ClearOne (CLRO) 10-Q 16 Nov 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 16, 2020
Document and Entity Information [Abstract]
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)		18,771,257
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, $0.001
Security Exchange Name	NASDAQ

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 5,583	$ 4,064
Marketable securities	1,622	3,026
Receivables, net of allowance for doubtful accounts of $506 and $424, respectively	6,705	5,468
Inventories, net	7,838	11,441
Prepaid expenses and other assets	2,183	1,184
Total current assets	23,931	25,183
Long-term marketable securities	1,391	1,517
Long-term inventories, net	6,283	6,284
Property and equipment, net	995	1,044
Operating lease - right of use assets, net	2,082	2,459
Intangibles, net	18,494	14,009
Other assets	4,596	4,614
Total assets	57,772	55,110
Current liabilities:
Accounts payable	4,355	2,871
Accrued liabilities	3,405	3,205
Deferred product revenue	159	173
Short-term debt	395
Total current liabilities	8,314	6,249
Long-term debt	3,474	2,222
Operating lease liability, net of current	1,623	2,021
Other long-term liabilities	111	140
Total liabilities	13,522	10,632
Shareholders' equity:
Common stock, par value $0.001, 50,000,000 shares authorized, 18,771,257 and 16,650,725 shares issued and outstanding	19	17
Additional paid-in capital	63,348	58,520
Accumulated other comprehensive loss	(190)	(176)
Accumulated deficit	(18,927)	(13,883)
Total shareholders' equity	44,250	44,478
Total liabilities and shareholders' equity	$ 57,772	$ 55,110

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 506	$ 424
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)	18,771,257	16,650,725
Common stock, shares outstanding (in shares)	18,771,257	16,650,725

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenue	$ 8,412	$ 5,992	$ 20,503	$ 18,717
Cost of goods sold	4,892	3,455	11,527	10,537
Gross profit	3,520	2,537	8,976	8,180
Operating expenses:
Sales and marketing	1,736	1,907	4,932	6,121
Research and product development	1,501	1,428	4,319	4,322
General and administrative	1,443	1,300	4,475	4,330
Total operating expenses	4,680	4,635	13,726	14,773
Operating loss	(1,160)	(2,098)	(4,750)	(6,593)
Interest expense	(108)		(325)
Other income, net	19	142	70	235
Loss before income taxes	(1,249)	(1,956)	(5,005)	(6,358)
Provision for income taxes	11	20	39	65
Net loss	$ (1,260)	$ (1,976)	$ (5,044)	$ (6,423)
Basic weighted average shares outstanding (in shares)	17,000,215	16,646,323	16,768,088	16,635,954
Diluted weighted average shares outstanding (in shares)	17,000,215	16,646,323	16,768,088	16,635,954
Basic loss per share (in dollars per share)	$ (0.07)	$ (0.12)	$ (0.30)	$ (0.39)
Diluted loss per share (in dollars per share)	$ (0.07)	$ (0.12)	$ (0.30)	$ (0.39)
Comprehensive loss:
Net loss	$ (1,260)	$ (1,976)	$ (5,044)	$ (6,423)
Unrealized gain/(loss) on available-for-sale securities, net of tax	4	(78)	11	76
Change in foreign currency translation adjustment	17	(50)	(25)	(67)
Comprehensive loss	$ (1,239)	$ (2,104)	$ (5,058)	$ (6,414)

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (5,044)	$ (6,423)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	1,682	1,449
Amortization of right-of-use assets	417	419
Stock-based compensation expense	55	177
Provision for doubtful accounts, net	82	78
Change of inventory to net realizable value	937	537
Changes in operating assets and liabilities:
Receivables	(1,319)	368
Inventories	2,667	2,812
Prepaid expenses and other assets	(985)	(4,186)
Accounts payable	1,484	(1,994)
Accrued liabilities	179	863
Income taxes payable		359
Deferred product revenue	(14)	(56)
Operating lease liabilities	(421)	(973)
Other long-term liabilities	(29)
Net cash used in operating activities	(309)	(6,570)
Cash flows from investing activities:
Purchase of property and equipment	(266)	(106)
Purchase of intangibles	(140)	(43)
Capitalized patent defense costs	(5,565)	(3,371)
Proceeds from maturities and sales of marketable securities	3,697	9,823
Purchases of marketable securities	(2,155)	(8,913)
Net cash used in investing activities	(4,429)	(2,610)
Cash flows from financing activities:
Issuance of common stock and warrants	4,764
Net proceeds from Paycheck Protection Program loan	1,499
Net proceeds from equity-based compensation programs	11	20
Net cash provided by financing activities	6,274	20
Effect of exchange rate changes on cash and cash equivalents	(17)	(41)
Net increase (decrease) in cash and cash equivalents	1,519	(9,201)
Cash and cash equivalents at the beginning of the period	4,064	11,211
Cash and cash equivalents at the end of the period	5,583	2,010
Supplemental cash flow activities:
Cash paid for income taxes	23	1
Cash paid for interest	$ 189

