Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 30

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 30
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 in contract fulfillment assets, which are capitalized costs for product certifications, partially offset by a decrease in inventory.
Non-cash charges primarily consist of $5.3 million related to the expiration of customer allowance agreements,
$1.1 million in depreciation and amortization and $0.3 million for stock-based compensation.

For
the three months ended March 31, 2024, cash used in operating activities was $0.2 million, primarily attributable to a net loss of $2.9
million, partially offset by net cash provided by a change in our operating assets and liabilities of $1.5 million and net non-cash charges
of $1.3 million. The change in net operating assets and liabilities was primarily due to a decrease in accounts receivable and inventory,
partially offset by an increase in contract fulfillment assets. Non-cash charges primarily consist of $0.9 million in depreciation and
amortization and $0.3 million for stock-based compensation.

Cash
flows from investing activities

For
the three months ended March 31, 2025, and 2024, there were no significant investing activities.

Cash
flows from financing activities

For
the three months ended March 31, 2025, the Company received $3.5 million in cash, net of issuance costs, from ATM sales, as well as $2.8
million in net proceeds from the issuance of the Note.

For
the three months ended March 31, 2024, there were no significant financing activities.

Material
Cash Requirements

There
have been no material changes to our material cash requirements from those disclosed in our Annual Report on Form 10-K for the year ended
December 31, 2024.

22

Critical
Accounting Policies and Estimates

Our
discussion and analysis of financial condition and results of operations is based upon our condensed consolidated financial statements,
which have been prepared in conformity with accounting principles generally accepted in the United States of America. Certain accounting
policies and estimates are particularly important to the understanding of our financial position and results of operations and require
the application of significant judgment by our management or can be materially affected by changes from period to period in economic
factors or conditions that are outside of our control. As a result, they are subject to an inherent degree of uncertainty. In applying
these policies, our management uses their judgment to determine the appropriate assumptions to be used in the determination of certain
estimates. Those estimates are based on our historical operations