NEWARK, Calif., Nov. 17, 2020 /PRNewswire/ -- Socket Mobile,
Inc. (NASDAQ: SCKT), a leading innovator of data capture and
delivery solutions for enhanced productivity, announced today that
it has completed the annual goodwill impairment test required by
generally accepted accounting principles. As a result of the lower
stock price from the beginning of 2020 through the annual goodwill
measurement date of September
30th, the Company concluded that an adjustment to
its fair value was required.
The non-cash impairment charge totaled $4.4 million and was recorded in the Company's Q3
2020 results. The impairment charge does not affect the Company's
cash position, cash flow from operating activities, bank debt
covenants, and does not have any impact on future operations.
The revised financial tables reflecting the goodwill impairment
can be found at the end of this press release. For detailed
information, please refer to the Company's Quarterly Report on Form
10-Q for the quarter ended September 30,
2020 at
https://www.sec.gov/Archives/edgar/data/944075/000094407520000048/q3-2020.htm
About Socket Mobile, Inc.
Socket Mobile is a leading
provider of data capture and delivery solutions for enhanced
productivity in workforce mobilization. Socket Mobile's revenue is
primarily driven by the deployment of third-party barcode enabled
mobile applications that integrate Socket Mobile's cordless barcode
scanners and contactless reader/writers. Mobile Applications
servicing the specialty retailer, field service, transportation,
and manufacturing markets are the primary revenue drivers. Socket
Mobile has a network of thousands of developers who use its
software developer tools to add sophisticated data capture to their
mobile applications. Socket Mobile is headquartered in Newark, Calif. and can be reached at
+1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile
on Facebook, Twitter @socketmobile and on our sockettalk
blog.
Socket Mobile Investor Contact:
Lynn Zhao
Chief Financial Officer
510-933-3016
lynn@socketmobile.com
Socket is a registered trademark of Socket Mobile. All
other trademarks and trade names contained herein may be those of
their respective owners.
© 2020, Socket Mobile, Inc.
All rights reserved.
-- Revised financial tables to follow --
|
Socket Mobile,
Inc.
Summary Statements
of Operations (Unaudited)
(Amounts in
Thousands except per share amounts and percentages)
|
|
|
Three months ended
Sept 30,
|
Nine months ended
Sept 30,
|
|
2020
|
2019
|
2020
|
2019
|
|
Revenue
|
$
4,109
|
$
4,980
|
$
11,044
|
$
14,668
|
|
Cost of
revenue
|
1,835
|
2,344
|
5,186
|
7,003
|
|
Gross
margin
|
2,274
|
2,636
|
5,858
|
7,665
|
|
Gross
margin percent
|
55.3%
|
52.9%
|
53.0%
|
52.3%
|
|
Research &
development
|
681
|
1,015
|
2,421
|
2,906
|
|
Sales &
marketing
|
658
|
785
|
2,148
|
2,312
|
|
General &
administrative
|
486
|
707
|
1,741
|
2,053
|
|
Goodwill impairment
charges
|
4,427
|
--
|
4,427
|
--
|
|
Total
operating expenses
|
6,252
|
2,507
|
10,737
|
7,271
|
|
Operating income
(loss)
|
(3,978)
|
129
|
(4,879)
|
394
|
|
Other
income
|
--
|
--
|
70
|
--
|
|
Interest income
(expense), net
|
(24)
|
(25)
|
(51)
|
(83)
|
|
Income tax (expense)
benefit
|
(1)
|
(10)
|
(1)
|
(85)
|
|
Net income
(loss)
|
$
(4,003)*
|
$
94
|
$
(4,861)*
|
$
226
|
|
Earnings (loss) per
share:
Basic
Diluted
|
$ (0.62)*
$ (0.62)*
|
$ 0.02
$ 0.01
|
$
(0.76)*
$
(0.76)*
|
$ 0.04
$
0.04
|
|
Weighted average
shares outstanding:
Basic
Diluted
|
6,038
6,038
|
5,999
6,317
|
6,020
6,020
|
5,980
6,237
|
|
*Included goodwill
impairment adjustment of $4.43 million recorded as of September 30,
2020
|
|
Socket Mobile,
Inc.
Condensed Summary
Balance Sheets
(Amounts in
Thousands)
|
|
|
September
30,
2020
|
December 31,
2019**
|
|
Cash
|
$
1,775
|
$
959
|
|
Accounts receivable,
net
|
2,359
|
2,837
|
|
Inventories,
net
|
3,362
|
3,179
|
|
Deferred cost on
shipments to distributors
|
179
|
234
|
|
Other current
assets
|
317
|
312
|
|
Property and
equipment, net
|
835
|
864
|
|
Goodwill
|
--
|
4,427
|
|
Deferred tax
assets
|
5,507
|
5,507
|
|
Operating leases
right-of-use assets
|
704
|
937
|
|
Other long-term
assets
|
170
|
202
|
|
Total
assets
|
$
15,208*
|
$
19,458
|
|
Accounts payable and
accrued liabilities
|
$
2,417
|
$
2,651
|
|
Bank line of
credit
|
--
|
1,413
|
|
Notes
payable
|
1,059
|
333
|
|
Subordinated
convertible notes payable, net of discount
|
168
|
--
|
|
Subordinated
convertible notes payable, net of discount-related party
|
1,265
|
--
|
|
Deferred revenue on
shipments to distributors
|
557
|
611
|
|
Deferred service
revenue
|
55
|
74
|
|
Operating lease
liabilities
|
855
|
1,134
|
|
Other
liabilities
|
--
|
8
|
|
Total
liabilities
|
6,376
|
6,224
|
|
Common
stock
|
61,532
|
61,073
|
|
Accumulated
deficit
|
(52,700)*
|
(47,839)
|
|
Total
equity
|
8,832*
|
13,234
|
|
Total liabilities and
equity
|
$
15,208*
|
$
19,458
|
|
*Included goodwill
impairment adjustment of $4.43 million recorded as of September 30,
2020
|
|
**Derived from
audited financial statements.
|
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SOURCE Socket Mobile, Inc.