Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 5

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 5
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 Company effected a 1-for-10 reverse stock split of its issued and outstanding common stock (the “2024 Reverse
Stock Split”). The Company’s common stock began trading on the Nasdaq Capital Market on a post-split basis on July 18, 2024.
As a result of the 2024 Reverse Stock Split, each share of common stock issued and outstanding immediately prior to July 17, 2024, was
automatically converted into one-tenth (1/10) of a share of common stock. The 2024 Reverse Stock Split affected all common stockholders
uniformly and did not alter any stockholder’s percentage interest in the Company’s equity, except to the extent that the
2024 Reverse Stock Split would result in a stockholder owning a fractional share. No fractional shares were issued in connection with
the 2024 Reverse Stock Split. Stockholders who otherwise would be entitled to receive a fractional share instead were entitled to receive
one whole share in lieu of such fractional share.

The
2024 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.

The
Company’s stockholders’ equity, in the aggregate, remained unchanged following the 2024 Reverse Stock Split. Net income (loss)
per share increased because there were fewer shares of common stock outstanding. There were no other accounting consequences, including
changes to the amount of stock-based compensation expense to be recognized in any period, that arose as a result of the 2024 Reverse
Stock Split.

2025
Reverse Stock Split

On
October 27, 2025, subsequent to the balance sheet date, the Company effected a 1-for-18 reverse stock split of its issued and outstanding common stock (the “2025 Reverse Stock Split,” and, together
with the 2024 Reverse Stock Split, the “Reverse Stock Splits”). The Company’s common stock began trading on the
Nasdaq Capital Market on a post-split basis on October 27, 2025. As a result of the 2025 Reverse Stock Split, each share of common
stock issued and outstanding immediately prior to October 27, 2025, was automatically converted into one-eighteenth (1/18) of a
share of common stock. The