Company: ELSE
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0000897101-25-000160
Chunk: 42

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: 10-K
Item: Item 5
Chunk 42
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 future technological requirements, we would be required to remove the items from inventory and expense the amount in cost of goods sold.

Valuation of investments

Our
investments in available-for-sale securities are valued at market prices in an
open market. The prices are subject to normal fluctuations that could be
either negative or positive. Even though these equity securities were only
valued at $56 at December 31, 2024, changes in
the value of these equity securities could affect our profitability.  Treasury Bills accounted for as cash
equivalents are adjusted to fair value monthly and any change is reported as interest income on the Statement of Comprehensive Income.

 Valuation of stock-based compensation expense

We estimate the expected life and forfeiture rates of stock options granted when calculating the value of options using the Black-Scholes-Merton model. The actual life and forfeiture rate could differ from what we estimated. Changes in the life or forfeiture rate of stock options could have a negative or positive impact on our stock-based compensation.

Additional information regarding our significant accounting policies is provided below in Part II, Item 8, Financial Statements and Supplementary Data – Notes to Financial Statements, Note 1, Nature of Business and Significant Accounting Policies.

 Item 7A.           Quantitative and Qualitative Disclosures About Market Risk. 

Not applicable.

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 Item 8.              Financial Statements and Supplementary Data. 

INDEX TO FINANCIAL STATEMENTS 

Report of Independent Registered Public Accounting Firm (Auditor ID: 542)
19 

Financial Statements

Balance Sheets
20 

Statements of Comprehensive Income
21 

Statements of Changes in Stockholders’ Equity
22 

Statements of Cash Flows
23 

Notes to Financial Statements
24    

18    

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders ofElectro-Sensors, Inc.

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Electro-Sensors, Inc. (the Company) as of December 31, 2024 and 2023 and the related statements of comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2024, and the related notes (collectively referred to as the financial statements).  In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and