SOCKET MOBILE, INC. Segments Disclosure

Segment Information

Operating segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, with separate financial information that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) to allocate resources and assess performance. The Company evaluated its operating segments under the management approach in accordance with ASC 280, Segment Reporting (ASC 280) and determined that it operates as a single reportable segment.

 

The CODM assesses financial performance based on revenue and operating income, while expenses are reviewed on a consolidated basis. Significant expense categories including cost of goods sold, selling, general and administrative expenses, and research and development costs, are reported in the consolidated statements of operations.

 

The Company distributes its products in the United States and foreign countries primarily through distributors and resellers. It markets its products mainly through app providers whose applications are designed to work with Company’s products.

 

Revenues by geographic region for the years ended December 31, 2025 and 2024, are as follows:

 

		Years Ended December 31,
Revenues: (in thousands)		2025				2024
United States		$	11,131			$	13,863
Europe			2,086				2,318
Asia and rest of world			1,861				2,582
Total		$	15,078			$	18,763

 

 

Export revenues are attributable to countries based on the location of the Company’s customers. The Company does not hold long-lived assets in foreign locations.