10-Q

 

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, 2018

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 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).

[X] Yes  [   ] No

     Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or 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 [X]
Non-accelerated filer [   ]   (Do not check if a smaller reporting company)	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  [X] No

     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 – 4,842,010 shares outstanding as of July 13, 2018

 

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, 2018 and 2017

          Statements of Comprehensive Income for the Quarters Ended June 30, 2018 and 2017

          Statements of Cash Flows

          Notes to Financial Statements

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

     Item 3. Quantitative and Qualitative Disclosures About Market Risk

     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

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PART I–FINANCIAL INFORMATION

Item 1. Financial Statements.

NVE CORPORATION
BALANCE SHEETS
 

	(Unaudited) June 30, 2018			March 31, 2018*
ASSETS
Current assets
Cash and cash equivalents	$	8,451,861		$	4,755,082
Marketable securities, short-term		22,924,176			20,765,809
Accounts receivable, net of allowance for uncollectible accounts of $15,000		3,120,773			2,888,779
Inventories		3,621,681			3,650,439
Prepaid expenses and other assets	532,107			635,160
Total current assets		38,650,598			32,695,269
Fixed assets
Machinery and equipment		9,395,987			9,395,987
Leasehold improvements	1,787,269			1,749,284
		11,183,256			11,145,271
Less accumulated depreciation and amortization	9,941,949			9,819,888
Net fixed assets		1,241,307			1,325,383
Deferred tax assets	603,074			572,655
Marketable securities, long-term	46,558,228			52,838,158
Total assets	$	87,053,207		$	87,431,465
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	388,413		$	414,970
Accrued payroll and other	507,030			574,755
Income taxes payable	720,012			-
Total current liabilities		1,615,455			989,725
Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,842,010 issued and outstanding as of June 30, 2018 and March 31, 2018		48,420			48,420
Additional paid-in capital		19,599,298			19,599,298
Accumulated other comprehensive loss		(1,083,027	)		(915,635	)
Retained earnings	66,873,061			67,709,657
Total shareholders’ equity	85,437,752			86,441,740
Total liabilities and shareholders’ equity	$	87,053,207		$	87,431,465

*The March 31, 2018 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, 2018.

See accompanying notes.


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NVE CORPORATION
STATEMENTS OF INCOME
(Unaudited)

	Quarter Ended June 30
	2018		2017
Revenue
Product sales	$	6,870,646	$	6,882,673
Contract research and development	237,260		724,993
Total revenue		7,107,906		7,607,666
Cost of sales	1,396,005		1,798,366
Gross profit		5,711,901		5,809,300
Expenses
Research and development		989,026		905,725
Selling, general, and administrative	328,761		399,361
Total expenses	1,317,787		1,305,086
Income from operations		4,394,114		4,504,214
Interest income	424,770		361,778
Income before taxes		4,818,884		4,865,992
Provision for income taxes	873,835		1,568,377
Net income	$	3,945,049	$	3,297,615
Net income per share – basic	$	0.81	$	0.68
Net income per share – diluted	$	0.81	$	0.68
Cash dividends declared per common share	$	1.00	$	1.00
Weighted average shares outstanding
Basic		4,842,010		4,841,010
Diluted		4,850,479		4,846,251

STATEMENTS OF COMPREHENSIVE INCOME
     (Unaudited)

	Quarter Ended June 30
	2018			2017
Net income	$	3,945,049		$	3,297,615
Unrealized (loss) gain from marketable securities, net of tax	(107,027		)	55,027
Comprehensive income	$	3,838,022		$	3,352,642

 
 
See accompanying notes.


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NVE CORPORATION
STATEMENTS OF CASH FLOWS
(Unaudited)

 

	Quarter Ended June 30
	2018			2017
OPERATING ACTIVITIES
Net income	$	3,945,049		$	3,297,615
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		179,746			242,160
Deferred income taxes		(443	)		(84,210	)
Changes in operating assets and liabilities:
Accounts receivable		(231,994	)		305,836
Inventories		28,758			109,553
Prepaid expenses and other assets		103,053			9,334
Accounts payable and accrued expenses		625,730			1,449,379
Deferred revenue		-			(107,100	)
Net cash provided by operating activities		4,649,899			5,222,567
INVESTING ACTIVITIES
Purchases of fixed assets		(37,985	)		(393,398	)
Purchases of marketable securities		(3,373,125	)		(3,809,610	)
Proceeds from maturities of marketable securities		7,300,000			-
Cash provided by (used in) investing activities		3,888,890			(4,203,008	)
FINANCING ACTIVITIES
Payment of dividends to shareholders		(4,842,010	)		(4,841,010	)
Cash used in financing activities		(4,842,010	)		(4,841,010	)
Increase (decrease) in cash and cash equivalents		3,696,779			(3,821,451	)
Cash and cash equivalents at beginning of period	4,755,082			8,199,364
Cash and cash equivalents at end of period	$	8,451,861		$	4,377,913
Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes	$	11,222		$	-

 
 
See accompanying notes.


