Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 77

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 77
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 primarily consist of $3.2 million in impairment charges related to contract
fulfillment assets, $1.7 million in depreciation and amortization, and $0.8 million for stock-based compensation. The change in net operating
assets and liabilities was primarily due to a decrease in trade accounts receivable and inventory and an increase in account payables
and accrued expenses, partially offset by an increase in non-trade and related party receivables, prepaid inventory, and contract fulfillment
assets.

Cash
flows from investing activities

For
the six months ended June 30, 2025, and 2024, there were no significant investing activities.

Cash
flows from financing activities

For
the six months ended June 30, 2025, the Company received $9.0 million in cash, net of issuance costs, from sales of common stock, as
well as $2.8 million in net proceeds from the issuance of the Note and repaid $0.6 million borrowed under the Receivables Financing Agreement.

For
the six months ended June 30, 2024, the Company received $3.8 million in cash, net of issuance costs, from an investor for the purchase
of its shares and the issuance of warrants.

Material
Cash Requirements

There
have been no material changes to our material cash requirements from those disclosed in our Annual Report on Form 10-K for the year ended
December 31, 2024.

28

Critical
Accounting Policies and Estimates

Our
discussion and analysis of financial condition and results of operations is based upon our condensed consolidated financial statements,
which have been prepared in conformity with accounting principles generally accepted in the United States of America. Certain accounting
policies and estimates are particularly important to the understanding of our financial position and results of operations and require
the application of significant judgment by our management or can be materially affected by changes from period to period in economic
factors or conditions that are outside of our control. As a result, they are subject to an inherent degree of uncertainty. In applying
these policies, our management uses their judgment to determine the appropriate assumptions to be used in the determination of certain
estimates. Those estimates are based on our historical operations, our future business plans and projected financial results, the terms
of existing contracts, our observance of trends in the industry, information provided by our customers and information available from
other outside sources, as appropriate.

A
description of our critical accounting policies that represent the more significant judgments