Company: ELSE
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0000897101-25-000458
Chunk: 3

Company: ELECTRO SENSORS INC
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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 average selling prices implemented to partially offset increased material costs. 

Operating Expenses
 
Total operating expenses increased $76, or 6.6%, to $1,230 for the second quarter of 2025 compared to the same period in 2024, and decreased as a percentage of net sales to 51.3% from 52.0%. Total operating expenses increased $149, or 6.4%, to $2,483 for the six months ended June 30, 2025 compared to the same period in 2024, and increased as a percentage of net sales to 53.5% from 52.3%. The increase in total operating expenses for both periods was primarily due to costs associated with additional employee headcount. 

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 Selling and marketing expenses in the second quarter of 2025 increased $88 to $441, or 24.9%, from the same period in 2024, and increased as a percentage of net sales to 18.4% from 15.9%. Selling and marketing expenses in the six months ended June 30, 2025 increased $157 to $861, or 22.3%, from the same period in 2024, and increased as a percentage of net sales to 18.6% from 15.8%. The increase in selling and marketing expenses for both periods was primarily due to higher wages and benefits due to the hiring of sales leadership.

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 General and administrative expenses increased $38 to $575, or 7.1%, in the second quarter of 2025 compared to the same period in 2024, but decreased as a percentage of net sales to 24.0% from 24.2%. General and administrative expenses increased $58 to $1,162, or 5.3%, in the six months ended June 30, 2025 compared to the same period in 2024, and increased as a percentage of net sales to 25.0% from 24.7%. The increase in general and administrative expenses for both periods was primarily due to the timing of independent auditor expenses and nonreimbursable sales tax expense; partially offset by a decrease in contract personnel.

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 Research and development expenses decreased $50 to $214, or 18.9%, in the second quarter of 2025 compared to the same period in 2024, and de