Company: ELSE
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0000897101-25-000160
Chunk: 44

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: 10-K
Item: Item 6
Chunk 44
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12    

 Item 7.                   Management’s Discussion and Analysis of Financial Condition and Results of Operations. 

The following discussion should be read in conjunction with our financial statements and related notes. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated due to various factors discussed under “Forward-Looking Statements” in Item 1 of this Annual Report on Form 10-K.

RESULTS OF OPERATIONS

The following table contains selected financial information, for the years indicated, from our statements of comprehensive income expressed as a percentage of net sales. 

 Years Ended December 31,  

 2024  

 2023  

 Net sales  

100.0 

 %  

 100.0  

 %   

 Cost of goods sold  

51.1 

 50.4  

 Gross profit  

48.9 

 49.6  

 Operating expenses  

 Selling and marketing  

15.4 

 15.6  

 General and administrative  

22.7 

 23.0  

 Research and development  

10.8 

 11.4  

 Total operating expenses  

48.9 

 50.0  

 Operating loss  

0.0 

(0.4 
) 

 Non-operating income  

 Interest income  

4.7 

 4.8  

 Total non-operating income, net  

4.7 

 4.8  

 Income before income taxes  

4.7 

4.4 

 Income tax expense (benefit)  

(0.1 
)

1.2 

 Net income  

4.8 
%

3.2 
%    

The following paragraphs discuss the Company’s performance for years ended December 31, 2024 and 2023.

Comparison of 2024 vs 2023 (dollars in thousands)

Net Sales

Net sales for 2024 were $9,373, an increase of $818, or 9.6%, from $8,555 in 2023.  The increase was largely driven by higher sales of
HazardPRO wireless sensors and systems for agricultural applications. 
International sales during the year increased on a percentage basis as compared
to 2023, and comprised 11.5% of revenue, up from 10.3% in the prior year. 

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Gross Profit

Gross profit for 2024 increased $337, or 7.9%, to $4,582 from $4,245 in 2023. Gross margin in