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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended   June 30, 2024

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: 000-12196

Picture 

NVE CORPORATION

(Exact name of registrant as specified in its charter)

 

Minnesota

 

41-1424202

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

11409 Valley View Road, Eden Prairie, Minnesota

 

55344

(Address of principal executive offices)

 

(Zip Code)

 

(952) 829-9217 

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes   No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company  

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes   No

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

NVEC

The NASDAQ Stock Market, LLC

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, $0.01 Par Value – 4,833,676 shares outstanding as of June 30, 2024.


 

Table of Contents

 

NVE CORPORATION

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

 

 

 

Item 1. Financial Statements

 

 

 

Balance Sheets

 

 

 

Statements of Income for the Quarters Ended June 30, 2024 and 2023

 

 

 

Statements of Comprehensive Income for the Quarters Ended June 30, 2024 and 2023

 

 

 

Statements of Shareholders’ Equity for the Quarter Ended June 30, 2024

 

 

 

Statements of Shareholders’ Equity for the Quarter Ended June 30, 2023

 

 

 

Statements of Cash Flows for the Quarters Ended June 30, 2024 and 2023

 

 

 

Notes to Financial Statements

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

 

 

Item 4. Controls and Procedures

 

 

 

PART II. OTHER INFORMATION

 

 

 

Item 1. Legal Proceedings

 

 

 

Item 1A. Risk Factors

 

 

 

Item 4. Mine Safety Disclosures

 

 

 

Item 6. Exhibits

 

 

 

SIGNATURES

 

 

 

2


 

Table of Contents

 

PART IFINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

NVE CORPORATION

BALANCE SHEETS

 

 

(Unaudited)

June 30, 2024

 

 

March 31, 2024*

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,005,492

 

 

$

10,283,550

 

Marketable securities, short-term (amortized cost of $16,022,057 as of June 30, 2024,
and $12,283,630 as of March 31, 2024)

 

 

15,670,927

 

 

 

11,917,779

 

Accounts receivable, net of allowance for credit losses of $15,000 as of June 30, and March 31, 2024

 

 

2,100,018

 

 

 

3,144,833

 

Inventories

 

 

7,164,632

 

 

 

7,158,585

 

Prepaid expenses and other assets

 

 

515,383

 

 

 

689,349

 

Total current assets

 

 

31,456,452

 

 

 

33,194,096

 

Fixed assets

 

 

 

 

 

 

 

 

Machinery and equipment

 

 

11,417,730

 

 

 

10,501,096

 

Leasehold improvements

 

 

1,956,309

 

 

 

1,956,309

 

 

 

 

13,374,039

 

 

 

12,457,405

 

Less accumulated depreciation

 

 

11,478,977

 

 

 

11,403,383

 

Net fixed assets

 

 

1,895,062

 

 

 

1,054,022

 

Deferred tax assets

 

 

1,593,506

 

 

 

1,453,704

 

Marketable securities, long-term (amortized cost of $32,112,822 as of June 30, 2024, and $31,417,890 as of March 31, 2024)

 

 

31,505,264

 

 

 

30,788,301

 

Right-of-use asset – operating lease

 

 

255,000

 

 

 

289,910

 

Total assets

 

$

66,705,284

 

 

$

66,780,033

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

174,243

 

 

$

127,154

 

Accrued payroll and other

 

 

1,338,811

 

 

 

729,215

 

Operating lease liability

 

 

180,262

 

 

 

179,372

 

Total current liabilities

 

 

1,693,316

 

 

 

1,035,741

 

Long-term operating lease liability

 

 

132,388

 

 

 

175,775

 

Total liabilities

 

 

1,825,704

 

 

 

1,211,516

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 6,000,000 shares authorized; 4,833,676 issued and outstanding as of June 30 and March 31, 2024

 

 

48,337

 

 

 

48,337

 

Additional paid-in capital

 

 

19,573,254

 

 

 

19,554,812

 

Accumulated other comprehensive loss

 

 

(748,927

)

 

 

(777,637

)

Retained earnings

 

 

46,006,916

 

 

 

46,743,005

 

Total shareholders’ equity

 

 

64,879,580

 

 

 

65,568,517

 

Total liabilities and shareholders’ equity

 

$

66,705,284

 

 

$

66,780,033

 

 

*The March 31, 2024 Balance Sheet is derived from the audited financial statements contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

 

See accompanying notes.

 

3


Table of Contents

 

NVE CORPORATION

STATEMENTS OF INCOME

(Unaudited)

 

 

 

Quarter Ended June 30,

 

 

 

2024

 

 

2023

 

Revenue

 

 

 

 

 

 

 

 

Product sales

 

$

6,615,859

 

 

$

8,700,092

 

Contract research and development

 

 

167,385

 

 

 

131,322

 

Total revenue

 

 

6,783,244

 

 

 

8,831,414

 

Cost of sales

 

 

975,494

 

 

 

2,079,623

 

Gross profit

 

 

5,807,750

 

 

 

6,751,791

 

Expenses

 

 

 

 

 

 

 

 

Research and development

 

 

878,528

 

 

 

695,992

 

Selling, general, and administrative

 

 

540,404

 

 

 

475,115

 

Credit loss expense

 

 

-

 

 

 

212,440

 

Total expenses

 

 

1,418,932

 

 

 

1,383,547

 

Income from operations

 

 

4,388,818

 

 

 

5,368,244

 

Interest income

 

 

493,959

 

 

 

436,526

 

Income before taxes

 

 

4,882,777

 

 

 

5,804,770

 

Provision for income taxes

 

 

785,190

 

 

 

1,401,040

 

Net income

 

$

4,097,587

 

 

$

4,403,730

 

Net income per share – basic

 

$

0.85

 

 

$

0.91

 

Net income per share – diluted

 

$

0.85

 

 

$

0.91

 

Cash dividends declared per common share

 

$

1.00

 

 

$

1.00

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

4,833,676

 

 

 

4,832,166

 

Diluted

 

 

4,838,995

 

 

 

4,840,571

 

 

 

 

STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

 

 

Quarter Ended June 30,

 

 

 

2024

 

 

2023

 

Net income

 

$

4,097,587

 

 

$

4,403,730

 

Unrealized gain (loss) from marketable securities, net of tax

 

 

28,710

 

 

 

(234,701

)

Comprehensive income

 

$

4,126,297

 

 

$

4,169,029

 

 

See accompanying notes.

 

4


 

Table of Contents

 

NVE CORPORATION

STATEMENTS OF SHAREHOLDERS EQUITY

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Retained

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Earnings

 

 

Total

 

Balance as of March 31, 2024

 

 

4,833,676

 

 

 

48,337

 

 

$

19,554,812

 

 

$

(777,637

)

 

$

46,743,005

 

 

$

65,568,517

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on marketable securities, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,710

 

 

 

 

 

 

 

28,710

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,097,587

 

 

 

4,097,587

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,126,297

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

18,442

 

 

 

 

 

 

 

 

 

 

 

18,442

 

Cash dividends declared ($1.00 per share of common stock)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,833,676

)

 

 

(4,833,676

)

Balance as of June 30, 2024

 

 

4,833,676

 

 

 

48,337

 

 

$

19,573,254

 

 

$

(748,927

)

 

$

46,006,916

 

 

$

64,879,580

 

 

See accompanying notes. 

 

5


Table of Contents

 

NVE CORPORATION

STATEMENTS OF SHAREHOLDERS EQUITY

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Retained

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Earnings

 

 

Total

 

Balance as of March 31, 2023

 

 

4,830,826

 

 

$

48,308

 

 

$

19,295,442

 

 

$

(1,213,858

)

 

$

48,949,610

 

 

$

67,079,502

 

Exercise of stock options

 

 

2,575

 

 

 

26

 

 

 

117,501

 

 

 

 

 

 

 

 

 

 

 

117,527

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on marketable securities, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(234,701

)

 

 

 

 

 

 

(234,701

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,403,730

 

 

 

4,403,730

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,169,029

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

10,536

 

 

 

 

 

 

 

 

 

 

 

10,536

 

Cash dividends declared ($1.00 per share of common stock)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,830,826

)

 

 

(4,830,826

)

Balance as of June 30, 2023

 

 

4,833,401

 

 

$

48,334

 

 

$

19,423,479

 

 

$

(1,448,559

)

 

$

48,522,514

 

 

$

66,545,768

 

 

See accompanying notes. 

