Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 35

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 35
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. For the nine months ended September 30, 2025, wireless carriers contributed 83% of our total net revenues, 12% of which
related to the expiration of customer allowance agreements as three of our legacy phones approach end-of-life, with our top three carrier
customers accounting for 69% of our total net revenues, 11% of which related to the expiration of customer allowance agreements. Our
rugged smartphones represented 54% of our total net revenues, 12% of which related to the expiration of customer allowance agreements,
while feature phones were 28% of our total net revenues, and connected solutions were 16% of our total net revenues. For the three months
ended September 30, 2025, wireless carriers contributed 78% of our total net revenues, with our top three carrier customers accounting
for 59% of our total net revenues. Our rugged smartphones represented 50% of our total net revenues, while feature phones were 23% of
our total net revenues, and connected solutions were 25% of our total net revenues.

In
alignment with Sonim Technologies’ commitment to quality, reliability, and regulatory compliance, we have prioritized our Trade
Agreements Act (“TAA”) initiatives. TAA compliance is crucial in enhancing our market strategy, particularly in expanding
opportunities within government and enterprise markets, which demand stringent adherence to regulatory standards. By ensuring our products
meet TAA requirements, we reinforce our position as a trusted provider of enterprise 5G solutions.

This
initiative underscores our dedication to delivering products that not only meet industry-leading standards but also comply with U.S.
federal procurement regulations, thereby enhancing our competitiveness in securing government contracts.

Looking
ahead, Sonim is focused on bringing our new products and solutions offering to our expanded portfolio throughout 2025.

Pending
Asset Purchase Agreement with Social Mobile and Company’s Strategic Initiatives

On
July 17, 2025, the Company entered into an asset purchase agreement (the “Asset Purchase Agreement”) by and among the Company,
as seller, Pace Car Acquisition LLC, as buyer, (the “Buyer”), the Seller Representative named in the Asset Purchase Agreement,
and, Social Mobile Technology Holdings LLC (the “Parent”), solely for the purpose of guaranteeing complete payment and performance
obligations of the Buyer contained in the Asset Purchase Agreement.

Pursuant
to the Asset Purchase Agreement, the Buyer agreed to acquire substantially all assets of the Company and its subsidiaries related to