ClearOne (CLRO) 10-Q 17 May 19 2019 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 15, 2019
Document Information [Line Items]
Entity Registrant Name	CLEARONE INC
Entity Central Index Key	0000840715
Trading Symbol	clro
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		16,630,597
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 4,326	$ 11,211
Marketable securities	2,888	951
Receivables, net of allowance for doubtful accounts of $649 and $631, respectively	6,435	6,782
Inventories, net	12,331	13,228
Prepaid expenses and other assets	1,882	2,193
Total current assets	27,862	34,365
Long-term marketable securities	6,235	3,764
Long-term inventories, net	8,481	8,953
Property and equipment, net	1,280	1,388
Operating lease - right of use assets, net	2,818
Intangibles, net	11,102	10,249
Other assets	158	196
Total assets	57,936	58,915
Current liabilities:
Accounts payable	2,326	3,729
Accrued liabilities	2,396	1,996
Deferred product revenue	259	283
Total current liabilities	4,981	6,008
Deferred rent		135
Operating lease liability, net of current portion	2,406
Other long-term liabilities	570	571
Total liabilities	7,957	6,714
Shareholders' equity:
Common stock, par value $0.001, 50,000,000 shares authorized, 16,630,597 and 16,630,597 shares issued and outstanding	17	17
Additional paid-in capital	57,923	57,840
Accumulated other comprehensive loss	(137)	(181)
Accumulated deficit	(7,824)	(5,475)
Total shareholders' equity	49,979	52,201
Total liabilities and shareholders' equity	$ 57,936	$ 58,915

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Allowance for doubtful accounts	$ 649	$ 631
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	16,630,597	16,630,597
Common stock, shares outstanding (in shares)	16,630,597	16,630,597

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue	$ 6,305	$ 7,289
Cost of goods sold	3,601	3,190
Gross profit	2,704	4,099
Operating expenses:
Sales and marketing	1,953	2,868
Research and product development	1,587	2,056
General and administrative	1,555	1,617
Total operating expenses	5,095	6,541
Operating loss	(2,391)	(2,442)
Other income, net	42	24
Loss before income taxes	(2,349)	(2,418)
Provision for (benefit from) income taxes		(572)
Net loss	$ (2,349)	$ (1,846)
Basic weighted average shares outstanding (in shares)	16,630,597	8,307,125
Diluted weighted average shares outstanding (in shares)	16,630,597	8,307,125
Basic loss per share (in dollars per share)	$ (0.14)	$ (0.22)
Diluted loss per share (in dollars per share)	$ (0.14)	$ (0.22)
Comprehensive loss:
Net loss	$ (2,349)	$ (1,846)
Unrealized gain (loss) on available-for-sale securities, net of tax	70	(70)
Change in foreign currency translation adjustment	(27)	22
Comprehensive loss	$ (2,306)	$ (1,894)

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net loss	$ (2,349)	$ (1,846)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	509	380
Amortization of right-of-use assets	148
Share-based compensation expense	74	137
Provision for (recoveries of) doubtful accounts, net	18	18
Change of inventory to net realizable value	185	255
Deferred income taxes		(696)
Changes in operating assets and liabilities:
Receivables	320	1,545
Inventories	1,184	(319)
Prepaid expenses and other assets	(25)	(108)
Accounts payable	(1,403)	172
Accrued liabilities	(156)	110
Income taxes payable	373	3
Deferred product revenue	(25)	(22)
Operating lease liabilities	(147)
Other long-term liabilities		72
Net cash used in operating activities	(1,294)	(299)
Cash flows from investing activities:
Purchase of property and equipment	(37)	(62)
Purchase of intangibles	4	(62)
Capitalized patent defense costs	(1,221)	(1,283)
Proceeds from maturities and sales of marketable securities	427	3,304
Purchases of marketable securities	(4,764)	(884)
Net cash provided by (used in) investing activities	(5,591)	1,013
Cash flows from financing activities:
Net proceeds from equity-based compensation programs	9	11
Dividend payments		(583)
Repurchase and cancellation of stock		(147)
Net cash used in financing activities	9	(719)
Effect of exchange rate changes on cash and cash equivalents	(9)	11
Net increase (decrease) in cash and cash equivalents	(6,885)	6
Cash and cash equivalents at the beginning of the period	11,211	5,571
Cash and cash equivalents at the end of the period	4,326	5,577
Cash paid for income taxes		$ 1

