Corporate Overview Presentation. February 15, 2018

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1 Corporate Overview Presentation February 15,

2 Forward Looking Statements During the course of this presentation, we may make forward-looking statements that involve risks and uncertainties, including without limitation risks and uncertainties relating to the company's financial prospects and projections, the company's ability to market its products and increase its business in the Mobile markets. These forward-looking statements speak only as of the date hereof and are based upon the information currently available to the company. Such information is subject to change, and the company will not necessarily inform you of such changes. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are new and changing technologies, customer acceptance of those technologies, fluctuations or cancellations in orders from distribution customers, new and continuing adverse economic conditions, availability of working capital and the company's ability to compete effectively with other products. These and other factors could cause actual results to differ materially from those presented in any forward-looking statement and are discussed in the company's filings with the Securities and Exchange Commission including its recent filings on Forms 10-K and10-q. 2

3 We Deliver Data Capture Solutions For Mobile Businesses Our Primary Markets: Retail, Industrial & Manufacturing, Transportation & Logistics, Health Care, and Commercial Services 3

4 Mobile Apps are changing the world Workforce Mobilization Driven by new Mobile Devices and Applications Mobile Applications are servicing business using smartphones and tablets Cost to distribute the Mobile applications is very low or free App Store model is reliable, robust and understood App Store model also supports updates and improvements Hundreds of millions of smartphones and tablets are deployed by businesses today Mobile applications need minimum training and are cost effective The SMB Retail Point of Sale (POS) example Historically, small shops used a Casio Cash Register and Excel to run their business Today, an POS Application provides a tablet Cash Register, epayment and Business Analytics Cost is between $49-$99 per month depending on complexity The VC community have invested close to $1 Billion in funding application based POS companies 4

5 The Application is the primary purchase Application selection is a driving function Consumers select the mobile Applications that meet their needs Application selection determines Apple, Android, Windows hardware platform Consumers who select a Socket Mobile enabled Application Purchase from a choice of Socket Mobile barcode scanners 900 Mobile Applications have selected Socket Mobile s advanced scanning solutions Socket Mobile s integrated advanced barcode scanning software does all the work Scans, edits and delivers the barcoded information as instructed by the application. Accurate, high-speed barcode scanning in multiple environments it just works. Application Providers have their Own Sales Forces reaching new users Socket Mobile is designed-in and a recommended ingredient in their solution We are selected based on our superior SDK supporting a wide range of smartphones & tablets Our sales happen AFTER or as part of the purchase of the Application 5

6 Many Developer Websites Offer our Products Examples : Square & ShopKeep - POS Application Providers 6

7 The Underserved SMB Retailer is Driving POS Growth Socket Mobile has to enable its Developers and their Applications focus POS is a significant focus of our developers. We are designed into 100+ POS Applications. Market is very large and App Providers are well funded POS is a very leverageable Application Variations of the same problem Many companies can use the same software POS drove more than 80% of Scanner sales in Has greater potential in while other mobile markets are emerging for 2018 and beyond Retail Mobility is just the first part of the story The Mobile Workforce Data Capture Market is growing but is a more complex and slower moving market 7

8 Socket Developers Market Focus in % 4 5% 3 19% 1 53% 2 10% Developer Focus in 2017 expanded from mostly retail. Markets expected to drive revenue in

9 The Mobile Scanning Market is Growing in Socket s Direction Mobile Scanning (Millions of Dollars) $ $ Tablets and smartphones are expanding the addressable market beyond traditional scanning use cases. $ $ $ $ Previously underserved markets like SMB Retail s use of application driven POS have emerged out of Retail. Smartphones and tablets are familiar to employees Less training, more leverage, and lower costs Compounded annual growth rate of 7.2% Source: VDC Research 9

10 Socket Mobile dominates the Companion Scanning Market Total WW Market 2017 Companion Scanning Market Americas Socket Mobile Others Attachable Scanning Market Americas Companion Scanning Attachable Scanning Ring Scanning Socket Mobile Others 10

11 Socket s Software Developer Kit (SDK) Advanced data capture capabilities are enabled by the App Developer with our SDK The Socket SDK is Universal. Allowing App Developers to use of ANY of Socket s Data Capture products with one development effort. The Socket SDK is Developer Friendly. Allowing App Developers to enable advanced data capture on Apple (ios), Android and Windows smartphones and tablets. The Software SDK is Powerful. Allowing App Developers to optimize the scanning process, advanced performance, reduce user errors and fully control of their user experience. Most Bluetooth Scanners support Keyboard Emulation Mode, as does Socket Mobile. Scanners in this mode limit the scanning experience in the following ways: No control over the scanning input process, its scans to wherever the cursor is currently located. No opportunity to modify, edit, or manipulate the scanned data. A real problem with 2D barcodes Significantly slower especially when scanning complex barcodes Resulting in poorer productivity, more errors, and a poorer end-user App experience 11

12 Meet the Family SocketScan Colorful Series S700: 1D Imager S730: 1D Laser S740: 2D Imager 12

13 Meet the Family DuraScan Ruggedized Series D600: NFC D700: 1D Imager D730: 1D Laser D740/50: 2D Imager RFID/NFC 13

14 Meet the Family SocketScan Attachable Series DuraCase: S800 1D Imager S850 2D Imager Smart Devices: ipod Touch Samsung J3/J5/S7 Apple iphone: coming 14

15 Product Expansion RFID and Near Field Communications (NFC) Data Capture goes beyond barcode scanners New product (D600) will read and write to RFID tags including NFC Widespread availability today of Near Field Communications in Smartphones will encourage consumer adoption and use, while business will leverage dedicated NFC readers for performance. Socket Mobile s SDK will support RFID and NFC products and enable developers to modify data, control data placement, and provide full control of their user experience. Examples of RFID and NFC usage: Asset Identification and Tracking Personal ID at Hospitality Events Brand and Label Authentication Manufacturing Process Controls 15

16 Annual Operating Results Continue Positive Trends ($ Millions) Cordless = Dark Blue $25 $20 $15 $10 $5 Margin Contribution Operating Expense Revenue $ % $6.4 $6.3 (40%) $ % $7.4 (44%) $6.5 By Year $ % $8.9 (49%) $6.8 $20.8 $10.4 (50.0%) $ % 96% $7.9 $11.4 (53.5%) $9.0 $0 -$5 Operating Income ($Mil) 2013 EPS: $(0.13) $(0.1) 2014 EPS: $ EPS: $0.33 $0.9 $ EPS: $0.41* $ EPS: $0.22* $2.4 *Before one time setup of deferred taxes in 2016 and one time deferred tax rate adjustment in

17 Why Socket Mobile? Nasdaq: SCKT Commitment: Socket Mobile is committed to providing scanning to the Mobile Application market. It represents more than 90% of revenue in 2017, up from 42% of our revenue in Cordless scanning revenue grew 328% in 4 years. Support: Socket Mobile will continue to support and grow through its thousands of world wide registered application developers. We will support these developers better than anyone else can through a singular commitment to mobile devices, platforms, and applications. Markets: Socket Mobile s Data Capture opportunities are growing in manufacturing, transportation, mobile point of sale and other mobile markets as business increase their dependency on mobile application. Growth in the international developer base is also accelerating. Software: Socket Mobile s excellent software tools coupled with the right data capture products are expanding these emerging markets. 80% of Socket s consumers over the last few years have never owned a scanner before. Distribution: Socket Mobile has established a very efficient world wide distribution and a highly leveraged business model. 99% of data capture sales are online successfully servicing individual sales while distribution easily support corporate deployments. 17

18 Thank You! 18

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