Accounting 2200 Project 2
Responses to the Form 10-K of NVE Corporation
Professor Jane Morton

Muhan Li, Madhur Mittal, Adam Rosen

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Question 1
NVE Corporation is in the business of nanotechnology, founded in 1989 in Minneapolis. NVE develops and sells devices that use a new technology known as “spintronics,” and was founded by James M. Daughton, Ph. D., and spintronics pioneer. NVE has been awarded $50 million+ in government research contracts, including more than 30 contracts to develop memory access and storage solutions using the groundbreaking spintronics technology, creating an expansive intellectual properties portfolio. As of March 31, 2012, NVE holds upwards of 50 US patents and a number of foreign patents pending. The company’s categories of production goods include: * Sensors and custom sensors, which are largely used in medical equipment. * Couplers, used in transmission of data. * MRAM, which has been called the “ideal or universal memory” because it takes the best features of each type of RAM before it and combines them.
The company invests heavily in research and development, and has furthered their groundbreaking development on their sensors, couplers, and memories. Additionally, NVE has completed research and development tasks that were awarded to them by external firms as well as the US Government. As of March 31, 2012, NVE has 58 salaried employees. The employees are not represented by a labor union, which in the case of a small business is beneficial. The company is currently engaged in a legal battle with Everspin Technologies regarding an intellectual dispute. NVE first filed charges against Everspin, ordering them to stop using NVE’s patented MRAM technology. Seven weeks later, Everspin filed a lawsuit citing similar charges; that NVE’s products infringe on two of