10-Q

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   December 31, 2023

or

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

For the transition period from                                    to                                     

Commission File Number: 000-12196

 

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 – 4,833,401 shares outstanding as of December 31, 2023

NVE CORPORATION

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

Statements of Income for the Quarters Ended December 31, 2023 and 2022

Statements of Comprehensive Income for the Quarters Ended December 31, 2023 and 2022

Statements of Income for the Nine Months Ended December 31, 2023 and 2022

Statements of Comprehensive Income for the Nine Months Ended December 31, 2023 and 2022

Statements of Shareholders’ Equity for the Nine Months Ended December 31, 2023

Statements of Shareholders’ Equity for the Nine Months Ended December 31, 2022

Statements of Cash Flows for the Nine Months Ended December 31, 2023 and 2022

2

PART I–FINANCIAL INFORMATION

Item 1. Financial Statements.

NVE CORPORATION

BALANCE SHEETS

	(Unaudited) Dec. 31, 2023			March 31, 2023*
ASSETS
Current assets
Cash and cash equivalents	$	4,684,910		$	1,669,896
Marketable securities, short-term (amortized cost of $14,556,450 as of December 31, 2023, and $15,696,135 as of March 31, 2023)		14,335,619			15,513,095
Accounts receivable, net of allowance for credit losses of $15,000		2,245,728			6,523,344
Inventories		7,349,811			6,417,010
Prepaid expenses and other assets		597,305			663,459
Total current assets		29,213,373			30,786,804
Fixed assets
Machinery and equipment		10,501,096			10,484,365
Leasehold improvements		1,956,309			1,956,309
		12,457,405			12,440,674
Less accumulated depreciation and amortization		11,326,985			11,095,236
Net fixed assets		1,130,420			1,345,438
Deferred tax assets		1,290,284			572,038
Marketable securities, long-term (amortized cost of $36,414,391 as of December 31, 2023, and $37,495,846 as of March 31, 2023)		35,670,914			36,125,047
Right-of-use asset – operating lease		324,451			425,843
Total assets	$	67,629,442		$	69,255,170
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	170,701		$	281,712
Accrued payroll and other		460,414			1,375,250
Operating lease		178,490			175,798
Total current liabilities		809,605			1,832,760
Operating lease		218,785			342,908
Total liabilities		1,028,390			2,175,668
Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,833,401 issued and outstanding as of December 31, 2023, and 4,830,826 as of March 31, 2023		48,334			48,308
Additional paid-in capital		19,542,335			19,295,442
Accumulated other comprehensive loss		(753,317	)		(1,213,858	)
Retained earnings		47,763,700			48,949,610
Total shareholders’ equity		66,601,052			67,079,502
Total liabilities and shareholders’ equity	$	67,629,442		$	69,255,170

*The March 31, 2023 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, 2023.

See accompanying notes.

3

NVE CORPORATION

STATEMENTS OF INCOME

(Unaudited)

	Quarter Ended December 31,
	2023		2022
Revenue
Product sales	$	6,366,009	$	7,200,385
Contract research and development		390,251		201,293
Total revenue		6,756,260		7,401,678
Cost of sales		1,355,067		1,478,372
Gross profit		5,401,193		5,923,306
Expenses
Research and development		540,895		700,609
Selling, general, and administrative		389,311		403,449
Total expenses		930,206		1,104,058
Income from operations		4,470,987		4,819,248
Interest income		491,671		406,092
Income before taxes		4,962,658		5,225,340
Provision for income taxes		778,236		994,016
Net income	$	4,184,422	$	4,231,324
Net income per share – basic	$	0.87	$	0.88
Net income per share – diluted	$	0.87	$	0.88
Cash dividends declared per common share	$	1.00	$	1.00
Weighted average shares outstanding
Basic		4,833,401		4,830,826
Diluted		4,837,230		4,832,368

STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Quarter Ended December 31,
	2023		2022
Net income	$	4,184,422	$	4,231,324
Unrealized gain on marketable securities, net of tax		748,830		332,673
Comprehensive income	$	4,933,252	$	4,563,997

See accompanying notes.

4

NVE CORPORATION

STATEMENTS OF INCOME

(Unaudited)

	Nine Months Ended December 31,
	2023		2022
Revenue
Product sales	$	22,183,223	$	24,787,885
Contract research and development		537,727		668,024
Total revenue		22,720,950		25,455,909
Cost of sales		5,034,556		5,533,000
Gross profit		17,686,394		19,922,909
Expenses
Research and development		1,920,095		1,972,505
Selling, general, and administrative		1,298,211		1,210,395
Provision for credit losses		9,514		-
Total expenses		3,227,820		3,182,900
Income from operations		14,458,574		16,740,009
Interest income		1,440,289		1,040,528
Income before taxes		15,898,863		17,780,537
Provision for income taxes		2,587,145		3,318,723
Net income	$	13,311,718	$	14,461,814
Net income per share – basic	$	2.75	$	2.99
Net income per share – diluted	$	2.75	$	2.99
Cash dividends declared per common share	$	3.00	$	3.00
Weighted average shares outstanding
Basic		4,832,992		4,830,826
Diluted		4,839,725		4,831,168

STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Nine Months Ended December 31,
	2023		2022
Net income	$	13,311,718	$	14,461,814
Unrealized gain (loss) on marketable securities, net of tax		460,541		(1,133,242	)
Comprehensive income	$	13,772,259	$	13,328,572

See accompanying notes.

5

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
Comprehensive income:
Unrealized loss on marketable securities, net of tax								(53,588	)					(53,588	)
Net income											4,723,566			4,723,566
Total comprehensive income														4,669,978
Stock-based compensation						106,312								106,312
Cash dividends declared ($1.00 per share of common stock)											(4,833,401	)		(4,833,401	)
Balance as of September 30, 2023		4,833,401	$	48,334	$	19,529,791	$	(1,502,147	)	$	48,412,679		$	66,488,657
Comprehensive income:
Unrealized gain on marketable securities, net of tax								748,830						748,830
Net income											4,184,422			4,184,422
Total comprehensive income														4,933,252
Stock-based compensation						12,544								12,544
Cash dividends declared ($1.00 per share of common stock)											(4,833,401	)		(4,833,401	)
Balance as of December 31, 2023		4,833,401	$	48,334	$	19,542,335	$	(753,317	)	$	47,763,700		$	66,601,052

See accompanying notes. 

6

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, 2022		4,830,826	$	48,308	$	19,256,485	$	(318,120	)	$	45,578,456		$	64,565,129
Comprehensive income:
Unrealized loss on marketable securities, net of tax								(338,553	)					(338,553	)
Net income											4,140,116			4,140,116
Total comprehensive income														3,801,563
Stock-based compensation						7,134								7,134
Cash dividends declared ($1.00 per share of common stock)											(4,830,826	)		(4,830,826	)
Balance as of June 30, 2022		4,830,826		48,308		19,263,619		(656,673	)		44,887,746			63,543,000
Comprehensive income:
Unrealized loss on 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
Stock-based compensation						39,951								39,951
Cash dividends declared ($1.00 per share of common stock)											(4,830,826	)		(4,830,826	)
Balance as of September 30, 2022		4,830,826		48,308		19,303,570		(1,784,035	)		46,147,293			63,715,136
Comprehensive income:
Unrealized gain on marketable securities, net of tax								332,673						332,673
Net income											4,231,324			4,231,324
Total comprehensive income														4,563,997
Stock-based compensation						7,133								7,133
Cash dividends declared ($1.00 per share of common stock)											(4,830,826	)		(4,830,826	)
Balance as of December 31, 2022		4,830,826	$	48,308	$	19,310,703	$	(1,451,362	)	$	45,547,791		$	63,455,440

See accompanying notes. 

