Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-38907 | |
Entity Registrant Name | Sonim Technologies, Inc. | |
Entity Central Index Key | 0001178697 | |
Entity Tax Identification Number | 94-3336783 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 4445 Eastgate Mall | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92121 | |
City Area Code | (650) | |
Local Phone Number | 378-8100 | |
Title of 12(b) Security | Common Stock par value $0.001 per share | |
Trading Symbol | SONM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,284,613 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 9,720 | $ 13,213 |
Accounts receivable, net | 26,576 | 22,433 |
Non-trade receivable | 1,008 | 2,269 |
Inventory | 4,736 | 3,910 |
Prepaid expenses and other current assets | 1,428 | 1,807 |
Total current assets | 43,468 | 43,632 |
Property and equipment, net | 83 | 168 |
Right-of-use assets | 183 | 66 |
Contract fulfillment assets | 7,028 | 6,848 |
Other assets | 2,978 | 2,972 |
Total assets | 53,740 | 53,686 |
Liabilities and stockholders’ equity | ||
Current portion of long-term debt | 74 | 147 |
Accounts payable | 20,913 | 21,126 |
Accrued expenses | 9,475 | 10,692 |
Current portion of lease liability | 183 | 66 |
Deferred revenue | 31 | |
Total current liabilities | 30,645 | 32,062 |
Income tax payable | 1,446 | 1,429 |
Accrued severance | 150 | |
Total liabilities | 32,091 | 33,641 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value per share; 100,000,000 shares authorized: and 41,110,279 and 40,774,687 shares issued and outstanding at June 30, 2023, and December 31, 2022, respectively. | 41 | 41 |
Preferred stock, $0.001 par value per share, 5,000,000 shares authorized, and no shares issued and outstanding at June 30, 2023, and December 31, 2022, respectively. | ||
Additional paid-in capital | 270,742 | 269,874 |
Accumulated deficit | (249,134) | (249,870) |
Total stockholders’ equity | 21,649 | 20,045 |
Total liabilities and stockholders’ equity | $ 53,740 | $ 53,686 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 41,110,279 | 40,774,687 |
Common stock, shares outstanding | 41,110,279 | 40,774,687 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net revenues | $ 26,835 | $ 11,955 | $ 52,636 | $ 25,213 |
Cost of revenues | 22,409 | 9,108 | 44,035 | 20,838 |
Gross profit | 4,426 | 2,847 | 8,601 | 4,375 |
Operating expenses: | ||||
Research and development | 2,721 | 105 | 6,889 | |
Sales and marketing | 1,827 | 2,073 | 3,584 | 4,243 |
General and administrative | 1,852 | 2,273 | 3,832 | 4,545 |
Total operating expenses | 3,679 | 7,067 | 7,521 | 15,677 |
Net income (loss) from operations | 747 | (4,220) | 1,080 | (11,302) |
Interest expense | (5) | (35) | (5) | (74) |
Other income (expense), net | (161) | 91 | (154) | 68 |
Net income (loss) before income taxes | 581 | (4,164) | 921 | (11,308) |
Income tax expense | (72) | (61) | (185) | (129) |
Net income (loss) | $ 509 | $ (4,225) | $ 736 | $ (11,437) |
Net income (loss) per share | ||||
Basic | $ 0.01 | $ (0.22) | $ 0.02 | $ (0.60) |
Diluted | $ 0.01 | $ (0.22) | $ 0.02 | $ (0.60) |
Weighted–average shares used in computing net income (loss) per share | ||||
Basic | 41,039,405 | 19,283,496 | 40,973,594 | 19,197,859 |
Diluted | 43,398,189 | 19,283,496 | 41,903,630 | 19,197,859 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 19 | $ 253,416 | $ (234,805) | $ 18,630 |
Beginning balance, shares at Dec. 31, 2021 | 18,808,885 | |||
Net settlement of common stock upon release of RSU | ||||
Net settlement of common stock upon release of RSU, shares | 71,347 | |||
Employee and nonemployee stock-based compensation | 499 | 499 | ||
Net income (loss) | (11,437) | (11,437) | ||
Issuance of common stock, net of issuance costs | 45 | 45 | ||
Issuance of common stock, net of issuance costs, shares | 45,305 | |||
Issuance of common stock, compensation | 253 | 253 | ||
Issuance of common stock, compensation, shares | 415,023 | |||
Adoption of ASC 842 – leases | (978) | (978) | ||
Ending balance, value at Jun. 30, 2022 | $ 19 | 254,213 | (247,220) | 7,012 |
Ending balance, shares at Jun. 30, 2022 | 19,340,560 | |||
Beginning balance, value at Mar. 31, 2022 | $ 19 | 253,997 | (242,995) | 11,021 |
Beginning balance, shares at Mar. 31, 2022 | 19,269,338 | |||
Net settlement of common stock upon release of RSU | ||||
Net settlement of common stock upon release of RSU, shares | 71,222 | |||
Employee and nonemployee stock-based compensation | 216 | 216 | ||
Net income (loss) | (4,225) | (4,225) | ||
Ending balance, value at Jun. 30, 2022 | $ 19 | 254,213 | (247,220) | 7,012 |
Ending balance, shares at Jun. 30, 2022 | 19,340,560 | |||
Beginning balance, value at Dec. 31, 2022 | $ 41 | 269,874 | (249,870) | 20,045 |
Beginning balance, shares at Dec. 31, 2022 | 40,774,687 | |||
Net settlement of common stock upon release of RSU | ||||
Net settlement of common stock upon release of RSU, shares | 19,849 | |||
Employee and nonemployee stock-based compensation | 667 | 667 | ||
Net income (loss) | 736 | 736 | ||
Issuance of common stock for payment of services | 201 | 201 | ||
Issuance of common stock for payment of services, shares | 315,743 | |||
Ending balance, value at Jun. 30, 2023 | $ 41 | 270,742 | (249,134) | 21,649 |
Ending balance, shares at Jun. 30, 2023 | 41,110,279 | |||
Beginning balance, value at Mar. 31, 2023 | $ 41 | 270,293 | (249,643) | 20,691 |
Beginning balance, shares at Mar. 31, 2023 | 40,995,430 | |||
Net settlement of common stock upon release of RSU | ||||
Net settlement of common stock upon release of RSU, shares | 19,849 | |||
