Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 35

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 35
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are required to meet the Nasdaq continued listing requirements and other Nasdaq rules, or we may risk delisting. Delisting could negatively
affect the price of our common stock, which could make it more difficult for us to sell securities in a future financing or for you to
sell our common stock.

We
are required to meet the continued listing requirements of the Nasdaq and other Nasdaq rules, including those regarding director independence
and independent committee requirements, minimum stockholders’ equity, minimum share price and certain other corporate governance
requirements. In particular, we are required to maintain a minimum bid price for our listed common stock of $1.00 per share (which we
previously failed to meet resulting in two reverse stock splits in a five-year period in order to regain compliance) and either a minimum
stockholders’ equity of $2,500,000, or a minimum market value of our common stock of at least $35,000,000. If we do not meet these
continued listing requirements, our common stock could be delisted. We have a history of receiving deficiency letters from Nasdaq.

If
Nasdaq delists our common stock from trading on its exchange and we are not able to list our common stock on another national securities
exchange, we expect our common stock could be quoted on an over-the-counter market. If this were to occur, we could face significant
material adverse consequences, including:

    ●
    a
    limited availability of market quotations for our common stock;

    ●
    reduced
    liquidity for our common stock;

    ●
    a
    determination that our common stock is a “penny stock” which will require brokers trading in our common stock to adhere
    to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities;

    ●
    negative
    publicity;

    ●
    a
    limited amount of news and analyst coverage;

    ●
    loss
    of eligibility to register the sale or resale of our securities on Form S-3; and

    ●
    a
    decreased ability to issue additional securities or obtain additional financing in the future.

25

The
risk factor titled “Some provisions of Delaware law and our certificate of incorporation and bylaws may delay or prevent a change
in control and may discourage bids for our common stock at a premium over its market price” is amended and restated as follows:

Some
provisions of Delaware law and our certificate