Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 20, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 23.1 | ||
Entity Common Stock, Shares Outstanding | 43,206,083 | ||
Documents Incorporated by Reference | Certain information required by Part III, Items 10-14 of this Form 10-K will either be (i) included in an amendment to this Annual Report on Form 10-K, or (ii) incorporated by reference to the Registrant’s definitive Proxy Statement for the 2024 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission not later than 120 days after the end of the fiscal year covered by this Form 10-K | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 659 | ||
Auditor Name | Moss Adams LLP | ||
Auditor Location | Campbell, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 9,397 | $ 13,213 |
Accounts receivable, net | 25,304 | 22,433 |
Non-trade receivable | 961 | 2,269 |
Inventory | 6,517 | 3,910 |
Prepaid expenses and other current assets | 1,608 | 1,807 |
Total current assets | 43,787 | 43,632 |
Property and equipment, net | 71 | 168 |
Right-of-use assets | 55 | 66 |
Contract fulfillment assets | 9,232 | 6,848 |
Other assets | 2,898 | 2,972 |
Total assets | 56,043 | 53,686 |
Liabilities and stockholders’ equity | ||
Current portion of long-term debt | 147 | |
Accounts payable | 19,847 | 21,126 |
Accrued liabilities | 12,233 | 10,692 |
Current portion of lease liability | 55 | 66 |
Deferred revenue | 12 | 31 |
Total current liabilities | 32,147 | 32,062 |
Income tax payable | 1,528 | 1,429 |
Accrued severance | 150 | |
Total liabilities | 33,675 | 33,641 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value per share; 100,000,000 shares authorized: and 43,081,083 and 40,774,687 shares issued and outstanding at December 31, 2023 and 2022, respectively | 43 | 41 |
Preferred stock, $0.001 par value per share, 5,000,000 shares authorized: and no shares issued and outstanding at December 31, 2023 and 2022, respectively | ||
Additional paid-in capital | 272,285 | 269,874 |
Accumulated deficit | (249,960) | (249,870) |
Total stockholders’ equity | 22,368 | 20,045 |
Total liabilities and stockholders’ equity | $ 56,043 | $ 53,686 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 43,081,083 | 40,774,687 |
Common stock, shares outstanding | 43,081,083 | 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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net revenues | $ 93,632 | $ 69,828 |
Cost of revenues | 74,308 | 58,205 |
Gross profit | 19,324 | 11,623 |
Operating expenses: | ||
Research and development | 1,772 | 7,973 |
Sales and marketing | 8,768 | 7,274 |
General and administrative | 8,271 | 10,666 |
Total operating expenses | 18,811 | 25,913 |
Net income (loss) from operations | 513 | (14,290) |
Interest expense | (15) | (97) |
Other income (expense), net | (214) | 484 |
Net income (loss) before income taxes | 284 | (13,903) |
Income tax expense | (374) | (184) |
Net loss | $ (90) | $ (14,087) |
Net loss per share: | ||
Basic | $ 0 | $ (0.49) |
Diluted | $ 0 | $ (0.49) |
Weighted-average shares used in computing net loss per share: | ||
Basic | 41,689,386 | 28,889,111 |
Diluted | 41,689,386 | 28,889,111 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2021 | $ 19 | $ 253,416 | $ (234,805) | $ 18,630 |
Balance, shares at Dec. 31, 2021 | 18,808,885 | |||
Issuance of common stock, net of issuance costs | $ 21 | 14,394 | 14,415 | |
Issuance of common stock, net of issuance costs, shares | 20,878,638 | |||
Issuance of common stock, compensation | $ 1 | 513 | 514 | |
Issuance of common stock, compensation, shares | 800,622 | |||
Net settlement of common stock upon release of RSU | ||||
Net settlement of common stock upon release of RSU, shares | 286,542 | |||
Adoption of ASC 842 – leases (See Note 6) | (978) | (978) | ||
Stock-based compensation | 1,551 | 1,551 | ||
Net loss | (14,087) | (14,087) | ||
Balance at Dec. 31, 2022 | $ 41 | 269,874 | (249,870) | 20,045 |
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 | 619,042 | |||
Stock-based compensation | 1,496 | 1,496 | ||
Net loss | (90) | (90) | ||
Issuance of common stock for payment of services | $ 1 | 497 | 498 | |
Issuance of common stock for payment of services, shares | 687,354 | |||
Issuance of common stock upon exercise of stock options | $ 1 | 418 | 419 | |
Issuance of common stock upon exercise of stock options, shares | 1,000,000 | |||
Balance at Dec. 31, 2023 | $ 43 | $ 272,285 | $ (249,960) | $ 22,368 |
Balance, shares at Dec. 31, 2023 | 43,081,083 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (90) | $ (14,087) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,206 | 2,375 |
Stock-based compensation | 1,496 | 1,551 |
Loss on disposal of assets | 130 | |
Stock issued for services | 388 | 514 |
Gain on termination of lease | (730) | |
Credit losses | 159 | 5 |
Other | 97 | (788) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,030) | (11,635) |
Non-trade receivable | 1,308 | (14) |
Inventory | (2,607) | 1,634 |
Prepaid expenses and other current assets | 426 | 4,045 |
Contract fulfillment assets | (4,543) | (6,236) |
Other assets | (43) | (448) |
Accounts payable | (1,279) | 11,653 |
Accrued liabilities | 1,380 | (369) |
Deferred revenue | (19) | 20 |
Income tax payable | 99 | 20 |
Net cash used in operating activities | (4,052) | (12,360) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (36) | (8) |
Net cash used in investing activities | (36) | (8) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of costs | 14,415 | |
Proceeds from exercise of stock options | 419 | |
Repayment of long-term debt | (147) | (67) |
Net cash provided by financing activities | 272 | 14,348 |
Net increase (decrease) in cash and cash equivalents | (3,816) | 1,980 |
Cash and cash equivalents at beginning of the year | 13,213 | 11,233 |
Cash and cash equivalents at end of the year | 9,397 | 13,213 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 15 | 97 |
Cash paid for income taxes | $ 42 | $ 151 |
The Company and its significant
The Company and its significant accounting policies | 12 Months Ended |
Dec. 31, 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 9,397 To provide additional liquidity to allow the Company to accelerate expansion into Europe and other markets, management is currently evaluating various funding alternatives and may seek to raise additional funds through issuances of equity, mezzanine or debt securities, or through arrangements with strategic or investment partners with greater sources of financing. The Company’s ability to obtain additional financing in the debt and equity capital markets is subject to several factors, including market and economic conditions, the Company’s performance and investor sentiment with respect to the Company and its industry. Financial Statement Presentation Principles of Consolidation Reclassifications Estimates Concentrations of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are deposited with high-quality, federally insured commercial banks in the United States and cash balances are in excess of federal insurance limits as of December 31, 2023 and 2022. On March 10, 2023, SVB was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. If any of the financial institutions with whom the Company does business were to be placed into receivership, then the Company may be unable to access the cash that it has on deposit with such institutions. The Company generally does not require collateral or other security in support of accounts receivable. To reduce credit risk, management performs ongoing credit evaluations of its customers’ financial condition. Segment Information Cash and Cash Equivalents 1,131 1,061 Accounts Receivable and Allowance for Credit Losses Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Inventory The Company periodically reviews its inventory for potential slow-moving or obsolete items and writes down specific items to net realizable value, as appropriate. The Company writes down inventory based on forecasted demand and technological obsolescence. These factors are impacted by market and economic conditions, technology changes, new product introductions, and changes in strategic direction, and require estimates that may include uncertain elements. Actual demand may differ from forecasted demand and such differences may have a material effect on recorded inventory values. Any write-down of inventory to the lower of cost or net realizable value creates a new cost basis that subsequently would not be marked up based on changes in underlying facts and circumstances. Property and Equipment 24 36 Leases Non-recurring Engineering (“NRE”) Tooling and Purchased Software Licenses 12 13 110 13 Long-lived Assets Revenue Recognition Revenue from Contracts with Customers The Company recognizes revenue primarily from the sale of products, including its mobile phones, tablets, and accessories. The Company also recognizes revenue from other contractual arrangements that may include a combination of products and NRE services or from the provision of solely NRE services. Revenue recognition incorporates discounts, price protection and customer incentives. In addition to cooperative marketing and other incentive programs, the Company has arrangements with some distributors, which allow for price protection and limited rights of return, generally through stock rotation programs. Under the price protection programs, the Company gives distributors credits for the difference between the original price paid and the Company’s then current price. Under the stock rotation programs, certain distributors are able to exchange certain products based on the number of qualified purchases made during the period. The Company’s handsets typically require a technical approval process. This process entails design and configuration activities required to conform the Company’s devices to a wireless carrier customer’s specific network requirements. Each wireless carrier defines its own specific functional requirements and certification process in order for the product to be ready for manufacture. While the technical approval process does involve some level of customization, in addition to design and configuration, the Company does not charge separately and is not reimbursed for these activities to the extent that they do not involve significant customization and does not incur these costs in advance of entering into binding agreements with its wireless carrier customers. Such technical approval is obtained prior to shipment. Revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for its arrangements, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Cost of Revenues Advertising no Shipping and Handling Costs Deferred Revenues Research and Development Stock-Based Compensation Warranty Utilizing actual service records, the Company calculates the average service hours and parts expense per system to determine the estimated warranty charge. The Company updates these estimated charges periodically. The actual product performance and/or field expense profiles may differ, and in those cases the Company adjusts warranty accruals accordingly. From time to time, the Company ships mobile devices to its customers as seed stock. The seed stock represents extra units of mobile devices beyond the original mobile devices ordered by the customer and are primarily used to facilitate warranty coverage of mobile devices received by the Company’s customers from their direct customers. The warranty liability account balance is based on management’s estimates of the lifetime return rate for each model and the cost to repair each returned model. These assumptions are based on historical rates for similar products and on actual return rates. If the estimated cost to repair each unit increased by 10 52 10 52 10 Comprehensive Income or Loss Foreign currency translation 235 102 Sales taxes Income taxes Compliance with income tax regulations requires the Company to make decisions relating to the transfer pricing of revenue and expenses between each of its legal entities that are located in several countries. The Company’s determinations include many decisions based on management’s knowledge of the underlying assets of the business, the legal ownership of these assets, and the ultimate transactions conducted with customers and other third parties. