Jan. 14 at 2:07 PM
$SCKT always nice seeing heavy insider ownership, lots of potential here if over
$1.10 w/vol
0.12 live short interest, CTB 1.36
OS: 7.98M
Float: 5.39M
Market Cap: ~
$8.7M
• Convertible Note Stack (Insider-Financed)
– Sep 2020:
$1.53M @
$1.46
– May 2023:
$1.60M @
$1.34
– Aug 2024:
$1.00M @
$0.95
– June 2025:
$1.50M @
$1.07
Entire stack is customary anti-dilution only, no resets, no variable-rate formulas, no death spirals. This is basically insider bridge financing.
• April 2021 Shelf (Tiny)
–
$10M capacity, ~
$2.9M remaining
– Baby-shelf constrained
– No usage since registration
Functionally irrelevant unless stock recovers >
$10–
$12 area.
Completed Dilutive Events (most relevant recent)
• May 30, 2025 – Convertible Note
– 1.40M shares @
$1.07
–
$1.50M raised
– Insider group (Bass, Parnell, Mills, Zhao, Wu, Glaenzer)
• Aug 21, 2024 – Convertible Note
– 1.05M shares @
$0.95
–
$1.00M raised
– Insider-funded
• May 30, 2023 – Convertible Note
– 1.19M shares @
$1.34
–
$1.60M raised
– Management-funded
This is not hedge fund financing, this is insider backstop capital extending runway.
Most Dangerous Instruments
• Convertible Note Overhang
– Total potential issuance: ~4.5M shares across four notes
– Strikes are around the market (0.95–1.46)
– No vulture structure, but mechanically dilutive if converted sequentially
• Thin Float
– Only ~5.4M tradeable shares
– Prone to volatility on any convert activity
Deal Memory (Price Levels That Matter)
$1.46 (2020 convert)
$1.34 (2023 convert)
$1.07 (2025 convert)
$0.95 (2024 convert)
Current trades ~
$1.08
insiders kept stepping in at progressively lower valuations to bridge operations.