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Socket Mobile Says $4.4M Goodwill Impairment Charge Was Recorded In Q3 Results

NEWARK, Calif., Nov. 17, 2020 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ:SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, announced today that it has completed the annual

· 11/17/2020 06:32

NEWARK, Calif., Nov. 17, 2020 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ:SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, announced today that it has completed the annual goodwill impairment test required by generally accepted accounting principles. As a result of the lower stock price from the beginning of 2020 through the annual goodwill measurement date of September 30th, the Company concluded that an adjustment to its fair value was required.

The non-cash impairment charge totaled $4.4 million and was recorded in the Company's Q3 2020 results. The impairment charge does not affect the Company's cash position, cash flow from operating activities, bank debt covenants, and does not have any impact on future operations.

The revised financial tables reflecting the goodwill impairment can be found at the end of this press release. For detailed information, please refer to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 at https://www.sec.gov/Archives/edgar/data/944075/000094407520000048/q3-2020.htm