Socket Mobile (SCKT) risk factors, FY2025 10-K

Socket Mobile's FY2025 10-K, filed Mar 30, 2026, lists 26 risk factors. Against the prior year's 27: 1 dropped, 2 substantially reworded.

Risk factors listed
260 groups
New this year
0vs 27 last year
Dropped
1since the prior 10-K
Substantially reworded
2of those kept
Section length
5k wordsItem 1A

What the changes say

  • Socket Mobile removed its deferred tax asset risk while updating share count and stock price range figures.

What changed since the prior 10-K

Dropped

  • Dropped

    Deferred tax assets comprise a significant portion of our assets and are dependent upon future tax profitability to realize the benefits

Reworded

  • 26% rewritten

    The sale of a substantial number of shares of our common stock could cause the market price of our common stock to decline

    Updated common stock outstanding to 8,222,958 shares as of March 25, 2026.

  • 20% rewritten

    Volatility in the trading price of our common stock could negatively impact the price of our common stock

    Updated the stock price fluctuation range to a high of $1.72 and a low of $0.82 through March 25, 2026.

All 26 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01We may not return to profitability
  2. 02We may require additional capital in the future, but that capital may not be available on reasonable terms, if at all, or on terms that would not cause substantial dilution to investors’ stock holdings
  3. 03In order to maintain the availability of our bank lines of credit we must remain in compliance with the covenants as specified under the terms of the credit agreements and the bank may exercise discretion in making advances to us
  4. 04If app providers are not successful in their efforts to develop, market and sell the applications into which our software and products are incorporated, we may not achieve our sales projections
  5. 05A deterioration in global economic conditions may have adverse impacts on our business and financial condition in ways that we currently cannot predict and may limit our ability to raise additional funds
  6. 06Failure to maintain effective internal controls could have a material adverse effect on our business, operating results, and stock price
  7. 07Despite security protections, our business records and information could be hacked by unauthorized personnel
  8. 08We may be unable to manufacture our products because we are dependent on a limited number of qualified suppliers for our components
  9. 09If we fail to develop and introduce new products rapidly and successfully, we will not be able to compete effectively, and our ability to generate sufficient revenues will be negatively affected
  10. 10We may not be able to collect receivables from customers who experience financial difficulties
  11. 11We could face increased competition in the future, which would adversely affect our financial performance
  12. 12If we do not correctly anticipate demand for our products, our operating results will suffer
  13. 13We rely primarily on distributors to distribute our products, and our sales would suffer if any of these distributors stopped distributing our products effectively
  14. 14We depend on alliances and other business relationships with third parties, and a disruption in these relationships would hinder our ability to develop and sell our products
  15. 15Our intellectual property and proprietary rights may be insufficient to protect our competitive position
  16. 16We may become subject to claims of intellectual property rights infringement, which could result in substantial liability
  17. 17New industry standards may require us to redesign our products, which could substantially increase our operating expenses
  18. 18Undetected flaws and defects in our products may disrupt product sales and result in expensive and time-consuming remedial action
  19. 19The loss of one or more of our senior personnel could harm our existing business
  20. 20The expensing of stock options and restricted stocks will continue to reduce our operating results such that we may find it necessary to change our business practices to attract and retain employees
  21. 21If we are unable to attract and retain highly skilled sales and marketing and product development personnel, our ability to develop and market new products and product enhancements will be adversely affected
  22. 22Our operating results could be harmed by economic, political, regulatory and other risks associated with export sales
  23. 23Our facilities or operations could be adversely affected by events outside our control, such as natural disasters or health epidemics
  24. 24Our quarterly operating results may fluctuate in future periods, which could cause our stock price to decline
  25. 25The sale of a substantial number of shares of our common stock could cause the market price of our common stock to decline26% rewritten
  26. 26Volatility in the trading price of our common stock could negatively impact the price of our common stock20% rewritten

Other Socket Mobile 10-Ks

  • FY2024 10-K risk factors
    27 risks

    Socket Mobile depends heavily on third-party app providers to drive sales of its data capture products.

    Filed Mar 25, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.