Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 48

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 48
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 Asset Purchase Agreement and the ability
of the Company to implement strategic alternatives after the closing of the Asset Purchase Agreement creates uncertainty regarding the
Company’s ability to forecast beyond the asset sale date. There is substantial doubt about
the Company's ability to continue as a going concern within one year after the date that the financial statements are issued.

28

Cash
Flows

The
following table summarizes our sources and uses of cash for the periods presented (in thousands):

    Nine Months Ended September 30, 

    2025  
    2024 
  
    Net cash used in operating activities 
    $(21,522) 
    $(3,977)
  
    Net cash used in investing activities 
     —  
     (206)
  
    Net cash provided by financing activities 
     18,316  
     3,846 
  
    Net decrease in cash and cash equivalents 
    $(3,206) 
    $(337)

Cash
flows from operating activities

For
the nine months ended September 30, 2025, cash used in operating activities was $21.5 million, primarily attributable to a net loss of
$11.7 million and net cash used in a change in net operating assets and liabilities of $9.7 million. The change in net operating
assets and liabilities was primarily due to net payments made on accounts payable, an increase in non-trade receivables, and an increase
in contract fulfillment assets, which are capitalized costs for product certifications, partially offset by a decrease in accounts receivable
and certain prepaid expenses. Non-cash charges primarily consist of $5.4 million related to the expiration of customer allowance agreements,
$2.8 million in depreciation and amortization, $1.4 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 nine months ended September 30, 2024, cash used in operating activities was $4.0 million, primarily attributable to a net loss of
$12.0 million and net cash used in a change in net operating assets and liabilities of $0.3 million, partially offset by non-cash charges
of $8.3 million. The change in net operating assets and liabilities was primarily due to a decrease in accounts receivable, net, due
to the timing of payments and an increase in accrued liabilities, partially offset by an increase in inventory (prim