Financial Performance - Net sales for Q1 2025 were $2,239, a decrease of $5, or 0.2%, from $2,244 in Q1 2024, primarily due to reduced sales of HazardPRO wireless products [57]. - Gross profit for Q1 2025 was $1,084, an increase of $4, or 0.4%, with a gross margin of 48.4%, up from 48.1% in Q1 2024 [58]. - Total operating expenses increased by $73, or 6.2%, to $1,253 in Q1 2025, rising as a percentage of net sales to 56.0% from 52.6% [60]. - Net non-operating income decreased by $28, or 24.1%, in Q1 2025 due to lower interest income from Treasury Bills [61]. - Loss before income tax benefit was $81 in Q1 2025, a decrease of $97 compared to income before income taxes of $16 in Q1 2024 [62]. Cash Flow and Liquidity - Cash and cash equivalents were $9,918 at March 31, 2025, down from $9,948 at December 31, 2024, primarily due to decreased cash from operating activities [65]. - Cash used in operating activities was $30 in Q1 2025, compared to cash from operating activities of $202 in Q1 2024, a decrease of $232 [66]. - The company believes its ongoing cash requirements will be met through existing cash and cash generated from operations for at least the next 12 months [67]. Strategic Outlook - The company is exploring growth opportunities through internal product development and external technology partnerships or acquisitions [70]. - Supply chain dynamics may negatively impact operations and profit margins due to unexpected price increases and delivery delays [68].
Electro-Sensors(ELSE) - 2025 Q1 - Quarterly Report