Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 36

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 36
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the Company’s enterprise 5G solutions business, including rugged handsets, smartphones, wireless internet devices, software, services,
and accessories (collectively, the “Business”) for a purchase price of $15.0 million in cash, subject to (i) customary working
capital, indebtedness and transaction expense adjustments (referred to in the Asset Purchase Agreement as the “Adjustment Amount,”
which may be a positive or a negative number) and (ii) up to $5.0 million in the form of an earn-out payment, if earned.

Because
the transaction contemplates the sale of substantially all of the Company’s assets, the Company is pursuing alternative strategies,
in addition to completing the asset sale, with the objective of maximizing stockholder value. There can be no assurance that the Asset
Purchase Agreement or any additional transaction will ultimately be consummated timely or at all.

Recent
Developments

Recent
Product Awards

The
first step in selling our products through wireless telecommunications carriers is to receive a product award from the carrier. The award
documents the intent of the carrier to carry the proposed product and offer it to customers through their stores or online. The carrier
and Sonim agree to a launch date that is generally nine months or longer from the date of the product award. After the product award,
the Company and its partners complete the design that includes the unique specifications from the carrier, test the device, obtain certification
from the carrier to sell the device, and begin full scale manufacturing of the product based on purchase orders issued by the carrier.

As
of the filing date of this report, Sonim is completing the development, testing and certification of an updated 5G version of the Company’s
XP5plus.

23

2025
Reverse Stock Split 

On
October 27, 2025, the Company effected a 1-for-18 reverse stock split of its issued and outstanding common stock (the “2025 Reverse
Stock Split”). On the same date, our common stock began trading on the Nasdaq Capital Market on a post-split basis. As a result
of the 2025 Reverse Stock Split, each share of common stock issued and outstanding immediately prior to October 27, 2025, was automatically
converted into one-eighteenth (1/18) of a share of common stock. The Reverse Stock Split affected all common stockholders uniformly and
did not alter any stockholder’s percentage interest in the Company’s equity, except to the extent that the Reverse Stock