Socket Mobile (SCKT) 10-Q 14 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 09, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	1-13810
Entity Registrant Name	SOCKET MOBILE, INC.
Entity Central Index Key	0000944075
Entity Tax Identification Number	94-3155066
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	40675 Encyclopedia Circle
Entity Address, City or Town	Fremont
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94538
City Area Code	(510)
Local Phone Number	933-3000
Title of 12(b) Security	Common stock, $0.001 Par Value per Share
Trading Symbol	SCKT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,323,121

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenues	$ 3,205,893	$ 3,727,871	$ 12,635,228	$ 16,066,855
Cost of revenues	1,787,696	2,073,012	6,492,981	8,248,652
Gross profit	1,418,197	1,654,859	6,142,247	7,818,203
Operating expenses:
Research and development	1,206,452	1,096,400	3,643,501	3,271,122
Sales and marketing	1,002,206	864,702	3,013,577	2,729,016
General and administrative	608,094	641,184	2,130,691	2,112,504
Total operating expenses	2,816,752	2,602,286	8,787,769	8,112,642
Operating loss	(1,398,555)	(947,427)	(2,645,522)	(294,439)
Interest expense, net	(76,440)	(43,092)	(169,709)	(133,703)
Net loss before income taxes	(1,474,995)	(990,519)	(2,815,231)	(428,142)
Income tax benefit (expense)	150,000	116,485	(16,000)	0
Net loss	$ (1,324,995)	$ (874,034)	$ (2,831,231)	$ (428,142)
Net loss per share:
Basic	$ (0.16)	$ (0.11)	$ (0.34)	$ (0.05)
Diluted	$ (0.16)	$ (0.11)	$ (0.34)	$ (0.05)
Weighted average shares outstanding:
Basic	7,319,782	7,153,210	7,197,371	7,202,239
Diluted	7,319,782	7,153,210	7,197,371	7,202,239

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 3,093,555	$ 3,623,469
Accounts receivable, net	1,559,679	2,659,861
Inventories, net	5,529,143	5,601,691
Prepaid expenses and other current assets	617,280	617,188
Deferred cost on shipments to distributors	246,700	266,327
Total current assets	11,046,357	12,768,536
Property and equipment:
Machinery and office equipment	2,415,339	1,533,087
Computer equipment, software and website development	3,302,095	2,715,121
	5,717,434	4,248,208
Accumulated depreciation	(3,159,811)	(2,590,999)
Property and equipment, net	2,557,623	1,657,209
Intangible assets, net	1,591,193	1,693,927
Other long-term assets	250,715	250,239
Deferred tax assets	8,652,419	8,668,419
Operating lease right-of-use asset	3,208,084	3,559,658
Total assets	27,306,391	28,597,988
Current liabilities:
Accounts payable and accrued expenses	1,268,399	1,665,028
Accrued payroll and related expenses	642,322	742,541
Deferred revenue on shipments to distributors	595,975	594,793
Short term portion of deferred service revenue	20,334	22,599
Note Payable – current portion		125,000
Subordinated convertible notes payable, net of discount	150,000	147,409
Subordinated convertible notes payable, net of discount-related party	2,834,402	1,230,530
Operating lease – current portion	474,030	444,529
Total current liabilities	5,985,462	4,972,429
Long-term portion of deferred service revenue	12,757	11,767
Operating lease - long-term portion	2,932,748	3,292,035
Total liabilities	8,930,967	8,276,231
Commitments and contingencies
Stockholders’ equity:
Common Stock, Value, Issued	7,323	7,090
Additional paid-in capital	68,250,740	67,157,650
Treasury stock	(1,037,988)	(829,563)
Accumulated deficit	(48,844,651)	(46,013,420)
Total stockholders’ equity	18,375,424	20,321,757
Total liabilities and stockholders’ equity	$ 27,306,391	$ 28,597,988

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.001
Common Stock, Shares Authorized	20,000,000
Common Stock, Shares, Issued	7,682,443	7,355,967
Common Stock, Shares, Outstanding	7,323,193	7,089,676

