Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 12

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 12
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 a conversion right, or the conversion price, varies with the market price of the Company’s
common stock, the issuance of any securities with reset provisions and the issuance of any securities in connection with Section 3(a)(9)
exchange, a Section 3(a)(10) settlement, or any other similar settlement or exchange. Restricted Issuances do not include ATM facilities,
commercial bank loans or lines of credit, leases, grants pursuant to the Company’s incentive plans, and change-in-control transactions
that result in full repayment of the Note upon consummation.

The
Purchase Agreement also contains a “most favored nation” clause. Under this provision, for as long as the Note remains outstanding,
if the Company issues any debt security with more favorable economic terms or conditions not similarly provided to the Lender, the Company
must notify the Lender. At the Lender’s option, such favorable terms will become part of the Note and related transaction documents.

The
Note

The
Note carries an original issue discount of $270, and the Company agreed to pay $30 to the Lender to cover its legal fees, accounting
costs, due diligence, monitoring, and other transaction costs, each of which was deducted from the proceeds of the Note received by the
Company resulting in a purchase price of $3,000 received by the Company. The Company incurred additional issuance costs of approximately
$210, which consisted of legal costs and placement fees.

Since
the Note remained outstanding on the 90-day anniversary of the issuance, the Company incurred a one-time monitoring fee of approximately
$595 during the three months ended June 30, 2025, which is included in other expense, net, in the Condensed Consolidated Statements of
Operations and accrued liabilities in the Condensed Consolidated Balance Sheets.

Interest
under the Note accrues at a rate of 9% per annum. The unpaid amount of the Note, any interest, fees, charges, and late fees are due 18
months following the date of issuance. The Company may prepay all or any portion of the outstanding balance of the Note. If the Company
elects to prepay the Note in part, it will be required to pay to the Lender an amount in cash equal to 110% of the portion of the outstanding
balance the Company elects to prepay.

Commencing
six months after the date of issuance of the Note and at any time thereafter until the Note is paid in full, the Lender will have the