Koss (KOSS) 10-Q 31 Oct 24 2025 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2024	Oct. 28, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2025
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		9,350,795
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000056701
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Current assets:
Cash and cash equivalents	$ 2,750,732	$ 2,837,081
Short term investments	9,142,324	12,104,459
Accounts receivable, less allowance for credit losses of $1,922 at September 30, 2024 and June 30, 2024	1,388,610	1,208,319
Inventories	4,735,110	4,473,680
Prepaid expenses and other current assets	1,161,533	1,081,437
Interest receivable	114,615	170,429
Income taxes receivable	44,285	41,756
Total current assets	19,337,209	21,917,161
Equipment and leasehold improvements, net	1,527,451	1,223,391
Other assets:
Long term investments	7,997,286	4,994,327
Operating lease right-of-use asset	2,704,778	2,765,445
Cash surrender value of life insurance	6,535,023	6,299,155
Total other assets	17,237,087	14,058,927
Total assets	38,101,747	37,199,479
Current liabilities:
Accounts payable	731,694	329,829
Accrued liabilities	1,113,106	462,858
Deferred revenue	249,032	229,384
Operating lease liability	242,848	239,688
Income taxes payable	28,225	35,899
Total current liabilities	2,364,905	1,297,658
Long-term liabilities:
Deferred compensation	2,290,498	2,093,124
Deferred revenue	119,745	119,787
Operating lease liability	2,479,824	2,541,734
Total long-term liabilities	4,890,067	4,754,645
Total liabilities	7,254,972	6,052,303
Stockholders' equity:
Common stock, $0.005 par value, authorized 20,000,000 shares; issued and outstanding 9,350,795 at September 30, 2024 and 9,299,795 at June 30, 2024, respectively	46,754	46,499
Paid in capital	13,523,356	13,404,477
Retained earnings	17,276,665	17,696,200
Total stockholders' equity	30,846,775	31,147,176
Total liabilities and stockholders' equity	$ 38,101,747	$ 37,199,479

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Condensed Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 1,922	$ 1,922
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)	9,350,795	9,299,795
Common stock, shares outstanding (in shares)	9,350,795	9,299,795

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statements of Income [Abstract]
Net sales	$ 3,201,868	$ 3,373,938
Cost of goods sold	2,028,942	2,306,248
Gross profit	1,172,926	1,067,690
Selling, general and administrative expenses	1,810,059	1,536,279
Loss from operations	(637,133)	(468,589)
Interest income	220,358	212,859
Loss before income tax provision	(416,775)	(255,730)
Income tax provision	2,760	1,879
Net loss	$ (419,535)	$ (257,609)
Loss per common share:
Basic (in dollars per share)	$ (0.05)	$ (0.03)
Diluted (in dollars per share)	$ (0.05)	$ (0.03)
Weighted-average number of shares:
Basic (in shares)	9,310,002	9,234,795
Diluted (in shares)	9,310,002	9,234,795

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating activities:
Net loss	$ (419,535)	$ (257,609)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Recovery of credit losses		(4,105)
Depreciation of equipment and leasehold improvements	53,133	45,614
Accretion of discount on treasury securities	(75,821)	(120,305)
Noncash operating lease expense	1,917	1,917
Stock-based compensation expense	14,264	46,792
Change in cash surrender value of life insurance	(165,291)	(149,057)
Provision (benefit) for deferred compensation	197,374	(59,935)
Net changes in operating assets and liabilities:
Accounts receivable	(180,291)	52,498
Inventories	(261,430)	644,569
Prepaid expenses and other current assets	(80,096)	(178,041)
Interest receivable	55,814	(5,243)
Income taxes receivable	(2,529)	(40,462)
Income taxes payable	(7,674)	(85,358)
Accounts payable	401,865	(38,968)
Accrued liabilities	650,248	(542,689)
Deferred revenue	19,606	(22,865)
Net cash provided by (used in) operating activities	201,554	(713,247)
Investing activities:
Purchase of equipment and leasehold improvements	(357,193)	(312,718)
Life insurance premiums paid	(70,577)	(81,744)
Proceeds from the maturity of treasury securities	5,034,000	2,000,000
Purchases of treasury securities	(4,999,003)	(1,999,074)
Net cash used in investing activities	(392,773)	(393,536)
Financing activities:
Proceeds from exercise of stock options	104,870
Net cash provided by financing activities	104,870
Net (decrease) in cash and cash equivalents	(86,349)	(1,106,783)
Cash and cash equivalents at beginning of period	2,837,081	3,091,062
Cash and cash equivalents at end of period	2,750,732	1,984,279
Supplemental cash flow information:
Cash paid for income taxes	$ 12,963	$ 127,700

