ClearOne Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>ClearOne Inc. has submitted its 2023 10-K filing, detailing financial performance and operational status.</b>

AI Summary

CLEARONE INC (CLRO) filed a Annual Report (10-K) with the SEC on April 1, 2024. ClearOne Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing provides comprehensive financial and operational details for the company. Key financial statement information, including balance sheets and income statements, is included. The report details various assets, including manufacturing equipment, vehicles, and intangible assets. It also covers equity, debt, and other financial instruments as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking CLEARONE INC, this filing contains several important signals. This 10-K filing provides investors and stakeholders with the most up-to-date financial health and strategic overview of ClearOne Inc. The detailed financial disclosures allow for a thorough assessment of the company's performance, assets, liabilities, and equity for the fiscal year 2023.

Risk Assessment

Risk Level: medium — CLEARONE INC shows moderate risk based on this filing. The filing is a standard annual report, indicating no immediate crisis but requiring detailed review for potential risks and financial performance trends.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand ClearOne Inc.'s performance and outlook for the upcoming year.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240401 — Filing Date (FILED AS OF DATE)
• 97 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 3661 — Standard Industrial Classification (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• CLEARONE INC (company) — FILER
• 0000840715 (company) — CENTRAL INDEX KEY
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240401 (date) — FILED AS OF DATE
• SALT LAKE CITY (location) — CITY
• UT (location) — STATE
• 84116 (postal_code) — ZIP
• 8019757200 (phone_number) — BUSINESS PHONE

FAQ

Industry Context

ClearOne Inc. operates in the telecommunications equipment sector, specifically focusing on audio and video conferencing solutions.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file annual reports (10-K) detailing financial and operational information.

What Investors Should Do

1. Analyze the financial statements for revenue trends and profitability.
2. Review the balance sheet for asset and liability composition.
3. Examine any disclosed risk factors for potential business impacts.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-01: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing provided for analysis; comparison to previous filings is not possible with the given data.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value CLRO The Nasdaq Capital M

Filing Documents

• clro-20231231.htm (10-K) — 2775KB
• ex191_1.htm (EX-19.1) — 137KB
• ex211_2.htm (EX-21.1) — 3KB
• ex231_3.htm (EX-23.1) — 4KB
• ex311_4.htm (EX-31.1) — 21KB
• ex312_5.htm (EX-31.2) — 23KB
• ex321_6.htm (EX-32.1) — 8KB
• ex322_7.htm (EX-32.2) — 9KB
• 0001753926-24-000656.txt (&nbsp;) — 12303KB
• clro-20231231_def.xml (EX-101.DEF) — 339KB
• clro-20231231_pre.xml (EX-101.PRE) — 648KB
• clro-20231231_cal.xml (EX-101.CAL) — 140KB
• clro-20231231_lab.xml (EX-101.LAB) — 1137KB
• clro-20231231.xsd (EX-101.SCH) — 65KB
• clro-20231231_htm.xml (XML) — 2038KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 29 Item 1C. Cybersecurity 29 Item 2.

Properties

Properties 29 Item 3.

Legal Proceedings

Legal Proceedings 29 Item 4. Mine Safety Disclosures 29 PART II 30 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30 Item 6. Reserved 30 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 40 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 40 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 41 Item 9A.

Controls and Procedures

Controls and Procedures 41 Item 9B. Other Information 41 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 41 PART III 42 Item 10. Directors, Executive Officers and Corporate Governance 42 Item 11.

Executive Compensation

Executive Compensation 44 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 45 Item 13. Certain Relationships and Related Transactions, and Director Independence 47 Item 14. Principal Accounting Fees and Services 48 PART IV 49 Item 15. Exhibits, Financial Statement Schedules 49 Item 16. Form 10-K Summary 49 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This report contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements reflect our views with respect to future events based upon information available to us at this time. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from these statements. Forward-looking statements are typically identified by the use of the words "believe," "may," "could," "will," "should," "expect," "anticipate," "estimate," "project," "propose," "plan," "intend," and similar words and expressions. Examples of forward-looking statements are statements that describe the proposed development, manufacturing, and sale of our products; statements that describe expectations regarding pricing trends, the markets for our products, our anticipated capital expenditures, our cost reduction and operational restructuring initiatives, and future impact of regulatory developments; statements with regard to the nature and extent of competition we may face in the future; statements with respect to the anticipated sources of and need for future financing; and statements with respect to future strategic plans, goals, and objectives and forecasts of future growth and value. Forward-looking statements are contained in this report under "Business" included in Item 1 of Part I, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in Item 7 of Part II of this Annual Report on Form 10-K. The forward-looking statem

