SEGMENT INFORMATION

3 Months Ended

Sep. 30, 2025

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

10.   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 chief operating decision maker (“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.

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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.

Three Months Ended September 30,	2025		2024
Net sales	$	4,070,778	$	3,201,868
Cost of goods sold		2,442,086		2,028,942
Gross profit margin		40.0%		36.6%
Selling, general and administrative expenses:
New product certification and compliance testing		13,032		87,741
Legal and professional expense		229,134		283,891
Deferred compensation expense		160,884		197,374
Other selling, general and administrative expenses		1,271,682		1,241,053
Selling, general and administrative expenses		1,674,732		1,810,059
Net income (loss)		243,729		(419,535)

Segment net income (loss) includes interest income, interest expense 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	September 30, 2025		June 30, 2025
Cash and cash equivalents	$	2,515,913	$	2,807,797
Short term investments		13,942,994		12,879,882
Long term investments		4,000,985		4,000,774
Inventories		4,647,319		4,885,067
Total segment assets		37,663,395		37,184,609

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