Company: ELSE
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0000897101-25-000458
Chunk: 4

Company: ELECTRO SENSORS INC
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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creased as a percentage of net sales to 8.9% from 11.9%. Research and development expenses decreased $66 to $460, or 12.5%, in the six months ended June 30, 2025 compared to the same period in 2024, and decreased as a percentage of net sales to 9.9% from 11.8%. The decrease in research and development for both periods was due to reduced employee headcount. 

Non-Operating Income
 
Net non-operating income decreased $27, or 24.8%, for the three-month period ended June 30, 2025 compared to the same period in 2024. Net non-operating income decreased $55, or 24.4%, for the six months ended June 30, 2025 compared to the same period in 2024. The decrease for the period is the result of lower interest income earned as a result of lower interest rates on Treasury Bills.

17

Income (Loss) Before Income Tax Expense 
 
Income before income tax expense increased to $80 in the second quarter of 2025, representing an increase of $78 from $2 for the same period in 2024. Loss before income tax expense was $1 for the six months ended June 30, 2025, representing a decrease of $19 from income before income taxes of $18 for the same period in 2024. The increase in the quarter was primarily due to higher net sales and gross margin, partially offset by higher operating expenses and a decrease in interest income as described above.  The decrease for the six-month period was due primarily to higher operating expenses and lower interest income as discussed above, partially offset by higher net sales and gross margin.

Income Tax Expense
 
Income tax expense was $21, or 0.9% of net sales, in the second quarter of 2025 compared to $6, or 0.3% of net sales, in the second quarter of 2024. Income tax expense was $4, or 0.1% of net sales for the six months ended June 30, 2025 compared to $11, or 0.2% of net sales for