Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 100

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 3
Chunk 100
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 otherwise have negative consequences, including the payment to the Buyer an amount equal to the transaction expenses reasonably
incurred by the Buyer and its affiliates, plus a termination fee equal to $1 million, which may materially and adversely affect our sales,
financial condition and results of operations, as well as the price per share for our common stock, and could cause us not to realize
some or all of the benefits that we expect to achieve if the transactions contemplated by the Asset Purchase Agreement are successfully
completed within its expected timeframe.

While
the proposed transaction is pending, we are subject to business uncertainties and contractual restrictions that could disrupt our business.

Whether
or not the proposed transaction is consummated, the proposed transaction may disrupt our current plans and operations, which could have
an adverse effect on our business and financial results. The uncertainties about the effect of the proposed transaction may impact our
ability to retain, recruit, and hire employees and key personnel while the transaction is pending or if it fails to close. We may incur
unexpected costs, charges or expenses resulting from the proposed transaction. Furthermore, we cannot predict how our current customers,
prospective customers and other partners will view or react to the proposed transaction during the pendency or upon consummation of the
proposed transaction. If we are unable to reassure our partners to continue their partnerships or affiliations with us, our revenues,
financial condition and results of operations may be adversely affected.

Employees
and key personnel could experience uncertainty or face significant burdens from their commitment of substantial amounts of time and attention
toward the completion of the proposed transaction. If, despite our efforts, key personnel depart because of these uncertainties and burdens,
or because they do not wish to transition with the Social Mobile business post-closing, our business and results of operations may be
adversely affected. In addition, whether or not the proposed transaction is consummated, while it is pending we will continue to incur
costs, fees, expenses and charges related to the proposed transaction, including legal, accounting, financial advisor, filing, printing
and mailing fees, which may materially and adversely affect our financial condition and results of operations.

In
addition, the Asset Purchase Agreement generally requires the Company to operate its business in the ordinary course of business consistent
with past practice, pending consummation of the Asset Purchase Agreement, and also restricts us from taking certain actions with respect
to our business and financial affairs without the consent of Social Mobile. Such restrictions will be in place until the Asset Purchase