7

NVE CORPORATION

STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended December 31,
	2023			2022
OPERATING ACTIVITIES
Net income	$	13,311,718		$	14,461,814
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		156,073			187,781
Provision for current estimate of credit losses		9,514			-
Stock-based compensation		129,392			54,218
Deferred income taxes		(847,235	)		(61,972	)
Changes in operating assets and liabilities:
Accounts receivable		4,268,102			2,607,555
Inventories		(932,801	)		(1,370,592	)
Prepaid expenses and other assets		167,546			(502,423	)
Accounts payable and accrued expenses		(1,147,278	)		(627,470	)
Net cash provided by operating activities		15,115,031			14,748,911
INVESTING ACTIVITIES
Purchases of fixed assets		(16,731	)		(907,612	)
Purchases of marketable securities		(6,103,185	)		(26,618,617	)
Proceeds from maturities of marketable securities		8,400,000			18,750,000
Receipt of tenant improvement allowance		-			100,000
Net cash provided (used) by investing activities		2,280,084			(8,676,229)	)
FINANCING ACTIVITIES
Proceeds from exercise of stock options		117,527			-
Payment of dividends to shareholders		(14,497,628	)		(14,492,478	)
Cash used in financing activities		(14,380,101	)		(14,492,478	)
Increase (decrease) in cash and cash equivalents		3,015,014			(8,419,796	)
Cash and cash equivalents at beginning of period		1,669,896			10,449,510
Cash and cash equivalents at end of period	$	4,684,910		$	2,029,714
Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes	$	3,685,861		$	4,130,278

See accompanying notes. 

8

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 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 Report on Form 10-K for the fiscal year ended March 31, 2023. The results of operations for the quarter ended December 31, 2023, are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2024.

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, 2023. As of December 31, 2023, there were no changes to our significant accounting policies except for changes resulting from the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (ASC Topic 326) as described in the “Marketable securities and credit losses” section below and in Note 3.

Marketable securities and credit losses

Our marketable securities consist of corporate bonds and money market funds. Marketable securities are initially recognized at cost. Marketable securities considered to be “purchased financial assets with credit deterioration” are initially recognized at cost, less any allowance for expected credit losses. Unrealized holding gains and losses are reported in other comprehensive income, net of applicable taxes, until realized. All marketable securities are carried on the balance sheet at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use a three-level fair value hierarchy in estimating and reporting fair values of our marketable securities:

Level 1 – Securities whose fair values are determined using quoted prices in active markets for identical securities.

Level 2 – Securities whose fair values are determined using quoted prices for similar securities in active markets or quoted prices for identical securities in markets that are not active.

Level 3 – Securities whose fair values are determined using unobservable inputs.

Corporate bonds with remaining maturities of less than one year are classified as short-term and those with remaining maturities of one year or more 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.

We measure credit losses on our marketable securities at the individual security level, using the present value of expected cash flows method. Credit losses are measured as the amount by which the amortized cost basis of the security exceeds the present value of expected cash flows (discounted at the effective interest rate implicit in the security at the date of acquisition), limited by the amount by which the fair value of the security is less than its amortized cost basis. When estimating expected cash flows, we consider available information relating to past events, current conditions, and reasonable and supportable forecasts such as, past incidences of default, credit quality as reported by credit rating agencies, extent of impairment, length of time the security has been in a continuous unrealized loss position, and adverse conditions forecasted by industry, financial and economic experts that are relevant to the collectability of expected cash flows. We do not include accrued interest receivables in amortized cost and in fair value when measuring expected credit losses. We will write off uncollectible accrued interest receivable to net income in a timely manner, by reversing interest income, and therefore do not measure credit losses for accrued interest receivable. Timely manner means one year from the date the accrued interest receivable becomes past due. Accrued interest receivables are included in the balance sheet in “prepaid expenses and other assets.”

9

Accounts Receivable and Allowance for Credit Losses

We grant credit to customers in the normal course of business and at times require customers to pay for orders before shipment. Accounts receivable are presented on the balance sheet net of any allowance for credit losses. We measure credit losses on our trade accounts receivable on a pool basis, and in some cases, on an individual basis, using the loss-rate method. Accounts receivable are pooled based on geographical locations because we believe accounts originating from the same geographical location share risk characteristics. When estimating expected credit losses on our trade accounts receivable, we consider available information relating to past events, current conditions, and reasonable and supportable forecasts such as historical loss rate, current age and remaining term of the receivable relative to our current days sales outstanding ratio, pending orders of the customer relative to accounts receivable balance as of the reporting date and amounts paid by the customers subsequent to the reporting period end but before the financial statements are issued.

NOTE 3. RECENTLY ISSUED ACCOUNTING STANDARDS

Recently Adopted Accounting Standard

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. ASU 2016-13 requires a financial asset (or a group of financial assets) to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. In November 2018 the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarifies codification and corrects unintended application of the guidance, and in November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarifies or addresses specific issues about certain aspects of ASU 2016-13. In November 2019 the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, and in February 2020 the FASB issued ASU No. 2020-02, 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), both of which delay the effective date of ASU 2016-13 by three years for certain Smaller Reporting Companies such as us. In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments; which modifies the measurement of expected credit losses of certain financial instruments. We adopted ASU
No. 2016-13 beginning with the quarter ended June 30, 2023. The adoption resulted in disclosure changes and required us to consider the likelihood of default and to measure our allowance for credit losses over the contractual term of our receivables. The adoption did not have a material impact on the financial statements as of December 31 or April 1, 2023.

New Accounting Standard Not Yet Adopted

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires additional quantitative and qualitative income tax disclosures to enable financial statements users better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. For public business entities, ASU 2023-09 is effective for annual periods beginning after December 15, 2024, which will be fiscal 2026 for us. We expect the adoption to result in disclosure changes only.

We do not expect the adoption of other 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 December 31,
	2023	2022
Weighted average common shares outstanding – basic	4,833,401	4,830,826
Dilutive effect of stock options	3,829	1,542
Shares used in computing net income per share – diluted	4,837,230	4,832,368

	Nine Months Ended December 31,
	2023	2022
Weighted average common shares outstanding – basic	4,832,992	4,830,826
Dilutive effect of stock options	6,733	342
Shares used in computing net income per share – diluted	4,839,725	4,831,168

10

NOTE 5. MARKETABLE SECURITIES

The following table shows the major categories of our marketable securities and their contractual maturities as of December 31, 2023:

	Total		<1 Year		1–3 Years		3–6 Years
Money market funds	$	4,259,340	$	4,259,340	$	-	$	-
Corporate bonds		50,006,533		14,335,619		27,222,387		8,448,527
Total	$	54,265,873	$	18,594,959	$	27,222,387	$	8,448,527

Total marketable securities represent approximately 80% of our total assets as of December 31, 2023. Marketable securities as of December 31, 2023, had remaining maturities between one day and 64 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 $366,452 as of December 31, 2023, and $425,372 as of March 31, 2023, 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 December 31, 2023, aggregated by credit rating:

Credit Rating		Fair Value
AAA	$	5,559,340
AA+		2,179,443
AA		6,745,419
AA-		21,194,039
A+		2,954,497
A		9,650,572
A-		5,982,563
Total	$	54,265,873

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 December 31, 2023						As of March 31, 2023
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	4,259,340	$	-	$	4,259,340	$	906,141	$	-	$	906,141
Corporate bonds		-		50,006,533		50,006,533		-		51,638,142		51,638,142
Total	$	4,259,340	$	50,006,533	$	54,265,873	$	906,141	$	51,638,142	$	52,544,283

The following table shows the amortized cost, fair value, and gross unrealized holding gains and losses of our marketable securities as of December 31 and March 31, 2023:

	As of December 31, 2023									As of March 31, 2023
	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	$	4,259,340	$	-	$	-		$	4,259,340	$	906,141	$	-	$	-		$	906,141
Corporate bonds		50,970,841		7,965		(972,273	)		50,006,533		53,191,981		1,007		(1,554,846	)		51,638,142
Total	$	55,230,181	$	7,965	$	(972,273	)	$	54,265,873	$	54,098,122	$	1,007	$	(1,554,846	)	$	52,544,283

11

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 December 31 and March 31, 2023.

