NVE CORP - Form 10-Q SEC filing

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

☐ 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

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NVE CORPORATION

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Balance Sheets

Statements of Income for the Quarters Ended December 31 , 202 3 and 202 2

Statements of Comprehensive Income for the Quarters Ended December 31 , 202 3 and 202 2

Statements of Income for the Nine Month s Ended December 31 , 202 3 and 202 2

Statements of Comprehensive Income for the Nine Month s Ended December 31 , 202 3 and 202 2

Statements of Shareholders’ Equity for the Nine Months Ended December 31 , 202 3

Statements of Shareholders’ Equity for the Nine Months Ended December 31 , 202 2

Statements of Cash Flows for the Nine Months Ended December 31 , 202 3 and 202 2

Notes to Financial Statements

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

Item 4. Controls and Procedures

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

Item 4. Mine Safety Disclosures

Item 6. Exhibits

SIGNATURES

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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.

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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.

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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.

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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.

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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.

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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.

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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.”

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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

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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

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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	$

SEC Form 10-Q filed by NVE Corporation