Document and Entity Information
Document and Entity Information - $ / shares | 9 Months Ended | |
Dec. 31, 2022 | Jan. 20, 2023 | |
Details | ||
Registrant CIK | 0000724910 | |
Fiscal Year End | --03-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity 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 | $ 0.01 | |
Entity Common Stock, Shares Outstanding | 4,830,826 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
BALANCE SHEETS (December 31, 20
BALANCE SHEETS (December 31, 2022 Unaudited) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 2,029,714 | $ 10,449,510 |
Marketable securities, short-term | 10,337,621 | 20,839,683 |
Accounts receivable, net of allowance for uncollectible accounts of $15,000 | 2,097,274 | 4,704,829 |
Inventories | 6,459,227 | 5,088,635 |
Prepaid expenses and other assets | 924,161 | 420,520 |
Total current assets | 21,847,997 | 41,503,177 |
Fixed assets | ||
Machinery and equipment | 10,486,161 | 9,739,244 |
Leasehold improvements | 1,926,334 | 1,810,872 |
Less accumulated depreciation and amortization | 11,018,857 | 10,943,731 |
Net fixed assets | 1,393,638 | 606,385 |
Deferred tax assets | 862,424 | 483,469 |
Marketable securities, long-term | 41,167,242 | 24,314,211 |
Right-of-use asset - operating lease | 459,032 | 560,250 |
Total assets | 65,730,333 | 67,467,492 |
Current liabilities | ||
Accounts payable | 470,929 | 943,535 |
Accrued payroll and other | 1,245,390 | 1,356,689 |
Operating lease | 161,271 | 156,121 |
Total current liabilities | 1,877,590 | 2,456,345 |
Operating lease | 397,303 | 446,018 |
Total liabilities | 2,274,893 | 2,902,363 |
Shareholders' equity | ||
Common Stock, Value | 48,308 | 48,308 |
Additional paid-in capital | 19,310,703 | 19,256,485 |
Accumulated other comprehensive loss | (1,451,362) | (318,120) |
Retained earnings | 45,547,791 | 45,578,456 |
Total shareholders' equity | 63,455,440 | 64,565,129 |
Total liabilities and shareholders' equity | $ 65,730,333 | $ 67,467,492 |
BALANCE SHEETS (December 31, _2
BALANCE SHEETS (December 31, 2022 Unaudited) - Parenthetical - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Details | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 15,000 | $ 15,000 |
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 | 4,830,826 | 4,830,826 |
Common Stock, Shares, Outstanding | 4,830,826 | 4,830,826 |
STATEMENTS OF INCOME (Unaudited
STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | ||||
Product sales | $ 7,200,385 | $ 5,916,790 | $ 24,787,885 | $ 19,500,567 |
Contract research and development | 201,293 | 374,019 | 668,024 | 766,866 |
Total revenue | 7,401,678 | 6,290,809 | 25,455,909 | 20,267,433 |
Cost of sales | 1,478,372 | 1,385,006 | 5,533,000 | 4,698,720 |
Gross profit | 5,923,306 | 4,905,803 | 19,922,909 | 15,568,713 |
Expenses | ||||
Research and development | 700,609 | 596,492 | 1,972,505 | 2,112,630 |
Selling, general, and administrative | 403,449 | 272,159 | 1,210,395 | 1,221,893 |
Total expenses | 1,104,058 | 868,651 | 3,182,900 | 3,334,523 |
Income from operations | 4,819,248 | 4,037,152 | 16,740,009 | 12,234,190 |
Interest income | 406,092 | 283,940 | 1,040,528 | 868,519 |
Income before taxes | 5,225,340 | 4,321,092 | 17,780,537 | 13,102,709 |
Provision for income taxes | 994,016 | 855,685 | 3,318,723 | 2,411,228 |
Net income | $ 4,231,324 | $ 3,465,407 | $ 14,461,814 | $ 10,691,481 |
Net income per share - basic | $ 0.88 | $ 0.72 | $ 2.99 | $ 2.21 |
Net income per share - diluted | 0.88 | 0.72 | 2.99 | 2.21 |
Cash dividends declared per common share | $ 1 | $ 1 | $ 3 | $ 3 |
Weighted average shares outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 4,830,826 | 4,833,604 | 4,830,826 | 4,833,356 |
Weighted Average Number of Shares Outstanding, Diluted | 4,832,368 | 4,835,770 | 4,831,168 | 4,835,781 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Details | ||||||||
Net income | $ 4,231,324 | $ 6,090,373 | $ 4,140,116 | $ 3,465,407 | $ 3,646,507 | $ 3,579,566 | $ 14,461,814 | $ 10,691,481 |
Unrealized gain (loss) from marketable securities, net of tax | 332,673 | (1,127,362) | (338,553) | (380,161) | (197,034) | (90,165) | (1,133,242) | (667,361) |
