UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended   June 30, 2020
or
[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                                   to                                    

Commission File Number: 000-12196
 
NVE Logo
NVE CORPORATION
(Exact name of registrant as specified in its charter)
 
Minnesota 41-1424202
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
 
11409 Valley View Road, Eden Prairie, Minnesota   55344
(Address of principal executive offices)   (Zip Code)
 
 (952) 829-9217 
(Registrant’s telephone number, including area code)
 
     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
[X] Yes  [   ] No

     Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
[X] Yes  [   ] No

     Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
      Large accelerated filer [   ]
Accelerated filer [   ]
Non-accelerated filer [X]
Smaller reporting company [X]
  Emerging growth company [   ]  
 
     If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]
 
     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     [   ] Yes  [X] No

     Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value NVEC The NASDAQ Stock Market, LLC
 
     Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Common Stock, $0.01 Par Value – 4,835,038 shares outstanding as of July 17, 2020
 

 
NVE CORPORATION
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

     Item 1. Financial Statements

          Balance Sheets

          Statements of Income for the Quarters Ended June 30, 2020 and 2019

          Statements of Comprehensive Income for the Quarters Ended June 30, 2020 and 2019

          Statements of Shareholders’ Equity for the Period Ended June 30, 2020

          Statements of Shareholders’ Equity for the Period Ended June 30, 2019

          Statements of Cash Flows

          Notes to Financial Statements

     Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

     Item 4. Controls and Procedures

PART II. OTHER INFORMATION

     Item 1. Legal Proceedings

     Item 1A. Risk Factors

     Item 4. Mine Safety Disclosures

     Item 6. Exhibits

SIGNATURES


2

Table of Contents

PART I–FINANCIAL INFORMATION


Item 1. Financial Statements.
NVE CORPORATION
BALANCE SHEETS

 
(Unaudited)
June 30, 2020
March 31, 2020*
ASSETS
Current assets
Cash and cash equivalents
$ 6,402,983     $ 8,065,594
Marketable securities, short-term
  19,179,495       19,084,814
Accounts receivable, net of allowance for uncollectible accounts of $15,000
  2,297,850       2,694,018
Inventories
  3,943,738       3,884,450
Prepaid expenses and other assets
718,122     655,835  
Total current assets   32,542,188     34,384,711  
Fixed assets
Machinery and equipment 
  9,280,062     9,280,062
Leasehold improvements
1,797,245     1,797,245  
  11,077,307       11,077,307
Less accumulated depreciation and amortization 
10,571,515     10,494,840  
Net fixed assets   505,792       582,467
Deferred tax assets -   108,119  
Marketable securities, long-term 45,049,578   43,606,495
Right-of-use asset – operating lease 784,774     816,358  
Total assets $ 78,882,332     $ 79,498,150  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable
$ 180,338     $ 186,993
Accrued payroll and other
492,243     482,074
Income taxes payable
406,326     -
Operating lease
120,429     127,134
Total current liabilities   1,199,336       796,201
Deferred tax liabilities   189,523   -
Operating lease 675,928     706,600  
Total liabilities 2,064,787 1,502,801
 
Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,835,038 issued
and outstanding as of June 30, 2020 and March 31, 2020
  48,350 48,350
Additional paid-in capital
  19,386,663 19,383,956
Accumulated other comprehensive income
  1,759,185   516,523  
Retained earnings
55,623,347   58,046,520  
Total shareholders’ equity 76,817,545   77,995,349  
Total liabilities and shareholders’ equity $ 78,882,332   $ 79,498,150  

*The March 31, 2020 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, 2020.

 
See accompanying notes.

 
3

Table of Contents

NVE CORPORATION
STATEMENTS OF INCOME
(Unaudited
)

Quarter Ended June 30
2020 2019
Revenue
Product sales
$ 4,358,635 $ 6,085,364  
Contract research and development
230,627   209,332  
Total revenue   4,589,262 6,294,696
Cost of sales 836,422   1,092,037  
Gross profit   3,752,840 5,202,659
Expenses
Research and development
  880,983 973,067
Selling, general, and administrative
355,011   330,009  
Total expenses 1,235,994   1,303,076  
Income from operations   2,516,846 3,899,583
Interest income 399,212   459,039  
Income before taxes   2,916,058 4,358,622
Provision for income taxes 504,193   751,203  
Net income $ $2,411,865     $ 3,607,419  
Net income per share – basic $ 0.50     $ 0.74  
Net income per share – diluted $ 0.50     $ 0.74  
Cash dividends declared per common share $ 1.00     $ 1.00  
Weighted average shares outstanding
Basic
4,835,038 4,846,010
Diluted
  4,835,157 4,850,388


STATEMENTS OF COMPREHENSIVE INCOME
     (Unaudited)

Quarter Ended June 30
2020 2019
Net income $ 2,411,865 $ 3,607,419
Unrealized gain from marketable securities, net of tax   1,242,662   570,063  
Comprehensive income $ 3,654,527   $ 4,177,482  
 
 
See accompanying notes.


4

Table of Contents

NVE CORPORATION
STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
 
 
 
 
Additional
Paid-In
Capital
    Accumulated
Other
Comprehen-
sive
Income
  Retained
Earnings
   
Common Stock
Shares   Amount Total
Balance as of March 31, 2020 4,835,038   $ 48,350   $ 19,383,956     $ 516,523     $ 58,046,520     $ 77,995,349  
Comprehensive income:
Unrealized gain on
marketable securities,
net of tax
                    1,242,662   1,242,662  
Net income
                            2,411,865       2,411,865  
Total comprehensive income
                                    3,654,527  
Stock-based compensation
            2,707                       2,707  
Cash dividends declared
($1.00 per share of
common stock)
                      (4,835,038 )   (4,835,038 )
Balance as of June 30, 2020 4,835,038 $ 48,350 $ 19,386,663 $ 1,759,185 $ 55,623,347 $ 76,817,545
 
 
See accompanying notes.


5

Table of Contents

NVE CORPORATION
STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
 
 
 
 
Additional
Paid-In
Capital
    Accumulated
Other
Comprehen-
sive (Loss)
Income
  Retained
Earnings
   
Common Stock
Shares   Amount Total
Balance as of March 31, 2019 4,846,010   $ 48,460   $ 19,910,558     $ (82,725 )   $ 62,903,918     $ 82,780,211  
Comprehensive income:
Unrealized gain on
marketable securities,
net of tax
                    570,063   570,063  
Net income
                            3,607,419       3,607,419  
Total comprehensive income
                                    4,177,482  
Cash dividends declared
($1.00 per share of
common stock)
                      (4,846,010 )   (4,846,010 )
Balance as of June 30, 2019 4,846,010   $ 48,460   $ 19,910,558     $ 487,338     $ 61,665,327     $ 82,111,683  
 
 
See accompanying notes.


