Koss (KOSS) 10-Q 10 May 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - USD ($)	9 Months Ended
	Mar. 31, 2019	May 06, 2019	Dec. 31, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	KOSS CORP
Entity Central Index Key	0000056701
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		7,404,831
Smaller Reporting Company	true
Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Public Float			$ 8,010,893

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 2,722,895	$ 1,081,533
Accounts receivable, less allowance for doubtful accounts of $82,787 and $51,854, respectively	2,812,147	4,709,745
Inventories, net	6,729,666	6,138,679
Prepaid expenses and other current assets	275,315	206,776
Income taxes receivable	42,151	32,375
Total current assets	12,582,174	12,169,108
Equipment and leasehold improvements, net	913,806	1,132,105
Other assets:
Deferred Income Tax Assets, Net	13,277	0
Operating lease right-of-use assets	2,912,466	3,102,263
Cash surrender value of life insurance	6,532,249	6,374,372
Total other assets	9,457,992	9,476,635
Total assets	22,953,972	22,777,848
Current liabilities:
Accounts payable	1,207,199	1,429,491
Accrued liabilities	741,126	788,961
Deferred revenue	606,466	690,905
Operating lease liability	262,643	254,418
Total current liabilities	2,817,434	3,163,775
Long-term liabilities:
Deferred compensation	2,413,474	2,394,009
Deferred revenue	156,786	168,465
Operating lease liability	2,649,823	2,847,845
Total long-term liabilities	5,220,083	5,410,319
Total liabilities	8,037,517	8,574,094
Stockholders' equity:
Common stock, $0.005 par value, authorized 20,000,000 shares; issued and outstanding 7,404,831 and 7,382,706 shares, respectively	37,024	36,914
Paid in capital	6,091,023	5,752,270
Retained earnings	8,788,408	8,414,570
Total stockholders' equity	14,916,455	14,203,754
Total liabilities and stockholders' equity	$ 22,953,972	$ 22,777,848

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Allowance for doubtful accounts	$ 94,793	$ 51,854
Common stock, par value	$ 0.005	$ 0.005
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	7,404,831	7,382,706
Common stock, shares outstanding	7,404,831	7,382,706

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Document Fiscal Year Focus			2019
Revenue from Contract with Customer, Including Assessed Tax	$ 4,860,247	$ 4,390,454	$ 16,056,313	$ 16,365,370
Cost of goods sold	3,205,039	3,377,035	10,907,425	11,791,297
Gross profit	1,655,208	1,013,419	5,148,888	4,574,073
Operating expenses:
Selling, general and administrative expenses	1,505,922	1,771,295	4,798,045	5,203,125
Interest expense	0	0	0	5,218
Income before income tax provision	149,286	(757,876)	350,843	(634,270)
Income tax provision	(23,020)	4,274	(22,995)	3,047,356
Net income (loss)	$ 172,306	$ (762,150)	$ 373,838	$ (3,681,626)
Income (loss) per common share:
Basic	$ 0.02	$ (0.10)	$ 0.05	$ (0.50)
Diluted	$ 0.02	$ (0.10)	$ 0.05	$ (0.50)
Weighted Average Number of Shares Outstanding, Basic	7,404,831		7,399,768	7,382,706
Weighted Average Number of Shares Outstanding, Diluted	7,405,425	7,382,706	7,408,110	7,382,706

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Document Fiscal Year Focus	2019
Operating activities:
Net income (loss)	$ 373,838	$ (3,681,626)
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (recovery of) doubtful accounts	4,039	2,626
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	0	343
Depreciation of equipment and leasehold improvements	336,946	385,221
Stock-based compensation expense	292,186	248,624
Deferred income taxes	(13,277)	3,041,405
Change in cash surrender value of life insurance	(34,801)	(181,403)
Change in deferred revenue	(96,118)	(109,158)
Change in deferred compensation accrual	131,965	137,718
Deferred compensation paid	112,500	112,500
Net changes in operating assets and liabilities (see note 10)	954,130	1,788,052
Cash provided by operating activities	1,836,408	1,519,302
Investing activities:
Purchase of equipment and leasehold improvements	(118,647)	(250,618)
Life insurance premiums paid	(123,076)	(131,058)
Cash (used in) investing activities	(241,723)	(381,676)
Financing activities:
Proceeds from exercise of stock options	46,677	0
Cash provided by financing activities	46,677	0
Net increase in cash and cash equivalents	1,641,362	1,137,626
Cash and cash equivalents at beginning of period	1,081,533	$ 432,283
Cash and cash equivalents at end of period	$ 2,722,895

