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 June 30, 2025

☐ 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 – 4,837,166 shares outstanding as of June 30, 2025.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Balance Sheets

Statements of Income for the Quarters Ended June 30 , 202 5 and 202 4

Statements of Comprehensive Income for the Quarters Ended June 30 , 202 5 and 20 24

Statements of Shareholders’ Equity for the Quarter Ended June 30 , 202 5

Statements of Shareholders’ Equity for the Quarter Ended June 30 , 202 4

Statements of Cash Flows for the Quarters Ended June 30 , 202 5 and 202 4

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

	(Unaudited) June 30, 2025		March 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	3,222,552	$	8,036,564
Marketable securities, short-term (amortized cost of $12,610,115 as of June 30, 2025, and $13,730,266 as of March 31, 2025)		12,607,242		13,691,593
Accounts receivable, net of allowance for credit losses of $15,000		2,253,821		3,589,268
Inventories, net		7,453,369		7,449,083
Prepaid expenses and other assets		630,171		433,414
Total current assets		26,167,155		33,199,922
Fixed assets
Machinery and equipment		12,816,729		11,758,205
Leasehold improvements		1,956,309		1,956,309
		14,773,038		13,714,514
Less accumulated depreciation and amortization		11,813,014		11,727,615
Net fixed assets		2,960,024		1,986,899
Deferred tax assets		1,849,001		1,867,069
Marketable securities, long-term (amortized cost of $31,679,330 as of June 30, 2025, and $26,353,692 as of March 31, 2025)		31,690,932		26,304,623
Right-of-use asset – operating lease		886,451		917,349
Total assets	$	63,553,563	$	64,275,862

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	177,214	$	214,691
Accrued payroll and other		1,394,428		871,169
Operating lease		53,817		83,010
Total current liabilities		1,625,459		1,168,870
Long-term operating lease liability		838,481		838,221
Total liabilities		2,463,940		2,007,091

Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,837,166 issued and outstanding as of June 30, 2025 and March 31, 2025		48,372		48,372
Additional paid-in capital		19,827,944		19,821,106
Accumulated other comprehensive income (loss)		6,818		(68,544	)
Retained earnings		41,206,489		42,467,837
Total shareholders’ equity		61,089,623		62,268,771
Total liabilities and shareholders’ equity	$	63,553,563	$	64,275,862

	Quarter Ended June 30,
	2025		2024
Revenue
Product sales	$	5,908,570	$	6,615,859
Contract research and development		196,074		167,385
Total revenue, net		6,104,644		6,783,244
Cost of sales		1,182,523		975,494
Gross profit		4,922,121		5,807,750
Expenses
Research and development		720,231		878,528
Selling, general, and administrative		418,640		540,404
Total expenses		1,138,871		1,418,932
Income from operations		3,783,250		4,388,818
Interest income		498,208		493,959
Other income		811		-
Income before taxes		4,282,269		4,882,777
Provision for income taxes		706,451		785,190
Net income	$	3,575,818	$	4,097,587
Net income per share – basic	$	0.74	$	0.85
Net income per share – diluted	$	0.74	$	0.85
Cash dividends declared per common share	$	1.00	$	1.00
Weighted average shares outstanding
Basic		4,837,166		4,833,676
Diluted		4,838,877		4,838,995

							Accumulated
					Additional		Other
	Common Stock				Paid-In		Comprehensive			Retained
	Shares		Amount		Capital		Income (Loss)			Earnings			Total
Balance as of March 31, 2025*		4,837,166	$	48,372	$	19,821,106	$	(68,544	)	$	42,467,837		$	62,268,771
Comprehensive income:
Unrealized gain on marketable securities, net of tax								75,362						75,362
Net income											3,575,818			3,575,818
Total comprehensive income														3,651,180
Stock-based compensation						6,838								6,838
Cash dividends paid ($1.00 per share of common stock)											(4,837,166	)		(4,837,166	)
Balance as of June 30, 2025		4,837,166	$	48,372	$	19,827,944	$	6,818		$	41,206,489		$	61,089,623

