Company: SONM
Filing Date: 2025-12-05
Form Type: DEFM14A
Source: 0001493152-25-026277
Chunk: 103

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-12-05
Form: DEFM14A
Chunk 103
---
 likely offset a significant amount of such gain. Our ability to use our NOLs is limited due to the investment by AJP
Holding Company, LLC in 2022, and the resulting “ownership change” under Section 382 of the Code, and may be further
limited by another “ownership change” due to the shares that may be issued by us in connection with one or both of the
following: (i) that certain ChEF Purchase Agreement, dated as of September 29, 2025, by and between us and Chardan Capital Markets
LLC establishing a committed equity facility. However, it is
anticipated that, separate from the Asset Sale, we will likely have an operating loss in 2025 that will offset gain from the Asset
Sale for that taxable year (assuming the Asset Sale closes in 2025). Additionally, it is anticipated that the Asset Sale will likely
result in “recognized built-in gains” for purposes of Section 382 that will increase the NOLs that we can use to offset
gain from the Asset Sale, offsetting up to 80% of the total taxable income for the taxable year of the Asset Sale. Although we
anticipate that these operating losses and NOLs will likely offset a significant amount of our gain from the Asset Sale, we also
anticipate incurring some U.S. federal income tax liability from the Asset Sale that would reduce the assets available for future
asset acquisitions by us or for distribution to our stockholders.

| 69 |

Anticipated Accounting Treatment

Under generally accepted accounting principles,
upon completion of the Asset Sale, we will remove the net assets sold and liabilities assumed from our consolidated balance sheet,
and we anticipate recording a cash receipt and loss from the Asset Sale.

Effects on our Company if the Asset Sale is Completed and the Nature of our Business following the Asset Sale

Upon the closing of the Asset Sale, we will have
the Post-Closing Cash, and our shares of common stock will still be publicly traded.

The Company’s post-closing board of directors
will conduct an extensive review of available opportunities for the Company’s NOLs (to the extent available) and use of the Post-Closing
Cash. Those alternatives are currently expected to include using the Post-Closing Cash to fund its general corporate purposes and
to pursue a strategic transaction, the terms and timing of which are not presently known. However, there can be no guarantee that
our board’s determination in connection with the use of