Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2024 | May 06, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --06-30 | |
Document Transition Report | false | |
Entity File Number | 0-3295 | |
Entity Registrant Name | KOSS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 4129 North Port Washington Avenue | |
Entity Address, City Or Town | Milwaukee | |
Entity Address, State Or Province | WI | |
Entity Tax Identification Number | 39-1168275 | |
Entity Address, Postal Zip Code | 53212 | |
City Area Code | 414 | |
Local Phone Number | 964-5000 | |
Title of 12(b) Security | Common Stock, par value $0.005 per share | |
Trading Symbol | KOSS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,254,795 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000056701 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 2,912,679 | $ 3,091,062 |
Short term investments | 7,020,288 | 17,064,274 |
Accounts receivable, less allowance for credit losses of $1,922 and $6,027, respectively | 1,197,055 | 1,379,517 |
Inventories | 4,661,005 | 6,423,441 |
Prepaid expenses and other current assets | 1,117,276 | 1,002,514 |
Interest receivable | 116,575 | 51,150 |
Income taxes receivable | 210,778 | 86,901 |
Total current assets | 17,235,656 | 29,098,859 |
Equipment and leasehold improvements, net | 1,272,817 | 953,903 |
Other assets: | ||
Long term investments | 10,012,611 | |
Operating lease right-of-use asset | 2,825,348 | 3,015,887 |
Cash surrender value of life insurance | 6,258,436 | 6,020,048 |
Total other assets | 19,096,395 | 9,035,935 |
Total assets | 37,604,868 | 39,088,697 |
Current liabilities: | ||
Accounts payable | 215,705 | 267,513 |
Accrued liabilities | 901,297 | 1,342,039 |
Deferred revenue | 292,795 | 450,312 |
Operating lease liability | 236,570 | 236,225 |
Income taxes payable | 5,281 | 87,237 |
Total current liabilities | 1,651,648 | 2,383,326 |
Long-term liabilities: | ||
Deferred compensation | 2,110,507 | 1,997,120 |
Deferred revenue | 117,402 | 113,003 |
Operating lease liability | 2,602,838 | 2,787,970 |
Total long-term liabilities | 4,830,747 | 4,898,093 |
Total liabilities | 6,482,395 | 7,281,419 |
Stockholders' equity: | ||
Common stock, $0.005 par value, authorized 20,000,000 shares; issued and outstanding 9,254,795 and 9,234,795, respectively | 46,274 | 46,174 |
Paid in capital | 13,269,630 | 13,113,993 |
Retained earnings | 17,806,569 | 18,647,111 |
Total stockholders' equity | 31,122,473 | 31,807,278 |
Total liabilities and stockholders' equity | $ 37,604,868 | $ 39,088,697 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,922 | $ 6,027 |
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 9,254,795 | 9,234,795 |
Common stock, shares outstanding (in shares) | 9,254,795 | 9,234,795 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Consolidated Statements of Operations [Abstract] | ||||
Net sales | $ 2,637,606 | $ 3,380,840 | $ 9,371,668 | $ 10,026,301 |
Cost of goods sold | 1,796,083 | 2,076,482 | 6,354,015 | 6,390,557 |
Gross profit | 841,523 | 1,304,358 | 3,017,653 | 3,635,744 |
Selling, general and administrative expenses | 1,451,247 | 1,749,341 | 4,572,049 | 27,907,246 |
(Loss) from operations | (609,724) | (444,983) | (1,554,396) | (24,271,502) |
Other income | 33,000,000 | |||
Interest income | 214,814 | 189,593 | 636,482 | 314,482 |
(Loss) income before income tax provision (benefit) | (394,910) | (255,390) | (917,914) | 9,042,980 |
Income tax provision (benefit) | (81,130) | (30,910) | (77,372) | 463,928 |
Net (loss) income | $ (313,780) | $ (224,480) | $ (840,542) | $ 8,579,052 |
(Loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.09) | $ 0.93 |
Diluted (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.09) | $ 0.88 |
Weighted-average number of shares: | ||||
Basic (in shares) | 9,254,795 | 9,206,135 | 9,243,559 | 9,183,042 |
Diluted (in shares) | 9,254,795 | 9,206,135 | 9,243,559 | 9,791,627 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities: | ||
Net (loss) income | $ (840,542) | $ 8,579,052 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
(Recovery of) Provision for credit losses | (4,105) | 40,277 |
Depreciation of equipment and leasehold improvements | 142,046 | 186,168 |
Accretion of discount on treasury securities | (313,704) | (110,632) |
Noncash operating lease expense | 5,752 | 6,391 |
Stock-based compensation expense | 119,937 | 243,688 |
Change in cash surrender value of life insurance | (156,644) | (147,012) |
Provision for deferred compensation | 113,387 | 62,783 |
Loss on disposal of fixed assets | 2,263 | |
Net changes in operating assets and liabilities: | ||
Accounts receivable | 186,567 | 570,932 |
Inventories | 1,762,436 | 1,552,103 |
Prepaid expenses and other current assets | (114,762) | (233,792) |
Interest receivable | (65,425) | (56,014) |
Income taxes receivable | (123,877) | |
Income taxes payable | (81,956) | 247,170 |
Accounts payable | (51,808) | (442,850) |
Accrued liabilities | (440,742) | 324,507 |
Deferred revenue | (153,118) | (208,308) |
Net cash (used in) provided by operating activities | (16,558) | 10,616,726 |
Investing activities: | ||
Purchase of equipment and leasehold improvements | (460,960) | (68,242) |
Life insurance premiums paid | (81,744) | (87,994) |
Proceeds from the maturity of treasury securities | 14,331,000 | |
Purchases of treasury securities | (13,985,921) | (16,884,358) |
Net cash used in investing activities | (197,625) | (17,040,594) |
Financing activities: | ||
Proceeds from exercise of stock options | 35,800 | 137,330 |
Net cash provided by financing activities | 35,800 | 137,330 |
Net (decrease) in cash and cash equivalents | (178,383) | (6,286,538) |
Cash and cash equivalents at beginning of period | 3,091,062 | 9,208,170 |
Cash and cash equivalents at end of period | 2,912,679 | 2,921,632 |
Supplemental cash flow information: | ||
Cash paid for income taxes | $ 128,463 | $ 216,759 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Paid in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Jun. 30, 2022 | 9,147,795 | |||
Balance at Jun. 30, 2022 | $ 45,739 | $ 12,653,402 | $ 10,327,899 | $ 23,027,040 |
Net income (loss) | 8,579,052 | 8,579,052 | ||
Stock-based compensation expense | 243,688 | 243,688 | ||
Stock option exercises (in shares) | 69,000 | |||
Stock option exercises | $ 345 | 136,985 | 137,330 | |
Balance (in shares) at Mar. 31, 2023 | 9,216,795 | |||
Balance at Mar. 31, 2023 | $ 46,084 | 13,034,075 | 18,906,951 | 31,987,110 |
Balance (in shares) at Dec. 31, 2022 | 9,189,795 | |||
Balance at Dec. 31, 2022 | $ 45,949 | 12,908,840 | 19,131,431 | 32,086,220 |
Net income (loss) | (224,480) | (224,480) | ||
Stock-based compensation expense | 76,980 | 76,980 | ||
Stock option exercises (in shares) | 27,000 | |||
Stock option exercises | $ 135 | 48,255 | 48,390 | |
Balance (in shares) at Mar. 31, 2023 | 9,216,795 | |||
Balance at Mar. 31, 2023 | $ 46,084 | 13,034,075 | 18,906,951 | $ 31,987,110 |
Balance (in shares) at Jun. 30, 2023 | 9,234,795 | 9,234,795 | ||
Balance at Jun. 30, 2023 | $ 46,174 | 13,113,993 | 18,647,111 | $ 31,807,278 |
Net income (loss) | (840,542) | (840,542) | ||
Stock-based compensation expense | 119,937 | 119,937 | ||
Stock option exercises (in shares) | 20,000 | |||
Stock option exercises | $ 100 | 35,700 | $ 35,800 | |
Balance (in shares) at Mar. 31, 2024 | 9,254,795 | 9,254,795 | ||
Balance at Mar. 31, 2024 | $ 46,274 | 13,269,630 | 17,806,569 | $ 31,122,473 |
Balance (in shares) at Dec. 31, 2023 | 9,254,795 | |||
Balance at Dec. 31, 2023 | $ 46,274 | 13,233,733 | 18,120,349 | 31,400,356 |
Net income (loss) | (313,780) | (313,780) | ||
Stock-based compensation expense | 35,897 | $ 35,897 | ||
Balance (in shares) at Mar. 31, 2024 | 9,254,795 | 9,254,795 | ||
