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 September 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 September 30, 2025.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Balance Sheets

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

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

Statements of Income for the Six Month s Ended September 30 , 202 5 and 202 4

Statements of Comprehensive Income for the Six Month s Ended September 30 , 202 5 and 202 4

Statements of Shareholders’ Equity for the Six Months Ended September 30 , 202 5

Statements of Shareholders’ Equity for the Six Months Ended September 30 , 202 4

Statements of Cash Flows for the Six Months Ended September 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) Sept. 30, 2025		March 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	5,107,481	$	8,036,564
Marketable securities, short-term (amortized cost of $12,597,421 as of September 30, 2025, and $13,730,266 as of March 31, 2025)		12,640,185		13,691,593
Accounts receivable, net of allowance for credit losses of $15,000		2,440,856		3,589,268
Inventories, net		7,418,843		7,449,083
Prepaid expenses and other assets		1,163,093		433,414
Total current assets		28,770,458		33,199,922
Fixed assets
Machinery and equipment		12,783,642		11,758,205
Leasehold improvements		2,059,853		1,956,309
		14,843,495		13,714,514
Less accumulated depreciation and amortization		11,902,066		11,727,615
Net fixed assets		2,941,429		1,986,899
Deferred tax assets		1,079,733		1,867,069
Marketable securities, long-term (amortized cost of $27,771,414 as of September 30, 2025, and $26,353,692 as of March 31, 2025)		27,844,069		26,304,623
Right-of-use asset – operating lease		854,529		917,349
Total assets	$	61,490,218	$	64,275,862

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	229,526	$	214,691
Accrued payroll and other		585,395		871,169
Operating lease		155,800		83,010
Total current liabilities		970,721		1,168,870
Long-term operating lease liability		806,542		838,221
Total liabilities		1,777,263		2,007,091

Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,837,166 issued and outstanding as of September 30, 2025 and March 31, 2025		48,372		48,372
Additional paid-in capital		19,894,256		19,821,106
Accumulated other comprehensive income (loss)		90,166		(68,544	)
Retained earnings		39,680,161		42,467,837
Total shareholders’ equity		59,712,955		62,268,771
Total liabilities and shareholders’ equity	$	61,490,218	$	64,275,862

	Quarter Ended September 30,
	2025		2024
Revenue
Product sales	$	6,138,772	$	6,104,433
Contract research and development		208,220		654,257
Total revenue, net		6,346,992		6,758,690
Cost of sales		1,378,494		947,254
Gross profit		4,968,498		5,811,436
Expenses
Research and development		873,470		847,603
Selling, general, and administrative		436,919		568,241
Total expenses		1,310,389		1,415,844
Income from operations		3,658,109		4,395,592
Interest income		484,330		464,429
Other income		3,094		-
Income before taxes		4,145,533		4,860,021
Provision for income taxes		834,695		833,876
Net income	$	3,310,838	$	4,026,145
Net income per share – basic	$	0.68	$	0.83
Net income per share – diluted	$	0.68	$	0.83
Cash dividends declared per common share	$	1.00	$	1.00
Weighted average shares outstanding
Basic		4,837,166		4,833,855
Diluted		4,839,243		4,839,291

	Six Months Ended September 30,
	2025		2024
Revenue
Product sales	$	12,047,342	$	12,720,292
Contract research and development		404,294		821,642
Total revenue, net		12,451,636		13,541,934
Cost of sales		2,561,017		1,922,748
Gross profit		9,890,619		11,619,186
Expenses
Research and development		1,593,701		1,726,131
Selling, general, and administrative		855,559		1,108,645
Total expenses		2,449,260		2,834,776
Income from operations		7,441,359		8,784,410
Interest income		982,538		958,388
Other income		3,905		-
Income before taxes		8,427,802		9,742,798
Provision for income taxes		1,541,146		1,619,066
Net income	$	6,886,656	$	8,123,732
Net income per share – basic	$	1.42	$	1.68
Net income per share – diluted	$	1.42	$	1.68
Cash dividends declared per common share	$	2.00	$	2.00
Weighted average shares outstanding
Basic		4,837,166		4,833,766
Diluted		4,839,049		4,839,145

							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
Comprehensive income:
Unrealized gain on marketable securities, net of tax								83,348						83,348
Net income											3,310,838			3,310,838
Total comprehensive income														3,394,186
Stock-based compensation						66,312								66,312
Cash dividends ($1.00 per share of common stock)											(4,837,166	)		(4,837,166	)
Balance as of September 30, 2025		4,837,166	$	48,372	$	19,894,256	$	90,166		$	39,680,161		$	59,712,955

	Total		<1 Year		1–3 Years		3–4 Years
Money market funds	$	4,742,269	$	4,742,269	$	-	$	-
Treasury securities		4,727,539		-		4,727,539		-
Corporate bonds		35,756,715		12,640,185		16,110,709		7,005,821
Total	$	45,226,523	$	17,382,454	$	20,838,248	$	7,005,821

Credit Rating		Fair Value
AAA	$	9,469,808
AA+		3,956,140
AA		4,912,125
AA-		13,771,565
A+		13,116,885
Total	$	45,226,523

	As of September 30, 2025						As of March 31, 2025
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	4,742,269	$	-	$	4,742,269	$	7,905,042	$	-	$	7,905,042
Treasury securities		-		4,727,539		4,727,539		-		4,715,238		4,715,238
Corporate bonds		-		35,756,715		35,756,715		-		35,280,978		35,280,978
Total	$	4,742,269	$	40,484,254	$	45,226,523	$	7,905,042	$	39,996,216	$	47,901,258

