0001437749-20-018841 | 10-K | XBRL Viewer

Operating lease liability

423,639

645,470

276,947

265,443

Short-term debt

506,700

Total current liabilities

2,615,090

2,997,799

Long-term liabilities:

Deferred compensation

2,333,482

2,419,962

Operating lease liability

170,281

163,018

2,305,455

2,582,402

Total long-term liabilities

4,809,218

5,165,382

Total liabilities

7,424,308

8,163,181

Stockholders' equity:

Common stock, $0.005 par value, authorized 20,000,000 shares; issued and outstanding 7,404,831 and 7,382,706 shares, respectively

37,024

6,882,729

6,333,135

Total stockholder' equity

8,236,345

8,701,942

15,156,098

15,072,101

Total liabilities and stockholders' equity

$ 22,580,406

$ 23,235,282

[1]	Excludes approximately 2,786,225 and 2,523,513 stock options for the years ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive.

Consolidated Balance Sheets (Parentheticals) - USD ($)

Jun. 30, 2020

Jun. 30, 2019

Accounts receivable, allowance for doubtful accounts

$ 74,082

$ 2,617

^[1]

Common stock, par value (in dollars per share)

$ 0.005

Common stock, shares authorized (in shares)

20,000,000

Common stock, shares issued (in shares)

7,404,831

7,382,706

Common stock, shares outstanding (in shares)

7,404,831

7,382,706

[1]	Excludes approximately 2,786,225 and 2,523,513 stock options for the years ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive.

Consolidated Statements of Operations - USD ($)

12 Months Ended

Jun. 30, 2020

Jun. 30, 2019

^[1]

Net sales

$ 18,311,830

$ 21,842,097

Cost of goods sold

12,649,222

15,022,223

Gross profit

5,662,608

6,819,874

(Loss) income from operations

6,146,650

6,543,566

(484,042)

276,308

Interest income

(20,185)

(3,178)

(Loss) income before income tax provision (benefit)

(463,857)

279,486

Income tax provision (benefit)

1,740

(26,503)

$ (465,597)

$ 305,989

^[2],[3]

(Loss) income per common share:

$ (0.06)

$ 0.04

^[3]

$ (0.06)

$ 0.04

^[3]

Weighted-average number of shares:

Basic (in shares)

7,404,831

7,401,030

^[3]

Diluted (in shares)

7,404,831

7,407,827

^[3]

[1]	As adjusted for change in accounting policy (Note 3)
[2]	As adjusted for change in accounting policy (Note 3)
[3]	As adjusted for change in accounting policy (Note 3)

Consolidated Statements of Cash Flows - USD ($)

12 Months Ended

Jun. 30, 2020

Jun. 30, 2019

Operating activities:

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

$ (465,597)

$ 305,989

^[1],[2],[3]

Provision for doubtful accounts

56,386

23,422

^[1]

Depreciation of equipment and leasehold improvements

330,629

429,750

^[1]

Change in cash surrender value of life insurance

549,594

515,681

^[1]

Deferred income taxes

13,276

(13,276)

^[1]

(194,083)

(72,019)

^[1]

Change in deferred compensation accrual

63,520

175,953

^[1]

Deferred compensation paid

(150,000)

^[1]

Net changes in operating assets and liabilities:

Accounts receivable

1,281,693

1,031,180

^[1]

Inventories

1,312,654

(712,769)

^[1]

Prepaid expenses and other current assets

(133,758)

72,887

^[1]

Income taxes receivable

31,038

(13,285)

^[1]

Accounts payable

(608,668)

6,882

^[1]

Accrued liabilities

(70,414)

(138,448)

^[1]

Net cash provided by operating activities

(214,568)

(50,882)

^[1]

1,801,702

1,411,065

^[1]

Investing activities:

Purchase of equipment and leasehold improvements

(424,159)

(187,756)

^[1]

Life insurance premiums paid

(113,116)

(123,237)

^[1]

Net cash (used in) investing activities

(537,275)

(310,993)

^[1]

Financing activities:

Proceeds from SBA loan

506,700

^[1]

Proceeds from exercise of stock options

46,677

^[1]

Net cash provided by financing activities

506,700

46,677

^[1]

Net increase in cash and cash equivalents

1,771,127

1,146,749

^[1]

Cash and cash equivalents at beginning of year

^[1]

2,228,282

1,081,533

Cash and cash equivalents at end of year

$ 3,999,409

$ 2,228,282

^[1]

[1]	As adjusted for change in accounting policy (Note 3)
[2]	As adjusted for change in accounting policy (Note 3)
[3]	As adjusted for change in accounting policy (Note 3)

Consolidated Statements of Stockholders' Equity - USD ($)

Cumulative Effect, Period of Adoption, Adjustment [Member]

Common Stock [Member]

Cumulative Effect, Period of Adoption, Adjustment [Member]

Additional Paid-in Capital [Member]

Cumulative Effect, Period of Adoption, Adjustment [Member]

Retained Earnings [Member]

Cumulative Effect, Period of Adoption, Adjustment [Member]

Cumulative Effect, Period of Adoption, Adjusted Balance [Member]

Common Stock [Member]

Cumulative Effect, Period of Adoption, Adjusted Balance [Member]

Additional Paid-in Capital [Member]

Cumulative Effect, Period of Adoption, Adjusted Balance [Member]

Retained Earnings [Member]

Cumulative Effect, Period of Adoption, Adjusted Balance [Member]

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

Total

Balance (in shares) at Jun. 30, 2018

7,382,706

Balance at Jun. 30, 2018

$ 18,617

$ (18,617)

$ 36,914

$ 5,770,887

$ 8,395,953

$ 14,203,754

$ 36,914

$ 5,752,270

$ 8,414,570

$ 14,203,754

305,989

^[1],[2],[3]

Exercise of common stock options (in shares)

515,681

$ 515,681

22,125

Exercise of common stock options

$ 110

46,567

$ 46,677

Balance (in shares) at Jun. 30, 2019

7,404,831

7,382,706

Balance at Jun. 30, 2019

$ 37,024

6,333,135

8,701,942

$ 15,072,101

^[4]

(465,597)

Balance (in shares) at Jun. 30, 2020

549,594

$ 549,594

7,404,831

Balance at Jun. 30, 2020

$ 37,024

$ 6,882,729

$ 8,236,345

$ 15,156,098

[1]	As adjusted for change in accounting policy (Note 3)
[2]	As adjusted for change in accounting policy (Note 3)
[3]	As adjusted for change in accounting policy (Note 3)
[4]	Excludes approximately 2,786,225 and 2,523,513 stock options for the years ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Note 1 - Significant Accounting Policies

12 Months Ended

Jun. 30, 2020

Significant Accounting Policies [Text Block]

1.	SIGNIFICANT ACCOUNTING POLICIES

NATURE OF BUSINESS — Koss Corporation ("Koss"), a Delaware corporation, and its

100%

-owned subsidiaries (collectively the "Company"), reports its finances as a single reporting segment, as the Company's principal business line is the design, manufacture and sale of stereo headphones and related accessories. The Company leases its plant and office in Milwaukee, Wisconsin. The domestic market is served by domestic sales representatives and independent manufacturers' representatives working directly with certain retailers, distributors, and original equipment manufacturers. International markets are served by domestic sales representatives and sales personnel in the Netherlands and Russia which utilize independent distributors in several foreign countries. The Company has

two

subsidiaries, Koss Corp B.V. and Koss U.K. Limited ("Koss UK"), which were formed to comply with certain European Union ("EU") requirements. Koss Corp B.V. and Koss UK are non-operating and hold

assets.

BASIS OF CONSOLIDATION — The Consolidated Financial Statements include the accounts of Koss and its subsidiaries, Koss Corp B.V. and Koss UK, which are

100%

-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

REVENUE RECOGNITION —

Rev

enue

s from product sales are recognized when the customer obtains control of the product, which typically occurs upon shipment from the Company's facility. There are a very limited number of customers for which control does

not

pass until they have received the products at their facility. Revenue from product sales is adjusted for estimated warranty obligations and variable consideration, which are detailed below. The amount of revenue recognized is to reflect the consideration expected to be received for those goods or services.

Warranties

- The Company offers a lifetime warranty to consumers in the United States and certain other countries. This lifetime warranty creates a future performance obligation. The Company

determines

the standalone selling price for this performance obligation using the cost plus method. There are also certain foreign distributors that receive warranty repair parts and replacement headphones to satisfy warranty obligations in those countries. The Company defers revenue to recognize the future obligations related to these warranties. The deferred revenue is based on historical analysis of warranty claims relative to sales. This deferred revenue reflects the Company's best estimates of the amount of warranty returns and repairs it will experience during those future periods. If future warranty activity varies from the estimates, the Company will adjust the estimated deferred revenue, which would affect net sales and operating results in the period that such adjustment becomes known. The Company typically receives payment for product at the time of shipment or under normal collection terms, which are generally

days. The Company estimates that the warranty related performance obligation is satisfied within

one

three

years and therefore uses that same time frame for recognition of the deferred revenue, using amortization of

50%

in the

first

year,

30%

in the

second

year, and

20%

in the

third

year for domestic sales.