6

Table of Contents

NVE CORPORATION
STATEMENTS OF CASH FLOWS
(Unaudited)
 
Quarter Ended June 30
2020 2019
OPERATING ACTIVITIES
Net income $ 2,411,865 $ 3,607,419
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization
  129,620   134,733
Stock-based compensation
  2,707     -
Deferred income taxes
  (50,405 )   (664 )
Changes in operating assets and liabilities:
Accounts receivable
  396,168     248,955
Inventories
(59,288 )   45,093  
Prepaid expenses and other assets
(30,703 )   205,399  
Accounts payable and other liabilities
  372,463     296,693  
Net cash provided by operating activities   3,172,427   4,537,628  
 
INVESTING ACTIVITIES
Purchases of fixed assets -     (16,100 )
Purchases of marketable securities   -     (3,013,530 )
Proceeds from maturities of marketable securities   -     9,500,000  
Cash provided by investing activities   -     6,470,370  
 
FINANCING ACTIVITIES
Payment of dividends to shareholders   (4,835,038 )   (4,846,010 )
Cash used in financing activities   (4,835,038 )   (4,846,010 )
 
(Decrease) increase in cash and cash equivalents (1,662,611 ) 6,161,988  
Cash and cash equivalents at beginning of period 8,065,594   6,877,304  
 
Cash and cash equivalents at end of period $ 6,402,983   $ 13,039,292  
 
Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes
$ -   $ -  
 
 
See accompanying notes.


7

Table of Contents

NVE CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

NOTE 1. DESCRIPTION OF BUSINESS
     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.

NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
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 financial statements included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020. The results of operations for the quarter ended June 30, 2020 are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2021.

Significant Accounting Policies
Revenue Recognition
    We recognize revenue when we satisfy performance obligations by the transfer of control of products or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. Revenue is disaggregated into product sales and contract research and development to depict the nature, amount, timing of revenue recognition and economic characteristics of our business, and is represented within the financial statements.

     We recognize revenue from product sales to customers and distributors when we satisfy our performance obligation, at a point in time, upon product shipment or delivery to our customer or distributor as determined by agreed upon shipping terms. Shipping charges billed to customers are included in product sales and the related shipping costs are included in cost of sales. Under certain limited circumstances, our distributors may earn commissions for activities unrelated to their purchases of our products, such as for facilitating the sale of custom products or research and development contracts with third parties. We recognize any such commissions as selling, general, and administrative expenses. We recognize discounts provided to our distributors as reductions in revenue.

     We recognize contract research and development revenue over a period of time as the performance obligation is satisfied over a period of time rather than a point in time. Contracts have specifications unique to each customer and do not create an asset with an alternate use, and we have an enforceable right to payment for performance completed to date. We recognize revenue over a period of time using costs incurred as the measurement of progress towards completion.

     Accounts receivable is recognized when we have transferred a good or service to a customer and our right to receive consideration is unconditional through the completion of our performance obligation. A contract asset is recognized when we have a right to consideration from the transfer of goods or services to a customer but have not completed our performance obligation. A contract liability is recognized when we have been paid by a customer but have not yet satisfied the performance obligation by transferring goods or services. We had no material contract assets or contract liabilities as of June 30, 2020 or March 31, 2020.
 
     Our performance obligations related to product sales and contract research and development contracts are satisfied in one year or less. Unsatisfied performance obligations represent contracts with an original expected duration of one year or less. As permitted under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, we are using the practical expedient not to disclose the value of these unsatisfied performance obligations. We also use the practical expedient in which we do not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less.
 
8

Table of Contents 
 

NOTE 3. RECENTLY ISSUED ACCOUNTING STANDARDS
New Accounting Standards Not Yet Adopted

     In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, which is fiscal 2022 for us, with early adoption permitted. We do not expect adoption of the new guidance to have a significant impact on our financial statements.

     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) measured at amortized cost basis 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 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 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. We were unaffected by the change in the effective date of the ASU related to Leases (Topic 842) because we have already adopted that ASU. In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments; which modifies the measurement of expected credit losses of certain financial instruments. In accordance with ASU 2019-10 and ASU 2020-02, ASU 2016-13 is effective for certain Smaller Reporting Companies for financial statements issued for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, which will be fiscal 2024 for us if we continue to be classified as a Smaller Reporting Company, with early adoption permitted. We do not expect adoption of the new guidance to have a significant impact on our financial statements.
 
NOTE 4. NET INCOME PER SHARE
 
     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 shares:
 
Quarter Ended June 30
2020 2019
Weighted average common shares outstanding – basic 4,835,038 4,846,010
Dilutive effect of stock options 119 4,378
Shares used in computing net income per share – diluted 4,835,157 4,850,388
 
9

Table of Contents 
 
NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS
     Our corporate bonds and money market funds are classified as available-for-sale securities and carried at estimated fair value. Unrealized holding gains and losses are included in accumulated other comprehensive income (loss) in the statement of shareholders’ equity. Corporate bonds with remaining maturities less than one year are classified as short-term, and those with remaining maturities greater than one year 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. Gains and losses on marketable security transactions are reported on the specific-identification method.

     Contractual maturities of available-for-sale securities as of June 30, 2020 are as follows:
 
Total <1 Year 1–3 Years 3–5 Years
$ 70,315,124   $ 25,265,545   $ 33,132,700   $ 11,916,879

     Total available-for-sale securities represented approximately 89% of our total assets. Marketable securities as of June 30, 2020 had remaining maturities between four and 44 months.
 
     Generally accepted accounting principles establish a framework for measuring fair value, provide a definition of fair value, and prescribe required disclosures about fair-value measurements. Generally accepted accounting principles define fair value as the price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Generally accepted accounting principles utilize a valuation hierarchy for disclosure of fair value measurements. The categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The categories within the valuation hierarchy are described as follows:
 
     Level 1 – Financial instruments with quoted prices in active markets for identical assets or liabilities.

     Level 2 – Financial instruments with quoted prices in active markets for similar assets or liabilities. Level 2 fair value measurements are determined using either prices for similar instruments or inputs that are either directly or indirectly observable, such as interest rates.

     Level 3 – Inputs to the fair value measurement are unobservable inputs or valuation techniques.

     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.”
 
     The following table shows the estimated fair value of assets that were accounted for at fair value on a recurring basis:
 
As of June 30, 2020 As of March 31, 2020
Level 1   Level 2   Total Level 1 Level 2 Total
Money market funds   $ 6,086,051    $ -    $ 6,086,051    $ 7,903,433    $ -    $ 7,903,433
Corporate bonds   -     64,229,073     64,229,073     -     62,691,309     62,691,309
Total $ 6,086,051   $ 64,229,073   $ 70,315,124   $ 7,903,433   $ 62,691,309   $ 70,594,742

     Our available-for-sale securities as of June 30 and March 31, 2020, aggregated into classes of securities, were as follows:

As of June 30, 2020 As of March 31, 2020

Amortized
Cost
  Gross
Unrealized
Holding Gains
  Gross
Unrealized
Holding Losses
  Estimated
Fair
Value

Amortized
Cost
Gross
Unrealized
Holding Gains
Gross
Unrealized
Holding Losses
Estimated
Fair
Value
Money market
   funds
$ 6,086,051    $ -    $ -      $ 6,086,051    $ 7,903,433    $ -    $ -      $ 7,903,433
Corporate bonds     61,977,175     2,251,898     -       64,229,073     62,030,120     752,621     (91,432 )     62,691,309
Total $ 68,063,226   $ 2,251,898   $ -     $ 70,315,124   $ 69,933,553   $ 752,621   $ (91,432 )   $ 70,594,742
 
10

Table of Contents

NOTE 6. INVENTORIES
     Inventories are shown in the following table:
June 30,
2020
March 31,
2020
Raw materials $ 907,618 $ 1,017,451
Work in process 2,026,032 1,863,000
Finished goods 1,010,088 1,003,999
Total inventories $ 3,943,738 $ 3,884,450
 
NOTE 7. STOCK-BASED COMPENSATION
     Stock-based compensation expense was $2,707 for the first quarter of fiscal 2021. There were no stock-based compensation expenses for the first quarter of fiscal 2020. We calculate the share-based compensation expense using the Black-Scholes standard option-pricing model.
 
