Financial Performance - Net sales for 2023 were $8,555, a decrease of $474, or 5.2%, from $9,029 in 2022[75]. - Gross profit for 2023 decreased $596, or 12.3%, to $4,245 from $4,841 in 2022, with a gross margin of 49.6% compared to 53.6% in 2022[76]. - Total operating expenses decreased $605, or 12.4%, to $4,273 in 2023 from $4,878 in 2022, representing 50.0% of net sales[77]. - Operating loss was $28 in 2023 compared to $37 in 2022, a decrease of $9, or 24.3%[78]. - Non-operating income increased $297 to $406 in 2023 from $109 in 2022, primarily due to higher interest income[79]. - Net income for 2023 was $275 compared to $100 in 2022, an increase of $175, or 175.0%[83]. - Cash generated from operating activities was $130 in 2023 compared to cash used in operating activities of $147 in 2022, an increase of $277[92]. - Total stockholders' equity increased to $13,755,000 in 2023 from $13,414,000 in 2022, reflecting a 2.5% growth[126]. - The total federal and state income taxes for 2023 amounted to $103, compared to a tax provision of $(28) in 2022[211]. Research and Development - The company aims to continue investing in research and development to create new products and enhance existing ones, which is crucial for future sales growth[44]. - Research and development expenses increased $137, or 16.4%, to $973 in 2023 compared to $836 in 2022[81]. - Research and development expenses rose to $973,000 in 2023, up from $836,000 in 2022, indicating a 16.4% increase[158]. Supply Chain and Operations - The company experienced supply chain disruptions in 2023, leading to increased costs for parts and materials, and has been modifying product designs to accommodate more readily available components[34]. - The company is facing supply chain disruptions and price increases for components, which may affect profit margins and operational efficiency[97]. Employee Relations - The company had 35 full-time employees as of December 31, 2023, and emphasizes the importance of employee relations and retention for maintaining competitive advantage[47]. - The Company has an employee stock ownership plan (ESOP) covering substantially all employees, with 94,434 shares held by participants as of December 31, 2023[206]. Mergers and Acquisitions - The company announced a terminated merger agreement with Mobile X Global, Inc. on January 30, 2023, and is exploring other business development opportunities[41]. - The merger agreement with Mobile X was terminated due to unavailability of necessary PIPE investment financing amid challenging financial market conditions[189]. Investments and Cash Flow - Cash and cash equivalents were $9,870 and $7,646 at December 31, 2023 and 2022, respectively, reflecting an increase in available funds[91]. - Cash generated from investing activities increased to $2,100 in 2023 from $964 in 2022, primarily due to increased maturities of Treasury Bills[93]. - Cash used in financing activities was $6 in 2023, a significant decrease from cash generated of $116 in 2022[94]. - The company purchased Treasury Bills totaling $13,830,000 in 2023, compared to $6,971,000 in 2022, marking a 98.5% increase[128]. Intellectual Property - The company holds six patents related to its production monitoring systems and actively seeks to protect its intellectual property[38]. - The company has established the HazardPRO trademark and intends to register it, reflecting its commitment to brand recognition and market presence[37]. Market Presence - In 2023, international sales represented approximately 10% of total revenues, with sales occurring in countries such as Canada, Mexico, and the United Kingdom[29]. - The company sells a range of products from simple sensors to complex integrated monitoring systems, targeting industries such as manufacturing and power generation[29]. - The company continues to explore new industries and applications to expand sales and may consider acquiring compatible businesses as part of its growth strategy[30]. Stock and Compensation - The Company had issued 25,000 shares and had 175,000 options outstanding under the 2013 Equity Incentive Plan, with 95,000 options exercisable[192]. - The Company granted 105,000 restricted stock units in 2023, with a weighted-average grant-date fair value of $4.11[202]. - The unrecognized compensation expense related to outstanding stock options is $111, expected to be recognized over four years[198]. - The Company recognized compensation expense of approximately $38 for stock options and $29 for restricted stock units during the year ended December 31, 2023[198][203]. - The company incurred stock-based compensation expenses of $67,000 in 2023, significantly higher than $3,000 in 2022[128]. Financial Position - Total current assets rose to $13,139 in 2023, compared to $12,813 in 2022, with cash and cash equivalents increasing to $9,870 from $7,646[122]. - The company reported total inventories of $1,751,000 as of December 31, 2023, slightly up from $1,745,000 in 2022, showing a marginal increase[180]. - The total property and equipment net value decreased to $951,000 in 2023 from $975,000 in 2022, representing a decline of approximately 2.46%[183]. - Accrued expenses decreased to $323,000 in 2023 from $350,000 in 2022, reflecting a reduction of about 7.71%[185]. - The company reported an allowance for credit losses of $11 against trade receivables of $1,283 in 2023, reflecting a cautious approach to credit risk[122]. - The allowance for credit losses on trade receivables remained stable at $11,000 for both 2023 and 2022[140]. - The company had no customers exceeding 10% of accounts receivable as of December 31, 2023, compared to one customer at 12% in 2022[141]. Accounting and Compliance - The company adopted a new accounting standard on January 1, 2023, which had no significant impact on the financial statements[166]. - The lease expense for the year ended December 31, 2023, was $1, a decrease from the previous year[187].

