SOUNDHOUND AI, INC.SOUN

SOUNDHOUND AI, INC. Goodwill & Intangibles Disclosure

10-KFiled Mar 2, 20262 min read
GOODWILL AND INTANGIBLE ASSETS
Goodwill
The change in the carrying value of goodwill including the effect of measurement period adjustments for the year ended December 31, 2025, was as follows (in thousands):
Balance as of December 31, 2023$— 
Acquisition of SYNQ3$6,000 
Acquisition of Amelia$95,704 
Balance as of December 31, 2024$101,704 
Acquisition of Interactions21,067 
Measurement period adjustment$(494)
Balance as of December 31, 2025$122,277 

The Company has applied the acquisition method of accounting in accordance with ASC 805 and recognized assets acquired and liabilities assumed of SYNQ3, Amelia, and Interactions at their fair value as of the date of acquisition, with the excess purchase consideration recorded to goodwill. As the Company finalizes the estimation of the fair value of the assets acquired and liabilities assumed, additional adjustments to the amount of goodwill may be necessary. Refer to Note 3 for further information on the measurement period adjustments of Amelia Acquisition.
Intangible Assets
The gross carrying value, accumulated amortization and net carrying value of intangible assets consisted of the following (in thousands):
December 31, 2025
Useful life
(in years)
 Gross Carrying Value  Accumulated Amortization  Net Carrying Value
Developed technology
3.0 - 7.0
$117,640 $24,871 $92,769 
Customer relationships
3.0 - 7.0
101,060 18,422 82,638 
Tradename
2.0 - 5.0
9,270 3,538 5,732 
Conversation data2.51,285 1,029 256 
Total$229,255 $47,860 $181,395 
December 31, 2024
Useful life
(in years)
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Developed technology
3.0 - 7.0
$105,640 $7,696 $97,944 
Customer relationships
3.0 - 7.0
74,360 5,322 69,038 
Tradename
2.0 - 5.0
8,470 1,280 7,190 
Conversation data2.51,285 514 771 
Total$189,755 $14,812 $174,943 
Amortization expense of intangible assets was $33.0 million for the year ended December 31, 2025. This expense was recorded as $17.2 million within cost of revenues for the year ended December 31, 2025. Amortization expense of
intangible assets was $14.8 million for the year ended December 31, 2024. This expense was recorded as $7.7 million within cost of revenues for the year ended December 31, 2024. There was no amortization expense during the year ended December 31, 2023.
Future amortization expense of intangible assets held as of December 31, 2025, is as follows (in thousands):
Year ending December 31,
2026$37,512 
202734,930 
202833,138 
202932,501 
Thereafter43,314 
Total$181,395 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 11, 2025

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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