Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 95

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 4
Chunk 95
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ii) using a free writing prospectus, or (iii) taking advantage of well-known
    seasoned issuer status despite its public float; 

    ●
    potential
    delisting from Nasdaq; and

    ●
    market
    perception risks, including a potential depressive effect on the trading price of our common stock due to our classification as a
    “former shell company.”

In
addition, our stockholders may be less inclined to approve the Asset Purchase Agreement in the absence of a concurrently announced RTO
transaction or an alternative transaction creating stockholder value complementary to the Asset Purchase Agreement. Failure to obtain
stockholder approval would result in the termination of the Asset Purchase Agreement and would require us to pay the Buyer (i) reimbursement
of transaction-related expenses reasonably incurred by the Buyer and its affiliates, and (ii) a termination fee of $1 million. These
outcomes could materially and adversely affect our sales, financial condition, and results of operations, as well as the trading price
of our common stock. They may also prevent us from realizing some or all of the expected benefits associated with completing the Asset
Purchase Agreement and any related strategic transactions within the anticipated timeframe.

Even
if we complete an RTO or another alternative transaction, we may be deemed a “former shell company,” which would impose significant
regulatory limitations and adversely affect our ability to access capital markets and the liquidity of our common stock.

Even
if we identify and consummate an RTO or an alternative transaction intended to avoid shell company status and launch a new line of business,
the SEC Staff could nevertheless determine—based on its recent, broadened interpretation in reverse merger contexts—that
we may be deemed as a former “shell company.” The uncertainty stemming from a potential post-closing SEC determination could
introduce additional execution and timing risk to our financing and strategic plans following any RTO or alternative transaction.

In
the event that the proposed transactions are not consummated, the trading price of our common stock and our future business and results
of operations may be negatively affected.

The
conditions to the consummation of the proposed transactions — either the Asset Purchase Agreement or an alternative transaction,
including RTO — may not be satisfied as noted above. If the proposed transactions are not consummated, we would remain liable for
significant transaction costs and termination fees, and the focus of our management would have been diverted from seeking other potential
strategic opportunities, in each case without realizing any benefits of the proposed transactions.

For