EX-99.2 3 soun-20250227ex992financia.htm EX-99.2 Document

SOUNDHOUND AI, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
December 31,
2024		December 31,
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$198,240 $95,260 
Accounts receivable, net of allowances of $726 and $203 as of December 31, 2024 and 2023, respectively
23,159 4,050 
Contract assets and unbilled revenue, net26,645 11,780 
Other current assets7,476 2,452 
Total current assets255,520 113,542 
Restricted cash equivalents, non-current676 13,775 
Right-of-use assets4,692 5,210 
Property and equipment, net1,239 1,515 
Goodwill 101,704 — 
Intangible assets, net174,943 — 
Deferred tax asset4 11 
Contract assets and unbilled revenue, non-current, net12,879 16,492 
Other non-current assets2,296 577 
Total assets$553,953 $151,122 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable$5,559 $1,653 
Accrued liabilities26,291 13,884 
Operating lease liabilities1,898 2,637 
Finance lease liabilities49 121 
Income tax liability2,750 1,618 
Deferred revenue23,876 4,310 
Other current liabilities 7,319 — 
Total current liabilities67,742 24,223 
Operating lease liabilities, net of current portion2,403 3,089 
Deferred revenue, net of current portion6,862 4,910 
Long-term debt— 84,312 
Contingent acquisition liabilities286,898 — 
Income tax liability, net of current portion 3,075 2,453 
Other non-current liabilities4,320 3,967 
Total liabilities371,300 122,954 
Commitments and contingencies
Stockholders’ equity (deficit):
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 $— and $16,227 as of December 31, 2024 and December 31, 2023, respectively
— 14,187 
Class A Common Stock, $0.0001 par value; 455,000,000 shares authorized; 361,096,457 and 216,943,349 shares issued and outstanding as of December 31, 2024 and 2023, respectively
35 22 
Class B Common Stock, $0.0001 par value; 44,000,000 shares authorized; 32,535,408 and 37,485,408 shares issued and outstanding as of December 31, 2024 and 2023, respectively
3 4 
Additional paid-in capital1,125,470 606,135 
Accumulated deficit(943,060)(592,379)
Accumulated other comprehensive income205 199 
Total stockholders’ equity (deficit)182,653 28,168 
Total liabilities and stockholders’ equity (deficit)$553,953 $151,122 


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SOUNDHOUND AI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended December 31,
20242023
Revenues$34,543 $17,147 
Operating expenses:
Cost of revenues20,759 3,911 
Sales and marketing9,566 4,469 
Research and development20,394 12,713 
General and administrative16,437 7,641 
Change in fair value of contingent acquisition liabilities220,946 — 
Amortization of intangible assets3,513 — 
Restructuring— 806 
Total operating expenses291,615 29,540 
Operating loss(257,072)(12,393)
Other expense, net:
Loss on early extinguishment of debt(42)— 
Interest expense(1,309)(5,460)
Other income (expense), net135 1,457 
Total other expense, net(1,216)(4,003)
Loss before provision for income taxes(258,288)(16,396)
Provision for income taxes311 1,607 
Net loss$(258,599)$(18,003)
Cumulative dividends attributable to Series A Preferred Stock— (568)
Net loss attributable to SoundHound common shareholders$(258,599)$(18,571)
Other comprehensive income:
Unrealized gains (losses) on investments(57)2 
Comprehensive loss$(258,656)$(18,569)
Net loss per share:
Basic and diluted$(0.69)$(0.07)
Weighted-average common shares outstanding:
Basic and diluted375,102,329 248,250,552 


