Summary
Reported figures for the quarter ended June 30, 2021 show revenue of $8.28 million, and $12.02 million for the six months to the same date. The operating loss was $0.15 million in the quarter and $0.23 million for the year to date. Operating margin was -1.8% for the quarter and -1.9% for the six months. Net loss was $70,540 in the quarter and $154,573 year to date. Diluted loss per share was $0.22 for the quarter and $0.51 for the six months. The reported figures above are the ones the filing tags for the period.
The MD&A frames the entity as a blank-check vehicle. Archimedes Tech SPAC Partners Co. was formed on September 15, 2020 to enter a merger, share exchange, asset acquisition, stock purchase, recapitalization or similar combination with a target business, with an intended focus on the technology industry. All activity through June 30, 2021 relates to formation, the March 15, 2021 IPO and the search for a target. Management states that the company will not generate operating revenue until an initial business combination is completed, at the earliest, and that non-operating income will come as interest on IPO proceeds held in the trust account.
The IPO sold 12,000,000 public units at $10.00 each for gross proceeds of $120,000,000, alongside 390,000 private units at $10.00 sold to the sponsor and EarlyBirdCapital for $3,900,000. On March 19, 2021 the underwriters partially exercised the over-allotment option, adding 1,300,000 public units for $13,000,000 and 26,000 private units for $260,000. Of the net proceeds, $133,000,000 was placed in the trust account, and the operating bank account held $803,506 at June 30, 2021 for working capital. Before the IPO, liquidity came from a $25,000 payment from the sponsor for founder shares and a $125,000 unsecured promissory note, which was repaid on March 15, 2021. No amounts were outstanding under any working capital loans.
The MD&A attributes the quarterly loss to operating costs, offset in part by interest income from marketable securities held in the trust account and an unrealized gain on the change in fair value of warrants. Cash flow was negative. Operating cash flow was -$0.11 million in the quarter and -$0.30 million for the year to date. Capital expenditures were $0.11 million for the six months, a cash outflow the filing presents as a positive amount.
Two accounting points matter for anyone modeling the equity. Common stock subject to possible redemption sits in temporary equity, outside the stockholders' equity section, because the redemption rights fall outside the company's control. Diluted loss per share also leaves out the warrants issued in the IPO, the over-allotment exercise and the private placement, since their exercise price is above the market price. Those warrants are exercisable for 6,858,000 shares in the aggregate.
On outlook, the filing offers no revenue or earnings guidance for the next quarter or for the full fiscal year. The operating revenue line stays empty until a transaction closes, and management says working capital and borrowing capacity will cover the company's needs through the earlier of a business combination or one year from the filing. The risks are the ones a vehicle at this stage carries: finding and evaluating candidates, doing due diligence, paying transaction and travel costs, and the possibility that no deal gets signed. The forward-looking statement section repeats the standard warning that actual results could differ materially from current expectations.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2021 | Q1 FY2021 | QoQ | Q2 FY2020 | YoY |
|---|---|---|---|---|---|
| Operating income (loss) | -$150.9K | -$81.4K | -85.3% | — | — |
| Net income (loss) | -$70.5K | -$84.0K | +16.1% | — | — |
Risks
The company is a blank check entity formed on September 15, 2020 and has not commenced operations; all activity through June 30, 2021 relates to its formation, its March 15, 2021 IPO, and the search for a target. Management states it must identify, negotiate and consummate an initial Business Combination within one year of the filing or the funds in the Trust Account may be redeemed.
The company will not generate any operating revenues until after completion of its initial Business Combination at the earliest, and reported a net loss of $154,573 for the six months ended June 30, 2021, comprised of operating costs of $232,342. Liquidity depends on proceeds from the Private Placement not held in the Trust Account, with $803,506 in the operating bank account as of June 30, 2021 and no amounts outstanding under any Working Capital Loans.
Warrants issued in connection with the IPO, the exercise of the over-allotment, and the Private Placement are exercisable to purchase 6,858,000 shares of common stock in the aggregate, and the diluted loss per share calculation excludes them because the warrants' exercise price is higher than the market price.
Summary, forecast, risks and KPIs are extracted from SOUNDHOUND AI, INC.'s SEC filings for Q2 FY2021 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.