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, 2023	9,234,795
Balance at Jun. 30, 2023	$ 46,174	$ 13,113,993	$ 18,647,111	$ 31,807,278
Net loss			(257,609)	(257,609)
Stock-based compensation expense		46,792		46,792
Balance (in shares) at Sep. 30, 2023	9,234,795
Balance at Sep. 30, 2023	$ 46,174	13,160,785	18,389,502	$ 31,596,461
Balance (in shares) at Jun. 30, 2024	9,299,795			9,299,795
Balance at Jun. 30, 2024	$ 46,499	13,404,477	17,696,200	$ 31,147,176
Net loss			(419,535)	(419,535)
Stock-based compensation expense		14,264		14,264
Stock option exercises (in shares)	51,000
Stock option exercises	$ 255	104,615		$ 104,870
Balance (in shares) at Sep. 30, 2024	9,350,795			9,350,795
Balance at Sep. 30, 2024	$ 46,754	$ 13,523,356	$ 17,276,665	$ 30,846,775

Summary Of Significant Accounti

Summary Of Significant Accounting Policies	3 Months Ended
	Sep. 30, 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 September 30, 2024 and June 30, 2024, the condensed consolidated statements of operations for the three months ended September 30, 2024 and 2023, the condensed consolidated statements of cash flows for the three months ended September 30, 2024 and 2023, and the condensed consolidated statements of stockholders' equity for the three months ended September 30, 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 , 2024. 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 right-of-use assets, income tax valuation allowance , stock-based compensation and deferred compensation. Actual results could differ from the Company's estimates. During the quarter ended September 30, 2024, the Company reclassified certain amounts on its June 30, 2024 balance sheet to enhance clarity and consistency in financial statement reporting. Specifically, short-term deferred revenue liabilities related to estimated volume incentive rebates and sales returns were reclassified to accrued liabilities to reflect that revenue was already recognized on the sales related to these liabilities. To conform with current period presentation, the Company reclassified $ 60,511 to accrued liabilities at June 30, 2024. This reclassification does not affect the total assets, total liabilities, or equity of the Company. B) 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. No allowance for credit losses on held-to-maturity U.S. Treasury securities is recorded 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. See Note 2 for additional information on investments. C) FAIR VALUE MEASUREMENTS Cash equivalents, accounts receivable, and accounts payable approximate fair value based on the short maturity of these instruments. 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. The fair value is based upon quoted market prices and is disclosed in Note 2. D) 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 quarter ended September 30, 2024, a state income tax provision of $ 2,760 was recorded for the required minimum state tax payments plus estimated tax due on the negligible net taxable income after state net operating loss (NOL) deductions. A provision of $ 1,879 was recorded for the quarter ended September 30, 2023 for minimum required tax payments only as there was no taxable income after application of available NOLs. No federal income tax provisions were booked for either of those periods given the availability of federal net operating loss carryforwards to offset taxable income. 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. The future utilization of all federal NOLs available to the Company is limited to 80 percent of the resulting taxable income. The effective tax rate was less than 1 % for each of the three months ended September 30, 2024 and 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, 2024. The Company's anticipated use of $ 14,425 of NOLs to mostly offset the taxable income generated during the first three months of fiscal year 2025 decreased the tax loss carryforward as of September 30, 2024 to approximately $ 32,800,000 . Given the cumulative taxable losses for the last three years, excluding one-time items, the expectation for utilization of the estimated tax loss carryforward is not likely, 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. E) 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 September 30, 2024 and June 30, 2024 is $ 2,290,498 and $ 2,093,124 , respectively. The increase in the deferred compensation liability for the current officer, and thus the compensation expense recorded during the three months ended September 30, 2024, was due mainly to the annual increase in the future payments earned under the arrangement due to an additional year of service completed. Compensation expense recorded under this arrangement was $ 197,374 for the three months ended September 30, 2024 compared to compensation income of $ 59,935 for the three months ended September 30, 2023.