NOTE 8. INCOME TAXES
     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.
 
     We had no unrecognized tax benefits as of June 30, 2020, 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, 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.
 
NOTE 9. LEASES
     We conduct our operations in a leased facility under a non-cancellable lease expiring March 31, 2026. Our lease does not provide an implicit 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. Variable lease costs consist primarily of common area maintenance and real estate taxes which are paid based on actual costs incurred by the lessor. Details of our operating lease are as follows:
 
Quarter Ended
June 30, 2020
Operating lease cost $ 38,641
Variable lease cost 30,608  
Total $ 69,249  
 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for leases
$ 44,433
Remaining lease term 69 months
Discount rate 3.5 %
 
      The following table presents the maturities of lease liabilities as of June 30, 2020:

Year Ending March 31 Operating Leases
2021 84,104  
2022 152,703  
2023 156,121  
2024 159,592  
2025 163,224  
2026 165,947  
Total lease payments 881,691  
Imputed lease interest (85,334 )
Total lease liabilities $ 796,357  
 
11

Table of Contents

NOTE 10. STOCK REPURCHASE PROGRAM
     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 depends 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 maturating marketable securities. The remaining authorization was $3,853,459 as of June 30, 2020. We did not repurchase any of our Common Stock during the first quarter of fiscal 2021.
 
NOTE 11. INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS
     All of our employees are eligible to participate in our 401(k) savings plan the first quarter after reaching age 21. 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 $25,381 for the first quarter of fiscal 2021 and $24,066 for the first quarter of fiscal 2020.

NOTE 12. SUBSEQUENT EVENTS
     On July 22, 2020 we announced that our Board had declared a quarterly cash dividend of $1.00 per share of Common Stock to be paid August 31, 2020 to shareholders of record as of the close of business August 3, 2020.
 
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Forward-looking statements

     Some of the statements made in this Report or in the documents incorporated by reference in this Report and in other materials filed or to be filed by us with the Securities and Exchange Commission (“SEC”) as well as information included in verbal or written statements made by us constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to the safe harbor provisions of the reform act. Forward-looking statements may be identified by the use of the terminology such as may, will, expect, anticipate, intend, believe, estimate, should, or continue, or the negatives of these terms or other variations on these words or comparable terminology. To the extent that this Report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of NVE, you should be aware that our actual financial condition, operating results and business performance may differ materially from that projected or estimated by us in the forward-looking statements. We have attempted to identify, in context, some of the factors that we currently believe may cause actual future experience and results to differ from their current expectations. These differences may be caused by a variety of factors, including but not limited to risks related to our reliance on several large customers for a significant percentage of revenue, uncertainties related to the economic environments in the industries we serve, uncertainties related to future sales and revenues, risks related to the COVID-19 pandemic, risks and uncertainties related to future stock repurchases and dividend payments, and other specific risks that may be alluded to in this Report or in the documents incorporated by reference in this Report.

     Further information regarding our risks and uncertainties are contained in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended March 31, 2020.
 
General
     NVE Corporation, referred to as NVE, we, us, or our, develops and sells devices that use spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store and transmit information. We manufacture high-performance spintronic products including sensors and couplers that are used to acquire and transmit data.
 
Critical accounting policies
     A description of our critical accounting policies is provided in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended March 31, 2020. As of June 30, 2020 our critical accounting policies and estimates continued to include investment valuation, inventory valuation, and deferred tax assets estimation.
 
12

Table of Contents

Quarter ended June 30, 2020 compared to quarter ended June 30, 2019
     The table shown below summarizes the percentage of revenue and quarter-to-quarter changes for various items:

Percentage of Revenue
Quarter Ended June 30
Quarter-
to-Quarter
Change
2020 2019
Revenue
Product sales
95.0 % 96.7 % (28.4 )%
Contract research and development
5.0 % 3.3 % 10.2 %
Total revenue 100.0 % 100.0 % (27.1 )%
Cost of sales 18.2 % 17.3 % (23.4 )%
Gross profit 81.8 % 82.7 % (27.9 )%
Expenses
Research and development
19.2 % 15.5 % (9.5 )%
Selling, general, and administrative
7.7 % 5.2 % 7.6 %
Total expenses 26.9 % 20.7 % (5.1 )%
Income from operations 54.9 % 62.0 % (35.5 )%
Interest income 8.7 % 7.2 % (13.0 )%
Income before taxes 63.6 % 69.2 % (33.1 )%
Provision for income taxes 11.0 % 11.9 % (32.9 )%
Net income 52.6 % 57.3 % (33.1 )%
 
     Total revenue for the quarter ended June 30, 2020 (the first quarter of fiscal 2021) decreased 27% compared to the quarter ended June 30, 2019 (the first quarter of fiscal 2020). The decrease was due to a 28% decrease in product sales partially offset by a 10% increase 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. The increase in contract research and development revenue the first quarter of fiscal 2021 was due to the timing of progress towards contract completion.

     Total expenses decreased 5% in the first quarter of fiscal 2021 compared to the first quarter of fiscal 2020 due to a 9% decrease in research and development expense, partially offset by a 8% increase in selling, general, and administrative expense. The decrease in research and development expense was primarily due to staffing changes and the completion of certain product development activities. The increase in selling, general, and administrative expense was primarily due to staffing changes.
 
     Interest income for the first quarter of fiscal 2021 decreased 13% due to a decrease in the average interest rates on our marketable securities and money market funds.

     The 33% decrease in net income in the first quarter of fiscal 2021 compared to the prior-year quarter was primarily due to a decrease in product sales.
 
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 ended June 30, 2020 compared to the prior-year quarter due to its effects on market conditions in certain industries, especially medical devices. Total revenue and net income will likely continue to decrease for future quarters compared to prior-year quarters due to the effects of the COVID-19 pandemic.
 
13

Table of Contents

Liquidity and Capital Resources
Overview
     Cash and cash equivalents were $6,402,983 as of June 30, 2020 compared to $8,065,594 as of March 31, 2020. The $1,662,611 decrease in cash and cash equivalents was due to $4,835,038 of cash used in financing activities consisting of cash dividends paid to shareholders, partially offset by $3,172,427 in net cash provided by operating activities.

Investing Activities
     We had no maturities or purchases of debt securities and no capital expenditures during the quarter ended June 30, 2020. Capital expenditures can vary from quarter to quarter depending on our needs and equipment purchasing opportunities.
 