Employee and nonemployee stock-based compensation | 358 | 358 | ||
Net income (loss) | 509 | 509 | ||
Issuance of common stock for payment of services | 91 | 91 | ||
Issuance of common stock for payment of services, shares | 95,000 | |||
Ending balance, value at Jun. 30, 2023 | $ 41 | $ 270,742 | $ (249,134) | $ 21,649 |
Ending balance, shares at Jun. 30, 2023 | 41,110,279 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 736 | $ (11,437) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,183 | 390 |
Stock-based compensation | 667 | 499 |
Stock issued under bonus plan | 253 | |
Stock issued for services | 201 | |
Amortization of lease liability and lease interest expense | (138) | (404) |
Bad debt expense (benefit) | 2 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,143) | 5,485 |
Non-trade receivable | 1,261 | 997 |
Inventory | (826) | 2,122 |
Prepaid expenses and other current assets | 437 | 2,131 |
Contract fulfillment costs | (1,117) | (436) |
Other assets | (64) | 893 |
Accounts payable | (213) | (1,343) |
Accrued expenses | (1,367) | 834 |
Deferred revenue | (31) | 144 |
Income tax payable | 17 | 26 |
Net cash provided by (used in) operating activities | (3,397) | 156 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (23) | (6) |
Net cash used in investing activities | (23) | (6) |
Cash flows from financing activities: | ||
Repayment of debt | (73) | (73) |
Proceeds from subscription agreement prior to issuance of common stock | 6,800 | |
Proceeds from issuance of common stock, net of costs | 45 | |
Net cash provided by (used in) financing activities | (73) | 6,772 |
Net increase (decrease) in cash and cash equivalents | (3,493) | 6,922 |
Cash and cash equivalents at beginning of period | 13,213 | 11,233 |
Cash and cash equivalents at end of period | 9,720 | 18,155 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 5 | 74 |
Cash paid for income taxes | 69 | 103 |
Non-cash operating and financing activities: | ||
Deferred offering costs in accrued expenses | $ 694 |
The Company and its significant
The Company and its significant accounting policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
The Company and its significant accounting policies | NOTE 1 — The Company and its significant accounting policies Description of Business August 5, 1999 Liquidity and Ability to Continue as a Going Concern 9.7 0.5 Basis of presentation and preparation The condensed consolidated financial statements include the accounts of Sonim Technologies, Inc. and its wholly owned subsidiaries (collectively “Sonim” or the “Company”). Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). New accounting pronouncements The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company, which is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. Pronouncements adopted in 2023: None. 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) |
Revenue recognition
Revenue recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | NOTE 2 — Revenue recognition The Company recognizes revenue primarily from the sale of products, which are primarily mobile phones, tablets, and related accessories, and the majority of the Company’s contracts include only one performance obligation, namely the delivery of product. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account for revenue recognition under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The Company also recognizes revenue from other contracts that may include a combination of products and non-recurring engineering (NRE) services or from the provision of solely NRE services. Where there is a combination of products and NRE services, the Company accounts for the promises as individual performance obligations if they are concluded as distinct. Performance obligations are considered distinct if they are both capable of being identified and distinct within the context of the contract. In determining whether performance obligations meet the criteria for being distinct, the Company considers a number of factors, such as the degree of interrelation and interdependence between obligations, and whether or not the good or service significantly modifies or transforms another good or service in the contract. During the three and six months ended June 30, 2023, and 2022, the Company did not have any contracts in which the products and NRE services were concluded to be a single performance obligation. In certain cases, the Company may offer tiered pricing based on volumes purchased for specific products. To date, all tiered pricing provisions have fallen into observable ranges of pricing to existing customers, thus, not resulting in any material right which could be concluded as its own performance obligation. In addition, the Company does not offer material post-contract support services to its customers. Net revenue for an individual contract is recognized at the related transaction price, which is the amount the Company expects to be entitled to in exchange for transferring the goods and/or services. The transaction price for product sales is calculated as the product selling price, net of variable consideration, which may include estimates for marketing development funds, sales incentives, and price protection and stock rotation rights. The Company records reductions to net revenues related to future product returns based on the Company’s expectations and historical experience. Typically, variable consideration does not need to be constrained as estimates are based on specific contract terms. However, the Company continues to assess variable consideration