ClearOne (CLRO) 10-Q 10 Aug 21 2021 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Aug. 10, 2021
Document and Entity Information [Abstract]
Entity Registrant Name	CLEARONE INC
Entity Central Index Key	0000840715
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)		18,779,781
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, $0.001
Trading Symbol	clro
Security Exchange Name	NASDAQ
Entity File Number	001-33660
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	5225 Wiley Post Way, Suite 500
Entity Address, City or Town	Salt Lake City
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84116
Entity Tax Identification Number	87-0398877
City Area Code	(801)
Local Phone Number	975-7200
Document Quarterly Report	true
Document Transition Report	false

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 2,088	$ 3,803
Marketable securities	969	1,117
Receivables, net of allowance for doubtful accounts of $506	5,305	5,194
Inventories, net	9,203	10,463
Income tax receivable	7,220	7,169
Prepaid expenses and other assets	1,273	1,536
Total current assets	26,058	29,282
Long-term marketable securities	1,028	1,762
Long-term inventories, net	3,979	4,590
Property and equipment, net	753	906
Operating lease - right of use assets, net	1,645	1,936
Intangibles, net	21,547	19,248
Other assets	4,600	4,599
Total assets	59,610	62,323
Current liabilities:
Accounts payable	4,046	3,950
Accrued liabilities	3,162	2,352
Deferred product revenue	56	123
Short-term debt	1,227	672
Total current liabilities	8,491	7,097
Long-term debt, net	2,609	3,245
Operating lease liability, net of current	1,214	1,489
Other long-term liabilities	678	678
Total liabilities	12,992	12,509
Shareholders' equity:
Common stock, par value $0.001, 50,000,000 shares authorized, 18,779,781 shares issued and outstanding	19	19
Additional paid-in capital	63,431	63,359
Accumulated other comprehensive loss	(213)	(186)
Accumulated deficit	(16,619)	(13,378)
Total shareholders' equity	46,618	49,814
Total liabilities and shareholders' equity	$ 59,610	$ 62,323

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 506	$ 506
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)	18,779,781	18,779,781
Common stock, shares outstanding (in shares)	18,779,781	18,779,781

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenue	$ 7,735	$ 6,357	$ 14,773	$ 12,091
Cost of goods sold	4,311	3,739	8,346	6,635
Gross profit	3,424	2,618	6,427	5,456
Operating expenses:
Sales and marketing	1,755	1,457	3,328	3,196
Research and product development	1,487	1,474	2,761	2,818
General and administrative	1,668	1,526	3,348	3,032
Total operating expenses	4,910	4,457	9,437	9,046
Operating loss	(1,486)	(1,839)	(3,010)	(3,590)
Interest expense	(107)	(109)	(219)	(217)
Other income (expense), net	15	16	10	51
Loss before income taxes	(1,578)	(1,932)	(3,219)	(3,756)
Provision for income taxes	8	5	22	28
Net loss	$ (1,586)	$ (1,937)	$ (3,241)	$ (3,784)
Basic weighted average shares outstanding (in shares)	18,775,817	16,650,774	18,775,795	16,650,750
Diluted weighted average shares outstanding (in shares)	18,775,817	16,650,774	18,775,795	16,650,750
Basic loss per share (in dollars per share)	$ (0.08)	$ (0.12)	$ (0.17)	$ (0.23)
Diluted loss per share (in dollars per share)	$ (0.08)	$ (0.12)	$ (0.17)	$ (0.23)
Comprehensive loss:
Net loss	$ (1,586)	$ (1,937)	$ (3,241)	$ (3,784)
Unrealized loss on available-for-sale securities, net of tax	(3)	30	(5)	7
Change in foreign currency translation adjustment	(10)	(8)	(22)	(42)
Comprehensive loss	$ (1,599)	$ (1,915)	$ (3,268)	$ (3,819)

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss	$ (3,241)	$ (3,784)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense	1,330	1,082
Amortization of right-of-use assets	291	273
Stock-based compensation expense	65	54
Provision for doubtful accounts, net		31
Change of inventory to net realizable value	682	660
Changes in operating assets and liabilities:
Receivables	(111)	(358)
Inventories	1,189	2,331
Prepaid expenses and other assets	261	238
Accounts payable	96	302
Accrued liabilities	842	(443)
Income taxes payable	(51)	6
Deferred product revenue	(67)	26
Operating lease liabilities	(301)	(276)
Other long-term liabilities		(29)
Net cash provided by (used in) operating activities	985	113
Cash flows from investing activities:
Purchase of property and equipment	(25)	(218)
Purchase of intangibles	(147)	(114)
Capitalized patent defense costs	(3,206)	(3,792)
Proceeds from maturities and sales of marketable securities	1,394	2,482
Purchases of marketable securities	(517)	(1,903)
Net cash used in investing activities	(2,501)	(3,545)
Cash flows from financing activities:
Net proceeds from Paycheck Protection Program loan		1,499
Net proceeds from equity-based compensation programs	7	6
Principal payments of long-term debt	(180)
Net cash provided by (used in) financing activities	(173)	1,505
Effect of exchange rate changes on cash and cash equivalents	(26)	(31)
Net decrease in cash and cash equivalents	(1,715)	(1,958)
Cash and cash equivalents at the beginning of the period	3,803	4,064
Cash and cash equivalents at the end of the period	2,088	2,106
Supplemental cash flow activities:
Cash paid for income taxes	74	12
Cash paid for interest	$ 106	$ 134

