What changed in this filing

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Item 1. Financial Statements

2026-10-21 compared with 2026-07-22 · 89 added, 38 removed, 207 unchanged (38% of the section changed)

2 unchanged sentences

BALANCE SHEETS

June 30, 2026

March 31, 2026

23 unchanged sentences

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

4,837,166 issued and outstanding as of June 30, 2026 and March 31, 2026

4,844,079 issued and outstanding as of September 30, 2026 and 4,837,166 as of March 31, 2026

Additional paid-in capital

Accumulated other comprehensive income (loss)

Accumulated other comprehensive loss

Retained earnings

5 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,

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

Quarter Ended September 30,

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

Comprehensive income

1 unchanged sentence

NVE CORPORATION

STATEMENTS OF INCOME

Six Months Ended September 30,

Product sales

Contract research and development

Total revenue, net

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 September 30,

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

Comprehensive income

See accompanying notes.

NVE CORPORATION

STATEMENTS OF SHAREHOLDERS ’ EQUITY

8 unchanged sentences

Balance as of June 30, 2026

Exercise of stock options

Comprehensive income:

Unrealized loss on marketable securities, net of tax

Total comprehensive income

Stock-based compensation

Cash dividends ($ 1.00 per share of common stock)

Balance as of September 30, 2026

*Balances as of March 31, 2026 are derived from the audited financial statements contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026.

11 unchanged sentences

Balance as of June 30, 2025

Comprehensive income:

Unrealized gain on marketable securities, net of tax

Total comprehensive income

Stock-based compensation

Cash dividends ($ 1.00 per share of common stock)

Balance as of September 30, 2025

*Balances as of March 31, 2025 are derived from the audited financial statements contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

2 unchanged sentences

STATEMENTS OF CASH FLOWS

Quarter Ended June 30,

Six Months Ended September 30,

OPERATING ACTIVITIES

Adjustments to reconcile net income to net cash provided by operating activities:

Bond discount amortization

Bonds discount amortization

Stock-based compensation

13 unchanged sentences

FINANCING ACTIVITIES

Payments on exercise of stock options

Payment of dividends to shareholders

15 unchanged sentences

Although we believe that the disclosures are adequate to make the information presented not misleading, certain disclosures have been omitted as allowed, and the Notes to Financial Statements have been condensed as permitted.

It is suggested that these unaudited financial statements be read in conjunction with the audited financial statements and Notes included in our latest Annual Report on Form 10-K, which is for the fiscal year ended March 31, 2026.

The results of operations for the quarter ended June 30, 2026, are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2027.

Sales, expenses, cash flows, assets, and liabilities can and do vary throughout the year, therefore they are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2027 .

Significant Accounting Policies

A description of our significant accounting policies and estimates is provided in Note 2 to the Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026.

As of June 30, 2026, there were no changes to our significant accounting policies or estimates.

As of September 30, 2026, there were no changes to our significant accounting policies or estimates.

NEW ACCOUNTING STANDARDS

5 unchanged sentences

We adopted this practical expedient as permitted by ASU 2025-05.

ASU 2025-05 was effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods, which is fiscal 2027 for us.

Adoption of ASU 2025-05 did not have a material impact on our Financial Statements.

ASU 2025-05 was effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods, which was fiscal 2027 for us.

Adoption of ASU 2025-05 has not had a material impact on our Financial Statements.

New Accounting Standards Not Yet Adopted

12 unchanged sentences

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 in-the-money stock options.

The following table show the components of diluted shares:

Quarter Ended June 30,

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

The following tables show the components of diluted shares:

Quarter Ended September 30,

Weighted average common shares outstanding – basic

1 unchanged sentence

Shares used in computing net income per share – diluted

Six Months Ended September 30,

Weighted average common shares outstanding – basic

Dilutive effect of stock options

Shares used in computing net income per share – diluted

MARKETABLE SECURITIES

The following table shows the major categories of our marketable securities and their contractual maturities as of June 30, 2026:

The following table shows the major categories of our marketable securities and their contractual maturities as of September 30, 2026:

Money market funds

1 unchanged sentence

Corporate bonds

Total marketable securities and money market funds represented approximately 69% of our total assets as of June 30, 2026.

Marketable securities as of June 30, 2026, had remaining maturities between two and 56 months.

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included in “Marketable securities, short term” and “Marketable securities, long term.” Treasury securities are included in “Marketable securities, short-term.” Accrued interest receivables were $ 453,532 as of June 30, 2026, and $ 455,566 as of March 31, 2026, and are included in the balance sheets in “Prepaid expenses and other assets.”

Total marketable securities and money market funds represented approximately 74 % of our total assets as of September 30, 2026.

Marketable securities as of September 30, 2026, had remaining maturities between seven weeks and 53 months.

