Company: SONM
Filing Date: 2025-12-05
Form Type: DEFM14A
Source: 0001493152-25-026277
Chunk: 57

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-12-05
Form: DEFM14A
Chunk 57
---
 other parties. Unless otherwise indicated, share counts and per-share amounts in the following chronology are presented as of the date referenced and are notadjusted for the Reverse Stock Split.

For ease of reference, the anonymized parties engaged in communications with the Company regarding a strategic transaction involving the Legacy Business are identified alphabetically, while anonymized parties engaged in communications with the Company regarding a strategic transaction not involving the Legacy Business (the RTO strategy contemplated by the Purchase Agreement and initially anticipated to be implemented along with the Asset Sale) are identified numerically.

Events Leading to Public Announcement of the Strategic Alternatives Search

As part of the Company’s strategic planning process, the board regularly reviewed, together with senior management, the Company’s near- and long-term strategy, performance, positioning, and operating prospects with a view toward enhancing stockholder value. In addition, the board and senior management monitored and assessed industry trends, the Company’s near- and long-term performance, the Company’s stock price, and market perception of the Company’s business. The board and senior management team also periodically discussed actual and potential challenges that the Company faced in executing its near- and long-term strategy.

Calendar year 2024 was no exception. The board and management met at regularly scheduled meetings to discuss the Company’s business and prospects, as well as the opportunities and challenges. Among the challenges discussed were the significant decline in the value of the Company’s common stock and the lack of liquidity and capital resources, which constrained the Company’s ability to scale its business and remain competitive. Mr. Jeffrey Wang, who had been serving on the Company’s board since July 2022 (including his tenure as Chairman of the Board from July 2022 until November 2023), participated in these discussions. Mr. Wang also served as a manager of AJP Holding Company, LLC (“AJP”), then the largest stockholder of the Company, holding approximately 39% of the voting power (following the Wang family’s strategic investment in 2022).

On June 21, 2024, Reliance Communications, LLC (“Reliance”), a competitor of Sonim and an affiliate of Orbic North America, LLC (“Orbic”), filed a lawsuit in the United States District Court for the Eastern District of New York against Sonim, Dr. Chuan Wang (Mr. Wang’s father), and two entities controlled by Dr. Chuan Wang ( Reliance Communications, LLC v. Wang et al., 24-CV-4433 (“IP Litigation”)), alleging misappropriation of trade