Financing Activities
     In addition to cash dividends to shareholders paid in fiscal 2021, on July 22, 2020 we announced that our Board had declared a cash dividend of $1.00 per share of Common Stock, or $4,835,038 based on shares outstanding as of July 17, 2020, to be paid August 31, 2020. We plan to fund dividends through cash provided by operating activities and proceeds from maturities of marketable securities. All future dividends will be subject to Board approval and subject to the company’s results of operations, cash and marketable security balances, estimates of future cash requirements, the impacts of the COVID-19 pandemic, and other factors the Board may deem relevant. Furthermore, dividends may be modified or discontinued at any time without notice.

     We currently believe our working capital and cash generated from operations will be adequate for our needs at least for the next 12 months.
 
Off-Balance-Sheet Arrangements
     Our off-balance sheet arrangements consist of purchase commitments. We believe such arrangements have no material current or anticipated future effect on our profitability, cash flows, or financial position.
 
 
14

Table of Contents

Item 4. Controls and Procedures.
Disclosure Controls and Procedures

     Management, with the participation of the Chief Executive Officer and Chief Financial Officer, has performed an evaluation of our disclosure controls and procedures that are defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this Report. This evaluation included consideration of the controls, processes, and procedures that are designed to ensure that information required to be disclosed by us in the reports we file under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as June 30, 2020, our disclosure controls and procedures were effective.

Changes in Internal Controls
     During the quarter ended June 30, 2020, there was no change in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 
 
PART II–OTHER INFORMATION

Item 1. Legal Proceedings.
     In the ordinary course of business we may become involved in litigation. At this time we are not aware of any material pending or threatened legal proceedings or other proceedings contemplated by governmental authorities that we expect would have a material adverse impact on our future results of operation and financial condition.

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, 2020, except the following two risk factors are replaced in their entirety by the following to reflect the expiration of certain COVID-19 related restrictions:

Public health crises could have an adverse effect on our operations and financial results.
     Public health crises could adversely affect our ongoing business operations. In particular, the COVID-19 pandemic has severely impacted global economic activity and caused many of our important customers to delay or cancel orders. We were allowed to operate under Minnesota Emergency Executive Orders because the Company is in several “Critical Sectors” as defined in the Orders, however there can be no assurance we will be exempted from any future restrictions imposed by Federal, State, or local authorities in response to possible future surges or “waves” of COVID-19. Such restrictions could limit or prohibit our operations. Furthermore, if one or more of our employees become infected with COVID-19, we could be forced to curtail or cease operations to protect the health of our employees or to prevent the spread of the disease. Additionally, any customer or supplier disruptions could affect our ability to operate. These and other impacts of COVID-19 pandemic or other public health crises could have a material adverse effect on our results of operations or our financial condition.

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. One of our packaging vendors was forced to suspend its factory operations from late March 2020 until mid-May, and has been permitted only limited operation since mid-May pursuant to COVID-19 government orders. The COVID-19 pandemic has also caused shortages of materials and subassemblies our packaging vendors need for the packaging process. 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 XBRL Instance Document
 
101.SCH      XBRL Taxonomy Extension Schema Document
 
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
 
101.DEF XBRL Taxonomy Extension Definition Linkbase Document
 
101.LAB XBRL Taxonomy Extension Label Linkbase Document
 
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document
 
 
 
 
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 22, 2020
/s/ DANIEL A. BAKER 
Date
Daniel A. Baker
President and Chief Executive Officer

 
July 22, 2020
/s/ CURT A. REYNDERS 
Date
Curt A. Reynders
Chief Financial Officer
 
 
 
16

Exhibit 31.1

CERTIFICATION

I, Daniel A. Baker, certify that:

1.                                        I have reviewed this Quarterly Report on Form 10-Q of NVE Corporation;

 

2.                                        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.                                        Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.                                        The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)                                  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)                                  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

(c)                                  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)                                  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.                                        The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)                                  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)                                 Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 22, 2020

 
/s/ DANIEL A. BAKER
Daniel A. Baker
President and Chief Executive Officer

Exhibit 31.2

CERTIFICATION

I, Curt A. Reynders, certify that:

1.                                        I have reviewed this Quarterly Report on Form 10-Q of NVE Corporation;

 

2.                                        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.                                        Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.                                        The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)                                  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)                                  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

(c)                                  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)                                  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.                                        The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)                                  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)                                 Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 22, 2020

 

 

/s/ CURT A. REYNDERS
Curt A. Reynders
Chief Financial Officer

Exhibit 32

 

CERTIFICATION PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)

 

The undersigned certify pursuant to 18 U.S.C. Section 1350, that to the undersigned’s knowledge:

 

1.                                       The accompanying Quarterly Report of NVE Corporation (the “Company”) on Form 10-Q for the quarter ended June 30, 2020, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.                                       The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

Date: July 22, 2020

 

 

/s/ DANIEL A. BAKER

 

Daniel A. Baker

President and Chief Executive Officer

 

 

/s/ CURT A. REYNDERS

 

Curt A. Reynders

Chief Financial Officer

 

