Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 9

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 9
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 month. Under the agreement, the Company must repurchase any invoices that
LS deems to be uncollectible or no longer qualify as an Eligible Account, as defined in the Receivables Financing Agreement. The Company
is accounting for this transaction as a secured borrowing and recognizes a factoring liability for any advances until the accounts receivables
are collected. As of March 31, 2025, and December 31, 2024, there was $642 and $591, respectively, outstanding under the Receivables
Financing Agreement, which is included in Accrued Liabilities in the Condensed Consolidated Balance Sheets.

The
Receivables Financing Agreement has an initial term of twelve months, subject to automatic annual extension unless terminated. Additionally,
under certain circumstances and unless waived by LS, the Company will be obligated to pay a missing notation fee of 15% in the event
of its failure to affix a certain legend regarding assignment or a misdirected payment fee in the amount of 15%. In the event of the
Company’s default, the Company’s payment obligations will be accelerated, and, in addition to the aforementioned fees payable
to LS, the Company will be required to pay the default interest rate of the lesser of 24% per annum or the maximum rate permitted by
law until the default is cured or until all Company’s obligations are paid in full.

The
Company’s obligations under the Receivables Financing Agreement are secured by a lien on all of the Company’s accounts receivable,
inventory, and related property, excluding accounts receivable from certain specified counterparties.

The
Receivables Financing Agreement contains representations and warranties by the Company and LS, certain indemnification provisions in
favor of LS and customary covenants (including limitations on other debt, liens, acquisitions, investments and dividends), and events
of default (including payment defaults, breaches of covenants, a material impairment in LS’s security interest or in the collateral,
and events relating to bankruptcy or insolvency). The Receivables Financing Agreement can be terminated by either party upon written
notice or by LS upon the occurrence of certain events including the Company’s default.

    9

NOTE
4 —Promissory Note

On
February 21, 2025, the Company entered into a note purchase agreement (the “Purchase Agreement”) with Streeterville Capital,
LLC (the “Lender”) pursuant to which the Company issued and sold to the Lender a promiss