Business Description, Basis of

Business Description, Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Business Description, Basis of Presentation and Significant Accounting Policies
Business Description, Basis of Presentation and Significant Accounting Policies	1. Business Description, Basis of Presentation and Significant Accounting Policies 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 months ending on 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 June 30, 2021 and December 31, 2020, the results of operations for the three and six months ended June 30, 2021 three and six months ended June 30, 2021 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, 2020 filed with the SEC. Significant Accounting Policies: The significant accounting policies were described in Note 1 to the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. There have been no changes to these policies during the six months ended June 30, 2021 that are of significance or potential significance to the Company. Recent accounting pronouncements: material impact on its consolidated financial position, results of operations or cash flows. Liquidity: As of June 30, 2021 as of $17,567 as of June 30, 2021 for the an increase of $872 of cash provided by operating activities in the We are currently pursuing all available legal remedies to defend our strategic patents from infringement. We have already spent approximately $23,559 from June 30, 2021 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. harm inflicted by our competitor's infringement of our valuable patents. For more information about our intellectual property litigation, See Note 8. Commitments and Contingencies - Legal Proceedings, in our annual report on Form 10-K for the year ended December 31, 2020 and Part II, Item 1. Legal Proceedings in this quarterly report. 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 2019 by issuing senior convertible notes and in 2020 by borrowing through the CARES Act 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 August 10, 2022. 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	6 Months Ended
	Jun. 30, 2021
Revenue Information
Revenue Information	2 The following table disaggregates the Company’s revenue into primary product groups: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Audio conferencing $ 3,096 $ 2,648 $ 5,931 $ 5,435 Microphones 3,218 1,891 5,568 4,034 Video products 1,421 1,818 3,274 2,622 $ 7,735 $ 6,357 $ 14,773 $ 12,091 The following table disaggregates the Company’s revenue into major regions: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 North and South America $ 3,640 $ 4,003 $ 7,164 $ 7,355 Asia (including Middle East) and Australia 1,797 1,580 4,023 2,996 Europe and Africa 2,298 774 3,586 1,740 $ 7,735 $ 6,357 $ 14,773 $ 12,091

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 2021
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 June 30, Six months ended June 30, 2021 2020 2021 2020 Numerator: Net loss $ (1,586 ) $ (1,937 ) $ (3,241 ) $ (3,784 ) Denominator: Basic weighted average shares outstanding 18,775,817 16,650,774 18,775,795 16,650,750 Dilutive common stock equivalents using treasury stock method — — — — Diluted weighted average shares outstanding 18,775,817 16,650,774 18,775,795 16,650,750 Basic loss per common share $ (0.08 ) $ (0.12 ) $ (0.17 ) $ (0.23 ) Diluted loss per common share $ (0.08 ) $ (0.12 ) $ (0.17 ) $ (0.23 ) Weighted average options, warrants and convertible portion of senior convertible notes outstanding 3,597,418 542,196 3,616,661 542,507 Anti-dilutive options, warrants and convertible portion of senior convertible notes not included in the computation 3,597,148 542,196 3,616,661 542,507

