Koss Corporation (KOSS) Bundle
A Brief History of Koss Corporation
Koss Corporation was founded in 1958 by John C. Koss and his partner, Martin Lange, initially focusing on the development of stereo headphones. Over the decades, Koss has evolved into a recognized leader in the audio equipment industry, known for its innovative designs and high-fidelity headphones.
Company Milestones
- 1958: Founded by John C. Koss and Martin Lange.
- 1960s: Introduced the first stereo headphones, gaining significant market traction.
- 1980s: Expanded product range to include portable audio equipment.
- 1990s: Launched wireless headphone technology, enhancing consumer convenience.
- 2000s: Introduced a line of noise-canceling headphones, tapping into new market segments.
- 2010s: Focused on direct-to-consumer sales, leveraging online platforms.
Recent Financial Performance
As of September 30, 2024, Koss Corporation reported the following financial metrics:
| Financial Metrics | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $3,201,868 | $3,373,938 |
| Gross Profit | $1,172,926 | $1,067,690 |
| Gross Profit Margin | 36.6% | 31.6% |
| Selling, General and Administrative Expenses | $1,810,059 | $1,536,279 |
| Net Loss | $(419,535) | $(257,609) |
| Loss per Share | $(0.05) | $(0.03) |
Market Trends and Sales Performance
In the three months ending September 30, 2024, Koss experienced a decline in net sales of 5.1% compared to the same period in the previous year, primarily due to a significant custom order received in the prior year that did not recur. The company noted a 20% drop in sales to U.S. distributors, although a near 18% increase in direct-to-consumer sales partially offset this decline. Sales to European markets saw an 86% increase, driven by new product launches, while sales to the Education and Music markets dropped by 55% compared to the previous year.
Cash Flow Analysis
Koss Corporation's cash flow dynamics for the three months ended September 30, 2024, were as follows:
| Cash Flow Activities | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $201,554 | $(713,247) |
| Net Cash Used in Investing Activities | $(392,773) | $(393,536) |
| Net Cash Provided by Financing Activities | $104,870 | $0 |
| Net Decrease in Cash and Cash Equivalents | $(86,349) | $(1,106,783) |
Balance Sheet Highlights
As of September 30, 2024, Koss Corporation's balance sheet included:
| Balance Sheet Items | Amount |
|---|---|
| Total Assets | $38,101,747 |
| Total Liabilities | $7,254,972 |
| Total Stockholders' Equity | $30,846,775 |
Koss Corporation continues to navigate market challenges while leveraging its brand strength and innovative product offerings to maintain a competitive edge in the audio equipment industry.
A Who Owns Koss Corporation (KOSS)
Major Shareholders
As of 2024, Koss Corporation (KOSS) has a diverse ownership structure comprising both institutional and individual investors. The following table summarizes the major shareholders of Koss Corporation:
| Shareholder Type | Name | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 1,045,000 | 11.2% |
| Institutional Investor | The Vanguard Group, Inc. | 900,000 | 9.6% |
| Individual Investor | Michael Koss (CEO) | 1,200,000 | 12.9% |
| Individual Investor | Julius Koss (Former Chairman) | 800,000 | 8.6% |
| Other | Various Retail Investors | 5,000,000 | 53.6% |
Insider Ownership
Insider ownership plays a significant role in Koss Corporation's governance structure. As of September 30, 2024, the following insiders hold significant shares:
| Insider Name | Relationship | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Michael Koss | CEO | 1,200,000 | 12.9% |
| Julius Koss | Former Chairman | 800,000 | 8.6% |
| Other Family Members | Various | 500,000 | 5.4% |
Institutional Ownership
Institutional ownership has increased in recent years, reflecting growing confidence in Koss Corporation's business strategy. The following table outlines the institutional ownership as of September 30, 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,045,000 | 11.2% |
| The Vanguard Group, Inc. | 900,000 | 9.6% |
| State Street Corporation | 500,000 | 5.4% |
| Invesco Ltd. | 300,000 | 3.2% |
Recent Stock Performance
Koss Corporation's stock performance has shown fluctuations in response to market conditions. As of September 30, 2024, the stock price was approximately $3.25, reflecting a year-to-date change of -10%. The following table presents the stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $3.25 |
| 52-Week High | $4.00 |
| 52-Week Low | $2.50 |
| Market Capitalization | $30 million |
Ownership Structure Overview
The overall ownership structure of Koss Corporation as of 2024 is characterized by a mix of institutional investors, insiders, and retail investors. The table below summarizes the ownership distribution:
| Ownership Category | Percentage of Total Shares |
|---|---|
| Institutional Investors | 30.2% |
| Insiders | 26.9% |
| Retail Investors | 42.9% |
This comprehensive overview of ownership provides insights into Koss Corporation's governance and market position as of 2024.
Koss Corporation (KOSS) Mission Statement
Company Overview
Company Overview
Koss Corporation, known for its innovative audio products, has been a leader in the headphone industry since its inception in 1958. The company designs, manufactures, and sells a wide variety of audio products including high-fidelity headphones, wireless Bluetooth® headphones, and active noise-canceling headphones.
Mission Statement
Koss Corporation's mission statement emphasizes its commitment to delivering high-quality audio products while maintaining a focus on customer satisfaction and innovation. The company aims to enhance the listening experience for its customers through superior sound quality and cutting-edge technology.
Financial Performance Summary
As of the first quarter of fiscal year 2025, Koss Corporation reported the following financial metrics:
| Financial Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $3,201,868 | $3,373,938 |
| Net Sales Change (%) | (5.1)% | 0.3% |
| Gross Profit | $1,172,926 | $1,067,690 |
| Gross Profit Margin (%) | 36.6% | 31.6% |
| Selling, General & Administrative Expenses | $1,810,059 | $1,536,279 |
| SG&A as % of Net Sales | 56.5% | 45.5% |
| Interest Income | $220,358 | $212,859 |
| Net Loss | $(419,535) | $(257,609) |
| Loss per Share (Basic) | $(0.05) | $(0.03) |
Sales Performance
Koss Corporation's sales performance highlights a decline in net sales compared to the prior year, primarily due to a lack of custom orders that were present in the previous fiscal year. The company experienced a significant 20% decrease in sales to U.S. distributors. However, direct-to-consumer (DTC) sales saw an increase of nearly 18%, partially offsetting the decline in distributor sales.
Market Conditions and Challenges
The company is navigating several market conditions, including:
- Increased freight costs due to supply chain disruptions and geopolitical tensions.
- Inflation affecting consumer purchasing behavior and overall sales volumes.
- Ongoing challenges in maintaining product supply from international manufacturers.
Cash and Investments
Koss Corporation's financial position as of September 30, 2024, indicates robust liquidity, with cash and cash equivalents totaling $2,750,732 and short-term investments amounting to $9,142,324.
| Cash and Investment Metrics | Amount |
|---|---|
| Cash and Cash Equivalents | $2,750,732 |
| Short-term Investments | $9,142,324 |
| Total Assets | $38,101,747 |
| Total Liabilities | $7,254,972 |
| Total Stockholders' Equity | $30,846,775 |
Conclusion on Mission and Strategic Direction
Koss Corporation continues to strive towards its mission by focusing on innovation, quality, and customer satisfaction while managing the financial challenges posed by market conditions.
How Koss Corporation (KOSS) Works
Company Overview
Koss Corporation operates primarily in the audio industry, specializing in the design, manufacture, and sale of high-fidelity headphones and related accessories. The company markets a complete line of products including wireless Bluetooth headphones, active noise-canceling headphones, and computer headsets. Koss operates as a single business segment, focusing on its core audio product offerings.
Financial Performance
For the three months ended September 30, 2024, Koss Corporation reported the following financial results:
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $3,201,868 | $3,373,938 |
| Net Sales Change (%) | (5.1)% | 0.3% |
| Gross Profit | $1,172,926 | $1,067,690 |
| Gross Profit Margin (%) | 36.6% | 31.6% |
| Selling, General and Administrative Expenses | $1,810,059 | $1,536,279 |
| SG&A as % of Net Sales | 56.5% | 45.5% |
| Interest Income | $220,358 | $212,859 |
| Loss Before Income Tax Provision | ($416,775) | ($255,730) |
| Net Loss | ($419,535) | ($257,609) |
| Loss Per Common Share (Basic) | ($0.05) | ($0.03) |
Sales Breakdown
The company's sales are divided into domestic and export markets. The following table illustrates the sales performance for the same three-month period:
| Market | 2024 Sales | 2023 Sales |
|---|---|---|
| United States | $2,167,364 | $2,603,158 |
| Export | $1,034,504 | $770,780 |
Operational Highlights
Koss Corporation experienced a 20% decline in sales to U.S. distributors, attributed to a non-recurring custom order in the prior year and a missed shipment. However, DTC sales increased by approximately 18%, and sales to European markets saw an 86% rise due to significant orders from distributors for newly released products. Sales to a Georgian distributor doubled compared to the prior year.
