SoundHound AI Inc

Item 1A. Risk Factors.

Our operations and financial results are subject to various risks and uncertainties, including those described below and those described in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, as updated in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our stock. Other than as described below, there have been no material changes from these risk factors during the quarter ended March 31June 30, 2025.

Although SoundHound is not directChanges to U.S. tax laws could adversely impacted by the tariffs as a software-as-a-service (SaaS) provider, SoundHounds business or stock price may b our results of operations and cash flow.

We adversely affre subjected by the imposition of duties and tariff to U.S. tax laws and other trade barriers and retaliatory countermeasures on our customers imregulations, which are complemented by the U.S. x and other governments.

Recently there have been significant cften changing. Changes to U.S. trade policies, sanctions, legisin tax rules and regulation, treaties and tariffs, including, but not limited to, trade policies, or a failure to comply with any new tax laws and tariffsregulations, may adversely affecting products from outside our results of the U.S. For example, in earoperations and cash flow. On July April4, 2025, the current U.S. presidential administration announced significant newUnited States enacted tariffs on foreign imports into the U.S. from about 90 natx reform legislations. Alth through SoundHound is not directly impactthe One Big Beautiful Bill Act. Included byin the tariffs as a softwis legislation are-as-a-service (SaaS) provider, provisions that allow for the extent and durationimmediate expensing of increased tariffs and thedomestic United States resulting impact on general economic conditions and on our business partners are unearch and development expenses, immediate expensing of certain and decapital expend on various factors, such as negotiations betweenitures, and other changes to the U.S. and affected countries, the responsestaxation of other countries or regions, and exempprofits derived from foreign operations or exclusions. We do not expect that may be granted. Any new or additional tariffs the enactment of the legislation goods importewill lead to the U.S. could also increase the cost oa significant change of our business partners and reduce their margins, which may eventually impact the demtax expense during the third and of four products and serviceth quarters or ourf 2025, pricing strategy, depending onmarily due to our businetaxable loss partners' ability to mitigate tariffs through alternosition and the full valuative sourcing or manufacturing or allocateon allowance on deferred tariff costs to counterparties. Additionally, U.S. policy changes and uncertainty about such changes could increase market volatility and currency exchange rate fluctuations. As a result of these dynamics, we cannot predictx assets in the US jurisdiction. The Company continues to evaluate the impact to our business or stock price that may be caused by any future changes to the U.S.s or other countries trading relatihe new legislation will have on our annual or interim conships or the impact of new laws or regulations adopted by the U.S. or other countries.olidated financial statements.