What changed in this filing

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Item 1. Business

2024-05-01 compared with 2023-05-03 · 67 added, 14 removed, 140 unchanged (37% of the section changed)

15 unchanged sentences

In that sense, our technology can provide the eyes, nerves, and brains of electronic systems.

Magnetic sensors can be used for a number of purposes including detecting the position or speed of robotics and mechanisms, or for communicating with implantable medical devices.

Magnetic sensors can be used for many purposes including detecting the position or speed of robotics and mechanisms, or for communicating with implantable medical devices.

We believe our spintronic sensors are smaller, more precise, and more reliable than competing devices.

62 unchanged sentences

We believe having our own U.S.

wafer production and test capabilities are an advantage over competitors that outsource such operations.

wafer production and test capabilities is an advantage over competitors that outsource such operations.

We significantly increased our product testing capacity in the two most recent fiscal years in response to increased demand for our products.

6 unchanged sentences

New Product Status

In the past year, we began marketing a number of new and improved products, including:

additional ultraminiature isolated DC-to-DC convertor models;

an ultraminiature TMR magnetic sensor;

an ultrahigh-sensitivity TMR magnetic sensor;

In the past year, we began marketing several new and improved products, including:

· more products combining data couplers with isolated DC-to-DC convertors to transmit power as well as data;

Long-term product development programs in fiscal 2023 focused on even higher sensitivity TMR sensors and Magnetoresistive Random Access Memory (MRAM) for antitamper applications.

· ultra-high isolation data couplers;

· extended temperature isolated network transceivers

· new MRAM products for antitamper applications;

· new product evaluation boards.

Long-term product development programs in fiscal 2024 included:

· extremely sensitive TMR sensors;

· next-generation sensors for hearing aids and implanted medical devices;

· wafer-level chip-scale devices;

· next-generation MRAM for antitamper applications.

Our Competition

18 unchanged sentences

Our principal sources of raw materials include suppliers of raw silicon and semiconductor foundry wafers that are incorporated into our products, and suppliers of device packaging services.

Our wafers sources are based around the world;

Our wafer sources are based around the world;

most of our packaging services take place in Asia.

2 unchanged sentences

patents assigned to us.

We also have a number of foreign patents, a number of U.S.

We also have a number of foreign patents, several U.S.

and foreign patents pending, and we have licensed patents from others.

8 unchanged sentences

Dependence on Major Customers

We rely on several large customers for a significant percentage of our revenue, including Abbott Laboratories, Sonova AG, certain other medical device manufacturers, and certain distributors.

We rely on several large customers for a significant percentage of our revenue, including Abbott Laboratories, Sonova AG, certain distributors, and certain other customers.

The loss of one or more of these customers could have a material adverse effect on us.

Government Regulations

We are subject to government regulations including, but not limited to, regulations related to environmental matters, tax matters, securities, conflict minerals, ethics and foreign corrupt practices, import and export controls, product safety and liability, workplace health and safety, labor and employment, and data privacy.

We are subject to government regulations including, but not limited to, regulations related to environmental matters, tax matters, securities regulations, conflict minerals, ethics and foreign corrupt practices, import and export controls, product safety and liability, workplace health and safety, labor and employment, and data privacy.

We incur and expect to continue to incur costs and expenses to comply with these regulations and may incur penalties for any failure to do so.

6 unchanged sentences

Human Capital Resources

Employee Headcount

We had 54 employees as of March 31, 2024, 46 of whom were full-time.

We had no contingent workers.

Workforce Demographics

We assessed our demographics using the data collection procedures for U.S.

Equal Employment Opportunity Commission form EEO-1.

Specifically, we conducted a voluntary survey for self-identification and supplemented those data with personnel data and observer identification.

Minnesota data are from U.S.

Census Bureau data for the latest quarter available.

Gender Demographics

The gender demographics of our workforce compared to those of all Minnesota workers were as follows as of March 31, 2024:

As is the case with many technology companies, female employees are underrepresented in our workforce, particularly in engineer and technician jobs.