Business Description, Basis of

Business Description, Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Business Description, Basis of Presentation and Significant Accounting Policies
Business Description, Basis of Presentation and Significant Accounting Policies	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 audited. Certain information and footnote disclosures that are usually included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been either condensed or omitted in accordance with SEC rules and regulations. The accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of September 30, 2020 December 31, 2019 three and nine September 30, 2020 2019 nine months ended September 30, 2020 2019 three and nine September 30, 2020 2019 are not necessarily indicative of the results for a full-year period. These interim unaudited condensed consolidated financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC. Significant Accounting Policies: The significant accounting policies were described in Note 1 December 31, 2019 nine months ended September 30, 2020 Recent accounting pronouncements: material impact on its consolidated financial position, results of operations or cash flows. Liquidity: As of September 30, 2020 5,583 4,064 as of December 31, 2019 $ 15,617 as of September 30, 2020 309 for the nine months ended September 30, 2020 a decrease of $ 6,261 6,570 of cash used in operating activities in the nine months ended September 30, 2019 We are currently pursuing all available legal remedies to defend our strategic patents from infringement. We have already spent approximately $ 19,157 2016 September 30, 2020 towards this litigation and may be required to spend more to continue our legal defense. We believe the decision by the U.S. District Court in August 2019 granting our request for a preliminary injunction to prevent our competitor from manufacturing, marketing, and selling its competing ceiling microphone array in an infringing configuration is an incredibly valuable ruling for from further infringing our Graham patent (U.S. Patent No. 9,813,806 harm inflicted by our competitor's infringement of our valuable patents. We have been actively engaged in preserving cash by suspending our dividend program and allowing our share repurchase program to expire in 2018 and implementing company-wide cost reduction measures. We have also raised additional capital in 2018 by issuing common stock, in 2019 by issuing senior convertible notes and in 2020 by borrowing through Paycheck Protection Program and issuing common stock and warrants. In addition, we expect to generate additional cash as our inventory levels are brought down to historical levels. We also believe that the measures taken by us will yield higher revenues in the future. We believe, although there can be no assurance, that all of these measures and effective management of working capital will provide the liquidity needed to meet our operating needs through at least November 16, 2021. We also believe that our strong portfolio of intellectual property and our solid brand equity in the market will enable us to raise additional capital if and when needed to meet our short and long-term financing needs; however, there can be no assurance that, if needed, we will be successful in obtaining the necessary funds through equity or debt financing. If we need additional capital and are unable to secure financing, we may be required to further reduce expenses, delay product development and enhancement, or revise our strategy regarding ongoing litigation.

Revenue Information

Revenue Information	9 Months Ended
	Sep. 30, 2020
Revenue Information
Revenue Information	2 The following table disaggregates the Company’s revenue into primary product groups: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Audio conferencing $ 2,766 $ 2,920 $ 8,201 $ 8,520 Microphones 2,435 2,189 6,469 6,525 Video products 3,211 883 5,833 3,672 $ 8,412 $ 5,992 $ 20,503 $ 18,717 The following table disaggregates the Company’s revenue into major regions: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 North and South America $ 6,215 $ 3,235 $ 13,570 $ 10,488 Asia (including Middle East) and Australia 1,149 1,931 4,145 5,764 Europe and Africa 1,048 826 2,788 2,465 $ 8,412 $ 5,992 $ 20,503 $ 18,717

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2020
Earnings (Loss) Per Share
Earnings (Loss) Per Share	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 assume exercise or conversion of securities that would have an anti-dilutive effect. 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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Numerator: Net loss $ ( 1,260 ) $ ( 1,976 ) $ ( 5,044 ) $ ( 6,423 ) De nominato Basic weighted average shares outstanding 17,000,215 16,646,323 16,768,088 16,635,954 Dilutive — — — — Diluted weighted average shares outstanding 17,000,215 16,646,323 16,768,088 16,635,954 Basic loss per common share $ ( 0.07 ) $ ( 0.12 ) $ ( 0.30 ) $ ( 0.39 ) Diluted loss per common share $ ( 0.07 ) $ ( 0.12 ) $ ( 0.30 ) $ ( 0.39 ) Weighted average options outstanding 511,332 561,634 528,107 572,845 Anti-dilutive options not included in the computations 511,332 561,634 528,107 572,845

Marketable Securities

Marketable Securities	9 Months Ended
	Sep. 30, 2020
Marketable Securities
Marketable Securities	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 September 30, 2020 December 31, 2019 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value September 30, 2020 Available-for-sale securities: Corporate bonds and notes $ 1,714 $ 32 $ ( 5 ) $ 1,741 Municipal bonds 1,266 6 — 1,272 Total available-for-sale securities $ 2,980 $ 38 $ ( 5 ) $ 3,013 December 31, 2019 Available-for-sale securities: Corporate bonds and notes $ 1,814 $ 21 $ ( 3 ) $ 1,832 Municipal bonds 2,707 5 ( 1 ) 2,711 Total available-for-sale securities $ 4,521 $ 26 $ ( 4 ) $ 4,543 Maturities of marketable securities classified as available-for-sale securities were as follows at September 30, 2020 Amortized cost Estimated fair value Due within one $ 1,610 $ 1,622 Due after one five 1,370 1,391 Due after five — — Total available-for-sale securities $ 2,980 $ 3,013 Debt securities in an unrealized loss position as of September 30, 2020 12 12 Less than 12 More than 12 Total Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of September 30, 2020 Corporate bonds and notes $ 192 $ 5 $ — $ — $ 192 $ 5 Municipal bonds — — — — — — Total $ 192 $ 5 $ — $ — $ 192 $ 5

