What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-01-17 compared with 2023-10-18 · 159 added, 263 removed, 183 unchanged (70% of the section changed)

Financial Statements.

September 30,

NVE CORPORATION

BALANCE SHEETS

March 31, 2023*

Current assets

Cash and cash equivalents

Marketable securities, short-term (amortized cost of $ 7,302,714 as of September 30, 2023, and $ 15,696,135 as of March 31, 2023)

Marketable securities, short-term (amortized cost of $ 14,556,450

as of December 31, 2023, and $ 15,696,135 as of March 31, 2023)

Accounts receivable, net of allowance for credit losses of $ 15,000

3 unchanged sentences

Leasehold improvements

Total fixed assets

Less accumulated depreciation and amortization

1 unchanged sentence

Deferred tax assets

Marketable securities, long-term (amortized cost of $ 41,467,512 as of September 30, 2023, and $ 37,495,846 as of March 31, 2023)

Marketable securities, long-term (amortized cost of $ 36,414,391

as of December 31, 2023, and $ 37,495,846 as of March 31, 2023)

Right-of-use asset – operating lease

9 unchanged sentences

Common stock, $ 0.01 par value, 6,000,000 shares authorized;

4,833,401 issued and outstanding as of September 30, 2023, and 4,830,826 as of March 31, 2023

4,833,401 issued and outstanding as of December 31, 2023, and 4,830,826 as of March 31, 2023

Additional paid-in capital

Accumulated other comprehensive loss

( 1,502,147 )

( 1,213,858 )

Retained earnings

1 unchanged sentence

Total liabilities and shareholders’ equity

* The March 31, 2023

Balance Sheet is derived from the audited financial statements contained in our Annual Report on Form 10-K for the fiscal year ended

March 31, 2023.

accompanying notes.

Quarter Ended September 30,

*The March 31, 2023 Balance Sheet is derived from the audited financial statements contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

See accompanying notes.

NVE CORPORATION

STATEMENTS OF INCOME

Quarter Ended December 31,

Product sales

4 unchanged sentences

Selling, general, and administrative

Provision for credit losses

Total expenses

7 unchanged sentences

Weighted average shares outstanding

OF COMPREHENSIVE INCOME

Quarter Ended September 30,

Unrealized loss from marketable securities, net of tax

( 1,127,362 )

STATEMENTS OF COMPREHENSIVE INCOME

Quarter Ended December 31,

Unrealized gain on marketable securities, net of tax

Comprehensive income

accompanying notes.

Six Months Ended September 30,

See accompanying notes.

NVE CORPORATION

STATEMENTS OF INCOME

Nine Months Ended December 31,

Product sales

14 unchanged sentences

Weighted average shares outstanding

OF COMPREHENSIVE INCOME

Six Months Ended September 30,

Unrealized loss from marketable securities, net of tax

( 1,465,915 )

STATEMENTS OF COMPREHENSIVE INCOME

Nine Months Ended December 31,

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

Comprehensive income

accompanying notes.

OF SHAREHOLDERS ’ EQUITY

See accompanying notes.

NVE CORPORATION

STATEMENTS OF SHAREHOLDERS ’ EQUITY

Comprehensive

1 unchanged sentence

Balance as of March 31, 2023

$ ( 1,213,858 )

Exercise of stock options

4 unchanged sentences

Cash dividends declared ($1.00 per share of common stock)

( 4,830,826 )

Balance as of June 30, 2023

$ ( 1,448,559 )

Comprehensive income:

3 unchanged sentences

Cash dividends declared ($1.00 per share of common stock)

( 4,833,401 )

Balance as of September 30, 2023

$ ( 1,502,147 )

accompanying notes.

OF SHAREHOLDERS ’ EQUITY

Comprehensive income:

Unrealized gain on marketable securities, net of tax

Total comprehensive income

Stock-based compensation

Cash dividends declared ($1.00 per share of common stock)

Balance as of December 31, 2023

See accompanying notes.

NVE CORPORATION

STATEMENTS OF SHAREHOLDERS ’ EQUITY

Comprehensive

1 unchanged sentence

Balance as of March 31, 2022

$ ( 318,120 )

Comprehensive income:

3 unchanged sentences

Cash dividends declared ($1.00 per share of common stock)

( 4,830,826 )

Balance as of June 30, 2022

$ ( 656,673 )

Comprehensive income:

Unrealized loss on marketable securities, net of tax

( 1,127,362 )

Total comprehensive income

1 unchanged sentence

Cash dividends declared ($1.00 per share of common stock)

( 4,830,826 )

Balance as of September 30, 2022

$ ( 1,784,035 )

accompanying notes.

