Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 16

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 16
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2025, the gross amount of unrecognized tax benefits was approximately
$1,506. If the Company’s estimates of income tax liabilities prove to be less than the ultimate assessment, then a further charge
to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the
liabilities would result in tax benefits being recognized in the period in which we determine the liabilities are no longer necessary.
The Company does not anticipate any material changes to its uncertain tax positions during the next twelve months.

NOTE
8 — Commitments and Contingencies

Purchase
Commitments — The aggregate amount of noncancelable purchase orders as of March 31, 2025, and December 31, 2024, was approximately
$17,057 and $15,753, respectively, and were related to the purchase of inventory and components for the Company’s devices, and
certification services.

Royalty
payments — The Company is required to pay per unit royalties to wireless essential patent holders and other providers of integrated
technologies on mobile devices delivered, which, in aggregate, amount to less than 5% of net revenues associated with each unit and expire
between 2025 and 2033. Royalty expense for the three months ended March 31, 2025, and 2024 was $233 and $230, respectively. Royalty expense
is included in Cost of Revenues. The Company may be required to pay additional royalties to additional patent holders and technology
providers on future products.

    13

General
litigation — The Company is involved in various legal proceedings arising in the normal course of business. The Company does
not believe that the ultimate resolution of these other matters will have a material adverse effect on its consolidated financial position,
results of operations, or cash flows.

AJP
and Orbic Litigation

On
April 24, 2025, AJP Holding Company, LLC (“AJP”) on behalf of itself and Orbic North America, LLC (“Orbic”),
filed a complaint in the Delaware Court of Chancery against the Company and directors Mike Mulica, James Cassano, Peter Liu, and Jack
Steenstra (the “Complaint”). The Complaint alleges that the individual defendants breached their fiduciary duties and seeks,
among other relief, a declaration to that effect and an injunction prohibiting enforcement of certain provisions of the Company’s
amended and restated bylaws (the “Bylaws”) in connection