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2020
Intangible Assets
Intangible Assets	5 Intangible assets as of September 30, 2020 December 31, 2019 Estimated useful lives (years) September 30, 2020 December 31, 2019 Tradename 5 to 7 $ 555 $ 555 Patents and technological know-how 10 to 20 24,199 18,494 Proprietary software 3 to 15 2,981 2,981 Other 3 to 5 323 323 Total intangible assets 28,058 22,353 Accumulated amortization ( 9,564 ) ( 8,344 ) Total intangible assets, net $ 18,494 $ 14,009 The amortization of intangible assets for the three months ended September 30, 2020 and 2019 was as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Amortization of intangible assets $ 446 $ 354 $ 1,220 $ 1,054 The estimated future amortization expense of intangible assets is as follows: Years ending December 31, Amount 2020 $ 464 2021 1,858 2022 1,858 2023 1,851 2024 1,587 Thereafter 10,876 Total 18,494

Inventories

Inventories	9 Months Ended
	Sep. 30, 2020
Inventories
Inventories	6 Inventories, net of reserves, as of September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Current: Raw materials $ 737 $ 847 Finished goods 7,101 10,594 $ 7,838 $ 11,441 Long-term: Raw materials $ 2,751 $ 1,915 Finished goods 3,532 4,369 $ 6,283 $ 6,284 Long-term inventory represents inventory held in excess of our current (next 12 Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory for the three months ended September 30, 2020 and 2019 was as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory $ 277 $ 168 $ 937 $ 537

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases
Leases	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 for the three months ended September 30, 2020 and 2019 was as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Rent expense $ 175 $ 147 $ 534 $ 510 W e occup y a 1,350 2023 . The Gainesville facility is used primarily to support our research and development activities. We occupy a 21,443 2024 five We occupy a 950 22 . This facility support s We occupy a 3,068 square-foot facility in Zaragoza, Spain under the terms of an operating lease expiring in March 2022. We occupy a 6,175 s We occupy a 40,000 Supplemental cash flow information related to leases was as follows: Nine months ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 537 $ 504 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 97 $ — Supplemental balance sheet information related to leases was as follows: September 30, 2020 December 31, 2019 Operating lease right-of-use assets $ 2,082 $ 2,459 Current portion of operating lease liabilities, included in accrued liabilities $ 594 $ 577 Operating lease liabilities, net of current portion 1,623 2,021 Total operating lease liabilities $ 2,217 $ 2,598 Weighted average remaining lease term for operating leases (in years) 3.8 4.4 Weighted average discount rate for operating leases 6.1 % 6.1 % The following represents maturities of operating lease liabilities as of September 30, 2020 Years ending December 31, 2020 $ 182 2021 689 2022 634 2023 610 2024 306 Thereafter 69 Total lease payments 2,490 Less: Imputed interest ( 273 ) Total $ 2,217

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2020
Shareholders' Equity
Shareholders' Equity	8 Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Common stock and additional paid-in capital Balance, beginning of period $ 58,597 $ 58,002 $ 58,537 $ 57,857 Issue of common stock and warrants 4,764 — 4,764 — Share-based compensation expense 1 48 55 177 Proceeds from employee stock purchase plan 5 4 11 20 Balance, end of period $ 63,367 $ 58,054 $ 63,367 $ 58,054 Accumulated other comprehensive loss Balance, beginning of period $ ( 211 ) $ ( 44 ) $ ( 176 ) $ ( 181 ) Unrealized gain (loss) on available-for-sale securities, net of tax 4 ( 78 ) 11 76 Foreign currency translation adjustment 17 ( 50 ) ( 25 ) ( 67 ) Balance, end of period $ ( 190 ) $ ( 172 ) $ ( 190 ) $ ( 172 ) Accumulated deficit Balance, beginning of period $ ( 17,667 ) $ ( 9,922 ) $ ( 13,883 ) $ ( 5,475 ) Net loss ( 1,260 ) ( 1,976 ) ( 5,044 ) ( 6,423 ) Balance, end of period $ ( 18,927 ) $ ( 11,898 ) $ ( 18,927 ) $ ( 11,898 ) Total shareholders' equity $ 44,250 $ 45,984 $ 44,250 $ 45,984

