Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 8

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 8
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 1, 2025, the Company signed an agreement with a then-related party, in which a family member of the Company’s then-director,
Jeffrey Wang, holds an indirect interest of approximately 40%, to purchase parts and components to be used in the manufacturing of the
company’s products for the aggregate amount of approximately $1,000. The agreement was executed in the ordinary course of business.
During the nine months ended September 30, 2025, the Company purchased approximately $496 in raw materials under this agreement.

As
of July 18, 2025, Jeffrey Wang is no longer a director of the Company.

New
accounting pronouncements

Pronouncements
adopted in 2025

None.

Pronouncements
not yet adopted

In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This guidance
requires expanded annual income tax disclosures, including (1) consistent categories and greater disaggregation of information in the
rate reconciliation, and (2) income taxes paid disaggregated by jurisdiction. This guidance is effective for public entities for annual
periods beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 will be effective for the Company for the annual
period ending December 31, 2025. The Company is currently evaluating the impact the adoption of this guidance will have on its condensed
consolidated financial statements.

In
November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation
Disclosures (Topic 220): Disaggregation of Income Statement Expenses. This guidance requires additional disclosure of certain amounts
included in the expense captions presented on the Statement of Operations as well as disclosures about selling expenses. The ASU is effective
on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026, and interim
reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact the
adoption of this guidance will have on its condensed consolidated financial statements and related disclosures.

    8

NOTE
2 — Revenue Recognition

The
Company recognizes revenue primarily from the sale of products, including mobile phones, connected devices, and accessories, and the
majority of the Company’s contracts include only one performance obligation