Comprehensive income | $ 4,563,997 | $ 4,963,011 | $ 3,801,563 | $ 3,085,246 | $ 3,449,473 | $ 3,489,401 | $ 13,328,572 | $ 10,024,120 |
STATEMENTS OF SHAREHOLDERS' EQU
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, 2021 | $ 48,332 | $ 19,338,127 | $ 1,101,119 | $ 50,404,364 | $ 70,891,942 |
Shares Outstanding, Starting at Mar. 31, 2021 | 4,833,232 | ||||
Unrealized gain (loss) from marketable securities, net of tax | (90,165) | (90,165) | |||
Net income | 3,579,566 | 3,579,566 | |||
Total comprehensive income | 3,489,401 | ||||
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture | 7,238 | 7,238 | |||
Cash dividends declared ($1.00 per share of common stock) | (4,833,232) | (4,833,232) | |||
Shares Outstanding, Ending at Jun. 30, 2021 | 4,833,232 | ||||
Equity Balance, Ending at Jun. 30, 2021 | $ 48,332 | 19,345,365 | 1,010,954 | 49,150,698 | 69,555,349 |
Equity Balance, Starting at Mar. 31, 2021 | $ 48,332 | 19,338,127 | 1,101,119 | 50,404,364 | 70,891,942 |
Shares Outstanding, Starting at Mar. 31, 2021 | 4,833,232 | ||||
Unrealized gain (loss) from marketable securities, net of tax | (667,361) | ||||
Net income | 10,691,481 | ||||
Total comprehensive income | 10,024,120 | ||||
Shares Outstanding, Ending at Dec. 31, 2021 | 4,833,714 | ||||
Equity Balance, Ending at Dec. 31, 2021 | $ 48,337 | 19,411,158 | 433,759 | 46,596,148 | 66,489,402 |
Equity Balance, Starting at Jun. 30, 2021 | $ 48,332 | 19,345,365 | 1,010,954 | 49,150,698 | 69,555,349 |
Shares Outstanding, Starting at Jun. 30, 2021 | 4,833,232 | ||||
Unrealized gain (loss) from marketable securities, net of tax | (197,034) | (197,034) | |||
Net income | 3,646,507 | 3,646,507 | |||
Total comprehensive income | 3,449,473 | ||||
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture | 56,999 | 56,999 | |||
Cash dividends declared ($1.00 per share of common stock) | (4,833,232) | (4,833,232) | |||
Shares Outstanding, Ending at Sep. 30, 2021 | 4,833,232 | ||||
Equity Balance, Ending at Sep. 30, 2021 | $ 48,332 | 19,402,364 | 813,920 | 47,963,973 | 68,228,589 |
Unrealized gain (loss) from marketable securities, net of tax | (380,161) | (380,161) | |||
Net income | 3,465,407 | 3,465,407 | |||
Total comprehensive income | 3,085,246 | ||||
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture | 8,799 | 8,799 | |||
Cash dividends declared ($1.00 per share of common stock) | (4,833,232) | (4,833,232) | |||
Stock Issued During Period, Value, Stock Options Exercised | $ 5 | (5) | 0 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 482 | ||||
Shares Outstanding, Ending at Dec. 31, 2021 | 4,833,714 | ||||
Equity Balance, Ending at Dec. 31, 2021 | $ 48,337 | 19,411,158 | 433,759 | 46,596,148 | 66,489,402 |
Equity Balance, Starting at Mar. 31, 2022 | $ 48,308 | 19,256,485 | (318,120) | 45,578,456 | 64,565,129 |
Shares Outstanding, Starting at Mar. 31, 2022 | 4,830,826 | ||||
Unrealized gain (loss) from marketable securities, net of tax | (338,553) | (338,553) | |||
Net income | 4,140,116 | 4,140,116 | |||
Total comprehensive income | 3,801,563 | ||||
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture | 7,134 | 7,134 | |||
Cash dividends declared ($1.00 per share of common stock) | (4,830,826) | (4,830,826) | |||
Shares Outstanding, Ending at Jun. 30, 2022 | 4,830,826 | ||||
Equity Balance, Ending at Jun. 30, 2022 | $ 48,308 | 19,263,619 | (656,673) | 44,887,746 | 63,543,000 |
Equity Balance, Starting at Mar. 31, 2022 | $ 48,308 | 19,256,485 | (318,120) | 45,578,456 | 64,565,129 |
Shares Outstanding, Starting at Mar. 31, 2022 | 4,830,826 | ||||
Unrealized gain (loss) from marketable securities, net of tax | (1,133,242) | ||||
Net income | 14,461,814 | ||||
Total comprehensive income | 13,328,572 | ||||
Shares Outstanding, Ending at Dec. 31, 2022 | 4,830,826 | ||||
Equity Balance, Ending at Dec. 31, 2022 | $ 48,308 | 19,310,703 | (1,451,362) | 45,547,791 | 63,455,440 |
Equity Balance, Starting at Jun. 30, 2022 | $ 48,308 | 19,263,619 | (656,673) | 44,887,746 | 63,543,000 |
Shares Outstanding, Starting at Jun. 30, 2022 | 4,830,826 | ||||
Unrealized gain (loss) from marketable securities, net of tax | (1,127,362) | (1,127,362) | |||