 

6


Table of Contents

 

NVE CORPORATION

STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Quarter Ended June 30,

 

 

 

2024

 

 

2023

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income

 

$

4,097,587

 

 

$

4,403,730

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

75,594

 

 

 

77,022

 

Corporate bonds discount amortization

 

 

(53,219

)

 

 

(17,565

)

Provision for current estimate of credit losses

 

 

-

 

 

 

212,440

 

Stock-based compensation

 

 

18,442

 

 

 

10,536

 

Deferred income taxes

 

 

(147,844

 

 

(87,000

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

1,044,815

 

 

 

913,872

 

Inventories

 

 

(6,047

)

 

 

124,848

 

Prepaid expenses and other assets

 

 

208,876

 

 

 

(10,243

)

Accounts payable and accrued expenses

 

 

614,188

 

 

 

(602,338

Net cash provided by operating activities

 

 

5,852,392

 

 

 

5,025,302

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchases of fixed assets

 

 

(916,634

)

 

 

(4,131

)

Purchases of marketable securities

 

 

(6,580,140

)

 

 

(3,937,835

)

Proceeds from maturities of marketable securities

 

 

2,200,000

 

 

 

3,400,000

 

Net cash used in investing activities

 

 

(5,296,774

 

 

(541,966

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

-

 

 

 

117,527

 

Payment of dividends to shareholders

 

 

(4,833,676

)

 

 

(4,830,826

)

Net cash used in financing activities

 

 

(4,833,676

)

 

 

(4,713,299

)

Decrease in cash and cash equivalents

 

 

(4,278,058

)

 

 

(229,963

)

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

10,283,550

 

 

 

1,669,896

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

6,005,492

 

 

$

1,439,933

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

Cash paid during the period for income taxes

 

$

-

 

 

$

1,195,542

 

 

See accompanying notes. 

 

7


Table of Contents

 

NVE CORPORATION

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

 

NOTE 1. DESCRIPTION OF BUSINESS

We develop and sell devices that use spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store, and transmit information. 

 

NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited financial statements of NVE Corporation are prepared consistent with accounting principles generally accepted in the United States and in accordance with Securities and Exchange Commission rules and regulations. In the opinion of management, these financial statements reflect all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the financial statements. Although we believe that the disclosures are adequate to make the information presented not misleading, certain disclosures have been omitted as allowed, and the Notes to Financial Statements have been condensed as permitted. It is suggested that these unaudited financial statements be read in conjunction with the audited financial statements and Notes included in our latest Annual Report on Form 10-K for the fiscal year ended March 31, 2024. The results of operations for the quarter ended June 30, 2024, are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2025.

 

Significant accounting policies

A description of our significant accounting policies and estimates is provided in Note 2 to the Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024. As of June 30, 2024, there were no changes to our significant accounting policies.

 

NOTE 3. NEW ACCOUNTING STANDARDS NOT YET ADOPTED

There were no additions to the new accounting standards not yet adopted as described in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

 

We do not expect the adoption of accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date to have a material impact on our financial statements when they are adopted.

 

NOTE 4. NET INCOME PER SHARE

Net income per basic share is computed based on the weighted-average number of common shares issued and outstanding during each period. Net income per diluted share amounts assume exercise of all stock options. The following tables show the components of diluted shares:

 

 

Quarter Ended June 30,

 

2024

 

2023

Weighted average common shares outstanding – basic

4,833,676

 

4,832,166

Dilutive effect of stock options

5,319

 

8,405

Shares used in computing net income per share – diluted

4,838,995

 

4,840,571

 

8


Table of Contents

 

NOTE 5. MARKETABLE SECURITIES

The following table shows the major categories of our marketable securities and their contractual maturities as of June 30, 2024:

 

 

Total

 

<1 Year

 

1–3 Years

 

3–5 Years

 

Money market funds

 

$

5,775,400

 

$

5,775,400

 

$

-

 

$

-

 

Corporate bonds

 

 

47,176,191

 

 

15,670,927

 

 

23,206,787

 

 

8,298,477

 

Total

 

$

52,951,591

 

$

21,446,327

 

$

23,206,787

 

$

8,298,477

 

 

Total marketable securities represented approximately 80% of our total assets as of June 30, 2024. Marketable securities as of June 30, 2024, had remaining maturities between four and 58 months.

 

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included on the balance sheets in “Marketable securities, short term” and “Marketable securities, long term.” Accrued interest receivables were $334,757 as of June 30, 2024, and $460,627 as of March 31, 2024, and are included in the balance sheets in “Prepaid expenses and other assets.”

 

We monitor the credit ratings of our marketable securities at least quarterly as reported by Standard & Poor’s. The following table summarizes the fair values of our marketable securities as of June 30, 2024, aggregated by credit rating:

 

Credit Rating

 

Fair Value

AAA

$

5,775,400

AA+

 

3,798,418

AA

 

9,553,228

AA-

 

21,145,888

A+

 

2,878,474

A

 

9,800,183

Total

$

52,951,591

 

The following table shows the estimated fair value of our marketable securities, aggregated by fair value hierarchy inputs used in estimating their fair values:

 

 

 

As of June 30, 2024

 

 

As of March 31, 2024

 

 

Level 1

 

 

Level 2

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Total

Money market funds

 

$

5,775,400

 

 

$

-

 

 

$

5,775,400

 

 

$

9,842,796

 

 

$

-

 

 

$

9,842,796

Corporate bonds

 

 

-

 

 

 

47,176,191

 

 

 

47,176,191

 

 

 

-

 

 

 

42,706,080

 

 

 

42,706,080

Total

 

$

5,775,400

 

 

$

47,176,191

 

 

$

52,951,591

 

 

$

9,842,796

 

 

$

42,706,080

 

 

$

52,548,876

 

The following table shows the amortized cost, fair value and gross unrealized holding gains and losses of our marketable securities as of June 30 and March 31, 2024:

 

 

 

As of June 30, 2024

 

 

As of March 31, 2024

 

 

Amortized

Cost

 

 

Gross

Unrealized

Holding

Gains

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

 

 

Amortized

Cost

 

 

Gross

Unrealized

Holding

Gains

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

Money market funds

 

$

5,775,400

 

 

$

-

 

 

$

-

 

 

$

5,775,400

 

 

$

9,842,796

 

 

$

-

 

 

$

-

 

 

$

9,842,796

Corporate bonds

 

 

48,134,879

 

 

 

-

 

 

 

(958,688

)

 

 

47,176,191

 

 

 

43,701,520

 

 

 

930

 

 

 

(996,370

)

 

 

42,706,080

Total

 

$

53,910,279

 

 

$

-

 

 

$

(958,688

)

 

$

52,951,591

 

 

$

53,544,316

 

 

$

930

 

 

$

(996,370

)

 

$

52,548,876

 

9


Table of Contents

 

The following table shows the gross unrealized holding losses and estimated fair value of our marketable securities for which an allowance for credit losses has not been recorded, aggregated by category of securities and length of time that individual securities had been in a continuous unrealized loss position as of June 30 and March 31, 2024.

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Estimated

Fair

Value

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

 

 

Gross

Unrealized

Holding

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

$

10,556,505

 

 

$

(23,647

)

 

$

36,619,686

 

 

$

(935,041

)

 

$

47,176,191

 

 

$

(958,688

)

Total

 

$

10,556,505

 

 

$

(23,647

)

 

$

36,619,686

 

 

$

(935,041

)

 

$

47,176,191

 

 

$

(958,688

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

$

3,154,764

 

 

$

(4,902

)

 

$

36,551,534

 

 

$

(991,468

)

 

$

39,706,298

 

 

$

(996,370

)

Total

 

$

3,154,764

 

 

$

(4,902

)

 

$

36,551,534

 

 

$

(991,468

)

 

$

39,706,298

 

 

$

(996,370

)

 

None of the securities were impaired at acquisition, and subsequent declines in fair value are attributable to interest rate increases. We do not intend to sell, and it is not more likely than not that we will be required to sell, these securities before recovery of their amortized cost basis. The issuers continue to make timely interest payments on these securities. Because we believe it is more likely than not we will recover the cost basis of our investments, we did not record any impairment attributable to credit losses.

 

None of the marketable securities purchased during the period had experienced more-than-insignificant deterioration in credit quality since its origination and were therefore not considered “Purchased Financial Assets with Credit Deterioration.”

