Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 45

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 2
Chunk 45
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Note

On
February 21, 2025, the Company entered into the Purchase Agreement with the Lender pursuant to which the Company issued and sold to the
Lender the Note. Starting on August 21, 2025, the Lender may exercise its right to redeem up to $330,000 of the Note per calendar month.
If the Lender exercises this right, the Company’s liquidity will decrease. For additional information, refer to Note 4 —
Promissory Note to the condensed consolidated financial statements contained within this report.

Macroeconomic
Events

Worldwide
economic and political uncertainties and negative trends, including tariffs and increasing trade protectionism, inflation, tensions between
the U.S. and China, financial and credit market fluctuations, recession risks, labor shortages, supply chain disruptions, political election
cycles, changes in laws and interpretations of laws, changes in the volume and relative mix of U.S. government spending, cost-cutting
and efficiency initiatives and potential disruptions from international conflicts and acts of terrorism, have impacted and may continue
to impact our business and the business of our customers, while also disrupting sales channels and advertising and marketing activities.
See “Part II. Item 1A. Risk Factors” in this Form 10-Q for further discussion of the possible impact of these factors
and other risks on our business.

We
have implemented and continue to implement measures to address those challenges. We also continue to actively manage our inventory and
establish a relationship with third-party manufacturers in an effort to minimize supply chain disruptions. Nevertheless, the above-described
events had and will continue to impact the global macroeconomic and geopolitical environments, capital and commodity markets, and global
supply chains, which may have an adverse impact on our operations and hinder our ability to access capital, if needed. Our cost of revenue
may increase if the component prices increase.

19

Results
of Operations

The
results of operations for the first quarter of 2025 are not necessarily indicative of the operating results to be expected for the full
year or in any future period. Historically, we have experienced higher revenues following the release of new products and start of sales
with additional carriers and distributors.

The
following tables present key components of our results of operations (dollars in thousands):

    Three Months Ended March 31, 

    2025  
    2024  
    Increase (Decrease)  
    % 
  
    Net revenues 
    $16,721  
    $