Multimodal Large Language Models (MLLMs) are a major focus of recent AI research. However, most prior work focuses on static image understanding, while their ability to process sequential audio-video data remains underexplored. This gap highlights the need for a high-quality benchmark to systematically evaluate MLLM performance in a real-world setting. We introduce SONIC-O1, a comprehensive, fully human-verified benchmark of 60 hours (231 clips) spanning 13 real-world conversational domains with 4,958 annotations and demographic metadata. SONIC-O1 evaluates three capabilities: open-ended summarization, multiple-choice question (MCQ) answering, and temporal localization with supporting rationales (reasoning). Across closed- and open-source models, we find that the MCQ accuracy shows the smallest gap between model families, but the best closed-source model outperforms the best open-source model by 22.6% on temporal localization. We further observe accuracy gaps of up to 21.4% on temporal localization across demographic groups, indicating persistent disparities in model behaviour. SONIC-O1 provides an open evaluation suite for temporally grounded and demographically robust multimodal understanding. SONIC-O1 is publicly available for research: Project page (https://vectorinstitute.github.io/sonic-o1/), Dataset (https://huggingface.co/datasets/vector-institute/sonic-o1), GitHub (https://github.com/vectorinstitute/sonic-o1), Leaderboard (https://huggingface.co/spaces/vector-institute/sonic-o1-leaderboard).