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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, 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, 2018. The results of operations for the quarter ended June 30, 2018 are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2019.

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 selling, general, and administrative expenses. 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, 2018 or March 31, 2018.

     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.
 
 

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 NOTE 3. RECENTLY ISSUED ACCOUNTING STANDARDS
Recently Adopted Accounting Standards
     In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). ASU 2018-02 addresses the effect of the change in the U.S. federal corporate tax rate on items within accumulated other comprehensive income or loss due to the enactment of the Act “To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018” (the “Tax Reform Act”) on December 22, 2017. The guidance will be effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, which will be fiscal 2020 for us. Early adoption is permitted, and we adopted ASU 2018-02 in the quarter ended June 30, 2018. The adoption resulted in a $60,365 reclassification from accumulated other comprehensive loss to retained earnings due to the change in the federal corporate tax rate.
 
     In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments, which made eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. We adopted ASU 2016-15 retrospectively in the quarter ended June 30, 2018. The adoption did not have a significant impact on our financial statements.

     In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The amendment changed the accounting for and financial statement presentation of equity investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee. The amendment provides clarity on the measurement methodology to be used for the required disclosure of fair value of financial instruments measured at amortized cost on the balance sheet and clarifies that an entity should evaluate the need for a valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets, among other changes. We adopted ASU 2016-01 retrospectively in the quarter ended June 30, 2018. The adoption did not have a significant impact on our financial statements.
 
     In May 2014, the FASB issued ASU No. 2014-09, which superseded the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. We adopted the guidance using the modified retrospective method to contracts that were not complete as of April 1, 2018. The adoption did not have significant impact on our financial statements.
 
 

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     Information regarding all other applicable recently issued accounting standards, on which our position have not changed since our latest annual financial statements, are contained in the financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2018.

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 table shows the components of diluted shares:
 

	Quarter Ended June 30
	2018	2017
Weighted average common shares outstanding – basic	4,842,010	4,841,010
Dilutive effect of stock options	8,469	5,241
Shares used in computing net income per share – diluted	4,850,479	4,846,251

 
 
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.

    The fair value of our available-for-sale securities as of June 30, 2018 by maturity were as follows:

Total		<1 Year		1–3 Years		3–5 Years
$	77,648,829	$	31,090,601	$	21,634,678	$	24,923,550

 
     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.

 

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     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.” We recategorized our Level 1 corporate bond holdings to Level 2 as of June 30, 2018 based on our ongoing analysis of the individual securities. As a result, bonds with a total fair value of $51,558,274 as of June 30, 2018 were recategorized from Level 1 to Level 2. We do not have any financial assets or liabilities being measured at fair value that are classified as Level 3 financial instruments.

     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, 2018						As of March 31, 2018
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	8,166,425	$	-	$	8,166,425	$	3,951,032	$	-	$	3,951,032
Corporate bonds		-		69,482,404		69,482,404		54,517,969		19,085,998		73,603,967
Total	$	8,166,425	$	69,482,404	$	77,648,829	$	58,469,001	$	19,085,998	$	77,554,999

     Our available-for-sale securities as of June 30 and March 31, 2018, aggregated into classes of securities, were as follows:

	As of June 30, 2018									As of March 31, 2018
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market    funds	$	8,166,425	$	-	$	-		$	8,166,425	$	3,951,032	$	-	$	-		$	3,951,032
Corporate bonds		70,868,766		-		(1,386,363	)		69,482,404		74,853,327		-		(1,249,360	)		73,603,967
Total	$	79,035,191	$	-	$	(1,386,363	)	$	77,648,829	$	78,804,359	$	-	$	(1,249,360	)	$	77,554,999

 
     The following table shows the gross unrealized holding losses and fair value of our available-for-sale securities with unrealized holding losses, aggregated by class of securities and length of time that individual securities had been in a continuous unrealized loss position as of June 30 and March 31, 2018.

		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, 2018
	Corporate bonds	$	57,948,027	$	(1,122,499	)	$	11,534,377	$	(263,864	)	$	69,482,404	$	(1,386,363	)
	Total	$	57,948,027	$	(1,122,499	)	$	11,534,377	$	(263,864	)	$	69,482,404	$	(1,386,363	)
As of March 31, 2018
	Corporate bonds	$	61,731,248	$	(1,003,849	)	$	9,072,719	$	(245,511	)	$	70,803,967	$	(1,249,360	)
	Total	$	61,731,248	$	(1,003,849	)	$	9,072,719	$	(245,511	)	$	70,803,967	$	(1,249,360	)

 
     We did not consider any of our available-for-sale securities to be impaired as of June 30, 2018. None of the securities were impaired at acquisition, and subsequent declines in fair value are not attributed to declines in credit quality. When evaluating for impairment we assess indicators that include, but are not limited to, earnings performance, changes in underlying credit ratings, market conditions, bona fide offers to purchase or sell, and ability to hold until maturity. Because we believe it is more likely than not we will recover the cost basis of our investments, we did not consider any of our marketable securities to be impaired as of June 30, 2018.
 
