New Risk • May 18
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -US$7.5m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$7.5m free cash flow). Earnings have declined by 21% per year over the past 5 years. Shareholders have been substantially diluted in the past year (54% increase in shares outstanding). Revenue is less than US$1m. Market cap is less than US$10m (US$8.32m market cap). Minor Risk Share price has been volatile over the past 3 months (12% average weekly change). New Risk • Feb 26
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: US$9.89m This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$6.2m free cash flow). Earnings have declined by 11% per year over the past 5 years. Shareholders have been substantially diluted in the past year (40% increase in shares outstanding). Market cap is less than US$10m (US$9.89m market cap). Minor Risk Share price has been volatile over the past 3 months (14% average weekly change). Announcement • Jan 14
Clearone, Inc. Annulenes Settlement Agreement Resolving Wrongful Termination Claims with Former Employees ClearOne, Inc. (the “Company”), in its quarterly report on Form 10-Q for the quarter ended September 30, 2025, eight former employees of ClearOne Spain, SL (“ClearOne Spain”), the Company’s wholly-owned subsidiary in Spain, filed a claim with the High Court of Justice of Aragon Spain against the Company and ClearOne Spain claiming wrongful termination and seeking unspecified statutory compensation as damages (the “Spanish Proceeding”) in connection with the Company’s reduction in force that it initiated on June 20, 2025. ON January 5, 2026 ClearOne Spain entered into a Settlement Agreement and Waiver of Claims with the eight former employees (the “Settlement Agreement”). Under the terms of the Settlement Agreement, all eight former employees of ClearOne Spain agreed to dismiss and terminate all of their claims under the Spanish Proceeding in exchange for an aggregate cash payment from ClearOne Spain of €392,809.80. 