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2020
Long-Term Debt
Long-Term Debt	9 Senior Convertible Notes and Warrants On December 17, 2019, the Company completed the issuance and sale of $ 3,000 340,909 0.001 46.6 The Notes will mature on December 17, 2023 (the “Maturity Date”) and will accrue interest at a variable rate adjusted on a quarterly basis and equal to two one 2.5 five one 5.25 Prime Rate 2.11 120 90 200 The Warrants have an initial exercise price equal to $ 1.76 Concurrent with the issuance of the Notes and Warrants pursuant to the Note Purchase Agreement, the Company, the Guarantors and Mr. Bagley entered into a Guaranty and Collateral Agreement (the “Collateral Agreement”) pursuant to which the Company and the Guarantors granted Mr. Bagley a first priority lien interest in all of the Company’s assets as security for the Company’s performance of its obligations under the Notes and Warrants. The net proceeds after original issue discount and issuance costs of $ 346 2,654 In accounting for the issuance of the Notes, the Company separated Notes and Warrants into liability and equity components. The carrying amount of Warrants, being an equity component, was first calculated using Black-Scholes method with the following assumptions: Risk-free interest rate 1.82 Expected life of warrants (years) 7 Expected price volatility 49.94 Expected dividend yield 0 % The carrying amount of the Notes was then determined by deducting the fair value of the Warrants from the principal amount of the Notes. The carrying amount of the Notes was further separated into equity and liability components after separating the value of the conversion feature into an equity component and leaving the remaining value as liability. The equity component is not remeasured while the Notes and Warrants continue to meet the conditions for equity classification for equity components. The original issue discount and issuance costs are netted against the liability. The following table represents the carrying value of Notes and Warrants: September 30, 2020 December 31, 2019 Liability component: Principal $ 3,000 $ 3,000 Less: debt discount and issuance costs, net of amortization ( 630 ) ( 778 ) Net carrying amount $ 2,370 $ 2,222 Equity component ( 1 Warrants $ 318 $ 318 Conversion feature 122 122 Net carrying amount $ 440 $ 440 ( 1 Recorded on the condensed consolidated balance sheets as additional paid-in capital. Debt discount and issuance costs are amortized over the life of the note to interest expense using the effective interest method. During the three and nine September 30, 2020 50 148 September 30, 2020 Year ending December 31, Principal Amount Maturing 2020 $ — 2021 360 2022 720 2023 1,920 Total principal amount $ 3,000 Paycheck Protection Program Loan On April 18, 2020, the Company, entered into a loan agreement with U.S. Bank National Association Bank, which provided for a loan in the principal amount of $ 1,499 two 1.0 sixteen The PPP Loan may be prepaid at any time prior to maturity with no prepayment penalties. The PPP Loan contains events of default and other provisions customary for a loan of this type. The Paycheck Protection Program provides that the Loans may be partially or wholly forgiven if the funds are used for certain qualifying expenses as described in the CARES Act. The Company intends to use the entire PPP Loan amount for qualifying expenses and to apply for forgiveness of the PPP Loan in accordance with the terms of the CARES Act.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Fair Value Measurements	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 - Quoted prices in active markets for identical assets and liabilities. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. This category generally includes U.S. Government and agency securities; municipal securities; mutual funds and securities sold and not yet settled. Level 3 - Unobservable inputs. 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 September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total September 30, 2020 Corporate bonds and notes $ — $ 1,741 $ — $ 1,741 Municipal bonds — 1,272 — 1,272 Total $ — $ 3,013 $ — $ 3,013 December 31, 2019 Corporate bonds and notes $ — $ 1,832 $ — $ 1,832 Municipal bonds — 2,711 — 2,711 Total $ — $ 4,543 $ — $ 4,543

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Taxes
Income Taxes	11 The current year loss did not result in income tax benefit due to recording a full valuation allowance against expected benefits. The valuation allowance was recorded as we concluded that it was more likely than not that our deferred tax assets were not realizable primarily due to the Company's recent pre-tax losses. Provision for income taxes for the nine months ended September 30, 2020

Subsequent events

Subsequent events	9 Months Ended
	Sep. 30, 2020
Subsequent events
Subsequent events	12 None.

Business Description, Basis o_2

Business Description, Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Business Description, Basis of Presentation and Significant Accounting Policies
Basis of Presentation:	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 audited. Certain information and footnote disclosures that are usually included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been either condensed or omitted in accordance with SEC rules and regulations. The accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of September 30, 2020 December 31, 2019 three and nine September 30, 2020 2019 nine months ended September 30, 2020 2019 three and nine September 30, 2020 2019 are not necessarily indicative of the results for a full-year period. These interim unaudited condensed consolidated financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC.
Significant Accounting Policies:	Significant Accounting Policies: The significant accounting policies were described in Note 1 December 31, 2019 nine months ended September 30, 2020 Recent accounting pronouncements: material impact on its consolidated financial position, results of operations or cash flows.
Liquidity:	Liquidity: As of September 30, 2020 5,583 4,064 as of December 31, 2019 $ 15,617 as of September 30, 2020 309 for the nine months ended September 30, 2020 a decrease of $ 6,261 6,570 of cash used in operating activities in the nine months ended September 30, 2019 We are currently pursuing all available legal remedies to defend our strategic patents from infringement. We have already spent approximately $ 19,157 2016 September 30, 2020 towards this litigation and may be required to spend more to continue our legal defense. We believe the decision by the U.S. District Court in August 2019 granting our request for a preliminary injunction to prevent our competitor from manufacturing, marketing, and selling its competing ceiling microphone array in an infringing configuration is an incredibly valuable ruling for from further infringing our Graham patent (U.S. Patent No. 9,813,806 harm inflicted by our competitor's infringement of our valuable patents. We have been actively engaged in preserving cash by suspending our dividend program and allowing our share repurchase program to expire in 2018 and implementing company-wide cost reduction measures. We have also raised additional capital in 2018 by issuing common stock, in 2019 by issuing senior convertible notes and in 2020 by borrowing through Paycheck Protection Program and issuing common stock and warrants. In addition, we expect to generate additional cash as our inventory levels are brought down to historical levels. We also believe that the measures taken by us will yield higher revenues in the future. We believe, although there can be no assurance, that all of these measures and effective management of working capital will provide the liquidity needed to meet our operating needs through at least November 16, 2021. We also believe that our strong portfolio of intellectual property and our solid brand equity in the market will enable us to raise additional capital if and when needed to meet our short and long-term financing needs; however, there can be no assurance that, if needed, we will be successful in obtaining the necessary funds through equity or debt financing. If we need additional capital and are unable to secure financing, we may be required to further reduce expenses, delay product development and enhancement, or revise our strategy regarding ongoing litigation.

