SCKT increasing diluted share count increase is partly a function of the treasury method of accounting. As the stock price rises, diluted share count increases because fewer shares can hypothetically be bought back from the fixed proceeds of the conversion proceeds. SCKT share price is up about 60% YTD.
SCKT diluted share count will drop for Q3 if the avg share price drops from Q2 to Q3, which seems likely.
Option grants are another factor behind the rising diluted share count, but less significant than the rising share price.