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2021
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 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 June 30, 2021 and December 31, 2020 were as follows: Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value June 30, 2021 Available-for-sale securities: Corporate bonds and notes $ 1,007 $ 19 $ — $ 1,026 Municipal bonds 969 2 — 971 Total available-for-sale securities $ 1,976 $ 21 $ — $ 1,997 December 31, 2020 Available-for-sale securities: Corporate bonds and notes $ 1,312 $ 26 $ — $ 1,338 Municipal bonds 1,536 5 — 1,541 Total available-for-sale securities $ 2,848 $ 31 $ — $ 2,879 Maturities of marketable securities classified as available-for-sale securities were as follows at June 30, 2021: Amortized cost Estimated fair value Due within one year $ 959 $ 969 Due after one year through five years 1,017 1,028 Due after five years — — Total available-for-sale securities $ 1,976 $ 1,997 Debt securities in an unrealized loss position as of June 30, 2021 were not deemed impaired at acquisition and subsequent declines in fair value are not deemed attributed to declines in credit quality. Management believes that it is more likely than not that the securities will receive a full recovery of par value, although there can be no assurance that such recovery will occur. There were no available-for-sale marketable securities with gross unrealized loss position.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2021
Intangible Assets
Intangible Assets	5 Intangible assets as of June 30, 2021 and December 31, 2020 consisted of the following: Estimated useful lives (years) June 30, 2021 December 31, 2020 Tradename 5 to 7 $ 555 $ 555 Patents and technological know-how 10 to 20 28,780 25,427 Proprietary software 3 to 15 2,981 2,981 Other 3 to 5 323 323 Total intangible assets 32,639 29,286 Accumulated amortization (11,092 ) (10,038 ) Total intangible assets, net $ 21,547 $ 19,248 The amortization of intangible assets for the three months ended June 30, 2021 and 2020 was as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Amortization of intangible assets $ 543 $ 406 $ 1,054 $ 774 The estimated future amortization expense of intangible assets is as follows: Years ending December 31, Amount 2021 (Remainder) $ 1,123 2022 2,246 2023 2,239 2024 1,975 2025 1,914 Thereafter 12,050 Total 21,547

Inventories

Inventories	6 Months Ended
	Jun. 30, 2021
Inventories
Inventories	6 Inventories, net of reserves, as of June 30, 2021 and December 31, 2020 consisted of the following: June 30, 2021 December 31, 2020 Current: Raw materials $ 1,090 $ 1,182 Finished goods 8,113 9,281 $ 9,203 $ 10,463 Long-term: Raw materials $ 2,237 $ 1,977 Finished goods 1,742 2,613 $ 3,979 $ 4,590 Long-term inventory represents inventory held in excess of our current (next 12 months) requirements based on our recent sales and forecasted level of sales. We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that no loss will be incurred on its sale, although there can be no assurance of the timing or amount of any sales. Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory for the three and six months ended June 30, 2021 and 2020 was as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory $ 307 $ 459 $ 682 $ 660

Leases

Leases	6 Months Ended
	Jun. 30, 2021
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 and six months ended June 30, 2021 and 2020 was as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Rent expense $ 175 $ 172 $ 359 $ 359 W e occup y a 1,350 square-foot facility in Gainesville, Florida under the terms of an operating lease expiring in F . The Gainesville facility is used primarily to support our research and development activities. We occupy a 21,443 2024 five years 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: Six months ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (360 ) $ (356 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 97 Supplemental balance sheet information related to leases was as follows: June 30, 2021 December 31, 2020 Operating lease right-of-use assets $ 1,645 $ 1,936 Current portion of operating lease liabilities, included in accrued liabilities $ 554 $ 579 Operating lease liabilities, net of current portion 1,214 1,489 Total operating lease liabilities $ 1,768 $ 2,068 Weighted average remaining lease term for operating leases (in years) 3.12 3.54 Weighted average discount rate for operating leases 6.1 % 6.1 % The following represents maturities of operating lease liabilities as of June 30, 2021: Years ending December 31, 2021 (Remainder) $ 329 2022 634 2023 610 2024 307 2025 69 Thereafter — Total lease payments 1,949 Less: Imputed interest 181 Total $ 1,768

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2021
Shareholders' Equity
Shareholders' Equity	8 Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Common stock and additional paid-in capital Balance, beginning of period $ 63,413 $ 58,577 $ 63,378 $ 58,537 Share-based compensation expense 34 17 65 54 Proceeds from employee stock purchase plan 3 3 7 6 Balance, end of period $ 63,450 $ 58,597 $ 63,450 $ 58,597 Accumulated other comprehensive loss Balance, beginning of period $ (200 ) $ (233 ) $ (186 ) $ (176 ) Unrealized loss on available-for-sale securities, net of tax (3 ) 30 (5 ) 7 Foreign currency translation adjustment (10 ) (8 ) (22 ) (42 ) Balance, end of period $ (213 ) $ (211 ) $ (213 ) $ (211 ) Accumulated deficit Balance, beginning of period $ (15,033 ) $ (15,730 ) $ (13,378 ) $ (13,883 ) Net loss (1,586 ) (1,937 ) (3,241 ) (3,784 ) Balance, end of period $ (16,619 ) $ (17,667 ) $ (16,619 ) $ (17,667 ) Total shareholders' equity $ 46,618 $ 40,719 $ 46,618 $ 40,719

