Investment Thesis
ClearOne is in severe financial distress with zero revenue, massive operating losses of $3.3M, and negative net income of $21.1M in the latest period. The company is burning cash with negative operating cash flow of $2.6M and only $101K in cash reserves, creating an acute solvency risk. Fundamentals indicate a company facing existential challenges with deteriorating operations and insufficient liquidity runway.
Strengths
- No long-term debt reduces default risk
- Current ratio of 2.29x provides near-term liquidity buffer
- Total assets of $9.5M provide some asset backing to equity holders
Risks
- Zero revenue indicates complete business collapse or major operational shutdown
- Cash reserves of $101K are critically low relative to $2.6M quarterly cash burn
- Negative operating cash flow of $2.6M is unsustainable without external funding
- Return on equity of -610.9% and return on assets of -223.2% signal fundamental value destruction
- Diluted EPS of -$12.39 reflects massive shareholder value destruction
Key Metrics to Watch
- Monthly cash burn rate and cash runway estimate
- Revenue stabilization or recovery signs
- Debt restructuring or capital raise announcements
- Operating expense reduction initiatives
- Customer retention and order pipeline
Financial Metrics
Revenue
0.0
Net Income
-21.1M
EPS (Diluted)
$-12.39
Free Cash Flow
-2.6M
Total Assets
9.5M
Cash
101.0K
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
-610.9%
ROA
-223.2%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
2.29x
Quick Ratio
2.19x
Debt/Equity
0.00x
Debt/Assets
55.5%
Interest Coverage
-116.43x
Long-term Debt
0.0
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-22T12:38:09.997631 |
Data as of: 2025-09-30 |
Powered by Claude AI