Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 38

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 38
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ivables 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 June 30, 2025, there were no borrowings outstanding under the Receivables Financing Agreement.
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.”

To improve its liquidity, on August 7,
2025, the Company entered into a factoring agreement (the “Additional Receivables Financing Agreement”) with Tradewind GmbH
(“Tradewind”), pursuant to which Tradewind will provide international receivables factoring to the Company, pursuant to which
Tradewind will advance 85% of the face value of the receivables being sold by the Company, up to a maximum of €3.0 million of eligible
customer invoices from the Company. For additional information, refer to Note 11, Subsequent Events, to the condensed consolidated financial
statements contained within this report under the title “Additional Receivables Financing Agreement.”

24

Promissory
Notes

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.
For additional information, refer to Note 4, Promissory
Note, to the condensed consolidated financial statements contained within this report.

On
July 11, 2025, the Company entered into an additional note purchase agreement with the Lender pursuant to which the Company issued and
sold to the Lender an additional promissory note (the “July Note”). Starting on January 11, 2026, the Lender may exercise
its right to redeem up to $275,000 of the July Note per calendar month. Additionally, the July Note was secured by a first-priority interest
in all of the Company’s assets. The July Note requires the Company to prepay an amount equal to not less than 33% of the net proceeds
received from any equity or debt financing. For additional information, refer to Note 11, Subsequent Events