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

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 10
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     2,153  
     2,939 
  
    Inventory received, not billed 
     2,076  
     1,563 
  
    Employee-related liabilities 
     750  
     2,247 
  
    Other 
     2,682  
     2,722 
  
    Accrued liabilities 
    $12,163  
    $20,892 

Receivables
Financing Agreement

On
September 23, 2024, the Company entered into an invoice purchase agreement (the “Receivables Financing Agreement”) with LS
DE LLC (“LS”), pursuant to which LS will provide receivables factoring to the Company. Pursuant to the terms of the Receivables
Financing Agreement, LS will advance 80% of the face value of the receivables being sold by the Company, up to a maximum of $2,500 of
eligible customer invoices from the Company. In consideration of the advances, LS is entitled to receive (i) an invoice purchase fee
equal to 0.20% of the face amount of each purchased invoice payable at the time of the purchase and (ii) a daily funds usage fee equal
to 0.0388%, payable monthly in arrears on the last day of each month. Under the agreement, the Company must repurchase any invoices that
LS deems to be uncollectible or no longer qualify as an Eligible Account, as defined in the Receivables Financing Agreement. The Company
is accounting for this transaction as a secured borrowing and recognizes a factoring liability for any advances until the accounts receivables
are collected. As of December 31, 2024, there was $591 outstanding under the Receivables Financing Agreement, which is included in accrued
liabilities in the Condensed Consolidated Balance Sheets. As of June 30, 2025, there were no borrowings outstanding under the Receivables
Financing Agreement.

The
Receivables Financing Agreement has an initial term of twelve months, subject to automatic annual extension unless terminated. Additionally,
under certain circumstances and unless waived by LS, the Company will be obligated to pay a missing notation fee of 15% in the event
of its failure to affix a certain legend regarding assignment or a misdirected payment fee in the amount of 15%. In the event of the
Company’s default, the Company’s payment obligations will be accelerated,