2022 Q4 Form 10-K Financial Statement

#000184085623000019 Filed on March 28, 2023

View on sec.gov

Income Statement

Concept 2022 Q4 2022 2021 Q4
Revenue $9.501M $31.13M $0.00
YoY Change -100.0%
Cost Of Revenue $2.755M $9.599M $1.707M
YoY Change 61.39% 45.77% 1.91%
Gross Profit $6.746M $21.53M $3.640M
YoY Change 85.33% 47.34% 43.53%
Gross Profit Margin 71.0% 69.16%
Selling, General & Admin $13.97M $50.55M $5.964M
YoY Change 134.24% 143.46% 36.73%
% of Gross Profit 207.09% 234.77% 163.85%
Research & Development $21.53M $76.39M $16.52M
YoY Change 30.35% 29.09% 21.59%
% of Gross Profit 319.12% 354.82% 453.74%
Depreciation & Amortization $840.0K $4.000M $1.333M
YoY Change -36.98% -27.3% -10.54%
% of Gross Profit 12.45% 18.58% 36.62%
Operating Expenses $35.50M $126.9M $553.4K
YoY Change 6314.18% 12402.91% -96.92%
Operating Profit -$28.75M -$105.4M $3.087M
YoY Change -1031.52% -875.24% -120.03%
Interest Expense -$1.013M $6.893M -$82.81K
YoY Change 1123.28% 20556.28% -83.73%
% of Operating Profit -2.68%
Other Income/Expense, Net $369.0K -$7.077M -$6.000K
YoY Change -6250.0% 1309.76% -110.53%
Pretax Income -$29.40M -$112.5M -$636.2K
YoY Change 4520.27% 11355.98% -95.99%
Income Tax $1.284M $2.889M -$944.0K
% Of Pretax Income
Net Earnings -$30.68M -$115.4M -$636.2K
YoY Change 4722.08% 11650.21% -96.1%
Net Earnings / Revenue -322.91% -370.63%
Basic Earnings Per Share -$0.73
Diluted Earnings Per Share -$0.15 -$0.73 -$36.44K
COMMON SHARES
Basic Shares Outstanding 157.3M shares
Diluted Shares Outstanding 157.3M shares

Balance Sheet

Concept 2022 Q4 2022 2021 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $9.245M $9.245M $235.3K
YoY Change 3829.03% 3829.03%
Cash & Equivalents $9.200M $9.245M $22.82M
Short-Term Investments
Other Short-Term Assets $859.0K $3.373M $917.0K
YoY Change -6.32% 3339.38%
Inventory
Prepaid Expenses $2.514M $1.276M
Receivables $5.085M $5.085M $2.060M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $17.70M $17.70M $27.47M
YoY Change -35.56% 5210.48%
LONG-TERM ASSETS
Property, Plant & Equipment $11.57M $11.57M $6.155M
YoY Change 87.91% -29.67%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $133.0M
YoY Change
Other Assets $1.656M $1.941M $5.286M
YoY Change -68.67% -63.28%
Total Long-Term Assets $20.55M $20.55M $21.73M
YoY Change -5.45% -84.55%
TOTAL ASSETS
Total Short-Term Assets $17.70M $17.70M $27.47M
Total Long-Term Assets $20.55M $20.55M $21.73M
Total Assets $38.25M $38.25M $49.20M
YoY Change -22.26% -71.31%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.798M $2.798M $3.760M
YoY Change -25.59% -25.59%
Accrued Expenses $7.462M $10.74M $7.298M
YoY Change 2.25% 4234.53%
Deferred Revenue $5.812M $6.042M
YoY Change -3.81%
Short-Term Debt $0.00 $0.00 $1.820K
YoY Change -100.0% -100.0%
Long-Term Debt Due $16.83M $16.83M $61.13M
YoY Change -72.47% -72.47%
Total Short-Term Liabilities $37.50M $37.50M $87.74M
YoY Change -57.26% 7441.43%
LONG-TERM LIABILITIES
Long-Term Debt $18.43M $18.43M $0.00
YoY Change
Other Long-Term Liabilities $4.295M $17.55M $1.336M
YoY Change 221.48% 6991.83%
Total Long-Term Liabilities $4.295M $35.98M $1.336M
YoY Change 221.48%
TOTAL LIABILITIES
Total Short-Term Liabilities $37.50M $37.50M $87.74M
Total Long-Term Liabilities $4.295M $35.98M $1.336M
Total Liabilities $73.48M $73.48M $112.9M
YoY Change -34.94% 14677.96%
SHAREHOLDERS EQUITY
Retained Earnings -$502.1M -$386.7M
YoY Change 29.83%
Common Stock $1.000K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$35.23M -$35.23M -$343.2M
YoY Change
Total Liabilities & Shareholders Equity $38.25M $38.25M $49.20M
YoY Change -22.26% -71.31%

