Koss(KOSS)2024-10-31 21:20Financial Performance - Net sales for Q1 2025 were 172,070 or 5.1% compared to 419,535, compared to a net loss of 0.05[2][7] - Selling, general, and administrative expenses rose to 1,536,279 year-over-year[7] Sales Performance - Sales to domestic distributors decreased, while sales to the two largest European distributors increased by over 30% due to the launch of Porta Pro Wireless 2.0[3] - Direct-to-Consumer (DTC) sales increased, driven by record-setting daily sales on Amazon and the success of the new product launch[3] Gross Margins and Inventory - Gross margins improved to 36.6% from 31.6% year-over-year, attributed to higher margins on new product sales and increased DTC sales volume[3] - The company experienced a write-off of older inventory but mitigated this by capitalizing freight costs into inventory for upcoming product purchases[4] Supply Chain and Freight - Freight rates are expected to continue increasing, alongside extended lead times due to port congestion[4] - The company is monitoring potential supply chain disruptions to ensure adequate inventory levels ahead of the holiday season[4] Share Information - The weighted-average number of basic shares outstanding was 9,310,002 for Q1 2025, compared to 9,234,795 in Q1 2024[7]