Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 2

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 2
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 as seller, Pace Car Acquisition LLC, as buyer, (the “Buyer”), the Seller
Representative named in the Asset Purchase Agreement, and, Social Mobile Technology Holdings LLC (the “Parent”), solely for
the purpose of guaranteeing complete payment and performance obligations of the Buyer contained in the Asset Purchase Agreement.

The
Asset Purchase Agreement pertains to the sale of substantially all of the Company’s assets. The Company also announced a strategic
initiative to pursue a potential reverse takeover transaction in addition to the consummation of the asset sale, with the objective of
maximizing stockholder value. This transaction would allow the public vehicle to continue as a reporting entity under a new name and
trading symbol, and with a new business focus.

Reverse
Stock Split

On
July 17, 2024, the Company effected a 1-for-10 reverse stock split of its issued and outstanding common stock (the “Reverse Stock
Split”). The Company’s common stock began trading on the Nasdaq Capital Market on a post-split basis on July 18, 2024. As
a result of the Reverse Stock Split, each share of common stock issued and outstanding immediately prior to July 17, 2024, was automatically
converted into one-tenth (1/10) of a share of common stock. The Reverse Stock Split affected all common stockholders uniformly and did
not alter any stockholder’s percentage interest in the Company’s equity, except to the extent that the Reverse Stock Split
would result in a stockholder owning a fractional share. No fractional shares were issued in connection with the Reverse Stock Split.
Stockholders who otherwise would be entitled to receive a fractional share instead were entitled to receive one whole share in lieu of
such fractional share.

The
Reverse Stock Split did not change the par value of the common stock or the authorized number of shares of common stock. All outstanding
stock options, restricted stock units, and warrants entitling their holders to purchase or obtain or convert into shares of our common
stock were adjusted, as required by the terms of these securities.

The
Company’s stockholders’ equity, in the aggregate, remained unchanged following the Reverse Stock Split. Net income (loss)
per share increased because there were fewer shares of common stock outstanding. There were no other accounting consequences, including
changes to the amount of stock-based compensation expense to be recognized in any period, that arose as a result of the Reverse Stock
Split.

All
common share and per-share amounts in