What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2020-07-22 compared with 2020-01-22 · 180 added, 323 removed, 346 unchanged (59% of the section changed)

2 unchanged sentences

BALANCE SHEETS

June 30, 2020

Current assets

16 unchanged sentences

Accrued payroll and other

Income taxes payable

Operating lease

Total current liabilities

Deferred tax liabilities

Operating lease

Total liabilities

Shareholders equity

1 unchanged sentence

6,000,000 shares authorized;

4,846,010 issued and outstanding as of December 31, 2019 and March 31,

4,835,038 issued

and outstanding as of June 30, 2020 and March 31, 2020

Additional paid-in capital

Accumulated other comprehensive income (loss)

Accumulated other comprehensive income

Retained earnings

7 unchanged sentences

STATEMENTS OF INCOME

Quarter Ended Dec.

Product sales

Contract research and development

Total revenue

Cost of sales

Research and development

Selling, general, and administrative

Total expenses

Income from operations

Interest income

Income before taxes

Provision for income taxes

Net income per share basic

Net income per share diluted

Cash dividends declared per common share

Weighted average shares outstanding

STATEMENTS OF COMPREHENSIVE INCOME

Quarter Ended Dec.

Unrealized gain from marketable securities, net of tax

Comprehensive income

See accompanying notes.

NVE CORPORATION

STATEMENTS OF INCOME

Nine Months Ended Dec.

Quarter Ended June 30

Product sales

14 unchanged sentences

STATEMENTS OF COMPREHENSIVE INCOME

Nine Months Ended Dec.

Quarter Ended June 30

Unrealized gain from marketable securities, net of tax

8 unchanged sentences

Total comprehensive income

Cash dividends declared

($1.00 per share of

common stock)

Balance as of June 30, 2019

Comprehensive income:

Unrealized gain on

marketable securities,

Total comprehensive income

Stock-based compensation

2 unchanged sentences

common stock)

Balance as of September 30, 2019

Comprehensive income:

Unrealized gain on

marketable securities,

Total comprehensive income

Cash dividends declared

($1.00 per share of

common stock)

Balance as of December 31, 2019

Balance as of June 30, 2020

See accompanying notes.

3 unchanged sentences

Comprehensive income:

Unrealized loss on

marketable securities,

Total comprehensive income

Cash dividends declared

($1.00 per share of

common stock)

Cumulative effect of accounting change

Balance as of June 30, 2018

Exercise of stock

Comprehensive income:

Unrealized gain on

1 unchanged sentence

Total comprehensive income

Stock-based compensation

Cash dividends declared

1 unchanged sentence

common stock)

Balance as of September 30, 2018

Exercise of stock

Comprehensive income:

Unrealized gain on

marketable securities,

Total comprehensive income

Cash dividends declared

($1.00 per share of

common stock)

Balance as of December 31, 2018

Balance as of June 30, 2019

See accompanying notes.

1 unchanged sentence

STATEMENTS OF CASH FLOWS

Months Ended December 31

Ended June 30

OPERATING ACTIVITIES

15 unchanged sentences

FINANCING ACTIVITIES

Proceeds from sale of common stock

Payment of dividends to shareholders

Cash used in financing activities

Increase in cash and cash

(Decrease) increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

26 unchanged sentences

The results of operations for the quarter

and nine months ended December 31, 2019 are not necessarily indicative of

the results that may be expected for the full fiscal year ending March 31,

ended June 30, 2020 are not necessarily indicative of the results that may

be expected for the full fiscal year ending March 31, 2021.

Significant Accounting Policies

36 unchanged sentences

We had no material

contract assets or contract liabilities as of December 31, 2019 or March 31,

contract assets or contract liabilities as of June 30, 2020 or March 31,

Our performance obligations related to product sales

3 unchanged sentences

As permitted under Accounting Standards Codification

(ASC) Topic 606, Revenue from Contracts with Customers , we

are using the practical expedient not to disclose the value of these unsatisfied

(ASC) Topic 606, Revenue from Contracts with Customers ,

we are using the practical expedient not to disclose the value of these unsatisfied

performance obligations.

