Financial Performance - Q3 2024 revenue was $2.5 million, a decrease of 49% compared to $4.9 million in Q3 2023, but an increase of 8.7% from $2.3 million in Q2 2024[5] - GAAP gross profit in Q3 2024 was $0.6 million, down 62% from $1.6 million in Q3 2023, with a gross profit margin of 24% compared to 33% in Q3 2023[6] - Operating expenses in Q3 2024 were $2.8 million, a 10% decrease from $3.1 million in Q3 2023, reflecting continued cost optimization efforts[7] - GAAP net loss in Q3 2024 was $(2.1) million, or $(0.09) per share, compared to a net loss of $(1.4) million, or $(0.06) per share, in Q3 2023[8] - Non-GAAP net loss in Q3 2024 was $(2.0) million, or $(0.08) per share, compared to a Non-GAAP net loss of $(1.2) million, or $(0.05) per share, in Q3 2023[9] - Operating loss for the three months ended September 30, 2024, was $(2,188,000), compared to $(1,489,000) for the same period in 2023, representing a 46.9% increase in loss[20] - Net loss for the three months ended September 30, 2024, was $(2,062,000), compared to $(1,351,000) in the same period of 2023, indicating a 52.5% increase in loss[20] - Non-GAAP operating loss for the three months ended September 30, 2024, was $(2,118,000), compared to $(1,315,000) for the same period in 2023[22] - Non-GAAP net loss for the three months ended September 30, 2024, was $(1,992,000), compared to $(1,177,000) in the same period of 2023[22] - Basic loss per share for the three months ended September 30, 2024, was $(0.09), compared to $(0.06) for the same period in 2023[20] Assets and Liabilities - As of September 30, 2024, cash, cash equivalents, and investments were $3.0 million, down from $22.2 million as of December 31, 2023[12] - Total current assets decreased to $23,039,000 as of September 30, 2024, down 46.8% from $43,317,000 at December 31, 2023[19] - Total liabilities decreased to $4,878,000 as of September 30, 2024, down 18.6% from $6,009,000 at December 31, 2023[19] - Shareholders' equity decreased to $23,501,000 as of September 30, 2024, down 47.4% from $44,685,000 at December 31, 2023[19] Market and Product Developments - The company recorded a 31% increase in unique visitors at the 2024 Infocomm India trade show, while overall attendance increased by only 17%[3] - ClearOne's BMA 360 beamforming microphone array won the Utah Innovation Awards in the Consumer Product Category, highlighting its advanced technology[3] - The company is focusing on regaining customers lost to competitors, with Q3 revenue increase indicating early signs of recovery[4] - The company anticipates continued recovery in sales as it addresses past production shortages and transitions to a new distributor in the Middle East[2]

Revenue Performance - Overall revenue decreased by 49% in Q3 2024 to $2.5 million compared to $4.9 million in Q3 2023, primarily due to a 50% decline in audio conferencing revenue [57]. - Revenue for the first nine months of 2024 decreased to $8.4 million from $14.6 million in the same period of 2023, reflecting a 48% decline in audio conferencing and a 39% decrease in microphones [70]. - Sales in the Americas declined by 61% in Q3 2024 compared to Q3 2023, with all sales regions experiencing revenue loss [69]. Profitability and Loss - Net loss increased to $(2.1) million in Q3 2024 from $(1.4) million in Q3 2023, driven by decreased revenues and gross margin [59]. - Gross profit margin decreased to 24.4% in Q3 2024 from 33.1% in Q3 2023, attributed to inventory scrapping and selling aged inventory at larger discounts [58]. Operating Expenses - Total operating expenses in Q3 2024 were $2.8 million, a decrease from $3.1 million in Q3 2023 [76]. - Research and Development (R&D) expenses decreased to $2.5 million for the nine months ended September 30, 2024, compared to $2.8 million for the same period in 2023 [79]. - General and Administrative (G&A) expenses decreased to $1.0 million in Q3 2024 from $1.1 million in Q3 2023, and YTD G&A expenses were $2.8 million compared to $3.4 million in 2023 [80]. - Interest expense was $0 in Q3 2024, down from $0.1 million in Q3 2023, and YTD interest expense decreased to $0.3 million from $0.5 million in 2023 [81]. Cash Flow and Position - Cash and cash equivalents as of September 30, 2024, were approximately $1.7 million, down from $17.8 million as of December 31, 2023 [85]. - Cash used in operating activities was approximately $4.6 million for the nine months ended September 30, 2024, a decrease of approximately $55.7 million from $51.1 million provided in the same period in 2023 [86]. - Cash provided by investing activities was $2.9 million for the nine months ended September 30, 2024, compared to $6.8 million used in the same period in 2023 [87]. - The company believes its current cash position will meet operating needs through at least November 14, 2025 [89]. Inventory and Purchases - As of September 30, 2024, total inventory was $16.5 million, including non-current inventory of $2.2 million, compared to total inventories of $13.8 million as of December 31, 2023 [90]. - The company had open purchase orders of approximately $3.5 million as of September 30, 2024, primarily for inventory purchases [90]. Strategic Initiatives - The company aims to return to operating profits through strategic initiatives focused on product innovation and cost reduction [60]. - The DIALOG® 20 USB wireless microphone system launched in January 2024 saw a 319% increase in unique visitors at ISE 2024 compared to 2023 [55]. - The company expects increased costs associated with electronic raw materials to continue affecting operations through 2024 and 2025 [57]. Geographic Revenue Distribution - Approximately 61.6% of revenue in the first nine months of 2024 was derived from operations outside North and South America [65].

