SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2025

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

18.    SEGMENT INFORMATION

The Company has a single reportable segment, the design, manufacture and sale of headphones and related accessories, which reflects the manner in which the Company’s Chief Executive Officer, who is the Company’s CODM, regularly reviews financial information to manage the business, allocate resources and assess performance. The headphones are sold through retailers and distributors both domestically and internationally, as well as direct-to-consumer.

The CODM regularly reviews revenue, certain significant expense categories, net income and select balance sheet items in evaluating segment performance. The significant segment expense categories and other segment items provided to the CODM and included in the measure of segment profit or loss are presented below.

Years Ended June 30,	2025		2024
Net sales	$	12,624,170	$	12,265,069
Cost of goods sold		7,850,572		8,079,622
Gross profit margin		37.8%		34.1%
Selling, general and administrative expenses:
New product certification and compliance testing		226,719		22,036
Legal and professional expense		999,359		940,090
Deferred compensation expense		133,330		96,004
Other selling, general and administrative expenses		5,151,313		4,999,476
Selling, general and administrative expenses		6,510,721		6,057,606
Net loss		(874,831)		(950,911)

Segment net loss includes interest income and income taxes.

The CODM also reviews the following balance sheet items at period-end as part of performance monitoring and resource allocation decisions:

As of June 30,	2025		2024
Cash and cash equivalents	$	2,807,797	$	2,837,081
Short term investments		12,879,882		12,104,459
Long term investments		4,000,774		4,994,327
Inventories		4,885,067		4,473,680
Total segment assets		37,184,609		37,199,479

The Company applied the provisions of ASU 2023-07 retrospectively and has included comparative information for the year ended June 30, 2024. Because the Company operates as a single reportable segment, the amounts above reconcile directly to the corresponding consolidated financial statement line items. There was no impact on previously reported consolidated net income, financial position or cash flows.