Financial Performance - Net sales for Q3 2023 were $2,057, a decrease of $159, or 7.2%, from $2,216 in Q3 2022; for the nine months ended September 30, 2023, net sales were $6,239, a decrease of $676, or 9.8%, from $6,915 in the same period in 2022[69]. - Gross profit for Q3 2023 was $993, a decrease of $170, or 14.6%, compared to Q3 2022; gross profit for the nine months ended September 30, 2023, was $3,083, a decrease of $654, or 17.5%, from the same period in 2022[70]. - Income before income tax expense for Q3 2023 was $83, a decrease of $71 compared to $154 in Q3 2022; for the nine months ended September 30, 2023, it was $176, an increase of $393 compared to a loss of $217 in the same period in 2022[74]. - For the three months ended September 30, 2023, the Company reported a Net Income (Loss) of $8 million, compared to a Net Income of $122 million for the same period in 2022[91]. - Adjusted Net Income for the three months ended September 30, 2023, was $8 million, while it was $184 million for the same period in 2022, reflecting a decrease of approximately 95.65%[91]. - For the nine months ended September 30, 2023, the Company reported a Net Income (Loss) of $80 million, compared to a Net Loss of $171 million for the same period in 2022[91]. - Adjusted Net Income for the nine months ended September 30, 2023, was $80 million, down from $505 million for the same period in 2022, indicating a decrease of approximately 84.24%[91]. Operating Expenses - Total operating expenses for Q3 2023 decreased by $25, or 2.4%, to $1,019, while as a percentage of net sales, it increased to 49.5% from 47.1%; for the nine months ended September 30, 2023, total operating expenses decreased by $794, or 19.9%, to $3,203[72]. Cash Flow - Cash and cash equivalents were $3,902 at September 30, 2023, down from $7,646 at December 31, 2022; total cash, cash equivalents, and investments were $9,928 at September 30, 2023, compared to $9,682 at December 31, 2022[77]. - Cash from operating activities was $92 for the nine months ended September 30, 2023, compared to cash used in operating activities of $213 for the same period in 2022, reflecting a $305 increase due to higher net income and decreased trade receivables[78]. - Cash used in investing activities was $3,831 for the nine months ended September 30, 2023, compared to cash from investing activities of $2,991 for the same period in 2022, primarily due to increased purchases of Treasury Bills[79]. Non-Operating Income - Net non-operating income increased by $74, or 211.4%, for Q3 2023 compared to Q3 2022; for the nine months ended September 30, 2023, it increased by $253, or 588.4%[73]. Merger and Acquisition Activities - The company continues to seek growth opportunities through internal product development and external acquisitions, following the termination of a merger agreement with Mobile X[83]. - The Company and Mobile X jointly agreed to terminate the merger agreement on January 30, 2023, with no further non-GAAP information presented[89]. - The Company incurred approximately $79 million in legal and other professional fees related to the Mobile X merger opportunity for the three months ended September 30, 2022[90]. - Total merger-related expenses for the nine months ended September 30, 2022, amounted to approximately $856 million[90]. - The Company believes that adding back merger-related costs provides a more accurate portrayal of underlying business results and trends[88]. - The income tax benefit of merger-related expenses for the three months ended September 30, 2022, was $(17) million, and for the nine months ended September 30, 2022, it was $(180) million[91]. - The Company is using "Adjusted Net Income" as a non-GAAP financial measure to facilitate comparisons and analysis of its operating performance[87]. Supply Chain Issues - The company is experiencing supply chain disruptions and price increases for components, which may affect sales and profit margins[82].