We provide opportunities for equipment operators (a job where female employees are well represented) to advance to technician and engineer positions, including internal equipment training, tuition reimbursement, and scheduling flexibility to attend classes.

Employee Racial Diversity

Our workforce demographics by race as of March 31, 2024, were as follows:

African American or Black

American Indian or Alaska Native

White or Caucasian

Black or African American and Asian employees are overrepresented in our workforce.

We believe this is because we are close to immigrant population clusters, have a multilingual workforce, provide equal pay, and equal opportunity for advancement, and have a culture of acceptance.

Educational Demographics

We have a highly educated workforce.

Thirty-nine percent of our employees have bachelor’s or advanced degrees compared to 26% of all Minnesota workers.

Employee Diversity, Equity, Inclusion, and Accessibility

Our goal is to promote diversity, equity, inclusion, and accessibility in our recruitment of directors, managers, and other employees.

We have policies to prevent discrimination based on gender, race, disability, ethnicity, nationality, religion, sexual orientation, gender identity, or gender expression.

1 unchanged sentence

We also take affirmative action to employ and advance veterans in employment.

We offer employees excellent fringe benefits, including medical insurance coverage paid for mostly by the Company, dental insurance, Company-paid life and accidental death and dismemberment insurance, Company-paid long-term disability insurance, free wellness programs, Company-funded Health Savings Accounts, generous 401(k) matches, ample holidays and Paid Time Off, tuition reimbursement, and free coffee.

In the past fiscal year, we significantly increased average pay and fringe benefit expenditures to attract, retain, and motivate top-performing employees.

None of our employees are represented by a labor union or are subject to a collective bargaining agreement, and we believe we maintain good relations with our employees.

We have a number of initiatives to maintain and increase our diversity.

For example, we participate in Dunwoody College of Technology’s Pathways to Careers (P2C) program and the Minnesota Technology Association’s SciTech internship program as a qualified employer.

P2C is focused on preparing underserved and underrepresented individuals for college success and immediate jobs.

The SciTech internship program has an objective of increasing the participation of women and students of color in science, technology, engineering, and mathematics.

Women and Families

We have family-friendly policies and fully comply with the Minnesota Women’s Economic Security Act (WESA) by providing reasonable accommodations to employees for health conditions related to pregnancy or childbirth and up to 12 weeks of pregnancy and parental leave.

Additionally, Minnesota’s paid family and medical leave law, which provides paid time off during or following a pregnancy, goes into effect on January 1, 2026.

NVE is committed to the timely implementation of such paid leave.

Executive Diversity

We have three Named Executive Officers .

All are male;

one is racially diverse.

Board of Directors Diversity

We meet and are committed to continuing to meet the board diversity goals of NASDAQ Listing Rule 5605(f)(1), including at least two Diverse directors by December 31, 2026.

Additionally, we plan to nominate an ethnically diverse director in the Proxy Statement for our 2024 Annual Meeting of Shareholders.

An ethnically diverse director would meet the racial/ethnic diversity recommendations of Institutional Shareholder Services for Russell 3000 companies.

Employee Benefits

We offer employees excellent fringe benefits, including medical insurance coverage paid for mostly by the Company, dental insurance, Company-paid life and accidental death and dismemberment insurance, Company-paid long-term disability insurance, generous 401(k) matches, Company-funded Health Savings Accounts, Dependent Care Flexible Spending Accounts, ample holidays and Paid Time Off, tuition reimbursement, and free coffee.

Employee Health and Safety

NVE is committed to providing a safe and healthy work environment.

We offer employees a variety of health and fitness resources in conjunction with our medical insurance.

Employee Development and Training

NVE provides paid training including paid on-the-job training, specialized online training, 100% tuition reimbursement, and paid internships.

We are committed to hiring and promoting employees based on their acquired skills.

Employee Relations

None of our employees are represented by a labor union or are subject to a collective bargaining agreement.

Based on periodic employee surveys, we believe we have good relations with our employees.

Available Information

2 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-K

Item 1. Business