Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 11

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 11
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 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.

    10

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 promissory note in the original principal
amount of $3,300 (the “Note”).

The
Purchase Agreement

Pursuant
to the terms of the Purchase Agreement, until all of the Company’s obligations under the Note and all other transaction documents
are paid and performed in full, the Company agreed to comply with certain covenants, including but not limited to the following: (i)
compliance with its filing requirements under the Securities Exchange Act of 1934, as amended, (ii) maintaining the Company’s listing
on a national securities exchange, and (iii) refraining from making any Restricted Issuances (as defined in the Purchase Agreement and
described below) without the Lender’s prior written consent, which consent may be granted or withheld in the Lender’s sole
discretion.

Subject
to certain customary exceptions set forth in the Purchase Agreement, Restricted Issuances include the incurrence or guaranty of any debt
obligations other than trade payables in the ordinary course of business, the issuance of any convertible securities in which the number
of shares that may be issued pursuant to