NVE CORP - Form 10-Q SEC filing

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ 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 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.

☒ 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).

☒ 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 ☒	Smaller reporting company ☒
		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 ☒ 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 – 4,837,166 shares outstanding as of June 30, 2026.

Table of Contents

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 , 202 6 and 202 5

Statements of Comprehensive Income for the Quarters Ended June 30 , 202 6 and 20 25

Statements of Shareholders’ Equity for the Quarter Ended June 30 , 202 6

Statements of Shareholders’ Equity for the Quarter Ended June 30 , 202 5

Statements of Cash Flows for the Quarters Ended June 30 , 202 6 and 202 5

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

Table of Contents

PART I–FINANCIAL INFORMATION

Item 1. Financial Statements.

NVE CORPORATION

BALANCE SHEETS

	(Unaudited) June 30, 2026			March 31, 2026
ASSETS
Current assets
Cash and cash equivalents	$	2,896,148		$	1,714,040
Marketable securities, short-term		18,875,009			18,125,060
Accounts receivable, net of allowance for credit losses of $15,000		6,545,713			3,408,941
Inventories, net		6,673,227			7,082,821
Prepaid expenses and other assets		685,921			1,860,415
Total current assets		35,676,018			32,191,277
Fixed assets
Machinery and equipment		13,900,632			13,843,799
Leasehold improvements		2,059,853			2,059,853
		15,960,485			15,903,652
Less accumulated depreciation and amortization		12,419,993			12,187,643
Net fixed assets		3,540,492			3,716,009
Marketable securities, long-term		22,137,350			23,678,452
Right-of-use asset – operating lease		763,080			793,794
Total assets	$	62,116,940		$	60,379,532

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	265,953		$	278,599
Accrued payroll and other		1,037,155			697,611
Operating lease		201,008			165,116
Total current liabilities		1,504,116			1,141,326
Deferred tax liabilities		128,217			248,284
Long-term operating lease liability		704,817			740,423
Total liabilities		2,337,150			2,130,033

Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,837,166 issued and outstanding as of June 30, 2026 and March 31, 2026		48,372			48,372
Additional paid-in capital		19,928,818			19,914,769
Accumulated other comprehensive income (loss)		(72,793	)		(32,010	)
Retained earnings		39,875,393			38,318,368
Total shareholders’ equity		59,779,790			58,249,499
Total liabilities and shareholders’ equity	$	62,116,940		$	60,379,532

*The March 31, 2026 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, 2026.

See accompanying notes.

Table of Contents

NVE CORPORATION

STATEMENTS OF INCOME

(Unaudited)

	Quarter Ended June 30,
	2026		2025
Revenue
Product sales	$	10,734,735	$	5,908,570
Contract research and development		299,322		196,074
Total revenue, net		11,034,057		6,104,644
Cost of sales		2,066,045		1,182,523
Gross profit		8,968,012		4,922,121
Expenses
Research and development		946,582		720,231
Selling, general, and administrative		755,594		418,640
Total expenses		1,702,176		1,138,871
Income from operations		7,265,836		3,783,250
Interest income		449,920		498,208
Other income		-		811
Income before taxes		7,715,756		4,282,269
Provision for income taxes		1,321,565		706,451
Net income	$	6,394,191	$	3,575,818
Net income per share – basic	$	1.32	$	0.74
Net income per share – diluted	$	1.32	$	0.74
Cash dividends declared per common share	$	1.00	$	1.00
Weighted average shares outstanding
Basic		4,837,166		4,837,166
Diluted		4,845,745		4,838,877

STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Quarter Ended June 30,
	2026			2025
Net income	$	6,394,191		$	3,575,818
Unrealized gain (loss) on marketable securities, net of tax		(40,783	)		75,362
Comprehensive income	$	6,353,408		$	3,651,180

See accompanying notes.

