Financial Performance - Net sales for 2024 were 818, or 9.6%, from 337, or 7.9%, to 4,245 in 2023, with a gross margin of 48.9% compared to 49.6% in 2023 [79]. - Net income for 2024 was 171, or 62.2%, compared to 0.13 and 4 in 2024 compared to 24, or 85.7% [81]. - Total assets increased to 14,445,000 in 2023, representing a growth of 3.0% [116]. - Total stockholders' equity grew to 13,755,000 in 2023, marking a 4.2% increase [116]. Expenses and Costs - Total operating expenses increased 4,586 in 2024 from 109, or 8.2%, to 1,332 in 2023, but decreased as a percentage of net sales to 15.4% from 15.6% [84]. - Research and development expenses increased 1,013 in 2024 compared to 42,000 in 2024, down from 129 in 2024, a decrease of 321 in 2023, primarily due to increased inventory and decreased accounts payable [89]. Cash and Liquidity - Cash and cash equivalents were 9,870 at December 31, 2024 and 2023, respectively, with working capital increasing to 12,449 [88]. - Cash and cash equivalents at year-end increased to 9,870,000 in 2023, a rise of 0.8% [121]. - Total inventories rose to 1,751,000 in 2023, marking an increase of approximately 12.2% [169]. Strategic Plans and Investments - The company believes ongoing cash usage requirements will be primarily for capital expenditures, potential acquisitions, and research and development [92]. - The company plans to continue making strategic investments to enhance product development and market reach [125]. Internal Controls and Governance - As of December 31, 2024, the Company's internal controls over financial reporting were deemed effective, following the COSO framework [205]. - The management has assessed the effectiveness of internal control over financial reporting as of December 31, 2024, confirming its reliability [205]. - There were no changes in the Company's internal control over financial reporting during the fourth quarter of fiscal year 2024 that materially affected its effectiveness [206]. - The Company has adopted a Code of Ethics and Business Conduct applicable to all officers and employees [212]. - The Company has established insider trading policies to promote compliance with relevant laws and regulations [214]. Stock and Compensation - The Company reported basic earnings per share (EPS) of 0.08 for 2023, indicating a 62.5% increase [156]. - The company recognized stock-based compensation expense of 38 million in 2023, with unrecognized compensation expense related to stock options at 4.03 [220]. - The company granted 35,000 restricted stock units in 2023, with 21,000 units vesting in 2024, leaving 84,000 unvested as of December 31, 2024 [183]. Tax and Regulatory Matters - The company reported a total federal and state income tax provision of 103 million in 2023, reflecting a significant decrease due to R&D credits [193]. - The Company has a valuation allowance on deferred tax assets of 279,000 in 2023, reflecting an increase of about 11.5% [151]. Meeting and Shareholder Information - The Company will hold its Annual Meeting of Shareholders on April 23, 2025 [210].
Electro-Sensors(ELSE) - 2024 Q4 - Annual Report