Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 42

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 42
---
(6,746) 
     (9,360) 
     2,614  
     (28)%
  
    Income tax expense 
     (139) 
     (37) 
     (102) 
     276% 
     (271) 
     (162) 
     (109) 
     67%
  
    Net income (loss) 
    $(7,475) 
    $(6,616) 
    $(859) 
     13% 
    $(7,017) 
    $(9,522) 
    $2,505  
     (26)%

Total
Net Revenues

Total
net revenues for the three months ended June 30, 2025, decreased by $0.3 million compared to 2024. This decrease reflects the decrease
in sales of our legacy phones, partially offset by sales of replacement products that were launched after the second quarter of 2024.
During the second quarter of 2025, certification and testing delayed shipments of our new XP Pro smartphone that replaced our legacy
XP10 smartphone. We expect sales of our XP Pro to increase in the third quarter of 2025 as our production increases to meet demand and
as we launch the product with additional carriers. Third quarter of 2025 revenue for our XP Pro with a thermal camera will be higher
because shipments that were expected to be completed in the second quarter were delayed and were delivered in July of 2025.

Total
net revenues for the six months ended June 30, 2025, decreased by $0.4 million compared to 2024. The six months ended June 30, 2024,
includes $7.7 million in revenue from white label products sold to a related party, and we had no white label revenue in 2025. The six
months ended June 30, 2025, includes $5.5 million related to the expiration of customer allowance agreements as three of our legacy phones
approach end-of-life. Sales of our H500 hotspot that we launched with a U.S. carrier in the second half of 2024 increased revenue in
2025 by $2.0 million. We expect an increase in revenue in the second half of 2025 as our new XP Pro launches with additional carriers,
as shipments of our XP Pro with a thermal camera increase, and after we launch our new HPUE hotspot.

Cost
of Revenues