Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 76

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 76
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 flexibility to meet our capital needs. We expect these sources of
liquidity to be sufficient to offset any future operating losses and to fund the development of new products over the next year.
Increased revenue from new products is expected to further improve cash flow over the next year. We expect to meet all obligations
with existing cash and subsequent funding for a period of at least one year from the date of release of the consolidated financial
statements included in this Quarterly Report on Form 10-Q.

27

Cash
Flows

The
following table summarizes our sources and uses of cash for the periods presented (in thousands):

    Six Months Ended June 30, 

    2025  
    2024 
  
    Net cash used in operating activities 
    $(14,488) 
    $(3,560)
  
    Net cash used in investing activities 
     —  
     (69)
  
    Net cash provided by financing activities 
     11,151  
     3,832 
  
    Net decrease in cash and cash equivalents 
    $(3,337) 
    $203 

Cash
flows from operating activities

For
the six months ended June 30, 2025, cash used in operating activities was $14.5 million, primarily attributable to net cash used in
a change in net operating assets and liabilities of $6.2 million and a net loss of $7.0 million, excluding net non-cash operating
activity of $1.3 million. The change in net operating assets and liabilities was primarily due to net payments made on accounts
payable and accrued liabilities and an increase in contract fulfillment assets, which are capitalized costs for product
certifications, partially offset by a decrease in accounts receivable. Non-cash charges primarily consist of $5.5 million related to
the expiration of customer allowance agreements, $1.9 million in depreciation and amortization, $1.2 million for stock-based
compensation, and $1.1 million for the impairment of contract fulfillment assets related to the end of life of our legacy
products.

For
the six months ended June 30, 2024, cash used in operating activities was $3.6 million, primarily attributable to a net loss of $9.5
million, excluding net non-cash operating activity of $5.9 million, partially offset by net cash provided by a change in net operating
assets and liabilities of $0.1 million. Non-cash charges