Balance at Mar. 31, 2024 | $ 46,274 | $ 13,269,630 | $ 17,806,569 | $ 31,122,473 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A) BASIS OF PRESENTATION The condensed consolidated balance sheets as of March 31, 2024 and June 30, 2023, the condensed consolidated statements of operations for the three and nine months ended March 31, 2024 and 2023, the condensed consolidated statements of cash flows for the nine months ended March 31, 2024 and 2023, and the condensed consolidated statements of stockholders' equity for the three and nine months ended March 31, 2024 and 2023, have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and have not been audited. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made. The operating results for any interim period are not necessarily indicative of the operating results that may be experienced for the full fiscal year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. 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 , 2023. The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. Significant estimates and assumptions are used for, but are not limited to, allowances for credit losses, reserves for excess and obsolete inventories, long-lived and intangible assets, income tax valuation allowance , stock-based compensation and deferred compensation. Actual results could differ from the Company's estimates. B) REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS During the second quarter of fiscal year 2024, the Company learned that due to misinterpretation of the required tax treatment for certain disqualifying dispositions of Incentive Stock Options (ISO), the Company improperly withheld amounts for Social Security and Medicare (“FICA”) taxes on the taxable gains resulting from those dispositions and remitted such amounts to the Internal Revenue Service (“IRS”). Thus, for such disqualifying dispositions of ISOs beginning in fiscal year 2021, certain employees are owed a refund from the Company for the overpayment of the FICA taxes, with a similar refund due to the Company from the IRS for the employer portion of the taxes which were also remitted to the IRS and expensed by the Company. The Company intends to reimburse the over withheld taxes to the impacted employees and to file amended 941-X forms with the IRS to claim a refund for both the Company overpayment of FICA taxes as well as the amounts refunded to employees. As of March 31, 2024 the over withheld taxes due to the impacted employees was $ 354,971 and is recorded in accrued liabilities on the condensed consolidated balance sheet as of that date. The refund expected from the IRS is $ 722,498 and is included in prepaid expenses and other current assets on the condensed consolidated balance sheet at March 31, 2024. Based on an analysis of Accounting Standards Codification ASC 250 – “Accounting Changes and Error Corrections” (“ASC 250”), Staff Accounting Bulletin 99 – “Materiality” and Staff Accounting Bulletin 108 – “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements”, the Company determined that these errors did not result in the previously issued consolidated financial statements being materially misstated, and as such no restatement was necessary. The following tables present the effect of the revision on the condensed consolidated balance sheet as of June 30, 2023, the condensed consolidated statements of operations for the three and nine months ended March 31, 2023, and the condensed consolidated statement of cash flows for the nine months ended March 31, 2023. As of June 30, 2023 As Previously Reported Revision As Revised Condensed consolidated balance sheet: Prepaid expenses and other current assets 284,622 717,892 1,002,514 Total current assets 28,380,967 717,892 29,098,859 Total assets 38,370,805 717,892 39,088,697 Accrued liabilities 970,530 371,509 1,342,039 Total current liabilities 2,011,817 371,509 2,383,326 Total liabilities 6,909,910 371,509 7,281,419 Retained earnings 18,300,728 346,383 18,647,111 Total stockholders' equity 31,460,895 346,383 31,807,278 Three Months Ended March 31, 2023 Nine Months Ended March 31, 2023 As Previously Reported Revision As Revised As Previously Reported Revision As Revised Condensed consolidated statements of operations: Selling, general and administrative expenses 1,757,714 ( 8,373 ) 1,749,341 27,921,287 ( 14,041 ) 27,907,246 (Loss) from operations ( 453,356 ) 8,373 ( 444,983 ) ( 24,285,543 ) 14,041 ( 24,271,502 ) (Loss) income before income tax provision ( 263,763 ) 8,373 ( 255,390 ) 9,028,939 14,041 9,042,980 Net (loss) income ( 232,853 ) 8,373 ( 224,480 ) 8,565,011 14,041 8,579,052 (Loss) income per common share: Basic ( 0.03 ) ( 0.02 ) 0.93 0.93 Diluted ( 0.03 ) ( 0.02 ) 0.87 0.88 Nine Months Ended March 31, 2023 As Previously Reported Revision As Revised Condensed consolidated statement of cash flows: Net income 8,565,011 14,041 8,579,052 Prepaid expenses and other current assets ( 205,710 ) ( 28,082 ) ( 233,792 ) Accrued liabilities 310,466 14,041 324,507 Net cash provided by operating activities 10,616,726 ( 0 ) 10,616,726 The effect of this revision on the opening balances within the Company's condensed consolidated statements of stockholders' equity for the three and nine months ended March 31, 2024 and 2023 was as follows: As Previously Reported Revision As Revised Retained earnings, June 30, 2022 9,998,348 329,551 10,327,899 Total stockholders' equity, June 30, 2022 22,697,489 329,551 23,027,040 Retained earnings, December 31, 2022 18,796,212 335,219 19,131,431 Total stockholders' equity, December 31, 2022 31,751,001 335,219 32,086,220 Retained earnings, June 30, 2023 18,300,728 346,383 18,647,111 Total stockholders' equity, June 30, 2023 31,460,895 346,383 31,807,278 The Company's condensed consolidated statements of stockholders' equity for the three and nine months ended March 31, 2023 have also been revised to reflect the impacts to net (loss) income as presented above. C) INVESTMENTS Debt securities are classified as held-to-maturity as the Company has the positive intent and ability to hold them to maturity. The securities are carried at amortized cost as current or noncurrent based upon maturity date and unrealized gains and losses are recognized when realized. The amortized cost of debt securities is adjusted for amortization of premium and accretion of discounts to maturity. Such amortization or accretion is included in interest income, along with other interest on cash and cash equivalents. D) FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction between market participants at the measurement date. A three-tier hierarchy prioritizes the inputs used in measuring fair value. These tiers include Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted market prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. The asset's or liability's fair value measurement within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s U.S. treasury debt securities are recorded at amortized cost with fair value disclosure. They have a readily available market price (Level 1 input), thus a lesser degree of judgment needs to be used in measuring fair value, and fair value was determined by quoted market prices. E) INCOME TAXES We estimate a provision for income taxes based on the effective tax rate expected to be applicable for the fiscal year. If the actual results are different from these estimates, adjustments to the effective tax rate may be required in the period such determination is made. Additionally, discrete items are treated separately from the effective rate analysis and are recorded separately as an income tax provision or benefit at the time they are recognized. During the three and nine months ended March 31, 2024, a state income tax provision of $ 1,522 and $ 5,281 was recorded for the minimum tax payments expected given the taxable net losses in those periods. During the three and nine months ended March 31, 2024, a federal tax benefit of $ 82,653 was recorded as a result of the return-to-provision (RTP) adjustments recorded in the period identified. The adjustments were identified when the prior year tax returns were filed in the third quarter of fiscal year 2024. For the nine months ended March 31, 2023, as a result of additional income generated by licensing fees, offset by related legal fees and expenses, taxable income for the period was generated. For NOLs arising in tax years beginning after December 31, 2017, the Tax Cuts and Jobs Act (“TCJA”) limits the NOL deduction to 80 percent of taxable income. As such, the utilization of the Company’s net operating loss carryforwards from fiscal years after 2018 is limited to 80 percent of the resulting taxable income. Utilization of net operating loss carryforwards significantly reduced the taxable income for the nine-month period ended March 31, 2023, resulting in federal and state tax provisions of $ 374,714 and $ 89,214 , respectively. For the three months ended March 31, 2023, a state income tax benefit of $ 30,910 was recorded mainly as a result of an update to state apportionment percentages. No federal tax benefit or provision was recorded for that quarter. The effective tax rate was less than 1 %, excluding the RTP adjustments, for the nine months ended March 31, 2024 and 5.1 % for the nine months ended March 31, 2023. It is anticipated that the effective rate in the current year and future years will continue to be reduced by utilization of a portion or all of the federal and state net operating loss carryforwards that existed as of June 30, 2023. The Company's taxable loss generated during the first nine months of fiscal year 2024 increased the tax loss carryforward as of March 31, 2024 to approximately $ 32,800,000 . Given the taxable loss for the nine-month period, the expectation for utilization of the estimated tax loss carryforward is lessened, and as such, the future realization of this continues to be uncertain. The valuation allowance was adjusted to continue to fully offset the net deferred tax asset as there is sufficient negative evidence to support a full valuation allowance. Temporary differences which give rise to deferred income tax assets and liabilities at March 31, 2024 and June 30, 2023 include: March 31, 2024 June 30, 2023 Deferred income tax assets: Deferred compensation $ 516,932 $ 491,608 Stock-based compensation 77,530 117,607 Accrued expenses and reserves 524,892 571,719 Deferred revenue 100,973 138,665 Federal and state net operating loss carryforwards 8,456,728 8,216,671 IRC Section 174 research and development costs 113,521 63,855 Credit carryforwards 188,893 169,552 Equipment and leasehold improvements 130,637 136,294 Lease liability 684,670 744,431 Valuation allowance ( 10,093,269 ) ( 9,906,018 ) Total deferred income tax assets 701,507 744,384 Deferred income tax liabilities: ROU asset ( 680,737 ) ( 742,386 ) Other ( 20,770 ) ( 1,998 ) Total deferred income tax liabilities ( 701,507 ) ( 744,384 ) Net deferred income tax assets $ - $ - F) LEGAL COSTS All legal costs related to litigation for which the Company is liable, are charged to operations as incurred, except contingent legal fees as described below. Proceeds from the settlement of disputes are recorded in other income when the amounts are determinable, and collection is certain. Related license proceeds are considered functional and as such are recorded at a point in time, based on the underlying agreement. Related contingent legal fees and expenses are recorded in selling, general and administrative expense at that time. The contingent legal fee expenses could have a material effect on the results of operations, however, timing and impact is uncertain and is dependent on the resolution of related litigation. G) OTHER INCOME No other income was received in the three and nine months ended March 31, 2024. In the three and nine months ending March 31, 2023, the Company received licensing proceeds of $ 0 and $ 33,000,000 , respectively, which was recorded as other income. Other income is shown as a separate line on the condensed consolidated statements of operations. H) DEFERRED COMPENSATION The Company’s deferred compensation liability is for a current officer and is calculated based on years of service and compensation, along with various assumptions related to expected retirement date, discount rates, 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 condensed consolidated statements of operations. The deferred compensation liability recorded at March 31, 2024 and June 30, 2023 is $ 2,110,507 and $ 1,997,120 , respectively. The increase in the deferred compensation liability for the current officer, and thus the compensation expense recorded during the nine months ended March 31, 2024, was due mainly to the annual increase in the future payments under the arrangement. Compensation expense recorded under this arrangement was $ 113,387 for the first three quarters of the current fiscal year. Deferred compensation expense of $ 62,783 was recognized in the nine months ended March 31, 2023. I) RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Effective July 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including trade receivables and held-to-maturity debt securities. Financial assets measured at amortized cost are presented at the net amount expected to be collected by using an allowance for credit losses. The standard’s main goal is to improve financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets, including accounts receivable. The Company adopted ASU 2016-13 effective July 1, 2023 using the modified retrospective approach for all financial assets measured at amortized cost. Allowance for Credit Losses – Accounts Receivable: The allowance for credit losses is deducted from the cost basis of the receivable to present the net amount expected to be collected on the accounts. The Company measures expected credit losses for accounts receivable using the aging method whereby expected credit losses are determined on the basis of how long a receivable has been outstanding. Historical loss data is utilized to estimate expected losses as the risk characteristics of the customer base and the Company’s credit practices have not changed significantly over time. The estimates are then adjusted for current conditions, such as level of inflation and the potential change in credit availability given rising interest rates, as well as supportable and reasonable forecasts indicating whether these conditions will continue into the future or new ones will arise that need to be considered. Upon evaluation of the impact of this ASU, the Company concluded that minimal reserves were necessary as historical losses were immaterial, and, based on the qualitative and quantitative analysis performed in accordance with Topic 326 requirements, the Company determined there was no reasonable expectation of significant credit losses associated with the Company’s accounts receivable in the foreseeable future. Allowance for Credit Losses - Held-to Maturity Debt Securities: The Company did no t record an allowance for credit losses on held-to-maturity U.S. Treasury securities as these securities have the following characteristics that support a zero loss expectation: they are explicitly guaranteed by the U.S. government, are consistently highly rated by major rating agencies and have a long history of no credit losses. The adoption of ASU 2016-13 did not have a material impact on the Company’s condensed consolidated financial statements. Results for reporting periods beginning after July 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards (“Incurred Loss”). Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not have, or are not expected by management to have a material impact on the Company’s present or future consolidated financial statements . |
Investments
Investments | 9 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Investments | 2. INVESTMENTS The following tables summarize the unrealized positions for the held-to-maturity debt securities as of March 31, 2024 and June 30, 2023: March 31, 2024 Amortized cost basis Gross unrealized gains Gross unrealized losses Fair Value US Treasury securities $ 17,032,899 $ — $ ( 49,886 ) $ 16,983,013 Total $ 17,032,899 $ — $ ( 49,886 ) $ 16,983,013 June 30, 2023 Amortized cost basis Gross unrealized gains Gross unrealized losses Fair Value US Treasury securities $ 17,064,274 $ — $ ( 93,740 ) $ 16,970,534 Total $ 17,064,274 $ — $ ( 93,740 ) $ 16,970,534 The following tables summarize the fair value and amortized cost basis of the held-to-maturity debt securities by contractual maturity as of March 31, 2024 and June 30, 2023: March 31, 2024 Amortized Cost Basis Fair value Due within one year $ 7,020,288 $ 7,007,734 Due after one year through five years 10,012,611 9,975,279 Total $ 17,032,899 $ 16,983,013 June 30, 2023 Amortized Cost Basis Fair value Due within one year $ 17,064,274 $ 16,970,534 Total $ 17,064,274 $ 16,970,534 |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2024 | |
Inventories [Abstract] | |
Inventories | 3. INVENTORIES The components of inventories were as follows: March 31, 2024 June 30, 2023 Raw materials $ 2,011,332 $ 2,071,360 Finished goods 4,519,572 6,178,186 Inventories, gross 6,530,904 8,249,546 Reserve for obsolete inventory ( 1,869,899 ) ( 1,826,105 ) Inventories, net $ 4,661,005 $ 6,423,441 |
