Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 7

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 7
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 of the Company’s revenue attributable to hardware, control transfers when products are shipped. Revenue attributable to
professional services is recognized as the Company performs the professional services for the customer.

The
Company maintains agreements with certain customers that include provisions for product allowances under specific conditions. Accruals
for these agreements are based on available customer-specific data or, when such data is not available, relevant historical trends. These
costs are recognized as a reduction to revenue. Based on the terms of these agreements, any unused accruals are released and recognized
as revenue. For the three and six months ended June 30, 2025, the Company finalized agreements which resulted in the reduction of accruals
by approximately $219 and $5,490, respectively, which was recognized as revenue.

Disaggregation
of revenue

The
following table presents total net revenues disaggregated by product category:

 Schedule of Net Revenue Disaggregate by Product Category

    2025  
    2024  
    2025  
    2024 

    Three Months Ended  
    Six Months Ended 

    June 30,  
    June 30, 

    2025  
    2024  
    2025  
    2024 
  
    Smartphones 
    $4,836  
    $6,372  
    $15,868  
    $11,953 
  
    Feature Phones 
     3,836  
     4,711  
     8,646  
     8,059 
  
    Connected Solutions 
     2,248  
     —  
     2,937  
     — 
  
    White Label Products (ODM Model) (Related Party) 
     —  
     —  
     —  
     7,658 
  
    Accessories and Other 
     270  
     433  
     460  
     622 
  
    Total net revenues 
    $11,190  
    $11,516  
    $27,911  
    $28,292 

Shipping
and handling costs

The
Company has elected to account for shipping and handling activities related to contracts with customers as costs to fulfill the promise
to transfer the associated products.

    8

Contract
costs

Applying
the practical expedient, the Company recognizes the incremental costs