Investment Thesis
ClearOne exhibits critical distress signals: zero reported revenue, $850K operating loss, and negative $2.6M operating cash flow that exhausts the $756K cash balance within 3-4 months. The company faces imminent liquidity crisis with deteriorating year-over-year performance (net income down 190%, EPS down 163%) and insufficient equity cushion ($532K) relative to liabilities ($1.5M).
Strengths
- No long-term debt provides flexibility for restructuring or asset sales
- Current ratio of 1.91x and quick ratio of 1.53x show adequate short-term liquidity
- Minimal capex spending ($17K) demonstrates cost conservation discipline
Risks
- Zero revenue indicates complete loss of business operations or catastrophic revenue decline
- Negative $2.6M annual operating cash burn with only $756K cash reserves (3-4 month runway)
- Stockholders equity of $532K is severely depleted relative to $1.5M liabilities, signaling solvency risk
- Year-over-year deterioration across all profitability metrics (net income -190%, EPS -163%) indicates accelerating decline
- Minimal insider Form 4 activity (1 filing in 90 days) suggests zero management confidence in recovery
Key Metrics to Watch
- Monthly cash burn rate and remaining cash runway (existential metric)
- Revenue generation and return to sales operations
- Form 4 insider buying activity as confidence signal
- Debt restructuring, dilutive financing, or asset sale announcements
- Operating expense reduction and path to cash flow breakeven
Financial Metrics
Revenue
0.0
Net Income
-487.0K
EPS (Diluted)
$-0.18
Free Cash Flow
-2.6M
Total Assets
2.0M
Cash
756.0K
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
-91.5%
ROA
-24.1%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
1.91x
Quick Ratio
1.53x
Debt/Equity
0.00x
Debt/Assets
73.6%
Interest Coverage
N/A
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: 2026-05-20T07:36:18.937063 |
Data as of: 2026-03-31 |
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