Reserves for Variable Consideration

- Revenue from product sales is recorded at the net sales price, which includes estimates of variable consideration for which reserves are established and which result from returns, rebates, and co-pay assistance that are offered within contracts between the Company and its customers. Overall, these reserves reflect the Company's best estimates of the amount of consideration to which it is entitled based on the terms of the contract. If actual results in the future vary from the estimates, the Company will adjust these estimates, which would affect net sales and operating results in the period such variances become known.

Product Returns

- The Company generally offers customers a limited right of return. The Company estimates the amount of product sales that

may

be returned by its customers and records the estimate as a reduction of revenue in the period the related product revenue is recognized. Product return liabilities are estimated using historical sales and returns information. If actual results in the future vary from the estimates, the Company will adjust these estimates, which would affect net sales and operating results in the period such variances become known.

Volume Rebates

- The Company offers volume rebates to certain customers in the United States and certain foreign distributors. These volume rebates are tied to sales volume within specified periods. The amount of revenue is reduced for variable consideration related to customer rebates, which are calculated using expected values and is based on program specific factors such as expected rebate percentages and expected volumes. Changes in such accruals

may

be required if actual sales volume differs from estimated sales volume, which would affect net sales and operating results in the period such variances become known.

Sales Commissions

- The Company has elected the practical expedient of

not

capitalizing sales commissions.

RESEARCH AND DEVELOPMENT —

Research and development is primarily comprised of product prototypes and testing. These activities charged to operations as a component of selling, general and administrative expenses in the accompanying Consolidated Statements of Operations amounted to

$397,360

and

$334,789

2020

and

2019

respectively.

ADVERTISING COSTS — Advertising costs included within selling, general and administrative expenses in the accompanying Consolidated Statements of Operations were

$54,592

2020

and

$47,657

2019

. Such costs are expensed as incurred.

INCOME TAXES — The Company operates as a C Corporation under the Internal Revenue Code (the "Code"). Amounts provided for income tax expense are based on income reported for financial statement purposes and do

not

necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred income tax assets and liabilities are adjusted through the provision for income taxes. The differences relate principally to different methods used for depreciation and amortization for income tax purposes, net operating losses, capitalization requirements of the Code, allowances for doubtful accounts, provisions for excess and obsolete inventory, stock-based compensation, warranty reserves, and other income tax related carryforwards. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized.

PATENT COSTS — The Company incurs on-going legal fees and filing costs related to the patent portfolio. These costs are expensed in the period they are incurred since

patent legal costs were probable to provide a future economic benefit.

INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE — Income (loss) per common and common stock equivalent share is calculated under the provisions of Topic

260

in the Accounting Standards Codification ("ASC") which provides for calculation of “basic” and “diluted” income (loss) per share. Basic income (loss) per common and common stock equivalent share includes

dilution and is computed by dividing net income (loss) by the weighted average common shares outstanding for the period. Diluted income (loss) per common and common stock equivalent share reflects the potential dilution of securities that could share in the earnings of an entity. See Note

for additional information on income (loss) per common and common stock equivalent share.

CASH AND CASH EQUIVALENTS — The Company considers depository accounts and investments with a maturity at the date of acquisition and expected usage of

three

months or less to be cash and cash equivalents. The Company maintains its cash on deposit at a commercial bank located in the United States of America. The Company periodically has cash balances in excess of insured amounts. The Company has

not

experience

and does

not

expect to inc

ur,

any losses on these deposits.

ACCOUNTS RECEIVABLE — Accounts receivable consists of unsecured trade receivables due from customers. An allowance for doubtful accounts is recorded for significant past due receivable balances based on a review of the past due item and general economic conditions.

INVENTORIES —

As of

June 30,

2020

and

2019

, the Company's inventory was recorded using standard cost which approximates the lower of FIFO cost or net realizable value.

Effective

June 30, 2019,

the Company changed its accounting principle for inventory and discontinued the use of the last-in,

first

-out ("LIFO") method for inventory valuation and adopted the

first

-in,

first

-out ("FIFO") method of inventory. This change in accounting principle did

not

change the inventory valuation as of

June 30, 2019

as the LIFO reserve was

$0.

The results of operations for the

year ended

June 30, 2019

was

not

impacted by discontinuing the use of LIFO since the LIFO reserve was reduced to

effective

June 30, 2017.

The carrying value of inventory is reviewed for impairment on at least a quarterly basis or more frequently if warranted due to changes in market conditions. See

Note

for additional information on inventory.

EQUIPMENT AND LEASEHOLD IMPROVEMENTS — Equipment and leasehold improvements are stated at cost. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Major expenditures for property and equipment and significant renewals are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation and amortization are removed from the accounts and any resulting gains or losses are included in operations. See Note

for additional information on equipment and leasehold improvements.

LEASES —

The C

ompany determines if a contract is a lease at the date of inception. The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former chairman, and

is an operating lease.

Operating leases are reported on the Company's

Consolidated Balance Sheets

as operating lease right-of-use ("ROU") assets and operating lease liabilities. Operating lease

ROU

assets and liabilities are valued at the present value of the future lease payment obligations. Operating lease expense is recorded on a straightline basis over the life of the lease taking into account expected renewal periods.

LIFE INSURANCE POLICIES — Life insurance policies are stated at cash surrender value or at the amount the Company would receive in the case of split-dollar arrangements. Increases in cash surrender value are included in selling, general and administrative expenses in the Consolidated Statements of Operations, which is where the annual premiums are recorded.

DEFERRED COMPENSATION — The Company's deferred compensation liabilities are for a current and former officer and are calculated based on compensation, years of service and mortality tables. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. See Note

for additional information on deferred compensation.

FAIR VALUE OF FINANCIAL INSTRUMENTS — Cash equivalents, accounts receivable, accounts payable and short-term debt approximate fair value based on the short maturity of these instruments.

IMPAIRMENT OF LONG-LIVED ASSETS — The Company evaluates the recoverability of the carrying amount of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset

may

not

be fully recoverable. The Company evaluates the recoverability of equipment and leasehold improvements annually,

or more frequently if events or circumstances indicate that an asset might be impaired. If an asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Management determines fair value using an undiscounted future cash flow analysis or other accepted valuation techniques.

impairments of the Company's long-lived assets were recorded in the years ended

June 30,

2020

2019

LEGAL COSTS — All legal costs related to litigation, for which the Company is liable, are charged to operations as incurred, except settlements, which are expensed when a claim is probable and can be

reasonably estimated. Recoveries of legal costs are recorded when the amount and items to be paid are confirmed by the

third

party

. Proceeds from the settlement of legal disputes are recorded in income when the amounts are determinable and the collection is certain.

STOCK-BASED COMPENSATION — The Company has a stock-based employee compensation plan, which is described more fully in Note

12.

The Company accounts for stock-based compensation in accordance with ASC

718

"Compensation - Stock Compensation". Under the fair value recognition provisions of this statement, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period.

USE OF ESTIMATES — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reported

periods

. Actual results could differ from those estimates.

Note 2 - New Accounting Pronouncements

12 Months Ended

Jun. 30, 2020

Accounting Standards Update and Change in Accounting Principle [Text Block]

2.	New Accounting Pronouncements

December 2019,

the FASB issued ASU

2019

12,

"Simplifying the Accounting for Income Taxes (Topic

740

)", which removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC

740.

This guidance is effective for annual reporting periods, and interim periods within those reporting periods, beginning after

December 15, 2020

with early adoption permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings in the period of adoption. The company is currently evaluating the impacts the adoption of this guidance will have on its Condensed Consolidated Financial Statements.

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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Note 3 - Change in Accounting Policy

12 Months Ended

Jun. 30, 2020

Accounting Changes and Error Corrections [Text Block]

3.	CHANGE IN ACCOUNTING POLICY

During the

first

quarter of fiscal

2020,

the Company changed its method of recording stock-based compensation expense. Under the new accounting

policy

, stock-based compensation expense is recorded on a straight-line basis over the vesting period and forfeitures are recognized when they occur. Under the previous method, the Company estimated future forfeitures and the expected number of awards that would vest and subsequently adjusted for forfeitures. The Company believes this method of recording stock-based compensation expense on a straight-line basis over the vesting period is preferable since it is more reflective of the stock options that will actually vest.