	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, 2023
Corporate bonds	$	1,848,307	$	(17,747	)	$	40,715,403	$	(954,526	)	$	42,563,710	$	(972,273	)
Total	$	1,848,307	$	(17,747	)	$	40,715,403	$	(954,526	)	$	42,563,710	$	(972,273	)
As of March 31, 2023
Corporate bonds	$	37,084,628	$	(590,967	)	$	13,294,817	$	(963,879	)	$	50,379,445	$	(1,554,846	)
Total	$	37,084,628	$	(590,967	)	$	13,294,817	$	(963,879	)	$	50,379,445	$	(1,554,846	)

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 December 31,
	2023			2022
Unrealized gain from marketable securities	$	958,564		$	425,849
Tax effects		(209,734	)		(93,176	)
Unrealized gain on marketable securities, net of tax	$	748,830		$	332,673

	Nine Months Ended December 31,
	2023			2022
Unrealized loss from marketable securities	$	589,530		$	(1,450,643	)
Tax effects		(128,989	)		317,401
Unrealized gain (loss) on marketable securities, net of tax	$	460,541		$	(1,133,242	)

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, 2023	$	15,000
Provision for credit losses		212,440
Change in provision for credit losses		(202,926	)
Specific accounts deemed uncollectible		(9,514	)
Allowance for credit losses as of December 31, 2023	$	15,000

NOTE 7. INVENTORIES

Inventories are shown in the following table:

		Dec. 31, 2023		March 31, 2023
Raw materials	$	2,068,092	$	1,601,962
Work in process		2,995,391		3,781,894
Finished goods		2,286,328		1,033,154
Total inventories	$	7,349,811	$	6,417,010

12

NOTE 8. STOCK-BASED COMPENSATION

Stock-based compensation expense was $12,544 for the third quarter of fiscal 2024, $7,133 for the third quarter of fiscal 2023, $129,392 for the first nine months of fiscal 2024, and $54,218 for the first nine months of fiscal 2023. We calculate share-based compensation expense using the Black-Scholes-Merton standard option-pricing model.

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 December 31, 2023, federal and state estimated tax overpayments of $90,387 were included in the balance sheet in “Prepaid expenses and other assets.”

We had no unrecognized tax benefits as of December 31, 2023, 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, 2023, we had no accrued interest related to uncertain tax positions. The tax years 2019 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 Dec. 31, 2023			Nine Months Ended Dec. 31, 2023
Operating lease cost	$	37,754		$	113,261
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for leases	$	44,433		$	133,299
Remaining lease term		27 months
Discount rate		3.5	%

The following table shows the maturities of lease liabilities as of December 31, 2023:

Year Ending March 31,	Operating Lease Liabilities
2024	$	45,341
2025		182,271
2026		184,995
Total lease payments		412,607
Imputed lease interest		(15,332	)
Total lease liabilities	$	397,275

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 December 31, 2023. We have not repurchased any of our Common Stock during fiscal 2024.

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 $27,904 for the third quarter of fiscal 2024, $21,484 for the third quarter of fiscal 2023, $79,388 for the first nine months of fiscal 2024, and $73,661 for the first nine months of fiscal 2023.

13

NOTE 13. SUBSEQUENT EVENTS

On January 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 February 28, 2024, to shareholders of record as of the close of business January 29, 2024.

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 year ended March 31, 2023, as updated in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 and Part II, Item 1A of this report.

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 year ended March 31, 2023. As of December 31, 2023, our critical accounting policies and estimates continued to include investment valuation, inventory valuation, and deferred tax assets estimation.

14

Quarter ended December 31, 2023, compared to quarter ended December 31, 2022

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

	Percentage of Revenue Quarter Ended December 31,				Quarter- to-Quarter
	2023		2022		Change
Revenue
Product sales	94.2	%	97.3	%	(11.6	)%
Contract research and development	5.8	%	2.7	%	93.9
Total revenue	100.0	%	100.0	%	(8.7	)%
Cost of sales	20.1	%	20.0	%	(8.3	)%
Gross profit	79.9	%	80.0	%	(8.8	)%
Expenses
Research and development	8.0	%	9.5	%	(22.8	)%
Selling, general, and administrative	5.8	%	5.4	%	(3.5	)%
Total expenses	13.8	%	14.9	%	(15.7	)%
Income from operations	66.1	%	65.1	%	(7.2	)%
Interest income	7.3	%	5.5	%	21.1	%
Income before taxes	73.4	%	70.6	%	(5.0	)%
Provision for income taxes	11.5	%	13.4	%	(21.7	)%
Net income	61.9	%	57.2	%	(1.1	)%

Total revenue for the quarter ended December 31, 2023 (the third quarter of fiscal 2024) decreased 9% compared to the quarter ended December 31, 2022 (the third quarter of fiscal 2023). The decrease was due to a 12% decrease in product sales partially offset by a 94% increase in contract research and development revenue. The decrease in product sales was primarily due to decreased purchases by existing customers, particularly in the defense industry, and a semiconductor industry downturn. The increase in contract research and development revenue was due to new customer-funded research and development contracts.

Total expenses decreased 16% for the third quarter of fiscal 2024 compared to the third quarter of fiscal 2023 primarily due to a 23% decrease in research and development expense and a 4% decrease in selling, general, and administrative expense. The decrease in research and development expense was primarily due to the redeployment of resources to customer-funded research and development projects. The decrease in selling, general, and administrative expense was primarily due to decreased performance-based compensation accruals.

Interest income for the third quarter of fiscal 2024 increased 21% due to increased yields on securities purchased after December 31, 2022.

Our effective tax rate, which is the provision for income taxes as a percentage of income before taxes, decreased to 16% for the third quarter of fiscal 2024 compared to 19% for the third quarter of fiscal 2023. The decrease was primarily due to an increase in certain tax deductions. Our effective tax rate can vary from quarter to quarter. Our effective tax rate in future quarters may be higher than the effective tax rate in the quarter ended December 31, 2023.

The 1% decrease in net income for the third quarter of fiscal 2024 compared to the prior-year quarter was primarily due to decreased revenue, which was nearly offset by decreased expenses, increased interest income, and a lower effective tax rate.

15

Nine months ended December 31, 2023, compared to nine months ended December 31, 2022

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

	Percentage of Revenue Nine Months Ended Dec. 31,				Period- to-Period
	2023		2022		Change
Revenue
Product sales	97.6	%	97.4	%	(10.5	)%
Contract research and development	2.4	%	2.6	%	(19.5	)%
Total revenue	100.0	%	100.0	%	(10.7	)%
Cost of sales	22.2	%	21.7	%	(9.0	)%
Gross profit	77.8	%	78.3	%	(11.2	)%
Expenses
Research and development	8.5	%	7.7	%	(2.7	)%
Selling, general, and administrative	5.7	%	4.8	%	7.3	%
Provision for credit losses	0.0	%	-		-
Total expenses	14.2	%	12.5	%	1.4	%
Income from operations	63.6	%	65.8	%	(13.6	)%
Interest income	6.3	%	4.1	%	38.4	%
Income before taxes	69.9	%	69.9	%	(10.6	)%
Provision for income taxes	11.3	%	13.1	%	(22.0	)%
Net income	58.6	%	56.8	%	(8.0	)%

Total revenue for the nine months ended December 31, 2023, decreased 11% compared to the nine months ended December 31, 2022. The decrease was due to an 11% decrease in product sales and a 20% decrease in contract research and development revenue. The decrease in product sales was primarily due to decreased purchases by existing customers, particularly in the defense industry, and a semiconductor industry downturn. The decrease in contract research and development revenue was due to the completion of certain contracts.

Total expenses increased 1% for the first nine months of fiscal 2024 compared to the first nine months of fiscal 2023 due to a 7% increase in selling, general, and administrative expense partially offset by a 3% decrease in research and development expense. The increase in selling, general, and administrative expenses was primarily due to increased staffing and increased employee compensation expenses. The decrease in research and development expense was due to variations in staffing.

Interest income for the first nine months of fiscal 2024 increased 38% due to higher yields on securities purchased after December 31, 2022.

Our effective tax rate, which is the provision for income taxes as a percentage of income before taxes, decreased to 16% for the first nine months of fiscal 2024 from 19% for the first nine months of fiscal 2023. The decrease was primarily due to an increase in certain tax deductions.

