Company: SONM
Filing Date: 2025-11-24
Form Type: PREM14A
Source: 0001493152-25-024848
Chunk: 365

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-11-24
Form: PREM14A
Chunk 365
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 of any related appeals or litigation processes, based on technical merit. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize, in the consolidated financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

The following table summarizes the activity related to unrecognized tax benefits as follows as of December 31:

Schedule of Unrecognized Tax Benefits

|                                                |     |   |  2024 |     |   |  2023 |
|:-----------------------------------------------|:----|:--|------:|:----|:--|------:|
| Unrecognized benefit-beginning of period       |     | $ | 1,274 |     | $ | 1,273 |
| Gross increases-prior period tax positions     |     |   |   153 |     |   |     1 |
| Gross (decreases)-current period tax positions |     |   |    46 |     |   |     — |
| Unrecognized benefit-end of period             |     | $ | 1,473 |     | $ | 1,274 |

As of December 31, 2024, $1 of the unrecognized tax benefits are accounted for as a reduction in the Company’s deferred tax assets. Due to the Company’s valuation allowance, only $1,472 of the $1,473 of unrecognized tax benefits would affect the Company’s effective tax rate, if recognized. The Company does not believe it is reasonably possible that its unrecognized tax benefits will significantly change in the next twelve months.

The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. The Company reported a tax expense of $39 of interest and penalties in 2024 and the Company has accrued a liability of $259 for accrued interest and penalties related to unrecognized tax benefit as of December 31, 2024.

The Company’s material income tax jurisdictions are the United States (federal and California), China and India. As a result of net operating loss and credit carryforwards, the Company is subject to audit for tax years 2014 and forward for California purposes and for 2017 and forward for federal tax purposes. The China and India tax years are open under the statute of limitations from 2017 and forward.

| F-46 |

Accounting for GILTI requires companies to adopt tax accounting policies related to:

Treating the book-tax differences as