Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 28

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 28
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 2022 through 2024 can be expensed in 2025 or over a two-year period, 2025 and 2026. The Company continues to evaluate various
elections available to the Company under OBBBA related to IRC Section 174 capitalized R&D costs. Because of the Company’s loss
and full valuation allowance, we expect no impact on the Company’s 2025 financial statements regardless of the elections that the
Company makes related to IRC Section 174 capitalized R&D costs for the 2025 year.

NOTE
8 — Commitments and Contingencies

Purchase
Commitments

The
aggregate amount of noncancelable purchase orders as of September 30, 2025, and December 31, 2024, was approximately $14,278 and $15,753,
respectively, and were related to the purchase of inventory and components for the Company’s devices, and certification services.

Royalty
payments

The
Company is required to pay per unit royalties to wireless essential patent holders and other providers of integrated technologies on
mobile devices delivered, which, in aggregate, amount to less than 5% of net revenues associated with each unit and expire between 2025
and 2033. Royalty expense for the three months ended September 30, 2025, and 2024 was $304 and $336, respectively. Royalty expense for
the nine months ended September 30, 2025, and 2024 was $738 and $818, respectively. Royalty expense is included in Cost of Revenues.
The Company may be required to pay additional royalties to additional patent holders and technology providers on future products.

    18

General
litigation

The
Company is involved in various legal proceedings arising in the normal course of business. The Company does not believe that the ultimate
resolution of these other matters will have a material adverse effect on its consolidated financial position, results of operations,
or cash flows.

As
of September 30, 2025, the Company was not subject to any currently pending legal matters or claims that would be expected to have a material adverse
effect on its financial position, results of operations, or cash flows should such litigation be resolved unfavorably. Information on
legal proceedings and material developments in connection therewith for the six months ended June 30, 2025, is included in the Company’s
quarterly report for that period, filed with the SEC on August 8, 2025, and is incorporated