Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 106

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 106
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 to regain compliance) and either a minimum
stockholders’ equity of $2,500,000, or a minimum market value of our common stock of at least $35,000,000. If we do not meet these
continued listing requirements, our common stock could be delisted.

We
have a history of receiving deficiency letters from Nasdaq. On August 13, 2025, we received notice that we were not in compliance with
the $1.00 minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2). On August 22, 2025, we received notice that we were not
in compliance with Nasdaq Listing Rule 5550(b)(1) because our stockholders’ equity was below $2.5 million. While we are working
to address these deficiencies and have received an extension through December 31, 2025, to regain compliance with Listing Rule 5550(b)(1),
there can be no assurance that we will regain compliance with, or continue to satisfy, any applicable Nasdaq requirements within the
relevant cure periods, if at all.

If
Nasdaq delists our common stock from trading on its exchange and we are not able to list our common stock on another national securities
exchange, we expect our common stock could be quoted on an over-the-counter market. If this were to occur, we could face significant
material adverse consequences, including:

    ●
    a
    limited availability of market quotations for our common stock;

    ●
    reduced
    liquidity for our common stock;

    ●
    a
    determination that our common stock is a “penny stock” which will require brokers trading in our common stock to adhere
    to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities;

    ●
    negative
    publicity;

    ●
    a
    limited amount of news and analyst coverage;

    ●
    loss
    of eligibility to register the sale or resale of our securities on Form S-3; and

    ●
    a
    decreased ability to issue additional securities or obtain additional financing in the future.

32

The
risk factor titled “Some provisions of Delaware law and our certificate of incorporation and bylaws may delay or prevent a change
in control and may discourage bids for our common stock at a premium over its market price” is amended and restated as follows:

Some
provisions of Delaware law and our certificate of