Company: SONM
Filing Date: 2025-06-20
Form Type: S-1
Source: 0001641172-25-015940
Chunk: 7

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-06-20
Form: S-1
Chunk 7
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 Letter of Intent with Social Mobile and Reverse Acquisition Strategy The Special Committee of our Board of Directors, in consultation with its legal and financial advisors, is overseeing the process to identify and evaluate potential strategic alternatives with the goal of maximizing stockholder value. Given that this process is occurring in parallel with a proxy contest, and in order to ensure that material information is not withheld from stockholders, the Special Committee has provided and expects to continue providing significant updates regarding the strategic alternatives process. To date, Sonim has announced that it has entered into a non-binding letter of intent with Social Mobile and is working toward a definitive agreement. In addition, Sonim has disclosed that the Special Committee has determined it is optimal to concurrently pursue a reverse takeover transaction, seeking to preserve Sonim’s public listing and to secure an additional $15 million value for Sonim’s stockholders as well as a prospect to invest in a promising enterprise. While the Special Committee is confident in the merits of this strategy and believes it is based on thorough analysis, we stress that there can be no assurance that Sonim will enter into a definitive agreement with any counterparty. Even if such an agreement is executed, there is no guarantee that any proposed transaction will be consummated on the expected terms or at all. For additional information, please carefully review the risk factor titled “ Our evaluation of strategic alternatives may not lead to a favorable outcome and could create business disruption and stock price volatility ” regarding the risks associated with Sonim’s strategic alternatives process. Recent Product Awards The first step in selling our products through wireless telecommunications carriers is to receive a product award from the carrier. The award documents the intent of the carrier to carry the proposed product and offer it to customers through their stores or online. The carrier and Sonim agree to a launch date that is generally nine months or longer from the date of the product award. After the product award, the Company and its partners complete the design that includes the unique specifications from the carrier, test the device, obtain certification from the carrier to sell the device, and begin full scale manufacturing of the product based on purchase orders issued by the carrier. As of the filing date of this prospectus, Sonim is completing the development, testing and certification of new products that it expects to launch in the second or third quarter of 2025 with various carriers.

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Equity Financing

On May 12, 2025,
we consummated a private placement and sold an aggregate of 1,100,000 shares of our common stock and warrants to purchase