Socket Mobile to Voluntarily Delist From Nasdaq, Move to OTCID Market

What happened

Socket Mobile, Inc. (Nasdaq: SCKT), a Fremont, California-based maker of data capture products such as barcode scanners that connect to mobile devices, delivered written notice to Nasdaq on October 27, 2026 of its intention to voluntarily withdraw its common stock from listing on the Nasdaq Capital Market, according to a Form 8-K filed that day.

The company also intends to end registration of the common stock under Section 12(b) of the Securities Exchange Act of 1934 and move quotation of its shares to the OTCID Market, operated by OTC Markets Group. Socket Mobile said it expects the stock to trade there under its current ticker, SCKT.

The filing states that the company received a Nasdaq notification on August 24, 2026 indicating it no longer met the minimum stockholders' equity requirement of $2,500,000 under Nasdaq Listing Rule 5550(b)(1).

Why the company says it is leaving

According to the 8-K, the Board of Directors authorized the withdrawal after evaluating the company's strategic alternatives, its market capitalization, and what the filing describes as the substantial ongoing legal, accounting, compliance and listing costs of maintaining a Nasdaq listing.

The Board determined that moving to the OTCID Market would let Socket Mobile significantly reduce administrative and regulatory overhead, conserve cash, and redirect resources toward core product development and customer execution, the filing says.

The company said the transition will not affect day-to-day operations, customer commitments or product delivery schedules, and that it intends to keep filing periodic reports with the SEC, including Forms 10-K, 10-Q and 8-K.

The schedule

The filing lays out the following timeline: public notice was issued October 27, 2026, alongside the notice to Nasdaq, through a press release, a posting on the company's website and a submission to Nasdaq MarketWatch.

Socket Mobile intends to file a Form 25 with the SEC on or about November 9, 2026, at least ten calendar days after notifying Nasdaq. Delisting is expected to become effective ten calendar days after that filing, on or about November 19, 2026. Regular trading on Nasdaq is expected to cease at the close of regular market hours on November 18, 2026.

Quotation on the OTCID Market under SCKT is expected to begin at market open on or about November 19, 2026. The company said it has received written confirmation from OTC Markets that it meets the onboarding qualifications for quotation there.

What this means

A Form 8-K is the report a US public company must file with the SEC to disclose material events to investors, typically within four business days. The item numbers at the top of the filing say what kind of event it covers. Item 3.01 is specifically for notice of delisting or a failure to meet a continued listing rule. Item 7.01, Regulation FD, is used to disclose information the company has given out selectively, here the press release, so that all investors see it at the same time.

Nasdaq's continued listing rules set minimum standards a company must keep meeting to stay on the exchange. Rule 5550(b)(1), cited in this filing, requires at least $2,500,000 in stockholders' equity, which is broadly the company's assets minus its liabilities, or book value. When a company falls below such a threshold, Nasdaq notifies it, and the company can either submit a plan to regain compliance or, as here, choose to leave.

This is a voluntary delisting of common stock, not a bond repayment. A Form 25 is the formal notification that removes a security from an exchange listing and from registration under Section 12(b). The company files it, and the delisting becomes effective ten days later. Shareholders do not lose their shares in a delisting; the shares simply stop trading on Nasdaq and begin trading on another venue. The OTCID Market is an over-the-counter quotation venue for smaller companies, with lighter listing standards than Nasdaq.

The price data show the stock closed at $0.52 on the event date, up 6.12% from the prior close of $0.49. The filing does not address the price move, and nothing in the provided sources explains it.

The filing does not say whether Socket Mobile considered a plan to regain Nasdaq compliance before deciding to leave, or what its stockholders' equity was at the time of the August notification. Those details are not established by the sources provided.