Company: SONM
Filing Date: 2025-12-05
Form Type: DEFM14A
Source: 0001493152-25-026277
Chunk: 109

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-12-05
Form: DEFM14A
Chunk 109
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 its operations, contracts, employees, properties, tax obligations, or actions, whether      
 arising prior to, at, or after the Closing, including any claims under Indian laws or regulations. |

We anticipate that our expenses relating to the
Asset Sale following the closing of the Asset Sale will be approximately $1.3 million, which includes financial advisory fees
and legal fees, and other fees and expenses.

Consideration

General

As consideration for the Asset Sale, the Buyer
will:

| ● | assume our liabilities as specified in the Asset Purchase Agreement; |

| ● | pay us a purchase price equal to $15 million in cash, subject                             
 to customary working capital, indebtedness, and transaction expense adjustments (referred 
 to in the Asset Purchase Agreement as the “Adjustment Amount,” which may be a             
 positive or a negative number) (the “Cash Consideration”); and                            |

| ● | pay us up to $5 million in cash as an earn-out payment, if earned. |

Earn-Out

The earn-out payment, if any, will be determined
based on the performance of the Business during the twelve-month period beginning July 1, 2025, and ending June 30, 2026. If, during
such period, the Business generates Net Revenue (as defined in the Asset Purchase Agreement) in excess of $70 million, the Company will
be entitled to receive an amount equal to 50% of the Net Revenue above such threshold, calculated in accordance with the terms of the
Asset Purchase Agreement, provided that the earn-out payment will not exceed $5 million.

For purposes of the Asset Purchase Agreement, “Net
Revenue” generally means the gross revenue of the Business determined in accordance with GAAP minus:

| ● | customary trade, quantity, and cash discounts actually taken; |

| ● | credits, allowances, rebates, and chargebacks for returns, rejections, 
 damaged goods, and billing errors;                                     |

| 74 |

| ● | outbound freight, insurance, customs duties, and other transportation 
 charges directly related to such sales;                               |

| ● | sales, value-added, use, and similar taxes (other than income taxes)           
 collected from customers and remitted to the appropriate taxing authority; and |

| ● | any other items that, in accordance with GAAP, are specifically and 
 solely deductible from gross revenue to arrive at net revenue.      |

The Company estimates that, if the Asset Sale closes
on or about January 31,