Group 1: Company Overview - NVE Corporation (NVEC) has been initiated with a "Neutral" recommendation by Zacks Investment Research, reflecting a challenging yet promising landscape for the company [1] - The company has a modest market capitalization of $371 million, indicating its position within the market [9] Group 2: Financial Performance - NVE Corp recently declared a quarterly cash dividend of $1 per share, resulting in a robust 5.2% dividend yield, which surpasses the industry average [2] - As of March 31, 2024, NVE reported cash and cash equivalents of over $10 million and total current assets of approximately $33 million, showcasing a strong balance sheet [5] - Despite a challenging fiscal 2024 with a 22% year-over-year revenue decline, the company anticipates benefiting from a recovery in the semiconductor sector, which is forecasted to grow by 13% in calendar 2024 [3] Group 3: Strategic Initiatives - NVE Corp plans to invest $4-$5 million over the next two fiscal years to enhance its manufacturing capabilities, particularly in medical devices and industrial sensors [4] - The company is advancing its technological edge with developments in tunneling magneto-resistance magnetometers and new product evaluation boards, which are crucial for maintaining a competitive advantage in the industrial Internet of Things (IoT) sector [6] Group 4: Market Positioning - NVE's stock has seen modest increases over the past six months but has declined over the trailing 12 months, with performance being modest compared to significant increases in the Zacks electronics-semiconductors subindustry [8] - The company's financial health is heavily reliant on key customers like Abbott Laboratories, and any changes in these relationships could significantly impact revenues [7]

☐ 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 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2024 NVE CORPORATION (Exact name of registrant as specified in its charter) Sta ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents NVE Corporation's unaudited consolidated financial statements as of December 31, 2023, showing a year-over-year decrease in revenue and net income for both the third quarter and first nine months of fiscal 2024 [Balance Sheets](index=3&type=section&id=Balance%20Sheets) As of December 31, 2023, total assets decreased slightly to **$67.6 million** from **$69.3 million**, while total liabilities significantly decreased to **$1.0 million** from **$2.2 million**, with shareholders' equity remaining stable Balance Sheet Summary (in thousands) | Account | Dec. 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $29,213 | $30,787 | | **Total Assets** | $67,629 | $69,255 | | **Total Current Liabilities** | $810 | $1,833 | | **Total Liabilities** | $1,028 | $2,176 | | **Total Shareholders' Equity** | $66,601 | $67,080 | [Statements of Income](index=4&type=section&id=Statements%20of%20Income) For Q3 FY2024, total revenue decreased to **$6.76 million** and net income slightly to **$4.18 million**, while nine-month revenue fell to **$22.72 million** and net income to **$13.31 million** year-over-year Quarterly Income Statement Highlights (YoY) | Metric | Q3 FY2024 (ended Dec 31, 2023) | Q3 FY2023 (ended Dec 31, 2022) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $6,756,260 | $7,401,678 | -8.7% | | Gross Profit | $5,401,193 | $5,923,306 | -8.8% | | Income from Operations | $4,470,987 | $4,819,248 | -7.2% | | Net Income | $4,184,422 | $4,231,324 | -1.1% | | Diluted EPS | $0.87 | $0.88 | -1.1% | Nine-Month Income Statement Highlights (YoY) | Metric | Nine Months FY2024 | Nine Months FY2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $22,720,950 | $25,455,909 | -10.7% | | Gross Profit | $17,686,394 | $19,922,909 | -11.2% | | Income from Operations | $14,458,574 | $16,740,009 | -13.6% | | Net Income | $13,311,718 | $14,461,814 | -8.0% | | Diluted EPS | $2.75 | $2.99 | -8.0% | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) For the nine months ended December 31, 2023, operating cash flow increased to **$15.1 million**, investing activities provided **$2.3 million** (a shift from prior year's **$8.7 million** use), and financing activities used **$14.4 million**, resulting in a **$3.0 million** increase in cash Cash Flow Summary (Nine Months Ended Dec 31) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $15,115,031 | $14,748,911 | | Net cash provided (used) by investing activities | $2,280,084 | ($8,676,229) | | Cash used in financing activities | ($14,380,101) | ($14,492,478) | | **Increase (decrease) in cash** | **$3,015,014** | **($8,419,796)** | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements) The notes detail the company's spintronics business, accounting policies, and key disclosures on marketable securities (80% of total