Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 17

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 17
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 the Note, with the
outstanding balance of the February Note following application of the Trigger Effect (the “Mandatory Default Amount”) becoming
immediately due and payable in cash, and (ii) cause interest on the outstanding balance of the February Note beginning on the date the
applicable Event of Default occurred to accrue at an interest rate equal to the lesser of 22% per annum or the maximum rate permitted
under applicable law. However, certain Trigger Events, such as bankruptcy or insolvency, automatically result in an Event of Default,
making the outstanding balance immediately payable at the Mandatory Default Amount without notice.

July
Purchase Agreement

On
July 11, 2025, the Company entered into a note purchase agreement (the “July Purchase Agreement”) with the Lender pursuant
to which the Company issued and sold to the Lender a promissory note in the original principal amount of $2,755 (the “July Note,”
and together with the February Note, the “Notes”).

July
Purchase Agreement

Pursuant
to the terms of the July Purchase Agreement, until all of the Company’s obligations under the July 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 July 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 a conversion right, or the conversion price, varies with the market price of the Company’s
common stock, the issuance of any securities with reset provisions and the issuance of any securities in connection with Section 3(a)(9)
exchange, a Section 3(a)(10) settlement, or any other similar settlement or exchange. Restricted Issuances do not include ATM facilities,
commercial bank loans or lines of credit, leases, grants pursuant to the Company’s incentive plans,