Dan Clark Audio

Proprietary High-end Headphones

Dan Clark Audio

Proprietary High-end Headphones

San Diego, CA
Consumer Products
Dan Clark Audio designs and builds high-end headphones with proprietary designs that create a dazzlingly lifelike, and very comfortable, experience.

$176,849

raised
137
Investors
$7.5M
Valuation
$6.82
Price per Share
$238.70
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
Reg CF
Offering

$176,849

raised
137
Investors
$7.5M
Valuation
$6.82
Price per Share
$238.70
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
Reg CF
Offering

Bonus Rewards

Get rewarded for investing more into Dan Clark Audio

$238+
Investment
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.
$500+
Investment
Join the Club
Gain access to Club DCA, receiving 15% off all purchases.
$1,000+
Investment
The Melody
Gain access to Club DCA, receiving 15% off all purchases + 6 months subscription to Qobuz Music Streaming.
$2,500+
Investment
The Chorus
Gain access to Club DCA, receiving 15% off all purchases + 6 months subscription to Qobuz High-Quality Music Streaming + Aeon RT Headphone.
$5,000+
Investment
Drop the bass
Gain access to Club DCA, receiving 15% of all purchases + 6 months subscription to Qobuz High-Quality Music Streaming + HeL Yeah Bundle (Includes AEON Headphones, Amp and Microphone).
$10,000+
Investment
Hit the High Notes
Gain access to Club DCA, receiving 15% off all purchases + 1 year subscription to Qobuz High-Quality Music Streaming + Ether2 Headphones.
$20,000+
Investment
Drop the mic
Gain access to Club DCA, receiving 15% off all purchases + 1 year subscription to Qobuz High-Quality Music Streaming + Trip to San Diego with a factory tour and headphones of your choice.

Reasons to Invest

Wide Traction - $2m+ in Sales in 2019 — with sales in over 80 countries and tens of thousands of happy customers over the years
Great Team - Filled with industry veterans, with experience at Apple, Compaq, and Beats By Dre, along with audio engineers who have toured with legends like Fleetwood Mac, David Bowie, and Aerosmith
Strong IP - with five patents and a huge portfolio of industry awards, Dan Clark Audio has proprietary designs made to delight your ears with the highest quality audio

“We design and build our headphones from the ground-up — with an intense focus on  sound, quality, and comfort.”

The Problem


Closed-back headphones couldn’t compete with the sound of their open back counterparts

Open-back headphones allow sound to flow through the ear cups into the room and vice-versa, which generally allows for a more natural sound. There’s only one problem: everyone around you hears what you hear. When I was at home jamming out with my open-back headphones, my wife could hear everything. We don’t exactly share the same taste in music, like The Talking Heads, and as I wanted to stay married I had to find an alternative. I tried out a number of closed-back headphones, but the sound just wasn’t the same. Without the air flowing in it felt “cuppy” and claustrophobic.  


I knew I had to figure out a solution, so I decided to apply my loudspeaker design skills for modifying headphones. I joined a community of enthusiasts who modify headphones where I both learned and shared a lot. In the process I noticed many people saying “sounds fun but I can’t modify it.” So I decided to start a business modifying headphones to fund the development of my own “ground up” designs.

After deciding to tackle the task of designing and building my ideal closed headphone I turned my sights to comfort — like eliminating those annoying “hot spots” on your ears or head that distracts from the music and limit listening time and on keeping the headphone set light. To me an uncomfortable and heavy headphone is like a terrible seat at a concert; it’s a barrier to enjoying the music. And of course, for people not requiring a closed headphone, we set out to set a new standard for open headphone performance, comfort and value.


On behalf of our team, I wanted to thank you for your attention and consideration.


Dan Clark, Founder, and CEO

The Solution


Dan Clark Audio creates high-quality headphones by honing in on every detail to deliver a moving experience

Listening to music, playing games or enjoying video is an experience; we believe a headphone should not remind a user it’s on, allowing for an immersive experience that can last for hours.  Our strategy is to combine the best possible sound with the highest level of comfort so the headphone “disappears,” leaving only the content.  Every part of the design works in tandem to create a uniquely compelling and fun user experience.

