Socket Mobile (SCKT) 10-Q 13 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 09, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
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		7,598,849

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenues	$ 5,081,398	$ 5,117,157	$ 10,059,195	$ 9,429,335
Cost of revenues	2,497,067	2,465,594	4,970,108	4,705,285
Gross profit	2,584,331	2,651,563	5,089,087	4,724,050
Operating expenses:
Research and development	1,231,953	1,189,930	2,440,035	2,437,049
Sales and marketing	1,154,245	1,004,579	2,185,516	2,011,371
General and administrative	733,276	748,609	1,483,854	1,522,597
Total operating expenses	3,119,474	2,943,118	6,109,405	5,971,017
Operating loss	(535,143)	(291,555)	(1,020,318)	(1,246,967)
Interest expense, net	(72,488)	(55,261)	(144,728)	(93,269)
Net loss before income taxes	(607,631)	(346,816)	(1,165,046)	(1,340,236)
Income tax expense		(166,000)		(166,000)
Net loss	$ (607,631)	$ (512,816)	$ (1,165,046)	$ (1,506,236)
Net loss per share:
Basic	$ (0.08)	$ (0.06)	$ (0.16)	$ (0.18)
Diluted	$ (0.08)	$ (0.06)	$ (0.16)	$ (0.18)
Weighted average shares outstanding:
Basic	7,571,940	7,163,608	7,511,378	7,135,149
Diluted	7,571,940	7,163,608	7,511,378	7,135,149

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 2,116,921	$ 2,826,630
Accounts receivable, net	2,550,219	1,699,696
Inventories, net	5,186,030	5,409,047
Prepaid expenses and other current assets	561,821	440,730
Deferred cost on shipments to distributors	247,145	322,580
Total current assets	10,662,136	10,698,683
Property and equipment:
Machinery and office equipment	2,677,561	2,700,759
Computer equipment	3,582,404	3,631,945
	6,259,965	6,332,704
Accumulated depreciation	(3,588,676)	(3,299,503)
Property and equipment, net	2,671,289	3,033,201
Intangible assets, net	1,495,721	1,559,369
Other long-term assets	248,715	249,715
Deferred tax assets	10,112,419	10,112,419
Operating lease right-of-use asset	2,853,267	3,088,087
Total assets	28,043,547	28,741,474
Current liabilities:
Accounts payable and accrued expenses	1,803,697	1,605,231
Accrued payroll and related expenses	733,669	579,974
Deferred revenue on shipments to distributors	592,199	825,670
Short term portion of deferred service revenue	19,654	19,885
Subordinated convertible notes payable, net of discount	150,000	150,000
Subordinated convertible notes payable, net of discount-related party	2,838,789	2,835,864
Operating lease – current portion	505,407	483,161
Total current liabilities	6,643,415	6,499,785
Long-term portion of deferred service revenue	14,786	12,813
Long-term portion of operating lease	2,559,204	2,808,872
Total liabilities	9,217,405	9,321,470
Commitments and contingencies
Stockholders’ equity:
Common Stock, Value, Issued	7,597	7,336
Additional paid-in capital	68,954,153	68,383,230
Treasury stock	(1,037,988)	(1,037,988)
Accumulated deficit	(49,097,620)	(47,932,574)
Total stockholders’ equity	18,826,142	19,420,004
Total liabilities and stockholders’ equity	$ 28,043,547	$ 28,741,474

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
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	7,956,368	7,695,371
Common Stock, Shares, Outstanding	7,597,118	7,336,121