	As of September 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	$	4,742,269	$	-	$	-		$	4,742,269	$	7,905,042	$	-	$	-		$	7,905,042
Treasury securities		4,699,770		27,769		-			4,727,539		4,699,686		15,552		-			4,715,238
Corporate bonds		35,669,065		106,357		(18,707	)		35,756,715		35,384,272		55,858		(159,152	)		35,280,978
Total	$	45,111,104	$	134,126	$	(18,707	)	$	45,226,523	$	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 September 30, 2025
Corporate bonds	$	1,964,850	$	(498	)	$	8,199,095	$	(18,209	)	$	10,163,945	$	(18,707	)
Total	$	1,964,850	$	(498	)	$	8,199,095	$	(18,209	)	$	10,163,945	$	(18,707	)

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	)

	Six Months Ended September 30,
	2025			2024
OPERATING ACTIVITIES
Net income	$	6,886,656		$	8,123,732
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		174,451			157,601
Bonds discount amortization		(175,895	)		(124,135	)
Stock-based compensation		73,150			123,645
Deferred income taxes		742,885			(263,556	)
Non-cash operating lease expense (credit)		103,931			(15,174	)
Changes in operating assets and liabilities:
Accounts receivable		1,148,412			192,402
Inventories		30,240			(259,026	)
Prepaid expenses and other assets		(729,679	)		156,116
Accounts payable		14,835			42,923
Accrued payroll and other		(285,774	)		(148,941	)
Net cash provided by operating activities		7,983,212			7,985,587

INVESTING ACTIVITIES
Purchases of fixed assets		(1,128,981	)		(1,125,437	)
Purchases of marketable securities		(10,108,982	)		(6,580,140	)
Proceeds from maturities of marketable securities		10,000,000			2,200,000
Net cash used in investing activities		(1,237,963	)		(5,505,577	)

FINANCING ACTIVITIES
Payments on exercise of stock options		-			(29	)
Payment of dividends to shareholders		(9,674,332	)		(9,667,352	)
Net cash used in financing activities		(9,674,332	)		(9,667,381	)

Decrease in cash and cash equivalents		(2,929,083	)		(7,187,371	)

Cash and cash equivalents at beginning of period		8,036,564			10,283,550

Cash and cash equivalents at end of period	$	5,107,481		$	3,096,179

Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes	$	1,680,555		$	1,809,878

		Sept. 30, 2025		March 31, 2025
Raw materials	$	1,667,650	$	1,608,632
Work in process		3,326,526		3,609,273
Finished goods		2,424,667		2,231,178
Total inventories	$	7,418,843	$	7,449,083

Year Ending March 31,	Operating Lease Liabilities
2026		92,497
2027		172,142
2028		213,284
2029		220,216
2030		227,373
2031		234,762
2032		40,399
Total lease payments		1,200,673
Imputed lease interest		(238,331	)
Total lease liabilities	$	962,342

	Percentage of Revenue Quarter Ended September 30,				Quarter- to-Quarter
	2025		2024		Change
Revenue
Product sales	96.7	%	90.3	%	0.6	%
Contract research and development	3.3	%	9.7	%	(68.2	)%
Total revenue	100.0	%	100.0	%	(6.1	)%
Cost of sales	21.7	%	14.0	%	45.5	%
Gross profit	78.3	%	86.0	%	(14.5	) %
Expenses
Research and development	13.8	%	12.5	%	3.1	%
Selling, general, and administrative	6.8	%	8.4	%	(23.1	)%
Total expenses	20.6	%	20.9	%	(7.4	)%
Income from operations	57.7	%	65.1	%	(16.8	) %
Interest income	7.6	%	6.9	%	4.3	%
Other income	0.0	%	-	%	-
Income before taxes	65.3	%	72.0	%	(14.7	)%
Provision for income taxes	13.1	%	12.4	%	(7.1	) %
Net income	52.2	%	59.6	%	(16.3	)%

	Quarter Ended September 30,			Six Months Ended September 30,
	2025		2024	2025		2024
Stock options grant		4,000	4,000		6,500	6,500
Stock options exercised		-	1,000		-	-

	Quarter Ended Sept. 30				Six Months Ended Sept. 30
	2025			2024	2025			2024
Operating lease cost	$	48,214		37,754	$	96,429		75,507

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for leases	$	(53,751	)	43,341	$	(7,503	)	90,682
Right-of-use assets obtained in exchange for new lease liabilities
Operating lease	$	710,665			$	710,665
Remaining lease term		68 months		18 months		68 months		18 months
Discount rate		7.8%		3.5%		7.8%		3.5%

	Percentage of Revenue Six Months Ended Sept. 30,				Period- to-Period
	2025		2024		Change
Revenue
Product sales	96.8	%	93.9	%	(5.3	)%
Contract research and development	3.2	%	6.1	%	(50.8	)%
Total revenue	100.0	%	100.0	%	(8.1	)%
Cost of sales	20.6	%	14.2	%	33.2	%
Gross profit	79.4	%	85.8	%	(14.9	) %
Expenses
Research and development	12.8	%	12.7	%	(7.7	)%
Selling, general, and administrative	6.9	%	8.2	%	(22.8	)%
Total expenses	19.7	%	20.9	%	(13.6	)%
Income from operations	59.7	%	64.9	%	(15.3	) %
Interest income	7.9	%	7.1	%	2.5	%
Other income	0.0	%	-	%	-
Income before taxes	67.6	%	72.0	%	(13.5	)%
Provision for income taxes	12.3	%	12.0	%	(8.5	) %
Net income	55.3	%	60.0	%	(14.5	)%

SEC Form 10-Q filed by NVE Corporation