EX-99 3 ex99_1-pressrelease.htm Exhibit 99.1 Socket Mobile Strengthens Balance Sheet with a Secured Subordinated Convertible Note Financing of $1.5 Million FREMONT, Calif., June 2, 2025 - Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions for enhanced productivity, today announced completion of a secured subordinated convertible note financing of $1,500,000. The proceeds will be used to increase the Company’s working capital balances. The notes have a three-year term and will mature on May 30, 2028. The interest rate on the notes is 10%, payable quarterly in cash. The holder of each note may require the Company to repay the principal amount of the note plus accrued interest at any time after May 30, 2026. The notes are secured by the assets of the Company and are subordinated to the Company’s debts with Western Alliance Bank, its senior lender. The principal amount of each note is convertible at any time, at the option of the holder, into shares of the Company’s common stock at a conversion price of $1.07 per share, the closing price of the common stock on the Nasdaq Capital Market on May 30, 2025, and the most recent closing price a…
Open exhibit ↗Current Report · Items 1.01, 2.03, 3.02, 9.01 · 8-K
Socket Mobile, Inc.
SCKTNASDAQEQUITYCurrent
Entry into a Material Definitive Agreement · Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement · Unregistered Sales of Equity Securities
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant The information set forth in Item 1.01 of this Current Report on Form 8-K that relates to the issuance of the Notes and the resulting incurrence of debt is incorporated by reference into this Item 2.03. Item 3.02. Unregistered Sales of Equity Securities.…
Disclosure sections
Item 2.03Item 2.03 - Creation of Direct Financial Obligation
Item 2.03 Creation of a Direct Financial Obligation
or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
The information set forth in Item
1.01 of this Current Report on Form 8-K that relates to the issuance of the Notes and the resulting incurrence of debt is incorporated
by reference into this Item 2.03.
Item 3.02. Unregistered
Sales of Equity Securities.
The information set forth in Item
1.01 of this Current Report on Form 8-K that relates to the Notes is incorporated by reference into this Item 3.02.
The Common Stock issuable upon
conversion of the Notes is not currently registered under the Securities Act. The Notes, and the Common Stock issuable upon conversion
thereof, are being issued to accredited investors in reliance upon exemptions from registration under Section 4(2) of the Securities Act
and Rule 506 of Regulation D promulgated thereunder. These securities may not be offered or sold in the United States absent registration
under, or an exemption from, the Securities Act and any applicable state securities laws.
Item 3.02Item 3.02 - Unregistered Sales of Equity
Item 3.02. Unregistered
Sales of Equity Securities.
The information set forth in Item
1.01 of this Current Report on Form 8-K that relates to the Notes is incorporated by reference into this Item 3.02.
The Common Stock issuable upon
conversion of the Notes is not currently registered under the Securities Act. The Notes, and the Common Stock issuable upon conversion
thereof, are being issued to accredited investors in reliance upon exemptions from registration under Section 4(2) of the Securities Act
and Rule 506 of Regulation D promulgated thereunder. These securities may not be offered or sold in the United States absent registration
under, or an exemption from, the Securities Act and any applicable state securities laws.