Investments

Investments	3 Months Ended
	Sep. 30, 2024
Investments [Abstract]
Investments	2. INVESTMENTS The following tables summarize the unrealized positions for the held-to-maturity debt securities as of September 30, 2024 and June 30, 2024: September 30, 2024 Amortized cost basis Gross unrealized gains Gross unrealized losses Fair Value US Treasury securities $ 17,139,610 $ 119,626 $ — $ 17,259,236 Total $ 17,139,610 $ 119,626 $ — $ 17,259,236 June 30, 2024 Amortized cost basis Gross unrealized gains Gross unrealized losses Fair Value US Treasury securities $ 17,098,786 $ — $ 56,278 $ 17,042,508 Total $ 17,098,786 $ — $ 56,278 $ 17,042,508 The following tables summarize the fair value and amortized cost basis of the held-to-maturity debt securities by contractual maturity as of September 30, 2024 and June 30, 2024: September 30, 2024 Amortized Cost Basis Fair value Due within one year $ 9,142,324 $ 9,164,943 Due after one year through five years 7,997,286 8,094,293 Total $ 17,139,610 $ 17,259,236 June 30, 2024 Amortized Cost Basis Fair value Due within one year $ 12,104,459 $ 12,075,702 Due after one year through five years 4,994,327 4,966,806 Total $ 17,098,786 $ 17,042,508

Inventories

Inventories	3 Months Ended
	Sep. 30, 2024
Inventories [Abstract]
Inventories	3. INVENTORIES The components of inventories were as follows: September 30, 2024 June 30, 2024 Raw materials $ 2,035,285 $ 1,973,531 Finished goods 4,658,042 4,357,621 Inventories, gross 6,693,327 6,331,152 Reserve for obsolete inventory ( 1,958,217 ) ( 1,857,472 ) Inventories, net $ 4,735,110 $ 4,473,680

Credit Facility

Credit Facility	3 Months Ended
	Sep. 30, 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 extended the maturity date to October 31, 2024. A Fourth Amendment to the Credit Agreement effective October 30, 2024, extends the maturity date to October 31, 2026, and removes one of the covenants requiring submission of annual financial performance projections to the Lender. 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 September 30, 2024, the Company was in compliance with all covenants related to the Credit Agreement. As of September 30, 2024 and June 30, 2024, there were no outstanding borrowings on the facility.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Sep. 30, 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 September 30, 2024 2023 United States $ 2,167,364 $ 2,603,158 Export 1,034,504 770,780 Net Sales $ 3,201,868 $ 3,373,938 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 three months ended September 30, 2024 and 2023, the Company recognized revenue, which was included in the deferred revenue liability at the beginning of those periods of $ 77,103 and $ 107,205 , 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) Per Common And Common St

(Loss) Per Common And Common Stock Equivalent Share	3 Months Ended
	Sep. 30, 2024
(Loss) Per Common And Common Stock Equivalent Share [Abstract]
(Loss) Per Common And Common Stock Equivalent Share	6. (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE Basic loss per common share is computed based on the weighted-average number of common shares outstanding. Diluted loss 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 per share: Three Months Ended September 30, 2024 2023 Numerator Net loss $ ( 419,535 ) $ ( 257,609 ) Denominator Weighted average shares, basic 9,310,002 9,234,795 Dilutive effect of stock compensation awards (1) — — Diluted shares 9,310,002 9,234,795 Net loss attributable to common shareholders per share: Basic $ ( 0.05 ) $ ( 0.03 ) Diluted $ ( 0.05 ) $ ( 0.03 ) (1) Excludes 477,043 and 773,085 weighted average stock options during the three months ended September 30, 2024 and 2023, respectively, as the impact of such awards was anti-dilutive.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Sep. 30, 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.

