Socket Mobile Announces $0.5 Million Secured Subordinated Convertible Note Financing

Socket Mobile (NASDAQ: SCKT) completed a secured subordinated convertible note financing of $0.5 million on March 30, 2026 to boost working capital.

Rhea-AI Summary

Socket Mobile (NASDAQ: SCKT) completed a secured subordinated convertible note financing of $0.5 million on March 30, 2026 to boost working capital. The notes mature March 27, 2029, carry a 10% cash interest rate payable quarterly, and are convertible at $0.90 per share.

Holders may demand repayment after March 27, 2027. The notes are secured by company assets and are subordinated to the company’s debt with Western Alliance Bank. Related party Charlie Bass, the board chairman, participated in the financing. Additional details will appear in the company’s Form 8-K.

Positive

• Secured $0.5M financing to increase working capital
• Notes pay 10% cash interest, providing predictable near-term financing cost

Negative

• Notes are subordinated to Western Alliance Bank senior debt
• Conversion at $0.90 per share may cause shareholder dilution if converted

Argus Mar 30 session

-3.25% close to close Open Argus

Details

News Market Reaction – SCKT

In the Mar 30 session, SCKT declined 3.25%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a $0.5 million secured subordinated convertible note with a three-year ter...

Analysis

This announcement details a $0.5 million secured subordinated convertible note with a three-year term, 10% cash interest and a $0.90 conversion price, providing additional working capital. It follows earlier 2025 results that showed revenue pressure alongside continued product launches. Investors may track upcoming Form 8-K disclosures, balance sheet changes, related-party participation, and how future operating performance supports servicing and potential conversion of this debt.

Key Figures

Convertible note size: $0.5 million Note term: 3 years Interest rate: 10% +3 more

Convertible note size

$0.5 million

Secured subordinated convertible note financing

Note term

3 years

Matures on March 27, 2029

Interest rate

10%

Payable quarterly in cash

Early repayment start

March 27, 2027

Holder can require principal plus interest repayment after this date

Conversion price

$0.90 per share

Based on March 27, 2026 Nasdaq Capital Market close

Maturity date

March 27, 2029

Convertible notes maturity

Historical Context

5 past events · Latest: Mar 06

5 events

1. Mar 06

   Product compatibility

   24h Move

   +9.3%

   Announced industrial scanning solutions compatible with Apple iPhone 17e.

2. Feb 19

   Earnings release

   24h Move

   -12.2%

   Reported Q4 and 2025 results with revenue down and operating loss.

3. Feb 12

   Earnings call notice

   24h Move

   -0.9%

   Announced upcoming Q4 and full-year 2025 results release and call.

4. Jan 12

   Product launch

   24h Move

   +2.9%

   Launched SocketScan S721 Bluetooth scanner targeting Square iOS apps.

5. Jan 07

   Product launch

   24h Move

   +0.0%

   Introduced DuraScan Terminal line for Apple iPhone 16e.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

secured subordinated convertible note, working capital, conversion price, Form 8-K

4 terms

secured subordinated convertible note financial

"announced completion of a secured subordinated convertible note financing of $0.5 million."

A secured subordinated convertible note is a loan that a company borrows with specific assets pledged as collateral, ranks below higher-priority debts for repayment, and gives the lender the option to convert the loan into company shares. For investors this matters because the collateral can reduce loss risk, the subordination means repayment is less likely if the company struggles, and conversion creates potential equity upside but also possible share dilution.

working capital financial

"The proceeds will be used to increase the Company's working capital balances."

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

conversion price financial

"into shares of the Company's common stock at a conversion price of $0.90 per share"

The conversion price is the fixed price at which a convertible security, like a bond or preferred stock, can be exchanged for shares of common stock. It acts like a set rate that determines how many shares an investor can receive if they choose to convert their investment. This helps investors understand the value and potential benefits of converting their securities into company shares.

Form 8-K regulatory

"Additional details regarding the financing will be provided in Form 8-K to be filed"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FREMONT, Calif., March 30, 2026 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions for enhanced productivity, today announced completion of a secured subordinated convertible note financing of $0.5 million. The proceeds will be used to increase the Company's working capital balances.

The notes have a three-year term and will mature on March 27, 2029. The interest rate on the notes is 10%, payable quarterly in cash. The holder of each note may require the Company to repay the principal amount of the note plus accrued interest at any time after March 27, 2027. The notes are secured by the assets of the Company and are subordinated to the Company's debts with Western Alliance Bank, its senior lender. The principal amount of each note is convertible at any time, at the option of the holder, into shares of the Company's common stock at a conversion price of $0.90 per share, the closing price of the common stock on the Nasdaq Capital Market on March 27, 2026, and the most recent closing price as of the closing of the financing. 

The related party participating in the financing is Charlie Bass, Chairman of the Company's Board of Directors.

Additional details regarding the financing will be provided in Form 8-K to be filed by the Company with the SEC.

About Socket Mobile:
Socket Mobile is a leading provider of data capture and delivery solutions for enhanced productivity in workforce mobilization. Socket Mobile's revenue is primarily driven by the deployment of third-party barcode-enabled mobile applications that integrate Socket Mobile's cordless barcode scanners and contactless readers/writers. Mobile Applications servicing the specialty retailer, field service, digital ID, transportation, and manufacturing markets are the primary revenue drivers. Socket Mobile has a network of thousands of developers who use its software developer tools to add sophisticated data capture to their mobile applications. Socket Mobile is headquartered in Fremont, Calif., and can be reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on LinkedIn, X, and keep up with our latest News and Updates.

Socket Investor Contact:
Lynn Zhao
Chief Financial Officer
510-933-3016
lynn@socketmobile.com 

Socket is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.

© 2026, Socket Mobile, Inc. All rights reserved.

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SOURCE Socket Mobile, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Socket Mobile (SCKT) announce on March 30, 2026 about new financing?

According to the company, Socket Mobile completed a secured subordinated convertible note financing of $0.5 million. The proceeds will be used to increase working capital and further details will be filed on Form 8-K.

What are the key terms of the SCKT convertible notes maturing March 27, 2029?

According to the company, the notes have a three-year term, mature March 27, 2029, and carry a 10% cash interest rate payable quarterly. Holders may require repayment after March 27, 2027.

How does the conversion feature on SCKT notes work and what is the conversion price?

According to the company, each note is convertible at holder option into common stock at a conversion price of $0.90 per share, based on the March 27, 2026 closing price and the most recent closing price at financing close.

Who participated in Socket Mobile's $0.5M financing and is there a related-party disclosure?

According to the company, related party Charlie Bass, Chairman of the board, participated in the financing. The company disclosed this related-party participation and will provide additional details in its Form 8-K filing.

What are the creditor and security implications of the SCKT subordinated notes?

According to the company, the notes are secured by company assets but are subordinated to the company’s debts with Western Alliance Bank, meaning senior lender claims remain ahead of these note holders.