NOTE 8 — Stock-Based Compensation	6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]
NOTE 8 — Stock-Based Compensation	NOTE 8 — Stock-Based Compensation The Company recognizes the compensation cost in the financial statements for all stock-based awards to employees, including grants of stock options and restricted stock, based on the fair value of the awards as of the date that the awards are issued. Compensation cost for stock-based awards is recognized on a straight-line basis over the vesting period. The fair values of stock options are generally determined using a binomial lattice valuation model which incorporates assumptions about expected volatility, risk-free interest rate, dividend yield, and expected life. Ther Company granted 232,045 stock options granted during the six months ended June 30, 2026 compared to no stock options granted during the six months ended June 30, 2025. Restricted stock shares are issued to employees and consultants and are held in escrow by the Company until they vest, subject to the recipient remaining a service provider on each applicable vesting date. If a recipient's service or employment terminates before vesting, the unvested shares are forfeited and revert to the Company. Restricted stock may also be issued to directors, whose awards typically vest immediately. The shares are registered upon grant, allowing the holders to vote at the annual stockholders' meeting. Restricted stock is granted at no cost to the recipient, and the related compensation expense is recognized on a straight-line basis over the applicable vesting period. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) June 30, 2026 During the six months ended June 30, 2026 and 2025, the Company granted 76,286 and 643,793 shares of restricted stock, respectively. As of June 30, 2026, 737,194 shares of restricted stock were outstanding. Because the shares are subject to restrictions on sale or transfer until they vest, the Company does not include unvested restricted stock in shares issued and outstanding. During the six months ended June 30, 2026, 374,855 shares of restricted stock vested and were issued to employees and directors. The fair value of the vested shares is subject to applicable tax withholding. Total stock-based compensation expenses for the three and six months ended June 30, 2026 were $179,929 and $349,983, respectively, compared to expenses of $230,690 and $301,315 in the corresponding periods a year ago.

NOTE 8 — Stock-Based Compensation

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

NOTE 8 — Stock-Based Compensation

The Company recognizes the compensation cost in the financial statements for all stock-based awards to employees, including grants of stock options and restricted stock, based on the fair value of the awards as of the date that the awards are issued. Compensation cost for stock-based awards is recognized on a straight-line basis over the vesting period.

The fair values of stock options are generally determined using a binomial lattice valuation model which incorporates assumptions about expected volatility, risk-free interest rate, dividend yield, and expected life. Ther Company granted 232,045 stock options granted during the six months ended June 30, 2026 compared to no stock options granted during the six months ended June 30, 2025.

Restricted stock shares are issued to employees and consultants and are held in escrow by the Company until they vest, subject to the recipient remaining a service provider on each applicable vesting date. If a recipient's service or employment terminates before vesting, the unvested shares are forfeited and revert to the Company. Restricted stock may also be issued to directors, whose awards typically vest immediately. The shares are registered upon grant, allowing the holders to vote at the annual stockholders' meeting. Restricted stock is granted at no cost to the recipient, and the related compensation expense is recognized on a straight-line basis over the applicable vesting period.

SOCKET MOBILE, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)

June 30, 2026

During the six months ended June 30, 2026 and 2025, the Company granted 76,286 and 643,793 shares of restricted stock, respectively. As of June 30, 2026, 737,194 shares of restricted stock were outstanding. Because the shares are subject to restrictions on sale or transfer until they vest, the Company does not include unvested restricted stock in shares issued and outstanding. During the six months ended June 30, 2026, 374,855 shares of restricted stock vested and were issued to employees and directors. The fair value of the vested shares is subject to applicable tax withholding.

Total stock-based compensation expenses for the three and six months ended June 30, 2026 were $179,929 and $349,983, respectively, compared to expenses of $230,690 and $301,315 in the corresponding periods a year ago.