Company: SONM
Filing Date: 2025-09-09
Form Type: PRE 14A
Source: 0001493152-25-012903
Chunk: 22

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-09-09
Form: PRE 14A
Chunk 22
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holders to dissent and obtain an appraisal of, or payment for, such stockholders’ common stock.

Accounting matters

The Reverse Stock
Split would not affect the par value of our common stock per share, which would remain $0.001 par value per share, while the number of
outstanding shares of common stock would decrease, in accordance with the Reverse Stock Split ratio. As a result, as of the effective
time of the Reverse Stock Split, the stated capital attributable to common stock on our balance sheet would decrease, and the additional
paid-in capital account on our balance sheet would increase by an offsetting amount. In addition, cash paid to the shareholders for the
fractional shares to which they would have been entitled from the Reverse Stock Split will be recorded as a reduction to the additional
paid-in capital account. Following the Reverse Stock Split, the reported per-share net income or loss would be higher because there would
be fewer shares of common stock outstanding and we would adjust historical per-share amounts set forth in our future financial statements.

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Reservation of right to abandon the amendment to our Certificate of Incorporation

As previously stated,
the board reserves the right, notwithstanding stockholder approval and without further action by the stockholders, to elect not to proceed
with the Reverse Stock Split if, at any time prior to effectiveness of the Reverse Split Amendment, the board, in its sole discretion,
determines that it is no longer in the best interests of the Company and its stockholders to proceed with the Reverse Stock Split. By
voting in favor of the Reverse Stock Split, you are expressly also authorizing the board to delay or abandon the Reverse Stock Split.
If our board does not effect any Reverse Stock Split on or prior to the one-year anniversary of the Special Meeting, stockholder approval
would again be required prior to implementing any reverse stock split.

Material U.S. Federal income tax consequences of the Reverse Stock Split to U.S. Holders

The following discussion describes some anticipated material U.S. Federal income tax consequences to “U.S. holders” (as defined below) of our common stock relating to the Reverse Stock Split. This discussion is based upon the Internal Revenue Code of 1986, as amended (the “Code”), applicable treasury regulations thereunder (“Treasury Regulations”), judicial authorities, published positions of the Internal Revenue Service (“IRS”), and other applicable authorities, all as currently in effect and all of which are subject to change or differing interpretations (possibly with retroactive effect). There can