Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 32

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 32
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factoring agreement with Tradewind GmbH (the “Factor”). Under the terms of the agreement, the Company has committed to sell
eligible accounts receivable from designated international customers to the Factor on a continuing basis, subject to individual credit
limits and other conditions specified in the agreement.

The factoring arrangement provides for
a maximum facility of €3,000, with a financing rate of 85% of the face value of qualified receivables. The Company is able to receive
an advance on such receivables, less applicable fees and reserves. Factoring fees vary based on the payment terms of the underlying receivables
and range from 0.55% to 1.65% of the invoice amount, with an additional late fee assessed on unpaid balances after 95 days. Interest
is equal to the greater of 4.00% or EURIBOR + 3.50%. The Factor assumes the credit risk of purchased receivables, subject to specified
exclusions and conditions. The agreement has an initial 12-month term and automatically renews unless terminated in accordance with its
terms.

21

Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking
Statements

You
should read the following discussion and analysis of our financial condition and results of operations together with “Cautionary
Note About Forward-Looking Statements” and our condensed consolidated financial statements and related notes included under Item
1 of this Quarterly Report as well as our most recent Annual Report on Form 10-K for the year ended December 31, 2024 as amended, including
Part 1, Item 1A “Risk Factors.”

Company
Overview

Sonim
Technologies, based in the United States, is a leading provider of enterprise 5G solutions, offering a robust portfolio that includes
rugged handsets, smartphones, wireless internet devices, software, services, and accessories. These products are engineered for reliable
communication in challenging and unpredictable environments, serving sectors such as critical communications, first responders, government,
industrial, construction, hospitality, and logistics. We currently have products available at all three U.S. Tier-one carriers –
AT&T, T-Mobile and Verizon as well as the three primary carriers in Canada – Bell, Telus and Rogers, and Telstra in Australia.
These carriers then resell our products, along with network services, to end customers focusing on two primary end markets: industrial
enterprise and public sector. We also sell