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF EQUITY Statement - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Common Stock [Member]
Common stock, shares outstanding	7,382,706	7,382,706
Common Stock, Value, Outstanding					$ 36,914
Paid in capital	$ 5,752,270		$ 5,752,270
Retained earnings	8,414,570			$ 8,414,570
Stockholders' Equity Attributable to Parent	14,203,754
Net income (loss)	373,838			373,838
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition			292,186
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition	292,186
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		22,125
Common stock shares issued					110
Adjustments to Additional Paid in Capital, Share-based Compensation and Exercise of Stock Options			46,567
Proceeds from exercise of stock options	$ 46,677
Common stock, shares outstanding	7,404,831	7,404,831
Common Stock, Value, Outstanding					$ 37,024
Paid in capital	$ 6,091,023		$ 6,091,023
Retained earnings	8,788,408			$ 8,788,408
Stockholders' Equity Attributable to Parent	$ 14,916,455

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - CURRENT PERIOD Statement - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Common Stock [Member]	Retained Earnings [Member]
Common stock, shares outstanding	7,382,706	7,382,706
Common Stock, Value, Outstanding				$ 36,914
Paid in capital	$ 5,752,270		$ 5,752,270
Retained earnings	8,414,570				$ 8,414,570
Stockholders' Equity Attributable to Parent	14,203,754
Net income (loss)	373,838				373,838
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition			292,186
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition	292,186
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		22,125
Common stock shares issued				110
Adjustments to Additional Paid in Capital, Share-based Compensation and Exercise of Stock Options			46,567
Proceeds from exercise of stock options	$ 46,677
Common stock, shares outstanding	7,404,831	7,404,831
Common Stock, Value, Outstanding				$ 37,024
Paid in capital	$ 6,091,023		$ 6,091,023
Retained earnings	8,788,408				$ 8,788,408
Stockholders' Equity Attributable to Parent	$ 14,916,455

CONDENSED CONSOLIDATED FINANCIA

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Notes)	9 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Condensed Consolidated Financial Statements	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The condensed consolidated balance sheet of Koss Corporation (the "Company") as of June 30, 2018 , has been derived from audited financial statements. The unaudited condensed consolidated financial statements presented herein are based on interim amounts. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made. The operating results for the nine months ended March 31, 2019 , are not necessarily indicative of the operating results that may be experienced for the full fiscal year ending June 30, 2019 . These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 . The Company has restated certain prior period amounts related to revenue and leases to conform to the current period presentation based on its adoption of the new accounting standards for those items.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES (Notes)	9 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	SIGNIFICANT ACCOUNTING POLICIES REVENUE RECOGNITION — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 (Topic 606), Revenue from Contracts with Customers. This new standard supersedes nearly all existing revenue recognition guidance and provides a five-step analysis to determine when and how revenue is recognized. The underlying principle is to recognize revenue when promised goods or services transfer to the customer. The amount of revenue recognized is to reflect the consideration expected to be received for those goods or services. The Company adopted the requirements of the new standard on July 1, 2018 using the full retrospective transition method. Prior period consolidated financial statements were restated to reflect full retrospective adoption beginning with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2018. Revenues from product sales are recognized when the customer obtains control of the product, which typically occurs upon shipment from the Company's facility. There are a very limited number of customers for which control does not pass until they have received the products at their facility. Revenue from product sales is adjusted for estimated warranty obligations and variable consideration, which are detailed below. Warranties - The Company offers a lifetime warranty to consumers in the United States and certain other countries. This lifetime warranty creates a future performance obligation. There are also certain foreign distributors that receive warranty repair parts and replacement headphones to satisfy warranty obligations in those countries. The Company defers revenue to recognize the future obligations related to these warranties. The deferred revenue is based on historical analysis of warranty claims relative to sales. This deferred revenue reflects the Company's best estimates of the amount of warranty returns and repairs it will experience during those future periods. If future warranty activity varies from the estimates, the Company will adjust the estimated deferred revenue, which would affect net sales and operating results in the period that such adjustment becomes known. Reserves for Variable Consideration - Revenue from product sales is recorded at the net sales price, which includes estimates of variable consideration for which reserves are established and which result from returns, rebates, and co-pay assistance that are offered within contracts between the Company and its customers. Overall, these reserves reflect the Company's best estimates of the amount of consideration to which it is entitled based on the terms of the contract. If actual results in the future vary from the estimates, the Company will adjust these estimates, which would affect net sales and operating results in the period such variances become known. Product Returns - The Company generally offers customers a limited right of return. The Company estimates the amount of product sales that may be returned by its customers and records the estimate as a reduction of revenue in the period the related product revenue is recognized. Product return liabilities are estimated using historical sales and returns information. If actual results in the future vary from the estimates, the Company will adjust these estimates, which would affect net sales and operating results in the period such variances become known. Volume Rebates - The Company offers volume rebates to certain customers in the United Sates and certain foreign distributors. These volume rebates are tied to sales volume within specified periods. The amount of revenue is reduced for variable consideration related to customer rebates, which are calculated using expected values and is based on program specific factors such as expected rebate percentages and expected volumes. Changes in such accruals may be required if actual sales volume differs from estimated sales volume, which would affect net sales and operating results in the period such variances become known. LEASES — In February 2016, the FASB issued ASU 2016-02 (Topic 842), Leases. This new standard revises existing lease guidance and requires all operating leases to be recorded on a company's balance sheet as right-of-use ("ROU") assets and lease liabilities. The new guidance also requires additional disclosures about leases. The Company adopted the requirements of the new standard on July 1, 2018 using the modified retrospective transition method. Prior period consolidated financial statements were restated to reflect modified retrospective adoption beginning with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2018. The Company determines if a contract is a lease at the date of inception. The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former chairman, and has determined that the lease is an operating lease. Operating leases are reported on the Company's condensed consolidated balance sheets as operating lease ROU assets and operating lease liabilities. Operating lease ROU assets and liabilities are valued at the present value of the future lease payment obligations. INCOME PER COMMON SHARE - Basic income per share is computed based on the weighted-average number of common shares outstanding. Diluted income per common share is computed by dividing net income by the weighted-average number of common shares outstanding assuming dilution. The difference between basic and diluted income per share is the result of the dilutive effect of outstanding stock options. For the nine months ended March 31, 2019 and 2018 , there were 2,521,827 and 2,395,000 shares of common stock underlying options and warrants, respectively, excluded due to these instruments being anti-dilutive.

