KOSS CORP Revenue Disclosure
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:
|
|
|
|
|
|
| 2025 |
| 2024 | ||
United States | $ | 8,968,799 |
| $ | 9,795,438 |
Export |
| 3,655,371 |
|
| 2,469,631 |
Net Sales | $ | 12,624,170 |
| $ | 12,265,069 |
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. The Company recognized revenue, which was included in the deferred revenue liability at the beginning of the periods, of $230,192 and $308,851 in the years ended June 30, 2025 and 2024, respectively, for performance obligations related to consumer and customer warranties. The deferred revenue liability was $422,303 as of June 30, 2023. The Company estimates that the deferred revenue performance obligations are satisfied within 1 to 3 years and therefore uses the same time frame for recognition of the deferred revenue.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 29, 2025 | Showing above |
| 2024 | Aug 30, 2024 | |
| 2023 | Aug 25, 2023 | |
| 2022 | Aug 26, 2022 | |
| 2021 | Aug 20, 2021 | |
| 2020 | Aug 27, 2020 | |
| 2019 | Aug 30, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.