Koss (KOSS) 10-K 28 Aug 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information Document - USD ($)	12 Months Ended
	Jun. 30, 2015	Aug. 17, 2015	Dec. 31, 2014
Entity Information [Line Items]
Entity Registrant Name	KOSS CORP
Entity Central Index Key	56,701
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Document Type	10-K
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		7,382,706
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 4,566,606

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Net sales	$ 24,230,056	$ 23,840,882
Cost of goods sold	15,781,489	17,816,754
Impairment of capitalized software, inventory and related items	0	6,305,947
Gross profit	8,448,567	(281,819)
Operating expenses:
Selling, general and administrative expenses	7,904,739	10,468,708
Unauthorized transaction related costs and recoveries, net	31,027	(745,795)
Total operating expenses	7,935,766	9,722,913
Income (loss) from operations	512,801	(10,004,732)
Other expense (income):
Interest expense (income)	(12,813)	49,589
Income (loss) before income tax provision (benefit)	499,988	(9,955,143)
Income tax provision (benefit)	17,375	(4,401,589)
Net income (loss)	$ 482,613	$ (5,553,554)
Income (loss) per common share:
Basic (in dollars per share)	$ 0.07	$ (0.75)
Diluted (in dollars per share)	0.07	(0.75)
Dividends declared per common share (in dollars per share)	$ 0	$ 0.18

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 1,000,266	$ 1,899,411
Accounts receivable, less allowance for doubtful accounts of $XX,XXX and $43,405, respectively	2,823,980	3,160,887
Inventories	7,182,440	7,054,932
Prepaid expenses and other current assets	348,044	148,200
Income taxes receivable	205,531	1,109,276
Deferred income taxes	2,045,316	2,576,023
Total current assets	13,605,577	15,948,729
Equipment and leasehold improvements, net	1,592,520	1,840,491
Other assets:
Deferred income taxes	1,869,253	1,623,329
Cash surrender value of life insurance	5,359,663	4,977,409
Total other assets	7,228,916	6,600,738
Total assets	22,427,013	24,389,958
Current liabilities:
Accounts payable	2,172,254	2,464,755
Accrued liabilities	1,575,027	3,853,473
Income taxes payable	0	175,000
Total current liabilities	3,747,281	6,493,228
Long-term liabilities:
Deferred compensation	2,107,486	2,320,091
Other liabilities	219,227	336,772
Total long-term liabilities	2,326,713	2,656,863
Total liabilities	6,073,994	9,150,091
Stockholders' equity:
Common stock, $0.005 par value, authorized 20,000,000 shares; issued and outstanding 7,382,706 shares	36,914	36,914
Paid in capital	4,626,781	3,996,242
Retained earnings	11,689,324	11,206,711
Total stockholders' equity	16,353,019	15,239,867
Total liabilities and stockholders' equity	$ 22,427,013	$ 24,389,958

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Allowance for doubtful accounts	$ 20,501	$ 43,405
Common stock, par value	$ 0.005	$ 0.005
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	7,382,706	7,382,706
Common stock, shares outstanding	7,382,706	7,382,706

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Net income (loss)	$ 482,613	$ (5,553,554)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Provision for (recoveries of previously written off) doubtful accounts	25,725	(182,020)
Loss on disposals of fixed assets	14,953	0
Impairment of capitalized software, inventory and related items	0	6,305,947
Depreciation of equipment and leasehold improvements	559,631	734,664
Amortization of product software development expenditures	0	364,539
Stock-based compensation expense	630,539	684,554
Deferred income taxes	284,783	(2,608,369)
Change in cash surrender value of life insurance	150,312	120,627
Deferred compensation	(62,605)	(210,204)
Net changes in operating assets and liabilities (see note 17)	(2,125,917)	4,176,502
Cash provided by (used in) operating activities	(340,590)	3,591,432
Investing activities:
Life insurance premiums paid	(231,942)	(243,940)
Purchase of equipment and leasehold improvements	(326,613)	(535,868)
Cash used in investing activities	(558,555)	(779,808)
Financing activities:
Dividends paid to stockholders	0	(1,771,849)
Cash used in financing activities	0	(1,771,849)
Net increase (decrease) in cash and cash equivalents	(899,145)	1,039,775
Cash and cash equivalents at beginning of year	1,899,411	859,636
Cash and cash equivalents at end of year	$ 1,000,266	$ 1,899,411

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock	Common Stock	Paid in Capital	Retained Earnings
Shares outstanding at period start (in shares) at Jun. 30, 2013		7,382,706
Stockholders' equity at period start at Jun. 30, 2013	$ 21,389,674		$ 36,914	$ 3,263,608	$ 18,089,152
Increase (decrease) in stockholders' equity [Roll Forward]
Net income (loss)	(5,553,554)				(5,553,554)
Dividends declared	(1,328,887)				(1,328,887)
Stock-based compensation expense	684,554			684,554
Income tax benefit from dividends paid to employee stock ownership plan	48,080			48,080
Shares outstanding at period end (in shares) at Jun. 30, 2014		7,382,706
Stockholders' equity at period end at Jun. 30, 2014	15,239,867		36,914	3,996,242	11,206,711
Increase (decrease) in stockholders' equity [Roll Forward]
Net income (loss)	482,613				482,613
Stock-based compensation expense				630,539
Shares outstanding at period end (in shares) at Jun. 30, 2015		7,382,706
Stockholders' equity at period end at Jun. 30, 2015	$ 16,353,019		$ 36,914	$ 4,626,781	$ 11,689,324

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES (Notes)	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Significant Accounting Policies	NATURE OF BUSINESS — Koss Corporation (“Koss”), a Delaware corporation, and its 100% -owned subsidiary (collectively the “Company”), reports its finances as a single reporting segment, as the Company’s principal business line is the design, manufacture and sale of stereo headphones and related accessories. The Company leases its plant and office in Milwaukee, Wisconsin. The domestic market is served by domestic sales representatives and independent manufacturers' representatives working directly with certain retailers, distributors, and original equipment manufacturers. International markets are served by domestic sales representatives and a sales office in Ireland which utilizes independent distributors in several foreign countries. The Company has one subsidiary, Koss U.K. Limited ("Koss UK"), which was formed to comply with certain European Union (EU) requirements. Koss U.K. is non-operating and holds no assets. BASIS OF CONSOLIDATION — The consolidated financial statements include the accounts of Koss and its subsidiary, Koss UK, which is a 100% -owned subsidiary. All significant intercompany accounts and transactions have been eliminated. REVENUE RECOGNITION — The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; shipment and delivery have occurred; the seller’s price to the buyer is fixed and determinable; and collectibility is reasonably assured. When these criteria are generally satisfied, the Company recognizes revenue. The Company also offers certain customers the right to return products that do not meet the standards agreed with the customer. The Company continuously monitors such product returns and cannot guarantee that they will continue to experience the same return rates that they have experienced in the past. Any significant increase in product quality failure rates and the resulting credit returns could have a material adverse impact on the Company’s operating results for the period or periods in which such returns materialize. The Company provides for certain sales incentives. The Company records a provision for estimated incentives based upon the incentives offered to customers on product related sales in the same period as the related revenues are recorded. The provision is recorded as a reduction of sales. The Company also records a provision for estimated sales returns and allowances on product related sales in the same period as the related revenues are recorded. These estimates are based on historical sales returns, analysis of credit memo data and other known factors. If the historical data the Company uses to calculate these estimates does not properly reflect future returns, adjustments may be required in future periods. SHIPPING AND HANDLING FEES AND COSTS — Shipping and handling costs charged to customers have been included in net sales. Shipping and handling costs incurred by the Company have been included in cost of goods sold. RESEARCH AND DEVELOPMENT — Research and development activities charged to operations as a component of selling, general and administrative expenses in the accompanying Consolidated Statements of Operations amounted to $ 1,024,885 in fiscal year 2014 . There were no research and development activities charged to operations in fiscal year 2015 . ADVERTISING COSTS — Advertising costs included within selling, general and administrative expenses in the accompanying Consolidated Statements of Operations were $ 154,505 in 2015 and $ 211,196 in 2014 . Such costs are expensed as incurred. INCOME TAXES — The Company operates as a C Corporation under the Internal Revenue Code of 1986, as amended (the “Code”). Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred income tax assets and liabilities are adjusted through the provision for income taxes. The differences relate principally to different methods used for depreciation and amortization for income tax purposes, net operating losses, capitalization requirements of the Code, allowances for doubtful accounts, stock-based compensation, warranty reserves, and other income tax related carryforwards. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE — Income (loss) per common and common stock equivalent share is calculated under the provisions of Topic 260 in the Accounting Standards Codification ("ASC") which provides for calculation of “basic” and “diluted” income (loss) per share. Basic income (loss) per common and common stock equivalent share includes no dilution and is computed by dividing net income by the weighted average common shares outstanding for the period. Diluted income (loss) per common and common stock equivalent share reflects the potential dilution of securities that could share in the earnings of an entity. See Note 13 for additional information on income (loss) per common and common stock equivalent share. CASH AND CASH EQUIVALENTS — The Company considers depository accounts and investments with a maturity at the date of acquisition and expected usage of three months or less to be cash and cash equivalents. The Company maintains its cash on deposit at a commercial bank located in the United States of America. The Company periodically has cash balances in excess of insured amounts. The Company has not experienced and does not expect to incur any losses on these deposits. ACCOUNTS RECEIVABLE — Accounts receivable consists of unsecured trade receivables due from customers. An allowance for doubtful accounts is recorded for significant past due receivable balances based on a review of the past due item and general economic conditions. See Note 3 for additional information on accounts receivable. INVENTORIES — The Company’s inventory is valued at the lower of last-in, first-out (“LIFO”) cost or market. The carrying value of inventory is reviewed for impairment on at least a quarterly basis or more frequently if warranted due to changes in market conditions. See Note 5 for additional information on inventory. EQUIPMENT AND LEASEHOLD IMPROVEMENTS — Equipment and leasehold improvements are stated at cost. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Major expenditures for property and equipment and significant renewals are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation and amortization are removed from the accounts and any resulting gains or losses are included in operations. LIFE INSURANCE POLICIES — Life insurance policies are stated at cash surrender value or at the amount the Company would receive in the case of split-dollar arrangements. Increases in cash surrender value are included in selling, general and administrative expenses in the Consolidated Statements of Operations, which is where the annual premiums are recorded. PRODUCT WARRANTY OBLIGATIONS — Estimated future warranty costs related to products are charged to cost of goods sold during the period the related revenue is recognized. The product warranty liability reflects the Company’s best estimate of probable obligations under those warranties. See Note 10 for additional information on product warranty obligations. DEFERRED COMPENSATION — The Company’s deferred compensation liabilities are for a current and former officer and are calculated based on compensation, years of service and mortality tables. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. See Note 11 for additional information on deferred compensation. FAIR VALUE OF FINANCIAL INSTRUMENTS — Cash equivalents, accounts receivable and accounts payable approximate fair value based on the short maturity of these instruments. IMPAIRMENT OF LONG-LIVED ASSETS — The Company evaluates the recoverability of the carrying amount of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company evaluates the recoverability of equipment and leasehold improvements annually or more frequently if events or circumstances indicate that an asset might be impaired. If an asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Management determines fair value using a undiscounted future cash flow analysis or other accepted valuation techniques. The Company recorded an impairment of capitalized software in the year ended June 30, 2014 , detailed in Note 4 . No impairments of the Company's long-lived assets were recorded in the year ended June 30, 2015 . LEGAL COSTS — All legal costs related to litigation are charged to operations as incurred, except settlements, which are expensed when a claim is probable and can be estimated. Recoveries of legal costs are recorded when the amount and items to be paid are confirmed by the insurance company. Proceeds from the settlement of legal disputes are recorded in income when the amounts are determinable and the collection is certain. STOCK-BASED COMPENSATION — The Company has a stock-based employee compensation plan, which is described more fully in Note 14 . The Company accounts for stock-based compensation in accordance with ASC 718 "Compensation - Stock Compensation". Under the fair value recognition provisions of this statement, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. USE OF ESTIMATES — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. RECLASSIFICATIONS — Certain amounts previously reported have been reclassified to conform to the current presentation.

UNAUTHORIZED TRANSACTION RELATE

UNAUTHORIZED TRANSACTION RELATED RECOVERIES (Notes)	12 Months Ended
	Jun. 30, 2015
Unauthorized Transactions, Costs and Related Recoveries, Net [Abstract]
Unauthorized Transaction Related Recoveries	In December 2009, the Company learned of significant unauthorized transactions as previously reported. The Company has ongoing costs and recoveries associated with the unauthorized transactions. For the years ended June 30, 2015 and 2014 , the costs incurred were for legal fees related to claims initiated against third parties (see Note 20 ). The Company has received various recoveries related to the unauthorized transactions which are summarized below. The Company will continue to incur legal fees for the claims initiated against third parties. There have been other recoveries of the assets previously owned and forfeited by the former Vice President of Finance. The remaining amounts to be received from the assets forfeited are not expected to be significant. For the years ended June 30, 2015 and 2014 , the costs and recoveries were as follows: 2015 2014 Legal fees incurred $ 152,492 $ 388,287 Proceeds from asset forfeitures (121,465 ) (1,134,082 ) Unauthorized transaction related costs (recoveries), net $ 31,027 $ (745,795 )

ACCOUNTS RECEIVABLE (Notes)

ACCOUNTS RECEIVABLE (Notes)	12 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
Accounts Receivable	Accounts receivable includes unsecured trade receivables due from customers. The Company performs credit evaluations of its customers and does not require collateral to establish an account receivable. The Company's largest customer was on cash in advance terms as of June 30, 2015 and 2014 , respectively. The Company evaluates collectibility of accounts receivable based on a number of factors. Accounts receivable are considered to be past due if unpaid one day after their due date. An allowance for doubtful accounts is recorded for past due receivable balances based on a review of the past due item and general economic conditions. The Company writes off accounts receivable when they become uncollectible. The Company recovered $112,417 of previously written-off accounts receivable during fiscal 2014 . There were no recoveries during fiscal 2015. Changes in the allowance for doubtful accounts were as follows: Fiscal Year Ended Balance, beginning of year Provision charged to expense Amounts written-off Balance, end of year 2015 $ 20,501 25,725 (20,174 ) $ 26,052 2014 $ 43,405 (182,020 ) 159,116 $ 20,501 The vast majority of international customers, outside of Canada, purchase products on a cash against documents or cash in advance basis. Approximately 5% and 14% of the Company's trade accounts receivable at June 30, 2015 and 2014 , were foreign receivables denominated in U.S. dollars.

IMPAIRMENT OF CAPITALIZED SOFTW

IMPAIRMENT OF CAPITALIZED SOFTWARE, INVENTORY AND RELATED ITEMS (Notes)	12 Months Ended
	Jun. 30, 2015
Impairment of Capitalized Software, Inventory and Related Items [Abstract]
Impairment of Capitalized Software, Inventory and Related Items	The Company recorded an impairment charge in the Consolidated Statements of Operations line item titled " Impairment of capitalized software, inventory and related items " during the fiscal year ended 2014. The impairment is detailed in the following table: 2014 Product software development expenditures $ 2,308,752 Inventories 3,451,911 Product design costs 246,588 Tooling 298,696 Impairment of capitalized software, inventory and related items $ 6,305,947 The Company determined that the capitalized software needed to be replaced by a new architecture under development. As a result, the remaining value of the capitalized software was expensed in the year ended ended June 30, 2014. The Company may still develop this technology but has temporarily suspended its research and development effort until the base business is restored to more profitable levels. In conjunction with the review of the capitalized software, it was determined that certain inventory items were obsolete or the Company had quantities that are not expected to be used over the product forecast period. These inventory items are included net of expected recoveries. Product design costs and assumed liabilities to wrap up the current architecture design were expensed. Tooling related to products that are no longer expected to be launched was expensed. To the extent the Company incurs future costs for the continued development, software code and product launch of the WiFi-based products, then those costs will be expensed as incurred.

INVENTORIES (Notes)

INVENTORIES (Notes)	12 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Inventories	As of June 30, 2015 and 2014 , the Company’s inventory was valued using the lower of last-in, first-out (“LIFO”) cost or market. If the first-in, first-out (“FIFO”) method of inventory accounting had been used by the Company for inventories valued at LIFO, inventories would have been $ 753,439 and $ 1,172,262 higher than reported at June 30, 2015 and 2014 , respectively. The components of inventories at June 30, 2015 and 2014 were as follows: 2015 2014 Raw materials $ 5,374,333 $ 5,593,159 Finished goods 6,246,072 6,327,221 11,620,405 11,920,380 Reserve for obsolete inventory (4,437,965 ) (4,865,448 ) Total inventories $ 7,182,440 $ 7,054,932

EQUIPMENT AND LEASEHOLD IMPROVE

EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Notes)	12 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment, Net [Abstract]
Equipment and Leasehold Improvements	The major categories of equipment and leasehold improvements at June 30, 2015 and 2014 are summarized as follows: Estimated useful lives 2015 2014 Machinery and equipment 5-10 years $ 642,200 $ 675,670 Furniture and office equipment 5-10 years 374,616 374,616 Tooling 5 years 4,126,850 3,607,314 Display booths 5-7 years 287,180 287,180 Computer equipment 3-5 years 1,414,517 1,414,517 Leasehold improvements 7-10 years 2,308,246 2,288,706 Assets in progress N/A 60,600 259,328 9,214,209 8,907,331 Less: accumulated depreciation and amortization 7,621,689 7,066,840 Equipment and leasehold improvements, net $ 1,592,520 $ 1,840,491

INCOME TAXES (Notes)

INCOME TAXES (Notes)	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	The Company utilizes the liability method of accounting for income taxes. The liability method measures the expected income tax impact of future taxable income and deductions implicit in the consolidated balance sheets. The income tax provision in 2015 and 2014 consisted of the following: Year Ended June 30, 2015 2014 Current: Federal $ (100,126 ) $ (1,863,204 ) State (167,282 ) 69,984 Deferred 284,783 (2,608,369 ) Total income tax provision (benefit) $ 17,375 $ (4,401,589 ) The 2015 and 2014 tax results in an effective rate different than the federal statutory rate because of the following: Year Ended June 30, 2015 2014 Federal income tax expense (benefit) at statutory rate $ 169,996 $ (3,382,307 ) State income tax expense (benefit), net of federal income tax benefit (21,442 ) (285,802 ) Increase in valuation allowance — 148,000 Stock-based compensation 53,596 58,187 Adjustments for unrecognized tax benefits (175,000 ) (546,113 ) Federal income tax credits — (187,349 ) Other (9,775 ) (206,205 ) Total income tax provision (benefit) $ 17,375 $ (4,401,589 ) Temporary differences which give rise to deferred income tax assets and liabilities at June 30, 2015 and June 30, 2014 include: 2015 2014 Deferred income tax assets: Deferred compensation $ 835,270 $ 858,434 Stock-based compensation 889,325 714,350 Accrued expenses and reserves 2,075,601 2,701,144 Federal and state net operating loss carryforwards 463,237 371,744 Valuation allowance (370,409 ) (370,409 ) Equipment and leasehold improvements 11,566 — Other 14,650 22,806 Total deferred income tax assets 3,919,240 4,298,069 Deferred income tax liabilities: Equipment and leasehold improvements — (98,717 ) Other (4,671 ) — Net deferred income tax assets $ 3,914,569 $ 4,199,352 Deferred income tax assets as presented on the consolidated balance sheets: 2015 2014 Current deferred income tax assets $ 2,045,316 $ 2,576,023 Noncurrent deferred income tax assets 1,869,253 1,623,329 Net deferred income tax assets $ 3,914,569 $ 4,199,352 Deferred income tax balances reflect the effects of temporary differences between the tax bases of assets and liabilities and their carrying amounts. These differences are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. The recognition of these deferred tax balances will be realized through normal recurring operations and, as such, the Company has recorded the full value of such expected benefits. The Company has no federal net operating loss carryforwards as of June 30, 2015 . The Company has net operating loss carryforwards in the state of Wisconsin totaling $6,095,423 which expire in fiscal years 2026 through 2036 . ASC Topic 740 "Income Taxes" prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. There were no additional significant matters determined to be unrecognized tax benefits taken or expected to be taken in a tax return that have been recorded on the Company’s consolidated financial statements for the year ended June 30, 2015 . As part of the unauthorized transactions, there was no interest accrued by the Company as of June 30, 2015 and 2014 , respectively. 2015 2014 Accrued interest at beginning of year $ — $ 49,150 Interest charges to expense — 24,575 Interest charges reversed — (73,725 ) Accrued interest at end of year $ — $ — Additionally, ASC Topic 740 provides guidance on the recognition of interest and penalties related to income taxes. There were no penalties related to income taxes that have been accrued or recognized as of and for the years ended June 30, 2015 and 2014 . The Company records interest related to unrecognized tax benefits in interest expense. For the year ended 2014, the Company decreased the interest it had accrued related to its tax reporting of the unauthorized transactions. The Company reversed the accrued interest related to the tax return that was filed for the year ended June 30, 2008, because the statute of limitations expired for this return. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2015 2014 Unrecognized tax benefits at beginning of year $ 175,000 $ 696,113 Gross increases - tax positions in prior years — 25,000 Reductions due to lapse in statute — (546,113 ) Reductions based on settlements with taxing authorities (175,000 ) — Unrecognized tax benefits at end of year $ — $ 175,000 In the fiscal year ended June 30, 2015, the Company settled its position with a state tax authority and reduced the unrecognized tax benefits to zero. The Company does not believe it has any unrecognized tax benefits as of June 30, 2015. Any changes to the Company's unrecognized tax benefits during the fiscal years ended June 30, 2015 and 2014 would impact the effective tax rate. The Company files income tax returns in the United States federal jurisdiction and in several state jurisdictions. The Company’s federal tax returns through tax year June 30, 2011 are settled and the income tax returns for tax years beginning July 1, 2011 are open. For states in which the Company files state income tax returns, the statute of limitations is generally open for tax years ended June 30, 2011 and forward. During the quarter ended December 31, 2014, the Company's federal return for the fiscal year ended June 30, 2013, was under examination. That examination closed during the same quarter with no adjustments to the return. The following are the changes in the valuation allowance: Year Ended June 30, Balance, beginning of year Increase in valuation allowance Release of valuation allowance Balance, end of year 2015 $ (370,409 ) — — $ (370,409 ) 2014 $ (222,409 ) (148,000 ) — $ (370,409 )

CREDIT FACILITY (Notes)

CREDIT FACILITY (Notes)	12 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Credit Facility	On May 12, 2010, the Company entered into a secured credit facility ("Credit Agreement") with JPMorgan Chase Bank, N.A. (“Lender”). The Credit Agreement provided for an $8,000,000 revolving secured credit facility with interest rates either ranging from 0.0% to 0.75% over the Lender’s most recently publicly announced prime rate or 2.0% to 3.0% over LIBOR, depending on the Company’s leverage ratio. The Company pays a fee of 0.3% to 0.45% for unused amounts committed in the credit facility. On July 24, 2013, the Credit Agreement was amended to extend the expiration to July 31, 2015. On July 23, 2014, the Credit Agreement was amended to reduce the facility to $5,000,000 , subject to a borrowing base calculation as defined in the Credit Agreement, and to amend certain financial covenants. On July 29, 2015, the Credit Agreement was amended to extend the expiration to July 31, 2016, and to amend certain financial covenants. In addition to the revolving loans, the Credit Agreement also provides that the Company may, from time to time, request the Lender to issue letters of credit for the benefit of the Company up to a sublimit of $2,000,000 and subject to certain other limitations. The loans may be used only for general corporate purposes of the Company. The Credit Agreement contains certain affirmative, negative and financial covenants customary for financings of this type. The negative covenants include restrictions on other indebtedness, liens, fundamental changes, certain investments, asset sales, sale and leaseback transactions and transactions with affiliates, among other restrictions. The financial covenants include minimum EBITDA and minimum tangible net worth requirements. The Company and the Lender also entered into the Pledge and Security Agreement dated May 12, 2010, under which the Company granted the Lender a security interest in substantially all of the Company’s assets in connection with the Company’s obligations under the Credit Agreement. As of June 30, 2015 and 2014 , there were no outstanding borrowings on the facility.

ACCRUED LIABILITIES (Notes)

ACCRUED LIABILITIES (Notes)	12 Months Ended
	Jun. 30, 2015
Accrued Liabilities, Current [Abstract]
Accrued Liabilities	Accrued liabilities for the years ended June 30, 2015 and 2014 are as follows: 2015 2014 Cooperative advertising and promotion allowances $ 400,114 $ 750,433 Product warranty obligations 312,664 385,852 Customer credit balances 261,977 1,988,052 Current deferred compensation 150,000 — Accrued returns 97,026 89,663 Employee benefits 93,568 129,518 Legal and professional fees 70,000 79,900 Management bonuses and profit-sharing 71,381 37,500 Sales commissions and bonuses 68,890 148,278 Accrued severance — 123,720 Other 49,407 120,557 $ 1,575,027 $ 3,853,473

PRODUCT WARRANTY OBLIGATIONS (N

PRODUCT WARRANTY OBLIGATIONS (Notes)	12 Months Ended
	Jun. 30, 2015
Standard Product Warranty Disclosure [Abstract]
Product Warranty Obligations	The Company records a liability for product warranty obligations at the time of sale based upon historical warranty experience. The majority of the Company’s products carry a lifetime warranty. The Company also records a liability for specific warranty matters when they become known and are reasonably estimated. The Company’s current and non-current product warranty obligations are included in accrued liabilities and other liabilities, respectively, in the consolidated balance sheets. However, the Company is continuously releasing new and more complex and technologically advanced products. Even though some of these products have a shorter warranty period, it is at least reasonably possible that products could be released with certain unknown quality or design problems resulting in higher than expected warranty and related costs. These costs could have a materially adverse effect on the Company's results of operations and financial condition in the near term. Changes to the product warranty obligations for the years ended June 30, 2015 and 2014 are as follows: Year Ended June 30, Balance, beginning of year Provision charged to expense Warranty expenses incurred Balance, end of year 2015 $ 722,624 103,925 (294,658 ) $ 531,891 2014 $ 1,111,500 97,300 (486,176 ) $ 722,624

DEFERRED COMPENSATION (Notes)

DEFERRED COMPENSATION (Notes)	12 Months Ended
	Jun. 30, 2015
Deferred Compensation [Abstract]
Deferred Compensation	The Company has deferred compensation agreements with a former and current officer. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. The Company's current and non-current deferred compensation obligations are included in accrued liabilities and deferred compensation, respectively, in the consolidated balance sheets. The net present value was calculated for the former officer using a discount factor of 2.70% and 2.60% as of June 30, 2015 and 2014 , respectively. The net present value was calculated for the current officer using a discount factor of 4.80% and 4.62% at June 30, 2015 and 2014 , respectively. The Board of Directors entered into an agreement to continue the 1991 base salary of former chairman for the remainder of his life. These payments began in the fiscal year ended June 30, 2015 , and payments of $50,000 were made under this arrangement. The Company has a deferred compensation liability of $820,720 and $704,306 recorded as of June 30, 2015 and 2014 , respectively. Deferred compensation expense of $166,414 and $202,383 was recognized under this arrangement in 2015 and 2014 , respectively. The Board of Directors has approved a supplemental retirement plan with an officer that calls for annual cash compensation following retirement from the Company in an amount equal to 2% of base salary, as defined in the agreement, multiplied by the number of years of service to the Company. The retirement payments are to be paid monthly to the officer until his death and then to his surviving spouse monthly until her death. The Company has a deferred compensation liability of $1,436,766 and $1,615,785 recorded as of June 30, 2015 and 2014 , respectively. A reversal of deferred compensation expense of $179,019 and $257,842 was recognized under this arrangement in 2015 and 2014 , respectively. The Company uses life insurance policies to provide funds to meet its deferred compensation obligations.

INTEREST EXPENSE (Notes)

INTEREST EXPENSE (Notes)	12 Months Ended
	Jun. 30, 2015
Interest Expense [Abstract]
Interest Expense	The Company incurs interest expense primarily related to its secured credit facility (see Note 8 ) and to its liabilities for its tax positions related to the unauthorized transactions. As the tax returns have been settled and statute of limitations have expired, the accrued interest expense on certain items has been reversed. Interest expense detail was as follows for the fiscal years ended June 30, 2015 and 2014 , respectively: 2015 2014 Interest expense (benefit) on secured credit facility $ 12,813 $ (587 ) Interest expense for tax positions related to unauthorized transactions — 24,575 Interest reversals for tax positions related to unauthorized transactions — (73,725 ) Other interest expense 148 Interest expense (income) $ 12,813 $ (49,589 )

INCOME (LOSS) PER COMMON AND CO

INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE (Notes)	12 Months Ended
	Jun. 30, 2015
Earnings Per Share, Basic and Diluted [Abstract]
Income (Loss) Per Common and Common Stock Equivalent Share	Basic income (loss) per share is computed based on the weighted-average number of common shares outstanding. The weighted-average number of common shares outstanding was 7,382,706 for the years ended June 30, 2015 and 2014 . When dilutive, stock options are included in income (loss) per share as share equivalents using the treasury stock method. For the years ended June 30, 2015 and 2014 there were no common stock equivalents related to stock option grants that were included in the computation of the weighted-average number of shares outstanding for diluted income (loss) per share. Shares issuable upon the exercise of outstanding options of 2,245,000 and 2,066,000 were excluded from the diluted weighted average common shares outstanding for the years ended June 30, 2015 and 2014 , respectively, as they would be anti-dilutive.

STOCK OPTIONS (Notes)

STOCK OPTIONS (Notes)	12 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options	In 2012, pursuant to the recommendation of the Board of Directors, the stockholders ratified the creation of the Company’s 2012 Omnibus Incentive Plan (the “2012 Plan”), which superseded the 1990 Flexible Incentive Plan (the "1990 Plan"). The 2012 Plan is administered by a committee of the Board of Directors and provides for granting of various stock-based awards including stock options to eligible participants, primarily officers and certain key employees. A total of 2,000,000 shares of common stock were available under the terms of the 2012 Plan plus shares outstanding under the 1990 Plan which expire or are otherwise forfeited, canceled or terminated after July 25, 2012, the Effective Date of the 2012 Plan. As of June 30, 2015 , there were 1,269,308 options available for future grants. Options vest over a three to five year period from the date of grant, with a maximum term of five to ten years. The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. The resulting compensation cost for fixed awards with graded vesting schedules is amortized on a straight-line basis over the vesting period for the entire award. The expected term of awards granted is determined based on historical experience with similar awards, giving consideration to the expected term and vesting schedules. The expected volatility is determined based on the Company’s historical stock prices over the most recent period commensurate with the expected term of the award. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term commensurate with the expected term of the award. Expected pre-vesting option forfeitures are based on historical data. As of June 30, 2015 , there was approximately $881,594 of total unrecognized compensation cost related to stock options granted under the 2012 Plan and 1990 Plan. This cost is expected to be recognized over a weighted average period of 2.39 years. Total unrecognized compensation cost will be adjusted for any future changes in estimated and actual forfeitures. The Company recognized stock-based compensation expense of $630,539 and $684,554 in 2015 and 2014 , respectively. These expenses were included in selling, general and administrative expenses. There was no cash received from stock option exercises during 2015 or 2014 . The per share weighted average fair value of the stock options granted during the years ended June 30, 2015 and 2014 were $0.73 and $1.47 , respectively. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. For the options granted in 2015 and 2014 , the Company used the following weighted-average assumptions: 2015 2014 Expected stock price volatility 43 % 47 % Risk free interest rate 1.52 % 1.27 % Expected dividend yield 4.00 % 4.00 % Expected forfeitures 1.50 % 1.50 % Expected life of options 4.6 years 4.6 years The following table identifies options granted, exercised, canceled, or available for exercise pursuant to the 1990 Plan and the 2012 Plan: Number of Stock Weighted Weighted Aggregate Shares under option at July 1, 2013 1,741,000 $3.90 - $13.09 $ 6.40 4.39 $ 55,160 Granted 445,000 $5.30 - $5.83 $ 5.64 Exercised — — — Expired (120,000 ) $11.01 $ 11.01 Forfeited — — — Shares under option at June 30, 2014 2,066,000 $3.90 - $13.09 $ 5.97 4.13 $ — Granted 470,000 $2.24 - $3.30 $ 3.14 Exercised — — — Expired (201,000 ) $4.97 - $13.09 $ 7.06 Forfeited (90,000 ) $3.00 - $6.00 $ 4.69 Shares under option at June 30, 2015 2,245,000 $2.24 - $13.09 $ 5.33 3.69 $ 1,676 Exercisable as of June 30, 2014 904,918 $3.90 - $13.09 $ 6.39 Exercisable as of June 30, 2015 1,134,500 $3.90 - $13.09 $ 6.01 A summary of intrinsic value and cash received from stock option exercises and fair value of vested stock options for the fiscal years ended June 30, 2015 and 2014 is as follows: 2015 2014 Total intrinsic value of stock options exercised $ — $ — Cash received from stock option exercises $ — $ — Total fair value of stock options vested $ 696,958 $ 586,342 During the years ended June 30, 2015 and 2014 total options of 470,000 and 445,000 , respectively, were granted during the year at a price equal to or greater than the market value of the common stock on the date of grant. These options had a weighted-average exercise price of $3.14 and $5.64 for the years ended June 30, 2015 and 2014 , respectively.

STOCK REPURCHASE PROGRAM (Notes

STOCK REPURCHASE PROGRAM (Notes)	12 Months Ended
	Jun. 30, 2015
Stock Purchase Agreement Disclosure [Abstract]
Stock Purchase Agreements	The Company has an agreement with the former chairman, in the event of his death, at the request of the executor of his estate, to repurchase his Company common stock from his estate. The Company does not have the right to require the estate to sell stock to the Company. As such, this arrangement is accounted for as a written put option with the fair value of the put option recorded as a derivative liability. As of June 30, 2015 , the estate of the former chairman does not hold a material amount of Company stock. As such, there is no exposure that the executor of the former chairman's estate may require the Company to repurchase a material amount of stock in the event of his death. The repurchase price is 95% of the fair market value of the common stock on the date that notice to repurchase is provided to the Company. The total number of shares to be repurchased will be sufficient to provide proceeds which are the lesser of $2,500,000 or the amount of estate taxes and administrative expenses incurred by his estate. The Company may elect to pay the purchase price in cash or may elect to pay cash equal to 25% of the total amount due and to execute a promissory note at the prime rate of interest for the balance payable over four years. The Company maintains a $1,150,000 life insurance policy to fund a substantial portion of this obligation. In April 1995, the Board of Directors approved a stock repurchase program authorizing the Company to purchase from time to time up to $2,000,000 of its common stock for its own account. Subsequently, the Board of Directors periodically has approved increases in the amount authorized for repurchase under the program. As of June 30, 2015 , the Board had authorized the repurchase of an aggregate of $45,500,000 of common stock under the stock repurchase program, of which $43,360,247 had been expended. No shares were repurchased in 2015 or 2014 .

ADDITIONAL CASH FLOW INFORMATIO

ADDITIONAL CASH FLOW INFORMATION (Notes)	12 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow Elements [Abstract]
Additional Cash Flow Information	The net changes in cash as a result of changes in operating assets and liabilities consist of the following: 2015 2014 Accounts receivable $ 311,182 $ 9,206,295 Inventories (127,508 ) (5,672 ) Income taxes receivable 903,745 (1,109,276 ) Prepaid expenses and other current assets (199,844 ) 317,389 Income taxes payable (175,000 ) (2,509,444 ) Accounts payable (292,501 ) (467,581 ) Accrued liabilities (2,428,446 ) (851,981 ) Other liabilities (117,545 ) (403,228 ) Net change $ (2,125,917 ) $ 4,176,502 Net cash (refunded) paid during the year for: Income taxes $ (985,585 ) $ 1,867,181 Interest $ 12,813 $ 2,185

EMPLOYEE BENEFIT PLANS (Notes)

EMPLOYEE BENEFIT PLANS (Notes)	12 Months Ended
	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Substantially all domestic employees are participants in the Koss Employee Stock Ownership Trust (KESOT) under which an annual contribution in either cash or common stock may be made at the discretion of the Board of Directors. No contributions were made for the fiscal years 2015 or 2014 . The Company maintains a retirement savings plan under Section 401(k) of the Internal Revenue Code. This plan covers all employees of the Company who have completed one full fiscal quarter of service. Matching contributions can be made at the discretion of the Board of Directors. For fiscal years 2015 and 2014 , the matching contribution was 25% and 100% of employee contributions to the plan, respectively. Vesting of Company contributions occurs immediately. Company contributions were $91,354 and $431,190 during 2015 and 2014 , respectively.

FOREIGN SALES AND SIGNIFICANT C

FOREIGN SALES AND SIGNIFICANT CUSTOMERS (Notes)	12 Months Ended
	Jun. 30, 2015
Foreign Sales and Significant Customers [Abstract]
Foreign Sales and Significant Customers	The Company’s net foreign sales amounted to $7,450,744 during 2015 and $8,326,831 during 2014 . The Company’s sales by country were as follows: 2015 2014 United States $ 16,779,312 $ 15,514,051 Sweden 3,677,225 2,310,064 Canada 498,026 604,971 Russia 478,012 377,135 United Kingdom 465,647 707,724 Czech Republic 441,754 1,309,697 Cyprus 414,787 1,975,736 All other countries 1,475,293 1,041,504 Net sales $ 24,230,056 $ 23,840,882 Sales during 2015 and 2014 to the Company's five largest customers, which are generally large national retailers or foreign distributors, represented approximately 45% and 37% of the Company's net sales, respectively. Included in these percentages were sales to a single Scandinavian distributor which represented approximately 15% and 10% of the Company's net sales during 2015 and 2014 , respectively.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Notes)	12 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former chairman. On May 15, 2012 , the lease was renewed for a period of five years, ending June 30, 2018 , and is being accounted for as an operating lease. The lease extension maintained the rent at a fixed rate of $380,000 per year. The Company is responsible for all property maintenance, insurance, taxes and other normal expenses related to ownership. Total rent expense was $ 380,000 in both 2015 and 2014 .

LEGAL MATTERS (Notes)

LEGAL MATTERS (Notes)	12 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	As of June 30, 2015 , the Company is party to the matters related to the unauthorized transactions described below: • On February 18, 2010, the Company filed an action against American Express Company, American Express Travel Related Services Company, Inc., AMEX Card Services Company, Decision Science, and Pamela S. Hopkins in Superior Court of Maricopa County, Arizona, case no. CV2010-006631. The claims alleged include aiding and abetting breach of fiduciary duty, aiding and abetting fraud, and conversion relating to the unauthorized transactions. The case is proceeding in the Superior Court with respect to those claims. • On December 17, 2010, the Company filed an action against Park Bank in Circuit Court of Milwaukee County, Wisconsin alleging claims of negligence and breach of the Uniform Fiduciaries Act relating to the unauthorized transactions. In 2015, Park Bank filed third party claims based on contribution and subrogation against Grant Thornton LLP and Michael Koss. The Court granted motions to dismiss the contribution claims against Grant Thornton LLP and Michael Koss, but determined that it was premature to decide the subrogation claims at this stage of the proceedings. The case is proceeding in the Circuit Court. The ultimate resolution of these matters is not determinable unless otherwise noted. We also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving these claims against us, individually or in aggregate, will not have a material adverse impact on our consolidated financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future.

SIGNIFICANT ACCOUNTING POLICI27

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Consolidation	BASIS OF CONSOLIDATION — The consolidated financial statements include the accounts of Koss and its subsidiary, Koss UK, which is a 100% -owned subsidiary. All significant intercompany accounts and transactions have been eliminated.
Revenue Recognition	REVENUE RECOGNITION —
Shipping and Handling Fees and Costs	SHIPPING AND HANDLING FEES AND COSTS — Shipping and handling costs charged to customers have been included in net sales. Shipping and handling costs incurred by the Company have been included in cost of goods sold.
Research and Development	RESEARCH AND DEVELOPMENT — Research and development activities charged to operations as a component of selling, general and administrative expenses in the accompanying Consolidated Statements of Operations amounted to $ 1,024,885 in fiscal year 2014 .
Advertising Costs	ADVERTISING COSTS — Advertising costs included within selling, general and administrative expenses in the accompanying Consolidated Statements of Operations were $ 154,505 in 2015 and $ 211,196 in 2014 . Such costs are expensed as incurred.
Income Taxes	INCOME TAXES — The Company operates as a C Corporation under the Internal Revenue Code of 1986, as amended (the “Code”). Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred income tax assets and liabilities are adjusted through the provision for income taxes. The differences relate principally to different methods used for depreciation and amortization for income tax purposes, net operating losses, capitalization requirements of the Code, allowances for doubtful accounts, stock-based compensation, warranty reserves, and other income tax related carryforwards. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized.
Income (Loss) Per Common and Common Stock Equivalent Share	INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE — Income (loss) per common and common stock equivalent share is calculated under the provisions of Topic 260 in the Accounting Standards Codification ("ASC") which provides for calculation of “basic” and “diluted” income (loss) per share. Basic income (loss) per common and common stock equivalent share includes no dilution and is computed by dividing net income by the weighted average common shares outstanding for the period. Diluted income (loss) per common and common stock equivalent share reflects the potential dilution of securities that could share in the earnings of an entity. See Note 13 for additional information on income (loss) per common and common stock equivalent share.
Cash and Cash Equivalents	CASH AND CASH EQUIVALENTS — The Company considers depository accounts and investments with a maturity at the date of acquisition and expected usage of three months or less to be cash and cash equivalents. The Company maintains its cash on deposit at a commercial bank located in the United States of America. The Company periodically has cash balances in excess of insured amounts. The Company has not experienced and does not expect to incur any losses on these deposits.
Accounts Receivable	ACCOUNTS RECEIVABLE — Accounts receivable consists of unsecured trade receivables due from customers. An allowance for doubtful accounts is recorded for significant past due receivable balances based on a review of the past due item and general economic conditions. See Note 3 for additional information on accounts receivable.
Inventories	INVENTORIES — The Company’s inventory is valued at the lower of last-in, first-out (“LIFO”) cost or market. The carrying value of inventory is reviewed for impairment on at least a quarterly basis or more frequently if warranted due to changes in market conditions. See Note 5 for additional information on inventory.
Equipment and Leasehold Improvements	EQUIPMENT AND LEASEHOLD IMPROVEMENTS — Equipment and leasehold improvements are stated at cost. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Major expenditures for property and equipment and significant renewals are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation and amortization are removed from the accounts and any resulting gains or losses are included in operations.
Life Insurance Policies	LIFE INSURANCE POLICIES — Life insurance policies are stated at cash surrender value or at the amount the Company would receive in the case of split-dollar arrangements. Increases in cash surrender value are included in selling, general and administrative expenses in the Consolidated Statements of Operations, which is where the annual premiums are recorded.
Product Warranty Obligations	PRODUCT WARRANTY OBLIGATIONS — Estimated future warranty costs related to products are charged to cost of goods sold during the period the related revenue is recognized. The product warranty liability reflects the Company’s best estimate of probable obligations under those warranties. See Note 10 for additional information on product warranty obligations.
Deferred Compensation	DEFERRED COMPENSATION — The Company’s deferred compensation liabilities are for a current and former officer and are calculated based on compensation, years of service and mortality tables. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. See Note 11 for additional information on deferred compensation.
Fair Value of Financial Instruments	FAIR VALUE OF FINANCIAL INSTRUMENTS — Cash equivalents, accounts receivable and accounts payable approximate fair value based on the short maturity of these instruments.
Impairment of Long-Lived Assets	IMPAIRMENT OF LONG-LIVED ASSETS — The Company evaluates the recoverability of the carrying amount of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company evaluates the recoverability of equipment and leasehold improvements annually or more frequently if events or circumstances indicate that an asset might be impaired. If an asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Management determines fair value using a undiscounted future cash flow analysis or other accepted valuation techniques. The Company recorded an impairment of capitalized software in the year ended June 30, 2014 , detailed in Note 4 . No impairments of the Company's long-lived assets were recorded in the year ended June 30, 2015 .
Legal Costs	LEGAL COSTS — All legal costs related to litigation are charged to operations as incurred, except settlements, which are expensed when a claim is probable and can be estimated. Recoveries of legal costs are recorded when the amount and items to be paid are confirmed by the insurance company. Proceeds from the settlement of legal disputes are recorded in income when the amounts are determinable and the collection is certain.
Stock-Based Compensation	STOCK-BASED COMPENSATION — The Company has a stock-based employee compensation plan, which is described more fully in Note 14 . The Company accounts for stock-based compensation in accordance with ASC 718 "Compensation - Stock Compensation". Under the fair value recognition provisions of this statement, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period.
Use of Estimates	USE OF ESTIMATES — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Reclassifications	RECLASSIFICATIONS — Certain amounts previously reported have been reclassified to conform to the current presentation.

UNAUTHORIZED TRANSACTION RELA28

UNAUTHORIZED TRANSACTION RELATED RECOVERIES (Tables)	12 Months Ended
	Jun. 30, 2015
Unauthorized Transactions, Costs and Related Recoveries, Net [Abstract]
Unauthorized Transaction Related Recoveries	For the years ended June 30, 2015 and 2014 , the costs and recoveries were as follows: 2015 2014 Legal fees incurred $ 152,492 $ 388,287 Proceeds from asset forfeitures (121,465 ) (1,134,082 ) Unauthorized transaction related costs (recoveries), net $ 31,027 $ (745,795 )

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
Change in the Allowance for Doubtful Accounts	Changes in the allowance for doubtful accounts were as follows: Fiscal Year Ended Balance, beginning of year Provision charged to expense Amounts written-off Balance, end of year 2015 $ 20,501 25,725 (20,174 ) $ 26,052 2014 $ 43,405 (182,020 ) 159,116 $ 20,501

IMPAIRMENT OF CAPITALIZED SOF30

IMPAIRMENT OF CAPITALIZED SOFTWARE, INVENTORY AND RELATED ITEMS (Tables)	12 Months Ended
	Jun. 30, 2015
Impairment of Capitalized Software, Inventory and Related Items [Abstract]
Impairment of Capitalized Software, Inventory and Related Items	The impairment is detailed in the following table: 2014 Product software development expenditures $ 2,308,752 Inventories 3,451,911 Product design costs 246,588 Tooling 298,696 Impairment of capitalized software, inventory and related items $ 6,305,947

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	The components of inventories at June 30, 2015 and 2014 were as follows: 2015 2014 Raw materials $ 5,374,333 $ 5,593,159 Finished goods 6,246,072 6,327,221 11,620,405 11,920,380 Reserve for obsolete inventory (4,437,965 ) (4,865,448 ) Total inventories $ 7,182,440 $ 7,054,932

EQUIPMENT AND LEASEHOLD IMPRO32

EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Tables)	12 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment, Net [Abstract]
Property, Plant and Equipment	The major categories of equipment and leasehold improvements at June 30, 2015 and 2014 are summarized as follows: Estimated useful lives 2015 2014 Machinery and equipment 5-10 years $ 642,200 $ 675,670 Furniture and office equipment 5-10 years 374,616 374,616 Tooling 5 years 4,126,850 3,607,314 Display booths 5-7 years 287,180 287,180 Computer equipment 3-5 years 1,414,517 1,414,517 Leasehold improvements 7-10 years 2,308,246 2,288,706 Assets in progress N/A 60,600 259,328 9,214,209 8,907,331 Less: accumulated depreciation and amortization 7,621,689 7,066,840 Equipment and leasehold improvements, net $ 1,592,520 $ 1,840,491

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The income tax provision in 2015 and 2014 consisted of the following: Year Ended June 30, 2015 2014 Current: Federal $ (100,126 ) $ (1,863,204 ) State (167,282 ) 69,984 Deferred 284,783 (2,608,369 ) Total income tax provision (benefit) $ 17,375 $ (4,401,589 )
Schedule of Effective Income Tax Rate Reconciliation	The 2015 and 2014 tax results in an effective rate different than the federal statutory rate because of the following: Year Ended June 30, 2015 2014 Federal income tax expense (benefit) at statutory rate $ 169,996 $ (3,382,307 ) State income tax expense (benefit), net of federal income tax benefit (21,442 ) (285,802 ) Increase in valuation allowance — 148,000 Stock-based compensation 53,596 58,187 Adjustments for unrecognized tax benefits (175,000 ) (546,113 ) Federal income tax credits — (187,349 ) Other (9,775 ) (206,205 ) Total income tax provision (benefit) $ 17,375 $ (4,401,589 )
Schedule of Deferred Tax Assets and Liabilities	Temporary differences which give rise to deferred income tax assets and liabilities at June 30, 2015 and June 30, 2014 include: 2015 2014 Deferred income tax assets: Deferred compensation $ 835,270 $ 858,434 Stock-based compensation 889,325 714,350 Accrued expenses and reserves 2,075,601 2,701,144 Federal and state net operating loss carryforwards 463,237 371,744 Valuation allowance (370,409 ) (370,409 ) Equipment and leasehold improvements 11,566 — Other 14,650 22,806 Total deferred income tax assets 3,919,240 4,298,069 Deferred income tax liabilities: Equipment and leasehold improvements — (98,717 ) Other (4,671 ) — Net deferred income tax assets $ 3,914,569 $ 4,199,352
Deferred Tax Assets as Presented on Consolidated Balance Sheets	Deferred income tax assets as presented on the consolidated balance sheets: 2015 2014 Current deferred income tax assets $ 2,045,316 $ 2,576,023 Noncurrent deferred income tax assets 1,869,253 1,623,329 Net deferred income tax assets $ 3,914,569 $ 4,199,352
Accrued Interest, Tax Position, Unauthorized Transactions	As part of the unauthorized transactions, there was no interest accrued by the Company as of June 30, 2015 and 2014 , respectively. 2015 2014 Accrued interest at beginning of year $ — $ 49,150 Interest charges to expense — 24,575 Interest charges reversed — (73,725 ) Accrued interest at end of year $ — $ —
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2015 2014 Unrecognized tax benefits at beginning of year $ 175,000 $ 696,113 Gross increases - tax positions in prior years — 25,000 Reductions due to lapse in statute — (546,113 ) Reductions based on settlements with taxing authorities (175,000 ) — Unrecognized tax benefits at end of year $ — $ 175,000
Summary of Valuation Allowance	The following are the changes in the valuation allowance: Year Ended June 30, Balance, beginning of year Increase in valuation allowance Release of valuation allowance Balance, end of year 2015 $ (370,409 ) — — $ (370,409 ) 2014 $ (222,409 ) (148,000 ) — $ (370,409 )

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	12 Months Ended
	Jun. 30, 2015
Accrued Liabilities, Current [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities for the years ended June 30, 2015 and 2014 are as follows: 2015 2014 Cooperative advertising and promotion allowances $ 400,114 $ 750,433 Product warranty obligations 312,664 385,852 Customer credit balances 261,977 1,988,052 Current deferred compensation 150,000 — Accrued returns 97,026 89,663 Employee benefits 93,568 129,518 Legal and professional fees 70,000 79,900 Management bonuses and profit-sharing 71,381 37,500 Sales commissions and bonuses 68,890 148,278 Accrued severance — 123,720 Other 49,407 120,557 $ 1,575,027 $ 3,853,473

PRODUCT WARRANTY OBLIGATIONS (T

PRODUCT WARRANTY OBLIGATIONS (Tables)	12 Months Ended
	Jun. 30, 2015
Standard Product Warranty Disclosure [Abstract]
Schedule of Product Warranty Liability	Changes to the product warranty obligations for the years ended June 30, 2015 and 2014 are as follows: Year Ended June 30, Balance, beginning of year Provision charged to expense Warranty expenses incurred Balance, end of year 2015 $ 722,624 103,925 (294,658 ) $ 531,891 2014 $ 1,111,500 97,300 (486,176 ) $ 722,624

INTEREST EXPENSE (Tables)

INTEREST EXPENSE (Tables)	12 Months Ended
	Jun. 30, 2015
Interest Expense [Abstract]
Interest Expense	Interest expense detail was as follows for the fiscal years ended June 30, 2015 and 2014 , respectively: 2015 2014 Interest expense (benefit) on secured credit facility $ 12,813 $ (587 ) Interest expense for tax positions related to unauthorized transactions — 24,575 Interest reversals for tax positions related to unauthorized transactions — (73,725 ) Other interest expense 148 Interest expense (income) $ 12,813 $ (49,589 )

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	12 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	For the options granted in 2015 and 2014 , the Company used the following weighted-average assumptions: 2015 2014 Expected stock price volatility 43 % 47 % Risk free interest rate 1.52 % 1.27 % Expected dividend yield 4.00 % 4.00 % Expected forfeitures 1.50 % 1.50 % Expected life of options 4.6 years 4.6 years
Schedule of Share-based Compensation - Options Granted, Exercised, Cancelled, or Available for Exercise	The following table identifies options granted, exercised, canceled, or available for exercise pursuant to the 1990 Plan and the 2012 Plan: Number of Stock Weighted Weighted Aggregate Shares under option at July 1, 2013 1,741,000 $3.90 - $13.09 $ 6.40 4.39 $ 55,160 Granted 445,000 $5.30 - $5.83 $ 5.64 Exercised — — — Expired (120,000 ) $11.01 $ 11.01 Forfeited — — — Shares under option at June 30, 2014 2,066,000 $3.90 - $13.09 $ 5.97 4.13 $ — Granted 470,000 $2.24 - $3.30 $ 3.14 Exercised — — — Expired (201,000 ) $4.97 - $13.09 $ 7.06 Forfeited (90,000 ) $3.00 - $6.00 $ 4.69 Shares under option at June 30, 2015 2,245,000 $2.24 - $13.09 $ 5.33 3.69 $ 1,676 Exercisable as of June 30, 2014 904,918 $3.90 - $13.09 $ 6.39 Exercisable as of June 30, 2015 1,134,500 $3.90 - $13.09 $ 6.01
Intrinsic Value and Cash Received from Stock Option Exercises and Fair Value of Vested Stock Options	A summary of intrinsic value and cash received from stock option exercises and fair value of vested stock options for the fiscal years ended June 30, 2015 and 2014 is as follows: 2015 2014 Total intrinsic value of stock options exercised $ — $ — Cash received from stock option exercises $ — $ — Total fair value of stock options vested $ 696,958 $ 586,342

ADDITIONAL CASH FLOW INFORMAT38

ADDITIONAL CASH FLOW INFORMATION (Tables)	12 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The net changes in cash as a result of changes in operating assets and liabilities consist of the following: 2015 2014 Accounts receivable $ 311,182 $ 9,206,295 Inventories (127,508 ) (5,672 ) Income taxes receivable 903,745 (1,109,276 ) Prepaid expenses and other current assets (199,844 ) 317,389 Income taxes payable (175,000 ) (2,509,444 ) Accounts payable (292,501 ) (467,581 ) Accrued liabilities (2,428,446 ) (851,981 ) Other liabilities (117,545 ) (403,228 ) Net change $ (2,125,917 ) $ 4,176,502 Net cash (refunded) paid during the year for: Income taxes $ (985,585 ) $ 1,867,181 Interest $ 12,813 $ 2,185

FOREIGN SALES AND SIGNIFICANT39

FOREIGN SALES AND SIGNIFICANT CUSTOMERS (Tables)	12 Months Ended
	Jun. 30, 2015
Foreign Sales and Significant Customers [Abstract]
Sales by Country	The Company’s sales by country were as follows: 2015 2014 United States $ 16,779,312 $ 15,514,051 Sweden 3,677,225 2,310,064 Canada 498,026 604,971 Russia 478,012 377,135 United Kingdom 465,647 707,724 Czech Republic 441,754 1,309,697 Cyprus 414,787 1,975,736 All other countries 1,475,293 1,041,504 Net sales $ 24,230,056 $ 23,840,882

SIGNIFICANT ACCOUNTING POLICI40

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Wholly owned former subsidiary, ownership percentage	100.00%
Research and development expensed		$ 1,024,885
Advertising costs expensed	$ 154,505	$ 211,196

UNAUTHORIZED TRANSACTION RELA41

UNAUTHORIZED TRANSACTION RELATED RECOVERIES (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Unauthorized Transactions, Costs and Related Recoveries, Net [Abstract]
Legal fees incurred	$ 152,492	$ 388,287
Proceeds from asset forfeitures	(121,465)	(1,134,082)
Unauthorized transaction related costs and (recoveries), net	$ 31,027	$ (745,795)

ACCOUNTS RECEIVABLE, CHANGE IN

ACCOUNTS RECEIVABLE, CHANGE IN ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of year	$ 20,501	$ 43,405
Provision charged to expense	25,725	(182,020)
Amounts written-off	(20,174)	159,116
Balance, end of year	$ 26,052	$ 20,501

ACCOUNTS RECEIVABLE, NARRATIVE

ACCOUNTS RECEIVABLE, NARRATIVE (Details) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2015
Receivables [Abstract]
Recoveries of previously written-off accounts receivable	$ 112,417
Foreign trade accounts receivable, denominated in US dollars, percentage	14.00%	5.00%

IMPAIRMENT OF CAPITALIZED SOF44

IMPAIRMENT OF CAPITALIZED SOFTWARE, INVENTORY AND RELATED ITEMS (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Impairment of Capitalized Software, Inventory and Related Items [Abstract]
Product software development expenditures		$ 2,308,752
Inventories		3,451,911
Product design costs		246,588
Tooling		298,696
Impairment of capitalized software, inventory and related items	$ 0	$ 6,305,947

INVENTORIES, NARRATIVE (Details

INVENTORIES, NARRATIVE (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Inventory Disclosure [Abstract]
LIFO reserve	$ 753,439	$ 1,172,262

INVENTORIES, COMPONENTS OF INVE

INVENTORIES, COMPONENTS OF INVENTORIES (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 5,374,333	$ 5,593,159
Finished goods	6,246,072	6,327,221
Gross inventory	11,620,405	11,920,380
Reserve for obsolete inventory	(4,437,965)	(4,865,448)
Total inventories	$ 7,182,440	$ 7,054,932

EQUIPMENT AND LEASEHOLD IMPRO47

EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross	$ 9,214,209	$ 8,907,331
Less: accumulated depreciation and amortization	7,621,689	7,066,840
Equipment and leasehold improvements, net	1,592,520	1,840,491
Machinery and equipment
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross	642,200	675,670
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross	374,616	374,616
Tooling
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross	4,126,850	3,607,314
Display booths
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross	287,180	287,180
Computer equipment
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross	1,414,517	1,414,517
Leasehold improvements
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross	2,308,246	2,288,706
Assets in progress
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross	$ 60,600	$ 259,328
Minimum [Member] | Machinery and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Minimum [Member] | Furniture and office equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Minimum [Member] | Tooling
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Minimum [Member] | Display booths
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Minimum [Member] | Computer equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Minimum [Member] | Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Maximum [Member] | Machinery and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Maximum [Member] | Furniture and office equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Maximum [Member] | Tooling
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Maximum [Member] | Display booths
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Maximum [Member] | Computer equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Maximum [Member] | Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years

INCOME TAXES, TAX PROVISION (De

INCOME TAXES, TAX PROVISION (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Federal	$ (100,126)	$ (1,863,204)
State	(167,282)	69,984
Deferred	284,783	(2,608,369)
Total income tax provision (benefit)	$ 17,375	$ (4,401,589)

INCOME TAXES, EFFECTIVE TAX RAT

INCOME TAXES, EFFECTIVE TAX RATE RECONCILIATION (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Federal income tax expense (benefit) at statutory rate	$ 169,996	$ (3,382,307)
State income tax expense (benefit), net of federal income tax benefit	(21,442)	(285,802)
Increase in valuation allowance	0	148,000
Stock-based compensation	53,596	58,187
Adjustments for unrecognized tax benefits	(175,000)	(546,113)
Federal income tax credits	0	(187,349)
Other	(9,775)	(206,205)
Total income tax provision (benefit)	$ 17,375	$ (4,401,589)

INCOME TAXES, TEMPORARY DIFFERE

INCOME TAXES, TEMPORARY DIFFERENCES (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Deferred Income Tax Assets:
Deferred compensation	$ 835,270	$ 858,434
Stock-based compensation	889,325	714,350
Accrued expenses and reserves	2,075,601	2,701,144
Federal and state net operating loss carryforwards	463,237	371,744
Valuation allowance	(370,409)	(370,409)
Deferred Tax Assets, Property, Plant and Equipment	11,566	0
Other	14,650	22,806
Total deferred income tax assets	3,919,240	4,298,069
Deferred Income Tax Liabilities:
Equipment and leasehold improvements	0	(98,717)
Other	(4,671)	0
Net deferred income tax assets	$ 3,914,569	$ 4,199,352

INCOME TAXES, DEFERRED TAX ASSE

INCOME TAXES, DEFERRED TAX ASSETS (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Current deferred income tax assets	$ 2,045,316	$ 2,576,023
Noncurrent deferred income tax assets	1,869,253	1,623,329
Net deferred income tax assets	$ 3,914,569	$ 4,199,352

INCOME TAXES, NARRATIVE (Detail

INCOME TAXES, NARRATIVE (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits that would impact effective tax rate	$ (25,000)	$ 175,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
State of Wisconsin net operating loss carryforwards	$ 6,095,423

INCOME TAXES, INTEREST (Details

INCOME TAXES, INTEREST (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Accrued interest at beginning of year	$ 0	$ 49,150
Interest charges to expense	0	24,575
Interest charges reversed	0	(73,725)
Accrued interest at end of year	$ 0	$ 0

INCOME TAXES, UNRECOGNIZED TAX

INCOME TAXES, UNRECOGNIZED TAX BENEFITS (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits at beginning of year	$ 175,000	$ 696,113
Gross increases - tax positions in prior years	0	25,000
Reductions due to lapse of statute	0	(546,113)
Reductions based on settlements with taxing authorities	(175,000)	0
Unrecognized tax benefits at end of year	$ 0	$ 175,000

INCOME TAXES, VALUATION ALLOWAN

INCOME TAXES, VALUATION ALLOWANCE (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of year	$ (370,409)
Balance, end of year	(370,409)	$ (370,409)
Valuation Allowance of Deferred Tax Assets [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of year	(370,409)	(222,409)
Increase in valuation allowance	0	(148,000)
Release of valuation allowance	0	0
Balance, end of year	$ (370,409)	$ (370,409)

CREDIT FACILITY (Details)

CREDIT FACILITY (Details) - USD ($)	May. 12, 2010	Jul. 23, 2014
Line of Credit Facility [Line Items]
Revolving secured credit facility, maximum borrowing available	$ 8,000,000	$ 5,000,000
Line of credit sublimit	$ 2,000,000
Minimum [Member]
Line of Credit Facility [Line Items]
Unused capacity, commitment fee percentage	0.30%
Minimum [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Interest rate, percentage spread, depending on Company's leverage ratio	0.00%
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Interest rate, percentage spread, depending on Company's leverage ratio	2.00%
Maximum [Member]
Line of Credit Facility [Line Items]
Unused capacity, commitment fee percentage	0.45%
Maximum [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Interest rate, percentage spread, depending on Company's leverage ratio	0.75%
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Interest rate, percentage spread, depending on Company's leverage ratio	3.00%

