Sonim Technologies Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income loss Before Income Taxes for Domestic and Foreign Operations

The following table presents the income (loss) before income taxes for domestic and foreign operations (in thousands):

	2025			2024

Domestic loss	$	(7,955	)	$	(2,883	)
Foreign subsidiaries income		—			—
Income (loss) before income taxes from continuing operations	$	(7,955	)	$	(2,883	)

Schedule of Net Income Loss From Continuing and Discontinuing Operations

Continuing operations	2025
Loss from continuing operations before income taxes	$	(7,955	)
Income taxes		—
Loss from continuing operations	$	(7,955	)

Discontinued operations
Loss from discontinued operations before income taxes	$	(13,848	)
Income taxes		1,146
Loss from discontinued operations	$	(12,702	)
Net loss	$	(20,657	)

Schedule of Income Tax Expense Benefit

	2025			2024			Continuing Operations 2025		Discontinued Operations 2025
Current income tax expense:
Federal	$	—		$	1		$	—	$	—
State		(13	)		12			—		(13	)
Foreign		296			222			—		296
Total Current		283			236			—		283

Deferred income tax expense (benefit):
Federal		(1,970	)					—		(1,970	)
State		(48	)					—		(48	)
Foreign		589			(10	)		—		589
Total Deferred		(1,429	)		(10	)		—		(1,429	)
Total provision for income taxes	$	(1,146	)	$	226		$	—	$	(1,146	)

Schedule of Effective Income Tax

The Company’s effective tax rate differs from the federal statutory rate due to the following (in thousands):

Schedule of Effective Income Tax

				Continuing Operations
	2024			2024
Statutory federal income tax rate		21.00	%		21.00	%
State income taxes, net of federal tax benefits		0.41	%		—	%
Stock compensation		-0.66	%		—	%
Change in assertion – permanent reinvestment		0.00	%		—	%
Foreign rate differential		-0.24	%		—	%
Tax Credits		0.00	%		—	%
GILTI Inclusion		-0.37	%		—	%
Adjustment to Section 382 Limit Tax Carryovers		0.00	%		—	%
Non-deductible expenses		-0.06	%		—	%
Valuation allowance		-20.73	%		-21.00	%
Other		0.00	%		—	%
Effective tax rate		0.68	%		—	%


	2025 Continuing Operations
	In thousands			Percent
Tax at federal statutory rate	$	( 1,670	)		21.00	%
State income taxes, net of federal tax benefit		—			—	%
Foreign tax effects		—			—
India		—			—
Change in assertion – permanent reinvestment		—			—	%
Other		—			—	%
Other foreign jurisdictions		—			—	%
Effect of change in tax laws or rates in current year		—			—	%
Effect of cross-border tax laws - GILTI		—			—	%
Tax credits		—			—	%
Change in valuation allowance		1,670			-21.00	%
Nontaxable or nondeductible items
Section 382 change in control limits		—			—	%
Other		—			—	%
Changes in unrecognized tax benefits		—			—	%
Provision (benefit) for income taxes	$	—			—	%

Schedule Of Income Tax Net Cash Paid

Net cash paid (refunds received) for income taxes consisted of the following:

Schedule Of Income Tax Net Cash Paid

	2025
Federal	$	—
State and local jurisdictions
CA		1
NJ		1
TX		22
Foreign
China		89
India		35
Total Net cash paid for income taxes	$	148

Schedule of Components of the Company’s Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities at December 31 (in thousands):

	2025			2024
Gross deferred tax assets:
Net operating loss carryforward	$	2,693		$	25,379
Section 174 capitalized costs		3,747			3,443
R&D tax credits		—			102
Accruals and reserves		2,102			2,519
Capitalized transaction costs		53			—
Section 163(j) interest expense carryover		156			284
Stock compensation		110			125
Alternative minimum tax credits		—			21
Total gross deferred tax assets		8,861			31,873
Less: valuation allowance		(4,270	)		(30,271	)
Total deferred tax assets net of valuation allowance		4,591			1,602
Deferred tax liabilities:
Deferred commissions		(2,495	)		(1,440	)
Property and equipment		(55	)		(97	)
Future repatriation of foreign earnings		(600	)		—
Net deferred tax assets	$	1,441		$	65

Schedule of Cumulative Foreign Earnings

Estimate of cumulative foreign earnings is as follows as of December 31, 2025:

	2025		2024
China	$	6,966	$	6,694
India		—		5,309
Total	$	6,966	$	12,003

Summary of Operating Loss Carryforwards

The Company had net operating loss carryovers as follows as of December 31 (in thousands):

Summary of Operating Loss Carryforwards

	2025		California		Other
Federal NOL	$	12,697		-		-
State NOL	$	751	$	771	$	29

Summary of Tax Credit Carryforwards

The Company had research and development (“R&D”) credit carryforwards as follows as of December 31:

Summary of Tax Credit Carryforwards

	2025		Tax Return		FIN 48
Federal R&D credits	$	—	$	—	$	—
California R&D credits	$	—	$	—	$	—

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to unrecognized tax benefits as follows as of December 31:

Schedule of Unrecognized Tax Benefits

	2025			2024
Unrecognized benefit-beginning of period	$	1,473		$	1,274
Gross increases-prior period tax positions		—			153
Gross (decreases)-prior period tax positions		(34	)		—
Gross (decreases)-current period tax positions		68			46
Unrecognized benefit-end of period	$	1,507		$	1,473