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2021	$ 7,184	$ 66,139,630		$ (46,100,351)	$ 20,046,463
Shares, Outstanding, Beginning Balance at Dec. 31, 2021	7,183,874
Vesting of restricted stocks	$ 91	(91)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	91,134
Restricted stock retired for tax withholding	$ (26)	(115,189)			(115,215)
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	(26,157)
Exercise of stock option	$ 24	39,508			39,532
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period	24,200
Stock-based compensation		223,446			223,446
Net loss				341,933	341,933
Ending balance, value at Mar. 31, 2022	$ 7,273	66,287,304		(45,758,418)	20,536,159
Shares, Outstanding, Ending Balance at Mar. 31, 2022	7,273,051
Beginning balance, value at Dec. 31, 2021	$ 7,184	66,139,630		(46,100,351)	20,046,463
Shares, Outstanding, Beginning Balance at Dec. 31, 2021	7,183,874
Stock-based compensation					735,378
Net loss					(428,142)
Ending balance, value at Sep. 30, 2022	$ 7,137	66,870,795	$ (653,684)	(46,528,493)	19,695,755
Shares, Outstanding, Ending Balance at Sep. 30, 2022	7,137,112		180,942
Beginning balance, value at Mar. 31, 2022	$ 7,273	66,287,304		(45,758,418)	20,536,159
Shares, Outstanding, Beginning Balance at Mar. 31, 2022	7,273,051
Vesting of restricted stocks	$ 1	(1)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures					1,200
Restricted stock retired for tax withholding		30			$ 30
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	(387)
Exercise of stock option	$ 19	41,950			41,969
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period	19,390
Stock-based compensation		251,534			251,534
Treasury shares purchased	$ 91	(91)	$ 377,950		377,950
Stock Repurchased During Period, Shares	(90,913)
Treasury Stock, Shares, Acquired			90,913
Net loss				103,959	103,959
Treasury shares purchased	(91)	91	(377,950)		(377,950)
Ending balance, value at Jun. 30, 2022	$ 7,202	66,580,908	$ (377,950)	(45,654,459)	20,555,701
Shares, Outstanding, Ending Balance at Jun. 30, 2022	7,202,341		90,913
Exercise of stock option	$ 25	29,399			29,424
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period	24,800
Stock-based compensation		260,398			260,398
Treasury shares purchased	$ 90	(90)	$ 275,734		275,734
Stock Repurchased During Period, Shares	(90,029)
Treasury Stock, Shares, Acquired			90,029
Net loss				(874,034)	(874,034)
Treasury shares purchased	(90)	90	(275,734)		(275,734)
Ending balance, value at Sep. 30, 2022	$ 7,137	66,870,795	$ (653,684)	(46,528,493)	19,695,755
Shares, Outstanding, Ending Balance at Sep. 30, 2022	7,137,112		180,942
Beginning balance, value at Dec. 31, 2022	$ 7,090	67,157,650	$ (829,563)	$ (46,013,420)	20,321,757
Shares, Outstanding, Beginning Balance at Dec. 31, 2022	7,089,676			266,291
Vesting of restricted stocks	$ 148	(148)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	147,972
Restricted stock retired for tax withholding	$ (54)	$ 54
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		(53,647)
Exercise of stock option	$ 39	$ 33,666			33,705
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period	38,909
Stock-based compensation		295,833			295,833
Treasury shares purchased	$ (93)	93	$ (208,425)		(208,425)
Stock Repurchased During Period, Shares	(92,959)
Treasury Stock, Shares, Acquired			92,959
Net loss				(993,420)	(993,420)
Treasury shares purchased	93	(93)	208,425		208,425
Ending balance, value at Mar. 31, 2023	$ 7,130	67,487,148	$ (1,037,988)	(47,006,840)	19,449,450
Shares, Outstanding, Ending Balance at Mar. 31, 2023	7,129,951		359,250
Beginning balance, value at Dec. 31, 2022	$ 7,090	67,157,650	$ (829,563)	$ (46,013,420)	20,321,757
Shares, Outstanding, Beginning Balance at Dec. 31, 2022	7,089,676			266,291
Stock-based compensation					880,508
Net loss					(2,831,231)
Ending balance, value at Sep. 30, 2023	$ 7,323	68,250,740	$ (1,037,988)	$ (48,844,651)	18,375,424
Shares, Outstanding, Ending Balance at Sep. 30, 2023	7,323,193		359,250
Beginning balance, value at Mar. 31, 2023	$ 7,130	67,487,148	$ (1,037,988)	(47,006,840)	19,449,450
Shares, Outstanding, Beginning Balance at Mar. 31, 2023	7,129,951		359,250
Vesting of restricted stocks	$ 93	(93)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	93,180
Restricted stock retired for tax withholding
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	(598)
Exercise of stock option	$ 85	156,525			156,610
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period	85,000
Stock-based compensation		306,416			306,416
Net loss				(512,816)	(512,816)
Ending balance, value at Jun. 30, 2023	$ 7,308	67,949,996	$ (1,037,988)	(47,519,656)	19,399,660
Shares, Outstanding, Ending Balance at Jun. 30, 2023	7,307,533		359,250
Vesting of restricted stocks	$ 1	(1)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	1,035
Restricted stock retired for tax withholding	$ (1)	1
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	(375)
Exercise of stock option	$ 15	22,485			22,500
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period	15,000
Stock-based compensation		278,259			278,259
Net loss				(1,324,995)	(1,324,995)
Ending balance, value at Sep. 30, 2023	$ 7,323	$ 68,250,740	$ (1,037,988)	$ (48,844,651)	$ 18,375,424
Shares, Outstanding, Ending Balance at Sep. 30, 2023	7,323,193		359,250

