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Significant Balance Sheet Components

6 Months Ended

Jun. 30, 2022

NOTE 4 —Significant Balance Sheet Components

Accounts Receivable consists of the following:

Schedule of Accounts Receivable


	June 30, 2022			December 31, 2021
Trade receivables	$	6,250		$	11,735
Allowance for doubtful accounts		(934	)		(932	)
Accounts receivable, net		5,316			10,803
Vendor non-trade receivables		1,258			2,255
Total accounts receivable	$	6,574		$	13,058

The Company has non-trade receivables from a manufacturing vendor resulting from the sale of components to this vendor who manufactures and assembles final products for the Company.

The Company analyzes the need for reserves for potential credit losses and records allowances for doubtful accounts when necessary. The Company had allowances for such losses totaling approximately $934 and $932 as of June 30, 2022 and December 31, 2021, respectively. In July 2022, the Company reached a settlement for a customer of a $912 trade receivable that was fully reserved for in the June 30, 2022 allowance for doubtful accounts. The Company received $91 in cash and the remaining receivable was written off to the allowance for doubtful accounts.

Inventory consists of the following:

Schedule of Inventory

	June 30, 2022		December 31, 2021
Finished goods	$	2,466	$	2,952
Raw materials		560		1,986
Accessories		396		606
Inventory, Net	$	3,422	$	5,544

Distributor returns allowance

The Company records reductions to cost of goods sold related to future distributor product returns based on the Company’s expectation. The Company had inventory related to distributor product returns totaling approximately $41 and $229 as of June 30, 2022 and December 31, 2021 respectively.

SONIM TECHNOLOGIES, INC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(In thousands of U.S. dollars except share and per share amounts or as otherwise disclosed)

Other assets consisted of the following:

Schedule of Other Assets

	June 30, 2022		December 31, 2021
Deferred NRE	$	1,909	$	2,345
Advances to third party manufacturers		2,000		2,000
Deposits		425		431
Costs for equity transaction that closed in 3^rd quarter (Note 12)		694		—
Other		78		93
Total Other Assets	$	5,106	$	4,869

Accrued Expenses consisted of the following:

Schedule of Accrued Expenses

	June 30, 2022		December 31, 2021
Customer allowances	$	3,652	$	3,148
Employee-related liabilities		754		1,893
Warranties		933		836
Accrual for goods received not invoiced		180		668
Contractual obligations		1,035		1,035
Royalties		1,165		1,210
Research and development		3,000		1,158
Shipping		205		157
Returns allowance		64		390
Legal		167		517
Costs for equity transaction that closed in 3^rd quarter (Note 12)		694		—
Other		196		341
Accrued liabilities, current	$	12,045	$	11,353

Other liability for proceeds received for equity not yet issued of $6,800 are payments received per the subscription agreement (see Note 12). The liability was relieved when stock was issued to the investors following the first close of the subscription agreement on July 13, 2022.