The 8% decrease in net income for the first nine months of fiscal 2024 compared to the prior-year period was primarily due to decreased revenue and increased expenses, partially offset by increased interest income and a lower effective tax rate.

16

Liquidity and Capital Resources

Overview

Cash and cash equivalents were $4,684,910 as of December 31, 2023, compared to $1,669,896 as of March 31, 2023. The $3,015,014 increase in cash and cash equivalents during the first nine months of fiscal 2024 was due to $15,115,031 of cash provided by operating activities and $2,280,084 of cash provided by investing activities, partially offset by $14,380,101 of cash used in financing activities.

Operating Activities

Net cash provided by operating activities related to product sales was our primary source of working capital for the current and prior-year quarters. Net cash provided by operating activities was $15,115,031 for the first nine months of fiscal 2024 compared to $14,748,911 for the first nine months of fiscal 2023.

Accounts receivable decreased by $4,268,102 during the first nine months of fiscal 2024 due to the timing of customer payments and decreased revenue.

Inventories increased by $932,801 during the first nine months of fiscal 2024 primarily due to our decision to increase inventories to mitigate longer vendor lead times and to support growth.

Accounts payable and accrued expenses decreased $1,147,278 during the first nine months of fiscal 2024 primarily due to decreases in income tax payable, long-term operating lease liability, and accruals for performance-based compensation.

Investing Activities

Cash provided by investing activities during the first nine months of fiscal 2024 consisted of $8,400,000 in proceeds from maturities of marketable securities, partially offset by $16,731 of fixed assets purchases and $6,103,185 of marketable securities purchases. Purchases of fixed assets can vary from period to period depending on our needs, strategic goals, and equipment purchasing opportunities. Such purchases are likely to increase significantly in future periods.

Financing Activities

Cash used in financing activities during the nine months ended December 31, 2023, consisted of $14,497,628 of cash dividends paid to shareholders, partially offset by $117,527 in proceeds from the exercise of stock options.

In addition to cash dividends to shareholders paid in the third quarter of fiscal 2024, on January 17, 2024, we announced that our Board of Directors had declared a cash dividend of $1.00 per share of Common Stock, or $4,833,401 based on shares outstanding as of January 12, 2024, to be paid February 28, 2024, to shareholders of record as of the close of business January 29, 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.

17

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 December 31, 2023, our disclosure controls and procedures were effective.

Changes in Internal Controls

During the quarter ended December 31, 2023, 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 II–OTHER 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, 2023, as updated in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, except the following risk factor is replaced in its entirety by the following to reflect an amendment to our Supplier Partnering Agreement with Abbott Laboratories that extended the term of the Agreement through December 31, 2024:

We may lose revenue if we are unable to renew customer agreements

We have agreements with certain customers, including a Supplier Partnering Agreement, as amended, with Abbott Laboratories, which expires December 31, 2024. We cannot predict if these agreements will be renewed, or if renewed, under what terms. Although it is possible we could continue to sell products to these customers without formal agreements, an inability to agree on mutually acceptable terms could have a significant adverse impact on our revenue or profitability.”

Item 4. Mine Safety Disclosures.

None.

18

Item 6. Exhibits. 

Exhibit #	Description
10	Amendment No. 10 to Supplier Partnering Agreement between Abbott and the company (incorporated by reference to the Form 8-K/A filed January 3, 2024).
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)

19

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)
January 17, 2024	/s/ DANIEL A. BAKER
Date	Daniel A. Baker
	President and Chief Executive Officer
January 17, 2024	/s/ DANIEL NELSON
Date	Daniel Nelson
	Principal Financial Officer

20

EX-31.1

hibit 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: January 17, 2024

/s/ DANIEL A. BAKER

Daniel A. Baker

President and Chief Executive Officer

EX-31.2

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: January 17, 2024

/s/ DANIEL NELSON

Daniel Nelson

Principal Financial Officer

EX-32.1

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 December 31, 2023, 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: January 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.

XML

Document and Entity Information	9 Months Ended
	Dec. 31, 2023 $ / shares shares
Details
Registrant CIK	0000724910
Fiscal Year End	--03-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
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 | $ / shares	$ 0.01
Entity Common Stock, Shares Outstanding | shares	4,833,401
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3

XML

BALANCE SHEETS (December 31, 2023 Unaudited) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Current assets
Cash and cash equivalents	$ 4,684,910	$ 1,669,896
Marketable securities, short-term (amortized cost of $14,556,450 as of December 31, 2023, and $15,696,135 as of March 31, 2023)	14,335,619	15,513,095
Accounts receivable, net of allowance for credit losses of $15,000	2,245,728	6,523,344
Inventories	7,349,811	6,417,010
Prepaid expenses and other assets	597,305	663,459
Total current assets	29,213,373	30,786,804
Fixed assets
Machinery and equipment	10,501,096	10,484,365
Leasehold improvements	1,956,309	1,956,309
Less accumulated depreciation and amortization	11,326,985	11,095,236
Net fixed assets	1,130,420	1,345,438
Deferred tax assets	1,290,284	572,038
Marketable securities, long-term (amortized cost of $36,414,391 as of December 31, 2023, and $37,495,846 as of March 31, 2023)	35,670,914	36,125,047
Right-of-use asset - operating lease	324,451	425,843
Total assets	67,629,442	69,255,170
Current liabilities
Accounts payable	170,701	281,712
Accrued payroll and other	460,414	1,375,250
Operating lease	178,490	175,798
Total current liabilities	809,605	1,832,760
Operating lease	218,785	342,908
Total liabilities	1,028,390	2,175,668
Shareholders' equity
Common Stock, Value	48,334	48,308
Additional paid-in capital	19,542,335	19,295,442
Accumulated other comprehensive loss	(753,317)	(1,213,858)
Retained earnings	47,763,700	48,949,610
Total shareholders' equity	66,601,052	67,079,502
Total liabilities and shareholders' equity	$ 67,629,442	$ 69,255,170

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BALANCE SHEETS (December 31, 2023 Unaudited) - Parenthetical - USD ($)	Dec. 31, 2023	Mar. 31, 2023
BALANCE SHEETS (December 31, 2023 Unaudited)
Debt Instrument, Unamortized Discount, Current	$ 14,556,450	$ 15,696,135
Accounts Receivable, Allowance for Credit Loss	15,000	15,000
Debt Instrument, Unamortized Discount, Noncurrent	$ 36,414,391	$ 37,495,846
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	4,833,401	4,830,826
Common Stock, Shares, Outstanding	4,833,401	4,830,826

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STATEMENTS OF INCOME (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenue
Product sales	$ 6,366,009	$ 7,200,385	$ 22,183,223	$ 24,787,885
Contract research and development	390,251	201,293	537,727	668,024
Total revenue	6,756,260	7,401,678	22,720,950	25,455,909
Cost of sales	1,355,067	1,478,372	5,034,556	5,533,000
Gross profit	5,401,193	5,923,306	17,686,394	19,922,909
Expenses
Research and development	540,895	700,609	1,920,095	1,972,505
Selling, general, and administrative	389,311	403,449	1,298,211	1,210,395
Total expenses	930,206	1,104,058	3,227,820	3,182,900
Provision for credit losses			9,514	0
Income from operations	4,470,987	4,819,248	14,458,574	16,740,009
Interest income	491,671	406,092	1,440,289	1,040,528
Income before taxes	4,962,658	5,225,340	15,898,863	17,780,537
Provision for income taxes	778,236	994,016	2,587,145	3,318,723
Net income	$ 4,184,422	$ 4,231,324	$ 13,311,718	$ 14,461,814
Net income per share - basic	$ 0.87	$ 0.88	$ 2.75	$ 2.99
Net income per share - diluted	0.87	0.88	2.75	2.99
Cash dividends declared per common share	$ 1.00	$ 1.00	$ 3.00	$ 3.00
Weighted average shares outstanding
Weighted Average Number of Shares Outstanding, Basic	4,833,401	4,830,826	4,832,992	4,830,826
Weighted Average Number of Shares Outstanding, Diluted	4,837,230	4,832,368	4,839,725	4,831,168

