What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-05-17 compared with 2021-11-15 · 143 added, 98 removed, 5 unchanged (98% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

to the “Company,” “Archimedes Tech SPAC Partners Co.” “our,” “us” or “we”

refer to Archimedes Tech SPAC Partners Co.

The following discussion and analysis of the Company’s financial condition and results

of operations should be read in conjunction with the unaudited condensed financial statements and the notes thereto contained elsewhere

in this report.

Certain information contained in the discussion and analysis set forth below includes forward-looking statements that

involve risks and uncertainties.

Note Regarding Forward-Looking Statements

Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as

amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

We have based these forward-looking

statements on our current expectations and projections about future events.

These forward-looking statements are subject to known and

unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements

to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking

In some cases, you can identify forward-looking statements by terminology such as “may,” “should,”

“could,” “would,” “expect,” “plan,” “anticipate,” “believe,”

“estimate,” “continue,” or the negative of such terms or other similar expressions.

Factors that might cause

or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission

(“SEC”) filings.

were formed on September 15, 2020 for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase,

recapitalization, reorganization or other similar business combination with one or more target businesses.

Our efforts to identify a

prospective target business will not be limited to a particular industry or geographic region, though we intend to focus our search on

a business operating in the technology industry.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

References to the “Company,” “Archimedes

Tech SPAC Partners Co.” “our,” “us” or “we” refer to Archimedes Tech SPAC Partners Co.

The following

discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the unaudited

condensed financial statements and the notes thereto contained elsewhere in this report.

Certain information contained in the discussion

and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking

statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act

of 1934, as amended (the “Exchange Act”).

We have based these forward-looking statements on our current expectations and projections

about future events.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that

may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels

of activity, performance or achievements expressed or implied by such forward-looking statements.

In some cases, you can identify forward-looking

statements by terminology such as “may,” “should,” “could,” “would,” “expect,”

“plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of

such terms or other similar expressions.

Factors that might cause or contribute to such a discrepancy include, but are not limited to,

those described in our other Securities and Exchange Commission (“SEC”) filings.

We were formed on September 15,

2020 for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or

other similar business combination with one or more target businesses (the “Business Combination”).

Our efforts to identify

a prospective target business will not be limited to a particular industry or geographic region, though we intend to focus our search

on a business operating in the technology industry.

We intend to utilize cash derived from the proceeds of this offering, our securities,

debt or a combination of cash, securities and debt, in effecting a Business Combination.

activity through September 30, 2021 relates to our formation, IPO, which was consummated on March 15, 2021, and search for a prospective

initial business combination target.

of Operations

of September 30, 2021, we have not commenced any operations.

All activity for the period from September 15, 2020 (inception) through

September 30, 2021 relates to our formation, IPO and, after our IPO, identifying a target company for a Business Combination.

not generate any operating revenues until after the completion of our initial Business Combination, at the earliest.

We will generate

non-operating income in the form of interest income from the proceeds derived from the IPO and placed in the Trust Account.

the three months ended September 30, 2021, we had a net loss of $191,075, which was comprised of operating costs of $229,484, interest

income of $3,352 from marketable securities held in our Trust Account, and unrealized gain on change in fair value of warrants of $35,057.

the nine months ended September 30, 2021, we had a net loss of $345,648, which was comprised of operating costs of $461,826, interest

income of $7,230 from marketable securities held in our Trust Account, and unrealized gain on change in fair value of warrants of $108,948.

the period from September 15, 2020 (inception) through September 30, 2020, we had a net loss of $716, which was comprised of operating

costs of $716.

and Capital Resources

March 15, 2021, we consummated the IPO of 12,000,000 Public Units at a price of $10.00 per Public Unit, generating gross proceeds of

$120,000,000.

Simultaneously with the closing of the IPO, we consummated the sale of 390,000 Private Units at a price of $10.00 per Private

Unit in a private placement to the Sponsor and EarlyBirdCapital, generating gross proceeds of $3,900,000.

March 19, 2021, the underwriters partially exercised the over-allotment option to purchase 1,300,000 Public Units, at a purchase price

of $10.00 per Public Unit, generating gross proceeds of $13,000,000.

In connection with the underwriters’ exercise of their

over-allotment option, we also consummated the sale of an additional 26,000 Private Units at $10.00 per Private Unit to the Sponsor and

EarlyBirdCapital, generating gross proceeds of $260,000.

the closing of the IPO on March 15, 2021 and the underwriters’ partial exercise of over-allotment option on March 19, 2021, $133,000,000

from the net proceeds of the sale of the Public Units in the IPO and the sale of the Private Units was placed in the Trust Account and

the remaining net proceeds was deposited in our operating bank account.