Note 1 - Business Description,

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	1. Business Description: ClearOne, Inc., together with its subsidiaries (collectively, “ClearOne” or the “Company”), is a global market leader enabling conferencing, collaboration, and AV streaming solutions for voice and visual communications. The performance and simplicity of our advanced, comprehensive solutions offer unprecedented levels of functionality, reliability and scalability. Basis of Presentation: The fiscal year for ClearOne is the twelve December 31. These accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are not March 31, 2019 December 31, 2018, three March 31, 2019 2018, three March 31, 2019 2018. three March 31, 2019 2018 not 10 December 31, 2018 Significant Accounting Policies: The significant accounting policies were described in Note 1 10 December 31, 2018. no three March 31, 2019 Recent accounting standard related to Leases: February 2016, 2016 02, 2016 02” 12 2016 02 December 15, 2018, July 2018, No. 2018 11 2016 02 January 1, 2019, first 2019, not $2,966 $3,101 $135 not Accounting Policy related to Leases : 842 March 31, 2019 December 31, 2018, not ROU assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not may Under the available practical expedient, we account for the lease and non-lease components as a single lease component. Other recent accounting pronouncements : no not

Note 2 - Revenue Information

Note 2 - Revenue Information	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	2. The following table disaggregates the Company’s revenue into primary product groups: Three months ended March 31, 2019 Three months ended March 31, 2018 Audio Conferencing $ 2,711 $ 3,659 Microphones 2,106 2,310 Video products 1,488 1,320 $ 6,305 $ 7,289 Three months ended March 31, 2019 Three months ended March 31, 2018 North and South America $ 3,760 $ 4,345 Asia (including Middle East) and Australia 1,864 2,038 Europe and Africa 681 906 $ 6,305 $ 7,289

Note 3 - Earnings (Loss) Per Sh

Note 3 - Earnings (Loss) Per Share	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Earnings Per Share [Text Block]	3. Earnings (loss) per common share is computed based on the weighted-average number of common shares outstanding and, when appropriate, dilutive potential common stock outstanding during the period. Stock options are considered to be potential common stock. The computation of diluted earnings (loss) per share does not Basic earnings (loss) per common share is the amount of net earnings (loss) for the period available to each weighted-average share of common stock outstanding during the reporting period. Diluted earnings (loss) per common share is the amount of earnings (loss) for the period available to each weighted-average share of common stock outstanding during the reporting period and to each share of potential common stock outstanding during the period, unless inclusion of potential common stock would have an anti-dilutive effect. The following table sets forth the computation of basic and diluted earnings (loss) per common share: Three months ended March 31, 2019 2018 Numerator: Net loss $ (2,349 ) $ (1,846 ) Denominator: Basic weighted average shares outstanding 16,630,597 8,307,125 Dilutive common stock equivalents using treasury stock method — — Diluted weighted average shares outstanding 16,630,597 8,307,125 Basic loss per common share $ (0.14 ) $ (0.22 ) Diluted loss per common share $ (0.14 ) $ (0.22 ) Weighted average options outstanding 587,184 748,078 Anti-dilutive options not included in the computations 587,184 748,078

Note 4 - Marketable Securities

Note 4 - Marketable Securities	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	4. The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income (loss) in stockholders’ equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned. The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of securities at March 31, 2019 December 31, 2018 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value March 31, 2019 Available-for-sale securities: Corporate bonds and notes $ 5,465 $ 37 $ (12 ) $ 5,490 Municipal bonds 3,634 6 (7 ) 3,633 Total available-for-sale securities $ 9,099 $ 43 $ (19 ) $ 9,123 December 31, 2018 Available-for-sale securities: Corporate bonds and notes $ 2,911 $ 1 $ (31 ) $ 2,881 Municipal bonds 1,849 — (15 ) 1,834 Total available-for-sale securities $ 4,760 $ 1 $ (46 ) $ 4,715 Maturities of marketable securities classified as available-for-sale securities were as follows at March 31, 2019: Amortized cost Estimated fair value Due within one year $ 2,888 $ 2,888 Due after one year through five years 6,059 6,080 Due after five years 152 155 Total available-for-sale securities $ 9,099 $ 9,123 Debt securities in an unrealized loss position as of March 31, 2019 not not not no 12 12 Less than 12 months More than 12 months Total Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of March 31, 201 9 Corporate bonds and notes $ 104 $ (1 ) $ 5,386 $ (11 ) $ 5,490 $ (12 ) Municipal bonds — — 3,633 (7 ) 3,633 (7 ) Total $ 104 $ (1 ) $ 9,019 $ (18 ) $ 9,123 $ (19 )