The cumulative effect of the changes in the

June 30, 2019

Consolidated Balance Sheet for the change in

policy

related to stock-based compensation expense

applied retrospectively

was as follows:

			Stock-Based
Balance Sheet	As Previously		Compensation			As
June 30, 2019	Reported		Adjustment			Adjusted
Equity:
Paid in capital	$	6,186,393	$	146,742		$	6,333,135
Retained earnings	$	8,848,684	$	(146,742	)	$	8,701,942

The impact of the change in principle on the Consolidated Statement of Operations for th

year ended

June 30, 2019

was as follows:

			Stock-Based
Statement of Operations	As Previously		Compensation			As
Year ended June 30, 2019	Reported		Adjustment			Adjusted
Selling, general and administrative expenses	$	6,415,441	$	128,125		$	6,543,566
Income from operations		404,433		(128,125	)		276,308
Net income	$	434,114	$	(128,125	)	$	305,989

Income per common share
Basic	$	0.06	$	(0.02	)	$	0.04
Diluted	$	0.06	$	(0.02	)	$	0.04

The impact of the change in principle on the Consolidated Statement of Cash Flows for

the

year ended

June 30, 2019

was as follows:

			Stock-Based
Statement of Cash Flows	As Previously		Compensation			As
Year ended June 30, 2019	Reported		Adjustment			Adjusted
Operating activities:
Net income	$	434,114	$	(128,125	)	$	305,989
Stock-based compensation expense	$	387,556	$	128,125		$	515,681

Note 4 - Revenue Recognition

12 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Text Block]

4.	REVENUE RECOGNITION

The Company disaggregates it's net sales by geographical location as it believes it best depicts how the nature, timing and uncertainty of net sales and cash flows are affected by economic factors. The following table summarizes net sales by geographical location:

	2020			2019
United States	$	15,161,311	$	15,255,741
Export		3,150,519		6,586,356
Net Sales	$	18,311,830	$	21,842,097

Deferred revenue relates primarily to consumer and customer warranties. These constitute future performance obligations and the Company defers revenue related to these future performance obligations. The Company recognized revenue, which was included in the deferred revenue liability at the beginning of the periods, of

$427,193

and

$497,351

in the

years ended

June 30, 2020

and

2019

, respectively, for performance obligations related to consumer and customer warranties. The deferred revenue liability was

$859,370

as of

June 30,

2018

. The Company estim

ates that the deferred revenue performance obligations are satisfied within

one

three

years and therefore uses the same time frame for recognition of the deferred revenue.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Note 5 - Inventories

12 Months Ended

Jun. 30, 2020

Inventory Disclosure [Text Block]

5.	INVENTORIES

The components of inventories at

June 30,

2020

and

2019

were as follows:

	2020			2019
Raw materials	$	1,953,031		$	1,848,340
Finished goods		5,149,200			6,604,408
		7,102,231			8,452,748
Reserve for obsolete inventory		(1,563,437	)		(1,601,300	)
Total inventories	$	5,538,794		$	6,851,448

Note 6 - Equipment and Leasehold Improvements

12 Months Ended

Jun. 30, 2020

Property, Plant and Equipment Disclosure [Text Block]

6.	EQUIPMENT AND LEASEHOLD IMPROVEMENTS

The major categories of equipment and leasehold improvements at

June 30,

2020

and

2019

are summarized as follows:

	Estimated
	useful lives (in years)	2020		2019
Machinery and equipment	5 - 10	$	593,595	$	593,595
Furniture and office equipment	5 - 10		357,351		357,351
Tooling	5		4,310,917		4,261,077
Computer equipment	3 - 5		658,028		758,819
Leasehold improvements	3 - 10		2,682,933		2,517,226
Assets in progress	N/A		327,348		118,737
			8,930,172		8,606,805
Less: accumulated depreciation and amortization			7,946,531		7,716,695
Equipment and leasehold improvements, net		$	983,641	$	890,110

Note 7 - Income Taxes

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Text Block]

7.	INCOME TAXES

The Company utilizes the liability method of accounting for income taxes. The liability method measures the expected income tax impact of future taxable income and deductions implicit in the Consolidated Balance Sheets. The income tax (benefit) provision in

2020

and

2019

consisted of the following:

Year Ended June 30,	2020			2019
Current:
Federal	$	(15,037	)	$	(13,277	)
State		3,501			25
Deferred		13,276			(13,251	)
Total income tax provision (benefit)	$	1,740		$	(26,503	)

The

2020

and

2019

tax results in an effective rate different than the federal statutory rate because of the following:

Year Ended June 30,	2020			2019
Federal income tax liability (benefit) at statutory rate	$	(97,409	)	$	85,599
State income tax liability, net of federal income tax effect		2,765			20
(Decrease) increase in valuation allowance		61,948			(328,541	)
Current year permanent items		35,931			14,687
R&D credit		(22,568	)		(15,000	)
Return-to-provision		(30,040	)		8,433
Expiration of deferred tax assets		44,790			189,186
State tax rate change		18,962			-
Other		(12,639	)		19,087
Total income tax provision (benefit)	$	1,740		$	(26,529	)

Temporary differences which give rise to deferred income tax assets and liabilities at

June 30,

2020

and

June

30,

2019

include:

	2020			2019
Deferred income tax assets:
Deferred compensation	$	614,018		$	642,424
Stock-based compensation		249,313			228,981
Accrued expenses and reserves		479,112			503,726
Deferred revenue		146,841			202,102
Federal and state net operating loss carryforwards		606,730			558,117
Credit carryforwards		216,484			139,504
Equipment and leasehold improvements		134,045			122,714
Valuation allowance		(2,444,035	)		(2,382,087	)
Total deferred income tax assets		2,508			15,481

Deferred income tax liabilities:
Other		(2,508	)		(2,205	)
Net deferred income tax assets	$	-		$	13,276

Deferred income tax balances reflect the effects of temporary differences between the tax bases of assets and liabilities and their carrying amounts. These differences are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. The recognition of these deferred tax balances will be realized through normal recurring operations and, as such, the Company has recorded the value of such expected benefits. The Company has federal net operating loss carryforwar

ds of

$352,281

which expire in fiscal year

2037

and

$545,245

which can be carried forward indefinitely. The Company has state net operating loss carryforwards totaling approximately $

6,358,000

in Wisconsin, which expire in fiscal year

2025

through

2039

, and

$342,286

in other states.

Generally accepted accounting principles

prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. There were

additional significant matters determined to be unrecognized tax benefits taken or expected to be taken in a tax return that have been recorded on the Company's Consolidated Financial Statements for the

years

ended

June 30,

2020

and

2019

Additionally,

GAAP

provides guidance on the recognition of interest and penalties related to income taxes.

interest or penalties related to income taxes has been accrued or recognized as of and for the years ended

June 30,

2020

2019

. The Company records interest related to unrecognized tax benefits in interest expense.

The Company does

not

believe it has any unrecognized tax benefits as of

June 30,

2020

2019

. Any changes to the Company's unrecognized tax benefits during the fiscal years ended

June 30,

2020

and

2019

would have impacted the effective tax rate.

The Company files income tax returns in the United States federal jurisdiction and in several state jurisdictions. The Company's federal tax returns for tax years and state income tax returns are open for the standard regulatory period.

The following are the changes in the valuation allowance

	Balance,			Decrease (Increase)
	beginning			in valuation			Balance,
Year Ended June 30,	of year			allowance			end of year
2020	$	(2,382,087	)	$	(61,948	)	$	(2,444,035	)
2019	$	(2,710,628	)	$	328,541		$	(2,382,087	)

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Note 8 - Credit Facility and SBA Loan

12 Months Ended

Jun. 30, 2020

Debt Disclosure [Text Block]

8.	CREDIT FACILITY AND SBA LOAN

May

14,

2019,

the Company entered into a secured credit facility ("Credit Agreement") with Town Bank (“Lender”) for a

two

-year term expiring on

May 14, 2021.

The Credit Agreement provides for an

$5,000,000

revolving secured credit facility with an

interest rate

1.50%

over LIBOR. The Credit Agreement also provides for letters of credit for the benefit of the Company of up to a sublimit of

$1,000,000.

There are

unused line fees in the credit facility. The Company and the Lender also entered into a General Business Security Agreement dated

May

14,

2019

under which the Company granted the Lender a security interest in substantially all of the Company's assets in connection with the Company's obligations under the Credit Agreement. The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type. The negative covenants include restrictions on other indebtedness, liens, fundamental changes, certain investments, disposition of assets, mergers and liquidations, among other restrictions. As of

June 30,

2020

, the Company was in compliance with all covenants related to the Credit Agreement and there were

outstanding borrowings on the facility.

As of

June 30, 2020

and

2019

there were

outstanding borrowings on the facility.

April 13, 2020,

the Company received an unsecured loan (the "SBA Loan") under the Small Business Administration ("SBA") Paycheck Protection Program of the CARES Act through Town Bank. The SBA Loan funds that were disbursed on

April 14, 2020,

have a

two

-year term expiring on

April 14, 2022.

The SBA Loan has a principal amount of

$506,700

with an interest rate of

1.0%.

