Koss Corporation and its subsidiaries engage in the design, manufacture and sale of stereo headphones and related personal listening accessories.
The company’s subsidiaries are Koss Corp B.V. and Koss U.K. Limited. The company operates in the audio/video industry segment of the home entertainment and communication industry through its design, manufacture and sale of stereo headphones and related accessory products.
The company’s products are sold through the U.S. distributors, international di...
Koss Corporation and its subsidiaries engage in the design, manufacture and sale of stereo headphones and related personal listening accessories.
The company’s subsidiaries are Koss Corp B.V. and Koss U.K. Limited. The company operates in the audio/video industry segment of the home entertainment and communication industry through its design, manufacture and sale of stereo headphones and related accessory products.
The company’s products are sold through the U.S. distributors, international distributors, audio specialty stores, the internet, national retailers, grocery stores, electronics retailers, and prisons under the Koss name, as well as private label. The company also sells products to distributors for resale to school systems, and directly to other manufacturers for inclusion with their own products. International markets are served by domestic sales representatives and sales personnel in the Netherlands and the Caucasus region. The company utilizes independent distributors in several foreign countries.
Approximately 77% of the company’s fiscal year 2024 sales were from stereo headphones used for listening to music. The remaining approximately 23% of the company’s sales were from headphones used in communications, education settings, and in conjunction with metal detectors, as well as sold to original equipment manufacturers (OEM). The products are not significantly differentiated by their retail sales channel or application with the exception of products sold to school systems, prisons, and OEM customers.
The company sources complete stereo headphones manufactured to its specifications from various manufacturers in Asia, as well as raw materials used to produce stereo headphones at its plant in Milwaukee, Wisconsin.
Intellectual Property
The company regularly applies for registration of its trademarks in many countries around the world, and over the years the company has had numerous trademarks registered and patents issued in North America, South America, Asia, Europe, Africa, and Australia. As of June 30, 2024, the company had over 400 trademarks registered in approximately 91 countries around the world and over 160 patents in approximately 25 countries. The company has trademarks to protect the brand name, Koss, and its logo on its products.
Seasonality
Although retail sales of consumer electronics have historically been higher during the holiday season, sales of stereo headphones have smoothed throughout the year. The company’s business is not seasonal as evidenced by the fact that the company’s net sales for the last three years, including the year ended June 30, 2024, were fairly evenly dispersed throughout the year. The reason for this level performance of sales to retailers and distributors is related to the fact that consumers are increasingly purchasing stereo headphones throughout the year as replacements for older or lower quality headphones to improve the quality of their listening experience as it relates to portable electronic products. Therefore, upgrades and replacements appear to have as much interest over the course of the year as gifts of stereo headphones during the holiday season.
Customers
The company markets a line of products used by consumers to listen to music, to work and study from home, to communicate via telephone or internet, and to listen to other audio-related media. The company distributes these products through distributors and retail channels in the U.S. and independent distributors throughout the rest of the world. Additionally, the company fills direct-to-consumer (DTC) orders on its website. The company markets its products through many domestic retail outlets and numerous retailers worldwide. The company also markets products directly to several OEMs for use in their products. In the year ended June 30, 2024, the company’s largest sales concentration was represented by its own DTC offerings via the Amazon portal and were approximately 17% of net sales in fiscal year 2024 respectively. The company’s products have broad distribution worldwide across many channels including distributors, specialty stores, mass merchants, and electronics stores. The company is dependent upon its ability to retain a base of retailers and distributors to sell the company’s line of products. The company’s five largest customers accounted for approximately 46% of net sales in 2024.
Research and Development
The amount expensed on engineering and research activities relating to the development of new products or the improvement of existing products was $238,086 during year ended June 30, 2024.
Foreign Sales
The company has sales personnel located in the Netherlands and the Caucasus region to service the international export marketplace. The company sells its products to independent distributors in countries and regions outside the United States, including Europe, the Middle East, Africa, Asia, Australia, South America, Latin America, the Caribbean, Canada and Mexico.
History
Koss Corporation was founded in 1953. The company was incorporated in Delaware in 1971.
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