koss-20240930x10q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the quarterly period ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-3295

KOSS CORPORATION

(Exact Name of Registrant as Specified in its Charter)


DELAWARE		39-1168275
(State or other jurisdiction of		(I.R.S. Employer Identification No.)
incorporation or organization)

4129 North Port Washington Avenue, Milwaukee,

Wisconsin

53212

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (414) 964-5000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.005 per share	KOSS	Nasdaq Capital Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐		Accelerated filer ☐

Non-accelerated filer ☑		Smaller reporting company ☑

		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.). Yes ☐ No ☑

At October 28, 2024, there were 9,350,795 shares outstanding of the registrant’s common stock.

Table of Contents

KOSS CORPORATION

FORM 10-Q

September 30, 2024

INDEX


			Page

PART I	FINANCIAL INFORMATION		3
	Item 1.	Financial Statements (Unaudited)	3
		Condensed Consolidated Balance Sheets as of September 30, 2024 and June 30, 2024	3
		Condensed Consolidated Statements of Operations for the Three Months Ended September 30, 2024 and 2023	4
		Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2024 and 2023	5
		Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended September 30, 2024 and 2023	6
		Notes to Condensed Consolidated Financial Statements	7
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	13
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19
	Item 4.	Controls and Procedures	19
PART II	OTHER INFORMATION		19
	Item 1.	Legal Proceedings	19
	Item 1A.	Risk Factors	19
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20
	Item 6.	Exhibits	21

‎

Table of Contents

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

KOSS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)



	September 30, 2024		June 30, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	2,750,732	$	2,837,081
Short term investments		9,142,324		12,104,459
Accounts receivable, less allowance for credit losses of $1,922 at September 30, 2024 and June 30, 2024		1,388,610		1,208,319
Inventories		4,735,110		4,473,680
Prepaid expenses and other current assets		1,161,533		1,081,437
Interest receivable		114,615		170,429
Income taxes receivable		44,285		41,756
Total current assets		19,337,209		21,917,161

Equipment and leasehold improvements, net		1,527,451		1,223,391

Other assets:
Long term investments		7,997,286		4,994,327
Operating lease right-of-use asset		2,704,778		2,765,445
Cash surrender value of life insurance		6,535,023		6,299,155
Total other assets		17,237,087		14,058,927

Total assets	$	38,101,747	$	37,199,479

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	731,694	$	329,829
Accrued liabilities		1,113,106		462,858
Deferred revenue		249,032		229,384
Operating lease liability		242,848		239,688
Income taxes payable		28,225		35,899
Total current liabilities		2,364,905		1,297,658

Long-term liabilities:
Deferred compensation		2,290,498		2,093,124
Deferred revenue		119,745		119,787
Operating lease liability		2,479,824		2,541,734
Total long-term liabilities		4,890,067		4,754,645

Total liabilities		7,254,972		6,052,303

Stockholders' equity:
Common stock, $0.005 par value, authorized 20,000,000 shares; issued and outstanding 9,350,795 at September 30, 2024 and 9,299,795 at June 30, 2024, respectively		46,754		46,499
Paid in capital		13,523,356		13,404,477
Retained earnings		17,276,665		17,696,200
Total stockholders' equity		30,846,775		31,147,176

Total liabilities and stockholders' equity	$	38,101,747	$

SEC Form 10-Q filed by Koss Corporation