Cashflow Statement

Concept 2022 Q4 2022 2021 Q4
OPERATING ACTIVITIES
Net Income -$30.68M -$115.4M -$636.2K
YoY Change 4722.08% 11650.21% -96.1%
Depreciation, Depletion And Amortization $840.0K $4.000M $1.333M
YoY Change -36.98% -27.3% -10.54%
Cash From Operating Activities -$20.41M -$94.02M -$393.4K
YoY Change 5089.65% 10777.3% -96.33%
INVESTING ACTIVITIES
Capital Expenditures $141.0K $1.329M $43.00K
YoY Change 227.91% -308.96% -91.52%
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change -100.0%
Cash From Investing Activities -$141.0K -$1.329M $0.00
YoY Change -99.0% -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -3.612M $82.00M 0.000
YoY Change -38.85% -100.0%
NET CHANGE
Cash From Operating Activities -20.41M -$94.02M -393.4K
Cash From Investing Activities -141.0K -$1.329M 0.000
Cash From Financing Activities -3.612M $82.00M 0.000
Net Change In Cash -24.17M -$13.35M -393.4K
YoY Change 6043.74% -5772.57% -95.89%
FREE CASH FLOW
Cash From Operating Activities -$20.41M -$94.02M -$393.4K
Capital Expenditures $141.0K $1.329M $43.00K
Free Cash Flow -$20.56M -$95.35M -$436.4K
YoY Change 4610.56% 41653.37% -96.11%