Revenue Information (Tables)

Revenue Information (Tables)	9 Months Ended
	Sep. 30, 2020
Revenue Information
Schedule disaggregates the Company’s revenue into primary product groups and major regions	Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Audio conferencing $ 2,766 $ 2,920 $ 8,201 $ 8,520 Microphones 2,435 2,189 6,469 6,525 Video products 3,211 883 5,833 3,672 $ 8,412 $ 5,992 $ 20,503 $ 18,717 Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 North and South America $ 6,215 $ 3,235 $ 13,570 $ 10,488 Asia (including Middle East) and Australia 1,149 1,931 4,145 5,764 Europe and Africa 1,048 826 2,788 2,465 $ 8,412 $ 5,992 $ 20,503 $ 18,717

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings (Loss) Per Share
Schedule of the computation of basic and diluted earnings (loss) per common share	Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Numerator: Net loss $ ( 1,260 ) $ ( 1,976 ) $ ( 5,044 ) $ ( 6,423 ) De nominato Basic weighted average shares outstanding 17,000,215 16,646,323 16,768,088 16,635,954 Dilutive — — — — Diluted weighted average shares outstanding 17,000,215 16,646,323 16,768,088 16,635,954 Basic loss per common share $ ( 0.07 ) $ ( 0.12 ) $ ( 0.30 ) $ ( 0.39 ) Diluted loss per common share $ ( 0.07 ) $ ( 0.12 ) $ ( 0.30 ) $ ( 0.39 ) Weighted average options outstanding 511,332 561,634 528,107 572,845 Anti-dilutive options not included in the computations 511,332 561,634 528,107 572,845

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2020
Marketable Securities
Schedule of 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 security	Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value September 30, 2020 Available-for-sale securities: Corporate bonds and notes $ 1,714 $ 32 $ ( 5 ) $ 1,741 Municipal bonds 1,266 6 — 1,272 Total available-for-sale securities $ 2,980 $ 38 $ ( 5 ) $ 3,013 December 31, 2019 Available-for-sale securities: Corporate bonds and notes $ 1,814 $ 21 $ ( 3 ) $ 1,832 Municipal bonds 2,707 5 ( 1 ) 2,711 Total available-for-sale securities $ 4,521 $ 26 $ ( 4 ) $ 4,543
Schedule of maturities of marketable securities classified as available-for-sale securities	Amortized cost Estimated fair value Due within one $ 1,610 $ 1,622 Due after one five 1,370 1,391 Due after five — — Total available-for-sale securities $ 2,980 $ 3,013
Schedule of available-for-sale marketable securities in a gross unrealized loss position	Less than 12 More than 12 Total Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of September 30, 2020 Corporate bonds and notes $ 192 $ 5 $ — $ — $ 192 $ 5 Municipal bonds — — — — — — Total $ 192 $ 5 $ — $ — $ 192 $ 5

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Intangible Assets
Schedule of intangible assets and estimated useful lives	Estimated useful lives (years) September 30, 2020 December 31, 2019 Tradename 5 to 7 $ 555 $ 555 Patents and technological know-how 10 to 20 24,199 18,494 Proprietary software 3 to 15 2,981 2,981 Other 3 to 5 323 323 Total intangible assets 28,058 22,353 Accumulated amortization ( 9,564 ) ( 8,344 ) Total intangible assets, net $ 18,494 $ 14,009
Schedule of amortization of intangible assets	Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Amortization of intangible assets $ 446 $ 354 $ 1,220 $ 1,054
Schedule of estimated future amortization expense of intangible assets	Years ending December 31, Amount 2020 $ 464 2021 1,858 2022 1,858 2023 1,851 2024 1,587 Thereafter 10,876 Total 18,494

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2020
Inventories
Schedule of Inventories, net of reserves	September 30, 2020 December 31, 2019 Current: Raw materials $ 737 $ 847 Finished goods 7,101 10,594 $ 7,838 $ 11,441 Long-term: Raw materials $ 2,751 $ 1,915 Finished goods 3,532 4,369 $ 6,283 $ 6,284
Schedule of net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory	Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory $ 277 $ 168 $ 937 $ 537

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases
Schedule of rent expense	Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Rent expense $ 175 $ 147 $ 534 $ 510
Schedule of supplemental cash flow and balance sheet information related to leases	Nine months ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 537 $ 504 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 97 $ — September 30, 2020 December 31, 2019 Operating lease right-of-use assets $ 2,082 $ 2,459 Current portion of operating lease liabilities, included in accrued liabilities $ 594 $ 577 Operating lease liabilities, net of current portion 1,623 2,021 Total operating lease liabilities $ 2,217 $ 2,598 Weighted average remaining lease term for operating leases (in years) 3.8 4.4 Weighted average discount rate for operating leases 6.1 % 6.1 %
Schedule of maturities of operating lease liabilities	Years ending December 31, 2020 $ 182 2021 689 2022 634 2023 610 2024 306 Thereafter 69 Total lease payments 2,490 Less: Imputed interest ( 273 ) Total $ 2,217