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating activities
Net loss	$ (2,831,231)	$ (428,142)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation	880,508	735,378
Depreciation and amortization	671,547	575,328
Amortization of debt discount	24,011	24,818
Amortization of operating lease ROU asset	351,574	399,177
Deferred tax expenses (benefits)	16,000
Changes in operating assets and liabilities:
Accounts receivable	1,100,182	764,047
Inventories	72,548	(995,403)
Prepaid expenses and other current assets	(92)	(181,024)
Other assets	(476)	(222,248)
Accounts payable and accrued expenses	(396,629)	(451,911)
Accrued payroll and related expenses	(100,219)	(46,731)
Net deferred revenue on shipments to distributors	20,809	69,708
Deferred service revenue	(1,275)	6,127
Net change in operating lease liability	(329,786)	(279,306)
Net cash used in operating activities	(522,529)	(30,182)
Investing activities
Purchases of PP&E including software and website development	(1,469,227)	(910,603)
Net cash used in investing activities	(1,469,227)	(910,603)
Financing activities
Common stocks repurchased	(208,425)	(653,684)
Proceeds from subordinated convertible notes payable, net of discount - related party	1,582,452
Repayments of note payable	(125,000)	(375,000)
Proceeds from stock options exercised	212,815	110,925
Net cash (used in) provided by financing activities	1,461,842	(917,759)
Net decrease in cash and cash equivalents	(529,914)	(1,858,544)
Cash and cash equivalents at beginning of period	3,623,469	6,095,886
Cash and cash equivalents at end of period	3,093,555	4,237,342
Supplemental disclosure of cash flow information
Cash paid for interest	161,893	122,197
Supplemental disclosure of non-cash activities
Payroll tax liability for retired restricted stock		115,215
Property acquired under operating lease		$ 3,862,511

NOTE 1 _ Basis of Presentation

NOTE 1 — Basis of Presentation	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
NOTE 1 — Basis of Presentation	NOTE 1 Basis of Presentation The accompanying unaudited condensed financial statements of Socket Mobile, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring accruals considered necessary for fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future period. These financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

NOTE 2 _ Summary of Significant

NOTE 2 — Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
NOTE 2 — Summary of Significant Accounting Policies	NOTE 2 — Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates, and such differences may be material to the financial statements. Cash Equivalents and Fair Value of Financial Instruments The Company considers all highly liquid investments purchased with a maturity date of 90 days or less at date of purchase to be cash equivalents. In response to recent volatility in the financial markets in March 2023, the Company entered into an Insured Cash Sweep (“ICS”) Deposit Placement Agreement with IntraFi Network LLC facilitated by its bank, Bridge Bank - a division of Western Alliance Bank. The ICS program provides the Company’s demand or savings products with access to unlimited FDIC insurance, which helps the Company to keep the full amount of the deposit on its balance sheet and provides additional security during times of market uncertainty. As of September 30, 2023 and December 31, 2022, all of the Company’s cash and cash equivalents consisted of amounts held in demand deposit accounts in banks. The Company has never experienced any losses in such accounts. The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, and debt approximate fair value due to the relatively short period of time to maturity. Revenue Recognition and Deferred Revenue $595,975 $246,700 $594,793 $266,327 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2023 The Company also earns revenue from its SocketCare extended warranty program, which provides extended warranty and accidental breakage coverage for selected products. Customers can purchase a SocketCare warranty at the time of product purchase, which provides coverage for a three-year or a five-year term. Revenues from SocketCare services are recognized ratably over the life of the extended warranty contract. For the quarters ended September 30, 2023 and 2022, SocketCare revenue was approximately $5,100 $5,623 $33,000 Cost of Sales and Gross Margins Cost of sales primarily consists of the costs to manufacture our products, including the costs of materials, contract manufacturing, shipping costs, personnel and related expenses including stock-based compensation, equipment and facility expenses, warranty costs and inventory excess and obsolete provisions. The factors that affect our gross margins are the cost of materials, the mix of products and the extent to which we are able to efficiently utilize our manufacturing capacity. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires a lessee to recognize a liability representing future lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For operating leases, a lessee is required to recognize at inception a right-of-use asset and a lease liability equal to the net present value of the lease payments, with lease expense recognized over the lease term on a straight-line basis. For leases with a term of twelve months or less, ASU 2016-02 allows a reporting entity to make an accounting policy election to not recognize a right-of-use asset and a lease liability, and to recognize lease expense on a straight-line basis. The Company adopted ASU 2016-02 effective January 1, 2019. On September 30, 2023, the balances of right-of-use assets and liabilities for the operating lease were $3,208,084 $3,406,778 $3,559,658 $3,736,564 Recently Issued Financial Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position, results of operations or cash flows upon adoption. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2023

NOTE 3 _ Intangible Assets

NOTE 3 — Intangible Assets	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
NOTE 3 — Intangible Assets	NOTE 3 — Intangible Assets In 2021, the Company entered into the Technology Transfer Agreement with SpringCard SAS (“SpringCard”). The Unaudited Condensed Balance Sheets include the intangible assets of the acquired technology at the carrying amount, net of amortization of $1,591,193 The intangible assets are amortized on a straight-line basis over their estimated useful lives of fifteen years, beginning on April 1, 2021. As of September 30, 2023, the estimated future amortization of these intangible assets is as follows: Fiscal Year Amount 2023 (October 1, 2023 to December 31, 2023) $ 31,824 2024 127,296 2025 127,296 2026 127,296 2027 127,296 Thereafter 1,050,185 Total $ 1,591,193