assets), inventories, leases, and stock-based compensation, alongside a declared **$1.00** per share quarterly dividend - The company develops and sells devices using spintronics, a nanotechnology that relies on electron spin[28](index=28&type=chunk) - Marketable securities represent approximately **80% of total assets** as of December 31, 2023, consisting of money market funds and corporate bonds[40](index=40&type=chunk) - On January 17, 2024, the Board of Directors declared a quarterly cash dividend of **$1.00 per share**, payable on February 28, 2024[53](index=53&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **9%** Q3 and **11%** nine-month revenue decreases to lower product sales, partially offset by increased R&D revenue, while net income declined **1%** and **8%** respectively, with liquidity remaining strong due to a **$3.0 million** cash increase - Q3 FY2024 revenue decreased **9% YoY**, driven by a **12% decline** in product sales due to decreased demand from the defense industry and a semiconductor industry downturn[59](index=59&type=chunk) - Nine-month FY2024 revenue decreased **11% YoY**, also due to an **11% decrease** in product sales[65](index=65&type=chunk) - Q3 R&D expenses fell **23%** due to the redeployment of resources to customer-funded projects[60](index=60&type=chunk) - Cash and cash equivalents increased by **$3.0 million** in the first nine months of fiscal 2024, primarily due to **$15.1 million** in cash from operations, offset by **$14.4 million** in dividend payments[70](index=70&type=chunk) [Controls and Procedures](index=18&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of December 31, 2023, the company's disclosure controls and procedures were effective[77](index=77&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended December 31, 2023, that had a material effect[78](index=78&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=18&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any material pending or threatened legal proceedings that would adversely impact its financial condition or operations - As of the report date, the company is not aware of any material pending or threatened legal proceedings[80](index=80&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to risk factors from the Annual Report on Form 10-K, except for an amendment extending the Supplier Partnering Agreement with Abbott Laboratories through December 31, 2024 - The Supplier Partnering Agreement with Abbott Laboratories has been amended, extending the term through December 31, 2024[81](index=81&type=chunk)[82](index=82&type=chunk) [Mine Safety Disclosures](index=18&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable as the company has no mine safety disclosures to report - None[83](index=83&type=chunk) [Exhibits](index=19&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including an amendment to the Supplier Partnering Agreement with Abbott, CEO/CFO certifications, and Inline XBRL documents - Filed exhibits include Amendment No. 10 to the Supplier Partnering Agreement with Abbott, CEO/CFO certifications, and XBRL data files[85](index=85&type=chunk)

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, 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 jurisdict ...

Financial Data and Key Metrics Changes - Total revenue for the quarter ended June 30, 2023, increased 20% compared to the same quarter in 2022, driven by a 23% increase in product sales, partially offset by a 50% decrease in contract R&D revenue [8][9] - Net income for the first quarter of fiscal 2024 increased 6% to $4.4 million or $0.91 per diluted share compared to $4.14 million or $0.86 for the first quarter of fiscal 2023 [9] - Total expenses increased 42% for the first quarter of fiscal 2022 compared to the first quarter of fiscal 2023, primarily due to a 16% increase in R&D expense and a 28% increase in SG&A [3] Business Line Data and Key Metrics Changes - Product sales increased 23% compared to the prior year quarter, despite a downturn in the semiconductor industry [7][8] - Contract R&D revenue decreased by 50% due to the completion of certain contracts [8] Market Data and Key Metrics Changes - The semiconductor industry is reported to be down 21%, while the company’s product sales were up 23%, indicating outperformance against industry trends [19] Company Strategy and Development Direction - The company is focusing on expanding its product lines, particularly in combination data couplers with DC to DC converters, which are essential for energy and data transmission [11] - The company is investing in markets such as hearables and automotive, emphasizing the development of sensors for electric and autonomous vehicles [60][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining revenue levels similar to fiscal 2023, despite some revenue volatility [18] - The company is pleased with order flow and aims to continue outperforming the industry, despite the overall downturn in the semiconductor sector [19] Other Important Information - Interest income for the quarter increased 54% due to high yields on security purchases [28] - Net cash provided by operating activities increased 51% to $5.03 million for the first quarter of fiscal 2024 [29] Q&A Session Summary Question: Revenue volatility and baseline expectations - Management acknowledged revenue volatility but indicated that they do not expect significant differences in revenue for fiscal 2024 compared to fiscal 2023 [18] Question: Book-to-bill ratio and order flow - Management noted that while precise book-to-bill data is not available, they are pleased with the order flow and have outperformed the industry [19] Question: Customer behavior around product launches - Management explained that product rollouts in the medical device sector are often gradual due to regulatory restrictions, impacting stocking behavior [40] Question: PUFs and revenue visibility - Management reported a decrease in anti-tamper sales but remains optimistic about future opportunities in that area [38][39] Question: Automotive market qualifications - Management confirmed that they have received some automotive qualifications and are prepared for further testing and approvals [50] Question: Margins in mass market applications - Management indicated that while gross margins might be lower in mass market applications, the overall contribution to shareholder value is the primary focus [61]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 FY2024 financial statements show a slight asset decrease, revenue growth, and increased net income [Balance Sheets](index=3&type=section&id=Balance%20Sheets) Total assets decreased slightly to **$68.1 million** as of June 30, 2023, with reduced marketable securities and cash Balance Sheet Summary (Unaudited) | Account | June 30, 2023 ($) | March 31, 2023 ($) | | :--- | :--- | :--- | | Total current assets | $26,010,039 | $30,786,804 | | Total assets | $68,119,098 | $69,255,170 | | Total current liabilities | $1,271,464 | $1,832,760 | | Total liabilities | $1,573,330 | $2,175,668 | | Total shareholders' equity | $66,545,768 | $67,079,502 | [Statements of Income](index=4&type=section&id=Statements%20of%20Income) Q1 FY2024 total revenue increased **20.4%** to **$8.8 million**, driven by product sales, yielding **$4.4 million** net income Quarterly Income Statement Highlights (Unaudited) | Metric | Q1 FY2024 (ended June 30, 2023) ($) | Q1 FY2023 (ended June 30, 2022) ($) | | :--- | :--- | :--- | | Product sales | $8,700,092 | $7,072,961 | | Total revenue | $8,831,414 | $7,336,407 | | Gross profit | $6,751,791 | $5,684,560 | | Income from operations | $5,368,244 | $4,711,322 | | Net income | $4,403,730 | $4,140,116 | | Net income per share – diluted | $0.91 | $0.86 | | Cash dividends declared per share | $1.00 | $1.00 | [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) Operating cash flow increased to **$5.0 million**, but dividend payments and investments led to a **$230k** cash decrease Quarterly Cash Flow Summary (Unaudited) | Activity | Quarter Ended June 30, 2023 ($) | Quarter Ended June 30, 2022 ($) | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,025,302 | $3,331,143 | | Net cash (used) provided by investing activities | ($541,966) | $4,349,437 | | Cash used in financing activities | ($4,713,299) | ($4,830,826) | | (Decrease) increase in cash | ($229,963) | $2,849,754 | [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Financial%20Statements) Notes detail spintronics business, ASU 2016-13 adoption, **$53.2 million** marketable securities, and dividend declarations - The company develops and sells devices using spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information[28](index=28&type=chunk) - Effective June 30, 2023, the company adopted ASU No. 2016-13 regarding credit losses, resulting in an increased allowance for credit losses of **$212,440**, recorded as a credit loss expense, which reduced net income per share by **$0.04** for the quarter[36](index=36&type=chunk)[37](index=37&type=chunk) - Marketable securities totaled **$53.2 million**, representing approximately **78%** of total assets as of June 30, 2023, consisting of money market funds and corporate bonds rated A- or higher[39](index=39&type=chunk)[40](index=40&type=chunk) - The company's stock repurchase program had a remaining authorization of **$3,520,369** as of June 30, 2023, with no shares repurchased during the quarter[50](index=50&type=chunk) - On July 19, 2023, the Board of Directors declared a quarterly cash dividend of **$1.00** per share, payable on August 31, 2023[52](index=52&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses **20.4%** revenue