XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.25.1

NOTE 5 — Commitments and Contingencies (Policies) | 12 Months Ended
--- | ---
Dec. 31, 2024
Leases [Abstract] |
Operating Lease Obligations | Operating Lease Obligations In February 2022, the Company entered into a lease agreement for approximately 35,913 square feet at 40675 Encyclopedia Circle in Fremont, California. This location serves as the Company’s Corporate Headquarters, including office space and manufacturing. The current monthly rent is $53,340. The Company accounted for the lease as an operating lease under ASC 842 using the bank loan interest rate in effect on May 1, 2022 at 5.0% to discount future lease payments. The lease term expires on July 31, 2029, with a one-time option to renew for a period of five years. The renewal period is not included in the measurement of the leases as the Company is not reasonably certain of exercising it. In January 2024, the Company renewed its equipment operating lease agreement, extending it through the end of 2026, with lease payments discounted at an interest rate of 9.25%. As of December 31, 2024, the balances of right-of-use assets and liabilities were approximately $2.60 million and $2.82 million, respectively, compared to approximately $3.09 million and $3.29 million, respectively, on December 31, 2023. SOCKET MOBILE, INC. NOTES TO FINANCIAL STATEMENTS The operating lease expense under the existing agreement was allocated in cost of goods sold and operating costs based on department headcount and amounted to $646,726 and $648,434 for the twelve-month periods ended December 31, 2024 and 2023, respectively. Cash payments included in the measurement of our existing operating lease liabilities were $638,148 and $622,243 for the twelve-month periods ended December 30, 2024 and 2023, respectively. Future minimum lease payments under the existing operating lease as of December 31, 2024 are shown below:
Annual minimum payments: |  | Amount
2025 |  |  | 657,164 |
2026 |  |  | 676,750 |
2027 |  |  | 692,644 |
2028 |  |  | 713,423 |
Thereafter |  |  | 425,646 |
Total minimum payments |  |  | 3,165,627 |
Less: Present value factor |  |  | (348,966 | )
Total operating lease liabilities |  |  | 2,816,661 |
Less: Current portion of operating lease |  |  | (532,027 | )
Long-term portion of operating lease |  | $ | 2,284,634 |
Purchase Commitments | Purchase Commitments On December 31, 2024, the Company’s non-cancelable purchase commitments for inventory to be used in the ordinary course of business during 2025 were approximately $6,159,000.
Legal Matters | Legal Matters The Company is subject to disputes, claims, requests for indemnification and lawsuits arising in the ordinary course of business. Under the indemnification provisions of the Company’s customer agreements, the Company routinely agrees to indemnify and defend its customers against infringement of any patent, trademark, copyright, trade secrets, or other intellectual property rights arising from customers’ legal use of the Company’s products or services. The exposure to the Company under these indemnification provisions is generally limited to the total amount paid for the indemnified products. However, certain indemnification provisions potentially expose the Company to losses in excess of the aggregate amount received from the customer. To date, there have been no claims against the Company by its customers pertaining to such indemnification provisions, and no amounts have been recorded. The Company is currently not a party to any material legal proceedings.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for legal proceedings, legal contingencies, litigation, regulatory and environmental matters and other contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 450 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/450/tableOfContent + Details
Name: | us-gaap_LegalMattersAndContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of undiscounted cash flows of lessee's operating lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to operating lease liability recognized in statement of financial position. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-6 + Details
Name: | us-gaap_LesseeOperatingLeaseLiabilityMaturityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of arrangements in which the entity has agreed to procure goods or services from one or more suppliers. May include identification of the goods or services to be purchased, identity of the seller, pricing, effects on pricing for failing to reach minimum quantities required to be purchased (such as penalties), cancellation rights, and termination provisions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 210 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(17)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(25)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 + Details
Name: | us-gaap_PurchaseCommitmentExcludingLongtermCommitmentTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration