Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 122

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1A
Chunk 122
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 2025 annual meeting and the Company entered into the Asset Purchase Agreement —
we incurred significant expenses in connection with our defense against Orbic’s actions, and there can be no assurance that Orbic
would not attempt to disrupt the Company’s initiatives, including the RTO search and the consummation of the Asset Purchase Agreement.

Responding
to such actions by activist stockholders can be costly and time-consuming, disrupt our operations, and divert the attention of management
and our board of directors. If AJP and Orbic are successful in the litigation and proxy contest, they could gain control of our board
of directors, potentially pursuing actions advanced by our competitor that conflict with our long-term strategic objectives. Actions
of AJP and Orbic may also discourage or deter a potential acquirer of Sonim from considering Sonim as a desirable acquisition target.
The presence of an activist stockholder or the perception of a potential hostile takeover may create uncertainty regarding our future
direction, strain relationships with business partners, and impact our ability to attract and retain key personnel.

The
risk factor titled “We are required to meet the Nasdaq continued listing requirements and other Nasdaq rules, or we may risk
delisting. Delisting could negatively affect the price of our common stock, which could make it more difficult for us to sell securities
in a future financing or for you to sell our common stock.” is amended and restated as follows:

We
are required to meet the Nasdaq continued listing requirements and other Nasdaq rules, or we may risk delisting. Delisting could negatively
affect the price of our common stock, which could make it more difficult for us to sell securities in a future financing or for you to
sell our common stock.

We
are required to meet the continued listing requirements of the Nasdaq and other Nasdaq rules, including those regarding director independence
and independent committee requirements, minimum stockholders’ equity, minimum share price and certain other corporate governance
requirements. In particular, we are required to maintain a minimum bid price for our listed common stock of $1.00 per share (which we
previously failed to meet resulting in two reverse stock splits in a five-year period in order to regain compliance) and either a minimum
stockholders’ equity of $2,500,000, or a minimum market value of our common stock of at least $35,000,000. If we do not meet these
continued listing requirements, our common stock could be delisted.

We
have a history