growth, **42%** expense increase, **6.4%** net income growth, and liquidity management [Results of Operations](index=14&type=section&id=Results%20of%20Operations) Q1 FY2024 revenue grew **20.4%** from product sales, expenses rose **42.2%**, leading to **6.4%** net income growth Quarter-to-Quarter Financial Changes | Item | Q1 2023 (% of Revenue) | Q1 2022 (% of Revenue) | Change (%) | | :--- | :--- | :--- | :--- | | Product sales | 98.5% | 96.4% | 23.0% | | Contract R&D | 1.5% | 3.6% | (50.2)% | | **Total revenue** | **100.0%** | **100.0%** | **20.4%** | | Gross profit | 76.5% | 77.5% | 18.8% | | Total expenses | 15.7% | 13.3% | 42.2% | | **Net income** | **49.9%** | **56.4%** | **6.4%** | - The increase in expenses was due to a **16%** rise in R&D, a **28%** rise in SG&A (both from increased staffing and compensation), and a **$212,440** credit loss expense following the adoption of ASU No. 2016-13[59](index=59&type=chunk) - The effective tax rate rose to **24%** from **17%** in the prior-year quarter due to changes in the timing and availability of tax credits[60](index=60&type=chunk) [Liquidity and Capital Resources](index=15&type=section&id=Liquidity%20and%20Capital%20Resources) Cash decreased by **$230k** due to dividends and investments, despite **$5.0 million** in operating cash flow - Net cash provided by operating activities was **$5,025,302** for the quarter, a primary source of working capital[63](index=63&type=chunk)[64](index=64&type=chunk) - Financing activities used **$4,713,299**, which consisted of **$4,830,826** in dividend payments offset by **$117,527** from stock option exercises[63](index=63&type=chunk)[67](index=67&type=chunk) - A subsequent dividend of **$1.00** per share (approx. **$4.8 million**) was declared on July 19, 2023, to be paid on August 31, 2023[68](index=68&type=chunk) [Controls and Procedures](index=16&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2023, with no material internal control changes - Management concluded that as of June 30, 2023, the company's disclosure controls and procedures were effective[71](index=71&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[72](index=72&type=chunk) [PART II. OTHER INFORMATION](index=16&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=16&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any material pending or threatened legal proceedings impacting its financial condition - As of the report date, the company is not aware of any material pending or threatened legal proceedings[74](index=74&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors, except for a new risk related to credit losses from ASU No. 2016-13 adoption - A new risk factor was added related to the risk of credit losses, as the adoption of ASU No. 2016-13 requires measuring allowance based on expected future losses, which could negatively impact financial results[75](index=75&type=chunk) [Mine Safety Disclosures](index=16&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable as the company has no mine safety disclosures to report - None[76](index=76&type=chunk) [Exhibits](index=17&type=section&id=Item%206.%20Exhibits) The report includes key exhibits: Sonova Supply Agreement amendment, CEO/CFO certifications, and Inline XBRL data files - Filed exhibits include the Second Amendment Sonova Supply Agreement, CEO/CFO certifications (Rule 13a-14(a)/15d-14(a) and Section 906), and various Inline XBRL documents[78](index=78&type=chunk) [Signatures](index=18&type=section&id=SIGNATURES) The report was signed on July 19, 2023, by Daniel A. Baker (CEO) and Daniel Nelson (Principal Financial Officer) - The Form 10-Q was signed on July 19, 2023, by Daniel A. Baker (President and CEO) and Daniel Nelson (Principal Financial Officer)[81](index=81&type=chunk)

PART I [Business](index=4&type=section&id=Item%201.%20Business.) NVE Corporation develops and sells spintronic sensors and couplers for IIoT and medical markets, leveraging its ISO-certified facility - NVE develops and sells high-performance spintronic sensors and couplers, utilizing electron spin for information acquisition and transmission[17](index=17&type=chunk) - The company's strategy focuses on becoming a leading developer of practical spintronics for efficient energy conversion and low-power IoT applications[27](index=27&type=chunk) - NVE operates its own ISO 9001:2015 certified U.S.