 

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NOTE 6. INVENTORIES
     Inventories are shown in the following table:

	June 30, 2018		March 31, 2018
Raw materials	$	1,064,517	$	1,084,030
Work in process		1,889,635		1,828,492
Finished goods	667,529		737,917
Total inventories	$	3,621,681	$	3,650,439

NOTE 7. STOCK-BASED COMPENSATION
     There were no stock-based compensation expenses for the first quarters of fiscal 2019 or 2018.
 
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.

     The Act “To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018” (the “Tax Reform Act”) was enacted December 22, 2017. The Tax Reform Act reduced certain Federal corporate income tax rates effective January 1, 2018 and changed certain other provisions. As a result of the Tax Reform Act, our tax rate decreased from 30% for fiscal 2018 to an estimated 18% for fiscal 2019.
 
     We had no unrecognized tax benefits as of June 30, 2018, 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, 2018 we had no accrued interest related to uncertain tax positions. The tax years 1999 and 2014 through 2017 remain open to examination by the major taxing jurisdictions to which we are subject.
 
NOTE 9. 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, and on August 27, 2015 we announced that our Board authorized $5,000,000 of additional repurchases. We did not repurchase any of our Common Stock under the program during the quarter ended June 30, 2018. The remaining authorization was $4,540,806 as of June 30, 2018. The Repurchase Program may be modified or discontinued at any time without notice.

NOTE 10. SUBSEQUENT EVENTS
     On July 18, 2018 we announced that our Board had declared a quarterly cash dividend of $1.00 per share of Common Stock to be paid August 31, 2018 to shareholders of record as of the close of business July 30, 2018.

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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 contract research and development revenue, uncertainties related to the impact of Federal tax reform, 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, 2018.

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. We have also licensed our spintronic magnetoresistive random access memory technology, commonly known as MRAM.

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, 2018. As of June 30, 2018 our critical accounting policies and estimates continued to include investment valuation, inventory valuation, and deferred tax assets estimation.
 
 

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Quarter ended June 30, 2018 compared to quarter ended June 30, 2017
     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
	2018		2017
Revenue
Product sales	96.7	%	90.5	%	(0.2	)%
Contract research and development	3.3	%	9.5	%	(67.3	)%
Total revenue	100.0	%	100.0	%	(6.6	)%
Cost of sales	19.6	%	23.6	%	(22.4	)%
Gross profit	80.4	%	76.4	%	(1.7	)%
Expenses
Research and development	13.9	%	11.9	%	9.2	%
Selling, general, and administrative	4.7	%	5.3	%	(17.7	)%
Total expenses	18.6	%	17.2	%	1.0	%
Income from operations	61.8	%	59.2	%	(2.4	)%
Interest income	6.0	%	4.7	%	17.4	%
Income before taxes	67.8	%	63.9	%	(1.0	)%
Provision for income taxes	12.3	%	20.6	%	(44.3	)%
Net income	55.5	%	43.3	%	19.6	%

 
     Total revenue for the quarter ended June 30, 2018 (the first quarter of fiscal 2019) decreased 7% compared to the quarter ended June 30, 2017 (the first quarter of fiscal 2018). The decrease was primarily due to a 67% decrease in contract research and development revenue. The decrease in contract research and development revenue was due to the completion of certain contracts.

     Gross profit margin increased to 80% of revenue for the first quarter of fiscal 2018, compared to 76% for the first quarter of fiscal 2018, due to a more profitable revenue mix.

     Total expenses increased 1% for the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018, due to a 9% increase in research and development expense, partially offset by an 18% decrease in selling, general, and administrative expense. The increase in research and development expense was due to increased new product development activities. The decrease in selling, general, and administrative expense was due to staffing changes and decreased performance-based compensation.

     Interest income for the first quarter of fiscal 2019 increased 17% due to an increase in the average interest rates on our marketable securities, partially offset by a decrease in our securities.

     Our effective tax rate was 18% of net income before taxes for the quarter, compared to 32% in the prior-year quarter. The decrease was due to the effect of a decrease in the Federal tax rate and certain other provisions with the enactment of the Tax Reform Act. See Note 8 to the financial statements for more information on income taxes.

     The 20% increase in net income in the first quarter of fiscal 2019 compared to the prior-year quarter was primarily due to a decrease in the provision for income taxes and increased gross profit margin.
 
 

12

Table of Contents
 
Liquidity and capital resources
Overview
     Cash and cash equivalents were $8,451,861 as of June 30, 2018 compared to $4,755,082 as of March 31, 2018. The $3,696,779 increase in cash and cash equivalents during the quarter ended June 30, 2018 was due to $4,649,899 in net cash provided by operating activities and $3,888,890 of cash provided by investing activities, partially offset by $4,842,010 of cash used in financing activities. We currently believe our working capital and cash generated from operations will be adequate for our needs at least for the next 12 months.