Net income | 6,090,373 | 6,090,373 | |||
Total comprehensive income | 4,963,011 | ||||
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture | 39,951 | 39,951 | |||
Cash dividends declared ($1.00 per share of common stock) | (4,830,826) | (4,830,826) | |||
Shares Outstanding, Ending at Sep. 30, 2022 | 4,830,826 | ||||
Equity Balance, Ending at Sep. 30, 2022 | $ 48,308 | 19,303,570 | (1,784,035) | 46,147,293 | 63,715,136 |
Unrealized gain (loss) from marketable securities, net of tax | 332,673 | 332,673 | |||
Net income | 4,231,324 | 4,231,324 | |||
Total comprehensive income | 4,563,997 | ||||
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture | 7,133 | 7,133 | |||
Cash dividends declared ($1.00 per share of common stock) | (4,830,826) | (4,830,826) | |||
Shares Outstanding, Ending at Dec. 31, 2022 | 4,830,826 | ||||
Equity Balance, Ending at Dec. 31, 2022 | $ 48,308 | $ 19,310,703 | $ (1,451,362) | $ 45,547,791 | $ 63,455,440 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | ||
Net income | $ 14,461,814 | $ 10,691,481 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 187,781 | 358,828 |
Stock-based compensation | 54,218 | 73,036 |
Deferred income taxes | (61,972) | 319 |
Changes in operating assets and liabilities | ||
Accounts receivable | 2,607,555 | (1,073,922) |
Inventories | (1,370,592) | (466,898) |
Prepaid expenses and other assets | (502,423) | (435,067) |
Accounts payable and accrued expenses | (627,470) | (49,447) |
Net cash provided by operating activities | 14,748,911 | 9,098,330 |
INVESTING ACTIVITIES | ||
Purchases of fixed assets | (907,612) | (58,317) |
Purchases of marketable securities | (26,618,617) | 0 |
Proceeds from maturities of marketable securities | 18,750,000 | 4,000,000 |
Receipt of tenant improvement allowance | 100,000 | 0 |
Net cash provided (used) by investing activities | (8,676,229) | 3,941,683 |
FINANCING ACTIVITIES | ||
Payment of dividends to shareholders | (14,492,478) | (14,499,696) |
Cash used in financing activities | (14,492,478) | (14,499,696) |
Decrease in cash and cash equivalents | (8,419,796) | (1,459,683) |
Cash and cash equivalents | 10,449,510 | 10,427,340 |
Cash and cash equivalents | 2,029,714 | 8,967,657 |
Supplemental disclosures of cash flow information | ||
Cash paid during the period for income taxes | $ 4,130,278 | $ 2,490,000 |
NOTE 1. DESCRIPTION OF BUSINESS
NOTE 1. DESCRIPTION OF BUSINESS | 9 Months Ended |
Dec. 31, 2022 | |
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. |
NOTE 2. BASIS OF PRESENTATION A
NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2022 | |
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 it is suggested that these unaudited financial statements be read in conjunction with the audited financial statements and the notes included in our latest annual financial statements included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2022. The results of operations for the quarter and nine months ended December 31, 2022 are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2023. Significant accounting policies A description of our significant accounting policies is provided in Note 2 to the Financial Statements in our Annual Report on Form 10-K for the year ended March 31, 2022. As of December 31, 2022, there were no changes to our significant accounting policies. |
NOTE 3. RECENTLY ISSUED ACCOUNT
NOTE 3. RECENTLY ISSUED ACCOUNTING STANDARDS | 9 Months Ended |
Dec. 31, 2022 | |
Notes | |
NOTE 3. RECENTLY ISSUED ACCOUNTING STANDARDS | NOTE 3. RECENTLY ISSUED ACCOUNTING STANDARDS Recently Adopted Accounting Standard In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options New Accounting Standard Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements Codification Improvements to Topic 326, Financial Instruments-Credit Losses Codification Improvements to Topic 326, Financial Instruments-Credit Losses Financial Instruments Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) Codification Improvements to Financial Instruments |
NOTE 4. NET INCOME PER SHARE
