Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-3295 KOSS CORPORATION (Exact Name of Registrant as Specified in its Charter) DELAWARE 39-1168275 incorporation or organization) (State or other jurisdicti ...

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's analysis for the period [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for the three months ended September 30, 2020, are presented [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities increased to $23.3 million and $7.8 million respectively as of September 30, 2020 Condensed Consolidated Balance Sheets (Unaudited) | | September 30, 2020 | June 30, 2020 | | :--- | :--- | :--- | | **ASSETS** | | | | Total current assets | $12,457,131 | $12,137,536 | | Total assets | $23,283,433 | $22,580,406 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $3,119,240 | $2,615,090 | | Total liabilities | $7,847,413 | $7,424,308 | | Total stockholders' equity | $15,436,020 | $15,156,098 | | Total liabilities and stockholders' equity | $23,283,433 | $22,580,406 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net income of $126,928 for the quarter, a significant improvement from a prior-year loss Condensed Consolidated Statements of Operations (Unaudited) | | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | | :--- | :--- | :--- | | Net sales | $5,208,295 | $5,410,762 | | Gross profit | $1,636,228 | $1,347,454 | | Income (loss) from operations | $130,456 | $(317,146) | | Net income (loss) | $126,928 | $(310,749) | | Basic EPS | $0.02 | $(0.04) | | Diluted EPS | $0.02 | $(0.04) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations improved, though overall cash and cash equivalents decreased by $549,464 during the quarter Condensed Consolidated Statements of Cash Flows (Unaudited) | | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | | :--- | :--- | :--- | | Net cash (used in) operating activities | $(180,900) | $(622,281) | | Net cash (used in) investing activities | $(368,564) | $(276,514) | | Net (decrease) in cash and cash equivalents | $(549,464) | $(898,795) | | Cash and cash equivalents at end of period | $3,449,945 | $1,329,487 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased by approximately $280,000, driven by net income and stock-based compensation - Total stockholders' equity increased by approximately **$280,000** during the quarter, driven by net income and stock-based compensation[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, credit facilities, sales geography, legal matters, and a subsequently forgiven SBA loan Inventories, net | | September 30, 2020 | June 30, 2020 | | :--- | :--- | :--- | | Raw materials | $1,886,060 | $1,953,031 | | Finished goods | $5,029,164 | $5,149,200 | | **Inventories, net** | **$5,297,253** | **$5,538,794** | - The company has a **$5 million** revolving secured credit facility expiring in May 2021, with no outstanding borrowings as of September 30, 2020[21](index=21&type=chunk) Net Sales by Geographical Location | | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | | :--- | :--- | :--- | | United States | $3,951,545 | $4,501,312 | | Export | $1,256,750 | $909,450 | | **Net Sales** | **$5,208,295** | **$5,410,762** | - In July 2020, the company filed patent infringement complaints against Apple, Bose, JLab, Plantronics, and Skullcandy related to its wireless audio technology[27](index=27&type=chunk) - Subsequent to the quarter end, on November 3, 2020, the company was notified that its **$506,700** SBA Paycheck Protection Program loan was fully forgiven[22](index=22&type=chunk)[30](index=30&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses improved profitability despite lower sales, driven by higher margins and the impact of COVID-19 [Results of Operations](index=13&type=section&id=Results%20of%20Operations) Net sales decreased 3.7%, but gross margin improved significantly to 31.4% due to a favorable product and market mix Financial Performance Summary (Q1 FY2021 vs Q1 FY2020) | Financial Performance Summary | 2020 | 2019 | | :--- | :--- | :--- | | Net sales | $5,208,295 | $5,410,762 | | Net sales (decrease) % | (3.7)% | (6.5)% | | Gross profit | $1,636,228 | $1,347,454 | | Gross profit as % of net sales | 31.4% | 24.9% | | Selling, general and administrative expenses | $1,505,772 | $1,664,600 | | Income (loss) before income tax provision | $128,405 | $(310,749) | - The decline in domestic sales was driven by a decrease of approximately **$809,000** to mass retail customers, while online sales increased significantly due to remote work and study trends[42](index=42&type=chunk) - Export sales grew **38%** to **$1.26 million**, primarily driven by distributors in Europe and the introduction of new products[43](index=43&type=chunk) [COVID-19 Impact](index=15&type=section&id=COVID-19%20Impact) The pandemic positively impacted demand for communication headphones while disrupting other retail channels - Financial results were positively impacted by demand for communication headphones as more