Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 38

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 38
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 agreement
(the “Registration Rights Agreement”), each with Chardan Capital Markets LLC (“Chardan”) related to a “ChEF,”
Chardan’s committed equity facility (the “Facility”).

Pursuant
to the ChEF Agreement, the Company has the right from time to time at its option to sell to Chardan up to the lesser of (i) $500.0 million
in aggregate gross purchase price of newly issued shares of the Company’s common stock, par value $0.001 per share (the “Common
Stock”), and (ii) the Exchange Cap (as defined in the ChEF Agreement), subject to certain conditions and limitations set forth
in the Purchase Agreement and applicable Nasdaq listing rules. The Company is under no obligation to sell any securities to Chardan under
the ChEF Agreement.

While
there are distinct differences, the facility pursuant to the ChEF Agreement is structured similarly to a traditional “at-the-market”
equity facility, insofar as it allows the Company to raise primary equity capital on a periodic basis. The net proceeds from any sales
under the ChEF Purchase Agreement will depend on the frequency with, and prices at, which the shares of our common stock are sold to
Chardan. The registration statement in connection with the Facility became effective on October 29, 2025.

24

For
additional information, refer to Note 5, Stockholders’ Equity, to the condensed consolidated financial statements contained within
this report under the title “ChEF Purchase Agreement.”

Equity
Financings

On
May 12, 2025, we consummated a private placement with two investors and sold 61,111 shares of our common stock, as adjusted for the Reverse
Stock Splits, and warrants to purchase up to 30,555 shares of our common stock, as adjusted for the Reverse Stock Splits, for an exercise
price of $24.9552 per share, as adjusted for the Reverse Stock Splits, for an aggregate purchase price of $1.38 million. We used the
net proceeds from the private placement for working capital and general corporate purposes. On August 7, 2025, the Company and the investor
entered into an amendment to reduce the exercise price of the warrants to $13.50 per share, as adjusted for the Reverse Stock Splits.

In
connection with the close on the capital investment on May 12, 2025, the Company issued warrants to Roth