Company: ELSE
Filing Date: 2025-09-12
Form Type: 10-Q/A
Source: 0000897101-25-000510
Chunk: 14

Company: ELECTRO SENSORS INC
Filing Date: 2025-09-12
Form: 10-Q/A
Chunk 14
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 decrease in research and development for both periods was due to reduced employee headcount. |

Non-Operating Income Net non-operating income decreased $ 27, or 24.8% , for the three- month period ended June 30, 2025 compared to the same period in 2024. Net non-operating income decreased$ 55, or 24.4%, for the sixmonths ended June 30, 2025compared to the same period in 2024.The decrease for the period is the result of lower interest income earned as a result of lower interest rates on Treasury Bills.

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Income (Loss) Before Income Tax Expense Income before income tax expense increased to $ 80in the second quarter of 2025, representing an increase of$ 78from $ 2for the same period in 2024 . Loss before income tax expense was $ 1for the sixmonths ended June 30, 2025, representing a decrease of$ 19from income before income taxes of $ 18for the same period in 2024 .The increasein the quarterwas primarily due to higher net sales and gross margin, partially offset by higher operating expenses and a decrease in interest income as described above. The decrease for the six-month period was due primarily to higher operating expenses and lower interest income as discussed above, partially offset by higher net sales and gross margin. Income Tax Expense Income tax expense was $ 21,or 0.9% of net sales, in the second quarterof 2025compared to $ 6,or 0.3% of net sales, in the second quarterof 2024. Income tax expense was $ 4, or 0.1 % of net sales for the sixmonths ended June 30, 2025 compared to $ 11, or 0.2 % of net sales for the sixmonths 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, 2025was 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 2024effective income tax rate