Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SONM | |
Entity Registrant Name | SONIM TECHNOLOGIES INC | |
Entity Central Index Key | 0001178697 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 66,317,949 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-38907 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, State or Province | TX | |
Entity Address, Address Line One | 6836 Bee Cave Road, Bldg. 1 | |
Entity Address, Address Line Two | S#279 | |
Entity Address, City or Town | Austin | |
Entity Tax Identification Number | 94-3336783 | |
Entity Address, Postal Zip Code | 78746 | |
City Area Code | 650 | |
Local Phone Number | 378-8100 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 13,912 | $ 22,141 |
Accounts receivable, net | 5,834 | 4,605 |
Inventory | 10,556 | 11,344 |
Prepaid expenses and other current assets | 5,961 | 7,481 |
Total current assets | 36,263 | 45,571 |
Property and equipment, net | 749 | 843 |
Other assets | 3,734 | 3,898 |
Total assets | 40,746 | 50,312 |
Liabilities and stockholders’ equity | ||
Current portion of long-term debt | 177 | 177 |
Accounts payable | 11,194 | 8,856 |
Accrued expenses | 8,540 | 11,436 |
Deferred revenue | 0 | 5 |
Total current liabilities | 19,911 | 20,474 |
Income tax payable | 1,256 | 1,243 |
Long-term debt, less current portion | 148 | 185 |
Total liabilities | 21,315 | 21,902 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity | ||
Common stock, $0.001 par value per share; 100,000,000 shares authorized: and 66,317,949 and 66,310,867 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively. | 66 | 66 |
Preferred stock, $0.001 par value per share, 5,000,000 shares authorized, and no shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively. | ||
Additional paid-in capital | 224,823 | 224,522 |
Accumulated deficit | (205,458) | (196,178) |
Total stockholders’ equity | 19,431 | 28,410 |
Total liabilities and stockholders’ equity | $ 40,746 | $ 50,312 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (UNAUDITED) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 | 66,317,949 | 66,310,867 |
Common stock, shares outstanding | 66,317,949 | 66,310,867 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net revenues | $ 12,240 | $ 12,706 |
Cost of revenues | 9,777 | 10,541 |
Gross profit | 2,463 | 2,165 |
Operating expenses: | ||
Research and development | 4,664 | 3,936 |
Sales and marketing | 2,181 | 3,131 |
General and administrative | 2,262 | 2,563 |
Legal expenses | 2,406 | 509 |
Restructuring costs | 1,087 | |
Total operating expenses | 11,513 | 11,226 |
Loss from operations | (9,050) | (9,061) |
Interest expense | (319) | |
Other expense, net | (169) | (401) |
Loss before income taxes | (9,219) | (9,781) |
Income tax expense | (61) | (183) |
Net loss | $ (9,280) | $ (9,964) |
Net loss per share, basic and diluted | $ (0.14) | $ (0.48) |
Weighted–average shares used in computing net loss per share, basic and diluted | 66,316,797 | 20,613,849 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance, beginning of period at Dec. 31, 2019 | $ 25,525 | $ 20 | $ 191,751 | $ (166,246) |
Balance, shares at Dec. 31, 2019 | 20,437,235 | |||
Issuance of common stock upon exercise of stock options | 210 | $ 1 | 209 | |
Issuance of common stock upon exercise of stock options, shares | 240,125 | |||
Employee and nonemployee stock-based compensation | 223 | 223 | ||
Net loss | (9,964) | (9,964) | ||
Balance, at end of period at Mar. 31, 2020 | 15,994 | $ 21 | 192,183 | (176,210) |
Balance, shares at Mar. 31, 2020 | 20,677,360 | |||
Balance, beginning of period at Dec. 31, 2019 | 25,525 | $ 20 | 191,751 | (166,246) |
Balance, shares at Dec. 31, 2019 | 20,437,235 | |||
Balance, at end of period at Dec. 31, 2020 | 28,410 | $ 66 | 224,522 | (196,178) |
Balance, shares at Dec. 31, 2020 | 66,310,867 | |||
Issuance of common stock upon exercise of stock options | $ 5 | 5 | ||
Issuance of common stock upon exercise of stock options, shares | 7,082 | 7,082 | ||
Employee and nonemployee stock-based compensation | $ 296 | 296 | ||
Net loss | (9,280) | (9,280) | ||
Balance, at end of period at Mar. 31, 2021 | $ 19,431 | $ 66 | $ 224,823 | $ (205,458) |
Balance, shares at Mar. 31, 2021 | 66,317,949 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (9,280) | $ (9,964) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 554 | 887 |
Stock-based compensation | 296 | 223 |
Inventory write-downs | 407 | |
Non-cash interest expense | 255 | |
Accretion of debt discount | 30 | |
Loss on disposal of asset | 18 | |
Deferred income taxes | (3) | 53 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,229) | 5,083 |
Inventory | 779 | 2,989 |
Prepaid expenses and other current assets | 1,496 | 1,367 |
Other assets | (278) | 32 |
Accounts payable | 2,338 | (1,746) |
Accrued expenses | (2,896) | 1,354 |
Deferred revenue | (5) | 15 |
Income tax payable | 13 | 90 |
Net cash provided by (used in) operating activities | (8,197) | 1,075 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (184) | |
Net cash used in investing activities | (184) | |
Cash flows from financing activities: | ||
Repayment on long-term debt | (37) | (37) |
Proceeds from exercise of stock options | 5 | 210 |
Net cash provided by (used in) financing activities | (32) | 173 |
Net increase (decrease) in cash and cash equivalents | (8,229) | 1,064 |
Cash and cash equivalents at beginning of period | 22,141 | 11,298 |
Cash and cash equivalents at end of period | 13,912 | 12,362 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 37 | $ 37 |
Cash paid for income taxes | $ 31 |
The Company and its Significant
The Company and its Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Company And Significant Accounting Policies [Abstract] | |
The Company and its significant accounting policies | SONIM TECHNOLOGIES, INC (In thousands of U.S. dollars except share and per share amounts or as otherwise disclosed) NOTE 1 —The Company and its significant accounting policies Description of Business —Sonim Technologies, Inc. (“Sonim”, “we”, “our”, or the “Company”) was incorporated in the state of Delaware on August 5, 1999 and is headquartered in Austin, Texas. The Company is a leading U.S. provider of ultra-rugged mobile phones and accessories designed specifically for task workers physically engaged in their work environments, often in mission-critical roles. We currently sell our ruggedized mobility solutions to several of the largest wireless carriers in the United States— including AT&T, T-Mobile and Verizon—as well as the three largest wireless carriers in Canada—Bell, Rogers and Telus Mobility. Our phones and accessories connect workers with voice, data and workflow applications in two end markets: industrial enterprise and public sector. In 2020, we announced that we would be entering the ruggedized barcode scanner business and we began shipping our first devices in March 2021. Our barcode scanner devices, as well as our ruggedized phones and accessories, are sold through distributors in North America, South America and Europe . The Company is closely monitoring the continuing impact of the COVID-19 global outbreak and its resulting impact on its manufacturing operations and supply chain, with its top priority being the health and safety of our employees, customers, partners, and communities. Demand for the Company’s solutions may be reduced as a result of the COVID-19 outbreak and resulting market uncertainty. It also remains possible that the Company’s results could be negatively impacted by interruptions in the global supply chain due to the continued and unpredictable spread of this pandemic. The magnitude of any future impact of the COVID-19 outbreak is unknown. The Company is working closely with its partners and suppliers to manage through this situation. Restrictions on travel and the imposition of stay-at-home or work remote conditions have impacted our operations and those of our customers. The Company has effective communications and collaboration tools in place to ensure business continuity during periods requiring remote operation. While we have not experienced major disruptions, our ability to interact with customers has been impacted by the current environment. There is a risk that our inability to meet in-person with current or prospective customers, as well as the cancellation or postponement of Company-sponsored events or third-party events at which our products are featured, may have a negative impact on our business. Liquidity The Company’s condensed consolidated financial statements account for the continuation of its business as a going concern. We are subject to the risks and uncertainties associated with the development and release of new products. Our principal source of liquidity as of March 31, 2021, consists of existing cash and cash equivalents totaling approximately $13,912. During the three months ended March 31, 2021, our net loss was $9, 280 It is likely that we will continue to experience operating losses into the future because we have not yet generated sufficient revenue levels to ensure profitability, and as a result substantial doubt exists as to our ability to continue as a going concern for a period of twelve months from the date our unaudited condensed consolidated financials are filed with Securities and Exchange Commission (the “SEC”). We are actively pursuing expanding our business and increasing our revenue opportunities while effectively managing business operations and exploring further cost saving opportunities. We may not be successful in these efforts. The accompanying unaudited interim condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. The Company plans to explore raising additional capital from the sale of equity securities or the incurrence of indebtedness to allow it to invest in growth opportunities. There can be no assurance that additional financing will be available