Company: ELSE
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0000897101-25-000160
Chunk: 39

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: 10-K
Item: Item 5
Chunk 39
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 expenses increased $40, or 4.1%, to $1,013 in 2024 compared to $973 in 2023, but decreased as a percentage of net sales to 10.8% from 11.4%. The increase was primarily due to additional headcount; partially offset by lower contract engineering costs related to product development and enhancements.      

Operating Loss

Operating loss was $4 in 2024 compared to $28 in 2023, a decrease of $24, or 85.7%.  The decrease was primarily the result of higher net sales; partially offset by increased compensation expense related to additional headcount and stock-based compensation.

Non-Operating Income 

Non-operating income increased $34 to $440 in 2024 from $406 in 2023, primarily as a result of additional interest income earned as a result of higher interest rates on Treasury Bills.

Equity securities are stated at fair value, and unrealized holding gains and losses are reported in our statements of comprehensive income in the non-operating income section.  

Realized gains and losses, including losses from declines in value of specific securities determined by management to be other-than-temporary, are included in the statement of comprehensive income. Realized gains and losses are determined on the basis of the specific securities sold.

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Income Taxes

 Income tax benefit was $10 in 2024 compared to an income tax expense of $103 in 2023. The decrease in tax expense was due primarily to an increase in the deferred tax assets related to stock-based compensation and non-deductible research and development expenses.  We have provided detailed information about our income tax provision in Note 10 to the financial statements.

Net Income

We reported net income of $446 in 2024 compared to $275 in 2023, an increase of $171, or 62.2%. Basic and diluted earnings per share were $0.13 and $0.08 in 2024 and 2023, respectively.

OFF-BALANCE SHEET ARRANGEMENTS

We are not a party to any off-balance sheet transactions, arrangements or obligations that have, or are reasonably likely to have, a material effect on our financial condition, changes in the financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

LIQUIDITY AND CAPITAL RESOURCES 

Cash and cash equivalents were $9,948 and $9,