EX-99.2 3 soun-20240808ex992financia.htm EX-99.2 Document

SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
June 30,
2024		December 31,
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$200,156 $95,260 
Accounts receivable, net of allowances of $439 and $203 as of June 30, 2024 and December 31, 2023, respectively5,059 4,050 
Contract assets and unbilled receivable, net of allowance for credit losses of $108 and $17 of June 30, 2024 and December 31, 2023, respectively14,892 11,780 
Other current assets3,949 2,452 
Total current assets224,056 113,542 
Restricted cash equivalents, non-current811 13,775 
Right-of-use assets4,303 5,210 
Property and equipment, net1,296 1,515 
Goodwill6,039 — 
Intangible assets, net13,147 — 
Deferred tax asset10 11 
Contract assets and unbilled receivable, non-current, net of allowance for credit losses of $171 and $177 of June 30, 2024 and December 31, 2023, respectively15,518 16,492 
Other non-current assets1,494 577 
Total assets$266,674 $151,122 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$4,255 $1,653 
Accrued liabilities13,147 13,884 
Operating lease liabilities2,285 2,637 
Finance lease liabilities63 121 
Income tax liability1,888 1,618 
Deferred revenue2,931 4,310 
  Other current liabilities968 — 
Total current liabilities25,537 24,223 
Operating lease liabilities, net of current portion2,175 3,089 
Deferred revenue, net of current portion3,766 4,910 
Long-term debt— 84,312 
Contingent acquisition liabilities (Note 17)4,410 — 
Income tax liability, net of current portion2,275 2,453 
Other non-current liabilities4,570 3,967 
Total liabilities42,733 122,954 
Commitments and contingencies (Note 7)
Stockholders’ equity:  
Series A Preferred Stock, $0.0001 par value; 1,000,000 shares authorized; 0 and 475,005 shares issued and outstanding, aggregate liquidation preference of $0 and $16,227 as of June 30, 2024 and December 31, 2023, respectively— 14,187 
Class A Common Stock, $0.0001 par value; 455,000,000 shares authorized; 315,153,605 and 216,943,349 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively31 22 
Class B Common Stock, $0.0001 par value; 44,000,000 shares authorized; 32,735,408 and 37,485,408 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively3 4 
Additional paid-in capital886,412 606,135 
Accumulated deficit(662,710)(592,379)
Accumulated other comprehensive income 205 199 
Total stockholders’ equity223,941 28,168 
Total liabilities and stockholders’ equity$266,674 $151,122 


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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Revenues$13,462 $8,751 $25,056 $15,458 
Operating expenses:
Cost of revenues4,980 1,830 9,649 3,806 
Sales and marketing5,655 5,078 11,197 9,953 
Research and development15,738 11,736 30,616 25,920 
General and administrative9,535 6,424 19,802 13,713 
Change in fair value of contingent acquisition liabilities(1,082)— 3,080 — 
Amortization of intangible assets621 — 1,226 — 
Restructuring— 166 — 3,751 
Total operating expenses35,447 25,234 75,570 57,143 
Loss from operations(21,985)(16,483)(50,514)(41,685)
Other expense, net:
Loss on early extinguishment of debt(15,587)(837)(15,587)(837)
Interest expense(4,086)(4,735)(9,750)(5,831)
Other income (expense), net4,974 (835)6,453 (1,638)
Total other expense, net(14,699)(6,407)(18,884)(8,306)
Loss before provision for income taxes(36,684)(22,890)(69,398)(49,991)
Provision for income taxes638 417 933 746 
Net loss$(37,322)$(23,307)$(70,331)$(50,737)
Cumulative dividends attributable to Series A Preferred Stock(73)(877)(416)(1,559)
Net loss attributable to SoundHound common shareholders$(37,395)$(24,184)$(70,747)$(52,296)
Other comprehensive income:
Unrealized gains on investments(30)29 6 — 
Comprehensive loss$(37,425)$(24,155)$(70,741)$(52,296)
Net loss per share:
Basic and diluted$(0.11)$(0.11)$(0.23)$(0.25)
Weighted-average common shares outstanding:
Basic and diluted331,830,608 220,772,111 309,213,583 212,970,561 


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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
20242023
Cash flows used in operating activities:
Net loss$(70,331)$(50,737)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization2,750 1,411 
Stock-based compensation14,232 13,947 
Loss on change in fair value of ELOC program— 1,901 
Amortization of debt issuance cost1,524 1,607 
Non-cash lease amortization1,445 1,714 
Foreign currency gain/loss from remeasurement(70)— 
Change in fair value of contingent acquisition liabilities3,080 — 
Loss on early extinguishment of debt15,587 837 
Deferred income taxes(368)— 
Other, net(891)82 
Changes in operating assets and liabilities:
Accounts receivable, net211 (177)
Other current assets(1,426)(634)
Contract assets(2,267)(2,080)
Other non-current assets(842)363 
Accounts payable1,941 (903)
Accrued liabilities(625)5,295 
Operating lease liabilities(1,720)(1,910)
Deferred revenue(2,523)(4,625)
Other non-current liabilities(147)(292)
Net cash used in operating activities(40,440)(34,201)
Cash flows used in investing activities:
Purchases of property and equipment(335)(293)
Payment related to acquisitions, net of cash acquired(4,453)— 
Net cash used in investing activities(4,788)(293)
Cash flows provided by financing activities:
Proceeds from the issuance of Series A Preferred Stock, net of issuance costs— 24,942 
Proceeds from sales of Class A common stock under the ELOC program, net of issuance costs— 71,455 
Proceeds from sales of Class A common stock under the Sales Agreement and Equity Distribution Agreement 237,639 — 
Proceeds from exercise of stock options and employee stock purchase plan10,628 8,177 
Payment of financing costs associated with the Sales Agreement and Equity Distribution Agreement (5,639)— 
Proceeds from the issuance of long-term debt, net of issuance costs— 85,087 
Payments on notes payable(105,540)(35,029)
Payments on finance leases(58)(74)
Net cash provided by financing activities137,030 154,558 
Effects of exchange rate changes on cash130 — 
Net change in cash, cash equivalents, and restricted cash equivalents91,932 120,064 
Cash, cash equivalents, and restricted cash equivalents, beginning of period109,035 9,475 
Cash, cash equivalents, and restricted cash equivalents, end of period$200,967 $129,539 

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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – Continued
(In thousands)
(Unaudited)

Reconciliation to amounts on the condensed consolidated balance sheets:
Cash and cash equivalents$200,156 $115,764 
Non-current portion of restricted cash equivalents811 13,775 
Total cash, cash equivalents, and restricted cash equivalents shown in the condensed consolidated statements of cash flows
$200,967 $129,539 
Supplemental disclosures of cash flow information:
Cash paid for interest$3,541 $4,344 
Cash paid for income taxes$1,274 $1,098 
Noncash investing and financing activities:
Conversion of Series A Preferred Stock to Class A common stock$14,187 $— 
Issuance of Class A Common Stock to settle commitment shares related to the ELOC program$— $915 
Deferred offering costs reclassified to additional paid-in capital $147 $802 
Unpaid financing costs in connection with the Equity Distribution Agreement $522 $— 
Non-cash debt discount$— $4,136 
Property and equipment acquired under accrued liabilities$92 $— 
Fair value of Class A common stock and deferred equity consideration issued for SYNQ3 acquisition$9,687 $— 
Fair value of contingent earnout consideration under SYNQ3 acquisition$1,676 $— 
Fair value of contingent holdback consideration under SYNQ3 acquisition$427 $— 
Fair value of deferred cash consideration under other acquisition$195 $— 
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