Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 53

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 53
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 “Right” and collectively, the “Rights”). In general terms, the Rights Agreement imposes
a significant penalty upon any person or group that acquires beneficial ownership of 15.5% (or, in the case of passive institutional
investors, an amount of “less than 20%”) or more of the outstanding shares of Common Stock without the approval of the Board.
The Rights will expire on April 21, 2026

The
Rights Agreement could have the effect of discouraging, delaying or preventing a change in management or control over us. While there
is no plan to do so at this time, our board may choose to extend the current Rights Agreement or adopt a new rights agreement in the
future.

The
risk factor titled “We are dependent on the continued services and performance of a concentrated and limited group of senior
management and other key personnel, the loss of any of whom could adversely impact our business” is amended and restated as
follows:

We
are dependent on the continued services and performance of a concentrated and limited group of senior management and other key personnel,
the loss of any of whom could adversely impact our business.

Our
future success depends in large part on the continued contributions of a concentrated and limited group of senior management and other
key personnel. Beginning in 2021, we outsourced substantially all of our manufacturing work to third parties. As of December 31, 2024,
our worldwide employee headcount was 131 employees.

Due
to the small size of our Company and our limited number of employees, each member of our executives, managers and other key personnel
serves a critical role to our success. If we are unable to retain sufficiently experienced and capable employees, including those who
can help us increase revenues generated from our end market segments, our business and financial results may suffer. The loss of the
services of any additional executives, managers or other key personnel could impede the achievement of our strategic objectives, seriously
harm our ability to successfully implement our business strategy and adversely impact our operating results. In addition, if additional
executives, managers or other key personnel resign, retire or are terminated, or their service is otherwise interrupted, including due
to global pandemics, we may not be able to replace them in a timely manner and we could experience significant declines in productivity
and/or errors due to insufficient staffing or managerial oversight. Moreover, experienced and capable employees in the technology industry
remain in high demand, and there is continual competition for their