MeritValue

SOCKET MOBILE, INC.

SCKTdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'pretaxIncome'

The thesis, from the filings

SOCKET MOBILE, INC. earns about -67% on equity, and has bought back 11% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$23.2M1$21.2M2$17M3$18.8M4$15.1M4
Net income$4.47M5$86,9316−$1.92M7−$2.24M8−$14.4M8
Operating cash flow$2.14M9−$111,41510$48,56211−$521,48512−$1.25M12
Capital expenditure$691,77113$1.18M14$2.16M15$788,32516$537,13516
Free cash flow (derived)$1.45M9−$1.29M10−$2.12M11−$1.31M12−$1.79M12
Total debt—————
Cash & equivalents$6.1M17$3.62M18$2.83M19$2.49M20$2.03M20
Diluted shares8.9M7.5M7.2M7.6M7.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$5.4
your share of equity
Profit it earned you last year
−$18.14
Free cash flow it threw off
−$2.25
Debt you’d be carrying
—

10 shares is a claim on $5.4 of net worth that earned you −$18.14 and generated −$2.25 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-67% avg · 5y
FY21 22%FY22 0%FY23 -10%FY24 -12%FY25 -336%

It earned an average -67% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−11% shares · 5y

Share count is down 11% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000944075-23-000025 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000944075-24-000015 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0000944075-25-000013 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0000944075-26-000027 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0000944075-23-000025 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0000944075-24-000015 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0000944075-25-000013 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0000944075-26-000027 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0000944075-23-000025 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0000944075-24-000015 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0000944075-25-000013 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0000944075-26-000027 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0000944075-23-000025 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0000944075-24-000015 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0000944075-25-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0000944075-26-000027 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0000944075-23-000025 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000944075-24-000015 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000944075-25-000013 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0000944075-26-000027 (CashAndCashEquivalentsAtCarryingValue)