. BUSINESS

ITEM 1 . BUSINESS GENERAL ClearOne, Inc. (the Company) was incorporated in Utah in 1983 and reincorporated in Delaware on October 25, 2018. The Company is headquartered in Salt Lake City, Utah. The Company has other locations in Gainesville, Florida; Zaragoza, Spain; Chennai, India; and Dubai, United Arab Emirates. We compete in a global market with our conferencing, collaboration, and network streaming solutions. We design, develop and sell conferencing, collaboration and network streaming solutions for voice and visual communications. The performance and simplicity of our advanced comprehensive solutions offer unprecedented levels of functionality, reliability and scalability. Our comprehensive line of high-quality conferencing and collaboration products are targeted for large, medium and small businesses, as well as for personal use. We have been a global market leader in the installed professional audio conferencing market, where our products are used in numerous industries such as enterprise, healthcare, education, government, legal and finance. We have an established history of product innovation and plan to continue to apply our expertise in audio, video and networked AV to design, develop and introduce innovative new products and enhance our existing products. Our end-users range from some of the world's largest and most prestigious companies and institutions to small and medium-sized businesses, higher education and government organizations, as well as individual consumers. We sell our commercial products to these end-users through a global network of independent distributors who, in turn, sell our products to dealers, systems integrators and other value-added resellers. We also sell directly to dealers, systems integrators and other value-added resellers. Our solutions save end-users time and money by creating a natural environment for collaboration and communication. Our partners, who are involved in system integration benefit from simpler proje

- BUSINESS

ITEM 1 - BUSINESS For a discussion of certain risks ap plicable to our business, results of operations, financial position, and liquidity, see the risk factors described in "Item 1 A, Risk Factors" below. Our Business Strategy The Company's primary challenge is the loss in revenue and consequent reduction in cash flows due to operating losses. Our current strategy consists of the following elements to overcome this adverse situation: Continue our product innovation to bring to market products that are needed by our partners and end-users Cut costs to operate efficiently Focus on our core products and improve the quality of our products Develop products that have improved interoperability with products from other suppliers. Provide continually improving levels of support to our channel partners We currently participate in the following markets: All aspects of audio conferencing including installed professional audio conferencing through DSP mixers, USB based speakerphones and table-top conferencing; Professional microphones to support audio and video collaboration through patented beamforming microphones, ceiling microphones and wireless microphones; Visual collaboration in all forms including low-cost room appliances, professional cameras, Bring-Your-Own-Device and cloud video services; and Audio Visual Networking which includes network media streaming, video walls, sound reinforcement and audio distribution. Our business goals are to: Improve our global market share in professional installed audio conferencing products for large businesses and organizations; Position ClearOne as the preferred AV channel partner uniquely offering a complete value-chain of natively integrated solutions from audio to video maximizing AV channel partner profitability; Extend total addressable market from our traditional stronghold of installed audio conferencing and microphones to adjacent complementary markets – video collaboration and AV networking;

- BUSINESS

ITEM 1 - BUSINESS We will continue to focus on our core strengths, which include the following: Providing a superior conferencing and collaboration experience; Delivering the complete value chain for audio visual communication; Extending our capabilities in product innovation through software-based video collaboration and AV networking Offering greater innovation, interoperability and value to our end-users and channel partners; Leveraging and extending ClearOne technology, leadership and innovation; Focusing on our core products and improving the quality of our products to attain higher levels of customer satisfaction; Leveraging our strong domestic and international channels to distribute new products; and Strengthening existing end-user and channel partner relationships through dedicated and comprehensive support. PRODUCTS Our products can be broadly categorized into the following: Audio conferencing including installed DSP based professional audio conferencing, USB-based speakerphones and table-top audio conferencing Professional microphones consisting of patented beamforming microphones, ceiling microphones and wireless microphones; and Video products including video collaboration and AV networking AUDIO CONFERENCING Our full range of audio conferencing products include ( i ) professional installed DSP based audio conferencing and sound-reinforcement products used in enterprise, healthcare, education and distance learning, government, legal and finance organizations, (ii) mid-tier premium conferencing products for smaller rooms and small and medium businesses which interface with video and web conferencing systems, (iii) affordable USB-based speakerphones that can be used with PCs, laptops, tablets, smartphones, and other portable devices, and (iv) traditional tabletop conferencing phones used in conference rooms and offices. Our audio conferencing products feature our proprietary HDConference , Distributed Echo Cancellation an

