Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 66

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 66
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G solutions business, including rugged handsets, smartphones, wireless internet devices, software, services,
and accessories (collectively, the “Business”) for a purchase price of $15.0 million in cash, subject to (i) customary working
capital, indebtedness and transaction expense adjustments (referred to in the Asset Purchase Agreement as the “Adjustment Amount,”
which may be a positive or a negative number) and (ii) up to $5.0 million in the form of an earn-out payment, if earned. The Asset Purchase
Agreement permits the Company to pursue a reverse merger (“RTO”) with the currently anticipated target or an alternative
target, provided that any such transaction is complementary to and not a substitute for the transactions contemplated by the Asset Purchase
Agreement.

For
additional information, refer to Note 11, Subsequent Events, to the condensed consolidated financial statements contained within this
report.

Because
the transaction contemplates the sale of substantially all of the Company’s assets, the Company concurrently announced a strategic
initiative to pursue a potential RTO, in addition to completing the asset sale, with the objective of maximizing stockholder value. If
consummated, the RTO would allow the public company to continue as an SEC-reporting entity under a new name and trading symbol, and with
a new business focus. There can be no assurance that the Asset Purchase Agreement or any RTO transaction will ultimately be consummated
timely or at all.

Recent
Developments

Recent
Product Awards

The
first step in selling our products through wireless telecommunications carriers is to receive a product award from the carrier. The award
documents the intent of the carrier to carry the proposed product and offer it to customers through their stores or online. The carrier
and Sonim agree to a launch date that is generally nine months or longer from the date of the product award. After the product award,
the Company and its partners complete the design that includes the unique specifications from the carrier, test the device, obtain certification
from the carrier to sell the device, and begin full scale manufacturing of the product based on purchase orders issued by the carrier.

As
of the filing date of this report, Sonim is completing the development, testing and certification of new products that it expects to
launch in the second half of 2025 with various carriers.

23

Equity
Financings

On
May 12, 2025, we consummated a private placement with two investors and