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, 2026

☐ 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, 2026.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Balance Sheets

Statements of Income for the Quarters Ended June 30 , 202 6 and 202 5

Statements of Comprehensive Income for the Quarters Ended June 30 , 202 6 and 20 25

Statements of Shareholders’ Equity for the Quarter Ended June 30 , 202 6

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

Statements of Cash Flows for the Quarters Ended June 30 , 202 6 and 202 5

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, 2026			March 31, 2026
ASSETS
Current assets
Cash and cash equivalents	$	2,896,148		$	1,714,040
Marketable securities, short-term		18,875,009			18,125,060
Accounts receivable, net of allowance for credit losses of $15,000		6,545,713			3,408,941
Inventories, net		6,673,227			7,082,821
Prepaid expenses and other assets		685,921			1,860,415
Total current assets		35,676,018			32,191,277
Fixed assets
Machinery and equipment		13,900,632			13,843,799
Leasehold improvements		2,059,853			2,059,853
		15,960,485			15,903,652
Less accumulated depreciation and amortization		12,419,993			12,187,643
Net fixed assets		3,540,492			3,716,009
Marketable securities, long-term		22,137,350			23,678,452
Right-of-use asset – operating lease		763,080			793,794
Total assets	$	62,116,940		$	60,379,532

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	265,953		$	278,599
Accrued payroll and other		1,037,155			697,611
Operating lease		201,008			165,116
Total current liabilities		1,504,116			1,141,326
Deferred tax liabilities		128,217			248,284
Long-term operating lease liability		704,817			740,423
Total liabilities		2,337,150			2,130,033

Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,837,166 issued and outstanding as of June 30, 2026 and March 31, 2026		48,372			48,372
Additional paid-in capital		19,928,818			19,914,769
Accumulated other comprehensive income (loss)		(72,793	)		(32,010	)
Retained earnings		39,875,393			38,318,368
Total shareholders’ equity		59,779,790			58,249,499
Total liabilities and shareholders’ equity	$	62,116,940		$	60,379,532

	Quarter Ended June 30,
	2026		2025
Revenue
Product sales	$	10,734,735	$	5,908,570
Contract research and development		299,322		196,074
Total revenue, net		11,034,057		6,104,644
Cost of sales		2,066,045		1,182,523
Gross profit		8,968,012		4,922,121
Expenses
Research and development		946,582		720,231
Selling, general, and administrative		755,594		418,640
Total expenses		1,702,176		1,138,871
Income from operations		7,265,836		3,783,250
Interest income		449,920		498,208
Other income		-		811
Income before taxes		7,715,756		4,282,269
Provision for income taxes		1,321,565		706,451
Net income	$	6,394,191	$	3,575,818
Net income per share – basic	$	1.32	$	0.74
Net income per share – diluted	$	1.32	$	0.74
Cash dividends declared per common share	$	1.00	$	1.00
Weighted average shares outstanding
Basic		4,837,166		4,837,166
Diluted		4,845,745		4,838,877

							Accumulated
					Additional		Other
	Common Stock				Paid-In		Comprehensive			Retained
	Shares		Amount		Capital		Income (Loss)			Earnings			Total
Balance as of March 31, 2026*		4,837,166	$	48,372	$	19,914,769	$	(32,010	)	$	38,318,368		$	58,249,499
Comprehensive income:
Unrealized loss on marketable securities, net of tax								(40,783	)					(40,783	)
Net income											6,394,191			6,394,191
Total comprehensive income														6,353,408
Stock-based compensation						14,049								14,049
Cash dividends paid ($1.00 per share of common stock)											(4,837,166	)		(4,837,166	)
Balance as of June 30, 2026		4,837,166	$	48,372	$	19,928,818	$	(72,793	)	$	39,875,393		$	59,779,790

	Total		<1 Year		1–3 Years		3–4 Years
Money market funds	$	2,111,995	$	2,111,995	$	-	$	-
Treasury securities		4,702,731		4,702,731		-		-
Corporate bonds		36,309,628		14,172,278		17,907,998		4,229,352
Total	$	43,124,354	$	20,987,004	$	17,907,998	$	4,229,352

	As of June 30, 2026						As of March 31, 2026
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	2,111,995	$	-	$	2,111,995	$	1,121,096	$	-	$	1,121,096
Treasury securities		-		4,702,731		4,702,731		-		4,714,688		4,714,688
Corporate bonds		-		36,309,628		36,309,628		-		37,088,824		37,088,824
Total	$	2,111,995	$	41,012,359	$	43,124,354	$	1,121,096	$	41,803,512	$	42,924,608

	As of June 30, 2026									As of March 31, 2026
	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	$	2,111,995	$	-	$	-		$	2,111,995	$	1,121,096	$	-	$	-		$	1,121,096
Treasury securities		4,699,895		2,836		-			4,702,731		4,699,853		14,835		-			4,714,688
Corporate bonds		36,405,645		2,430		(98,447	)		36,309,628		37,144,634		16,583		(72,393	)		37,088,824
Total	$	43,217,535	$	5,266	$	(98,447	)	$	43,124,354	$	42,965,583	$	31,418	$	(72,393	)	$	42,924,608

	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, 2026
Corporate bonds	$	26,811,061	$	(86,763	)	$	4,469,069	$	(11,684	)	$	31,280,130	$	(98,447	)
Total	$	26,811,061	$	(86,763	)	$	4,469,069	$	(11,684	)	$	31,280,130	$	(98,447	)

As of March 31, 2026
Corporate bonds	$	23,221,061	$	(51,668	)	$	4,447,243	$	(20,725	)	$	27,668,304	$	(72,393	)
Total	$	23,221,061	$	(51,668	)	$	4,447,243	$	(20,725	)	$	27,668,304	$	(72,393	)

		June 30, 2026		March 31, 2026
Raw materials	$	1,493,984	$	1,357,842
Work in process		3,162,176		3,282,430
Finished goods		2,017,067		2,442,549
Total inventories	$	6,673,227	$	7,082,821

	Quarter Ended June 30,
	2026	2025
Stock options granted	2,500	2,500
Stock options exercised	-	-

Year Ending March 31,	Operating Lease Liabilities
2027		154,928
2028		213,284
2029		220,216
2030		227,373
2031		234,762
2032		40,399
Total lease payments		1,090,962
Imputed lease interest		(185,137	)
Total lease liabilities	$	905,825

	Percentage of Revenue Quarter Ended June 30,				Quarter- to-Quarter
	2026		2025		Change
Revenue
Product sales	97.3	%	96.8	%	81.7	%
Contract research and development	2.7	%	3.2	%	52.7	%
Total revenue	100.0	%	100.0	%	80.7	%
Cost of sales	18.7	%	19.4	%	74.7	%
Gross profit	81.3	%	80.6	%	82.2	%
Expenses
Research and development	8.6	%	11.8	%	31.4	%
Selling, general, and administrative	6.8	%	6.9	%	80.5	%
Total expenses	15.4	%	18.7	%	49.5	%
Income from operations	65.9	%	61.9	%	92.1	%
Interest income	4.1	%	8.2	%	(9.7	)%
Other income	-		0.0	%	(100.0	)%
Income before taxes	70.0	%	70.1	%	80.2	%
Provision for income taxes	12.1	%	11.5	%	87.1	%
Net income	57.9	%	58.6	%	78.8	%

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 22, 2026		/s/ DANIEL A. BAKER
Date		Daniel A. Baker
		President and Chief Executive Officer


July 22, 2026		/s/ DANIEL NELSON
Date		Daniel Nelson
		Principal Financial Officer