36 unchanged sentences
The Company considers protecting its intellectual property rights to be central to its business model and competitive position in the stereo headphone industry.
−Removed: Although retail sales of consumer electronics have historically been higher during the holiday season, sales of stereo headphones have smoothed throughout the year.
+Added: Although retail sales of consumer electronics have historically been higher during the holiday season, sales of stereo headphones are generally smooth throughout the year.
Management believes that the Company’s business is not seasonal as evidenced by the fact that the Company’s net sales for the last three years, including the year ended June 30, 2025, were fairly evenly dispersed throughout the year.
8 unchanged sentences
and independent distributors throughout the rest of the world.
−Removed: Additionally, the Company fills direct-to-consumer (“DTC”) orders on its website.
+Added: Additionally, the Company fills direct-to-consumer (“DTC”) orders on its website and via online marketplaces.
The Company markets its products through many domestic retail outlets and numerous retailers worldwide.
The Company also markets products directly to several OEMs for use in their products.
−Removed: In the years ended June 30, 2024 and 2023, the Company’s largest sales concentration was represented by its own DTC offerings via the Amazon portal and were approximately 17% and 20% of net sales in fiscal years 2024 and 2023, respectively.
+Added: In the fiscal years ended June 30, 2025 and 2024, the Company’s largest sales concentration was represented by its own DTC offerings via the Amazon portal and were approximately 19% and 17% of net sales in fiscal years 2025 and 2024, respectively.
The Company’s products have broad distribution worldwide across many channels including distributors, specialty stores, mass merchants, and electronics stores.
7 unchanged sentences
RESEARCH AND DEVELOPMENT
−Removed: The amount expensed on engineering and research activities relating to the development of new products or the improvement of existing products was $238,086 during fiscal year 2024.
−Removed: These activities were conducted by both Company personnel and outside consultants.
−Removed: There was $288,231 in expenses for research and development activities during fiscal year 2023.
+Added: The Company’s research and development activities are conducted by both Company personnel and outside consultants.
The Company expects to incur on-going research and development costs related to its Bluetooth® and traditional wired headphones as it is planning to introduce new product offerings on a regular basis.
6 unchanged sentences
It is unclear as to whether any emerging and evolving regulations will have a material impact on the Company's results of operations.
−Removed: As of June 30, 2024, the Company employed 30 non-union employees, 2 of which were part-time employees.
−Removed: The Company also engaged temporary personnel at times during the year ended June 30, 2024.
+Added: As of June 30, 2025, the Company employed 28 employees, 2 of which were part-time employees.
+Added: The Company did not engage any temporary personnel during the year ended June 30, 2025.
+Added: None of our employees are covered by a collective bargaining agreement.
FOREIGN SALES
The Company’s competitive position and risks relating to its business in foreign markets are comparable to those in the domestic market.
−Removed: In addition, the governments of the United States and foreign nations may elect to erect trade barriers on exports and/or imports, respectively.
+Added: In addition, the governments of the United States and foreign nations may elect to erect trade barriers and impose further tariffs on exports and/or imports, respectively.
The creation of additional barriers would reduce the Company’s net sales and net income.
12 unchanged sentences
Sales to Ukraine have also been impacted as a result of the humanitarian crisis there due to the ongoing hostilities.
−Removed: In the years ended June 30, 2024 and 2023, there were no sales to Russia, however, Ukraine resumed ordering in fiscal year 2024 and represented approximately 9% of the Company’s export business during the year ended June 30, 2024.
+Added: In the years ended June 30, 2025 and 2024, there were no sales to Russia, however, sales to Ukraine resumed in fiscal year 2024 and those sales represented approximately 2% and 9% of the Company’s export business during the fiscal years ended June 30, 2025 and 2024, respectively.
The Company is uncertain how the conflict will impact future sales.
+Added: MANUFACTURING OPERATIONS
The Company has a manufacturing facility in Milwaukee, Wisconsin and uses contract manufacturing facilities in the People’s Republic of China and Taiwan.
4 unchanged sentences
The Company’s goal is to stock finished goods inventory at an average of approximately 90 days demand per item.
−Removed: Recovery of a single facility through replacement of a supplier in the event of a disaster or suspension of supply could take an estimated six to twelve months, in which case the Company believes that it could restore production of its top 10 selling models (which represent approximately 45% of the Company’s 2024 net sales) within 18-24 months.
+Added: Recovery of a single facility through replacement of a supplier in the event of a disaster or suspension of supply could take an estimated six to twelve months, in which case the Company believes that it could restore production of its top 10 selling models (which represented approximately 56% of the Company’s 2025 net sales) within 18-24 months.
Required compliance testing impacts the time it takes to bring a product to market as well as the time necessary to retool a product and re-enter the marketplace.
7 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.