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, 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 stock	$ 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 options	$ 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
Net loss				(993,420)	(993,420)
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	(53,647)
Treasury shares purchased	$ (93)	93	$ (208,425)		(208,425)
Stock Repurchased During Period, Shares	(92,959)
Treasury Stock, Shares, Acquired			92,959
Restricted stock retired for tax withholding	$ 54	(54)
Shares, Outstanding, Ending Balance at Mar. 31, 2023	7,129,951		359,250
Ending balance, value at Mar. 31, 2023	$ 7,130	67,487,148	$ (1,037,988)	(47,006,840)	19,449,450
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					602,249
Net loss					(1,506,236)
Shares, Outstanding, Ending Balance at Jun. 30, 2023	7,307,533		359,250
Ending balance, value at Jun. 30, 2023	$ 7,308	67,949,996	$ (1,037,988)	(47,519,656)	19,399,660
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 stock	$ 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 options	$ 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)
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	(598)
Restricted stock retired for tax withholding
Shares, Outstanding, Ending Balance at Jun. 30, 2023	7,307,533		359,250
Ending balance, value at Jun. 30, 2023	$ 7,308	67,949,996	$ (1,037,988)	(47,519,656)	19,399,660
Beginning balance, value at Dec. 31, 2023	$ 7,336	68,383,230	$ (1,037,988)	(47,932,574)	19,420,004
Shares, Outstanding, Beginning Balance at Dec. 31, 2023	7,336,121		359,250
Vesting of restricted stock	$ 257	(257)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	256,787
Restricted stock retired for tax withholding	$ (71)	71
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation					(70,581)
Exercise of stock options	$ 25	23,725			$ 23,750
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period	25,000
Stock-based compensation		272,700			272,700
Net loss				(557,415)	$ (557,415)
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation					70,581
Restricted stock retired for tax withholding	$ 71	(71)
Shares, Outstanding, Ending Balance at Mar. 31, 2024	7,547,327		359,250
Ending balance, value at Mar. 31, 2024	$ 7,547	68,679,469	$ (1,037,988)	(48,489,989)	19,159,039
Beginning balance, value at Dec. 31, 2023	$ 7,336	68,383,230	$ (1,037,988)	(47,932,574)	19,420,004
Shares, Outstanding, Beginning Balance at Dec. 31, 2023	7,336,121		359,250
Stock-based compensation					547,434
Net loss					(1,165,046)
Shares, Outstanding, Ending Balance at Jun. 30, 2024	7,597,118		359,250
Ending balance, value at Jun. 30, 2024	$ 7,597	68,954,153	$ (1,037,988)	(49,097,620)	18,826,142
Beginning balance, value at Mar. 31, 2024	$ 7,547	68,679,469	$ (1,037,988)	(48,489,989)	19,159,039
Shares, Outstanding, Beginning Balance at Mar. 31, 2024	7,547,327		359,250
Vesting of restricted stock	$ 50	(50)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	50,300
Restricted stock retired for tax withholding
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	509
Stock-based compensation		274,734			274,734
Net loss				(607,631)	(607,631)
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	(509)
Restricted stock retired for tax withholding
Shares, Outstanding, Ending Balance at Jun. 30, 2024	7,597,118		359,250
Ending balance, value at Jun. 30, 2024	$ 7,597	$ 68,954,153	$ (1,037,988)	$ (49,097,620)	$ 18,826,142

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities
Net loss	$ (1,165,046)	$ (1,506,236)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	547,434	602,249
Depreciation and amortization	520,595	418,549
Amortization of debt discount	2,925	17,033
Amortization of operating lease ROU Asset	243,050	233,003
Deferred tax benefits		166,000
Changes in operating assets and liabilities:
Accounts receivable	(850,523)	(540,561)
Inventories	223,017	92,541
Prepaid expenses and other current assets	(121,091)	(546)
Other assets	1,000	(24,289)
Accounts payable and accrued expenses	198,466	173,401
Accrued payroll and related expenses	153,696	(142,244)
Net deferred revenue on shipments to distributors	(158,036)	201,214
Deferred service revenue	1,742	(1,829)
Net change in operating lease liability	(235,653)	(216,467)
Net cash used in operating activities	(638,424)	(528,182)
Investing activities
Purchases of equipment and computer hardware and software	(167,835)	(1,103,592)
Proceeds from tenant improvements allowance	72,800
Net cash used in investing activities	(95,035)	(1,103,592)
Financing activities
Common stocks repurchased and related expenses		(208,425)
Proceeds from note payable		1,582,452
Repayments of note payable		(125,000)
Proceeds from stock options exercised	23,750	190,315
Net cash provided by financing activities	23,750	1,439,342
Net decrease in cash and cash equivalents	(709,709)	(192,432)
Cash and cash equivalents at beginning of period	2,826,630	3,623,469
Cash and cash equivalents at end of period	2,116,921	3,431,037
Supplemental disclosure of cash flow information
Cash paid for interest	179,589	70,934
Cash paid for income taxes
Supplemental disclosure of non-cash activities
Property acquired under operating lease	$ 8,230