As of September 30, 2021, we had $628,652 of cash

held outside of the Trust Account for our working capital needs.

to the completion of the IPO, our liquidity needs had been satisfied through a payment from the Sponsor of $25,000 for the founder shares,

and the loan under an unsecured promissory note from the Sponsor of $125,000.

All activity through

March 31, 2022 relates to our formation, IPO, which was consummated on March 15, 2021, the search for a prospective initial Business Combination

target, and efforts toward consummating the initial Business Combination.

On November 15, 2021,

we entered into a definitive merger agreement with SoundHound, a voice artificial intelligence company, pursuant to which the two companies

agreed to consummate a Business Combination (the “Merger Agreement”).

The total consideration to be paid to SoundHound is

$2,000,000 in our equity, with outstanding SoundHound stock options and warrants included on a net exercise basis.

April 26, 2022, we consummated our Business Combination with SoundHound pursuant to the Merger Agreement.

The aggregate merger consideration

we paid to SoundHound security holders in connection with the Business Combination was an amount equal to $2,000,000,000, with outstanding

SoundHound stock options and warrants assumed by us included on a net exercise basis.

As a result of the Business Combination, we own

100% of the outstanding common stock of SoundHound and we changed our name from “Archimedes Tech SPAC Partners Co.” to “SoundHound

AI, Inc” (See Note 9).

Results of Operations

As of March 31, 2022,

we have not commenced any operations.

All activity for the period from September 15, 2020 (inception) through March 31, 2022 relates to

our formation, IPO and, after our IPO, identifying a target company for a Business Combination.

We will not generate any operating revenues

until after the completion of our initial Business Combination, at the earliest.

We will generate non-operating income in the form of

interest income from the proceeds derived from the IPO and placed in the Trust Account.

For the three months

ended March 31, 2022, we had a net loss of $385,450, which was comprised of operating costs of $490,053, interest income of $11,857 from

marketable securities held in our Trust Account, and unrealized gain on change in fair value of warrants of $92,746.

For the three months

ended March 31, 2021, we had a net loss of $84,033, which was comprised of operating costs of $81,441, interest income of $525 from marketable

securities held in our Trust Account, and unrealized loss on change in fair value of warrants of $3,117.

Liquidity and Capital

On March 15, 2021, we

consummated the IPO of 12,000,000 Public Units at a price of $10.00 per Public Unit, generating gross proceeds of $120,000,000.

Simultaneously

with the closing of the IPO, we consummated the sale of 390,000 Private Units at a price of $10.00 per Private Unit in a private placement

to the Sponsor and EarlyBirdCapital, generating gross proceeds of $3,900,000.

On March 19, 2021, the

underwriters partially exercised the over-allotment option to purchase 1,300,000 Public Units, at a purchase price of $10.00 per Public

Unit, generating gross proceeds of $13,000,000.

In connection with the underwriters’ exercise of their over-allotment option,

we also consummated the sale of an additional 26,000 Private Units at $10.00 per Private Unit to the Sponsor and EarlyBirdCapital, generating

gross proceeds of $260,000.

Following the closing

of the IPO on March 15, 2021 and the underwriters’ partial exercise of over-allotment option on March 19, 2021, $133,000,000 from

the net proceeds of the sale of the Public Units in the IPO and the sale of the Private Units was placed in the Trust Account and the

remaining net proceeds was deposited in our operating bank account.

As of March 31, 2022,

we had $18,129 of cash held outside of the Trust Account for our working capital needs.

On April 21, 2022, SP agreed to loan us $167,955 through the SP Promissory

The SP Promissory Note is non-interest bearing and payable in cash upon the closing of our Business Combination.

In the event we

fail to complete a Business Combination prior to the deadline set forth in our governing document, no payment will be due under the SP

Promissory Note and the principal balance of the SP Promissory Note will be forgiven (See Note 9).

On April 26, 2022, in connection

with our Business Combination, we received approximately $5,356,628 in Trust Proceeds and $113,000,000 in PIPE Proceeds.

The Trust Proceeds

and PIPE Proceeds were used for the payment of expenses incurred by the Company and SoundHound in connection with the Business Combination

and the remaining proceeds will be used for general corporate purposes of the Company following the Business Combination (See Note 9).

Prior to the completion

of the IPO, our liquidity needs had been satisfied through a payment from the Sponsor of $25,000 for the founder shares, and the loan

under an unsecured promissory note from the Sponsor of $125,000.

We fully paid the note to the Sponsor on March 15, 2021.

Subsequent to the consummation of the IPO and Private Placement, our liquidity needs have been satisfied through the proceeds from the

consummation of the Private Placement not held in the Trust Account.

addition, in order to finance transaction costs in connection with a Business Combination, our Sponsor, initial stockholders, officers,

directors and their affiliates may, but are not obligated to, provide us Working Capital Loans.