NOTE 4 _ Inventories

NOTE 4 — Inventories	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
NOTE 4 — Inventories	NOTE 4 — Inventories Inventories consist principally of raw materials and sub-assemblies, which are stated at the lower of cost (first-in, first-out) or market. Inventories on September 30, 2023 and December 31, 2022 were as follows: September 30, December 31, 2023 2022 Raw materials and sub-assemblies $ 5,876,769 $ 6,193,453 Finished goods 533,317 289,181 Inventory reserves (880,943 ) (880,943 ) Inventory, net $ 5,529,143 $ 5,601,691

NOTE 5 _ Bank Financing Arrange

NOTE 5 — Bank Financing Arrangements	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
NOTE 5 — Bank Financing Arrangements	NOTE 5 — Bank Financing Arrangements The Company initially entered into a Business Financing Agreement with Western Alliance Bank (the “Bank”), an Arizona corporation, on February 27, 2014, and this agreement has been amended and extended through the years. Amended and Restated Business Financing Agreement On January 29, 2021 2.0 million 1.0 million SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2023 First Business Financing Modification Agreement On February 9, 2022, the Company entered into the First Business Financing Modification Agreement with the Bank. The Bank consented to the share repurchase program of up to $1.8 million. Future audit of accounts receivables will be performed once every twelve months. The Bank increased the credit limit for business credit cards to $250,000. Second Business Financing Modification Agreement and Waiver of Defaults On January 25, 2023, the Company entered into the Second Business Financing Modification Agreement and Waiver of Defaults with the Bank, which extended the maturity date of the Company’s revolving lines of credit to January 31, 2025. Third Business Financing Modification Agreement and Waiver of Defaults On May 26, 2023, the Company entered into the Third Business Financing Modification Agreement, Waiver of Defaults and Consent with the Bank. As part of the agreement, the bank has waived the default resulting from the Company’s failure to meet the minimum adjusted EBITDA requirement in the quarter ended March 31, 2023. Additionally, the bank has provided consent for the issuance of additional subordinated debt during May 2023. Waiver of Defaults On October 30, 2023, the Company entered into the Waiver of Default with the Bank. As part of the agreement, the bank has waived the default resulting from the Company’s failure to meet the minimum adjusted EBITDA requirement in the quarter ended September 30, 2023. The Company did not borrow any amounts on its bank credit lines as of September 30, 2023 and December 31, 2022.

NOTE 6 _ Secured Subordinated C

NOTE 6 — Secured Subordinated Convertible Notes Payable	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
NOTE 6 — Secured Subordinated Convertible Notes Payable	NOTE 6 — Secured Subordinated Convertible Notes Payable On August 31, 2020, the Company completed a secured subordinated convertible note financing of $1,530,000 $1,350,000 The funds raised are used to increase the Company’s working capital balances. The notes have a three-year term and accrue interest at 10% $1.46 $96,515 $1,530,000 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2023 On November 16, 2022, the Company and the requisite holders of the outstanding notes entered into a Secured Subordinated Convertible Note Extension Agreement (the “Extension Agreement”). This agreement extended the maturity date of the remaining balance of $1.4 million from August 30, 2023, to August 30, 2024. All other terms and conditions of the notes remain unchanged and in full force and effect. On May 26, 2023, the Company completed a secured subordinated convertible note financing of $1,600,000 10% $1.34 Total interest expense recognized related to the convertible notes for the three and nine months ended September 30, 2023 was $82,594 $185,023 $43,560 $129,531

