Item 1A. Risk Factors
Item 1A. Risk Factors.
There have been no material changes from the risk
factors disclosed in our Annual Report on Form 10-K for the fiscal year ended
March 31, 2020 as updated in our Quarterly Report on Form 10-Q for the quarter
ended June 30, 2020, except the following risk factor is replaced in its
entirety by the following to update the effects of the COVID-19 pandemic on one
of our packaging vendors:
The loss of supply from any of our packaging vendors could impact our ability
to produce and deliver products and cause loss of revenue.
We are dependent on our packaging vendors. Because
of the unique materials our products use, the complexity of some of our products,
unique magnetic requirements, and high isolation voltage specifications, many
of our products are more challenging to package than conventional integrated circuits.
Some of our products use processes or tooling unique to a particular packaging
vendor, and it might be expensive, time-consuming, or impractical to convert to
another vendor in the event of a supply interruption due to vendors business
decisions, business condition, or acts of God, including floods, typhoons, earthquakes,
or pandemics. One of our packaging vendors was forced to suspend its factory operations
from late March 2020 until mid-May 2020 and
was permitted only limited operation from mid-May through August 2020 pursuant
to COVID-19 government orders. The vendor also cited personnel shortages related
to the COVID-19 pandemic, and the pandemic has caused shortages of raw materials
and subassemblies our packaging vendors need for the packaging process. Additionally,
certain of our packaging vendors are in flood-susceptible areas. Flooding risks
to such vendors may increase in the future due to possible higher ocean levels,
extreme weather, and other potential effects of climate change. We have alternate
vendors or potential alternate vendors for the majority of our products, but it
can be expensive, time-consuming, and technically challenging to convert to alternate
vendors. Furthermore, we may not be able to recover work in process or finished
goods at a packaging vendor in the event of a disruption. Any supply interruptions
or loss of inventory could seriously jeopardize our ability to provide products
that are critical to our business and operations and may cause us to lose revenue.
Item 4. Mine Safety Disclosures.
Not applicable.
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Item 6. Exhibits.
Exhibit #
Description
31.1
Certification by Daniel A. Baker pursuant to Rule 13a-14(a)/15d-14(a).
31.2
Certification by Curt A. Reynders pursuant
to Rule 13a-14(a)/15d-14(a).
32
Certification by Daniel A. Baker and Curt
A. Reynders pursuant to 18 U.S.C. Section 1350.
101.INS
XBRL Instance Document
101.SCH
XBRL Taxonomy Extension Schema Document
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
XBRL Taxonomy Extension Label Linkbase Document
101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document
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SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
NVE CORPORATION
(Registrant)
October 21, 2020
/s/ DANIEL A. BAKER
Date
Daniel A. Baker
President and Chief Executive Officer
October 21, 2020
/s/ CURT A. REYNDERS
Date
Curt A. Reynders
Chief Financial Officer
20
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