Socket Mobile (NASDAQ: SCKT) adds $0.5M subordinated convertible debt
Rhea-AI Filing Summary
Socket Mobile, Inc. completed a secured subordinated convertible note financing of $500,000 to increase its working capital. The notes carry a 3-year term, mature on March 27, 2029, and pay 10% annual interest in cash, quarterly.
Investors holding the notes may demand repayment of principal plus interest any time after March 27, 2027, and can choose to convert principal into common stock at $0.90 per share. The notes are secured by company assets and subordinated to debt owed to Western Alliance Bank. Board chairman Charlie Bass participated, with the transaction approved by a special committee of disinterested directors. The securities were sold to accredited investors under private offering exemptions.
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8-K Event Classification
Key Figures
Key Terms
secured subordinated convertible note financial
working capital financial
accredited investors financial
Section 4(2) of the Securities Act regulatory
Rule 506 of Regulation D regulatory
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
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Item 1.01. Entry into a Material Definitive Agreement.
On March 27, 2026, Socket Mobile, Inc. (the “Company”) completed a secured subordinated convertible note financing of $500,000 (the “Financing”). The proceeds of the Financing will be used to increase the Company’s working capital balances.
The secured subordinated convertible notes (the “Notes”) have a three-year term and will mature March 27, 2029. The interest rate on the Notes is 10% per year, payable quarterly in cash. The holder of each Note may require the Company to repay the principal amount of the Note plus accrued interest at any time after March 27, 2027. The Notes are secured by the assets of the Company and are subordinated to the Company’s debts with Western Alliance Bank, its senior lender. The principal amount of each Note is convertible at any time, at the option of the holder, into shares of the Company’s common stock (“Common Stock”) at a conversion price of $0.90 per share. Failure to pay the principal payment or any interest payment (with 5 days delinquency) when due are events of default under the Notes. The Company will use reasonable efforts to prepare and file and cause to be declared effective pursuant to the Securities Act of 1933, as amended, no later than June 30, 2026, a Registration Statement to provide for resales of the shares of Common Stock issuable upon conversion of the Notes.
Certain Relationships
Charlie Bass, Chairman of the Company’s Board of Directors (the “Board”) participated in the Financing. Because the Financing involved such parties related to the Company, a special committee of the Board comprising the Board’s disinterested directors approved the Financing.
The foregoing description of the Notes does not purport to be complete and is qualified in its entirety by reference to the full text of the Form of the Secured Subordinated Convertible Note, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference. The press release announcing the Financing is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
The information set forth in Item 1.01 of this Current Report on Form 8-K that relates to the issuance of the Notes and the resulting incurrence of debt is incorporated by reference into this Item 2.03.
Item 3.02. Unregistered Sales of Equity Securities.
The information set forth in Item 1.01 of this Current Report on Form 8-K that relates to the Notes is incorporated by reference into this Item 3.02.
The Common Stock issuable upon conversion of the Notes is not currently registered under the Securities Act. The Notes, and the Common Stock issuable upon conversion thereof, are being issued to accredited investors in reliance upon exemptions from registration under Section 4(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder. These securities may not be offered or sold in the United States absent registration under, or an exemption from, the Securities Act and any applicable state securities laws.
Item 9.01 Financial Statements and Exhibits.
| Exhibit No. | Description | |
| 10.1 | Form of Secured Subordinated Convertible Note | |
| 99.1 | Socket Mobile, Inc. Press Release, dated March 30, 2026 |
SIGNATURES
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.
| SOCKET MOBILE, INC. | |||
| By: | /s/ Lynn Zhao | ||
|
Name: Lynn Zhao Vice President, Finance and Administration and Chief Financial Officer | |||
Date: March 30, 2026
Exhibit 99.1
Socket Mobile Announces $0.5 Million Secured Subordinated Convertible Note Financing
FREMONT, Calif., March 30, 2026 – Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions for enhanced productivity, today announced completion of a secured subordinated convertible note financing of $0.5 million. The proceeds will be used to increase the Company’s working capital balances.
The notes have a three-year term and will mature on March 27, 2029. The interest rate on the notes is 10%, payable quarterly in cash. The holder of each note may require the Company to repay the principal amount of the note plus accrued interest at any time after March 27, 2027. The notes are secured by the assets of the Company and are subordinated to the Company’s debts with Western Alliance Bank, its senior lender. The principal amount of each note is convertible at any time, at the option of the holder, into shares of the Company’s common stock at a conversion price of $0.90 per share, the closing price of the common stock on the Nasdaq Capital Market on March 27, 2026, and the most recent closing price as of the closing of the financing.
The related party participating in the financing is Charlie Bass, Chairman of the Company’s Board of Directors.
Additional details regarding the financing will be provided in Form 8-K to be filed by the Company with the SEC.
About
Socket Mobile:
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 readers/writers. Mobile Applications servicing the specialty retailer, field
service, digital ID, 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 Fremont, Calif., and can be reached at +1-510-933-3000 or www.socketmobile.com (AU, EMEA, UK). Follow Socket Mobile
on LinkedIn, X,
and keep up with our latest News and Updates (AU, EMEA, UK).
Socket 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.
© 2026, Socket Mobile, Inc. All rights reserved.