NOTE 1 _ Basis of Presentation

NOTE 1 — Basis of Presentation	6 Months Ended
	Jun. 30, 2024
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, 2023.

NOTE 2 _ Summary of Significant

NOTE 2 — Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
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 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 June 30, 2024, and December 31, 2023, 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 With the adoption of ASC 606 “Revenue from Contracts with Customers” in 2017, the Company recognizes revenue on sales to distributors when shipping of product is completed and title transfers to distributor, less a reserve for estimated product returns (sales and cost of sales). The reserves are based on estimates of future returns calculated from actual return history, primarily from stock rotations, plus knowledge of pending returns outside of the norm. On June 30, 2024, the deferred revenue and deferred cost on shipments to distributors were $592,199 $247,145 $825,670 $322,580 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2024 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 June 30, 2024 and 2023, SocketCare revenue was approximately $4,600 $5,400 $34,400 $32,700 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 On May 1, 2022, the Company entered into a building lease agreement for its corporate headquarters located in Fremont, CA. On June 30, 2024, the balances of right-of-use assets and liabilities for the operating lease were $2,853,267 $3,064,611 $3,088,087 $3,292,033 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

NOTE 3 — Intangible Assets	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
NOTE 3 — Intangible Assets	NOTE 3 — Intangible Assets In 2021, the Company entered into the Technology Transfer Agreement with SpringCard SAS. The Unaudited Condensed Balance Sheets include the intangible assets of the acquired technology at the carrying amount, net of amortization of $1,495,721 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 June 30, 2024, the estimated future amortization of these intangible assets is as follows: Fiscal Year Amount 2024 (July 1, 2024 to December 31, 2024) $ 63,648 2025 127,296 202 127,296 2027 127,296 2028 127,296 Thereafter 922,889 Total $ 1,495,721 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2024 The amortization expense was $31,824 $63,648

NOTE 4 _ Inventories

NOTE 4 — Inventories	6 Months Ended
	Jun. 30, 2024
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 June 30, 2024 and December 31, 2023 were as follows: June 30, December 31, 2024 2023 Raw materials and sub-assemblies $ 5,850,099 $ 5,839,176 Finished goods 296,874 500,814 Inventory reserves (960,943 ) (930,943 ) Inventory, net $ 5,186,030 $ 5,409,047

NOTE 5 _ Bank Financing Arrange

NOTE 5 — Bank Financing Arrangements	6 Months Ended
	Jun. 30, 2024
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. 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. Under the terms of the agreement, the Bank agreed to waive 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 granted its consent for the issuance of additional subordinated debt in 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 waived the default resulting from the Company’s failure to meet the minimum adjusted EBITDA requirement in the quarter ended September 30, 2023. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2024 Fourth Business Financing Modification Agreement and Waiver of Defaults On April 8, 2024, the Company entered into the Fourth Business Financing Modification Agreement and Waiver of Default with the Bank. Under the terms of the agreement, the Bank agreed to waive the default arising from the Company’s failure to meet the minimum adjusted EBITDA requirement in the quarter ended December 31, 2023. Additionally, the Bank amended the Agreement to include minimum quarterly adjusted EBITDA for 2024 and decreased the advanced rate to up to 75% in the case of both domestic eligible receivables and EXIM eligible receivables. Interest expense on the CalCap Loan for the three and six months ended June 30, 2023, amounted to $1,138. The CalCap Loan balance of $125,000 There were no amounts borrowed on the Company’s bank credit lines as of June 30, 2024.

