Company: SONM
Filing Date: 2025-09-19
Form Type: DEF 14A
Source: 0001493152-25-014244
Chunk: 25

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-09-19
Form: DEF 14A
Chunk 25
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Stock Split constitutes a “recapitalization,” the receipt of cash in lieu of fractional shares of common stock pursuant
to the Reverse Stock Split should be a taxable transaction for U.S. Federal income tax purposes. A U.S. holder who receives cash in
exchange for a fractional share will generally recognize capital gain or loss for U.S. Federal income tax purposes equal to the difference,
if any, between the amount of cash received in lieu of the fractional share and the portion of the U.S. holder’s adjusted tax basis
allocated to the fractional share exchanged. Capital gains or losses would be treated as short-term with respect to fractional shares with a holding period of
one year or less and as long-term with respect to fractional shares with a holding period of more than one year. The deductibility of
net capital losses by individuals and corporations is subject to limitations. Stockholders should consult their own tax advisors regarding
the tax consequences to them of a payment for fractional shares.

Information Reporting and Backup Withholding

Cash payments received
by a U.S. holder of our common stock pursuant to the Reverse Stock Split are generally subject to information reporting and may be subject to backup
withholding at the applicable rate (currently 24%) if the holder fails to provide a valid
taxpayer identification number and comply with certain certification procedures or otherwise establish an exemption from backup withholding.
Backup withholding is not an additional U.S. Federal income tax. Rather, the U.S. Federal income tax liability of the person subject
to backup withholding will be reduced by the amount of the tax withheld. If backup withholding results in an overpayment of taxes, a
refund may be obtained provided that the required information is timely furnished to the IRS.

Vote required

Approval
of the Reverse Stock Split Proposal requires the affirmative vote of holders of a majority of the votes cast affirmatively or negatively
(excluding abstentions) on the proposal at the Special Meeting. Abstentions will have no effect on the proposal. No broker non-votes
are expected in connection with the proposal.

Board recommendation

The board unanimously
recommends a vote FOR the Reverse Stock Split Proposal.

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<div align='center'>PROPOSAL 2— INCREASE OF AUTHORIZED SHARES OF COMMON STOCK</div>

General

The Board has unanimously approved, declared advisable, and recommended that our stockholders approve, an amendment to our Certificate of Incorporation, as amended, in substantially the form attached hereto as Annex B (the “Authorized Shares Amendment”), to increase the