Form 4: SoundHound AI CFO Reports Routine Stock Transactions for Tax Obligations

SoundHound AI's Chief Financial Officer, Nitesh Sharan, reported the vesting of performance stock units and subsequent sales of shares to cover tax withholding obligations, resulting in a net decrease in his direct beneficial ownership.

Summary

• Nitesh Sharan, Chief Financial Officer of SoundHound AI, Inc. (SOUN), acquired 100,000 shares of Class A Common Stock on June 20, 2025, through the vesting of Performance Stock Units (PSUs) originally granted on July 20, 2022.
• On the same date, June 20, 2025, Mr. Sharan sold 48,483 shares of Class A Common Stock at a price of $9.3559 per share to satisfy tax withholding obligations related to the PSU vesting.
• Additionally, Mr. Sharan sold 62,628 shares of Class A Common Stock at $9.3559 per share on June 20, 2025, to cover tax withholding obligations associated with the vesting of Restricted Stock Units (RSUs) granted on various dates including July 20, 2022, September 7, 2022, August 3, 2023, and August 1, 2024.
• Following these transactions, Mr. Sharan's direct beneficial ownership of SoundHound AI Class A Common Stock stands at 1,442,900 shares.
• The net effect of these transactions was a decrease of 11,111 shares in Mr. Sharan's direct beneficial ownership (100,000 acquired 48,483 sold 62,628 sold).

Sentiment

Score: 5

Explanation: The sentiment is neutral as the document reports routine insider transactions related to equity compensation and tax obligations, which are standard occurrences and do not indicate significant positive or negative developments for the company.

Positives

• The vesting of 100,000 Performance Stock Units (PSUs) indicates that certain pre-defined performance criteria were achieved, which is a positive indicator for the company's operational or financial performance.

Negatives

• The transactions resulted in a net decrease of 11,111 shares in the Chief Financial Officer's direct beneficial ownership, primarily due to sales made to cover tax withholding obligations.

Risks

• No specific new risks are identified or discussed in this Form 4 filing, as it primarily reports routine insider stock transactions related to compensation.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic outlook.

Industry Context

This filing is a routine insider transaction report and does not provide specific insights into broader industry trends or competitive positioning beyond the fact that SoundHound AI, like many technology companies, utilizes equity compensation for its executives.

Stakeholder Impact

• Shareholders: The net decrease in the CFO's direct ownership is minor and is a result of standard tax-related sales, unlikely to significantly impact shareholder perception or company strategy.
• Employees: The vesting of PSUs and RSUs is part of the company's compensation structure, which can positively impact employee retention and motivation.

Key Dates

Keywords

SoundHound AI, SOUN, Form 4, Insider Trading, Stock Ownership, Chief Financial Officer, Nitesh Sharan, Performance Stock Units, Restricted Stock Units, Tax Withholding, Equity Compensation