NOTE 6 _ Secured Subordinated C

NOTE 6 — Secured Subordinated Convertible Notes Payable	6 Months Ended
	Jun. 30, 2024
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 that accrues interest at 10% $1.46 $96,515 $1,530,000 On November 16, 2022, the Company and the requisite holders of the outstanding notes entered into a Secured Subordinated Convertible Note Extension Agreement, extending the maturity date of the notes from August 30, 2023 to August 30, 2024. All other terms and conditions of the notes remain in full force and effect. On May 1, 2024, the Company and the requisite holders of the outstanding notes entered into a Secured Subordinated Convertible Note Extension Agreement, extending the maturity date of the notes from August 30, 2024 to August 30, 2025. All other terms and conditions of the notes remain in full force and effect. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2024 On May 26, 2023, the Company completed a secured subordinated convertible note financing of $1,600,000 10% $1.34 Amortization of debt discount totaled $1,463 $2,925 $8,760 $17,033 Total interest expense recognized related to the convertible note was $76,257 $152,514 $59,636 $102,429

NOTE 7 _ Segment Information an

NOTE 7 — Segment Information and Concentrations	6 Months Ended
	Jun. 30, 2024
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. Revenues by geographic areas for the three months ended June 30, 2024 and 2023 were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenues: Americas $ 3,925,767 $ 3,840,276 $ 7,484,083 $ 6,978,929 Europe 567,372 677,761 1,162,447 1,220,288 Asia Pacific 588,259 599,120 1,412,665 1,230,118 Total revenues $ 5,081,398 $ 5,117,157 $ 10,059,195 $ 9,429,335 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. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2024 Major Customers Customers who accounted for at least 10% of the Company’s total revenues for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 BlueStar, Inc. 43 % 26 % 33 % 23 % Ingram Micro Inc. 17 % 22 % 17 % 23 % Nippon Primex, Inc. * * 10 % * *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 June 30, 2024 and December 31, 2023 were as follows: June 30, December 31, 2024 2023 BlueStar, Inc. 58 % * Ingram Micro Inc. 12 % 20 % ScanSource, Inc. * 13 % Synnex Corporation * 14 % Nippon Primex, Inc. * 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 six months ended June 30, 2024 and 2023, the top three suppliers accounted for 55% 54% 28% 40%

NOTE 8 _ Stock-Based Compensati

NOTE 8 — Stock-Based Compensation	6 Months Ended
	Jun. 30, 2024
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. On June 25, 2024, the Company completed a one-time tender offer to exchange 613,936 shares granted under its 2004 Equity Incentive Plan to the current employees, executive officers, and directors of the Company. All surrendered options were cancelled effective as of the expiration of the Exchange Offer on June 25, 2024. The Company granted new options to purchase an aggregate of 613,936 $1.1197 In addition to the new shares issued under the exchange program, 75,000 The shares of restricted stock are issued to employees and consultants and are held in escrow by the Company until the shares vest on the schedule of 15% after year one, 20% after year two, 25% after year three and 40% after year four, subject to the employees and consultants being a continuing service provider on each of the vesting dates. If the service or employment is terminated, unvested shares revert to the Company. Shares are registered at grant, so share owners may vote at the annual stockholder meeting. Shares of restricted stock are granted at zero cost basis. Compensation cost of the restricted stock is recognized on a straight-line basis over the 4-year vesting period. For the six months ended June 30, 2024 and 2023, the Company awarded 500,750 450,370 1,134,907 307,087 Total stock-based compensation expenses for the three and six months ended June 30, 2024 were $274,734 $547,434 $306,416 $602,249

NOTE 9 _ Net Loss Per Share

NOTE 9 — Net Loss Per Share	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
NOTE 9 — Net Loss Per Share	NOTE 9 — Net Loss Per Share The following table sets forth the reconciliation of basic shares to diluted shares and the computation of basic and diluted net loss per share: Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator: Net loss $ (607,631 ) $ (512,816 ) $ (1,165,046 ) $ (1,506,236 ) Denominator: Weighted average shares outstanding used in computing net income (loss) per share: Basic 7,571,940 7,163,608 7,511,378 7,135,149 Diluted 7,571,940 7,163,608 7,511,378 7,135,149 Net loss per share applicable to common stockholders: Basic $ (0.08 ) $ (0.06 ) $ (0.16 ) (0.18 ) Diluted $ (0.08 ) $ (0.06 ) $ (0.16 ) (0.18 ) In the three and six months ended June 30, 2024, 1,130,846 2,152,934 50,000 In the three and six months ended June 30, 2023, 1,167,384 2,152,934 50,000