Credit Facility
Credit Facility | 9 Months Ended |
Mar. 31, 2024 | |
Credit Facility [Abstract] | |
Credit Facility | 4. CREDIT FACILITY On May 14, 2019, the Company entered into a secured credit facility (“Credit Agreement”) with Town Bank (“Lender”). The Credit Agreement provides for a $ 5,000,000 revolving secured credit facility for letters of credit for the benefit of the Company of up to a sublimit of $ 1,000,000 . There are no unused line fees in the credit facility. On January 28, 2021, the Credit Agreement was amended to extend the expiration to October 31, 2022, and to change the interest rate to Wall Street Journal Prime less 1.50 %. A Third Amendment to the Credit Agreement effective October 30, 2022 extends the maturity date to October 31, 2024. The Company and the Lender also entered into a General Business Security Agreement dated May 14, 2019 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 Credit Agreement contains certain affirmative and negative covenants customary for financings of this type. The negative covenants include restrictions on other indebtedness, liens, fundamental changes, certain investments, disposition of assets, mergers and liquidations, among other restrictions. As of March 31, 2024, the Company was in compliance with all covenants related to the Credit Agreement. As of March 31, 2024 and June 30, 2023, there were no outstanding borrowings on the facility. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 5. REVENUE RECOGNITION The Company disaggregates its net sales by geographical location as it believes it best depicts how the nature, timing and uncertainty of net sales and cash flows are affected by economic factors. The following table summarizes net sales by geographical location: Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 United States $ 2,055,551 $ 2,728,824 $ 7,326,220 $ 7,620,067 Export 582,055 652,016 2,045,448 2,406,234 Net Sales $ 2,637,606 $ 3,380,840 $ 9,371,668 $ 10,026,301 Deferred revenue relates primarily to consumer and customer warranties. These constitute future performance obligations, and the Company defers revenue related to these future performance obligations. Effective July 1, 2023, the Company increased its deferral rates from 2.4 % to 3 % for domestic sales and decreased its deferral rate from 10 % to 8 % for export sales to reflect recent warranty experience. In the nine months ended March 31, 2024 and 2023, the Company recognized revenue, which was included in the deferred revenue liability at the beginning of the periods of $ 264,251 and $ 284,584 , respectively, for performance obligations related to consumer and customer warranties. The Company estimates that the deferred revenue performance obligations are satisfied within one year to three years and therefore uses that same timeframe for recognition of the deferred revenue. |
(Loss) Income per Common and Co
(Loss) Income per Common and Common Stock Equivalent Share | 9 Months Ended |
Mar. 31, 2024 | |
(Loss) Income per Common and Common Stock Equivalent Share [Abstract] | |
(Loss) Income per Common and Common Stock Equivalent Share | 6. (LOSS) INCOME PER COMMON AND COMMON STOCK EQUIVALENT SHARE Basic (loss) income per common share is computed based on the weighted-average number of common shares outstanding. Diluted (loss) income per common share is calculated assuming the exercise of stock options except where the result would be anti-dilutive. The following table reconciles the numerator and denominator used to calculate basic and diluted (loss) income per share: Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Numerator Net (loss) income $ ( 313,780 ) $ ( 224,480 ) $ ( 840,542 ) $ 8,579,052 Denominator Weighted average shares, basic 9,254,795 9,206,135 9,243,559 9,183,042 Dilutive effect of stock compensation awards (1) — — — 608,585 Diluted shares 9,254,795 9,206,135 9,243,559 9,791,627 Net (loss) income attributable to common shareholders per share: Basic $ ( 0.03 ) $ ( 0.02 ) $ ( 0.09 ) $ 0.93 Diluted $ ( 0.03 ) $ ( 0.02 ) $ ( 0.09 ) $ 0.88 (1) Excludes 700,911 , 729,384 , and 999,557 weighted average stock options during the three and nine months ended March 31, 2024 and the three months ended March 31, 2023, respectively, as the impact of such awards was anti-dilutive. For the nine months ended March 31, 2023, no stock options were anti-dilutive. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. RELATED PARTY TRANSACTIONS The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is controlled by five equal ownership interests in trusts held by the five beneficiaries of a former chairman’s revocable trust and includes current stockholders of the Company. On May 24, 2022, the lease was renewed for a period of five years , ending June 30, 2028, 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 an increased rate of $ 397,000 for an additional five years ending June 30, 2033. The negotiated increase in rent slated for 2028 will be the first increase in rent since 1996. The Company is responsible for all property maintenance, insurance, taxes and other normal expenses related to ownership. During the nine months ended March 31, 2023, the Company accrued and made charitable contributions of $ 79,000 to the Koss Foundation (the “Foundation”), a 501(c)(3) charitable organization for which Michael J. Koss and John C. Koss Jr., executive officers of the Company, serve as officers. Neither officer receives fees or compensation from the Foundation for holding these positions. There were no charitable contributions made to the Foundation during the three and nine months ended March 31, 2024. |
Accounts Receivable Concentrati
Accounts Receivable Concentrations | 9 Months Ended |
Mar. 31, 2024 | |
Accounts Receivable Concentrations [Abstract] | |
Accounts Receivable Concentrations | 8. ACCOUNTS RECEIVABLE CONCENTRATIONS As of March 31, 2024, the Company’s top three accounts receivable customers represented approximately 25 %, 12 % and 10 % of trade accounts receivable. The top three accounts receivable customers as of June 30, 2023 represented approximately 24 %, 14 % and 13 %. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Mar. 31, 2024 | |
Employee Stock Ownership Plan [Abstract] | |
Employee Stock Ownership Plan | 9. EMPLOYEE STOCK OWNERSHIP PLAN The Company amended and restated its Koss Employee Stock Ownership Trust (“KESOT”) effective July 1, 2023 and received approval from the Board of Directors on July 26, 2023. Substantially all domestic employees are participants in the KESOT under which an annual contribution in either cash or common stock may be made at the discretion of the Board of Directors. All contributions to date have been fully allocated to employees’ company contribution accounts. No contributions were made for the three or nine months ended March 31, 2024 or 2023, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Mar. 31, 2024 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 10 . STOCK-BASED COMPENSATION In 2023, pursuant to the recommendation of the Board of Directors, the shareholders approved the creation of the Koss Corporation 2023 Equity Incentive Plan (the “2023 Plan”). Concurrently with the adoption of the new plan, the Koss Corporation 2012 Omnibus Incentive Plan (the “2012 Plan”) was terminated. The Compensation Committee of the Board of Directors administers the 2023 Plan and provides for the granting of various stock-based incentive awards to eligible participants, primarily officers and certain key employees of the Company. 2,000,000 shares of common stock were authorized for issuance under the 2023 Plan, plus any shares subject to awards remaining outstanding under the 2012 Plan that expired or are otherwise forfeited, canceled, or terminated. The Company’s Board of Directors will determine the terms and conditions under which an option will become exercisable but expects that stock options granted under the 2023 Plan will vest over a three -to- five -year period from the date of grant. An option will expire no more than ten years from its grant date, with the exception of incentive stock options held by a 10% stockholder, which will expire no more than five years from the grant date. As with the 2012 Plan, pursuant to the 2023 Plan new shares will be issued upon exercise of stock options. As of March 31, 2024, no new stock-based awards have been granted under the 2023 Plan. |