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STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($)	3 Months Ended						9 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2023	Dec. 31, 2022
STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
Net income	$ 4,184,422	$ 4,723,566	$ 4,403,730	$ 4,231,324	$ 6,090,373	$ 4,140,116	$ 13,311,718	$ 14,461,814
Unrealized loss from marketable securities, net of tax	748,830	(53,588)	(234,701)	332,673	(1,127,362)	(338,553)	460,541	(1,133,242)
Comprehensive income	$ 4,933,252	$ 4,669,978	$ 4,169,029	$ 4,563,997	$ 4,963,011	$ 3,801,563	$ 13,772,259	$ 13,328,572

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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, 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 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 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 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 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
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
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
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)
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, 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					460,541
Net income					13,311,718
Total comprehensive income					13,772,259
Shares Outstanding, Ending at Dec. 31, 2023	4,833,401
Equity Balance, Ending at Dec. 31, 2023	$ 48,334	19,542,335	(753,317)	47,763,700	66,601,052
Equity Balance, Starting at Jun. 30, 2023	$ 48,334	19,423,479	(1,448,559)	48,522,514	66,545,768
Shares Outstanding, Starting at Jun. 30, 2023	4,833,401
Unrealized loss from marketable securities, net of tax			(53,588)		(53,588)
Net income				4,723,566	4,723,566
Total comprehensive income					4,669,978
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture		106,312			106,312
Cash dividends declared ($1.00 per share of common stock)				(4,833,401)	(4,833,401)
Shares Outstanding, Ending at Sep. 30, 2023	4,833,401
Equity Balance, Ending at Sep. 30, 2023	$ 48,334	19,529,791	(1,502,147)	48,412,679	66,488,657
Unrealized loss from marketable securities, net of tax			748,830		748,830
Net income				4,184,422	4,184,422
Total comprehensive income					4,933,252
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture		12,544			12,544
Cash dividends declared ($1.00 per share of common stock)				(4,833,401)	(4,833,401)
Shares Outstanding, Ending at Dec. 31, 2023	4,833,401
Equity Balance, Ending at Dec. 31, 2023	$ 48,334	$ 19,542,335	$ (753,317)	$ 47,763,700	$ 66,601,052

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STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
OPERATING ACTIVITIES
Net income	$ 13,311,718	$ 14,461,814
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	156,073	187,781
Provision for current estimate of credit losses	9,514	0
Stock-based compensation	129,392	54,218
Deferred income taxes	(847,235)	(61,972)
Changes in operating assets and liabilities
Accounts receivable	4,268,102	2,607,555
Inventories	(932,801)	(1,370,592)
Prepaid expenses and other assets	167,546	(502,423)
Accounts payable and accrued expenses	(1,147,278)	(627,470)
Net cash provided by operating activities	15,115,031	14,748,911
INVESTING ACTIVITIES
Purchases of fixed assets	(16,731)	(907,612)
Purchases of marketable securities	(6,103,185)	(26,618,617)
Proceeds from maturities of marketable securities	8,400,000	18,750,000
Receipt of tenant improvement allowance	0	100,000
Net cash provided (used) by investing activities	2,280,084	(8,676,229)
FINANCING ACTIVITIES
Proceeds from exercise of stock options	117,527	0
Payment of dividends to shareholders	(14,497,628)	(14,492,478)
Cash used in financing activities	(14,380,101)	(14,492,478)
Increase (decrease) in cash and cash equivalents	3,015,014	(8,419,796)
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Beginning Balance	1,669,896	10,449,510
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Ending Balance	4,684,910	2,029,714
Supplemental disclosures of cash flow information
Cash paid during the period for income taxes	$ 3,685,861	$ 4,130,278

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NOTE 1. DESCRIPTION OF BUSINESS

9 Months Ended

Dec. 31, 2023

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. 

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NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Dec. 31, 2023

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 Report on Form 10-K for the fiscal year ended March 31, 2023. The results of operations for the quarter ended December 31, 2023, are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2024.

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, 2023. As of December 31, 2023, there were no changes to our significant accounting policies except for changes resulting from the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (ASC Topic 326) as described in the “Marketable securities and credit losses” section below and in Note 3.

Marketable securities and credit losses

Our marketable securities consist of corporate bonds and money market funds. Marketable securities are initially recognized at cost. Marketable securities considered to be “purchased financial assets with credit deterioration” are initially recognized at cost, less any allowance for expected credit losses. Unrealized holding gains and losses are reported in other comprehensive income, net of applicable taxes, until realized. All marketable securities are carried on the balance sheet at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use a three-level fair value hierarchy in estimating and reporting fair values of our marketable securities:

Level 1 – Securities whose fair values are determined using quoted prices in active markets for identical securities.

Level 2 – Securities whose fair values are determined using quoted prices for similar securities in active markets or quoted prices for identical securities in markets that are not active.

Level 3 – Securities whose fair values are determined using unobservable inputs.

Corporate bonds with remaining maturities of less than one year are classified as short-term and those with remaining maturities of one year or more 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.

We measure credit losses on our marketable securities at the individual security level, using the present value of expected cash flows method. Credit losses are measured as the amount by which the amortized cost basis of the security exceeds the present value of expected cash flows (discounted at the effective interest rate implicit in the security at the date of acquisition), limited by the amount by which the fair value of the security is less than its amortized cost basis. When estimating expected cash flows, we consider available information relating to past events, current conditions, and reasonable and supportable forecasts such as, past incidences of default, credit quality as reported by credit rating agencies, extent of impairment, length of time the security has been in a continuous unrealized loss position, and adverse conditions forecasted by industry, financial and economic experts that are relevant to the collectability of expected cash flows. We do not include accrued interest receivables in amortized cost and in fair value when measuring expected credit losses. We will write off uncollectible accrued interest receivable to net income in a timely manner, by reversing interest income, and therefore do not measure credit losses for accrued interest receivable. Timely manner means one year from the date the accrued interest receivable becomes past due. Accrued interest receivables are included in the balance sheet in “prepaid expenses and other assets.”

Accounts Receivable and Allowance for Credit Losses

We grant credit to customers in the normal course of business and at times require customers to pay for orders before shipment. Accounts receivable are presented on the balance sheet net of any allowance for credit losses. We measure credit losses on our trade accounts receivable on a pool basis, and in some cases, on an individual basis, using the loss-rate method. Accounts receivable are pooled based on geographical locations because we believe accounts originating from the same geographical location share risk characteristics. When estimating expected credit losses on our trade accounts receivable, we consider available information relating to past events, current conditions, and reasonable and supportable forecasts such as historical loss rate, current age and remaining term of the receivable relative to our current days sales outstanding ratio, pending orders of the customer relative to accounts receivable balance as of the reporting date and amounts paid by the customers subsequent to the reporting period end but before the financial statements are issued.

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NOTE 3. RECENTLY ISSUED ACCOUNTING STANDARDS

9 Months Ended

Dec. 31, 2023

Notes

NOTE 3. RECENTLY ISSUED ACCOUNTING STANDARDS

NOTE 3. RECENTLY ISSUED ACCOUNTING STANDARDS

Recently Adopted Accounting Standard

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. ASU 2016-13 requires a financial asset (or a group of financial assets) to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. In November 2018 the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarifies codification and corrects unintended application of the guidance, and in November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarifies or addresses specific issues about certain aspects of ASU 2016-13. In November 2019 the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, and in February 2020 the FASB issued ASU No. 2020-02, 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), both of which delay the effective date of ASU 2016-13 by three years for certain Smaller Reporting Companies such as us. In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments; which modifies the measurement of expected credit losses of certain financial instruments. We adopted ASU
No. 2016-13 beginning with the quarter ended June 30, 2023. The adoption resulted in disclosure changes and required us to consider the likelihood of default and to measure our allowance for credit losses over the contractual term of our receivables. The adoption did not have a material impact on the financial statements as of December 31 or April 1, 2023.

New Accounting Standard Not Yet Adopted

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires additional quantitative and qualitative income tax disclosures to enable financial statements users better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. For public business entities, ASU 2023-09 is effective for annual periods beginning after December 15, 2024, which will be fiscal 2026 for us. We expect the adoption to result in disclosure changes only.