NOTE 4. NET INCOME PER SHARE | 9 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 2021 Weighted average common shares outstanding – basic 4,830,826 4,833,604 Dilutive effect of stock options 1,542 2,166 Shares used in computing net income per share – diluted 4,832,368 4,835,770 Nine Months Ended December 31, 2022 2021 Weighted average common shares outstanding – basic 4,830,826 4,833,356 Dilutive effect of stock options 342 2,425 Shares used in computing net income per share – diluted 4,831,168 4,835,781 |
NOTE 5. FAIR VALUE OF FINANCIAL
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Dec. 31, 2022 | |
Notes | |
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS Our corporate bonds and money market funds are classified as available-for-sale securities and carried at estimated fair value. Unrealized holding gains and losses are included in accumulated other comprehensive income (loss) in the statement of shareholders’ equity. Corporate bonds with remaining maturities less than one year are classified as short-term, and those with remaining maturities greater than one year are classified as long-term. We consider all highly-liquid investments with maturities of three months or less when purchased, including money market funds, to be cash equivalents. Gains and losses on marketable security transactions are reported on the specific-identification method. Contractual maturities of available-for-sale securities as of December 31, 2022 are as follows: Total <1 Year 1–3 Years 3–7 Years $ 52,020,382 $ 10,853,140 $ 25,270,655 $ 15,896,587 Total available-for-sale securities represented approximately 79% of our total assets as of December 31, 2022. Marketable securities as of December 31, 2022 had remaining maturities between six days and 76 months. Generally accepted accounting principles establish a framework for measuring fair value, provide a definition of fair value, and prescribe required disclosures about fair-value measurements. Generally accepted accounting principles define fair value as the price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Generally accepted accounting principles utilize a valuation hierarchy for disclosure of fair value measurements. The categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The categories within the valuation hierarchy are described as follows: Level 1 – Financial instruments with quoted prices in active markets for identical assets or liabilities. Level 2 – Financial instruments with quoted prices in active markets for similar assets or liabilities. Level 2 fair value measurements are determined using either prices for similar instruments or inputs that are either directly or indirectly observable, such as interest rates. Level 3 – Inputs to the fair value measurement are unobservable inputs or valuation techniques. 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.” The following table shows the estimated fair value of assets that were accounted for at fair value on a recurring basis: As of December 31, 2022 As of March 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Money market funds $ 515,519 $ - $ 515,519 $ 6,756,993 $ - $ 6,756,993 Corporate bonds - 51,504,863 51,504,863 - 45,153,894 45,153,894 Total $ 515,519 $ 51,504,863 $ 52,020,382 $ 6,756,993 $ 45,153,894 $ 51,910,887 Our available-for-sale securities as of December 31 and March 31, 2022, aggregated into classes of securities, were as follows: As of December 31, 2022 As of March 31, 2022 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 $ 515,519 $ - $ - $ 515,519 $ 6,756,993 $ - $ - $ 6,756,993 Corporate bonds 53,362,727 372 (1,858,236 ) 51,504,863 45,561,114 230,085 (637,305 ) 45,153,894 Total $ 53,878,246 $ 372 $ (1,858,236 ) $ 52,020,382 $ 52,318,107 $ 230,085 $ (637,305 ) $ 51,910,887 The following table shows the gross unrealized holding losses and fair value of our available-for-sale securities with unrealized holding losses, aggregated by class of securities and length of time that individual securities had been in a continuous unrealized loss position as of December 31 and March 31, 2022. 