To maximize reliability and sound quality while reducing weight we use carbon fiber, titanium, and aluminum for maximum rigidity and outstanding acoustic performance. In fact, our headphones are among the lightest in their price and performance class, in some cases weighing 60% less than competing planar magnetic headphones yet without compromising durability or sound quality.

 

To maximize sound quality, we have patented our V-planar(™) driver processing and TrueFlow(™) airflow management within the motor, eliminating numerous sources of distortion to create detailed, vivid, and natural-sounding music.

 

Our patented hinge-free headband design takes much of the weight out of the headband while delivering an incredibly comfortable experience with minimal “clamp” on the head. By using a nickel-titanium alloy called Nitinol (or “Memory Metal”) we have created possibly the lightest headband in the high-end headphone industry, yet it’s incredibly rugged.

The Market


Steady growth, particularly in wireless

The global earphones and headphones market is forecasted to reach a global revenue of $15.4B by 2024.


Ameri Research predicts bullish growth in the wireless market segment of the next few years, and we have already seen Apple’s move toward the wireless AirPods as an indicator of where the big players anticipate the future of the market.


One factor that is changing the audio market is the current pandemic. With people forced to stay home, traditional outlets like concerts or theaters for music and film are no longer available and consumers appear to be investing in upgraded gear to increase their at-home media enjoyment. 


Further, many people are now forced to work at home, where video and audio conferences have replaced traditional meetings and where enjoying music while working is now an option for more people. Some companies such as Twitter have already announced many employees will now be able to work from home once restrictions are eased, potentially representing a permanent increase in demand for home-office audio products. For obvious reasons no market research is yet available to validate these claims, but our recent business performance indicates this is a trend worth noting. 


Our Traction


Almost a decade’s worth of stellar track record

We have secured five patents that are incorporated into our proprietary headphone designs. In addition we have recorded sales to more than 80 countries, and in 2019 posted $2M in revenues.

 

Our products have been awarded dozens of honors for top quality, from organizations as diverse as “hi-fi+” to“The absolute sound” and “HFN”.

 

We currently have a product offering of four proprietary headphone lines, ranging in price from our best-selling AEON 2 ($899.99) to our top-of-the-line VOCE Electrostatic Flagship($3299.99).

 

In addition, we recently launched an OEM design business and our first major partner (a large consumer electronics company) will be coming online in mid-2020.

What We Do


We create top-flight headphones for serious listeners

Our headphones are designed to produce the absolute best quality sound. While you could put retread tires on a Porsche, most owners realize the best results require great tires. In the same way, while our headphones work perfectly with a normal iPhone or other mobile phones, to get the full experience we recommend a higher quality amplifier and DAC.


With the recent success of our bundles tailored for the home office we are pursuing additional curated product offerings to help ensure our customers have the best possible experience while providing an additional incremental revenue stream.

The Business Model


Multi-tier distribution model with B2B and B2C

We sell directly to consumers online, as well as through US retailers and international distributors. 

 

Our margins vary by distribution channel but as a company our gross margin is 57%. We have made a strategic decision to increase margins in 2020 by eliminating non-performing retailers in the US market. Our international distribution is strong, particularly in Germany, the UK, and China.

 

Our AOV for direct sales is $740 and our typical COGS is 25-35% of retail. 

How We Are Different


Punching above our weight

We have two main sectors of competitors, which can be roughly broken up into larger companies (Sennheiser, Beyerdynamic, Apple, etc.) and smaller boutique vendors (Audeze, Focal or HiFiMan).

When it comes to smaller companies, our competitive advantage lies in comfort and value and a totally unique design aesthetic. Sonically, our headphones have won many awards, validating that independent experts believe we truly deliver a best-in-class experience. We are also very proud of the light weight and ergonomic design of our headphones that allow users to enjoy our headphones all day without the normal discomfort caused by so many heavier, less comfortable products. And we’re particularly proud of our closed headphones that deliver a uniquely “outside of your head” experience. 

Relative to our larger competitors we are able to beat them on quality. By and large most of these large companies have price points far below ours and are focused on serving the mass market. We aren’t trying to outdo these vendors in the mass market, we’re addressing the market of owners who ask “how can I have a better experience.” 

