Socket Mobile to Move Stock Quotation to OTCID After Failing Nasdaq’s $2.5 Million Requirement
Key Facts
Socket Mobile’s board approved the voluntary delisting of the company’s common stock from the Nasdaq Capital Market and the transfer of its quotation to OTCID, a market operated by OTC Markets Group, according to a company statement published via PR Newswire. The decision follows Nasdaq notifying the company that it fell below the minimum stockholders’ equity requirement of $2.5 million under continued listing rule 5550(b)(1). The company said OTC Markets confirmed in writing that it met the initial eligibility requirements for quotation on OTCID. The announcement sets out a process under which the stock will move from Nasdaq to the new market under the same ticker, SCKT. Socket Mobile says the move will not affect its business operations, customer obligations or product delivery schedules.
Nasdaq’s notice, which the company received on August 24, 2026, was based on stockholders’ equity of $2,382,624 as of June 30, 2026, according to the company’s filing with the U.S. Securities and Exchange Commission. The filing also said the company did not meet either of two alternative continued listing standards: a market value of listed securities of at least $35 million, or net income from continuing operations of at least $500,000 under the conditions specified in the rule. The company said in August that it had 45 calendar days, until October 8, to submit a compliance plan to Nasdaq. The exchange could have granted it an extension of up to 180 calendar days to demonstrate compliance if it accepted the plan. The voluntary move followed this process, which gave the company an opportunity to seek to remedy its listing status.
Socket Mobile said its board evaluated strategic alternatives, market value and operating costs before making the decision. The company considered legal, accounting and compliance expenses, as well as Nasdaq listing fees, no longer an optimal use of capital relative to the benefits of the listing. It says it expects the move to significantly reduce administrative and regulatory expenses and limit the diversion of management time to listing requirements. It added that this would allow it to redirect capital and resources toward core product development, operational execution and long-term business goals. This reflects the company’s rationale for the move; the statement did not specify financial savings or a figure for listing costs.
The move comes as the company’s financial performance has weakened: revenue in the second quarter of 2026 fell 25% year over year to $3.0 million, from $4.0 million in the same period of 2025. Revenue also declined 18% from the first quarter of 2026, when it was $3.7 million. Operating loss was $1,195,000 in the second quarter, compared with a loss of $677,000 a year earlier. The company’s revenue depends mainly on third-party mobile applications that use barcodes and integrate with its wireless scanners, contactless readers and writers. Its core application markets include specialty retail, field services, digital identity, transportation and manufacturing, according to the company’s description of its business.
The company expects to file a Form 25 with the U.S. Securities and Exchange Commission on or around November 9, 2026. Regular trading on Nasdaq is expected to cease at the close of the November 18 session. Socket Mobile expects the delisting to become effective around November 19, with quotation on OTCID to begin at the opening of trading on or around that date. The stock will retain the SCKT ticker when its quotation moves to the new market. The company said it intends to continue filing its periodic reports with the SEC, including Forms 10-K, 10-Q and 8-K. OTC Markets describes OTCID as a market for companies that provide ongoing financial disclosure and management certification and verify their company profile for investors, brokers and regulators.