Company: ELSE
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0000897101-25-000160
Chunk: 31

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: 10-K
Item: Item 1A
Chunk 31
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 basis of the specific securities sold.

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Income Taxes

 Income tax benefit was $10 in 2024 compared to an income tax expense of $103 in 2023. The decrease in tax expense was due primarily to an increase in the deferred tax assets related to stock-based compensation and non-deductible research and development expenses.  We have provided detailed information about our income tax provision in Note 10 to the financial statements.

Net Income

We reported net income of $446 in 2024 compared to $275 in 2023, an increase of $171, or 62.2%. Basic and diluted earnings per share were $0.13 and $0.08 in 2024 and 2023, respectively.

OFF-BALANCE SHEET ARRANGEMENTS

We are not a party to any off-balance sheet transactions, arrangements or obligations that have, or are reasonably likely to have, a material effect on our financial condition, changes in the financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

LIQUIDITY AND CAPITAL RESOURCES 

Cash and cash equivalents were $9,948 and $9,870 at December 31, 2024 and 2023, respectively.  Working capital was $12,922 at December 31, 2024 compared to $12,449 at December 31, 2023.   The increases were due primarily to cash generated from operations. 

Cash generated from operating activities was $129 in 2024 compared to $321 in 2023, a decrease of $192.  The decrease was primarily due to an increase in inventory and a decrease in accounts payable; partially offset by the increase in net income.  The increase in inventory is primarily due to the timing of receipt of inventory and increased labor and material costs.  The decrease in accounts payable is due to the timing of payments.  The increase in net income is primarily due to increased net sales, partially offset by higher operating expenses.

Cash used in investing activities in 2024 was $51, compared to $70 in 2023.  The cash used in both periods was for the purchase of office equipment.

Cash used in financing activities was $6 during 2023.  There was no cash flow from financing activities during 2024.

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Subject to the following section, entitled "Supply Chain and Labor Dynamics," the Company believes its ongoing cash usage