 

Unrealized losses on our marketable securities and their tax effects are as follows:

 

 

 

Quarter Ended June 30,

 

 

 

2024

 

 

2023

 

Unrealized gain (loss) from marketable securities

 

$

36,751

 

 

$

(300,437

Tax effects

 

 

(8,041

 

 

65,736

 

Unrealized gain (loss) from marketable securities, net of tax

 

$

28,710

 

 

$

(234,701

)

 

NOTE 6. ALLOWANCE FOR CREDIT LOSSES ON ACCOUNTS RECEIVABLES

The following table shows a roll forward of the allowance for credit losses on our accounts receivable:

 

 

Allowance for credit losses as of March 31, 2024

 

$

15,000

Change in provision for current expected credit losses

 

 

-

Allowance for credit losses as of June 30, 2024

 

$

15,000

 

NOTE 7. INVENTORIES

Inventories are shown in the following table:

 

 

 

June 30, 2024

 

 

March 31, 2024

Raw materials

$

1,814,443

 

$

1,982,657

Work in process

 

3,058,150

 

 

2,641,085

Finished goods

 

2,292,039

 

 

2,534,843

Total inventories

$

7,164,632

 

$

7,158,585

 

NOTE 8. STOCK-BASED COMPENSATION

Stock-based compensation expense was $18,442 for the first quarter of fiscal 2025 and $10,536 for the first quarter of fiscal 2024. We calculate share-based compensation expense using the Black-Scholes-Merton standard option-pricing model.

 

10


 

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NOTE 9. INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of June 30, 2024, federal and state estimated tax liabilities of $912,411 were included in the balance sheet in “Accrued payroll and other.”

 

We had no unrecognized tax benefits as of June 30, 2024, and we do not expect any significant unrecognized tax benefits within 12 months of the reporting date. We recognize interest and penalties related to income tax matters in income tax expense. As of June 30, 2024, we had no accrued interest related to uncertain tax positions. The tax years 2020 through 2023 remain open to examination by the major taxing jurisdictions to which we are subject.

 

NOTE 10. LEASES

We conduct our operations in a leased facility under a non-cancellable lease expiring March 31, 2026. Our lease does not provide an implicit interest rate, so we used our incremental borrowing rate to determine the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. Details of our operating lease are as follows:

 

 

Quarter Ended June 30, 2024 

 

Operating lease cost

$

37,754

 

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

Operating cash flows for leases

$

45,341

 

Remaining lease term

21 months

 

Discount rate

 

3.5

%

 

The following table shows the maturities of lease liabilities as of June 30, 2024:

 

Year Ending March 31,

Operating Lease Liabilities

 

2025

 

136,930

 

2026

 

184,995

 

Total lease payments

 

321,925

 

Imputed lease interest

 

(9,275

)

Total lease liabilities

$

312,650

 

 

NOTE 11. STOCK REPURCHASE PROGRAM

On January 21, 2009, we announced that our Board of Directors authorized the repurchase of up to $2,500,000 of our Common Stock from time to time in open market, block, or privately negotiated transactions. The timing and extent of any repurchases depend on market conditions, the trading price of the company’s stock, and other factors, and subject to the restrictions relating to volume, price, and timing under applicable law. On August 27, 2015, we announced that our Board of Directors authorized up to $5,000,000 of additional repurchases. Our repurchase program does not have an expiration date and does not obligate us to purchase any shares. The Program may be modified or discontinued at any time without notice. We intend to finance any stock repurchases with cash provided by operating activities or maturing marketable securities. The remaining authorization was $3,520,369 as of June 30, 2024. We did not repurchase any of our Common Stock during the first quarter of fiscal 2025.

 

NOTE 12. INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS

All of our employees are eligible to participate in our 401(k) savings plan the first quarter after reaching age 18. Employees may contribute up to the Internal Revenue Code maximum. We make matching contributions of 100% of the first 3% of participants’ salary deferral contributions. Our matching contributions were $28,767 for the first quarter of fiscal 2025 and $27,078 for the first quarter of fiscal 2024.

 

NOTE 13. SUBSEQUENT EVENTS

On July 17, 2024, we announced that our Board of Directors had declared a quarterly cash dividend of $1.00 per share of Common Stock to be paid August 30, 2024, to shareholders of record as of the close of business July 29, 2024.

 

11


Table of Contents

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

Forward-looking statements

Some of the statements made in this Report or in the documents incorporated by reference in this Report and in other materials filed or to be filed by us with the Securities and Exchange Commission (“SEC”) as well as information included in verbal or written statements made by us constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to the safe harbor provisions of the reform act. Forward-looking statements may be identified by the use of terminology such as may, will, expect, anticipate, intend, believe, estimate, should, or continue, or the negatives of these terms or other variations on these words or comparable terminology. To the extent that this Report contains forward-looking statements regarding the financial condition, operating results, business prospects, or any other aspect of NVE, you should be aware that our actual financial condition, operating results, and business performance may differ materially from that projected or estimated by us in the forward-looking statements. We have attempted to identify, in context, some of the factors that we currently believe may cause actual future experience and results to differ from their current expectations. These differences may be caused by a variety of factors, including but not limited to risks related to our reliance on several large customers for a significant percentage of revenue, our dependence on critical suppliers and packaging vendors, uncertainties related to the economic environments in the industries we serve, uncertainties related to future sales and revenues, risks of credit losses, risks and uncertainties related to future stock repurchases and dividend payments, and other specific risks that may be alluded to in this Report or in the documents incorporated by reference in this Report.

 

Further information regarding our risks and uncertainties is contained in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

 

General

NVE Corporation referred to as NVE, we, us, or our, develops and sells devices that use spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store, and transmit information. We manufacture high-performance spintronic products including sensors and couplers that are used to acquire and transmit data.

 

Critical accounting policies

A description of our critical accounting policies is provided in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024. As of June 30, 2024, our critical accounting policies and estimates continued to include investment valuation, inventory valuation, and deferred tax assets estimation.

 

12


Table of Contents

 

Quarter ended June 30, 2024, compared to quarter ended June 30, 2023

The table shown below summarizes the percentage of revenue and quarter-to-quarter changes for various items:

 

 

Percentage of Revenue

Quarter Ended June 30,

 

 

Quarter-

to-Quarter

 

 

2024

 

 

2023

 

 

Change

 

Revenue

 

 

 

 

 

 

 

 

Product sales

97.5

%

 

98.5

%

 

(24.0

) %

Contract research and development

2.5

%

 

1.5

%

 

27.5

%

Total revenue

100.0

%

 

100.0

%

 

(23.2

) %

Cost of sales

14.4

%

 

23.5

%

 

(53.1

) %

Gross profit

85.6

%

 

76.5

%

 

(14.0

) %

Expenses

 

 

 

 

 

 

 

 

Research and development

13.0

%

 

7.9

%

 

26.2

 %

Selling, general, and administrative

7.9

%

 

5.4

%

 

13.7

 %

Credit loss expense

-

%

 

2.4

%

 

-

%

Total expenses

20.9

%

 

15.7

%

 

2.6

 %

Income from operations

64.7

%

 

60.8

%

 

(18.2

) %

Interest income

7.3

%

 

4.9

%

 

13.2

 %

Income before taxes

72.0

%

 

65.7

%

 

(15.9

) %

Provision for income taxes

11.6

%

 

15.8

%

 

(44.0

) %

Net income

60.4

%

 

49.9

%

 

(7.0

) %

 

Total revenue for the quarter ended June 30, 2024 (the first quarter of fiscal 2025) decreased 23% compared to the quarter ended June 30, 2023 (the first quarter of fiscal 2024). The decrease was due to a 24% decrease in product sales, partially offset by a 28% increase in contract research and development revenue. The decrease in product sales was due to decreased purchases by existing customers. The increase in contract research and development revenue was due to new contracts.

 

Gross margin percentage for the first quarter of fiscal 2025 was 86%, compared to 77% the prior-year quarter. The increase in gross margin percentage was due to a more profitable product mix and a larger portion of direct rather than distributor sales.

 

Total expenses increased 3% for the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024 due to a 26% increase in research and development expense and a 14% increase in selling, general, and administrative expense, partially offset by a $212,440 decrease in credit loss expense. The increase in research and development expense was due to increased new product development activities. The increase in selling, general, and administrative expenses was primarily due to increased sales and marketing activities. The decrease in credit loss expense was due to a favorable change in our estimate of expected credit losses as of June 30, 2024.

 

Interest income for the first quarter of fiscal 2025 increased 13% due to higher yields on securities purchased after June 30, 2023.

 

Our effective tax rate, which is the provision for income taxes as a percentage of income before taxes, decreased to 16% for the first quarter of fiscal 2025 compared to 24% for the first quarter of fiscal 2024. The decrease was due to changes in the timing and amounts of federal tax credits and deductions.

 

The 7% decrease in net income in the first quarter of fiscal 2025 compared to the prior-year quarter was primarily due to decreased revenue, partially offset by increased gross profit margin as a percentage of revenue, increased interest income, and a lower effective tax rate.

