Company: SONM
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009749
Chunk: 15

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 15
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31, 2025, there was approximately $1,255 of unamortized stock-based compensation cost related to unvested RSUs, which is expected
to be recognized over a weighted average period of 0.31 years. Approximately $806 of this unamortized stock-based compensation cost was
included in accrued liabilities as of December 31, 2024 and this liability will be released as the related stock-based compensation is
recognized.

Additional
RSU grants for shares of the Company’s common stock were issued after March 31, 2025, as well as accelerated vesting for all outstanding
RSUs. See Note 11, Subsequent Events.

NOTE
7 — Income Taxes

For
the three months ended March 31, 2025, and 2024, the Company recorded provisions for income taxes of $132 and $125 respectively. The
Company’s effective income tax rate is 22.4% for the three months ended March 31, 2025, compared to negative 4.5% for the three
months ended March 31, 2024. The Company’s effective tax rate for the three months ended March 31, 2025 differs from the tax rate
for the three months ended March 31, 2024 due to the Company reporting consolidated pretax book income for the three months ended March
31, 2025, and a consolidated pretax book loss for the three months ended March 31, 2024, for which the Company could not report a tax
benefit due to the Company’s full valuation allowance in the U.S.

The
Company’s material income tax jurisdictions are the United States (federal and California), China and India. As a result of net
operating loss and credit carryforwards, the Company is subject to audit for tax years 2017 and forward for federal and 2015 and forward
for California purposes. The China and India tax years are open under the statute of limitations from 2014 and 2020, respectively, and
forward.

The
Company is subject to ongoing tax examinations of its tax returns by the Internal Revenue Service and other tax authorities in various
jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the
likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments
can require considerable estimates and judgments. As of March 31,