to the Company on acceptable terms, or at all. Additionally, if the Company issues additional equity securities to raise funds, whether to existing investors or others, the ownership percentage of its existing stockholders would be reduced. New investors may demand rights, preferences, or privileges senior to those of existing holders of common stock. Further, the Company may be limited as to the amount of funds it can raise pursuant to SEC rules and the continued listing requirements of the Nasdaq Stock Market LLC (“Nasdaq”). The Company has also retained B. Riley as our investment bank to explore capital market financing ideas as well as strategic alternatives, including both buy and sell side opportunities. The Company’s management team and board of directors expects to work closely with the bankers to chart a path forward. However, there can be no assurance that the Company will be able improve its financial position and liquidity or raise additional capital. The Company’s strategic plans are not yet finalized and are subject to numerous uncertainties including conditions in the credit and capital markets. In addition, global financial crises and economic downturns, including those caused by widespread public health crises such as the COVID-19 pandemic, may cause extreme volatility and disruptions in capital and credit markets, and may impact the Company’s ability to raise additional capital when needed on acceptable terms, if at all. If the Company cannot grow its revenue run-rate or raise needed funds, it might be forced to make additional reductions in its operating expenses, which could adversely affect its ability to implement its business plan and ultimately its viability as a Company. Financial Statement Presentation— The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC for interim financial information. The unaudited interim condensed consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Significant Accounting Policies and Recent Accounting Pronouncements) included in the Company’s audited consolidated financial statements for the year ended December 31, 2020. Results of operations for interim periods are not necessarily indicative of annual results of operations. The unaudited condensed consolidated balance sheet at December 31, 2020, is extracted from the audited annual consolidated financial statements and does not include all disclosures required by U.S. GAAP for annual financial statements. Principles of Consolidation — The accompanying condensed consolidated financial statements include the accounts of Sonim Technologies. Inc. and its wholly owned foreign subsidiaries, Sonim Technologies India Private Limited, Sonim Technologies (Shenzhen) Limited, Sonim Technologies (Hong Kong) Limited, and Sonim Communications India Private Limited. All significant intercompany transactions and balances have been eliminated in consolidation. Estimates —The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates include, but are not limited to, estimates related to revenue recognition; valuation assumptions regarding the determination the useful lives of our long-lived assets; product warranties; loss contingencies; and the recognition and measurement of income tax assets and liabilities, including uncertain tax positions. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Notwithstanding the foregoing, the worldwide spread of the COVID-19 pandemic has resulted in a global slowdown of economic activity, which is likely to decrease demand for a broad variety of goods and services, including from the Company’s customers, while also disrupting sales channels and marketing activities for an unknown period of time until the disease is contained. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements Significant accounting policies — Other than the adoption of new accounting standards in New Accounting Pronouncements described in the note below, there have been no significant changes in the accounting policies from those disclosed in the audited consolidated financial statements for the year ended December 31, 2020. The 2020 Offering (“PO”) —On June 9, 2020, the Company completed an underwritten public offering (“PO’) in which the Company sold 36,800,000 shares of its common stock, at a price to the public of $0.75 per share. The offer and sale of the shares in the PO were registered under the Securities Act of 1933, as amended (the “Securities Act”) pursuant to a registration statement on Form S-1 (File No. 333-238869), which was declared effective by the SEC on June 4, 2020. The Company raised approximately $25,086 in net proceeds, after deducting underwriting discounts and commissions of $1,656 and offering expenses of approximately $719. Offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the Company’s PO, are offset against proceeds from the PO within stockholders’ equity. New accounting pronouncements: Pronouncements adopted in 2020: The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies are required to adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company that, is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. The Company did not adopt any pronouncements in 2020. Pronouncements adopted in 2021: In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) Pronouncements not yet adopted: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | NOTE 2 —Revenue recognition The Company recognizes revenue primarily from the sale of products, including its mobile phones, barcode 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 Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers. The Company also recognizes revenue from other contracts that may include a combination of products and Non-recurring Engineering (NRE) services or from the provision of solely NRE services. Where there is a combination of products and NRE services, the Company accounts for the promises as individual performance obligations if they are concluded as distinct. Performance obligations are considered distinct if they are both capable of being 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 three months ended March 31, 2021 and 2020, the Company did not have any contracts in which the products and NRE services were concluded to be a single performance obligation. In certain cases, the Company may offer tiered pricing based on volumes purchased for specific products. To date, all tiered pricing provisions have fallen into observable ranges of pricing to existing customers, thus, not resulting in any material right which could be concluded as its own performance obligation. In addition, the Company does not offer material post-contract support services to its customers. Net revenue for an individual contract is recognized at the related transaction price, which is the amount the Company expects to be entitled to in exchange for transferring the goods and/or services. The transaction price for product sales is calculated as the product selling price, net of variable consideration which may include estimates for marketing development funds, sales incentives, and price protection and stock rotation rights. The Company generally does not offer a right of return to its customers. Typically, variable consideration does not need to be constrained as estimates are based on specific contract terms. However, the Company continues to assess variable consideration estimates such that it is probable that a significant reversal of revenue will not occur. The transaction price for a contract with multiple performance obligations is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices for products are determined based on the prices charged to customers, which are directly observable. Standalone selling price of the professional services are mostly based on time and materials. We determine our 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, our 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. Revenue attributable to professional services is recognized as the Company performs the professional services to the customer. Disaggregation of revenue The following table presents our net revenue disaggregated by product category: Three Months Ended March 31, 2021 2020 (in thousands) Smartphones $ 4,369 $ 6,218 Feature Phones 6,559 5,901 Scanners 1,055 — Accessories/Other 257 587 Total Revenue $ 12,240 $ 12,706 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 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. Accordingly, the Company capitalizes these non-recurring engineering costs and amortizes such costs over the estimated period of time over which they are expected to be recovered, which is typically 4 years , the estimated life of a particular model phone. As of December 31, 2020, the total costs to fulfill a contract which were deferred and capitalized upon adoption of ASC 606 totaled $2,889 and were recorded in Other Assets. The total capitalized costs to fulfill a contract is primarily associated with Company’s introduction of the XP8 model phone. As of March 31, 2021, the total costs to fulfill a contract included in other assets were $2,480. Contract balances The Company records accounts receivable when it has an unconditional right to consideration. As of March 31, 2021 The following table is a rollforward of contract balances as of March 31, 2021: Contractual Liability Balance at, January 1, 2021 $ 5 Recognition of revenue (5 ) Addition to deferred revenue — Balance at, March 31, 2021 $ — |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2021 | |
