Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 49

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 49
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arily due to raw
materials inventory), non-trade receivables (primarily purchasing raw materials for our ODMs), related party receivables, and contract
fulfillment assets (capitalized costs for product certifications). Non-cash charges primarily consist of $3.2 million in impairment charges
related to contract fulfillment assets, $2.6 million in depreciation and amortization, $1.2 million for stock-based compensation, and
$1.0 million in inventory write-downs.

Cash
flows from investing activities

For
the nine months ended September 30, 2025, and 2024, there were no significant investing activities.

Cash
flows from financing activities

For
the nine months ended September 30, 2025, the Company received $13.8 million in cash, net of issuance costs, from sales of common stock,
as well as $5.1 million in net proceeds from the issuance of the Note and repaid $0.6 million borrowed under the LSQ Receivables Financing
Agreement.

For
the nine months ended September 30, 2024, the Company received $3.8 million in cash, net of issuance costs, from an investor for the
purchase of shares and the issuance of warrants, as well as ATM sales.

Material
Cash Requirements

There
have been no material changes to our material cash requirements from those disclosed in our Annual Report on Form 10-K for the year ended
December 31, 2024.

29

Critical
Accounting Policies and Estimates

Our
discussion and analysis of financial condition and results of operations is based upon our condensed consolidated financial statements,
which have been prepared in conformity with accounting principles generally accepted in the United States of America. Certain accounting
policies and estimates are particularly important to the understanding of our financial position and results of operations and require
the application of significant judgment by our management or can be materially affected by changes from period to period in economic
factors or conditions that are outside of our control. As a result, they are subject to an inherent degree of uncertainty. In applying
these policies, our management uses their judgment to determine the appropriate assumptions to be used in the determination of certain
estimates. Those estimates are based on our historical operations, our future business plans and projected financial results, the terms
of existing contracts, our observance of trends in the industry, information provided by our customers and information available from
other outside sources, as appropriate.

A
description of