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2021
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 aggregate principal amount of secured convertible notes of the Company (the “Notes”) and warrants (the “Warrants”) to purchase 340,909 shares of common stock, par value $0.001 per share of the Company (the “Common Stock”), in a private placement transaction. The Notes and Warrants were issued and sold to Edward D. Bagley, an affiliate of the Company, on the terms and conditions of a Note Purchase Agreement dated December 8, 2019 between the Company, certain subsidiary guarantors of the Company, and Mr. Bagley. Mr. Bagley is an affiliate of the Company and was the beneficial owner of approximately 46.6% of the Company’s issued and outstanding shares of Common Stock at the time that the Notes and Warrants were issued to him. 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 and one-half percent (2.5%) over the greater of (x) five and one-quarter percent (5.25%) and (y) the Prime Rate as published in the Wall Street Journal (New York edition) as of the beginning of such calendar quarter. The Notes may be converted into shares of the Company’s Common Stock at any time at the election of Mr. Bagley at an initial conversion price of $2.11 per share (the “Conversion Price”), or 120% of the closing price of the Common Stock on December 6, 2019 as reported on the Nasdaq Capital Market. Also, the Company can cause a mandatory conversion of the Notes if the volume weighted average closing price of the Common Stock over 90 consecutive trading days exceeds 200% of the Conversion Price. In addition, the Notes may be redeemed by the Company for cash at any time after December 17, 2020 upon payment of the outstanding principal balance of the Notes and any unpaid and accrued interest. The Company also is required to redeem the Notes upon the occurrence of a change in control of the Company. The Warrants have an initial exercise price equal to $1.76, the closing price of the Common Stock on December 6, 2019 as reported on the Nasdaq Capital Market, and are exercisable until December 17, 2026. The Warrants must be exercised for cash, unless at the time of exercise there is not a then effective registration statement for the resale of the shares of Common Stock issuable upon exercise of the Warrants, in which case the Warrants may be exercised via a cashless exercise feature that provides for net settlement of the shares of Common Stock issuable upon exercise. 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 were approximately $2,654. The Company expects to use the proceeds from the sale of the Notes and Warrants for general corporate purposes and working capital. 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 The original issue discount and issuance costs are netted against the liability. The following table represents the carrying value of Notes and Warrants: June 30, 2021 December 31, 2020 Liability component: Principal $ 2,820 $ 3,000 Less: debt discount and issuance costs, net of amortization (483 ) (581 ) Net carrying amount $ 2,337 $ 2,419 Equity component (1) Warrants $ 318 $ 318 Conversion feature 122 122 Net carrying amount $ 440 $ 440 Current portion of liability component included under short-term debt $ 540 $ 360 Long-term portion of liability component included under long-term debt 1,797 2,059 Liability component total $ 2,337 $ 2,419 (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 six months ended June 30, 2021, amortization of debt discount and issuance costs was $49 and $98 , respectively and for the three and six months ended June 30, 2020, amortization of debt discount and issuance costs was $49 and $98, respectively. Year ending December 31, Principal Amount Maturing 2021 (Remainder) $ 180 2022 720 2023 1,920 2024 — Total principal amount $ 2,820 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 (“PPP Loan”) pursuant to the Paycheck Protection Program under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The PPP Loan has a two 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. June 30, 2021 December 31, 2020 Current portion of the PPP Loan included under short-term debt $ 687 $ 312 Long-term portion of the PPP Loan included under long-term debt 812 1,187 Liability component total $ 1,499 $ 1,499

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2021
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 levels: 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 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 June 30, 2021 and December 31, 2020: Level 1 Level 2 Level 3 Total June 30, 2021 Corporate bonds and notes $ — $ 1,026 $ — $ 1,026 Municipal bonds — 971 — 971 Total $ — $ 1,997 $ — $ 1,997 December 31, 2020 Corporate bonds and notes $ — $ 1,338 $ — $ 1,338 Municipal bonds — 1,541 — 1,541 Total $ — $ 2,879 $ — $ 2,879

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
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 six months ended June 30, 2021 represents income tax expense recorded for jurisdictions outside the United States.

Subsequent events

Subsequent events	6 Months Ended
	Jun. 30, 2021
Subsequent events
Subsequent events	12 On July 2, 2021, the Company obtained a bridge loan in the principal amount of $2,000,000 from Edward D. Bagley (the “Bridge Loan”). Mr. Bagley is an affiliate of the C ompany and i s the beneficial owner of approximately 46.7 % of the Company’s issued and outstanding shares of c ommon s tock. The Note bears , 2021 or (ii) within two business days of the Company’s receipt of its expected U.S. federal income tax refund, and contains other customary covenants and even ts of default .