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 December 31, 2022 Corporate bonds $ 38,850,214 $ (1,014,674 ) $ 9,410,692 $ (843,562 ) $ 48,260,906 $ (1,858,236 ) Total $ 38,850,214 $ (1,014,674 ) $ 9,410,692 $ (843,562 ) $ 48,260,906 $ (1,858,236 ) As of March 31, 2022 Corporate bonds $ 6,306,750 $ (23,727 ) $ 9,738,338 $ (613,578 ) $ 16,045,088 $ (637,305 ) Total $ 6,306,750 $ (23,727 ) $ 9,738,338 $ (613,578 ) $ 16,045,088 $ (637,305 ) None of the securities were impaired at acquisition, and subsequent declines in fair value are not attributed to declines in credit quality. When evaluating for impairment we assess indicators that include, but are not limited to, earnings performance, changes in underlying credit ratings, market conditions, bona fide offers to purchase or sell, and ability to hold until maturity. Because we believe it is more likely than not we will recover the cost basis of our investments, we did not consider any of our marketable securities to be impaired as of December 31, 2022. |
NOTE 6. INVENTORIES
NOTE 6. INVENTORIES | 9 Months Ended |
Dec. 31, 2022 | |
Notes | |
NOTE 6. INVENTORIES | NOTE 6. INVENTORIES Inventories are shown in the following table: December 31, 2022 March 31, 2022 Raw materials $ 1,340,276 $ 987,062 Work in process 4,153,063 3,355,838 Finished goods 965,888 745,735 Total inventories $ 6,459,227 $ 5,088,635 |
Share-Based Payment Arrangement
Share-Based Payment Arrangement | 9 Months Ended |
Dec. 31, 2022 | |
Notes | |
Share-Based Payment Arrangement | NOTE 7. STOCK-BASED COMPENSATION Stock-based compensation expense was $7,133 for the third quarter of fiscal 2023, $8,799 for the third quarter of fiscal 2022, $54,218 for the first nine months of fiscal 2023, and $73,036 for the first nine months of fiscal 2022. We calculate the share-based compensation expense using the Black-Scholes standard option-pricing model. |
NOTE 8. INCOME TAXES
NOTE 8. INCOME TAXES | 9 Months Ended |
Dec. 31, 2022 | |
Notes | |
NOTE 8. INCOME TAXES | NOTE 8. 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 December 31, 2022, federal and state estimated tax overpayments of $291,000 were included in prepaid assets. We had no unrecognized tax benefits as of December 31, 2022, 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 December 31, 2022 we had no accrued interest related to uncertain tax positions. The tax years 2018 through 2022 remain open to examination by the major taxing jurisdictions to which we are subject. |
NOTE 9. LEASES
NOTE 9. LEASES | 9 Months Ended |
Dec. 31, 2022 | |
Notes | |
NOTE 9. LEASES | NOTE 9. 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 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. Variable lease costs consist primarily of common area maintenance and real estate taxes which are paid based on actual costs incurred by the lessor. Details of our operating lease are as follows: Quarter Ended December 31, 2022 Nine Months Ended December 31, 2022 Operating lease cost $ 4,419 $ 89,450 Variable lease cost 33,460 94,775 Total $ 37,879 $ 184,225 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for leases $ 43,578 130,735 Remaining lease term 39 months Discount rate 3.5 % The following table presents the maturities of lease liabilities as of December 31, 2022: As of December 31, 2022 Operating Leases Fiscal 2023 44,433 Fiscal 2024 178,640 Fiscal 2025 182,271 Fiscal 2026 184,995 Total lease payments 590,339 Imputed lease interest (31,765 ) Total lease liabilities $ 558,574 |
NOTE 10. STOCK REPURCHASE PROGR
NOTE 10. STOCK REPURCHASE PROGRAM | 9 Months Ended |
Dec. 31, 2022 | |
Notes | |
NOTE 10. STOCK REPURCHASE PROGRAM | NOTE 10. 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 depends 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 maturating marketable securities. The remaining authorization was $3,598,519 as of December 31, 2022. We did not repurchase any of our Common Stock during the first nine months of fiscal 2023. |
NOTE 11. INFORMATION AS TO EMPL
NOTE 11. INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS | 9 Months Ended |
Dec. 31, 2022 | |
Notes | |