When faced with the question of why our products are hundred of dollars more expensive, many consumers will come to the correct answer that it is due to our superior quality and craftsmanship and our built-in-the-USA quality.

The Vision


We want to be the one-stop-shop for all your personal audio needs

We want to expand our product offerings to include wireless, in-ear, and other potential new markets in order to make our brand wider in scope and better serve our consumers and retail partners with a comprehensive line of innovative, fun products. 


In addition, we are developing curated product bundles designed to simplify the purchasing process for customers new to the high-end headphone experience, or experts looking for choice recommendations they can rely on to ensure an exceptional experience. 

Our first bundle was designed for the recent surge in home-office users, additional bundles will follow.

Our Team


Industry professionals with decades of experience

Dan Clark, Founder, Chairman and CEO


Dan has a BS in engineering from Swarthmore College and an MBA from San Jose State. Dan spent 30 years in high-tech managerial and executive roles, working in companies ranging from small startups to Apple Computer, Compaq and Sun Microsystems. 


Audio has been Dan’s passion since he was four years old and rocked out air-guitar to The Beatles on his dad’s McIntosh tube amp and Wharfedale speakers. During college he worked in a high-end retail audio boutique and focused his studies on analog power amplifiers for his senior thesis. 


As Dan entered the high-tech industry, his passion for audio kept him involved in media intensive projects, including working at Apple on early multimedia “Hypercard” projects and contributing to the specifications for Quicktime with requirements for the education market. Subsequently he worked at C-Cube micro-systems where he was a product manager for one of the first MPEG chipsets, and later at Sun where he led creation of a multimedia inter-application messaging service.


In the late 1990’s, Dan started  work as a loudspeaker design consultant for several high-end audio companies, developing several products including  the critically acclaimed Platinum Audio series 2 loudspeakers. He began working on modifying and improving headphones around 2008 before starting Dan Clark Audio in 2012. 

Andy Regan, President


Andy has been in the Audio Business for 40 years. He started his audio journey as a front of house and monitor Engineer for large scale touring acts and across a span of  13 years toured with legendary acts  such as Fleetwood Mac, David Bowie, Aerosmith, The Commodores, and many more. 


In 1984 he transitioned to the world of High End Audio and became National Sales Manager for Threshold Audio, one of the pioneering Amplifier companies. Over the next 20 years Andy held executive positions at Meridian Audio, AudioQuest, Snell Acoustics, and Cardas Audio.


Andy served as one of the leads of the “Beats” by Dre project at Monster Cable.  After Beats sold to Apple (for $3 Billion)  Andy became the President of Jerry Harvey Audio, the leading provider of custom in-ear monitors for the large scale  touring industry.  With Andy at the helm, JH Audio grew from $2.5 million to $13 million per year in sales  in under 5 years.


Andy met Dan at Audio industry shows and became an admirer of the headphones Dan designed, seeing the possibilities to accelerate  the company’s growth and actively pursued Dan to join the team.

Robert Jason Egger, Chief Engineer 


Jason has been in the headphone business for 7 years, first as a consultant for MrSpeakers before joining as the Chief Engineer in 2014. Like Dan and Andy, Jason has had a lifelong enthusiasm for audio, and has a house full of homemade speakers and electronics to show for it. 


In addition, Jason has 11 years of experience designing, prototyping and producing products for the cinema and broadcasting market including underwater housings, user interfaces, accessories and optics used in high-end commercial and education production. 


Jason’s an engineering jack of all trades. With deep expertise in mechanical and electromechanical design, CAM programming, machine operation, PCB designer, as well as the design of fully custom CNC, doohikeys and gizmos used in all aspects of R&D and production. 


Jason is a lifelong creator, maker and purveyor of speakers, abstract sculpture art and life-size fiberglass animals.  

Why Invest


You believe in the power of high-quality audio

We believe the success of a company like ours hinges on two things: The quality of the product, and having a mission well-matched to a market. 

 

We believe our balanced blend of quality, comfort, and value is second-to-none. And our mission is to provide the best listening experience for users. It’s that simple. 

 

Invest in Dan Clark Audio if you believe people want the best possible listening experience for their music, games, and video and are willing to pay a premium for it. We have proven over the last eight years that thousands of people agree.

In the Press

CNET
January 1, 2017

MrSpeakers Ether 2 advances the art of headphone design

Headphone.guru
January 1, 2017

DAN CLARK AUDIO: AEON 2 OPEN-BACKED HEADPHONES – A FANTASTIC UPGRADE TO A CLASSIC!

Positive Feedback

The HeadAmp Blue Hawaii Electrostatic Special Edition Headphone Amp & MrSpeakers VOCE Electrostatic Headphones

Stereonet

Dan Clark Audio AEON 2 Closed Back Headphones Review

Soundstage

Dan Clark Audio Æon Flow 2 Closed Headphones

Innerfidelity

MrSpeakers Ether 2 Review – My Favorite Flagship

Headphone.Guru

DAN CLARK AUDIO HEL YEAH HOME OFFICE, GAMING, VIDEO AND MUSIC BUNDLE! REVIEW

The Audiophile Man

AEON2 HEADPHONES FROM DAN CLARK

Offering Summary


Company

:

Dan Clark Audio, Inc

Corporate Address

:

3366 Kurtz St, Suite 200, San Diego, CA 92110

Offering Minimum

:

$9,998.12

Offering Maximum

:

$1,069,989.80

Minimum Investment Amount

(per investor)

:

$238.70











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

1,466

Maximum Number of Shares Offered

:

156,890

Price per Share

:

$6.82

Pre-Money Valuation

:

$7,502,000.00











COVID Relief

This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary regulatory COVID-19 relief set out in Regulation Crowdfunding §227.201(z).

Expedited closing sooner than 21 days

Further, in reliance on Regulation Crowdfunding §227.303(g)(2) A funding portal that is an intermediary in a transaction involving the offer or sale of securities initiated between May 4, 2020, and August 31, 2020, in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)) by an issuer that is conducting an offering on an expedited basis due to circumstances relating to COVID-19 shall not be required to comply with the requirement in paragraph (e)(3)(i) of this section that a funding portal not direct a transmission of funds earlier than 21 days after the date on which the intermediary makes publicly available on its platform the information required to be provided by the issuer under §§227.201 and 227.203(a).

Voting Rights of Securities sold in this Offering

Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.

*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.

Time-Based Rewards:

The Superfan

Invest within the first 72 hours and receive 20% bonus shares

The Groupie

Invest within the first week and receive 15% bonus shares

The Trendsetter

Invest within the first 2 weeks and receive 10% bonus shares

Amount-Based Rewards:

$500+ | Join the Club

Gain access to Club DCA, receiving 15% off all purchases

$1,000+ | The Melody

Gain access to Club DCA, receiving 15% off all purchases + 6 months subscription to Qobuz Music Streaming

$2,500+ | The Chorus

Gain access to Club DCA, receiving 15% off all purchases + 6 months subscription to Qobuz High-Quality Music Streaming + Aeon RT Headphone

$5,000+ | Drop the bass

Gain access to Club DCA, receiving 15% of all purchases + 6 months subscription to Qobuz High-Quality Music Streaming + HeL Yeah Bundle (Includes AEON Headphones, Amp and Microphone)

$10,000+ | Hit the High Notes

Gain access to Club DCA, receiving 15% off all purchases + 1 year subscription to Qobuz High-Quality Music Streaming + Ether2 Headphones

$20,000+ | Drop the mic**

Gain access to Club DCA, receiving 15% off all purchases + 1 year subscription to Qobuz High-Quality Music Streaming + Trip to San Diego with a factory tour and headphones of your choice

*All perks occur after the Offering is completed.

**International investor pays travel costs, accommodations provided. Domestic investors receive air travel and accommodations.

The 10% Bonus for StartEngine Shareholders

Dan Clark Audio, Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of common stock at $6.82 / share, you will receive and own 110 shares for $682. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.

Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Salary payments made to one’s self, a friend or relative.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$363,672.00 USD
$193,251.00 USD
Cash And Cash Equivalents
$6,520.00 USD
$29,333.00 USD
Accounts Receivable
$95,601.00 USD
$0.00 USD
Short Term Debt
$264,457.00 USD
$181,382.00 USD
Long Term Debt
$80,996.00 USD
$21,942.00 USD
Revenues And Sales
$1,993,807.00 USD
$1,965,237.00 USD
Costs Of Goods Sold
$830,767.00 USD
$962,566.00 USD
Taxes Paid
$0.00 USD
$800.00 USD
Net Income
-$21,707.00 USD
$9,539.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

How I Met Dan Clark- Mad Dogs and a Hong Kong Tequila Bar!

12 days ago

As a kid that growing up in the 60's and 70's I was always obsessed with music. From Elvis, to Motown, to the Beatles I just could not get enough. I wanted to be a rocker when I grew up, but reality intervened and I realized I had no musical talent so I needed a plan B to do something that got me closer to my passion, which has always been the music.

I started out as a Monitor Engineer with large scale touring bands and spent the next 10 years touring with some of my heroes, and I have to say touring with acts like Fleetwood Mac and David Bowie was an amazing experience! But, life moves on, eventually I got Married and started to think about getting off the road. Ultimately I went to work in the world of high-end audio, and over the last 30 years worked as an executive for some amazing Brands. 

I was serving as President of Jerry Harvey Audio, the premier custom In-Ear Monitor manufacturer, and in doing so I attended all the major headphone shows around the world. Since I am also a Headphone enthusiast I would wander the shows to listen to other companies' products, and that's when I first met Dan Clark.

Then known as MrSpeakers, Dan was modifying Fostex headphones and reselling them as the Mad Dog. I took a listen and was floored by how natural and live they sounded and instantly fell in love with them. Dan wanted a set of Custom In-Ears so we traded, and I got my Mad Dogs! In talking with Dan I immediately liked him and felt we had a lot in common, including our taste in sound and a genuine passion for music, making it a pleasure to see each other at the events. 

Over the next few years I would always make it a point to visit Dan at headphone shows in the US, Hong Kong, Singapore and all over the world. As our friendship developed Dan kept amazing me with his latest ground-up designs like the original Ether and Ether C. It was clear to me then that MrSpeakers was going to grow into a force in the Headphone industry and I wanted in! I would always end our visits with "Dan if you ever need someone like me to help grow MrSpeakers I am all in". 

Well be careful what you wish for, because one night after a long Day at the Hong Kong High End Show, where Dan showed me the all new and groundbreaking Voce electrostatic headphone he had just released, he said 'Hey I know this great Tequila Bar lets go get a drink. Now as I said we had other things in common, knowing a great Tequila Bar in Hong Kong is a good example! It was that night in Hong Kong that he made the offer for me to join the company as President.

That was almost 2 years ago and we never looked back. I joined the company several months later and its been a great ride since. Right after I joined we released ETHER 2 and ÆON 2 then changed the name of the company to Dan Clark Audio. Since then we've been busy working on products that will open new markets for us so we can grow the business to the next level, and to expand our footprint to become a major player in the industry going forward. 

We bonded over our shared love of music and bringing great value/performance products to market. Join us as we grow, and share the experience! And thanks for your support!

-Andy


Notice of Funds Disbursement

21 days ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Dan Clark Audio has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Dan Clark Audio be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

A few quick updates on facilities

about 1 month ago

A couple of good things have happened in the last week. Instead of relocating we were able to reduce our rent by almost 20%, which saves relocation expenses and will directly contribute to our bottom line.

Second, as part of manufacturing infrastructure buildout we had planned to invest in a number of new workstations. In a stroke of great timing we secured literally brand-new TOTL benches from a bankrupt biotech for about $0.05 on the dollar, before Pfizer swooped in and bought everything else! With the rework of our production facility we already exceeded our production targets, even though a quarter of the week was spent setting up the new stations. The wiring and compressed air will be completed this coming week but here's a shot of the new stations during initial installation.



Notice of Material Change in Offering

about 1 month ago

[The following is an automated notice from the StartEngine team].

Hello! Recently, a change was made to the Dan Clark Audio offering. Here's an excerpt describing the specifics of the change:


Extended length of campaign.


When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.

Notice of Funds Disbursement

about 1 month ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Dan Clark Audio has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Dan Clark Audio be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Reduced rent secured

about 2 months ago

We are pleased to announce we've reduced our rent overhead by 20%, effective September, and will be staying in our current facility, thereby avoiding relocation cost. This should enhance our bottom line in the 2H of the year and provide ongoing benefits in 2021.

Notice of Funds Disbursement

about 2 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Dan Clark Audio has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Dan Clark Audio be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

We Just Were Awarded Another Patent!

about 2 months ago

I'm pleased to announce that another of our patent applications has been approved. The application covers our innovative nickle-titanium headband design that is flexible enough to eliminate hinges that are traditionally required to allow headphones to rotate to make a comfortable fit. 

Our design is used in every product we currently produce, making our headbands lighter, more durable, and yet more comfortable and reliable than conventional designs.

In addition, the patent covers are unique folding gimbal design that allows for a full size headphone to pack into a backpack-friendly travel case, giving the benefit of full-size sound and comfort with compact headphone portability.

The patent number isn't issued yet.


First Half Financial Results

2 months ago

Our preliminary first half results are in, and we're delighted to say despite the global pandemic we remained profitable and have improved our operational performance on multiple levels. These numbers are prepared by our CPA and have not been externally reviewed or audited.

While sales decreased in March and April, we used the enforced downtime to re-engineer our manufacturing and inventory process and successfully reduced our costs, improved production efficiency, and increased gross margin and as a result we were profitable in the first half of 2020 despite the global pandemic.

First half sales were $969K, down 10.3% from 2019 due to effects of Covid lockdowns in March and April. Total income decreased by 18.2% due to collection on accounts, as we use accrual accounting.

Sales began a strong rebound in April, and May and June were very strong, with a sustained shift toward direct sales. The direct sales have improved our gross margins and as a result, though sales fell $111K relative to 2019 we produced $47.8K in net income and remained profitable for the first half despite the March and April disruptions and decreased revenue.

Our balance sheet has also improved. Debt has been reduced and by the first week of August our short term Business Builder loan will be fully paid off, increasing monthly cash flow by $24K/month, while our Working Capital loan continues to be paid off faster than forecast and is now less than $100K; if current sales trends hold will be paid off in Q1 2021 which will leave us close to debt-free. It's important to note that the Working Capital loan is paid as a percentage of our sales, which is optimal for current unpredictable business conditions.

In April, we received a PPP loan of $124,900 which we expect to be totally forgiven. Assuming that happens (we believe we have qualified for full forgiveness) our 1H Net Income will be revised upwards to $172,663, an increase of 70% from 2019. Our balance sheet is improved as well, and with current receivables we expect to have a strong cash reserve.

July is off to a solid start with direct sales and bookings already in excess of $100K, as of July 9 sales are already 15% higher than last years' total July sales. Sales to our largets retail and distribution partners have also recently increased. As of this writing our most popular AEON 2 and AEON RT products are selling so well we remain in backorder despite being near full production capacity.

Finally, we are in the process of moving to new facilities to reduce our rent overhead and to increase manufacturing capacity and efficiency with a more functional facility. We expect the move to be complete this quarter. Additional charges will of course be incurred, and we anticipate a modest negative impact on net income for Q3 due to relocation expenses before cost savings and efficiencies of the new facility impact our operations in Q4. We also expect to acquire equipment in Q3 related to our in-ear-monitor program, and are in negotiations to determine if this equipment is purchased or leased.

Given the impact of Covid on the broader economy we feel these are outsanding results for 1H 2020. As previously noted we are unable to provide concrete guidance for 2H 2020 due to the unpredictable effects of the global pandemic on our market, and this snapshot should be understood as a positive data point in a volatile situation.

A Fabulous New AEON 2 Review

3 months ago

"There are a lot of headphones in the $750 to $1000 price range. At $899.99 the DAN CLARK AUDIO AEON 2 HEADSETS would be a top choice among the many headsets I’ve heard at similar price points. For portability, they are, by virtue of their innovative and fresh design, at the head of the pack."

You can read the full review here.

Great review of our gaming bundle!

3 months ago

The global pandemic has changed the personal audio market. As people have been forced to spend more time at home and aren't going out to concerts, festivals, theaters, etc they are spending more time at home listening to music, gaming, watching  video, and video conferencing. As many people share living spaces with others, good personal audio allows people to enjoy their material without bothering those they live with, and as they are spending more time with personal audio they're investing in better gear.

Traditional "gaming" headphones are basic, plastic affairs made in high volume, with cheap microphones, and typically pretty poor sound quality. So we decided to come up with a gaming-friendly solution at a price point that makes our complete system an affordable upgrade for people used to low quality $200 "gaming" headphones, something good enough to use for all applications, and to deliver a reliably excellent experience.

So we partnered with Schiit Audio and Antlion Audio to create a complete system with electronics, headphone and microphone for $649.99, 38% of retail! 

The response has been great, and we've recently gotten a great review I thought I'd share here for those interested in how our solution compares to what else is on the market.

The answer? "...the Hel Yeah! bundle is quite literally the most absurd audiophile “Gaming Rig” that is officially intended to be a gamer’s rig."

You can read the full review here. If you're interested in learning more about the bundle you can shop here.



Electrostatic Headphones; The Gold Standard in Headphone Sound

3 months ago

"You just might find that…like me…they take you to musical places of the heart that you might have forgotten about.

And what can be higher and better than that?"

In the world of headphones, electrostatic headphones are often considered the gold standard for sound reproduction. They are also extremely hard to produce in volume, as they operate at extremely high voltages and use incredibly fragile materials. In fact, making these headphones is complex enough that there are only 5 manufacturers of electrostatic headphones in the world, including us.

Why are electrostatics so interesting when they're so hard to make? One major reason is resolution: a well designed electrostatic driver is actually lighter than the volume of air it displaces, making them the most accurate and "fast" transducers on the market. This incredible speed allows electrostatic headphones (or loudspeakers) to resolve even the finest details in a recording, which exposes every aspect of a performance and opens a window to better appreciate the artists' technical skills and/or emotional intent to the fullest degree possible!

Of course, no technology is perfect, and a frequent criticism of electrostatic headphones is that they provide tons of detail, but they can be bright or lacking bass. And to actually make electrostatic headphones make sound, you need special electronics that operate across hundreds of volts, vs a couple of volts for conventional technologies. 

So we took this as a challenge, and set out to produce VOCE, an electrostatic headphone that could not only deliver the details people craved, but also the full and rich bass experience that can make headphones sound fun!

We did it through extensive research, and ended up designing the largest electrostatic driver in the market, a gigantic 88mm or almost 3.5" in diameter, yet only 0.0000024m (0.000091") thick. That's about 1/20 the thickness of a human hair. By making the driver so large, we're able to create an electrostatic headphone that produces bass frequencies well below the threshold for human hearing, flat down to 5Hz in fact, allowing us to deliver lifelike levels of detail, supported by rich, detailed and impactful bass. 

This review from the respected Positive Feedback publication resulted in our winning one of several Product of the Year awards, it's also a fun review!

Happy listening,

Dan Clark


Notice of Funds Disbursement

3 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Dan Clark Audio has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Dan Clark Audio be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Check Out Some of Our Unique Design Features for Comfort and Travel

3 months ago

Many people love full-size headphones because many feel they deliver the best sonic experience. The downside is full-size headphones can be bulky, heavy, sometimes uncomfortable, and almost always hard to travel with.

We put together a short video to illustrate how we solved the paradox of making a full-size very comfortable headphone that is also easy to pack in even the smallest carry-on bags for travelers, so you no longer have to sacrifice great sound and comfort for portability!

On behalf of the team I hope you enjoy this introduction to our AEON headphones!

Dan Clark

Founder and CEO



New York Times Wirecutter: Best Sealed Headphone under $2,000

3 months ago

Hi everyone, and thank you so much for the early support, we're really excited to have passed the $100K mark so quickly! As a gentle reminder, our last time-limited investment bonus ends shortly, so don't miss out!

We're really pleased to let you know the New York Times Wirecutter magazine recently ran an article with their top picks in headphones and said of the $899.99 ÆON 2 Closed "If you want the absolute best-sounding sealed over-ear headphones under $2,000, get this pair." 

You can enjoy the entire article here, and be sure to visit our PR page and read our extensive collection of reviews.

Cheers!

Dan Clark

Founder and CEO

                                                

From Wirecutter. © 2020 The Wirecutter, Inc. All rights reserved. Used under license.

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