estimates such that it is probable that a significant reversal of revenue will not occur. The transaction price for a contract with multiple performance obligations is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices for products are determined based on the prices charged to customers, which are directly observable. Standalone selling price of the professional services are mostly based on time and materials. The Company determines its estimates of variable consideration based on historical collection experience with similar payor classes, aged accounts receivable by payor class, terms of payment agreements, correspondence from payors related to revenue audits or reviews, the Company’s historical settlement activity of audited and reviewed claims and current economic conditions using the portfolio approach. Revenue is recognized only to the extent that it is probable 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. Disaggregation of revenue The following table presents the Company’s net revenue disaggregated by product category: Schedule of Net Revenue Disaggregate by Product Category 2023 2022 2023 2022 Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Smartphones $ 8,869 $ 5,862 $ 15,296 $ 9,449 Feature Phones 3,012 6,001 6,853 14,838 Tablets 14,737 — 29,994 — Accessories / Other 217 92 493 926 Total Revenue $ 26,835 $ 11,955 $ 52,636 $ 25,213 Shipping and handling costs The Company has elected to account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. 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) Contract costs Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred when the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in sales and marketing expenses. The non-recurring costs associated with design and development Other Assets and Deferred Costs. Accordingly, the Company capitalizes these contract fulfillment costs and amortizes such costs over the estimated period of time over which they are expected to be recovered, which is typically 4 , the estimated life of a particular model phone. 7,028 6,848 Contract balances The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are presented as a component of deferred revenue on the condensed consolidated balance sheets. As of June 30, 2023 and December 31, 2022, the contract liabilities were zero 31 |
Fair value measurement
Fair value measurement | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | NOTE 3 — Fair value measurement The fair value measurements standard establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the standard are described below: Level 1—Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2—Inputs to the valuation methodology include: Quoted market prices for similar assets or liabilities in active markets; ● Quoted prices for identical or similar assets or liabilities in inactive markets; ● Inputs other than quoted prices that are observable for the asset or liability; ● Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The assets or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used at June 30, 2023, and December 31, 2022. Money market funds are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices. 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 methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following tables sets forth by level, within the fair value hierarchy, the Company’s assets at fair value: Summary of Fair Value Assets and Liabilities Level 1 Level 2 Level 3 Total June 30, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 281 $ — $ — $ 281 Level 1 Level 2 Level 3 Total December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 1,501 $ — $ — $ 1,501 * Included in cash and cash equivalents on the condensed consolidated balance sheets. |
Significant Balance Sheet Compo
Significant Balance Sheet Components | 6 Months Ended |
Jun. 30, 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: Schedule of Accounts Receivable June 30, 2023 December 31, 2022 Trade receivables $ 26,689 $ 22,546 Allowance for doubtful accounts (113 ) (113 ) Accounts receivable, net 26,576 22,433 Vendor non-trade receivables 1,008 2,269 Total accounts receivable $ 27,584 $ 24,702 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 $ 113 Trade receivables from the customer that purchases tablets from the Company account for 78 84 Inventory consists of the following: Schedule of Inventory June 30, 2023 December 31, 2022 Devices – for resale $ 4,139 $ 3,473 Raw materials 3 14 Accessories 594 423 Inventory , net $ 4,736 $ 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 Other assets consisted of the following: Schedule of Other Assets June 30, 2023 December 31, 2022 Advances to third party manufacturers $ 2,000 $ 2,000 Director and officer insurance 467 525 Deposits 310 311 Other 201 136 Total Other Assets $ 2,978 $ 2,972 Accrued Expenses consisted of the following: Schedule of Accrued Expenses June 30, 2023 December 31, 2022 Customer allowances $ 5,397 $ 4,130 Employee-related liabilities 972 1,365 Warranties 507 636 Accrual for goods received not invoiced 58 301 Contractual obligations 1,048 1,107 Royalties 364 256 Contract fulfillment liabilities 541 1,469 Credits due to customers 318 961 Legal 104 296 Other 166 171 Accrued liabilities, current $ 9,475 $ 10,692 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases | |
Leases | NOTE 5 — Leases The Company adopted ASU 2016-02 on January 1, 2022 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) On January 1, 2022 the Company began recording all lease payments as the payment of lease interest expense and a reduction of the lease liability for the leases that are not short-term. ROU assets are amortized over the life of the Company’s lease. The following table shows the activity of the ROU assets and lease liability for the six months ending on June 30, 2023 and 2022: Summary of Activity of ROU Assets and Liability Lease Liability Balance, December 31, 2022 $ 66 Adoption of ASC 842 - Additions 255 Principal payments (138 ) Balance, June 30, 2023 183 Less short-term portion (183 ) Long term lease liability $ — ROU Assets Balance, December 31, 2022 $ 66 Adoption of ASC 842 - Derecognition of deferred rent liability - Impairment of ROU asset - Additions 255 Amortization (138 ) Balance, June 30, 2023 $ 183 Lease Liability Balance, December 31, 2021 $ — Adoption of ASC 842 1,976 Principal payments (403 ) Balance, June 30, 2022 1,573 Less short-term portion (662 ) Long term lease liability $ 911 ROU Assets Balance, December 31, 2021 $ — Adoption of ASC 842 1,976 Derecognition of deferred rent liability (142 ) Impairment of ROU asset (978 ) Amortization (303 ) Balance, June 30, 2022 $ 553 Future minimum lease payments under noncancelable operating lease commitments are as follows as of June 30, 2023: Schedule of Future Minimum Lease Payments under Noncancelable Operating Lease Commitments Year Ending, December 31 st 2023 $ 132 2024 56 Total undiscounted minimum lease commitments 188 Effect of discounting (5 ) Lease liabilities at June 30, 2023 $ 183 In connection with leases, for the six months ended June 30, 2023 and 2022, the Company recognized $ 138 266 5 74 74 70 zero 140 2 7 9 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) |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 6 — Borrowings Promissory Notes Payable In 2014 and 2017, the Company entered into agreements with one of its suppliers, whereby certain of its trade payables for royalties and royalty up-front payments were converted to payment plans. In December 2018, the Company amended its accounts payable financing agreements, effective January 1, 2019, which provides for the $ 736 two four years 8 74 147 |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | NOTE 7 — Stock-based Compensation Stock-based compensation expense for the three and six months ended June 30, 2023 and 2022 is as follows: Schedule of Stock-based Compensation Expense 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cost of revenues $ 50 $ 9 $ 202 $ 20 Sales and marketing 86 (28 ) 132 (2 ) General and administrative 222 240 333 465 Research and development — (5 ) — 16 Stock-based compensation expenses $ 358 $ 216 $ 667 $ 499 Stock Options: Stock option activity for the six months ended June 30, 2023, is set forth in the table below: Summary of Stock Option Activity Weighted Weighted average average remaining Aggregate exercise price contractual life Intrinsic Options per share (in years) Value * Outstanding at January 1, 2023 4,476,215 $ 0.95 9.76 $ 358 Options granted 1,373,000 $ 0.54 Options exercised — Options forfeited — Options expired (7,833 ) 4.50 Outstanding at June 30, 2023 5,841,382 $ 0.85 9.35 $ 4,065 Exercisable at June 30, 2023 1,051,896 $ 2.45 9.15 $ 734 * The intrinsic value is calculated as the difference between the exercise price and the fair value of the common stock on the balance sheet date. As of June 30, 2023, there was approximately $ 2,646 2.22 Restricted Stock Units: RSU activity for the six months ended June 30, 2023, is set forth in the table below: Schedule of Outstanding Restricted Stock Units RSUs Outstanding at January 1, 2023 860,888 Granted 87,100 Released (19,849 ) Forfeited (5,200 ) Outstanding at June 30, 2023 922,939 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8 — Income Taxes In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date profit or loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate primarily as a result of state taxes, foreign taxes, and changes in the Company’s valuation allowance against its deferred tax assets. For the six months ended June 30, 2023, and 2022, the Company recorded provisions for income taxes of $ 185 129 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) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 — Commitments and Contingencies Purchase Commitments 16,327 19,975 In 2021, the Company outsourced substantially all of its software development to a third-party and the Company entered into an agreement of future business volume over the next three years. The agreement was renegotiated in 2022 and the remaining commitment as of June 30, 2023 and December 31, 2022 is $ 577 1,154 Royalty payments 5 406 807 General litigation The results of any future litigation cannot be predicted with certainty and, regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management time and resources and other factors. Indemnification Contingent severance obligations 1 |
Net Earnings (Loss) Per Share A
