Company: ELSE
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000897101-25-000245
Chunk: 2

Company: ELECTRO SENSORS INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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decrease was primarily driven by reduced sales of HazardPRO wireless product
sales, partially offset by an increase in sales of wired sensor products.
 
Gross Profit
 
Gross profit for the first quarter of 2025 was $1,084, an increase of $4, or 0.4%, over the same period in 2024. Gross margin increased in the first quarter of 2025 to 48.4% from 48.1% during the same period in 2024. The slight increase in gross margin for the quarter was primarily due to an increase in average selling prices for specific items, mostly offset by increased costs of raw materials across product lines. 

 15     

Operating Expenses
 
Total operating expenses increased $73, or 6.2%, to $1,253 for the first quarter of 2025 compared to the same period in 2024, and increased as a percentage of net sales to 56.0% from 52.6%. The increase in operating expenses for the period was primarily due to costs associated with additional employee headcount. 

 ●  

 Selling and marketing expenses in the first quarter of 2025 increased $69 to $420, or 19.7%, from the same period in 2024, and increased as a percentage of net sales to 18.8% from 15.6%. The increase for the period was primarily due to higher wages and benefits due to the hiring of sales leadership.      

 ●  

 General and administrative expenses increased $20 to $587, or 3.5%, in the first quarter of 2025 compared to the same period in 2024, and increased as a percentage of net sales to 26.2% from 25.3%. The increase for the period was primarily due to additional headcount.      

 ●  

 Research and development expenses decreased $16 to $246, or 6.1%, in the first quarter of 2025 compared to the same period in 2024, and decreased as a percentage of net sales to 11.0% from 11.7%. The decrease for the three-month period was due to reduced headcount.       
 
Non-Operating Income
 
Net non-operating income decreased $28, or 24.1%, for the three-month period