Financial Performance - Overall revenue decreased by 36% in Q1 2025 compared to Q1 2024, primarily due to product shortages and reduced demand in key regions[58]. - Revenue decreased to 3.6 million in Q1 2024, driven by a 37% drop in audio conferencing, 54% in video products, and 29% in microphones[76]. - Gross profit margin fell to 5.2% in Q1 2025 from 31.8% in Q1 2024, driven by a larger percentage decrease in revenue than in cost of goods sold[59]. - Operating loss increased to 2.1 million in Q1 2024, representing a 37% adverse change[75]. - Net loss increased from (2.8) million in Q1 2025, attributed to decreased revenues and gross margin[61]. - Cash used in operating activities was approximately 1.8 million from cash provided in Q1 2024[88]. - As of March 31, 2025, cash and cash equivalents were approximately 1.4 million as of December 31, 2024[87]. - Total operating expenses in Q1 2025 were 3.2 million in Q1 2024[81]. Strategic Initiatives - ClearOne is exploring strategic alternatives to maximize shareholder value, including potential mergers, acquisitions, or divestitures[62]. - The company faces substantial doubt about its ability to continue as a going concern without completing strategic transactions or raising additional capital[63]. - The company raised 4.2 million, primarily for inventory[93]. - Deferred product revenue decreased to 17 thousand on December 31, 2024[72]. Accounting and Compliance - The company has maintained its critical accounting policies without changes since the last Annual Report for the year ended December 31, 2024[96]. - Recent accounting pronouncements are discussed in the notes to the unaudited condensed consolidated financial statements[97]. - There are no applicable quantitative and qualitative disclosures about market risk[98]. Dividend Announcement - ClearOne announced a one-time special cash dividend of $0.50 per share, paid on April 10, 2024[50].
ClearOne(CLRO) - 2025 Q1 - Quarterly Report