Socket Mobile, Inc. (NASDAQ: SCKT), a provider of data capture and delivery solutions, announced the completion of a secured subordinated convertible note financing totaling $500,000 on March 27, 2026. The financing aims to enhance the company's working capital balances, which is crucial for its operational flexibility and growth initiatives. The notes have a three-year term, maturing on March 27, 2029, and carry an interest rate of 10% per annum, payable quarterly in cash. Notably, the principal amount of the notes is convertible into shares of the company's common stock at a conversion price of $0.90 per share, aligning with the closing price of the stock on the day prior to the financing. This financing is secured by the company's assets and is subordinated to existing debts with Western Alliance Bank, its senior lender. The participation of Charlie Bass, the Chairman of the Board, in this financing was approved by a special committee of disinterested directors, ensuring governance controls were maintained. The company plans to file a registration statement by June 30, 2026, to facilitate the resale of shares upon conversion of the notes. This strategic move is expected to provide Socket Mobile with the necessary liquidity to support its operations and growth strategies in the competitive data capture market.

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