Company: SONM
Filing Date: 2025-04-18
Form Type: DRS
Source: 0001641172-25-005421
Chunk: 13

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-04-18
Form: DRS
Chunk 13
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 an institutional lender pursuant to which we issued and sold to the lender a promissory note in the original principal amount of $3.3 million (the “Note”). Interest under the Note accrues at a rate of nine percent (9%) per annum. The Note matures ‎on ‎August‎ ‎21‎, ‎2026. Additionally, commencing six (6) months after the date of issuance of the Note and at any time thereafter until the Note is paid in full, the lender will have the right to redeem up to $330,000 under the Note per calendar month.

Review of the Company’s Strategic Alternatives and Nomination of Alternative Slate of Directors

In January 2025, Orbic North America, LLC (“Orbic”), an affiliate of our competitor currently engaged in intellectual property litigation against Sonim, announced an “agreement in principle” with AJP Holding Company, LLC (“AJP”), our largest stockholder, which is controlled by our director Jeffrey Wang, who beneficially owns approximately 23% of our common stock, to acquire a portion of AJP’s holdings. Orbic also entered into an irrevocable proxy agreement granting it control over all of AJP’s voting power.

In response, our board established a Special Committee consisting of independent directors to evaluate our strategic alternatives. Since then, Orbic has submitted a purported nomination notice proposing an alternative slate of director candidates for the Company’s 2025 annual meeting and issued a non-binding public offer to acquire all outstanding shares of our common stock for $4.00 per share. The Special Committee is conducting a thorough evaluation of all proposals along with all viable strategic alternatives, including reasonable hostile takeover defense measures, to determine the best outcome for our stockholders.

Compliance with Nasdaq Listing Rules

On September 14, 2023, the Company received a letter from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market, LLC (“Nasdaq”) notifying it that, because the bid price for its common stock had fallen below $1.00 per share for 30 consecutive business days, the Company no longer complied with the $1.00 minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”) for continued listing. On August 2, 2024, the Company received a letter from the Staff notifying the Company that it had regained compliance with the Bid Price Rule.

Implications of Being a Smaller Reporting Company

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