Financial Performance - Q2 2024 revenue was $2.3 million, a 58% sequential decline and a 39% year-over-year decline from $5.5 million in Q2 2023[5] - GAAP gross profit in Q2 2024 was $(0.02) million, with a gross profit margin of -1%, down from 34% in Q2 2023[6] - Operating expenses in Q2 2024 were $2.9 million, a 9% decrease year-over-year from $3.2 million in Q2 2023[6] - GAAP net loss in Q2 2024 was $(2.8) million, or $(0.12) per share, compared to a net loss of $(1.0) million, or $(0.04) per share, in Q2 2023[7] - Non-GAAP net loss in Q2 2024 was $(2.7) million, or $(0.11) per share, compared to a Non-GAAP net loss of $(0.9) million, or $(0.04) per share, in Q2 2023[7] - Total revenue for the three months ended June 30, 2024, was $2,304,000, a decrease of 58% compared to $5,483,000 for the same period in 2023[18] - Gross profit for the three months ended June 30, 2024, was $(20,000), compared to a gross profit of $1,848,000 for the same period in 2023[18] - Operating loss for the three months ended June 30, 2024, was $(2,924,000), compared to an operating loss of $(1,355,000) for the same period in 2023[18] - Net loss for the three months ended June 30, 2024, was $(2,820,000), compared to a net loss of $(1,019,000) for the same period in 2023[18] - Basic loss per share for the three months ended June 30, 2024, was $(0.12), compared to $(0.04) for the same period in 2023[18] - Non-GAAP net loss for the three months ended June 30, 2024, was $(2,731,000), compared to $(865,000) for the same period in 2023[20] - Non-GAAP Adjusted EBITDA for the three months ended June 30, 2024, was $(2,660,000), compared to $(710,000) for the same period in 2023[20] Assets and Liabilities - Cash, cash equivalents, and investments as of June 30, 2024, were $4.9 million, down from $22.2 million as of December 31, 2023[10] - Total current assets decreased to $25,357,000 as of June 30, 2024, from $43,317,000 as of December 31, 2023, representing a decline of 41.5%[17] - Total liabilities decreased to $5,244,000 as of June 30, 2024, from $6,009,000 as of December 31, 2023, a reduction of 12.7%[17] - Shareholders' equity decreased to $25,552,000 as of June 30, 2024, from $44,685,000 as of December 31, 2023, a decline of 42.8%[17] Product Development and Market Activity - The company introduced the Versa Lite BMA 360D in Q2 2024, enhancing its product offerings for conferencing solutions[3] - Operating expenses improved by 10.1% sequentially and 9.33% year-over-year due to cost optimization initiatives[3] - The company captured 60% more sales leads at Infocomm USA 2024 compared to the previous year, indicating increased interest in its products[3] - The transition to a new distributor in the Middle East impacted sales, but the company anticipates continued growth in that region[2]

