Sonim Technologies Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Significant Balance Sheet Components

Significant Balance Sheet Components

12 Months Ended

Dec. 31, 2020

Significant Balance Sheet Components [Abstract]

Significant Balance Sheet Components

NOTE 4 —Significant Balance Sheet Components

Inventory consisted of the following:

	December 31
	2020		2019
Devices - for resale	$	7,792	$	13,559
Raw materials		2,590		4,522
Accessories		962		1,450
	$	11,344	$	19,531

During the year ended December 31, 2020, the Company recorded an inventory reserve adjustment of $.07 million as a result of aging materials and finished goods and accrued a loss of $0.5 million of purchase commitments in connection with end-of-life products.

During the year ended December 31, 2019, the Company recorded an inventory reserve adjustment of $3.1 million as a result of aging materials and finished goods and accrued a loss of $0.7 million of purchase commitments in connection with end-of-life products

Prepaids and other current assets consisted of the following:

	December 31
	2020		2019
Deposits for manufacturing inventory	$	1,133	$	897
Prepaid taxes		641		1,031
Refundable value added taxes		509		1,376
Prepaid – NRE		2,629		—
Prepaid licenses and royalties		728		761
Director and officer insurance		862		604
Prepaid parts (direct buy)		167		536
Other		1,076		1,225
	$	7,481	$	6,430

Property and equipment consisted of the following:

	December 31
	2020			2019
Computer equipment	$	4,858		$	5,087
Software		981			981
Furniture, fixtures, and office equipment		175			175
Leasehold Improvements		179			179
		6,193			6,422
Less: accumulated depreciation and amortization		(5,350	)		(4,980	)
	$	843		$	1,442

Depreciation expense of property and equipment for the years ended December 31, 2020 and 2019, was $426 and $621, respectively.

Accrued Expenses consisted of the following:

	December 31
	2020		2019
Customer allowances	$	3,042	$	2,647
Employee-related liabilities		2,273		1,873
Warranties		1,530		1,154
Accrual for goods received not invoiced		1,942		1,047
Contractual obligations		849		1,230
Royalties		655		657
Contractors		55		285
Research and development		61		271
Shipping		170		120
Interest		11		33
Legal		320		97
Other		528		851
	$	11,436	$	10,265

The table below sets forth the activity in the warranty liability account, which is included in accrued expenses on the Consolidated Balance Sheets for the years ended December 31, 2020 and 2019:

Balance, January 1, 2020	$	1,154
Additions		2,088
Cost of warranty claims		(1,712	)
Balance, December 31, 2020	$	1,530

Balance, January 1, 2019	$	1,103
Additions		1,157
Cost of warranty claims		(1,106	)
Balance, December 31, 2019	$	1,154