Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 75

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 75
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 in 2025, and compliance work for Europe.

General
and Administrative

General
and administrative expenses for the three months ended June 30, 2025, increased by $0.8 million compared to 2024 primarily due to an
increase in legal and other expenses related to the hostile takeover attempt, and the divestiture activity being pursued by the Company.

General
and administrative expenses for the six months ended June 30, 2025, increased by $1.0 million compared to 2024 primarily due to an increase
in legal expenses.

Impairment
of Contract Fulfillment Assets

Impairment
of contract fulfillment assets for both the three and six months ended June 30, 2024, was $3.2 million, resulting from the Company’s
determination that it would not recover the contract fulfillment costs capitalized due to a decrease in projected profit for one of its
hotspots and the cancellation of the consumer durable product.

Liquidity
and Capital Resources

Historically,
we have funded operations from a combination of public and private equity financings, and through the issuance of debt. During the six
months ended June 30, 2025 we received net proceeds of $9.0 million from the sale of our common stock, and we received net proceeds of
$2.8 million from the issuance of the Note.

During
the six months ended June 30, 2025, we reported a net loss of $7.0 million and used $14.5 million in operating cash flow. As of June
30, 2025, our principal source of liquidity consisted of cash and cash equivalents totaling $2.0 million. Subsequent to June 30,
2025, we received net proceeds of approximately $4.8 million from the sale of shares through our registered public offering and net
proceeds of approximately $2.3 million from the sale of the July Note. We also have access to up to $2.5 million under our
Receivables Financing Agreement. Subsequent to June 30, 2025, we signed an additional receivables financing agreement for
international receivables, which gives us access to up to €3.0 million. As a result of the July Note, we are obligated to use
not less than 33% of the amount raised in any fundraising or financing transaction for prepayment of the July Note. We plan to
continue to leverage multiple sources of liquidity to maintain