Company: ELSE
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0000897101-25-000458
Chunk: 5

Company: ELECTRO SENSORS INC
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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 the six months ended 2024.  The effective tax rate for the second quarter of 2025 was 26.3% compared to 300.0% for the same period in 2024.  The effective tax rate for the six-month period ended June 30, 2025 was 400.0% compared to 61.1% in the same period of 2024. The 2025 effective tax rate for the six-month period ended June 30, 2025 was higher than normal due to the adjustment of the calendar year 2024 balance due.  The 2024 effective income tax rate for both periods was higher than normal due to the write-off of deferred tax assets in conjunction with the expiration of unexercised stock options in the period.
 
LIQUIDITY AND CAPITAL RESOURCES 
 
Cash and cash equivalents were $10,182 at June 30, 2025 and $9,948 at December 31, 2024. The increase was primarily the result of an increase in cash from operating activities.
 
Cash from operating activities was $247 for the six months ended June 30, 2025 compared to $44 for the six months ended June 30, 2024. The $203 increase was due primarily to an increase in accounts payable and a decrease in accounts receivable, partially offset by an increase in inventory. The increase in accounts payable is due to the timing of payments.  The
decrease in accounts receivable is due to the timing of customer payments.  The increase in inventory is due to the
timing of customer sales.
 
Cash used in investing activities was $13 and $26 for the six months ended June 30, 2025 and 2024, respectively. The cash used was for the purchase of office equipment.
 
There was no cash flow from financing activities in the six months ended June 30, 2024 and 2025.
 
Subject to the following section, entitled "Supply Chain and Labor Dynamics," the Company believes its ongoing cash requirements will be primarily for capital expenditures, research, and development, working capital, corporate and business development, and other strategic alternatives and that existing cash, cash equivalents, and investments and any cash generated from operations will be sufficient to meet these cash requirements through at least the next 12 months.

18

Supply Chain and Labor Dynamics
 
We purchase parts and materials from various manufacturers and distributors.