ClearOne (NASDAQ:CLRO) today announced that its Board of Directors has declared a one-time special stock dividend on the Company's issued and outstanding shares of common stock, par value $0.001 per share (the "Common Stock"), and any Common Stock equivalents with dividend rights (the "Common Stock Equivalents"), to provide its legacy stockholders with a 100% stake in the proceeds from any eventual sale of all or substantially all of the Company's current assets and operations in one or more transactions (collectively, the "Asset Sale").

This Special Stock Dividend is part of the Company's ongoing strategic process and in support of its previously disclosed plan to pursue one or more transactions, including the Asset Sale, and involves issuing to holders of Common Stock and Common Stock Equivalents one share of the Company's Class A Redeemable Preferred Stock, par value $0.001 per share (the "Class A Preferred Stock"), for every issued and outstanding share of Common Stock and Common Stock Equivalent. Upon the completion of any Asset Sale, which may occur in one or a series of transactions, the Class A Preferred Stock shall be redeemed by the Company for 100% of the net proceeds of any such Asset Sale.

The Special Stock Dividend will be payable on July 18, 2025 to stockholders of record as of July 11, 2025. Because the Special Stock Dividend exceeds twenty-five percent (25%) of the value of the Common Stock, in accordance with FINRA UPC (Uniform Practice Code) Rule 11140, a stockholder of the Company that sells shares of Common Stock on or prior to the payment date of July 18, 2025 will not receive the Special Stock Dividend for the shares of Common Stock that are sold.