5 unchanged sentences

RECENTLY ISSUED ACCOUNTING STANDARDS

Recently Adopted Accounting Standards

In July 2019, the Financial Accounting Standards

Board (FASB) issued Accounting Standards Update (ASU)

2019-07, Codification Updates to SEC SectionsAmendments to SEC Paragraphs

Pursuant to SEC Final Rule Releases No.

33-10532, Disclosure Update and Simplification,

33-10231 and 33-10442, Investment Company Reporting Modernization, and

Miscellaneous Updates .

ASU 2019-07 aligns the guidance in various SEC sections

of the codification with the requirements of certain SEC final rules and is effective

These rules include requiring filers to include in their interim

financial statements a reconciliation of changes in shareholders equity.

We adopted all of the applicable rules for our Quarterly Report on Form

10-Q for the quarter ended June 30, 2019 and subsequent interim reports.

The adoption of ASU 2019-07 only affected presentation and disclosure.

In February 2016, the FASB issued ASU No.

Lease Accounting .

ASU 2016-02 requires recognition of lease assets and

lease liabilities on the balance sheet of lessees.

In July 2018, the FASB issued

ASU 2018-10, Codification Improvements to Topic 842 (Leases) , which provides

narrow amendments to clarify how to apply certain aspects of the new lease standard.

The guidance is effective for fiscal years beginning after December 15, 2018,

and interim periods within those fiscal years, which is fiscal 2020 for us.

July 2018, the FASB issued ASU No.

2018-11, Leases Topic (842):

Improvements.

ASU 2018-11 provided companies an option to apply the transition

provisions of the new lease standard at its adoption date instead of at the earliest

comparative period presented in its financial statements, and we adopted the new

lease guidance using that method in the quarter ended June 30, 2019.

our only lease is the lease for our facility.

We recognized $298,983 of

leased liabilities a right-of-use asset of $261,644 as of April 1, 2019.

liabilities and right-of-use asset exclude non-lease components.

effect on our results of operations or cash flows.

New Accounting Standards Not Yet Adopted

In December 2019, the FASB issued ASU No.

Income Taxes (Topic 740)Simplifying the Accounting for Income Taxes .

In December 2019, the Financial Accounting Standards

Board (FASB) issued Accounting Standards Update (ASU)

2019-12, Income Taxes (Topic 740)Simplifying the Accounting for Income

ASU 2019-12 is intended to simplify accounting for income taxes.

certain exceptions to the general principles in Topic 740 and amends existing

guidance to improve consistent application.

ASU 2019-12 is effective for fiscal

years beginning after December 15, 2020 and interim periods within those fiscal

years, which is fiscal 2022 for us, with early adoption permitted.

We do not expect

adoption of the new guidance to have a significant impact on our financial statements.

It removes certain exceptions to the general principles in Topic 740 and amends

existing guidance to improve consistent application.

ASU 2019-12 is effective

for fiscal years beginning after December 15, 2020 and interim periods within

those fiscal years, which is fiscal 2022 for us, with early adoption permitted.

We do not expect adoption of the new guidance to have a significant impact on

our financial statements.

In June 2016, the FASB issued ASU No.

2016-13, Financial

InstrumentsCredit Losses (Topic 326), Measurement of Credit Losses on Financial

ASU 2016-13 requires a financial asset (or a group of financial

assets) measured at amortized cost basis 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.

Financial InstrumentsCredit Losses (Topic 326), Measurement of Credit

Losses on Financial Statements .

ASU 2016-13 requires a financial asset

(or a group of financial assets) measured at amortized cost basis 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 InstrumentsCredit Losses , which clarifies

codification and corrects unintended application of the guidance, and in November

Codification Improvements to Topic 326, Financial InstrumentsCredit

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.

2019-11, 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

2019-10, Financial InstrumentsCredit Losses (Topic 326), Derivatives

and Hedging (Topic 815), and Leases (Topic 842):

Effective Dates , which delays

the effective date of ASU 2016-13 by three years for certain Smaller Reporting

Companies such as us.

In accordance with ASU 2019-10, ASU 2016-13 is effective

for certain Smaller Reporting Companies for financial statements issued for fiscal

years beginning after December 15, 2022 and interim periods within those

fiscal years, which will be fiscal 2024 for us if we continue to be classified

as a Smaller Reporting Company, with early adoption permitted.

