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KOSS CORPORATION 4129 NORTH PORT WASHINGTON AVENUE , MILWAUKEE , WI 53212414 964-5000 / www.KOSS.COM FOR IMMEDIATE RELEASE October 28 , 2021 NEWS RELEASE CONTACT : Michael J. Koss Chairman & CEO ( 414 ) 964-5000 mjkoss@koss.com Koss Q1 Net Sales Dip and Supply Chain Woes Continue Milwaukee , Wisconsin : Koss Corporation ( NASDAQ SYMBOL : KOSS ) , the U.S. based high - fidelity headphone company , has reported its results for the first quarter ended September 30 , 2021 . Sales for the first quarter were $ 4,365,067 , which is a 16.2 % decrease from sales of $ 5,208,295 for the same three month period one year ago . The three month net loss was $ 99,359 , compared to net income of $ 126,928 for the first quarter last year . Basic loss per common share for the quarter was $ 0.01 compared to basic income per common share of $ 0.02 for the three month period one year ago . Diluted income per common share for the quarter was $ 0.01 compared to diluted income per common share of $ 0.02 for the three month period one year ago . " The loss of placement at US mass retail caused the decline in sales as we shift to a model more based on distribution and online sales , " Michael J. Koss Chairman and CEO said today . " Improvements in European distribution offset some softness in certain US based distributors . The online business has continued to grow . " Koss reiterated concerns about recent increased freight rates and delays . " The increased cost of freight as well as the extended time in transit has become a major source of concern . Although the freight costs had an immaterial impact on the first quarter results , the shipping delays resulted in backorders that should be fulfilled in the next fiscal quarter . " 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