Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 46

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 46
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 net cash used in
a change in net operating assets and liabilities of $6.2 million and a net loss of $7.0 million, excluding net non-cash operating
activity of $1.3 million. The change in net operating assets and liabilities was primarily due to net payments made on accounts
payable and accrued liabilities and an increase in contract fulfillment assets, which are capitalized costs for product
certifications, partially offset by a decrease in accounts receivable. Non-cash charges primarily consist of $5.5 million related to
the expiration of customer allowance agreements, $1.9 million in depreciation and amortization, $1.2 million for stock-based
compensation, and $1.1 million for the impairment of contract fulfillment assets related to the end of life of our legacy
products.

For
the six months ended June 30, 2024, cash used in operating activities was $3.6 million, primarily attributable to a net loss of $9.5
million, excluding net non-cash operating activity of $5.9 million, partially offset by net cash provided by a change in net operating
assets and liabilities of $0.1 million. Non-cash charges primarily consist of $3.2 million in impairment charges related to contract
fulfillment assets, $1.7 million in depreciation and amortization, and $0.8 million for stock-based compensation. The change in net operating
assets and liabilities was primarily due to a decrease in trade accounts receivable and inventory and an increase in account payables
and accrued expenses, partially offset by an increase in non-trade and related party receivables, prepaid inventory, and contract fulfillment
assets.

Cash
flows from investing activities

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

Cash
flows from financing activities

For
the six months ended June 30, 2025, the Company received $9.0 million in cash, net of issuance costs, from sales of common stock, as
well as $2.8 million in net proceeds from the issuance of the Note and repaid $0.6 million borrowed under the Receivables Financing Agreement.

For
the six months ended June 30, 2024, the Company received $3.8 million in cash, net of issuance costs, from an investor for the purchase
of its shares and the issuance of warrants.

Material
Cash Requirements

There
have