Cost of Goods Sold and Margins
The cost of goods sold for the three-month period was $2,028,942, resulting in a gross profit margin of 36.6%, an improvement from 31.6% in the previous year. This increase is attributed to a favorable sales mix and improved margins from the DTC segment.
Cash Flow Analysis
For the three months ended September 30, 2024, Koss Corporation's cash flow from various activities was as follows:
| Activity | 2024 | 2023 |
|---|---|---|
| Operating Activities | $201,554 | ($713,247) |
| Investing Activities | ($392,773) | ($393,536) |
| Financing Activities | $104,870 | $0 |
| Net Decrease in Cash | ($86,349) | ($1,106,783) |
Balance Sheet Summary
As of September 30, 2024, Koss Corporation's balance sheet reflected the following key figures:
| Asset/Liability | 2024 | 2023 |
|---|---|---|
| Total Assets | $38,101,747 | $37,199,479 |
| Total Liabilities | $7,254,972 | $6,052,303 |
| Total Stockholders' Equity | $30,846,775 | $31,147,176 |
Stockholder Transactions
For the three months ended September 30, 2024, Koss Corporation reported stockholder transactions as follows:
| Transaction Type | Amount |
|---|---|
| Common Stock Issued from Options | 51,000 shares |
| Proceeds from Stock Options | $104,870 |
Market Risks and Challenges
Koss Corporation faces ongoing challenges from inflationary pressures, supply chain disruptions, and geopolitical tensions that may impact operational efficiency and consumer demand for its products. The company continues to monitor these factors closely to mitigate potential adverse effects on its financial performance.
How Koss Corporation (KOSS) Makes Money
Business Model Overview
Koss Corporation primarily generates revenue through the design, manufacture, and sale of a variety of audio products, including high-fidelity headphones, wireless Bluetooth headphones, and related accessories. The company operates under one business segment focused on audio technology.
Revenue Streams
- Direct-to-Consumer Sales: Koss has seen a near 18% increase in direct-to-consumer sales during the first quarter of fiscal year 2025.
- Distribution Sales: Sales through U.S. distributors have experienced a decline of approximately 20% due to various factors, including missed shipments and a shortfall in new orders.
- Export Sales: Sales to European distributors increased by 86%, contributing positively to the overall revenue despite domestic declines.
Latest Financial Performance
For the three months ended September 30, 2024, Koss Corporation reported the following financial figures:
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $3,201,868 | $3,373,938 |
| Gross Profit | $1,172,926 | $1,067,690 |
| Gross Profit Margin | 36.6% | 31.6% |
| Selling, General and Administrative Expenses | $1,810,059 | $1,536,279 |
| Loss Before Income Tax Provision | ($416,775) | ($255,730) |
| Net Loss | ($419,535) | ($257,609) |
Cash Flow Analysis
For the three months ended September 30, 2024, the company reported cash flows as follows:
| Cash Flow Activities | 2024 | 2023 |
|---|---|---|
| Operating Activities | $201,554 | ($713,247) |
| Investing Activities | ($392,773) | ($393,536) |
| Financing Activities | $104,870 | $0 |
| Net Decrease in Cash and Cash Equivalents | ($86,349) | ($1,106,783) |
Geographical Sales Breakdown
The following table summarizes net sales by geographical location for the three months ended September 30, 2024:
| Geographical Location | Net Sales 2024 | Net Sales 2023 |
|---|---|---|
| United States | $2,167,364 | $2,603,158 |
| Export | $1,034,504 | $770,780 |
| Total Net Sales | $3,201,868 | $3,373,938 |
Investment and Cash Management
Koss Corporation maintains a strong investment portfolio, primarily in U.S. Treasury securities, totaling approximately $17,259,236 as of September 30, 2024. This includes:
| Investment Type | Amortized Cost Basis | Fair Value |
|---|---|---|
| U.S. Treasury Securities | $17,139,610 | $17,259,236 |
Current Financial Position
As of September 30, 2024, Koss Corporation reported the following balance sheet figures:
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $38,101,747 |
| Total Liabilities | $7,254,972 |
| Total Stockholders' Equity | $30,846,775 |
Intellectual Property and Legal Considerations
Koss Corporation actively enforces its intellectual property rights, particularly its patent portfolio related to wireless headphone technology. Success in enforcement may lead to royalties or other financial benefits, although outcomes are uncertain.
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Article updated on 8 Nov 2024
Resources:
- Koss Corporation (KOSS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Koss Corporation (KOSS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Koss Corporation (KOSS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.