 

13


 

Table of Contents

 

Liquidity and Capital Resources

 

Overview

Cash and cash equivalents were $6,005,492 as of June 30, 2024, compared to $10,283,550 as of March 31, 2024. The $4,278,058 decrease in cash and cash equivalents during the first quarter of fiscal 2025 was due to $4,833,676 of cash used in financing activities and $5,296,774 of net cash used in investing activities, partially offset by $5,852,392 in net cash provided by operating activities.

 

Operating Activities

Net cash provided by operating activities related to product sales and research and development contract revenue was our primary source of working capital for the current and prior-year quarters. Net cash provided by operating activities increased 16% to $5,852,392 for the first quarter of fiscal 2025 compared to $5,025,302 for the first quarter of fiscal 2024.

 

Accounts receivable decreased $1,044,815 during the first quarter of fiscal 2025 primarily due to decreased revenue and the timing of customer payments.

 

Accounts payable and accrued expenses increased $614,188 primarily due to increased federal income tax liability and changes in the timing of estimated tax payments.

 

Investing Activities

Cash used by investing activities during the quarter ended June 30, 2024, consisted of $6,580,140 of marketable securities purchases and $916,634 of fixed asset purchases, partially offset by $2,200,000 in proceeds from maturities of marketable securities. Fixed asset purchases consisted of a $916,634 down payment on production equipment expected to be delivered in fiscal 2026. We plan to significantly increase fixed asset purchases in fiscal 2025 and 2026 compared to fiscal 2024 to support increases in production capacity and new product development.

 

Financing Activities

Cash used in financing activities during the quarter ended June 30, 2024, consisted of $4,833,676 of cash dividends paid to shareholders.

 

In addition to cash dividends to shareholders paid in the first quarter of fiscal 2025, on July 17, 2024, we announced that our Board of Directors had declared a cash dividend of $1.00 per share of Common Stock, or $4,833,676 based on shares outstanding as of June 30, 2024, to be paid on August 30, 2024.

 

We plan to fund dividends through cash provided by operating activities and proceeds from maturities of marketable securities. All future dividends will be subject to Board approval and subject to the company’s results of operations, cash and marketable security balances, estimates of future cash requirements, and other factors the Board may deem relevant. Furthermore, dividends may be modified or discontinued at any time without notice.

 

14


Table of Contents

 

Item 4. Controls and Procedures.

 

Disclosure Controls and Procedures

Management, with the participation of the Chief Executive Officer and Principal Financial Officer, has performed an evaluation of our disclosure controls and procedures that are defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this Report. This evaluation included consideration of the controls, processes, and procedures that are designed to ensure that information required to be disclosed by us in the reports we file under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Our management concluded that, as of June 30, 2024, our disclosure controls and procedures were effective.

 

Changes in Internal Controls

During the quarter ended June 30, 2024, there was no change in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

 

PART IIOTHER INFORMATION

 

Item 1. Legal Proceedings.

In the ordinary course of business, we may become involved in litigation. At this time, we are not aware of any material pending or threatened legal proceedings or other proceedings contemplated by governmental authorities that we expect would have a material adverse impact on our future results of operation and financial condition.

 

Item 1A. Risk Factors.

There have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

 

Item 4. Mine Safety Disclosures.

None.

 

15


 

Table of Contents

 

Item 6. Exhibits. 

 

Exhibit #

Description

 

 

31.1

Certification by Daniel A. Baker pursuant to Rule 13a-14(a)/15d-14(a).

 

 

31.2

Certification by Daniel Nelson pursuant to Rule 13a-14(a)/15d-14(a).

 

 

32

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 

101.INS

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

 

 

101.SCH     

Inline XBRL Taxonomy Extension Schema Document

 

 

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

 

 

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

 

 

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

 

 

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

 

 

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

 

16


 

Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

NVE CORPORATION

 

 

 

 (Registrant)

 

 

 

 

 

July 17, 2024

 

/s/ DANIEL A. BAKER 

 

Date

 

Daniel A. Baker

 

 

 

President and Chief Executive Officer

 

 

 

 

 

July 17, 2024

 

/s/ DANIEL NELSON

 

Date

 

Daniel Nelson

 

 

 

Principal Financial Officer

 

 

 

17

Exhibit 31.1

 

CERTIFICATION

 

I, Daniel A. Baker, certify that:

 

1.                                        I have reviewed this Quarterly Report on Form 10-Q of NVE Corporation;

 

2.                                        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.                                        Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.                                        The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)                                  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)                                  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

 

(c)                                  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)                                  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.                                        The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)                                  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)                                 Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 17, 2024

 

 

 

/s/ DANIEL A. BAKER

 

 

Daniel A. Baker

 

President and Chief Executive Officer

 

Exhibit 31.2

 

CERTIFICATION

 

I, Daniel Nelson, certify that:

 

1.                                        I have reviewed this Quarterly Report on Form 10-Q of NVE Corporation;

 

2.                                        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.                                        Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.                                        The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)                                  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)                                  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

 

(c)                                  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)                                  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.                                        The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)                                  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)                                 Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 17, 2024

 

 

 

/s/ DANIEL NELSON

 

 

Daniel Nelson

 

Principal Financial Officer

 

Exhibit 32

 

 

CERTIFICATION PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)

 

The undersigned certify pursuant to 18 U.S.C. Section 1350, that to the undersigned’s knowledge:

 

1. The accompanying Annual Report of NVE Corporation (the “Company”) on Form 10-Q for the quarter ended June 30, 2024, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

Date: July 17, 2024

 

 

/s/ DANIEL A. BAKER

 

Daniel A. Baker

President and Chief Executive Officer

 

 

/s/ DANIEL NELSON

 

Daniel Nelson

Principal Financial Officer

 