The Company applied for forgiveness on

August 7, 2020,

for

the full amount of the SBA Loan using the allowed

twenty-four

week period

, which is why the debt is classified as short-term on the consolidated balance sheet. Interest accrues during the period between funding and the date the loan is forgiven.

The Company incurs interest expense primarily related to its secured credit facility. There was

interest expense for the years ended

June 30,

2020

2019

Note 9 - Accrued Liabilities

12 Months Ended

Jun. 30, 2020

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

9.	ACCRUED LIABILITIES

Accrued liabilities

as of

June 30,

2020

and

2019

were as follows:

	2020		2019
Cooperative advertising and promotion allowances	$	158,770	$	188,985
Customer credit balances		16,363		65,937
Current deferred compensation		150,000		150,000
Employee benefits		80,399		60,178
Legal and professional fees		68,200		65,914
Bonus and profit-sharing		8,098		18,694
Sales commissions and bonuses		53,647		51,026
Other		44,622		49,779
Total accrued liabilities	$	580,099	$	650,513

Note 10 - Deferred Compensation

12 Months Ended

Jun. 30, 2020

Retirement Benefits [Text Block]

10.	DEFERRED COMPENSATION

The Company has deferred compensation agreements with a former and current officer. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. The Company's current and non-current deferred compensation obligations are included in accrued liabilities and deferred compensation, respectively, in the Consolidated Balance Sheets. The net present value was calculated for the former officer using a discount factor of

1.00%

as of

June 30,

2020

and

2.60%

as of

June 30,

2019

. The net present value was calculated for the current officer using a discount factor o

3.10%

June 30,

2020

and

4.80%

as of

June 30,

2019

The Board of Directors entered into an agreement to continue the

1991

base salary of the former chairman for the remainder of his life. These payments began in the fiscal year ended

June 30, 2015,

and payments of

$150,000

were made under this arrangement for the years ended

June 30,

2020

and

2019

. The Company has a deferred compensation liability of

$416,883

and

$540,379

recorded as of

June 30,

2020

and

2019

, respectively. Deferred compensation expense of

$26,504

and

$17,495

was recognized under this arrangement in

2020

and

2019

, respectively.

The Board of Directors has approved a supplemental retirement plan for an officer that calls for annual cash compensation following retirement from the Company in an amount equal to

of base salary, as defined in the agreement, multiplied by the number of years of service to the Company. The retirement payments are to be paid monthly to the officer until his death and then to his surviving spouse monthly until her death. The Company has a deferred compensation liability of

$2,066,599

and

$2,029,583

recorded as of

June 30,

2020

and

2019

, respectively. Deferred compensation expense of

$37,016

and

$158,458

was recognized under this arrangement in

2020

and

2019

, respectively. The current officer's retirement date is assumed to be

October

2029

, which is

years later than previously assumed.

The entire disclosure for retirement benefits.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
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Note 11 - (Loss) Income Per Common and Common Stock Equivalent Share

12 Months Ended

Jun. 30, 2020

Earnings Per Share [Text Block]

11.	(LOSS) INCOME PER COMMON AND COMMON STOCK EQUIVALENT SHARE

Basic (loss) income per share is computed based on the weighted-average number of common shares outstanding. Diluted (loss) income per common share is calculated assuming the exercise of stock options except where the result would be anti-dilutive. The following table reconciles the numerator and denominator used to calculate basic and diluted income per share:

	Year Ended
	2020				2019*
Numerator
Net (loss) income	$	(465,597	)	$	305,989

Denominator
Weighted average shares, basic		7,404,831			7,401,030
Dilutive effect of stock compensation awards (1)		-			6,797
Diluted shares		7,404,831			7,407,827

Net (loss) income attributable to common shareholders per share:
Basic	$	(0.06	)	$	0.04
Diluted	$	(0.06	)	$	0.04

(

) Excludes approximate

2,786,225

and

2,523,513

weighted average s

tock options for the years ended

June 30,

2020

and

2019

, respectively, as the impact of such awards was anti-dilutive.

*As adjusted for change in accounting

policy

(Note

)

Note 12 - Stock Options

12 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Text Block]

12.	STOCK OPTIONS

2012,

pursuant to the recommendation of the Board of Directors, the stockholders ratified the creation of the Company's

2012

Omnibus Incentive Plan (the

“2012

Plan”), which superseded the

1990

Flexible Incentive Plan (the

"1990

Plan"). The

2012

Plan is administered by a committee of the Board of Directors and provides for granting of various stock-based awards including stock options to eligible participants, primarily officers and certain key employees. A total of

2,000,000

shares of common stock were available under the terms of the

2012

Plan plus shares outstanding under the

1990

Plan which expire or are otherwise forfeited, canceled or terminated after

July 25, 2012,

the Effective Date of the

2012

Plan. As of

June 30,

2020

, there were

770,308

options available for future grants. Options vest over a

three

five

year period from the date of grant, with a maximum term of

five

ten

years.

The Company's policy is to issue new shares when stock options are exercised.

The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. The resulting compensation cost for fixed awards with graded vesting schedules is amortized on a straight-line basis over the vesting period for the entire award.

Forfeitures are accounted for as they occur. The expected term of awards granted is determined based on historical experience with similar awards, giving consideration to the expected term and vesting schedules. The expected volatility is determined based on the Company's historical stock prices over the most recent period commensurate with the expected term of the award. The risk-free interest rate is based on U.S. Treasury

zero

-coupon issues with a remaining term commensurate with the expected term of the award.

As of

June 30,

2020

, there was

$1,156,492

of total unrecognized compensation cost related to stock options granted under the

2012

Plan and

1990

Plan. This cost is expected to be recognized over a weighted average period of

2.83

years. The Company recognized stock-based compensation expense o

$549,594

and

$515,681

2020

and

2019

, respectively. These expenses were included in selling, general and administrative expenses.

Options are granted at a price equal to or greater than the market value of the common stock on the date of grant. The per share weighted average fair value of the stock options granted during the years ended

June 30,

2020

and

2019

were

$1.26

and

$1.57

, respectively. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. For the options granted in

2020

and

2019

, the Company used the following weighted-average assumptions:

	2020			2019
Expected stock price volatility		74	%		66	%
Risk free interest rate		1.87	%		2.86	%
Expected dividend yield		—	%		—	%
Expected life of options (years)		6.1			5.8

The following table identifies options granted, exercised, canceled, or available for exercise pursuant to the

1990

Plan and the

2012

Plan:

										Aggregate
								Weighted		Intrinsic
						Weighted		Average		Value of
				Stock		Average		Remaining		In-The-
	Number of			Options		Exercise		Contractual		Money
	Shares			Price Range		Price		Life - Years		Options
Shares under option at June 30, 2018		2,405,000		1.77 7 - 6.28 28		$	3.31		3.61	$	—
Granted		585,000		2.63 3 - 2.92 92		$	2.79
Exercised		(22,125	)	1.77 7 - 2.24 24		$	2.11
Expired		(302,000	)	1.77 7 - 5.83 83		$	5.62
Forfeited		(73,000	)		1.77 7 - 2.65 65	$	2.22
Shares under option at June 30, 2019		2,592,875		1.77 7 - 6.28 28		$	2.96		4.23	$	48,280
Granted		555,000		1.97 7 - 2.17 17		$	2.08
Expired		(362,000	)	2.20 0 - 6.28 28		$	3.53
Forfeited		(64,000	)		1.77 7 - 2.65 65	$	2.15
Shares under option at June 30, 2020		2,721,875		1.77 7 - 6.00 00		$	2.73		4.82	$	—
Exercisable as of June 30, 2019		1,320,291		1.77 7 - 6.28 28		$	3.45		2.20	$	9,788
Exercisable as of June 30, 2020		1,408,709		1.77 7 - 6.00 00		$	3.12		2.61	$	—

The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of the Company's stock on

any given date

and the exercise price, multiplied by the number of in-the-money outstanding and exercisable stock options.