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in multiple tax jurisdictions. The Company may be periodically reviewed by domestic and foreign tax authorities regarding the amount of taxes due. These reviews may include questions regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the exposure associated with various filing positions, the Company records estimated reserves when it is more likely than not that an uncertain tax position will not be sustained upon examination by a taxing authority. Such estimates are subject to change. See Note 11. Net Loss per Share New accounting pronouncements Pronouncements not yet adopted: In November 2023, the FASB issued ASU 2023-07, Segment Reporting Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09 , Income Taxes : Improvements to Income Tax Disclosures. |
Revenue recognition
Revenue recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | NOTE 2 Revenue recognition The Company recognizes revenue primarily from the sale of products, including mobile phones, scanners, and 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 ASC 606. The Company also recognizes revenue from other contracts that may include a combination of products and 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 distinct 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 years ended December 31, 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 model phones. 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 generally does not offer a right of return to its customers, except for certain distributors where the company estimates future returns and reduces revenue on sales subject to return and maintains a reserve for returns allowance. 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. The 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, its 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 net revenues The following table presents net revenues disaggregate by product category: Schedule of Net Revenue Disaggregate by Product Category 2023 2022 Year Ended December 31, 2023 2022 Smartphones $ 31,410 $ 17,763 Feature Phones 15,765 21,252 Tablets 44,818 29,475 Accessories/Other 1,639 1,338 Total Net Revenues $ 93,632 $ 69,828 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. 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 and general and administrative expenses. The non-recurring costs associated with design and development of new products for technical approval, represent costs to fulfill a contract pursuant to ASC 340-40, Other Assets and Deferred Costs four years The total capitalized costs to fulfill a contract are primarily associated with the Company’s introduction of the XP10, XP5plus, and XP3plus model phones. As of December 31, 2023 and 2022, the total costs to fulfill a contract included in Contract Fulfillment Assets were $ 9,232 6,848 Contract balances The Company records accounts receivable when it has an unconditional right to consideration. As of December 31, 2023, and 2022, the Company does not have a contract receivable balance. 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 Consolidated Balance Sheets. As of December 31, 2023 and December 31, 2022, the contract liabilities were $ 12 31 The following table is a roll forward of contract liabilities: Schedule of Contract Liabilities 2023 2022 Beginning Balance, January 1 $ 31 $ 11 Recognition of revenue (490 ) (1,001 ) Addition of revenue 473 1,021 Ending Balance, December 31 $ 12 $ 31 |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 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 asset’s 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 for the years ended December 31, 2023 and 2022. Money market funds are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices. 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 and liabilities at fair value: Summary of Fair Value Assets and Liabilities Level 1 Level 2 Level 3 Total December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 102 $ — $ — $ 102 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 consolidated balance sheets. |
Significant Balance Sheet Compo
Significant Balance Sheet Components | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 December 31, 2023 2022 Devices — $ 5,324 $ 3,473 Raw materials 751 14 Accessories 442 423 Inventory, Net $ 6,517 $ 3,910 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 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 4 Prepaid expenses and other current assets consisted of the following: Schedule of Prepaid Expenses and Other Current Assets 2023 2022 December 31, 2023 2022 Deposits for manufacturing inventory $ 197 $ — Prepaid taxes 361 433 Refundable value added taxes — 45 Prepaid licenses and royalties 125 366 Director and officer insurance 272 250 Prepaid parts (direct buy) 77 193 Prepaid consulting services 110 — Other 466 520 Prepaid expenses and other current assets $ 1,608 $ 1,807 Property and equipment consisted of the following: Schedule of Property and Equipment 2023 2022 December 31, 2023 2022 Computer equipment $ 156 $ 412 Software 27 — Software [Member] 27 — Furniture, fixtures, and office equipment 353 175 Property and equipment, gross 536 587 Less: accumulated depreciation and amortization (465 ) (419 ) Property and equipment, net $ 71 $ 168 Depreciation and amortization expense of property and equipment for the years ended December 31, 2023 and 2022, was $ 47 244 4,751 4,621 130 Contract fulfillment assets are capitalized costs to test and obtain certification for cell phones and data devices with specific carriers. These costs are amortized over the estimated life of the device, which is four years. Contract fulfillment assets for the years ended December 31, 2023 and 2022 are $ 9,232 6,848 2,159 1,733 Other assets consisted of the following: Schedule of Other Assets 2023 2022 December 31, 2023 2022 Advances to third-party manufacturer $ 2,000 $ 2,000 Director and officer insurance 408 525 Deposits 325 311 Other 165 136 Total Other Assets $ 2,898 $ 2,972 Accrued liabilities consisted of the following: Schedule of Accrued Expenses 2023 2022 December 31, 2023 2022 Customer allowances $ 8,148 $ 4,130 Employee-related liabilities 1,755 1,365 Warranties 518 636 Accrual for goods received not invoiced 325 301 Contractual obligations 59 1,107 Royalties 327 256 Contract fulfillment costs 568 1,469 Credits due to customers 122 961 Returns allowance 6 6 Legal 168 296 Other 237 165 Accrued liabilities $ 12,233 $ 10,692 The table below sets forth the activity in the warranty liability, which is included in Accrued Liabilities on the Consolidated Balance Sheets: Schedule of Warrant Liability Included in Accrued Expenses on Consolidated Balance Sheet 2023 2022 Beginning Balance, January 1 $ 636 $ 836 Additions 1,057 1,493 Cost of warranty claims (1,175 ) (1,693 ) Ending Balance, December 31 $ 518 $ 636 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Accounts Receivable | NOTE 5— Accounts Receivable The following table presents the components of the Company’s receivables: Schedule of Accounts Receivable 2023 2022 December 31, 2023 2022 Trade receivables $ 25,576 $ 22,546 Allowance for credit losses (272 ) (113 ) Accounts receivable, net 25,304 22,433 Non-trade receivables 961 2,269 Total accounts receivable $ 26,265 $ 24,702 As of January 1, 2022, accounts receivable, net, was $ 10,803 2,255 The Company has non-trade receivables from manufacturing vendors resulting from the sale of components to the vendors who manufacture and assemble final products for the Company. During 2023, the Company implemented ASC 326 and accrued an allowance for credit losses. The Company determined the probability of default for each pool of receivables with similar risk characteristics. The probability of loss was applied to the value of the receivables and an allowance for potential credit losses was recorded with the offset to credit loss expense. The following table displays the roll forward of the allowance for credit losses on the Company’s trade receivables during the year ended December 31, 2023: Schedule of Allowance For Credit Losses on Trade Receivables Beginning Balance, January 1, 2023 $ 113 Provision for credit losses 159 Ending Balance, December 31, 2023 $ 272 Trade receivables from the customer that purchases tablets from the Company accounts for 69 84 15 17,443 11,308 11,308 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | NOTE 6— Leases All of the Company’s leases are for office space. The Company entered into a sublease for a right of use asset in September 2021 that had sublease income that was significantly less than the head lease payments. On August 31, 2022, the Company entered into an agreement with the landlord to cancel the head lease for $ 260 730 The following table shows the activity of the ROU assets: Schedule of Right of Use Assets December 31, 2023 2022 Beginning Balance, January 1 $ 66 $ — Adoption of ASC 842 — 1,805 Derecognition of deferred rent liability — (142 ) Impairment of ROU asset — (978 ) Derecognition on cancelation of lease — (221 ) Additions 255 — Amortization (266 ) (398 ) Ending Balance, December 31 $ 55 $ 66 The following table shows the activity of the lease liability: Schedule of Lease Liability December 31, 2023 2022 Beginning Balance, January 1 $ 66 $ — Adoption of ASC 842 — 1,805 Derecognition on cancelation of lease — (1,211 ) Additions 255 — Principal payments (266 ) (528 ) Ending Balance, December 31 55 66 Less short-term portion 55 66 Long-term lease liability $ — $ — Future minimum lease payments under noncancelable operating lease commitments were as follows as of December 31, 2023: Schedule of Future Minimum Lease Payments under Noncancelable Operating Lease Commitments 2024 $ 56 Total undiscounted minimum lease commitments $ 56 Effect of discounting (1 ) Lease liabilities at December 31, 2023 $ 55 In connection with leases, for the year ended December 31, 2023 and 2022, the Company recognized $ 266 398 143 11 80 0.2 8.5 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 7— Borrowings Long-Term Debt Promissory Notes Payable 736 two four years 8 The components of the long-term debt balance were as follows as of December 31: Schedule of Components of Long-term Debt 2023 2022 Promissory note payable $ — $ 147 Less current portion — (147 ) Total long-term debt $ — $ — |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Preferred Stock And Stockholders Equity | |