Accounts Receivable Concentrati

Accounts Receivable Concentrations	3 Months Ended
	Sep. 30, 2024
Accounts Receivable Concentrations [Abstract]
Accounts Receivable Concentrations	8. ACCOUNTS RECEIVABLE CONCENTRATIONS As of September 30, 2024, the Company’s top three accounts receivable customers represented approximately 24 %, 22 % and 15 % of trade accounts receivable. The top three accounts receivable customers as of June 30, 2024, represented approximately 18 %, 15 % and 12 % of trade accounts receivable.

Legal Matters

Legal Matters	3 Months Ended
	Sep. 30, 2024
Legal Matters [Abstract]
Legal Matters	9. LEGAL MATTERS As of September 30, 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. • In early fiscal 2020, 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 September 30, 2024 and June 30, 2024. 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)	3 Months Ended
	Sep. 30, 2024
Summary Of Significant Accounting Policies [Abstract]
Basis of Presentation	A) BASIS OF PRESENTATION The condensed consolidated balance sheets as of September 30, 2024 and June 30, 2024, the condensed consolidated statements of operations for the three months ended September 30, 2024 and 2023, the condensed consolidated statements of cash flows for the three months ended September 30, 2024 and 2023, and the condensed consolidated statements of stockholders' equity for the three months ended September 30, 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 , 2024. 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 right-of-use assets, income tax valuation allowance , stock-based compensation and deferred compensation. Actual results could differ from the Company's estimates. During the quarter ended September 30, 2024, the Company reclassified certain amounts on its June 30, 2024 balance sheet to enhance clarity and consistency in financial statement reporting. Specifically, short-term deferred revenue liabilities related to estimated volume incentive rebates and sales returns were reclassified to accrued liabilities to reflect that revenue was already recognized on the sales related to these liabilities. To conform with current period presentation, the Company reclassified $ 60,511 to accrued liabilities at June 30, 2024. This reclassification does not affect the total assets, total liabilities, or equity of the Company.
Investments	B) 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. No allowance for credit losses on held-to-maturity U.S. Treasury securities is recorded 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. See Note 2 for additional information on investments.
Fair Value Measurements	C) FAIR VALUE MEASUREMENTS Cash equivalents, accounts receivable, and accounts payable approximate fair value based on the short maturity of these instruments. 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. The fair value is based upon quoted market prices and is disclosed in Note 2.
Income Taxes	D) 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 quarter ended September 30, 2024, a state income tax provision of $ 2,760 was recorded for the required minimum state tax payments plus estimated tax due on the negligible net taxable income after state net operating loss (NOL) deductions. A provision of $ 1,879 was recorded for the quarter ended September 30, 2023 for minimum required tax payments only as there was no taxable income after application of available NOLs. No federal income tax provisions were booked for either of those periods given the availability of federal net operating loss carryforwards to offset taxable income. 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. The future utilization of all federal NOLs available to the Company is limited to 80 percent of the resulting taxable income. The effective tax rate was less than 1 % for each of the three months ended September 30, 2024 and 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, 2024. The Company's anticipated use of $ 14,425 of NOLs to mostly offset the taxable income generated during the first three months of fiscal year 2025 decreased the tax loss carryforward as of September 30, 2024 to approximately $ 32,800,000 . Given the cumulative taxable losses for the last three years, excluding one-time items, the expectation for utilization of the estimated tax loss carryforward is not likely, 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.
Deferred Compensation	E) 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 September 30, 2024 and June 30, 2024 is $ 2,290,498 and $ 2,093,124 , respectively. The increase in the deferred compensation liability for the current officer, and thus the compensation expense recorded during the three months ended September 30, 2024, was due mainly to the annual increase in the future payments earned under the arrangement due to an additional year of service completed. Compensation expense recorded under this arrangement was $ 197,374 for the three months ended September 30, 2024 compared to compensation income of $ 59,935 for the three months ended September 30, 2023.