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 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 • Quoted prices for identical or similar assets or liabilities in inactive • Inputs other than quoted prices that are observable for the asset or • Inputs that are derived principally from or corroborated by observable market data by If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The assets or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used at March 31, 2021 and 2020, and December 31, 2020. 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: March 31 , 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 6,908 $ — $ — $ 6,908 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 17,905 $ — $ — $ 17,905 * Included in cash and cash equivalents on the condensed consolidated balance |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 4 —Inventory Inventory consisted of approximately the following: March 31, 2021 December 31, 2020 Finished goods $ 7,007 $ 7,792 Raw materials 2,666 2,590 Accessories 883 962 $ 10,556 $ 11,344 |
Warranty Liability
Warranty Liability | 3 Months Ended |
Mar. 31, 2021 | |
Guarantees And Product Warranties [Abstract] | |
Warranty Liability | NOTE 5 —Warranty Liability The table below sets forth the activity in the warranty liability, which is included in accrued expenses on the condensed consolidated balance sheets, for the three months ended March 31, 2021 and 2020: Balance, January 1, 2021 $ 1,530 Additions 441 Cost of warranty claims (439 ) Balance, March 31, 2021 $ 1,532 Balance, January 1, 2020 $ 1,154 Additions 178 Cost of warranty claims (217 ) Balance, March 31, 2020 $ 1,115 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 6 —Borrowings Senior Credit Agreement In prior years, the Company maintained a loan and security agreement with East West Bank . No borrowings were made under this facility in 2020, and the facility was terminated in June Long-Term Debt Riley Loan — The Company had a Subordinated Term Loan and Security Agreement, as amended, (the “B. Riley Loan Agreement”) with B. Riley Principal Investments, LLC (“BRPI”), an affiliate of B. Riley Financial, Inc., a shareholder of the Company. Under the amended B. Riley Loan Agreement, the Company could borrow principal up to $12,000 via a subordinated secured convertible promissory note, with an optional conversion feature. The amended B. Riley Loan Agreement included repayment penalties if any repayment reduced the principal amount outstanding below $10,000. The prepayment penalty was 1% for 2019 through maturity. The borrowings under the B. Riley Loan Agreement, as amended would have matured on September 1, 2022 and carried a stated interest rate of 10% and provided that the first year of interest commencing on October 26, 2018 was compounded into the principal, with interest-only payments beginning thereafter. On June 1, 2020, the Company entered into a Note Amendment and Debt Cancellation Agreement with BRPI (the “Note Amendment”), which provided that, contingent upon the closing of the PO, the Company would repay $4 million of the outstanding indebtedness to BRPI in cash (the “B. Riley Repayment”) and the remaining principal amounts, accrued interest and other amounts outstanding under the B. Riley Loan Agreement, after giving effect to the B. Riley Repayment, would be redeemed for shares of common stock to be issued to BRPI or its affiliates at the public offering price of shares of our common stock in the PO. Pursuant to the Note Amendment, as amended, the Company made the B. Riley Repayment on June 9, 2020 and the remaining principal amount, accrued interest and other amounts outstanding under the B. Riley Loan Agreement, after giving effect to the B. Riley Repayment, in the amount of $6,170, was redeemed into 8,226,834 shares of the Company’s common stock issued to BRPI and BRC Opportunity Fund L.P., an affiliate of BRPI, (the “Redemption Shares”). Following the B. Riley Repayment and the issuance of the Redemption Shares, the Company has no outstanding indebtedness under the B. Riley Loan Agreement. Also on June 11, 2020, the Company entered into a registration rights agreement with BRPI and BRC Partners Opportunity Fund, L.P. pursuant to which the Company agreed to file a registration statement covering the resale of the Redemption Shares and to use its best efforts to cause such registration statement to become effective upon the time frames set forth in the registration rights agreement. A As of March 31, 2021, and December 31, 2020, there were no outstanding principal and interest payments due under the B. Riley Loan Agreement, as amended. Promissory Notes Payable —In 2014 and 2017, the Company entered into agreements with one of its suppliers, whereby certain of its trade payables for royalties and royalty up-front payments were converted to payment plans. In December 2018, the Company amended its accounts payable financing agreements, effective January 1, 2019, which provides for the $736 outstanding balance to be paid in twenty equal quarterly installments. The amounts due under these agreements are paid in quarterly installments over periods from two to four years, with interest ranging up to 8%. Remaining balances are $325 and $362, at March 31, 2021 and December 31, 2020, respectively. |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2021 | |
Warrants [Abstract] | |
Warrants | NOTE 7 —Warrants During the three months ended March 31, 2021 and 2020, there was no activity related to the Company’s outstanding warrants. The following table discloses warrants issued and outstanding as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Exercise Number of warrant Year of Exercise Number of warrant Year of Issuance date price shares expiration price shares expiration Common November 2012 $ 6.03 7 2028 $ 6.03 7 2028 November 2012 $ 14.50 22 2028 $ 14.50 22 2028 Total warrants 29 29 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | NOTE 8 —Stock-based Compensation As of March 31, 2021, the Company had the 2012 Equity Incentive Plan (the “2012 Equity Plan”) and 2019 Equity Incentive Plan (the “2019 Equity Plan”) and the 2019 Employee Stock Purchase Plan in place. As of March 31, 2021, the number of shares available to be issued under the 2019 Equity Plan was 6,259,229. As of March 31, 2021, the number of shares available to be issued under the 2019 Employee Stock Purchase Plan was 780,438. The 2019 Equity 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 Equity Plan generally become exercisable ratably over a two-year or four-year period following the date of grant and expire ten years from the date of grant. At the discretion of the Board of Directors, certain awards may be exercisable immediately at the date of grant but are subject to a repurchase right, under which the Company may buy back any unvested shares at their original exercise price in the event of an employee’s termination prior to full vesting. All other awards are exercisable only to the extent vested. At March 31, 2021 and December 31, 2020, there were no shares that had been early exercised that were subject to the Company’s repurchase right at that date. The exercise price or strike price for Options and SARs granted under the 2019 Equity Plan must generally be at least equal to 100% of the fair value of the Company’s common stock at the date of grant, as determined by the Board of Directors. The exercise price of incentive stock options granted under the 2019 Equity Plan to ten percent or greater stockholders must be at least equal to 110% of the fair value of the Company’s common stock at the date of grant, as determined by the Board of Directors, and are not exercisable after five years from the date of grant. The Company’s board of directors adopted, and its stockholders approved, the 2019 Employee Stock Purchase Plan and the 2019 Equity Plan in March 2019 and April 2019, respectively, each of which became effective in connection with the IPO. There are Plan as of March 31, 2021. Additionally, the number of shares of common stock reserved for issuance under the 2019 Employee Stock Purchase 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 the lesser of 1% of the total number of shares of capital stock outstanding on December 31 st As of March 31, 2021, 9,222,443 shares of common stock are reserved for future issuance under the 2019 Equity Plan, plus the number of shares subject to outstanding stock options or other stock awards that were granted under the 2012 Equity Plan that are forfeited, terminated, expire or are otherwise not issued. Additionally, the number of shares of common stock reserved for issuance under the 2019 Equity 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 on December 31 of the prior calendar year, unless the Board of Directors or compensation committee determines prior to the date of increase that there will be a lesser increase, or no increase. The increase under the 2019 Equity Plan for 2021 was 3,315,543 shares. On November 15, 2020, 128,015 shares of common stock were issued under the 2019 Employee Stock Purchase Plan. Stock-based compensation expense for the three months ended March 31, 2021 and 2020 is as follows: March 31, 2021 March 31, 2020 Research and development $ 50 $ 60 Sales and marketing 56 57 General and administrative 174 96 Cost of revenues 16 10 $ 296 $ 223 Stock Options: Stock option activity for the three months ended March 31, 2021 is as follows: Weighted average Weighted average remaining Aggregate exercise price contractual life Intrinsic Options per share (in years) Value Outstanding at January 1, 2021 1,443,940 $ 3.64 7.82 $ 24 Options granted — $ — Options exercised (7,082 ) $ 0.75 Options forfeited (4,180 ) $ 9.70 Options expired (17,792 ) $ 2.62 Outstanding at March 31, 2021 1,414,886 $ 3.65 7.66 $ 37 Vested and expected to vest at March 31, 2021 1,414,886 $ 3.65 7.66 $ 37 Exercisable at March 31, 2021 710,832 $ 4.18 6.68 $ 37 As of March 31, 2021, there was approximately $2,983 of unamortized stock-based compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of approximately three years. Restricted Stock Units: The following table summarized the outstanding RSUs as of March 31, 2021: RSUs Outstanding at January 1, 2021 2,691,375 Granted — Released — Forfeited — Outstanding at March 31, 2021 2,691,375 Exercisable March 31, 2021 — As of March 31, 2021 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 —Income Taxes In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date profit or loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate primarily as a result of state taxes, foreign taxes, and changes in the Company’s valuation allowance against its deferred tax assets. For the three months ended March 31, 2021 and 2020, the Company recorded provisions for income taxes of $61, and $183, respectively. On March 27, 2020, the President signed into law the CARES Act, an economic stimulus package in response to the COVID-19 global pandemic. The CARES Act contains several corporate income tax provisions of which only the acceleration of timing of tax refunds for minimum tax credits apply to the Company. As a result of the CARES Act, the Company reclassified $68 of minimum tax credits from a non-current asset to a current asset as of September 30, 2020. On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (the “Tax Act”), which significantly changes existing U.S. tax laws, including a reduction in the corporate tax rate from 35% to 21%, a move from a worldwide tax system to a territorial system, as well as other changes. Beginning in 2018, the Company became subject to the global intangible low-taxed income (GILTI) provisions of the Tax Act on the income of the Company’s foreign subsidiaries. The Company’s foreign subsidiaries were profitable during the three months ended March 31, 2021 and forecast profits for all of 2021. The GILTI subjects the income of the foreign subsidiaries to U.S. taxation. The Company’s accounting policy related to the GILTI is to treat GILTI related book/tax differences as period costs and to use the incremental cash tax savings approach in evaluating the Company’s U.S. net operating loss valuation allowance assessment. The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of March 31, 2021, the gross amount of unrecognized tax benefits was approximately $1.2 million. If the Company's estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company does not expect to have any significant changes to its uncertain tax positions during the next twelve months. Sonim Technologies (Shenzhen) Limited was notified of a tax inquiry by the Shenzhen Tax Bureau Bao’an Branch of the State Administration of Taxation on June 18, 2020 for both the 2017 and 2019 tax years. The Company has met with the Shenzhen Tax Bureau Bao’an Branch of the State Administration of Taxation and cooperated with the audit. The Company previously recorded an uncertain tax position long-term tax lability plus interest for a potential claim by Shenzhen Bao’an Branch of the State Administration of Taxation and, as such, will not record an adjustment to the uncertain tax position liability related to this inquiry as of September 30, 2020. The Company resolved the tax inquiry in October 2020 and paid an additional $95. The Company reclassified $95 of a non-current tax liability to a current tax liability as of September 30, 2020. The Company has concluded there is a remote possibility that any further reassessment will occur for the applicable years and as such there was an effective settlement for the years 2013 to 2019 and was recognized a net tax benefit in the fourth quarter of 2020 of $1,981. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 —Commitments and Contingencies Royalty payments —The Company is required to pay per unit royalties to wireless essential patent holders and other providers of integrated technologies on mobile devices delivered, which, in aggregate, amount to less than 5% of net revenues associated with each unit and expire in 2021 and 2023. Royalty expense for the three months ended March 31, 2021 and 2020 was $362 and $351, respectively. Securities litigation — On September 20, 2019, a purported Sonim stockholder who allegedly purchased stock registered in Sonim’s initial public offering (“IPO”) filed a putative class action complaint in the Superior Court of the State of California, County of San Mateo, captioned Pearson v. Sonim Technologies, Inc., et al., Case No. 19CIV05564, on behalf of himself and others who purchased shares of Sonim registered in the IPO (the “Pearson Action”). On October 4 and 16, 2019, two additional purported class action complaints substantially similar to the Pearson Action were filed on behalf of different plaintiffs yet the same putative class of Sonim stockholders, in the same court as the Pearson Action (the “’33 Act State Court Actions”). The defendants asked the Superior court to dismiss the “33 Act State Court Actions based on the provision in the Company’s Amended and Restated Certificate of Incorporation requiring stockholders to file and litigate in federal court any claims under the Securities Act of 1933. On December 7, 2020, the Superior Court entered an order granting defendants’ motion to dismiss. On October 7, 2019, a substantially similar putative class action lawsuit was filed in the United States District Court for the Northern District of California (the “’33 Act Federal Action”). All four complaints allege violations of the Securities Act of 1933 by Sonim and certain of its current and former officers and directors for, among other things, alleged false or misleading statements and omissions in the registration statement issued in connection with the IPO, relating primarily to an alleged failure to disclose software defects in Sonim’s phones and alleged misstatements about performance characteristics of Sonim’s phones. the Company has paid out the $2.0 million settlement as of December 31, 2020. On March 5, 2021, the court presiding over the ’33 Act Federal Action granted final approval of the settlement. Securities and Exchange Commission Formal Order of Private Investigation: In March 2020, the Company received a voluntary document request from the SEC San Francisco Regional office, and in August 2020, the Company was informed that the SEC Staff was conducting a formal investigation. The SEC’s investigation is ongoing. The Company has been cooperating with the SEC in the matter. The Company is unable to predict the likely outcome of the investigation or determine its potential impact, if any, on the Company. Derivative litigation —On September 21, 2020, the Company, and certain of its current and former directors and officers were sued by a stockholder on behalf of our Company in a derivative action in the United States District Court for the District of Delaware, captioned Kusiak v. Plaschke, et al., Case No 20-cv-1270-MN (“Kusiak”). The Kusiak complaint is based largely on the same underlying factual allegations as the ’33 Act Federal Action. The defendants filed a motion to dismiss the Kusiak derivative action based on plaintiff’s failure to make a litigation demand on Sonim’s directors. On February 1, 2021, plaintiff in Kusiak voluntarily dismissed the action without prejudice. On February 1, 2021, the same plaintiffs’ lawyers in the Kusiak action filed a new derivative action in the United States District Court for the District of Delaware against the Company and certain of its current and former directors and officers, captioned Gupta v. Plaschke, et al., Case No. 1:21-cv-130-MN (“Gupta”). The allegations in the Gupta complaint are generally similar to those in the Kusiak action. The defendants filed a motion to dismiss the Gupta derivative action based on plaintiff’s failure to make a litigation demand on Sonim’s directors. Given the early stages of this proceeding and the limited information available, we cannot predict the outcome of this legal proceeding or determine its potential impact, if any, on the Company. General litigation — The Company is involved in various other legal proceedings arising in the normal course of business. The Company does not believe that the ultimate resolution of these other matters will have a material adverse effect on its condensed consolidated financial position, results of operations, or cash flows. 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 —Under the terms of its agreements with wireless carriers and other partners, the Company has agreed to provide indemnification for intellectual property infringement claims related to Company’s product sold by them to their end customers. From time to time, the Company receives notices from these wireless carriers and other partners of a claim for infringement of intellectual property rights potentially related to their products. These infringement claims have been settled, dismissed, have not been further pursued by the customers, or are pending for further action by the Company. Contingent severance obligations —The Company has agreements in place with certain key employees (Executive Severance Arrangement) guaranteeing severance payments under certain circumstances. Generally, in the event of termination by the Company without cause, termination due to death or disability, or resignation for good reason, the Company is obligated to the pay the employees. On December 11, 2019, the Board of Directors approved the Sonim Technologies Inc. Transaction Bonus Plan (the “Plan”) that is intended to incentivize Company employees who are in a position to significantly impact the value received by the Company’s stockholders in a change of control transaction. Pursuant to the Plan, upon consummation of a change of control transaction, 10% of the consideration payable to Company stockholders, after deducting transaction expenses, will be distributed to Plan participants, including the Company’s named executive officers. The Plan has a three-year term and may be extended by the administrator of the Plan. Subject to the terms of the Plan, participants must be continuously providing services to the Company through the date of the closing of a change in control transaction to be eligible to receive a bonus thereunder, and payment is contingent upon delivery and non-revocation of a general release of claims. In connection with the adoption of the Plan, the Board of Directors allocated a 50% interest in the Plan to Tom Wilkinson, the Company’s Chief Executive Officer, and a 10% interest in the Plan to Robert Tirva, the Company’s Chief Financial Officer, and 40% to 9 other key employees and consultants . |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NOTE 11 — The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders for the three months ended: Three Months Ended March 31, 2021 2020 Numerator: Net loss $ (9,280 ) $ (9,964 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 66,316,797 20,613,849 Net loss per share, basic and diluted $ (0.14 ) $ (0.48 ) The dilutive common shares that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive for the three months ended, are presented are as follows: Three Months Ended March 31, 2021 2020 Shares subject to options to purchase common stock 1,414,886 2,127,840 Unvested restricted stock units 2,691,375 226,500 Shares subject to warrants to purchase common stock 29 956 Shares subject to term debt optional conversion into common stock — 780,058 Total 4,106,290 3,135,354 |
