Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 140

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1A
Chunk 140
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 receiving deficiency letters from Nasdaq.

If
Nasdaq delists our common stock from trading on its exchange and we are not able to list our common stock on another national securities
exchange, we expect our common stock could be quoted on an over-the-counter market. If this were to occur, we could face significant
material adverse consequences, including:

    ●
    a limited availability
    of market quotations for our common stock;

    ●
    reduced liquidity for our
    common stock;

    ●
    a determination that our
    common stock is a “penny stock” which will require brokers trading in our common stock to adhere to more stringent rules
    and possibly result in a reduced level of trading activity in the secondary trading market for our securities;

    ●
    negative publicity;

    ●
    a limited amount of news
    and analyst coverage;

    ●
    loss of eligibility to
    register the sale or resale of our securities on Form S-3; and

    ●
    a decreased ability to
    issue additional securities or obtain additional financing in the future.

31

The
risk factor titled “Some provisions of Delaware law and our certificate of incorporation and bylaws may delay or prevent a change
in control and may discourage bids for our common stock at a premium over its market price” is amended and restated as follows:

Some
provisions of Delaware law and our certificate of incorporation and bylaws and the adoption of the rights plan may delay or prevent a
change in control and may discourage bids for our common stock at a premium over its market price.

Our
certificate of incorporation and bylaws provide for, among other things:

    ●
    the authorization of undesignated
    preferred stock, the terms of which may be established and shares of which may be issued without stockholder approval;

    ●
    advance notice requirements
    for stockholder proposals; and

    ●
    certain limitations on
    convening special stockholder meetings.

These
anti-takeover defenses could discourage, delay or prevent a transaction involving a change in control of our company or changes in our
management, including transactions in which our stockholders might otherwise receive a 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