NOTE 10 _ Income Taxes

NOTE 10 — Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
NOTE 10 — Income Taxes	NOTE 10 — Income Taxes The Company did not record an income tax expense in the three and six months ended June 30, 2024, compared to income tax expenses of $166,000

NOTE 11 _ Commitments and Conti

NOTE 11 — Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
NOTE 11 — Commitments and Contingencies	NOTE 11 — Commitments and Contingencies Operating Lease Obligations On February 1, 2022, the Company commenced a lease agreement for approximately 35,913 square feet at 40675 Encyclopedia Circle in Fremont, California. This serves as the location for the Company’s Corporate Headquarters, including office space and manufacturing. The Company will pay a base monthly rent in the amount of $51,786 commencing on the first day of the fourth full month of the lease term. Base monthly rent will increase annually on May 1 st SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2024 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 June 30, 2024, the balances of right-of-use assets and liabilities were approximately $2.85 $3.06 $3.09 $3.29 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 $161,681 $323,363 $162,108 $324,217 Cash payments included in the measurement of the Company’s operating lease liabilities were $159,537 $315,967 $155,348 $308,530 Future minimum lease payments for the operating lease in effect as of June 30, 2024 are shown below: Annual minimum payments: Amount 2024 (July 2024 through December 31, 2024) 322,181 2025 657,164 2026 676,750 2027 692,644 2028 713,423 2029 425,647 Total minimum payments 3,487,809 Less: Present value factor (423,198 ) Total operating lease liabilities 3,064,611 Less: Current portion of operating lease (505,407 ) Long-term portion of operating lease $ 2,559,204 Purchase Commitments As of June 30, 2024, the Company has non-cancelable purchase commitments for inventory to be used in the ordinary course of business of approximately $5,381,000 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2024 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	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
NOTE 12 — Subsequent Events	NOTE 12 — Subsequent Events The Company did not identify any subsequent events that would have required adjustment or disclosure in the unaudited condensed financial statements.

NOTE 2 _ Summary of Significa_2

NOTE 2 — Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
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 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 June 30, 2024, and December 31, 2023, 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 With the adoption of ASC 606 “Revenue from Contracts with Customers” in 2017, the Company recognizes revenue on sales to distributors when shipping of product is completed and title transfers to distributor, less a reserve for estimated product returns (sales and cost of sales). The reserves are based on estimates of future returns calculated from actual return history, primarily from stock rotations, plus knowledge of pending returns outside of the norm. On June 30, 2024, the deferred revenue and deferred cost on shipments to distributors were $592,199 $247,145 $825,670 $322,580 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2024 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 June 30, 2024 and 2023, SocketCare revenue was approximately $4,600 $5,400 $34,400 $32,700
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 On May 1, 2022, the Company entered into a building lease agreement for its corporate headquarters located in Fremont, CA. On June 30, 2024, the balances of right-of-use assets and liabilities for the operating lease were $2,853,267 $3,064,611 $3,088,087 $3,292,033
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 7 _ Segment Information _2

NOTE 7 — Segment Information and Concentrations (Policies)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Segment Information	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. Revenues by geographic areas for the three months ended June 30, 2024 and 2023 were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenues: Americas $ 3,925,767 $ 3,840,276 $ 7,484,083 $ 6,978,929 Europe 567,372 677,761 1,162,447 1,220,288 Asia Pacific 588,259 599,120 1,412,665 1,230,118 Total revenues $ 5,081,398 $ 5,117,157 $ 10,059,195 $ 9,429,335 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	Major Customers Customers who accounted for at least 10% of the Company’s total revenues for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 BlueStar, Inc. 43 % 26 % 33 % 23 % Ingram Micro Inc. 17 % 22 % 17 % 23 % Nippon Primex, Inc. * * 10 % * *Customer accounted for less than 10% of the Company’s total revenue
Concentration of Credit Risk	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 June 30, 2024 and December 31, 2023 were as follows: June 30, December 31, 2024 2023 BlueStar, Inc. 58 % * Ingram Micro Inc. 12 % 20 % ScanSource, Inc. * 13 % Synnex Corporation * 14 % Nippon Primex, Inc. * 11 %

