Company: ELSE
Filing Date: 2025-09-12
Form Type: 10-Q/A
Source: 0000897101-25-000510
Chunk: 16

Company: ELECTRO SENSORS INC
Filing Date: 2025-09-12
Form: 10-Q/A
Chunk 16
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ary pressures, the potential for economic recession in the U.S., tariffs and trade restrictions, including the imposition of new and higher tariffs on imported goods, the uncertainty of evolving tariffs, and retaliatory tariffs implemented by other countries on U.S. goods may have a negative impact on our business and results of operations.We will monitor and attempt to remediate situations as they occur.However, we may not be able to fully remediate or offset costs, all of which could have a material negative impact on our business and results of operations. Furthermore, the labor market for qualified employees able to fill our various open positions is challenging and becoming more costly. These factors may result in delays in filling these positions and negatively impact profit margins. In addition, we may experience changes in transportation and freight availability that may make it difficult to have materials and components shipped to us, or our products shipped to customers, in a timely and cost-effective manner. While we continue to closely monitor and manage each of these activities, our actions may not be successful and may result in a negative effect on our sales and profit margins. Future Corporate and Business Development Activities We continue to seek growth opportunities, both internally through our existing portfolio of products, technologies, and markets, as well as externally through technology partnerships or related-product or business acquisitions. In addition, we may make strategic or other investments that we believe present good opportunities for the Company and its shareholders. The Company's Board of Directors has established a special committee and continues to explore business development and other strategic alternatives. Off-balance Sheet Arrangements As of June 30, 2025, the Company had no off-balance sheet arrangements or transactions.

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Item 3. Quantitative and Q ualitative Disclosures About Market Risk

Not Applicable. Item 4. Controls and Procedures Evaluation of Disclosure Controls and Procedures Based on an evaluation with the participation of the Company’s management, the Company’s principal executive officer and principal financial officer has concluded that the Company’s disclosure controls and procedures as defined in Rules 13a- 15(e) and 15d- 15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”), were effective as of June 30, 2025 . Changes in Internal Control Over Financial Reporting There were no changes in the Company’s internal control over financial reporting during the second quarterof 2025that were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a- 15and 15d- 15under