Note 5 - Intangible Assets

Note 5 - Intangible Assets	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Business Combinations, Goodwill and Intangibles Disclosure [Text Block]	5. Intangible assets as of March 31, 2019 December 31, 2018 Estimated useful lives (years) March 31, 201 9 December 31, 201 8 Tradename 5 to 7 $ 555 $ 555 Patents and technological know-how 10 14,548 13,377 Proprietary software 3 to 15 2,981 2,981 Other 3 to 5 323 323 Total intangible assets 18,407 17,236 Accumulated amortization (7,305 ) (6,987 ) Total intangible assets, net $ 11,102 $ 10,249 The amortization of intangible assets for the three March 31, 2019 2018 Three months ended March 31, 201 9 201 8 Amortization of intangible assets $ 364 $ 248 The estimated future amortization expense of intangible assets is as follows: Years ending December 31, Amount 2019 (Remainder) $ 940 2020 1,126 2021 1,126 2022 1,126 2023 1,033 Thereafter 5,751 Total 11,102

Note 6 - Inventories

Note 6 - Inventories	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Inventory Disclosure [Text Block]	6. Inventories, net of reserves, as of March 31, 2019 December 31, 2018 March 31, 201 9 December 31, 201 8 Current: Raw materials $ 499 $ 1,795 Finished goods 11,832 11,433 $ 12,331 $ 13,228 Long-term: Raw materials $ 1,947 $ 2,165 Finished goods 6,534 6,788 $ 8,481 $ 8,953 Long-term inventory represents inventory held in excess of our current (next 12 no no Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory during the three March 31, 2019 2018 $185 $255,

Note 7 - Leases and Deferred Re

Note 7 - Leases and Deferred Rent	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	7. Rent expense is recognized on a straight-line basis over the period of the lease taking into account future rent escalation and holiday periods. Rent expense was $171 $246, three March 31, 2019 2018, We occupy a 5,000 February 2021 10 We currently occupy a 21,443 March 2024, five We occupy a 10,700 September 2019, We occupy a 7,070 October 2019. We occupy a 3,068 March 2020. We occupy a 6,175 August 2021. We occupy a 40,000 April 2025, Supplemental cash flow information related to leases was as follows: Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 176 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — Supplemental balance sheet information related to leases was as follows: March 31, 2019 Operating lease right-of-use assets $ 2,818 Current portion of operating lease liabilities, included in accrued liabilities $ 548 Operating lease liabilities, net of current portion 2,406 Total operating lease liabilities 2,954 Weighted average remaining lease term for operating leases 5.3 years Weighted average discount rate for operating leases 6.1% The following represents maturities of operating lease liabilities as of March 31, 2019: Years ending December 31, Remainder of 2019 $ 533 2020 700 2021 646 2022 595 2023 606 Thereafter 375 Total lease payments 3,455 Less: Imputed interest (501 ) Total $ 2,954

Note 8 - Shareholders' Equity

Note 8 - Shareholders' Equity	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	8. Three months ended March 31, 2019 Three months ended March 31, 2018 Common stock Balance, beginning of period $ 17 $ 8 Balance, end of period 17 8 Additional paid-in capital Balance, beginning of period $ 57,840 $ 47,464 Share-based compensation expense 74 137 Proceeds from employee stock purchase plan 9 11 Balance, end of period 57,923 47,612 Accumulated other comprehensive loss Balance, beginning of period $ (181 ) $ (65 ) Unrealized gain (loss) on available-for-sale securities, net of tax 70 (70 ) Foreign currency translation adjustment (26 ) 22 Balance, end of period (137 ) (113 ) Retained earnings (accumulated deficit) Balance, beginning of period $ (5,475 ) $ 9,160 Stock repurchased - (147 ) Cash dividends, $0.07 per share - (583 ) Impact on retained earnings for change in revenue recognition policy - 2,783 Net loss (2,349 ) (1,846 ) Balance, end of period $ (7,824 ) $ 9,367 Total shareholders' equity $ 49,979 $ 56,874