Investing Activities
     Cash provided by investing activities in the quarter ended June 30, 2018 was due to $7,300,000 of marketable security maturities, partially offset by $3,373,125 of purchases of marketable securities and $37,985 of purchases of fixed assets.
 
Financing Activities
     Cash used in financing activities in the first quarter of fiscal 2019 was due to a $4,842,010 quarterly dividend paid to shareholders. In addition to the dividend paid in the first quarter of fiscal 2019, on July 18, 2018 we announced that our Board had declared a cash quarterly dividend of $1.00 per share of common stock, or $4,842,010 based on shares outstanding as of July 13, 2018, to be paid August 31, 2018. We plan to fund dividends through cash provided by operating activities and proceeds from maturities and sales 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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.
     As discussed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, we are exposed to financial market risks, primarily marketable securities and, to a lesser extent, changes in currency exchange rates.
 
Available-For-Sale Securities
     The primary objective of our investment activities is to preserve principal while at the same time maximizing after-tax yields without significantly increasing risk. To achieve this objective, we maintain our portfolio of cash equivalents and marketable securities in securities including municipal obligations, corporate obligations, and money market funds. Available-for-sale securities are recorded on the balance sheet at fair value with unrealized gains or losses reported as a separate component of accumulated other comprehensive income or loss, net of estimated tax. Our marketable securities as of June 30, 2018 had remaining maturities between 10 and 236 weeks. Available-for-sale securities had a market value of $77,648,829 as of June 30, 2018, representing approximately 89% of our total assets. We have not used derivative financial instruments in our investment portfolio.

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 of June 30, 2018, our disclosure controls and procedures were effective.

Changes in Internal Controls
     Beginning April 1, 2018, we implemented ASC Topic 606, Revenue from Contracts with Customers. Although the new revenue recognition standard is expected to have an immaterial impact on our ongoing net income (loss), we implemented changes to our processes related to revenue recognition and the control activities within them. These included the development of new policies based on the five-step model provided in the new revenue recognition standard, new training, contract review requirements, and the gathering of information provided for disclosures. See Note 2 to our Financial Statements for additional information regarding our adoption of the new accounting standard.
 
 

13

Table of Contents

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, 2018.

Item 4. Mine Safety Disclosures.
     Not applicable.
 
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

14

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 18, 2018	/s/ DANIEL A. BAKER
Date	Daniel A. Baker
	President and Chief Executive Officer
July 18, 2018	/s/ CURT A. REYNDERS
Date	Curt A. Reynders
	Chief Financial Officer

 
 
 

15

EX-31

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 18, 2018

 

/s/ DANIEL A. BAKER

Daniel A. Baker

President and Chief Executive Officer

EX-31

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 18, 2018

 

/s/ CURT A. REYNDERS

Curt A. Reynders

Chief Financial Officer

EX-32

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, 2018, 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 18, 2018

/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.

XML

Document And Entity Information - shares	3 Months Ended
	Jun. 30, 2018	Jul. 13, 2018
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	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		4,842,010
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2018	Mar. 31, 2018	[1]
ASSETS
Cash and cash equivalents	$ 8,451,861	$ 4,755,082
Marketable securities, short-term	22,924,176	20,765,809
Accounts receivable, net of allowance for uncollectible accounts of $15,000	3,120,773	2,888,779
Inventories	3,621,681	3,650,439
Prepaid expenses and other assets	532,107	635,160
Total current assets	38,650,598	32,695,269
Fixed assets
Machinery and equipment	9,395,987	9,395,987
Leasehold improvements	1,787,269	1,749,284
	11,183,256	11,145,271
Less accumulated depreciation and amortization	9,941,949	9,819,888
Net fixed assets	1,241,307	1,325,383
Deferred tax assets	603,074	572,655
Marketable securities, long-term	46,558,228	52,838,158
Total assets	87,053,207	87,431,465
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	388,413	414,970
Accrued payroll and other	507,030	574,755
Income taxes payable	720,012
Total current liabilities	1,615,455	989,725
Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,842,010 issued and outstanding as of June 30, 2018 and March 31, 2018	48,420	48,420
Additional paid-in capital	19,599,298	19,599,298
Accumulated other comprehensive loss	(1,083,027)	(915,635)
Retained earnings	66,873,061	67,709,657
Total shareholders’ equity	85,437,752	86,441,740
Total liabilities and shareholders’ equity	$ 87,053,207	$ 87,431,465

[1] The March 31, 2018 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, 2018.

XML

Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2018	Mar. 31, 2018	[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)	4,842,010	4,842,010
Common stock, shares outstanding (in shares)	4,842,010	4,842,010

[1] The March 31, 2018 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, 2018.