We do not expect

adoption of the new guidance to have a significant impact on our financial statements.

2019-10, Financial InstrumentsCredit Losses

(Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842):

Effective Dates , and in February 2020 the FASB issued ASU No.

Financial InstrumentsCredit Losses (Topic 326) and Leases (Topic

Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No.

and Update to SEC Section on Effective Date Related to Accounting Standards Update

2016-02, Leases (Topic 842) , both of which delay the effective

date of ASU 2016-13 by three years for certain Smaller Reporting Companies

We were unaffected by the change in the effective date of the ASU

related to Leases (Topic 842) because we have already adopted that ASU.

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.

In accordance with ASU 2019-10 and

ASU 2020-02, ASU 2016-13 is effective for certain Smaller Reporting

Companies for financial statements issued for fiscal years beginning after December 15,

2022 and interim periods within those fiscal years, which will be fiscal 2024

for us if we continue to be classified as a Smaller Reporting Company, with early

adoption permitted.

We do not expect adoption of the new guidance to have a significant

impact on our financial statements.

NET INCOME PER SHARE

3 unchanged sentences

The following tables show the components of diluted shares:

Quarter Ended Dec.

Weighted average common shares outstanding basic

Dilutive effect of stock options

Shares used in computing net income per share

Nine Months Ended Dec.

Ended June 30

Weighted average common shares outstanding basic

Dilutive effect of stock options

Shares used in computing net income per share

Shares used in computing net income per share diluted

FAIR VALUE OF FINANCIAL INSTRUMENTS

11 unchanged sentences

security transactions are reported on the specific-identification method.

The fair value of our available-for-sale securities as

of December 31, 2019 by maturity were as follows:

Contractual maturities of available-for-sale securities as of June 30, 2020 are as follows:

Total available-for-sale securities represented

approximately 89% of our total assets.

Marketable securities as of December 31,

2019 had remaining maturities between 10 and 50 months.

Marketable securities as of June 30,

2020 had remaining maturities between four and 44 months.

Generally accepted accounting principles establish

14 unchanged sentences

described as follows:

Level 1 Financial instruments with quoted prices in active markets for identical

1 Financial instruments with quoted prices in active markets for identical

assets or liabilities.

11 unchanged sentences

of assets that were accounted for at fair value on a recurring basis:

December 31, 2019

June 30, 2020

March 31, 2020

1 unchanged sentence

Corporate bonds

Our available-for-sale securities as of December 31 and March 31, 2019,

aggregated into classes of securities, were as follows:

of December 31, 2019

Our available-for-sale securities as of June 30

and March 31, 2020, aggregated into classes of securities, were as follows:

of June 30, 2020

of March 31, 2020

1 unchanged sentence

Holding Losses

Corporate bonds

The following table shows the gross unrealized holding

losses and fair value of our available-for-sale securities with unrealized holding

losses, aggregated by class of securities and length of time that individual securities

had been in a continuous unrealized loss position as of December 31 and March 31,

Than 12 Months

Holding Losses

Holding Gains

Holding Losses

As of December 31, 2019

Corporate bonds

As of March 31, 2019

Corporate bonds

We did not consider any of our available-for-sale

securities to be impaired as of December 31, 2019.

None of the securities were

impaired at acquisition, and subsequent declines in fair value are not attributed

to declines in credit quality.

When evaluating for impairment we assess indicators

that include, but are not limited to, earnings performance, changes in underlying

credit ratings, market conditions, bona fide offers to purchase or sell, and ability

to hold until maturity.

Because we believe it is more likely than not we will

recover the cost basis of our investments, we did not consider any of our marketable

securities to be impaired as of December 31, 2019.

Inventories are shown in the following table:

4 unchanged sentences

STOCK-BASED COMPENSATION

Stock-based compensation expense was $2,707 for

the first quarter of fiscal 2021.

There were no stock-based compensation expenses

for the third quarters of fiscal 2020 or 2019.

Stock-based compensation expense

was $48,360 for the first nine months of fiscal 2020 and $93,360 for the first

nine months of fiscal 2019.