OF CASH FLOWS

Months Ended September 30,

Comprehensive income:

Unrealized gain on marketable securities, net of tax

Total comprehensive income

Stock-based compensation

Cash dividends declared ($1.00 per share of common stock)

Balance as of December 31, 2022

See accompanying notes.

NVE CORPORATION

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,

OPERATING ACTIVITIES

6 unchanged sentences

Accounts receivable

( 1,155,585 )

Prepaid expenses and other assets

4 unchanged sentences

Purchases of marketable securities

( 3,937,835 )

( 25,381,057 )

Proceeds from maturities of marketable securities

5 unchanged sentences

Payment of dividends to shareholders

( 9,664,227 )

( 9,661,652 )

Cash used in financing activities

( 9,546,700 )

( 9,661,652 )

Increase (decrease) in cash and cash equivalents

( 6,865,971 )

Cash and cash equivalents at beginning of period

2 unchanged sentences

Cash paid during the period for income taxes

accompanying notes.

TO FINANCIAL STATEMENTS

See accompanying notes.

NVE CORPORATION

NOTES TO FINANCIAL STATEMENTS

DESCRIPTION OF BUSINESS

develop and sell devices that use spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire,

store, and transmit information.

We develop and sell devices that use spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store, and transmit information.

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

of Presentation

accompanying unaudited financial statements of NVE Corporation are prepared consistent with accounting principles generally accepted

in the United States and in accordance with Securities and Exchange Commission rules and regulations.

In the opinion of management,

these financial statements reflect all adjustments, consisting only of normal and recurring adjustments, necessary for a fair

presentation of the financial statements.

Although we believe that the disclosures are adequate to make the information presented

not misleading, certain disclosures have been omitted as allowed, and it is suggested that these unaudited financial statements

be read in conjunction with the audited financial statements and the notes included in our latest Annual Report on Form 10-K for

the fiscal year ended March 31, 2023.

The results of operations for the quarter ended September 30, 2023, are not necessarily

indicative of the results that may be expected for the full fiscal year ending March 31, 2024.

accounting policies

description of our significant accounting policies is provided in Note 2 to the Financial Statements in our Annual Report on Form

10-K for the year ended March 31, 2023.

As of September 30, 2023, there were no changes to our significant accounting

policies except for changes resulting from the adoption of Financial Accounting Standards Board (“FASB”) Accounting

Standards Update (“ASU”) No.

2016-13, Financial Instruments—Credit Losses (ASC Topic 326) as described

in the “Marketable securities and credit losses” section below and in Note 3.

securities and credit losses

marketable securities consist of corporate bonds and money market funds.

Marketable are initially recognized at cost.

securities considered to be “purchased financial assets with credit deterioration” are initially recognized at cost,

less any allowance for expected credit losses.

Unrealized holding gains and losses are reported in other comprehensive income,

net of applicable taxes, until realized.

Basis of Presentation

The accompanying unaudited financial statements of NVE Corporation are prepared consistent with accounting principles generally accepted in the United States and in accordance with Securities and Exchange Commission rules and regulations.

In the opinion of management, these financial statements reflect all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the financial statements.

Although we believe that the disclosures are adequate to make the information presented not misleading, certain disclosures have been omitted as allowed, and it is suggested that these unaudited financial statements be read in conjunction with the audited financial statements and the notes included in our latest Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

The results of operations for the quarter ended December 31, 2023, are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2024.

Significant accounting policies

A description of our significant accounting policies is provided in Note 2 to the Financial Statements in our Annual Report on Form 10-K for the year ended March 31, 2023.

As of December 31, 2023, there were no changes to our significant accounting policies except for changes resulting from the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No.

2016-13, Financial Instruments—Credit Losses (ASC Topic 326) as described in the “Marketable securities and credit losses” section below and in Note 3.

Marketable securities and credit losses

Our marketable securities consist of corporate bonds and money market funds.

Marketable securities are initially recognized at cost.

Marketable securities considered to be “purchased financial assets with credit deterioration” are initially recognized at cost, less any allowance for expected credit losses.

Unrealized holding gains and losses are reported in other comprehensive income, net of applicable taxes, until realized.

All marketable securities are carried on the balance sheet at fair value.

is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between

market participants at the measurement date.

We use a three-level fair value hierarchy in estimating and reporting fair values

of our marketable securities:

1 – Securities whose fair values are determined using quoted prices in active markets for identical securities.

2 – Securities whose fair values are determined using quoted prices for similar securities in active markets or quoted prices

for identical securities in markets that are not active.

3 – Securities whose fair values are determined using unobservable inputs.

bonds with remaining maturities of less than one year are classified as short-term and those with remaining maturities of one

year or more are classified as long-term.

We consider all highly liquid investments with maturities of three months or less when

purchased, including money market funds, to be cash equivalents.

measure credit losses on our marketable securities at the individual security level, using the present value of expected cash

flows method.

Credit losses are measured as the amount by which the amortized cost basis of the security exceeds the present value

of expected cash flows (discounted at the effective interest rate implicit in the security at the date of acquisition), limited

by the amount by which the fair value of the security is less than its amortized cost basis.

When estimating expected cash flows,

we consider available information relating to past events, current conditions, and reasonable and supportable forecasts such as,

past incidences of default, credit quality as reported by credit rating agencies, extent of impairment, length of time the security

has been in a continuous unrealized loss position, and adverse conditions forecasted by industry, financial and economic experts

that are relevant to the collectability of expected cash flows.

We do not include accrued interest receivables in amortized cost

and in fair value when measuring expected credit losses.

We will write off uncollectible accrued interest receivable to net income

in a timely manner, by reversing interest income, and therefore do not measure credit losses for accrued interest receivable.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

We use a three-level fair value hierarchy in estimating and reporting fair values of our marketable securities:

Level 1 – Securities whose fair values are determined using quoted prices in active markets for identical securities.

Level 2 – Securities whose fair values are determined using quoted prices for similar securities in active markets or quoted prices for identical securities in markets that are not active.

Level 3 – Securities whose fair values are determined using unobservable inputs.

Corporate bonds with remaining maturities of less than one year are classified as short-term and those with remaining maturities of one year or more are classified as long-term.

We consider all highly liquid investments with maturities of three months or less when purchased, including money market funds, to be cash equivalents.

We measure credit losses on our marketable securities at the individual security level, using the present value of expected cash flows method.

Credit losses are measured as the amount by which the amortized cost basis of the security exceeds the present value of expected cash flows (discounted at the effective interest rate implicit in the security at the date of acquisition), limited by the amount by which the fair value of the security is less than its amortized cost basis.

When estimating expected cash flows, we consider available information relating to past events, current conditions, and reasonable and supportable forecasts such as, past incidences of default, credit quality as reported by credit rating agencies, extent of impairment, length of time the security has been in a continuous unrealized loss position, and adverse conditions forecasted by industry, financial and economic experts that are relevant to the collectability of expected cash flows.

We do not include accrued interest receivables in amortized cost and in fair value when measuring expected credit losses.

We will write off uncollectible accrued interest receivable to net income in a timely manner, by reversing interest income, and therefore do not measure credit losses for accrued interest receivable.

Timely manner means one year from the date the accrued interest receivable becomes past due.

Accrued interest receivables are

included in the balance sheet in “prepaid expenses and other assets.”

Receivable and Allowance for Credit Losses

grant credit to customers in the normal course of business and at times require customers to pay for orders before shipment.

receivable are presented on the balance sheet net of any allowance for credit losses.

We measure credit losses on our trade accounts

receivable on a pool basis, and in some cases, on an individual basis, using the loss-rate method.

Accounts receivable are pooled

based on geographical locations because we believe accounts originating from the same geographical location share risk characteristics.

When estimating expected credit losses on our trade accounts receivable, we consider available information relating to past events,

current conditions, and reasonable and supportable forecasts such as historical loss rate, current age and remaining term of the

receivable relative to our current days sales outstanding (“DSO”) ratio, pending orders of the customer relative to

accounts receivable balance as of the reporting date and amounts paid by the customers subsequent to the reporting period end

but before the financial statements are issued.

Accrued interest receivables are included in the balance sheet in “prepaid expenses and other assets.”

Accounts Receivable and Allowance for Credit Losses

We grant credit to customers in the normal course of business and at times require customers to pay for orders before shipment.

Accounts receivable are presented on the balance sheet net of any allowance for credit losses.

We measure credit losses on our trade accounts receivable on a pool basis, and in some cases, on an individual basis, using the loss-rate method.