NOTE 7 _ Segment Information an

NOTE 7 — Segment Information and Concentrations	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
NOTE 7 — Segment Information and Concentrations	NOTE 7 — Segment Information and Concentrations Segment Information The Company operates in the mobile barcode scanning and RFID/NFC data capture market. Mobile scanning typically consists of mobile devices such as smartphones or tablets, with mobile scanning or NFC peripherals for data collection, and third-party vertical applications software. The Company distributes its products in the United States and foreign countries primarily through distributors and resellers. The Company markets its products primarily through application developers whose applications are designed to work with the Company’s products. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2023 Revenues by geographic areas for the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenues: Americas $ 2,328,696 $ 2,678,380 $ 9,307,625 $ 12,041,965 Europe 514,158 486,073 1,734,446 2,137,008 Asia Pacific 363,039 563,418 1,593,157 1,887,882 Total revenues $ 3,205,893 $ 3,727,871 $ 12,635,228 $ 16,066,855 Export revenues are attributable to countries based on the location of the Company’s customers. The Company does not hold long-lived assets in foreign locations. Major Customers Customers who accounted for at least 10% of the Company’s total revenues for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 BlueStar, Inc. 21 % 31 % 23 % 22 % Ingram Micro Inc. 20 % 16 % 22 % 27 % ScanSource, Inc. * * * 13 % * Customer accounted for less than 10% of the Company’s total revenue Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk include cash, cash equivalents and accounts receivable. The Company invests its cash in demand deposit accounts in banks and the Company has not experienced losses on the investments. The Company’s trade accounts receivables are primarily with distributors. The Company performs ongoing credit evaluations of its customers’ financial condition, but the Company generally requires no collateral. Reserves are maintained for potential credit losses, and such losses have been within management’s expectations. Customers who accounted for at least 10% of the Company’s accounts receivable balances on September 30, 2023 and December 31, 2022 were as follows: September 30, December 31, 2023 2022 BlueStar, Inc. 31 % 46 % Ingram Micro Inc. 17 % 14 % ScanSource, Inc. 15 % 11 % Concentration of Suppliers Several of the Company’s component parts are produced by a sole or limited number of suppliers. Shortages could occur in these essential materials due to increased demand, or due to an interruption of supply. Suppliers may choose to restrict credit terms or require advance payments causing delays in the procurement of essential materials. The Company’s inability to procure certain materials could have a material adverse effect on the Company’s results. For the three months ended September 30, 2023 and 2022, top three suppliers accounted for 52% 55% 18% 31%

NOTE 8 _ Stock-Based Compensati

NOTE 8 — Stock-Based Compensation	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
NOTE 8 — Stock-Based Compensation	NOTE 8 — Stock-Based Compensation The Company recognizes the compensation cost in the financial statements for all stock-based awards to employees, including grants of stock options and restricted stock, based on the fair value of the awards as of the date that the awards are issued. Compensation cost for stock-based awards is recognized on a straight-line basis over the vesting period. The fair values of stock options are generally determined using a binomial lattice valuation model which incorporates assumptions about expected volatility, risk-free interest rate, dividend yield, and expected life. There were no 49,000 Restricted stock shares are issued to employees, consultants, and board directors and are held in escrow by the Company until the shares vest. Vesting is contingent upon the recipients remaining as continuing service providers on each of the vesting dates. In the event of termination of service or employment, unvested shares revert back to the Company. Shares are registered at the time of grant, allowing share owners to vote at the annual stockholder meeting. These shares of restricted stock are granted at zero cost basis. Compensation cost for the restricted stock is recognized on a straight-line basis over the vesting period. For the nine months ended September 30, 2023 and 2022, the Company awarded 459,720 330,700 As of September 30, 2023, there were 1,002,135 Total stock-based compensation expenses for the three and nine months ended September 30, 2023 were $278,259 $880,508 $260,398 $735,378

NOTE 9 _ Net Income (Loss) Per

NOTE 9 — Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
NOTE 9 — Net Income (Loss) Per Share	NOTE 9 — Net Income (Loss) Per Share The following table sets forth the reconciliation of basic shares to diluted shares and the computation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator: Net loss $ (1,324,995 ) $ (874,034 ) $ (2,831,231 ) $ (428,142 ) Net loss allocated to restricted stock award 159,196 92,388 351,024 42,794 Adjusted net loss for basic earnings per share $ (1,165,799 ) $ (781,646 ) $ (2,480,207 ) $ (385,348 ) Convertible note interest — — — — Adjusted net loss before interest for diluted earnings per share $ (1,165,799 ) $ (781,646 ) $ (2,480,207 ) $ (385,348 ) Denominator: Weighted average shares outstanding used in computing net loss per share: Basic 7,319,782 7,153,210 7,197,371 7,202,239 Effect of dilutive stock options — — — — Effect of convertible note weighted shares — — — — Diluted 7,319,782 7,153,210 7,197,371 7,202,239 Net loss per share applicable to common stockholders: Basic $ (0.16 ) $ (0.11 ) $ (0.34 ) $ (0.05 ) Diluted $ (0.16 ) $ (0.11 ) $ (0.34 ) $ (0.05 ) SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2023 In the three and nine months ended September 30, 2023, 1,152,384 2,152,934 50,000 In the three and nine months ended September 30, 2022, 1,334,522 50,000

NOTE 10 _ Income Taxes

NOTE 10 — Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
NOTE 10 — Income Taxes	NOTE 10 — Income Taxes The Company recorded income tax benefit (expense) of $150,000 ($16,000) $116,485 zero