Stock-based compensation expenses were due to the

automatic issuance to our non-employee directors of options to purchase 1,000

shares of stock on their reelection to our Board.

We calculate the share-based

compensation expense using the Black-Scholes standard option-pricing model.

for the first quarter of fiscal 2020.

We calculate the share-based compensation

expense using the Black-Scholes standard option-pricing model.

Deferred income taxes reflect the net tax effects

1 unchanged sentence

for financial reporting purposes and the amounts used for income tax purposes.

We had no unrecognized tax benefits as of December 31,

We had no unrecognized tax benefits as of June 30,

2020, and we do not expect any significant unrecognized tax benefits within 12 months

2 unchanged sentences

matters in income tax expense.

As of December 31, 2019 we had no accrued

interest related to uncertain tax positions.

The tax years 2016 through 2018 remain

open to examination by the major taxing jurisdictions to which we are subject.

We conduct our operations in a leased facility under

a non-cancellable lease through December 31, 2020.

Our lease does not provide

an implicit rate, so we used our incremental borrowing rate to determine the present

value of lease payments.

Lease expense is recognized on a straight-line basis

over the lease term.

Variable lease costs consist primarily of common area maintenance

and real estate taxes which are paid based on actual costs incurred by the lessor.

Details of our operating lease are as follows:

As of June 30, 2020 we had no accrued interest

related to uncertain tax positions.

The tax years 2016 through 2019 remain open

to examination by the major taxing jurisdictions to which we are subject.

We conduct our operations in a leased facility under a

non-cancellable lease expiring March 31, 2026.

Our lease does not provide an implicit rate,

so we used our incremental borrowing rate to determine the present value of lease payments.

Lease expense is recognized on a straight-line basis over the lease term.

Variable lease costs

consist primarily of common area maintenance and real estate taxes which are paid

based on actual costs incurred by the lessor.

Details of our operating lease are

Quarter Ended

December 31, 2019

Nine Months Ended

December 31, 2019

June 30, 2020

Operating lease cost

Variable lease cost

Cash paid for amounts included in the measurement of lease liabilities

Cash paid for amounts included in the measurement

of lease liabilities

Operating cash flows for leases

1 unchanged sentence

Discount rate

The following table presents the maturities of lease

liabilities as of December 31, 2019:

The following table presents the maturities

of lease liabilities as of June 30, 2020:

Year Ending March 31

6 unchanged sentences

of Directors authorized the repurchase of up to $2,500,000 of our Common Stock

and on August 27, 2015 we announced that our Board authorized $5,000,000

of additional repurchases.

We did not repurchase any of our Common Stock under

the program during the quarter ended December 31, 2019.

The remaining authorization

was $4,540,806 as of December 31, 2019.

The Repurchase Program may be modified

or discontinued at any time without notice.

from time to time in open market, block, or privately negotiated transactions.

The timing and extent of any repurchases depends on market conditions, the trading

price of the companys stock, and other factors, and subject to the restrictions

relating to volume, price, and timing under applicable law.

On August 27,

2015, we announced that our Board of Directors authorized up to $5,000,000 of

additional repurchases.

Our repurchase program does not have an expiration date

and does not obligate us to purchase any shares.

The Program may be modified or

discontinued at any time without notice.

We intend to finance any stock repurchases

with cash provided by operating activities or maturating marketable securities.

The remaining authorization was $3,853,459 as of June 30, 2020.

not repurchase any of our Common Stock during the first quarter of fiscal 2021.

INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS

4 unchanged sentences

of 100% of the first 3% of participants salary deferral contributions.

matching contributions were $22,456 for the third quarter of fiscal 2020, $68,512

for the first nine months of fiscal 2020, $21,733 for the third quarter of fiscal

2019, and $67,327 for the first nine months of fiscal 2019.

matching contributions were $25,381 for the first quarter of fiscal 2021 and $24,066

for the first quarter of fiscal 2020.

SUBSEQUENT EVENTS

On January 22, 2020 we announced that our Board

On July 22, 2020 we announced that our Board

had declared a quarterly cash dividend of $1.00 per share of Common Stock to be

paid February 28, 2020 to shareholders of record as of the close of business

February 3, 2020.

paid August 31, 2020 to shareholders of record as of the close of business

August 3, 2020.