Legal Matters
Legal Matters | 9 Months Ended |
Mar. 31, 2024 | |
Legal Matters [Abstract] | |
Legal Matters | 11. LEGAL MATTERS As of March 31, 2024, the Company is involved in the matters described below: • The Company maintains a program focused on enforcing its intellectual property and, in particular, certain patents in its patent portfolio. As part of this program, the Company filed complaints against certain parties alleging infringement on the Company’s patents relating to its wireless audio technology. In the event that a monetary award or judgment is received by the Company in connection with these complaints, all or portions of such amounts, such as contingent legal fees, will be due to third parties. The Company may incur additional fees and costs related to these lawsuits, however, timing and impact on its condensed financial statements is uncertain. Depending on the response to and the underlying results of the enforcement program, the Company may continue to litigate its claims, enter into licensing arrangements or reach some other outcome potentially advantageous to its competitive position. During the nine months ended March 31, 2023, in connection with its intellectual property enforcement program, the Company granted a license covering certain of its patents and recognized gross proceeds of $ 33,000,000 , which was recorded as other income. Total legal fees and related expenses of $ 22,141,408 in the nine months ended March 31, 2023, respectively, offset these proceeds and were recorded as selling, general and administrative expense. • The Company was notified by One-E-Way, Inc. that some of the Company's wireless products may infringe on certain One-E-Way patents. No lawsuits involving these allegations have yet been filed and served on the Company. The Company is currently investigating whether these allegations have any merit. Depending on the results of the investigation and the defense of these allegations, the ultimate resolution of this matter may have a material effect on the Company's condensed consolidated financial statements. The Company estimates that this matter will ultimately be resolved at a cost of approximately $ 41,000 and has accrued this amount as of March 31, 2024 and June 30, 2023. The ultimate resolution of these matters is not determinable unless otherwise noted. The Company is also subject to a variety of other claims and suits that arise from time to time in the ordinary course of its business. Although management currently believes that resolving these claims against the Company, individually or in the aggregate, will not have a material adverse impact on its condensed consolidated financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | A) BASIS OF PRESENTATION The condensed consolidated balance sheets as of March 31, 2024 and June 30, 2023, the condensed consolidated statements of operations for the three and nine months ended March 31, 2024 and 2023, the condensed consolidated statements of cash flows for the nine months ended March 31, 2024 and 2023, and the condensed consolidated statements of stockholders' equity for the three and nine months ended March 31, 2024 and 2023, have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and have not been audited. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made. The operating results for any interim period are not necessarily indicative of the operating results that may be experienced for the full fiscal year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. 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 , 2023. The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. Significant estimates and assumptions are used for, but are not limited to, allowances for credit losses, reserves for excess and obsolete inventories, long-lived and intangible assets, income tax valuation allowance , stock-based compensation and deferred compensation. Actual results could differ from the Company's estimates. |
Investments | C) INVESTMENTS Debt securities are classified as held-to-maturity as the Company has the positive intent and ability to hold them to maturity. The securities are carried at amortized cost as current or noncurrent based upon maturity date and unrealized gains and losses are recognized when realized. The amortized cost of debt securities is adjusted for amortization of premium and accretion of discounts to maturity. Such amortization or accretion is included in interest income, along with other interest on cash and cash equivalents. |
Fair Value Measurements | D) FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction between market participants at the measurement date. A three-tier hierarchy prioritizes the inputs used in measuring fair value. These tiers include Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted market prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. The asset's or liability's fair value measurement within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s U.S. treasury debt securities are recorded at amortized cost with fair value disclosure. They have a readily available market price (Level 1 input), thus a lesser degree of judgment needs to be used in measuring fair value, and fair value was determined by quoted market prices. |
Income Taxes | E) INCOME TAXES We estimate a provision for income taxes based on the effective tax rate expected to be applicable for the fiscal year. If the actual results are different from these estimates, adjustments to the effective tax rate may be required in the period such determination is made. Additionally, discrete items are treated separately from the effective rate analysis and are recorded separately as an income tax provision or benefit at the time they are recognized. During the three and nine months ended March 31, 2024, a state income tax provision of $ 1,522 and $ 5,281 was recorded for the minimum tax payments expected given the taxable net losses in those periods. During the three and nine months ended March 31, 2024, a federal tax benefit of $ 82,653 was recorded as a result of the return-to-provision (RTP) adjustments recorded in the period identified. The adjustments were identified when the prior year tax returns were filed in the third quarter of fiscal year 2024. For the nine months ended March 31, 2023, as a result of additional income generated by licensing fees, offset by related legal fees and expenses, taxable income for the period was generated. For NOLs arising in tax years beginning after December 31, 2017, the Tax Cuts and Jobs Act (“TCJA”) limits the NOL deduction to 80 percent of taxable income. As such, the utilization of the Company’s net operating loss carryforwards from fiscal years after 2018 is limited to 80 percent of the resulting taxable income. Utilization of net operating loss carryforwards significantly reduced the taxable income for the nine-month period ended March 31, 2023, resulting in federal and state tax provisions of $ 374,714 and $ 89,214 , respectively. For the three months ended March 31, 2023, a state income tax benefit of $ 30,910 was recorded mainly as a result of an update to state apportionment percentages. No federal tax benefit or provision was recorded for that quarter. The effective tax rate was less than 1 %, excluding the RTP adjustments, for the nine months ended March 31, 2024 and 5.1 % for the nine months ended March 31, 2023. It is anticipated that the effective rate in the current year and future years will continue to be reduced by utilization of a portion or all of the federal and state net operating loss carryforwards that existed as of June 30, 2023. The Company's taxable loss generated during the first nine months of fiscal year 2024 increased the tax loss carryforward as of March 31, 2024 to approximately $ 32,800,000 . Given the taxable loss for the nine-month period, the expectation for utilization of the estimated tax loss carryforward is lessened, and as such, the future realization of this continues to be uncertain. The valuation allowance was adjusted to continue to fully offset the net deferred tax asset as there is sufficient negative evidence to support a full valuation allowance. Temporary differences which give rise to deferred income tax assets and liabilities at March 31, 2024 and June 30, 2023 include: March 31, 2024 June 30, 2023 Deferred income tax assets: Deferred compensation $ 516,932 $ 491,608 Stock-based compensation 77,530 117,607 Accrued expenses and reserves 524,892 571,719 Deferred revenue 100,973 138,665 Federal and state net operating loss carryforwards 8,456,728 8,216,671 IRC Section 174 research and development costs 113,521 63,855 Credit carryforwards 188,893 169,552 Equipment and leasehold improvements 130,637 136,294 Lease liability 684,670 744,431 Valuation allowance ( 10,093,269 ) ( 9,906,018 ) Total deferred income tax assets 701,507 744,384 Deferred income tax liabilities: ROU asset ( 680,737 ) ( 742,386 ) Other ( 20,770 ) ( 1,998 ) Total deferred income tax liabilities ( 701,507 ) ( 744,384 ) Net deferred income tax assets $ - $ - |
Legal Costs | F) LEGAL COSTS All legal costs related to litigation for which the Company is liable, are charged to operations as incurred, except contingent legal fees as described below. Proceeds from the settlement of disputes are recorded in other income when the amounts are determinable, and collection is certain. Related license proceeds are considered functional and as such are recorded at a point in time, based on the underlying agreement. Related contingent legal fees and expenses are recorded in selling, general and administrative expense at that time. The contingent legal fee expenses could have a material effect on the results of operations, however, timing and impact is uncertain and is dependent on the resolution of related litigation. |
Other Income | G) OTHER INCOME No other income was received in the three and nine months ended March 31, 2024. In the three and nine months ending March 31, 2023, the Company received licensing proceeds of $ 0 and $ 33,000,000 , respectively, which was recorded as other income. Other income is shown as a separate line on the condensed consolidated statements of operations. |
Deferred Compensation | H) DEFERRED COMPENSATION The Company’s deferred compensation liability is for a current officer and is calculated based on years of service and compensation, along with various assumptions related to expected retirement date, discount rates, 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 condensed consolidated statements of operations. The deferred compensation liability recorded at March 31, 2024 and June 30, 2023 is $ 2,110,507 and $ 1,997,120 , respectively. The increase in the deferred compensation liability for the current officer, and thus the compensation expense recorded during the nine months ended March 31, 2024, was due mainly to the annual increase in the future payments under the arrangement. Compensation expense recorded under this arrangement was $ 113,387 for the first three quarters of the current fiscal year. Deferred compensation expense of $ 62,783 was recognized in the nine months ended March 31, 2023. |
Recently Adopted Accounting Pronouncements | I) RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Effective July 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including trade receivables and held-to-maturity debt securities. Financial assets measured at amortized cost are presented at the net amount expected to be collected by using an allowance for credit losses. The standard’s main goal is to improve financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets, including accounts receivable. The Company adopted ASU 2016-13 effective July 1, 2023 using the modified retrospective approach for all financial assets measured at amortized cost. Allowance for Credit Losses – Accounts Receivable: The allowance for credit losses is deducted from the cost basis of the receivable to present the net amount expected to be collected on the accounts. The Company measures expected credit losses for accounts receivable using the aging method whereby expected credit losses are determined on the basis of how long a receivable has been outstanding. Historical loss data is utilized to estimate expected losses as the risk characteristics of the customer base and the Company’s credit practices have not changed significantly over time. The estimates are then adjusted for current conditions, such as level of inflation and the potential change in credit availability given rising interest rates, as well as supportable and reasonable forecasts indicating whether these conditions will continue into the future or new ones will arise that need to be considered. Upon evaluation of the impact of this ASU, the Company concluded that minimal reserves were necessary as historical losses were immaterial, and, based on the qualitative and quantitative analysis performed in accordance with Topic 326 requirements, the Company determined there was no reasonable expectation of significant credit losses associated with the Company’s accounts receivable in the foreseeable future. Allowance for Credit Losses - Held-to Maturity Debt Securities: The Company did no t record an allowance for credit losses on held-to-maturity U.S. Treasury securities as these securities have the following characteristics that support a zero loss expectation: they are explicitly guaranteed by the U.S. government, are consistently highly rated by major rating agencies and have a long history of no credit losses. The adoption of ASU 2016-13 did not have a material impact on the Company’s condensed consolidated financial statements. Results for reporting periods beginning after July 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards (“Incurred Loss”). Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not have, or are not expected by management to have a material impact on the Company’s present or future consolidated financial statements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Effect of Revision of Financial Statements | The following tables present the effect of the revision on the condensed consolidated balance sheet as of June 30, 2023, the condensed consolidated statements of operations for the three and nine months ended March 31, 2023, and the condensed consolidated statement of cash flows for the nine months ended March 31, 2023. As of June 30, 2023 As Previously Reported Revision As Revised Condensed consolidated balance sheet: Prepaid expenses and other current assets 284,622 717,892 1,002,514 Total current assets 28,380,967 717,892 29,098,859 Total assets 38,370,805 717,892 39,088,697 Accrued liabilities 970,530 371,509 1,342,039 Total current liabilities 2,011,817 371,509 2,383,326 Total liabilities 6,909,910 371,509 7,281,419 Retained earnings 18,300,728 346,383 18,647,111 Total stockholders' equity 31,460,895 346,383 31,807,278 Three Months Ended March 31, 2023 Nine Months Ended March 31, 2023 As Previously Reported Revision As Revised As Previously Reported Revision As Revised Condensed consolidated statements of operations: Selling, general and administrative expenses 1,757,714 ( 8,373 ) 1,749,341 27,921,287 ( 14,041 ) 27,907,246 (Loss) from operations ( 453,356 ) 8,373 ( 444,983 ) ( 24,285,543 ) 14,041 ( 24,271,502 ) (Loss) income before income tax provision ( 263,763 ) 8,373 ( 255,390 ) 9,028,939 14,041 9,042,980 Net (loss) income ( 232,853 ) 8,373 ( 224,480 ) 8,565,011 14,041 8,579,052 (Loss) income per common share: Basic ( 0.03 ) ( 0.02 ) 0.93 0.93 Diluted ( 0.03 ) ( 0.02 ) 0.87 0.88 Nine Months Ended March 31, 2023 As Previously Reported Revision As Revised Condensed consolidated statement of cash flows: Net income 8,565,011 14,041 8,579,052 Prepaid expenses and other current assets ( 205,710 ) ( 28,082 ) ( 233,792 ) Accrued liabilities 310,466 14,041 324,507 Net cash provided by operating activities 10,616,726 ( 0 ) 10,616,726 The effect of this revision on the opening balances within the Company's condensed consolidated statements of stockholders' equity for the three and nine months ended March 31, 2024 and 2023 was as follows: As Previously Reported Revision As Revised Retained earnings, June 30, 2022 9,998,348 329,551 10,327,899 Total stockholders' equity, June 30, 2022 22,697,489 329,551 23,027,040 Retained earnings, December 31, 2022 18,796,212 335,219 19,131,431 Total stockholders' equity, December 31, 2022 31,751,001 335,219 32,086,220 Retained earnings, June 30, 2023 18,300,728 346,383 18,647,111 Total stockholders' equity, June 30, 2023 31,460,895 346,383 31,807,278 |
