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Investing.com -- Shares of SoundHound AI (NASDAQ: NASDAQ:SOUN) fell by 9% following the company’s announcement that it will delay filing its Form 10-K. The company has cited the complexity of accounting for its recent acquisitions as the primary reason for the holdup.
SoundHound AI completed the acquisition of Synq3, Inc. on January 3, 2024, and Amelia Holdings, Inc. on August 7, 2024. The integration of these businesses has necessitated additional time to prepare the financial statements and accompanying notes for the annual report of the fiscal year ended December 31, 2024. SoundHound AI has indicated that the delay is due to the unreasonable effort or expense that would be required to file the Form 10-K within the standard timeframe.
In addition to the complexity introduced by the acquisitions, SoundHound AI has acknowledged the continuation of material weaknesses in its internal control over financial reporting as of December 31, 2024. The company has expressed its intention to file the Form 10-K by March 18, 2025, which is within the fifteen-day extension period allowed under Rule 12b-25.
The delayed filing raises concerns among investors, as it suggests potential issues with the company’s financial reporting processes. Despite this setback, SoundHound AI did release a press release on February 27, 2025, detailing its financial results for the fourth quarter and full year ended December 31, 2024, which also included comparisons to the same periods in the previous fiscal year.
Investors are closely monitoring the situation, as the delay and the ongoing internal control weaknesses could have implications for the company’s financial health and stock performance. The market’s reaction reflects the uncertainty and risk associated with delays in regulatory filings and the integrity of financial reporting.
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