Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 34

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 34
---
, all of our new products that launched with tier-one
carriers in the United States included a certification associated with carrier first responder initiatives, including FirstNet Ready,
FirstNet Trusted, Verizon Frontline Certified, and T-Mobile certified for T-Priority. In the first half of 2025 we also announced the
upcoming launch and availability of the XP Pro Thermal 5G smartphone for Europe which includes an SDK-enabled Sonim IRIS software for
custom application development and an integrated thermal camera by FLIR® that benefits a number of vertical trades such as electricians,
plumbers, public safety, construction, agriculture, amongst others.

Geographic
market expansion continues with agreements and product availability through new distribution partners in Europe and South Africa, catering
to carrier, reseller, and enterprise sales channels. Partners include Brodos, Modino, Ingram Micro, and Cernotech, which bolster our
presence in these regions. This strategic alignment supports our commitment to offering reliable solutions and expanding our customer
base.

22

With
the primary sales channels in the U.S. and Canada consisting of large wireless carriers, the Company’s customer base is highly
concentrated. For the six months ended June 30, 2025, wireless carriers contributed 86% of our total net revenues, 20% of which related
to the expiration of customer allowance agreements as three of our legacy phones approach end-of-life, with our top three carrier customers
accounting for 74% of our total net revenues, 18% of which related to the expiration of customer allowance agreements. Our rugged smartphones
represented 57% of our total net revenues, 19% of which related to the expiration of customer allowance agreements, while feature phones
were 31% of our total net revenues, and connected solutions were 11% of our total net revenues. For the three months ended June 30, 2025,
wireless carriers contributed 88% of our total net revenues, with our top three carrier customers accounting for 80% of our total net
revenues. Our rugged smartphones represented 43% of our total net revenues, while feature phones were 34% of our total net revenues,
and connected solutions were 20% of our total net revenues.

In
alignment with Sonim Technologies’ commitment to quality, reliability, and regulatory compliance, we have prioritized our Trade
Agreements Act (“TAA”) initiatives. TAA compliance is crucial in enhancing our market strategy, particularly in expanding
opport