Net Earnings (Loss) Per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) Per Share Attributable to Common Stockholders | NOTE 10 Net Earnings (Loss) Per Share Attributable to Common Stockholders The following table sets forth the computation of the Company’s basic and diluted earnings (loss) per share attributable to common stockholders for the three and six months shown below: Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net profit (loss) $ 509 $ (4,225 ) $ 736 $ (11,437 ) Denominator: Weighted-average shares used in computing net earnings (loss) per share, basic 41,039,405 19,283,496 40,973,594 19,197,859 Net earnings (loss) per share, basic 0.01 (0.22 ) 0.02 (0.60 ) Weighted-average shares used in computing net earnings (loss) per share, diluted 43,398,189 19,283,496 41,903,630 19,197,859 Net earnings (loss) per share, diluted $ 0.01 $ (0.22 ) $ 0.02 $ (0.60 ) 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 dilutive common shares that were used in the calculation of diluted earnings for 2023 are presented in the table below. The 2022 amounts were not used as they were antidilutive. Summary of Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Shares subject to options to purchase common stock 5,841,382 83,356 5,841,382 83,356 Unvested restricted stock units 922,939 235,102 922,939 235,102 Shares subject to warrants to purchase common Stock 2 2 2 2 Total 6,764,323 318,460 6,764,323 318,460 |
Entity Level Information
Entity Level Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Entity Level Information | NOTE 11 — Entity Level Information The Company operates in one The following table summarizes the revenue by region based on ship-to destinations for the three and six months ended: Schedule of Revenue by Region 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 U.S. $ 8,236 $ 8,520 $ 13,386 $ 19,920 Canada and Latin America 3,032 2,896 5,772 4,277 Europe and Middle East 829 536 2,913 893 Asia Pacific 14,738 3 30,565 123 Total revenues $ 26,835 $ 11,955 $ 52,636 $ 25,213 The following table summarizes the composition of revenues for the three and six months ended: Schedule of Composition of Revenues 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Product Sales $ 26,834 $ 11,943 $ 52,635 $ 25,187 Services 1 12 1 26 Total revenues $ 26,835 $ 11,955 $ 52,636 $ 25,213 Revenue from customers with concentration greater than 10% in three and six months ended June 30, 2023 and 2022 accounted for approximately the following percentage of total revenues: Schedule of Percentage of Total Revenues Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Customer A 55 % — * 57 % — * Customer B 35 % 51 % 25 % 41 % Customer C — * 15 % — * 14 % Customer D — * — * — * 21 % Customer E - 13 % - 13 % * Customer revenue did not exceed 10% in the respective period. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12 Subsequent Events None |
The Company and its significa_2
The Company and its significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business August 5, 1999 |
Liquidity and Ability to Continue as a Going Concern | Liquidity and Ability to Continue as a Going Concern 9.7 0.5 |
Basis of presentation and preparation | Basis of presentation and preparation The condensed consolidated financial statements include the accounts of Sonim Technologies, Inc. and its wholly owned subsidiaries (collectively “Sonim” or the “Company”). Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). |
New accounting pronouncements | New accounting pronouncements The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company, which is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. Pronouncements adopted in 2023: None. |
Revenue recognition (Tables)
Revenue recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Net Revenue Disaggregate by Product Category | The following table presents the Company’s net revenue disaggregated by product category: Schedule of Net Revenue Disaggregate by Product Category 2023 2022 2023 2022 Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Smartphones $ 8,869 $ 5,862 $ 15,296 $ 9,449 Feature Phones 3,012 6,001 6,853 14,838 Tablets 14,737 — 29,994 — Accessories / Other 217 92 493 926 Total Revenue $ 26,835 $ 11,955 $ 52,636 $ 25,213 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Assets and Liabilities | The following tables sets forth by level, within the fair value hierarchy, the Company’s assets at fair value: Summary of Fair Value Assets and Liabilities Level 1 Level 2 Level 3 Total June 30, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 281 $ — $ — $ 281 Level 1 Level 2 Level 3 Total December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 1,501 $ — $ — $ 1,501 * Included in cash and cash equivalents on the condensed consolidated balance sheets. |
Significant Balance Sheet Com_2
Significant Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | Accounts Receivable consists of the following: Schedule of Accounts Receivable June 30, 2023 December 31, 2022 Trade receivables $ 26,689 $ 22,546 Allowance for doubtful accounts (113 ) (113 ) Accounts receivable, net 26,576 22,433 Vendor non-trade receivables 1,008 2,269 Total accounts receivable $ 27,584 $ 24,702 |
Schedule of Inventory | Inventory consists of the following: Schedule of Inventory June 30, 2023 December 31, 2022 Devices – for resale $ 4,139 $ 3,473 Raw materials 3 14 Accessories 594 423 Inventory , net $ 4,736 $ 3,910 |
Schedule of Other Assets | Other assets consisted of the following: Schedule of Other Assets June 30, 2023 December 31, 2022 Advances to third party manufacturers $ 2,000 $ 2,000 Director and officer insurance 467 525 Deposits 310 311 Other 201 136 Total Other Assets $ 2,978 $ 2,972 |
Schedule of Accrued Expenses | Accrued Expenses consisted of the following: Schedule of Accrued Expenses June 30, 2023 December 31, 2022 Customer allowances $ 5,397 $ 4,130 Employee-related liabilities 972 1,365 Warranties 507 636 Accrual for goods received not invoiced 58 301 Contractual obligations 1,048 1,107 Royalties 364 256 Contract fulfillment liabilities 541 1,469 Credits due to customers 318 961 Legal 104 296 Other 166 171 Accrued liabilities, current $ 9,475 $ 10,692 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases | |
Summary of Activity of ROU Assets and Liability | Summary of Activity of ROU Assets and Liability Lease Liability Balance, December 31, 2022 $ 66 Adoption of ASC 842 - Additions 255 Principal payments (138 ) Balance, June 30, 2023 183 Less short-term portion (183 ) Long term lease liability $ — ROU Assets Balance, December 31, 2022 $ 66 Adoption of ASC 842 - Derecognition of deferred rent liability - Impairment of ROU asset - Additions 255 Amortization (138 ) Balance, June 30, 2023 $ 183 Lease Liability Balance, December 31, 2021 $ — Adoption of ASC 842 1,976 Principal payments (403 ) Balance, June 30, 2022 1,573 Less short-term portion (662 ) Long term lease liability $ 911 ROU Assets Balance, December 31, 2021 $ — Adoption of ASC 842 1,976 Derecognition of deferred rent liability (142 ) Impairment of ROU asset (978 ) Amortization (303 ) Balance, June 30, 2022 $ 553 |
Schedule of Future Minimum Lease Payments under Noncancelable Operating Lease Commitments | Future minimum lease payments under noncancelable operating lease commitments are as follows as of June 30, 2023: Schedule of Future Minimum Lease Payments under Noncancelable Operating Lease Commitments Year Ending, December 31 st 2023 $ 132 2024 56 Total undiscounted minimum lease commitments 188 Effect of discounting (5 ) Lease liabilities at June 30, 2023 $ 183 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense for the three and six months ended June 30, 2023 and 2022 is as follows: Schedule of Stock-based Compensation Expense 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cost of revenues $ 50 $ 9 $ 202 $ 20 Sales and marketing 86 (28 ) 132 (2 ) General and administrative 222 240 333 465 Research and development — (5 ) — 16 Stock-based compensation expenses $ 358 $ 216 $ 667 $ 499 |
Summary of Stock Option Activity | Stock option activity for the six months ended June 30, 2023, is set forth in the table below: Summary of Stock Option Activity Weighted Weighted average average remaining Aggregate exercise price contractual life Intrinsic Options per share (in years) Value * Outstanding at January 1, 2023 4,476,215 $ 0.95 9.76 $ 358 Options granted 1,373,000 $ 0.54 Options exercised — Options forfeited — Options expired (7,833 ) 4.50 Outstanding at June 30, 2023 5,841,382 $ 0.85 9.35 $ 4,065 Exercisable at June 30, 2023 1,051,896 $ 2.45 9.15 $ 734 * The intrinsic value is calculated as the difference between the exercise price and the fair value of the common stock on the balance sheet date. |
Schedule of Outstanding Restricted Stock Units | RSU activity for the six months ended June 30, 2023, is set forth in the table below: Schedule of Outstanding Restricted Stock Units RSUs Outstanding at January 1, 2023 860,888 Granted 87,100 Released (19,849 ) Forfeited (5,200 ) Outstanding at June 30, 2023 922,939 |
Net Earnings (Loss) Per Share_2
Net Earnings (Loss) Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The following table sets forth the computation of the Company’s basic and diluted earnings (loss) per share attributable to common stockholders for the three and six months shown below: Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net profit (loss) $ 509 $ (4,225 ) $ 736 $ (11,437 ) Denominator: Weighted-average shares used in computing net earnings (loss) per share, basic 41,039,405 19,283,496 40,973,594 19,197,859 Net earnings (loss) per share, basic 0.01 (0.22 ) 0.02 (0.60 ) Weighted-average shares used in computing net earnings (loss) per share, diluted 43,398,189 19,283,496 41,903,630 19,197,859 Net earnings (loss) per share, diluted $ 0.01 $ (0.22 ) $ 0.02 $ (0.60 ) |
Summary of Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share | The dilutive common shares that were used in the calculation of diluted earnings for 2023 are presented in the table below. The 2022 amounts were not used as they were antidilutive. Summary of Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Shares subject to options to purchase common stock 5,841,382 83,356 5,841,382 83,356 Unvested restricted stock units 922,939 235,102 922,939 235,102 Shares subject to warrants to purchase common Stock 2 2 2 2 Total 6,764,323 318,460 6,764,323 318,460 |
Entity Level Information (Table
Entity Level Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Region | The following table summarizes the revenue by region based on ship-to destinations for the three and six months ended: Schedule of Revenue by Region 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 U.S. $ 8,236 $ 8,520 $ 13,386 $ 19,920 Canada and Latin America 3,032 2,896 5,772 4,277 Europe and Middle East 829 536 2,913 893 Asia Pacific 14,738 3 30,565 123 Total revenues $ 26,835 $ 11,955 $ 52,636 $ 25,213 |
Schedule of Composition of Revenues | The following table summarizes the composition of revenues for the three and six months ended: Schedule of Composition of Revenues 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Product Sales $ 26,834 $ 11,943 $ 52,635 $ 25,187 Services 1 12 1 26 Total revenues $ 26,835 $ 11,955 $ 52,636 $ 25,213 |
Schedule of Percentage of Total Revenues | Revenue from customers with concentration greater than 10% in three and six months ended June 30, 2023 and 2022 accounted for approximately the following percentage of total revenues: Schedule of Percentage of Total Revenues Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Customer A 55 % — * 57 % — * Customer B 35 % 51 % 25 % 41 % Customer C — * 15 % — * 14 % Customer D — * — * — * 21 % Customer E - 13 % - 13 % * Customer revenue did not exceed 10% in the respective period. |
The Company and its significa_3
