Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 127

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 127
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 premium for their common stock over then current
market prices. These provisions could also discourage proxy contests and make it more difficult for you and other stockholders to elect
directors of your choosing and to cause us to take other corporate actions than you desire.

Additionally,
we are subject to the provisions of Section 203 of the General Corporation Law of the State of Delaware (“DGCL”), which prohibit
a publicly-held Delaware corporation from engaging in a business combination with an interested stockholder, generally a person which
together with its affiliates owns, or within the last three years has owned, 15% of our voting stock, for a period of three years after
the date of the transaction in which the person became an interested stockholder, unless the business combination is approved in a prescribed
manner. These provisions of DGCL may have the effect of delaying, deferring or preventing a change in control, and may discourage bids
for our common stock at a premium over its market price.

Additionally,
in April of 2025, we entered into the Rights Agreement, which was previously approved by our board. In connection with the Rights Agreement,
a dividend was declared of one preferred stock purchase right for each share of the Common Stock of the Company outstanding at the Record
Date (individually, a “Right” and collectively, the “Rights”). In general terms, the Rights Agreement imposes
a significant penalty upon any person or group that acquires beneficial ownership of 15.5% (or, in the case of passive institutional
investors, an amount of “less than 20%”) or more of the outstanding shares of Common Stock without the approval of the Board.
The Rights will expire on April 21, 2026

The
Rights Agreement could have the effect of discouraging, delaying or preventing a change in management or control over us. While there
is no plan to do so at this time, our board may choose to extend the current Rights Agreement or adopt a new rights agreement in the
future.

The
risk factor titled “We are dependent on the continued services and performance of a concentrated and limited group of senior
management and other key personnel, the loss of any of whom could adversely impact our business” is amended and restated as
follows:

We
are dependent on the continued services and performance of a concentrated and limited group of senior management and other key personnel,
the loss of any of whom could adversely impact our business.

Our
future success depends in large part on the continued contributions of