Company: SONM
Filing Date: 2025-09-29
Form Type: S-1
Source: 0001493152-25-016055
Chunk: 9

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: S-1
Chunk 9
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Looking ahead, Sonim is focused on bringing our new products and solutions offering to our expanded portfolio throughout 2025.

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Recent Developments

Pending Asset Purchase Agreement with Social Mobile and Announced Strategic Initiatives

On July 17, 2025, the Company entered into an asset purchase agreement (the “Asset Purchase Agreement”) by and among the Company, as seller, Pace Car Acquisition LLC, as buyer, (the “Buyer”), the Seller Representative named in the Asset Purchase Agreement, and, Social Mobile Technology Holdings LLC (the “Parent”), solely for the purpose of guaranteeing complete payment and performance obligations of the Buyer contained in the Asset Purchase Agreement.

Pursuant to the Asset Purchase Agreement, the Buyer agreed to acquire substantially all assets of the Company and its subsidiaries related to the Company’s enterprise 5G solutions business, including rugged handsets, smartphones, wireless internet devices, software, services, and accessories (collectively, the “Business”) for a purchase price of $15.0 million in cash, subject to (i) customary working capital, indebtedness and transaction expense adjustments (referred to in the Asset Purchase Agreement as the “Adjustment Amount,” which may be a positive or a negative number) and (ii) up to $5.0 million in the form of an earn-out payment, if earned. The Asset Purchase Agreement permits the Company to pursue a reverse merger (“RTO”) with the currently anticipated target or an alternative target, provided that any such transaction is complementary to and not a substitute for the transactions contemplated by the Asset Purchase Agreement.

Because the transaction contemplates the sale of substantially all of the Company’s assets, the Company concurrently announced a strategic initiative to pursue a potential RTO, in addition to completing the asset sale, with the objective of maximizing stockholder value. If consummated, the RTO would allow the public company to continue as an SEC-reporting entity under a new name and trading symbol, and with a new business focus. There can be no assurance that the Asset Purchase Agreement or any RTO transaction will ultimately be consummated timely or at all or that it will be consummated as a conventional RTO as opposed to the Company’s commencement of a new line of business that will not be disposed of with the legacy business. Please carefully review the group of risk factors titled “ Risks Related to the Proposed Asset Purchase Agreement and Announced Strategic Initiatives” for more information regarding the risks associated with Sonim’s strategic alternatives process.

The Committed