Note 9 - Share-based Compensati

Note 9 - Share-based Compensation	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Shareholders' Equity and Share-based Payments [Text Block]	9. Employee Stock Option Plans The Company’s share-based incentive plans offering stock options are offered under the Company’s 2007 “2007 December 12, 2015. 2007 2,000,000 may may March 31, 2019, 570,523 2007 March 31, 2019, 2007 924,571 A summary of the stock option activity under the Company’s plans for the three March 31, 2019 Number of shares Weighted average exercise price Options outstanding at beginning of year 624,256 $ 8.87 Granted — — Less: Exercised — — Forfeited prior to vesting — — Canceled or expired (53,733 ) 9.49 Options outstanding at March 31, 201 9 570,523 8.81 Options exercisable at end of March 31, 201 9 514,438 $ 8.63 As of March 31, 2019, $191, 1.02 Share-based compensation expense has been recorded as follows: Three months ended March 31, 201 9 201 8 Cost of goods sold $ 2 $ 5 Sales and marketing 1 10 Research and product development 12 30 General and administrative 59 92 $ 74 $ 137

Note 10 - Fair Value Measuremen

Note 10 - Fair Value Measurements	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Fair Value Disclosures [Text Block]	10. The fair value of the Company’s financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset or pay in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following three Level 1 Level 2 not not Level 3 The substantial majority of the Company’s financial instruments are valued using observable inputs. The following table sets forth the fair value of the financial instruments re-measured by the Company as of March 31, 2019 December 31, 2018: Level 1 Level 2 Level 3 Total March 31, 2019 Corporate bonds and notes $ — $ 5,490 $ — $ 5,490 Municipal bonds — 3,633 — 3,633 Total $ — $ 9,123 $ — $ 9,123 December 31, 2018 Corporate bonds and notes $ — $ 2,881 $ — $ 2,881 Municipal bonds — 1,834 — 1,834 Total $ — $ 4,715 $ — $ 4,715

Note 11 - Income Taxes

Note 11 - Income Taxes	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Income Tax Disclosure [Text Block]	11. The current year loss did not not not

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation: The fiscal year for ClearOne is the twelve December 31. These accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are not March 31, 2019 December 31, 2018, three March 31, 2019 2018, three March 31, 2019 2018. three March 31, 2019 2018 not 10 December 31, 2018
New Accounting Pronouncements, Policy [Policy Text Block]	Significant Accounting Policies: The significant accounting policies were described in Note 1 10 December 31, 2018. no three March 31, 2019 Recent accounting standard related to Leases: February 2016, 2016 02, 2016 02” 12 2016 02 December 15, 2018, July 2018, No. 2018 11 2016 02 January 1, 2019, first 2019, not $2,966 $3,101 $135 not Accounting Policy related to Leases : 842 March 31, 2019 December 31, 2018, not ROU assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not may Under the available practical expedient, we account for the lease and non-lease components as a single lease component. Other recent accounting pronouncements : no not

Note 2 - Revenue Information (T

Note 2 - Revenue Information (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three months ended March 31, 2019 Three months ended March 31, 2018 Audio Conferencing $ 2,711 $ 3,659 Microphones 2,106 2,310 Video products 1,488 1,320 $ 6,305 $ 7,289 Three months ended March 31, 2019 Three months ended March 31, 2018 North and South America $ 3,760 $ 4,345 Asia (including Middle East) and Australia 1,864 2,038 Europe and Africa 681 906 $ 6,305 $ 7,289

Note 3 - Earnings (Loss) Per _2

Note 3 - Earnings (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended March 31, 2019 2018 Numerator: Net loss $ (2,349 ) $ (1,846 ) Denominator: Basic weighted average shares outstanding 16,630,597 8,307,125 Dilutive common stock equivalents using treasury stock method — — Diluted weighted average shares outstanding 16,630,597 8,307,125 Basic loss per common share $ (0.14 ) $ (0.22 ) Diluted loss per common share $ (0.14 ) $ (0.22 ) Weighted average options outstanding 587,184 748,078 Anti-dilutive options not included in the computations 587,184 748,078

