Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 125

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1A
Chunk 125
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 “We are dependent on the continued services and performance of a concentrated and limited group of senior
management and other key personnel, the loss of any of whom could adversely impact our business” is amended and restated as
follows:

We
are dependent on the continued services and performance of a concentrated and limited group of senior management and other key personnel,
the loss of any of whom could adversely impact our business.

Our
future success depends in large part on the continued contributions of a concentrated and limited group of senior management and other
key personnel. Beginning in 2021, we outsourced substantially all of our manufacturing work to third parties. As of December 31, 2024,
our worldwide employee headcount was 131 employees.

Due
to the small size of our Company and our limited number of employees, each member of our executives, managers and other key personnel
serves a critical role to our success. If we are unable to retain sufficiently experienced and capable employees, including those who
can help us increase revenues generated from our end market segments, our business and financial results may suffer. The loss of the
services of any additional executives, managers or other key personnel could impede the achievement of our strategic objectives, seriously
harm our ability to successfully implement our business strategy and adversely impact our operating results. In addition, if additional
executives, managers or other key personnel resign, retire or are terminated, or their service is otherwise interrupted, including due
to global pandemics, we may not be able to replace them in a timely manner and we could experience significant declines in productivity
and/or errors due to insufficient staffing or managerial oversight. Moreover, experienced and capable employees in the technology industry
remain in high demand, and there is continual competition for their talents. Given our size, we may be at a disadvantage relative to
our larger competitors in the competition for these personnel.

33

Moreover,
our stockholders did not approve the proposed amendment to the Sonim Technologies, Inc. 2019 Equity Incentive Plan at our 2025 annual
meeting, which would have authorized an additional 600,000 shares of common stock for issuance. As a result, no shares remain available
for equity awards to our independent directors, officers, or employees. Combined with our limited cash resources, this restriction may
limit our ability to offer competitive compensation packages, potentially undermining our efforts to retain and incentivize key talent.
The inability to retain or adequately compensate our senior management and other key personnel could materially and adversely affect