Table of Contents

NVE CORPORATION

STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

							Accumulated
					Additional		Other
	Common Stock				Paid-In		Comprehensive			Retained
	Shares		Amount		Capital		Income (Loss)			Earnings			Total
Balance as of March 31, 2026*		4,837,166	$	48,372	$	19,914,769	$	(32,010	)	$	38,318,368		$	58,249,499
Comprehensive income:
Unrealized loss on marketable securities, net of tax								(40,783	)					(40,783	)
Net income											6,394,191			6,394,191
Total comprehensive income														6,353,408
Stock-based compensation						14,049								14,049
Cash dividends paid ($1.00 per share of common stock)											(4,837,166	)		(4,837,166	)
Balance as of June 30, 2026		4,837,166	$	48,372	$	19,928,818	$	(72,793	)	$	39,875,393		$	59,779,790

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

See accompanying notes.

Table of Contents

NVE CORPORATION

STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

							Accumulated
					Additional		Other
	Common Stock				Paid-In		Comprehensive			Retained
	Shares		Amount		Capital		Income (Loss)			Earnings			Total
Balance as of March 31, 2025*		4,837,166	$	48,372	$	19,821,106	$	(68,544	)	$	42,467,837		$	62,268,771
Comprehensive income:
Unrealized gain on marketable securities, net of tax								75,362						75,362
Net income											3,575,818			3,575,818
Total comprehensive income														3,651,180
Stock-based compensation						6,838								6,838
Cash dividends paid ($1.00 per share of common stock)											(4,837,166	)		(4,837,166	)
Balance as of June 30, 2025		4,837,166	$	48,372	$	19,827,944	$	6,818		$	41,206,489		$	61,089,623

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

See accompanying notes.

Table of Contents

NVE CORPORATION

STATEMENTS OF CASH FLOWS

(Unaudited)

	Quarter Ended June 30,
	2026			2025
OPERATING ACTIVITIES
Net income	$	6,394,191		$	3,575,818
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		232,350			85,399
Bond discount amortization		(30,842	)		(96,506	)
Stock-based compensation		14,049			6,838
Deferred income taxes		(108,644	)		(3,040	)
Non-cash operating lease expense		31,000			1,965
Changes in operating assets and liabilities:
Accounts receivable		(3,136,772	)		1,335,447
Inventories		409,594			(4,286	)
Prepaid expenses and other assets		1,174,494			(196,757	)
Accounts payable		(12,646	)		(37,477	)
Accrued payroll and other		339,544			523,259
Net cash provided by operating activities		5,306,318			5,190,660

INVESTING ACTIVITIES
Purchases of fixed assets		(56,833	)		(1,058,524	)
Purchases of marketable securities		(4,230,211	)		(10,108,982	)
Proceeds from maturities of marketable securities		5,000,000			6,000,000
Net cash provided by (used in) investing activities		712,956			(5,167,506	)

FINANCING ACTIVITIES
Payment of dividends to shareholders		(4,837,166	)		(4,837,166	)
Net cash used in financing activities		(4,837,166	)		(4,837,166	)

Increase (decrease) in cash and cash equivalents		1,182,108			(4,814,012	)

Cash and cash equivalents at beginning of period		1,714,040			8,036,564

Cash and cash equivalents at end of period	$	2,896,148		$	3,222,552

Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes	$	-		$	-

See accompanying notes.

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 the Notes to Financial Statements have been condensed as permitted. It is suggested that these unaudited financial statements be read in conjunction with the audited financial statements and Notes included in our latest Annual Report on Form 10-K, which is for the fiscal year ended March 31, 2026. The results of operations for the quarter ended June 30, 2026, are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2027.

Significant Accounting Policies

A description of our significant accounting policies and estimates is provided in Note 2 to the Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026. As of June 30, 2026, there were no changes to our significant accounting policies or estimates.

