Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 35

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 35
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unities within government and enterprise markets, which demand stringent adherence to regulatory standards. By ensuring our products
meet TAA requirements, we reinforce our position as a trusted provider of enterprise 5G solutions.

This
initiative underscores our dedication to delivering products that not only meet industry-leading standards but also comply with U.S.
federal procurement regulations, thereby enhancing our competitiveness in securing government contracts.

Looking
ahead, Sonim is focused on bringing our new products and solutions offering to our expanded portfolio throughout 2025.

Pending
Asset Purchase Agreement with Social Mobile and Announced Strategic Initiatives 

On
July 17, 2025, the Company entered into an asset purchase agreement (the “Asset Purchase Agreement”) by and among the Company,
as seller, Pace Car Acquisition LLC, as buyer, (the “Buyer”), the Seller Representative named in the Asset Purchase Agreement,
and, Social Mobile Technology Holdings LLC (the “Parent”), solely for the purpose of guaranteeing complete payment and performance
obligations of the Buyer contained in the Asset Purchase Agreement.

Pursuant
to the Asset Purchase Agreement, the Buyer agreed to acquire substantially all assets of the Company and its subsidiaries related to
the Company’s enterprise 5G solutions business, including rugged handsets, smartphones, wireless internet devices, software, services,
and accessories (collectively, the “Business”) for a purchase price of $15.0 million in cash, subject to (i) customary working
capital, indebtedness and transaction expense adjustments (referred to in the Asset Purchase Agreement as the “Adjustment Amount,”
which may be a positive or a negative number) and (ii) up to $5.0 million in the form of an earn-out payment, if earned. The Asset Purchase
Agreement permits the Company to pursue a reverse merger (“RTO”) with the currently anticipated target or an alternative
target, provided that any such transaction is complementary to and not a substitute for the transactions contemplated by the Asset Purchase
Agreement.

For
additional information, refer to Note 11, Subsequent Events, to the condensed consolidated financial statements contained within this
report.

Because
the transaction contemplates the sale of substantially all of the Company’s assets, the Company concurrently announced a strategic
initiative to pursue a potential RTO, in addition to completing the asset sale, with the objective of maximizing stockholder value. If
consummated, the RTO would allow the public company to continue as an SEC-reporting entity under a new name and