Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 12

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 12
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 “Mandatory Default Amount”) becoming immediately due
and payable in cash, and (ii) cause interest on the outstanding balance of the Note beginning on the date the applicable Event of Default
occurred to accrue at an interest rate equal to the lesser of 22% per annum or the maximum rate permitted under applicable law. However,
certain Trigger Events, such as bankruptcy or insolvency, automatically result in an Event of Default, making the outstanding balance
immediately payable at the Mandatory Default Amount without notice.

The
following table presents the components of the net carrying amount of the Note as of March 31, 2025:

 Schedule
of Components of Net Carrying Amount

    Principal 
    $3,300 
  
    Less: unamortized debt discount and debt issuance costs 
     (469)
  
    Long term debt 
    $2,831 
  
    Current portion 
    $2,265 
  
    Long-term portion 
    $566 

The
effective interest rate on the Note was 24.5% for the period from the date of issuance through March 31, 2025. The following table sets
forth total interest expense recognized related to the Note:

 Schedule of Interest Expense

    Three Months Ended
                                                                                March 31, 2025 
  
    Contractual interest expense 
    $30 
  
    Amortization of debt discount 
     19 
  
    Amortization of debt issuance costs 
     22 
  
    Interest expense 
    $71 

NOTE
5 — Stockholders’ Equity

Equity
Financing

On
April 29, 2024, the Company closed on a capital investment of 350,000 shares of common stock and warrants, as adjusted for the Reverse
Stock Split, with a single investor for an aggregate purchase price of $3,850. In connection with the closing, the Company incurred approximately
$66 in issuance costs, which was offset against the proceeds.

Each
warrant has an exercise price of $11.00 per share, as adjusted for the Reverse Stock Split, is immediately exercisable, will expire in
five years from the date of issuance, and is subject to customary adjustments for certain transactions affecting the Company’s
capitalization. The warrants may not be exercised if the aggregate number of shares of common stock beneficially owned by the investor
subsequent to the exercise exceeds the specified beneficial ownership limitation provided therein (which is currently 9.99% and