Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 14

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 14
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 and recognizes a factoring liability for any advances until the
accounts receivables are collected. As of December 31, 2024, there was $591 outstanding under the LS Receivables Financing Agreement,
which is included in accrued liabilities in the Condensed Consolidated Balance Sheets. As of September 30, 2025, the LS Receivables Financing
Agreement is terminated.

Receivables
Financing Agreement

On
August 7, 2025, the Company entered into a non-recourse factoring agreement with Tradewind GmbH (the “Factor”). Under the
terms of the agreement, the Company has committed to sell eligible accounts receivable from designated international customers to the
Factor on a continuing basis, subject to individual credit limits and other conditions specified in the agreement.

The
factoring arrangement provides for a maximum facility of €3,000, with a financing rate of 85% of the face value of qualified receivables.
The Company is able to receive an advance on such receivables, less applicable fees and reserves. Factoring fees vary based on the payment
terms of the underlying receivables and range from 0.55% to 1.65% of the invoice amount, with an additional late fee assessed on unpaid
balances after 95 days. Interest is equal to the greater of 4.00% or EURIBOR + 3.50%. The Factor assumes the credit risk of purchased
receivables, subject to specified exclusions and conditions. The agreement has an initial 12-month term and automatically renews unless
terminated in accordance with its terms. As of September 30, 2025, there were no borrowings under the Receivables Financing Agreement.

    11

NOTE
4 — Promissory Notes

February
Purchase Agreement

On
February 21, 2025, the Company entered into a note purchase agreement (the “February Purchase Agreement”) with Streeterville
Capital, LLC (the “Lender”) pursuant to which the Company issued and sold to the Lender a promissory note in the original
principal amount of $3,300 (the “February Note”).

The
Purchase Agreement

Pursuant
to the terms of the February Purchase Agreement, until all of the Company’s obligations under the February Note and all other transaction
documents are paid and performed in full, the Company agreed to comply with certain covenants, including but not limited to the following:
(i) compliance