NOTE 3. NEW ACCOUNTING STANDARDS

Recently Adopted Accounting Standards

In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2025-05, Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 aims to reduce the cost and complexity of estimating credit losses while maintaining decision-useful information for financial statement users. The guidance allows a practical expedient of assuming current conditions as of the balance sheet date remain unchanged for the remaining life of the assets. We adopted this practical expedient as permitted by ASU 2025-05. ASU 2025-05 was effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods, which is fiscal 2027 for us. Adoption of ASU 2025-05 did not have a material impact on our Financial Statements.

New Accounting Standards Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). ASU 2024-03 aims to enhance transparency for users of financial statements by requiring public business entities to disaggregate specific expense categories. In January 2025, the FASB issued ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarified the effective date for non-calendar year-end entities such as us. ASU 2024-03 mandates disclosures in the notes to financial statements detailing the composition and trends of key expense categories within major income statement captions. These enhanced disclosures are intended to help investors more effectively assess the entity’s performance, understand its cost structure, and make more accurate forecasts of future cash flows. For public business entities, ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, which for us will be for fiscal 2028 and for interim reporting periods beginning with the first quarter of fiscal 2029. The adoption will result in disclosure changes only.

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

Table of Contents

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 in-the-money stock options. The following table show the components of diluted shares:

	Quarter Ended June 30,
	2026	2025
Weighted average common shares outstanding – basic	4,837,166	4,837,166
Dilutive effect of stock options	8,579	1,711
Shares used in computing net income per share – diluted	4,845,745	4,838,877

NOTE 5. MARKETABLE SECURITIES

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

	Total		<1 Year		1–3 Years		3–4 Years
Money market funds	$	2,111,995	$	2,111,995	$	-	$	-
Treasury securities		4,702,731		4,702,731		-		-
Corporate bonds		36,309,628		14,172,278		17,907,998		4,229,352
Total	$	43,124,354	$	20,987,004	$	17,907,998	$	4,229,352

Total marketable securities and money market funds represented approximately 69% of our total assets as of June 30, 2026. Marketable securities as of June 30, 2026, had remaining maturities between two and 56 months.

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

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

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

	As of June 30, 2026						As of March 31, 2026
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	2,111,995	$	-	$	2,111,995	$	1,121,096	$	-	$	1,121,096
Treasury securities		-		4,702,731		4,702,731		-		4,714,688		4,714,688
Corporate bonds		-		36,309,628		36,309,628		-		37,088,824		37,088,824
Total	$	2,111,995	$	41,012,359	$	43,124,354	$	1,121,096	$	41,803,512	$	42,924,608

Table of Contents

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

	As of June 30, 2026									As of March 31, 2026
	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	$	2,111,995	$	-	$	-		$	2,111,995	$	1,121,096	$	-	$	-		$	1,121,096
Treasury securities		4,699,895		2,836		-			4,702,731		4,699,853		14,835		-			4,714,688
Corporate bonds		36,405,645		2,430		(98,447	)		36,309,628		37,144,634		16,583		(72,393	)		37,088,824
Total	$	43,217,535	$	5,266	$	(98,447	)	$	43,124,354	$	42,965,583	$	31,418	$	(72,393	)	$	42,924,608

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

	Less Than 12 Months					12 Months or Greater					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses

As of June 30, 2026
Corporate bonds	$	26,811,061	$	(86,763	)	$	4,469,069	$	(11,684	)	$	31,280,130	$	(98,447	)
Total	$	26,811,061	$	(86,763	)	$	4,469,069	$	(11,684	)	$	31,280,130	$	(98,447	)

As of March 31, 2026
Corporate bonds	$	23,221,061	$	(51,668	)	$	4,447,243	$	(20,725	)	$	27,668,304	$	(72,393	)
Total	$	23,221,061	$	(51,668	)	$	4,447,243	$	(20,725	)	$	27,668,304	$	(72,393	)

None of the securities were impaired at acquisition, and subsequent declines in fair value are attributable to interest rate increases. We do not intend to sell, and it is not more likely than not that we will be required to sell, these securities before recovery of their amortized cost basis. The issuers continue to make timely interest payments on these securities.

