Dan Clark Audio offering is now closed and is no longer accepting investments.

Proprietary High-end Headphones

INVEST IN DAN CLARK AUDIO TODAY!

Dan Clark Audio designs and builds high-end headphones with proprietary designs that create a dazzlingly lifelike, and very comfortable, experience.
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This Reg CF offering is made available through StartEngine Capital, LLC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Dan Clark Audio

REASONS TO INVEST

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Wide Traction - $2m+ in Sales in 2019 — with sales in over 80 countries and tens of thousands of happy customers over the years

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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

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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

ABOUT

HEADQUARTERS
3366 Kurtz St, Suite 200
San Diego, CA 92110
VALUATION
$7.5M

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

TEAM

Dan Clark
Dan Clark
CEO

Dan Clark holds a BS in Engineering and an MBA. Prior to founding Dan Clark Audio (formerly MrSpeakers) in 2012, Dan had 30 years experience as an executive and senior manager in high-tech marketing and product management.

His experience covers companies ranging from Apple Computer and Sun Microsystems to ESET, a leading vendor of internet security solutions. 

Dan's audio experience began in high-school where he worked doing sales and occassional equipment upgrades at an audio retailer, to designing speakers and subwoofers as a consultant in the 1990s. 

Andy Regan

Andy Regan

President

Andy has 40 years experience in the music and audio industries. He started his career doing front-of-house sound for large touring acts in the 1970s, then moved into high-end audio. His audio experience includes a tenure leading sales for Beats By Dre, as well as President of JH Audio, where he increased sales 500% during his tenure. 

Jason Egger

Jason Egger

Chief Engineering Officer

Jason holds a BSEE degree, and has spent the last decade working in high-end movie camera and high-end audio development. Jason has been a lifelong audio enthusiast and has applied his passion for the craft to all aspects of our product development. 

TERMS

Dan Clark Audio
Overview
PRICE PER SHARE
$6.82
DEADLINE
Mar 26, 2021
VALUATION
$7.5M
AMOUNT RAISED
$230,406.88
Breakdown
MIN INVESTMENT
$238.70
MAX INVESTMENT
$106,992.16
MIN NUMBER OF SHARES OFFERED
1,466
OFFERING TYPE
Equity
ASSET TYPE
COMMON
SHARES OFFERED
Common Stock
MAX NUMBER OF SHARES OFFERED
156,890

Maximum Number of Shares Offered subject to adjustment for bonus shares


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.

PRESS

Article Image
Headphone.guru

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

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Positive Feedback

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

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Headphone.Guru

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

Article Image
Stereonet

Dan Clark Audio AEON 2 Closed Back Headphones Review

Article Image
Soundstage

Dan Clark Audio Æon Flow 2 Closed Headphones










ALL UPDATES

03.23.21

Last Call!

Hi Everyone! We're allowing our fundraising to close in two days, so it's last call! 


Thanks to everyone for your support, it's made a big difference, and we're looking forward to an exciting 2021, and beyond!

Regards,

Dan

03.23.21

Last call!

Hi everyone! We've just got a couple of days left on the fundraising, so it's last call time!

Thanks again to everyone who has invested in us, we are honored by your support!

Dan

03.19.21

Last call

Hi everyone! First, thanks so much for all the support for our crowdfunding campaign. The funds we've raised have made a big difference and we feel we're well prepared for the next phase of our business. As a result, we will not be extending our campaign further at this time, so please consider this a last call, for now!

Thanks again!

Dan Clark, and the whole team!

03.12.21

Notice of Funds Disbursement

[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

03.08.21

More fun press on ÆON 2 Noire

Our ÆON 2 Noire is now our best-selling headphone, to the point we have trouble keeping it in stock. 

With a bold high-gloss black finish, our signature comfort, an incredibly portable yet full-size design, loaded with our technologies from and an all new voicing, ÆON 2 Noire was designed to be a world-class headphone

Did we succeed? Read on!

https://headphone.guru/the-aeon-2-noire-the-black-beauty/


03.05.21

Some great new reviews (and awards!)

Our ÆON headphones continue to receive stellar reviews, and sales have been so strong we've been in backlog for the last month.

Check these out for your enjoyment...


Stereonet


"With fine build, superlative comfort and excellent accessories, this exotic new £900 pair of hi-fi headphones gets off to a strong start, but it’s the planar magnetic drivers that really do the business – plus that undeniably sweet styling. Available in a choice of open or closed back, it’s one of the best headphone designs around right now that doesn’t require a second mortgage."

stereonet-2020-product-of-the-year-awards


Audio Science Review

From Audio Science Review we received a rave review and the reviewer commented "We have seen this in electronics where companies that do their homework during development smell like roses in my reviews and measurements. We seem to have found the first company in that regard when it comes to headphones." It's a fun technical review, and includes a contrast to a $4000 headphone; guess which performed better?

https://www.audiosciencereview.com/forum/index.php?threads/dan-clark-audio-aeon-rt-review-closed-headphone.19393

02.10.21

Notice of Funds Disbursement

[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

02.08.21

FY 2020 Results

SUMMARY

2020 was an interesting year, to say the least! With a pandemic, economic disruptions, and political tensions we all had a great many uncertainties to traverse. We had no idea in April if headphones would be a priority for home-bound people, but they were. As a result sales showed a 2.9% decline and a marked shift to direct sales that increased our margins. Our expenses decreased due to a focus on production efficiency and a decrease in rent and overhead and taken together with the extra margin from direct sales allowed us to retire more than 90% of our outstanding debt, materially improving our cash flow. While we posted an increased operating loss for 2020 this is a direct function of accrual revenue recognition timing rules rather than a change in the business. In summary, with steady sales, increased margin, reduced overhead, and decreased debt our financial and operating position is considerably improved entering FY 2021.


2020 highlights include:

1) Goss sales were down 2.9% relative to the prior year, despite the effects of the pandemic on the business and the broader economy. 

2) On December 20 we announced ÆON Noire, which has been so popular it has been in backorder since introduction

3) Positive press continues and we’ve received a number of additional awards for product excellence from the audio trade press

4) Our operating overhead has improved materially from 2019 with lower rents and increased operating efficiency

5) Our PPP round 1 loan has qualified for forgiveness and our application is in process; this will be accounted for in the 2021 books once forgiveness is finalized

6) Of the two standard loans detailed in our prospectus, one was paid off in full and the other now has a balance of just $18,193 which we expect will be paid in full in March 2021. This will provide continuous cash-flow benefits in 2021 relative to 2020

7) New product development has benefited from increased investment resources derived from our equity crowd-funding, and several new products and patent filings are in process


Financial Details

The following numbers are our final, unaudited, 2020 results. Net sales were $1,897,488, a decrease of 2.9% from CY 2019. DCA uses accrual accounting and revenue can not be recognized until product has shipped. Unfortunately, pandemic-driven supplier and logistics delays affected DCA’s December production causing most December orders to be shipped in early January, and while the sales occurred in 2020 the revenue must be recognized in 2021. For this reason while sales were only off 2.9% from 2019, total Income declined 15.3% to $1,687,883 and we posted a Net Loss of $143,573. The flip side is that since the revenue is recognized in 2021 we’re off to a great start for the new year!

As the percentage of our revenue derived from direct sales increased so did our margin, and as a result our cash position and balance sheet improved materially. On the cash-flow side we have retired one of the commercial loans we held prior to our StartEngine campaign and have a balance of just $18,193 on the second, which we expect to pay off in March. Our PPP loan qualified for forgiveness and when this is processed we will have retired 100% our existing debt, increasing cash flow for operations and freeing us to explore future loans should we desire.


Major pandemic effects included:

1) Having to figure out how to distribute production to allow employees to build product from home with minimal staff in our facility. The good news is we successfully developed a distributed production model that will allow us to smoothly continue production regardless of office/work mandates we can reasonably anticipate.

2) A literal inversion of shopping trends. In 2019 the majority of revenue came through the retail channels, in 2020 the majority of revenue was direct. Pre-pandemic sales days were best on weekends, during the pandemic weekdays became our strongest sales days. Summer sales are historically our slowest but June, July, and August 2020 saw major jumps in revenue relative to 2019 and posted some of the best monthly results of the year, while fall and early-holiday sales were unusually weak, though late December sales were exceptionally strong

3) Significant supply-chain and air and ocean freight logistics disruptions created late deliveries from suppliers which delayed many of our December shipments and also caused delays in product launches, affecting our 2020 financials due to accrual revenue recognition rules

Due to the unpredictable nature of the pandemic it is impossible to forecast 2021 and we can make no representations about the 2021 outlook.

02.01.21

We've passed $200K in investment!

On behalf of the team I'd like to express our gratitude to the Start Engine community for your support!

These funds have made a real difference to our R&D efforts, and as a result we're looking forward to an exciting 2021.

Regards,

Dan

01.28.21

AEON 2 wins another Product of The Year Award

Continuing our winning streak of "best headphone" awards, ÆON 2 just picked up the "Best Over Ear Headphones" award from Stereonet!

"Available in a choice of open or closed back, it’s one of the best headphone designs around right now that doesn’t require a second mortgage. The delicate yet detailed sound is exquisite."











REWARDS

Multiple investments in an offering cannot be combined to qualify for a larger campaign perk. Get rewarded for investing more into Dan Clark Audio.

$238.00

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.

$500.00

Join the Club

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

$1,000.00

The Melody

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

$2,500.00

The Chorus

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

$5,000.00

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).

$10,000.00

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.

$20,000.00

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.

JOIN THE DISCUSSION













0/2500

HOW INVESTING WORKS

Cancel anytime before 48 hours before a rolling close or the offering end date.

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