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CY2021 us-gaap Increase Decrease In Accounts Payable
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CY2021 us-gaap Net Cash Provided By Used In Investing Activities
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CY2021 us-gaap Proceeds From Convertible Debt
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CY2021 us-gaap Debt Conversion Converted Instrument Amount1
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<div style="margin-top:12pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Reclassification</span></div><div style="margin-top:12pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain prior period balances have been reclassified to conform to the current year presentation. Such changes include reclassifications or combinations of certain accounts on the consolidated balance sheets. These reclassifications had no effect on previously reported results of operations or accumulated deficit.</span></div>
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CY2021 us-gaap Foreign Currency Cash Flow Hedge Gain Loss Reclassified To Earnings Net
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<div style="margin-top:12pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Use of Estimates</span></div><div style="margin-top:12pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosures in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition, allowance for doubtful accounts, accrued liabilities, derivative and warrant liabilities, calculation of the incremental borrowing rate, financial instruments recorded at fair value on a recurring basis, valuation of deferred tax assets and uncertain tax positions and the fair value of common stock and other assumptions used to measure stock-based compensation expense. The Company bases its estimates on historical experience, the current economic environment, and on assumptions it believes are reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from changes in the economic environment will be reflected in the financial statements in future periods. Actual results could differ materially from those estimates.</span></div>
CY2022Q2 soun Payments Of Reverse Recapitalization Transaction Costs
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CY2022 us-gaap Concentration Risk Credit Risk
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<div style="margin-top:12pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Concentrations of Credit Risk and Other Risks and Uncertainties</span></div><div style="margin-top:12pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to potential significant concentrations of credit risk consist principally of cash and cash equivalents. The Company regularly monitors its credit risk exposure and takes steps to mitigate the likelihood of these exposures resulting in actual loss.</span></div>As of December 31, 2022, accounts receivable balances due from two customers collectively totaled 75% of the Company’s consolidated accounts receivable balance. As of December 31, 2021, accounts receivable balances due from five customers collectively totaled 86% of the Company’s consolidated accounts receivable balance.For the year ended December 31, 2022, the Company had three customers that accounted for 67% of revenue. For the year ended December 31, 2021, the Company had three customers that accounted for 61% of revenue.
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Hosted services, along with non-distinct customization, integration, maintenance and support professional services, allow customers to access the Houndify platform over the contract period without taking possession of the software. The contract terms of hosted services range from one year to twenty years.
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CY2021 us-gaap Revenue From Contract With Customer Including Assessed Tax
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CY2021 us-gaap Revenue From Contract With Customer Including Assessed Tax
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CY2021 us-gaap Revenue From Contract With Customer Including Assessed Tax
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CY2022Q4 us-gaap Revenue Remaining Performance Obligation
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CY2022Q4 us-gaap Revenue Remaining Performance Obligation
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CY2022Q4 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
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CY2022 us-gaap Longterm Purchase Commitment Period
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CY2022Q2 us-gaap Embedded Derivative Fair Value Of Embedded Derivative Liability
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CY2022Q2 us-gaap Preferred Stock Shares Authorized
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CY2022Q2 soun Common Stock And Preferred Stock Shares Authorized
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CY2022Q2 us-gaap Preferred Stock Shares Authorized
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CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
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CY2022 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
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CY2022 us-gaap Stock Issued During Period Shares Stock Options Exercised
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CY2022 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
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CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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CY2022 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
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CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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CY2022Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
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1448000 usd
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
3.11
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3.06
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9900000 usd
CY2021 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
5400000 usd
CY2022Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
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15300000 usd
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P2Y3M29D
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AllocatedShareBasedCompensationExpense
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CY2021 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
6322000 usd
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524000 usd
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LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
3758000 usd
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FinanceLeaseLiabilityPaymentsDueNextTwelveMonths
189000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
3234000 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due Year Two
FinanceLeaseLiabilityPaymentsDueYearTwo
122000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
914000 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due Year Three
FinanceLeaseLiabilityPaymentsDueYearThree
8000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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458000 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due Year Four
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0 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
458000 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due Year Five
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0 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
1225000 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due After Year Five
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0 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
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CY2022Q4 us-gaap Finance Lease Liability Payments Due
FinanceLeaseLiabilityPaymentsDue
319000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
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1050000 usd
CY2022Q4 us-gaap Finance Lease Liability Undiscounted Excess Amount
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31000 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
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CY2022Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
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CY2022Q4 us-gaap Operating Lease Liability Current
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CY2022Q4 us-gaap Finance Lease Liability Current
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160000 usd
CY2022Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
5715000 usd
CY2022Q4 us-gaap Finance Lease Liability Noncurrent
