Socket Mobile, Inc.

Welcome to SAC and Mobile Inc's Q1 2024 earnings call. My name is Paul and I will be your operator for today's call. Before we begin, I'd like to remind everyone that this conference 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 and 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 market in which Socket Mobile sells its products. Such statements involve risks and uncertainties, and actual results could differ materially 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 sockets application partners and current distribution channels may choose not to distribute the products or may not be successful in doing so. The risk that acceptance of sockets 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. On this call with me today are 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. Mr. Mills, you may begin, sir.

Thank you, Paul. Good afternoon, everyone, and thank you for joining us today. Our Q1 revenue was $5 million, a 15% increase compared to $4.3 million from Q1 2023. We had an operating loss of half a million dollars in Q1, an improvement compared to the $1 million operating loss we reported in Q1 2023. In Q1 2024, we were EBITDA positive. Overall, Q1 was in line with our expectations, and we were pleased with our operational performance during the quarter as we maintained our focus on promoting and demonstrating our newer products. Most of these newer products were launched in late 2023 and early 2024, and initial deliveries were made in Q1. As you know, after we make initial deliveries, our products are then subjected to a series of end user evaluations before a deployment decision is reached. Initial feedback has been positive. and we expect to see the first deployments in the second half of the year and expect these deployments to make a meaningful contribution to our revenue. I would now like to turn the call over to Dave Holmes, who will provide a more detailed update on our progress. Dave.

Thank you, Kevin, and good afternoon, everyone. As Kevin said, today I'd like to talk about the progress we are making with our newer products and strategic initiatives. and highlight a few of the significant milestones that we achieved in Q1. Our investments in innovation are helping transform Socket Mobile into a more comprehensive data capture company. We've made significant progress in promoting our camera-based scanning technology. Our early adopter app partners have integrated Socket Cam into their platforms, enabling their customers to scan barcodes directly into their apps using the mobile device camera. Now that we have fully released the pro version of Socket Cam, on all development platforms, we are advocating for the adoption of the advanced SocketCam C860. The free and subscription versions of SocketCam enable our app partners to serve all of their diverse end users needs, from the most cost conscious with our free SocketCam C820 to a more feature rich data capture requirements with our subscription based SocketCam C860. And the most intense users can still use use our array of handheld hardware scanners. All of these are made available to our AppPartners ecosystem with a simple, single, free integration of our Capture SDK. As adoption builds and end users upgrade to our SocketCam C860, this will generate recurring revenue streams for us each month. We also see traction with our XtremeScan military-grade industrial scanners. as well as our Durascan wearable products. These products were built for the industrial barcode scanning market, facilitating the use of iPhones and iOS applications in rugged work environments. These product families represent a significant milestone in our commitment to delivering high-quality data capture solutions for our customers in industrial, manufacturing, warehousing, energy, and airports. Extreme Scan is designed to enable iPhones to withstand harsh industrial conditions and offer robust scanning capabilities with the ultimate durability. It opens the door into new customer segments in the massive ruggedized computing space that demand the ultimate performance in the most difficult environments. In Q1, our initial customers were putting these products through rigorous testing, and reports back have been extremely encouraging. We've passed some of the most intense testing with flying colors, and expect to move into deployments which will begin to contribute to our revenue in Q3 and beyond. Our new Xtreme products will extend our reach and diversify our customer base. SocketCam will provide SocketMobile with a recurring revenue stream each month. And ultimately, these initiatives will make us a more diversified, sustainable, and less dependent on retail. We're becoming a more complete hardware and software data capture company. And with that, I'll turn it over to Lynn for more details on our financial results. Lynn?