Company: ELSE
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0000897101-25-000458
Chunk: 1

Company: ELECTRO SENSORS INC
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 1
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 ended December 31, 2024.
 
CRITICAL ACCOUNTING ESTIMATES

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make decisions based upon estimates, assumptions, and factors it considers relevant to the circumstances. These decisions include the selection of applicable accounting principles and the use of judgment in their application and affect reported amounts and disclosures. Changes in economic conditions or other business circumstances may affect the outcomes of management’s estimates and assumptions. An in-depth description of our accounting estimates can be found in the interim financial statements included in this report and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There have been no changes to our critical accounting estimates during the three and six-month periods ended June 30, 2025.

 15 

Recent Developments
 
On August 7, 2025, Michael
Zipoy provided the Board with notice that he will be retiring from the Board
effective as of August 8, 2025. Mr. Zipoy has served on the Board since 2012
and was most recently a member of the Audit, Compensation, and Nominating
Committees of the Board. In recognition of his valuable service to the Board,
the vesting of Mr. Zipoy’s outstanding options and RSU awards was accelerated.
 
SELECTED FINANCIAL INFORMATION
 
The following table contains selected financial information, for the periods indicated, from our Condensed Statements of Operations expressed as a percentage of net sales. 

 Three Months Ended June 30

Six Months Ended June 30

 2025 

 2024 

2025

2024

 Net sales 

100.0
%

100.0
%

100.0

100.0
%

 Cost of goods sold 

48.8

52.8

50.2

52.3

 Gross profit 

51.2

47.2

49.8

47.7

 Operating expenses 

      Selling and marketing 

18.4

15.9

18.6

15.8

      General and administrative 

24.0

24.2

25.0

24.7

      Research and development 

8.9

11.9

9.9

11.8

 Total operating expenses 

51.3

52.0

53.5

52.3

 Operating loss 

(0.1