Accounts receivable are pooled based on geographical locations because we believe accounts originating from the same geographical location share risk characteristics.

When estimating expected credit losses on our trade accounts receivable, we consider available information relating to past events, current conditions, and reasonable and supportable forecasts such as historical loss rate, current age and remaining term of the receivable relative to our current days sales outstanding ratio, pending orders of the customer relative to accounts receivable balance as of the reporting date and amounts paid by the customers subsequent to the reporting period end but before the financial statements are issued.

RECENTLY ISSUED ACCOUNTING STANDARDS

Recently Adopted Accounting Standard

June 2016, the FASB issued ASU No.

2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses

on Financial Statements .

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

In June 2016, the FASB issued ASU No.

2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements .

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

Instruments-Credit 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

2019-10, Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815),

and Leases (Topic 842):

2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit 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.

2019-10, Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842):

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

2020-02, Financial Instruments — Credit

Losses (Topic 326) and Leases (Topic 842):

Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin

2020-02, Financial Instruments — Credit Losses (Topic 326) and Leases (Topic 842):

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

119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No.

2016-02, Leases

(Topic 842) , both of which delay the effective date of ASU 2016-13 by three years for certain Smaller Reporting

Companies such as us.

2016-02, Leases (Topic 842) , both of which delay the effective date of ASU 2016-13 by three years for certain Smaller Reporting Companies such as us.

In March 2020, the FASB issued ASU No.

3 unchanged sentences

2016-13 beginning with the quarter ended June 30, 2023.

adoption resulted in disclosure changes and required us to consider the likelihood of default and to measure our allowance for

credit losses over the contractual term of our receivables.

The adoption did not have a material impact on the financial statements

as of September 30 or April 1, 2023.

The adoption resulted in disclosure changes and required us to consider the likelihood of default and to measure our allowance for credit losses over the contractual term of our receivables.

The adoption did not have a material impact on the financial statements as of December 31 or April 1, 2023.

New Accounting Standard Not Yet Adopted

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

ASU 2023-09 requires additional quantitative and qualitative income tax disclosures to enable financial statements users better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows.

For public business entities, ASU 2023-09 is effective for annual periods beginning after December 15, 2024, which will be fiscal 2026 for us.

We expect the adoption to result in disclosure changes only.

We do not expect the adoption of other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date to have a material impact on our financial statements when they are adopted.

NET INCOME PER SHARE

income per basic share is computed based on the weighted-average number of common shares issued and outstanding during each period.

Net income per basic share is computed based on the weighted-average number of common shares issued and outstanding during each period.

Net income per diluted share amounts assume exercise of all stock options.

The following tables show the components of diluted

Schedule of Earnings Per Share, Basic and Diluted

Quarter Ended September 30,

The following tables show the components of diluted shares:

Quarter Ended December 31,

Weighted average common shares outstanding – basic

1 unchanged sentence

Shares used in computing net income per share – diluted

Six Months Ended September 30,

Nine Months Ended December 31,

Weighted average common shares outstanding – basic

2 unchanged sentences

MARKETABLE SECURITIES

following table shows the major categories of our marketable securities and their contractual maturities as of September 30,

Contractual maturities of marketable securities

The following table shows the major categories of our marketable securities and their contractual maturities as of December 31, 2023:

Money market funds

Corporate bonds

marketable securities represent approximately 79% of our total assets as of September 30, 2023.

Marketable securities as

of September 30, 2023, had remaining maturities between one and 67 months.

market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included on the

balance sheets in “Marketable securities, short term” and “Marketable securities, long term.” Accrued

interest receivables were $ 436,932 as of September 30, 2023, and $ 425,372 as of March 31, 2023, and are included in

the balance sheets in “Prepaid expenses and other assets.”

monitor the credit ratings of our marketable securities at least quarterly as reported by Standard & Poor’s.

The following

table summarizes the fair values of our marketable securities as of September 30, 2023, aggregated by credit rating:

Fair values of our marketable securities aggregated by credit rating

Total marketable securities represent approximately 80% of our total assets as of December 31, 2023.

Marketable securities as of December 31, 2023, had remaining maturities between one day and 64 months.

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included on the balance sheets in “Marketable securities, short term” and “Marketable securities, long term.” Accrued interest receivables were $ 366,452 as of December 31, 2023, and $ 425,372 as of March 31, 2023, and are included in the balance sheets in “Prepaid expenses and other assets.”

We monitor the credit ratings of our marketable securities at least quarterly as reported by Standard & Poor’s.

The following table summarizes the fair values of our marketable securities as of December 31, 2023, aggregated by credit rating:

Credit Rating

following table shows the estimated fair value of our marketable securities, aggregated by fair value hierarchy inputs used in

estimating their fair values:

As of September 30, 2023

The following table shows the estimated fair value of our marketable securities, aggregated by fair value hierarchy inputs used in estimating their fair values:

As of December 31, 2023

As of March 31, 2023

1 unchanged sentence

Corporate bonds

following table shows the amortized cost, fair value, and gross unrealized holding gains and losses of our marketable securities

as of September 30 and March 31, 2023:

As of September 30, 2023

The following table shows the amortized cost, fair value, and gross unrealized holding gains and losses of our marketable securities as of December 31 and March 31, 2023:

As of December 31, 2023

As of March 31, 2023

1 unchanged sentence

Corporate bonds

( 1,922,872 )

( 1,554,846 )

$ ( 1,922,872 )

$ ( 1,554,846 )

following table shows the gross unrealized holding losses and estimated fair value of our marketable securities for which an allowance

for credit losses has not been recorded, aggregated by category of securities and length of time that individual securities had

been in a continuous unrealized loss position as of September 30 and March 31, 2023.

Gross unrealized holding losses and estimated fair value of marketable securities for which an allowance for credit losses has not been

The following table shows the gross unrealized holding losses and estimated fair value of our marketable securities for which an allowance for credit losses has not been recorded, aggregated by category of securities and length of time that individual securities had been in a continuous unrealized loss position as of December 31 and March 31, 2023.

Less Than 12 Months

12 Months or Greater

As of September 30, 2023

As of December 31, 2023

Corporate bonds

$ ( 1,836,004 )

$ ( 1,922,872 )

$ ( 1,836,004 )

$ ( 1,922,872 )

As of March 31, 2023

Corporate bonds

$ ( 590,967 )

$ ( 963,879 )

$ ( 1,554,846 )

$ ( 590,967 )

$ ( 963,879 )

$ ( 1,554,846 )

of the securities were impaired at acquisition, and subsequent declines in fair value are attributable to interest rate increases.

We do not intend to sell, and it is not more likely than not that we will be required to sell, these securities before recovery

of their amortized cost basis.

None of the securities were impaired at acquisition, and subsequent declines in fair value are attributable to interest rate increases.

We do not intend to sell, and it is not more likely than not that we will be required to sell, these securities before recovery of their amortized cost basis.

The issuers continue to make timely interest payments on these securities.

Because we believe it

is more likely than not we will recover the cost basis of our investments, we did not record any impairment attributable to credit

of the marketable securities purchased during the period had experienced more-than-insignificant deterioration in credit quality

since its origination and were therefore not considered “Purchased Financial Assets with Credit Deterioration.”

losses on our marketable securities and their tax effects are as follows:

Quarter Ended September 30,

Unrealized loss from marketable securities

$ ( 252,894 )

Unrealized loss from marketable securities, net of tax

$ ( 197,561 )

Six Months Ended September 30,

Because we believe it is more likely than not we will recover the cost basis of our investments, we did not record any impairment attributable to credit losses.

None of the marketable securities purchased during the period had experienced more-than-insignificant deterioration in credit quality since its origination and were therefore not considered “Purchased Financial Assets with Credit Deterioration.”

Unrealized losses on our marketable securities and their tax effects are as follows:

Quarter Ended December 31,

Unrealized gain from marketable securities

Unrealized gain on marketable securities, net of tax

Nine Months Ended December 31,

Unrealized loss from marketable securities

$ ( 369,034 )

$ ( 1,876,491 )

Unrealized loss from marketable securities, net of tax

$ ( 288,289 )

$ ( 1,465,915 )

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

ALLOWANCE FOR CREDIT LOSSES ON ACCOUNTS RECEIVABLES

following table shows a roll forward of the allowance for credit losses on our accounts receivable:

The following table shows a roll forward of the allowance for credit losses on our accounts receivable:

Allowance for credit losses as of March 31, 2023

Provision for credit losses recorded in the quarter ended June 30, 2023

Change in provision for credit losses in the quarter ended September 30, 2023

Provision for credit losses

Change in provision for credit losses

Specific accounts deemed uncollectible

Allowance for credit losses as of September 30, 2023

are shown in the following table:

September 30,

Allowance for credit losses as of December 31, 2023

Inventories are shown in the following table:

March 31, 2023

4 unchanged sentences

STOCK-BASED COMPENSATION

compensation expense was $ 106,312 for the second quarter of fiscal 2024, $ 39,951 for the second quarter of fiscal 2023, $ 116,848

for the first six months of fiscal 2024, and $ 47,085 for the first six months of fiscal 2023.

We calculate share-based compensation

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

income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial

reporting purposes and the amounts used for income tax purposes.

As of September 30, 2023, federal and state estimated tax

overpayments of $ 408,184 were included in the balance sheet in “Prepaid expenses and other assets.”

had no unrecognized tax benefits as of September 30, 2023, and we do not expect any significant unrecognized tax benefits

within 12 months of the reporting date.

Stock-based compensation expense was $ 12,544 for the third quarter of fiscal 2024, $ 7,133 for the third quarter of fiscal 2023, $ 129,392 for the first nine months of fiscal 2024, and $ 54,218 for the first nine months of fiscal 2023.

We calculate share-based compensation expense using the Black-Scholes-Merton standard option-pricing model .

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

As of December 31, 2023, federal and state estimated tax overpayments of $ 90,387 were included in the balance sheet in “Prepaid expenses and other assets.”

We had no unrecognized tax benefits as of December 31, 2023, and we do no t expect any significant unrecognized tax benefits within 12 months of the reporting date.

We recognize interest and penalties related to income tax matters in income tax expense.

As of September 30, 2023, we had no accrued interest related to uncertain tax positions.

The tax years 2019 through 2023

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

conduct our operations in a leased facility under a non-cancellable lease expiring March 31, 2026.

Our lease does not provide

an implicit interest 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.

As of December 31, 2023, we had no accrued interest related to uncertain tax positions.

The tax years 2019 through 2023 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 interest 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.

Details of our operating lease are as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

Operating lease cost

4 unchanged sentences

Discount rate

following table shows the maturities of lease liabilities as of September 30, 2023:

Lessee, Operating Lease, Liability, Maturity

The following table shows the maturities of lease liabilities as of December 31, 2023:

Year Ending March 31,

4 unchanged sentences

STOCK REPURCHASE PROGRAM

January 21, 2009, we announced that our Board of Directors authorized the repurchase of up to $ 2,500,000 of our Common Stock

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

The timing and extent of any repurchases depend

on market conditions, the trading price of the company’s 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.

On January 21, 2009, we announced that our Board of Directors authorized the repurchase of up to $ 2,500,000 of our Common Stock from time to time in open market, block, or privately negotiated transactions.

The timing and extent of any repurchases depend on market conditions, the trading price of the company’s 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 maturing marketable securities.

The remaining authorization was $ 3,520,369 as of

September 30, 2023.

We did not repurchase any of our Common Stock during fiscal 2024.

We intend to finance any stock repurchases with cash provided by operating activities or maturing marketable securities.

The remaining authorization was $ 3,520,369 as of December 31, 2023.

We have no t repurchased any of our Common Stock during fiscal 2024.

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

of our employees are eligible to participate in our 401(k) savings plan the first quarter after reaching age 18.

Employees may

contribute up to the Internal Revenue Code maximum.

We make matching contributions of 100 % of the first 3 % of participants’

salary deferral contributions.

Our matching contributions were $ 24,406 f or the second quarter

of fiscal 2024, $ 23,751 for the second quarter of fiscal 2023, $ 51,483 for the first six months

of fiscal 2024, and $ 52,177 for the first six months of fiscal 2023.

All of our employees are eligible to participate in our 401(k) savings plan the first quarter after reaching age 18.

Employees may contribute up to the Internal Revenue Code maximum.

We make matching contributions of 100 % of the first 3 % of participants’ salary deferral contributions.

Our matching contributions were $ 27,904 for the third quarter of fiscal 2024, $ 21,484 for the third quarter of fiscal 2023, $79,388 for the first nine months of fiscal 2024 , and $ 73,661 for the first nine months of fiscal 2023.

SUBSEQUENT EVENTS

October 18, 2023 , we announced that our Board of Directors had declared a quarterly cash dividend of $ 1.00 per share of Common

Stock to be paid November 30, 2023 , to shareholders of record as of the close of business October 30, 2023 .

On January 17, 2024 , we announced that our Board of Directors had declared a quarterly cash dividend of $ 1.00 per share of Common Stock to be paid February 28, 2024 , to shareholders of record as of the close of business January 29, 2024 .

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