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

v3.20.2
Document And Entity Information - shares
3 Months Ended
Jun. 30, 2020
Jul. 17, 2020
Document Information [Line Items]    
Entity Registrant Name NVE CORP /NEW/  
Entity Central Index Key 0000724910  
Trading Symbol nvec  
Current Fiscal Year End Date --03-31  
Entity Filer Category Non-accelerated Filer  
Entity Current Reporting Status Yes  
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Interactive Data Current Yes  
Entity Common Stock, Shares Outstanding (in shares)   4,835,038
Entity Shell Company false  
Document Type 10-Q  
Document Period End Date Jun. 30, 2020  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Title of 12(b) Security Common stock, $0.01 par value  
v3.20.2
Balance Sheets (Current Period Unaudited) - USD ($)
Jun. 30, 2020
Mar. 31, 2020
ASSETS    
Cash and cash equivalents $ 6,402,983 $ 8,065,594 [1]
Marketable securities, short-term 19,179,495 19,084,814 [1]
Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,297,850 2,694,018 [1]
Inventories 3,943,738 3,884,450 [1]
Prepaid expenses and other assets 718,122 655,835 [1]
Total current assets 32,542,188 34,384,711 [1]
Fixed assets    
Machinery and equipment 9,280,062 9,280,062 [1]
Leasehold improvements 1,797,245 1,797,245 [1]
Property, Plant and Equipment, Gross, Ending Balance 11,077,307 11,077,307 [1]
Less accumulated depreciation and amortization 10,571,515 10,494,840 [1]
Net fixed assets 505,792 582,467 [1]
Deferred tax assets 108,119 [1]
Marketable securities, long-term 45,049,578 43,606,495 [1]
Right-of-use asset – operating lease 784,774 816,358 [1]
Total assets 78,882,332 79,498,150 [1]
LIABILITIES AND SHAREHOLDERS’ EQUITY    
Accounts payable 180,338 186,993 [1]
Accrued payroll and other 492,243 482,074 [1]
Income taxes payable 406,326
Operating lease 120,429 127,134 [1]
Total current liabilities 1,199,336 796,201 [1]
Deferred tax liabilities 189,523
Operating lease 675,928 706,600
Total liabilities 2,064,787 1,502,801
Shareholders’ equity    
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,835,038 issued and outstanding as of June 30, 2020 and March 31, 2020 48,350 48,350 [1]
Additional paid-in capital 19,386,663 19,383,956 [1]
Accumulated other comprehensive income 1,759,185 516,523 [1]
Retained earnings 55,623,347 58,046,520 [1]
Total shareholders’ equity 76,817,545 77,995,349 [1]
Total liabilities and shareholders’ equity $ 78,882,332 $ 79,498,150 [1]
[1] The March 31, 2020 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, 2020.
v3.20.2
Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
Jun. 30, 2020
Mar. 31, 2020
[1]
Allowance for uncollectible accounts $ 15,000 $ 15,000
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 6,000,000 6,000,000
Common stock, shares issued (in shares) 4,835,038 4,835,038
Common stock, shares outstanding (in shares) 4,835,038 4,835,038
[1] The March 31, 2020 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, 2020.
v3.20.2
Statements of Income (Unaudited) - USD ($)
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Revenue    
Revenue $ 4,589,262 $ 6,294,696
Cost of sales 836,422 1,092,037
Gross profit 3,752,840 5,202,659
Expenses    
Research and development 880,983 973,067
Selling, general, and administrative 355,011 330,009
Total expenses 1,235,994 1,303,076
Income from operations 2,516,846 3,899,583
Interest income 399,212 459,039
Income before taxes 2,916,058 4,358,622
Provision for income taxes 504,193 751,203
Net income $ 2,411,865 $ 3,607,419
Net income per share – basic (in dollars per share) $ 0.50 $ 0.74
Net income per share – diluted (in dollars per share) 0.50 0.74
Cash dividends declared per common share (in dollars per share) $ 1 $ 1
Weighted average shares outstanding    
Basic (in shares) 4,835,038 4,846,010
Diluted (in shares) 4,835,157 4,850,388
Product [Member]    
Revenue    
Revenue $ 4,358,635 $ 6,085,364
Contract Research and Development [Member]    
Revenue    
Revenue $ 230,627 $ 209,332
v3.20.2
Statements of Comprehensive Income (Unaudited) - USD ($)
3 Months Ended 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Mar. 31, 2020
Mar. 31, 2019
Net income $ 2,411,865 $ 3,607,419 $ 2,411,865 $ 3,607,419
Unrealized gain from marketable securities, net of tax 1,242,662 570,063 1,242,662 570,063
Comprehensive income $ 3,654,527 $ 4,177,482 $ 3,654,527 $ 4,177,482
v3.20.2
Statements of Shareholders' Equity (Unaudited) - USD ($)
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
AOCI Attributable to Parent [Member]
Retained Earnings [Member]
Total
Balance (in shares) at Mar. 31, 2019   4,846,010        
Balance at Mar. 31, 2019   $ 48,460 $ 19,910,558 $ (82,725) $ 62,903,918 $ 82,780,211
Unrealized gain on marketable securities, net of tax   570,063 570,063
Net income         3,607,419 3,607,419
Total comprehensive income           4,177,482
Cash dividends declared         (4,846,010) (4,846,010)
Balance (in shares) at Jun. 30, 2019 4,846,010          
Balance at Jun. 30, 2019   $ 48,460 19,910,558 487,338 61,665,327 82,111,683
Balance (in shares) at Mar. 31, 2019   4,846,010        
Balance at Mar. 31, 2019   $ 48,460 19,910,558 (82,725) 62,903,918 82,780,211
Unrealized gain on marketable securities, net of tax           1,242,662
Net income           2,411,865
Total comprehensive income           3,654,527
Balance (in shares) at Mar. 31, 2020   4,835,038        
Balance at Mar. 31, 2020   $ 48,350 19,383,956 516,523 58,046,520 77,995,349 [1]
Unrealized gain on marketable securities, net of tax   1,242,662 1,242,662
Net income         2,411,865 2,411,865
Total comprehensive income           3,654,527
Stock-based compensation   2,707 2,707
Cash dividends declared         (4,835,038) (4,835,038)
Balance (in shares) at Jun. 30, 2020 4,835,038          
Balance at Jun. 30, 2020   $ 48,350 $ 19,386,663 $ 1,759,185 $ 55,623,347 $ 76,817,545
[1] The March 31, 2020 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, 2020.
v3.20.2
Statements of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Additional Paid-in Capital [Member]    
Cash dividends declared per common share (in dollars per share) $ 1 $ 1
v3.20.2
Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
OPERATING ACTIVITIES    
Net income $ 2,411,865 $ 3,607,419
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 129,620 134,733
Stock-based compensation 2,707
Deferred income taxes (50,405) (664)
Changes in operating assets and liabilities:    
Accounts receivable 396,168 248,955
Inventories (59,288) 45,093
Prepaid expenses and other assets (30,703) 205,399
Accounts payable and other liabilities 372,463 296,693
Net cash provided by operating activities 3,172,427 4,537,628
INVESTING ACTIVITIES    
Purchases of fixed assets (16,100)
Purchases of marketable securities (3,013,530)
Proceeds from maturities of marketable securities 9,500,000
Cash provided by investing activities 6,470,370
FINANCING ACTIVITIES    
Payment of dividends to shareholders (4,835,038) (4,846,010)
Cash used in financing activities (4,835,038) (4,846,010)
(Decrease) increase in cash and cash equivalents (1,662,611) 6,161,988
Cash and cash equivalents at beginning of period 8,065,594 [1] 6,877,304
Cash and cash equivalents at end of period 6,402,983 13,039,292
Supplemental disclosures of cash flow information:    
Cash paid during the period for income taxes
[1] The March 31, 2020 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, 2020.
v3.20.2
Note 1 - Description of Business
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Business Description and Basis of Presentation [Text Block]

NOTE
1.
DESCRIPTION OF BUSINESS

     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.
v3.20.2
Note 2 - Basis of Presentation and Significant Accounting Policies
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Basis of Presentation and Significant Accounting Policies [Text Block]


NOTE
2.
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

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 financial statements included in our Annual Report on Form
10
-K for the fiscal year ended
March 
31,
2020.
The results of operations for the quarter ended
June 
30,
2020
are
not
necessarily indicative of the results that
may
be expected for the full fiscal year ending
March 
31,
2021.


Significant Accounting Policies

Revenue Recognition

    We recognize revenue when we satisfy performance obligations by the transfer of control of products or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. Revenue is disaggregated into product sales and contract research and development to depict the nature, amount, timing of revenue recognition and economic characteristics of our business, and is represented within the financial statements.

     We recognize revenue from product sales to customers and distributors when we satisfy our performance obligation, at a point in time, upon product shipment or delivery to our customer or distributor as determined by agreed upon shipping terms. Shipping charges billed to customers are included in product sales and the related shipping costs are included in cost of sales. Under certain limited circumstances, our distributors
may
earn commissions for activities unrelated to their purchases of our products, such as for facilitating the sale of custom products or research and development contracts with
third
parties. We recognize any such commissions as selling, general, and administrative expenses. We recognize discounts provided to our distributors as reductions in revenue.

     We recognize contract research and development revenue over a period of time as the performance obligation is satisfied over a period of time rather than a point in time. Contracts have specifications unique to each customer and do
not
create an asset with an alternate use, and we have an enforceable right to payment for performance completed to date. We recognize revenue over a period of time using costs incurred as the measurement of progress towards completion.

