Company: SONM
Filing Date: 2025-11-24
Form Type: PREM14A
Source: 0001493152-25-024848
Chunk: 349

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-11-24
Form: PREM14A
Chunk 349
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 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.

Disaggregation of net revenues

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

Schedule of Net Revenue Disaggregate by Product Category

|                                                  |     | Year Ended December 31, 
 2024                    |   2024 |     | 2023 |   2023 |
|:-------------------------------------------------|:----|:------------------------|-------:|:----|:-----|-------:|
| Smartphones                                      |     | $                       | 26,299 |     | $    | 31,410 |
| Feature Phones                                   |     |                         | 20,464 |     |      | 15,765 |
| White Label Products (ODM Model) (Related Party) |     |                         |  7,379 |     |      |      — |
| White Label Tablets (ODM Model)                  |     |                         |      — |     |      | 44,818 |
| Connected Solutions                              |     |                         |  3,427 |     |      |      — |
| Accessories and Other                            |     |                         |    729 |     |      |  1,639 |
| Total net revenues                               |     | $                       | 58,298 |     | $    | 93,632 |

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.

Contract costs

Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred when the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in sales and marketing expenses.

The non-recurring costs associated with design and development of new products for technical approval represent costs to fulfill a contract pursuant to ASC 340-40, Other Assets and Deferred Costs.Accordingly, the Company capitalizes these contract fulfillment costs and amortizes such costs over the estimated period of time they are expected to be recovered, which is typically three to four years, the estimated life of a particular product