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KOSS CORPORATION NEWS RELEASE 4129 NORTH PORT WASHINGTON AVENUE , MILWAUKEE , WI 53212414 964-5000 / www.KOSS.COM FOR IMMEDIATE RELEASE January 28 , 2021 CONTACT : Michael J. Koss Chairman & CEO ( 414 ) 964-5000 mjkoss@koss.com Koss Corp. Releases Second Quarter Results Milwaukee , Wisconsin : Koss Corporation ( NASDAQ SYMBOL : KOSS ) , the U.S. based high - fidelity headphone company , has reported its second quarter results for the quarter ended December 31 , 2020 . Sales for the second quarter were $ 4,929,789 , which is an 18.4 % increase from sales of $ 4,162,659 for the same three month period one year ago . The three month net income was $ 508,890 , compared to a net loss of $ 215,713 for the second quarter last year . Diluted and basic income per common share for the quarter was $ 0.07 compared to a loss per common share of $ 0.03 for the same three month period one year ago . Sales for the six months ended December 31 , 2020 , increased 5.9 % from $ 9,573,421 in the same period last year to $ 10,138,084 in the current year . The six month net income was $ 635,819 compared to a net loss of $ 526,462 for the same period last year . Diluted and basic income per common share was $ 0.09 for the six months ended December 31 , 2020 compared to a loss per common share of $ 0.07 for the same six month period one year ago . " The increase in net sales for the quarter and first six months has been across several markets with US distributors , European distributors and domestic direct to consumer sales leading the way , " Michael J. Koss , Chairman and CEO , said today . " We continue to see sales driven by people studying and working from home . Sales through domestic retail were down for the quarter and year - to- date periods . " " The shift in sales by market drove more favorable gross margin with it increasing from 28.3 % last year to 32.1 % in the first six months , " Koss explained . " The PPP loan for $ 506,700 through the SBA was forgiven in the current quarter and recorded as other income . " Koss Corporation markets a complete line of high - fidelity headphones , wireless Bluetooth® speakers , computer headsets , telecommunications headsets , active noise canceling headphones , wireless headphones , and compact disc recordings of American Symphony Orchestras on the Koss Classics® label . This press release contains forward - looking statements . These statements relate to future events or our future financial performance . In some cases , you can identify forward - looking statements by terminology such as " anticipates , " " believes , " " estimates , " " expects , " " intends , " " plans , " " may , " " will , " " should , " " forecasts , " " predicts , " " potential , " " continue , " or the negative of such terms and other comparable terminology . These statements are based on currently available operating , financial and competitive information and are subject to various risks and uncertainties . Actual events or results may differ materially . In evaluating forward - looking statements , you should specifically consider various factors that may cause actual results to vary from those contained in the forward - looking statements , such as general economic conditions , in particular , consumer demand for the Company's and its customers ' products , competitive and technological developments , foreign currency fluctuations , and costs of operations . Shareholders , potential investors and other readers are urged to consider these factors carefully in evaluating the forward - looking statements and are cautioned not to place undue reliance on such forward - looking statements . The forward - looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward - looking statements to reflect subsequent events or circumstances or new information . In addition , such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission . 1