Business Description, Basis o_2

Business Description, Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Business Description, Basis of Presentation and Significant Accounting Policies
Basis of Presentation:	Basis of Presentation: The fiscal year for ClearOne is the twelve months ending on 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 June 30, 2021 and December 31, 2020, the results of operations for the three and six months ended June 30, 2021 three and six months ended June 30, 2021 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, 2020 filed with the SEC.
Significant Accounting Policies:	Significant Accounting Policies: The significant accounting policies were described in Note 1 to the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. There have been no changes to these policies during the six months ended June 30, 2021 that are of significance or potential significance to the Company. Recent accounting pronouncements: material impact on its consolidated financial position, results of operations or cash flows.
Liquidity:	Liquidity: As of June 30, 2021 as of $17,567 as of June 30, 2021 for the an increase of $872 of cash provided by operating activities in the We are currently pursuing all available legal remedies to defend our strategic patents from infringement. We have already spent approximately $23,559 from June 30, 2021 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. harm inflicted by our competitor's infringement of our valuable patents. For more information about our intellectual property litigation, See Note 8. Commitments and Contingencies - Legal Proceedings, in our annual report on Form 10-K for the year ended December 31, 2020 and Part II, Item 1. Legal Proceedings in this quarterly report. 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 2019 by issuing senior convertible notes and in 2020 by borrowing through the CARES Act 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 August 10, 2022. 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)	6 Months Ended
	Jun. 30, 2021
Revenue Information
Schedule disaggregates the Company’s revenue into primary product groups and major regions	Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Audio conferencing $ 3,096 $ 2,648 $ 5,931 $ 5,435 Microphones 3,218 1,891 5,568 4,034 Video products 1,421 1,818 3,274 2,622 $ 7,735 $ 6,357 $ 14,773 $ 12,091 Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 North and South America $ 3,640 $ 4,003 $ 7,164 $ 7,355 Asia (including Middle East) and Australia 1,797 1,580 4,023 2,996 Europe and Africa 2,298 774 3,586 1,740 $ 7,735 $ 6,357 $ 14,773 $ 12,091

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings (Loss) Per Share
Schedule of the computation of basic and diluted earnings (loss) per common share	Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Numerator: Net loss $ (1,586 ) $ (1,937 ) $ (3,241 ) $ (3,784 ) Denominator: Basic weighted average shares outstanding 18,775,817 16,650,774 18,775,795 16,650,750 Dilutive common stock equivalents using treasury stock method — — — — Diluted weighted average shares outstanding 18,775,817 16,650,774 18,775,795 16,650,750 Basic loss per common share $ (0.08 ) $ (0.12 ) $ (0.17 ) $ (0.23 ) Diluted loss per common share $ (0.08 ) $ (0.12 ) $ (0.17 ) $ (0.23 ) Weighted average options, warrants and convertible portion of senior convertible notes outstanding 3,597,418 542,196 3,616,661 542,507 Anti-dilutive options, warrants and convertible portion of senior convertible notes not included in the computation 3,597,148 542,196 3,616,661 542,507

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2021
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 June 30, 2021 Available-for-sale securities: Corporate bonds and notes $ 1,007 $ 19 $ — $ 1,026 Municipal bonds 969 2 — 971 Total available-for-sale securities $ 1,976 $ 21 $ — $ 1,997 December 31, 2020 Available-for-sale securities: Corporate bonds and notes $ 1,312 $ 26 $ — $ 1,338 Municipal bonds 1,536 5 — 1,541 Total available-for-sale securities $ 2,848 $ 31 $ — $ 2,879
Schedule of maturities of marketable securities classified as available-for-sale securities	Amortized cost Estimated fair value Due within one year $ 959 $ 969 Due after one year through five years 1,017 1,028 Due after five years — — Total available-for-sale securities $ 1,976 $ 1,997

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2021
Intangible Assets
Schedule of intangible assets and estimated useful lives	Estimated useful lives (years) June 30, 2021 December 31, 2020 Tradename 5 to 7 $ 555 $ 555 Patents and technological know-how 10 to 20 28,780 25,427 Proprietary software 3 to 15 2,981 2,981 Other 3 to 5 323 323 Total intangible assets 32,639 29,286 Accumulated amortization (11,092 ) (10,038 ) Total intangible assets, net $ 21,547 $ 19,248
Schedule of amortization of intangible assets	Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Amortization of intangible assets $ 543 $ 406 $ 1,054 $ 774
Schedule of estimated future amortization expense of intangible assets	Years ending December 31, Amount 2021 (Remainder) $ 1,123 2022 2,246 2023 2,239 2024 1,975 2025 1,914 Thereafter 12,050 Total 21,547

