XML 24 R12.htm IDEA: XBRL DOCUMENT
v3.23.1

Significant Balance Sheet Components | 12 Months Ended
--- | ---
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Significant Balance Sheet Components | NOTE 4 —Significant Balance Sheet Components Inventory consisted of the following: Schedule of Inventory
|  | 2022 |  |  | 2021 |
|  | December 31 |
|  | 2022 |  |  | 2021 |
Devices - for resale |  | $ | 3,473 |  |  | $ | 2,952 |
Raw materials |  |  | 14 |  |  |  | 1,986 |
Accessories |  |  | 423 |  |  |  | 606 |
Inventory, Net |  | $ | 3,910 |  |  | $ | 5,544 |
In August 2022, the Company stopped purchasing raw materials used by third-party manufacturers in the manufacturing of Sonim’s legacy devices. Excess raw materials were sold to ODM partners. During the year ended December 31, 2021, the Company recorded a $1,594 write-down of the inventory value for scanners, aging raw materials and aging finished goods. The Company accrued a loss of approximately $300 on purchase commitments in connection with end-of-life products. Distributor returns allowance The Company records reductions to revenue related to future distributor product returns based on the Company’s expectation. The Company had inventory related to distributor product returns totaling approximately $4 and $229 as of December 31, 2022 and 2021. Prepaid expenses and other current assets consisted of the following: Schedule of Prepaid Expenses and Other Current Assets
|  | 2022 |  |  | 2021 |
|  | December 31 |
|  | 2022 |  |  | 2021 |
Deposits for manufacturing inventory |  | $ | — |  |  | $ | 1,041 |
Prepaid taxes |  |  | 433 |  |  |  | 544 |
Refundable value added taxes |  |  | 45 |  |  |  | 1,693 |
Prepaid – NRE |  |  | — |  |  |  | 350 |
Prepaid licenses and royalties |  |  | 366 |  |  |  | 552 |
Director and officer insurance |  |  | 250 |  |  |  | 770 |
Prepaid parts (direct buy) |  |  | 193 |  |  |  | 185 |
Other |  |  | 520 |  |  |  | 717 |
Prepaid expenses and other current assets, net |  | $ | 1,807 |  |  | $ | 5,852 |
Property and equipment consisted of the following: Schedule of Property and Equipment
|  | 2022 |  |  | 2021 |
|  | December 31 |
|  | 2022 |  |  | 2021 |
Computer equipment |  | $ | 412 |  |  | $ | 3,994 |
Software |  |  | — |  |  |  | 981 |
Furniture, fixtures, and office equipment |  |  | 175 |  |  |  | 175 |
Leasehold Improvements |  |  | — |  |  |  | 179 |
Property and equipment, gross |  |  | 587 |  |  |  | 5,329 |
Less: accumulated depreciation and amortization |  |  | (419 | ) |  |  | (4,795 | )
Property and equipment, net |  | $ | 168 |  |  | $ | 534 |
Depreciation and amortization expense of property and equipment for the years ended December 31, 2022 and 2021, was $244 and $301, respectively. During 2022, the Company retired or disposed of computer equipment, software, and leasehold improvements with a cost of $4,751 and accumulated depreciation of $4,621 as the Company stopped manufacturing in 2022 and two U.S. leases were terminated. The Company recorded a loss on the disposal of assets of $130 on these disposals that is included in other expense, net in the Consolidated Statements of Operations. During 2021, the Company disposed of computer equipment with a cost of $910 and accumulated depreciation of $856. Contract fulfillment assets are capitalized costs to test and obtain certification for cell phones with specific carriers. These costs are amortized over the estimated life of a phone model, which is four years. Contract fulfillment assets for the years ended December 31, 2022 and 2021 are $6,848 and $2,345 respectively. Other assets consisted of the following: Schedule of Other Assets
|  | 2022 |  |  | 2021 |
|  | December 31 |
|  | 2022 |  |  | 2021 |
Advances to third party manufacturer |  | $ | 2,000 |  |  | $ | 2,000 |
Deposits |  |  | 311 |  |  |  | 431 |
Director and officer insurance |  |  | 525 |  |  |  | — |
Other |  |  | 136 |  |  |  | 93 |
Total Other Assets |  | $ | 2,972 |  |  | $ | 2,524 |
Accrued liabilities consisted of the following: Schedule of Accrued Expenses
|  | 2022 |  |  | 2021 |
|  | December 31 |
|  | 2022 |  |  | 2021 |
Customer allowances |  | $ | 4,130 |  |  | $ | 3,148 |
Employee-related liabilities |  |  | 1,365 |  |  |  | 1,893 |
Warranties |  |  | 636 |  |  |  | 836 |
Accrual for goods received not invoiced |  |  | 301 |  |  |  | 668 |
Contractual obligations |  |  | 1,107 |  |  |  | 1,035 |
Royalties |  |  | 256 |  |  |  | 1,210 |
Research and development and fulfillment costs |  |  | 1,469 |  |  |  | 1,158 |
Credits due to customers |  |  | 961 |  |  |  | — |
Shipping |  |  | — |  |  |  | 157 |
Returns allowance |  |  | 6 |  |  |  | 390 |
Legal |  |  | 296 |  |  |  | 517 |
Other |  |  | 165 |  |  |  | 341 |
Accrued liabilities, current |  | $ | 10,692 |  |  | $ | 11,353 |
The table below sets forth the activity in the warranty liability account, which is included in accrued expenses on the Consolidated Balance Sheets for the years ended December 31, 2022 and 2021: Schedule of Warrant Liability Included in Accrued Expenses on Consolidated Balance Sheet
Balance, January 1, 2022 |  | $ | 836 |
Additions |  |  | 1,493 |
Cost of warranty claims |  |  | (1,693 | )
Balance, December 31, 2022 |  | $ | 636 |
Balance, January 1, 2021 |  | $ | 1,530 |
Additions |  |  | 1,086 |
Cost of warranty claims |  |  | (1,780 | )
Balance, December 31, 2021 |  | $ | 836 |

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI https://asc.fasb.org/topic&trid=2122208 + Details
Name: | us-gaap_SupplementalBalanceSheetDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration