Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 4

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 4
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 in the event of the other party’s material breach or non-performance of certain representations, warranties, and
    covenants of the Asset Purchase Agreement (a “Material Breach”); 

    6

    (vi)
    by
    Buyer in the event the Company’s board elects not to recommend that the Company’s stockholders approve and adopt the
    Asset Purchase Agreement or the Company breaches its non-solicitation obligations; and 

    (vii)
    by
    the Company, if prior to obtaining the Stockholder Approval, its board of directors elects to proceed with an Alternative Transaction
    as a result of a Superior Proposal (together with item (vi) above, the “Adverse Recommendation”). 

The
Company will be obligated to pay to the Buyer an amount equal to the transaction expenses reasonably incurred by the Buyer and its affiliates,
plus a termination fee equal to $1,000 within three business days following the termination of the Asset Purchase Agreement, if the latter
is terminated because of:

    (i)
    the
    Asset Purchase Agreement is not consummated on or before the Outside Date;

    (ii)
    the
    Company’s Material Breach;

    (iii)
    the
    Illegality;

    (iv)
    the
    Stockholder Approval is not obtained; or 

    (v)
    the
    Adverse Recommendation. 

Other
Terms

The
Asset Purchase Agreement contains customary representations and warranties of the parties. Additionally, the Company has agreed to certain
covenants, including, among others, (i) covenants relating to the conduct of its business during the interim period between the execution
of the Asset Purchase Agreement and its consummation and (ii) not to engage in specified types of transactions or take specified actions
during such period unless agreed to in writing by the Buyer.

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.

Reverse
Stock Split

All
common share and per-share amounts in this Form 10-Q have been retroactively restated to reflect the effect of the Reverse Stock Splits,
as defined below.

2024
Reverse Stock Split

On
July 17, 2024, the