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2021
Inventories
Schedule of Inventories, net of reserves	June 30, 2021 December 31, 2020 Current: Raw materials $ 1,090 $ 1,182 Finished goods 8,113 9,281 $ 9,203 $ 10,463 Long-term: Raw materials $ 2,237 $ 1,977 Finished goods 1,742 2,613 $ 3,979 $ 4,590
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 June 30, Six months ended June 30, 2021 2020 2021 2020 Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory $ 307 $ 459 $ 682 $ 660

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2021
Leases
Schedule of rent expense	Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Rent expense $ 175 $ 172 $ 359 $ 359
Schedule of supplemental cash flow and balance sheet information related to leases	Six months ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (360 ) $ (356 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 97 June 30, 2021 December 31, 2020 Operating lease right-of-use assets $ 1,645 $ 1,936 Current portion of operating lease liabilities, included in accrued liabilities $ 554 $ 579 Operating lease liabilities, net of current portion 1,214 1,489 Total operating lease liabilities $ 1,768 $ 2,068 Weighted average remaining lease term for operating leases (in years) 3.12 3.54 Weighted average discount rate for operating leases 6.1 % 6.1 %
Schedule of maturities of operating lease liabilities	Years ending December 31, 2021 (Remainder) $ 329 2022 634 2023 610 2024 307 2025 69 Thereafter — Total lease payments 1,949 Less: Imputed interest 181 Total $ 1,768

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2021
Shareholders' Equity
Schedule of changes in stockholders' equity	Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Common stock and additional paid-in capital Balance, beginning of period $ 63,413 $ 58,577 $ 63,378 $ 58,537 Share-based compensation expense 34 17 65 54 Proceeds from employee stock purchase plan 3 3 7 6 Balance, end of period $ 63,450 $ 58,597 $ 63,450 $ 58,597 Accumulated other comprehensive loss Balance, beginning of period $ (200 ) $ (233 ) $ (186 ) $ (176 ) Unrealized loss on available-for-sale securities, net of tax (3 ) 30 (5 ) 7 Foreign currency translation adjustment (10 ) (8 ) (22 ) (42 ) Balance, end of period $ (213 ) $ (211 ) $ (213 ) $ (211 ) Accumulated deficit Balance, beginning of period $ (15,033 ) $ (15,730 ) $ (13,378 ) $ (13,883 ) Net loss (1,586 ) (1,937 ) (3,241 ) (3,784 ) Balance, end of period $ (16,619 ) $ (17,667 ) $ (16,619 ) $ (17,667 ) Total shareholders' equity $ 46,618 $ 40,719 $ 46,618 $ 40,719

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2021
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 % 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 The original issue discount and issuance costs are netted against the liability. The following table represents the carrying value of Notes and Warrants:
Schedule of carrying value of Notes and Warrants	June 30, 2021 December 31, 2020 Liability component: Principal $ 2,820 $ 3,000 Less: debt discount and issuance costs, net of amortization (483 ) (581 ) Net carrying amount $ 2,337 $ 2,419 Equity component (1) Warrants $ 318 $ 318 Conversion feature 122 122 Net carrying amount $ 440 $ 440 Current portion of liability component included under short-term debt $ 540 $ 360 Long-term portion of liability component included under long-term debt 1,797 2,059 Liability component total $ 2,337 $ 2,419
Schedule of maturities of principal amount contained in the Notes	Year ending December 31, Principal Amount Maturing 2021 (Remainder) $ 180 2022 720 2023 1,920 2024 — Total principal amount $ 2,820
Schedule of paycheck protection program loan liabilities	June 30, 2021 December 31, 2020 Current portion of the PPP Loan included under short-term debt $ 687 $ 312 Long-term portion of the PPP Loan included under long-term debt 812 1,187 Liability component total $ 1,499 $ 1,499

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Measurements
Schedule of fair value of the financial instruments	Level 1 Level 2 Level 3 Total June 30, 2021 Corporate bonds and notes $ — $ 1,026 $ — $ 1,026 Municipal bonds — 971 — 971 Total $ — $ 1,997 $ — $ 1,997 December 31, 2020 Corporate bonds and notes $ — $ 1,338 $ — $ 1,338 Municipal bonds — 1,541 — 1,541 Total $ — $ 2,879 $ — $ 2,879

Business Description, Basis o_3

Business Description, Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	6 Months Ended		66 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Cash and cash equivalents	$ 2,088	$ 2,106	$ 2,088	$ 3,803	$ 4,064
Working capital	17,567		17,567
Net cash used in operating activities	985	$ 113
Increase of cash used in operating activities	$ 872
Litigation for Intellectual Property Infringement [Member]
Loss Contingencies [Line Items]
Litigation settlement expense			$ 23,559