XML

Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Revenue
Revenue	$ 7,107,906	$ 7,607,666
Cost of sales	1,396,005	1,798,366
Gross profit	5,711,901	5,809,300
Expenses
Research and development	989,026	905,725
Selling, general, and administrative	328,761	399,361
Total expenses	1,317,787	1,305,086
Income from operations	4,394,114	4,504,214
Interest income	424,770	361,778
Income before taxes	4,818,884	4,865,992
Provision for income taxes	873,835	1,568,377
Net income	$ 3,945,049	$ 3,297,615
Net income per share – basic (in dollars per share)	$ 0.81	$ 0.68
Net income per share – diluted (in dollars per share)	0.81	0.68
Cash dividends declared per common share (in dollars per share)	$ 1	$ 1
Weighted average shares outstanding
Basic (in shares)	4,842,010	4,841,010
Diluted (in shares)	4,850,479	4,846,251
Product [Member]
Revenue
Revenue	$ 6,870,646	$ 6,882,673
Contract Research and Development [Member]
Revenue
Revenue	$ 237,260	$ 724,993

XML

Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Net income	$ 3,945,049	$ 3,297,615
Unrealized (loss) gain from marketable securities, net of tax	(107,027)	55,027
Comprehensive income	$ 3,838,022	$ 3,352,642

XML

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2018		Jun. 30, 2017
OPERATING ACTIVITIES
Net income	$ 3,945,049		$ 3,297,615
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	179,746		242,160
Deferred income taxes	(443)		(84,210)
Changes in operating assets and liabilities:
Accounts receivable	(231,994)		305,836
Inventories	28,758		109,553
Prepaid expenses and other assets	103,053		9,334
Accounts payable and accrued expenses	625,730		1,449,379
Deferred revenue			(107,100)
Net cash provided by operating activities	4,649,899		5,222,567
INVESTING ACTIVITIES
Purchases of fixed assets	(37,985)		(393,398)
Purchases of marketable securities	(3,373,125)		(3,809,610)
Proceeds from maturities of marketable securities	7,300,000
Cash provided by (used in) investing activities	3,888,890		(4,203,008)
FINANCING ACTIVITIES
Payment of dividends to shareholders	(4,842,010)		(4,841,010)
Cash used in financing activities	(4,842,010)		(4,841,010)
Increase (decrease) in cash and cash equivalents	3,696,779		(3,821,451)
Cash and cash equivalents at beginning of period	4,755,082	[1]	8,199,364
Cash and cash equivalents at end of period	8,451,861		4,377,913
Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes	$ 11,222

[1] The March 31, 2018 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, 2018.

XML

Note 1 - Description of Business

3 Months Ended

Jun. 30, 2018

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.
 

XML

Note 2 - Basis of Presentation and Significant Accounting Policies

3 Months Ended

Jun. 30, 2018

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, 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,

2018.

The results of operations for the quarter ended

June 

30,

2018

are

not

necessarily indicative of the results that

may

be expected for the full fiscal year ending

March 

31,

2019.

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 selling, general, and administrative expenses. 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,

2018

or

March 

31,

2018.

     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.

XML

Note 3 - Recently Issued Accounting Standards

3 Months Ended

Jun. 30, 2018

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

NOTE

3.

RECENTLY ISSUED ACCOUNTING STANDARDS

Recently Adopted Accounting Standards

     In

February 2018,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2018

-

02,

Income Statement—Reporting Comprehensive Income (Topic

220

)

. ASU

2018

-

02

addresses the effect of the change in the U.S. federal corporate tax rate on items within accumulated other comprehensive income or loss due to the enactment of the Act “To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year

2018”

(the “Tax Reform Act”) on

December 

22,

2017.

The guidance will be effective for fiscal years beginning after

December 

15,

2018,

and interim periods within those fiscal years, which will be fiscal

2020

for us. Early adoption is permitted, and we adopted ASU

2018

-

02

in the quarter ended

June 

30,

2018.

The adoption resulted in a

$60,365

reclassification from accumulated other comprehensive loss to retained earnings due to the change in the federal corporate tax rate.
 
     In

August 2016,

the FASB issued ASU

No.

2016

-

15,

Statement of Cash Flows (Topic

230

), Classification of Certain Cash Receipts and Cash Payments

, which made

eight

targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. We adopted ASU 

2016

-

15

retrospectively in the quarter ended

June 

30,

2018.

The adoption did

not

have a significant impact on our financial statements.

     In

January 2016,

the FASB issued ASU

No.

2016

-

01,

Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities

. The amendment changed the accounting for and financial statement presentation of equity investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee. The amendment provides clarity on the measurement methodology to be used for the required disclosure of fair value of financial instruments measured at amortized cost on the balance sheet and clarifies that an entity should evaluate the need for a valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets, among other changes. We adopted ASU

2016

-

01

retrospectively in the quarter ended

June 

30,

2018.

The adoption did

not

have a significant impact on our financial statements.
  

     In

May 2014,

the FASB issued ASU 

No.