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

	Quarter Ended June 30,
	2026			2025
Unrealized gain (loss) on marketable securities	$	(52,206)		$	96,471
Tax effects		11,423			(21,109	)
Unrealized gain (loss) on marketable securities, net of tax	$	(40,783	)	$	75,362

NOTE 6. INVENTORIES

Inventories are shown in the following table:

		June 30, 2026		March 31, 2026
Raw materials	$	1,493,984	$	1,357,842
Work in process		3,162,176		3,282,430
Finished goods		2,017,067		2,442,549
Total inventories	$	6,673,227	$	7,082,821

Table of Contents

NOTE 7. STOCK-BASED COMPENSATION

Stock-based compensation expense was $14,049 for the first quarter of fiscal 2027 and $6,838 for the first quarter of fiscal 2026. We calculate share-based compensation expense using the Black-Scholes-Merton standard option-pricing model.

	Quarter Ended June 30,
	2026	2025
Stock options granted	2,500	2,500
Stock options exercised	-	-

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

We had no unrecognized tax benefits as of June 30, 2026, and we do not expect any significant unrecognized tax benefits within 12 months of the reporting date. We recognize interest and penalties related to income tax matters in income tax expense. As of June 30, 2026, we had no accrued interest related to uncertain tax positions. The tax years ended March 31, 2023 through March 31, 2026 remain open to examination by the major taxing jurisdictions to which we are subject.

NOTE 9. LEASES

We conduct our operations in a leased facility under a non-cancellable lease expiring May 31, 2031. Our lease does not provide an implicit interest rate, so we used our incremental borrowing rate to determine the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. Details of our operating lease are as follows:

	Quarter Ended June 30,
	2026		2025
Operating lease cost	$	48,214	$	48,214

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for leases	$	17,214	$	46,249
Remaining lease term		59 months	71 months
Discount rate		7.8%	7.8%

Table of Contents

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

Year Ending March 31,	Operating Lease Liabilities
2027		154,928
2028		213,284
2029		220,216
2030		227,373
2031		234,762
2032		40,399
Total lease payments		1,090,962
Imputed lease interest		(185,137	)
Total lease liabilities	$	905,825

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 depend on market conditions, the trading price of the company’s stock, and other factors, and are subject to the restrictions relating to volume, price, and timing under applicable law. On August 27, 2015, we announced that our Board of Directors authorized up to $5,000,000 of additional repurchases. Our repurchase program does not have an expiration date and does not obligate us to purchase any shares. The Program may be modified or discontinued at any time without notice. We intend to finance any stock repurchases with cash provided by operating activities or maturing marketable securities. The remaining authorization was $3,520,369 as of June 30, 2026. We did not repurchase any of our Common Stock during the first quarter of fiscal 2027.

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 18. Employees may contribute up to the Internal Revenue Code maximum. We make matching contributions of 100% of the first 3% of participants’ salary deferral contributions. Our matching contributions were $28,078 for the first quarter of fiscal 2027 and $28,834 for the first quarter of fiscal 2026.

NOTE 12. SUBSEQUENT EVENTS

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

Table of Contents

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 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 and uncertainties related to tariffs, customs, duties, and other trade barriers, 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 is contained in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026.

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 fiscal year ended March 31, 2026. As of June 30, 2026, our critical accounting policies and estimates continued to include marketable securities valuation, inventory valuation, and deferred tax estimation.

Table of Contents

Quarter ended June 30, 2026, compared to quarter ended June 30, 2025

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
	2026		2025		Change
Revenue
Product sales	97.3	%	96.8	%	81.7	%
Contract research and development	2.7	%	3.2	%	52.7	%
Total revenue	100.0	%	100.0	%	80.7	%
Cost of sales	18.7	%	19.4	%	74.7	%
Gross profit	81.3	%	80.6	%	82.2	%
Expenses
Research and development	8.6	%	11.8	%	31.4	%
Selling, general, and administrative	6.8	%	6.9	%	80.5	%
Total expenses	15.4	%	18.7	%	49.5	%
Income from operations	65.9	%	61.9	%	92.1	%
Interest income	4.1	%	8.2	%	(9.7	)%
Other income	-		0.0	%	(100.0	)%
Income before taxes	70.0	%	70.1	%	80.2	%
Provision for income taxes	12.1	%	11.5	%	87.1	%
Net income	57.9	%	58.6	%	78.8	%