Revenue Information - Revenue i

Revenue Information - Revenue into Primary Product Groups and Major Regions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue [Line Items]
Revenue	$ 7,735	$ 6,357	$ 14,773	$ 12,091
North and South America [Member]
Revenue [Line Items]
Revenue	3,640	4,003	7,164	7,355
Asia (including Middle East) and Australia [Member]
Revenue [Line Items]
Revenue	1,797	1,580	4,023	2,996
Europe and Africa [Member]
Revenue [Line Items]
Revenue	2,298	774	3,586	1,740
Audio conferencing [Member]
Revenue [Line Items]
Revenue	3,096	2,648	5,931	5,435
Microphones [Member]
Revenue [Line Items]
Revenue	3,218	1,891	5,568	4,034
Video products [Member]
Revenue [Line Items]
Revenue	$ 1,421	$ 1,818	$ 3,274	$ 2,622

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		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings (Loss) Per Share
Net loss	$ (1,586)	$ (1,937)	$ (3,241)	$ (3,784)
Basic weighted average shares outstanding (in shares)	18,775,817	16,650,774	18,775,795	16,650,750
Dilutive common stock equivalents using treasury stock method (in shares)
Diluted weighted average shares outstanding (in shares)	18,775,817	16,650,774	18,775,795	16,650,750
Basic loss per common share (in dollars per share)	$ (0.08)	$ (0.12)	$ (0.17)	$ (0.23)
Diluted loss per common share (in dollars per share)	$ (0.08)	$ (0.12)	$ (0.17)	$ (0.23)
Weighted average options, warrants and convertible portion of senior convertible notes outstanding (in shares)	3,597,418	542,196	3,616,661	542,507
Anti-dilutive options, warrants and convertible portion of senior convertible notes not included in the computation (in shares)	3,597,148	542,196	3,616,661	542,507

Marketable Securities - Availab

Marketable Securities - Available-for-sale Securities by Major Security Type (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Amortized cost	$ 1,976	$ 2,848
Gross unrealized holding gains	21	31
Gross unrealized holding losses
Estimated fair value	1,997	2,879
Corporate bonds and notes [Member]
Marketable Securities [Line Items]
Amortized cost	1,007	1,312
Gross unrealized holding gains	19	26
Gross unrealized holding losses
Estimated fair value	1,026	1,338
Municipal bonds [Member]
Marketable Securities [Line Items]
Amortized cost	969	1,536
Gross unrealized holding gains	2	5
Gross unrealized holding losses
Estimated fair value	$ 971	$ 1,541

Marketable Securities - Maturit

Marketable Securities - Maturities of Available-for-sale Securities (Details) $ in Thousands	Jun. 30, 2021USD ($)
Marketable Securities
Due within one year, amortized cost	$ 959
Due after one year through five years, amortized cost	1,017
Due after five years, amortized cost
Total available-for-sale securities, amortized cost	1,976
Due within one year, estimated fair value	969
Due after one year through five years, estimated fair value	1,028
Due after five years, estimated fair value
Total available-for-sale securities, estimated fair value	$ 1,997

Intangible Assets - Intangible

Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 32,639	$ 29,286
Accumulated amortization	(11,092)	(10,038)
Total intangible assets, net	21,547	19,248
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	$ 28,780	25,427
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		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Intangible Assets
Amortization of intangible assets	$ 543	$ 406	$ 1,054	$ 774

Intangible Assets - Estimated F

Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Intangible Assets
2021 (Remainder)	$ 1,123
2022	2,246
2023	2,239
2024	1,975
2025	1,914
Thereafter	12,050
Total intangible assets, net	$ 21,547	$ 19,248

Inventories - Inventories, Net

Inventories - Inventories, Net of Reserves (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current:
Raw materials	$ 1,090	$ 1,182
Finished goods	8,113	9,281
Total current inventory	9,203	10,463
Long-term:
Raw materials	2,237	1,977
Finished goods	1,742	2,613
Total long-term inventory	$ 3,979	$ 4,590

Inventories - Net loss incurred

Inventories - Net loss incurred on valuation of inventory (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Inventories
Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory	$ 307	$ 459	$ 682	$ 660

Leases (Details Textual)

Leases (Details Textual)	Jun. 30, 2021ft²
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		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases
Rent expense	$ 175	$ 172	$ 359	$ 359

