Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 9

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 9
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 the value of the receivables and an allowance for potential credit losses is recorded with the offset to credit loss expense.

Three
customers account for 27%, 16%, and 11% of accounts receivable, net, at June 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.

    9

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

   Schedule of Inventory

    June 30, 2025  
    December 31, 2024 
  
    Devices – for resale 
    $2,943  
    $4,633 
  
    Raw materials 
     6,344  
     5,598 
  
    Accessories 
     602  
     390 
  
    Inventory, net 
    $9,889  
    $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 June 30, 2025 and December 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

    June 30,  2025  
    December 31, 2024 
  
    Deposits for inventory 
    $3,436  
    $2,697 
  
    Other 
     1,774  
     1,865 
  
    Prepaid expenses and
    other current assets 
    $5,210  
    $4,562 

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

 Schedule of Accrued Expenses

    June 30, 2025  
    December 31, 2024 
  
    Customer allowances 
    $4,502  
    $11,421 
  
    Contract fulfillment liabilities