What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2020-10-21 compared with 2020-07-22 · 179 added, 91 removed, 435 unchanged (38% of the section changed)

2 unchanged sentences

BALANCE SHEETS

June 30, 2020

September 30, 2020

Current assets

16 unchanged sentences

Accrued payroll and other

Income taxes payable

Operating lease

7 unchanged sentences

4,833,232 issued

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

and outstanding as of September 30, 2020 and 4,835,038 as of March 31,

Additional paid-in capital

9 unchanged sentences

STATEMENTS OF INCOME

Quarter Ended June 30

Quarter Ended September 30

Product sales

14 unchanged sentences

STATEMENTS OF COMPREHENSIVE INCOME

Quarter Ended June 30

Quarter Ended September 30

Unrealized (loss) gain from marketable securities, net of tax

Comprehensive income

See accompanying notes.

NVE CORPORATION

STATEMENTS OF INCOME

Six Months Ended Sept.

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

Six Months Ended Sept.

Unrealized gain from marketable securities, net of tax

13 unchanged sentences

Balance as of June 30, 2020

Repurchase of common stock

Comprehensive income:

Unrealized loss on

marketable securities,

Total comprehensive income

Stock-based compensation

Cash dividends declared

($1.00 per share of

common stock)

Balance as of September 30, 2020

See accompanying notes.

10 unchanged sentences

Balance as of June 30, 2019

Comprehensive income:

Unrealized gain on

marketable securities,

Total comprehensive income

Stock-based compensation

Cash dividends declared

($1.00 per share of

common stock)

Balance as of September 30, 2019

See accompanying notes.

1 unchanged sentence

STATEMENTS OF CASH FLOWS

Ended June 30

Months Ended Sept.

OPERATING ACTIVITIES

15 unchanged sentences

FINANCING ACTIVITIES

Repurchase of common stock

Payment of dividends to shareholders

29 unchanged sentences

The results of operations for the quarter

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

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

and six months ended September 30, 2020 are not necessarily indicative of

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

Significant Accounting Policies

36 unchanged sentences

We had no material

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

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

Our performance obligations related to product sales

71 unchanged sentences

The following tables show the components of diluted shares:

Ended June 30

Quarter Ended Sept.

Weighted average common shares outstanding basic

Dilutive effect of stock options

Shares used in computing net income per share diluted

Shares used in computing net income per share

Six Months Ended Sept.

Weighted average common shares outstanding basic

Dilutive effect of stock options

Shares used in computing net income per share

FAIR VALUE OF FINANCIAL INSTRUMENTS

11 unchanged sentences

security transactions are reported on the specific-identification method.

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

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

Total available-for-sale securities represented

approximately 89% of our total assets.

Marketable securities as of June 30,

2020 had remaining maturities between four and 44 months.

Marketable securities as of September 30,

2020 had remaining maturities between one and 41 months.

Generally accepted accounting principles establish

28 unchanged sentences

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

June 30, 2020

September 30, 2020

March 31, 2020

1 unchanged sentence

Corporate bonds

Our available-for-sale securities as of June 30

Our available-for-sale securities as of September 30

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

of June 30, 2020

of September 30, 2020

of March 31, 2020

11 unchanged sentences

Stock-based compensation expense was $34,315 for

the first quarter of fiscal 2021.

There were no stock-based compensation expenses

for the first quarter of fiscal 2020.

We calculate the share-based compensation

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

the second quarter of fiscal 2021, $37,022 for the first six months of fiscal

2021, and $48,360 for the second quarter and first six months 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 June 30,

We had no unrecognized tax benefits as of September 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 June 30, 2020 we had no accrued interest

As of September 30, 2020 we had no accrued interest

related to uncertain tax positions.

11 unchanged sentences

Quarter Ended

June 30, 2020

Six Months Ended

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 June 30, 2020:

The following table presents the maturities of lease

liabilities as of September 30, 2020:

Year Ending March 31

19 unchanged sentences

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.

The remaining authorization was $3,762,040 as of September 30, 2020.

Common Stock repurchases during the second quarter of fiscal 2021, all of which

were made as part of our publicly announced program, were as follows:

Total number of

shares purchased

dollar value of

as part of publicly

shares that may

yet be purchased

under the program

July 1, 2020 July 31, 2020

August 1, 2020 August 31, 2020

September 1, 2020 September 30, 2020

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

for the first quarter of fiscal 2020.

matching contributions were $21,275 for the second quarter of fiscal 2021,

$21,990 for the second quarter of fiscal 2020, $46,656 for the first six

months of fiscal 2021, and $46,056 for the first six months of fiscal 2020.

SUBSEQUENT EVENTS

On July 22, 2020 we announced that our Board

On October 21, 2020 we announced that our Board

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

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

August 3, 2020.

paid November 30, 2020 to shareholders of record as of the close of business

November 2, 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 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

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 Report.

Further information regarding our risks and uncertainties

1 unchanged sentence

on Form 10-K for the year ended March 31,

2020 as updated in our Quarterly Report on Form 10-Q for the quarter ended

June 30, 2020 and Item 1A herein.

NVE Corporation, referred to as NVE, we, us, or

8 unchanged sentences

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

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

As of September 30, 2020

our critical accounting policies and estimates continued to include investment

valuation, inventory valuation, and deferred tax assets estimation.

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

The table shown below summarizes the percentage

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

Quarter Ended June 30

Quarter Ended September 30

Product sales

9 unchanged sentences

Provision for income taxes

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.

Total revenue for the quarter ended September 30,

2020 (the second quarter of fiscal 2021) decreased 33% compared to the quarter

ended September 30, 2019 (the second quarter of fiscal 2020).

was due to a 33% decrease in product sales and a 29% decrease 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 5% in the first quarter

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

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

was due to the completion of certain contracts.

Total expenses decreased 9% in the second quarter

of fiscal 2021 compared to the second quarter of fiscal 2020 due to a 12% decrease

in research and development expense and a 3% decrease in selling, general, and

administrative expense.

The decrease in research and development expense was primarily

due to the completion of certain product development activities.

Interest income for the second quarter of fiscal

2021 decreased 12% due to a decrease in our marketable securities and money market

funds and a decrease in the average interest rates on those securities and funds.

The 42% decrease in net income in the second quarter

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

ended September 30, 2020 compared to six months ended September 30,

The table shown below summarizes the percentage

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

Six Months Ended Sept.

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 six months ended September 30,

2020 decreased 30% compared to the six months ended September 30, 2019, due

to a 31% 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 7% for the first six months

of fiscal 2021 compared to the first six months of fiscal 2020 due to an 11% decrease

in research and development expense, partially offset by a 2% increase in selling,

1 unchanged sentence

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 quarter of fiscal

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

securities and money market funds.

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 product sales.

expense was due to the completion of certain product development activities.

Interest income for the first six months of fiscal

2021 decreased 13% due to a decrease in our marketable securities and money market

funds and a decrease in the average interest rates on those securities and funds.

The 38% decrease in net income in the first

six months of fiscal 2021 compared to the prior-year period was primarily due

to a decrease in revenue.

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.

impact on total revenue and net income for the quarter and six months ended September 30,

2020 compared to the prior-year period due to its effects on market conditions

in certain industries, especially medical devices.

Total revenue and net income

will likely continue to decrease for the quarter ending December 31, 2020 compared

to the prior-year quarter.

and Capital Resources

Cash and cash equivalents were $3,845,070 as of

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

The $1,662,611

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.

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

$4,220,524 decrease in cash and cash equivalents was due to $9,761,495 of cash

used in financing activities consisting of cash dividends and Common Stock repurchases,

partially offset by $5,540,971 in net cash provided by operating activities.

Investing Activities

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.

and no capital expenditures during the six months ended September 30, 2020.

Capital expenditures can vary from period to period depending on our needs and

equipment purchasing opportunities.

Financing Activities

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 paid $9,670,076 in cash dividends and repurchased

$91,419 of our Common Stock in the first six months of fiscal 2021.

to cash dividends paid in the first six months of fiscal 2021, on October 21,

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

of Common Stock, or $4,833,232 based on shares outstanding as of October 16,

2020, to be paid November 30, 2020.

We plan 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

5 unchanged sentences

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