Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 60

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 60
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 nevertheless determine—based on its recent, broadened interpretation in reverse merger contexts—that
we may be deemed as a former “shell company.” The uncertainty stemming from a potential post-closing SEC determination could
introduce additional execution and timing risk to our financing and strategic plans following any RTO or alternative transaction.

In
the event that the proposed transactions are not consummated, the trading price of our common stock and our future business and results
of operations may be negatively affected.

The
conditions to the consummation of the proposed transactions — either the Asset Purchase Agreement or an alternative transaction,
including RTO — may not be satisfied as noted above. If the proposed transactions are not consummated, we would remain liable for
significant transaction costs and termination fees, and the focus of our management would have been diverted from seeking other potential
strategic opportunities, in each case without realizing any benefits of the proposed transactions.

For
these and other reasons, not consummating the proposed transactions could adversely affect our business and results of operations. Furthermore,
if we do not consummate the proposed transaction, the price of our common stock may decline significantly from the current market price,
and you may not recover your investment. Certain costs associated with the proposed transactions have already been incurred or may be
payable even if the proposed transactions are not consummated. Finally, any disruptions to our business resulting from the announcement
and pendency of the transaction, including any adverse changes in our relationships with our customers, vendors, and employees or recruiting
and retention efforts, could accelerate in the event of or continue following a failed transaction.

35

The
Asset Purchase Agreement contains a termination fee and restrictions on solicitation that limit our ability to pursue alternatives to
the Asset Purchase Agreement.

Under
the Asset Purchase Agreement, we are restricted from soliciting, initiating, inducing, or knowingly encouraging or knowingly facilitating
alternative acquisition proposals from third parties, and/or providing non-public information to third parties relating to any inquiries,
proposals or offers that would reasonably be expected to lead to certain transactions involving a third party, including a merger, business
combination or similar transaction, subject to specified exceptions, including the solicitation of an RTO transaction that is not impacting
the disposition of the legacy business. The Asset Purchase Agreement also contains termination provisions for both us and Buyer, including
the right of the Company to terminate the Asset Purchase Agreement to accept a Superior Proposal (as defined in the Asset Purchase Agreement),
subject to and in accordance with the terms and conditions of