Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 145

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1A
Chunk 145
---
former shell
    company.”

In
addition, our stockholders may be less inclined to approve the Asset Purchase Agreement in the absence of a concurrently announced RTO
transaction. Failure to obtain stockholder approval would result in the termination of the Asset Purchase Agreement and would require
us to pay the Buyer (i) reimbursement of transaction-related expenses reasonably incurred by the Buyer and its affiliates, and (ii) a
termination fee of $1 million. These outcomes could materially and adversely affect our sales, financial condition, and results of operations,
as well as the trading price of our common stock. They may also prevent us from realizing some or all of the expected benefits associated
with completing the Asset Purchase Agreement and any related strategic transactions within the anticipated timeframe.

In
the event that the proposed transactions are not consummated, the trading price of our common stock and our future business and results
of operations may be negatively affected.

The
conditions to the consummation of the proposed transactions — either the Asset Purchase Agreement or an RTO — may not be
satisfied as noted above. If the proposed transactions are not consummated, we would remain liable for significant transaction costs
and termination fees, and the focus of our management would have been diverted from seeking other potential strategic opportunities,
in each case without realizing any benefits of the proposed transactions.

For
these and other reasons, not consummating the proposed transactions could adversely affect our business and results of operations. Furthermore,
if we do not consummate the proposed transaction, the price of our common stock may decline significantly from the current market price,
and you may not recover your investment. Certain costs associated with the proposed transactions have already been incurred or may be
payable even if the proposed transactions are not consummated. Finally, any disruptions to our business resulting from the announcement
and pendency of the transaction, including any adverse changes in our relationships with our customers, vendors, and employees or recruiting
and retention efforts, could accelerate in the event of or continue following a failed transaction.

34

The
Asset Purchase Agreement contains a termination fee and restrictions on solicitation that limit our ability to pursue alternatives to
the Asset Purchase Agreement.

Under
the Asset Purchase Agreement, we are restricted from soliciting, initiating, inducing, or knowingly encouraging or knowingly facilitating
alternative acquisition proposals from third parties, and/or providing non-public information to third parties relating to any inquiries,
proposals or offers that would reasonably be expected to lead to certain transactions involving a third party, including a merger