UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 or 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): November 7, 2019

 

Koss Corporation

(Exact name of registrant as specified in its charter)

 

Delaware	0-3295	39-1168275
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

 

4129 North Port Washington Avenue, Milwaukee, Wisconsin 53212

(Address of principal executive offices)  (Zip code)

 

(414) 964-5000

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

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. ☐   

 

 

Item 2.02     Results of Operations and Financial Condition.

 

On November 7, 2019, Koss Corporation issued a press release announcing its financial results for the quarter ended September 30, 2019.  A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

 

The information in this report is being furnished pursuant to Item 2.02 Results of Operations and Financial Condition.  In accordance with General Instruction B.2 of Form 8-K, the information in this report shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

 

Item 9.01     Financial Statements and Exhibits.

 

(d) Exhibits

 

Number		Description
Exhibit 99.1		Press release of Koss Corporation dated November 7, 2019.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

November 7, 2019	KOSS CORPORATION
	By:	/s/ Michael J. Koss
		Michael J. Koss
		Chairman and Chief Executive Officer

 

3

 

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE	CONTACT:	Michael J. Koss
November 7, 2019		Chairman & CEO
		(414) 964-5000
		mjkoss@koss.com

 

Koss Corp. Releases First Quarter Results

 

Milwaukee, Wisconsin: Koss Corporation (NASDAQ SYMBOL: KOSS), the U.S. based high-fidelity headphone company, has reported its first quarter results for the quarter ended September 30, 2019.

 

Sales for the first quarter were $5,410,762, which is a 6.5% decrease from sales of $5,784,839 for the same three month period one year ago. The three month net loss was $310,749, compared to net income of $41,570 for the first quarter last year. Diluted and basic loss per common share for the quarter was $0.04 compared to income per common share of $0.01 for the same three month period one year ago.

 

"The decline in net sales for the quarter was due to export OEM sales last year that were not duplicated this year because the contract ended in early fiscal 2019," Michael J. Koss, Chairman and CEO, said today. "In addition, we experienced softness in key export markets offset by increased sales in the domestic mass retail and domestic distributor markets."

 

"The sales mix caused an unfavorable impact on gross margin from 31.7% last year to 24.9% in the current quarter," Koss explained. "Early in the current quarter, there were significant promotional back-to-school sales to a domestic mass retail customer at very low margins.  This promotional activity accounted for most of the decline in gross margin."

 

 

…

 

Koss Corporation markets a complete line of high-fidelity headphones, wireless Bluetooth® speakers, computer headsets, telecommunications headsets, active noise canceling headphones, wireless headphones, and compact disc recordings of American Symphony Orchestras on the Koss Classics® label.

 

This press release contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "may," "will," "should," "forecasts," "predicts," "potential," "continue," or the negative of such terms and other comparable terminology. These statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual events or results may differ materially. In evaluating forward-looking statements, you should specifically consider various factors that may cause actual results to vary from those contained in the forward-looking statements, such as general economic conditions, in particular, consumer demand for the Company's and its customers' products, competitive and technological developments, foreign currency fluctuations, and costs of operations. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances or new information. In addition, such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission.

 

 

Exhibit 99.1

 

 

KOSS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

		Three Months Ended
		September 30
		2019				2018*
Net sales		$	5,410,762			$	5,784,839
Cost of goods sold			4,063,308				3,953,655
Gross profit			1,347,454				1,831,184
Selling, general and administrative expenses			1,664,600				1,789,589
(Loss) income from operations			(317,146	)			41,595
Interest income			6,397				-
(Loss) income before income tax provision			(310,749	)			41,595
Income tax provision			-				25
Net (loss) income		$	(310,749	)		$	41,570
(Loss) income per common share:
Basic		$	(0.04	)		$	0.01
Diluted		$	(0.04	)		$	0.01
Weighted-average number of shares:
Basic			7,404,831				7,389,751
Diluted			7,404,831				7,483,866

 

 

*As adjusted for change in accounting principle

 

 

 

 

2