Note 4 - Marketable Securities

Note 4 - Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]	Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value March 31, 2019 Available-for-sale securities: Corporate bonds and notes $ 5,465 $ 37 $ (12 ) $ 5,490 Municipal bonds 3,634 6 (7 ) 3,633 Total available-for-sale securities $ 9,099 $ 43 $ (19 ) $ 9,123 December 31, 2018 Available-for-sale securities: Corporate bonds and notes $ 2,911 $ 1 $ (31 ) $ 2,881 Municipal bonds 1,849 — (15 ) 1,834 Total available-for-sale securities $ 4,760 $ 1 $ (46 ) $ 4,715
Available-for-sale Securities, Debt Maturities [Table Text Block]	Amortized cost Estimated fair value Due within one year $ 2,888 $ 2,888 Due after one year through five years 6,059 6,080 Due after five years 152 155 Total available-for-sale securities $ 9,099 $ 9,123
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]	Less than 12 months More than 12 months Total Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of March 31, 201 9 Corporate bonds and notes $ 104 $ (1 ) $ 5,386 $ (11 ) $ 5,490 $ (12 ) Municipal bonds — — 3,633 (7 ) 3,633 (7 ) Total $ 104 $ (1 ) $ 9,019 $ (18 ) $ 9,123 $ (19 )

Note 5 - Intangible Assets (Tab

Note 5 - Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]	Estimated useful lives (years) March 31, 201 9 December 31, 201 8 Tradename 5 to 7 $ 555 $ 555 Patents and technological know-how 10 14,548 13,377 Proprietary software 3 to 15 2,981 2,981 Other 3 to 5 323 323 Total intangible assets 18,407 17,236 Accumulated amortization (7,305 ) (6,987 ) Total intangible assets, net $ 11,102 $ 10,249
Finite-lived Intangible Assets Amortization Expense [Table Text Block]	Three months ended March 31, 201 9 201 8 Amortization of intangible assets $ 364 $ 248
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Years ending December 31, Amount 2019 (Remainder) $ 940 2020 1,126 2021 1,126 2022 1,126 2023 1,033 Thereafter 5,751 Total 11,102

Note 6 - Inventories (Tables)

Note 6 - Inventories (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Inventory Current and Noncurrent [Table Text Block]	March 31, 201 9 December 31, 201 8 Current: Raw materials $ 499 $ 1,795 Finished goods 11,832 11,433 $ 12,331 $ 13,228 Long-term: Raw materials $ 1,947 $ 2,165 Finished goods 6,534 6,788 $ 8,481 $ 8,953

Note 7 - Leases and Deferred _2

Note 7 - Leases and Deferred Rent (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Lease, Cost [Table Text Block]	Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 176 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — March 31, 2019 Operating lease right-of-use assets $ 2,818 Current portion of operating lease liabilities, included in accrued liabilities $ 548 Operating lease liabilities, net of current portion 2,406 Total operating lease liabilities 2,954 Weighted average remaining lease term for operating leases 5.3 years Weighted average discount rate for operating leases 6.1%
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	Years ending December 31, Remainder of 2019 $ 533 2020 700 2021 646 2022 595 2023 606 Thereafter 375 Total lease payments 3,455 Less: Imputed interest (501 ) Total $ 2,954

Note 8 - Shareholders' Equity (

Note 8 - Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Stockholders Equity [Table Text Block]	Three months ended March 31, 2019 Three months ended March 31, 2018 Common stock Balance, beginning of period $ 17 $ 8 Balance, end of period 17 8 Additional paid-in capital Balance, beginning of period $ 57,840 $ 47,464 Share-based compensation expense 74 137 Proceeds from employee stock purchase plan 9 11 Balance, end of period 57,923 47,612 Accumulated other comprehensive loss Balance, beginning of period $ (181 ) $ (65 ) Unrealized gain (loss) on available-for-sale securities, net of tax 70 (70 ) Foreign currency translation adjustment (26 ) 22 Balance, end of period (137 ) (113 ) Retained earnings (accumulated deficit) Balance, beginning of period $ (5,475 ) $ 9,160 Stock repurchased - (147 ) Cash dividends, $0.07 per share - (583 ) Impact on retained earnings for change in revenue recognition policy - 2,783 Net loss (2,349 ) (1,846 ) Balance, end of period $ (7,824 ) $ 9,367 Total shareholders' equity $ 49,979 $ 56,874

