Fri, Aug 30, 10:04 AM (137 days ago)
Koss Corporation's fiscal year 2024 (ending June 30, 2024) reflected a 6.4% decline in net sales to $12,265,069, primarily due to decreased export sales and a slowdown in Direct-to-Consumer (DTC) sales. Gross profit margins slightly improved to 34.1%, aided by a favorable sales mix, despite adverse impacts from high freight costs. Selling, general, and administrative expenses dropped significantly, primarily due to reduced legal fees related to patent litigation, resulting in a loss before income tax of $1,024,515 compared to a profit of $8,636,589 in the previous year. The company reported a tax benefit of $73,604 for 2024, contrasting with a tax expense of $317,377 in 2023. The financial condition remains stable, with $2.8 million in cash and $12.1 million in short-term investments as of June 30, 2024. The ongoing geopolitical tensions and inflation are identified as risks that could impact future sales and profitability. Additionally, Koss maintains a robust intellectual property enforcement strategy, having previously secured $33 million in licensing proceeds, although no such income was recorded in 2024. The company’s stock repurchase program remains intact, with no purchases made in 2024.