Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 23

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 23
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 Frontline certification.
In the first quarter of 2025 we also announced the upcoming launch and availability of the XP Pro Thermal 5G smartphone for Europe which
includes an SDK-enabled Sonim IRIS software for custom application development and an integrated thermal camera by FLIR® that benefits
a number of vertical trades such as electricians, plumbers, public safety, construction, agriculture, amongst others.

Geographic
market expansion continues with agreements and product availability through new distribution partners in Europe and South Africa, catering
to carrier, reseller, and enterprise sales channels. New partners include TCCM, Brodos, Modino, Ingram Micro, and Cernotech, which bolster
our presence in these regions. This strategic alignment supports our commitment to offering reliable solutions and expanding our customer
base.

17

With
the primary sales channels in the U.S. and Canada consisting of large wireless carriers, the Company’s customer base is highly
concentrated. For the three months ended March 31, 2025, wireless carriers contributed 84% of our total net revenues, 32% of which
related to the expiration of customer allowance agreements as three of our legacy phones approach end-of-life, with our top three
carrier customers accounting for 74% of our total net revenues, 32% of which related to the expiration of customer allowance agreements. Our rugged smartphones represented 66% of our total net revenues, 30% of which related to the expiration of customer allowance agreements,
while feature phones were 29% of our total net revenues, and connected solutions were 4% of our total net revenues.

In
alignment with Sonim Technologies’ commitment to quality, reliability, and regulatory compliance, we have prioritized our Trade
Agreements Act (“TAA”) initiatives. TAA compliance is crucial in enhancing our market strategy, particularly in expanding
opportunities within government and enterprise markets, which demand stringent adherence to regulatory standards. By ensuring our products
meet TAA requirements, we reinforce our position as a trusted provider of enterprise 5G solutions.

This
initiative underscores our dedication to delivering products that not only meet industry-leading standards but also comply with U.S.
federal procurement regulations, thereby enhancing our competitiveness in securing government contracts.

Looking
ahead, Sonim is focused on bringing our new products and solutions offering to our expanded portfolio throughout 2025.

Recent
Developments

Recent
Product Awards

The
first step in selling our products through wireless telecommunications carriers is to receive a product award