A summary of intrinsic value and cash received from stock option exercises and fair value of vested stock options for the fiscal years ended

June 30,

2020

and

2019

is as follows:

	2020		2019
Total intrinsic value of stock options exercised	$	—	$	34,797
Cash received from stock option exercises	$	—	$	46,677
Total fair value of stock options vested	$	483,461	$	374,639
Total recognized tax benefit	$	—	$	9,198

				Weighted
				Average
				Grant Date
	Shares			Fair Value
Non-vested as of June 30, 2018		1,189,918			0.90
Granted		585,000			1.57
Vested		(429,334	)		0.87
Forfeited		(73,000	)		1.33
Non-vested as of June 30, 2019		1,272,584			1.19
Granted		555,000			1.26
Vested		(450,418	)		1.07
Forfeited		(64,000	)		1.39
Non-vested as of June 30, 2020		1,313,166			1.26

Note 13 - Stock Repurchase Program

12 Months Ended

Jun. 30, 2020

Stock Purchase Derivative Liability and Treasury Stock [Text Block]

13.	STOCK REPURCHASE PROGRAM

April

1995,

the Board of Directors approved a stock repurchase program authorizing the Company to purchase from time to time up to $

2,000,000

of its common stock for its own account. Subsequently, the Board of Directors periodically has approved increases in the amount authorized for repurchase under the program. As of

June 30,

2020

, the Board had authorized the repurchase of an aggregate of

$45,500,000

of common stock under the stock repurchase program, of which

$43,360,247

had been expended.

shares were repurchased in

2020

2019

The Company has an agreement with the former chairman, in the event of his death, at the request of the executor of his estate, to repurchase his Company common stock from his estate. The Company does

not

have the right to require the estate to sell stock to the Company. As of

June 30,

2019

and

June 30,

2020

, the estate of the former chairman does

not

hold a material amount of Company stock. As such, there is

exposure that the executor of the former chairman's estate

may

require the Company to repurchase a material amount of stock in the event of his death. The repurchase price is

95%

of the fair market value of the common stock on the date that notice to repurchase is provided to the Company. The total number of shares to be repurchased will be sufficient to provide proceeds which are the lesser of

$2,500,000

or the amount of estate taxes and administrative expenses incurred by his estate. The Company

may

elect to pay the purchase price in cash or

may

elect to pay cash equal to

25%

of the total amount due and to execute a promissory note at the prime rate of interest for the balance payable over

four

years. The Company maintains a

$1,150,000

life insurance policy to fund a substantial portion of this obligation.

Note 14 - Leases

12 Months Ended

Jun. 30, 2020

Lessee, Operating Leases [Text Block]

14.

LEASES

The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former Chairman. On

January 5, 2017

, the lease was renewed for a period of

five

years, ending

June 30, 2023

, and is being accounted for as an operating lease. The lease extension maintained the rent at a fixed rate of

$380,000

per year and included an option to renew at the same rate for an additional

five

year

s ending

June 30, 2028

. The Company is responsible for all property maintenance, insurance, taxes and other normal expenses related to ownership.

The Company used its incremental borrowing rate as of

July 1, 2017,

the retrospective date of adoption of ASU

2016

(Topic

842

) Leases, to calculate the net present value of the operating lease ROU asset and liability. The

five

year renewal option was included in the calculation of the ROU asset and liability as the Company believes it is more likely than

not

to exercise its right to renew. The non-lease components of the agreement related to common area maintenance charges are accounted for separately.

Supplemental information related to lease expense and valuation of the ROU asset and liability was as follows:

	Year Ended
	2020			2019
Operating lease cost	$	380,000		$	380,000
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(380,000	)	$	(380,000	)
Weighted-average remaining lease term (in years)		8			9
Weighted-average discount rate		4.25	%		4.25	%

The maturity schedule of future minimum lease payments and reconciliation to the operating lease liabilities reported on the

2020

Consolidated Balance Sheet is as follows:

Year Ending June 30,
2021	$	380,000
2022		380,000
2023		380,000
2024		380,000
2025		380,000
Thereafter		1,140,000
Total lease payments		3,040,000
Present value adjustment		(457,598	)
Total lease liabilities	$	2,582,402

Note 15 - Employee Benefit Plans

12 Months Ended

Jun. 30, 2020

Compensation and Employee Benefit Plans [Text Block]

15.	EMPLOYEE BENEFIT PLANS

Substantially all domestic employees are participants in the Koss Employee Stock Ownership Trust ("KESOT") under which an annual contribution in either cash or common stock

may

be made at the discretion of the Board of Directors.

contributions were made for the fiscal years

2020

2019

The Company maintains a retirement savings plan under Section

401

(k) of the Internal Revenue Code. This plan covers all employees of the Company who have completed

one

full fiscal quarter of service. Matching contributions can be made at the discretion of the Board of Directors. For fiscal years

2020

and

2019

, the matching contribution was

75%

and

50%

of employee contributions to the plan, respectively. Vesting of Company contributions occurs immediately. Company contributions were

$252,293

and

$160,171

during

2020

and

2019

, respectively.

Note 16 - Concentrations

12 Months Ended

Jun. 30, 2020

Concentration Risk Disclosure [Text Block]

16.	CONCENTRATIONS

The

Company's sales to its largest single customer, Wal-Mart, were approximately

18%

and

18%

of net sales in fiscal year

2020

and

2019

, respectively. Amazon, the

second

largest single customer, was approximately

11%

and

of net sales in fiscal year

2020

and

2019

, respectively. The

five

largest customers of the Company (including Wal-Mart and Amazon in both years) accounted for approximately

48%

and

47%

of net sales in fiscal years

2020

and

2019

, respectively. Accounts receivable from Wal-

Mar

t as of

June 30,

2020

and

June

30,

2019

, represented approximately

and

33%

of trade account receivables, respectively. Amazon accounts receivable as of

June 30,

2020

and

June 30,

2019

, were

17%

and

17%

of trade accounts receivables, respectively. The majority of international customers, outside of Canada, purchase products on a cash against documents or cash in advance basis. Approximately

11%

and

10%

of the Company's trade accounts receivable at

June 30,

2020

and

2019

, were foreign receivables denominated in U.S. dollars.

The Company uses contract manufacturing facilities in the People's Republic of China. The majority of the contract manufacturing is done by

four

vendors with

one

vendor representing approximately

70%

of the manufacturing costs. The Company has a long-term relationship with this vendor. However, increased costs from the vendor or an interruption of supply from this vendor could have a material adverse effect on the Company's profit margins and profitability.

Note 17 - Legal Matters

12 Months Ended

Jun. 30, 2020

Legal Matters and Contingencies [Text Block]

17.	LEGAL MATTERS

As of

June 30,

2020

, the Company is involved in the following matter

described below:

•

As previously reported, the Company has launched a program focused on enforcing its intellectual property and, in particular, certain of its patent portfolio. The Company has continued to enforce its intellectual property by filing complaints against certain parties alleging infringement on the Company's patents relating to its wireless audio technology. In the year ended

June 30, 2020

, the Company recovered approximately

$385,000

of fees and costs that were involved with the underlying efforts to enforce this portfolio. These costs primarily relate to legal fees, expenses, time and effort of its management team, and other costs involved with the underlying efforts to enforce certain aspects of its portfolio. In the event that a monetary award or judgment is received by the Company in connection with these complaints, all or portions of such amounts

may

be due to

third

parties. Depending on the response to and the underlying results of the enforcement program, the Company

may

continue to litigate its claims, enter into licensing arrangements or reach some other outcome potentially advantageous to its competitive position.

•

The Company was notified by One-E-Way, Inc. that some of the Company's wireless products

may

infringe on certain One-E-Way patents.

lawsuits involving these allegations have yet been filed and served on the Company. The Company is currently investigating whether these allegations have any merit. Depending on the results of the investigation and the defense of these allegations, the ultimate resolution of this matter

may

have a material effect on the Company's financial statements. The Company estimates that this matter will ultimately be resolved at a cost of approximately

$20,000

$200,000

and has accrued the lower amount as of

June 30, 2020.

The ultimate resolution of these matters is

not

determinable unless otherwise noted.

We also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving these claims against us, individually or in aggregate, will

not

have a material adverse impact on our Consolidated Financial Statements, these matters are subject to inherent uncertainties and management's view of these matters

may

change in the future.