     Accounts receivable is recognized when we have transferred a good or service to a customer and our right to receive consideration is unconditional through the completion of our performance obligation. A contract asset is recognized when we have a right to consideration from the transfer of goods or services to a customer but have
not
completed our performance obligation. A contract liability is recognized when we have been paid by a customer but have
not
yet satisfied the performance obligation by transferring goods or services. We had
no
material contract assets or contract liabilities as of
June 
30,
2020
or
March 
31,
2020.


     Our performance obligations related to product sales and contract research and development contracts are satisfied in
one
year or less. Unsatisfied performance obligations represent contracts with an original expected duration of
one
year or less. As permitted under Accounting Standards Codification (“ASC”) Topic 
606,
Revenue from Contracts with Customers
, we are using the practical expedient
not
to disclose the value of these unsatisfied performance obligations. We also use the practical expedient in which we do
not
assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be
one
year or less.

v3.20.2
Note 3 - Recently Issued Accounting Standards
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Accounting Standards Update and Change in Accounting Principle [Text Block]

NOTE
3.
RECENTLY ISSUED ACCOUNTING STANDARDS

New Accounting Standards
Not
Yet Adopted

     In
December 2019,
the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No.
2019
-
12,
Income Taxes (Topic
740
)—Simplifying the Accounting for Income Taxes
. ASU 
2019
-
12
is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic
740
and amends existing guidance to improve consistent application. ASU
2019
-
12
is effective for fiscal years beginning after
December 15, 2020
and interim periods within those fiscal years, which is fiscal
2022
for us, with early adoption permitted. We do
not
expect adoption of the new guidance to have a significant impact on our financial statements.

     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) measured at amortized cost basis 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 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
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. We were unaffected by the change in the effective date of the ASU related to Leases (Topic 
842
) because we have already adopted that ASU. In
March 
2020,
the FASB issued ASU
No.
 
2020
-
03,
Codification Improvements to Financial Instruments
; which modifies the measurement of expected credit losses of certain financial instruments. In accordance with ASU 
2019
-
10
and ASU 
2020
-
02,
ASU 
2016
-
13
is effective for certain Smaller Reporting Companies for financial statements issued for fiscal years beginning after
December 
15,
2022
and interim periods within those fiscal years, which will be fiscal
2024
for us if we continue to be classified as a Smaller Reporting Company, with early adoption permitted. We do
not
expect adoption of the new guidance to have a significant impact on our financial statements.
v3.20.2
Note 4 - Net Income Per Share
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Earnings Per Share [Text Block]

NOTE
4.
NET INCOME PER SHARE

     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 shares:
 
   
Quarter Ended June 30
 
   
2020
   
2019
 
Weighted average common shares outstanding – basic
   
4,835,038
     
4,846,010
 
Dilutive effect of stock options
   
119
     
4,378
 
Shares used in computing net income per share – diluted
   
4,835,157
     
4,850,388
 
v3.20.2
Note 5 - Fair Value of Financial Instruments
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

NOTE
5.
FAIR VALUE OF FINANCIAL INSTRUMENTS

     Our corporate bonds and money market funds are classified as available-for-sale securities and carried at estimated fair value. Unrealized holding gains and losses are included in accumulated other comprehensive income (loss) in the statement of shareholders' equity. Corporate bonds with remaining maturities less than
one
year are classified as short-term, and those with remaining maturities greater than
one
year 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. Gains and losses on marketable security transactions are reported on the specific-identification method.
 
     Contractual maturities of available-for-sale securities as of
June 30, 2020
are as follows:
 
Total
 
 
<1 Year
   
1–3 Years
   
3–5 Years
 
$ 70,315,124
 
  $
25,265,545
    $
33,132,700
    $
11,916,879
 

     Total available-for-sale securities represented approximately
89%
of our total assets. Marketable securities as of
June 
30,
2020
had remaining maturities between
four
and
44
 months.

     Generally accepted accounting principles establish a framework for measuring fair value, provide a definition of fair value, and prescribe required disclosures about fair-value measurements. Generally accepted accounting principles define fair value as the price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Generally accepted accounting principles utilize a valuation hierarchy for disclosure of fair value measurements. The categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The categories within the valuation hierarchy are described as follows:
 
     Level
1
– Financial instruments with quoted prices in active markets for identical assets or liabilities.

     Level
2
– Financial instruments with quoted prices in active markets for similar assets or liabilities. Level 
2
fair value measurements are determined using either prices for similar instruments or inputs that are either directly or indirectly observable, such as interest rates.

     Level
3
– Inputs to the fair value measurement are unobservable inputs or valuation techniques.

     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.”
 
     The following table shows the estimated fair value of assets that were accounted for at fair value on a recurring basis:
 
   
As of June 30, 2020
   
As of March 31, 2020
 
   
Level 1
   
Level 2
   
Total
   
Level 1
   
Level 2
   
Total
 
Money market funds
  $
6,086,051
    $
-
    $
6,086,051
    $
7,903,433
    $
-
    $
7,903,433
 
Corporate bonds
   
-
     
64,229,073
     
64,229,073
     
-
     
62,691,309
     
62,691,309
 
Total
  $
6,086,051
    $
64,229,073
    $
70,315,124
    $
7,903,433
    $
62,691,309
    $
70,594,742
 

     Our available-for-sale securities as of
June 
30
and
March 
31,
2020,
aggregated into classes of securities, were as follows:
 
   
As of June 30, 2020
   
As of March 31, 2020
 
   

Amortized
Cost
   
Gross
Unrealized
Holding Gains
   
Gross
Unrealized
Holding Losses
   
Estimated
Fair
Value
   

Amortized
Cost
   
Gross
Unrealized
Holding Gains
   
Gross
Unrealized
Holding Losses
   
Estimated
Fair
Value
 
Money market funds
  $
6,086,051
    $
-
    $
-
    $
6,086,051
    $
7,903,433
    $
-
    $
-
    $
7,903,433
 
Corporate bonds
   
61,977,175
     
2,251,898
     
-
     
64,229,073
     
62,030,120
     
752,621
     
(91,432
)
   
62,691,309
 
Total
  $
68,063,226
    $
2,251,898
    $
-
    $
70,315,124
    $
69,933,553
    $
752,621
    $
(91,432
)
  $
70,594,742
 
v3.20.2
Note 6 - Inventories
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Inventory Disclosure [Text Block]

NOTE
6.
INVENTORIES

     Inventories are shown in the following table:
 
   
June 30,
2020
   
March 31,
2020
 
Raw materials
  $
907,618
    $
1,017,451
 
Work in process
   
2,026,032
     
1,863,000
 
Finished goods
   
1,010,088
     
1,003,999
 
Total inventories
  $
3,943,738
    $
3,884,450
 
v3.20.2
Note 7 - Stock-based Compensation
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]

NOTE
7.
STOCK-BASED COMPENSATION

     Stock-based compensation expense was
$2,707
for the
first
quarter of fiscal
2021.
There were
no
stock-based compensation expenses for the
first
quarter of fiscal
2020.
We calculate the share-based compensation expense using the Black-Scholes standard option-pricing model.
 
v3.20.2
Note 8 - Income Taxes
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE
8.
INCOME TAXES

     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.
 