Entity Level Information
Entity Level Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Entity Level Information | NOTE 12 —Entity Level Information Segment Information —The Company operates in one reporting segment. 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 executive 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 three months ended: Three Months Ended March 31, 2021 2020 United States of America $ 8,627 $ 8,218 Canada and Latin America 3,343 4,079 Europe and Middle East 261 348 Asia Pacific 9 61 Total revenues $ 12,240 $ 12,706 Long-lived assets located in the United States and Asia Pacific region were $2,572 and $710 and $3,040 and $782 as of March 31, 2021 and December 31, 2020, respectively. The composition of revenues for the three months ended: Three Months Ended March 31, 2021 2020 Product Sales $ 12,238 $ 12,695 Services 2 11 Total revenues $ 12,240 $ 12,706 Concentrations of Credit Risk— The Company’s product revenues are concentrated in the technology industry, which is highly competitive and rapidly changing. Significant technological changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies, could adversely affect the Company’s consolidated operating results. 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 at, March 31, 2021 and December 31, 2020. 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. The Company analyzes the need for reserves for potential credit losses and records allowances for doubtful accounts when necessary. The Company had allowances for such losses totaling approximately $65 at each of March 31, 2021 and December 31, 2020, respectively. Receivables from three customers approximated 22%, 15% and 10% of total accounts receivable at March 31, 2021 and receivables from one customer approximated 23% of total accounts receivable at, December 31, 2020. Revenue from customers with concentration greater than 10% in the months ended March 31, 2021 and 2020 accounted for approximately the following percentage of total revenues: Months Ended March 31 , 2021 2020 Customer A 34 % 25 % Customer B 13 % 17 % Customer C * 17 % Customer D 11 % 12 % Customer E 22 % 15 % Total 80 % 86 % * Customer revenue did not exceed 10% in the respective |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | NOTE 13 —Restructuring Costs At the beginning of 2021, we outsourced substantially all of our software development to a third-party and transferred 105 employees to support the work to be performed. In connection with outsourcing our software development, the Company entered into an agreement of future business volume over the next three years in the amount of $7.1 million, of which the Company has committed to that a minimum value of $3.1 million shall be assured in the first year of business. The Company has paid $1.0 million during the first three -months ended March 31, 2021 Additionally, in the beginning of 2021, we outsourced our manufacturing work to a supply chain partner and expect to ultimately transfer or eliminate 22 employees as part of this solution. During 2020, the Company continued to reduce headcount to better align our expenses with our revenue profile. The Company The table below sets forth the activity in the Company’s restructuring costs, which is included in accrued expenses on the condensed consolidated balance sheet, as of March 31, 2020: Balance, January 1, 2020 $ 511 Additions: expensed costs 1,204 Expenses paid out (321 ) Balance, March 31, 2020 $ 1,394 Total restructuring costs of approximately $1.2 million were broken out between operating expenses of $1.1 million and cost of revenues of $0.1 million for the three months ended March 31, 2020. The Company paid insignificant bonuses and cash settlement of options for the India employees for the three months ended March 31, 2021. |
Covid-19 Uncertainty
Covid-19 Uncertainty | 3 Months Ended |
Mar. 31, 2021 | |
Extraordinary And Unusual Items [Abstract] | |
Covid-19 Uncertainty | NOTE 14—Covid-19 Uncertainty The Company is closely monitoring the continuing impact of the COVID-19 global outbreak and its resulting impact on our manufacturing operations and supply chain, with its top priority being the health and safety of its employees, customers, partners, and communities. The Company believes sales partners have sufficient inventory to continue meeting customer needs in the near term. However, demand for our solutions may be reduced as a result of the COVID-19 outbreak and resulting market uncertainty. It also remains possible that our results could be negatively impacted by interruptions in the global supply chain due to the continued and unpredictable spread of this pandemic. The magnitude of any future impact of the COVID-19 outbreak is unknown. The Company is working closely with our partners and suppliers to manage through this situation. Restrictions on travel and the imposition of stay-at-home or work remote conditions have impacted our operations and those of our customers. The Company has effective communications and collaboration tools in place to ensure business continuity during periods requiring remote operation. While we have not experienced major disruptions, our ability to interact with customers has been impacted by the current environment. There is a risk that our inability to meet in-person with current or prospective customers, as well as the cancellation or postponement of Company-sponsored events or third-party events at which our products are featured, may have a negative impact on our business. |
The Company and its Significa_2
The Company and its Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Company And Significant Accounting Policies [Abstract] | |
Description of Business | Description of Business —Sonim Technologies, Inc. (“Sonim”, “we”, “our”, or the “Company”) was incorporated in the state of Delaware on August 5, 1999 and is headquartered in Austin, Texas. The Company is a leading U.S. provider of ultra-rugged mobile phones and accessories designed specifically for task workers physically engaged in their work environments, often in mission-critical roles. We currently sell our ruggedized mobility solutions to several of the largest wireless carriers in the United States— including AT&T, T-Mobile and Verizon—as well as the three largest wireless carriers in Canada—Bell, Rogers and Telus Mobility. Our phones and accessories connect workers with voice, data and workflow applications in two end markets: industrial enterprise and public sector. In 2020, we announced that we would be entering the ruggedized barcode scanner business and we began shipping our first devices in March 2021. Our barcode scanner devices, as well as our ruggedized phones and accessories, are sold through distributors in North America, South America and Europe . The Company is closely monitoring the continuing impact of the COVID-19 global outbreak and its resulting impact on its manufacturing operations and supply chain, with its top priority being the health and safety of our employees, customers, partners, and communities. Demand for the Company’s solutions may be reduced as a result of the COVID-19 outbreak and resulting market uncertainty. It also remains possible that the Company’s results could be negatively impacted by interruptions in the global supply chain due to the continued and unpredictable spread of this pandemic. The magnitude of any future impact of the COVID-19 outbreak is unknown. The Company is working closely with its partners and suppliers to manage through this Restrictions on travel and the imposition of stay-at-home or work remote conditions have impacted our operations and those of our customers. The Company has effective communications and collaboration tools in place to ensure business continuity during periods requiring remote operation. While we have not experienced major disruptions, our ability to interact with customers has been impacted by the current environment. There is a risk that our inability to meet in-person with current or prospective customers, as well as the cancellation or postponement of Company-sponsored events or third-party events at which our products are featured, may have a negative impact on our business. |