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2020
Accounting Policies [Abstract]
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]	BASIS OF CONSOLIDATION — The Consolidated Financial Statements include the accounts of Koss and its subsidiaries, Koss Corp B.V. and Koss UK, which are 100% -owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Revenue from Contract with Customer [Policy Text Block]	REVENUE RECOGNITION — Rev enue s from product sales are recognized when the customer obtains control of the product, which typically occurs upon shipment from the Company's facility. There are a very limited number of customers for which control does not pass until they have received the products at their facility. Revenue from product sales is adjusted for estimated warranty obligations and variable consideration, which are detailed below. The amount of revenue recognized is to reflect the consideration expected to be received for those goods or services. Warranties - The Company offers a lifetime warranty to consumers in the United States and certain other countries. This lifetime warranty creates a future performance obligation. The Company determines the standalone selling price for this performance obligation using the cost plus method. There are also certain foreign distributors that receive warranty repair parts and replacement headphones to satisfy warranty obligations in those countries. The Company defers revenue to recognize the future obligations related to these warranties. The deferred revenue is based on historical analysis of warranty claims relative to sales. This deferred revenue reflects the Company's best estimates of the amount of warranty returns and repairs it will experience during those future periods. If future warranty activity varies from the estimates, the Company will adjust the estimated deferred revenue, which would affect net sales and operating results in the period that such adjustment becomes known. The Company typically receives payment for product at the time of shipment or under normal collection terms, which are generally 30 - 60 days. The Company estimates that the warranty related performance obligation is satisfied within one to three years and therefore uses that same time frame for recognition of the deferred revenue, using amortization of 50% in the first year, 30% in the second year, and 20% in the third year for domestic sales. Reserves for Variable Consideration - Revenue from product sales is recorded at the net sales price, which includes estimates of variable consideration for which reserves are established and which result from returns, rebates, and co-pay assistance that are offered within contracts between the Company and its customers. Overall, these reserves reflect the Company's best estimates of the amount of consideration to which it is entitled based on the terms of the contract. If actual results in the future vary from the estimates, the Company will adjust these estimates, which would affect net sales and operating results in the period such variances become known. Product Returns - The Company generally offers customers a limited right of return. The Company estimates the amount of product sales that may be returned by its customers and records the estimate as a reduction of revenue in the period the related product revenue is recognized. Product return liabilities are estimated using historical sales and returns information. If actual results in the future vary from the estimates, the Company will adjust these estimates, which would affect net sales and operating results in the period such variances become known. Volume Rebates - The Company offers volume rebates to certain customers in the United States and certain foreign distributors. These volume rebates are tied to sales volume within specified periods. The amount of revenue is reduced for variable consideration related to customer rebates, which are calculated using expected values and is based on program specific factors such as expected rebate percentages and expected volumes. Changes in such accruals may be required if actual sales volume differs from estimated sales volume, which would affect net sales and operating results in the period such variances become known. Sales Commissions - The Company has elected the practical expedient of not capitalizing sales commissions.
Research and Development Expense, Policy [Policy Text Block]	RESEARCH AND DEVELOPMENT — Research and development is primarily comprised of product prototypes and testing. These activities charged to operations as a component of selling, general and administrative expenses in the accompanying Consolidated Statements of Operations amounted to $397,360 and $334,789 in 2020 and 2019 respectively.
Advertising Cost [Policy Text Block]	ADVERTISING COSTS — Advertising costs included within selling, general and administrative expenses in the accompanying Consolidated Statements of Operations were $54,592 in 2020 and $47,657 in 2019 . Such costs are expensed as incurred.
Income Tax, Policy [Policy Text Block]	INCOME TAXES — The Company operates as a C Corporation under the Internal Revenue Code (the "Code"). Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred income tax assets and liabilities are adjusted through the provision for income taxes. The differences relate principally to different methods used for depreciation and amortization for income tax purposes, net operating losses, capitalization requirements of the Code, allowances for doubtful accounts, provisions for excess and obsolete inventory, stock-based compensation, warranty reserves, and other income tax related carryforwards. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized.
Patent Costs [Policy Text Block]	PATENT COSTS — The Company incurs on-going legal fees and filing costs related to the patent portfolio. These costs are expensed in the period they are incurred since no patent legal costs were probable to provide a future economic benefit.
Earnings Per Share, Policy [Policy Text Block]	INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE — Income (loss) per common and common stock equivalent share is calculated under the provisions of Topic 260 in the Accounting Standards Codification ("ASC") which provides for calculation of “basic” and “diluted” income (loss) per share. Basic income (loss) per common and common stock equivalent share includes no dilution and is computed by dividing net income (loss) by the weighted average common shares outstanding for the period. Diluted income (loss) per common and common stock equivalent share reflects the potential dilution of securities that could share in the earnings of an entity. See Note 11 for additional information on income (loss) per common and common stock equivalent share.
Cash and Cash Equivalents, Policy [Policy Text Block]	CASH AND CASH EQUIVALENTS — The Company considers depository accounts and investments with a maturity at the date of acquisition and expected usage of three months or less to be cash and cash equivalents. The Company maintains its cash on deposit at a commercial bank located in the United States of America. The Company periodically has cash balances in excess of insured amounts. The Company has not experience d, and does not expect to inc ur, any losses on these deposits.
Accounts Receivable [Policy Text Block]	ACCOUNTS RECEIVABLE — Accounts receivable consists of unsecured trade receivables due from customers. An allowance for doubtful accounts is recorded for significant past due receivable balances based on a review of the past due item and general economic conditions.
Inventory, Policy [Policy Text Block]	INVENTORIES — As of June 30, 2020 and 2019 , the Company's inventory was recorded using standard cost which approximates the lower of FIFO cost or net realizable value. Effective June 30, 2019, the Company changed its accounting principle for inventory and discontinued the use of the last-in, first -out ("LIFO") method for inventory valuation and adopted the first -in, first -out ("FIFO") method of inventory. This change in accounting principle did not change the inventory valuation as of June 30, 2019 as the LIFO reserve was $0. The results of operations for the year ended June 30, 2019 was not impacted by discontinuing the use of LIFO since the LIFO reserve was reduced to $0 effective June 30, 2017. The carrying value of inventory is reviewed for impairment on at least a quarterly basis or more frequently if warranted due to changes in market conditions. See Note 5 for additional information on inventory.
Property, Plant and Equipment, Policy [Policy Text Block]	EQUIPMENT AND LEASEHOLD IMPROVEMENTS — Equipment and leasehold improvements are stated at cost. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Major expenditures for property and equipment and significant renewals are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation and amortization are removed from the accounts and any resulting gains or losses are included in operations. See Note 6 for additional information on equipment and leasehold improvements.
Lessee, Leases [Policy Text Block]	LEASES — The C ompany determines if a contract is a lease at the date of inception. The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former chairman, and is an operating lease. Operating leases are reported on the Company's Consolidated Balance Sheets as operating lease right-of-use ("ROU") assets and operating lease liabilities. Operating lease ROU assets and liabilities are valued at the present value of the future lease payment obligations. Operating lease expense is recorded on a straightline basis over the life of the lease taking into account expected renewal periods.
Life Insurance Policies [Policy Text Block]	LIFE INSURANCE POLICIES — Life insurance policies are stated at cash surrender value or at the amount the Company would receive in the case of split-dollar arrangements. Increases in cash surrender value are included in selling, general and administrative expenses in the Consolidated Statements of Operations, which is where the annual premiums are recorded.
Compensation Related Costs, Policy [Policy Text Block]	DEFERRED COMPENSATION — The Company's deferred compensation liabilities are for a current and former officer and are calculated based on compensation, years of service and mortality tables. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. See Note 10 for additional information on deferred compensation.
Fair Value of Financial Instruments, Policy [Policy Text Block]	FAIR VALUE OF FINANCIAL INSTRUMENTS — Cash equivalents, accounts receivable, accounts payable and short-term debt approximate fair value based on the short maturity of these instruments.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	IMPAIRMENT OF LONG-LIVED ASSETS — The Company evaluates the recoverability of the carrying amount of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company evaluates the recoverability of equipment and leasehold improvements annually, or more frequently if events or circumstances indicate that an asset might be impaired. If an asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Management determines fair value using an undiscounted future cash flow analysis or other accepted valuation techniques. No impairments of the Company's long-lived assets were recorded in the years ended June 30, 2020 or 2019
Legal Costs, Policy [Policy Text Block]	LEGAL COSTS — All legal costs related to litigation, for which the Company is liable, are charged to operations as incurred, except settlements, which are expensed when a claim is probable and can be reasonably estimated. Recoveries of legal costs are recorded when the amount and items to be paid are confirmed by the third party . Proceeds from the settlement of legal disputes are recorded in income when the amounts are determinable and the collection is certain.
Share-based Payment Arrangement [Policy Text Block]	STOCK-BASED COMPENSATION — The Company has a stock-based employee compensation plan, which is described more fully in Note 12. The Company accounts for stock-based compensation in accordance with ASC 718 "Compensation - Stock Compensation". Under the fair value recognition provisions of this statement, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period.
Use of Estimates, Policy [Policy Text Block]	USE OF ESTIMATES — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reported periods . Actual results could differ from those estimates.