	Total		<1 Year		1–3 Years		3–4 Years
Money market funds	$	2,782,189	$	2,782,189	$	-	$	-
Treasury securities		4,722,215		-		4,722,215		-
Corporate bonds		39,575,959		12,607,242		20,000,771		6,967,946
Total	$	47,080,363	$	15,389,431	$	24,722,986	$	6,967,946

Credit Rating		Fair Value
AAA	$	7,504,403
AA+		3,931,449
AA		4,869,192
AA-		17,686,530
A+		13,088,789
Total	$	47,080,363

	As of June 30, 2025						As of March 31, 2025
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	2,782,189	$	-	$	2,782,189	$	7,905,042	$	-	$	7,905,042
Treasury securities		-		4,722,215		4,722,215		-		4,715,238		4,715,238
Corporate bonds		-		39,575,959		39,575,959		-		35,280,978		35,280,978
Total	$	2,782,189	$	44,298,174	$	47,080,363	$	7,905,042	$	39,996,216	$	47,901,258

	As of June 30, 2025									As of March 31, 2025
	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	$	2,782,189	$	-	$	-		$	2,782,189	$	7,905,042	$	-	$	-		$	7,905,042
Treasury securities		4,699,728		22,487		-			4,722,215		4,699,686		15,552		-			4,715,238
Corporate bonds		39,589,717		93,290		(107,048	)		39,575,959		35,384,272		55,858		(159,152	)		35,280,978
Total	$	47,071,634	$	115,777	$	(107,048	)	$	47,080,363	$	47,989,000	$	71,410	$	(159,152	)	$	47,901,258

	Less Than 12 Months					12 Months or Greater					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses

As of June 30, 2025
Corporate bonds	$	13,470,630	$	(42,269	)	$	16,117,601	$	(64,779	)	$	29,588,231	$	(107,048	)
Total	$	13,470,630	$	(42,269	)	$	16,117,601	$	(64,779	)	$	29,588,231	$	(107,048	)

As of March 31, 2025
Corporate bonds	$	7,323,059	$	(31,808	)	$	21,020,717	$	(127,344	)	$	28,343,776	$	(159,152	)
Total	$	7,323,059	$	(31,808	)	$	21,020,717	$	(127,344	)	$	28,343,776	$	(159,152	)

		June 30, 2025		March 31, 2025
Raw materials	$	1,575,409	$	1,608,632
Work in process		3,680,533		3,609,273
Finished goods		2,197,427		2,231,178
Total inventories	$	7,453,369	$	7,449,083

	Quarter Ended June 30,
	2025	2024
Stock options granted	2,500	2,500
Stock options exercised	-	-

Year Ending March 31,	Operating Lease Liabilities
2026		38,746
2027		172,142
2028		213,284
2029		220,216
2030		227,373
2031		234,762
2032		40,399
Total lease payments		1,146,922
Imputed lease interest		(254,624	)
Total lease liabilities	$	892,298

	Percentage of Revenue Quarter Ended June 30,				Quarter- to-Quarter
	2025		2024		Change
Revenue
Product sales	96.8	%	97.5	%	(10.7	)%
Contract research and development	3.2	%	2.5	%	17.1	%
Total revenue	100.0	%	100.0	%	(10.0	)%
Cost of sales	19.4	%	14.4	%	21.2	%
Gross profit	80.6	%	85.6	%	(15.2	) %
Expenses
Research and development	11.8	%	13.0	%	(18.0	)%
Selling, general, and administrative	6.9	%	7.9	%	(22.5	)%
Total expenses	18.7	%	20.9	%	(19.7	)%
Income from operations	61.9	%	64.7	%	(13.8	) %
Interest income	8.2	%	7.3	%	0.9	%
Other income	0.0	%	-	%	-
Income before taxes	70.1	%	72.0	%	(12.3	)%
Provision for income taxes	11.5	%	11.6	%	(10.0	) %
Net income	58.6	%	60.4	%	(12.7	)%

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

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

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

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

101.SCH	Inline XBRL Taxonomy Extension Schema Document

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document

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

		NVE CORPORATION
		(Registrant)


July 23, 2025		/s/ DANIEL A. BAKER
Date		Daniel A. Baker
		President and Chief Executive Officer


July 23, 2025		/s/ DANIEL NELSON
Date		Daniel Nelson
		Principal Financial Officer

SEC Form 10-Q filed by NVE Corporation