Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 58

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 58
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unexpected costs, charges or expenses resulting from the proposed transaction. Furthermore, we cannot predict how our current customers,
prospective customers and other partners will view or react to the proposed transaction during the pendency or upon consummation of the
proposed transaction. If we are unable to reassure our partners to continue their partnerships or affiliations with us, our revenues,
financial condition and results of operations may be adversely affected.

Employees
and key personnel could experience uncertainty or face significant burdens from their commitment of substantial amounts of time and attention
toward the completion of the proposed transaction. If, despite our efforts, key personnel depart because of these uncertainties and burdens,
or because they do not wish to transition with the Social Mobile business post-closing, our business and results of operations may be
adversely affected. In addition, whether or not the proposed transaction is consummated, while it is pending we will continue to incur
costs, fees, expenses and charges related to the proposed transaction, including legal, accounting, financial advisor, filing, printing
and mailing fees, which may materially and adversely affect our financial condition and results of operations.

In
addition, the Asset Purchase Agreement generally requires the Company to operate its business in the ordinary course of business consistent
with past practice, pending consummation of the Asset Purchase Agreement, and also restricts us from taking certain actions with respect
to our business and financial affairs without the consent of Social Mobile. Such restrictions will be in place until the Asset Purchase
Agreement is either consummated or terminated. Such restrictions could adversely affect our business and results of operations prior
to completion of the Asset Purchase Agreement.

34

We
may never consummate a transaction complementary to the Asset Purchase Agreement, and even if we do, we may not be able to complete the
transaction timely, which may negatively impact our financial condition, results of operations, and our ability to raise capital. 

We
publicly announced our intent to pursue two contemporaneous strategic tracks: to enter into and consummate the Asset Purchase Agreement
and to identify an RTO target and to consummate an RTO.

Expected
disposition of our legacy assets and operations under the Asset Purchase Agreement will render Sonim a “shell company,” unless
we either (a) initiate a new line of business that is unrelated to and does not compete with the divested business, or (b) complete an
alternative transaction (such as an RTO) before the closing of the Asset Purchase Agreement. Accordingly