2014

-

09,

which superseded the revenue recognition requirements in Accounting Standards Codification

605,

Revenue Recognition

. ASU 

2014

-

09

is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. We adopted the guidance using the modified retrospective method to contracts that were

not

complete as of

April 1, 2018.

The adoption did

not

have significant impact on our financial statements.

 
     Information regarding all other applicable recently issued accounting standards, on which our position have

not

changed since our latest annual financial statements, are contained in the financial statements included in our Annual Report on Form

10

-K for the year ended

March 

31,

2018.

 

XML

Note 4 - Net Income Per Share

3 Months Ended

Jun. 30, 2018

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 table shows the components of diluted shares:
 

	Quarter Ended June 30
	2018		2017
Weighted average common shares outstanding – basic		4,842,010		4,841,010
Dilutive effect of stock options		8,469		5,241
Shares used in computing net income per share – diluted		4,850,479		4,846,251

XML

Note 5 - Fair Value of Financial Instruments

3 Months Ended

Jun. 30, 2018

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.

    The fair value of our available-for-sale securities as of

June 

30,

2018

by maturity were as follows:

Total		<1 Year		1–3 Years		3–5 Years
$	77,648,829	$	31,090,601	$	21,634,678	$	24,923,550

 
     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.” We recategorized our Level 

1

corporate bond holdings to Level 

2

as of

June 

30,

2018

based on our ongoing analysis of the individual securities. As a result, bonds with a total fair value of

$51,558,274

as of

June 

30,

2018

were recategorized from Level 

1

to Level 

2.

We do

not

have any financial assets or liabilities being measured at fair value that are classified as Level 

3

financial instruments.

     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, 2018						As of March 31, 2018
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	8,166,425	$	-	$	8,166,425	$	3,951,032	$	-	$	3,951,032
Corporate bonds		-		69,482,404		69,482,404		54,517,969		19,085,998		73,603,967
Total	$	8,166,425	$	69,482,404	$	77,648,829	$	58,469,001	$	19,085,998	$	77,554,999

     Our available-for-sale securities as of

June 

30

and

March 

31,

2018,

aggregated into classes of securities, were as follows:

	As of June 30, 2018									As of March 31, 2018
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	8,166,425	$	-	$	-		$	8,166,425	$	3,951,032	$	-	$	-		$	3,951,032
Corporate bonds		70,868,766		-		(1,386,363	)		69,482,404		74,853,327		-		(1,249,360	)		73,603,967
Total	$	79,035,191	$	-	$	(1,386,363	)	$	77,648,829	$	78,804,359	$	-	$	(1,249,360	)	$	77,554,999

 
     The following table shows the gross unrealized holding losses and fair value of our available-for-sale securities with unrealized holding losses, aggregated by class of securities and length of time that individual securities had been in a continuous unrealized loss position as of

June 

30

and

March 

31,

2018.

	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, 2018
Corporate bonds	$	57,948,027	$	(1,122,499	)	$	11,534,377	$	(263,864	)	$	69,482,404	$	(1,386,363	)
Total	$	57,948,027	$	(1,122,499	)	$	11,534,377	$	(263,864	)	$	69,482,404	$	(1,386,363	)
As of March 31, 2018
Corporate bonds	$	61,731,248	$	(1,003,849	)	$	9,072,719	$	(245,511	)	$	70,803,967	$	(1,249,360	)
Total	$	61,731,248	$	(1,003,849	)	$	9,072,719	$	(245,511	)	$	70,803,967	$	(1,249,360	)

 
     We did

not

consider any of our available-for-sale securities to be impaired as of

June 

30,

2018.

None

of the securities were impaired at acquisition, and subsequent declines in fair value are

not

attributed to declines in credit quality. When evaluating for impairment we assess indicators that include, but are

not

limited to, earnings performance, changes in underlying credit ratings, market conditions, bona fide offers to purchase or sell, and ability to hold until maturity. Because we believe it is more likely than

not

we will recover the cost basis of our investments, we did

not

consider any of our marketable securities to be impaired as of

June 

30,

2018.

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Note 6 - Inventories

3 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE

6.

INVENTORIES

     Inventories are shown in the following table:

	June 30, 2018		March 31, 2018
Raw materials	$	1,064,517	$	1,084,030
Work in process		1,889,635		1,828,492
Finished goods		667,529		737,917
Total inventories	$	3,621,681	$	3,650,439

XML

Note 7 - Stock-based Compensation

3 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE

7.

STOCK-BASED COMPENSATION

     There were

no

stock-based compensation expenses for the

first

quarters of fiscal

2019

or

2018.

 

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Note 8 - Income Taxes

3 Months Ended

Jun. 30, 2018

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.

     The Act “To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year

2018”

(the “Tax Reform Act”) was enacted

December 

22,

2017.

The Tax Reform Act reduced certain Federal corporate income tax rates effective

January 

1,

2018

and changed certain other provisions. As a result of the Tax Reform Act, our tax rate decreased from

30%

for fiscal

2018

to an estimated

18%

for fiscal

2019.