     We had
no
unrecognized tax benefits as of
June 
30,
2020,
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,
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.
 
v3.20.2
Note 9 - Leases
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

NOTE
9.
LEASES

     We conduct our operations in a leased facility under a non-cancellable lease expiring
March 31, 2026.
Our lease does
not
provide an implicit 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. Variable lease costs consist primarily of common area maintenance and real estate taxes which are paid based on actual costs incurred by the lessor. Details of our operating lease are as follows:
 
   
Quarter Ended
June 30, 2020
 
Operating lease cost
  $
38,641
 
Variable lease cost
   
30,608
 
Total
  $
69,249
 
         
Cash paid for amounts included in the measurement of lease liabilities        
Operating cash flows for leases
  $
44,433
 
Remaining lease term (in months)
   
69
 
Discount rate
   
3.5
%
 
      The following table presents the maturities of lease liabilities as of
June 
30,
 
2020:
 
Year Ending March 31
 
Operating Leases
 
2021
   
84,104
 
2022
   
152,703
 
2023
   
156,121
 
2024
   
159,592
 
2025
   
163,224
 
2026
   
165,947
 
Total lease payments
   
881,691
 
Imputed lease interest
   
(85,334
)
Total lease liabilities
  $
796,357
 
v3.20.2
Note 10 - Stock Repurchase Program
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Stock Repurchase Plan Disclosure [Text Block]

NOTE
10.
STOCK REPURCHASE PROGRAM

     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 depends 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 maturating marketable securities. The remaining authorization was
$3,853,459
as of
June 
30,
 
2020.
We did
not
repurchase any of our Common Stock during the
first
quarter of fiscal
2021.

 
v3.20.2
Note 11 - Information as to Employee Stock Purchase, Savings, and Similar Plans
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Retirement Benefits [Text Block]

NOTE
11.
INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS

     All of our employees are eligible to participate in our
401
(k) savings plan the
first
quarter after reaching age 
21.
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
$25,381
for the
first
quarter of fiscal
2021
and
$24,066
for the
first
quarter of fiscal
2020.
v3.20.2
Note 12 - Subsequent Events
3 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Subsequent Events [Text Block]

NOTE
12.
SUBSEQUENT EVENTS

     On
July 
22,
2020
we announced that our Board had declared a quarterly cash dividend of
$1.00
per share of Common Stock to be paid
August 
31,
2020
to shareholders of record as of the close of business
August 
3,
2020.

 
v3.20.2
Significant Accounting Policies (Policies)
3 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
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 financial statements included in our Annual Report on Form
10
-K for the fiscal year ended
March 
31,
2020.
The results of operations for the quarter ended
June 
30,
2020
are
not
necessarily indicative of the results that
may
be expected for the full fiscal year ending
March 
31,
2021.
Revenue from Contract with Customer [Policy Text Block]
Revenue Recognition

    We recognize revenue when we satisfy performance obligations by the transfer of control of products or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. Revenue is disaggregated into product sales and contract research and development to depict the nature, amount, timing of revenue recognition and economic characteristics of our business, and is represented within the financial statements.

     We recognize revenue from product sales to customers and distributors when we satisfy our performance obligation, at a point in time, upon product shipment or delivery to our customer or distributor as determined by agreed upon shipping terms. Shipping charges billed to customers are included in product sales and the related shipping costs are included in cost of sales. Under certain limited circumstances, our distributors
may
earn commissions for activities unrelated to their purchases of our products, such as for facilitating the sale of custom products or research and development contracts with
third
parties. We recognize any such commissions as selling, general, and administrative expenses. We recognize discounts provided to our distributors as reductions in revenue.

     We recognize contract research and development revenue over a period of time as the performance obligation is satisfied over a period of time rather than a point in time. Contracts have specifications unique to each customer and do
not
create an asset with an alternate use, and we have an enforceable right to payment for performance completed to date. We recognize revenue over a period of time using costs incurred as the measurement of progress towards completion.

     Accounts receivable is recognized when we have transferred a good or service to a customer and our right to receive consideration is unconditional through the completion of our performance obligation. A contract asset is recognized when we have a right to consideration from the transfer of goods or services to a customer but have
not
completed our performance obligation. A contract liability is recognized when we have been paid by a customer but have
not
yet satisfied the performance obligation by transferring goods or services. We had
no
material contract assets or contract liabilities as of
June 
30,
2020
or
March 
31,
2020.


     Our performance obligations related to product sales and contract research and development contracts are satisfied in
one
year or less. Unsatisfied performance obligations represent contracts with an original expected duration of
one
year or less. As permitted under Accounting Standards Codification (“ASC”) Topic 
606,
Revenue from Contracts with Customers
, we are using the practical expedient
not
to disclose the value of these unsatisfied performance obligations. We also use the practical expedient in which we do
not
assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be
one
year or less.
v3.20.2
Note 4 - Net Income Per Share (Tables)
3 Months Ended
Jun. 30, 2020
Notes Tables  
Schedule of Weighted Average Number of Shares [Table Text Block]
   
Quarter Ended June 30
 
   
2020
   
2019
 
Weighted average common shares outstanding – basic
   
4,835,038
     
4,846,010
 
Dilutive effect of stock options
   
119
     
4,378
 
Shares used in computing net income per share – diluted
   
4,835,157
     
4,850,388
 
v3.20.2
Note 5 - Fair Value of Financial Instruments (Tables)
3 Months Ended
Jun. 30, 2020
Notes Tables  
Investments Classified by Contractual Maturity Date [Table Text Block]
Total
 
 
<1 Year
   
1–3 Years
   
3–5 Years
 
$ 70,315,124
 
  $
25,265,545
    $
33,132,700
    $
11,916,879
 
Fair Value, Assets Measured on Recurring Basis [Table Text Block]
   
As of June 30, 2020
   
As of March 31, 2020
 
   
Level 1
   
Level 2
   
Total
   
Level 1
   
Level 2
   
Total
 
Money market funds
  $
6,086,051
    $
-
    $
6,086,051
    $
7,903,433
    $
-
    $
7,903,433
 
Corporate bonds
   
-
     
64,229,073
     
64,229,073
     
-
     
62,691,309
     
62,691,309
 
Total
  $
6,086,051
    $
64,229,073
    $
70,315,124
    $
7,903,433
    $
62,691,309
    $
70,594,742
 
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]
   
As of June 30, 2020
   
As of March 31, 2020
 
   

Amortized
Cost
   
Gross
Unrealized
Holding Gains
   
Gross
Unrealized
Holding Losses
   
Estimated
Fair
Value
   

Amortized
Cost
   
Gross
Unrealized
Holding Gains
   
Gross
Unrealized
Holding Losses
   
Estimated
Fair
Value
 
Money market funds
  $
6,086,051
    $
-
    $
-
    $
6,086,051
    $
7,903,433
    $
-
    $
-
    $
7,903,433
 
Corporate bonds
   
61,977,175
     
2,251,898
     
-
     
64,229,073
     
62,030,120
     
752,621
     
(91,432
)
   
62,691,309
 
Total
  $
68,063,226
    $
2,251,898
    $
-
    $
70,315,124
    $
69,933,553
    $
752,621
    $
(91,432
)
  $
70,594,742
 
v3.20.2
Note 6 - Inventories (Tables)
3 Months Ended
Jun. 30, 2020
Notes Tables  
Schedule of Inventory, Current [Table Text Block]
   
