Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 29

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 29
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 and through the issuance of debt. During the first
quarter of 2025 we received net proceeds of $3.5 million from the sale of our stock through our ATM program, and we received net proceeds
of $2.8 million from the issuance of the Note.

During
the three months ended March 31, 2025, we reported net income of $0.5 million and used $9.6 million in operating cash flow. As of March
31, 2025, our principal source of liquidity consisted of cash and cash equivalents totaling $2.1 million. Subsequent to March 31, 2025,
we have received $4.5 million in proceeds from the sale of equity through our ATM program. We also have access to up to $2.5 million
under our Receivables Financing Agreement. We plan to continue to leverage multiple sources of liquidity to maintain flexibility in regard
to meeting our capital needs. We expect these sources of liquidity to be sufficient to offset any future operating losses and to fund
the development of new products over the next year. Increased revenue from new products is expected to further improve cash flow over
the next year. We expect to meet all obligations with existing cash and operating cash flow for a period of at least one year from the
date of release of the consolidated financial statements included in this Quarterly Report on Form 10-Q.

21

Cash
Flows

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

    Three Months Ended March 31, 

    2025  
    2024 
  
    Net cash used in operating activities 
    $(9,606) 
    $(168)
  
    Net cash used in investing activities 
     —  
     (30)
  
    Net cash provided by financing activities 
     6,378  
     53 
  
    Net decrease in cash and cash equivalents 
    $(3,228) 
    $(145)

Cash
flows from operating activities

For
the three months ended March 31, 2025, cash used in operating activities was $9.6 million, primarily attributable to net cash used in
a change in net operating assets and liabilities of $6.1 million and net income of $0.5 million, excluding net non-cash operating activity of $4.0 million. The change in net operating assets and liabilities was primarily due to net payments made on accounts payable and an
increase