 
     We had

no

unrecognized tax benefits as of

June 

30,

2018,

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,

2018

we had

no

accrued interest related to uncertain tax positions. The tax years

1999

and

2014

through

2017

remain open to examination by the major taxing jurisdictions to which we are subject.

XML

Note 9 - Stock Repurchase Program

3 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Stock Repurchase Plan Disclosure [Text Block]

NOTE

9.

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, and on

August 

27,

2015

we announced that our Board authorized

$5,000,000

of additional repurchases. We did

not

repurchase any of our Common Stock under the program during the quarter ended

June 

30,

2018.

The remaining authorization was

$4,540,806

as of

June 

30,

2018.

The Repurchase Program

may

be modified or discontinued at any time without notice.
 

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Note 10 - Subsequent Events

3 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE

10.

SUBSEQUENT EVENTS

     On

July 

18,

2018

we announced that our Board had declared a quarterly cash dividend of

$1.00

per share of Common Stock to be paid

August 

31,

2018

to shareholders of record as of the close of business

July 

30,

2018

.

XML

Significant Accounting Policies (Policies)

3 Months Ended

Jun. 30, 2018

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, 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,

2018.

The results of operations for the quarter ended

June 

30,

2018

are

not

necessarily indicative of the results that

may

be expected for the full fiscal year ending

March 

31,

2019.

Revenue Recognition, Sales of Goods [Policy Text Block]

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 selling, general, and administrative expenses. 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,

2018

or

March 

31,

2018.

     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.

XML

Note 4 - Net Income Per Share (Tables)

3 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Weighted Average Number of Shares [Table Text Block]

	Quarter Ended June 30
	2018		2017
Weighted average common shares outstanding – basic		4,842,010		4,841,010
Dilutive effect of stock options		8,469		5,241
Shares used in computing net income per share – diluted		4,850,479		4,846,251

XML

Note 5 - Fair Value of Financial Instruments (Tables)

3 Months Ended

Jun. 30, 2018

Notes Tables

Investments Classified by Contractual Maturity Date [Table Text Block]

Total		<1 Year		1–3 Years		3–5 Years
$	77,648,829	$	31,090,601	$	21,634,678	$	24,923,550

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	As of June 30, 2018						As of March 31, 2018
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	8,166,425	$	-	$	8,166,425	$	3,951,032	$	-	$	3,951,032
Corporate bonds		-		69,482,404		69,482,404		54,517,969		19,085,998		73,603,967
Total	$	8,166,425	$	69,482,404	$	77,648,829	$	58,469,001	$	19,085,998	$	77,554,999

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

	As of June 30, 2018									As of March 31, 2018
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	8,166,425	$	-	$	-		$	8,166,425	$	3,951,032	$	-	$	-		$	3,951,032
Corporate bonds		70,868,766		-		(1,386,363	)		69,482,404		74,853,327		-		(1,249,360	)		73,603,967
Total	$	79,035,191	$	-	$	(1,386,363	)	$	77,648,829	$	78,804,359	$	-	$	(1,249,360	)	$	77,554,999

Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value [Table Text Block]

	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, 2018
Corporate bonds	$	57,948,027	$	(1,122,499	)	$	11,534,377	$	(263,864	)	$	69,482,404	$	(1,386,363	)
Total	$	57,948,027	$	(1,122,499	)	$	11,534,377	$	(263,864	)	$	69,482,404	$	(1,386,363	)
As of March 31, 2018
Corporate bonds	$	61,731,248	$	(1,003,849	)	$	9,072,719	$	(245,511	)	$	70,803,967	$	(1,249,360	)
Total	$	61,731,248	$	(1,003,849	)	$	9,072,719	$	(245,511	)	$	70,803,967	$	(1,249,360	)

XML

Note 6 - Inventories (Tables)

3 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 30, 2018		March 31, 2018
Raw materials	$	1,064,517	$	1,084,030
Work in process		1,889,635		1,828,492
Finished goods		667,529		737,917
Total inventories	$	3,621,681	$	3,650,439

XML

Note 3 - Recently Issued Accounting Standards (Details Textual)	3 Months Ended
	Jun. 30, 2018 USD ($)
Accounting Standards Update 2018-02 [Member]
Tax Cuts and Jobs Act of 2017 Reclassification from AOCI to Retained Earnings Tax Effect	$ 60,365

XML

Note 4 - Net Income Per Share - Components of Common Shares Outstanding (Details) - shares	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Weighted average common shares outstanding – basic (in shares)	4,842,010	4,841,010
Dilutive effect of stock options (in shares)	8,469	5,241
Shares used in computing net income per share – diluted (in shares)	4,850,479	4,846,251