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

v3.24.2
Document and Entity Information
3 Months Ended
Jun. 30, 2024
$ / shares
shares
Details  
Registrant CIK 0000724910
Fiscal Year End --03-31
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Jun. 30, 2024
Document Transition Report false
Securities Act File Number 000-12196
Entity Registrant Name NVE CORP
Entity Incorporation, State or Country Code MN
Entity Tax Identification Number 41-1424202
Entity Address, Address Line One 1409 Valley View Road
Entity Address, City or Town Eden Prairie
Entity Address, State or Province MN
Entity Address, Postal Zip Code 55344
Entity Address, Address Description Address of principal executive offices
City Area Code 952
Local Phone Number 829-9217
Phone Fax Number Description Registrant’s telephone number, including area code
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Non-accelerated Filer
Entity Small Business true
Entity Emerging Growth Company false
Entity Shell Company false
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol NVEC
Security Exchange Name NASDAQ
Entity Listing, Par Value Per Share | $ / shares $ 0.01
Entity Common Stock, Shares Outstanding | shares 4,833,676
Amendment Flag false
Document Fiscal Year Focus 2025
Document Fiscal Period Focus Q1
v3.24.2
BALANCE SHEETS (December 31, 2023 Unaudited) - USD ($)
Jun. 30, 2024
Mar. 31, 2024
Current assets    
Cash and cash equivalents $ 6,005,492 $ 10,283,550
Marketable securities, short-term (amortized cost of $16,022,057 as of June 30, 2024, and $12,283,630 as of March 31, 2024) 15,670,927 11,917,779
Accounts receivable, net of allowance for credit losses of $15,000 as of June 30, and March 31, 2024 2,100,018 3,144,833
Inventories 7,164,632 7,158,585
Prepaid expenses and other assets 515,383 689,349
Total current assets 31,456,452 33,194,096
Fixed assets    
Machinery and equipment 11,417,730 10,501,096
Leasehold improvements 1,956,309 1,956,309
Less accumulated depreciation 11,478,977 11,403,383
Net fixed assets 1,895,062 1,054,022
Deferred tax assets 1,593,506 1,453,704
Marketable securities, long-term (amortized cost of $32,112,822 as of June 30, 2024, and $31,417,890 as of March 31, 2024) 31,505,264 30,788,301
Right-of-use asset - operating lease 255,000 289,910
Total assets 66,705,284 66,780,033
Current liabilities    
Accounts payable 174,243 127,154
Accrued payroll and other 1,338,811 729,215
Operating lease liability 180,262 179,372
Total current liabilities 1,693,316 1,035,741
Long-term operating lease liability 132,388 175,775
Total liabilities 1,825,704 1,211,516
Shareholders' equity    
Common Stock, Value 48,337 48,337
Additional paid-in capital 19,573,254 19,554,812
Accumulated other comprehensive loss (748,927) (777,637)
Retained earnings 46,006,916 46,743,005
Total shareholders' equity 64,879,580 65,568,517
Total liabilities and shareholders' equity $ 66,705,284 $ 66,780,033
v3.24.2
BALANCE SHEETS (December 31, 2023 Unaudited) - Parenthetical - USD ($)
Jun. 30, 2024
Mar. 31, 2024
BALANCE SHEETS (December 31, 2023 Unaudited)    
Debt Instrument, Unamortized Discount, Current $ 16,022,057 $ 12,283,630
Accounts Receivable, Allowance for Credit Loss 15,000 15,000
Debt Instrument, Unamortized Discount, Noncurrent $ 32,112,822 $ 31,417,890
Common Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Common Stock, Shares Authorized 6,000,000 6,000,000
Common Stock, Shares, Issued 4,833,676 4,833,676
Common Stock, Shares, Outstanding 4,833,676 4,833,676
v3.24.2
STATEMENTS OF INCOME (Unaudited) - USD ($)
3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Revenue    
Product sales $ 6,615,859 $ 8,700,092
Contract research and development 167,385 131,322
Total revenue 6,783,244 8,831,414
Cost of sales 975,494 2,079,623
Gross profit 5,807,750 6,751,791
Expenses    
Research and development 878,528 695,992
Selling, general, and administrative 540,404 475,115
Credit loss expense 0 212,440
Total expenses 1,418,932 1,383,547
Income from operations 4,388,818 5,368,244
Interest income 493,959 436,526
Income before taxes 4,882,777 5,804,770
Provision for income taxes 785,190 1,401,040
Net income $ 4,097,587 $ 4,403,730
Net income per share - basic $ 0.85 $ 0.91
Net income per share - diluted 0.85 0.91
Cash dividends declared per common share $ 1 $ 1
Weighted average shares outstanding    
Weighted Average Number of Shares Outstanding, Basic 4,833,676 4,832,166
Weighted Average Number of Shares Outstanding, Diluted 4,838,995 4,840,571
v3.24.2
STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($)
3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)    
Net income $ 4,097,587 $ 4,403,730
Unrealized loss from marketable securities, net of tax 28,710 (234,701)
Comprehensive income $ 4,126,297 $ 4,169,029
v3.24.2
STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($)
Common Stock
Additional Paid-in Capital
AOCI Including Portion Attributable to Noncontrolling Interest
Retained Earnings
Total
Equity Balance, Starting at Mar. 31, 2023 $ 48,308 $ 19,295,442 $ (1,213,858) $ 48,949,610 $ 67,079,502
Shares Outstanding, Starting at Mar. 31, 2023 4,830,826        
Unrealized loss from marketable securities, net of tax     (234,701)   (234,701)
Net income       4,403,730 4,403,730
Total comprehensive income         4,169,029
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture   10,536     10,536
Cash dividends declared ($1.00 per share of common stock)       (4,830,826) (4,830,826)
Stock Issued During Period, Value, Stock Options Exercised $ 26 117,501     117,527
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period 2,575        
Shares Outstanding, Ending at Jun. 30, 2023 4,833,401        
Equity Balance, Ending at Jun. 30, 2023 $ 48,334 19,423,479 (1,448,559) 48,522,514 66,545,768
Equity Balance, Starting at Mar. 31, 2024 $ 48,337 19,554,812 (777,637) 46,743,005 65,568,517
Shares Outstanding, Starting at Mar. 31, 2024 4,833,676        
Unrealized loss from marketable securities, net of tax     28,710   28,710
Net income       4,097,587 4,097,587
Total comprehensive income         4,126,297
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture   18,442     18,442
Cash dividends declared ($1.00 per share of common stock)       (4,833,676) (4,833,676)
Shares Outstanding, Ending at Jun. 30, 2024 4,833,676        
Equity Balance, Ending at Jun. 30, 2024 $ 48,337 $ 19,573,254 $ (748,927) $ 46,006,916 $ 64,879,580
v3.24.2
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
OPERATING ACTIVITIES    
Net income $ 4,097,587 $ 4,403,730
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation 75,594 77,022
Corporate bonds discount amortization (53,219) (17,565)
Provision for current estimate of credit losses 0 212,440
Stock-based compensation 18,442 10,536
Deferred income taxes (147,844) (87,000)
Changes in operating assets and liabilities    
Accounts receivable 1,044,815 913,872
Inventories (6,047) 124,848
Prepaid expenses and other assets 208,876 (10,243)
Accounts payable and accrued expenses 614,188 (602,338)
Net cash provided by operating activities 5,852,392 5,025,302
INVESTING ACTIVITIES    
Purchases of fixed assets (916,634) (4,131)
Purchases of marketable securities (6,580,140) (3,937,835)
Proceeds from maturities of marketable securities 2,200,000 3,400,000
Net cash used in investing activities (5,296,774) (541,966)
FINANCING ACTIVITIES    
Proceeds from exercise of stock options 0 117,527
Payment of dividends to shareholders (4,833,676) (4,830,826)
Net cash used in financing activities (4,833,676) (4,713,299)
Decrease in cash and cash equivalents (4,278,058) (229,963)
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Beginning Balance 10,283,550 1,669,896
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Ending Balance 6,005,492 1,439,933
Supplemental disclosures of cash flow information    
Cash paid during the period for income taxes $ 0 $ 1,195,542
v3.24.2
NOTE 1. DESCRIPTION OF BUSINESS
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 1. DESCRIPTION OF BUSINESS

NOTE 1. DESCRIPTION OF BUSINESS

We develop and sell devices that use spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store, and transmit information. 

v3.24.2
NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited financial statements of NVE Corporation are prepared consistent with accounting principles generally accepted in the United States and in accordance with Securities and Exchange Commission rules and regulations. In the opinion of management, these financial statements reflect all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the financial statements. Although we believe that the disclosures are adequate to make the information presented not misleading, certain disclosures have been omitted as allowed, and the Notes to Financial Statements have been condensed as permitted. It is suggested that these unaudited financial statements be read in conjunction with the audited financial statements and Notes included in our latest Annual Report on Form 10-K for the fiscal year ended March 31, 2024. The results of operations for the quarter ended June 30, 2024, are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2025.

 

Significant accounting policies

A description of our significant accounting policies and estimates is provided in Note 2 to the Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024. As of June 30, 2024, there were no changes to our significant accounting policies.

v3.24.2
NOTE 3. NEW ACCOUNTING STANDARDS NOT YET ADOPTED
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 3. NEW ACCOUNTING STANDARDS NOT YET ADOPTED

NOTE 3. NEW ACCOUNTING STANDARDS NOT YET ADOPTED

There were no additions to the new accounting standards not yet adopted as described in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

 

We do not expect the adoption of accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date to have a material impact on our financial statements when they are adopted.

v3.24.2
NOTE 4. NET INCOME PER SHARE
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 4. NET INCOME PER SHARE

NOTE 4. NET INCOME PER SHARE

Net income per basic share is computed based on the weighted-average number of common shares issued and outstanding during each period. Net income per diluted share amounts assume exercise of all stock options. The following tables show the components of diluted shares:

 

 

Quarter Ended June 30,

 

2024

 

2023

Weighted average common shares outstanding – basic

4,833,676

 

4,832,166

Dilutive effect of stock options

5,319

 

8,405

Shares used in computing net income per share – diluted

4,838,995

 

4,840,571

v3.24.2
NOTE 5. MARKETABLE SECURITIES
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 5. MARKETABLE SECURITIES

NOTE 5. MARKETABLE SECURITIES

The following table shows the major categories of our marketable securities and their contractual maturities as of June 30, 2024:

 

 

Total

 

<1 Year

 

1–3 Years

 

3–5 Years

 

Money market funds

 

$

5,775,400

 

$

5,775,400

 

$

-

 

$

-

 

Corporate bonds

 

 

47,176,191

 

 

15,670,927

 

 

23,206,787

 

 

8,298,477

 

Total

 

$

52,951,591

 

$

21,446,327

 

$

23,206,787

 

$

8,298,477

 

 

Total marketable securities represented approximately 80% of our total assets as of June 30, 2024. Marketable securities as of June 30, 2024, had remaining maturities between four and 58 months.

 

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included on the balance sheets in “Marketable securities, short term” and “Marketable securities, long term.” Accrued interest receivables were $334,757 as of June 30, 2024, and $460,627 as of March 31, 2024, and are included in the balance sheets in “Prepaid expenses and other assets.”