Investments (Tables)

Investments (Tables)	3 Months Ended
	Sep. 30, 2024
Investments [Abstract]
Summary of Unrealized Positions for Held-to-Maturity Debt Securities	September 30, 2024 Amortized cost basis Gross unrealized gains Gross unrealized losses Fair Value US Treasury securities $ 17,139,610 $ 119,626 $ — $ 17,259,236 Total $ 17,139,610 $ 119,626 $ — $ 17,259,236 June 30, 2024 Amortized cost basis Gross unrealized gains Gross unrealized losses Fair Value US Treasury securities $ 17,098,786 $ — $ 56,278 $ 17,042,508 Total $ 17,098,786 $ — $ 56,278 $ 17,042,508
Summary of Held-to-Maturity Debt Securities by Contractual Maturity	September 30, 2024 Amortized Cost Basis Fair value Due within one year $ 9,142,324 $ 9,164,943 Due after one year through five years 7,997,286 8,094,293 Total $ 17,139,610 $ 17,259,236 June 30, 2024 Amortized Cost Basis Fair value Due within one year $ 12,104,459 $ 12,075,702 Due after one year through five years 4,994,327 4,966,806 Total $ 17,098,786 $ 17,042,508

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Sep. 30, 2024
Inventories [Abstract]
Components of Inventories	September 30, 2024 June 30, 2024 Raw materials $ 2,035,285 $ 1,973,531 Finished goods 4,658,042 4,357,621 Inventories, gross 6,693,327 6,331,152 Reserve for obsolete inventory ( 1,958,217 ) ( 1,857,472 ) Inventories, net $ 4,735,110 $ 4,473,680

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Sep. 30, 2024
Revenue Recognition [Abstract]
Disaggregation of Revenue	Three Months Ended September 30, 2024 2023 United States $ 2,167,364 $ 2,603,158 Export 1,034,504 770,780 Net Sales $ 3,201,868 $ 3,373,938

(Loss) Per Common And Common _2

(Loss) Per Common And Common Stock Equivalent Share (Tables)	3 Months Ended
	Sep. 30, 2024
(Loss) Per Common And Common Stock Equivalent Share [Abstract]
Reconciliation of Numerator and Denominator Used to Calculate Basic and Diluted (Loss) per Share	Three Months Ended September 30, 2024 2023 Numerator Net loss $ ( 419,535 ) $ ( 257,609 ) Denominator Weighted average shares, basic 9,310,002 9,234,795 Dilutive effect of stock compensation awards (1) — — Diluted shares 9,310,002 9,234,795 Net loss attributable to common shareholders per share: Basic $ ( 0.05 ) $ ( 0.03 ) Diluted $ ( 0.05 ) $ ( 0.03 ) (1) Excludes 477,043 and 773,085 weighted average stock options during the three months ended September 30, 2024 and 2023, respectively, as the impact of such awards was anti-dilutive.

Summary Of Significant Accoun_3

Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024
Accounting Policies Disclosure [Line Items]
Accrued liabilities	$ 1,113,106		$ 462,858
Deferred revenue	249,032		229,384
Income tax provision (benefit)	2,760	$ 1,879
Net operating loss (NOL) deductions	14,425
Tax loss carryforward	$ 32,800,000
Maximum [Member]
Accounting Policies Disclosure [Line Items]
Effective tax rate	1%	1%
Revision of Prior Period, Reclassification, Adjustment [Member]
Accounting Policies Disclosure [Line Items]
Accrued liabilities			60,511
Deferred revenue			(60,511)
State and Local Jurisdiction [Member]
Accounting Policies Disclosure [Line Items]
Income tax provision (benefit)	$ 2,760	$ 1,879
Current Officer [Member]
Accounting Policies Disclosure [Line Items]
Deferred compensation liability	2,290,498		$ 2,093,124
Deferred compensation expense (income)	$ 197,374	$ 59,935