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2020
Shareholders' Equity
Schedule of changes in stockholders' equity	Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Common stock and additional paid-in capital Balance, beginning of period $ 58,597 $ 58,002 $ 58,537 $ 57,857 Issue of common stock and warrants 4,764 — 4,764 — Share-based compensation expense 1 48 55 177 Proceeds from employee stock purchase plan 5 4 11 20 Balance, end of period $ 63,367 $ 58,054 $ 63,367 $ 58,054 Accumulated other comprehensive loss Balance, beginning of period $ ( 211 ) $ ( 44 ) $ ( 176 ) $ ( 181 ) Unrealized gain (loss) on available-for-sale securities, net of tax 4 ( 78 ) 11 76 Foreign currency translation adjustment 17 ( 50 ) ( 25 ) ( 67 ) Balance, end of period $ ( 190 ) $ ( 172 ) $ ( 190 ) $ ( 172 ) Accumulated deficit Balance, beginning of period $ ( 17,667 ) $ ( 9,922 ) $ ( 13,883 ) $ ( 5,475 ) Net loss ( 1,260 ) ( 1,976 ) ( 5,044 ) ( 6,423 ) Balance, end of period $ ( 18,927 ) $ ( 11,898 ) $ ( 18,927 ) $ ( 11,898 ) Total shareholders' equity $ 44,250 $ 45,984 $ 44,250 $ 45,984

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2020
Long-Term Debt
Schedule of Warrants, Valuation assumptions, Black-Scholes method	Risk-free interest rate 1.82 Expected life of warrants (years) 7 Expected price volatility 49.94 Expected dividend yield 0 %
Schedule of carrying value of Notes and Warrants	September 30, 2020 December 31, 2019 Liability component: Principal $ 3,000 $ 3,000 Less: debt discount and issuance costs, net of amortization ( 630 ) ( 778 ) Net carrying amount $ 2,370 $ 2,222 Equity component ( 1 Warrants $ 318 $ 318 Conversion feature 122 122 Net carrying amount $ 440 $ 440
Schedule of maturities of principal amount contained in the Notes	Year ending December 31, Principal Amount Maturing 2020 $ — 2021 360 2022 720 2023 1,920 Total principal amount $ 3,000

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Schedule of fair value of the financial instruments	Level 1 Level 2 Level 3 Total September 30, 2020 Corporate bonds and notes $ — $ 1,741 $ — $ 1,741 Municipal bonds — 1,272 — 1,272 Total $ — $ 3,013 $ — $ 3,013 December 31, 2019 Corporate bonds and notes $ — $ 1,832 $ — $ 1,832 Municipal bonds — 2,711 — 2,711 Total $ — $ 4,543 $ — $ 4,543

Business Description, Basis o_3

Business Description, Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	9 Months Ended		57 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Cash and cash equivalents	$ 5,583	$ 2,010	$ 5,583	$ 4,064	$ 11,211
Working capital	15,617		15,617
Net cash used in operating activities	309	$ 6,570
Increase of cash used in operating activities	$ 6,261
Litigation for Intellectual Property Infringement [Member]
Loss Contingencies [Line Items]
Litigation settlement expense			$ 19,157

Revenue Information - Revenue i

Revenue Information - Revenue into Primary Product Groups and Major Regions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue [Line Items]
Revenue	$ 8,412	$ 5,992	$ 20,503	$ 18,717
North and South America [Member]
Revenue [Line Items]
Revenue	6,215	3,235	13,570	10,488
Asia (including Middle East) and Australia [Member]
Revenue [Line Items]
Revenue	1,149	1,931	4,145	5,764
Europe and Africa [Member]
Revenue [Line Items]
Revenue	1,048	826	2,788	2,465
Audio conferencing [Member]
Revenue [Line Items]
Revenue	2,766	2,920	8,201	8,520
Microphones [Member]
Revenue [Line Items]
Revenue	2,435	2,189	6,469	6,525
Video products [Member]
Revenue [Line Items]
Revenue	$ 3,211	$ 883	$ 5,833	$ 3,672

Earnings (Loss) Per Share - Com

Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings (Loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings (Loss) Per Share
Net loss	$ (1,260)	$ (1,976)	$ (5,044)	$ (6,423)
Basic weighted average shares outstanding (in shares)	17,000,215	16,646,323	16,768,088	16,635,954
Dilutive common stock equivalents using treasury stock method (in shares)
Diluted weighted average shares outstanding (in shares)	17,000,215	16,646,323	16,768,088	16,635,954
Basic loss per common share (in dollars per share)	$ (0.07)	$ (0.12)	$ (0.30)	$ (0.39)
Diluted loss per common share (in dollars per share)	$ (0.07)	$ (0.12)	$ (0.30)	$ (0.39)
Weighted average options outstanding (in shares)	511,332	561,634	528,107	572,845
Anti-dilutive options not included in the computations (in shares)	511,332	561,634	528,107	572,845

Marketable Securities - Availab

Marketable Securities - Available-for-sale Securities by Major Security Type (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Marketable Securities [Line Items]
Amortized cost	$ 2,980	$ 4,521
Gross unrealized holding gains	38	26
Gross unrealized holding losses	(5)	(4)
Estimated fair value	3,013	4,543
Corporate bonds and notes [Member]
Marketable Securities [Line Items]
Amortized cost	1,714	1,814
Gross unrealized holding gains	32	21
Gross unrealized holding losses	(5)	(3)
Estimated fair value	1,741	1,832
Municipal bonds [Member]
Marketable Securities [Line Items]
Amortized cost	1,266	2,707
Gross unrealized holding gains	6	5
Gross unrealized holding losses		(1)
Estimated fair value	$ 1,272	$ 2,711

Marketable Securities - Maturit

Marketable Securities - Maturities of Available-for-sale Securities (Details) $ in Thousands	Sep. 30, 2020USD ($)
Marketable Securities
Due within one year, amortized cost	$ 1,610
Due within one year, estimated fair value	1,622
Due after one year through five years, amortized cost	1,370
Due after one year through five years, estimated fair value	1,391
Due after five years, amortized cost
Due after five years, estimated fair value
Total available-for-sale securities, amortized cost	2,980
Total available-for-sale securities, estimated fair value	$ 3,013