NOTE 11 _ Commitments and Con_2

NOTE 11 — Commitments and Contingencies (Policies)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Operating Lease Obligations	Operating Lease Obligations On February 1, 2022, the Company commenced a lease agreement for approximately 35,913 square feet at 40675 Encyclopedia Circle in Fremont, California. This serves as the location for the Company’s Corporate Headquarters, including office space and manufacturing. The Company will pay a base monthly rent in the amount of $51,786 commencing on the first day of the fourth full month of the lease term. Base monthly rent will increase annually on May 1 st SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2024 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 June 30, 2024, the balances of right-of-use assets and liabilities were approximately $2.85 $3.06 $3.09 $3.29 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 $161,681 $323,363 $162,108 $324,217 Cash payments included in the measurement of the Company’s operating lease liabilities were $159,537 $315,967 $155,348 $308,530 Future minimum lease payments for the operating lease in effect as of June 30, 2024 are shown below: Annual minimum payments: Amount 2024 (July 2024 through December 31, 2024) 322,181 2025 657,164 2026 676,750 2027 692,644 2028 713,423 2029 425,647 Total minimum payments 3,487,809 Less: Present value factor (423,198 ) Total operating lease liabilities 3,064,611 Less: Current portion of operating lease (505,407 ) Long-term portion of operating lease $ 2,559,204
Purchase Commitments	Purchase Commitments As of June 30, 2024, the Company has non-cancelable purchase commitments for inventory to be used in the ordinary course of business of approximately $5,381,000
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.

NOTE 3 _ Intangible Assets (Tab

NOTE 3 — Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Estimated Future Amortization of Intangible Assets	Fiscal Year Amount 2024 (July 1, 2024 to December 31, 2024) $ 63,648 2025 127,296 202 127,296 2027 127,296 2028 127,296 Thereafter 922,889 Total $ 1,495,721

NOTE 4 _ Inventories (Tables)

NOTE 4 — Inventories (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Inventories	June 30, December 31, 2024 2023 Raw materials and sub-assemblies $ 5,850,099 $ 5,839,176 Finished goods 296,874 500,814 Inventory reserves (960,943 ) (930,943 ) Inventory, net $ 5,186,030 $ 5,409,047

NOTE 7 _ Segment Information _3

NOTE 7 — Segment Information and Concentrations (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Revenue By Geographic Areas	Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenues: Americas $ 3,925,767 $ 3,840,276 $ 7,484,083 $ 6,978,929 Europe 567,372 677,761 1,162,447 1,220,288 Asia Pacific 588,259 599,120 1,412,665 1,230,118 Total revenues $ 5,081,398 $ 5,117,157 $ 10,059,195 $ 9,429,335
Customers who accounted for at least 10% of the Company's total revenues	Three Months Ended Six Months Ended 2024 2023 2024 2023 BlueStar, Inc. 43 % 26 % 33 % 23 % Ingram Micro Inc. 17 % 22 % 17 % 23 % Nippon Primex, Inc. * * 10 % * *Customer accounted for less than 10% of the Company’s total revenue
Customers who accounted for at least 10% of the Company's accounts receivable balances	June 30, December 31, 2024 2023 BlueStar, Inc. 58 % * Ingram Micro Inc. 12 % 20 % ScanSource, Inc. * 13 % Synnex Corporation * 14 % Nippon Primex, Inc. * 11 %

