Company: ELSE
Filing Date: 2025-09-12
Form Type: 10-Q/A
Source: 0000897101-25-000510
Chunk: 15

Company: ELECTRO SENSORS INC
Filing Date: 2025-09-12
Form: 10-Q/A
Chunk 15
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 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 $ 10,182at June 30, 2025and $ 9,948at December 31, 2024. The increase was primarily the result of an increase in cash from operating activities. Cash from operating activities was $ 247for the sixmonths ended June 30, 2025compared to $ 44for the sixmonths ended June 30, 2024. The $ 203 increasewas 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 $ 13and $ 26for the six months ended June 30, 2025and 2024, respectively. The cash used was for the purchase of office equipment. There was nocash flow from financing activities in the six months ended June 30, 2024and 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 12months.

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Supply Chain and Labor Dynamics We purchase parts and materials from various manufacturers and distributors. While we believe our supply chain has begun to stabilize, we still occasionally see unexpected price increases and delivery delays requiring us to intervene and remediate. To meet these challenges, we are seeking additional sources for components and modifying product designs to accommodate new components that are more readily available at competitive prices. There is no guarantee that we will continue to be successful in modifying these designs and sourcing alternative components and material. As a result, we could experience significant delays in receiving certain components needed to make timely customer deliveries, as well as increased costs that erode gross margins. Current supply chain dynamics may have a negative effect on the efficiency of our operations, our customer base, and the domestic or worldwide economy. Changes in general economic and financial conditions, inflation