Investments (Summary of Unreali

Investments (Summary of Unrealized Positions for Held-to-Maturity Debt Securities) (Details) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Schedule of Held-to-Maturity Securities [Line Items]
Amortized cost basis	$ 17,139,610	$ 17,098,786
Gross unrealized gains	119,626
Gross unrealized losses		56,278
Fair Value	17,259,236	17,042,508
US Treasury Securities [Member]
Schedule of Held-to-Maturity Securities [Line Items]
Amortized cost basis	17,139,610	17,098,786
Gross unrealized gains	119,626
Gross unrealized losses		56,278
Fair Value	$ 17,259,236	$ 17,042,508

Investments (Summary of Held-to

Investments (Summary of Held-to-Maturity Debt Securities by Contractual Maturity) (Details) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Amortized cost basis
Due within one year	$ 9,142,324	$ 12,104,459
Due after one year through five years	7,997,286	4,994,327
Amortized cost basis	17,139,610	17,098,786
Fair Value
Due within one year	9,164,943	12,075,702
Due after one year through five years	8,094,293	4,966,806
Fair Value	$ 17,259,236	$ 17,042,508

Inventories (Components of Inve

Inventories (Components of Inventories) (Details) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Inventories [Abstract]
Raw materials	$ 2,035,285	$ 1,973,531
Finished goods	4,658,042	4,357,621
Inventories, gross	6,693,327	6,331,152
Reserve for obsolete inventory	(1,958,217)	(1,857,472)
Inventories, net	$ 4,735,110	$ 4,473,680

Credit Facility (Narrative) (De

Credit Facility (Narrative) (Details) - Town Bank [Member] - Credit Agreement [Member] - USD ($)	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024
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 ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024
Disaggregation of Revenue [Line Items]
Revenue recognized	$ 77,103	$ 107,205
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
	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Net Sales	$ 3,201,868	$ 3,373,938
United States [Member]
Disaggregation of Revenue [Line Items]
Net Sales	2,167,364	2,603,158
Export [Member]
Disaggregation of Revenue [Line Items]
Net Sales	$ 1,034,504	$ 770,780

(Loss) Per Common And Common _3

(Loss) 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
	Sep. 30, 2024	Sep. 30, 2023
(Loss) Per Common And Common Stock Equivalent Share [Abstract]
Net loss	$ (419,535)	$ (257,609)
Weighted average shares, basic (in shares)	9,310,002	9,234,795
Diluted shares (in shares)	9,310,002	9,234,795
Basic (in dollars per share)	$ (0.05)	$ (0.03)
Diluted (in dollars per share)	$ (0.05)	$ (0.03)
Anti-dilutive shares	477,043	773,085

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details)	3 Months Ended
	Sep. 30, 2024 USD ($)
Related Party Transaction [Line Items]
Lease extension per year	$ 380,000
Lease renewal term	5 years
Additional Renewal [Member]
Related Party Transaction [Line Items]
Lease extension per year	$ 397,000
Lease renewal term	5 years

Accounts Receivable Concentra_2

Accounts Receivable Concentrations (Narrative) (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member] - customer	3 Months Ended	12 Months Ended
	Sep. 30, 2024	Jun. 30, 2024
Concentration Risk [Line Items]
Number of major customers	3	3
Customer One [Member]
Concentration Risk [Line Items]
Concentration risk percentage	24%	18%
Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk percentage	22%	15%
Customer Three [Member]
Concentration Risk [Line Items]
Concentration risk percentage	15%	12%

Legal Matters (Narrative) (Deta

Legal Matters (Narrative) (Details) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Legal Matters [Abstract]
Estimate of loss	$ 41,000	$ 41,000