NVEC

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. 3 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. 4 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. 5 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. 6 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. 7 Table of Contents NVE CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1. DESCRIPTION OF BUSINESS We develop and sell devices that use spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store, and transmit information. NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited financial statements of NVE Corporation are prepared consistent with accounting principles generally accepted in the United States and in accordance with Securities and Exchange Commission rules and regulations. In the opinion of management, these financial statements reflect all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the financial statements. Although we believe that the disclosures are adequate to make the information presented not misleading, certain disclosures have been omitted as allowed, and 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. 8 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 9 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 10 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% 11 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. 12 Table of Contents