NVE CORP /NEW/ Leases Disclosure
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 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 the lease are as follows:
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| Year Ended March 31, | ||||||||||||
|
| 2026 |
| 2025 | ||||||||||
Operating lease cost |
| $ | 192,858 |
|
| $ | 168,449 |
| ||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||
Operating cash flows for leases |
| $ | 84,995 |
|
| $ | 182,271 |
| ||||||
Right-of-use assets obtained in exchange for new lease liabilities |
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|
|
|
|
|
|
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Operating lease |
| $ | 710,665 |
|
| $ | 710,665 |
| ||||||
Remaining lease term (months) |
|
| 62 |
|
| 74 |
| |||||||
Discount rate |
|
| 7.8 | % |
| 7.8 | % | |||||||
The following table presents the maturities of lease liabilities as of March 31, 2026:
Year Ending March 31, |
| Operating |
| ||
2027 |
|
| 172,142 |
| |
2028 |
|
| 213,284 |
| |
2029 |
|
| 220,216 |
| |
2030 |
|
| 227,373 |
| |
2031 |
|
| 234,762 |
| |
2032 |
|
| 40,399 |
| |
Total lease payments |
|
| 1,108,176 |
| |
Imputed lease interest |
|
| (202,637 | ) | |
Total lease liabilities |
| $ | 905,539 |
| |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 6, 2026 | Showing above |
| 2022 | May 4, 2022 | |
| 2021 | May 5, 2021 | |
| 2020 | May 6, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.