NOTE 11. INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS | NOTE 11. 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 21. 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 $21,484 for the third quarter of fiscal 2023, $21,579 for the third quarter of fiscal 2022, $73,661 for the first nine months of fiscal 2023, and $76,995 for the first nine months of fiscal 2022. |
NOTE 12. SUBSEQUENT EVENTS
NOTE 12. SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2022 | |
Notes | |
NOTE 12. SUBSEQUENT EVENTS | NOTE 12. SUBSEQUENT EVENTS On January 25, 2023 we announced that our Board of Directors had declared a quarterly cash dividend of $1.00 per share of Common Stock to be paid February 28, 2023 to shareholders of record as of the close of business January 30, 2023. |
NOTE 2. BASIS OF PRESENTATION_2
NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies) | 9 Months Ended |
Dec. 31, 2022 | |
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 it is suggested that these unaudited financial statements be read in conjunction with the audited financial statements and the notes included in our latest annual financial statements included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2022. The results of operations for the quarter and nine months ended December 31, 2022 are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2023. |
NOTE 2. BASIS OF PRESENTATION_3
NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES: Significant accounting policies (Policies) | 9 Months Ended |
Dec. 31, 2022 | |
Policies | |
Significant accounting policies | Significant accounting policies A description of our significant accounting policies is provided in Note 2 to the Financial Statements in our Annual Report on Form 10-K for the year ended March 31, 2022. As of December 31, 2022, there were no changes to our significant accounting policies. |
NOTE 4. NET INCOME PER SHARE_ S
NOTE 4. NET INCOME PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Quarter Ended December 31, 2022 2021 Weighted average common shares outstanding – basic 4,830,826 4,833,604 Dilutive effect of stock options 1,542 2,166 Shares used in computing net income per share – diluted 4,832,368 4,835,770 Nine Months Ended December 31, 2022 2021 Weighted average common shares outstanding – basic 4,830,826 4,833,356 Dilutive effect of stock options 342 2,425 Shares used in computing net income per share – diluted 4,831,168 4,835,781 |
NOTE 5. FAIR VALUE OF FINANCI_2
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS: Contractual maturities of available-for-sale securities (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Contractual maturities of available-for-sale securities | Total <1 Year 1–3 Years 3–7 Years $ 52,020,382 $ 10,853,140 $ 25,270,655 $ 15,896,587 |
NOTE 5. FAIR VALUE OF FINANCI_3
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS: Estimated fair value of assets that were accounted for at fair value on a recurring basis (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Estimated fair value of assets that were accounted for at fair value on a recurring basis | The following table shows the estimated fair value of assets that were accounted for at fair value on a recurring basis: As of December 31, 2022 As of March 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Money market funds $ 515,519 $ - $ 515,519 $ 6,756,993 $ - $ 6,756,993 Corporate bonds - 51,504,863 51,504,863 - 45,153,894 45,153,894 Total $ 515,519 $ 51,504,863 $ 52,020,382 $ 6,756,993 $ 45,153,894 $ 51,910,887 |
NOTE 5. FAIR VALUE OF FINANCI_4
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS: Available-for-Sale Securities (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Available-for-Sale Securities | Our available-for-sale securities as of December 31 and March 31, 2022, aggregated into classes of securities, were as follows: As of December 31, 2022 As of March 31, 2022 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 $ 515,519 $ - $ - $ 515,519 $ 6,756,993 $ - $ - $ 6,756,993 Corporate bonds 53,362,727 372 (1,858,236 ) 51,504,863 45,561,114 230,085 (637,305 ) 45,153,894 Total $ 53,878,246 $ 372 $ (1,858,236 ) $ 52,020,382 $ 52,318,107 $ 230,085 $ (637,305 ) $ 51,910,887 |
NOTE 5. FAIR VALUE OF FINANCI_5
