Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 49

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 2
Chunk 49
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168)
  
    Net cash used in investing activities 
     —  
     (30)
  
    Net cash provided by financing activities 
     6,378  
     53 
  
    Net decrease in cash and cash equivalents 
    $(3,228) 
    $(145)

Cash
flows from operating activities

For
the three months ended March 31, 2025, cash used in operating activities was $9.6 million, primarily attributable to net cash used in
a change in net operating assets and liabilities of $6.1 million and net income of $0.5 million, excluding net non-cash operating activity of $4.0 million. The change in net operating assets and liabilities was primarily due to net payments made on accounts payable and an
increase in contract fulfillment assets, which are capitalized costs for product certifications, partially offset by a decrease in inventory.
Non-cash charges primarily consist of $5.3 million related to the expiration of customer allowance agreements,
$1.1 million in depreciation and amortization and $0.3 million for stock-based compensation.

For
the three months ended March 31, 2024, cash used in operating activities was $0.2 million, primarily attributable to a net loss of $2.9
million, partially offset by net cash provided by a change in our operating assets and liabilities of $1.5 million and net non-cash charges
of $1.3 million. The change in net operating assets and liabilities was primarily due to a decrease in accounts receivable and inventory,
partially offset by an increase in contract fulfillment assets. Non-cash charges primarily consist of $0.9 million in depreciation and
amortization and $0.3 million for stock-based compensation.

Cash
flows from investing activities

For
the three months ended March 31, 2025, and 2024, there were no significant investing activities.

Cash
flows from financing activities

For
the three months ended March 31, 2025, the Company received $3.5 million in cash, net of issuance costs, from ATM sales, as well as $2.8
million in net proceeds from the issuance of the Note.

For
the three months ended March 31, 2024, there were no significant financing activities.

Material
Cash Requirements

There
have been no material changes to our material cash requirements from those disclosed in our Annual Report on Form 10-K for the year ended
December