Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 74

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 74
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, 2025, was 8%, which reflects the negative impact of the impairment of contract fulfillment assets and additional
tariff costs mentioned above, compared to 17% in 2024.

Gross
profit for the six months ended June 30, 2025, increased by $3.3 million compared to 2024 primarily due to the $5.5 million in revenue
related to the expiration of customer allowance agreements in 2025. Gross margin for the six months ended June 30, 2025, was 33%, which
reflects the positive impact from the expiration of customer allowance agreements that have no related cost of sales, compared to 21%
in 2024, which reflects the negative impact of white label products that had a gross margin of approximately 6%.

26

Research
and Development

R&D
expenses for the three months ended June 30, 2025, increased by $0.4 million compared to 2024, primarily due to there being limited R&D
projects during the second quarter of 2024. In 2025, R&D expenses were primarily from internal work on the development of new variants
of our XP Pro, including a version with a thermal camera, the HPUE hotspot, the XP400 phone for Europe, and the updated 5G version of
our XP3plus. In the third quarter of 2025 we expect to continue to incur R&D expenses for many of these products.

R&D
expenses for the six months ended June 30, 2025, increased by $1.5 million compared to 2024, primarily due to there being limited R&D
projects during the first half of 2024. In 2025, R&D expenses were primarily from internal work on the development of new variants
of our XP Pro, including a version with a thermal camera, the HPUE hotspot, the XP400 phone for Europe, and the updated 5G version of
our XP3plus.

Sales
and Marketing

Sales
and marketing expenses for the three months ended June 30, 2025, increased by $0.2 million compared to 2024 primarily due to an increase
in marketing spend to support new products in 2025, and compliance work for Europe.

Sales
and marketing expenses for the six months ended June 30, 2025, increased by $1.0 million compared to 2024 primarily due to an increase
in marketing spend to support new products