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SOUNDHOUND AI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
Year Ended
December 31,
202420232022
(Unaudited)
Revenues$84,693 $45,873 $31,129 
Operating expenses:
Cost of revenues43,309 11,307 9,599 
Sales and marketing29,126 18,893 20,367 
Research and development70,555 51,439 76,392 
General and administrative53,270 28,285 30,443 
Change in fair value of contingent acquisition liabilities222,670 — — 
Amortization of intangible assets7,116 — — 
Restructuring— 4,557 — 
Total operating expenses426,046 114,481 136,801 
Loss from operations(341,353)(68,608)(105,672)
Other expense, net:
Loss on early extinguishment of debt(15,629)(837)— 
Interest expense(12,168)(16,733)(6,893)
Other income (expense), net9,222 1,155 (1,259)
Total other expense, net(18,575)(16,415)(8,152)
Loss before provision for income taxes(359,928)(85,023)(113,824)
Provision for income taxes(9,247)3,914 2,889 
Net loss(350,681)(88,937)(116,713)
Cumulative dividends attributable to Series A Preferred Stock(416)(2,774)— 
Net loss attributable to SoundHound common shareholders(351,097)(91,711)(116,713)
Other comprehensive loss:
Unrealized gains on investments6 199 — 
Comprehensive loss$(350,675)$(88,738)$(116,713)
Net loss per share:
Basic and diluted$(1.04)$(0.40)$(0.74)
Weighted-average common shares outstanding:
Basic and diluted338,462,574229,264,904157,317,695
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SOUNDHOUND AI, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended
December 31,
202420232022
(Unaudited)
Cash flows from operating activities:
Net loss$(350,681)$(88,937)$(116,713)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization16,054 2,313 4,037 
Stock-based compensation33,145 27,931 28,792 
Loss on change in fair value of ELOC program— 1,901 1,075 
Change in fair value of derivative and warrant liability— — 606 
Amortization of debt issuance cost1,621 5,400 2,287 
Non-cash lease amortization2,613 3,346 3,189 
Loss on early extinguishment of debt15,629 837 — 
Foreign currency gain/loss from remeasurement(24)143 — 
Change in fair value of contingent acquisition liabilities222,670 — — 
Deferred income taxes(12,183)30 2,127 
Other, net(580)93 — 
Changes in operating assets and liabilities:
Accounts receivable, net(10,264)(627)(1,354)
Prepaid expenses— 1,590 (1,238)
Other current assets(3,131)(821)299 
Contract assets(7,304)(19,578)(8,658)
Other non-current assets(196)671 (274)
Accounts payable(6,401)(1,162)302 
Accrued liabilities611 4,266 116 
Other current liabilities(642)— — 
Operating lease liabilities(3,214)(3,657)(3,912)
Deferred revenue(6,186)(4,135)(7,646)
Other non-current liabilities(415)2,131 2,946 
Net cash used in operating activities(108,878)(68,265)(94,019)
Cash flows from investing activities:
Purchases of property and equipment(640)(392)(1,329)
Payment related to acquisitions, net of cash acquired(11,732)— — 
Net cash used in investing activities(12,372)(392)(1,329)
Cash flows from 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— 71,615 — 
Proceeds from sales of Class A common stock under the Sales Agreement, Equity Distribution Agreement and Execute Equity Distribution Agreement407,270 12,412 — 
Proceeds from exercise of stock options and employee stock purchase plan29,685 — — 
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SOUNDHOUND AI, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS – Continued
(In thousands)
Year Ended
December 31,
202420232022
(Unaudited)
Proceeds from warrants exercised23 — — 
Payment of financing costs associated with the Sales Agreement, Equity Distribution Agreement and Execute Equity Distribution Agreement(10,357)— — 
Proceeds from the issuance of debt, net of issuance costs— 85,087 — 
Proceeds from the issuance of common stock— 9,369 4,160 
Proceeds from Business Combination and PIPE, net of transaction costs— — 90,689 
Payments on notes payable(215,373)(35,029)(11,545)
Payment to settle contingent holdback liabilities from SYNQ3 acquisition(217)— — 
Payments on finance leases(125)(159)(1,303)
Net cash provided by financing activities210,906 168,237 82,001 
Effects of exchange rate changes on cash225 (20)— 
Net change in cash, cash equivalents, and restricted cash equivalents89,881 99,560 (13,347)
Cash, cash equivalents, and restricted cash equivalents, beginning of year109,035 9,475 22,822 
Cash, cash equivalents, and restricted cash equivalents, end of year$198,916 $109,015 $9,475 
Reconciliation to amounts on the consolidated balance sheets:
Cash and cash equivalents$198,240 $95,260 $9,245 
Current portion of restricted cash equivalents— — — 
Non-current portion of restricted cash equivalents676 13,775 230 
Total cash, cash equivalents, and restricted cash equivalents shown in the consolidated statements of cash flows
$198,916 $109,035 $9,475 

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SOUNDHOUND AI, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS – Continued
(In thousands)
Year Ended
December 31,
202420232022
(Unaudited)
Supplemental disclosures of cash flow information:
Cash paid for interest$6,337 $11,984 $4,364 
Cash paid for income taxes$2,717 $2,356 $1,044 
Noncash investing and financing activities:
Conversion of Series A Preferred Stock to Class A common stock$14,187 $10,755 $— 
Debt discount through issuance of common stock warrants$— $4,136 $— 
Issuance of Class A Common Stock to settle commitment shares related to the ELOC program $— $915 $— 
Issuance of Class A Common Stock to settle obligations under Amelia Debt$11,817 $— $— 
Issuance of Class A Common Stock to settle contingent holdback consideration of SYNQ3 acquisition $189 $— $— 
Conversion of redeemable convertible preferred stock to common stock pursuant to Business Combination    $— $— $279,503 
Conversion of convertible note into common stock pursuant to Business Combination    $— $— $20,239 
Operating lease liabilities arising from obtaining right-of-use assets$1,559 $— $650 
Deferred offering costs reclassified to additional paid-in capital $220 $— $— 
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 and Amelia acquisitions$286,898 $— $— 
Fair value of contingent holdback consideration under SYNQ3 acquisition$570 $— $— 
Fair value of deferred cash consideration under other acquisition$195 $— $— 

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