Socket Mobile flagged as equity falls below $2.5M
Rhea-AI Filing Summary
SOCKET MOBILE, INC. (SCKT) disclosed that Nasdaq notified the company on August 24, 2026 that it no longer complies with Nasdaq Listing Rule 5550(b)(1), which requires stockholders’ equity of at least $2.5 million. The notice was based on reported stockholders’ equity of $2,382,624 as of June 30, 2026.
The company also does not meet the alternative continued listing standards requiring a market value of listed securities of at least $35 million or net income from continuing operations of at least $500,000 in the specified periods. SCKT has 45 days, until October 8, 2026, to submit a compliance plan, and Nasdaq may grant up to a 180-day extension if the plan is accepted. The company intends to submit such a plan. The notice has no immediate effect on the listing or trading of SCKT, which continues on the Nasdaq Capital Market.
Positive
- None.
Negative
- Nasdaq noncompliance: Stockholders’ equity of $2,382,624 is below the $2.5 million minimum, and SCKT also fails alternative standards for $35 million market value and $500,000 net income, creating a risk of delisting if compliance is not regained.
Filing Explained
If Nasdaq rejects the compliance plan, Socket Mobile may appeal to a Nasdaq Hearings Panel, while it evaluates actions to regain compliance; the filing gives no assurance that Nasdaq will accept the plan, grant an extension, or that compliance will be regained and maintained.
8-K Event Classification
Item 3.01 — Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
1 item
Item 3.01
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Securities
The company received a delisting notice, failed to satisfy a continued-listing rule or standard, or transferred its listing.
Key Figures
Stockholders’ equity: $2,382,624
Minimum Stockholders’ Equity Requirement: $2.5 million
Alternative market value standard: $35 million
+3 more
6 metrics
Stockholders’ equity
$2,382,624
Reported in Form 10-Q as of June 30, 2026, used by Nasdaq to assess compliance
Minimum Stockholders’ Equity Requirement
$2.5 million
Threshold under Nasdaq Listing Rule 5550(b)(1) for continued listing on Nasdaq Capital Market
Alternative market value standard
$35 million
Required market value of listed securities under Nasdaq Listing Rule 5550(b)(2)
Alternative net income standard
$500,000
Required net income from continuing operations under Nasdaq Listing Rule 5550(b)(3)
Compliance plan period
45 calendar days
Time given by Nasdaq from August 24, 2026 to submit a plan, ending October 8, 2026
Maximum potential extension
180 calendar days
Maximum extension Nasdaq may grant from the date of the notice if it accepts the plan
Key Terms
Minimum Stockholders' Equity Requirement, market value of listed securities, net income from continuing operations, Nasdaq Capital Market, +1 more
5 terms
Minimum Stockholders' Equity Requirement financial
"which requires companies ... to maintain stockholders' equity of at least $2.5 million"
market value of listed securities financial
"requires a market value of listed securities of at least $35 million"
Market value of listed securities is the market value of the shares a company has listed on an exchange, calculated as the closing bid price multiplied by the number of listed shares. Exchanges use it as a continued-listing standard, so a company that stays under the required minimum receives a deficiency notice and is given a set period to recover before facing delisting.
net income from continuing operations financial
"requires net income from continuing operations of at least $500,000"
Net income from continuing operations is the profit a company earns from its ongoing, day-to-day business after paying costs, interest and taxes, excluding results from businesses it has sold or closed and one-time gains or losses. Investors care because it shows the company's recurring earning power—like comparing a regular paycheck to a one-off bonus—and gives a clearer picture of sustainable profits used to value the business and judge management performance.
Nasdaq Capital Market market
"companies listed on The Nasdaq Capital Market to maintain stockholders' equity"
The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.
continued listing requirements regulatory
"regain or maintain compliance with Nasdaq's continued listing requirements"
Rules a stock exchange sets that a publicly traded company must keep meeting to stay listed and tradable on that exchange, such as minimum share price, market value, timely financial reports, and basic governance practices. Like a club’s membership rules, they matter because falling short can lead to warnings, penalties or removal from the exchange, which can cut liquidity, hurt share value and increase the risk for investors.
FAQ
Why did Socket Mobile (SCKT) receive a Nasdaq deficiency notice?
Socket Mobile received a Nasdaq notice because its stockholders’ equity was $2,382,624 as of June 30, 2026, below the $2.5 million minimum required by Nasdaq Listing Rule 5550(b)(1), and it also did not meet the alternative continued listing standards.
What Nasdaq listing rules is Socket Mobile (SCKT) currently not satisfying?
Socket Mobile is not in compliance with Nasdaq Listing Rule 5550(b)(1) requiring $2.5 million stockholders’ equity, nor with the alternatives: Rule 5550(b)(2) requiring $35 million market value of listed securities and Rule 5550(b)(3) requiring $500,000 in net income from continuing operations.
How long does Socket Mobile (SCKT) have to regain compliance with Nasdaq?
Socket Mobile has 45 calendar days, until October 8, 2026, to submit a plan to regain compliance. If Nasdaq accepts the plan, it may grant up to a 180-day extension from August 24, 2026 to allow the company to evidence compliance.
Does the Nasdaq notice immediately affect trading of Socket Mobile (SCKT) stock?
No. The company states the Nasdaq notice has no immediate effect on the listing or trading of its common stock. SCKT’s shares will continue to be listed and traded on the Nasdaq Capital Market under the symbol “SCKT” while it works on regaining compliance.
What actions does Socket Mobile (SCKT) plan to take in response to the Nasdaq notice?
Socket Mobile states it intends to timely submit a compliance plan to Nasdaq and is evaluating available actions to regain compliance with the Minimum Stockholders’ Equity Requirement. It notes there is no assurance Nasdaq will accept the plan or grant an extension.
AI-generated analysis. How Rhea-AI works. Not financial advice.