RECENTLY ADOPTED ACCOUNTING PRO

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS (Notes)	9 Months Ended
	Mar. 31, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS REVENUE RECOGNITION — In May 2014, the FASB issued ASU 2014-09 (Topic 606), Revenue from Contracts with Customers. The Company adopted the new standard effective July 1, 2018, using the full retrospective method. Adoption of the new revenue recognition standard required the Company to restate its previously reported results for the prior year comparative period and had a material impact on the consolidated balance sheets but an overall immaterial impact on its consolidated statements of income and cash flows and related disclosures. The impact on the Company's consolidated balance sheets was a result of the adjustment to defer revenue from prior years and a corresponding adjustment to retained earnings. LEASES — In February 2016, the FASB issued ASU 2016-02 (Topic 842), Leases. The Company elected to early adopt the standard effective July 1, 2018, concurrent with the adoption of the new standard related to revenue recognition. The adoption of the new lease standard had a material impact on the consolidated balance sheets but did not have an impact on the consolidated statements of operations. The impact on the Company's consolidated balance sheets was a result of recording the right-of-use asset and corresponding lease liability. Adoption of the new standard also required the Company to restate its previously reported results to include the recognition of right-of-use assets and lease liabilities for the prior year comparative period. IMPACTS TO PREVIOUSLY REPORTED RESULTS — Adoption of the standard related to revenue recognition impacted the Company's previously reported results as follows: New As Revenue Balance Sheets Previously Standard As June 30, 2018 Reported Adjustment Adjusted Current liabilities: Accrued liabilities $ 1,178,571 $ (389,610 ) $ 788,961 Deferred revenue — 690,905 690,905 Long-term liabilities: Other liabilities 155,702 (155,702 ) — Deferred revenue — 168,465 168,465 Equity: Retained earnings 8,728,628 (314,058 ) 8,414,570 New As Revenue Statements of Income Previously Standard As Three Months Ended March 31, 2018 Reported Adjustment Adjusted Net sales $ 4,326,674 $ 63,780 $ 4,390,454 Cost of goods sold 3,363,121 13,914 3,377,035 Income tax provision 5,126 (852 ) 4,274 Net (loss) (812,868 ) 50,718 (762,150 ) (Loss) per common share: Basic $ (0.11 ) $ 0.01 $ (0.10 ) Diluted (0.11 ) 0.01 (0.10 ) New As Revenue Statements of Income Previously Standard As Nine Months Ended March 31, 2018 Reported Adjustment Adjusted Net sales $ 16,277,181 $ 88,189 $ 16,365,370 Cost of goods sold 11,753,719 37,578 11,791,297 Income tax provision 3,048,208 (852 ) 3,047,356 Net (loss) (3,733,089 ) 51,463 (3,681,626 ) (Loss) per common share: Basic $ (0.51 ) $ 0.01 $ (0.50 ) Diluted (0.51 ) 0.01 (0.50 ) Adoption of the standard related to leases impacted the Company's previously reported results by adding the following line items to the Company's balance sheets: Balance Sheets As June 30, 2018 Adjusted Assets: Operating lease right-of-use asset $ 3,102,263 Current liabilities: Operating lease liability 254,418 Long-term liabilities: Operating lease liability 2,847,845 Adoption of the standards related to revenue recognition and leases had no impact on total cash provided by operating activities on the consolidated statements of cash flows.

INVENTORIES (Notes)

INVENTORIES (Notes)	9 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	INVENTORIES The components of inventories were as follows: March 31, 2019 June 30, 2018* Raw materials $ 2,676,550 $ 2,717,862 Finished goods 6,463,112 6,057,703 9,139,662 8,775,565 Allowance for obsolete inventory (2,409,996 ) (2,636,886 ) Inventories, net $ 6,729,666 $ 6,138,679

INCOME TAXES (Notes)

INCOME TAXES (Notes)	9 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The Company files income tax returns in the United States federal jurisdiction and in several state jurisdictions. The statute of limitations for the Company’s federal tax returns for tax years beginning July 1, 2014 or later 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, 2014 or later. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“the Tax Act”) was signed. The Tax Act significantly changed the income tax environment for US corporations, including the reduction of the US federal corporate tax rate from 35% to 21%. For the three and nine months ended March 31, 2019 , the Company recorded an income tax benefit of $23,020 and $22,995 , respectively, due to refund of the AMT credits not recognized in prior years. This compare to income tax expense of $4,274 and $3,047,356 for the three and nine months ended March 31, 2018 . There was no tax expense in the three months ended March 31, 2019 , related to the federal statutory tax rate of 21% due to tax net operating loss carryforwards being utilized. The income tax expense for the nine months ended March 31, 2018 includes $713,826 for the write down of deferred income taxes due to the change in federal statutory rate as a result of the passage of the Tax Act and $2,429,235 related to the recording of a valuation allowance for all deferred taxes. The valuation allowance was recorded due to uncertainty of the ability to realize the deferred tax assets. The Company does not believe it has any unrecognized tax benefits as of March 31, 2019 or June 30, 2018 . Any changes to the Company’s unrecognized tax benefits as of March 31, 2019 , if recognized, would impact the effective tax rate.

CREDIT FACILITY (Notes)

CREDIT FACILITY (Notes)	9 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Credit Facility	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 June 29, 2017, the Credit Agreement was amended to reduce the facility to $4,000,000 and to eliminate the financial covenants. On May 9, 2018, the Credit Agreement was amended to extend the expiration to July 31, 2019. 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 of up to a sublimit of $2,000,000 and subject to certain other limitations. The loan may be used only for general corporate purposes of the Company. 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. The Company is currently in compliance with all covenants related to the Credit Agreement. As of March 31, 2019 and June 30, 2018 , there were no outstanding borrowings on the facility. The Company incurs interest expense primarily related to its secured credit facility. Interest expense was $0 and $5,218 for the three and nine months ended March 31, 2018 , respectively. There was no interest expense in the three and nine months ended March 31, 2019 .

ACCRUED LIABILITIES (Notes)

ACCRUED LIABILITIES (Notes)	9 Months Ended
	Mar. 31, 2019
Accrued Liabilities [Abstract]
Accrued Liabilities [Text Block]	ACCRUED LIABILITIES Accrued liabilities were as follows: March 31, 2019 June 30, 2018* Cooperative advertising and promotion allowances $ 190,923 $ 292,873 Customer credit balances 126,663 53,365 Current deferred compensation 150,000 150,000 Employee benefits 59,708 60,739 Legal and professional fees 90,300 81,000 Profit-sharing 21,578 17,975 Sales commissions and bonuses 64,342 74,078 Other 37,612 58,931 Total accrued liabilities $ 741,126 $ 788,961 *As adjusted for retrospective adoption of ASC 606

STOCK OPTIONS (Notes)

STOCK OPTIONS (Notes)	9 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options	STOCK OPTIONS The Company recognizes stock-based compensation expense for options granted under both the 1990 Flexible Incentive Plan and the 2012 Omnibus Incentive Plan ("2012 Plan"). The stock-based compensation relates to stock options granted to employees and non-employee directors. In the nine months ended March 31, 2019 , options to purchase 585,000 shares were granted under the 2012 Plan at a weighted average exercise price of $2.79 . In the nine months ended March 31, 2018 , options to purchase 490,000 shares were granted under the 2012 Plan at a weighted average exercise price of $1.89 . Stock-based compensation expense during the three and nine months ended March 31, 2019 was $97,830 and $292,186 . Stock-based compensation expense during the three and nine months ended March 31, 2018 was $82,792 and $248,624 .

ADDITIONAL CASH FLOW INFORMATIO

ADDITIONAL CASH FLOW INFORMATION (Notes)	9 Months Ended
	Mar. 31, 2019
Supplemental Cash Flow Elements [Abstract]
Additional Cash Flow Information	ADDITIONAL CASH FLOW INFORMATION The net changes in cash as a result of changes in operating assets and liabilities consist of the following: Nine Months Ended March 31 2019 2018* Accounts receivable $ 1,893,559 $ 919,927 Inventories (590,987 ) 1,988,887 Prepaid expenses and other current assets (68,539 ) (123,671 ) Income taxes receivable (9,776 ) 5,951 Accounts payable (222,292 ) (1,414,569 ) Accrued liabilities (47,835 ) 411,527 Net change $ 954,130 $ 1,788,052 Net cash paid during the period for: Income taxes $ 1,678 $ 3,182 Interest $ — $ 5,218 *As adjusted for retrospective adoption of ASC 606

DEFERRED REVENUE (Notes)

DEFERRED REVENUE (Notes)	9 Months Ended
	Mar. 31, 2019
Deferred Revenue [Abstract]
Deferred Revenue Disclosure [Text Block]	DEFERRED REVENUE Deferred revenue relates primarily to consumer and customer warranties. These constitute future performance obligations and the Company defers revenue to recognize these future performance obligations. Changes in unearned revenue were as follows: Beginning Deferral Recognition Ending Nine Months Ended March 31, 2019 $ 859,370 $ 368,087 $ (464,205 ) $ 763,252

LEASES LEASES (Notes)

LEASES LEASES (Notes)	9 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Lessee, Operating Leases [Text Block]	LEASES The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former Chairman. On January 5, 2017, the lease was renewed for a period of five years, ending June 30, 2023, and is being accounted for as an operating lease. The lease extension maintained the rent at a fixed rate of $380,000 per year and included an option to renew at the same rate for an additional five years ending June 30, 2028 . The Company is responsible for all property maintenance, insurance, taxes and other normal expenses related to ownership. The Company used its incremental borrowing rate as of July 1, 2017, the retrospective date of adoption of ASU 2016-02 (Topic 842) Leases, to calculate the net present value of the operating lease ROU asset and liability. The five year renewal option was included in the calculation of the ROU asset and liability as the Company believes it is more likely than not to exercise its right to renew. The non-lease components of the agreement related to common area maintenance charges are accounted for separately. Supplemental information related to lease expense and valuation of the ROU asset and liability was as follows: Nine Months Ended March 31 2019 2018 Operating lease cost $ 285,000 $ 285,000 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 285,000 $ 285,000 Weighted-average remaining lease term (in years) 9.25 10.25 Weighted-average discount rate 4.25 % 4.25 % The maturity schedule of future minimum lease payments and reconciliation to the operating lease liabilities reported on the consolidated balance sheets is as follows: Year ending June 30, 2019 (excluding the nine months ended March 31, 2019) $ 95,000 2020 380,000 2021 380,000 2022 380,000 2023 380,000 Thereafter 1,900,000 Total lease payments 3,515,000 Present value adjustment (602,534 ) Total lease liabilities $ 2,912,466

LEGAL MATTERS (Notes)

LEGAL MATTERS (Notes)	9 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	LEGAL MATTERS As of March 31, 2019 , the Company is party to the matters described below: • On or around July 13, 2018, the Company was served with a lawsuit by a former celebrity endorser of certain products alleging that the Company used her name and image to market and sell the products after the termination of their agreement without her consent. This case remains pending. The ultimate resolution of this matter is not determinable at this time. • The Company has launched a program focused on enforcing its intellectual property and, in particular, certain of its patent portfolio. The Company has incurred costs and will continue to incur costs related to enforcing this program. These costs primarily relate to legal fees and other costs involved with the underlying efforts to enforce this portfolio. Depending on the response to and the underlying results of the enforcement program, the Company may enter into licensing arrangements or initiate lawsuits as part of the Company’s efforts to enforce this program.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Revenue Recognition, Sales of Goods [Policy Text Block]	REVENUE RECOGNITION — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 (Topic 606), Revenue from Contracts with Customers. This new standard supersedes nearly all existing revenue recognition guidance and provides a five-step analysis to determine when and how revenue is recognized. The underlying principle is to recognize revenue when promised goods or services transfer to the customer. The amount of revenue recognized is to reflect the consideration expected to be received for those goods or services. The Company adopted the requirements of the new standard on July 1, 2018 using the full retrospective transition method. Prior period consolidated financial statements were restated to reflect full retrospective adoption beginning with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2018. Revenues from product sales are recognized when the customer obtains control of the product, which typically occurs upon shipment from the Company's facility. There are a very limited number of customers for which control does not pass until they have received the products at their facility. Revenue from product sales is adjusted for estimated warranty obligations and variable consideration, which are detailed below. Warranties - The Company offers a lifetime warranty to consumers in the United States and certain other countries. This lifetime warranty creates a future performance obligation. There are also certain foreign distributors that receive warranty repair parts and replacement headphones to satisfy warranty obligations in those countries. The Company defers revenue to recognize the future obligations related to these warranties. The deferred revenue is based on historical analysis of warranty claims relative to sales. This deferred revenue reflects the Company's best estimates of the amount of warranty returns and repairs it will experience during those future periods. If future warranty activity varies from the estimates, the Company will adjust the estimated deferred revenue, which would affect net sales and operating results in the period that such adjustment becomes known. Reserves for Variable Consideration - Revenue from product sales is recorded at the net sales price, which includes estimates of variable consideration for which reserves are established and which result from returns, rebates, and co-pay assistance that are offered within contracts between the Company and its customers. Overall, these reserves reflect the Company's best estimates of the amount of consideration to which it is entitled based on the terms of the contract. If actual results in the future vary from the estimates, the Company will adjust these estimates, which would affect net sales and operating results in the period such variances become known. Product Returns - The Company generally offers customers a limited right of return. The Company estimates the amount of product sales that may be returned by its customers and records the estimate as a reduction of revenue in the period the related product revenue is recognized. Product return liabilities are estimated using historical sales and returns information. If actual results in the future vary from the estimates, the Company will adjust these estimates, which would affect net sales and operating results in the period such variances become known. Volume Rebates - The Company offers volume rebates to certain customers in the United Sates and certain foreign distributors. These volume rebates are tied to sales volume within specified periods. The amount of revenue is reduced for variable consideration related to customer rebates, which are calculated using expected values and is based on program specific factors such as expected rebate percentages and expected volumes. Changes in such accruals may be required if actual sales volume differs from estimated sales volume, which would affect net sales and operating results in the period such variances become known.
Lessee, Leases [Policy Text Block]	LEASES — In February 2016, the FASB issued ASU 2016-02 (Topic 842), Leases. This new standard revises existing lease guidance and requires all operating leases to be recorded on a company's balance sheet as right-of-use ("ROU") assets and lease liabilities. The new guidance also requires additional disclosures about leases. The Company adopted the requirements of the new standard on July 1, 2018 using the modified retrospective transition method. Prior period consolidated financial statements were restated to reflect modified retrospective adoption beginning with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2018. The Company determines if a contract is a lease at the date of inception. The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former chairman, and has determined that the lease is an operating lease. Operating leases are reported on the Company's condensed consolidated balance sheets as operating lease ROU assets and operating lease liabilities. Operating lease ROU assets and liabilities are valued at the present value of the future lease payment obligations.
Earnings Per Share, Policy [Policy Text Block]	INCOME PER COMMON SHARE - Basic income per share is computed based on the weighted-average number of common shares outstanding. Diluted income per common share is computed by dividing net income by the weighted-average number of common shares outstanding assuming dilution. The difference between basic and diluted income per share is the result of the dilutive effect of outstanding stock options. For the nine months ended March 31, 2019 and 2018 , there were 2,521,827 and 2,395,000 shares of common stock underlying options and warrants, respectively, excluded due to these instruments being anti-dilutive.

RECENTLY ADOPTED ACCOUNTING P_2

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS - REVENUE (Tables)	9 Months Ended
	Mar. 31, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	Adoption of the standard related to revenue recognition impacted the Company's previously reported results as follows: New As Revenue Balance Sheets Previously Standard As June 30, 2018 Reported Adjustment Adjusted Current liabilities: Accrued liabilities $ 1,178,571 $ (389,610 ) $ 788,961 Deferred revenue — 690,905 690,905 Long-term liabilities: Other liabilities 155,702 (155,702 ) — Deferred revenue — 168,465 168,465 Equity: Retained earnings 8,728,628 (314,058 ) 8,414,570 New As Revenue Statements of Income Previously Standard As Three Months Ended March 31, 2018 Reported Adjustment Adjusted Net sales $ 4,326,674 $ 63,780 $ 4,390,454 Cost of goods sold 3,363,121 13,914 3,377,035 Income tax provision 5,126 (852 ) 4,274 Net (loss) (812,868 ) 50,718 (762,150 ) (Loss) per common share: Basic $ (0.11 ) $ 0.01 $ (0.10 ) Diluted (0.11 ) 0.01 (0.10 ) New As Revenue Statements of Income Previously Standard As Nine Months Ended March 31, 2018 Reported Adjustment Adjusted Net sales $ 16,277,181 $ 88,189 $ 16,365,370 Cost of goods sold 11,753,719 37,578 11,791,297 Income tax provision 3,048,208 (852 ) 3,047,356 Net (loss) (3,733,089 ) 51,463 (3,681,626 ) (Loss) per common share: Basic $ (0.51 ) $ 0.01 $ (0.50 ) Diluted (0.51 ) 0.01 (0.50 )

RECENTLY ADOPTED ACCOUNTING P_3

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS - LEASES (Tables)	9 Months Ended
	Mar. 31, 2019
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncement, Early Adoption [Line Items]
New Accounting Pronouncement, Early Adoption [Table Text Block]	Adoption of the standard related to leases impacted the Company's previously reported results by adding the following line items to the Company's balance sheets: Balance Sheets As June 30, 2018 Adjusted Assets: Operating lease right-of-use asset $ 3,102,263 Current liabilities: Operating lease liability 254,418 Long-term liabilities: Operating lease liability 2,847,845