people worked from home and studied online[52](index=52&type=chunk) - Disruptions in the supply chain, primarily in southern China, occurred early in the March 2020 quarter but are now having little ongoing impact[54](index=54&type=chunk) [Liquidity and Capital Resources](index=15&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $3.4 million in cash and a $5.0 million available credit facility - The company's financial position is considered strong, with **$3.4 million** of cash and an available **$5.0 million** credit facility as of September 30, 2020[48](index=48&type=chunk) Summary of Cash Flows | Total cash (used in): | 2020 | 2019 | | :--- | :--- | :--- | | Operating activities | $(180,900) | $(622,281) | | Investing activities | $(368,564) | $(276,514) | | Net (decrease) in cash and cash equivalents | $(549,464) | $(898,795) | - The company's **$506,700** SBA loan under the Paycheck Protection Program was fully forgiven on November 3, 2020[65](index=65&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=18&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Disclosures regarding market risk are not applicable for this reporting period - The company has indicated that quantitative and qualitative disclosures about market risk are not applicable[69](index=69&type=chunk) [Controls and Procedures](index=18&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no significant changes in internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2020[71](index=71&type=chunk) - No significant changes occurred in the company's internal control over financial reporting during the most recent fiscal quarter[72](index=72&type=chunk) [PART II OTHER INFORMATION](index=18&type=section&id=PART%20II%20OTHER%20INFORMATION) This part details other required information including legal proceedings, risk factors, and stock repurchases [Legal Proceedings](index=18&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings occurred during the reporting period - During the reporting period, there were no material changes to the description of legal proceedings previously disclosed in the Annual Report on Form 10-K[74](index=74&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The report refers to the Annual Report on Form 10-K for a detailed discussion of risk factors - The report refers to the Risk Factors section in the Annual Report on Form 10-K for the fiscal year ended June 30, 2020, for a detailed discussion of potential risks[75](index=75&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=19&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock was repurchased during the quarter, with $2.14 million remaining available under the program - No shares of common stock were repurchased by the company during the quarter ended September 30, 2020[77](index=77&type=chunk)[78](index=78&type=chunk) - As of September 30, 2020, **$2,139,753** remained available for repurchase under the company's authorized stock repurchase program[78](index=78&type=chunk) [Exhibits](index=20&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including CEO/CFO certifications and financial data in XBRL format - The exhibits include CEO and CFO certifications under Rule 13a-14(a)/15d-14(a) and Section 1350, as well as financial data in XBRL format[79](index=79&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER 0-3295 KOSS CORPORATION (Exact name of registrant as specified in its charter) | Delaware | 39-1168275 | | | --- | --- | --- | | (State or other jurisdiction of incorpo ...

Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended March 31, 2020 OR Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-3295 KOSS CORPORATION (Exact Name of Registrant as Specified in its Charter) incorporation or organization) DELAWARE 39-1168275 (State or other jurisdiction ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-3295 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting compan ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION KOSS CORPORATION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-3295 (Exact Name of Registrant as Specified in its Charter) 4129 North Port Washington Avenue, Milwaukee, Wisconsin 53212 (Address of pr ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER 0-3295 KOSS CORPORATION (Exact name of registrant as specified in its charter) | Delaware | 39-1168275 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | ...

Index UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended March 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-3295 KOSS CORPORATION (Exact Name of Registrant as Specified in its Charter) | 39-1168275 | | --- | | DELAWARE | (State or other jurisdiction of (I.R.S. Employer Identif ...

Index UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended December 31, 2018 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-3295 KOSS CORPORATION (Exact Name of Registrant as Specified in its Charter) DELAWARE 39-1168275 incorporation or organization) | 4129 North Port Washington Avenue, M ...