NOTE 11 _ Commitments and Conti

NOTE 11 — Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
NOTE 11 — Commitments and Contingencies	NOTE 11 — Commitments and Contingencies Operating Lease Obligations On May 1, 2022, the Company commenced a lease agreement for approximately 35,913 square feet at 40675 Encyclopedia in Fremont, California. This serves as the location for the Company’s Corporate Headquarters, including office space and manufacturing. Base monthly rent increases annually on May 1 st SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2023 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. As of September 30, 2023, the balances of right-of-use assets and liabilities were approximately $ 3.21 3.41 3.56 3.74 In July 2022, the Company also signed a two-year equipment operating lease agreement and the future lease payments are discounted at the interest rate of 5.5%. The operating lease expense was allocated in cost of goods sold and operating expenses based on department headcount and amounted to $162,108 $486,325 $162,108 $484,713 Cash payments included in the measurement of the Company’s operating lease liabilities were $156,857 $465,386 $102,053 $364,842 Future minimum lease payments for the operating lease in effect as of September 30, 2023 are shown below: Annual minimum payments: Amount 2023 (October 2023 through December 31, 2023) 156,857 2024 636,861 2025 652,883 2026 672,470 2027 692,644 Thereafter 1,139,070 Total minimum payments 3,950,785 Less: Present value factor (544,007 ) Total operating lease liabilities 3,406,778 Less: Current portion of operating lease (474,030 ) Long-term portion of operating lease $ 2,932,748 Purchase Commitments As of September 30, 2023, the Company has non-cancelable purchase commitments for inventory to be used in the ordinary course of business of approximately $7,162,000 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2023 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.

NOTE 12 _ Subsequent Events

NOTE 12 — Subsequent Events	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
NOTE 12 — Subsequent Events	NOTE 12 — Subsequent Events The Company evaluated subsequent events and transactions that occurred between October 1, 2023, to the date of this report, which is when the unaudited condensed financial statements were issued. No subsequent events requiring adjustment or disclosure in the unaudited condensed financial statements were identified by the Company.

NOTE 2 _ Summary of Significa_2

NOTE 2 — Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates, and such differences may be material to the financial statements.
Cash Equivalents and Fair Value of Financial Instruments	Cash Equivalents and Fair Value of Financial Instruments The Company considers all highly liquid investments purchased with a maturity date of 90 days or less at date of purchase to be cash equivalents. In response to recent volatility in the financial markets in March 2023, the Company entered into an Insured Cash Sweep (“ICS”) Deposit Placement Agreement with IntraFi Network LLC facilitated by its bank, Bridge Bank - a division of Western Alliance Bank. The ICS program provides the Company’s demand or savings products with access to unlimited FDIC insurance, which helps the Company to keep the full amount of the deposit on its balance sheet and provides additional security during times of market uncertainty. As of September 30, 2023 and December 31, 2022, all of the Company’s cash and cash equivalents consisted of amounts held in demand deposit accounts in banks. The Company has never experienced any losses in such accounts. The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, and debt approximate fair value due to the relatively short period of time to maturity.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue $595,975 $246,700 $594,793 $266,327 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2023 The Company also earns revenue from its SocketCare extended warranty program, which provides extended warranty and accidental breakage coverage for selected products. Customers can purchase a SocketCare warranty at the time of product purchase, which provides coverage for a three-year or a five-year term. Revenues from SocketCare services are recognized ratably over the life of the extended warranty contract. For the quarters ended September 30, 2023 and 2022, SocketCare revenue was approximately $5,100 $5,623 $33,000
Cost of Sales and Gross Margins	Cost of Sales and Gross Margins Cost of sales primarily consists of the costs to manufacture our products, including the costs of materials, contract manufacturing, shipping costs, personnel and related expenses including stock-based compensation, equipment and facility expenses, warranty costs and inventory excess and obsolete provisions. The factors that affect our gross margins are the cost of materials, the mix of products and the extent to which we are able to efficiently utilize our manufacturing capacity.
Leases	Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires a lessee to recognize a liability representing future lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For operating leases, a lessee is required to recognize at inception a right-of-use asset and a lease liability equal to the net present value of the lease payments, with lease expense recognized over the lease term on a straight-line basis. For leases with a term of twelve months or less, ASU 2016-02 allows a reporting entity to make an accounting policy election to not recognize a right-of-use asset and a lease liability, and to recognize lease expense on a straight-line basis. The Company adopted ASU 2016-02 effective January 1, 2019. On September 30, 2023, the balances of right-of-use assets and liabilities for the operating lease were $3,208,084 $3,406,778 $3,559,658 $3,736,564
Recently Issued Financial Accounting Standards	Recently Issued Financial Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position, results of operations or cash flows upon adoption.

NOTE 3 _ Intangible Assets (Tab

NOTE 3 — Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Estimated Future Amortization of Intangible Assets	Fiscal Year Amount 2023 (October 1, 2023 to December 31, 2023) $ 31,824 2024 127,296 2025 127,296 2026 127,296 2027 127,296 Thereafter 1,050,185 Total $ 1,591,193

NOTE 4 _ Inventories (Tables)

NOTE 4 — Inventories (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Inventories	September 30, December 31, 2023 2022 Raw materials and sub-assemblies $ 5,876,769 $ 6,193,453 Finished goods 533,317 289,181 Inventory reserves (880,943 ) (880,943 ) Inventory, net $ 5,529,143 $ 5,601,691

