October 25, 2021

Quarterly Filings

Koss: Financial Results Will Be Better Now That the Whole Fraud Thing Is Over

Hopefully! Headphone master Michael Koss officially announced that things are back to business as usual at casa de Koss now that Sue Sachdeva’s sticky fingers aren’t around.

“The company has continued to operate in the normal course of business despite the disruption resulting from the discovery of the unauthorized transactions,” Chief Executive Officer Michael J. Koss said in a statement. “We believe that the elimination of these unauthorized transactions will enhance our future operating results.”


What a relief! No mention of how the pending lawsuits against Koss will affect operating results, however. We understand that it could be a sensitive issue at the moment.

The Company filed its 10-Q yesterday and an 8-K today that explains that those restated, not-so-good results that you’re expecting will be done pronto. Don’t expect to see anything before April but not past June, swear.

After that, watch out everybody, Koss will be on fire, blowing those analyst estimates out of the water. In the meantime things are moving along and those internal controls, yeah, they’re working on them but they reminded everyone in the 10-Q that even if they designed the best internal control systems on Earth, it still wouldn’t guarantee that bad stuff won’t happen:

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. It is possible for even the best control system to be circumvented by those with the intent, knowledge and opportunity to do so.

Not to put to fine a point on it but a half-assed control system would have detected this fraud, never mind the “well conceived and operated” part.

With fraud claims exposed, Koss expects better financial results [Milwaukee Journal-Sentinel]

Last Call for Q2 Meltdowns

calendar.jpgLast week we checked in with those of you working on 10-Q’s for the second quarter and it sounded like it was pretty quiet.
Large accelerated filers have until 5:30 EST today to get their 10-Q’s submitted. Any last minute meltdowns out there? Anyone going on 48 hours of no sleep to pull this one off? Let us know in the comments or email us at tips@goingconcern.com.

SEC Filings: Q2 Homestretch

For those of you working on accelerated filers, you’re probably counting down the days hours until Monday’s deadline for the second quarter.
So, if you’ve already filed, make all the other workhorses out there jealous by telling us where you’re going to happy hour the rest of the week.
If you’re working down to the wire, let us know what color your sleeping bag is or where you’ll be ordering take out. Or maybe how many days you’ve been wearing the same shirt. Has anyone put in 40 hours this week yet? You get the idea. All right, now get back to it. Regulators are waiting…