Convertible Preferred Stock and Stockholders’ Equity | NOTE 8— Convertible Preferred Stock and Stockholders’ Equity On November 2, 2018, the Company amended and restated its previous certificate of incorporation and adjusted its authorized capital stock (par value of $ 0.001 100,000,000 5,000,000 no The following table shows shares of common stock reserved as of: Schedule of Common Stock Reserved 2023 2022 December 31, 2023 2022 Shares subject to options to purchase common stock 5,146,382 4,476,215 Unvested restricted stock units 681,846 860,888 Shares subject to warrants to purchase common stock 2 2 Total 5,828,230 5,337,105 |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | NOTE 9— Stockholders’ Equity On April 13, 2022, the Company entered into a subscription agreement (the “Subscription Agreement”) with AJP Holding Company, LLC (“AJP”) whereby, subject to the terms thereof, AJP agreed to purchase from the Company an aggregate of 20,833,333 0.84 17,500 Pursuant to the terms and conditions set forth in the Subscription Agreement, the Purchased Shares were issued in two tranches: (i) 14,880,952 12,500 5,952,381 5,000 The first closing was completed on July 13, 2022, and the second closing was completed on August 8, 2022. In connection with the closings, the Company incurred approximately $ 3,130 Upon completion of the transaction, AJP controlled approximately 52 47 On July 13, 2022, Robert Tirva, the CFO and President of the Company, resigned and became eligible for $ 1,000 1,200 On July 13, 2022, two of the Company’s Board Members resigned and the remaining Board of Directors appointed three new Board Members, including a representative of AJP. On July 14, 2022, the Board of Directors appointed two additional Board Members including Peter Liu, the Company’s Chief Executive Officer. On September 23, 2021, the company entered into a Sales Agreement with the Sales Agent, to sell shares of its common stock, $ 0.001 41,637 3.0 45,305 0.99 45 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | NOTE 10— Stock-based Compensation As of December 31, 2023, the Company had the 2012 Equity Incentive Plan (the “2012 Option Plan”), 2019 Equity Incentive Plan (the “2019 Option Plan”) and the 2019 Employee Stock Purchase Plan (“ESPP”) in place. The 2019 Option Plan provides for the grant of incentive and non-statutory stock options (“Options”), stock appreciation rights (“SAR”), restricted stock awards (“RSA”), and restricted stock unit awards (“RSU”) to employees, nonemployee directors, and consultants of the Company. Option awards granted under the 2019 Option Plan generally become exercisable ratably over a two four ten years no 100 110 five years The Board of Directors adopted, and its stockholders approved, the ESPP and the 2019 Option Plan in March 2019 and April 2019, respectively, each of which became effective in connection with the IPO. As of December 31, 2023, there were 158,337 shares of common stock available to be issued under the ESPP. The number of shares of common stock reserved for issuance under the ESPP automatically increases on January 1 of each calendar year for 10 years, starting January 1, 2020, and ending on, and including, January 1, 2029, in an amount equal to the lesser of 1 st 50,000 As of December 31, 2023, there were 1,843,128 shares of common stock available to be issued under the 2019 Option Plan, plus the number of shares subject to outstanding stock options or other stock awards that were granted under the 2012 Option Plan that are forfeited, terminated, expired or are otherwise not issued. Additionally, the number of shares of common stock reserved for issuance under the 2019 Option Plan automatically increases on January 1 of each calendar year for 10 years, starting January 1, 2020 and ending on and including January 1, 2029, in an amount equal to 5 st 2,038,734 shares and 940,444 shares, respectively. In July 2022, the Board of Directors approved an increase in the number of shares of common stock reserved for future issuance under the 2019 Option Plan by 5,000,000 shares, which was approved by the Company’s stockholders on October 26, 2022. In August 2023, the Board of Directors approved an increase in the number of shares of common stock reserved for future issuance under the 2019 Option Plan by 2,000,000 shares, which was approved by the Company’s stockholders on September 28, 2023. For the years ended December 31, 2023 and 2022, zero Stock-based compensation expense is as follows: Schedule of Stock Based Compensation Expense 2023 2022 For the Year Ended December 31, 2023 2022 Research and development $ 84 $ 18 Sales and marketing 377 68 General and administrative 934 1,426 Cost of revenues 101 39 Total $ 1,496 $ 1,551 On January 27, 2022, 415,023 254 In the third quarter of 2022, 385,599 260 260 During the year ended December 31, 2023, 457,354 230,000 498 388 110 Stock Options: Stock option activity for the years ended December 31, 2023 and 2022 is as follows: Schedule of Stock Option Activity Weighted average exercise price Weighted average remaining contractual life Aggregate Intrinsic Options per share (in years) Value * Outstanding at January 1, 2022 95,413 $ 40.00 6.73 $ 0 Options granted 4,414,419 $ 0.44 Options exercised — $ — Options forfeited (15,303 ) $ 33.65 Options cancelled (18,314 ) $ 49.67 Outstanding at December 31, 2022 4,476,215 $ 0.95 9.76 $ 358 Options granted 1,803,000 $ 0.57 Options exercised (1,125,000 ) $ 0.42 Options forfeited — $ — Options cancelled (7,833 ) $ 4.50 Outstanding at December 31, 2023 5,146,382 $ 0.93 8.94 $ 1,370 Vested and expected to vest at December 31, 2023 5,146,382 $ 0.93 8.94 $ 1,370 Exercisable at December 31, 2023 609,948 $ 4.00 8.55 $ 167 * 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. On December 26, 2023, an employee exercised 125,000 As of December 31, 2023, there was approximately $ 1,395 1.53 The total pre-tax intrinsic value of options exercised during the year ended December 31, 2023 was $ 196 The weighted average grant date fair value of options granted during the years ended December 31, 2023 and 2022 was $ 0.57 0.40 The fair value of stock options is determined using the Black-Scholes option-pricing model using various inputs, including the Company’s estimates of the fair value of common stock on the date of grant, expected term, expected volatility, risk-free interest rate, and expectations regarding future dividends. Stock-based compensation also reflects the Company’s estimate regarding the portion of awards that may be forfeited. The following describes the key inputs used by the Company: Fair Value of Common Stock—The Company measures equity classified stock-based awards granted to employees, consultants, and directors based on the estimated fair value on the date of grant, and the expense is recognized on a straight-line basis over the vesting period. Expected Term—The expected term represents the period that the Company’s stock options are expected to be outstanding. The majority of stock option grants are considered to be “plain vanilla” and thus the Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. Expected Volatility—The expected volatility was derived from the historical stock volatility of the Company’s common stock since its IPO in May 2019. Risk-Free Interest Rate—The risk-free interest rate is based on the interest yield in effect at the date of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term. Dividend Rate—The expected dividend rate was assumed to be zero, as the Company has not previously paid dividends on common stock and has no current plans to do so. Forfeiture Rate—Forfeitures are recognized when they occur. Historically, the Company estimated the forfeiture rate based on an analysis of actual forfeiture experience, analysis of employee turnover behavior, and other factors. The following represents the weighted-average assumptions used in the Black-Scholes valuation model by the Company in calculating the fair value of each stock option granted during the year ended December 31, 2023: Schedule of Fair Value Option grants Expected dividend yield 0 % Risk-free interest rate 3.81 % Expected volatility 114 % Expected life (in years) 5.6 Restricted Stock Awards: During 2022, 385,599 260 During 2023, 457,354 305 Restricted Stock Units: The Company accounts for restricted stock units (“RSUs”) issued to employees and non-employees at fair value, based on the market price of the Company’s common stock on the date of grant. The RSUs are expensed over the vesting period, and the Company accounts for forfeitures as they occur. RSUs, primarily issued as incentives, generally vest annually over one to four years. The following table summarized the outstanding RSUs as of December 31, 2023: Schedule of Outstanding Restricted Stock Units RSUs Outstanding at January 1, 2022 860,888 Granted 445,200 Released (619,042 ) Forfeited (5,200 ) Outstanding at December 31, 2023 681,846 As of December 31, 2023, there was approximately $ 391 1.15 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11— Income Taxes The following table presents the income (loss) before income taxes for domestic and foreign operations, and the components of the provision (benefit) for income taxes for the years ended December 31: Schedule of Income Tax Expense Benefit 2023 2022 Domestic loss $ (425 ) $ (13,885 ) Foreign subsidiaries income (loss) 709 (18 ) Income (loss) before income taxes $ 284 $ (13,903 ) 2023 2022 Current income tax expense: Federal $ 2 $ — State 56 21 Foreign 250 306 Total Current 308 327 Deferred income tax expense (benefit): Federal — — State — — Foreign 66 (143 ) Total Deferred 66 (143 ) Total provision for income taxes $ 374 $ 184 The Company’s effective tax rate differs from the federal statutory rate due to the following for the years ended December 31: Schedule of Effective Income Tax 2023 2022 Statutory federal income tax rate 21.00 % 21.00 % State income taxes, net of federal tax benefits 23.20 % 1.00 % Stock compensation 84.92 % -1.43 % ASC 842 Adoption 0.00 % 1.48 % Foreign rate differential 58.55 % -1.20 % GILTI Inclusion 26.15 % -0.17 % Non-deductible expenses 1.02 % 0.00 % Valuation allowance -83.07 % -22.00 % Effective tax rate 131.77 % -1.32 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities at December 31: Schedule of Components of the Company’s Deferred Tax Assets and Liabilities 2023 2022 Gross deferred tax assets: Net operating loss carryforward $ 18,887 $ 18,937 Section 174 capitalized costs 1,873 1,697 Tax credits 100 99 Accruals and reserves 1,927 2,314 Property and equipment 21 51 ASC 842 12 14 Alternative minimum tax credits 21 21 Total gross deferred tax assets 22,841 23,133 Less: valuation allowance (22,774 ) (22,996 ) Total deferred tax assets net of valuation allowance 67 137 Deferred tax liabilities: ASC 842 right of use asset (12 ) (14 ) Net deferred tax assets $ 55 $ 123 A valuation allowance is provided for deferred tax assets where the recoverability of the assets is