NOTE 5. MARKETABLE SECURITIES

9 Months Ended

Dec. 31, 2025

NOTE 5. MARKETABLE SECURITIES

The following table shows the major categories of our marketable securities and their contractual maturities as of December 31, 2025:

	Total		<1 Year		1–3 Years		3–4 Years
Money market funds	$	2,991,905	$	2,991,905	$	-	$	-
Treasury securities		4,731,027		-		4,731,027		-
Corporate bonds		35,866,932		17,156,488		14,695,231		4,015,213
Total	$	43,589,864	$	20,148,393	$	19,426,258	$	4,015,213

Total marketable securities and money market funds represented approximately 73% of our total assets as of December 31, 2025. Marketable securities as of December 31, 2025, had remaining maturities between three weeks and 40 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, long term.” Accrued interest receivables were $382,896 as of December 31, 2025, and $340,241 as of March 31, 2025, 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 summarizes the fair values of our marketable securities as of December 31, 2025, aggregated by credit rating:

Credit Rating		Fair Value
AAA	$	7,722,932
AA+		3,970,369
AA		4,952,313
AA-		13,808,329
A+		13,135,921
Total	$	43,589,864

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 December 31, 2025						As of March 31, 2025
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	2,991,905	$	-	$	2,991,905	$	7,905,042	$	-	$	7,905,042
Treasury securities		-		4,731,027		4,731,027		-		4,715,238		4,715,238
Corporate bonds		-		35,866,932		35,866,932		-		35,280,978		35,280,978
Total	$	2,991,905	$	40,597,959	$	43,589,864	$	7,905,042	$	39,996,216	$	47,901,258

Our available-for-sale securities as of December 31 and March 31, 2025, aggregated into classes of securities, were as follows:

	As of December 31, 2025									As of March 31, 2025
	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	$	2,991,905	$	-	$	-		$	2,991,905	$	7,905,042	$	-	$	-		$	7,905,042
Treasury securities		4,699,812		31,215		-			4,731,027		4,699,686		15,552		-			4,715,238
Corporate bonds		35,748,930		134,856		(16,854	)		35,866,932		35,384,272		55,858		(159,152	)		35,280,978
Total	$	43,440,647	$	166,071	$	(16,854	)	$	43,589,864	$	47,989,000	$	71,410	$	(159,152	)	$	47,901,258

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 December 31 and March 31, 2025.

	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 December 31, 2025
Corporate bonds	$	-	$	-		$	8,233,807	$	(16,854	)	$	8,233,807	$	(16,854	)
Total	$	-	$	-		$	8,233,807	$	(16,854	)	$	8,233,807	$	(16,854	)

As of March 31, 2025
Corporate bonds	$	7,323,059	$	(31,808	)	$	21,020,717	$	(127,344	)	$	28,343,776	$	(159,152	)
Total	$	7,323,059	$	(31,808	)	$	21,020,717	$	(127,344	)	$	28,343,776	$	(159,152	)

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 on our marketable securities and their tax effects are as follows:

	Quarter Ended December 31,
	2025			2024
Unrealized gain on marketable securities	$	33,798		$	(290,384	)
Tax effects		(7,395	)		63,536
Unrealized gain (loss) on marketable securities, net of tax	$	26,403		$	(226,848	)

	Nine Months Ended December 31,
	2025			2024
Unrealized gain on marketable securities	$	236,960		$	617,665
Tax effects		(51,847	)		(135,386	)
Unrealized gain on marketable securities, net of tax	$	185,113		$	482,279

NVE CORP /NEW/ 10-Q