NOTE 9 _ Net Loss Per Share (Ta

NOTE 9 — Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Reconciliation of basic shares to diluted shares and the computation of basic and diluted net income per share	Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator: Net loss $ (607,631 ) $ (512,816 ) $ (1,165,046 ) $ (1,506,236 ) Denominator: Weighted average shares outstanding used in computing net income (loss) per share: Basic 7,571,940 7,163,608 7,511,378 7,135,149 Diluted 7,571,940 7,163,608 7,511,378 7,135,149 Net loss per share applicable to common stockholders: Basic $ (0.08 ) $ (0.06 ) $ (0.16 ) (0.18 ) Diluted $ (0.08 ) $ (0.06 ) $ (0.16 ) (0.18 )

NOTE 11 _ Commitments and Con_3

NOTE 11 — Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payments under the operating lease in effect as of September 30, 2022	Annual minimum payments: Amount 2024 (July 2024 through December 31, 2024) 322,181 2025 657,164 2026 676,750 2027 692,644 2028 713,423 2029 425,647 Total minimum payments 3,487,809 Less: Present value factor (423,198 ) Total operating lease liabilities 3,064,611 Less: Current portion of operating lease (505,407 ) Long-term portion of operating lease $ 2,559,204

NOTE 2 _ Summary of Significa_3

NOTE 2 — Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Product Information [Line Items]
Deferred Revenue, Current	$ 592,199		$ 592,199		$ 825,670
Deferred Costs and Other Assets	247,145		247,145		322,580
Revenues	5,081,398	$ 5,117,157	10,059,195	$ 9,429,335
Operating Lease, Right-of-Use Asset	2,853,267		2,853,267		3,088,087
Operating Lease, Liability	3,064,611		3,064,611		3,292,033
Service [Member]
Product Information [Line Items]
Deferred Revenue	34,400		$ 34,400
Service [Member]
Product Information [Line Items]
Revenues	$ 4,600	$ 5,400
Deferred Revenue					$ 32,700

Estimated Future Amortization o

Estimated Future Amortization of Intangible Assets (Details)	Jun. 30, 2024 USD ($)
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
2024 (July 1, 2024 to December 31, 2024)	$ 63,648
2025	127,296
2026	127,296
2027	127,296
2028	127,296
Thereafter	922,889
Total	$ 1,495,721

NOTE 3 _ Intangible Assets (Det

NOTE 3 — Intangible Assets (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Intangible Assets, Net (Excluding Goodwill)	$ 1,495,721	$ 1,495,721	$ 1,559,369
Amortization of Intangible Assets	$ 31,824	$ 63,648

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials and sub-assemblies	$ 5,850,099	$ 5,839,176
Finished goods	296,874	500,814
Inventory reserves	(960,943)	(930,943)
Inventory, net	$ 5,186,030	$ 5,409,047

NOTE 5 _ Bank Financing Arran_2

NOTE 5 — Bank Financing Arrangements (Details Narrative)	Feb. 01, 2023 USD ($)
Debt Disclosure [Abstract]
Notes Payable to Bank	$ 125,000

NOTE 6 _ Secured Subordinated_2

NOTE 6 — Secured Subordinated Convertible Notes Payable (Details Narrative) - USD ($)	3 Months Ended			6 Months Ended		36 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Sep. 30, 2020	Jun. 30, 2024	Jun. 30, 2023	May 26, 2026	Aug. 31, 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
Amortization of Debt Discount (Premium)	$ 1,463	$ 8,760		$ 2,925	$ 17,033
[custom:InterestOnConvertibleDebt]	$ 76,257	$ 59,636		$ 152,514	$ 102,429
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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	$ 5,081,398	$ 5,117,157	$ 10,059,195	$ 9,429,335
Total revenues	5,081,398	5,117,157	10,059,195	9,429,335
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	3,925,767	3,840,276	7,484,083	6,978,929
Total revenues	3,925,767	3,840,276	7,484,083	6,978,929
EMEA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	567,372	677,761	1,162,447	1,220,288
Total revenues	567,372	677,761	1,162,447	1,220,288
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	588,259	599,120	1,412,665	1,230,118
Total revenues	$ 588,259	$ 599,120	$ 1,412,665	$ 1,230,118