uncertain. The determination to provide a valuation allowance is dependent upon the assessment of whether it is more likely than not that sufficient future taxable income will be generated to utilize the deferred tax assets. Based on the weight of the available evidence, which includes the Company’s historical operating losses, lack of taxable income, and the accumulated deficit, the Company provided a full valuation allowance against the U.S. deferred tax assets resulting from the accruals and reserves along with the net operating loss and credits carried forward. As of December 31, 2023 and 2022 the Company had net deferred income tax assets related primarily to net operating loss carry forwards, accruals and reserves and tax credit carryforward that are not currently being recognized of $ 22,841 23,133 The Company has not provided U.S. Federal and State income taxes, nor foreign withholding taxes on approximately $ 10,573 Estimate of cumulative foreign earnings is as follows as of December 31: Schedule of Cumulative Foreign Earnings 2023 2022 China $ 5,471 $ 5,031 India 5,102 5,098 Total $ 10,573 $ 10,129 The Company had net operating loss carryovers as follows as of December 31: Summary of Operating Loss Carryforwards 2023 2022 Federal NOL $ 88,066 $ 88,375 Domestic Tax Authority $ 88,066 $ 88,375 State NOL $ 7,086 $ 7,429 State and Local Jurisdiction $ 7,086 $ 7,429 Net operating loss carryovers $ 7,086 $ 7,429 Net operating loss carryforwards are available to offset future federal and state taxable income. Federal and state net operating loss carryforwards begin to expire in 2037 and 2035, respectively. The Company had research and development (“R&D”) credit carryforwards as follows as of December 31: Summary of Tax Credit Carryforwards 2023 2022 Federal R&D credits $ — $ — Internal Revenue Service (IRS) $ — $ — California R&D credits $ 127 $ 125 California Franchise Tax Board $ 127 $ 125 R&D credits $ 127 $ 125 Federal and state laws impose restrictions on the utilization of net operating loss carryforwards and R&D credit carryforwards in the event of a change in ownership of the Company, which constitutes an ‘ownership change’ as defined by Internal Revenue Code Section 382 and 383. The Company experienced an ownership change in the past that materially impacts the availability of its net operating losses and tax credits. The amounts indicated in the above tables reflect the reduction of net operating losses and credit carryforwards as a result of previous ownership changes that the Company experienced. Should there be additional ownership changes in the future, the Company’s ability to utilize existing carryforwards could be substantially restricted. The Company had excess interest expense carryforwards of $ 1,333 The Company has long-term income taxes payable primarily related to transfer pricing agreements with its foreign subsidiaries. Uncertain Tax Positions The Company accounts for uncertainty in income taxes in accordance with ASC 740, Income Taxes. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The following table summarizes the activity related to unrecognized tax benefits as follows as of December 31: Schedule of Unrecognized Tax Benefits 2023 2022 Unrecognized benefit-beginning of period $ 1,273 $ 1,306 Gross increases-prior period tax positions 1 — Gross (decreases)-prior period tax positions — (33 ) Unrecognized benefit-end of period $ 1,274 $ 1,273 As of December 31, 2023, $ 1 1,274 1,273 The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. The Company reported a tax expense of $ 45 220 The Company’s material income tax jurisdictions are the United States (federal and California), China and India. As a result of net operating loss and credit carryforwards, the Company is subject to audit for tax years 2014 and forward for California purposes and for 2017 and forward for federal tax purposes. The China and India tax years are open under the statute of limitations from 2017 and forward. Accounting for GILTI requires companies to adopt tax accounting policies related to: Treating the book-tax differences as either period costs or to recognize GILTI related deferred tax assets/liabilities in accounting for the GILTI book-tax differences. The Company has elected to treat this difference as a period cost. In the Company’s valuation allowance analysis, the Company will elect the Increment Cash Tax Savings Approach in determining its U.S. valuation allowance. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12 — Commitments and Contingencies The terms and conditions of applicable bylaws, certificates or articles of incorporation, agreements or applicable law may obligate Sonim under certain circumstances to indemnify its current and former directors, officers or employees, and underwriters, with respect to certain of the matters described below and Sonim has been advancing legal fees and costs to certain current and former directors, officers, employees and underwriters in connection with certain matters described below. Purchase Commitments 13,478 19,975 Royalty payments 5 1,102 622 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 1,000 At the beginning of 2021, the Company outsourced substantially all of its software development to a third-party and transferred 105 employees to support the ongoing work to be performed. In connection with outsourcing its software development, the Company entered into an agreement of future business volume over the next three years zero 1,154 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NOTE 13 — Net Loss Per Share The following table sets forth the computation of the Company’s basic and diluted net loss per share: Schedule of Computation of Basic and Diluted Net Loss Per Share 2023 2022 For the Years Ended December 31, 2023 2022 Numerator: Net loss $ (90 ) $ (14,087 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 41,689,386 28,889,111 Net loss per share, basic and diluted $ (0.00 ) $ (0.49 ) The potentially dilutive common shares that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive: Summary of Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share 2023 2022 For the Years Ended December 31, 2023 2022 Shares subject to options to purchase common stock 5,146,382 4,476,215 Unvested restricted stock units 681,846 860,888 Shares subject to warrants to purchase common stock 2 2 Total 5,828,230 5,337,105 |
Entity Level Information
Entity Level Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Entity Level Information | NOTE 14 — Entity Level Information Segment Information one Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief operating officer, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. The following table summarizes the revenue by region based on ship-to destinations for the periods ended: Schedule of Revenue by Region 2023 2022 For the Years Ended December 31, 2023 2022 United States $ 33,180 $ 29,444 Canada and Latin America 10,572 8,975 Europe and Middle East 4,299 1,202 Asia Pacific 45,581 30,207 Total net revenues $ 93,632 $ 69,828 Long-lived assets located in the United States and Asia Pacific 9,365 6,861 48 168 The composition of net revenues is as follows: Schedule of Composition of Revenues 2023 2022 For the Years Ended December 31, 2023 2022 Product $ 93,628 $ 69,797 Services 4 31 Total net revenues $ 93,632 $ 69,828 Concentrations of Revenue Risk 48 42 29 25 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15— Subsequent Events On February 6, 2024, the Company executed an agreement with its tablet customer and the manufacturer of the tablets to transfer $11,308 11,308 $6,135 1,954 On March 13, 2024, the Company received a notice from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market, LLC (“Nasdaq”) notifying the Company that it has been granted a 180-day extension to regain compliance with the bid price for its common stock to close above $ 1.00 |
The Company and its significa_2
The Company and its significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 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 9,397 To provide additional liquidity to allow the Company to accelerate expansion into Europe and other markets, management is currently evaluating various funding alternatives and may seek to raise additional funds through issuances of equity, mezzanine or debt securities, or through arrangements with strategic or investment partners with greater sources of financing. The Company’s ability to obtain additional financing in the debt and equity capital markets is subject to several factors, including market and economic conditions, the Company’s performance and investor sentiment with respect to the Company and its industry. |
Financial Statement Presentation | Financial Statement Presentation |
Principles of Consolidation | Principles of Consolidation |
Reclassifications | Reclassifications |
Estimates | Estimates |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are deposited with high-quality, federally insured commercial banks in the United States and cash balances are in excess of federal insurance limits as of December 31, 2023 and 2022. On March 10, 2023, SVB was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. If any of the financial institutions with whom the Company does business were to be placed into receivership, then the Company may be unable to access the cash that it has on deposit with such institutions. The Company generally does not require collateral or other security in support of accounts receivable. To reduce credit risk, management performs ongoing credit evaluations of its customers’ financial condition. |
Segment Information | Segment Information |
Cash and Cash Equivalents | Cash and Cash Equivalents 1,131 1,061 |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Inventory | Inventory The Company periodically reviews its inventory for potential slow-moving or obsolete items and writes down specific items to net realizable value, as appropriate. The Company writes down inventory based on forecasted demand and technological obsolescence. These factors are impacted by market and economic conditions, technology changes, new product introductions, and changes in strategic direction, and require estimates that may include uncertain elements. Actual demand may differ from forecasted demand and such differences may have a material effect on recorded inventory values. Any write-down of inventory to the lower of cost or net realizable value creates a new cost basis that subsequently would not be marked up based on changes in underlying facts and circumstances. |
Property and Equipment | Property and Equipment 24 36 |
Leases | Leases |
Non-recurring Engineering (“NRE”) Tooling and Purchased Software Licenses | Non-recurring Engineering (“NRE”) Tooling and Purchased Software Licenses 12 13 110 13 |