Revenue Performance - Overall revenue decreased to $2.3 million in Q2 2024, a 58% decline compared to $5.5 million in Q2 2023, primarily due to a 60.5% drop in audio conferencing revenue [45]. - Revenue from the Americas declined by 64% in Q2 2024, from Europe and Africa by 41%, and from Asia Pacific by 50% compared to Q2 2023 [53]. - Approximately 61% of revenue in the first half of 2024 came from operations outside North and South America [51]. Profitability and Loss - Gross profit margin fell to (0.9)% in Q2 2024 from 33.7% in Q2 2023, and to 19.1% in the first half of 2024 from 32.7% in the first half of 2023 [46]. - Net loss increased to $2.8 million in Q2 2024 from $1.0 million in Q2 2023, and to $4.7 million in the first half of 2024 from $1.9 million in the first half of 2023 [46]. - Inventory write-offs and price mark-downs could affect profitability due to long-term inventory of approximately $1.4 million in various products [58]. Operating Expenses - Total operating expenses decreased to $2.9 million in 2024-Q2 from $3.2 million in 2023-Q2, and $6.1 million in 2024-H1 compared to $6.7 million in 2023-H1 [59]. - Sales and marketing (S&M) expenses decreased to $1.2 million in 2024-Q2 from $1.3 million in 2023-Q2, while remaining consistent at $2.5 million for 2024-H1 compared to 2023-H1 [60]. - Research and development (R&D) expenses were consistent at $0.9 million in 2024-Q2 compared to 2023-Q2, but decreased to $1.8 million in 2024-H1 from $1.9 million in 2023-H1 [60]. - General and administrative (G&A) expenses decreased to $0.8 million in 2024-Q2 from $1.0 million in 2023-Q2, and to $1.9 million in 2024-H1 from $2.3 million in 2023-H1 [61]. Cash Flow and Liquidity - Cash and cash equivalents were approximately $2.5 million as of June 30, 2024, down from $17.8 million as of December 31, 2023 [65]. - Cash used in operating activities was approximately $2.7 million in the six months ended June 30, 2024, a decrease of approximately $55.6 million from $52.9 million in the same period of 2023 [65]. - Cash provided by investing activities was $1.8 million in the six months ended June 30, 2024, compared to $7.4 million used in the same period of 2023 [66]. Inventory and Purchases - As of June 30, 2024, total inventory was $16.4 million, up from $13.8 million as of December 31, 2023 [68]. - The company had open purchase orders of approximately $3.02 million mostly for inventory purchases as of June 30, 2024 [67]. Market Challenges - The company faced sales headwinds due to the lack of Microsoft Teams certification, impacting product demand despite functional compatibility [45]. - The company expects increased costs associated with electronic raw materials to continue through 2024 and 2025 [45]. New Product Launch - The DIALOG® 20 USB wireless microphone system launched on January 23, 2024, with a 319% increase in unique visitors at ISE 2024 compared to 2023 [44]. Interest Expense - Interest expense was $0 in 2024-Q2 and 2024-H1, down from $0.1 million and $0.4 million in 2023-Q2 and 2023-H1 respectively, due to repayment of all debts [62].

Revenue Performance - Q1 2024 revenue was $3.6 million, a decrease of 13% year over year from $4.2 million in Q1 2023[11] - Revenue for Q1 2024 was $3,622,000, a decrease of 13.3% compared to $4,178,000 in Q1 2023[25] - Microphone revenue increased by 31% year over year, while revenue from Asia, including India and the Middle East, rose by 18% year over year[2][3] Profitability and Loss - GAAP net loss for Q1 2024 was $(1.9) million, or $(0.08) per share, compared to a net loss of $(0.8) million, or $(0.03) per share in Q1 2023[7] - Non-GAAP net loss for Q1 2024 was $(1.8) million, or $(0.07) per share, an improvement from $(2.0) million, or $(0.09) per share in Q1 2023[13] - Net loss for Q1 2024 increased to $(1,898,000) compared to $(832,000) in Q1 2023, representing a year-over-year increase of 128.5%[25] - The company reported a comprehensive loss of $(1,878,000) for Q1 2024, compared to $(827,000) in Q1 2023[25] Operating Expenses - Operating expenses in Q1 2024 were reduced to $3.2 million, down 7.8% year over year from $3.5 million in Q1 2023[12] - Total operating expenses decreased to $3,229,000 in Q1 2024 from $3,504,000 in Q1 2023, a reduction of 7.8%[25] - The operating loss for Q1 2024 was $(2,078,000), slightly improved from $(2,189,000) in Q1 2023[25] Gross Profit and Margins - GAAP gross profit margin for Q1 2024 was 32%, a slight improvement from 31% in Q1 2023, but down from 38% in Q4 2023[6] - Gross profit for Q1 2024 was $1,151,000, down from $1,315,000 in Q1 2023, reflecting a gross margin of 31.8%[25] Cash and Investments - Cash, cash equivalents, and investments as of March 31, 2024, totaled $22.6 million, up from $22.2 million as of December 31, 2023[9] - A one-time special cash dividend of $0.50 per share was announced, payable on April 10, 2024[3] Compliance and Other Information - The company regained compliance with NASDAQ's minimum bid requirement[3] - Other income for Q1 2024 was $178,000, a significant decrease from $1,666,000 in Q1 2023[25] - GAAP diluted loss per share for Q1 2024 was $(0.08), compared to $(0.03) in Q1 2023[26] - Non-GAAP diluted loss per share for Q1 2024 was $(0.07), an improvement from $(0.09) in Q1 2023[26] Product Launch - The company launched the DIALOG® 20 USB wireless microphone system at ISE 2024, which saw a 319% increase in unique visitors compared to the previous year[3]