Customers who accounted for at

Customers who accounted for at least 10% of the Company's total revenues (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Blue Star [Member]
Revenue, Major Customer [Line Items]
Nippon Primex, Inc.	43	26	33	0.23
Ingram Micro [Member]
Revenue, Major Customer [Line Items]
Nippon Primex, Inc.	17	22	17	0.23
Nippon Primex [Member]
Revenue, Major Customer [Line Items]
Nippon Primex, Inc.			10

Customers who accounted for a_2

Customers who accounted for at least 10% of the Company's accounts receivable balances (Details)	Jun. 30, 2024	Dec. 31, 2023
Blue Star [Member]
Revenue, Major Customer [Line Items]
Nippon Primex, Inc.	58
Ingram Micro [Member]
Revenue, Major Customer [Line Items]
Nippon Primex, Inc.	12	20
Scan Source [Member]
Revenue, Major Customer [Line Items]
Nippon Primex, Inc.		13
Synnex Corporation [Member]
Revenue, Major Customer [Line Items]
Nippon Primex, Inc.		14
Nippon Primex [Member]
Revenue, Major Customer [Line Items]
Nippon Primex, Inc.		11

NOTE 7 _ Segment Information _4

NOTE 7 — Segment Information and Concentrations (Details Narrative) - Percentage of inventory purchases from top three suppliers	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
Revenue, Major Customer [Line Items]
Percentage of inventory purchases from top three suppliers	54%
Accounts payable balances with top three suppliers		28%	40%

NOTE 8 _ Stock-Based Compensa_2

NOTE 8 — Stock-Based Compensation (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 25, 2024
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures	613,936				75,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value							$ 1.1197
Stock Issued During Period, Shares, Restricted Stock Award, Gross					500,750	450,370
Common Stock, Other Shares, Outstanding	1,134,907				1,134,907
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested in Period, Fair Value					$ 307,087
Share-Based Payment Arrangement, Noncash Expense	$ 274,734	$ 272,700	$ 306,416	$ 295,833	$ 547,434	$ 602,249

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				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net loss	$ (607,631)	$ (557,415)	$ (512,816)	$ (993,420)	$ (1,165,046)	$ (1,506,236)
Denominator: Weighted average shares outstanding used in computing net income (loss) per share:
Basic	7,571,940		7,163,608		7,511,378	7,135,149
Diluted	7,571,940		7,163,608		7,511,378	7,135,149
Net loss per share applicable to common stockholders:
Basic	$ (0.08)		$ (0.06)		$ (0.16)	$ (0.18)
Diluted	$ (0.08)		$ (0.06)		$ (0.16)	$ (0.18)

NOTE 9 _ Net Loss Per Share (De

NOTE 9 — Net Loss Per Share (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,130,846	1,167,384	1,130,846	1,167,384
Convertible Note [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,152,934	2,152,934	2,152,934	2,152,934
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	50,000	50,000

NOTE 10 _ Income Taxes (Details

NOTE 10 — Income Taxes (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)		$ 166,000		$ 166,000

Future minimum lease payments u

Future minimum lease payments under the operating lease in effect as of September 30, 2022 (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Annual minimum payments:
2024 (July 2024 through December 31, 2024)	$ 322,181
2025	657,164
2026	676,750
2027	692,644
2028	713,423
2029	425,647
Total minimum payments	3,487,809
Less: Present value factor	(423,198)
Total operating lease liabilities	3,064,611	$ 3,292,033
Less: Current portion of operating lease	(505,407)	(483,161)
Long-term portion of operating lease	$ 2,559,204	$ 2,808,872

NOTE 11 _ Commitments and Con_4

NOTE 11 — Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Operating Lease, Right-of-Use Asset	$ 2,853,267		$ 2,853,267		$ 3,088,087
Operating Lease, Liability	3,064,611		3,064,611		$ 3,292,033
Operating Lease, Expense	161,681	$ 162,108	323,363	$ 324,217
Operating Lease, Payments	159,537	$ 155,348	315,967	$ 308,530
Purchase Obligation, to be Paid, Year One	$ 5,381,000		$ 5,381,000