NOTE 7 _ Segment Information _2

NOTE 7 — Segment Information and Concentrations (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Revenue By Geographic Areas	Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenues: Americas $ 2,328,696 $ 2,678,380 $ 9,307,625 $ 12,041,965 Europe 514,158 486,073 1,734,446 2,137,008 Asia Pacific 363,039 563,418 1,593,157 1,887,882 Total revenues $ 3,205,893 $ 3,727,871 $ 12,635,228 $ 16,066,855
Customers who accounted for at least 10% of the Company's total revenues	Three Months Ended Nine Months Ended 2023 2022 2023 2022 BlueStar, Inc. 21 % 31 % 23 % 22 % Ingram Micro Inc. 20 % 16 % 22 % 27 % ScanSource, Inc. * * * 13 %
Customers who accounted for at least 10% of the Company's accounts receivable balances	September 30, December 31, 2023 2022 BlueStar, Inc. 31 % 46 % Ingram Micro Inc. 17 % 14 % ScanSource, Inc. 15 % 11 %

NOTE 9 _ Net Income (Loss) Pe_2

NOTE 9 — Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Reconciliation of basic shares to diluted shares and the computation of basic and diluted net income per share	Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator: Net loss $ (1,324,995 ) $ (874,034 ) $ (2,831,231 ) $ (428,142 ) Net loss allocated to restricted stock award 159,196 92,388 351,024 42,794 Adjusted net loss for basic earnings per share $ (1,165,799 ) $ (781,646 ) $ (2,480,207 ) $ (385,348 ) Convertible note interest — — — — Adjusted net loss before interest for diluted earnings per share $ (1,165,799 ) $ (781,646 ) $ (2,480,207 ) $ (385,348 ) Denominator: Weighted average shares outstanding used in computing net loss per share: Basic 7,319,782 7,153,210 7,197,371 7,202,239 Effect of dilutive stock options — — — — Effect of convertible note weighted shares — — — — Diluted 7,319,782 7,153,210 7,197,371 7,202,239 Net loss per share applicable to common stockholders: Basic $ (0.16 ) $ (0.11 ) $ (0.34 ) $ (0.05 ) Diluted $ (0.16 ) $ (0.11 ) $ (0.34 ) $ (0.05 )

NOTE 11 _ Commitments and Con_2

NOTE 11 — Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payments under the operating lease in effect as of September 30, 2022	Annual minimum payments: Amount 2023 (October 2023 through December 31, 2023) 156,857 2024 636,861 2025 652,883 2026 672,470 2027 692,644 Thereafter 1,139,070 Total minimum payments 3,950,785 Less: Present value factor (544,007 ) Total operating lease liabilities 3,406,778 Less: Current portion of operating lease (474,030 ) Long-term portion of operating lease $ 2,932,748

NOTE 2 _ Summary of Significa_3

NOTE 2 — Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Product Information [Line Items]
Deferred Revenue, Current	$ 595,975		$ 595,975		$ 594,793
Deferred Costs and Other Assets	246,700		246,700		266,327
Revenues	3,205,893	$ 3,727,871	12,635,228	$ 16,066,855
Deferred Revenue	33,000		33,000
Operating Lease, Right-of-Use Asset	3,208,084		3,208,084		3,559,658
Operating Lease, Liability	3,406,778		$ 3,406,778		$ 3,736,564
Service [Member]
Product Information [Line Items]
Revenues	$ 5,100	$ 5,623

Estimated Future Amortization o

Estimated Future Amortization of Intangible Assets (Details)	Sep. 30, 2023 USD ($)
Business Combination and Asset Acquisition [Abstract]
2023 (October 1, 2023 to December 31, 2023)	$ 31,824
2024	127,296
2025	127,296
2026	127,296
2027	127,296
Thereafter	1,050,185
Total	$ 1,591,193

NOTE 3 _ Intangible Assets (Det

NOTE 3 — Intangible Assets (Details Narrative) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Intangible Assets, Net (Excluding Goodwill)	$ 1,591,193	$ 1,693,927

Inventories (Details)

Inventories (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials and sub-assemblies	$ 5,876,769	$ 6,193,453
Finished goods	533,317	289,181
Inventory reserves	(880,943)	(880,943)
Inventory, net	$ 5,529,143	$ 5,601,691

NOTE 5 _ Bank Financing Arran_2

NOTE 5 — Bank Financing Arrangements (Details Narrative) - USD ($) $ in Millions	36 Months Ended
	Dec. 31, 2023	Jan. 29, 2021
Line of Credit Facility [Line Items]
Line of Credit Facility, Initiation Date	Jan. 29, 2021
Domestic Revolving Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,000,000
Term Loan [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,000,000

NOTE 6 _ Secured Subordinated_2

NOTE 6 — Secured Subordinated Convertible Notes Payable (Details Narrative) - USD ($)	3 Months Ended			9 Months Ended		36 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2020	Sep. 30, 2023	Sep. 30, 2022	May 26, 2026	Aug. 30, 2023	May 26, 2023	Aug. 31, 2020	Aug. 28, 2020
Debt Instrument [Line Items]
[custom:NoteIssued-0]								$ 1,600,000	$ 1,530,000
Subordinated Borrowing, Interest Rate						10%	10%
Debt Instrument, Convertible, Conversion Price								$ 1.34		$ 1.46
Payments of Debt Issuance Costs			$ 96,515
[custom:InterestOnConvertibleDebt]	$ 82,594	$ 43,560		$ 185,023	$ 129,531
Related Party [Member]
Debt Instrument [Line Items]
[custom:NoteIssued-0]									$ 1,350,000