We do not expect the adoption of other 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.

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NOTE 4. NET INCOME PER SHARE

9 Months Ended

Dec. 31, 2023

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,
	2023	2022
Weighted average common shares outstanding – basic	4,833,401	4,830,826
Dilutive effect of stock options	3,829	1,542
Shares used in computing net income per share – diluted	4,837,230	4,832,368

	Nine Months Ended December 31,
	2023	2022
Weighted average common shares outstanding – basic	4,832,992	4,830,826
Dilutive effect of stock options	6,733	342
Shares used in computing net income per share – diluted	4,839,725	4,831,168

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NOTE 5. MARKETABLE SECURITIES

9 Months Ended

Dec. 31, 2023

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 December 31, 2023:

	Total		<1 Year		1–3 Years		3–6 Years
Money market funds	$	4,259,340	$	4,259,340	$	-	$	-
Corporate bonds		50,006,533		14,335,619		27,222,387		8,448,527
Total	$	54,265,873	$	18,594,959	$	27,222,387	$	8,448,527

Total marketable securities represent approximately 80% of our total assets as of December 31, 2023. Marketable securities as of December 31, 2023, had remaining maturities between one day and 64 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 $366,452 as of December 31, 2023, and $425,372 as of March 31, 2023, 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 December 31, 2023, aggregated by credit rating:

Credit Rating		Fair Value
AAA	$	5,559,340
AA+		2,179,443
AA		6,745,419
AA-		21,194,039
A+		2,954,497
A		9,650,572
A-		5,982,563
Total	$	54,265,873

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 December 31, 2023						As of March 31, 2023
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	4,259,340	$	-	$	4,259,340	$	906,141	$	-	$	906,141
Corporate bonds		-		50,006,533		50,006,533		-		51,638,142		51,638,142
Total	$	4,259,340	$	50,006,533	$	54,265,873	$	906,141	$	51,638,142	$	52,544,283

The following table shows the amortized cost, fair value, and gross unrealized holding gains and losses of our marketable securities as of December 31 and March 31, 2023:

	As of December 31, 2023									As of March 31, 2023
	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	$	4,259,340	$	-	$	-		$	4,259,340	$	906,141	$	-	$	-		$	906,141
Corporate bonds		50,970,841		7,965		(972,273	)		50,006,533		53,191,981		1,007		(1,554,846	)		51,638,142
Total	$	55,230,181	$	7,965	$	(972,273	)	$	54,265,873	$	54,098,122	$	1,007	$	(1,554,846	)	$	52,544,283

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 December 31 and March 31, 2023.

	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, 2023
Corporate bonds	$	1,848,307	$	(17,747	)	$	40,715,403	$	(954,526	)	$	42,563,710	$	(972,273	)
Total	$	1,848,307	$	(17,747	)	$	40,715,403	$	(954,526	)	$	42,563,710	$	(972,273	)
As of March 31, 2023
Corporate bonds	$	37,084,628	$	(590,967	)	$	13,294,817	$	(963,879	)	$	50,379,445	$	(1,554,846	)
Total	$	37,084,628	$	(590,967	)	$	13,294,817	$	(963,879	)	$	50,379,445	$	(1,554,846	)

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 December 31,
	2023			2022
Unrealized gain from marketable securities	$	958,564		$	425,849
Tax effects		(209,734	)		(93,176	)
Unrealized gain on marketable securities, net of tax	$	748,830		$	332,673

	Nine Months Ended December 31,
	2023			2022
Unrealized loss from marketable securities	$	589,530		$	(1,450,643	)
Tax effects		(128,989	)		317,401
Unrealized gain (loss) on marketable securities, net of tax	$	460,541		$	(1,133,242	)

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NOTE 6. ALLOWANCE FOR CREDIT LOSSES ON ACCOUNTS RECEIVABLES

9 Months Ended

Dec. 31, 2023

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, 2023	$	15,000
Provision for credit losses		212,440
Change in provision for credit losses		(202,926	)
Specific accounts deemed uncollectible		(9,514	)
Allowance for credit losses as of December 31, 2023	$	15,000

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NOTE 7. INVENTORIES

9 Months Ended

Dec. 31, 2023

Notes

NOTE 7. INVENTORIES

NOTE 7. INVENTORIES

Inventories are shown in the following table:

		Dec. 31, 2023		March 31, 2023
Raw materials	$	2,068,092	$	1,601,962
Work in process		2,995,391		3,781,894
Finished goods		2,286,328		1,033,154
Total inventories	$	7,349,811	$	6,417,010

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NOTE 8. STOCK-BASED COMPENSATION

9 Months Ended

Dec. 31, 2023

Notes

NOTE 8. STOCK-BASED COMPENSATION

NOTE 8. STOCK-BASED COMPENSATION

Stock-based compensation expense was $12,544 for the third quarter of fiscal 2024, $7,133 for the third quarter of fiscal 2023, $129,392 for the first nine months of fiscal 2024, and $54,218 for the first nine months of fiscal 2023. We calculate share-based compensation expense using the Black-Scholes-Merton standard option-pricing model.

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NOTE 9. INCOME TAXES

9 Months Ended

Dec. 31, 2023

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 December 31, 2023, federal and state estimated tax overpayments of $90,387 were included in the balance sheet in “Prepaid expenses and other assets.”

We had no unrecognized tax benefits as of December 31, 2023, 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, 2023, we had no accrued interest related to uncertain tax positions. The tax years 2019 through 2023 remain open to examination by the major taxing jurisdictions to which we are subject.

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NOTE 10. LEASES

9 Months Ended

Dec. 31, 2023

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 Dec. 31, 2023			Nine Months Ended Dec. 31, 2023
Operating lease cost	$	37,754		$	113,261
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for leases	$	44,433		$	133,299
Remaining lease term		27 months
Discount rate		3.5	%

The following table shows the maturities of lease liabilities as of December 31, 2023:

Year Ending March 31,	Operating Lease Liabilities
2024	$	45,341
2025		182,271
2026		184,995
Total lease payments		412,607
Imputed lease interest		(15,332	)
Total lease liabilities	$	397,275

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NOTE 11. STOCK REPURCHASE PROGRAM

9 Months Ended

Dec. 31, 2023

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 December 31, 2023. We have not repurchased any of our Common Stock during fiscal 2024.

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

9 Months Ended

Dec. 31, 2023

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 $27,904 for the third quarter of fiscal 2024, $21,484 for the third quarter of fiscal 2023, $79,388 for the first nine months of fiscal 2024, and $73,661 for the first nine months of fiscal 2023.

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NOTE 13. SUBSEQUENT EVENTS

9 Months Ended

Dec. 31, 2023

Notes

NOTE 13. SUBSEQUENT EVENTS

NOTE 13. SUBSEQUENT EVENTS

On January 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 February 28, 2024, to shareholders of record as of the close of business January 29, 2024.

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NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies)

9 Months Ended

Dec. 31, 2023

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 Report on Form 10-K for the fiscal year ended March 31, 2023. The results of operations for the quarter ended December 31, 2023, are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2024.

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NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES: Significant accounting policies (Policies)

9 Months Ended

Dec. 31, 2023

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, 2023. As of December 31, 2023, there were no changes to our significant accounting policies except for changes resulting from the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (ASC Topic 326) as described in the “Marketable securities and credit losses” section below and in Note 3.

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NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES: Marketable securities and credit losses (Policies)

9 Months Ended

Dec. 31, 2023

Policies

Marketable securities and credit losses

Marketable securities and credit losses

Our marketable securities consist of corporate bonds and money market funds. Marketable securities are initially recognized at cost. Marketable securities considered to be “purchased financial assets with credit deterioration” are initially recognized at cost, less any allowance for expected credit losses. Unrealized holding gains and losses are reported in other comprehensive income, net of applicable taxes, until realized. All marketable securities are carried on the balance sheet at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use a three-level fair value hierarchy in estimating and reporting fair values of our marketable securities:

Level 1 – Securities whose fair values are determined using quoted prices in active markets for identical securities.