Note 9 - Share-based Compensa_2

Note 9 - Share-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Share-based Payment Arrangement, Option, Activity [Table Text Block]	Number of shares Weighted average exercise price Options outstanding at beginning of year 624,256 $ 8.87 Granted — — Less: Exercised — — Forfeited prior to vesting — — Canceled or expired (53,733 ) 9.49 Options outstanding at March 31, 201 9 570,523 8.81 Options exercisable at end of March 31, 201 9 514,438 $ 8.63
Share-based Payment Arrangement, Cost by Plan [Table Text Block]	Three months ended March 31, 201 9 201 8 Cost of goods sold $ 2 $ 5 Sales and marketing 1 10 Research and product development 12 30 General and administrative 59 92 $ 74 $ 137

Note 10 - Fair Value Measurem_2

Note 10 - Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Level 1 Level 2 Level 3 Total March 31, 2019 Corporate bonds and notes $ — $ 5,490 $ — $ 5,490 Municipal bonds — 3,633 — 3,633 Total $ — $ 9,123 $ — $ 9,123 December 31, 2018 Corporate bonds and notes $ — $ 2,881 $ — $ 2,881 Municipal bonds — 1,834 — 1,834 Total $ — $ 4,715 $ — $ 4,715

Note 1 - Business Description_2

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating Lease, Right-of-Use Asset	$ 2,818	$ 2,966
Operating Lease, Liability, Total	$ 2,954	3,101
Deferred Rent Credit		$ 135,000

Note 2 - Revenue Information -

Note 2 - Revenue Information - Revenue by Product Group (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue	$ 6,305	$ 7,289
Americas [Member]
Revenue	3,760	4,345
Asia Middle East and Australia [Member]
Revenue	1,864	2,038
Europe and Africa [Member]
Revenue	681	906
Audio Conferencing [Member]
Revenue	2,711	3,659
Microphones [Member]
Revenue	2,106	2,310
Video Products [Member]
Revenue	$ 1,488	$ 1,320

Note 3 - Earnings (Loss) Per _3

Note 3 - Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net loss	$ (2,349)	$ (1,846)
Basic weighted average shares outstanding (in shares)	16,630,597	8,307,125
Dilutive common stock equivalents using treasury stock method (in shares)
Diluted weighted average shares outstanding (in shares)	16,630,597	8,307,125
Basic loss per common share (in dollars per share)	$ (0.14)	$ (0.22)
Diluted loss per common share (in dollars per share)	$ (0.14)	$ (0.22)
Weighted average options outstanding (in shares)	587,184	748,078
Anti-dilutive options not included in the computations (in shares)	587,184	748,078

Note 4 - Marketable Securitie_2

Note 4 - Marketable Securities - Available-for-sale Securities by Major Security Type (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized cost	$ 9,099	$ 4,760
Gross unrealized holding gains	43	1
Gross unrealized holding losses	(19)	(46)
Available-for-sale securities	9,123	4,715
Corporate Debt Securities [Member]
Amortized cost	5,465	2,911
Gross unrealized holding gains	37	1
Gross unrealized holding losses	(12)	(31)
Available-for-sale securities	5,490	2,881
US States and Political Subdivisions Debt Securities [Member]
Amortized cost	3,634	1,849
Gross unrealized holding gains	6
Gross unrealized holding losses	(7)	(15)
Available-for-sale securities	$ 3,633	$ 1,834

Note 4 - Marketable Securitie_3

Note 4 - Marketable Securities - Maturities of Available-for-sale Securities (Details) $ in Thousands	Mar. 31, 2019USD ($)
Due within one year, amortized cost	$ 2,888
Due within one year, estimated fair value	2,888
Due after one year through five years, amortized cost	6,059
Due after one year through five years, estimated fair value	6,080
Due after five years, amortized cost	152
Due after five years, estimated fair value	155
Total available-for-sale securities, amortized cost	9,099
Total available-for-sale securities, estimated fair value	$ 9,123