The Company and its significant accounting policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | |||||
Entity Incorporation, Date of Incorporation | Aug. 05, 1999 | ||||
Cash and cash equivalents, at carrying value | $ 9,720 | $ 9,720 | $ 13,213 | ||
Net income | $ 509 | $ (4,225) | $ 736 | $ (11,437) |
Schedule of Net Revenue Disaggr
Schedule of Net Revenue Disaggregate by Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 26,835 | $ 11,955 | $ 52,636 | $ 25,213 |
Smart Phones [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 8,869 | 5,862 | 15,296 | 9,449 |
Feature Phones [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 3,012 | 6,001 | 6,853 | 14,838 |
Tablets [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 14,737 | 29,994 | ||
Accessories and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 217 | $ 92 | $ 493 | $ 926 |
Revenue recognition (Details Na
Revenue recognition (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Estimated life of a particular model phone | 4 years | |
Contract liabilities | $ 31 | |
Other Assets [Member] | ||
Total capitalized costs | $ 7,028 | $ 6,848 |
Summary of Fair Value Assets an
Summary of Fair Value Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | [1] | $ 281 | $ 1,501 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | [1] | 281 | 1,501 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | [1] | ||
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | [1] | ||
[1]Included in cash and cash equivalents on the condensed consolidated balance sheets. |
Schedule of Accounts Receivable
Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Trade receivables | $ 26,689 | $ 22,546 |
Allowance for doubtful accounts | (113) | (113) |
Accounts receivable, net | 26,576 | 22,433 |
Vendor non-trade receivables | 1,008 | 2,269 |
Total accounts receivable | $ 27,584 | $ 24,702 |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Devices – for resale | $ 4,139 | $ 3,473 |
Raw materials | 3 | 14 |
Accessories | 594 | 423 |
Inventory , net | $ 4,736 | $ 3,910 |
Schedule of Other Assets (Detai
Schedule of Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Advances to third party manufacturers | $ 2,000 | $ 2,000 |
Director and officer insurance | 467 | 525 |
Deposits | 310 | 311 |
Other | 201 | 136 |
Total Other Assets | $ 2,978 | $ 2,972 |
Schedule of Accrued Expenses (D
Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Customer allowances | $ 5,397 | $ 4,130 |
Employee-related liabilities | 972 | 1,365 |
Warranties | 507 | 636 |
Accrual for goods received not invoiced | 58 | 301 |
Contractual obligations | 1,048 | 1,107 |
Royalties | 364 | 256 |
Contract fulfillment liabilities | 541 | 1,469 |
Credits due to customers | 318 | 961 |
Legal | 104 | 296 |
Other | 166 | 171 |
Accrued liabilities, current | $ 9,475 | $ 10,692 |
Significant Balance Sheet Com_3
Significant Balance Sheet Components (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Product Information [Line Items] | ||
Allowance for doubtful accounts, premiums and other receivables | $ 113 | $ 113 |
Retail related inventory | $ 4 | $ 4 |
Customer [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Product Information [Line Items] | ||
Accounts receivable percentage | 78% | 84% |
Summary of Activity of ROU Asse
Summary of Activity of ROU Assets and Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Leases | |||
Lease liability, opening balance | $ 66 | ||
Lease liability, Adoption of ASC 842 | 1,976 | ||
Additions | 255 | ||
Lease liability, Principal payments | (138) | (403) | |
Lease liability, ending balance | 183 | 1,573 | |
Lease liability, Less short-term portion | (183) | (662) | $ (66) |
Lease liability, Long term lease liability | 911 | ||
Right of use assets, beginning balance | 66 | ||
Right of use assets, Adoption of ASC 842 | 1,976 | ||
Right of use assets, Derecognition of deferred rent liability | (142) | ||
Right of use assets, Impairment of ROU asset | (978) | ||
Additions | 255 | ||
Right of use assets, Amortization | (138) | (303) | |
Right of use assets, ending balance | $ 183 | $ 553 |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments under Noncancelable Operating Lease Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Leases | ||||
2023 | $ 132 | |||
2024 | 56 | |||
Total undiscounted minimum lease commitments | 188 | |||
Effect of discounting | (5) | |||
Lease liabilities at June 30, 2023 | $ 183 | $ 66 | $ 1,573 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Amortization of ROU assets | $ 138 | $ 266 |
Interest expense on lease liabilities | 5 | 74 |
Operating Lease, Expense | 74 | 70 |
Property taxes and operating expenses | 0 | 140 |
Short term, rent payments | $ 2 | $ 7 |
Weighted average remaining lease, term | 9 months | |
Accounting Standards Update 2016-02 [Member] | ||
ASU, adoption date | Jan. 01, 2022 |
Borrowings (Details Narrative)
Borrowings (Details Narrative) - Promissory Notes Payable [Member] - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2019 | |
Short-Term Debt [Line Items] | |||
Notes payable | $ 74 | $ 147 | $ 736 |
Minimum [Member] | |||
Short-Term Debt [Line Items] | |||
Debt instrument term | 2 years | ||
Maximum [Member] | |||
Short-Term Debt [Line Items] | |||
Debt instrument term | 4 years | ||
Debt instrument interest rate stated percentage | 8% |
Schedule of Stock-based Compens
Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | $ 358 | $ 216 | $ 667 | $ 499 |
Cost of Sales [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | 50 | 9 | 202 | 20 |