June 30,
2020
   
March 31,
2020
 
Raw materials
  $
907,618
    $
1,017,451
 
Work in process
   
2,026,032
     
1,863,000
 
Finished goods
   
1,010,088
     
1,003,999
 
Total inventories
  $
3,943,738
    $
3,884,450
 
v3.20.2
Note 9 - Leases (Tables)
3 Months Ended
Jun. 30, 2020
Notes Tables  
Lease, Cost [Table Text Block]
   
Quarter Ended
June 30, 2020
 
Operating lease cost
  $
38,641
 
Variable lease cost
   
30,608
 
Total
  $
69,249
 
         
Cash paid for amounts included in the measurement of lease liabilities        
Operating cash flows for leases
  $
44,433
 
Remaining lease term (in months)
   
69
 
Discount rate
   
3.5
%
Lessee, Operating Lease, Liability, Maturity [Table Text Block]
Year Ending March 31
 
Operating Leases
 
2021
   
84,104
 
2022
   
152,703
 
2023
   
156,121
 
2024
   
159,592
 
2025
   
163,224
 
2026
   
165,947
 
Total lease payments
   
881,691
 
Imputed lease interest
   
(85,334
)
Total lease liabilities
  $
796,357
 
v3.20.2
Note 4 - Net Income Per Share - Components of Common Shares Outstanding (Details) - shares
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Basic (in shares) 4,835,038 4,846,010
Dilutive effect of stock options (in shares) 119 4,378
Shares used in computing net income per share – diluted (in shares) 4,835,157 4,850,388
v3.20.2
Note 5 - Fair Value of Financial Instruments (Details Textual)
3 Months Ended
Jun. 30, 2020
Available for Sale Debt Securitites, Percent of Total Assets 89.00%
Minimum [Member]  
Available for Sale Debt Securities, Remaining Maturity (Month) 120 days
Maximum [Member]  
Available for Sale Debt Securities, Remaining Maturity (Month) 3 years 240 days
v3.20.2
Note 5 - Fair Value of Financial Instruments - Fair Value of Available-for-sale Securities (Details) - USD ($)
Jun. 30, 2020
Mar. 31, 2020
Total $ 70,315,124 $ 70,594,742
Less than 1 year 25,265,545  
1-3 years 33,132,700  
3-5 years $ 11,916,879  
v3.20.2
Note 5 - Fair Value of Financial Instruments - Assets Measured on Recurring Basis (Details) - USD ($)
Jun. 30, 2020
Mar. 31, 2020
Total $ 70,315,124 $ 70,594,742
Money Market Funds [Member]    
Total 6,086,051 7,903,433
Corporate Bond Securities [Member]    
Total 64,229,073 62,691,309
Fair Value, Recurring [Member]    
Total 70,315,124 70,594,742
Fair Value, Recurring [Member] | Money Market Funds [Member]    
Total 6,086,051 7,903,433
Fair Value, Recurring [Member] | Corporate Bond Securities [Member]    
Total 64,229,073 62,691,309
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Total 6,086,051 7,903,433
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]    
Total 6,086,051 7,903,433
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Bond Securities [Member]    
Total
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Total 64,229,073 62,691,309
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]    
Total
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member]    
Total $ 64,229,073 $ 62,691,309
v3.20.2
Note 5 - Fair Value of Financial Instruments - Reconciliation of Available-for-sale Securities (Details) - USD ($)
Jun. 30, 2020
Mar. 31, 2020
Amortized Cost $ 68,063,226 $ 69,933,553
Gross Unrealized Holding Gains 2,251,898 752,621
Gross Unrealized Holding Losses (91,432)
Estimated Fair Value 70,315,124 70,594,742
Money Market Funds [Member]    
Amortized Cost 6,086,051 7,903,433
Gross Unrealized Holding Gains
Gross Unrealized Holding Losses
Estimated Fair Value 6,086,051 7,903,433
Corporate Bond Securities [Member]    
Amortized Cost 61,977,175 62,030,120
Gross Unrealized Holding Gains 2,251,898 752,621
Gross Unrealized Holding Losses (91,432)
Estimated Fair Value $ 64,229,073 $ 62,691,309
v3.20.2
Note 6 - Inventories - Summary of Inventories (Details) - USD ($)
Jun. 30, 2020
Mar. 31, 2020
Raw materials $ 907,618 $ 1,017,451
Work in process 2,026,032 1,863,000
Finished goods 1,010,088 1,003,999
Total inventories $ 3,943,738 $ 3,884,450 [1]
[1] The March 31, 2020 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, 2020.
v3.20.2
Note 7 - Stock-based Compensation (Details Textual) - USD ($)
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Share-based Payment Arrangement, Expense $ 2,707 $ 0
v3.20.2
Note 8 - Income Taxes (Details Textual)
$ in Thousands
3 Months Ended
Jun. 30, 2020
USD ($)
Unrecognized Tax Benefits, Ending Balance $ 0
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit 0
Unrecognized Tax Benefits, Interest on Income Taxes Accrued $ 0
Open Tax Year 2016 2017 2018 2019
v3.20.2
Note 9 - Leases - Operating Lease (Details)
3 Months Ended
Jun. 30, 2020
USD ($)
Operating lease cost $ 38,641
Variable lease cost 30,608
Total 69,249
Operating cash flows for leases $ 44,433
Remaining lease term (Month) 5 years 270 days
Discount rate 3.50%
v3.20.2
Note 9 - Leases - Maturities of Lease Liabilities (Details)
Jun. 30, 2020
USD ($)
2021 $ 84,104
2022 152,703
2023 156,121
2024 159,592
2025 163,224
2026 165,947
Total lease payments 881,691
Imputed lease interest (85,334)
Total lease liabilities $ 796,357
v3.20.2
Note 10 - Stock Repurchase Program (Details Textual) - Repurchase Program 2009 [Member] - USD ($)
shares in Thousands
3 Months Ended
Jun. 30, 2020
Aug. 27, 2015
Jan. 21, 2009
Stock Repurchase Program, Authorized Amount     $ 2,500,000
Stock Repurchase Program Authorized Additional Amount   $ 5,000,000  
Stock Repurchase Program, Remaining Authorized Repurchase Amount $ 3,853,459    
Stock Repurchased During Period, Shares (in shares) 0    
v3.20.2
Note 11 - Information as to Employee Stock Purchase, Savings, and Similar Plans (Details Textual) - USD ($)
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay 100.00%  
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent 3.00%  
Defined Benefit Plan, Plan Assets, Contributions by Employer $ 25,381 $ 24,066
v3.20.2
Note 12 - Subsequent Events (Details Textual) - $ / shares
3 Months Ended
Jul. 22, 2020
Jun. 30, 2020
Jun. 30, 2019
Common Stock, Dividends, Per Share, Declared (in dollars per share)   $ 1 $ 1
Subsequent Event [Member]      
Common Stock, Dividends, Per Share, Declared (in dollars per share) $ 1    
Subsequent Event [Member] | Common Stock [Member]      
Dividends Payable, Date to be Paid Aug. 31, 2019    
Dividends Payable, Date of Record Aug. 03, 2019