XML

Note 5 - Fair Value of Financial Instruments (Details Textual) xbrli-pure in Thousands	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)
Debt Securities, Available-for-sale, Total	$ 77,648,829	$ 77,554,999
Number of Other-than-temporarily Impaired Available-for-sale Securities	0
Number of Other-than-temporarily Impaired Marketable Securities	0
Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure	$ 0
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0
Corporate Bond Securities [Member]
Debt Securities, Available-for-sale, Total	69,482,404	$ 73,603,967
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Debt Securities, Available-for-sale, Total	$ 51,558,274

XML

Note 5 - Fair Value of Financial Instruments - Fair Value of Available-for-sale Securities (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Total	$ 77,648,829	$ 77,554,999
Less than 1 year	31,090,601
1-3 years	21,634,678
3-5 years	$ 24,923,550

XML

Note 5 - Fair Value of Financial Instruments - Assets Measured on Recurring Basis (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Total	$ 77,648,829	$ 77,554,999
Money Market Funds [Member]
Total	8,166,425	3,951,032
Corporate Bond Securities [Member]
Total	69,482,404	73,603,967
Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member]
Total	51,558,274
Fair Value, Measurements, Recurring [Member]
Total	77,648,829	77,554,999
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member]
Total	8,166,425	3,951,032
Fair Value, Measurements, Recurring [Member] | Corporate Bond Securities [Member]
Total	69,482,404	73,603,967
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Total	8,166,425	58,469,001
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Total	8,166,425	3,951,032
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Bond Securities [Member]
Total		54,517,969
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Total	69,482,404	19,085,998
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Total
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member]
Total	$ 69,482,404	$ 19,085,998

XML

Note 5 - Fair Value of Financial Instruments - Reconciliation of Available-for-sale Securities (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Amortized Cost	$ 79,035,191	$ 78,804,359
Gross Unrealized Holding Gains
Gross Unrealized Holding Losses	(1,386,363)	(1,249,360)
Debt Securities, Available-for-sale, Total	77,648,829	77,554,999
Money Market Funds [Member]
Amortized Cost	8,166,425	3,951,032
Gross Unrealized Holding Gains
Gross Unrealized Holding Losses
Debt Securities, Available-for-sale, Total	8,166,425	3,951,032
Corporate Bond Securities [Member]
Amortized Cost	70,868,766	74,853,327
Gross Unrealized Holding Gains
Gross Unrealized Holding Losses	(1,386,363)	(1,249,360)
Debt Securities, Available-for-sale, Total	$ 69,482,404	$ 73,603,967

XML

Note 5 - Fair Value of Financial Instruments - Investment Securities With Unrealized Losses (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Fair market value, less than 12 months	$ 57,948,027	$ 61,731,248
Gross unrealized losses, less than 12 months	(1,122,499)	(1,003,849)
Fair market value, 12 months or greater	11,534,377	9,072,719
Gross unrealized losses, 12 months or greater	(263,864)	(245,511)
Total fair market value	69,482,404	70,803,967
Total gross unrealized losses	(1,386,363)	(1,249,360)
Corporate Bond Securities [Member]
Fair market value, less than 12 months	57,948,027	61,731,248
Gross unrealized losses, less than 12 months	(1,122,499)	(1,003,849)
Fair market value, 12 months or greater	11,534,377	9,072,719
Gross unrealized losses, 12 months or greater	(263,864)	(245,511)
Total fair market value	69,482,404	70,803,967
Total gross unrealized losses	$ (1,386,363)	$ (1,249,360)

XML

Note 6 - Inventories - Summary of Inventories (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Raw materials	$ 1,064,517	$ 1,084,030
Work in process	1,889,635	1,828,492
Finished goods	667,529	737,917
Total inventories	$ 3,621,681	$ 3,650,439	[1]

[1] The March 31, 2018 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, 2018.

XML

Note 7 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Allocated Share-based Compensation Expense, Total	$ 0	$ 0

XML

Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Mar. 31, 2019	Mar. 31, 2018
Effective Income Tax Rate Reconciliation, Percent, Total			30.00%
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	1999
Earliest Tax Year [Member]
Open Tax Year	2014
Latest Tax Year [Member]
Open Tax Year	2017
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, Percent, Total		18.00%

XML

Note 9 - Stock Repurchase Program (Details Textual) - Repurchase Program 2009 [Member] - USD ($)	3 Months Ended
	Jun. 30, 2018	Aug. 27, 2015	Jan. 21, 2009
Stock Repurchase Program, Authorized Amount			$ 2,500,000
Stock Repurchase Program Authorized Additional Amount		$ 5,000,000
Stock Repurchased and Retired During Period, Value	$ 0
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 4,540,806

XML

Note 10 - Subsequent Events (Details Textual) - $ / shares		3 Months Ended
	Jul. 18, 2018	Jun. 30, 2018	Jun. 30, 2017
Common Stock, Dividends, Per Share, Declared		$ 1	$ 1
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared	$ 1
Subsequent Event [Member] | Common Stock [Member]
Dividends Payable, Date to be Paid	Aug. 31, 2018
Dividends Payable, Date of Record	Jul. 30, 2018