Long-lived Assets | Long-lived Assets |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers The Company recognizes revenue primarily from the sale of products, including its mobile phones, tablets, and accessories. The Company also recognizes revenue from other contractual arrangements that may include a combination of products and NRE services or from the provision of solely NRE services. Revenue recognition incorporates discounts, price protection and customer incentives. In addition to cooperative marketing and other incentive programs, the Company has arrangements with some distributors, which allow for price protection and limited rights of return, generally through stock rotation programs. Under the price protection programs, the Company gives distributors credits for the difference between the original price paid and the Company’s then current price. Under the stock rotation programs, certain distributors are able to exchange certain products based on the number of qualified purchases made during the period. The Company’s handsets typically require a technical approval process. This process entails design and configuration activities required to conform the Company’s devices to a wireless carrier customer’s specific network requirements. Each wireless carrier defines its own specific functional requirements and certification process in order for the product to be ready for manufacture. While the technical approval process does involve some level of customization, in addition to design and configuration, the Company does not charge separately and is not reimbursed for these activities to the extent that they do not involve significant customization and does not incur these costs in advance of entering into binding agreements with its wireless carrier customers. Such technical approval is obtained prior to shipment. Revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for its arrangements, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. |
Cost of Revenues | Cost of Revenues |
Advertising | Advertising no |
Shipping and Handling Costs | Shipping and Handling Costs |
Deferred Revenues | Deferred Revenues |
Research and Development | Research and Development |
Stock-Based Compensation | Stock-Based Compensation |
Warranty | Warranty Utilizing actual service records, the Company calculates the average service hours and parts expense per system to determine the estimated warranty charge. The Company updates these estimated charges periodically. The actual product performance and/or field expense profiles may differ, and in those cases the Company adjusts warranty accruals accordingly. From time to time, the Company ships mobile devices to its customers as seed stock. The seed stock represents extra units of mobile devices beyond the original mobile devices ordered by the customer and are primarily used to facilitate warranty coverage of mobile devices received by the Company’s customers from their direct customers. The warranty liability account balance is based on management’s estimates of the lifetime return rate for each model and the cost to repair each returned model. These assumptions are based on historical rates for similar products and on actual return rates. If the estimated cost to repair each unit increased by 10 52 10 52 10 |
Comprehensive Income or Loss | Comprehensive Income or Loss |
Foreign currency translation | Foreign currency translation 235 102 |
Sales taxes | Sales taxes |
Income taxes | Income taxes Compliance with income tax regulations requires the Company to make decisions relating to the transfer pricing of revenue and expenses between each of its legal entities that are located in several countries. The Company’s determinations include many decisions based on management’s knowledge of the underlying assets of the business, the legal ownership of these assets, and the ultimate transactions conducted with customers and other third parties. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in multiple tax jurisdictions. The Company may be periodically reviewed by domestic and foreign tax authorities regarding the amount of taxes due. These reviews may include questions regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the exposure associated with various filing positions, the Company records estimated reserves when it is more likely than not that an uncertain tax position will not be sustained upon examination by a taxing authority. Such estimates are subject to change. See Note 11. |
Net Loss per Share | Net Loss per Share |
New accounting pronouncements | New accounting pronouncements Pronouncements not yet adopted: In November 2023, the FASB issued ASU 2023-07, Segment Reporting Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09 , Income Taxes : Improvements to Income Tax Disclosures. |
Revenue recognition (Tables)
Revenue recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Net Revenue Disaggregate by Product Category | The following table presents net revenues disaggregate by product category: Schedule of Net Revenue Disaggregate by Product Category 2023 2022 Year Ended December 31, 2023 2022 Smartphones $ 31,410 $ 17,763 Feature Phones 15,765 21,252 Tablets 44,818 29,475 Accessories/Other 1,639 1,338 Total Net Revenues $ 93,632 $ 69,828 |
Schedule of Contract Liabilities | The following table is a roll forward of contract liabilities: Schedule of Contract Liabilities 2023 2022 Beginning Balance, January 1 $ 31 $ 11 Recognition of revenue (490 ) (1,001 ) Addition of revenue 473 1,021 Ending Balance, December 31 $ 12 $ 31 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 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 and liabilities at fair value: Summary of Fair Value Assets and Liabilities Level 1 Level 2 Level 3 Total December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 102 $ — $ — $ 102 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 consolidated balance sheets. |
Significant Balance Sheet Com_2
Significant Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | Inventory consisted of the following: Schedule of Inventory 2023 2022 December 31, 2023 2022 Devices — $ 5,324 $ 3,473 Raw materials 751 14 Accessories 442 423 Inventory, Net $ 6,517 $ 3,910 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: Schedule of Prepaid Expenses and Other Current Assets 2023 2022 December 31, 2023 2022 Deposits for manufacturing inventory $ 197 $ — Prepaid taxes 361 433 Refundable value added taxes — 45 Prepaid licenses and royalties 125 366 Director and officer insurance 272 250 Prepaid parts (direct buy) 77 193 Prepaid consulting services 110 — Other 466 520 Prepaid expenses and other current assets $ 1,608 $ 1,807 |
Schedule of Property and Equipment | Property and equipment consisted of the following: Schedule of Property and Equipment 2023 2022 December 31, 2023 2022 Computer equipment $ 156 $ 412 Software 27 — Software [Member] 27 — Furniture, fixtures, and office equipment 353 175 Property and equipment, gross 536 587 Less: accumulated depreciation and amortization (465 ) (419 ) Property and equipment, net $ 71 $ 168 |
Schedule of Other Assets | Other assets consisted of the following: Schedule of Other Assets 2023 2022 December 31, 2023 2022 Advances to third-party manufacturer $ 2,000 $ 2,000 Director and officer insurance 408 525 Deposits 325 311 Other 165 136 Total Other Assets $ 2,898 $ 2,972 |
Schedule of Accrued Expenses | Accrued liabilities consisted of the following: Schedule of Accrued Expenses 2023 2022 December 31, 2023 2022 Customer allowances $ 8,148 $ 4,130 Employee-related liabilities 1,755 1,365 Warranties 518 636 Accrual for goods received not invoiced 325 301 Contractual obligations 59 1,107 Royalties 327 256 Contract fulfillment costs 568 1,469 Credits due to customers 122 961 Returns allowance 6 6 Legal 168 296 Other 237 165 Accrued liabilities $ 12,233 $ 10,692 |
Schedule of Warrant Liability Included in Accrued Expenses on Consolidated Balance Sheet | The table below sets forth the activity in the warranty liability, which is included in Accrued Liabilities on the Consolidated Balance Sheets: Schedule of Warrant Liability Included in Accrued Expenses on Consolidated Balance Sheet 2023 2022 Beginning Balance, January 1 $ 636 $ 836 Additions 1,057 1,493 Cost of warranty claims (1,175 ) (1,693 ) Ending Balance, December 31 $ 518 $ 636 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Schedule of Accounts Receivable | The following table presents the components of the Company’s receivables: Schedule of Accounts Receivable 2023 2022 December 31, 2023 2022 Trade receivables $ 25,576 $ 22,546 Allowance for credit losses (272 ) (113 ) Accounts receivable, net 25,304 22,433 Non-trade receivables 961 2,269 Total accounts receivable $ 26,265 $ 24,702 |
Schedule of Allowance For Credit Losses on Trade Receivables | The following table displays the roll forward of the allowance for credit losses on the Company’s trade receivables during the year ended December 31, 2023: Schedule of Allowance For Credit Losses on Trade Receivables Beginning Balance, January 1, 2023 $ 113 Provision for credit losses 159 Ending Balance, December 31, 2023 $ 272 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of Right of Use Assets | The following table shows the activity of the ROU assets: Schedule of Right of Use Assets December 31, 2023 2022 Beginning Balance, January 1 $ 66 $ — Adoption of ASC 842 — 1,805 Derecognition of deferred rent liability — (142 ) Impairment of ROU asset — (978 ) Derecognition on cancelation of lease — (221 ) Additions 255 — Amortization (266 ) (398 ) Ending Balance, December 31 $ 55 $ 66 |
Schedule of Lease Liability | The following table shows the activity of the lease liability: Schedule of Lease Liability December 31, 2023 2022 Beginning Balance, January 1 $ 66 $ — Adoption of ASC 842 — 1,805 Derecognition on cancelation of lease — (1,211 ) Additions 255 — Principal payments (266 ) (528 ) Ending Balance, December 31 55 66 Less short-term portion 55 66 Long-term lease liability $ — $ — |
Schedule of Future Minimum Lease Payments under Noncancelable Operating Lease Commitments | Future minimum lease payments under noncancelable operating lease commitments were as follows as of December 31, 2023: Schedule of Future Minimum Lease Payments under Noncancelable Operating Lease Commitments 2024 $ 56 Total undiscounted minimum lease commitments $ 56 Effect of discounting (1 ) Lease liabilities at December 31, 2023 $ 55 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Long-term Debt | The components of the long-term debt balance were as follows as of December 31: Schedule of Components of Long-term Debt 2023 2022 Promissory note payable $ — $ 147 Less current portion — (147 ) Total long-term debt $ — $ — |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Preferred Stock And Stockholders Equity | |
Schedule of Common Stock Reserved | The following table shows shares of common stock reserved as of: Schedule of Common Stock Reserved 2023 2022 December 31, 2023 2022 Shares subject to options to purchase common stock 5,146,382 4,476,215 Unvested restricted stock units 681,846 860,888 Shares subject to warrants to purchase common stock 2 2 Total 5,828,230 5,337,105 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation Expense | Stock-based compensation expense is as follows: Schedule of Stock Based Compensation Expense 2023 2022 For the Year Ended December 31, 2023 2022 Research and development $ 84 $ 18 Sales and marketing 377 68 General and administrative 934 1,426 Cost of revenues 101 39 Total $ 1,496 $ 1,551 |