Liquidity and Going Concern | Liquidity The Company’s condensed consolidated financial statements account for the continuation of its business as a going concern. We are subject to the risks and uncertainties associated with the development and release of new products. Our principal source of liquidity as of March 31, 2021, consists of existing cash and cash equivalents totaling approximately $13,912. During the three months ended March 31, 2021, our net loss was $9, 280 It is likely that we will continue to experience operating losses into the future because we have not yet generated sufficient revenue levels to ensure profitability, and as a result substantial doubt exists as to our ability to continue as a going concern for a period of twelve months from the date our unaudited condensed consolidated financials are filed with Securities and Exchange Commission (the “SEC”). We are actively pursuing expanding our business and increasing our revenue opportunities while effectively managing business operations and exploring further cost saving opportunities. We may not be successful in these efforts. The accompanying unaudited interim condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. The Company plans to explore raising additional capital from the sale of equity securities or the incurrence of indebtedness to allow it to invest in growth opportunities. There can be no assurance that additional financing will be available to the Company on acceptable terms, or at all. Additionally, if the Company issues additional equity securities to raise funds, whether to existing investors or others, the ownership percentage of its existing stockholders would be reduced. New investors may demand rights, preferences, or privileges senior to those of existing holders of common stock. Further, the Company may be limited as to the amount of funds it can raise pursuant to SEC rules and the continued listing requirements of the Nasdaq Stock Market LLC (“Nasdaq”). The Company has also retained B. Riley as our investment bank to explore capital market financing ideas as well as strategic alternatives, including both buy and sell side opportunities. The Company’s management team and board of directors expects to work closely with the bankers to chart a path forward. However, there can be no assurance that the Company will be able improve its financial position and liquidity or raise additional capital. The Company’s strategic plans are not yet finalized and are subject to numerous uncertainties including conditions in the credit and capital markets. In addition, global financial crises and economic downturns, including those caused by widespread public health crises such as the COVID-19 pandemic, may cause extreme volatility and disruptions in capital and credit markets, and may impact the Company’s ability to raise additional capital when needed on acceptable terms, if at all. If the Company cannot grow its revenue run-rate or raise needed funds, it might be forced to make additional reductions in its operating expenses, which could adversely affect its ability to implement its business plan and ultimately its viability as a Company. |
Financial Statement Presentation | Financial Statement Presentation— The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC for interim financial information. The unaudited interim condensed consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Significant Accounting Policies and Recent Accounting Pronouncements) included in the Company’s audited consolidated financial statements for the year ended December 31, 2020. Results of operations for interim periods are not necessarily indicative of annual results of operations. The unaudited condensed consolidated balance sheet at December 31, 2020, is extracted from the audited annual consolidated financial statements and does not include all disclosures required by U.S. GAAP for annual financial statements. |
Principles of Consolidation | Principles of Consolidation — The accompanying condensed consolidated financial statements include the accounts of Sonim Technologies. Inc. and its wholly owned foreign subsidiaries, Sonim Technologies India Private Limited, Sonim Technologies (Shenzhen) Limited, Sonim Technologies (Hong Kong) Limited, and Sonim Communications India Private Limited. All significant intercompany transactions and balances have been eliminated in consolidation. |
Estimates | Estimates —The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates include, but are not limited to, estimates related to revenue recognition; valuation assumptions regarding the determination the useful lives of our long-lived assets; product warranties; loss contingencies; and the recognition and measurement of income tax assets and liabilities, including uncertain tax positions. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Notwithstanding the foregoing, the worldwide spread of the COVID-19 pandemic has resulted in a global slowdown of economic activity, which is likely to decrease demand for a broad variety of goods and services, including from the Company’s customers, while also disrupting sales channels and marketing activities for an unknown period of time until the disease is contained. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements |
Significant accounting policies | Significant accounting policies — Other than the adoption of new accounting standards in New Accounting Pronouncements described in the note below, there have been no significant changes in the accounting policies from those disclosed in the audited consolidated financial statements for the year ended December 31, 2020. |
Public Offering | The 2020 Offering (“PO”) —On June 9, 2020, the Company completed an underwritten public offering (“PO’) in which the Company sold 36,800,000 shares of its common stock, at a price to the public of $0.75 per share. The offer and sale of the shares in the PO were registered under the Securities Act of 1933, as amended (the “Securities Act”) pursuant to a registration statement on Form S-1 (File No. 333-238869), which was declared effective by the SEC on June 4, 2020. The Company raised approximately $25,086 in net proceeds, after deducting underwriting discounts and commissions of $1,656 and offering expenses of approximately $719. Offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the Company’s PO, are offset against proceeds from the PO within stockholders’ equity. |
New accounting pronouncements | New accounting pronouncements: Pronouncements adopted in 2020: The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies are required to adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company that, is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. The Company did not adopt any pronouncements in 2020. Pronouncements adopted in 2021: In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) Pronouncements not yet adopted: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Net Revenue Disaggregate by Product Category | The following table presents our net revenue disaggregated by product category: Three Months Ended March 31, 2021 2020 (in thousands) Smartphones $ 4,369 $ 6,218 Feature Phones 6,559 5,901 Scanners 1,055 — Accessories/Other 257 587 Total Revenue $ 12,240 $ 12,706 |
Summary of Contract Balances | The following table is a rollforward of contract balances as of March 31, 2021: Contractual Liability Balance at, January 1, 2021 $ 5 Recognition of revenue (5 ) Addition to deferred revenue — Balance at, March 31, 2021 $ — |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: March 31 , 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 6,908 $ — $ — $ 6,908 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 17,905 $ — $ — $ 17,905 * Included in cash and cash equivalents on the condensed consolidated balance |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of approximately the following: March 31, 2021 December 31, 2020 Finished goods $ 7,007 $ 7,792 Raw materials 2,666 2,590 Accessories 883 962 $ 10,556 $ 11,344 |
Warranty Liability (Tables)
Warranty Liability (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Guarantees And Product Warranties [Abstract] | |
Schedule of Warranty Liability Included in Accrued Expenses on Condensed Consolidated Balance Sheet | The table below sets forth the activity in the warranty liability, which is included in accrued expenses on the condensed consolidated balance sheets, for the three months ended March 31, 2021 and 2020: Balance, January 1, 2021 $ 1,530 Additions 441 Cost of warranty claims (439 ) Balance, March 31, 2021 $ 1,532 Balance, January 1, 2020 $ 1,154 Additions 178 Cost of warranty claims (217 ) Balance, March 31, 2020 $ 1,115 |
Warrants (Tables)
Warrants (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Warrants Issued and Outstanding | The following table discloses warrants issued and outstanding as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Exercise Number of warrant Year of Exercise Number of warrant Year of Issuance date price shares expiration price shares expiration Common November 2012 $ 6.03 7 2028 $ 6.03 7 2028 November 2012 $ 14.50 22 2028 $ 14.50 22 2028 Total warrants 29 29 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense for the three months ended March 31, 2021 and 2020 is as follows: March 31, 2021 March 31, 2020 Research and development $ 50 $ 60 Sales and marketing 56 57 General and administrative 174 96 Cost of revenues 16 10 $ 296 $ 223 |
Summary of Stock Option Activity | Stock option activity for the three months ended March 31, 2021 is as follows: Weighted average Weighted average remaining Aggregate exercise price contractual life Intrinsic Options per share (in years) Value Outstanding at January 1, 2021 1,443,940 $ 3.64 7.82 $ 24 Options granted — $ — Options exercised (7,082 ) $ 0.75 Options forfeited (4,180 ) $ 9.70 Options expired (17,792 ) $ 2.62 Outstanding at March 31, 2021 1,414,886 $ 3.65 7.66 $ 37 Vested and expected to vest at March 31, 2021 1,414,886 $ 3.65 7.66 $ 37 Exercisable at March 31, 2021 710,832 $ 4.18 6.68 $ 37 |
