Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 13

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 13
---
 31, 2024.

The
following table presents the components of the Company’s prepaid expenses and other current assets:

Schedule of Prepaid Expenses and Other Current Assets

    September 30,  2025  
    December 31, 2024 
  
    Deposits for inventory 
    $2,186  
    $2,697 
  
    Other 
     1,653  
     1,865 
  
    Prepaid expenses and
    other current assets 
    $3,839  
    $4,562 

The
following table presents the components of the Company’s accrued liabilities:

Schedule of Accrued Expenses

    September 30, 2025  
    December 31, 2024 
  
    Customer allowances 
    $4,171  
    $11,421 
  
    Contract fulfillment liabilities 
     2,070  
     2,939 
  
    Inventory received, not billed 
     3,019  
     1,563 
  
    Employee-related liabilities 
     859  
     2,247 
  
    Other 
     3,512  
     2,722 
  
    Accrued liabilities 
    $13,631  
    $20,892 

LS
Receivables Financing Agreement

On
September 23, 2024, the Company entered into an invoice purchase agreement (the “LS Receivables Financing Agreement”) with
LS DE LLC (“LS”), pursuant to which LS will provide receivables factoring to the Company. Pursuant to the terms of the LS
Receivables Financing Agreement, LS will advance 80% of the face value of the receivables being sold by the Company, up to a maximum
of $2,500 of eligible customer invoices from the Company. In consideration of the advances, LS is entitled to receive (i) an invoice
purchase fee equal to 0.20% of the face amount of each purchased invoice payable at the time of the purchase and (ii) a daily funds usage
fee equal to 0.0388%, payable monthly in arrears on the last day of each month. Under the agreement, the Company must repurchase any
invoices that LS deems to be uncollectible or no longer qualify as an Eligible Account, as defined in the LS Receivables Financing Agreement.
The Company is accounting for this transaction as a secured borrowing