Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 17

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 17
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 with the purported notice of nomination (the “Notice”)
of proposing a competing slate of directors for election at the Company’s 2025 annual meeting, as more fully described in the Complaint.

The
Notice was submitted on the evening of Thursday, March 20, 2025—fewer than two business days before the nomination deadline of
Saturday, March 22, 2025—and was determined to be deficient for failing to include all information required under the Bylaws.

AJP
beneficially owns approximately 21.5% of the Company’s outstanding common stock. Its sole manager, Jeffrey Wang, is a director
of the Company. Orbic, which is a competitor of the Company and an affiliate of Reliance Communications, LLC (“Reliance”),
exercises full voting control over AJP’s shares pursuant to an irrevocable proxy agreement. The Company and Reliance are currently
involved in litigation in the United States District Court for the Eastern District of New York (Case No. 24-CV-4433), in which each
party has asserted claims against the other arising out of allegations by Reliance regarding purported intellectual property violations
by the Company, which the Company disputes. On March 18, 2025, Orbic, AJP, and certain affiliates filed a Schedule 13D announcing the
formation of a group under Section 13 of the Securities Exchange Act of 1934.

Orbic
and AJP also filed a motion for expedited proceedings with their complaint. The Delaware Court of Chancery granted the motion for expedited proceedings on May 2, 2025.

The
results of any future litigation cannot be predicted with certainty and, regardless of the outcome, litigation can have an adverse impact
on us because of defense and settlement costs, diversion of management time and resources and other factors.

Indemnification
— Under the terms of its agreements with wireless carriers and other partners, the Company has agreed to provide indemnification
for intellectual property infringement claims related to the Company’s products sold by them to their end customers. From time
to time, the Company receives notices from these wireless carriers and other partners of a claim for infringement of intellectual property
rights potentially related to their products. These infringement claims have been settled, dismissed, have not been further pursued by
the customers, or are pending further action by the Company.

NOTE
9 — Net Income (Loss) Per Share

The
dilutive effect of outstanding RSUs and other contingently