Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 44

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 2
Chunk 44
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the “Sales Agreement”) with Roth Capital Partners, LLC (“Roth”).
Pursuant to the Sales Agreement, the Company may sell, at its option, up to an aggregate of $8.9 million in shares of common stock through
Roth, as sales agent. Sales of shares of our common stock made pursuant to the Sales Agreement are being made under the effective Registration
Statement on Form S-3. Roth is entitled to compensation at a commission rate of 3% of the gross sales price per share. For additional
information, refer to Note 5 — Stockholders’ Equity to the condensed consolidated financial statements contained within this
report under the title “ATM Offering.”

We
have no obligation to sell shares under the Sales Agreement, and we have sold shares from time to time. During the three months ended
March 31, 2025, a total of 1,349,840 shares of common stock were sold under the Sales Agreement for net proceeds of $3.7 million after
payment of commission fees and other related expenses of $0.1 million. Subsequent to March 31, 2025, a total of 2,130,437 shares of common
stock were sold under the Sales Agreement for net proceeds of $4.5 million after payment of commission fees and other related expenses
of $0.1 million. As of the filing date of this report, the Company has completed its sales of shares of common stock under the Sales
Agreement and the ATM program has been terminated.

Receivables
Financing Agreement

To
improve its liquidity, on September 23, 2024, the Company entered into an invoice purchase agreement (the “Receivables Financing
Agreement”) with LS DE LLC (“LS”), pursuant to which LS will provide receivables factoring to the Company, pursuant
to which LS will advance 80% of the face value of the receivables being sold by the Company, up to a maximum of $2.5 million of eligible
customer invoices from the Company. As of March 31, 2025, there was $0.6 million outstanding under the Receivables Financing Agreement,
which is included in Accrued Liabilities in the Condensed Consolidated Balance Sheets. For additional information, refer to Note 1—The
Company and Its Significant Accounting Policies to the condensed consolidated financial statements contained within this report under
the title “Receivables Financing Agreement.”

Promissory