Company: ELSE
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0000897101-25-000160
Chunk: 11

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: 10-K
Item: Item 1B
Chunk 11
---
 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 section.  

Realized gains and losses, including losses from declines in value of specific securities determined by management to be other-than-temporary, are included in the statement of comprehensive income. Realized gains and losses are determined on the basis of the specific securities sold.

14    

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