Marketable Securities - Avail_2

Marketable Securities - Available-for-sale Marketable Securities in Gross Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2020USD ($)
Marketable Securities [Line Items]
Estimated fair value, less than 12 months	$ 192
Gross unrealized holding losses, less than 12 months	5
Estimated fair value, more than 12 months
Gross unrealized holding losses, more than 12 months
Estimated fair value	192
Gross unrealized holding losses	5
Corporate bonds and notes [Member]
Marketable Securities [Line Items]
Estimated fair value, less than 12 months	192
Gross unrealized holding losses, less than 12 months	5
Estimated fair value, more than 12 months
Gross unrealized holding losses, more than 12 months
Estimated fair value	192
Gross unrealized holding losses	5
Municipal bonds [Member]
Marketable Securities [Line Items]
Estimated fair value, less than 12 months
Gross unrealized holding losses, less than 12 months
Estimated fair value, more than 12 months
Gross unrealized holding losses, more than 12 months
Estimated fair value
Gross unrealized holding losses

Intangible Assets - Intangible

Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 28,058	$ 22,353
Accumulated amortization	(9,564)	(8,344)
Total intangible assets, net	18,494	14,009
Tradename [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 555	555
Tradename [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives (in years)	5 years
Tradename [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives (in years)	7 years
Patents and technological know-how [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 24,199	18,494
Patents and technological know-how [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives (in years)	10 years
Patents and technological know-how [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives (in years)	20 years
Proprietary software [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 2,981	2,981
Proprietary software [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives (in years)	3 years
Proprietary software [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives (in years)	15 years
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 323	$ 323
Other [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives (in years)	3 years
Other [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives (in years)	5 years

Intangible Assets - Amortizatio

Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Intangible Assets
Amortization of intangible assets	$ 446	$ 354	$ 1,220	$ 1,054

Intangible Assets - Estimated F

Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Intangible Assets
2020 (Remainder)	$ 464
2021	1,858
2022	1,858
2023	1,851
2024	1,587
Thereafter	10,876
Total intangible assets, net	$ 18,494	$ 14,009

Inventories - Inventories, Net

Inventories - Inventories, Net of Reserves (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventories
Raw materials	$ 737	$ 847
Finished goods	7,101	10,594
Total current inventory	7,838	11,441
Raw materials	2,751	1,915
Finished goods	3,532	4,369
Total long-term inventory	$ 6,283	$ 6,284

Inventories - Net loss incurred

Inventories - Net loss incurred on valuation of inventory (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Inventories
Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory	$ 277	$ 168	$ 937	$ 537

Leases (Details Textual)

Leases (Details Textual)	Sep. 30, 2020ft²
Facility to support, research and development activity [Member] | Gainesville, Florida [Member]
Leases
Area of real estate property	1,350
Facility to support, principal administrative, sales, marketing, customer support, and research and product development activity [Member] | Salt Lake City, Utah [Member]
Leases
Area of real estate property	21,443
Lessee, Operating Lease, Renewal Term	5 years
Facility to support, principal administrative, sales, marketing, customer support, and research and product development activity [Member] | Austin, Texas [Member]
Leases
Area of real estate property	950
Facility to support, principal administrative, sales, marketing, customer support, and research and product development activity [Member] | Zaragoza, Spain [Member]
Leases
Area of real estate property	3,068
Facility to support, principal administrative, sales, marketing, customer support, and research and product development activity [Member] | Chennai, India [Member]
Leases
Area of real estate property	6,175
Warehouse to support, primary inventory fulfillment and repair center [Member] | Salt Lake City, Utah [Member]
Leases
Area of real estate property	40,000

Leases - Rent Expense (Details)

Leases - Rent Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases
Rent expense	$ 175	$ 147	$ 534	$ 510

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 537	$ 504
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 97

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases
Operating lease right-of-use assets	$ 2,082	$ 2,459
Current portion of operating lease liabilities, included in accrued liabilities	594	577
Operating lease liabilities, net of current portion	1,623	2,021
Total operating lease liabilities	$ 2,217	$ 2,598
Weighted average remaining lease term for operating leases (in years)	3 years 9 months 18 days	4 years 4 months 24 days
Weighted average discount rate for operating leases	6.10%	6.10%

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases
2020 (Remainder)	$ 182
2021	689
2022	634
2023	610
2024	306
Thereafter	69
Total lease payments	2,490
Less: Imputed interest	(273)
Total	$ 2,217	$ 2,598

Shareholders' Equity - Sharehol

Shareholders' Equity - Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Balance, beginning of period			$ 44,478
Foreign currency translation adjustment	$ 17	$ (50)	(25)	$ (67)
Net loss	(1,260)	(1,976)	(5,044)	(6,423)
Balance, end of period	44,250	45,984	44,250	45,984
Common stock and additional paid-in capital [Member]
Balance, beginning of period	58,597	58,002	58,537	57,857
Issue of common stock and warrants	4,764		4,764
Share-based compensation expense	1	48	55	177
Proceeds from employee stock purchase plan	5	4	11	20
Balance, end of period	63,367	58,054	63,367	58,054
Accumulated other comprehensive loss [Member]
Balance, beginning of period	(211)	(44)	(176)	(181)
Unrealized gain (loss) on available-for-sale securities, net of tax	4	(78)	11	76
Foreign currency translation adjustment	17	(50)	(25)	(67)
Balance, end of period	(190)	(172)	(190)	(172)
Accumulated deficit [Member]
Balance, beginning of period	(17,667)	(9,922)	(13,883)	(5,475)
Net loss	(1,260)	(1,976)	(5,044)	(6,423)
Balance, end of period	$ (18,927)	$ (11,898)	$ (18,927)	$ (11,898)