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	The components of inventories were as follows: March 31, 2019 June 30, 2018* Raw materials $ 2,676,550 $ 2,717,862 Finished goods 6,463,112 6,057,703 9,139,662 8,775,565 Allowance for obsolete inventory (2,409,996 ) (2,636,886 ) Inventories, net $ 6,729,666 $ 6,138,679

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	9 Months Ended
	Mar. 31, 2019
Accrued Liabilities [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued liabilities were as follows: March 31, 2019 June 30, 2018* Cooperative advertising and promotion allowances $ 190,923 $ 292,873 Customer credit balances 126,663 53,365 Current deferred compensation 150,000 150,000 Employee benefits 59,708 60,739 Legal and professional fees 90,300 81,000 Profit-sharing 21,578 17,975 Sales commissions and bonuses 64,342 74,078 Other 37,612 58,931 Total accrued liabilities $ 741,126 $ 788,961 *As adjusted for retrospective adoption of ASC 606

ADDITIONAL CASH FLOW INFORMAT_2

ADDITIONAL CASH FLOW INFORMATION (Tables)	9 Months Ended
	Mar. 31, 2019
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: Nine Months Ended March 31 2019 2018* Accounts receivable $ 1,893,559 $ 919,927 Inventories (590,987 ) 1,988,887 Prepaid expenses and other current assets (68,539 ) (123,671 ) Income taxes receivable (9,776 ) 5,951 Accounts payable (222,292 ) (1,414,569 ) Accrued liabilities (47,835 ) 411,527 Net change $ 954,130 $ 1,788,052 Net cash paid during the period for: Income taxes $ 1,678 $ 3,182 Interest $ — $ 5,218 *As adjusted for retrospective adoption of ASC 606

LEASES LEASES (Tables)

LEASES LEASES (Tables)	9 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Lease, Cost [Table Text Block]	Supplemental information related to lease expense and valuation of the ROU asset and liability was as follows: Nine Months Ended March 31 2019 2018 Operating lease cost $ 285,000 $ 285,000 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 285,000 $ 285,000 Weighted-average remaining lease term (in years) 9.25 10.25 Weighted-average discount rate 4.25 % 4.25 %
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	The maturity schedule of future minimum lease payments and reconciliation to the operating lease liabilities reported on the consolidated balance sheets is as follows: Year ending June 30, 2019 (excluding the nine months ended March 31, 2019) $ 95,000 2020 380,000 2021 380,000 2022 380,000 2023 380,000 Thereafter 1,900,000 Total lease payments 3,515,000 Present value adjustment (602,534 ) Total lease liabilities $ 2,912,466

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended
	Mar. 31, 2019shares
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,592,875

RECENTLY ADOPTED ACCOUNTING P_4

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS - REVENUE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accrued liabilities	$ 741,126		$ 741,126		$ 788,961
Deferred revenue	606,466		606,466		690,905
Other liabilities					0
Deferred revenue	156,786		156,786		168,465
Retained earnings	8,788,408		8,788,408		8,414,570
Revenue from Contract with Customer, Including Assessed Tax	4,860,247	$ 4,390,454	16,056,313	$ 16,365,370
Cost of goods sold	3,205,039	3,377,035	10,907,425	11,791,297
Income tax provision	(23,020)	4,274	(22,995)	3,047,356
Net income (loss)	$ 172,306	$ (762,150)	$ 373,838	$ (3,681,626)
Basic	$ 0.02	$ (0.10)	$ 0.05	$ (0.50)
Diluted	$ 0.02	$ (0.10)	$ 0.05	$ (0.50)
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accrued liabilities					1,178,571
Deferred revenue					0
Other liabilities					155,702
Deferred revenue					0
Retained earnings					8,728,628
Revenue from Contract with Customer, Including Assessed Tax		$ 4,326,674		$ 16,277,181
Cost of goods sold		3,363,121		11,753,719
Income tax provision		5,126		3,048,208
Net income (loss)		$ (812,868)		$ (3,733,089)
Basic		$ (0.11)		$ (0.51)
Diluted		$ (0.11)		$ (0.51)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accrued liabilities					(389,610)
Deferred revenue					690,905
Other liabilities					(155,702)
Deferred revenue					168,465
Retained earnings					$ (314,058)
Revenue from Contract with Customer, Including Assessed Tax		$ 63,780		$ 88,189
Cost of goods sold		13,914		37,578
Income tax provision		(852)		(852)
Net income (loss)		$ 50,718		$ 51,463
Basic		$ 0.01		$ 0.01
Diluted		$ 0.01		$ 0.01

RECENTLY ADOPTED ACCOUNTING P_5

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS - LEASES (Details) - Accounting Standards Update 2016-02 [Member]	Jun. 30, 2018USD ($)
New Accounting Pronouncement, Early Adoption [Line Items]
Operating lease right-of-use assets	$ 3,102,263
Operating lease liability	254,418
Operating lease liability	$ 2,847,845