Total revenue for the quarter ended June 30, 2026 (the first quarter of fiscal 2027) increased 81% compared to the quarter ended June 30, 2025 (the first quarter of fiscal 2026). The increase was due to an 82% increase in product sales and a 53% increase in contract research and development revenue. The increase in product sales was due to increases in both defense and non-defense sales, as well as increases in sales through both direct and distributor channels. The increase in contract research and development revenue was due to progress on existing contracts.

Total operating expenses increased 50% for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026, due to a 31% increase in research and development expense and an 81% increase in selling, general, and administrative expense. The increase in research and development expense was due to increased staffing and new product development activities. The increase in selling, general, and administrative expenses was primarily due to increased performance-based compensation.

Interest income decreased 10% due to a decrease in our marketable securities portfolio as proceeds from bond maturities partially funded dividends and fixed asset purchases in the prior fiscal year.

The 79% increase in net income in the first quarter of fiscal 2027 compared to the prior-year quarter was primarily due to increased revenue, partially offset by increased operating expenses and decreased interest income.

Table of Contents

Liquidity and Capital Resources

Overview

Cash and cash equivalents were $2,896,148 as of June 30, 2026, compared to $1,714,040 as of March 31, 2026. The $1,182,108 increase in cash and cash equivalents during the first quarter of fiscal 2027 was due to $5,306,318 of net cash provided by operating activities and $712,956 of net cash provided by investing activities, partially offset by $4,837,166 of cash used in financing activities.

Operating Activities

Net cash provided by operating activities related to product sales and research and development contract revenue was our primary source of working capital for the current and prior-year quarters.

Accounts receivable increased $3,136,772 during the first quarter of fiscal 2027 primarily due to increased sales and timing of customer payments. Inventories decreased $409,594 primarily due to increased sales. Prepaid expenses and other assets decreased $1,174,494 as the accrual for fiscal 2027 federal and state taxes offset prior-year’s estimated taxes overpayment.

Investing Activities

Cash provided by investing activities during the quarter ended June 30, 2026, consisted $5,000,000 in proceeds from maturities of marketable securities, partially offset by $4,230,211 of marketable securities purchases and $56,833 of fixed asset purchases. We currently expect fixed asset purchases in the fiscal year ending March 31, 2027, to be significantly less than for the year ended March 31, 2026 with the completion of our expansion in the past fiscal year.

Financing Activities

Cash used in financing activities during the quarter ended June 30, 2026, consisted of $4,837,166 of cash dividends paid to shareholders.

In addition to cash dividends to shareholders paid in the first quarter of fiscal 2027, on July 22, 2026, we announced that our Board of Directors had declared a cash dividend of $1.00 per share of Common Stock, or $4,837,166 based on shares outstanding as of June 30, 2026, to be paid on August 31, 2026.

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, and other factors the Board may deem relevant. Furthermore, dividends may be modified or discontinued at any time without notice.

Table of Contents

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Management, with the participation of the Chief Executive Officer and Principal 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 Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Our management concluded that, as of June 30, 2026, our disclosure controls and procedures were effective.

Changes in Internal Controls Over Financial Reporting

During the quarter ended June 30, 2026, 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 operations 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, 2026.

Item 4. Mine Safety Disclosures.

None.

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 Daniel Nelson pursuant to Rule 13a-14(a)/15d-14(a).

32	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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)

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 22, 2026		/s/ DANIEL A. BAKER
Date		Daniel A. Baker
		President and Chief Executive Officer


July 22, 2026		/s/ DANIEL NELSON
Date		Daniel Nelson
		Principal Financial Officer