Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 88

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 4
Chunk 88
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which could have a material impact on our operations and financial results. Additionally, evolving national security policies and heightened
scrutiny of foreign-manufactured telecommunications equipment may further increase compliance costs and restrict our market access.

The
adoption or expansion of trade restrictions, the escalation of a trade war, or other governmental actions related to tariffs, trade agreements,
or prohibition of components of communication equipment, could negatively impact demand for our products, increase costs, disrupt our
supply chain, and adversely affect our customers and suppliers. Any of these developments could have a material adverse effect on our
business, operating results, and financial condition.

31

The
risk factor titled “Our business and operations could be negatively affected if we become subject to stockholder activism or
hostile bids, which could cause us to incur significant expense, hinder execution of our business strategy and impact our stock price”
is amended and restated as follows:

Our
business and operations could be negatively affected if we become subject to stockholder activism or hostile bids, which could cause
us to incur significant expense, hinder execution of our business strategy and impact our stock price.

Stockholder
activism—ranging from proxy contests and hostile bids to public campaigns and litigation—has become increasingly prevalent.
Declines in our stock price may heighten our vulnerability to unsolicited approaches, potentially disrupting our business strategy and
operations.

Sonim
has already been subjected to such activism. In January 2025, Orbic North America, LLC (“Orbic”), an affiliate of a competitor
currently engaged in intellectual property litigation against us, commenced its campaign to acquire Sonim. In the course of its campaign,
it formed a Section 13 with a major stockholder of Sonim, nominated an alternative slate of director nominees for the 2025 meeting of
our stockholders, and purportedly submitted multiple bids to acquire Sonim. While Orbic ultimately failed in all fronts — stockholders
elected the Company’s director nominees at the 2025 annual meeting and the Company entered into the Asset Purchase Agreement —
we incurred significant expenses in connection with our defense against Orbic’s actions, and there can be no assurance that Orbic
would not attempt to disrupt the Company’s initiatives, including the RTO search and the consummation of the Asset Purchase Agreement.

Responding
to such actions by activist stockholders can be costly and time-consuming, disrupt our operations, and divert the attention of management
and our board of directors. If AJP and Orbic are successful in the