Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 47

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 47
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 million compared to 2024 primarily due to an increase
in marketing spend to support new products in the first half of 2025, and compliance work for Europe.

General
and Administrative

General
and administrative expenses for the three months ended September 30, 2025, increased by $0.3 million compared to 2024 primarily due to
an increase in legal and other expenses related to the hostile takeover attempt and the divestiture activity being pursued by the Company.

General
and administrative expenses for the nine months ended September 30, 2025, increased by $1.3 million compared to 2024 primarily due to
an increase in legal and other expenses related to the hostile takeover attempt and the divestiture activity being pursued by the Company.

Impairment
of Contract Fulfillment Assets

Impairment
of contract fulfillment assets for the nine months ended September 30, 2024, was $3.2 million, resulting from the Company’s determination
that it would not recover the contract fulfillment costs capitalized due to a decrease in projected profit for one of its hotspots and
the cancellation of the consumer durable product.

Interest
Expense

Interest
expense for the three and nine months ended September 30, 2025, primarily relates to the Notes, which includes contractual interest expense
and the amortization of the debt discount and debt issuance costs, and interest related to accounts receivable financing.

Liquidity
and Capital Resources

Historically,
we have funded operations from a combination of public and private equity financings, and through the issuance of debt. During the nine
months ended September 30, 2025 we received net proceeds of $13.8 million from the sale of our common stock, and we received net proceeds
of $5.1 million from the issuance of the Notes.

During
the nine months ended September 30, 2025, we reported a net loss of $11.8 million and used $21.5 million in operating cash flow. As of
September 30, 2025, our principal source of liquidity consisted of cash and cash equivalents totaling $2.1 million. The Company expects
to close the Asset Purchase Agreement at the end of 2025 or the beginning of 2026. Once the Asset Purchase Agreement closes, the Company
will have no revenue from the existing business. The Company is investigating strategic alternatives for the remaining assets of the
Company following the closure of the Asset Purchase Agreement. The uncertainty regarding the