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

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 25
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 During the three months ended
March 31, 2025, a total of 1,349,840 shares of common stock were sold under the Sales Agreement for net proceeds of $3.7 million after
payment of commission fees and other related expenses of $0.1 million. Subsequent to March 31, 2025, a total of 2,130,437 shares of common
stock were sold under the Sales Agreement for net proceeds of $4.5 million after payment of commission fees and other related expenses
of $0.1 million. As of the filing date of this report, the Company has completed its sales of shares of common stock under the Sales
Agreement and the ATM program has been terminated.

Receivables
Financing Agreement

To
improve its liquidity, on September 23, 2024, the Company entered into an invoice purchase agreement (the “Receivables Financing
Agreement”) with LS DE LLC (“LS”), pursuant to which LS will provide receivables factoring to the Company, pursuant
to which LS will advance 80% of the face value of the receivables being sold by the Company, up to a maximum of $2.5 million of eligible
customer invoices from the Company. As of March 31, 2025, there was $0.6 million outstanding under the Receivables Financing Agreement,
which is included in Accrued Liabilities in the Condensed Consolidated Balance Sheets. For additional information, refer to Note 1—The
Company and Its Significant Accounting Policies to the condensed consolidated financial statements contained within this report under
the title “Receivables Financing Agreement.”

Promissory
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