 

We monitor the credit ratings of our marketable securities at least quarterly as reported by Standard & Poor’s. The following table summarizes the fair values of our marketable securities as of June 30, 2024, aggregated by credit rating:

 

Credit Rating

 

Fair Value

AAA

$

5,775,400

AA+

 

3,798,418

AA

 

9,553,228

AA-

 

21,145,888

A+

 

2,878,474

A

 

9,800,183

Total

$

52,951,591

 

The following table shows the estimated fair value of our marketable securities, aggregated by fair value hierarchy inputs used in estimating their fair values:

 

 

 

As of June 30, 2024

 

 

As of March 31, 2024

 

 

Level 1

 

 

Level 2

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Total

Money market funds

 

$

5,775,400

 

 

$

-

 

 

$

5,775,400

 

 

$

9,842,796

 

 

$

-

 

 

$

9,842,796

Corporate bonds

 

 

-

 

 

 

47,176,191

 

 

 

47,176,191

 

 

 

-

 

 

 

42,706,080

 

 

 

42,706,080

Total

 

$

5,775,400

 

 

$

47,176,191

 

 

$

52,951,591

 

 

$

9,842,796

 

 

$

42,706,080

 

 

$

52,548,876

 

The following table shows the amortized cost, fair value and gross unrealized holding gains and losses of our marketable securities as of June 30 and March 31, 2024:

 

 

 

As of June 30, 2024

 

 

As of March 31, 2024

 

 

Amortized

Cost

 

 

Gross

Unrealized

Holding

Gains

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

 

 

Amortized

Cost

 

 

Gross

Unrealized

Holding

Gains

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

Money market funds

 

$

5,775,400

 

 

$

-

 

 

$

-

 

 

$

5,775,400

 

 

$

9,842,796

 

 

$

-

 

 

$

-

 

 

$

9,842,796

Corporate bonds

 

 

48,134,879

 

 

 

-

 

 

 

(958,688

)

 

 

47,176,191

 

 

 

43,701,520

 

 

 

930

 

 

 

(996,370

)

 

 

42,706,080

Total

 

$

53,910,279

 

 

$

-

 

 

$

(958,688

)

 

$

52,951,591

 

 

$

53,544,316

 

 

$

930

 

 

$

(996,370

)

 

$

52,548,876

The following table shows the gross unrealized holding losses and estimated fair value of our marketable securities for which an allowance for credit losses has not been recorded, aggregated by category of securities and length of time that individual securities had been in a continuous unrealized loss position as of June 30 and March 31, 2024.

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Estimated

Fair

Value

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

 

 

Gross

Unrealized

Holding

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

$

10,556,505

 

 

$

(23,647

)

 

$

36,619,686

 

 

$

(935,041

)

 

$

47,176,191

 

 

$

(958,688

)

Total

 

$

10,556,505

 

 

$

(23,647

)

 

$

36,619,686

 

 

$

(935,041

)

 

$

47,176,191

 

 

$

(958,688

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

$

3,154,764

 

 

$

(4,902

)

 

$

36,551,534

 

 

$

(991,468

)

 

$

39,706,298

 

 

$

(996,370

)

Total

 

$

3,154,764

 

 

$

(4,902

)

 

$

36,551,534

 

 

$

(991,468

)

 

$

39,706,298

 

 

$

(996,370

)

 

None of the securities were impaired at acquisition, and subsequent declines in fair value are attributable to interest rate increases. We do not intend to sell, and it is not more likely than not that we will be required to sell, these securities before recovery of their amortized cost basis. The issuers continue to make timely interest payments on these securities. Because we believe it is more likely than not we will recover the cost basis of our investments, we did not record any impairment attributable to credit losses.

 

None of the marketable securities purchased during the period had experienced more-than-insignificant deterioration in credit quality since its origination and were therefore not considered “Purchased Financial Assets with Credit Deterioration.”

 

Unrealized losses on our marketable securities and their tax effects are as follows:

 

 

 

Quarter Ended June 30,

 

 

 

2024

 

 

2023

 

Unrealized gain (loss) from marketable securities

 

$

36,751

 

 

$

(300,437

Tax effects

 

 

(8,041

 

 

65,736

 

Unrealized gain (loss) from marketable securities, net of tax

 

$

28,710

 

 

$

(234,701

)

v3.24.2
NOTE 6. ALLOWANCE FOR CREDIT LOSSES ON ACCOUNTS RECEIVABLES
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 6. ALLOWANCE FOR CREDIT LOSSES ON ACCOUNTS RECEIVABLES

NOTE 6. ALLOWANCE FOR CREDIT LOSSES ON ACCOUNTS RECEIVABLES

The following table shows a roll forward of the allowance for credit losses on our accounts receivable:

 

 

Allowance for credit losses as of March 31, 2024

 

$

15,000

Change in provision for current expected credit losses

 

 

-

Allowance for credit losses as of June 30, 2024

 

$

15,000

v3.24.2
NOTE 7. INVENTORIES
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 7. INVENTORIES

NOTE 7. INVENTORIES

Inventories are shown in the following table:

 

 

 

June 30, 2024

 

 

March 31, 2024

Raw materials

$

1,814,443

 

$

1,982,657

Work in process

 

3,058,150

 

 

2,641,085

Finished goods

 

2,292,039

 

 

2,534,843

Total inventories

$

7,164,632

 

$

7,158,585

v3.24.2
NOTE 8. STOCK-BASED COMPENSATION
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 8. STOCK-BASED COMPENSATION

NOTE 8. STOCK-BASED COMPENSATION

Stock-based compensation expense was $18,442 for the first quarter of fiscal 2025 and $10,536 for the first quarter of fiscal 2024. We calculate share-based compensation expense using the Black-Scholes-Merton standard option-pricing model.

v3.24.2
NOTE 9. INCOME TAXES
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 9. INCOME TAXES

NOTE 9. INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of June 30, 2024, federal and state estimated tax liabilities of $912,411 were included in the balance sheet in “Accrued payroll and other.”

 

We had no unrecognized tax benefits as of June 30, 2024, and we do not expect any significant unrecognized tax benefits within 12 months of the reporting date. We recognize interest and penalties related to income tax matters in income tax expense. As of June 30, 2024, we had no accrued interest related to uncertain tax positions. The tax years 2020 through 2023 remain open to examination by the major taxing jurisdictions to which we are subject.

v3.24.2
NOTE 10. LEASES
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 10. LEASES

NOTE 10. LEASES

We conduct our operations in a leased facility under a non-cancellable lease expiring March 31, 2026. Our lease does not provide an implicit interest rate, so we used our incremental borrowing rate to determine the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. Details of our operating lease are as follows:

 

 

Quarter Ended June 30, 2024 

 

Operating lease cost

$

37,754

 

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

Operating cash flows for leases

$

45,341

 

Remaining lease term

21 months

 

Discount rate

 

3.5

%

 

The following table shows the maturities of lease liabilities as of June 30, 2024:

 

Year Ending March 31,

Operating Lease Liabilities

 

2025

 

136,930

 

2026

 

184,995

 

Total lease payments

 

321,925

 

Imputed lease interest

 

(9,275

)

Total lease liabilities

$

312,650

 

v3.24.2
NOTE 11. STOCK REPURCHASE PROGRAM
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 11. STOCK REPURCHASE PROGRAM

NOTE 11. STOCK REPURCHASE PROGRAM

On January 21, 2009, we announced that our Board of Directors authorized the repurchase of up to $2,500,000 of our Common Stock from time to time in open market, block, or privately negotiated transactions. The timing and extent of any repurchases depend on market conditions, the trading price of the company’s stock, and other factors, and subject to the restrictions relating to volume, price, and timing under applicable law. On August 27, 2015, we announced that our Board of Directors authorized up to $5,000,000 of additional repurchases. Our repurchase program does not have an expiration date and does not obligate us to purchase any shares. The Program may be modified or discontinued at any time without notice. We intend to finance any stock repurchases with cash provided by operating activities or maturing marketable securities. The remaining authorization was $3,520,369 as of June 30, 2024. We did not repurchase any of our Common Stock during the first quarter of fiscal 2025.

v3.24.2
NOTE 12. INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 12. INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS

NOTE 12. INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS

All of our employees are eligible to participate in our 401(k) savings plan the first quarter after reaching age 18. Employees may contribute up to the Internal Revenue Code maximum. We make matching contributions of 100% of the first 3% of participants’ salary deferral contributions. Our matching contributions were $28,767 for the first quarter of fiscal 2025 and $27,078 for the first quarter of fiscal 2024.

v3.24.2
NOTE 13. SUBSEQUENT EVENTS
3 Months Ended
Jun. 30, 2024
Notes  
NOTE 13. SUBSEQUENT EVENTS

NOTE 13. SUBSEQUENT EVENTS

On July 17, 2024, we announced that our Board of Directors had declared a quarterly cash dividend of $1.00 per share of Common Stock to be paid August 30, 2024, to shareholders of record as of the close of business July 29, 2024.

