Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 13

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 13
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right to redeem up to $330 under the Note per calendar month. The Company must pay the redeemed amount in cash within three trading days
of receiving a redemption notice. On three separate occasions and not more than once every 90 calendar days, the Company may defer any
redemptions the Lender could otherwise make during a calendar month, provided, however, that each deferral increases the outstanding
balance of the Note by 1%.

    11

At
any time following the occurrence of a Major Trigger Event or Minor Trigger Event (each as defined in the Note), the Lender may increase
the outstanding balance of the Note by 15% for each occurrence of any Major Trigger Event and 5% for each occurrence of any Minor Trigger
Event (the “Trigger Effect”), provided that the Trigger Effect may only be applied three times with respect to Major Trigger
Events and three times with respect to Minor Trigger Events.

Subject
to certain exceptions described below, if the Company fails to cure a Trigger Event within five trading days following the date of transmission
of written demand notice by the Lender, the Trigger Event will automatically become an Event of Default (as defined in the Note). Following
the occurrence of any Event of Default, the Lender may, upon written notice to the Company, (i) accelerate the Note, with the outstanding
balance of the Note following application of the Trigger Effect (the “Mandatory Default Amount”) becoming immediately due
and payable in cash, and (ii) cause interest on the outstanding balance of the Note beginning on the date the applicable Event of Default
occurred to accrue at an interest rate equal to the lesser of 22% per annum or the maximum rate permitted under applicable law. However,
certain Trigger Events, such as bankruptcy or insolvency, automatically result in an Event of Default, making the outstanding balance
immediately payable at the Mandatory Default Amount without notice.

The
following table presents the components of the net carrying amount of the Note as of June 30, 2025:

 Schedule
of Components of Net Carrying Amount

    Principal 
    $3,300 
  
    Less: unamortized debt discount and debt issuance costs 
     (384)
  
    Long term debt 
    $2,916 
  
    Current portion 
    $2,916 
  
    Long-term portion 
    $— 

The
effective interest rate on the Note was 22.6% for the period from the date of issuance through