Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 4

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 4
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ate adjustments were made to the per share exercise price and number of shares of common stock issuable
under all outstanding stock options, restricted stock units, and warrants. In addition, proportionate adjustments have been made to the
number of shares of common stock reserved for the Company’s equity incentive awards.

Promissory
Notes

The
Company accounts for promissory notes in accordance with ASC 470, Debt. Promissory notes are initially recorded at the amount
of cash proceeds received, net of any original issue discount and direct issuance costs. Debt discounts and issuance costs are amortized
to interest expense over the term of the note using the straight-line method, which approximates the effective interest method. Interest
is accrued based on the stated interest rate.

Prior
period reclassifications

Certain
amounts in prior periods have been reclassified to conform with current period presentation. These reclassifications had no effect on
the reported results of operations.

Related
Party Transactions

Effective
December 15, 2023, in the ordinary course of business, the Company entered into an agreement pursuant to which the Company would execute
various statements of work and sell white label phones under the ODM model arrangement with a then-related party, in which a family member
of the Company’s then-director, Jeffrey Wang, holds indirect interest of approximately 40% (the “ODM Arrangement”).
Pursuant to the ODM Arrangement, the Company consummated various transactions during the first quarter of 2024.

On
April 1, 2025, the Company signed an agreement with a then-related party, in which a family member of the Company’s then-director,
Jeffrey Wang, holds an indirect interest of approximately 40%, to purchase parts and components to be used in the manufacturing of the
company’s products for the aggregate amount of approximately $1,000. The agreement was executed in the ordinary course of business.
During the three months ended June 30, 2025, the Company purchased approximately $496 in raw materials under this agreement.

Subsequent
to June 30, 2025, shareholders did not re-elect Jeffrey Wang as a director at the Company’s Annual Meeting.

New
accounting pronouncements

Pronouncements
adopted in 2025

None.

Pronouncements
not yet adopted

In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income