Revenue By Geographic Areas (De

Revenue By Geographic Areas (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	$ 3,205,893	$ 3,727,871	$ 12,635,228	$ 16,066,855
Total revenues	3,205,893	3,727,871	12,635,228	16,066,855
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	2,328,696	2,678,380	9,307,625	12,041,965
Total revenues	2,328,696	2,678,380	9,307,625	12,041,965
EMEA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	514,158	486,073	1,734,446	2,137,008
Total revenues	514,158	486,073	1,734,446	2,137,008
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	363,039	563,418	1,593,157	1,887,882
Total revenues	$ 363,039	$ 563,418	$ 1,593,157	$ 1,887,882

Customers who accounted for at

Customers who accounted for at least 10% of the Company's total revenues (Details)	3 Months Ended				9 Months Ended
	Sep. 30, 2023		Sep. 30, 2022		Sep. 30, 2023		Sep. 30, 2022
Blue Star [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	21		31		23		22
Ingram Micro [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	20		16		22		27
Scan Source [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	0	[1]	0	[1]	0	[1]	13
[1]Customer accounted for less than 10% of the Company’s total revenue

Customers who accounted for a_2

Customers who accounted for at least 10% of the Company's accounts receivable balances (Details)	Dec. 31, 2023	Sep. 30, 2023
Blue Star [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	46	31
Ingram Micro [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	14	17
Scan Source [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	11	15

NOTE 7 _ Segment Information _3

NOTE 7 — Segment Information and Concentrations (Details Narrative) - Supplier Concentration Risk [Member]	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenue, Major Customer [Line Items]
Percentage of inventory purchases from top three suppliers	52%	55%
Accounts payable balances with top two suppliers	18%		31%

NOTE 8 _ Stock-Based Compensa_2

NOTE 8 — Stock-Based Compensation (Details Narrative) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures							0	49,000
Stock Issued During Period, Shares, Restricted Stock Award, Gross							459,720	330,700
Common Stock, Other Shares, Outstanding	1,002,135						1,002,135
Share-Based Payment Arrangement, Noncash Expense	$ 278,259	$ 306,416	$ 295,833	$ 260,398	$ 251,534	$ 223,446	$ 880,508	$ 735,378

Reconciliation of basic shares

Reconciliation of basic shares to diluted shares and the computation of basic and diluted net income per share (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net loss	$ (1,324,995)	$ (512,816)	$ (993,420)	$ (874,034)	$ 103,959	$ 341,933	$ (2,831,231)	$ (428,142)
Net loss allocated to restricted stock award	159,196			92,388			351,024	42,794
Adjusted net loss before interest for diluted earnings per share	(1,165,799)			(781,646)			(2,480,207)	(385,348)
Convertible note interest
Denominator: Weighted average shares outstanding used in computing net loss per share:
Basic	7,319,782			7,153,210			7,197,371	7,202,239
Effect of dilutive stock options
Effect of convertible note weighted shares
Diluted	7,319,782			7,153,210			7,197,371	7,202,239
Net loss per share applicable to common stockholders:
Basic	$ (0.16)			$ (0.11)			$ (0.34)	$ (0.05)
Diluted	$ (0.16)			$ (0.11)			$ (0.34)	$ (0.05)

NOTE 9 _ Net Income (Loss) Pe_3

NOTE 9 — Net Income (Loss) Per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,152,384	1,334,522	2,152,934	1,334,522
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	50,000	50,000

NOTE 10 _ Income Taxes (Details

NOTE 10 — Income Taxes (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 150,000	$ 116,485	$ (16,000)	$ 0

Future minimum lease payments u

Future minimum lease payments under the operating lease in effect as of September 30, 2022 (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2023 (October 2023 through December 31, 2023)	$ 156,857
2024	636,861
2025	652,883
2026	672,470
2027	692,644
Thereafter	1,139,070
Total minimum payments	3,950,785
Less: Present value factor	(544,007)
Total operating lease liabilities	3,406,778	$ 3,736,564
Less: Current portion of operating lease	$ (474,030)	$ (444,529)

NOTE 11 _ Commitments and Con_3

NOTE 11 — Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating Lease, Right-of-Use Asset	$ 3,208,084		$ 3,208,084		$ 3,559,658
Operating Lease, Liability	3,406,778		3,406,778		$ 3,736,564
Operating Lease, Expense	162,108	$ 162,108	486,325	$ 484,713
Operating Lease, Payments	156,857	$ 102,053	465,386	$ 364,842
Purchase Obligation, to be Paid, Year One	$ 7,162,000		$ 7,162,000