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Koss Corporation (KOSS-3.24%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing net sales of $3,557,086, a 5.9% increase from the same period in the previous year. The increase is attributed to higher sales to European distributors and a custom headphone order.
Export sales for the quarter were $1,375,545, up from $693,146 in the prior year, driven by increased sales to European distributors. Domestic sales declined by 18.2% to $2,181,541, primarily due to lower sales in the education segment.
Gross profit for the quarter was $1,404,957, representing 39.5% of net sales, compared to 33.0% in the previous year. The increase in gross margin is due to higher margin sales to European distributors and direct-to-consumer sales.
Selling, general, and administrative expenses were $1,546,741, slightly down from $1,584,523 in the previous year. The decrease is attributed to a reduction in deferred compensation liability.
The company reported a net income of $94,142 for the quarter, compared to a net loss of $269,153 in the previous year.
Cash used in operating activities was $50,419 for the six months ended December 31, 2024, compared to $345,185 in the previous year. Cash used in investing activities was $403,380, primarily due to fixed asset expenditures.
As of December 31, 2024, Koss Corporation had $2.5 million in cash and cash equivalents and $7.2 million in short-term investments. The company was in compliance with all covenants related to its credit facility.
The filing also details ongoing legal proceedings related to the company's intellectual property enforcement program, including patent infringement suits against several parties.
Koss Corporation continues to monitor macroeconomic factors, including inflation and supply chain disruptions, which may impact future financial performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Koss Corporation quarterly 10-Q report dated January 31, 2025. To report an error, please email earnings@qz.com.