Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 65

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 65
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, 2025, wireless carriers contributed 86% of our total net revenues, 20% of which related
to the expiration of customer allowance agreements as three of our legacy phones approach end-of-life, with our top three carrier customers
accounting for 74% of our total net revenues, 18% of which related to the expiration of customer allowance agreements. Our rugged smartphones
represented 57% of our total net revenues, 19% of which related to the expiration of customer allowance agreements, while feature phones
were 31% of our total net revenues, and connected solutions were 11% of our total net revenues. For the three months ended June 30, 2025,
wireless carriers contributed 88% of our total net revenues, with our top three carrier customers accounting for 80% of our total net
revenues. Our rugged smartphones represented 43% of our total net revenues, while feature phones were 34% of our total net revenues,
and connected solutions were 20% of our total net revenues.

In
alignment with Sonim Technologies’ commitment to quality, reliability, and regulatory compliance, we have prioritized our Trade
Agreements Act (“TAA”) initiatives. TAA compliance is crucial in enhancing our market strategy, particularly in expanding
opportunities within government and enterprise markets, which demand stringent adherence to regulatory standards. By ensuring our products
meet TAA requirements, we reinforce our position as a trusted provider of enterprise 5G solutions.

This
initiative underscores our dedication to delivering products that not only meet industry-leading standards but also comply with U.S.
federal procurement regulations, thereby enhancing our competitiveness in securing government contracts.

Looking
ahead, Sonim is focused on bringing our new products and solutions offering to our expanded portfolio throughout 2025.

Pending
Asset Purchase Agreement with Social Mobile and Announced Strategic Initiatives 

On
July 17, 2025, the Company entered into an asset purchase agreement (the “Asset Purchase Agreement”) by and among the Company,
as seller, Pace Car Acquisition LLC, as buyer, (the “Buyer”), the Seller Representative named in the Asset Purchase Agreement,
and, Social Mobile Technology Holdings LLC (the “Parent”), solely for the purpose of guaranteeing complete payment and performance
obligations of the Buyer contained in the Asset Purchase Agreement.

Pursuant
to the Asset Purchase Agreement, the Buyer agreed to acquire substantially all assets of the Company and its subsidiaries related to
the Company’s enterprise 5