Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 71

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 71
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to such actions by activist stockholders can be costly and time-consuming, disrupt our operations, and divert the attention of management
and our board of directors. If AJP and Orbic are successful in the litigation and proxy contest, they could gain control of our board
of directors, potentially pursuing actions advanced by our competitor that conflict with our long-term strategic objectives. Actions
of AJP and Orbic may also discourage or deter a potential acquirer of Sonim from considering Sonim as a desirable acquisition target.
The presence of an activist stockholder or the perception of a potential hostile takeover may create uncertainty regarding our future
direction, strain relationships with business partners, and impact our ability to attract and retain key personnel.

The
risk factor titled “We are required to meet the Nasdaq continued listing requirements and other Nasdaq rules, or we may risk
delisting. Delisting could negatively affect the price of our common stock, which could make it more difficult for us to sell securities
in a future financing or for you to sell our common stock.” is amended and restated as follows:

We
are required to meet the Nasdaq continued listing requirements and other Nasdaq rules, or we may risk delisting. Delisting could negatively
affect the price of our common stock, which could make it more difficult for us to sell securities in a future financing or for you to
sell our common stock.

We
are required to meet the continued listing requirements of the Nasdaq and other Nasdaq rules, including those regarding director independence
and independent committee requirements, minimum stockholders’ equity, minimum share price and certain other corporate governance
requirements. In particular, we are required to maintain a minimum bid price for our listed common stock of $1.00 per share (which we
previously failed to meet resulting in two reverse stock splits in a five-year period in order to regain compliance) and either a minimum
stockholders’ equity of $2,500,000, or a minimum market value of our common stock of at least $35,000,000. If we do not meet these
continued listing requirements, our common stock could be delisted.

We
have a history of receiving deficiency letters from Nasdaq. On August 13, 2025, we received notice that we were not in compliance with
the $1.00 minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2). On August 22, 2025, we received notice that we were not
in compliance with Nas