Note 3 - Change in Accounting Policy (Tables)

12 Months Ended

Jun. 30, 2020

Accounting Standards Update and Change in Accounting Principle [Table Text Block]

			Stock-Based
Balance Sheet	As Previously		Compensation			As
June 30, 2019	Reported		Adjustment			Adjusted
Equity:
Paid in capital	$	6,186,393	$	146,742		$	6,333,135
Retained earnings	$	8,848,684	$	(146,742	)	$	8,701,942

			Stock-Based
Statement of Operations	As Previously		Compensation			As
Year ended June 30, 2019	Reported		Adjustment			Adjusted
Selling, general and administrative expenses	$	6,415,441	$	128,125		$	6,543,566
Income from operations		404,433		(128,125	)		276,308
Net income	$	434,114	$	(128,125	)	$	305,989

Income per common share
Basic	$	0.06	$	(0.02	)	$	0.04
Diluted	$	0.06	$	(0.02	)	$	0.04

			Stock-Based
Statement of Cash Flows	As Previously		Compensation			As
Year ended June 30, 2019	Reported		Adjustment			Adjusted
Operating activities:
Net income	$	434,114	$	(128,125	)	$	305,989
Stock-based compensation expense	$	387,556	$	128,125		$	515,681

Note 4 - Revenue Recognition (Tables)

12 Months Ended

Jun. 30, 2020

Disaggregation of Revenue [Table Text Block]

	2020			2019
United States	$	15,161,311	$	15,255,741
Export		3,150,519		6,586,356
Net Sales	$	18,311,830	$	21,842,097

Note 5 - Inventories (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of Inventory, Current [Table Text Block]

	2020			2019
Raw materials	$	1,953,031		$	1,848,340
Finished goods		5,149,200			6,604,408
		7,102,231			8,452,748
Reserve for obsolete inventory		(1,563,437	)		(1,601,300	)
Total inventories	$	5,538,794		$	6,851,448

Note 6 - Equipment and Leasehold Improvements (Tables)

12 Months Ended

Jun. 30, 2020

Property, Plant and Equipment [Table Text Block]

	Estimated
	useful lives (in years)	2020		2019
Machinery and equipment	5 - 10	$	593,595	$	593,595
Furniture and office equipment	5 - 10		357,351		357,351
Tooling	5		4,310,917		4,261,077
Computer equipment	3 - 5		658,028		758,819
Leasehold improvements	3 - 10		2,682,933		2,517,226
Assets in progress	N/A		327,348		118,737
			8,930,172		8,606,805
Less: accumulated depreciation and amortization			7,946,531		7,716,695
Equipment and leasehold improvements, net		$	983,641	$	890,110

Note 7 - Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Year Ended June 30,	2020			2019
Current:
Federal	$	(15,037	)	$	(13,277	)
State		3,501			25
Deferred		13,276			(13,251	)
Total income tax provision (benefit)	$	1,740		$	(26,503	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Year Ended June 30,	2020			2019
Federal income tax liability (benefit) at statutory rate	$	(97,409	)	$	85,599
State income tax liability, net of federal income tax effect		2,765			20
(Decrease) increase in valuation allowance		61,948			(328,541	)
Current year permanent items		35,931			14,687
R&D credit		(22,568	)		(15,000	)
Return-to-provision		(30,040	)		8,433
Expiration of deferred tax assets		44,790			189,186
State tax rate change		18,962			-
Other		(12,639	)		19,087
Total income tax provision (benefit)	$	1,740		$	(26,529	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	2020			2019
Deferred income tax assets:
Deferred compensation	$	614,018		$	642,424
Stock-based compensation		249,313			228,981
Accrued expenses and reserves		479,112			503,726
Deferred revenue		146,841			202,102
Federal and state net operating loss carryforwards		606,730			558,117
Credit carryforwards		216,484			139,504
Equipment and leasehold improvements		134,045			122,714
Valuation allowance		(2,444,035	)		(2,382,087	)
Total deferred income tax assets		2,508			15,481

Deferred income tax liabilities:
Other		(2,508	)		(2,205	)
Net deferred income tax assets	$	-		$	13,276

Summary of Valuation Allowance [Table Text Block]

	Balance,			Decrease (Increase)
	beginning			in valuation			Balance,
Year Ended June 30,	of year			allowance			end of year
2020	$	(2,382,087	)	$	(61,948	)	$	(2,444,035	)
2019	$	(2,710,628	)	$	328,541		$	(2,382,087	)

Note 9 - Accrued Liabilities (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of Accrued Liabilities [Table Text Block]

	2020		2019
Cooperative advertising and promotion allowances	$	158,770	$	188,985
Customer credit balances		16,363		65,937
Current deferred compensation		150,000		150,000
Employee benefits		80,399		60,178
Legal and professional fees		68,200		65,914
Bonus and profit-sharing		8,098		18,694
Sales commissions and bonuses		53,647		51,026
Other		44,622		49,779
Total accrued liabilities	$	580,099	$	650,513

Note 11 - (Loss) Income Per Common and Common Stock Equivalent Share (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Year Ended
	2020				2019*
Numerator
Net (loss) income	$	(465,597	)	$	305,989

Denominator
Weighted average shares, basic		7,404,831			7,401,030
Dilutive effect of stock compensation awards (1)		-			6,797
Diluted shares		7,404,831			7,407,827

Net (loss) income attributable to common shareholders per share:
Basic	$	(0.06	)	$	0.04
Diluted	$	(0.06	)	$	0.04

Note 12 - Stock Options (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	2020			2019
Expected stock price volatility		74	%		66	%
Risk free interest rate		1.87	%		2.86	%
Expected dividend yield		—	%		—	%
Expected life of options (years)		6.1			5.8

Share-based Payment Arrangement, Option, Activity [Table Text Block]

										Aggregate
								Weighted		Intrinsic
						Weighted		Average		Value of
				Stock		Average		Remaining		In-The-
	Number of			Options		Exercise		Contractual		Money
	Shares			Price Range		Price		Life - Years		Options
Shares under option at June 30, 2018		2,405,000		1.77 7 - 6.28 28		$	3.31		3.61	$	—
Granted		585,000		2.63 3 - 2.92 92		$	2.79
Exercised		(22,125	)	1.77 7 - 2.24 24		$	2.11
Expired		(302,000	)	1.77 7 - 5.83 83		$	5.62
Forfeited		(73,000	)		1.77 7 - 2.65 65	$	2.22
Shares under option at June 30, 2019		2,592,875		1.77 7 - 6.28 28		$	2.96		4.23	$	48,280
Granted		555,000		1.97 7 - 2.17 17		$	2.08
Expired		(362,000	)	2.20 0 - 6.28 28		$	3.53
Forfeited		(64,000	)		1.77 7 - 2.65 65	$	2.15
Shares under option at June 30, 2020		2,721,875		1.77 7 - 6.00 00		$	2.73		4.82	$	—
Exercisable as of June 30, 2019		1,320,291		1.77 7 - 6.28 28		$	3.45		2.20	$	9,788
Exercisable as of June 30, 2020		1,408,709		1.77 7 - 6.00 00		$	3.12		2.61	$	—

Intrinsic Value and Cash Received from Stock Option Exercises and Fair Value of Vested Stock Options [Table Text Block]

	2020		2019
Total intrinsic value of stock options exercised	$	—	$	34,797
Cash received from stock option exercises	$	—	$	46,677
Total fair value of stock options vested	$	483,461	$	374,639
Total recognized tax benefit	$	—	$	9,198

Schedule of Nonvested Option Activity [Table Text Block]

				Weighted
				Average
				Grant Date
	Shares			Fair Value
Non-vested as of June 30, 2018		1,189,918			0.90
Granted		585,000			1.57
Vested		(429,334	)		0.87
Forfeited		(73,000	)		1.33
Non-vested as of June 30, 2019		1,272,584			1.19
Granted		555,000			1.26
Vested		(450,418	)		1.07
Forfeited		(64,000	)		1.39
Non-vested as of June 30, 2020		1,313,166			1.26

Note 14 - Leases (Tables)

12 Months Ended

Jun. 30, 2020

Lease, Cost [Table Text Block]

	Year Ended
	2020			2019
Operating lease cost	$	380,000		$	380,000
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(380,000	)	$	(380,000	)
Weighted-average remaining lease term (in years)		8			9
Weighted-average discount rate		4.25	%		4.25	%

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Year Ending June 30,
2021	$	380,000
2022		380,000
2023		380,000
2024		380,000
2025		380,000
Thereafter		1,140,000
Total lease payments		3,040,000
Present value adjustment		(457,598	)
Total lease liabilities	$	2,582,402

Note 1 - Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2017
Recognition of Deferred Revenue, Amortization in First Year	50.00%
Recognition of Deferred Revenue, Amortization in Second Year	30.00%
Recognition of Deferred Revenue, Amortization in Third Year	20.00%
Inventory, LIFO Reserve		$ 0	$ 0
Selling, General and Administrative Expenses [Member]
Research and Development Expense, Total	$ 397,360	334,789
Advertising Expense	$ 54,592	$ 47,657

Note 3 - Change in Accounting Policy - Cumulative Effect of Changes for Adoption of New Accounting Standard (Details) - USD ($)

12 Months Ended

Jun. 30, 2020

Jun. 30, 2019

$ 6,333,135

$ 8,236,345

8,701,942

^[1]

6,146,650

6,543,566

^[2]

Income from operations

(484,042)

276,308

^[2]

$ (465,597)

$ 305,989

^[2],[3],[4]

$ (0.06)

$ 0.04

^[2],[4]

$ (0.06)

$ 0.04

^[2],[4]

Previously Reported [Member] | Accounting Standards Update 2016-09 [Member]

$ 549,594

$ 515,681

^[3]

6,186,393

8,848,684

6,415,441

Income from operations

404,433

$ 434,114

$ 0.06

$ 0.06

Revision of Prior Period, Adjustment [Member] | Accounting Standards Update 2016-09 [Member]

$ 387,556

146,742

(146,742)

128,125

Income from operations

(128,125)

$ (128,125)

$ (0.02)

$ (0.02)

