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Significant Balance Sheet Components
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Significant Balance Sheet Components

NOTE 4 —Significant Balance Sheet Components

 

Accounts Receivable consists of the following:

 

  

March 31,

2023

  

December 31,

2022

 
Trade receivables  $25,151   $22,239 
Allowance for doubtful accounts   (113)   (113)
Accounts receivable, net   25,038    22,126 
Vendor non-trade receivables   1,249    2,269 
Total accounts receivable  $26,287   $24,395 

 

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 $113 as of March 31, 2023 and December 31, 2022.

 

Trade receivables from the customer that purchases tablets from the Company accounts for 68% and 84% of total accounts receivable at March 31, 2023 and December 31, 2022 respectively. The tablets business uses the ODM model where the customer imports the tablets to the U.S., the tablets are rebranded, and the tablets are sold to a U.S. retailer. Due to the delay in shipping the product to the end customer, the payment terms for accounts receivable are much longer than our traditional direct sales to carriers. The customer is making regular payments, and the Company believes that the entire accounts receivable balance as of March 31, 2023 is collectible, and that no reserve is needed.

 

Inventory consists of the following:

 

  

March 31,

2023

  

December 31,

2022

 
  

March 31,

2023

  

December 31,

2022

 
Devices – for resale  $3,884   $3,473 
Raw materials   7    14 
Accessories   617    423 
Inventory , net  $4,508   $3,910 

 

 

SONIM TECHNOLOGIES, INC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

 

The Company purchases raw materials in bulk to obtain a lower price. The raw materials are resold to third-party manufacturers at the Company’s cost.

 

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 $4 as of March 31, 2023 and December 31, 2022.

 

Other assets consisted of the following:

 

  

March 31,

2023

  

December 31,

2022

 
Advances to third party manufacturers  $2,000   $2,000 
Director and officer insurance   496    525 
Deposits   311    311 
Other   137    136 
Total Other Assets  $2,944   $2,972 

 

Accrued Expenses consisted of the following:

 

  

March 31,

2023

  

December 31,

2022

 
Customer allowances  $3,530   $4,130 
Employee-related liabilities   1,042    1,365 
Warranties   500    636 
Accrual for goods received not invoiced   407    301 
Contractual obligations   1,048    1,107 
Royalties   290    256 
Contract fulfillment liabilities   780    1,469 
Credits due to customers   990    961 
Legal   103    296 
Other   16    171 
Accrued liabilities , current  $8,706   $10,692