Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 20

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 20
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, James Cassano, Peter Liu, and Jack
Steenstra (the “Complaint”). The Complaint alleged that the individual defendants breached their fiduciary duties and seeks,
among other relief, a declaration to that effect and an injunction prohibiting enforcement of certain provisions of the Company’s
amended and restated bylaws (the “Bylaws”) in connection with the purported notice of nomination (the “Notice”)
of proposing a competing slate of directors for election at the Company’s 2025 annual meeting, as more fully described in the Complaint.
The Notice was submitted on the evening of Thursday, March 20, 2025—fewer than two business days before the nomination deadline
of Saturday, March 22, 2025—and was determined to be deficient for failing to include all information required under the Bylaws.

At
that time, AJP beneficially owned approximately 21.5% of the Company’s outstanding common stock. Its sole manager, Jeffrey Wang,
served as a director of the Company prior to the 2025 annual meeting of stockholders. Orbic, which is a competitor of the Company and
an affiliate of Reliance Communications, LLC (“Reliance”), exercises full voting control over AJP’s shares pursuant
to an irrevocable proxy agreement. The Company and Reliance are currently involved in litigation in the United States District Court
for the Eastern District of New York (Case No. 24-CV-4433), in which each party has asserted claims against the other arising out of
allegations by Reliance regarding purported intellectual property violations by the Company, which the Company disputes. On March 18,
2025, Orbic, AJP, and certain affiliates filed a Schedule 13D announcing the formation of a group under Section 13 of the Securities
Exchange Act of 1934.

Orbic
and AJP also filed a motion for expedited proceedings with their Complaint. The Delaware Court of Chancery granted the motion for expedited
proceedings on May 2, 2025.

On
May 11, 2025, the Company’s board of directors determined it was advisable and in the best interests of Sonim to waive the deficiency
in the Notice rather than to engage in a protracted litigation. On the same day, Sonim’s counsel notified Orbic’s counsel
of the same, thereby rendering the litigation moot. On June 2, 2025, the Complaint was dismissed without prejudice.

Indemn