Financial Performance - Gross profit margin increased from 31.5% in 2023-Q1 to 31.8% in 2024-Q1, attributed to savings in freight costs by replacing air freight with ocean freight [59]. - Total operating expenses decreased to $3.2 million in 2024-Q1 from $3.5 million in 2023-Q1, with G&A expenses reducing to $1.0 million from $1.3 million [61][63]. - Net cash provided by operating activities was approximately $0.4 million in 2024-Q1, a decrease of $59.9 million from $60.3 million used in 2023-Q1, primarily due to $56.4 million in legal settlement receipts in 2023 [65]. - Net cash provided by investing activities was $0.3 million in 2024-Q1, compared to $0.1 million used in 2023-Q1, driven by an increase in the sale of marketable securities [75]. Cash and Inventory Management - As of March 31, 2024, cash and cash equivalents were approximately $18.5 million, up from $17.8 million as of December 31, 2023 [74][76]. - Inventory totaled $15.6 million as of March 31, 2024, compared to $13.8 million as of December 31, 2023, with non-current inventory increasing from $3.1 million to $4.2 million [67]. - The company had open purchase orders of approximately $4.5 million as of March 31, 2024, primarily for inventory purchases [67]. - The company believes its current cash position and effective management of working capital will meet operating needs through at least May 17, 2025 [76]. Market Challenges - The installed professional audio conferencing market faces challenges due to limited market size and pricing pressures from new competitors [56]. - The company has been denied admission to the Microsoft Teams device certification program, impacting revenue growth potential [56].