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 360	$ 356
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	Jun. 30, 2021	Dec. 31, 2020
Leases
Operating lease right-of-use assets	$ 1,645	$ 1,936
Operating lease liabilities:
Current portion of operating lease liabilities, included in accrued liabilities	554	579
Operating lease liabilities, net of current portion	1,214	1,489
Total operating lease liabilities	$ 1,768	$ 2,068
Weighted average remaining lease term for operating leases (in years)	3 years 1 month 13 days	3 years 6 months 14 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	Jun. 30, 2021	Dec. 31, 2020
Leases
2021 (Remainder)	$ 329
2022	634
2023	610
2024	307
2025	69
Thereafter
Total lease payments	1,949
Less: Imputed interest	(181)
Total	$ 1,768	$ 2,068

Shareholders' Equity - Sharehol

Shareholders' Equity - Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Balance, beginning of period			$ 49,814
Foreign currency translation adjustment	$ (10)	$ (8)	(22)	$ (42)
Net loss	(1,586)	(1,937)	(3,241)	(3,784)
Balance, end of period	46,618	40,719	46,618	40,719
Common stock and additional paid-in capital [Member]
Balance, beginning of period	63,413	58,577	63,378	58,537
Share-based compensation expense	34	17	65	54
Proceeds from employee stock purchase plan	3	3	7	6
Balance, end of period	63,450	58,597	63,450	58,597
Accumulated other comprehensive loss [Member]
Balance, beginning of period	(200)	(233)	(186)	(176)
Unrealized loss on available-for-sale securities, net of tax	(3)	30	(5)	7
Foreign currency translation adjustment	(10)	(8)	(22)	(42)
Balance, end of period	(213)	(211)	(213)	(211)
Accumulated deficit [Member]
Balance, beginning of period	(15,033)	(15,730)	(13,378)	(13,883)
Net loss	(1,586)	(1,937)	(3,241)	(3,784)
Balance, end of period	$ (16,619)	$ (17,667)	$ (16,619)	$ (17,667)

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual) $ / shares in Units, $ in Thousands	Apr. 18, 2020USD ($)	Dec. 17, 2019USD ($)d$ / sharesshares	Jun. 30, 2021USD ($)$ / shares	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)$ / shares	Jun. 30, 2020USD ($)	Dec. 31, 2020$ / 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			$ 49	$ 98	$ 49	$ 98
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)	Jun. 30, 2021
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		Jun. 30, 2021	Dec. 31, 2020
Liability component:
Principal		$ 2,820
Equity component:
Warrants	[1]	318	$ 318
Conversion feature	[1]	122	122
Net carrying amount	[1]	440	440
Secured convertible notes
Liability component:
Principal		2,820	3,000
Less: debt discount and issuance costs, net of amortization		(483)	(581)
Net carrying amount		2,337	2,419
Equity component:
Current portion of liability component included under short-term debt		540	360
Long-term portion of liability component included under long-term debt		1,797	2,059
Liability component total		$ 2,337	$ 2,419
[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) $ in Thousands	Jun. 30, 2021USD ($)
Senior Convertible Notes, Principal Amount Maturing
2021 (Remainder)	$ 180
2022	720
2023	1,920
2024
Total principal amount	$ 2,820

Long-Term Debt (Schedule of pay

Long-Term Debt (Schedule of paycheck protection program loan liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Long-Term Debt
Current portion of the PPP Loan included under short-term debt	$ 687	$ 312
Long-term portion of the PPP Loan included under long-term debt	812	1,187
Liability component total	$ 1,499	$ 1,499

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value Measurements
Total	$ 1,997	$ 2,879
Level 1 [Member]
Fair Value Measurements
Total
Level 2 [Member]
Fair Value Measurements
Total	1,997	2,879
Level 3 [Member]
Fair Value Measurements
Total
Corporate bonds and notes [Member]
Fair Value Measurements
Total	1,026	1,338
Corporate bonds and notes [Member] | Level 1 [Member]
Fair Value Measurements
Total
Corporate bonds and notes [Member] | Level 2 [Member]
Fair Value Measurements
Total	1,026	1,338
Corporate bonds and notes [Member] | Level 3 [Member]
Fair Value Measurements
Total
Municipal bonds [Member]
Fair Value Measurements
Total	971	1,541
Municipal bonds [Member] | Level 1 [Member]
Fair Value Measurements
Total
Municipal bonds [Member] | Level 2 [Member]
Fair Value Measurements
Total	971	1,541
Municipal bonds [Member] | Level 3 [Member]
Fair Value Measurements
Total

Subsequent events (Details)

Subsequent events (Details) - Subsequent events - Edward D. Bagley $ in Thousands	Jul. 02, 2021USD ($)
Common Stock
Subsequent events
Beneficial ownership percentage of common stock	46.70%
Bridge Loan | Notes Payable
Subsequent events
Principal amount of loan obtained	$ 2,000,000
Interest rate of the loan obtained	8.00%