v3.24.2
NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies)
3 Months Ended
Jun. 30, 2024
Policies  
Basis of Presentation

Basis of Presentation

The accompanying unaudited financial statements of NVE Corporation are prepared consistent with accounting principles generally accepted in the United States and in accordance with Securities and Exchange Commission rules and regulations. In the opinion of management, these financial statements reflect all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the financial statements. Although we believe that the disclosures are adequate to make the information presented not misleading, certain disclosures have been omitted as allowed, and the Notes to Financial Statements have been condensed as permitted. It is suggested that these unaudited financial statements be read in conjunction with the audited financial statements and Notes included in our latest Annual Report on Form 10-K for the fiscal year ended March 31, 2024. The results of operations for the quarter ended June 30, 2024, are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2025.

v3.24.2
NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES: Significant accounting policies (Policies)
3 Months Ended
Jun. 30, 2024
Policies  
Significant accounting policies

Significant accounting policies

A description of our significant accounting policies and estimates is provided in Note 2 to the Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024. As of June 30, 2024, there were no changes to our significant accounting policies.

v3.24.2
NOTE 6. ALLOWANCE FOR CREDIT LOSSES ON ACCOUNTS RECEIVABLES: Schedule of Accounts, Notes, Loans and Financing Receivable (Policies)
3 Months Ended
Jun. 30, 2024
Policies  
Schedule of Accounts, Notes, Loans and Financing Receivable

 

 

Allowance for credit losses as of March 31, 2024

 

$

15,000

Change in provision for current expected credit losses

 

 

-

Allowance for credit losses as of June 30, 2024

 

$

15,000

v3.24.2
NOTE 4. NET INCOME PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Tables)
3 Months Ended
Jun. 30, 2024
Tables/Schedules  
Schedule of Earnings Per Share, Basic and Diluted

 

 

Quarter Ended June 30,

 

2024

 

2023

Weighted average common shares outstanding – basic

4,833,676

 

4,832,166

Dilutive effect of stock options

5,319

 

8,405

Shares used in computing net income per share – diluted

4,838,995

 

4,840,571

v3.24.2
NOTE 5. MARKETABLE SECURITIES: Contractual maturities of marketable securities (Tables)
3 Months Ended
Jun. 30, 2024
Tables/Schedules  
Contractual maturities of marketable securities

 

 

Total

 

<1 Year

 

1–3 Years

 

3–5 Years

 

Money market funds

 

$

5,775,400

 

$

5,775,400

 

$

-

 

$

-

 

Corporate bonds

 

 

47,176,191

 

 

15,670,927

 

 

23,206,787

 

 

8,298,477

 

Total

 

$

52,951,591

 

$

21,446,327

 

$

23,206,787

 

$

8,298,477

 

v3.24.2
NOTE 5. MARKETABLE SECURITIES: Fair values of our marketable securities aggregated by credit rating (Tables)
3 Months Ended
Jun. 30, 2024
Tables/Schedules  
Fair values of our marketable securities aggregated by credit rating

 

Credit Rating

 

Fair Value

AAA

$

5,775,400

AA+

 

3,798,418

AA

 

9,553,228

AA-

 

21,145,888

A+

 

2,878,474

A

 

9,800,183

Total

$

52,951,591

v3.24.2
NOTE 5. MARKETABLE SECURITIES: Estimated fair value of marketable securities aggregated by fair value hierarchy inputs used in estimating their fair values (Tables)
3 Months Ended
Jun. 30, 2024
Tables/Schedules  
Estimated fair value of marketable securities aggregated by fair value hierarchy inputs used in estimating their fair values

 

 

 

As of June 30, 2024

 

 

As of March 31, 2024

 

 

Level 1

 

 

Level 2

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Total

Money market funds

 

$

5,775,400

 

 

$

-

 

 

$

5,775,400

 

 

$

9,842,796

 

 

$

-

 

 

$

9,842,796

Corporate bonds

 

 

-

 

 

 

47,176,191

 

 

 

47,176,191

 

 

 

-

 

 

 

42,706,080

 

 

 

42,706,080

Total

 

$

5,775,400

 

 

$

47,176,191

 

 

$

52,951,591

 

 

$

9,842,796

 

 

$

42,706,080

 

 

$

52,548,876

v3.24.2
NOTE 5. MARKETABLE SECURITIES: Amortized cost, fair value and gross unrealized holding gains and losses of marketable securities (Tables)
3 Months Ended
Jun. 30, 2024
Tables/Schedules  
Amortized cost, fair value and gross unrealized holding gains and losses of marketable securities

 

 

 

As of June 30, 2024

 

 

As of March 31, 2024

 

 

Amortized

Cost

 

 

Gross

Unrealized

Holding

Gains

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

 

 

Amortized

Cost

 

 

Gross

Unrealized

Holding

Gains

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

Money market funds

 

$

5,775,400

 

 

$

-

 

 

$

-

 

 

$

5,775,400

 

 

$

9,842,796

 

 

$

-

 

 

$

-

 

 

$

9,842,796

Corporate bonds

 

 

48,134,879

 

 

 

-

 

 

 

(958,688

)

 

 

47,176,191

 

 

 

43,701,520

 

 

 

930

 

 

 

(996,370

)

 

 

42,706,080

Total

 

$

53,910,279

 

 

$

-

 

 

$

(958,688

)

 

$

52,951,591

 

 

$

53,544,316

 

 

$

930

 

 

$

(996,370

)

 

$

52,548,876

v3.24.2
NOTE 5. MARKETABLE SECURITIES: Gross unrealized holding losses and estimated fair value of marketable securities for which an allowance for credit losses has not been recorded (Tables)
3 Months Ended
Jun. 30, 2024
Tables/Schedules  
Gross unrealized holding losses and estimated fair value of marketable securities for which an allowance for credit losses has not been recorded

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Estimated

Fair

Value

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

 

 

Gross

Unrealized

Holding

Losses

 

 

Estimated

Fair

Value

 

 

Gross

Unrealized

Holding

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

$

10,556,505

 

 

$

(23,647

)

 

$

36,619,686

 

 

$

(935,041

)

 

$

47,176,191

 

 

$

(958,688

)

Total

 

$

10,556,505

 

 

$

(23,647

)

 

$

36,619,686

 

 

$

(935,041

)

 

$

47,176,191

 

 

$

(958,688

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

$

3,154,764

 

 

$

(4,902

)

 

$

36,551,534

 

 

$

(991,468

)

 

$

39,706,298

 

 

$

(996,370

)

Total

 

$

3,154,764

 

 

$

(4,902

)

 

$

36,551,534

 

 

$

(991,468

)

 

$

39,706,298

 

 

$

(996,370

)

v3.24.2
NOTE 5. MARKETABLE SECURITIES: Unrealized losses on marketable securities and their tax effects (Tables)
3 Months Ended
Jun. 30, 2024
Tables/Schedules  
Unrealized losses on marketable securities and their tax effects

 

 

 

Quarter Ended June 30,

 

 

 

2024

 

 

2023

 

Unrealized gain (loss) from marketable securities

 

$

36,751

 

 

$

(300,437

Tax effects

 

 

(8,041

 

 

65,736

 

Unrealized gain (loss) from marketable securities, net of tax

 

$

28,710

 

 

$

(234,701

)

v3.24.2
NOTE 7. INVENTORIES: Schedule of Inventory (Tables)
3 Months Ended
Jun. 30, 2024
Tables/Schedules  
Schedule of Inventory

 

 

 

June 30, 2024

 

 

March 31, 2024

Raw materials

$

1,814,443

 

$

1,982,657

Work in process

 

3,058,150

 

 

2,641,085

Finished goods

 

2,292,039

 

 

2,534,843

Total inventories

$

7,164,632

 

$

7,158,585

v3.24.2
NOTE 10. LEASES: Lease, Cost (Tables)
3 Months Ended
Jun. 30, 2024
Tables/Schedules  
Lease, Cost

 

 

Quarter Ended June 30, 2024 

 

Operating lease cost

$

37,754

 

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

Operating cash flows for leases

$

45,341

 

Remaining lease term

21 months

 

Discount rate

 

3.5

%

v3.24.2
NOTE 10. LEASES: Lessee, Operating Lease, Liability, Maturity (Tables)
3 Months Ended
Jun. 30, 2024
Tables/Schedules  
Lessee, Operating Lease, Liability, Maturity

 

Year Ending March 31,

Operating Lease Liabilities

 

2025

 

136,930

 

2026

 

184,995

 

Total lease payments

 

321,925

 

Imputed lease interest

 

(9,275

)

Total lease liabilities

$

312,650

 

v3.24.2
NOTE 4. NET INCOME PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Details) - shares
3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Details    
Weighted Average Number of Shares Outstanding, Basic 4,833,676 4,832,166
Dilutive effect of stock options 5,319 8,405
Shares used in computing net income per share - diluted 4,838,995 4,840,571
v3.24.2
NOTE 5. MARKETABLE SECURITIES: Contractual maturities of marketable securities (Details) - USD ($)
Jun. 30, 2024
Mar. 31, 2024
Marketable Securities $ 52,951,591 $ 52,548,876
(1 Year 21,446,327  
1-3 Years 23,206,787  
3-5 Years 8,298,477  
Money Market Funds    
Marketable Securities 5,775,400 9,842,796
(1 Year 5,775,400  
1-3 Years 0  
3-5 Years 0  
Corporate Bond Securities    
Marketable Securities 47,176,191 $ 42,706,080
(1 Year 15,670,927  
1-3 Years 23,206,787  
3-5 Years $ 8,298,477  
v3.24.2
NOTE 5. MARKETABLE SECURITIES (Details) - USD ($)
Jun. 30, 2024
Mar. 31, 2024
Details    
Debt Securities, Available-for-Sale, Excluding Accrued Interest $ 334,757 $ 460,627
v3.24.2
NOTE 5. MARKETABLE SECURITIES: Fair values of our marketable securities aggregated by credit rating (Details) - USD ($)
Jun. 30, 2024
Mar. 31, 2024
Marketable Securities $ 52,951,591 $ 52,548,876
Standard & Poor's, AAA Rating    
Marketable Securities 5,775,400  
Standard & Poor's, AA+ Rating    
Marketable Securities 3,798,418  
Standard & Poor's, AA Rating    
Marketable Securities 9,553,228  
Standard & Poor's, AA- Rating    
Marketable Securities 21,145,888  
Standard & Poor's, A+ Rating    
Marketable Securities 2,878,474  
Standard & Poor's, A Rating    
Marketable Securities $ 9,800,183  
v3.24.2
NOTE 5. MARKETABLE SECURITIES: Estimated fair value of marketable securities aggregated by fair value hierarchy inputs used in estimating their fair values (Details) - USD ($)
Jun. 30, 2024
Mar. 31, 2024
Marketable Securities $ 52,951,591 $ 52,548,876
Money Market Funds    
Marketable Securities 5,775,400 9,842,796
Corporate Bond Securities    
Marketable Securities 47,176,191 42,706,080
Fair Value, Inputs, Level 1    
Marketable Securities 5,775,400 9,842,796
Fair Value, Inputs, Level 1 | Money Market Funds    
Marketable Securities 5,775,400 9,842,796
Fair Value, Inputs, Level 1 | Corporate Bond Securities    
Marketable Securities 0 0
Fair Value, Inputs, Level 2    
Marketable Securities 47,176,191 42,706,080
Fair Value, Inputs, Level 2 | Money Market Funds    
Marketable Securities 0 0
Fair Value, Inputs, Level 2 | Corporate Bond Securities    
Marketable Securities $ 47,176,191 $ 42,706,080
v3.24.2
NOTE 5. MARKETABLE SECURITIES: Amortized cost, fair value and gross unrealized holding gains and losses of marketable securities (Details) - USD ($)
Jun. 30, 2024
Mar. 31, 2024
Amortized Cost $ 53,910,279 $ 53,544,316
Gross Unrealized Holding Gains 0 930
Gross Unrealized Holding Losses (958,688) (996,370)
Marketable Securities 52,951,591 52,548,876
Money Market Funds    
Amortized Cost 5,775,400 9,842,796
Gross Unrealized Holding Gains 0 0
Gross Unrealized Holding Losses 0 0
Marketable Securities 5,775,400 9,842,796
Corporate Bond Securities    
Amortized Cost 48,134,879 43,701,520
Gross Unrealized Holding Gains 0 930
Gross Unrealized Holding Losses (958,688) (996,370)
Marketable Securities $ 47,176,191 $ 42,706,080
v3.24.2
NOTE 5. MARKETABLE SECURITIES: Gross unrealized holding losses and estimated fair value of marketable securities for which an allowance for credit losses has not been recorded (Details) - USD ($)
Jun. 30, 2024
Mar. 31, 2024
Estimated Fair Value $ 10,556,505 $ 3,154,764
Gross Unrealized Holding Losses (23,647) (4,902)
Estimated Fair Value 36,619,686 36,551,534
Gross Unrealized Holding Losses (935,041) (991,468)
Estimated Fair Value 47,176,191 39,706,298
Gross Unrealized Holding Losses (958,688) (996,370)
Corporate Bond Securities    
Estimated Fair Value 10,556,505 3,154,764
Gross Unrealized Holding Losses (23,647) (4,902)
Estimated Fair Value 36,619,686 36,551,534
Gross Unrealized Holding Losses (935,041) (991,468)
Estimated Fair Value 47,176,191 39,706,298
Gross Unrealized Holding Losses $ (958,688) $ (996,370)
v3.24.2
NOTE 5. MARKETABLE SECURITIES: Unrealized losses on marketable securities and their tax effects (Details) - USD ($)
3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Details    
Unrealized loss from marketable securities $ 36,751 $ (300,437)
Tax effects (8,041) 65,736
Unrealized loss from marketable securities, net of tax $ 28,710 $ (234,701)
v3.24.2
NOTE 6. ALLOWANCE FOR CREDIT LOSSES ON ACCOUNTS RECEIVABLES: Schedule of Accounts, Notes, Loans and Financing Receivable (Details)
3 Months Ended
Jun. 30, 2024
USD ($)
Details  
Allowance for credit losses as of March 31, 2024 $ 15,000
Change in provision for current expected credit losses 0
Allowance for credit losses as of June 30, 2024 $ 15,000
v3.24.2
NOTE 7. INVENTORIES: Schedule of Inventory (Details) - USD ($)
Jun. 30, 2024
Mar. 31, 2024
Details    
Raw materials $ 1,814,443 $ 1,982,657
Work in process 3,058,150 2,641,085
Finished goods 2,292,039 2,534,843
Inventories $ 7,164,632 $ 7,158,585
v3.24.2
NOTE 8. STOCK-BASED COMPENSATION (Details) - USD ($)
3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Details    
Share-Based Payment Arrangement, Expense $ 18,442 $ 10,536
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term, Simplified Method Black-Scholes-Merton standard option-pricing model  
v3.24.2
NOTE 9. INCOME TAXES (Details)
3 Months Ended
Jun. 30, 2024
USD ($)
Accrued Income Taxes $ 912,411
Unrecognized Tax Benefits 0
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit 0
Unrecognized Tax Benefits, Interest on Income Taxes Accrued $ 0
Minimum  
Open Tax Year 2020
Maximum  
Open Tax Year 2023
v3.24.2
NOTE 10. LEASES: Lease, Cost (Details)
3 Months Ended
Jun. 30, 2024
USD ($)
Details  
Operating lease cost $ 37,754
Operating cash flows for leases $ 45,341
Remaining lease term 21 months
Discount rate 3.50%
v3.24.2
NOTE 10. LEASES: Lessee, Operating Lease, Liability, Maturity (Details)
Jun. 30, 2024
USD ($)
Details  
2025 $ 136,930
2026 184,995
Total lease payments 321,925
Imputed lease interest (9,275)
Total lease liabilities $ 312,650
v3.24.2
NOTE 11. STOCK REPURCHASE PROGRAM (Details) - USD ($)
3 Months Ended
Jun. 30, 2024
Jan. 21, 2009
Details    
Share Repurchase Program, Authorized, Amount   $ 2,500,000
Share Repurchase Program, Remaining Authorized, Amount $ 3,520,369  
Treasury Stock, Shares, Acquired 0  
v3.24.2
NOTE 12. INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS (Details) - USD ($)
3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Details    
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay 100.00%  
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent 3.00%  
Defined Benefit Plan, Plan Assets, Contributions by Employer $ 28,767 $ 27,078
v3.24.2
NOTE 13. SUBSEQUENT EVENTS (Details) - $ / shares
3 Months Ended
Jul. 17, 2024
Jun. 30, 2024
Jun. 30, 2023
Details      
Subsequent Event, Date Jul. 17, 2024    
Subsequent Event, Description we announced that our Board of Directors had declared a quarterly cash dividend    
Cash dividends declared per common share $ 1 $ 1 $ 1
Dividends Payable, Date to be Paid Aug. 30, 2024    
Dividends Payable, Date of Record Jul. 29, 2024    

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