LUVU — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-09-29

• Changes in U.S. trade policy, including tariffs on certain goods imported into the United States from international suppliers had increased the costs of certain raw materials, parts or components used in our products. Such increases did not materially affect our sales and our business. However, due …

Text removed vs the prior filing · source: 10-K · 2025-10-14

• Changes in U.S. trade policy, including tariffs on certain goods imported into the United States from international suppliers have increased the costs of certain raw materials, parts or components used in our products. Such an increase may materially and adversely affect our sales and our business, …

Text added vs the prior filing · source: 10-K · 2026-09-29

• We have been adversely affected by increases in raw material and shipping costs related to increases in fuel cost.

• We have experienced increased raw material and shipping costs as higher fuel costs, including those associated with the war in Iran, have raised transportation, logistics, and supplier costs across our supply chain. These increases have adversely affected our overall cost structure, liquidity, busin…

• Our Board currently consists of a single director, and we are substantially dependent upon our Chief Executive Officer and controlling shareholder.

• Louis Friedman is CEO, President, Chairman/sole director and controlling shareholder. Consequently, Board oversight is concentrated. There are no independent directors; no Audit/Compensation/Nominating Committees, and no audit committee financial expert. The death, incapacity, resignation or unavail…

• Our controlling shareholder has the ability to determine the outcome of matters submitted to shareholders.

Text removed vs the prior filing · source: 10-K · 2025-10-14

• We have been adversely affected by the effects of import tariffs and weak economic conditions.

• Import tariffs have adversely affected our liquidity, business, financial condition, and results of operations by increasing our overall cost structure, and such effects will be further exacerbated if we are unable to achieve commensurate increases in the prices we charge our customers. Uncertainty …

Text added vs the prior filing · source: 10-K · 2026-09-29

• Net Sales. Net sales grew 5.8% in fiscal 2026 compared to fiscal 2025. Our Direct to Consumer segment rose by $0.1 million, or 2%, compared to fiscal 2025, while our Wholesale segment rose by $1.3 million or 8%. Wholesale increase was related to the continued increase in our dropship network. The di…

• Gross profit. Gross profit, derived from net sales less the cost of product sales, includes the cost of materials, direct labor, manufacturing overhead, and depreciation. Total gross profit as a percentage of sales for the year ended June 30, 2026, increased to 31.5% from 29.5% in the prior year. Gr…

• Operating expenses. Excluding depreciation expense, total operating expenses for the year ended June 30, 2026, were 27% of net sales, or $7,386,273, compared to 28% of net sales, or $7,274,981 for the year ended June 30, 2025. The 1.5% increase in operating expenses from the prior year was primarily…

• Income tax expense. Income tax expense was $674,636 for the fiscal year ended June 30, 2026, compared to $0 in the prior fiscal year. Fiscal 2026 income tax expense consisted of a deferred tax provision of approximately $719,000, partially offset by the reversal of approximately $44,000 of prior tax…

• Net Income/ (Loss). We had a net loss from operations of ($245,718) or ($0.00) per diluted share, for the year ended June 30, 2026 compared with net loss from operations of ($448,659) or $0.00 per diluted share, for the year ended June 30, 2025. The decrease in loss is due to flat operating expenses…

Text removed vs the prior filing · source: 10-K · 2025-10-14

• Net Sales. Net sales remained nearly flat in fiscal 2025 compared to fiscal 2024. Our Direct to Consumer segment rose by $1.1 million, or 16%, compared to FY2024, while our Wholesale segment declined by $1 million. The direct sales channel includes consumer sales via our three websites. The growth i…

• Gross profit. Gross profit, derived from net sales less than product sales, includes the cost of materials, direct labor, manufacturing overhead, and depreciation. Total gross profit as a percentage of sales for the year ended June 30, 2025, decreased to 26% from 27% in the prior year. Gross profit …

• Operating expenses. Excluding depreciation expense, total operating expenses for the year ended June 30, 2025, were 25% of net sales, or $6,114,497, compared to 24% of net sales, or $5,940,238, for the year ended June 30, 2024. The 3% increase in operating expenses from the prior year was primarily …

• Income tax expense. Income tax expenses were $0 compared to an expense of ($162,000) in the prior fiscal year.

• Net Income/ (Loss). We had a net loss from operations of $448,659 or $(0.01) per diluted share, for the year ended June 30, 2025 compared with net loss from operations of $398,602 or $(0.01) per diluted share, for the year ended June 30, 2024 due to decrease in net sales and increase in operating ex…