Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 26

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 26
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 disruptions, political election
cycles, changes in laws and interpretations of laws, changes in the volume and relative mix of U.S. government spending, cost-cutting
and efficiency initiatives and potential disruptions from international conflicts and acts of terrorism, have impacted and may continue
to impact our business and the business of our customers, while also disrupting sales channels and advertising and marketing activities.
See “Part II. Item 1A. Risk Factors” in this Form 10-Q for further discussion of the possible impact of these factors
and other risks on our business.

We
have implemented and continue to implement measures to address those challenges. We also continue to actively manage our inventory and
establish a relationship with third-party manufacturers in an effort to minimize supply chain disruptions. Nevertheless, the above-described
events had and will continue to impact the global macroeconomic and geopolitical environments, capital and commodity markets, and global
supply chains, which may have an adverse impact on our operations and hinder our ability to access capital, if needed. Our cost of revenue
may increase if the component prices increase.

19

Results
of Operations

The
results of operations for the first quarter of 2025 are not necessarily indicative of the operating results to be expected for the full
year or in any future period. Historically, we have experienced higher revenues following the release of new products and start of sales
with additional carriers and distributors.

The
following tables present key components of our results of operations (dollars in thousands):

    Three Months Ended March 31, 

    2025  
    2024  
    Increase (Decrease)  
    % 
  
    Net revenues 
    $16,721  
    $9,118  
    $7,603  
     83%
  
    Related party net revenues 
     —  
     7,658  
     (7,658) 
     (100)%
  
    Total net revenues 
     16,721  
     16,776  
     (55) 
     —%
  
    Cost of revenues 
     8,365  
     13,874  
     (5,509) 
     (40)%
  
    Gross profit 
     8,356  
     2,902  
     5,454  
     188%
  
    Operating expenses 

    Research and development 
     1,633