Company: ELSE
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0000897101-25-000160
Chunk: 52

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: 10-K
Item: Item 7
Chunk 52
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 was primarily due to an increase in raw material and labor costs across all product lines, partially offset by price increases introduced in the second half of 2024.  We have provided additional information regarding
material and labor costs in Item 1 of this Annual Report on Form 10-K. 

Operating Expenses

Total operating expenses increased $313, or 7.3%, to $4,586 in 2024 from $4,273 in 2023, but decreased as a percentage of net sales to 48.9% from 50.0%.  The increase in operating expense dollars was primarily due to additional headcount and stock-based compensation.

 ●  

 Selling and marketing expenses increased $109, or 8.2%, to $1,441 in 2024 from $1,332 in 2023, but decreased as a percentage of net sales to 15.4% from 15.6%. The increase was primarily due to additional sales headcount and leadership, and variable compensation due to higher revenue.      

 ●  

 General and administrative expenses increased $164, or 8.3%, to $2,132 in 2024 from $1,968 in 2023, but decreased as a percentage of net sales to 22.7% from 23.0%. The increase was primarily due to increased headcount and stock-based compensation expense.      

 ●  

 Research and development expenses increased $40, or 4.1%, to $1,013 in 2024 compared to $973 in 2023, but decreased as a percentage of net sales to 10.8% from 11.4%. The increase was primarily due to additional headcount; partially offset by lower contract engineering costs related to product development and enhancements.      

Operating Loss

Operating loss was $4 in 2024 compared to $28 in 2023, a decrease of $24, or 85.7%.  The decrease was primarily the result of higher net sales; partially offset by increased compensation expense related to additional headcount and stock-based compensation.

Non-Operating Income 

Non-operating income increased $34 to $440 in 2024 from $406 in 2023, primarily as a result of additional interest income earned as a result of higher interest rates on Treasury Bills.

Equity securities are stated at fair value, and unrealized holding gains and losses are reported in our statements of comprehensive income in the non-operating income