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Sonim Technologies Inc. (SONM+10.81%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports total net revenues of $58.3 million for 2024, a decrease from $93.6 million in 2023. The decline is attributed to the transition away from low-margin white label products, which accounted for $44.8 million in revenue in 2023.
Cost of revenues for 2024 was $48.4 million, down from $74.3 million in 2023. However, the gross profit margin was negatively impacted by a $3.0 million impairment charge.
Research and development expenses increased significantly to $14.2 million in 2024 from $1.8 million in 2023, driven by spending on new mobile hotspots and smartphones.
Sales and marketing expenses rose to $13.0 million in 2024 from $8.8 million in 2023, primarily due to marketing efforts for new products and expansion in Europe.
General and administrative expenses increased to $12.4 million in 2024 from $8.3 million in 2023, due to increased reserves for credit losses and higher professional fees.
The company reported a net loss of $33.6 million for 2024, compared to a net loss of $0.1 million in 2023.
Sonim Technologies introduced several new products in 2024, including the Sonim H500-series 5G mobile hotspots and the XP Pro 5G rugged smartphone.
The company is focusing on expanding its market reach with new products and geographical markets, including Europe and Australia.
Sonim Technologies' liquidity includes $5.3 million in cash and cash equivalents as of December 31, 2024, and it has raised $6.7 million in capital since year-end through stock sales and debt issuance.
The company has also secured a receivables financing agreement to provide additional liquidity if needed.
Sonim Technologies continues to prioritize Trade Agreements Act compliance to enhance its competitiveness in securing government contracts.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sonim Technologies Inc. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.