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:

 

   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:

 

   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:

 

   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:

 

   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:

 

   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:

 

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