- BUSINESS

ITEM 1 - BUSINESS Daisy- chainable design to support up to 144 Mic/line inputs, C-Link expansion bus with 150 channels and P-Link bus for scalable connection of peripheral devices including any combination of ClearOne peripheral devices, such as the Beamforming Microphone Array 2 , BMA CT, BMA 360 , USB Expander, GPIO Expander and/or the DIALOG 20 Wireless Microphone system. Supports video conferencing, audio and web conferencing, in-room meetings, wireless presentation, and more. Integration of VoIP or telephony, USB, and Dante for maximum functionality. Ability to control local meeting rooms and audio distribution applications with flexible options – touch panel controller, BYOD dialer apps or 3 rd party control modules. Configure, manage, monitor and troubleshoot the entire system of auto-discovered devices with MatrixView and FlowView in CONSOLE AI for visualized audio signal paths. The CONVERGE Pro 2 line of products is ably supported by a touch panel controller, a GPIO expansion box , a USB expansion box and a wall-mount Bluetooth Expander . CONVERGE Pro 2 VoIP SKUs are certified to interoperate with Cisco, Avaya and ShoreTel SIP based VoIP systems and also interoperate with Microsoft Teams, Zoom, Google Meet, and other popular collaboration applications. Our CONVERGENCE Cloud software is a unified AV network management platform to monitor, control, and audit ClearOne Pro Audio and Video products and services. Remote real-time system access provides at-a-glance and all-inclusive dashboard views with auto-discovery of Pro Audio devices and unlimited scalability designed to support organizations of any size. With the new Cloud option, AV Practitioners can profit on value-added MaaS opportunities to easily support multiple clients and multiple networks with fully secure, real-time remote system access on a single multi-tenant platform. The powerful and elegant user interface, in twelve languages, works on any browser and will allow full support of t

- BUSINESS

ITEM 1 - BUSINESS CHAT 50 personal speakerphones are approximately the size of a deck of cards, and connect to PCs and Macs for rich, clear, hands-free audio and playback. CHAT 150 group speakerphones are designed for small group use. These can connect to the same devices and applications as the CHAT personal speakerphones but feature three microphones in larger design for use by a larger number of participants. CHAT group speakerphones make it possible to introduce rich, crystal clear conferencing capability without the need for introducing a separate traditional conference phone. CHATAttach is comprised of two CHAT 150 group speakerphones which can be daisy-chained together to function as a single conferencing system for much larger coverage than a single CHAT 150 . CHAT group speakerphones are integral to our media collaboration product line. On January 30, 2023, we introduced the new CHAT 150 BT group speakerphone with USB and Bluetooth connectivity that enhances the conferencing experience for the ultimate in business class performance. With simple, instant connection to personal computers, mobile devices or Bluetooth-enabled desk phones, the CHAT 150 BT group speakerphone provides users with an affordable way to upgrade home offices, executive offices, and mid-size meeting rooms with BYOD convenience and superior audio clarity for audio conferences and video meetings. The CHAT 150 BT speakerphone also has an audio bridging feature that allows far end conference participants connected via a software conferencing application through USB, local users of the speakerphone, and far end callers on a mobile call connected through Bluetooth to all join the same call and hear each other clearly. Featuring a steerable microphone array with first-mic priority, the CHAT 150 BT speakerphone intelligently activates the microphone closest to the person speaking, reducing interference from ambient noise. Like all ClearOne microphone products, the CHAT 150 BT speakerphone i

- BUSINESS

ITEM 1 - BUSINESS During the first quarter of 2019 , the Company began shipping our patented Beamforming Microphone Array Ceiling Tile (BMA CT) to our partners. All of the innovations developed for the BMA CT make the integrator's job easier and more profitable. The BMA CT dramatically transforms how integrators can approach system design for ceiling tile installations, allowing for multi-array setups that can utilize a single, low-channel count DSP mixer while maintaining ClearOne's high level of performance and reliability. Further simplification comes from the array's built-in power amplifier, which allows each array to drive two 10 -Watt, 8 -Ohm loudspeakers. The BMA CT also features ClearOne's proprietary adaptive steering technology (think of it as smart switching). This provides impeccable room coverage while eliminating the need to adjust individual beams. Integrators can daisy chain ceiling tiles via P-Link ( ClearOne's proprietary peripheral link) for larger conference setups – for simpler wiring and longer distances compared to networked home-run connections. P-Link also allows integrators to daisy chain additional peripherals such as wireless mics, USB Expanders, and GPIO Expanders. The system supports all of this functionality with zero consumption of analog I/O and signal processing in the DSP mixer leaving those resources available for other needs. During the first quarter of 2020 , we announced two new additions to our COLLABORATE Versa family of products. COLLABORATE Versa Room CT, provides all the equipment and accessories needed for exceptional room cloud-based conferencing. At the heart of the system, is the USB audio-enabled Beamforming Mic Array Ceiling Tile (BMA CTH). Thanks to its onboard processing, the BMA CTH performs acoustic echo cancellation, noise cancellation, and beam selection, so no external DSP mixer is required. The array's adaptive steering (think of it as smart switching) provides impeccable room coverage. The Versa Room CT

View Full Filing

View this 10-K filing on SEC EDGAR