Summary of Outstanding RSU's | The following table summarized the outstanding RSUs as of March 31, 2021: RSUs Outstanding at January 1, 2021 2,691,375 Granted — Released — Forfeited — Outstanding at March 31, 2021 2,691,375 Exercisable March 31, 2021 — |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders for the three months ended: Three Months Ended March 31, 2021 2020 Numerator: Net loss $ (9,280 ) $ (9,964 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 66,316,797 20,613,849 Net loss per share, basic and diluted $ (0.14 ) $ (0.48 ) |
Summary of Potentially Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share | The dilutive common shares that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive for the three months ended, are presented are as follows: Three Months Ended March 31, 2021 2020 Shares subject to options to purchase common stock 1,414,886 2,127,840 Unvested restricted stock units 2,691,375 226,500 Shares subject to warrants to purchase common stock 29 956 Shares subject to term debt optional conversion into common stock — 780,058 Total 4,106,290 3,135,354 |
Entity Level Information (Table
Entity Level Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Region | The following table summarizes the revenue by region based on ship-to destinations for the three months ended: Three Months Ended March 31, 2021 2020 United States of America $ 8,627 $ 8,218 Canada and Latin America 3,343 4,079 Europe and Middle East 261 348 Asia Pacific 9 61 Total revenues $ 12,240 $ 12,706 |
Composition of Revenues | The composition of revenues for the three months ended: Three Months Ended March 31, 2021 2020 Product Sales $ 12,238 $ 12,695 Services 2 11 Total revenues $ 12,240 $ 12,706 |
Percentage of Total Revenues | Revenue from customers with concentration greater than 10% in the months ended March 31, 2021 and 2020 accounted for approximately the following percentage of total revenues: Months Ended March 31 , 2021 2020 Customer A 34 % 25 % Customer B 13 % 17 % Customer C * 17 % Customer D 11 % 12 % Customer E 22 % 15 % Total 80 % 86 % * Customer revenue did not exceed 10% in the respective |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Summary of Restructuring Costs | The table below sets forth the activity in the Company’s restructuring costs, which is included in accrued expenses on the condensed consolidated balance sheet, as of March 31, 2020: Balance, January 1, 2020 $ 511 Additions: expensed costs 1,204 Expenses paid out (321 ) Balance, March 31, 2020 $ 1,394 |
The Company and its Significa_3
The Company and its Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 09, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Company And Significant Accounting Policies [Line Items] | ||||
Entity incorporation date | Aug. 5, 1999 | |||
Cash and cash equivalents | $ 13,912 | $ 22,141 | ||
Net loss | $ 9,280 | $ 9,964 | ||
2020 Offering | ||||
Company And Significant Accounting Policies [Line Items] | ||||
IPO closing date | Jun. 9, 2020 | |||
Common Stock | 2020 Offering | ||||
Company And Significant Accounting Policies [Line Items] | ||||
Issuance of common stock, net of issuance costs, shares | 36,800,000 | |||
Shares issued and sold, price per share | $ 0.75 | |||
Proceeds from issuance of public offering | $ 25,086 | |||
Underwriting discounts and commissions | 1,656 | |||
Offering expenses paid | $ 719 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Net Revenue Disaggregate by Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 12,240 | $ 12,706 |
Smartphones | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 4,369 | 6,218 |
Feature Phones | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 6,559 | 5,901 |
Scanners | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 1,055 | |
Accessories/Other | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 257 | $ 587 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Estimated life of particular model phone | 4 years | ||
Contract liabilities | $ 0 | $ 5 | $ 5 |
Other Assets | |||
Disaggregation Of Revenue [Line Items] | |||
Total capitalized costs | $ 2,480 | $ 2,889 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Balances (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Balance at, January 1, 2021 | $ 5 |
Balance at, March 31, 2021 | 0 |
Contractual Liability | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Balance at, January 1, 2021 | 5 |
Recognition of revenue | $ (5) |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Fair Value Assets and Liabilities (Details) - Money Market Funds - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Assets | $ 6,908 | $ 17,905 |
Level 1 | ||
Assets: | ||
Assets | $ 6,908 | $ 17,905 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 7,007 | $ 7,792 |
Raw materials | 2,666 | 2,590 |
Accessories | 883 | 962 |
Total inventory | $ 10,556 | $ 11,344 |
Warranty Liability - Schedule o
Warranty Liability - Schedule of Warranty Liability Which is Included in Accrued Expenses on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Guarantees And Product Warranties [Abstract] | ||
Beginning balance | $ 1,530 | $ 1,154 |
Additions | 441 | 178 |
Cost of warranty claims | (439) | (217) |
Ending balance | $ 1,532 | $ 1,115 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) | Jun. 01, 2020USD ($)shares | Mar. 31, 2021USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Jan. 01, 2019USD ($)Installment | Oct. 26, 2017USD ($) |
Loan and Security Agreement | East West Bank | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings available | $ 0 | |||||
Line of credit facility, termination date | Jun. 30, 2020 | |||||
Subordinated Term Loan and Security Agreement | B. Riley Principal Investments, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings available | $ 12,000,000 | |||||
Minimum principal amount outstanding of defined repayment penalties | $ 10,000,000 | |||||
Prepayment penalty description | The prepayment penalty was 1% for 2019 through maturity. | |||||
Interest rate, stated percentage | 10.00% | |||||
Debt prepayment penalties percentage | 1.00% | |||||
Line of credit facility, maturity date | Sep. 1, 2022 | |||||
Outstanding borrowings | $ 0 | 0 | ||||
Note Amendment and Debt Cancellation Agreement | B. Riley Principal Investments, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding indebtedness | $ 4,000,000 | |||||
Outstanding borrowings | $ 6,170,000 | |||||
Debt instrument redemption date | Jun. 9, 2020 | |||||
Conversion shares | shares | 8,226,834 | |||||
Promissory Notes Payable | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, outstanding balance | $ 325,000 | $ 362,000 | $ 736,000 | |||
Debt instrument, periodic payment, number of equal quarterly installments | Installment | 20 | |||||
Debt instrument, frequency of periodic payment | quarterly | |||||
Promissory Notes Payable | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, payment term | 2 years | |||||
Promissory Notes Payable | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 8.00% | |||||
Debt instrument, payment term | 4 years |
Warrants - Schedule of Warrants
Warrants - Schedule of Warrants Issued and Outstanding (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Class Of Warrant Or Right [Line Items] | ||
Number of warrant shares | 29 | 29 |
Issuance Date, November 2012 Tranche One | ||
Class Of Warrant Or Right [Line Items] | ||
Exercise price | $ 6.03 | $ 6.03 |
Number of warrant shares | 7 | 7 |
Year of expiration | 2028 | 2028 |
Issuance Date, November 2012 Tranche Two | ||
Class Of Warrant Or Right [Line Items] | ||
Exercise price | $ 14.50 | $ 14.50 |
Number of warrant shares | 22 | 22 |
Year of expiration | 2028 | 2028 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Thousands | Nov. 15, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares exercised | 7,082 | |||
Unamortized stock-based compensation cost related to unvested stock options | $ 2,983 | |||
Unamortized stock-based compensation cost, weighted average period of recognition | 3 years | |||
Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate restricted stock units, outstanding | 2,691,375 | |||
Stock issued during period | 0 | 0 | ||
2012 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares available to be issued | 6,259,229 | |||
Increase In common stock reserved for issuance of number of shares of capital stock outstanding | 3,315,543 | |||
2019 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares available to be issued | 780,438 | |||
Common stock, number of shares available for sale | 1,041,379 | |||
Period in which reserved shares will increase annually | 10 years | |||
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 | 1.00% | |||
Increase In common stock reserved for issuance of number of shares of capital stock outstanding on last day of prior calendar year | 500,000 | |||
Increase In common stock reserved for issuance of number of shares of capital stock outstanding | 500,000 | |||
Common stock reserved for issuance description | Additionally, the number of shares of common stock reserved for issuance under the 2019 Employee Stock Purchase 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 the lesser of 1% of the total number of shares of capital stock outstanding on December 31st of the prior calendar year, and (ii) 500,000 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. | |||
Number of shares issued | 128,015 | |||
2012 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Number of shares exercised | 0 | 0 | ||
2012 Equity Incentive Plan | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
2012 Equity Incentive Plan | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
2012 Equity Incentive Plan | Options and SARs | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exercise price options granted from fair value common stock, percent | 100.00% | |||
2012 Equity Incentive Plan | Granted to Ten Percent Stockholders | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exercise price options granted from fair value common stock, percent | 110.00% | |||