Selling and Marketing Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | 86 | (28) | 132 | (2) |
General and Administrative Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | 222 | 240 | 333 | 465 |
Research and Development Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | $ (5) | $ 16 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | ||
Share-Based Payment Arrangement [Abstract] | |||
Options, beginning outstanding | 4,476,215 | ||
Weighted average exercise price per share, beginning balance | $ 0.95 | ||
Weighted average remaining contractual life (in years) | 9 years 4 months 6 days | 9 years 9 months 3 days | |
Aggregate intrinsic value, beginning balance | [1] | $ 358 | |
Options, granted | 1,373,000 | ||
Weighted average exercise price per share, exercised | $ 0.54 | ||
Options exercised | |||
Options, forfeited | |||
Options, expired | (7,833) | ||
Weighted average exercise price per share, expired | $ 4.50 | ||
Options, ending outstanding | 5,841,382 | 4,476,215 | |
Weighted average exercise price per share, ending balance | $ 0.85 | $ 0.95 | |
Aggregate intrinsic value, ending balance | [1] | $ 4,065 | $ 358 |
Options, exercisable | 1,051,896 | ||
Weighted average exercise price per share, exercisable | $ 2.45 | ||
Weighted average remaining contractual life (in years), exercisable | 9 years 1 month 24 days | ||
Aggregate intrinsic value, exercisable | [1] | $ 734 | |
[1]The intrinsic value is calculated as the difference between the exercise price and the fair value of the common stock on the balance sheet date. |
Schedule of Outstanding Restric
Schedule of Outstanding Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2023 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Outstanding at January 1, 2023 | 860,888 |
Granted | 87,100 |
Released | (19,849) |
Forfeited | (5,200) |
Outstanding at June 30, 2023 | 922,939 |
Stock-based Compensation (Detai
Stock-based Compensation (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation, unamortized | $ 2,646 |
Weighted average period (in years) | 2 years 2 months 19 days |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 72 | $ 61 | $ 185 | $ 129 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jul. 13, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||||
Purchase obligation | $ 16,327 | $ 19,975 | ||
Purchase commitment amount | 577 | $ 1,154 | ||
CFO and President [Member] | ||||
Loss Contingencies [Line Items] | ||||
Severance payments | $ 1,000 | |||
Cost of Sales [Member] | ||||
Loss Contingencies [Line Items] | ||||
Royalty expense | $ 406 | $ 807 | ||
Minimum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Royalty payment percent of net revenues | 5% |
Schedule of Computation of Basi
Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net profit (loss) | $ 509 | $ (4,225) | $ 736 | $ (11,437) |
Denominator: | ||||
Weighted-average shares used in computing net earnings (loss) per share, basic | 41,039,405 | 19,283,496 | 40,973,594 | 19,197,859 |
Net earnings (loss) per share, basic | $ 0.01 | $ (0.22) | $ 0.02 | $ (0.60) |
Weighted-average shares used in computing net earnings (loss) per share, diluted | 43,398,189 | 19,283,496 | 41,903,630 | 19,197,859 |
Net earnings (loss) per share, diluted | $ 0.01 | $ (0.22) | $ 0.02 | $ (0.60) |
Summary of Dilutive Common Shar
Summary of Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 6,764,323 | 318,460 | 6,764,323 | 318,460 |
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 5,841,382 | 83,356 | 5,841,382 | 83,356 |
Unvested Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 922,939 | 235,102 | 922,939 | 235,102 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 2 | 2 | 2 | 2 |
Schedule of Revenue by Region (
Schedule of Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 26,835 | $ 11,955 | $ 52,636 | $ 25,213 |
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 8,236 | 8,520 | 13,386 | 19,920 |
Canada and Latin America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 3,032 | 2,896 | 5,772 | 4,277 |
Europe and Middle East [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 829 | 536 | 2,913 | 893 |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 14,738 | $ 3 | $ 30,565 | $ 123 |
Schedule of Composition of Reve
Schedule of Composition of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 26,835 | $ 11,955 | $ 52,636 | $ 25,213 |
Product [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 26,834 | 11,943 | 52,635 | 25,187 |
Service [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 1 | $ 12 | $ 1 | $ 26 |
Schedule of Percentage of Total
Schedule of Percentage of Total Revenues (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||||
Customer A [Member] | ||||||||
Revenue, Major Customer [Line Items] | ||||||||
Concentration Risk Percentage1 | 55% | [1] | 57% | [1] | ||||
Customer B [Member] | ||||||||
Revenue, Major Customer [Line Items] | ||||||||
Concentration Risk Percentage1 | 35% | 51% | 25% | 41% | ||||
Consumer C [Member] | ||||||||
Revenue, Major Customer [Line Items] | ||||||||
Concentration Risk Percentage1 | [1] | 15% | [1] | 14% | ||||
Consumer D [Member] | ||||||||
Revenue, Major Customer [Line Items] | ||||||||
Concentration Risk Percentage1 | [1] | [1] | [1] | 21% | ||||
Customer E [Member] | ||||||||
Revenue, Major Customer [Line Items] | ||||||||
Concentration Risk Percentage1 | [1] | 13% | [1] | 13% | ||||
[1]Customer revenue did not exceed 10% in the respective period. |
Entity Level Information (Detai
Entity Level Information (Details Narrative) | 6 Months Ended |
Jun. 30, 2023 Integer | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |