First, I must tell you this is a binary clock, so it works on powers of two. And I know of several different versions of binary clocks, but I can only speak for my own, so here we go ...
This clock is divided into three sections, each with two rows of lights. Left to right, the left-most two rows represent the hour, the middle rows represent the minutes, and the right-most two rows represent the seconds.
On my binary clock, reading from bottom up, the lights represent 1 (2 to the zero power), 2 (2 to the 1st power), 4 (2 to the 2nd power), and 8 (2 to the 3rd power). So we have 1,2,4 and 8 to work with (with which to work).
The hours columns of lights have the 2 and the 1 lit up, which equals 03.
The minutes columns have no lights on, so it's :00. So far we have 03:00.
The seconds columns have 2 & 1 on the left, and 2 on the right, which represents :32, giving us 03:00:32.
So Anonymous & Lisa - Papergrace were indeed correct with their guesses! Congratulations!
Unfortunately, you win nothing but the knowledge that you are very, very, smart. :-)
Thanks for playing, everyone!