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CY2022 us-gaap Operating Lease Cost
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CY2022 us-gaap Finance Lease Right Of Use Asset Amortization
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2575000 usd
CY2022 us-gaap Finance Lease Interest Expense
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CY2021 us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
472000 usd
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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CY2022Q4 us-gaap Finance Lease Weighted Average Remaining Lease Term1
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390000 usd
CY2021 us-gaap Interest Income Other
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CY2022 us-gaap Fair Value Adjustment Of Warrants
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CY2022 soun Other Income Expense Net
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CY2022 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2021 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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-115624000 usd
CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
-79962000 usd
CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
3140000 usd
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IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
878000 usd
CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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-112484000 usd
CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
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CurrentFederalTaxExpenseBenefit
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CY2022 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
7000 usd
CY2021 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
5000 usd
CY2022 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
755000 usd
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CurrentForeignTaxExpenseBenefit
339000 usd
CY2022 us-gaap Current Income Tax Expense Benefit
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762000 usd
CY2021 us-gaap Current Income Tax Expense Benefit
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344000 usd
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CY2021 us-gaap Deferred Federal Income Tax Expense Benefit
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CY2022 us-gaap Deferred Foreign Income Tax Expense Benefit
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CY2021 us-gaap Deferred Foreign Income Tax Expense Benefit
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CY2021 us-gaap Deferred Income Tax Expense Benefit
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CY2021 us-gaap Income Tax Expense Benefit
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CY2022 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2021 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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7000 usd
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CY2022 us-gaap Income Tax Reconciliation Repatriation Of Foreign Earnings
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2298000 usd
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388000 usd
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-115000 usd
CY2021 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
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0 usd
CY2022 us-gaap Income Tax Reconciliation Tax Credits Research
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1731000 usd
CY2021 us-gaap Income Tax Reconciliation Tax Credits Research
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1605000 usd
CY2022 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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24272000 usd
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15804000 usd
CY2022 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
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1540000 usd
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728000 usd
CY2022 soun Effective Income Tax Rate Reconciliation Permanent Book Tax Differences Amount
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470000 usd
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996000 usd
CY2022 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
-230000 usd
CY2021 us-gaap Income Tax Reconciliation Other Adjustments
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748000 usd
CY2022 us-gaap Income Tax Expense Benefit
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2889000 usd
CY2021 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
456000 usd
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
79060000 usd
CY2021Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
70808000 usd
CY2022Q4 us-gaap Deferred Tax Assets In Process Research And Development
DeferredTaxAssetsInProcessResearchAndDevelopment
13809000 usd
CY2021Q4 us-gaap Deferred Tax Assets In Process Research And Development
DeferredTaxAssetsInProcessResearchAndDevelopment
10650000 usd
CY2022Q4 us-gaap Deferred Tax Assets Property Plant And Equipment
DeferredTaxAssetsPropertyPlantAndEquipment
178000 usd
CY2021Q4 us-gaap Deferred Tax Assets Property Plant And Equipment
DeferredTaxAssetsPropertyPlantAndEquipment
91000 usd
CY2022Q4 us-gaap Deferred Tax Assets Deferred Income
DeferredTaxAssetsDeferredIncome
1612000 usd
CY2021Q4 us-gaap Deferred Tax Assets Deferred Income
DeferredTaxAssetsDeferredIncome
3662000 usd
CY2022Q4 soun Deferred Tax Assets Contract Liability
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0 usd
CY2021Q4 soun Deferred Tax Assets Contract Liability
DeferredTaxAssetsContractLiability
1154000 usd
CY2022Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefits
3062000 usd
CY2021Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits
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1235000 usd
CY2022Q4 soun Deferred Tax Assets Operating Lease
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2106000 usd
CY2021Q4 soun Deferred Tax Assets Operating Lease
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2861000 usd
CY2022Q4 soun Deferred Tax Assets Section174 Research And Development Capitalization
DeferredTaxAssetsSection174ResearchAndDevelopmentCapitalization
13319000 usd
CY2021Q4 soun Deferred Tax Assets Section174 Research And Development Capitalization
DeferredTaxAssetsSection174ResearchAndDevelopmentCapitalization
0 usd
CY2022Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Reserves
DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsReserves
888000 usd
CY2021Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Reserves
DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsReserves
863000 usd
CY2022Q4 us-gaap Deferred Tax Assets Other
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23000 usd
CY2021Q4 us-gaap Deferred Tax Assets Other
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0 usd
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114057000 usd
CY2021Q4 us-gaap Deferred Income Tax Liabilities Net
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0 usd
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42000 usd
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91324000 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
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112204000 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
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1853000 usd
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4629000 usd
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1811000 usd
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2460000 usd
CY2022Q4 us-gaap Deferred Income Tax Liabilities
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1811000 usd
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2460000 usd
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42000 usd
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DeferredTaxAssetsLiabilitiesNet
2169000 usd
CY2022Q4 us-gaap Deferred Income Tax Assets Net
DeferredIncomeTaxAssetsNet
55000 usd
CY2021Q4 us-gaap Deferred Income Tax Assets Net
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2169000 usd
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25500000 usd
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17900000 usd
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4301000 usd
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731000 usd
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5068000 usd
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1062000 usd
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6130000 usd
us-gaap Revenue From Related Parties
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5200000 usd
CY2021 us-gaap Revenue From Related Parties
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15200000 usd

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