What changed in this filing

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Item 1. Financial Statements

2021-01-20 compared with 2020-10-21 · 115 added, 97 removed, 517 unchanged (29% of the section changed)

2 unchanged sentences

BALANCE SHEETS

September 30, 2020

December 31, 2020

Current assets

25 unchanged sentences

4,833,232 issued

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

and outstanding as of December 31, 2020 and 4,835,038 as of March 31,

Additional paid-in capital

9 unchanged sentences

STATEMENTS OF INCOME

Quarter Ended September 30

Quarter Ended December 31

Product sales

14 unchanged sentences

STATEMENTS OF COMPREHENSIVE INCOME

Quarter Ended September 30

Quarter Ended December 31

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

3 unchanged sentences

STATEMENTS OF INCOME

Six Months Ended Sept.

Nine Months Ended Dec.

Product sales

14 unchanged sentences

STATEMENTS OF COMPREHENSIVE INCOME

Six Months Ended Sept.

Nine Months Ended Dec.

Unrealized gain from marketable securities, net of tax

23 unchanged sentences

Balance as of September 30, 2020

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 December 31, 2020

See accompanying notes.

19 unchanged sentences

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

See accompanying notes.

1 unchanged sentence

STATEMENTS OF CASH FLOWS

Months Ended Sept.

Months Ended Dec.

OPERATING ACTIVITIES

18 unchanged sentences

Cash used in financing activities

(Decrease) increase in cash and cash equivalents

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

and nine months ended December 31, 2020 are not necessarily indicative of

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

37 unchanged sentences

We had no material

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

contract assets or contract liabilities as of December 31, 2020 or March 31,

Our performance obligations related to product sales

71 unchanged sentences

The following tables show the components of diluted shares:

Quarter Ended Sept.

Quarter Ended Dec.

Weighted average common shares outstanding basic

1 unchanged sentence

Shares used in computing net income per share

Six Months Ended Sept.

Nine Months Ended Dec.

Weighted average common shares outstanding basic

14 unchanged sentences

security transactions are reported on the specific-identification method.

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

Contractual maturities of available-for-sale securities

as of December 31, 2020 are as follows:

Total available-for-sale securities represented

approximately 88% of our total assets.

Marketable securities as of September 30,

2020 had remaining maturities between one and 41 months.

Marketable securities as of

December 31, 2020 had remaining maturities between eight

weeks and 38 months.

Generally accepted accounting principles establish

28 unchanged sentences

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

September 30, 2020

December 31, 2020

March 31, 2020

1 unchanged sentence

Corporate bonds

Our available-for-sale securities as of September 30

Our available-for-sale securities as of December 31

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

of September 30, 2020

of December 31, 2020

of March 31, 2020

11 unchanged sentences

Stock-based compensation expense was $4,275 for

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.

the third quarter of fiscal 2021, $41,297 for the first nine months of fiscal

2021, and $48,360 for the first nine months of fiscal 2020.

There was no Stock-based

compensation expense in the third 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 September 30,

We had no unrecognized tax benefits as of December 31,

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

2 unchanged sentences

matters in income tax expense.

As of September 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.

As of December 31, 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

8 unchanged sentences

Quarter Ended

Six Months Ended

Nine Months Ended

Operating lease cost

5 unchanged sentences

The following table presents the maturities of lease

liabilities as of September 30, 2020:

liabilities as of December 31, 2020:

Year Ending March 31

19 unchanged sentences

with cash provided by operating activities or maturating marketable securities.

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

The remaining authorization was $3,762,040 as of December 31, 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 $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.

matching contributions were $22,571 for the

third quarter of fiscal 2021, $22,456 for the third quarter of fiscal 2020,

$69,227 for the first nine months of fiscal 2021, and $68,512 for the first

nine months of fiscal 2020.

SUBSEQUENT EVENTS

On October 21, 2020 we announced that our Board

On January 20, 2021 we announced that our Board

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

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

November 2, 2020.

paid February 26, 2021 to shareholders of record as of the close of business

February 1, 2021.

Managements Discussion and Analysis of Financial

32 unchanged sentences

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.

2020 as updated in our Quarterly Reports on Form 10-Q for the quarters ended June 30,

2020, September 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 September 30, 2020

As of December 31, 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

Quarter ended December 31, 2020 compared to quarter ended December 30,

The table shown below summarizes the percentage

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

Quarter Ended September 30

Quarter Ended December 31

Product sales

9 unchanged sentences

Provision for income taxes

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 second quarter of fiscal 2021

Total revenue for the quarter ended December 31,

2020 (the third quarter of fiscal 2021) increased 1% compared to the quarter ended

December 31, 2019 (the third quarter of fiscal 2020).

The increase was due

to a 3% increase in product sales, partially offset by a 34% decrease 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 in the third 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

Gross profit margin increased to 84% of revenue

for the third quarter of fiscal 2021 compared to 80% of revenue for the third

quarter of fiscal 2020 due to a more profitable revenue mix.

Total expenses decreased 8% in the third quarter

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

in research and development expense and a 5% decrease in selling, general, and

2 unchanged sentences

due to the completion of certain product development activities.

Interest income for the second quarter of fiscal

in selling, general, and administrative expense was primarily due to staffing

Interest income for the third quarter of fiscal

2021 decreased 18% 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 5% increase in net income in the third quarter

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

product sales, increased gross profit margin, and decreased expenses, partially

offset by decreased contract research and development revenue and decreased interest

ended December 31, 2020 compared to nine months ended December 31, 2019

The table shown below summarizes the percentage

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

Six Months Ended Sept.

Nine Months Ended Dec.

Product sales

9 unchanged sentences

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

Total revenue for the nine months ended December 31,

2020 decreased 20% compared to the nine months ended December 31, 2019, due

to a 19% decrease in product sales and a 21% decrease in contract research and

3 unchanged sentences

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,

general, and administrative expense.

The decrease in research and development

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

Interest income for the first six months of fiscal

Total expenses decreased 7% for the first nine months

of fiscal 2021 compared to the first nine months of fiscal 2020 primarily due

to a 10% decrease in research and development expense.

The decrease in research

and development expense was due to the completion of certain product development

Interest income for the first nine months of fiscal

2021 decreased 14% due to a decrease in our marketable securities and money market

1 unchanged sentence

The 23% decrease in net income in the first

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

nine 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 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.

The pandemic had a significant impact on total revenue

and net income for the nine months ended December 31, 2020 compared to the

prior-year period due to its effects on market conditions in certain industries,

especially medical devices.

We believe the effects of the pandemic on our business

subsided in the quarter ended December 31, 2020, however.

and Capital Resources

Cash and cash equivalents were $13,988,308 as of

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.

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

The $5,922,714

increase in cash and cash equivalents was due to $8,531,068 in net cash provided

by operating activities and $11,986,373 of cash provided by investing activities,

partially offset by $14,594,727 of cash used in financing activities.

Investing Activities

We had no maturities or purchases of debt securities

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.

Cash provided by investing activities in the nine

months ended December 31, 2020 was due to $12,000,000 of marketable security

maturities, partially offset by $13,627 of fixed asset purchases.

Capital expenditures

can vary from period to period depending on our needs and equipment purchasing

opportunities.

Financing Activities

We paid $14,503,308 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,

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

to cash dividends paid in the first nine months of fiscal 2021, on January 20,

2021 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.

of Common Stock, or $4,833,232 based on shares outstanding as of January 15,

2021, to be paid February 26, 2021.

We plan to fund dividends through cash

13 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