Company: SONM
Filing Date: 2025-12-05
Form Type: DEFM14A
Source: 0001493152-25-026277
Chunk: 308

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-12-05
Form: DEFM14A
Chunk 308
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 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 |
| Connected Solutions                              |     |                    |  4,000 |     |      |