$ 128,125

[1]	Excludes approximately 2,786,225 and 2,523,513 stock options for the years ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive.
[2]	As adjusted for change in accounting policy (Note 3)
[3]	As adjusted for change in accounting policy (Note 3)
[4]	As adjusted for change in accounting policy (Note 3)

Note 4 - Revenue Recognition (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Contract with Customer, Liability, Total	$ 427,193	$ 497,351	$ 859,370
Minimum [Member]
Contract with Customer, Liability, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	1 year
Maximum [Member]
Contract with Customer, Liability, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	3 years

Note 4 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)

12 Months Ended

Jun. 30, 2020

Jun. 30, 2019

Net Sales

$ 18,311,830

$ 21,842,097

^[1]

UNITED STATES

Net Sales

15,161,311

15,255,741

Non-US [Member]

Net Sales

$ 3,150,519

$ 6,586,356

[1]	As adjusted for change in accounting policy (Note 3)

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

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Reserve for obsolete inventory

Note 5 - Inventories - Components of Inventories (Details) - USD ($)

Jun. 30, 2020

Jun. 30, 2019

Raw materials

$ 1,953,031

$ 1,848,340

Finished goods

5,149,200

6,604,408

Inventory, Gross, Total

7,102,231

8,452,748

(1,563,437)

(1,601,300)

Total inventories

$ 5,538,794

$ 6,851,448

^[1]

[1]	Excludes approximately 2,786,225 and 2,523,513 stock options for the years ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive.

Note 6 - Equipment and Leasehold Improvements - Major Categories of Equipment and Leasehold Improvements (Details) - USD ($)

12 Months Ended

Jun. 30, 2020

Jun. 30, 2019

Less: accumulated depreciation and amortization

$ 8,930,172

$ 8,606,805

7,946,531

7,716,695

Equipment and leasehold improvements, net

983,641

890,110

^[1]

Machinery and Equipment [Member]

Machinery and Equipment [Member] | Minimum [Member]

$ 593,595

593,595

Machinery and Equipment [Member] | Maximum [Member]

5 years

Furniture and Fixtures [Member]

10 years

Furniture and Fixtures [Member] | Minimum [Member]

$ 357,351

357,351

Furniture and Fixtures [Member] | Maximum [Member]

5 years

10 years

Tooling [Member]

5 years

Computer Equipment [Member]

$ 4,310,917

4,261,077

Computer Equipment [Member] | Minimum [Member]

$ 658,028

758,819

Computer Equipment [Member] | Maximum [Member]

3 years

Leasehold Improvements [Member]

5 years

Leasehold Improvements [Member] | Minimum [Member]

$ 2,682,933

2,517,226

Leasehold Improvements [Member] | Maximum [Member]

3 years

Asset under Construction [Member]

10 years

Total income tax provision (benefit)

$ 327,348

$ 118,737

[1]	Excludes approximately 2,786,225 and 2,523,513 stock options for the years ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive.

Note 7 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
Note 7 - Income Taxes (Details Textual) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Income Tax Examination, Penalties and Interest Expense, Total	$ 0	$ 0
Unrecognized Tax Benefits, Ending Balance	0	$ 0
Domestic Tax Authority [Member]
Operating Loss Carryforwards Subject to Expiration	352,281
Operating Loss Carryforwards Not Subject to Expiration	545,245
State and Local Jurisdiction [Member] \| Wisconsin Department of Revenue [Member]
Operating Loss Carryforwards, Total	6,358,000
State and Local Jurisdiction [Member] \| State Departments of Revenue Other Than the Wisconsin Department of Revenue [Member]
Operating Loss Carryforwards, Total	$ 342,286

Note 7 - Income Taxes - Income Tax Provision (Details) - USD ($)

12 Months Ended

Jun. 30, 2020

Jun. 30, 2019

Federal

$ (15,037)

$ (13,277)

State

3,501

Deferred

13,276

(13,251)

$ 1,740

$ (26,503)

^[1]

[1]	As adjusted for change in accounting policy (Note 3)

Federal income tax liability (benefit) at statutory rate

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Note 7 - Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($)

12 Months Ended

Jun. 30, 2020

Jun. 30, 2019

$ (97,409)

$ 85,599

State income tax liability, net of federal income tax effect

2,765

(Decrease) increase in valuation allowance

61,948

(328,541)

Current year permanent items

35,931

14,687

R&D credit

(22,568)

(15,000)

Return-to-provision

(30,040)

8,433

Expiration of deferred tax assets

44,790

189,186

State tax rate change

18,962

Other

(12,639)

19,087

Total income tax provision (benefit)

$ 1,740

$ (26,503)

^[1]

[1]	As adjusted for change in accounting policy (Note 3)

Note 7 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)

Jun. 30, 2020

Jun. 30, 2019

Jun. 30, 2018

Deferred compensation

$ 614,018

$ 642,424

Stock-based compensation

249,313

228,981

Accrued expenses and reserves

479,112

503,726

Federal and state net operating loss carryforwards

146,841

202,102

606,730

558,117

Credit carryforwards

216,484

139,504

Equipment and leasehold improvements

134,045

122,714

Valuation allowance

(2,444,035)

(2,382,087)

$ (2,710,628)

Total deferred income tax assets

2,508

15,481

Other

(2,508)

(2,205)

Net deferred income tax assets

$ 13,276

^[1]

[1]	Excludes approximately 2,786,225 and 2,523,513 stock options for the years ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive.

Note 7 - Income Taxes - Changes in the Valuation Allowance (Details) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Balance, beginning of year	$ (2,382,087)	$ (2,710,628)
Decrease (Increase) in valuation allowance	(61,948)	328,541
Balance, end of year	$ (2,444,035)	$ (2,382,087)

Note 8 - Credit Facility and SBA Loan (Details Textual) - USD ($)			12 Months Ended
	Apr. 13, 2020	May 14, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Interest Expense, Debt, Total			$ 0	$ 0
Paycheck Protection Program CARES Act [Member]
Proceeds from Short-term Debt, Total	$ 506,700
Town Bank [Member] \| Credit Agreement [Member]
Debt Instrument, Term (Year)		2 years
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.00%
Long-term Line of Credit, Total			$ 0		$ 0
Town Bank [Member] \| Credit Agreement [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 5,000,000
Town Bank [Member] \| Credit Agreement [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		1.50%
Town Bank [Member] \| Credit Agreement [Member] \| Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,000,000

Note 9 - Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($)

Jun. 30, 2020

Jun. 30, 2019

Cooperative advertising and promotion allowances

$ 158,770

$ 188,985

Customer credit balances

16,363

65,937

Current deferred compensation

150,000

Employee benefits

80,399

60,178

Legal and professional fees

68,200

65,914

Bonus and profit-sharing

8,098

18,694

Sales commissions and bonuses

53,647

51,026

Other

44,622

49,779

Total accrued liabilities

$ 580,099

$ 650,513

^[1]

[1]	Excludes approximately 2,786,225 and 2,523,513 stock options for the years ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive.

Note 10 - Deferred Compensation (Details Textual) - USD ($)

12 Months Ended

Jun. 30, 2020

Jun. 30, 2019

Deferred Compensation Arrangement with Individual, Distribution Paid

$ 150,000

^[1]

Former Board of Directors Chairman [Member]

Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate

1.00%

2.60%

Deferred Compensation Arrangement with Individual, Distribution Paid

$ 150,000

Deferred Compensation Arrangement with Individual, Recorded Liability

416,883

540,379

Deferred Compensation Arrangement with Individual, Compensation Expense

$ 26,504

$ 17,495

Officer [Member]

Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate

3.10%

4.80%

Deferred Compensation Arrangement with Individual, Recorded Liability

$ 2,066,599

$ 2,029,583

Deferred Compensation Arrangement with Individual, Compensation Expense

$ 37,016

$ 158,458

Deferred Compensation, Cash Compensation, Percent of Base Salary Times Number of Years of Service

2.00%

[1]	As adjusted for change in accounting policy (Note 3)

Note 11 - (Loss) Income Per Common and Common Stock Equivalent Share (Details Textual) - shares	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	2,786,225	2,523,513

Note 11 - (Loss) Income Per Common and Common Stock Equivalent Share - Earning Per Share (Details) - USD ($)

12 Months Ended

Jun. 30, 2020

Jun. 30, 2019

^[3]

Weighted average shares, basic (in shares)

$ (465,597)

$ 305,989

^[1],[2]

7,404,831

7,401,030

^[2]

Dilutive effect of stock compensation awards (1) (in shares)

^[4]

6,797

Diluted shares (in shares)

7,404,831

7,407,827

^[2]

$ (0.06)

$ 0.04

^[2]

$ (0.06)

$ 0.04

^[2]

[1]	As adjusted for change in accounting policy (Note 3)
[2]	As adjusted for change in accounting policy (Note 3)
[3]	As adjusted for change in accounting policy (Note 3)
[4]	Excludes approximately 2,786,225 and 2,523,513 stock options for the years ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.