Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 92

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 4
Chunk 92
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 in 2021, we outsourced substantially all of our manufacturing work to third parties. As of December 31, 2024,
our worldwide employee headcount was 131 employees.

Due
to the small size of our Company and our limited number of employees, each member of our executives, managers and other key personnel
serves a critical role to our success. If we are unable to retain sufficiently experienced and capable employees, including those who
can help us increase revenues generated from our end market segments, our business and financial results may suffer. The loss of the
services of any additional executives, managers or other key personnel could impede the achievement of our strategic objectives, seriously
harm our ability to successfully implement our business strategy and adversely impact our operating results. In addition, if additional
executives, managers or other key personnel resign, retire or are terminated, or their service is otherwise interrupted, including due
to global pandemics, we may not be able to replace them in a timely manner and we could experience significant declines in productivity
and/or errors due to insufficient staffing or managerial oversight. Moreover, experienced and capable employees in the technology industry
remain in high demand, and there is continual competition for their talents. Given our size, we may be at a disadvantage relative to
our larger competitors in the competition for these personnel.

33

Moreover,
our stockholders did not approve the proposed amendment to the Sonim Technologies, Inc. 2019 Equity Incentive Plan at our 2025 annual
meeting, which would have authorized an additional 600,000 shares of common stock for issuance. As a result, no shares remain available
for equity awards to our independent directors, officers, or employees. Combined with our limited cash resources, this restriction may
limit our ability to offer competitive compensation packages, potentially undermining our efforts to retain and incentivize key talent.
The inability to retain or adequately compensate our senior management and other key personnel could materially and adversely affect
our business, results of operations, and long-term value.

A
group of risk factors titled “Risks Related to the Proposed Asset Purchase Agreement and Announced Strategic Initiatives”
shall be added as follows:

The
conditions under the Asset Purchase Agreement to our consummation of the proposed transaction may not be satisfied in the anticipated
timeframe or at all.

Under
the terms of the Asset Purchase Agreement, the consummation of the proposed transaction is subject to customary closing conditions. There
is no guarantee that all closing conditions will be satisfied