UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
for the quarterly period ended
OR
Commission File Number
(Exact Name of Registrant as Specified in its Charter)
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(State or other jurisdiction of |
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incorporation or organization) |
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(Address of principal executive offices) |
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Registrant’s telephone number, including area code: (
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer ☐ |
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| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.). Yes ☐ No
At May 8, 2023, there were
KOSS CORPORATION
FORM 10-Q
March 31, 2023
INDEX
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
KOSS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
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| March 31, 2023 |
| June 30, 2022 | ||
ASSETS |
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Current assets: |
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Cash and cash equivalents | $ | |
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Short term investments, amortized cost basis |
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Accounts receivable, less allowance for doubtful accounts of $ |
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Inventories, net |
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Prepaid expenses and other current assets |
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Interest receivable |
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Total current assets |
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Equipment and leasehold improvements, net |
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Other assets: |
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Long term investments, amortized cost basis |
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Operating lease right-of-use asset |
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Cash surrender value of life insurance |
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Total other assets |
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Total assets | $ | |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable | $ | |
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Accrued liabilities |
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Deferred revenue |
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Operating lease liability |
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Income taxes payable |
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Total current liabilities |
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Long-term liabilities: |
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Deferred compensation |
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Deferred revenue |
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Operating lease liability |
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Total long-term liabilities |
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Total liabilities |
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Stockholders' equity: |
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Common stock, $ |
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Paid in capital |
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Retained earnings |
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Total stockholders' equity |
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Total liabilities and stockholders' equity | $ | |
| $ | |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KOSS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
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| Three Months Ended |
| Nine Months Ended | ||||||||
| March 31 |
| March 31 | ||||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||
Net sales | $ | |
| $ | |
| $ | |
| $ | |
Cost of goods sold |
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Gross profit |
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Selling, general and administrative expenses |
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(Loss) income from operations |
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Other income |
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Interest income |
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(Loss) income before income tax provision |
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Income tax (benefit) provision |
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Net (loss) income | $ | ( |
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| $ | |
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(Loss) income per common share: |
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Basic | $ | ( |
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Diluted | $ | ( |
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| $ | |
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Weighted-average number of shares: |
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Basic |
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Diluted |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
KOSS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
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| Nine Months Ended | ||||
| March 31 | ||||
| 2023 |
| 2022 | ||
Operating activities: |
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Net income | $ | |
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Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
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Provision for (recovery of) doubtful accounts of accounts receivable |
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Depreciation of equipment and leasehold improvements |
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Amortization of discount on treasury securities |
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Noncash operating lease expense |
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Stock-based compensation expense |
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Change in cash surrender value of life insurance |
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Provision for deferred compensation |
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Deferred compensation paid |
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Deferred compensation relieved |
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Other income - Net gain from life insurance benefits |
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Loss on disposal of fixed assets |
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Net changes in operating assets and liabilities: |
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Accounts receivable |
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Inventories |
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Prepaid expenses and other current assets |
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Interest receivable |
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Income taxes payable |
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Accounts payable |
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Accrued liabilities |
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Deferred revenue |
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Net cash provided by (used in) operating activities |
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Investing activities: |
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Purchase of equipment and leasehold improvements |
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Life insurance premiums paid |
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Proceeds from life insurance policy |
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Purchases of investments |
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Net cash (used in) provided by investing activities |
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Financing activities: |
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Proceeds from exercise of stock options |
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Net cash provided by financing activities |
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Net (decrease) increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period | $ | |
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Supplemental cash flow information: |
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Cash paid for income taxes | $ | |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
KOSS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)
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| Nine Months Ended March 31, 2023 | ||||||||||||
| Common Stock |
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| Retained |
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| Shares |
| Amount |
| Capital |
| Earnings |
| Total | ||||
Balance, June 30, 2022 | |
| $ | |
| $ | |
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Net income | — |
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Stock-based compensation expense | — |
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Stock option exercises | |
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Balance, March 31, 2023 | |
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| Nine Months Ended March 31, 2022 | ||||||||||||
| Common Stock |
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| Retained |
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| Shares |
| Amount |
| Capital |
| Earnings |
| Total | ||||
Balance, June 30, 2021 | |
| $ | |
| $ | |
| $ | |
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Net income | — |
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Stock-based compensation expense | — |
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Stock option exercises | |
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Balance, March 31, 2022 | |
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| Three Months Ended March 31, 2023 | ||||||||||||
| Common Stock |
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| Retained |
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| Shares |
| Amount |
| Capital |
| Earnings |
| Total | ||||
Balance, December 31, 2022 | |
| $ | |
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Net (loss) | — |
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Stock-based compensation expense | — |
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Stock option exercises | |
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Balance, March 31, 2023 | |
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| $ | |
| $ | |
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| Three Months Ended March 31, 2022 | ||||||||||||
| Common Stock |
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| Retained |
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| Shares |
| Amount |
| Capital |
| Earnings |
| Total | ||||
Balance, December 31, 2021 | |
| $ | |
| $ | |
| $ | |
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Net income | — |
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Stock-based compensation expense | — |
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Stock option exercises | — |
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Balance, March 31, 2022 | |
| $ | |
| $ | |
| $ | |
| $ | |
The accompanying notes are an integral part of these condensed consolidated financial statements.