NVE CORP /NEW/ 10-Q

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, 2021, except the following risk factor is replaced in its entirety by the following to reflect new COVID-19 related restrictions on certain 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. Lead times for packaging services have increased during the COVID-19 pandemic and there have been shortages of raw materials and equipment our packaging vendors need for their process. One of our packaging vendors, located in India was forced to suspend its factory operations in 2020 due to government-imposed restrictions and is still not fully operational. Another packaging vendor, located in Malaysia, has been subject to strict government lockdown restrictions since June 1, 2021. Our packaging vendors could face further restrictions in the future. 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.   15 Table of Contents   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 Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)     101.SCH      Inline XBRL Taxonomy Extension Schema Document     101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document     101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document     101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document     101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document     104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)   16 Table of Contents   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)     July 21, 2021 /s/ DANIEL A. BAKER   Date Daniel A. Baker   President and Chief Executive Officer     July 21, 2021 /s/ CURT A. REYNDERS   Date Curt A. Reynders   Chief Financial Officer   17