Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 44

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 44
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 and the updated 5G version of
our XP3plus. In the third quarter of 2025 we expect to continue to incur R&D expenses for many of these products.

R&D
expenses for the six months ended June 30, 2025, increased by $1.5 million compared to 2024, primarily due to there being limited R&D
projects during the first half of 2024. In 2025, R&D expenses were primarily from internal work on the development of new variants
of our XP Pro, including a version with a thermal camera, the HPUE hotspot, the XP400 phone for Europe, and the updated 5G version of
our XP3plus.

Sales
and Marketing

Sales
and marketing expenses for the three months ended June 30, 2025, increased by $0.2 million compared to 2024 primarily due to an increase
in marketing spend to support new products in 2025, and compliance work for Europe.

Sales
and marketing expenses for the six months ended June 30, 2025, increased by $1.0 million compared to 2024 primarily due to an increase
in marketing spend to support new products in 2025, and compliance work for Europe.

General
and Administrative

General
and administrative expenses for the three months ended June 30, 2025, increased by $0.8 million compared to 2024 primarily due to an
increase in legal and other expenses related to the hostile takeover attempt, and the divestiture activity being pursued by the Company.

General
and administrative expenses for the six months ended June 30, 2025, increased by $1.0 million compared to 2024 primarily due to an increase
in legal expenses.

Impairment
of Contract Fulfillment Assets

Impairment
of contract fulfillment assets for both the three and six months ended June 30, 2024, was $3.2 million, resulting from the Company’s
determination that it would not recover the contract fulfillment costs capitalized due to a decrease in projected profit for one of its
hotspots and the cancellation of the consumer durable product.

Liquidity
and Capital Resources

Historically,
we have funded operations from a combination of public and private equity financings, and through the issuance of debt. During the six
months ended June 30, 2025 we received net proceeds of $9.0 million from the sale of our common stock, and we