Form 4: SoundHound AI CPO Sells Shares for Tax Obligations
Insider Transaction Report
SoundHound AI's Chief Product Officer, James Ming Hom, sold 42,119 shares of Class A Common Stock for $16.0016 per share to cover tax withholding obligations related to RSU vesting.
Summary
- James Ming Hom, Chief Product Officer and Director of SoundHound AI, Inc. (SOUN), reported a sale of company stock.
- The transaction involved the disposition of 42,119 shares of Class A Common Stock.
- The shares were sold at a price of $16.0016 per share.
- The total value of the shares sold was approximately $674,000.
- The sale was executed on September 22, 2025.
- The purpose of the sale was to satisfy tax withholding obligations arising from the vesting of restricted stock units (RSUs).
- Following this transaction, James Ming Hom beneficially owns 845,441 shares of Class A Common Stock directly.
Sentiment
Score: 5
Explanation: The transaction is a routine, non-discretionary sale to cover tax obligations related to RSU vesting, which is a neutral event from an investment perspective and does not reflect a change in the executive's confidence in the company.
Positives
- The underlying event, the vesting of restricted stock units, represents earned compensation for the executive, reflecting their continued service and performance.
Negatives
- The transaction resulted in a reduction of James Ming Hom's direct beneficial ownership of SoundHound AI Class A Common Stock by 42,119 shares.
Risks
- No new specific risks to the company's operations or financial health were disclosed in this Form 4 filing.
Future Outlook
Not applicable as this filing reports an individual insider transaction, not company guidance or forward-looking statements regarding business performance.
Management Comments
- The sale reported herein was made to satisfy tax withholding obligations in connection with the vesting of shares of restricted stock units granted to the reporting person on various dates between August 2022 and July 2025.
Industry Context
Insider sales for tax withholding are a common and routine event for executives receiving equity compensation, particularly in technology companies where Restricted Stock Units (RSUs) are a significant part of remuneration. This transaction does not indicate a change in the company's operational performance or strategic direction, but rather a standard financial practice for executives.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| No Change Reported | No changes to corporate governance policies, bylaws, committees, or procedures were reported in this filing. The Power of Attorney document is a standing governance arrangement for SEC filings, not a new change in governance structure. | NA | No direct impact on corporate governance from this specific Form 4 filing. |
Stakeholder Impact
- Minimal impact on shareholders as this is a routine, non-discretionary transaction for tax purposes, not a discretionary sale indicating a change in executive sentiment.
- No direct impact on employees, customers, suppliers, or creditors was indicated by this filing.
Next Steps
- No specific future actions, events, or milestones for the company were mentioned in this filing.
Key Dates
| Date | Description |
|---|---|
| May 4, 2022 | Date of the Limited Power of Attorney granted by James Ming Hom for Section 16(a) reporting. |
| August 4, 2022 | Grant date of restricted stock units, part of the vesting triggering the tax withholding. |
| September 7, 2022 | Grant date of restricted stock units, part of the vesting triggering the tax withholding. |
| August 3, 2023 | Grant date of restricted stock units, part of the vesting triggering the tax withholding. |
| August 1, 2024 | Grant date of restricted stock units, part of the vesting triggering the tax withholding. |
| July 31, 2025 | Grant date of restricted stock units, part of the vesting triggering the tax withholding. |
| September 22, 2025 | Date of the reported transaction (sale of Class A Common Stock). |
| September 24, 2025 | Date the Form 4 was signed by the attorney-in-fact. |
Recommendation
holdThis Form 4 reports a routine, non-discretionary sale of shares by an executive to cover tax withholding obligations upon the vesting of restricted stock units. Such transactions are common and do not typically reflect a change in the executive's outlook on the company's fundamentals or future prospects. Therefore, it does not provide new information that would warrant a change in investment recommendation.
Keywords
SoundHound AI, SOUN, Insider Transaction, Form 4, Stock Sale, Executive Compensation, RSU, Tax Withholding, Chief Product Officer
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