Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 69

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 69
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 applicable rules of Nasdaq and,
as a result, may qualify for exemptions from certain corporate governance requirements. If we rely on these exemptions, our stockholders
will not have the same protections afforded to stockholders of companies that are subject to such requirements” is deleted
in its entirety.

The
risk factor titled “Changes in U.S. trade policy, including the imposition of tariffs and restrictions and the resulting consequences,
may have a material adverse impact on our business, operating results, and financial condition” is amended and restated as
follows:

Changes
in U.S. trade policy, including the imposition of tariffs and restrictions and the resulting consequences, may have a material adverse
impact on our business, operating results, and financial condition.

We
cannot predict what changes to trade policy will be made, or the economic impact that changes to trade policy will have, including significant
increases in tariffs on goods imported into the United States, particularly tariffs on products manufactured abroad, including China
and other countries, and the length of time such tariffs may remain in place, or whether the entry into new bilateral or multilateral
trade agreements will occur. The U.S. has imposed tariffs on foreign imports into the United States on 180 countries and territories,
which range from 10% to 145%, including, most relevant to us, an additional 145% tariff on all imports from China, provided, that an
exemption was granted to smartphones and certain other items. These tariffs may further increase the cost of our products and could negatively
impact our results of operations. At this time, it remains unclear what additional actions, if any, will be taken by the U.S. or other
governments with respect to international trade agreements, the imposition of additional tariffs on goods imported into the U.S., tax
policy related to international commerce, increased export control, sanctions and investment restrictions, or other trade matters. Although
the ultimate scope and timing of any such actions is currently indeterminable, if implemented, they could have a material impact on our
financial condition and results of operations. If further tariffs are imposed on a broader range of imports, further retaliatory trade
measures are taken by various countries in response to tariffs, or efforts are made to withdraw from or substantially modify such agreements,
then we may be required to raise our prices or incur additional expenses.

In
addition, the FCC rules prohibit communications equipment deemed to pose an unacceptable risk to national security from obtaining the
equipment authorization that allows the products to be