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Accrued Liabilities, Current [Abstract]
Legal and professional fees	$ 70,000	$ 79,900
Customer credit balances	261,977	1,988,052
Deferred Compensation Liability, Current	150,000	0
Cooperative advertising and promotion allowances	400,114	750,433
Accrued severance	0	123,720
Accrued returns	97,026	89,663
Product warranty obligations	312,664	385,852
Employee benefits	93,568	129,518
Management bonuses and profit-sharing	71,381	37,500
Sales commissions and bonuses	68,890	148,278
Other	49,407	120,557
Total accrued liabilities	$ 1,575,027	$ 3,853,473

PRODUCT WARRANTY OBLIGATIONS (D

PRODUCT WARRANTY OBLIGATIONS (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning of year	$ 722,624	$ 1,111,500
Provision charged to expense	103,925	97,300
Warranty expenses incurred	(294,658)	(486,176)
Balance, end of year	$ 531,891	$ 722,624

DEFERRED COMPENSATION (Details)

DEFERRED COMPENSATION (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Liability	$ 2,107,486	$ 2,320,091
Chairman of the Board
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Discount factor	2.70%	2.60%
Liability	$ 820,720	$ 704,306
Expense	$ 166,414	$ 202,383
Officer of Company
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Discount factor	4.80%	4.62%
Liability	$ 1,436,766	$ 1,615,785
Expense	$ (179,019)	$ (257,842)
Cash compensation - percent of base salary times number of years of service	2.00%

INTEREST EXPENSE (Details)

INTEREST EXPENSE (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Interest Expense [Abstract]
Interest benefit (expense) on secured credit facility	$ (12,813)	$ 587
Interest expense for tax positions related to unauthorized transactions	0	(24,575)
Interest reversals for tax positions related to unauthorized transactions	$ 0	(73,725)
Other interest expense		148
Interest reversal	$ 12,813	$ (49,589)

INCOME (LOSS) PER COMMON AND 61

INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE (Details) - shares	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share, Basic and Diluted [Abstract]
Weighted average number of shares outstanding	7,382,706	7,382,706
Common stock equivalents related to stock option grants that were included in the computation of the weighted-average number of shares outstanding	0	0
Shares under option excluded as anti-dilutive	2,245,000	2,066,000

STOCK OPTIONS, NARRATIVE (Detai

STOCK OPTIONS, NARRATIVE (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jul. 25, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock added to stock option plan			2,000,000
Options available for future grants	1,269,308
Unrecognized compensation costs related to stock options granted	$ 881,594
Weighted average period over which costs is expected to be recognized	2 years 4 months 21 days
Stock-based compensation expense	$ 630,539	$ 684,554
Cash received from stock option exercises	$ 0	$ 0
Per share weighted average fair value of the stock options granted	$ 0.73	$ 1.47
Shares granted at price equal to or greater than the market value of the common stock on the date of grant	470,000	445,000
Weighted average exercise price of share granted in period	$ 3.14	$ 5.64
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option vesting period	3 years
Option term	5 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option vesting period	5 years
Option term	10 years

STOCK OPTIONS, WEIGHTED AVERAGE

STOCK OPTIONS, WEIGHTED AVERAGE ASSUMPTIONS (Details)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected stock price volatility	43.00%	47.00%
Risk free interest rate	1.52%	1.27%
Expected dividend yield	4.00%	4.00%
Expected forfeitures	1.50%	1.50%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	4 years 7 months 19 days	4 years 7 months 6 days

STOCK OPTIONS, OPTIONS GRANTED,

STOCK OPTIONS, OPTIONS GRANTED, EXERCISED, CANCELLED OR AVAILABLE FOR EXERCISE (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Options Shares [Roll Forward]
Shares under option, beginning of period	2,066,000	1,741,000
Granted	470,000	445,000
Excercised	0	0
Expired	(201,000)	(120,000)
Forfeited	(90,000)	0
Shares under option, end of period	2,245,000	2,066,000	1,741,000
Excercisable	1,134,500	904,918
Exercise Price Range [Rollforward]
Stock Option Exercise Price Range, Shares under option, Lower Range Limit, Beginning Balance	$ 3.90	$ 3.90
Stock Option Exercise Price Range, Shares under option, Upper Range Limit, Beginning Balance	13.09	13.09
Stock Option Exercise Price Range, Granted, Lower Range Limit	2.24	5.30
Stock Option Exercise Price Range, Granted, Upper Range Limit	3.30	5.83
Stock Option Exercise Price Range, Exercised, Lower Range Limit	0	0
Stock Option Exercise Price Range, Exercised, Upper Range Limit	0	0
Stock Option Exercise Price Range, Expired, Lower Range Limit	4.97	11.01
Stock Option Exercise Price Range, Expired, Upper Range Limit	13.09	11.01
Stock Option Exercise Price Range, Forfeited, Lower Range Limit	3	0
Stock Option Exercise Price Range, Forfeited, Upper Range Limit	6	0
Stock Option Exercise Price Range, Shares under option, Lower Range Limit, Ending Balance	2.24	3.90	$ 3.90
Stock Option Exercise Price Range, Shares under option, Upper Range Limit, Ending Balance	13.09	13.09	13.09
Stock option exercise price range, exercisable, lower range limit	3.90	3.90
Stock option exercise price range, exercisable, upper range limit	13.09	13.09
Weighted average exercise price [Roll Forward]
Shares under option, Weighted Average Exercise Price, Beginning Balance	5.97	6.40
Granted, Weighted Average Exercise Price	3.14	5.64
Exercised, Weighted Average Exercise Price	0	0
Expired, Weighted Average Exercise Price	7.06	11.01
Forfeited, Weighted Average Exercise Price	4.69	0
Shares under option,Weighted Average Exercise Price, Ending Balance	5.33	5.97	$ 6.40
Exercisable, weighted average exercise price	$ 6.01	$ 6.39
Weighted average remaining contractual life	3 years 8 months 7 days	4 years 1 month 17 days	4 years 4 months 21 days
Aggregate intrinsic value of in-the-money options	$ 1,676	$ 0	$ 55,160

STOCK OPTIONS, INTRINSIC VALUE

STOCK OPTIONS, INTRINSIC VALUE AND CASH RECEIVED ON EXERCISES, FAIR VALUE OF VESTED OPTIONS (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total intrinsic value of stock options exercised	$ 0	$ 0
Cash received from stock option exercises	0	0
Total fair value of stock options vested	$ 696,958	$ 586,342

STOCK REPURCHASE PROGRAM (Detai

STOCK REPURCHASE PROGRAM (Details) - Jun. 30, 2015 - USD ($)	Total
Stock Purchase Agreement Disclosure [Abstract]
Maximum amount Board will approve per repurchase	$ 2,000,000
Authorized amount	45,500,000
Inception to date repurchased	$ 43,360,247

ADDITIONAL CASH FLOW INFORMAT67

ADDITIONAL CASH FLOW INFORMATION (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Supplemental Cash Flow Elements [Abstract]
Increase (Decrease) in Income Taxes Receivable	$ (903,745)	$ 1,109,276
Accounts receivable	(311,182)	(9,206,295)
Increase (Decrease) in Other Operating Liabilities	(117,545)	(403,228)
Inventories	127,508	5,672
Increase (Decrease) in Income Taxes Payable	(175,000)	(2,509,444)
Prepaid expenses and other current assets	199,844	(317,389)
Accounts payable	(292,501)	(467,581)
Accrued liabilities	(2,428,446)	(851,981)
Net change	2,125,917	(4,176,502)
Net cash (refunded) paid during the year for:
Income taxes	(985,585)	1,867,181
Interest	$ 12,813	$ 2,185

EMPLOYEE BENEFIT PLANS, KOSS EM

EMPLOYEE BENEFIT PLANS, KOSS EMPLOYEE STOCK OWNERSHIP TRUST (KESOT) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Koss Employee Stock Ownership Trust (KESOT), cash contributions	$ 0	$ 0

EMPLOYEE BENEFIT PLANS, RETIREM

EMPLOYEE BENEFIT PLANS, RETIREMENT SAVINGS PLAN UNDER SECTION 401(K) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Company match, percentage	25.00%	100.00%
Company contributions	$ 91,354	$ 431,190

FOREIGN SALES AND SIGNIFICANT70

FOREIGN SALES AND SIGNIFICANT CUSTOMERS, SALES BY COUNTRY (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 24,230,056	$ 23,840,882
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	16,779,312	15,514,051
Non-U.S. Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	7,450,744	8,326,831
Sweden
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	3,677,225	2,310,064
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	498,026	604,971
Cyprus
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	414,787	1,975,736
Czech Republic
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	441,754	1,309,697
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	465,647	707,724
All other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 1,475,293	$ 1,041,504

FOREIGN SALES AND SIGNIFICANT71

FOREIGN SALES AND SIGNIFICANT CUSTOMERS FOREIGN SALES AND SIGNIFICANT CUSTOMERS, NARRATIVE (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member]	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Five largest customers [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	45.00%	37.00%
Single United States Customer [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		9.00%
Single Scandinavian Customer [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	15.00%	10.00%

COMMITMENTS AND CONTINGENCIES72

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]
Term	5 years
Annual lease commitment	$ 380,000
Rent expense	$ 380,000	$ 380,000