Internal Control and Compliance - The company reported a material weakness in internal control over financial reporting, which could affect the accuracy and timeliness of financial results[43] - Remedial measures were initiated to address the identified material weakness, and the company concluded that its internal control was effective as of December 31, 2022, and December 31, 2023[44] - The company has not experienced any changes in internal control over financial reporting that materially affect its operations during the fourth fiscal quarter[26] - The company has identified two significant deficiencies in internal control over financial reporting, which could adversely affect the stock price[94] - The company has a separate Audit and Compliance Committee, with members determined to be independent according to NASDAQ and SEC regulations[35] - The company’s Audit and Compliance Committee ensures that all services provided by public accountants are compatible with maintaining their independence[99] - The company has a Related Party Transactions Policy to manage potential conflicts of interest involving directors and executives[96] Financial Performance - The company reported a net loss of $560 thousand for the year ended December 31, 2023, compared to a net income of $20,556 thousand in 2022, indicating a substantial decline in profitability[116] - Revenue for the year ended December 31, 2023, was $18.704 million, a decrease of 25.8% from $25.205 million in 2022[141] - Gross profit for 2023 was $6.357 million, down 32.2% from $9.457 million in 2022[141] - Total operating expenses decreased to $13.129 million in 2023 from $16.679 million in 2022, a reduction of 21.5%[141] - The accumulated deficit grew from $516 thousand in 2022 to $1,076 thousand in 2023, representing an increase of approximately 108.8%[116] - The company reported an allowance for credit losses of $326 thousand, unchanged from the previous year[127] Assets and Liabilities - Total assets decreased from $83,750 thousand as of December 31, 2022, to $50,694 thousand as of December 31, 2023, representing a decline of approximately 39.5%[113] - Total current liabilities decreased from $8,120 thousand in 2022 to $4,265 thousand in 2023, a reduction of approximately 47.5%[113] - Shareholders' equity fell from $74,130 thousand in 2022 to $44,685 thousand in 2023, a decrease of about 39.7%[113] - The company had no short-term debt as of December 31, 2023, compared to $3,732 thousand in 2022, indicating a complete elimination of short-term liabilities[113] - The total liabilities decreased from $9,620 thousand in 2022 to $6,009 thousand in 2023, a decline of approximately 37.5%[113] Inventory and Cash Flow - As of December 31, 2023, the company’s inventories totaled $13.8 million, stated at the lower of cost or market[91] - Inventories increased from $8,961 thousand in 2022 to $10,625 thousand in 2023, reflecting a rise of approximately 18.5%[113] - Cash and cash equivalents increased significantly from $984 thousand in 2022 to $17,835 thousand in 2023, marking a growth of over 1,710%[113] - The company experienced a net cash provided by operating activities of $54.628 million in 2023, compared to a net cash used of $4.179 million in 2022[143] Competition and Market Challenges - The company faces intense competition in its markets, particularly in video-related services, which could adversely affect sales and profit margins[30] - Difficulties in estimating customer demand may harm profit margins, as revenue is difficult to predict and often depends on last-minute orders[32] - The company experienced a revenue decline in 2023 due to challenges in sourcing adequate inventory, particularly during the transition of manufacturing from China to Singapore[170] Intellectual Property and Innovation - The company relies on a combination of trade secrets, copyrights, trademarks, and patents to protect its intellectual property, which is crucial for maintaining competitive advantages[34] - As of December 31, 2023, the company held approximately 79 patents and 4 pending patent applications, covering technologies such as acoustic echo cancellation and wireless conferencing systems[157] - The company continues to focus on enhancing its core technological competencies in audio, networking, video, and cloud technologies[155] - ClearOne aims to capitalize on the growing influence of information technology channels in the audio-visual market[204] - The company plans to continue product innovation in audio, video, and networked AV technologies to enhance existing products and introduce new ones[182] Product Development and Offerings - ClearOne introduced the new CHAT® 150 BT group speakerphone on January 30, 2023, enhancing conferencing experience with USB and Bluetooth connectivity[211] - The DIALOG UVHF wireless microphone system was launched in June 2023, offering up to 350 usable frequencies and robust reception capabilities[220] - ClearOne's CONVERGENCE Cloud software provides a unified AV network management platform designed to support organizations of any size with real-time remote system access[209] - The BMA 360 Beamforming Microphone Array now includes a Voice Lift feature, enhancing audio performance in large spaces[216] - ClearOne's COLLABORATE Space suite unifies messaging, calls, and meetings, designed to energize workflows and increase productivity[221] Employee and Corporate Governance - The company had 82 full-time employees as of December 31, 2023, with 44 located in the U.S. and 38 in other countries[162] - The company paid Edward D. Bagley $60,000 in consulting fees during 2023 under a Consulting Agreement, which has been renewed through 2024[74] - The total shares beneficially owned by directors and executive officers amount to 177,998, which is 0.71% of the total shares outstanding[68] - All directors were reimbursed for out-of-pocket travel expenses incurred in attending meetings, but no expenses were reimbursed in 2023[67]

ClearOne (NASDAQ:CLRO) stock is on the rise Tuesday after the video and voice network streaming solutions company announced a special dividend.ClearOne is paying out a special one-time cash dividend of 50 cents per share to investors. This dividend is payable April 10, 2024 to shareholders on record April 2, 2024.However, shareholders who sell shares before the April 10 payment date won’t receive the special dividend. This is due to it being more than 25% of the value of CLRO stock.ClearOne CEO Derek Graham ...

SALT LAKE CITY--(BUSINESS WIRE)--ClearOne (NASDAQ: CLRO) today announced that its Board of Directors has declared a one-time special cash dividend of $0.50 per share of ClearOne common stock, payable on April 10, 2024 to shareholders of record on April 2, 2024. Because the special cash dividend exceeds twenty-five percent (25%) of the value of the Company’s common stock, in accordance with FINRA UPC (Uniform Practice Code) Rule 11140, a stockholder of the Company that sells shares of the Company’s common st ...

SALT LAKE CITY--(BUSINESS WIRE)--ClearOne, Inc. (NASDAQ: CLRO) (“ClearOne” or the "Company"), a global provider of audio and visual communication solutions, is providing a review of its 2023 operational and financial progress, along with several recent 2024 highlights. “ 2023 represented a key transition year for ClearOne,” said Derek Graham, CEO of ClearOne. “ Since my appointment as permanent CEO last January, we have focused on recovering from our multi-year litigation process and navigating the transit ...