SCHEDULE: Socket Mobile CEO Transfers $500K Convertible Note to Chairman

Kevin Mills, CEO of Socket Mobile, Inc., transferred a $500,000 convertible note to Charlie Bass, Chairman of the Board, for investment management purposes.

Summary

• Kevin Mills, the Reporting Person and CEO of Socket Mobile, Inc., filed Amendment No. 2 to his Schedule 13D.
• The amendment reports the disposition of a convertible note previously held by Mr. Mills.
• On October 13, 2025, Mr. Mills transferred a convertible note with a principal amount of $500,000.00 to Mr. Charlie Bass, the Chairman of the Board of Directors.
• The transfer was made for investment management purposes, with Mr. Bass paying $500,000.00 for the note.
• Following the transfer, Mr. Mills beneficially owns 591,626 shares of Common Stock, representing 7.07% of the 8,370,644 shares deemed outstanding for reporting purposes.
• Mr. Mills' remaining beneficial ownership includes 182,444 shares held by the Mills Trust, 119,863 shares issuable from a 2020 Note, 233,644 shares issuable from a 2025 Note, and 55,675 shares from stock options exercisable within 60 days.

Sentiment

Score: 5

Explanation: The filing is neutral. It is a disclosure of an insider transaction for investment management purposes and does not contain information that would inherently be considered positive or negative for the company's operational or financial performance.

Positives

• The transfer of the convertible note was executed at its principal amount of $500,000.00, indicating a fair valuation for the transaction between the parties.
• The transaction was explicitly stated to be for 'investment management purposes,' suggesting a strategic approach to managing personal holdings by the CEO.

Risks

• The convertible notes held by Mr. Mills (2020 Note and 2025 Note) and the transferred note are convertible into Common Stock at a future date, which could lead to dilution for existing shareholders upon conversion.

Future Outlook

The filing does not provide any forward-looking statements or guidance regarding the company's future performance or strategic direction. It focuses solely on a past insider transaction.

Management Comments

• Kevin Mills stated that the transfer of the convertible note was made for 'investment management purposes'.

Industry Context

This filing details an insider transaction involving the transfer of a convertible note between the CEO and Chairman of Socket Mobile, Inc. It does not provide information directly related to broader industry trends or competitive landscape, but rather reflects individual investment management decisions within the company's leadership.

Related Party Transactions

• Kevin Mills (CEO and Reporting Person) transferred a convertible note to Charlie Bass (Chairman of the Board), constituting a related party transaction between key management personnel.

Stakeholder Impact

• Shareholders: The transaction results in a minor shift in beneficial ownership among key insiders, but does not directly impact the company's operations, financial health, or overall shareholder value.
• Management: The transaction reflects individual investment management decisions by the CEO and Chairman regarding their personal holdings in the company.

Next Steps

• The transferred convertible note remains convertible into Common Stock of the Issuer at a future date, subject to its terms.

Key Dates

Recommendation

This filing details an insider transfer of a convertible note between the CEO and Chairman. While it provides transparency on beneficial ownership, it does not contain information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. It is a neutral event from an investment perspective, suggesting a 'hold' recommendation as there's no new fundamental information to alter an existing investment thesis.

Keywords

Socket Mobile, Kevin Mills, Charlie Bass, Convertible Note, Schedule 13D, Insider Transaction, Beneficial Ownership, Investment Management, Corporate Governance