Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 12

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 12
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 of Accounts Receivable

    September 30, 2025  
    December 31, 2024 
  
    Trade receivables 
    $6,204  
    $6,906 
  
    Allowance for credit losses 
     (2,706) 
     (2,567)
  
    Total accounts receivable 
    $3,498  
    $4,339 

As
of January 1, 2024, accounts receivable, net, was $25,304 and non-trade receivables was $961.

The
Company has non-trade receivables from manufacturing vendors resulting from the sale of components to the vendors who manufacture and
assemble final products for the Company.

The
Company determines the probability of default for each pool of receivables with similar risk characteristics. The probability of loss
is applied to the value of the receivables and an allowance for potential credit losses is recorded with the offset to credit loss expense.

Five
customers account for 15%, 15%, 13%, 13% and 11% of accounts receivable, net, at September 30, 2025. Three customers account for 33%,
24%, and 12% of accounts receivable, net, at December 31, 2024.

In
October 2023, the Company stopped sales of the white label products to its customer as the product reached the end of its life cycle.
In February 2024, an agreement was executed that transferred $11,308 of the receivables to the manufacturer of the white label products
in exchange for relieving the Company of a $11,308 accounts payable liability.

    10

The
following table presents the components of the Company’s inventory:

Schedule of Inventory

    September 30, 2025  
    December 31, 2024 
  
    Devices – for resale 
    $2,194  
    $4,633 
  
    Raw materials 
     8,080  
     5,598 
  
    Accessories 
     712  
     390 
  
    Inventory, net 
    $10,986  
    $10,621 

For
certain new products, the Company began purchasing raw materials in 2024 that will be used by the third-party manufacturers to build
the products. These purchased parts represent most of the raw materials in inventory at September 30, 2025 and December