Socket
Mobile Reports Profitable Second Quarter and Six Months Results&quot;.</font></TD><TD STYLE="font-family: Times New Roman, Times, serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p style="PAGE-BREAK-BEFORE: always">
<p style="PAGE-BREAK-BEFORE: always">
<p>&nbsp;&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>

<P>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          <TR STYLE="vertical-align: top">
<TD COLSPAN="2"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 12pt">&nbsp;<B>SOCKET MOBILE,
                                          INC.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD COLSPAN="2"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD COLSPAN="2"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 24%"><FONT STYLE="font-size: 12pt">Date: July 29, 2015</FONT></TD>
<TD STYLE="width: 126pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 12pt"><U>/s/
                                                                   David W. Dunlap&#9;</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD COLSPAN="2"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 12pt">David W. Dunlap</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD COLSPAN="2"></TD><TD></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 12pt">Vice President, Finance and Administration
                              <br>
                              and Chief Financial Officer</FONT></TD></TR></TABLE>
<P></p>
<p>&nbsp;</td>
    </tr>
</div>
<p></p>
<hr>
<p align=center>&nbsp;</p>
<p align=center><font face="Times New Roman, Times, serif"><b>EXHIBIT INDEX</b></font></P>

<P STYLE="text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR>
    <TD STYLE="font-family: Times New Roman, Times, serif; text-align: center; border-bottom: Black 1pt solid">Exhibit Number</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, serif; text-align: left"></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, serif; text-align: center; vertical-align: bottom">&nbsp;Description</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="font-family: Times New Roman, Times, serif; text-align: center; vertical-align: top">99.1</TD>
    <TD STYLE="font-family: Times New Roman, Times, serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, serif; text-align: left; vertical-align: top; padding-left: 5.4pt; padding-right: 5.4pt"><font face="Times New Roman, Times, serif">Text
                                                                                        of press release, dated July 29, 2015, titled &quot;Socket
Mobile Reports Profitable Second Quarter and Six Months Results&quot;.</font></font></TD><TD STYLE="font-family: Times New Roman, Times, serif; text-align: left">&nbsp;</TD></TR>
<P STYLE="text-align: center">&nbsp;</P>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1 CHARTER
<SEQUENCE>2
<FILENAME>pressrelease-q2.htm
<TEXT>
<HTML>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Exhibit
99.1</B></FONT></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 14pt Times New Roman, Times, Serif"><B>Socket
Mobile Reports Profitable Second Quarter and Six Months Results</B></FONT></P>

<P STYLE="font: 12pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 14pt Times New Roman, Times, Serif"><I>Second
Quarter Net Income of $401,000 up 332% Year Over Year</I></FONT></P>

