SOUNDHOUND AI, INC.: Costs associated with exit or disposal activities, financial statements, and exhibits (Form 8-K)

Item 2.05 Costs associated with exit or disposal activities

on me January 5, 2023And SoundHound AI, Inc. (“SoundHound, “the Company”, “we”, “us” or “our”) have announced a restructuring plan (the “Plan”) aimed at reducing operating costs, improving operating margins, improving cash flows and accelerating the Company’s path to profitability. The plan includes reducing the company’s current workforce by 40% and identifying reductions in office space in certain markets. Decisions to terminate employees are subject to local law and advisory requirements in some countries, as well as the company’s business needs.

The company estimates that it will bear approx $4.5 million to $5.5 million With respect to Plan related fees, most of which are expected to be incurred in the first quarter of 2023. These fees mainly consist of $4.4 million to $5.2 million in fees related to severance payments, employee benefits, and stock-based compensation; And $0.1 million to
$0.3 million In exit fees associated with office space reductions. Of the total amount of fees that the Company estimates it will incur in connection with the Plan, the Company expects approx $2.0 million to
$3.0 million You will be in cash expenses.

Estimates of the fees and expenses that the Company expects to incur in connection with the Plan and their timing are subject to a number of assumptions, including the requirements of local law in various jurisdictions, and actual amounts may differ materially from the estimates.

Forward-looking statements

This current report on Form 8-K contains forward-looking statements, including, without limitation, statements regarding the timing of plan completion and expected costs and fees of the plan. Words like “expect,” “anticipate,” “goals,” “projects,” “intend,” “plan,” “believe,” “estimates,” “seek,” “assume,” “may,” “should,” “could,” “will,” “expect,” “predict,” “predict,” “objectives,” “commitments,” and various such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are based on the Company’s current plans and assumptions beliefs and expectations.Forward-looking statements are subject to the occurrence of various events beyond the control of the Company.Actual results and the timing of events may differ materially from those contemplated in such forward-looking statements due to many factors involving significant known and unknown risks and uncertainties.These risks and uncertainties include, from Among other things, the risk that restructuring costs and fees may be greater than anticipated; the risk that the Company’s restructuring effort may adversely affect the Company’s internal programs and the Company’s ability to recruit and retain skilled and motivated employees, and may distract employees and management; the risk that the restructuring effort The structure of the company may adversely affect the company’s business operations, its reputation with or its ability to serve clients; the risk that the company’s restructuring efforts may not achieve the intended benefits to the extent or as quickly as expected; and other risks and uncertainties included in the reports on Forms 10-K, 10-Q, and 8-K and in other filings the Company files with Securities and Exchange Commission From time to time, available at www.sec.gov. Forward-looking statements should be viewed in light of these risks and uncertainties. Investors and others are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements made herein speak only as of the date hereof. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Item 9.01.  Financial Statement and Exhibits.

Exhibit Number       Description
104                  Cover Page Interactive Data File (formatted as inline XBRL)


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