Company: SONM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001493152-25-020310
Chunk: 16

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 16
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 in the Condensed Consolidated Balance Sheets.

Interest
under the February Note accrues at a rate of 9% per annum. The unpaid amount of the February Note, any interest, fees, charges, and late
fees are due 18 months following the date of issuance. The Company may prepay all or any portion of the outstanding balance of the February
Note. If the Company elects to prepay the February Note in part, it will be required to pay to the Lender an amount in cash equal to
110% of the portion of the outstanding balance the Company elects to prepay.

Commencing
six months after the date of issuance of the February Note and at any time thereafter until the February Note is paid in full, the Lender
will have the right to redeem up to $330 under the February Note per calendar month. The Company must pay the redeemed amount in cash
within three trading days of receiving a redemption notice. On three separate occasions and not more than once every 90 calendar days,
the Company may defer any redemptions the Lender could otherwise make during a calendar month, provided, however, that each deferral
increases the outstanding balance of the February Note by 1%. During the three months ended September 30, 2025, the Company and the Lender
entered into certain exchange agreements whereby the Company issued 30,188 shares, as adjusted for the Reverse Stock Splits, in exchange
for payment-in-full of $375 in principal balance of the February Note, which resulted in the accelerated amortization of $58 in debt
discount and debt issuance costs.

    12

At
any time following the occurrence of a Major Trigger Event or Minor Trigger Event (each as defined in the February Note), the Lender
may increase the outstanding balance of the February Note by 15% for each occurrence of any Major Trigger Event and 5% for each occurrence
of any Minor Trigger Event (the “Trigger Effect”), provided that the Trigger Effect may only be applied three times with
respect to Major Trigger Events and three times with respect to Minor Trigger Events.

Subject
to certain exceptions described below, if the Company fails to cure a Trigger Event within five trading days following the date of transmission
of written demand notice by the Lender, the Trigger Event will automatically become an Event of Default (as defined in the February Note).
Following the occurrence of any Event of Default, the Lender may, upon written notice to the Company, (i) accelerate