Company: ELSE
Filing Date: 2025-09-12
Form Type: 10-Q/A
Source: 0000897101-25-000510
Chunk: 7

Company: ELECTRO SENSORS INC
Filing Date: 2025-09-12
Form: 10-Q/A
Chunk 7
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 investments in twonon-publicly traded companies. There is an undeterminable market for each of these twocompanies and the Company has determined the fair value based on financial and other factors that are considered Level 3inputs in the fair value hierarchy. Th ere was nochange in Level 3 assets measured at fair value on a recurring basis during the three and six-month periods ended June 30, 2025and 2024.

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ELECTRO-SENSORS, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2025 (in thousands except share and per share amounts) (unaudited)

Note 4. Inventories

Inven tories use d in the determina tion of cost of go ods sold are as follows:

|                          |   | June 30, 
     2025 |   |     |   | December 31, 
         2024 |   |
|:-------------------------|:--|---------:|:--|:----|:--|-------------:|:--|
| Raw Materials            | $ |    1,300 |   |     | $ |        1,334 |   |
| Work In Process          |   |      365 |   |     |   |          301 |   |
| Finished Goods           |   |      365 |   |     |   |          339 |   |
| Reserve for Obsolescence |   |      (20 | ) |     |   |          (10 | ) |
| Total Inventories, net   | $ |    2,010 |   |     | $ |        1,964 |   |

Note 5. Sto c k-B ased Co mpensation

Stock options

The 2013Equity Incentive Plan (the “ 2013Plan”) authorizes the issuance of nonqualified stock options. Payment for the shares may be made in cash, shares of the Company’s common stock or a combination thereof. Under the terms of the 2013Plan, non-qualified stock options are granted at a minimum of 100% of fair market value on the date of grant and may be exercised at various times depending upon the terms of the option. All existing options expire 10years from the date of grant, subject to early termination 12months after termination of employment or service due to death, disability, or termination other than for cause