NVE CORP /NEW/ Income Taxes Disclosure
NOTE 7. INCOME TAXES
Income tax provisions for fiscal 2025 and 2024 consisted of the following:
|
| Year Ended March 31, |
| |||||||
|
| 2025 |
|
| 2024 |
| ||||
Current taxes |
| |||||||||
Federal |
| $ | 3,403,776 |
|
| $ | 4,145,804 |
| ||
State |
|
| 182,414 |
|
|
| 200,926 |
| ||
Deferred taxes |
| |||||||||
Federal |
|
| (587,356 | ) |
|
| (963,470 | ) | ||
State |
|
| (24,613 | ) |
|
| (40,374 | ) | ||
Income tax provision |
| $ | 2,974,221 |
|
| $ | 3,342,886 |
| ||
A reconciliation of income tax provisions at the U.S. statutory rate for fiscal 2025 and 2024 is as follows:
|
| Year Ended March 31, |
| |||||
|
| 2025 |
|
| 2024 |
| ||
Tax expense at U.S. statutory rate |
| $ | 3,788,135 |
|
| $ | 4,298,193 |
|
State income taxes, net of Federal benefit |
|
| 158,741 |
|
|
| 180,115 |
|
R&D and manufacturing tax credits |
|
| (202,166 | ) |
|
| (68,894 | ) |
Tax effect of foreign-derived intangible income deduction |
|
| (816,143 | ) |
|
| (1,125,817 | ) |
Other |
|
| 45,654 |
|
|
| 59,289 |
|
Income tax provision |
| $ | 2,974,221 |
|
| $ | 3,342,886 |
|
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. Significant components of our deferred tax assets and liabilities as of March 31, 2025 and 2024 were as follows:
|
| March 31, |
| |||||
|
| 2025 |
|
| 2024 |
| ||
Paid time off accrual |
| $ | 67,594 |
|
| $ | 64,190 |
|
Inventory reserve |
|
| 47,042 |
|
|
| 47,042 |
|
Depreciation and amortization |
|
| (118,314 | ) |
|
| (127,839 | ) |
Stock-based compensation deductions |
|
| 118,810 |
|
|
| 101,668 |
|
Unrealized loss on marketable securities |
|
| 19,198 |
|
|
| 217,802 |
|
Section 174 R&D expense |
|
| 1,417,015 |
|
|
| 930,946 |
|
UNICAP 263A inventory |
|
| 311,729 |
|
|
| 202,339 |
|
Other |
|
| 3,995 |
|
|
| 17,556 |
|
Deferred tax assets |
| $ | 1,867,069 |
|
| $ | 1,453,704 |
|
We had no unrecognized tax benefits as of March 31, 2025, 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 March 31, 2025 we had no accrued interest related to uncertain tax positions. Federal and State taxes payable were $243,394 as of March 31, 2025 and estimated taxes overpayment was $31,250 as of March 31, 2024. The tax years ended March 31, 2021 through March 31, 2025 remain open to examination by the major taxing jurisdictions to which we are subject.
Want the next NVE CORP /NEW/ income taxes disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment NVE CORP /NEW/'s next filing hits EDGAR. No credit card, your email never gets sold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | May 7, 2025 | Showing above |
| 2024 | May 1, 2024 | |
| 2023 | May 3, 2023 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.