Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 15

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 15
---
 with its filing requirements under the Securities Exchange Act of 1934, as amended, (ii) maintaining the Company’s
listing on a national securities exchange, and (iii) refraining from making any Restricted Issuances (as defined in the Purchase Agreement
and described below) without the Lender’s prior written consent, which consent may be granted or withheld in the Lender’s
sole discretion.

Subject
to certain customary exceptions set forth in the February Purchase Agreement, Restricted Issuances include the incurrence or guaranty
of any debt obligations other than trade payables in the ordinary course of business, the issuance of any convertible securities in which
the number of shares that may be issued pursuant to a conversion right, or the conversion price, varies with the market price of the
Company’s common stock, the issuance of any securities with reset provisions and the issuance of any securities in connection with
Section 3(a)(9) exchange, a Section 3(a)(10) settlement, or any other similar settlement or exchange. Restricted Issuances do not include
ATM facilities, commercial bank loans or lines of credit, leases, grants pursuant to the Company’s incentive plans, and change-in-control
transactions that result in full repayment of the Note upon consummation.

The
February Purchase Agreement also contains a “most favored nation” clause. Under this provision, for as long as the Note remains
outstanding, if the Company issues any debt security with more favorable economic terms or conditions not similarly provided to the Lender,
the Company must notify the Lender. At the Lender’s option, such favorable terms will become part of the Note and related transaction
documents.

The
February Note

The
February Note carries an original issue discount of $270, and the Company agreed to pay $30 to the Lender to cover its legal fees, accounting
costs, due diligence, monitoring, and other transaction costs, each of which was deducted from the proceeds of the February Note received
by the Company resulting in a purchase price of $3,000 received by the Company. The Company incurred additional issuance costs of approximately
$210, which consisted of legal costs and placement fees.

Since
the February Note remained outstanding on the 90-day anniversary of the issuance, the Company incurred a one-time monitoring fee of approximately
$595 during the nine months ended September 30, 2025, which is included in other expense, net, in the Condensed Consolidated Statements
of Operations and accrued liabilities