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 2,676,550	$ 2,717,862
Finished goods	6,463,112	6,057,703
Gross inventory	9,139,662	8,775,565
Allowance for obsolete inventory	(2,409,996)	(2,636,886)
Inventories, net	$ 6,729,666	$ 6,138,679

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Income Tax Contingency [Line Items]
Income tax provision	$ (23,020)	$ 4,274	$ (22,995)	$ 3,047,356
Unrecognized tax benefits	0		0		$ 0
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 0		0
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount			$ 713,826
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount				$ 2,429,235
Document Period End Date			Mar. 31, 2019

CREDIT FACILITY (Details)

CREDIT FACILITY (Details) - USD ($)	May 12, 2010	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018	Jun. 29, 2017
Line of Credit Facility [Line Items]
Revolving secured credit facility, maximum borrowing available	$ 8,000,000						$ 4,000,000
Line of credit sublimit	$ 2,000,000
Document Period End Date				Mar. 31, 2019
Line of credit facility		$ 0		$ 0		$ 0
Interest Expense, Debt		$ 0	$ 0		$ 5,218
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 ($)	Mar. 31, 2019	Jun. 30, 2018
Accrued Liabilities [Abstract]
Cooperative advertising and promotion allowances	$ 190,923	$ 292,873
Customer credit balances	126,663	53,365
Current deferred compensation	150,000	150,000
Employee benefits	59,708	60,739
Legal and professional fees	90,300	81,000
Profit-sharing	21,578	17,975
Sales commissions and bonuses	64,342	74,078
Other	37,612	58,931
Total accrued liabilities	$ 741,126	$ 788,961

STOCK OPTIONS (Details)

STOCK OPTIONS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Granted (in shares)			585,000	490,000
Weighted average exercise price of shares granted in period			$ 2.79	$ 1.89
Stock-based compensation expense	$ 97,830	$ 82,792	$ 292,186	$ 248,624

ADDITIONAL CASH FLOW INFORMAT_3

ADDITIONAL CASH FLOW INFORMATION (Details) - USD ($)	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Supplemental Cash Flow Elements [Abstract]
Accounts receivable	$ 1,893,559	$ 919,927
Inventories	(590,987)	1,988,887
Prepaid expenses and other current assets	(68,539)	(123,671)
Income taxes receivable	(9,776)	5,951
Accounts payable	(222,292)	(1,414,569)
Accrued liabilities	(47,835)	411,527
Net change	(954,130)	(1,788,052)
Net cash (refunded) paid during the period for:
Income taxes	1,678	3,182
Interest	$ 0	$ 5,218

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($)	9 Months Ended
	Mar. 31, 2019	Jun. 30, 2018
Deferred Revenue [Abstract]
Deferred Revenue, Additions	$ 368,087
Deferred Revenue, Revenue Recognized	464,205
Deferred Revenue	$ 763,252	$ 859,370

LEASES LEASES, NARRATIVE (Detai

LEASES LEASES, NARRATIVE (Details) - USD ($)	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2017
Leases [Abstract]
Operating Lease, Expense	$ 380,000
Lessee, Operating Lease, Renewal Term	5 years
Operating lease cost	$ 285,000	$ 285,000
Operating cash flows from operating leases	$ 285,000	$ 285,000
Weighted-average remaining lease term (in years)	10 years 3 months		10 years 9 months
Weighted-average discount rate	4.25%		4.25%

LEASES LEASES, MATURITY SCHEDUL

LEASES LEASES, MATURITY SCHEDULE (Details)	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease payments, 2019 (excluding the six months ended December 31, 2018)	$ 95,000
Operating lease payments, 2020	380,000
Operating lease payments, 2021	380,000
Operating lease payments, 2022	380,000
Operating lease payments, 2023	380,000
Operating lease payments, Thereafter	1,900,000
Total operating lease payments	3,515,000
Present value adjustment	(602,534)
Total operating lease liabilities	$ 2,912,466

Uncategorized Items - koss-2019

Label	Element	Value
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationStockOptionsRequisiteServicePeriodRecognition	$ 97,830
Common Stock [Member]
Common Stock, Value, Outstanding	us-gaap_CommonStockValueOutstanding	37,024
Additional Paid-in Capital [Member]
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	97,830
Additional Paid in Capital, Common Stock	us-gaap_AdditionalPaidInCapitalCommonStock	5,993,193
Retained Earnings [Member]
Net Income (Loss) Attributable to Parent	us-gaap_NetIncomeLoss	172,306
Retained Earnings (Accumulated Deficit)	us-gaap_RetainedEarningsAccumulatedDeficit	$ 8,616,102
Common Stock [Member]
Common Stock, Shares, Outstanding	us-gaap_CommonStockSharesOutstanding	7,404,831