-based wafer production and testing facility, a competitive advantage over outsourced models[36](index=36&type=chunk) - Significant revenue concentration exists with key customers, including **Abbott Laboratories** and **Sonova AG**[47](index=47&type=chunk) - As of March 31, 2023, the company had **56 employees**, with increased compensation to attract and retain talent[51](index=51&type=chunk)[54](index=54&type=chunk) [Our Products and Markets](index=5&type=section&id=Our%20Products%20and%20Markets) NVE offers standard and custom spintronic sensors for IIoT and medical devices, along with couplers, DC-to-DC convertors, and MRAM - Major markets for standard sensors include the **Industrial Internet of Things (IIoT)** for factory automation[29](index=29&type=chunk) - Primary custom products are medical device sensors, manufactured under stringent quality standards, often replacing electromechanical switches[30](index=30&type=chunk) - Coupler markets primarily include power conversion and the **IIoT**, supporting efficient power systems and advanced factory automation[31](index=31&type=chunk) [New Product Status](index=6&type=section&id=New%20Product%20Status) In fiscal year 2023, NVE introduced new ultraminiature isolated DC-to-DC convertors, TMR magnetic sensors, and combined data coupler products - New products introduced include additional ultraminiature isolated DC-to-DC convertor models, TMR magnetic sensors, and combined data coupler products[38](index=38&type=chunk)[44](index=44&type=chunk) [Our Competition](index=6&type=section&id=Our%20Competition) NVE competes across product lines with various sensor and coupler technologies, focusing on superior features rather than solely on price - NVE competes with GMR/TMR, Hall-effect, and AMR sensor makers, emphasizing its products' superior sensitivity and power efficiency[39](index=39&type=chunk) - In medical sensors, NVE's solid-state products compete with electromechanical switches, offering advantages in reliability, size, and precision[40](index=40&type=chunk) - Competitive strategy for couplers focuses on superior features like smaller size, higher transient immunity, and longer product life, rather than price alone[41](index=41&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors.) NVE faces risks from labor market tightness, single-source supplier dependence, customer concentration, competition, product liability, and dividend sustainability - A tight labor market, particularly in Minnesota, leads to increased competition for employees, higher turnover, and wage inflation[57](index=57&type=chunk) - Dependence on single-source suppliers for critical raw materials and packaging services, including those from China and Asia, creates significant supply chain risk[58](index=58&type=chunk)[60](index=60&type=chunk) - The Supplier Partnering Agreement with **Abbott Laboratories** expires on **December 31, 2023**, posing a significant revenue risk if not renewed[64](index=64&type=chunk) - As of March 31, 2023, **$52.5 million** in marketable securities, representing **76% of total assets**, are subject to market and credit risks[75](index=75&type=chunk) - Future dividend payments are not guaranteed and may be unsustainable, as recent amounts have generally exceeded cash flow from operations[80](index=80&type=chunk) [Unresolved Staff Comments](index=12&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments.) The company reports no unresolved staff comments from the SEC - No unresolved staff comments are reported[82](index=82&type=chunk) [Properties](index=12&type=section&id=Item%202.%20Properties.) NVE's principal offices and manufacturing facility are a leased 21,362 sq ft space in Eden Prairie, Minnesota, with limited expansion options - The company leases its **21,362 sq ft** facility in Eden Prairie, Minnesota, with the agreement expiring **March 31, 2026**[83](index=83&type=chunk) - Limited options exist for production expansion in the current facility, prompting exploration of future alternatives[83](index=83&type=chunk) [Legal Proceedings](index=12&type=section&id=Item%203.%20Legal%20Proceedings.) The company is unaware of any material pending or threatened legal proceedings that would adversely impact its financials - As of the report date, NVE is unaware of any material pending or threatened legal proceedings[84](index=84&type=chunk) [Mine Safety Disclosures](index=12&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to NVE Corporation - This item is not applicable[85](index=85&type=chunk) PART II [Market for Common Equity, Stockholder Matters, and Issuer Purchases](index=12&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) NVE's common stock trades on NASDAQ, with a history of dividends and a recent repurchase of 1,000 shares, while forgoing future buybacks for CHIPS Act grants - The company's Common Stock trades on the **NASDAQ Stock Market** under the symbol **NVEC**[87](index=87&type=chunk) - As of **April 12, 2023**, there were approximately **54 shareholders of record**[89](index=89&type=chunk) - The company repurchased **1,000 shares** in fiscal 2023 and resolved to forgo buybacks for five years for preferential CHIPS Act grant treatment[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) In fiscal 2023, NVE's