2012 Equity Incentive Plan | Granted to Ten Percent Stockholders | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
2019 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock, number of shares available for sale | 9,222,443 | |||
Period in which reserved shares will increase annually | 10 years | |||
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 | 5.00% | |||
Common stock reserved for issuance description | 9,222,443 shares of common stock are reserved for future issuance under the 2019 Equity Plan, plus the number of shares subject to outstanding stock options or other stock awards that were granted under the 2012 Equity Plan that are forfeited, terminated, expire or are otherwise not issued. Additionally, the number of shares of common stock reserved for issuance under the 2019 Equity 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 on December 31 of the prior calendar year, unless the Board of Directors or compensation committee determines prior to the date of increase that there will be a lesser increase, or no increase. |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 296 | $ 223 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 50 | 60 |
Sales and marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 56 | 57 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 174 | 96 |
Cost of revenues | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 16 | $ 10 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Outstanding, Aggregate Intrinsic Value | $ 37 | $ 24 |
Vested and expected to vest at March 31, 2021 Aggregate Intrinsic Value | 37 | |
Exercisable at March 31, 2021, Aggregate Intrinsic Value | $ 37 | |
Options Outstanding | 1,443,940 | |
Options exercised | (7,082) | |
Options forfeited | (4,180) | |
Options expired | (17,792) | |
Options Outstanding | 1,414,886 | 1,443,940 |
Options Vested and expected to vest at March 31, 2021 | 1,414,886 | |
Options exercisable at March 31, 2021 | 710,832 | |
Outstanding, Weighted average exercise price per share | $ 3.64 | |
Options exercised, Weighted average exercise price per share | 0.75 | |
Options forfeited, Weighted average exercise price per share | 9.70 | |
Options expired, Weighted average exercise price per share | 2.62 | |
Outstanding, Weighted average exercise price per share | 3.65 | $ 3.64 |
Vested and expected to vest at March 31, 2021, Weighted average exercise price per share | 3.65 | |
Exercisable at March 31, 2021, Weighted average exercise price per share | $ 4.18 | |
Outstanding, Weighted average remaining contractual life (in years) | 7 years 7 months 28 days | 7 years 9 months 25 days |
Vested and expected to vest at March 31, 2021, Weighted average remaining contractual life (in years) | 7 years 7 months 28 days | |
Exercisable at March 31, 2021, Weighted average remaining contractual life (in years) | 6 years 8 months 4 days |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Outstanding RSU's (Details) - Restricted Stock Units | 3 Months Ended |
Mar. 31, 2021shares | |
RSU's | |
Outstanding at January 1, 2021 | 2,691,375 |
Granted | |
Released | |
Forfeited | |
Outstanding at March 31, 2021 | 2,691,375 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Nov. 10, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2017 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||||||
Provisions for income tax expense/(benefit) | $ 61,000 | $ 183,000 | ||||
Reclassified minimum tax credit amount | $ 68,000 | |||||
Corporate tax rate | 21.00% | 35.00% | ||||
Unrecognized tax benefits | $ 1,200 | |||||
Cash paid for income taxes | $ 95,000 | $ 31,000 | ||||
Effective income tax settlement | $ 95,000 | |||||
Current tax liability | $ 1,981,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Dec. 11, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jan. 01, 2021 | Jul. 31, 2020 |
Loss Contingencies [Line Items] | ||||||
Cash paid for amounts included in the present value of operating lease liabilities | $ 16 | |||||
Contingent severance obligation accrual | $ 2,000 | |||||
Transaction Bonus Plan ("Plan") | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of consideration payable | 10.00% | |||||
Term of plan | 3 years | |||||
Chief Executive Officer | Transaction Bonus Plan ("Plan") | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of ownership interest in plan | 50.00% | |||||
Chief Financial Officer | Transaction Bonus Plan ("Plan") | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of ownership interest in plan | 10.00% | |||||
Other Key Employees [Member] | Transaction Bonus Plan ("Plan") | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of ownership interest in plan | 40.00% | |||||
Consultants [Member] | Transaction Bonus Plan ("Plan") | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of ownership interest in plan | 9.00% | |||||
Pearson Action | ||||||
Loss Contingencies [Line Items] | ||||||
Contingent severance obligation accrual | $ 2,000 | |||||
Accounting Standards Update 2016-02 | ||||||
Loss Contingencies [Line Items] | ||||||
Initial right-of-use asset | $ 1,179 | |||||
Cost of Revenues | ||||||
Loss Contingencies [Line Items] | ||||||
Royalty expense | $ 362 | $ 351 | ||||
Wireless Essential Patent Holders | ||||||
Loss Contingencies [Line Items] | ||||||
Royalty expire year | 2021 | |||||
Wireless Essential Patent Holders | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Royalty payment percent of net revenues | 5.00% | |||||
Other Providers of Integrated Technologies | ||||||
Loss Contingencies [Line Items] | ||||||
Royalty expire year | 2023 | |||||
Other Providers of Integrated Technologies | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Royalty payment percent of net revenues | 5.00% |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net loss | $ (9,280) | $ (9,964) |
Denominator: | ||
Weighted–average shares used in computing net loss per share, basic and diluted | 66,316,797 | 20,613,849 |
Net loss per share, basic and diluted | $ (0.14) | $ (0.48) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Potentially Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 4,106,290 | 3,135,354 |
Shares Subject to Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 1,414,886 | 2,127,840 |
Unvested Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 2,691,375 | 226,500 |
Shares Subject to Warrants to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 29 | 956 |
Shares Subject to Term Debt Optional Conversion into Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 780,058 |
Entity Level Information - Addi
Entity Level Information - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Number of reporting segment | Segment | 1 | |
Allowance for credit losses | $ 65 | $ 65 |
Receivables | Customer Concentration | Customer One | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 22.00% | 23.00% |
Receivables | Customer Concentration | Customer Two | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 15.00% | |
Receivables | Customer Concentration | Customer Three | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 10.00% | |
U.S [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 2,572 | $ 3,040 |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 710 | $ 782 |
Entity Level Information - Summ
Entity Level Information - Summary of Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 12,240 | $ 12,706 |
United States of America [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 8,627 | 8,218 |
Canada and Latin America [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 3,343 | 4,079 |
Europe and Middle East [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 261 | 348 |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 9 | $ 61 |
Entity Level Information - Comp
Entity Level Information - Composition of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 12,240 | $ 12,706 |
Product Sales | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | 12,238 | 12,695 |
Services | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 2 | $ 11 |
Entity Level Information - Perc
Entity Level Information - Percentage of Total Revenues (Details) - Revenues - Customer Concentration | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 80.00% | 86.00% |
Customer A | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 34.00% | 25.00% |
Customer B | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 13.00% | 17.00% |
Customer C | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 17.00% | |
Customer D | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 11.00% | 12.00% |
Customer E | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 22.00% | 15.00% |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Details) | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2020 | Mar. 31, 2021USD ($)Employee | Mar. 31, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |||
Future business volume agreement amount over three years | $ 7,100,000 | ||
Minimum future business volume agreement committed amount in first year | 3,100,000 | ||
Payment related to outsourcing of software development | $ 1,000,000 | ||
Percentage of reduction in employees | 10.00% | ||
Restructuring costs | $ 1,204,000 | ||
Operating Expenses | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs | 1,100 | ||
Cost of revenues | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs | $ 100 | ||
Support Worker [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Number of employees and contractors | Employee | 105 | ||
Eliminate Employee [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Number of employees and contractors | Employee | 22 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Restructuring Costs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Reserve Roll Forward | |
Restructuring cost, Beginning balance | $ 511 |
Additions: expensed costs | 1,204 |
Expenses paid out | (321) |
Restructuring cost, Ending balance | $ 1,394 |