Schedule of Deferred Tax Assets and Liabilities | March 31, 2024 June 30, 2023 Deferred income tax assets: Deferred compensation $ 516,932 $ 491,608 Stock-based compensation 77,530 117,607 Accrued expenses and reserves 524,892 571,719 Deferred revenue 100,973 138,665 Federal and state net operating loss carryforwards 8,456,728 8,216,671 IRC Section 174 research and development costs 113,521 63,855 Credit carryforwards 188,893 169,552 Equipment and leasehold improvements 130,637 136,294 Lease liability 684,670 744,431 Valuation allowance ( 10,093,269 ) ( 9,906,018 ) Total deferred income tax assets 701,507 744,384 Deferred income tax liabilities: ROU asset ( 680,737 ) ( 742,386 ) Other ( 20,770 ) ( 1,998 ) Total deferred income tax liabilities ( 701,507 ) ( 744,384 ) Net deferred income tax assets $ - $ - |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Summary of Unrealized Positions for Held-to-Maturity Debt Securities | March 31, 2024 Amortized cost basis Gross unrealized gains Gross unrealized losses Fair Value US Treasury securities $ 17,032,899 $ — $ ( 49,886 ) $ 16,983,013 Total $ 17,032,899 $ — $ ( 49,886 ) $ 16,983,013 June 30, 2023 Amortized cost basis Gross unrealized gains Gross unrealized losses Fair Value US Treasury securities $ 17,064,274 $ — $ ( 93,740 ) $ 16,970,534 Total $ 17,064,274 $ — $ ( 93,740 ) $ 16,970,534 |
Summary of Held-to-Maturity Debt Securities by Contractual Maturity | March 31, 2024 Amortized Cost Basis Fair value Due within one year $ 7,020,288 $ 7,007,734 Due after one year through five years 10,012,611 9,975,279 Total $ 17,032,899 $ 16,983,013 June 30, 2023 Amortized Cost Basis Fair value Due within one year $ 17,064,274 $ 16,970,534 Total $ 17,064,274 $ 16,970,534 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Inventories [Abstract] | |
Components of Inventories | March 31, 2024 June 30, 2023 Raw materials $ 2,011,332 $ 2,071,360 Finished goods 4,519,572 6,178,186 Inventories, gross 6,530,904 8,249,546 Reserve for obsolete inventory ( 1,869,899 ) ( 1,826,105 ) Inventories, net $ 4,661,005 $ 6,423,441 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 United States $ 2,055,551 $ 2,728,824 $ 7,326,220 $ 7,620,067 Export 582,055 652,016 2,045,448 2,406,234 Net Sales $ 2,637,606 $ 3,380,840 $ 9,371,668 $ 10,026,301 |
(Loss) Income per Common and _2
(Loss) Income per Common and Common Stock Equivalent Share (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
(Loss) Income per Common and Common Stock Equivalent Share [Abstract] | |
Reconciliation of Numerator and Denominator Used to Calculate Basic and Diluted (Loss) Income per Share | Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Numerator Net (loss) income $ ( 313,780 ) $ ( 224,480 ) $ ( 840,542 ) $ 8,579,052 Denominator Weighted average shares, basic 9,254,795 9,206,135 9,243,559 9,183,042 Dilutive effect of stock compensation awards (1) — — — 608,585 Diluted shares 9,254,795 9,206,135 9,243,559 9,791,627 Net (loss) income attributable to common shareholders per share: Basic $ ( 0.03 ) $ ( 0.02 ) $ ( 0.09 ) $ 0.93 Diluted $ ( 0.03 ) $ ( 0.02 ) $ ( 0.09 ) $ 0.88 (1) Excludes 700,911 , 729,384 , and 999,557 weighted average stock options during the three and nine months ended March 31, 2024 and the three months ended March 31, 2023, respectively, as the impact of such awards was anti-dilutive. For the nine months ended March 31, 2023, no stock options were anti-dilutive. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Accounting Policies Disclosure [Line Items] | |||||
Accrued liabilities | $ 901,297 | $ 901,297 | $ 1,342,039 | ||
Prepaid expenses and other current assets | 1,117,276 | 1,117,276 | 1,002,514 | ||
Income tax provision (benefit) | (81,130) | $ (30,910) | (77,372) | $ 463,928 | |
Effective tax rate | 5.10% | ||||
Other income | 0 | 0 | $ 33,000,000 | ||
Licensing proceeds | 0 | 33,000,000 | |||
Tax loss carryforward | 32,800,000 | 32,800,000 | |||
Allowance for credit losses, held-to-maturity debt securities | 0 | $ 0 | |||
Maximum [Member] | |||||
Accounting Policies Disclosure [Line Items] | |||||
Effective tax rate | 1% | ||||
Over Withheld Taxes [Member] | |||||
Accounting Policies Disclosure [Line Items] | |||||
Accrued liabilities | 354,971 | $ 354,971 | |||
Prepaid expenses and other current assets | 722,498 | 722,498 | |||
Federal [Member] | |||||
Accounting Policies Disclosure [Line Items] | |||||
Income tax provision (benefit) | (82,653) | 0 | (82,653) | 374,714 | |
State and Local Jurisdiction [Member] | |||||
Accounting Policies Disclosure [Line Items] | |||||
Income tax provision (benefit) | 1,522 | $ (30,910) | 5,281 | 89,214 | |
Current Officer [Member] | |||||
Accounting Policies Disclosure [Line Items] | |||||
Deferred compensation liability | $ 2,110,507 | 2,110,507 | $ 1,997,120 | ||
Deferred compensation expense (income) | $ 113,387 | $ 62,783 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Effect of Revision of Condensed Consolidated Balance Sheet) (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Current assets: | ||||||
Prepaid expenses and other current assets | $ 1,117,276 | $ 1,002,514 | ||||
Total current assets | 17,235,656 | 29,098,859 | ||||
Total assets | 37,604,868 | 39,088,697 | ||||
Current liabilities: | ||||||
Accrued liabilities | 901,297 | 1,342,039 | ||||
Total current liabilities | 1,651,648 | 2,383,326 | ||||
Long-term liabilities: | ||||||
Total liabilities | 6,482,395 | 7,281,419 | ||||
Stockholders' equity: | ||||||
Retained earnings | 17,806,569 | 18,647,111 | $ 19,131,431 | $ 10,327,899 | ||
Total stockholders' equity | $ 31,122,473 | $ 31,400,356 | 31,807,278 | $ 31,987,110 | 32,086,220 | 23,027,040 |
As Previously Reported [Member] | ||||||
Current assets: | ||||||
Prepaid expenses and other current assets | 284,622 | |||||
Total current assets | 28,380,967 | |||||
Total assets | 38,370,805 | |||||
Current liabilities: | ||||||
Accrued liabilities | 970,530 | |||||
Total current liabilities | 2,011,817 | |||||
Long-term liabilities: | ||||||
Total liabilities | 6,909,910 | |||||
Stockholders' equity: | ||||||
Retained earnings | 18,300,728 | 18,796,212 | 9,998,348 | |||
Total stockholders' equity | 31,460,895 | 31,751,001 | 22,697,489 | |||
Revision [Member] | ||||||
Current assets: | ||||||
Prepaid expenses and other current assets | 717,892 | |||||
Total current assets | 717,892 | |||||
Total assets | 717,892 | |||||
Current liabilities: | ||||||
Accrued liabilities | 371,509 | |||||
Total current liabilities | 371,509 | |||||
Long-term liabilities: | ||||||
Total liabilities | 371,509 | |||||
Stockholders' equity: | ||||||
Retained earnings | 346,383 | 335,219 | 329,551 | |||
Total stockholders' equity | $ 346,383 | $ 335,219 | $ 329,551 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Effect of Revision of Consolidated Statements Of Operations) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Accounting Policies Disclosure [Line Items] | ||||
Selling, general and administrative expenses | $ 1,451,247 | $ 1,749,341 | $ 4,572,049 | $ 27,907,246 |
(Loss) from operations | (609,724) | (444,983) | (1,554,396) | (24,271,502) |
(Loss) income before income tax provision | (394,910) | (255,390) | (917,914) | 9,042,980 |
Net (loss) income | $ (313,780) | $ (224,480) | $ (840,542) | $ 8,579,052 |
(Loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.09) | $ 0.93 |
Diluted (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.09) | $ 0.88 |
As Previously Reported [Member] | ||||
Accounting Policies Disclosure [Line Items] | ||||
Selling, general and administrative expenses | $ 1,757,714 | $ 27,921,287 | ||
(Loss) from operations | (453,356) | (24,285,543) | ||
(Loss) income before income tax provision | (263,763) | 9,028,939 | ||
Net (loss) income | $ (232,853) | $ 8,565,011 | ||
(Loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.03) | $ 0.93 | ||
Diluted (in dollars per share) | $ (0.03) | $ 0.87 | ||
Revision [Member] | ||||
Accounting Policies Disclosure [Line Items] | ||||
Selling, general and administrative expenses | $ (8,373) | $ (14,041) | ||
(Loss) from operations | 8,373 | 14,041 | ||
(Loss) income before income tax provision | 8,373 | 14,041 | ||
Net (loss) income | $ 8,373 | $ 14,041 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Effect of Revision of Condensed Consolidated Statement Of Cash Flows) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities: | ||||
Net (loss) income | $ (313,780) | $ (224,480) | $ (840,542) | $ 8,579,052 |
Net changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | (114,762) | (233,792) | ||
Accrued liabilities | (440,742) | 324,507 | ||
Net cash provided by operating activities | $ (16,558) | 10,616,726 | ||
As Previously Reported [Member] | ||||
Operating activities: | ||||
Net (loss) income | (232,853) | 8,565,011 | ||
Net changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | (205,710) | |||
Accrued liabilities | 310,466 | |||
Net cash provided by operating activities | 10,616,726 | |||
Revision [Member] | ||||
Operating activities: | ||||
Net (loss) income | $ 8,373 | 14,041 | ||
Net changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | (28,082) | |||
Accrued liabilities | 14,041 | |||
Net cash provided by operating activities | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Effect of Revision of Consolidated Statements of Changes in Stockholders Equity) (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Stockholders' equity: | ||||||
Retained earnings | $ 17,806,569 | $ 18,647,111 | $ 19,131,431 | $ 10,327,899 | ||
Total stockholders' equity | $ 31,122,473 | $ 31,400,356 | 31,807,278 | $ 31,987,110 | 32,086,220 | 23,027,040 |
As Previously Reported [Member] | ||||||
Stockholders' equity: | ||||||
Retained earnings | 18,300,728 | 18,796,212 | 9,998,348 | |||
Total stockholders' equity | 31,460,895 | 31,751,001 | 22,697,489 | |||
Revision [Member] | ||||||
Stockholders' equity: | ||||||
Retained earnings | 346,383 | 335,219 | 329,551 | |||
Total stockholders' equity | $ 346,383 | $ 335,219 | $ 329,551 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Summary of Significant Accounting Policies [Abstract] | ||
Deferred compensation | $ 516,932 | $ 491,608 |
Stock-based compensation | 77,530 | 117,607 |
Accrued expenses and reserves | 524,892 | 571,719 |
Deferred revenue | 100,973 | 138,665 |
Federal and state net operating loss carryforwards | 8,456,728 | 8,216,671 |
IRC Section 174 research and development costs | 113,521 | 63,855 |
Credit carryforwards | 188,893 | 169,552 |
Equipment and leasehold improvements | 130,637 | 136,294 |
Lease liability | 684,670 | 744,431 |
Valuation allowance | (10,093,269) | (9,906,018) |
Total deferred income tax assets | 701,507 | 744,384 |
ROU asset | (680,737) | (742,386) |
Other | (20,770) | (1,998) |
Total deferred income tax liabilities | (701,507) | (744,384) |
Net deferred income tax assets |
Investments (Summary of Unreali
Investments (Summary of Unrealized Positions for Held-to-Maturity Debt Securities) (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized cost basis | $ 17,032,899 | $ 17,064,274 |
Gross unrealized losses | (49,886) | (93,740) |
Fair Value | 16,983,013 | 16,970,534 |
US Treasury Securities [Member] | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized cost basis | 17,032,899 | 17,064,274 |
Gross unrealized losses | (49,886) | (93,740) |
Fair Value | $ 16,983,013 | $ 16,970,534 |
Investments (Summary of Held-to
Investments (Summary of Held-to-Maturity Debt Securities by Contractual Maturity) (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Amortized cost basis | ||
Due within one year | $ 7,020,288 | $ 17,064,274 |
Due after one year through five years | 10,012,611 | |
Amortized cost basis | 17,032,899 | 17,064,274 |
Fair Value | ||
Due within one year | 7,007,734 | 16,970,534 |
Due after one year through five years | 9,975,279 | |
Fair Value | $ 16,983,013 | $ 16,970,534 |
Inventories (Components of Inve
Inventories (Components of Inventories) (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Inventories [Abstract] | ||
Raw materials | $ 2,011,332 | $ 2,071,360 |
Finished goods | 4,519,572 | 6,178,186 |
Inventories, gross | 6,530,904 | 8,249,546 |
Reserve for obsolete inventory | (1,869,899) | (1,826,105) |
Inventories, net | $ 4,661,005 | $ 6,423,441 |
Credit Facility (Narrative) (De
Credit Facility (Narrative) (Details) - Town Bank [Member] - Credit Agreement [Member] - USD ($) | 9 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2023 | |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 5,000,000 | |
Maximum borrowing capacity per letter of credit | $ 1,000,000 | |
Unused line fees | 0% | |
Spread on variable interest rate | 1.50% | |
Outstanding borrowings | $ 0 | $ 0 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | $ 264,251 | $ 284,584 | |
Domestic sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation, percentage | 3% | 2.40% | |
Export sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation, percentage | 8% | 10% | |
Minimum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract with customer liability remaining performance obligation expected timing of satisfaction period | 1 year | ||
Maximum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract with customer liability remaining performance obligation expected timing of satisfaction period | 3 years |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 2,637,606 | $ 3,380,840 | $ 9,371,668 | $ 10,026,301 |
United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 2,055,551 | 2,728,824 | 7,326,220 | 7,620,067 |
Export [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 582,055 | $ 652,016 | $ 2,045,448 | $ 2,406,234 |
(Loss) Income per Common and _3
(Loss) Income per Common and Common Stock Equivalent Share (Reconciliation of Numerator and Denominator Used to Calculate Basic and Diluted (Loss) Income per Share) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
(Loss) Income per Common and Common Stock Equivalent Share [Abstract] | ||||
Net (loss) income | $ (313,780) | $ (224,480) | $ (840,542) | $ 8,579,052 |
Weighted average shares, basic (in shares) | 9,254,795 | 9,206,135 | 9,243,559 | 9,183,042 |
Dilutive effect of stock compensation awards (in shares) | 608,585 | |||
Diluted shares (in shares) | 9,254,795 | 9,206,135 | 9,243,559 | 9,791,627 |
Basic (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.09) | $ 0.93 |
Diluted (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.09) | $ 0.88 |
Anti-dilutive shares | 700,911 | 999,557 | 729,384 | 0 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Lease renewal term | 5 years | 5 years | |
Lease Extension Per Year | $ 380,000 | ||
Related party transaction amount | $ 0 | $ 0 | $ 79,000 |
Additional Renewal [Member] | |||
Related Party Transaction [Line Items] | |||
Lease renewal term | 5 years | 5 years | |
Lease Extension Per Year | $ 397,000 |
Accounts Receivable Concentra_2
Accounts Receivable Concentrations (Narrative) (Details) - Accounts Receivable [Member] - customer | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Jun. 30, 2023 | |
Concentration Risk [Line Items] | ||
Number of major customers | 3 | 3 |
Customer Concentration Risk [Member] | Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 25% | 24% |
Customer Concentration Risk [Member] | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 12% | 14% |
Customer Concentration Risk [Member] | Customer Three [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10% | 13% |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Koss Employee Stock Ownership Trust [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Contributions | $ 0 | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - 2023 Plan [Member] | 9 Months Ended |
Mar. 31, 2024 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant | 2,000,000 |
Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 10 years |
Minimum [Member] | Three to Five Years [Member] | Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Maximum [Member] | Three to Five Years [Member] | Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 5 years |
10% Stockholder [Member] | Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 5 years |
Legal Matters (Narrative) (Deta
Legal Matters (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | Jun. 30, 2023 | |
Legal Matters [Abstract] | ||||
Licensing proceeds | $ 0 | $ 33,000,000 | ||
Legal fees and related expenses | $ 22,141,408 | |||
Estimate of loss | $ 41,000 | $ 41,000 |