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS: Gross unrealized holding losses and fair value of available-for-sale securities with unrealized holding losses (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Gross unrealized holding losses and fair value of available-for-sale securities with unrealized holding losses | 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 December 31, 2022 Corporate bonds $ 38,850,214 $ (1,014,674 ) $ 9,410,692 $ (843,562 ) $ 48,260,906 $ (1,858,236 ) Total $ 38,850,214 $ (1,014,674 ) $ 9,410,692 $ (843,562 ) $ 48,260,906 $ (1,858,236 ) As of March 31, 2022 Corporate bonds $ 6,306,750 $ (23,727 ) $ 9,738,338 $ (613,578 ) $ 16,045,088 $ (637,305 ) Total $ 6,306,750 $ (23,727 ) $ 9,738,338 $ (613,578 ) $ 16,045,088 $ (637,305 ) |
NOTE 6. INVENTORIES_ Schedule o
NOTE 6. INVENTORIES: Schedule of Inventory (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Schedule of Inventory | December 31, 2022 March 31, 2022 Raw materials $ 1,340,276 $ 987,062 Work in process 4,153,063 3,355,838 Finished goods 965,888 745,735 Total inventories $ 6,459,227 $ 5,088,635 |
NOTE 9. LEASES_ Lease, Cost (Ta
NOTE 9. LEASES: Lease, Cost (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Lease, Cost | Quarter Ended December 31, 2022 Nine Months Ended December 31, 2022 Operating lease cost $ 4,419 $ 89,450 Variable lease cost 33,460 94,775 Total $ 37,879 $ 184,225 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for leases $ 43,578 130,735 Remaining lease term 39 months Discount rate 3.5 % |
NOTE 9. LEASES_ Lessee, Operati
NOTE 9. LEASES: Lessee, Operating Lease, Liability, Maturity (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Lessee, Operating Lease, Liability, Maturity | As of December 31, 2022 Operating Leases Fiscal 2023 44,433 Fiscal 2024 178,640 Fiscal 2025 182,271 Fiscal 2026 184,995 Total lease payments 590,339 Imputed lease interest (31,765 ) Total lease liabilities $ 558,574 |
NOTE 4. NET INCOME PER SHARE__2
NOTE 4. NET INCOME PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Details | ||||
Weighted Average Number of Shares Outstanding, Basic | 4,830,826 | 4,833,604 | 4,830,826 | 4,833,356 |
Dilutive effect of stock options | 1,542 | 2,166 | 342 | 2,425 |
Shares used in computing net income per share - diluted | 4,832,368 | 4,835,770 | 4,831,168 | 4,835,781 |
NOTE 5. FAIR VALUE OF FINANCI_6
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS: Contractual maturities of available-for-sale securities (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Details | ||
Debt Securities, Available-for-Sale | $ 52,020,382 | $ 51,910,887 |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, Year One | 10,853,140 | |
Available for Sale Securities, Debt Maturities after One through Three Years, Fair Value | 25,270,655 | |
Available for Sale Securities, Debt Maturities after Three through Seven Years, Fair Value | $ 15,896,587 |
NOTE 5. FAIR VALUE OF FINANCI_7
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS: Estimated fair value of assets that were accounted for at fair value on a recurring basis (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Debt Securities, Available-for-Sale | $ 52,020,382 | $ 51,910,887 |
Money Market Funds | ||
Debt Securities, Available-for-Sale | 515,519 | 6,756,993 |
Corporate Bond Securities | ||
Debt Securities, Available-for-Sale | 51,504,863 | 45,153,894 |
Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-Sale | 515,519 | 6,756,993 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Debt Securities, Available-for-Sale | 515,519 | 6,756,993 |
Fair Value, Inputs, Level 1 | Corporate Bond Securities | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Debt Securities, Available-for-Sale | 51,504,863 | 45,153,894 |
Fair Value, Inputs, Level 2 | Money Market Funds | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Fair Value, Inputs, Level 2 | Corporate Bond Securities | ||
Debt Securities, Available-for-Sale | $ 51,504,863 | $ 45,153,894 |
NOTE 5. FAIR VALUE OF FINANCI_8
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS: Available-for-Sale Securities (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Amortized Cost | $ 53,878,246 | $ 52,318,107 |