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included in “Marketable securities, short term” and “Marketable securities, long term.” Treasury securities are included in “Marketable securities, short-term.” Accrued interest receivables were $ 485,332 as of September 30, 2026, and $ 455,566 as of March 31, 2026, 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 shows the estimated fair value of our marketable securities, aggregated by fair value hierarchy inputs used in estimating their fair values:

As of June 30, 2026

As of September 30, 2026

As of March 31, 2026

2 unchanged sentences

Corporate bonds

Our available-for-sales securities as of June 30 and March 31, 2026, aggregated into classes of securities, were as follows:

As of June 30, 2026

Our available-for-sale securities as of September 30 and March 31, 2026, aggregated into classes of securities, were as follows:

As of September 30, 2026

As of March 31, 2026

2 unchanged sentences

Corporate bonds

The following table shows the gross unrealized holding losses and estimated fair value of our marketable securities, aggregated by category of securities and length of time that individual securities had been in a continuous unrealized loss position as of June 30 and March 31, 2026.

Less Than 12 Months

12 Months or Greater

As of June 30, 2026

As of September 30, 2026

Treasury Securities

Corporate bonds

5 unchanged sentences

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

Quarter Ended June 30,

Quarter Ended September 30,

Unrealized gain (loss) on marketable securities

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

Six Months Ended September 30,

Unrealized gain (loss) on marketable securities

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

Inventories are shown in the following table:

June 30, 2026

March 31, 2026

4 unchanged sentences

STOCK-BASED COMPENSATION

Stock-based compensation expense was $ 14,049 for the first quarter of fiscal 2027 and $ 6,838 for the first quarter of fiscal 2026.

Stock-based compensation expense was $ 246,931 for the second quarter of fiscal 2027 , $ 66,312 for the second quarter of fiscal 2026, $ 260,980 for the first six months of fiscal 2027, and $ 73,150 for the first six months of fiscal 2026.

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

Quarter Ended

Stock options granted

September 30,

Six Months Ended

September 30,

Stock options grant

Stock options exercised

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 June 30, 2026, federal and state estimated tax liabilities of $ 238,356 were included in the balance sheet in “Accrued payroll and other.”

We had no unrecognized tax benefits as of June 30, 2026, and we do no t expect any significant unrecognized tax benefits within 12 months of the reporting date.

As of September 30, 2026, federal and state estimated tax overpayments of $ 883,203 were included in the balance sheet in “Prepaid expenses and other assets.”

We had no unrecognized tax benefits as of September 30, 2026, and we do not 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 June 30, 2026, we had no accrued interest related to uncertain tax positions.

As of September 30, 2026, we had no accrued interest related to uncertain tax positions.

The tax years ended March 31, 2023 through March 31, 2026 remain open to examination by the major taxing jurisdictions to which we are subject.

The One Big Beautiful Tax law enacted on July 4, 2025 allows companies to exclude U.S.

research and development expenses from its Foreign-Derived Deduction Eligible Income (FDDEI) calculation for tax years beginning after December 31, 2025.

This resulted in a $466,000 increase in our FDDEI deduction and a $ 98,000 decrease in our income tax provision for the quarter ended September 30, 2026.

For the six months ended September 30, 2026, the more favorable tax treatment of FDDEI resulted in a $1,100,000 increase in our FDDEI deduction and a $ 224,000 decrease in our tax provision.

We conduct our operations in a leased facility under a non-cancellable lease expiring May 31, 2031 .

2 unchanged sentences

Details of our operating lease are as follows:

Quarter Ended

Quarter Ended Sept.

Six Months Ended Sept.

Operating lease cost

4 unchanged sentences

Discount rate

The following table shows the maturities of lease liabilities as of June 30, 2026:

The following table shows the maturities of lease liabilities as of September 30, 2026:

Year Ending March 31,

10 unchanged sentences

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 June 30, 2026.

We did no t repurchase any of our Common Stock during the first quarter of fiscal 2027.

The remaining authorization was $ 3,520,369 as of September 30, 2026.

We did not repurchase any of our Common Stock in the first six months of fiscal 2027.

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

2 unchanged sentences

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

Our matching contributions were $ 28,078 for the first quarter of fiscal 2027 and $ 28,834 for the first quarter of fiscal 2026.

Our matching contributions were $ 20,818 for the second quarter of fiscal 2027, $ 23,742 for the second quarter of fiscal 2026, $ 48,896 for the first six months of fiscal 2027, and $ 52,575 for the first six months of fiscal 2026.

SUBSEQUENT EVENTS

On July 22, 2026 , we announced that our Board of Directors had declared a quarterly cash dividend of $ 1.00 per share of Common Stock to be paid August 31, 2026 , to shareholders of record as of the close of business August 3, 2026 .

On October 21, 2026 , 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, 2026 , to shareholders of record as of the close of business on November 2, 2026 .

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