Socket Mobile, Inc.

Welcome to the 2022 First Quarter Financial Results for Socket Mobile. My name is Darrell and I'll be your operator for today's call. Before we begin, I'd like to remind everybody that this call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include but are not limited to statements regarding mobile data collection and mobile data collection products, including details on timing, distribution, and market acceptance of products and statements predicting the trends, sales, and market conditions and opportunities in the markets in which Socket Mobile sells its products. Such statements involve risks and uncertainties, and actual results could differ material from the results anticipated in such forward-looking statements because of a number of factors, including but not limited to the risk that manufacturer of Socket's products may be delayed or not rolled out as predicted due to technological market or financial factors, including the availability of product components and necessary working capital. The risk that market acceptance and sales opportunities may not happen as anticipated. The risk that Socket's application partners and current distribution channels may choose not to distribute the products or may not be successful doing so. The risk of that acceptance of Socket's products in vertical application markets may not happen as anticipated, as well as other risks described in Socket's most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission. Socket does not undertake any obligation to update any such forward-looking statements. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. During the question and answer session, if you have a question, please press 01 on your touchtone phone. Please note that this conference is being recorded. On the call, we have Kevin Mills, Chief Executive Officer, Dave Holmes, Chief Business Officer, and Lin Zhao, Chief Financial Officer. I will now turn the call over to Kevin Mills. Kevin, you may begin.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us today. In Q1, our revenue increased by 31% to $6.3 million, over our revenue of $4.8 million in Q1 2021. Our gross margins were 49.7% compared to 52.1% in Q1 2021. Our margins were lower as we paid more for components and freight costs were much higher due to ongoing global supply issues. Our earnings per share were 4 cents compared to 3 cents in Q1 2021. Our Q1 results demonstrate we are off to a solid start in 2022. Our results were achieved in a very difficult supply environment for which our operations team deserve a great deal of credit. We expect the supply situation to remain difficult for most of 2022, and we will have to continue to work hard to overcome many challenges and issues so we can continue to support our many customers. In addition to our own supply constraints, we are also being impacted by supply issues outside our control like the availability of printers and cash drawers, which are required for mobile point-of-sale deployment. However, we do feel the supply issues are stabilizing, and we hope they are less impactful in the second half of the year. In Q1, we made good progress on the building blocks we are putting in place to enable Socket Mobile to better service the growing data capture opportunity we see ahead. As our hardware and software solutions need to be available before they can be incorporated into third-party applications, much of the work we are doing today will strengthen our revenue in 2023 and beyond and will enable us to continue to grow our business long-term. I'll now hand the call over to Dave Holmes, who will explain the opportunity and activities we see ahead, how we plan to service and support them. Dave.

Thank you, Kevin, and good afternoon, everyone. Today, I'd like to highlight a couple of the key milestones that we achieved in Q1 as we continue our journey of becoming a more comprehensive data capture company. We made significant strides with our Capture SDK software tools. We continue to provide the best-in-class development tools for our application partners, and we support all major development environments in the market today. In Q1, we announced Capture SDK for Flutter. Flutter is used by over 2 million developers and has quickly become one of the most popular cross-platform frameworks in the world, with over 40% of all software developers having used it. In Q1, we also launched the SocketCam C820. This is the first member of our new SocketCam software product family that turns any mobile device into a high-performance barcode scanner. We think this is a critical piece of the data capture journey. Today, Socket mobile scanners are primarily used in the performance sensitive portion of the data capture market where we have a commanding market share. That said, our application partners have end users with different data capture needs. They typically only add our capture SDK to support socket scanners when their customers run into performance issues. The addition of the will allow our development partners to bring socket scanning expertise and capabilities to a much wider audience allowing our app partners to serve all of their end users from the price sensitive to the performance sensitive with one integration. One integration with Capture SDK gives our app partners the ability to support all of Socket Mobile's products from the high-end dedicated hardware barcode scanners and NFC readers to free software-based scanning on your mobile device. Enabling the app for the entire journey allows developers to service a much wider audience eliminates the burden of lengthy and technical onboarding processes, and allows the end customers to select the best data capture tools for their particular situation. We will continue investing in the SocketCam family to offer data capture solutions that benefit our developer community and end users. We will have an advanced version available on a subscription basis later this year. We think this is a critical evolution in how Socket Mobile serves the entire data capture journey. Finally, we continue to invest in the digital ID and mobile driver's license space. In Q1, we held a joint webinar with our partner UL outlining how MDL is poised to enter the retail mobile point of sale space in the coming months for things like electronic age verification for restricted goods and the like. We feel this is a big opportunity and that Socket Mobile is well positioned to become a significant player in the MDL reader space. Our products already conform to the predominant ISO standards being adopted in most jurisdictions where MDLs are being deployed and tested. This will mark another evolution in our data capture journey. We will go from reading barcodes to capture data about products to reading barcodes and NFC credentials about people and identities. With that, I'll turn it over to Lynn for more details on our financial results. Lynn?