Note 4 - Marketable Securitie_4

Note 4 - Marketable Securities - Available-for-sale Marketable Securities in Gross Unrealized Loss Position (Details) $ in Thousands	Mar. 31, 2019USD ($)
Estimated fair value, less than 12 months	$ 104
Gross unrealized holding losses, less than 12 months	(1)
Estimated fair value, more than 12 months	9,019
Gross unrealized holding losses, more than 12 months	(18)
Estimated fair value	9,123
Gross unrealized holding losses	(19)
Corporate Debt Securities [Member]
Estimated fair value, less than 12 months	104
Gross unrealized holding losses, less than 12 months	(1)
Estimated fair value, more than 12 months	5,386
Gross unrealized holding losses, more than 12 months	(11)
Estimated fair value	5,490
Gross unrealized holding losses	(12)
US States and Political Subdivisions Debt Securities [Member]
Estimated fair value, less than 12 months
Gross unrealized holding losses, less than 12 months
Estimated fair value, more than 12 months	3,633
Gross unrealized holding losses, more than 12 months	(7)
Estimated fair value	3,633
Gross unrealized holding losses	$ (7)

Note 5 - Intangible Assets - In

Note 5 - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Estimated useful lives (Year)
Intangible assets, gross	$ 18,407	$ 17,236
Accumulated amortization	(7,305)	(6,987)
Total intangible assets, net	$ 11,102	10,249
Minimum [Member]
Estimated useful lives (Year)
Maximum [Member]
Estimated useful lives (Year)
Trade Names [Member]
Intangible assets, gross	$ 555	555
Trade Names [Member] | Minimum [Member]
Estimated useful lives (Year)	5 years
Trade Names [Member] | Maximum [Member]
Estimated useful lives (Year)	7 years
Patents and Technological Know-how [Member]
Estimated useful lives (Year)	10 years
Intangible assets, gross	$ 14,548	13,377
Proprietary Software [Member]
Intangible assets, gross	$ 2,981	2,981
Proprietary Software [Member] | Minimum [Member]
Estimated useful lives (Year)	3 years
Proprietary Software [Member] | Maximum [Member]
Estimated useful lives (Year)	15 years
Other Intangible Assets [Member]
Intangible assets, gross	$ 323	$ 323
Other Intangible Assets [Member] | Minimum [Member]
Estimated useful lives (Year)	3 years
Other Intangible Assets [Member] | Maximum [Member]
Estimated useful lives (Year)	5 years

Note 5 - Intangible Assets - Sc

Note 5 - Intangible Assets - Schedule of Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Amortization of intangible assets	$ 364	$ 248

Note 5 - Intangible Assets - Es

Note 5 - Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
2019 (Remainder)	$ 940
2020	1,126
2021	1,126
2022	1,126
2023	1,033
Thereafter	5,751
Total intangible assets, net	$ 11,102	$ 10,249

Note 6 - Inventories (Details T

Note 6 - Inventories (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Inventory Write-down	$ 185	$ 255

Note 6 - Inventories - Inventor

Note 6 - Inventories - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Raw materials	$ 499	$ 1,795
Finished goods	11,832	11,433
Total current inventory	12,331	13,228
Raw materials	1,947	2,165
Finished goods	6,534	6,788
Total long-term inventory	$ 8,481	$ 8,953

Note 7 - Leases and Deferred _3

Note 7 - Leases and Deferred Rent (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)ft²	Mar. 31, 2018USD ($)
Operating Lease, Expense | $	$ 171	$ 246
Facility in Gainesville [Member]
Area of Real Estate Property	5,000
Lessee, Operating Lease, Renewal Term	10 years
Facility in Salt Lake City [Member]
Area of Real Estate Property	21,443
Lessee, Operating Lease, Renewal Term	5 years
Warehouse in Shenzhen, China [Member]
Area of Real Estate Property	10,700
Facility in Austin, Texas [Member[
Area of Real Estate Property	7,070
Facility in Zaragoza, Spain [Member]
Area of Real Estate Property	3,068
Facility in Chennai, India [Member]
Area of Real Estate Property	6,175
Warehouse in Salt Lake City, Utah [Member]
Area of Real Estate Property	40,000

Note 7 - Leases and Deferred _4

Note 7 - Leases and Deferred Rent - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating cash flows from operating leases	$ 176
Operating leases
Operating Lease, Right-of-Use Asset	2,818	$ 2,966
Current portion of operating lease liabilities, included in accrued liabilities	548
Operating lease liabilities, net of current portion	2,406
Total operating lease liabilities	$ 2,954	$ 3,101
Weighted average remaining lease term for operating leases (Year)	5 years 109 days
Weighted average discount rate for operating leases	6.10%

Note 7 - Leases and Deferred _5

Note 7 - Leases and Deferred Rent - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Remainder of 2019	$ 533
2020	700
2021	646
2022	595
2023	606
Thereafter	375
Total lease payments	3,455
Less: Imputed interest	(501)
Operating Lease, Liability, Total	$ 2,954	$ 3,101

Note 8 - Shareholders' Equity -

Note 8 - Shareholders' Equity - Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Balance, beginning of period	$ 52,201
Balance, end of period	49,979	$ 56,874
Foreign currency translation adjustment	(27)	22
Net loss	(2,349)	(1,846)
Total shareholders' equity	49,979	56,874	$ 49,979	$ 56,874
Common Stock [Member]
Balance, beginning of period	17	8
Balance, end of period	17	8
Total shareholders' equity	17	8	17	8
Additional Paid-in Capital [Member]
Balance, beginning of period	57,840	47,464
Balance, end of period	57,923	47,612
Share-based compensation expense	74	137
Proceeds from employee stock purchase plan	9	11
Total shareholders' equity	57,840	47,464	57,923	47,612
AOCI Attributable to Parent [Member]
Balance, beginning of period	(181)	(65)
Balance, end of period	(137)	(113)
Unrealized gain (loss) on available-for-sale securities, net of tax	70	(70)
Foreign currency translation adjustment	(26)	22
Total shareholders' equity	(181)	(65)	(137)	(113)
Retained Earnings [Member]
Balance, beginning of period	(5,475)	9,160
Balance, end of period	(7,824)	9,367
Stock repurchased		(147)
Cash dividends, $0.07 per share		(583)
Impact on retained earnings for change in revenue recognition policy				2,783
Net loss	(2,349)	(1,846)
Total shareholders' equity	$ (5,475)	$ 9,160	$ (7,824)	$ 9,367

Note 8 - Shareholders' Equity_2

Note 8 - Shareholders' Equity - Shareholders' Equity (Details) (Parentheticals)	3 Months Ended
	Mar. 31, 2018$ / shares
Retained Earnings [Member]
Cash dividends, per share (in dollars per share)	$ 0.07

Note 9 - Share-based Compensa_3

Note 9 - Share-based Compensation (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Dec. 12, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	570,523	624,256
The 2007 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			2,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	570,523
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares, Authorized and Unissued	924,571
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount	$ 191
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	1 year 7 days

Note 9 - Share-based Compensa_4

Note 9 - Share-based Compensation - Stock Option Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Options outstanding at beginning of year (in shares)	624,256
Options outstanding at beginning of year (in dollars per share)	$ 8.87
Number of shares, granted (in shares)
Weighted average exercise price, granted (in dollars per share)
Number of shares, exercised (in shares)
Weighted average exercise price, exercised (in dollars per share)
Number of shares, forfeited prior to vesting (in shares)
Weighted average exercise price, forfeited prior to vesting (in dollars per share)
Number of shares, canceled or expired (in shares)	(53,733)
Weighted average exercise price, canceled or expired (in dollars per share)	$ 9.49
Options outstanding at March 31, 2019 (in shares)	570,523	624,256
Options outstanding at March 31, 2019 (in dollars per share)	$ 8.81	$ 8.87
Options exercisable at end of March 31, 2019 (in shares)	514,438
Options exercisable at end of March 31, 2019 (in dollars per share)	$ 8.63

Note 9 - Share-based Compensa_5

Note 9 - Share-based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based compensation expense	$ 74	$ 137
Cost of Sales [Member]
Share-based compensation expense	2	5
Selling and Marketing Expense [Member]
Share-based compensation expense	1	10
Research and Development Expense [Member]
Share-based compensation expense	12	30
General and Administrative Expense [Member]
Share-based compensation expense	$ 59	$ 92

Note 10 - Fair Value Measurem_3

Note 10 - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Available-for-sale securities	$ 9,123	$ 4,715
Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities
Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities	9,123	4,715
Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities
Corporate Debt Securities [Member]
Available-for-sale securities	5,490	2,881
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities	5,490	2,881
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities
US States and Political Subdivisions Debt Securities [Member]
Available-for-sale securities	3,633	1,834
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities	3,633	1,834
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities