Summary of Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2024

Accounts receivable, net consisted of the following as of December 31:


	2024			2023
	(in thousands)
Trade receivables	$	3,827		$	5,240
Less: allowance for credit losses		(145	)		(450	)
Accounts receivable, net	$	3,682		$	4,790

Summary of Changes in Allowance for Credit Losses on Accounts Receivable

The following table presents the changes in allowance for credit losses on accounts receivable for the years ended December 31:


	2024			2023
	(in thousands)
Balance at beginning of period	$	(450	)	$	(92	)
Credit loss expenses		—			(403	)
Credit loss recoveries		219			—
Write-offs		86			45
Balance at end of period	$	(145	)	$	(450	)

Summary of Balances of Contract Liabilities

The Company recognizes a contract liability when a customer pays for goods or services for which the Company has not yet transferred control. The balances of the Company’s contract liabilities are as follows:


	Year Ended December 31,
	2024		2023
	(in thousands)
Total contract liabilities - extended service contracts	$	1,144	$	920
Less: long-term portion		174		302
Contract liabilities – current	$	970	$	618

Schedule of Revenues Disaggregated by Segment and Timing of Goods and Services Transferred

The following table provides information regarding revenues disaggregated by the timing of when goods and services are transferred:


	Year Ended December 31,
	2024		2023
	(in thousands)
Product revenue recognized at a point in time	$	30,247	$	33,844
Service revenue recognized over time		1,455		784
Total revenue	$	31,702	$	34,628

Schedule of Reconciliation of Change in Estimated Warranty Liabilities

The following table provides a reconciliation of the change in estimated warranty liabilities and current and non-current portion included in other current liabilities and other liabilities, respectively, on the consolidated balance sheets, for the years ended December 31, 2024 and 2023:


	Year Ended December 31,
	2024			2023

Balance at beginning of period	$	1,270		$	1,930
Provision for warranties issued		852			890
Changes in estimate of pre-existing warranty		(146	)		—
Warranty costs incurred		(1,437	)		(1,550	)
Balance at end of period	$	539		$	1,270
Current portion	$	496		$	1,187
Non-current portion		43			83
Total	$	539		$	1,270

Sonendo, Inc. 10-K