Company: SONM
Filing Date: 2025-06-20
Form Type: S-1
Source: 0001641172-25-015940
Chunk: 40

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-06-20
Form: S-1
Chunk 40
---
 which is the last reported sale price of our common stock on the Nasdaq on June 18, 2025, and our as adjusted net tangible book value as of March 31, 2025. For more information on the dilution you may suffer as a result of investing in this offering, see the section titled “ Dilution”below. In addition, to the extent we need to raise additional capital in the future and we issue shares of common stock or securities convertible or exchangeable for our common stock, our then-existing stockholders may experience dilution and the new securities may have rights senior to those of our common stock offered in this offering.

Certain of our affiliates and significant stockholders are not subject to lock-up or standstill agreements and may sell shares at any time, which could adversely affect the trading price of our common stock and our ability to raise capital.

While most of our officers and directors are subject to lock-up agreements restricting the transfer of their shares following the consummation of this offering, subject to customary exceptions, several of our significant stockholders are not subject to any similar contractual restrictions. Mr. Jeffrey Wang, AJP, the Orbic Group, and Laurence W. Lytton are not subject to any lockup or standstill agreement or other obligation to maintain their ownership of our shares. Subject to restrictions on the resale of our shares applicable to those stockholders pursuant to our insider trading policy and federal securities laws, those stockholders may sell their shares in the public market. As disclosed in the section titled “ Principal Securityholders,” these stockholders collectively own a substantial percentage of our outstanding shares. Sales of a significant number of shares by any of these stockholders in the public market, or even the perception that such sales may occur, could result in a decline in the market price of our common stock. These potential sales could also increase volatility in our stock price, particularly given the relatively low public float of our common stock. Moreover, such sales may impair our ability to raise capital through future equity offerings on favorable terms, or at all, by exerting downward pressure on our stock price or by signaling to potential investors a lack of long-term commitment by key stockholders. If we are unable to raise necessary capital when needed, our business, financial condition, and results of operations may be materially and adversely affected.

We have broad discretion in the use of the net proceeds from this offering and may not use them effectively.

Our management will have broad discretion in the application of the net proceeds from this offering, including for any