Culper Research short SoundHound, accuses of having misled investors

Culper Research stated in a report published on its website: “We are short SoundHound AI,” which it calls “a flailing AI wannabe claiming to have revolutionary technology, a growing restaurant business, and a massive backlog of contracts.” The short selling firm accuses SoundHound of having “misled investors on each of these items: the Company’s AI simply doesn’t work – it relies on call centers staffed by humans; SoundHound’s foray into restaurants is a disaster; the Company’s backlog figures are bogus.” The firm adds: “Just days ago, SoundHound filed a $400 million shelf, and our read of the subsequent 8-K implies that the Company burned at least $16.3 million in Q2 2023, up from $14.5 million in Q1, despite the Company’s reassurances that profitability would ramp throughout 2023. Meanwhile, executives have sold $9.8 million in stock in the past 6 weeks alone. We think they see the writing on the wall, and shares are headed lower.”