Company: SONM
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022821
Chunk: 88

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 88
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 Asset Purchase Agreement, we are restricted from soliciting, initiating, inducing, or knowingly encouraging or knowingly facilitating
alternative acquisition proposals from third parties, and/or providing non-public information to third parties relating to any inquiries,
proposals or offers that would reasonably be expected to lead to certain transactions involving a third party, including a merger, business
combination or similar transaction, subject to specified exceptions, including the solicitation of an RTO transaction that is not impacting
the disposition of the legacy business. The Asset Purchase Agreement also contains termination provisions for both us and Buyer, including
the right of the Company to terminate the Asset Purchase Agreement to accept a Superior Proposal (as defined in the Asset Purchase Agreement),
subject to and in accordance with the terms and conditions of the Asset Purchase Agreement, and provides that, in connection with the
termination of the Asset Purchase Agreement by us to enter into an alternative acquisition agreement providing for a Superior Proposal,
we will pay the Buyer (i) reimbursement of transaction-related expenses reasonably incurred by the Buyer and its affiliates, and (ii)
a termination fee of $1 million. These provisions could discourage a third party that may have an interest in acquiring all or a significant
part of our business from considering or proposing that acquisition, even if such third party were prepared to pay consideration with
a higher value than the value of the consideration in the Asset Purchase Agreement.

We
may face litigation filed against us over the Asset Purchase Agreement or an RTO.

Currently,
the Company is not aware of any complaints filed or litigation pending related to the Asset Purchase Agreement. However, litigation is
a common occurrence in connection with transactions similar to the proposed transaction, so we face potential for litigation or other
disputes that relate to the Asset Purchase Agreement or an RTO, including claims related to our process or disclosures and investigatory
demands under Delaware law. We can provide no assurance that such litigation, disputes, or demands will not arise in the future. Any
such litigation, disputes, or demands, whether successful or not, could delay the closing of the Asset Purchase Agreement or an RTO,
or could have a material adverse effect on our business, results of operations, and financial condition.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item
3. Defaults Upon Senior Securities.

None.

Item
4. Mine Safety Disclosures.

Not
applicable.

Item
5. Other Information.

None
of our directors or officers adopted or terminated a Rule 10b5-