Company: ELSE
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000897101-25-000245
Chunk: 1

Company: ELECTRO SENSORS INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 1
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 ended December 31, 2024.
 
CRITICAL ACCOUNTING ESTIMATES

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make decisions based upon estimates, assumptions, and factors it considers relevant to the circumstances. These decisions include the selection of applicable accounting principles and the use of judgment in their application and affect reported amounts and disclosures. Changes in economic conditions or other business circumstances may affect the outcomes of management’s estimates and assumptions. An in-depth description of our accounting estimates can be found in the interim financial statements included in this report and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There have been no changes to our critical accounting estimates during the three-month period ended March 31, 2025.

 14     

 SELECTED FINANCIAL INFORMATION
 
The following table contains selected financial information, for the periods indicated, from our Condensed Statements of Operations expressed as a percentage of net sales. 

 Three Months Ended March 31 

 2025  

 2024  

 Net sales  
100.0
%

100.0
% 

 Cost of goods sold  
51.6

51.9

 Gross profit  
48.4

48.1

 Operating expenses  

      Selling and marketing  
18.8

15.6

      General and administrative  
26.2

25.3

      Research and development  
11.0

11.7

 Total operating expenses  
56.0

52.6

 Operating loss 
(7.6
)

(4.5
) 

 Non-operating income  

      Interest income  
3.9

5.2

 Income (loss) before income tax expense (benefit) 
(3.7
)

0.7

 Income tax expense (benefit) 
(0.8
)

0.2

 Net income (loss) 
(2.9
)%

0.5
%      
  
The following paragraphs discuss the Company’s performance for the three months ended March 31, 2025 and 2024.
 
RESULTS OF OPERATIONS (in thousands) 
 
Net Sales
 
Net sales for the first quarter of 2025 were $2,239, a decrease of $5, or 0.2%, from $2,244 during the comparable period in 2024.  The