Financial Performance - Net sales for Q2 2023 were $2,137, a decrease of $427, or 16.7%, from $2,564 in Q2 2022[55] - Gross profit for Q2 2023 was $1,068, a decrease of $340, or 24.1%, compared to Q2 2022, with a gross margin of 50.0% down from 54.9%[56] - Total operating expenses decreased by $749, or 42.2%, to $1,024 in Q2 2023, representing 47.9% of net sales, down from 69.2% in Q2 2022[57] - Income before income tax expense was $138 for Q2 2023, an increase of $496 compared to a loss of $358 in Q2 2022[59] - For the three months ended June 30, 2023, the Company reported a GAAP Net Income of $116 million, compared to a loss of $284 million in the same period of 2022[76] - Adjusted Net Income for the three months ended June 30, 2023, was $135 million, down from $255 million in the same period of 2022[76] - For the six months ended June 30, 2023, the GAAP Net Income was $72 million, compared to a loss of $293 million in the same period of 2022[76] - Adjusted Net Income for the six months ended June 30, 2023, was $105 million, down from $321 million in the same period of 2022[76] Cash Flow and Expenses - Cash and cash equivalents were $5,600 at June 30, 2023, down from $7,646 at December 31, 2022[62] - Cash used in operating activities was $136 for the six months ended June 30, 2023, compared to $272 for the same period in 2022[63] - Cash used in investing activities increased to $1,907 for the six months ended June 30, 2023, compared to $9 in the same period in 2022[64] - The Company incurred merger-related expenses of approximately $24 million for the three months ended June 30, 2023, significantly lower than $682 million in the same period of 2022[76] - The Company incurred approximately $42 million in merger-related expenses for the six months ended June 30, 2023, compared to $777 million in the same period of 2022[76] - The income tax benefit of merger-related expenses for the three months ended June 30, 2023, was $(5) million, compared to $(143) million in the same period of 2022[76] - The income tax benefit of merger-related expenses for the six months ended June 30, 2023, was $(9) million, compared to $(163) million in the same period of 2022[76] Strategic Initiatives - The company is exploring growth opportunities through technology partnerships and potential acquisitions following the termination of the merger agreement with Mobile X[68] Operational Challenges - Supply chain disruptions and increased component costs are impacting production efficiency and profit margins[67] Non-Operating Income - Net non-operating income increased by $87, or 1,242.9%, for Q2 2023 compared to Q2 2022, driven by higher interest income[58]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 000-09587 ELECTRO-SENSORS, INC. (Exact name of registrant as specified in its charter) Minnesota 41-0943459 (State or other jurisdi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 000-09587 ELECTRO-SENSORS, INC. (Exact name of registrant as specified in its charter) Minnesota 41-0943459 (State or other jurisdiction of incorporation or organization) (IRS Employer ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 1 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 000-09587 ELECTRO-SENSORS, INC. (Exact name of registrant as specified in its charter) Minnesota 41-0943459 (State or other j ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 1 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 000-09587 ELECTRO-SENSORS, INC. (Exact name of registrant as specified in its charter) Minnesota 41-0943459 (State or other jurisd ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 1 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 000-09587 ELECTRO-SENSORS, INC. (Exact name of registrant as specified in its charter) Minnesota 41-0943459 (State or other juris ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 000-09587 ELECTRO-SENSORS, INC. (Exact name of registrant as specified in its charter) Minnesota 41-0943459 (State or other jurisdiction of incorporation or organization) (IRS Employer ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 1 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 000-09587 ELECTRO-SENSORS, INC. (Exact name of registrant as specified in its charter) Minnesota 41-0943459 (State or other j ...