Schedule of Stock Option Activity | Stock option activity for the years ended December 31, 2023 and 2022 is as follows: Schedule of Stock Option Activity Weighted average exercise price Weighted average remaining contractual life Aggregate Intrinsic Options per share (in years) Value * Outstanding at January 1, 2022 95,413 $ 40.00 6.73 $ 0 Options granted 4,414,419 $ 0.44 Options exercised — $ — Options forfeited (15,303 ) $ 33.65 Options cancelled (18,314 ) $ 49.67 Outstanding at December 31, 2022 4,476,215 $ 0.95 9.76 $ 358 Options granted 1,803,000 $ 0.57 Options exercised (1,125,000 ) $ 0.42 Options forfeited — $ — Options cancelled (7,833 ) $ 4.50 Outstanding at December 31, 2023 5,146,382 $ 0.93 8.94 $ 1,370 Vested and expected to vest at December 31, 2023 5,146,382 $ 0.93 8.94 $ 1,370 Exercisable at December 31, 2023 609,948 $ 4.00 8.55 $ 167 * 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 Fair Value Option grants | The following represents the weighted-average assumptions used in the Black-Scholes valuation model by the Company in calculating the fair value of each stock option granted during the year ended December 31, 2023: Schedule of Fair Value Option grants Expected dividend yield 0 % Risk-free interest rate 3.81 % Expected volatility 114 % Expected life (in years) 5.6 |
Schedule of Outstanding Restricted Stock Units | The following table summarized the outstanding RSUs as of December 31, 2023: Schedule of Outstanding Restricted Stock Units RSUs Outstanding at January 1, 2022 860,888 Granted 445,200 Released (619,042 ) Forfeited (5,200 ) Outstanding at December 31, 2023 681,846 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense Benefit | The following table presents the income (loss) before income taxes for domestic and foreign operations, and the components of the provision (benefit) for income taxes for the years ended December 31: Schedule of Income Tax Expense Benefit 2023 2022 Domestic loss $ (425 ) $ (13,885 ) Foreign subsidiaries income (loss) 709 (18 ) Income (loss) before income taxes $ 284 $ (13,903 ) 2023 2022 Current income tax expense: Federal $ 2 $ — State 56 21 Foreign 250 306 Total Current 308 327 Deferred income tax expense (benefit): Federal — — State — — Foreign 66 (143 ) Total Deferred 66 (143 ) Total provision for income taxes $ 374 $ 184 |
Schedule of Effective Income Tax | The Company’s effective tax rate differs from the federal statutory rate due to the following for the years ended December 31: Schedule of Effective Income Tax 2023 2022 Statutory federal income tax rate 21.00 % 21.00 % State income taxes, net of federal tax benefits 23.20 % 1.00 % Stock compensation 84.92 % -1.43 % ASC 842 Adoption 0.00 % 1.48 % Foreign rate differential 58.55 % -1.20 % GILTI Inclusion 26.15 % -0.17 % Non-deductible expenses 1.02 % 0.00 % Valuation allowance -83.07 % -22.00 % Effective tax rate 131.77 % -1.32 % |
Schedule of Components of the Company’s Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities at December 31: Schedule of Components of the Company’s Deferred Tax Assets and Liabilities 2023 2022 Gross deferred tax assets: Net operating loss carryforward $ 18,887 $ 18,937 Section 174 capitalized costs 1,873 1,697 Tax credits 100 99 Accruals and reserves 1,927 2,314 Property and equipment 21 51 ASC 842 12 14 Alternative minimum tax credits 21 21 Total gross deferred tax assets 22,841 23,133 Less: valuation allowance (22,774 ) (22,996 ) Total deferred tax assets net of valuation allowance 67 137 Deferred tax liabilities: ASC 842 right of use asset (12 ) (14 ) Net deferred tax assets $ 55 $ 123 |
Schedule of Cumulative Foreign Earnings | Estimate of cumulative foreign earnings is as follows as of December 31: Schedule of Cumulative Foreign Earnings 2023 2022 China $ 5,471 $ 5,031 India 5,102 5,098 Total $ 10,573 $ 10,129 |
Summary of Operating Loss Carryforwards | The Company had net operating loss carryovers as follows as of December 31: Summary of Operating Loss Carryforwards 2023 2022 Federal NOL $ 88,066 $ 88,375 Domestic Tax Authority $ 88,066 $ 88,375 State NOL $ 7,086 $ 7,429 State and Local Jurisdiction $ 7,086 $ 7,429 Net operating loss carryovers $ 7,086 $ 7,429 |
Summary of Tax Credit Carryforwards | The Company had research and development (“R&D”) credit carryforwards as follows as of December 31: Summary of Tax Credit Carryforwards 2023 2022 Federal R&D credits $ — $ — Internal Revenue Service (IRS) $ — $ — California R&D credits $ 127 $ 125 California Franchise Tax Board $ 127 $ 125 R&D credits $ 127 $ 125 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to unrecognized tax benefits as follows as of December 31: Schedule of Unrecognized Tax Benefits 2023 2022 Unrecognized benefit-beginning of period $ 1,273 $ 1,306 Gross increases-prior period tax positions 1 — Gross (decreases)-prior period tax positions — (33 ) Unrecognized benefit-end of period $ 1,274 $ 1,273 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of the Company’s basic and diluted net loss per share: Schedule of Computation of Basic and Diluted Net Loss Per Share 2023 2022 For the Years Ended December 31, 2023 2022 Numerator: Net loss $ (90 ) $ (14,087 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 41,689,386 28,889,111 Net loss per share, basic and diluted $ (0.00 ) $ (0.49 ) |
Summary of Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share | The potentially dilutive common shares that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive: Summary of Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share 2023 2022 For the Years Ended December 31, 2023 2022 Shares subject to options to purchase common stock 5,146,382 4,476,215 Unvested restricted stock units 681,846 860,888 Shares subject to warrants to purchase common stock 2 2 Total 5,828,230 5,337,105 |
Entity Level Information (Table
Entity Level Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Region | The following table summarizes the revenue by region based on ship-to destinations for the periods ended: Schedule of Revenue by Region 2023 2022 For the Years Ended December 31, 2023 2022 United States $ 33,180 $ 29,444 Canada and Latin America 10,572 8,975 Europe and Middle East 4,299 1,202 Asia Pacific 45,581 30,207 Total net revenues $ 93,632 $ 69,828 |
Schedule of Composition of Revenues | The composition of net revenues is as follows: Schedule of Composition of Revenues 2023 2022 For the Years Ended December 31, 2023 2022 Product $ 93,628 $ 69,797 Services 4 31 Total net revenues $ 93,632 $ 69,828 |
The Company and its significa_3
The Company and its significant accounting policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Date of incorporation | Aug. 05, 1999 | |
Cash and cash equivalents | $ 9,397 | $ 13,213 |
Foreign cash and cash equivalents at carrying value | 1,131 | 1,061 |
Advertising expense | $ 0 | 0 |
Warranty liability increase percentage | 10% | |
Warranty liability | $ 52 | |
Warranty liability decrease percentage | 10% | |
Foreign currency transaction | $ 235 | 102 |
Non Recurring Engineering Tooling and Purchased Software Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software costs | 12 | 13 |
Net book value | $ 110 | $ 13 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 24 months | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 36 months |
Schedule of Net Revenue Disaggr
Schedule of Net Revenue Disaggregate by Product Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total Net Revenues | $ 93,632 | $ 69,828 |
Smartphones [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Net Revenues | 31,410 | 17,763 |
Feature Phones [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Net Revenues | 15,765 | 21,252 |
Tablets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Net Revenues | 44,818 | 29,475 |
Accessories/Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Net Revenues | $ 1,639 | $ 1,338 |
Schedule of Contract Liabilitie
Schedule of Contract Liabilities (Details) - Contractual Liability [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Beginning Balance, January 1 | $ 31 | $ 11 |
Recognition of revenue | (490) | (1,001) |
Addition of revenue | 473 | 1,021 |
Ending Balance, December 31 | $ 12 | $ 31 |
Revenue recognition (Details Na
Revenue recognition (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Estimated life of a particular model phone | 4 years | |
Contract fulfillment assets | $ 9,232 | $ 6,848 |
Contract liabilities | $ 12 | $ 31 |
Summary of Fair Value Assets an
Summary of Fair Value Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | [1] | $ 102 | $ 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] | 102 | 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 consolidated balance sheets. |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Devices—for resale | $ 5,324 | $ 3,473 |
Raw materials | 751 | 14 |
Accessories | 442 | 423 |
Inventory, Net | $ 6,517 | $ 3,910 |
Schedule of Prepaid Expenses an
Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deposits for manufacturing inventory | $ 197 | |
Prepaid taxes | 361 | 433 |
Refundable value added taxes | 45 | |
Prepaid licenses and royalties | 125 | 366 |
Director and officer insurance | 272 | 250 |
Prepaid parts (direct buy) | 77 | 193 |
Prepaid consulting services | 110 | |
Other | 466 | 520 |
Prepaid expenses and other current assets | $ 1,608 | $ 1,807 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 536 | $ 587 |
Less: accumulated depreciation and amortization | (465) | (419) |
Property and equipment, net | 71 | 168 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 156 | 412 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 27 | |
Furniture, Fixtures, and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 353 | $ 175 |
Schedule of Other Assets (Detai
Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Advances to third-party manufacturer | $ 2,000 | $ 2,000 |
Director and officer insurance | 408 | 525 |
Deposits | 325 | 311 |
Other | 165 | 136 |
Total Other Assets | $ 2,898 | $ 2,972 |
Schedule of Accrued Expenses (D
Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Customer allowances | $ 8,148 | $ 4,130 |
Employee-related liabilities | 1,755 | 1,365 |
Warranties | 518 | 636 |
Accrual for goods received not invoiced | 325 | 301 |
Contractual obligations | 59 | 1,107 |
Royalties | 327 | 256 |
Contract fulfillment costs | 568 | 1,469 |
Credits due to customers | 122 | 961 |
Returns allowance | 6 | 6 |
Legal | 168 | 296 |
Other | 237 | 165 |
Accrued liabilities | $ 12,233 | $ 10,692 |
Schedule of Warrant Liability I
Schedule of Warrant Liability Included in Accrued Expenses on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Beginning Balance, January 1 | $ 636 | $ 836 |
Additions | 1,057 | 1,493 |
Cost of warranty claims | (1,175) | (1,693) |
Ending Balance, December 31 | $ 518 | $ 636 |
Significant Balance Sheet Com_3
Significant Balance Sheet Components (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Distributor product returns inventory | $ 4 | $ 4 |
Depreciation and amortization expense | 47 | 244 |
Disposed of property and equipment cost | 4,751 | |
Accumulated depreciation, disposed of property and equipment | 4,621 | |
Loss on disposal of assets | 130 | |
Contract fulfillment assets | 9,232 | 6,848 |
Amortization of contract fulfillment assets | $ 2,159 | $ 1,733 |
Schedule of Accounts Receivable
Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Credit Loss [Abstract] | |||
Trade receivables | $ 25,576 | $ 22,546 | |
Allowance for credit losses | (272) | (113) | |
Accounts receivable, net | 25,304 | 22,433 | $ 10,803 |
Non-trade receivables | 961 | 2,269 | $ 2,255 |
Total accounts receivable | $ 26,265 | $ 24,702 |
Schedule of Allowance For Credi
Schedule of Allowance For Credit Losses on Trade Receivables (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Credit Loss [Abstract] | |
Beginning Balance, January 1, 2023 | $ 113 |
Provision for credit losses | 159 |
Ending Balance, December 31, 2023 | $ 272 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Feb. 06, 2024 | Jan. 01, 2022 | |
Product Information [Line Items] | ||||
Trade receivables | $ 25,304 | $ 22,433 | $ 10,803 | |
Non-trade receivables | 961 | 2,269 | $ 2,255 | |
Accounts payable liability | 19,847 | $ 21,126 | ||
Customer [Member] | ||||
Product Information [Line Items] | ||||
Trade receivables | $ 17,443 | |||
Customer [Member] | Subsequent Event [Member] | ||||
Product Information [Line Items] | ||||
Trade receivables | $ 11,308 | |||
Accounts payable liability | $ 11,308 | |||
Customer [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Product Information [Line Items] | ||||
Accounts receivable percentage | 69% | 84% | ||
Customer One [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Product Information [Line Items] | ||||
Accounts receivable percentage | 15% |
Schedule of Right of Use Assets
Schedule of Right of Use Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases | ||
Right of use assets, Beginning balance | $ 66 | |
Right of use assets, Adoption of ASC 842 | 1,805 | |
Right of use assets, Derecognition of deferred rent liability | (142) | |
Right of use assets, Impairment of ROU asset | (978) | |
Right of use assets, Derecognition on cancelation of lease | (221) | |
Right of use assets, Additions | 255 | |
Right of use assets, Amortization | (266) | (398) |
Right of use assets, Ending balance | $ 55 | $ 66 |
Schedule of Lease Liability (De
Schedule of Lease Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases | ||
Lease liability, Opening balance | $ 66 | |
Lease liability, Adoption of ASC 842 | 1,805 | |
Lease liability, Derecognition on cancelation of lease | (1,211) | |
Lease liability, Additions | 255 | |
Lease liability, Principal payments | (266) | (528) |
Lease liability, Ending balance | 55 | 66 |
Lease liability, Less short-term portion | 55 | 66 |
Lease liability, Long term lease liability |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments under Noncancelable Operating Lease Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | |||
2024 | $ 56 | ||
Total undiscounted minimum lease commitments | 56 | ||
Effect of discounting | (1) | ||
Lease liabilities at December 31, 2023 | $ 55 | $ 66 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Leases | |||
Payments to termination of lease | $ 260 | ||
Gain (loss) on termination of lease | $ 730 | $ 730 | |
Rent expense | $ 266 | 398 | |
Variable lease payments | 143 | ||
Short-term rent payments | 11 | ||
Sublease income | $ 80 | ||
Remaining lease term | 2 months 12 days | 2 months 12 days | |
Discount rate | 8.50% | 8.50% |
Schedule of Components of Long-
Schedule of Components of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Promissory note payable | $ 147 | |
Less current portion | (147) | |
Total long-term debt |
Borrowings (Details Narrative)
Borrowings (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2019 | |
Short-Term Debt [Line Items] | |||
Notes Payable | $ 147 | ||
Promissory Notes Payable [Member] | |||
Short-Term Debt [Line Items] | |||
Notes Payable | $ 736 | ||
Promissory Notes Payable [Member] | Minimum [Member] | |||
Short-Term Debt [Line Items] | |||
Debt instrument term | 2 years | ||
Promissory Notes Payable [Member] | Maximum [Member] | |||
Short-Term Debt [Line Items] | |||
Debt instrument term | 4 years | ||
Debt Instrument, Interest Rate, Stated Percentage | 8% |
Schedule of Common Stock Reserv
Schedule of Common Stock Reserved (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Total | 5,828,230 | 5,337,105 |
Shares Subject to Options to Purchase Common Stock [Member] | ||
Total | 5,146,382 | 4,476,215 |
Unvested Restricted Stock Units [Member] | ||
Total | 681,846 | 860,888 |
Shares Subject to Warrants to Purchase Common Stock [Member] | ||
Total | 2 | 2 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders’ Equity (Details Narrative) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 02, 2018 |
Convertible Preferred Stock And Stockholders Equity | |||
Capital stock par value | $ 0.001 | ||
Common stock shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Aug. 08, 2022 | Jul. 13, 2022 | Jul. 13, 2022 | Apr. 13, 2022 | Jan. 04, 2022 | Sep. 23, 2021 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | |||||||||
Purchased shares issued, Value | $ 14,415 | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||
CFO and President [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Severance payments | $ 1,000 | $ 1,000 | |||||||
Severance costs | $ 1,200 | ||||||||
At the Market Offering Program [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of shares issued | 45,305 | ||||||||
Sales Agreement [Member] | At the Market Offering Program [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Common stock, par value | $ 0.001 | ||||||||
Percentage of gross proceeds from sale of common stock | 3% | ||||||||
Sale of stock, weighted net average price per share | $ 0.99 | ||||||||
Net proceeds received from sale of common stock | $ 45 | ||||||||
Sales Agreement [Member] | At the Market Offering Program [Member] | Maximum [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Potential offering price | $ 41,637 | ||||||||
AJP Holding Company LLC [Member] | Subscription Agreement [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of shares issued | 20,833,333 | ||||||||
Shares issued price per share | $ 0.84 | ||||||||
Purchased shares issued, Value | $ 17,500 | ||||||||
Stock issuance costs | $ 3,130 | ||||||||
Percentage for capital outstanding stock | 52% | 47% | |||||||
AJP Holding Company LLC [Member] | Subscription Agreement [Member] | First Closing [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of shares issued | 14,880,952 | ||||||||
Purchased shares issued, Value | $ 12,500 | ||||||||
AJP Holding Company LLC [Member] | Subscription Agreement [Member] | Second Closing [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of shares issued | 5,952,381 | ||||||||
Purchased shares issued, Value | $ 5,000 |
Schedule of Stock Based Compens
Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | $ 1,496 | $ 1,551 |
Research and development | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | 84 | 18 |
Sales and marketing | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | 377 | 68 |
General and administrative | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | 934 | 1,426 |
Cost of revenues | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | $ 101 | $ 39 |
Schedule of Stock Option Activi
Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Share-Based Payment Arrangement [Abstract] | ||||
Outstanding options, beginning balance | 4,476,215 | 95,413 | ||
Outstanding, Weighted average exercise price per share | $ 0.95 | $ 40 | ||
Weighted average remaining contractual life (in years) | 8 years 11 months 8 days | 9 years 9 months 3 days | 6 years 8 months 23 days | |
Outstanding, Aggregate Intrinsic Value, Beginning Balance | [1] | $ 358 | $ 0 | |
Beginning balance, Outstanding Options | 1,803,000 | 4,414,419 | ||
Options granted Weighted average exercise price per share | $ 0.57 | $ 0.44 | ||
Options exercised | (1,125,000) | |||
Options exercised, Weighted average exercise price per share | $ 0.42 | |||
Options, forfeited | (15,303) | |||
Options forfeited, Weighted average exercise price per share | $ 33.65 | |||
Options cancelled | (7,833) | (18,314) | ||
Options cancelled, Weighted average exercise price per share | $ 4.50 | $ 49.67 | ||
Outstanding options, ending balance | 5,146,382 | 4,476,215 | 95,413 | |
Outstanding, Weighted average exercise price per share | $ 0.93 | $ 0.95 | $ 40 | |
Outstanding, Aggregate Intrinsic Value, Ending Balance | [1] | $ 1,370 | $ 358 | $ 0 |
Options Vested and expected to vest | 5,146,382 | |||
Weighted average exercise price per share, vested and expected to vest | $ 0.93 | |||
Weighted average remaining contractual life, vested and expected to vest | 8 years 11 months 8 days | |||
Aggregate Intrinsic Value, Vested and expected to vest | [1] | $ 1,370 | ||
Option, exercisable | 609,948 | |||
Weighted average exercise price per share, exercisable | $ 4 | |||
Weighted average remaining contractual life (in years), exercisable | 8 years 6 months 18 days | |||
Aggregate Intrinsic Value, Exercisable | [1] | $ 167 | ||
[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 Fair Value Option g
Schedule of Fair Value Option grants (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Expected dividend yield | 0% |
Risk free interest rate | 3.81% |
Expected volatility | 114% |
Expected life (in years) | 5 years 7 months 6 days |
Schedule of Outstanding Restric
Schedule of Outstanding Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2023 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Outstanding at January 1, 2022 | 860,888 |
Granted | 445,200 |
Released | (619,042) |
Forfeited | (5,200) |
Outstanding at December 31, 2023 | 681,846 |
Stock-based Compensation (Detai
Stock-based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 26, 2023 | Jan. 27, 2022 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 31, 2023 | Jul. 31, 2022 | Jan. 01, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Common stock reserved for future issuance | 5,828,230 | 5,337,105 | |||||||
Stock option exercised | 1,125,000 | ||||||||
Stock-based compensation, unamortized | $ 1,395 | ||||||||
Unamortized stock-based compensation cost, weighted average period of recognition | 1 year 6 months 10 days | ||||||||
Pre-tax intrinsic value of options exercised | $ 196 | ||||||||
Weighted average options grant fair value | $ 0.57 | $ 0.40 | |||||||
Restricted unit value | |||||||||
Consulting Service [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Restricted unit shares | 457,354 | 385,599 | |||||||
Restricted unit value | $ 305 | $ 260 | |||||||
Consultants [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of common stock shares issued during the period | 230,000 | ||||||||
Employee [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Stock option exercised | 125,000 | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Unamortized stock-based compensation cost, weighted average period of recognition | 1 year 1 month 24 days | ||||||||
Stock-based compensation, unamortized | $ 391 | ||||||||
2019 Equity Incentive Plan [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Expiration period | 10 years | ||||||||
Shares early exercised and subject to repurchase | 0 | 0 | |||||||
Common stock reserved for future issuance | 1,843,128 | 2,000,000 | 5,000,000 | ||||||