Gross Unrealized Holding Gains | 372 | 230,085 |
Gross Unrealized Holding Losses | (1,858,236) | (637,305) |
Debt Securities, Available-for-Sale | 52,020,382 | 51,910,887 |
Money Market Funds | ||
Amortized Cost | 515,519 | 6,756,993 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 0 | 0 |
Debt Securities, Available-for-Sale | 515,519 | 6,756,993 |
Corporate Bond Securities | ||
Amortized Cost | 53,362,727 | 45,561,114 |
Gross Unrealized Holding Gains | 372 | 230,085 |
Gross Unrealized Holding Losses | (1,858,236) | (637,305) |
Debt Securities, Available-for-Sale | $ 51,504,863 | $ 45,153,894 |
NOTE 5. FAIR VALUE OF FINANCI_9
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS: Gross unrealized holding losses and fair value of available-for-sale securities with unrealized holding losses (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Estimated Fair Value | $ 38,850,214 | $ 6,306,750 |
Gross Unrealized Holding Losses | (1,014,674) | (23,727) |
Estimated Fair Value | 9,410,692 | 9,738,338 |
Gross Unrealized Holding Losses | (843,562) | (613,578) |
Estimated Fair Value | 48,260,906 | 16,045,088 |
Gross Unrealized Holding Losses | (1,858,236) | (637,305) |
Corporate Bond Securities | ||
Estimated Fair Value | 38,850,214 | 6,306,750 |
Gross Unrealized Holding Losses | (1,014,674) | (23,727) |
Estimated Fair Value | 9,410,692 | 9,738,338 |
Gross Unrealized Holding Losses | (843,562) | (613,578) |
Estimated Fair Value | 48,260,906 | 16,045,088 |
Gross Unrealized Holding Losses | $ (1,858,236) | $ (637,305) |
NOTE 6. INVENTORIES_ Schedule_2
NOTE 6. INVENTORIES: Schedule of Inventory (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Details | ||
Raw materials | $ 1,340,276 | $ 987,062 |
Work in process | 4,153,063 | 3,355,838 |
Finished goods | 965,888 | 745,735 |
Inventories | $ 6,459,227 | $ 5,088,635 |
Share-Based Payment Arrangeme_2
Share-Based Payment Arrangement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Details | ||||
Share-Based Payment Arrangement, Expense | $ 7,133 | $ 8,799 | $ 54,218 | $ 73,036 |
NOTE 8. INCOME TAXES (Details)
NOTE 8. INCOME TAXES (Details) | 9 Months Ended |
Dec. 31, 2022 USD ($) | |
Accrued Income Taxes | $ 291,000 |
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 | 2018 |
Maximum | |
Open Tax Year | 2022 |
NOTE 9. LEASES_ Lease, Cost (De
NOTE 9. LEASES: Lease, Cost (Details) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Details | ||
Operating lease cost | $ 4,419 | $ 89,450 |
Variable lease cost | 33,460 | 94,775 |
Total | 37,879 | 184,225 |
Operating cash flows for leases | $ 43,578 | $ 130,735 |
Remaining lease term | 39 months | 39 months |
Discount rate | 3.50% | 3.50% |
NOTE 9. LEASES_ Lessee, Opera_2
NOTE 9. LEASES: Lessee, Operating Lease, Liability, Maturity (Details) | Dec. 31, 2022 USD ($) |
Details | |
Fiscal 2023 | $ 44,433 |
Fiscal 2024 | 178,640 |
Fiscal 2025 | 182,271 |
Fiscal 2026 | 184,995 |
Total lease payments | 590,339 |
Imputed lease interest | (31,765) |
Total lease liabilities | $ 558,574 |
NOTE 10. STOCK REPURCHASE PRO_2
NOTE 10. STOCK REPURCHASE PROGRAM (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2022 | Jan. 21, 2009 | |
Details | ||
Stock Repurchase Program, Authorized Amount | $ 2,500,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 3,598,519 | |
Treasury Stock, Shares, Acquired | 0 |
NOTE 11. INFORMATION AS TO EM_2
NOTE 11. INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Details | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 100% | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3% | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 21,484 | $ 21,579 | $ 73,661 | $ 76,995 |
NOTE 12. SUBSEQUENT EVENTS (Det
NOTE 12. SUBSEQUENT EVENTS (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Jan. 25, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Details | |||||
Subsequent Event, Date | Jan. 25, 2023 | ||||
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 | $ 3 | $ 3 |
Dividends Payable, Date to be Paid | Feb. 28, 2023 | ||||
Dividends Payable, Date of Record | Jan. 30, 2023 |