<P STYLE="font: bold 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>NEWARK,
Calif., &#8211; July 29, 2015 -</B> Socket Mobile, Inc. (OTC: SCKT), an innovative provider of mobile barcode scanning products,
today reported financial results for its 2015 second quarter and six month period ended June 30, 2015.</FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;<FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Revenue
for the second quarter of 2015 was $4.5 million, an increase of 2 percent from revenue of $4.4 million for the same quarter a
year ago and an increase of 12 percent sequentially from revenue of $4.0 million in the immediately preceding quarter. Net income
for the second quarter of 2015 was $401,000, or $0.07 per share, compared to net income of $93,000, or $0.02 per share, in the
second quarter of 2014, and a net loss of $72,000, or $0.01 per share, in the immediately preceding quarter. Earnings Before Interest,
Taxes, Depreciation and Amortization (EBITDA), a non-GAAP measure of operating results, was $588,000, or $0.11 per share, in the
second quarter of 2015, compared to $413,000, or $0.08 per share, in the second quarter of 2014 and $108,000, or $0.02 per share,
in the immediately preceding quarter.</FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;<FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; color: black">Revenue
for the six months ended June 30, 2015 was $8.5 million, an increase of 4 percent from revenue of $8.2 million in the same period
a year ago. Net income for the six months ended June 30, 2015 was $329,000, or $0.06 per share, compared to net income of $21,000,
or $0.00 per share, for the same period a year ago. Earnings before </FONT><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Interest,
Taxes, Depreciation and Amortization (EBITDA) for the six months ended June 30, 2015 was $696,000, or $0.13 per share, compared
to net EBITDA earnings of $617,000, or $0.13 per share, for the same period a year ago.</FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;<FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Operating
expenses for the second quarter of 2015 were $1.6 million, flat compared to operating expenses of $1.6 million for the same quarter
a year ago, and a decrease of 10 percent sequentially from the immediately preceding quarter. Operating expenses for the six months
ended June 30, 2015 were $3.4 million, an increase of 8 percent compared to operating expenses of $3.2 million for the same period
a year ago.</FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;<FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Kevin
Mills, president and chief executive officer, commented, &#8220;On a year-over-year basis, our second quarter results reflect
increased revenue, improved margins, flat operating expenses, and a more than fourfold increase in net income. These results reflect
growing demand for our cordless barcode scanners for mobile point of sale and other mobile applications marketed by our growing
community of registered application developers.</FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&#8220;In
the second quarter, our cordless barcode scanner revenue comprised 88 percent of total quarterly revenue and reached a record
$3,947,000, up from $3,686,000 in the same quarter a year ago. This record barcode scanner revenue in the second quarter included
two larger deployments totaling $400,000, compared to the prior year quarter which included three larger deployments totaling
$900,000. When these larger deployments are factored out, the underlying growth run rate in our cordless barcode scanner sales
was 27 percent year over year.</FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&#8220;We
believe 2015 should be another year of growth for Socket Mobile, primarily driven by mobile point of sale as well as an expanding
Socket Mobile product portfolio and maturing mobile markets. We believe we are well positioned in our targeted markets and remain
focused on increasing our profitability and building the business for further growth in 2016,&#8221; Mills concluded.</FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;</B></FONT></P>

<P STYLE="color: #333333; font: 8.5pt/115% Verdana, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif; color: black"><B>Conference
Call</B></FONT><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><BR>
<FONT STYLE="line-height: 115%">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. The conference ID is 13612963#. The call will also be carried
live and available via replay through a link on Socket&#8217;s website at www.socketmobile.com. From the home page, choose &#8220;About
Socket&#8221;/&#8220;Investor Relations&#8221;/&#8220;Conference Calls and Events.&#8221; A transcript will be posted on the Company&#8217;s
website within a few days of the call.&nbsp;</FONT></FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT>&nbsp;</P>

<P STYLE="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>About
Socket Mobile, Inc.</B></FONT></P>

<P STYLE="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; color: black">Founded
in 1992, Socket Mobile is a leading innovator of data capture solutions for enhanced productivity in retail point of sale, field
service, healthcare, and other mobile markets. Socket Mobile&#8217;s portfolio includes cordless handheld barcode scanners for
tablets and smartphones. Socket Mobile&#8217;s revenue is primarily driven by 3rd party developer deployment of barcode enabled
mobile applications. Socket Mobile has a robust network of over 1,400 registered developers using its software developer kit to
tightly integrate and enable sophisticated barcode scanning into their applications. &nbsp;Socket Mobile is headquartered in Newark,
Calif. and can be reached at +1-510-933-3000 or </FONT><FONT STYLE="font: 12pt Times New Roman, Times, Serif">www.socketmobile.com<FONT STYLE="color: black">.
Follow Socket Mobile on </FONT>Facebook<FONT STYLE="color: black">, Twitter </FONT>@socketmobile<FONT STYLE="color: blue"> </FONT><FONT STYLE="color: black">or
subscribe to </FONT>sockettalk.socketmobile.com<FONT STYLE="color: black">, the company&#8217;s official blog.</FONT></FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;<B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Forward-Looking
Statements </B></FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">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 mobile computer and data collection products, including details on the timing, distribution and market
acceptance of new 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 STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: bold 9pt/130% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Socket
and SoMo are registered trademarks of Socket Mobile, Inc. All other trademarks and trade names contained herein may be those of
their respective owners. &copy; 2015 Socket Mobile, Inc. All rights reserved. </I></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 66pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><U>Socket
Mobile Contact:</U>&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investor
Relations Contact:</U></B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 66pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">David
Dunlap&#9; &#9; &#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="color: black">Todd
Kehrli or Jim Byers</FONT></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 66pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; color: black">Chief
Financial Officer </FONT><FONT STYLE="font: 12pt Times New Roman, Times, Serif"> <FONT STYLE="color: black"> &#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>MKR
Group, Inc.<FONT STYLE="color: black">&#9;</FONT></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 66pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">510/933-3035&#9;
&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="color: black">323/468-2300</FONT></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 66pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">dave@socketmobile.com&#9;
&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
sckt@mkr-group.com</FONT></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&ndash;
Financial                                          tables to follow &ndash;</FONT></FONT></P>