To date, there were no amounts outstanding

under any Working Capital Loans.

We anticipate that the $628,652 outside of the Trust account as of September

30, 2021 will not be sufficient to allow us to operate for at least the next 12 months, assuming that a Business Combination is not consummated

during that time.

Moreover, we may need to obtain additional financing to consummate our Initial Business Combination but there is no

assurance that new financing will be available to us on commercially acceptable terms.

Furthermore, if we are not able to consummate a

Business Combination by September 15, 2022, it will trigger our automatic winding up, liquidation and dissolution.

These conditions raise

substantial doubt about our ability to continue as a going concern.

Accounting Policies and Estimates

preparation of the unaudited condensed financial statements in conformity with US GAAP requires management to make estimates and assumptions

that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited

condensed financial statements and the reported amounts of expenses during the reporting period.

Actual results could differ from those

Subsequent to

the consummation of the IPO and Private Placement, our liquidity needs have been satisfied through the proceeds from the consummation

of the Private Placement not held in the Trust Account.

Subsequent to the consummation of the Business

Combination on April 26, 2022, our liquidity needs have been satisfied through the remaining Trust Proceeds and PIPE Proceeds after payment

of expenses in connection with the Business Combination (See Note 9).

In addition, in order

to finance transaction costs in connection with a Business Combination, our Sponsor, initial stockholders, officers, directors and their

affiliates may, but are not obligated to, provide us Working Capital Loans.

To date, there were no amounts outstanding under any Working

Capital Loans.

We anticipate that the

$18,129 outside of the Trust account as of March 31, 2022, combined with the net Trust Proceeds and PIPE Proceeds that we received upon

the consummation of our Business Combination on April 26, 2022, will be sufficient to allow us to operate for at least the next 12 months.

Critical Accounting

Policies and Estimates

The preparation of the

unaudited condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the

reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed

financial statements and the reported amounts of expenses during the reporting period.

Actual results could differ from those estimates.

We have identified the following as our critical accounting policies:

Stock Subject to Possible Redemption

Company accounts for its common stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification

(“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Common stock subject to mandatory redemption (if

any) is classified as a liability instrument and is measured at fair value.

Conditionally redeemable common stock (including common stock

that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain

events not solely within the Company’s control) is classified as temporary equity.

At all other times, common stock is classified

as stockholders’ equity.

The Company’s common stock feature certain redemption rights that is considered to be outside of

the Company’s control and subject to the occurrence of uncertain future events.

Accordingly, common stock subject to possible redemption

is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s balance

Loss Per Common Share

loss per common share is computed by dividing net loss by the weighted average number of common stock outstanding for each of the periods.

The calculation of diluted loss per common share does not consider the effect of the warrants issued in connection with the (i) IPO,

(ii) exercise of overallotment and (iii) Private Placement since the exercise price of the warrants is higher than the market price.

The warrants are exercisable to purchase 6,858,000 shares of common stock in the aggregate.

Common Stock Subject

to Possible Redemption

We account for its common

stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480

“Distinguishing Liabilities from Equity.” Common stock subject to mandatory redemption (if any) is classified as a liability

instrument and is measured at fair value.

Conditionally redeemable common stock (including common stock that feature redemption rights

that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our

control) is classified as temporary equity.

At all other times, common stock is classified as stockholders’ equity.

stock feature certain redemption rights that is considered to be outside of our control and subject to the occurrence of uncertain future

Accordingly, common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the

stockholders’ equity section of our balance sheet.

Net Income (Loss)

Per Common Share

We comply with accounting

and disclosure requirements of FASB ASC 260, Earnings Per Share.

The statements of operations include a presentation of income (loss)

per redeemable Public Share and income (loss) per founder non-redeemable share following the two-class method of income (loss) per share.

In order to determine the net income (loss) attributable to both the public redeemable shares and founder non-redeemable shares, we first

considered the total income (loss) allocable to both sets of shares.

This is calculated using the total net income (loss) less any dividends

For purposes of calculating net income (loss) per share, any remeasurement of the accretion to redemption value of the common stock

subject to possible redemption was considered to be dividends paid to the public stockholders.

Subsequent to calculating the total income

(loss) allocable to both sets of shares, we split the amount to be allocated using a ratio of 76.2% for the Public Shares and 23.8% for

the founder non-redeemable shares for the three months ended March 31, 2022, and a ratio of 40.8% for the Public Shares and 59.2% for

the founder non-redeemable shares for the three months ended March 31, 2021, respectively, reflective

of the respective participation rights.

Off-Balance Sheet Arrangements

of September 30, 2021, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

As of March 31, 2022,

we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis