Wow where do I start. I bought this to use with my Steam Link which only has HDMI output for video. I had an old VGA/DVI monitor that I wanted to use as a display, but it didn't have speakers. I have HDMI connected to Steam Link and am using the USB cable for power (not sure if I need it or not) and am using DVI for my monitor. I connected small USB powered speakers (also via Steam Link) to the 3.5mm headphone jack and can now stream anything from Steam or minimize it to stream great videos. Audio goes through HDMI and then splits into a 3.5mm headphone jack. I had no trouble getting it to work, it was plug and play. I had to adjust the equalization in the Steam Link to account for the resolution (I was streaming 1080P at 60Hz). I haven't found anything that gives me that kind of flexibility.
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