total revenue grew **42%** to **$38.3 million**, driving a **56%** increase in net income to **$22.7 million**, despite a cash decrease due to investments and dividends Fiscal Year 2023 vs 2022 Performance | Metric | FY 2023 ($) | FY 2022 ($) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $38.25M | $26.99M | +41.7% | | Product Sales | $37.20M | $25.87M | +43.8% | | Gross Profit | $30.19M | $20.72M | +45.7% | | Gross Margin | 78.9% | 76.8% | +2.1 p.p. | | Income from Operations | $25.64M | $16.33M | +57.0% | | Net Income | $22.69M | $14.51M | +56.4% | - Increased product sales were primarily driven by higher purchases from existing customers across most markets and product lines[101](index=101&type=chunk) - Gross profit margin increased from **77% to 79%** due to economies of scale and increased prices, offsetting higher material and labor costs[102](index=102&type=chunk) - The effective tax rate decreased from **17% to 16%** due to **$197,008** in investment tax credits from the CHIPS and Science Act of 2022[105](index=105&type=chunk) - Cash and cash equivalents decreased by **$8.8 million**, from **$10.4 million to $1.7 million**, driven by **$19.3 million** in dividends and **$8.5 million** in net investing cash outflow, partially offset by **$19.1 million** from operations[108](index=108&type=chunk) [Financial Statements and Supplementary Data](index=15&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data.) Audited financial statements and accompanying notes are included in the report, starting on page F-1 - Financial statements and accompanying notes are included in this Report beginning on **page F-1**[115](index=115&type=chunk) [Controls and Procedures](index=15&type=section&id=Item%209A.%20Controls%20and%20Procedures.) As of March 31, 2023, management concluded that disclosure controls and internal control over financial reporting were effective, with no material changes - Management concluded that disclosure controls and procedures were effective as of **March 31, 2023**[117](index=117&type=chunk) - Internal control over financial reporting was effective as of **March 31, 2023**, based on the **2013 COSO framework**[118](index=118&type=chunk) - No material changes to internal control over financial reporting occurred during the year ended **March 31, 2023**[120](index=120&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=16&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance.) Information regarding the company's directors, executive officers, and corporate governance is incorporated by reference from its 2023 Proxy Statement - Information required by this item is incorporated by reference from the company's Proxy Statement for its 2023 Annual Meeting of Shareholders[122](index=122&type=chunk) [Executive Compensation](index=16&type=section&id=Item%2011.%20Executive%20Compensation.) Detailed information concerning executive and director compensation is incorporated by reference from the company's 2023 Proxy Statement - Information required by this item is incorporated by reference from the company's Proxy Statement for its 2023 Annual Meeting of Shareholders[123](index=123&type=chunk) [Security Ownership and Related Stockholder Matters](index=16&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters.) Information regarding security ownership by certain beneficial owners and management, and equity compensation plans, is incorporated by reference from the company's 2023 Proxy Statement - Information required by this item is incorporated by reference from the company's Proxy Statement for its 2023 Annual Meeting of Shareholders[124](index=124&type=chunk) [Certain Relationships, Related Transactions, and Director Independence](index=16&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence.) Information regarding related party transactions and director independence is incorporated by reference from the company's 2023 Proxy Statement - Information required by this item is incorporated by reference from the company's Proxy Statement for its 2023 Annual Meeting of Shareholders[125](index=125&type=chunk) [Principal Accounting Fees and Services](index=16&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services.) Information regarding fees paid to the independent registered public accounting firm and audit committee policies is incorporated by reference from the company's 2023 Proxy Statement - Information required by this item is incorporated by reference from the company's Proxy Statement for its 2023 Annual Meeting of Shareholders[126](index=126&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=16&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules.) This section confirms financial statements are provided per Item 8 and lists all exhibits filed with the Form 10-K - Financial statements are provided pursuant to **Item 8** of this Report[128](index=128&type=chunk) - A list of exhibits filed with the report is provided on **page 17**[129](index=129&type=chunk)[131](index=131&type=chunk) FINANCIAL STATEMENTS [Report of Independent Registered Public Accounting Firm](index=20&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Boulay PLLP issued an unqualified opinion on NVE's financial statements for FY2023 and FY2022, confirming fair presentation under U.S. GAAP with no critical audit matters - The auditor, **Boulay PLLP**, expressed an unqualified opinion on the financial statements[139](index=139&type=chunk) - The audit was conducted in accordance with **PCAOB standards**[141](index=141&type=chunk) - No critical audit matters were identified during the audit[143](index=143&type=chunk) [Balance Sheets](index=21&type=section&id=Balance%20Sheets) As of March 31, 2023, total assets were **$69.3 million**, with a shift from cash to marketable securities, while liabilities decreased and equity increased Balance Sheet Highlights (As of March 31) | Metric | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,669,896 | $10,449,510 | | Marketable securities, total | $51,638,142 | $45,153,894 | | Inventories | $6,417,010 | $5,088,635 | | **Total assets** | **$69,255,170** | **$67,467,492** | | **Liabilities & Equity** | | | | Total liabilities | $2,175,668 | $2,902,363 | | Total shareholders' equity | $67,079,502 | $64,565,129 | [Statements of Income](index=22&type=section&id=Statements%20of%20Income) For FY2023, total revenue increased **41.7%** to **$38.3 million**, leading to a **56.4%** rise in net income to **$22.7 million**, or **$4.70** per diluted share Income Statement Summary (Year Ended March 31) | Metric | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Total revenue | $38,253,592 | $26,986,970 | | Gross profit | $30,191,281 | $20,723,880 | | Income from operations | $25,644,182 | $16,328,685 | | Net income | $22,694,458 | $14,507,501 | | Net income per share – diluted | $4.70 | $3.00 | [Statements of Cash Flows](index=24&type=section&id=Statements%20of%20Cash%20Flows) In fiscal 2023, NVE generated **$19.1 million** from operations but saw an **$8.8 million** net cash decrease due to **$8.5 million** in investing and **$19.3 million** in financing outflows Cash Flow Summary (Year Ended March 31, 2023) | Activity | Cash Flow ($) | | :--- | :--- | | Net cash provided by operating activities | $19,091,498 | | Net cash used in investing activities | ($8,527,108) | | Net cash used in financing activities | ($19,344,004) | | **Net decrease in cash and cash equivalents** | **($8,779,614)** | [Notes to Financial Statements](index=25&type=section&id=Notes%20to%20Financial%20Statements) Notes detail accounting policies, customer concentration (one customer **22%** of FY2023 revenue), **$52.5 million** in marketable securities, stock repurchase authorization, and a subsequent **$1.00** per share dividend - Customer Concentration: One customer accounted for **22%** of revenue in fiscal 2023 and **25%** in fiscal 2022, with a second customer at **11%** in fiscal 2022[204](index=204&type=chunk) - As of **March 31, 2023**, the company held **$52.5 million** in available-for-sale securities, primarily corporate bonds[187](index=187&type=chunk) - The company repurchased **1,000 shares** in fiscal 2023, with **$3,520,369** remaining authorization for the stock repurchase program as of **March 31, 2023**[206](index=206&type=chunk) - Subsequent Event: On **May 3, 2023**, the Board declared a quarterly cash dividend of **$1.00 per share**, payable on **May 31, 2023**[208](index=208&type=chunk)

NVEC Corporation (NASDAQ:NVEC) Q3 2023 Earnings Conference Call January 25, 2023 5:00 PM ET Company Participants Daniel Baker - President and Chief Executive Officer Joseph Schmitz - Chief Financial Officer Conference Call Participants Jeffrey Bernstein - Cowen Alex Woodward - Bridge City Capital Walter Morris - Baraboo Growth Operator Good day and thank you for standing by. Welcome to NVE Conference Call on Third Quarter Results. At this time, all participants are in a listen-only mode. After the speakers' ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 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, 2022 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 (E ...

NVE Corporation (NASDAQ:NVEC) Q2 2023 Earnings Conference Call October 19, 2022 5:00 PM ET Company Participants Dan Baker - President and Chief Executive Officer Joe Schmitz - Chief Financial Officer Conference Call Participants Jeffrey Bernstein - Cowen Irwin Silverberg - Cowen Stanley Kesselman - Maxim Group Operator Good day, and welcome to the NVE Conference Call on Second Quarter Results. At this time, all participants are in a listen-only mode. After the speaker presentation there will be a question-a ...