ClearOne Communications, Inc. - Consolidated Statement of Cashflows (USD $) In Thousands, unless otherwise specified	3 Months Ended
Mar. 31, 2012	Mar. 31, 2011
Cash flows from operating activities:
Net income	$ 453	$ 812
Adjustments to reconcile net income to cash provided by (used in) operating activities
Depreciation and Amortization	337	295
Stock-based Compensation	51	39
Provision for Doubtful Accounts	(59)	(58)
Increase (decrease) in reserves against inventory	90	(214)
Changes in operating assets and liabilities:
Change in accounts receivable	1,416	1,396
Change in inventories	(2,224)	(379)
Chane in deferred income taxes	(10)	117
Change in prepaid expense and other assets	(1,132)	(54)
Change in accounts payable	(984)	1,082
Change in income taxes payable	(89)	121
Change in accrued liabilities	309	(1,269)
Change in deferred product revenue	418	258
Change in other long-term liabilities	15	53
Net Cash Provided by (Used in) Operating Activities	(1,409)	2,199
Cash flows from investing activities:
Payment towards acquisition of VCON business	(4,632)	0
Purchase of property and equipment	(65)	(175)
Net Cash used in investing activities	(4,697)	(175)
Cash flows from financing activities:
Proceeds from issuance of common stock - options	0	21
Net cash provided by (used in) financing activities	0	21
Net increase in cash and cash equivalents	(6,106)	2,045
Cash and cash equivalents at the beginning of the period	16,683	11,431
Cash and cash equivalents at the end of the period	$ 10,577	$ 13,476

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Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation).