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

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 10
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, which are directly
observable. The standalone selling price of the professional services are mostly based on time and materials. The Company determines
its estimates of variable consideration based on historical collection experience with similar payor classes, aged accounts receivable
by payor class, terms of payment agreements, correspondence from payors related to revenue audits or reviews, its historical settlement
activity of audited and reviewed claims and current economic conditions using the portfolio approach. Revenue is recognized only to the
extent that it is probable that a significant reversal of the cumulative amount recognized will not occur in future periods.

Revenue
is then recognized for each distinct performance obligation as control is transferred to the customer. Revenue attributable to hardware
is recognized at the time control of the product transfers to the customer. Control is generally transferred when the Company has a present
right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers.
For most 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 nine months ended September 30, 2025, the Company finalized agreements which resulted in the reduction of accruals
by approximately $5,429, 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  
    Nine Months Ended 

    September 30,  
    September 30, 

    2025  
    2024  
    2025  
    2024 
  
    Smartphones 
    $8,108  
    $7,957  
    $23,976  
    $19,910 
  
    Feature Phones 
     3,801  
     6,780  
     12,447  
     14,839