Page 1

KOSS CORPORATION 4129 NORTH PORT WASHINGTON AVENUE , MILWAUKEE , WI 53212 414 964-5000 / www.KOSS.COM FOR IMMEDIATE RELEASE May 12 , 2021 NEWS RELEASE CONTACT : Michael J. Koss Chairman & CEO ( 414 ) 964-5000 mjkoss@koss.com Koss Corp. Releases Third Quarter Results Milwaukee , Wisconsin : Koss Corporation ( NASDAQ SYMBOL : KOSS ) , the U.S. based high - fidelity headphone company , has reported its third quarter results for the quarter ended March 31 , 2021 . Sales for the third quarter were $ 3,987,452 , which is a 16.7 % decrease from sales of $ 4,789,441 for the same three month period one year ago . The three month net loss was $ 474,168 , compared to a net loss of $ 97,373 for the third quarter last year . Diluted and basic loss per common share for the quarter was $ 0.06 compared to a loss per common share of $ 0.01 for the same three month period one year ago . Sales for the nine months ended March 31 , 2021 , decreased 1.7 % to $ 14,125,537 compared to $ 14,362,862 in the same period last year . The nine month net income was $ 161,651 compared to a net loss of $ 623,835 for the same period last year . Diluted and basic income per common share was $ 0.02 for the nine months ended March 31 , 2021 compared to a loss per common share of $ 0.08 for the same nine month period one year ago . " Net sales in the first nine months had a different composition than last year . We saw a shift to US distributors , European distributors and domestic direct to consumer sales and a sharp decline in US mass retail , " Michael J. Koss , Chairman and CEO , said today . " The business has shifted away from a concentration in mass market retailers to more consumer direct , specialty and distributor based channels . The net decline in the quarter's sales revenue can largely be attributed to the sporadic service disruptions of freight carriers . " " Gross margins are improving with the shift in sales , " Koss explained . " Domestic mass mart retailers typically yield lower gross margins than the other channels . The net loss in the quarter included some unusual non - recurring items that increased administrative costs . " 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