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual) $ / shares in Units, $ in Thousands	Apr. 18, 2020USD ($)	Dec. 17, 2019USD ($)d$ / sharesshares	Sep. 30, 2020USD ($)$ / shares	Sep. 30, 2020USD ($)$ / shares	Sep. 30, 2019USD ($)	Dec. 31, 2019$ / shares
Senior Convertible Notes and Warrants
Common stock, par value | $ / shares			$ 0.001	$ 0.001		$ 0.001
Proceeds of the Loan				$ 1,499
Common Stock | Beneficial owner
Senior Convertible Notes and Warrants
Beneficial owner of the Company’s issued and outstanding shares of Common Stock		46.60%
Senior Convertible Notes and Warrants
Senior Convertible Notes and Warrants
Issuance and sale of secured convertible notes		$ 3,000
Original issue discount and issuance costs		346
Net proceeds after original issue discount and issuance costs		$ 2,654
Amortization of debt discount and issuance costs			$ 50	$ 148
Senior Convertible Notes and Warrants | Common Stock
Senior Convertible Notes and Warrants
Warrants to purchase of common stock, shares | shares		340,909
Common stock, par value | $ / shares		$ 0.001
Senior Convertible Notes
Senior Convertible Notes and Warrants
Interest accrual at a variable rate adjusted on a quarterly basis, percent		2.50%
Published in the Wall Street Journal (New York edition) as of the beginning of such calendar quarter		Prime Rate
Senior Convertible Notes | Greater of
Senior Convertible Notes and Warrants
Interest accrual at a variable rate adjusted on a quarterly basis, percent		5.25%
Senior Convertible Notes | Common Stock
Senior Convertible Notes and Warrants
Senior Convertible Notes, Initial conversion price per share | $ / shares		$ 2.11
Senior Convertible Notes, Threshold percentage of stock price trigger		120.00%
Senior Convertible Notes, Threshold consecutive trading days | d		90
Senior Convertible Notes | Common Stock | Greater of
Senior Convertible Notes and Warrants
Senior Convertible Notes, Threshold percentage of stock price trigger		200.00%
Warrants | Common Stock
Senior Convertible Notes and Warrants
Warrants, Initial exercise price per share | $ / shares		$ 1.76
Paycheck Protection Program Loan
Senior Convertible Notes and Warrants
Proceeds of the Loan	$ 1,499
Loan term	2 years
Interest rate of the loan	1.00%

Long-Term Debt (Schedule Of War

Long-Term Debt (Schedule Of Warrants Valuation Assumptions) (Details)	Sep. 30, 2020
Risk-free interest rate
Warrants, Valuation assumptions, Black-Scholes method
Warrants, assumptions rate	1.82%
Expected life of Warrants
Warrants, Valuation assumptions, Black-Scholes method
Expected life of Warrants (years)	7 years
Expected price volatility
Warrants, Valuation assumptions, Black-Scholes method
Warrants, assumptions rate	49.94%
Expected dividend yield
Warrants, Valuation assumptions, Black-Scholes method
Warrants, assumptions rate	0.00%

Long-Term Debt (Schedule of car

Long-Term Debt (Schedule of carrying value of Notes and Warrants) (Details) - USD ($) $ in Thousands		Sep. 30, 2020	Dec. 31, 2019
Liability component:
Principal		$ 3,000	$ 3,000
Less: debt discount and issuance costs, net of amortization		(630)	(778)
Net carrying amount		2,370	2,222
Equity component:
Warrants	[1]	318	318
Conversion feature	[1]	122	122
Net carrying amount	[1]	$ 440	$ 440
[1]	Recorded on the condensed consolidated balance sheets as additional paid-in capital.

Long-Term Debt (Schedule of mat

Long-Term Debt (Schedule of maturities of principal amount contained in the Notes) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Senior Convertible Notes, Principal Amount Maturing
2020
2021	360
2022	720
2023	1,920
Total principal amount	$ 3,000	$ 3,000

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value Measurements
Total	$ 3,013	$ 4,543
Level 1 [Member]
Fair Value Measurements
Total
Level 2 [Member]
Fair Value Measurements
Total	3,013	4,543
Level 3 [Member]
Fair Value Measurements
Total
Corporate bonds and notes [Member]
Fair Value Measurements
Total	1,741	1,832
Corporate bonds and notes [Member] | Level 1 [Member]
Fair Value Measurements
Total
Corporate bonds and notes [Member] | Level 2 [Member]
Fair Value Measurements
Total	1,741	1,832
Corporate bonds and notes [Member] | Level 3 [Member]
Fair Value Measurements
Total
Municipal bonds [Member]
Fair Value Measurements
Total	1,272	2,711
Municipal bonds [Member] | Level 1 [Member]
Fair Value Measurements
Total
Municipal bonds [Member] | Level 2 [Member]
Fair Value Measurements
Total	1,272	2,711
Municipal bonds [Member] | Level 3 [Member]
Fair Value Measurements
Total