Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 124

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 124
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 sanctions and investment restrictions, or other trade matters. Although
the ultimate scope and timing of any such actions is currently indeterminable, if implemented, they could have a material impact on our
financial condition and results of operations. If further tariffs are imposed on a broader range of imports, further retaliatory trade
measures are taken by various countries in response to tariffs, or efforts are made to withdraw from or substantially modify such agreements,
then we may be required to raise our prices or incur additional expenses.

In
addition, the FCC rules prohibit communications equipment deemed to pose an unacceptable risk to national security from obtaining the
equipment authorization that allows the products to be imported, marketed, or sold in the U.S. If any of our product components were
to be classified under these restrictions, we could face regulatory hurdles, supply chain disruptions, and lost revenue opportunities,
which could have a material impact on our operations and financial results. Additionally, evolving national security policies and heightened
scrutiny of foreign-manufactured telecommunications equipment may further increase compliance costs and restrict our market access.

The
adoption or expansion of trade restrictions, the escalation of a trade war, or other governmental actions related to tariffs, trade agreements,
or prohibition of components of communication equipment, could negatively impact demand for our products, increase costs, disrupt our
supply chain, and adversely affect our customers and suppliers. Any of these developments could have a material adverse effect on our
business, operating results, and financial condition.

30

The
risk factor titled “Our business and operations could be negatively affected if we become subject to stockholder activism or
hostile bids, which could cause us to incur significant expense, hinder execution of our business strategy and impact our stock price”
is amended and restated as follows:

Our
business and operations could be negatively affected if we become subject to stockholder activism or hostile bids, which could cause
us to incur significant expense, hinder execution of our business strategy and impact our stock price.

Stockholder
activism—ranging from proxy contests and hostile bids to public campaigns and litigation—has become increasingly prevalent.
Declines in our stock price may heighten our vulnerability to unsolicited approaches, potentially disrupting our business strategy and
operations.

Sonim
has already been subjected to such activism. In January 2025, Orbic North America, LLC (“Orbic”), an affiliate of a competitor
currently engaged in intellectual property litigation against us, commenced its campaign to acquire Sonim. In the course of its campaign,
it formed