Level 2 – Securities whose fair values are determined using quoted prices for similar securities in active markets or quoted prices for identical securities in markets that are not active.

Level 3 – Securities whose fair values are determined using unobservable inputs.

Corporate bonds with remaining maturities of less than one year are classified as short-term and those with remaining maturities of one year or more 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.

We measure credit losses on our marketable securities at the individual security level, using the present value of expected cash flows method. Credit losses are measured as the amount by which the amortized cost basis of the security exceeds the present value of expected cash flows (discounted at the effective interest rate implicit in the security at the date of acquisition), limited by the amount by which the fair value of the security is less than its amortized cost basis. When estimating expected cash flows, we consider available information relating to past events, current conditions, and reasonable and supportable forecasts such as, past incidences of default, credit quality as reported by credit rating agencies, extent of impairment, length of time the security has been in a continuous unrealized loss position, and adverse conditions forecasted by industry, financial and economic experts that are relevant to the collectability of expected cash flows. We do not include accrued interest receivables in amortized cost and in fair value when measuring expected credit losses. We will write off uncollectible accrued interest receivable to net income in a timely manner, by reversing interest income, and therefore do not measure credit losses for accrued interest receivable. Timely manner means one year from the date the accrued interest receivable becomes past due. Accrued interest receivables are included in the balance sheet in “prepaid expenses and other assets.”

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NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES: Accounts Receivable and Allowance for Credit Losses (Policies)

9 Months Ended

Dec. 31, 2023

Policies

Accounts Receivable and Allowance for Credit Losses

Accounts Receivable and Allowance for Credit Losses

We grant credit to customers in the normal course of business and at times require customers to pay for orders before shipment. Accounts receivable are presented on the balance sheet net of any allowance for credit losses. We measure credit losses on our trade accounts receivable on a pool basis, and in some cases, on an individual basis, using the loss-rate method. Accounts receivable are pooled based on geographical locations because we believe accounts originating from the same geographical location share risk characteristics. When estimating expected credit losses on our trade accounts receivable, we consider available information relating to past events, current conditions, and reasonable and supportable forecasts such as historical loss rate, current age and remaining term of the receivable relative to our current days sales outstanding ratio, pending orders of the customer relative to accounts receivable balance as of the reporting date and amounts paid by the customers subsequent to the reporting period end but before the financial statements are issued.

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NOTE 6. ALLOWANCE FOR CREDIT LOSSES ON ACCOUNTS RECEIVABLES: Schedule of Accounts, Notes, Loans and Financing Receivable (Policies)

9 Months Ended

Dec. 31, 2023

Policies

Schedule of Accounts, Notes, Loans and Financing Receivable

Allowance for credit losses as of March 31, 2023	$	15,000
Provision for credit losses		212,440
Change in provision for credit losses		(202,926	)
Specific accounts deemed uncollectible		(9,514	)
Allowance for credit losses as of December 31, 2023	$	15,000

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NOTE 4. NET INCOME PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Tables)

9 Months Ended

Dec. 31, 2023

Tables/Schedules

Schedule of Earnings Per Share, Basic and Diluted

	Quarter Ended December 31,
	2023	2022
Weighted average common shares outstanding – basic	4,833,401	4,830,826
Dilutive effect of stock options	3,829	1,542
Shares used in computing net income per share – diluted	4,837,230	4,832,368

	Nine Months Ended December 31,
	2023	2022
Weighted average common shares outstanding – basic	4,832,992	4,830,826
Dilutive effect of stock options	6,733	342
Shares used in computing net income per share – diluted	4,839,725	4,831,168

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NOTE 5. MARKETABLE SECURITIES: Contractual maturities of marketable securities (Tables)

9 Months Ended

Dec. 31, 2023

Tables/Schedules

Contractual maturities of marketable securities

	Total		<1 Year		1–3 Years		3–6 Years
Money market funds	$	4,259,340	$	4,259,340	$	-	$	-
Corporate bonds		50,006,533		14,335,619		27,222,387		8,448,527
Total	$	54,265,873	$	18,594,959	$	27,222,387	$	8,448,527

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NOTE 5. MARKETABLE SECURITIES: Fair values of our marketable securities aggregated by credit rating (Tables)

9 Months Ended

Dec. 31, 2023

Tables/Schedules

Fair values of our marketable securities aggregated by credit rating

Credit Rating		Fair Value
AAA	$	5,559,340
AA+		2,179,443
AA		6,745,419
AA-		21,194,039
A+		2,954,497
A		9,650,572
A-		5,982,563
Total	$	54,265,873

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NOTE 5. MARKETABLE SECURITIES: Estimated fair value of marketable securities aggregated by fair value hierarchy inputs used in estimating their fair values (Tables)

9 Months Ended

Dec. 31, 2023

Tables/Schedules

Estimated fair value of marketable securities aggregated by fair value hierarchy inputs used in estimating their fair values

	As of December 31, 2023						As of March 31, 2023
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	4,259,340	$	-	$	4,259,340	$	906,141	$	-	$	906,141
Corporate bonds		-		50,006,533		50,006,533		-		51,638,142		51,638,142
Total	$	4,259,340	$	50,006,533	$	54,265,873	$	906,141	$	51,638,142	$	52,544,283

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NOTE 5. MARKETABLE SECURITIES: Amortized cost, fair value and gross unrealized holding gains and losses of marketable securities (Tables)

9 Months Ended

Dec. 31, 2023

Tables/Schedules

Amortized cost, fair value and gross unrealized holding gains and losses of marketable securities

	As of December 31, 2023									As of March 31, 2023
	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	$	4,259,340	$	-	$	-		$	4,259,340	$	906,141	$	-	$	-		$	906,141
Corporate bonds		50,970,841		7,965		(972,273	)		50,006,533		53,191,981		1,007		(1,554,846	)		51,638,142
Total	$	55,230,181	$	7,965	$	(972,273	)	$	54,265,873	$	54,098,122	$	1,007	$	(1,554,846	)	$	52,544,283

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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)

9 Months Ended

Dec. 31, 2023

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 December 31, 2023
Corporate bonds	$	1,848,307	$	(17,747	)	$	40,715,403	$	(954,526	)	$	42,563,710	$	(972,273	)
Total	$	1,848,307	$	(17,747	)	$	40,715,403	$	(954,526	)	$	42,563,710	$	(972,273	)
As of March 31, 2023
Corporate bonds	$	37,084,628	$	(590,967	)	$	13,294,817	$	(963,879	)	$	50,379,445	$	(1,554,846	)
Total	$	37,084,628	$	(590,967	)	$	13,294,817	$	(963,879	)	$	50,379,445	$	(1,554,846	)

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NOTE 5. MARKETABLE SECURITIES: Unrealized losses on marketable securities and their tax effects (Tables)

9 Months Ended

Dec. 31, 2023

Tables/Schedules

Unrealized losses on marketable securities and their tax effects

	Quarter Ended December 31,
	2023			2022
Unrealized gain from marketable securities	$	958,564		$	425,849
Tax effects		(209,734	)		(93,176	)
Unrealized gain on marketable securities, net of tax	$	748,830		$	332,673

	Nine Months Ended December 31,
	2023			2022
Unrealized loss from marketable securities	$	589,530		$	(1,450,643	)
Tax effects		(128,989	)		317,401
Unrealized gain (loss) on marketable securities, net of tax	$	460,541		$	(1,133,242	)

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NOTE 7. INVENTORIES: Schedule of Inventory (Tables)

9 Months Ended

Dec. 31, 2023

Tables/Schedules

Schedule of Inventory

		Dec. 31, 2023		March 31, 2023
Raw materials	$	2,068,092	$	1,601,962
Work in process		2,995,391		3,781,894
Finished goods		2,286,328		1,033,154
Total inventories	$	7,349,811	$	6,417,010

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NOTE 10. LEASES: Lease, Cost (Tables)

9 Months Ended

Dec. 31, 2023

Tables/Schedules

Lease, Cost

	Quarter Ended Dec. 31, 2023			Nine Months Ended Dec. 31, 2023
Operating lease cost	$	37,754		$	113,261
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for leases	$	44,433		$	133,299
Remaining lease term		27 months
Discount rate		3.5	%