Managements Discussion and Analysis of Financial

25 unchanged sentences

uncertainties related to the economic environments in the industries we serve,

uncertainties related to future sales and revenues, risks related to changes in

tariffs and other trade barriers, uncertainties related to future stock repurchases

and dividend payments, and other specific risks that may be alluded to in this

Report or in the documents incorporated by reference in this Report.

uncertainties related to future sales and revenues, risks

related to the COVID-19 pandemic, risks and uncertainties related to future

stock repurchases and dividend payments, and other specific risks that may be

alluded to in this Report or in the documents incorporated by reference in this

Further information regarding our risks and uncertainties

11 unchanged sentences

10-K for the year ended March 31, 2020.

As of December 31, 2019

our critical accounting policies and estimates continued to include investment

valuation, inventory valuation, and deferred tax assets estimation.

ended December 31, 2019 compared to quarter ended December 31, 2018

As of June 30, 2020 our

critical accounting policies and estimates continued to include investment valuation,

inventory valuation, and deferred tax assets estimation.

Quarter ended June 30, 2020 compared to quarter ended June 30, 2019

The table shown below summarizes the percentage

of revenue and quarter-to-quarter changes for various items:

Quarter Ended December 31

Quarter Ended June 30

Product sales

9 unchanged sentences

Provision for income taxes

Total revenue for the quarter ended December 31,

2019 (the third quarter of fiscal 2020) increased 3% compared to the quarter ended

December 31, 2018 (the third quarter of fiscal 2019).

The increase was due

to an 3% increase in product sales and a 9% increase in contract research and

development revenue.

The increase in product sales from the prior-year

quarter was primarily due to increased purchases by existing customers.

in contract research and development revenue the third quarter of fiscal 2020

Total revenue for the quarter ended June 30,

2020 (the first quarter of fiscal 2021) decreased 27% compared to the quarter

ended June 30, 2019 (the first quarter of fiscal 2020).

The decrease was

due to a 28% decrease in product sales partially offset by a 10% increase in contract

research and development revenue.

The decrease in product sales from the prior-year

quarter was primarily due to decreased purchases by existing customers.

in contract research and development revenue the first quarter of fiscal 2021

was due to the timing of progress towards contract completion.

Total expenses decreased 21% in the third quarter

of fiscal 2020 compared to the third quarter of fiscal 2019 due to a 32% decrease

Total expenses decreased 5% in the first quarter

of fiscal 2021 compared to the first quarter of fiscal 2020 due to a 9% decrease

in research and development expense, partially offset by a 8% increase in selling,

5 unchanged sentences

was primarily due to staffing changes.

Interest income for the third quarter of fiscal

Interest income for the first quarter of fiscal

2021 decreased 13% due to a decrease in the average interest rates on our marketable

securities and money market funds.

The 9% increase in net income in the third quarter

The 33% decrease in net income in the first quarter

of fiscal 2021 compared to the prior-year quarter was primarily due to a decrease

in total expenses and an increase in total revenue.

Nine months ended December 31, 2019 compared to nine months ended December 31,

The table shown below summarizes the percentage

of revenue and period-to-period changes for various items:

Nine Months Ended Dec.

Product sales

Contract research and development

Total revenue

Cost of sales

Research and development

Selling, general, and administrative

Total expenses

Income from operations

Interest income

Income before taxes

Provision for income taxes

Total revenue for the nine months ended December 31,

2019 decreased 8% compared to the nine months ended December 31, 2018, due

to a 7% decrease in product sales and a 14% decrease in contract research and

development revenue.

The decrease in product sales from the prior-year

period was due to decreased purchase volumes by existing customers.

in contract research and development revenue was due to the completion of certain

Total expenses decreased 9% for the first

nine months of fiscal 2020 compared to the first nine months of fiscal 2019 due

to a 14% decrease in research and development expense, partially offset by a 5%

increase in selling, general, and administrative expense.

The decrease in research

and development expense was primarily due to staffing changes and the completion

of certain product development activities.

The increase in selling, general, and

administrative expense was primarily due to staffing changes.

Interest income for the first nine months of fiscal

2020 increased 3% due to an increase in the average interest rates on our marketable

The provision for income taxes for the first nine

months of fiscal 2020 decreased 20% due to tax benefits from the Federal Tax Reform

Act enacted in 2017.

We currently expect our tax rate for the fourth quarter of

fiscal 2020 to be approximately 18%, and our rate for the full fiscal year to

be approximately 16%.

The 4% decrease in net income in the first nine

months of fiscal 2020 compared to the prior-year period was primarily due to a

decrease in total revenue, partially offset by a decrease in research and development

expense and a decrease in the provision for income taxes.

Comprehensive income increased 2% to $11,940,161

compared to $11,695,165 for the prior-year period.

The increase in comprehensive

income was due to an unrealized gain from marketable securities of $780,016 compared

to $46,101 in the prior-year period, partially offset by a decrease in net income.

The unrealized gain was due to strong bond market conditions in the first nine

months of fiscal 2020.

in product sales.

The Impact of the COVID-19 Pandemic

We believe the COVID-19 pandemic had a significant

impact on total revenue and net income for the quarter ended June 30, 2020

compared to the prior-year quarter due to its effects on market conditions in

certain industries, especially medical devices.

Total revenue and net income will

likely continue to decrease for future quarters compared to prior-year quarters

due to the effects of the COVID-19 pandemic.

and Capital Resources

Cash and cash equivalents were $6,402,983 as of

December 31, 2019 compared to $6,877,304 as of March 31, 2019.

June 30, 2020 compared to $8,065,594 as of March 31, 2020.

The $1,662,611

increase in cash and cash equivalents during the nine months ended December 31,

2019 was due to $12,536,305 in net cash provided by operating activities and $5,277,594

of cash provided by investing activities, partially offset by $14,538,030 of cash

used in financing activities.

We currently believe our working capital and cash

generated from operations will be adequate for our needs at least for the next

decrease in cash and cash equivalents was due to $4,835,038 of cash used in financing

activities consisting of cash dividends paid to shareholders, partially offset

by $3,172,427 in net cash provided by operating activities.

Investing Activities

Cash provided by investing activities in the nine

months ended December 31, 2019 was due to $12,500,000 of marketable security

maturities, partially offset by $7,196,330 of marketable securities purchases

and $26,076 of fixed asset purchases.

We had no maturities or purchases of debt securities

and no capital expenditures during the quarter ended June 30, 2020.

expenditures can vary from quarter to quarter depending on our needs and equipment

purchasing opportunities.

Financing Activities

Cash used in financing activities in the first nine

months of fiscal 2020 was due to $14,538,030 of cash dividends paid to shareholders.

In addition to the dividends already paid in fiscal 2020, on January 22,

2020 we announced that our Board had declared a cash quarterly dividend of $1.00

per share of common stock, or $4,846,010 based on shares outstanding as of January 17,

2020, to be paid February 28, 2020.

We plan to fund dividends through cash

provided by operating activities and proceeds from maturities and sales of marketable

All future dividends will be subject to Board approval and subject

to the companys results of operations, cash and marketable security balances,

estimates of future cash requirements, and other factors the Board may deem relevant.

Furthermore, dividends may be modified or discontinued at any time without notice.

In addition to cash dividends to shareholders paid

in fiscal 2021, on July 22, 2020 we announced that our Board had declared

a cash dividend of $1.00 per share of Common Stock, or $4,835,038 based on shares

outstanding as of July 17, 2020, to be paid August 31, 2020.

to fund dividends through cash provided by operating activities and proceeds from

maturities of marketable securities.

All future dividends will be subject to Board

approval and subject to the companys results of operations, cash and marketable

security balances, estimates of future cash requirements, the impacts of the COVID-19

pandemic, and other factors the Board may deem relevant.

Furthermore, dividends

may be modified or discontinued at any time without notice.

We currently believe our working capital and cash

generated from operations will be adequate for our needs at least for the next

Off-Balance-Sheet Arrangements

Our off-balance sheet arrangements consist of purchase

We believe such arrangements have no material current or anticipated

future effect on our profitability, cash flows, or financial position.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements