Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 37

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 37
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Split would result in a stockholder owning a fractional share. No fractional shares were issued in connection with the Reverse Stock
Split. Stockholders who otherwise would be entitled to receive a fractional share instead received a cash payment equal to the fraction
of which a stockholder would otherwise be entitled multiplied by $16.8678, which is the closing price per share of common stock on October
20, 2025 (as reported by the Nasdaq Capital Market), as adjusted to give effect to the reverse stock split.

The
Reverse Stock Split did not change the par value of the common stock or the authorized number of shares of common stock. All outstanding
stock options, restricted stock units, and warrants entitling their holders to purchase or obtain or convert into shares of our common
stock were adjusted, as required by the terms of these securities.

All
common share and per-share amounts in this Form 10-Q have been retroactively restated to reflect the effect of the 2025 Reverse Stock
Split.

Capital
Structure

We
prioritized adjustments to the Company’s capital structure to better align with our long-term strategy. On October 16, 2025, at
a special meeting of stockholders, our stockholders approved an amendment to our amended and restated certificate of incorporation increasing
the authorized shares of our common stock from 100,000,000 to 1,000,000,000. The amendment was filed with the Secretary of State of the
State of Delaware on October 16, 2025. Our board believes it is in the best interests of the Company and its stockholders to have additional
authorized shares available. The primary purpose of the amendment is to provide greater flexibility in managing our common stock for
general corporate purposes that our board may, from time to time, deem advisable, which could include, without limitation: (i) financing
activities, including the ChEF facility; (ii) stock dividends or splits; (iii) conversions of convertible securities; (iv) issuances
of stock options and other equity awards under our incentive plans; and (v) establishing strategic relationships. Having an increased
number of authorized but unissued shares allows the Company to act promptly on corporate opportunities without the delay and expense
of convening a special meeting of stockholders to approve a further increase in capitalization.

ChEF
Purchase Agreement

On
September 29, 2025, the Company entered into a ChEF purchase agreement (the “ChEF Agreement”) and registration rights