Material Agreement (Form 8-K)

Item 1.01 Entry into a Material Definitive Agreement.

As previously disclosed by ClearOne, Inc., a Delaware corporation (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.

The foregoing summary of the Settlement Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the Settlement Agreement in the form filed as Exhibit 10.1 to this Current Report on Form 8-K, which is incorporated herein by reference.