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<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;</B></FONT></P>

<P STYLE="font: 10pt/16pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/16pt Times New Roman, Times, Serif; margin: 0"><P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Socket
Mobile, Inc.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Summary
Statements of Operations (Unaudited)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>(Amounts
in Thousands except per share amounts) </B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Three
    months ended <BR>June 30,</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Six
    months ended <BR>June 30,</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2015</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2014</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2015</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 42%; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Revenue</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4,485</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4,391</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,491</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,186</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Cost of revenue</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,370</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,490</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4,568</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4,662</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Gross margin</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,115</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,901</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,923</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,524</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;Gross
    margin percent</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">47</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">%</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">43</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">%</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">46</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">%</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">43</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Research &amp; development
    <BR></FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">550</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">586</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,125</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,140</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Sales &amp; marketing</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">609</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">527</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,227</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,003</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">General
    &amp; administrative</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">467</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">512</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,071</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,033</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;Total
    operating expenses</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,626</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,625</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,423</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,176</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Interest (income)
    expense, net</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">80</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">175</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">155</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">311</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Deferred
    income tax expense</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">16</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">16</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Net
    income</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">401</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">93</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">329</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">21</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Earnings per share:</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;Basic</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">0.07</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">0.02</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">0.06</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">0.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;Fully
    diluted</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">0.07</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">0.02</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">0.06</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">0.00</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Weighted average
    shares outstanding: <BR>Basic <BR>Fully diluted</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4pt 0 0; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,545</FONT></P> <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4pt 0 0; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,911</FONT></P></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4pt 0 0; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4pt 0 0; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,916</FONT></P> <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4pt 0 0; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,162</FONT></P></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,529<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4pt 0 0; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,961</FONT></P></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,907<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4pt 0 0; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,961</FONT></P></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>Reconciliation
of GAAP Net Income to Income Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Three
    months ended <BR>June 30,</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Six
    months ended <BR>June 30,</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2015</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2014</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2015</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Net income
    GAAP</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">401</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">93</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">329</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">21</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Interest expense,
    net</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">80</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">175</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">155</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">311</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Income tax expense</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">16</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">16</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Depreciation</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">49</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">58</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">99</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">123</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Amortization of intangibles</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">15</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">30</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Stock
    compensation expense</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">50</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">64</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">97</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">116</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Net
    income EBITDA</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">588</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">413</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">696</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">617</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 11pt/130% Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Socket
Mobile, Inc.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Condensed
Summary Balance Sheets</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>(Amounts
in Thousands)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">June
    30, 2015 <BR>(Unaudited)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">December
    31, 2014*</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Cash</FONT></TD><TD STYLE="width: 8%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">830</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 8%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">633</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Accounts receivable</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,946</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,897</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Inventories</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">621</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">957</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Other current assets</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">90</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">125</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Property and equipment,
    net</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">207</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">245</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Goodwill</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4,427</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4,427</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Other
    assets</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">91</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">86</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Total
    assets</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,212</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,370</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Accounts payable
    and accrued liabilities</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,814</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,535</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Bank line of credit</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">816</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">816</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Subordinated line
    of credit</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">600</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">600</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Convertible notes
    payable</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">753</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">753</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Deferred income on
    shipments to distributors</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">972</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">979</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Deferred service
    revenue</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">177</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">214</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Other liabilities</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">461</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">444</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Common stock</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">61,980</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">61,719</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Accumulated
    deficit</FONT></TD><TD STYLE="padding-bottom: 1pt"></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(60,361</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(60,690</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Total
    Liabilities and Equity</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,212</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,370</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 12pt/17pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">*Derived
from audited financial statements.</FONT></P>

<P STYLE="font: 10pt/17pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&#9;&#9;</FONT></P>

<P STYLE="font: 10pt/17pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/17pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/17pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&#9;#
# #</FONT></P>

<P STYLE="font: 10pt/130% Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/16pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/16pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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