Company: SONM
Filing Date: 2025-09-19
Form Type: DEF 14A
Source: 0001493152-25-014244
Chunk: 44

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-09-19
Form: DEF 14A
Chunk 44
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 the stock is delivered.

Subject to the requirement of reasonableness, the provisions of Section 162(m) of the Code and the satisfaction of a tax reporting obligation, we will generally be entitled to a tax deduction equal to the taxable ordinary income realized by the recipient of the restricted stock unit award.

Stock Appreciation Rights

Generally, if a stock appreciation right is granted with an exercise price equal to the fair market value of the underlying stock on the grant date, the recipient will recognize ordinary income equal to the fair market value of the stock or cash received upon such exercise. Subject to the requirement of reasonableness, the provisions of Section 162(m) of the Code, and the satisfaction of a tax reporting obligation, we will generally be entitled to a tax deduction equal to the taxable ordinary income realized by the recipient of the stock appreciation right.

Limitation on the Employer’s Compensation Deduction

Section 162(m) of the Code limits the deduction certain employers may take for otherwise deductible compensation payable to certain executive officers of the employer to the extent the compensation paid to such an officer for the year exceeds $1 million.

The discussion above is intended only as a summary and does not purport to be a complete discussion of all potential tax effects relevant to recipients of awards under the 2019 Plan. Among other items this discussion does not address are tax consequences under the laws of any state, locality, or foreign jurisdiction, or any tax treaties or conventions between the United States and foreign jurisdictions. This discussion is based upon current law and interpretational authorities which are subject to change at any time.

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New plan benefits under 2019 Plan

Grants of awards under the 2019
Plan to our executive officers, employees, and other eligible Participants are subject to the discretion of our board or its
Compensation Committee, as applicable. As of the date of this proxy statement, no awards have been granted under the 2019 Plan
subject to the stockholder approval of the amendment to the 2019 Plan sought in this proposal. Therefore, it is not possible to
determine the future benefits that will be received by the participants under the 2019 Plan other than with respect to the value of
RSUs that will be received by our non-employee directors. Additionally, following our 2025 annual meeting of stockholders, there
were insufficient shares of our common stock to issue awards with a value of $60,000 each to our non-employee directors, and cash
awards with the vesting schedules