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NOTE 10. LEASES: Lessee, Operating Lease, Liability, Maturity (Tables)

9 Months Ended

Dec. 31, 2023

Tables/Schedules

Lessee, Operating Lease, Liability, Maturity

Year Ending March 31,	Operating Lease Liabilities
2024	$	45,341
2025		182,271
2026		184,995
Total lease payments		412,607
Imputed lease interest		(15,332	)
Total lease liabilities	$	397,275

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NOTE 4. NET INCOME PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Details) - shares	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Details
Weighted Average Number of Shares Outstanding, Basic	4,833,401	4,830,826	4,832,992	4,830,826
Dilutive effect of stock options	3,829	1,542	6,733	342
Shares used in computing net income per share - diluted	4,837,230	4,832,368	4,839,725	4,831,168

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NOTE 5. MARKETABLE SECURITIES: Contractual maturities of marketable securities (Details) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Marketable Securities	$ 54,265,873	$ 52,544,283
(1 Year	18,594,959
1-3 Years	27,222,387
3-6 Years	8,448,527
Money Market Funds
Marketable Securities	4,259,340	906,141
(1 Year	4,259,340
1-3 Years	0
3-6 Years	0
Corporate Bond Securities
Marketable Securities	50,006,533	$ 51,638,142
(1 Year	14,335,619
1-3 Years	27,222,387
3-6 Years	$ 8,448,527

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NOTE 5. MARKETABLE SECURITIES (Details) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Details
Debt Securities, Available-for-Sale, Excluding Accrued Interest	$ 366,452	$ 425,372

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NOTE 5. MARKETABLE SECURITIES: Fair values of our marketable securities aggregated by credit rating (Details) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Marketable Securities	$ 54,265,873	$ 52,544,283
Standard & Poor's, AAA Rating
Marketable Securities	5,559,340
Standard & Poor's, AA+ Rating
Marketable Securities	2,179,443
Standard & Poor's, AA Rating
Marketable Securities	6,745,419
Standard & Poor's, AA- Rating
Marketable Securities	21,194,039
Standard & Poor's, A+ Rating
Marketable Securities	2,954,497
Standard & Poor's, A Rating
Marketable Securities	9,650,572
Standard & Poor's, A- Rating
Marketable Securities	$ 5,982,563

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NOTE 5. MARKETABLE SECURITIES: Estimated fair value of marketable securities aggregated by fair value hierarchy inputs used in estimating their fair values (Details) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Marketable Securities	$ 54,265,873	$ 52,544,283
Money Market Funds
Marketable Securities	4,259,340	906,141
Corporate Bond Securities
Marketable Securities	50,006,533	51,638,142
Fair Value, Inputs, Level 1
Marketable Securities	4,259,340	906,141
Fair Value, Inputs, Level 1 | Money Market Funds
Marketable Securities	4,259,340	906,141
Fair Value, Inputs, Level 1 | Corporate Bond Securities
Marketable Securities	0	0
Fair Value, Inputs, Level 2
Marketable Securities	50,006,533	51,638,142
Fair Value, Inputs, Level 2 | Money Market Funds
Marketable Securities	0	0
Fair Value, Inputs, Level 2 | Corporate Bond Securities
Marketable Securities	$ 50,006,533	$ 51,638,142

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NOTE 5. MARKETABLE SECURITIES: Amortized cost, fair value and gross unrealized holding gains and losses of marketable securities (Details) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Amortized Cost	$ 55,230,181	$ 54,098,122
Gross Unrealized Holding Gains	7,965	1,007
Gross Unrealized Holding Losses	(972,273)	(1,554,846)
Marketable Securities	54,265,873	52,544,283
Money Market Funds
Amortized Cost	4,259,340	906,141
Gross Unrealized Holding Gains	0	0
Gross Unrealized Holding Losses	0	0
Marketable Securities	4,259,340	906,141
Corporate Bond Securities
Amortized Cost	50,970,841	53,191,981
Gross Unrealized Holding Gains	7,965	1,007
Gross Unrealized Holding Losses	(972,273)	(1,554,846)
Marketable Securities	$ 50,006,533	$ 51,638,142

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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 ($)	Dec. 31, 2023	Mar. 31, 2023
Estimated Fair Value	$ 1,848,307	$ 37,084,628
Gross Unrealized Holding Losses	(17,747)	(590,967)
Estimated Fair Value	40,715,403	13,294,817
Gross Unrealized Holding Losses	(954,526)	(963,879)
Estimated Fair Value	42,563,710	50,379,445
Gross Unrealized Holding Losses	(972,273)	(1,554,846)
Corporate Bond Securities
Estimated Fair Value	1,848,307	37,084,628
Gross Unrealized Holding Losses	(17,747)	(590,967)
Estimated Fair Value	40,715,403	13,294,817
Gross Unrealized Holding Losses	(954,526)	(963,879)
Estimated Fair Value	42,563,710	50,379,445
Gross Unrealized Holding Losses	$ (972,273)	$ (1,554,846)

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NOTE 5. MARKETABLE SECURITIES: Unrealized losses on marketable securities and their tax effects (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Details
Unrealized loss from marketable securities	$ 958,564	$ 425,849	$ 589,530	$ (1,450,643)
Tax effects	(209,734)	(93,176)	(128,989)	317,401
Unrealized loss from marketable securities, net of tax	$ 748,830	$ 332,673	$ 460,541	$ (1,133,242)

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NOTE 6. ALLOWANCE FOR CREDIT LOSSES ON ACCOUNTS RECEIVABLES: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($)	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Details
Allowance for credit losses as of March 31, 2023	$ 15,000
Provision for credit losses	212,440
Change in provision for credit losses	(202,926)
Specific accounts deemed uncollectible	(9,514)	$ 0
Allowance for credit losses as of December 31, 2023	$ 15,000

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NOTE 7. INVENTORIES: Schedule of Inventory (Details) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Details
Raw materials	$ 2,068,092	$ 1,601,962
Work in process	2,995,391	3,781,894
Finished goods	2,286,328	1,033,154
Inventories	$ 7,349,811	$ 6,417,010

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NOTE 8. STOCK-BASED COMPENSATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Details
Share-Based Payment Arrangement, Expense	$ 12,544	$ 7,133	$ 129,392	$ 54,218
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Method Used			Black-Scholes-Merton standard option-pricing model

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NOTE 9. INCOME TAXES (Details)	9 Months Ended
	Dec. 31, 2023 USD ($)
Accrued Income Taxes	$ 90,387
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	2019
Maximum
Open Tax Year	2023

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NOTE 10. LEASES: Lease, Cost (Details)	3 Months Ended	9 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Details
Operating lease cost	$ 37,754	$ 113,261
Operating cash flows for leases	$ 44,433	$ 133,299
Remaining lease term	27 months	27 months
Discount rate	3.50%	3.50%

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NOTE 10. LEASES: Lessee, Operating Lease, Liability, Maturity (Details)	Dec. 31, 2023 USD ($)
Details
2024	$ 45,341
2025	182,271
2026	184,995
Total lease payments	412,607
Imputed lease interest	(15,332)
Total lease liabilities	$ 397,275

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NOTE 11. STOCK REPURCHASE PROGRAM (Details) - USD ($)	9 Months Ended
	Dec. 31, 2023	Jan. 21, 2009
Details
Stock Repurchase Program, Authorized Amount		$ 2,500,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 3,520,369
Treasury Stock, Shares, Acquired	0

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NOTE 12. INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
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	$ 27,904	$ 21,484	$ 2,024	$ 73,661

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NOTE 13. SUBSEQUENT EVENTS (Details) - $ / shares		3 Months Ended		9 Months Ended
	Jan. 17, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Details
Subsequent Event, Date	Jan. 17, 2024
Subsequent Event, Description	we announced that our Board of Directors had declared a quarterly cash dividend
Cash dividends declared per common share	$ 1.00	$ 1.00	$ 1.00	$ 3.00	$ 3.00
Dividends Payable, Date to be Paid	Feb. 28, 2024
Dividends Payable, Date of Record	Jan. 29, 2024