Common stock reserved for issuance description | The number of shares of common stock reserved for issuance under the ESPP automatically increases on January 1 of each calendar year for 10 years, starting January 1, 2020, and ending on, and including, January 1, 2029, in an amount equal to the lesser of 1% of the total number of shares of capital stock outstanding on December 31st of the prior calendar year, and (ii) 50,000 shares, unless the Board of Directors or the compensation committee of the Board of Directors determines prior to such date that there will be a lesser increase, or no increase. The increase under the ESPP for both 2023 and 2022 was 50,000 shares. During 2022 and 2023, there were no purchases under the ESPP. | ||||||||
Increase in common stock reserved for issuance as a percentage of total number of shares of capital stock outstanding on the last day of the prior calendar year | 5% | ||||||||
Increase In common stock reserved for issuance of number of shares of capital stock outstanding | 2,038,734 | 940,444 | |||||||
2019 Equity Incentive Plan [Member] | Three Executives [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of shares issued | 415,023 | ||||||||
Dollar value of bonuses fixed amount | $ 254 | ||||||||
2019 Equity Incentive Plan [Member] | Consultants [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of shares issued | 385,599 | 457,354 | |||||||
Consulting fee value | $ 260 | $ 498 | |||||||
2019 Equity Incentive Plan [Member] | Consultants [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Allocated share based compensation expense | 110 | ||||||||
2019 Equity Incentive Plan [Member] | Consultants [Member] | General and administrative | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Allocated share based compensation expense | $ 388 | $ 260 | |||||||
2019 Equity Incentive Plan [Member] | Granted To Ten Percent Stockholders [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
2019 Equity Incentive Plan [Member] | Minimum [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Vesting period | 2 years | ||||||||
2019 Equity Incentive Plan [Member] | Minimum [Member] | Stock Appreciation Rights (SARs) [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Exercise price options granted from fair value common stock, percent | 100% | ||||||||
2019 Equity Incentive Plan [Member] | Minimum [Member] | Granted To Ten Percent Stockholders [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Exercise price options granted from fair value common stock, percent | 110% | ||||||||
2019 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
2019 Employee Stock Purchase Plan [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Common stock reserved for future issuance | 158,337 | ||||||||
Common stock reserved for issuance description | the number of shares of common stock reserved for issuance under the 2019 Option Plan automatically increases on January 1 of each calendar year for 10 years, starting January 1, 2020 and ending on and including January 1, 2029, in an amount equal to 5% of the total number of shares of capital stock outstanding | ||||||||
Increase in common stock reserved for issuance as a percentage of total number of shares of capital stock outstanding on the last day of the prior calendar year | 1% | ||||||||
Increase In common stock reserved for issuance of number of shares of capital stock outstanding | 50,000 | 50,000 | |||||||
Number of shares issued | 0 | 0 |
Schedule of Income Tax Expense
Schedule of Income Tax Expense Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Domestic loss | $ (425) | $ (13,885) |
Foreign subsidiaries income (loss) | 709 | (18) |
Net income (loss) before income taxes | 284 | (13,903) |
Current income tax expense: | ||
Federal | 2 | |
State | 56 | 21 |
Foreign | 250 | 306 |
Total Current | 308 | 327 |
Deferred income tax expense (benefit): | ||
Federal | ||
State | ||
Foreign | 66 | (143) |
Total Deferred | 66 | (143) |
Total provision for income taxes | $ 374 | $ 184 |
Schedule of Effective Income Ta
Schedule of Effective Income Tax (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | 21% | 21% |
State income taxes, net of federal tax benefits | 23.20% | 1% |
Stock compensation | 84.92% | (1.43%) |
ASC 842 Adoption | 0% | 1.48% |
Foreign rate differential | 58.55% | (1.20%) |
GILTI Inclusion | 26.15% | (0.17%) |
Non-deductible expenses | 1.02% | 0% |
Valuation allowance | (83.07%) | (22.00%) |
Effective tax rate | 131.77% | (1.32%) |
Schedule of Components of the C
Schedule of Components of the Company’s Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Gross deferred tax assets: | ||
Net operating loss carryforward | $ 18,887 | $ 18,937 |
Section 174 capitalized costs | 1,873 | 1,697 |
Tax credits | 100 | 99 |
Accruals and reserves | 1,927 | 2,314 |
Property and equipment | 21 | 51 |
ASC 842 | 12 | 14 |
Alternative minimum tax credits | 21 | 21 |
Total gross deferred tax assets | 22,841 | 23,133 |
Less: valuation allowance | (22,774) | (22,996) |
Total deferred tax assets net of valuation allowance | 67 | 137 |
Deferred tax liabilities: | ||
ASC 842 right of use asset | (12) | (14) |
Net deferred tax assets | $ 55 | $ 123 |
Schedule of Cumulative Foreign
Schedule of Cumulative Foreign Earnings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total | $ 10,573 | $ 10,129 |
CHINA | ||
Total | 5,471 | 5,031 |
INDIA | ||
Total | $ 5,102 | $ 5,098 |
Summary of Operating Loss Carry
Summary of Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryovers | $ 88,066 | $ 88,375 |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryovers | $ 7,086 | $ 7,429 |
Summary of Tax Credit Carryforw
Summary of Tax Credit Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
R&D credits | ||
California Franchise Tax Board | ||
Operating Loss Carryforwards [Line Items] | ||
R&D credits | $ 127 | $ 125 |
Schedule of Unrecognized Tax Be
Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized benefit-beginning of period | $ 1,273 | $ 1,306 |
Gross increases-prior period tax positions | 1 | |
Gross (decreases)-prior period tax positions | (33) | |
Unrecognized benefit-end of period | $ 1,274 | $ 1,273 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Valuation allowance | $ 22,841 | $ 23,133 | |
Income tax undistributed earnings | $ 10,573 | 10,129 | |
Federal and state net operating loss carryforwards begin to expire | Federal and state net operating loss carryforwards begin to expire in 2037 and 2035, respectively. | ||
Interest expense carryforwards | $ 1,333 | ||
Income tax examination description | The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. | ||
Unrecognized tax benefits accounted for as a reduction in deferred tax assets | $ 1 | ||
Unrecognized tax benefits | 1,274 | $ 1,273 | $ 1,306 |
Accrued interest and penalties related to unrecognized tax expense | 45 | ||
Accrued liability for Interest and penalties related to unrecognized tax benefits | $ 220 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jul. 13, 2022 | Jul. 13, 2022 | Jan. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | |||||
Purchase obligation | $ 13,478 | $ 19,975 | |||
Loss contingency, management's assessment and process | At the beginning of 2021, the Company outsourced substantially all of its software development to a third-party and transferred 105 employees to support the ongoing work to be performed. In connection with outsourcing its software development, the Company entered into an agreement of future business volume over the next three years | ||||
Contract obligation | 0 | 1,154 | |||
CFO and President [Member] | |||||
Loss Contingencies [Line Items] | |||||
Severance payments | $ 1,000 | $ 1,000 | |||
Cost of revenues | |||||
Loss Contingencies [Line Items] | |||||
Royalty expense | $ 1,102 | $ 622 | |||
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 (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Numerator: | ||
Net loss | $ (90) | $ (14,087) |
Denominator: | ||
Weighted-average shares used in computing net loss per share, basic | 41,689,386 | 28,889,111 |
Weighted-average shares used in computing net loss per share, diluted | 41,689,386 | 28,889,111 |
Net loss per share, basic | $ 0 | $ (0.49) |
Net loss per share, diluted | $ 0 | $ (0.49) |
Summary of Dilutive Common Shar
Summary of Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 5,828,230 | 5,337,105 |
Shares Subject to Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 5,146,382 | 4,476,215 |
Unvested Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 681,846 | 860,888 |
Shares Subject to Warrants to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 2 | 2 |
Entity Level Information (Detai
Entity Level Information (Details Narrative) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 1 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 48% | 42% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 29% | 25% |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Noncurrent assets | $ 9,365 | $ 6,861 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Noncurrent assets | $ 48 | $ 168 |
Schedule of Revenue by Region (
Schedule of Revenue by Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenues | $ 93,632 | $ 69,828 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenues | 33,180 | 29,444 |
Canada and Latin America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenues | 10,572 | 8,975 |
Europe and Middle East | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenues | 4,299 | 1,202 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenues | $ 45,581 | $ 30,207 |
Schedule of Composition of Reve
Schedule of Composition of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from External Customer [Line Items] | ||
Total net revenues | $ 93,632 | $ 69,828 |
Product | ||
Revenue from External Customer [Line Items] | ||
Total net revenues | 93,628 | 69,797 |
Services | ||
Revenue from External Customer [Line Items] | ||
Total net revenues | $ 4 | $ 31 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Mar. 27, 2024 | Mar. 13, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 06, 2024 | |
Subsequent Event [Line Items] | |||||
Accounts payable liability | $ 19,847 | $ 21,126 | |||
Decrease in accounts receivable | $ 3,030 | $ 11,635 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Description of nasdaq compliance | the Company received a notice from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market, LLC (“Nasdaq”) notifying the Company that it has been granted a 180-day extension to regain compliance with the bid price for its common stock to close above $1.00 per share for ten consecutive trading days. The Company will take appropriate action that may include executing a reverse stock split to regain compliance with the minimum bid price rule if the Company’s stock does not stay above $1.00 prior to the end of the second 180-day period. | ||||
Failure to maintain common stock minimum closing bid price | $ 1 | ||||
Subsequent Event [Member] | Upon Execution of Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Accounts receivable | $ 6,135 | ||||
Subsequent Event [Member] | Customer [Member] | |||||
Subsequent Event [Line Items] | |||||
Accounts receivable | 11,308 | ||||
Accounts payable liability | $ 11,308 | ||||
Decrease in accounts receivable | $ 1,954 |