Form 4: SoundHound AI CEO Keyvan Mohajer Sells Shares to Cover Tax Obligations and Under 10b5-1 Plan
SEC Form 4
SoundHound AI CEO Keyvan Mohajer sold shares of Class A Common Stock on September 20 and September 23, 2024, to cover tax obligations and under a pre-arranged 10b5-1 trading plan.
Summary
- Keyvan Mohajer, CEO of SoundHound AI, Inc., reported the sale of Class A Common Stock on September 20 and September 23, 2024.
- On September 20, 2024, Mohajer sold 90,641 shares at a price of $4.8795 per share.
- This sale was to satisfy tax withholding obligations related to the vesting of restricted stock units granted on July 20, 2022, September 7, 2022, August 3, 2023 and August 1, 2024.
- On September 23, 2024, Mohajer sold 63,544 shares at a weighted-average price of $4.9162, with prices ranging from $4.87 to $5.02.
- This transaction was executed under a Rule 10b5-1 trading plan adopted in March 2024.
- Following these transactions, Mohajer beneficially owns 2,299,148 shares of Class A Common Stock.
Sentiment
Score: 6
Explanation: The document reflects routine transactions related to executive compensation and pre-planned stock sales. It doesn't indicate any significant positive or negative developments for the company.
Positives
- The CEO's sales to cover tax obligations are a normal part of executive compensation.
- The use of a 10b5-1 trading plan suggests a pre-planned and transparent approach to stock sales.
Industry Context
Executive stock sales are a common occurrence in publicly traded companies, often related to compensation and diversification strategies. The use of 10b5-1 plans is a standard practice to avoid accusations of insider trading.
Stakeholder Impact
- The stock sales could have a minor impact on shareholders due to the increased supply of shares in the market.
- The transactions do not directly impact employees, customers, suppliers, or creditors.
Key Dates
| Date | Description |
|---|---|
| May 5, 2022 | Limited Power of Attorney granted to Warren Heit and Nitesh Sharan for Section 16(a) reporting. |
| July 20, 2022 | Date of one of the restricted stock unit grants that led to the tax obligation. |
| September 7, 2022 | Date of one of the restricted stock unit grants that led to the tax obligation. |
| August 3, 2023 | Date of one of the restricted stock unit grants that led to the tax obligation. |
| August 1, 2024 | Date of one of the restricted stock unit grants that led to the tax obligation. |
| March 2024 | Adoption of Rule 10b5-1 trading plan by Keyvan Mohajer. |
| September 20, 2024 | Sale of 90,641 shares of Class A Common Stock at $4.8795 per share. |
| September 23, 2024 | Sale of 63,544 shares of Class A Common Stock at a weighted-average price of $4.9162. |
| September 24, 2024 | Date of Form 4 filing. |
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