Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 18

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 18
---
 and change-in-control transactions
that result in full repayment of the July Note upon consummation.

The
July Purchase Agreement also contains a “most favored nation” clause. Under this provision, for as long as the July 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.

    13

July
Note

The
July Note carries an original issue discount of $225, 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 July Note received
by the Company resulting in a purchase price of $2,500 received by the Company. The Company incurred additional issuance costs of approximately
$210, which consists of legal costs and placement fees.

Additionally,
if the July Note remains outstanding on the 90-day anniversary of the issuance, the Company will incur a one-time monitoring fee equal
to the difference between (i) the outstanding balance of the Note divided by 0.85 (as minuend), and (ii) the outstanding balance of the
Note (as subtrahend). 

Interest
under the July Note accrues at a rate of 9% per annum. The unpaid amount of the July Note, any interest, fees, charges, and late fees
are due 18 months following the date of issuance. The Company may prepay all or any portion of the outstanding balance of the July Note.
If the Company elects to prepay the July Note in part, it will be required to pay to the Lender an amount in cash equal to 110% of the
portion of the outstanding balance the Company elects to prepay. In addition, any time the Company receives any money in connection with
any fundraising or financing transaction (including, but not limited to, any warrant exercises, “at the market” financing,
equity line of credit or debt financing), it must immediately make a mandatory prepayment to the Lender in an amount equal to the lesser
of (a) 33% of the amount raised in such transaction, and (b) the total outstanding balance due under the July Note as of the closing
date of such financing, payable within two trading days of receiving