**Table of Contents**

----

----

|   |
|--------|
|   |

| **Minnesota**                                                | **41-1424202**                      |
|--------------------------------------------------------------|-------------------------------------|
| State or other jurisdiction of incorporation or organization | (I.R.S.Employer Identification No.) |
|                                                              |
| **11409 Valley View Road, Eden Prairie, Minnesota**          | **55344**                           |
| (Address of principal executive offices)                     | (Zip Code)                          |
|                                                              |

|                           Titleof each class                                   | Name of each exchange on which registered |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|
| **Common stock, $0.01 par value (“Common Stock”)**                                                                                                                                                                                                                                                                                                                               | **The NASDAQ Stock Market, LLC**          |
|                                                                                                                                                                                                                                                                                                                                                                                            |

|                                                                                                                               | Large accelerated filer [   ] | Accelerated filer [X] |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|-----------------------|
| Non-accelerated filer [   ]   (Do not check if a smaller reporting company) | Smaller reporting company [   ]              |
|   Emerging growth company [   ]                                                                      |

|   |
|--------|
|   |

----

----

PART I

Item 1. Business.

Our StrategyOur Products and Markets

Sensor Products and MarketsCoupler Products and MarketsMRAM Products and Markets

Product ManufacturingSales and Product DistributionNew Product StatusOur CompetitionSources and Availability of Raw MaterialsIntellectual PropertySeasonalityWorking Capital ItemsDependence on Major CustomersFirm BacklogResearch and Development ActivitiesEnvironmental MattersNumber of EmployeesFinancial Information About Geographic AreasAvailable Information

Item 1A. Risk Factors.Item 2. Properties.Item 3. Legal Proceedings.Item 4. Mine Safety Disclosures.

PART II

Item 5. Market for Registrant’sCommon Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Market InformationShareholdersDividendsSecurities Authorized for Issuance Under Equity Compensation PlansPerformance GraphStock Repurchase Program

Item 6. Selected Financial Data.Item 7. Management’s Discussion and Analysis of FinancialCondition and Results of Operations.

Item 7A. Quantitative and QualitativeDisclosures About Market Risk.Item 8. Financial Statements and Supplementary Data.Item 9A. Controls and Procedures.

PART III

Item 10. Directors, ExecutiveOfficers and Corporate Governance.Item 11. Executive Compensation.Item 12. Security Ownership of Certain Beneficial Owners andManagement and Related Stockholder Matters.Item 13. Certain Relationships and Related Transactions, andDirector Independence.Item 14. Principal Accounting Fees and Services.

PART IV

Item 15. Exhibits, FinancialStatement Schedules.

SIGNATURES

FINANCIAL STATEMENTS

Reports of Independent Registered Public Accounting FirmBalance SheetsStatements of IncomeStatements of Comprehensive IncomeStatements of Shareholders’ EquityStatements of Cash FlowsNotes to Financial Statements

----

**Tableof Contents**

PARTI

ITEM 1. BUSINESS.

----

**Tableof Contents**

----

**Tableof Contents**

|            | •                                            | new angle sensor models for energy and resource management that use less energyor less magnetic field; |
|--------------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------|
| •                                                       | rotation sensors for robotics and resource management; |
| •                                                       | new sensors for medical devices; and                   |
| •                                                       | new antitamper sensors.                                |

|            | •                                         | “smart sensor” interfaces for connection to the “Internet ofThings”; |
|--------------------------------------------------------------|-----------------------------------------------------|------------------------------------------------------------------------------------------|
| •                                                       | biosensors for food safety and medical diagnostics; |
| •                                                       | new current sensors for energy management;          |
| •                                                       | ultra-high speed couplers;                          |
| •                                                       | low-power couplers; and                             |
| •                                                       | MRAM for antitamper and security applications.      |

----

**Tableof Contents**

----

**Tableof Contents**

----

**Tableof Contents**

----

**Tableof Contents**

----

**Tableof Contents**

----

**Tableof Contents**

|            | •                                                                                                       | technological innovations by us or our competitors; |
|--------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
| •                                                       | the announcement of new products, product enhancements, contracts, or licenseagreements by us or our competitors; |
| •                                                       | delays in our introduction of new products or technologies or market acceptanceof these products or technologies; |
| •                                                       | loss of customers, decreases in customers’ purchases, or decreases in customers’ purchase prices;       |
| •                                                       | changes in demand for our customers’ products;                                                               |
| •                                                       | quarterly variations in our operating results, revenue, or revenue growthrates;                                   |
| •                                                       | changes in revenue estimates, earnings estimates, or market projections bymarket analysts;                        |
| •                                                       | speculation in the press or analyst community about our business, potentialrevenue, or potential earnings;        |
| •                                                       | general economic conditions or market conditions specific to industries weor our customers serve or may serve;    |
| •                                                       | legal proceedings involving us, including intellectualproperty litigation or class action litigation; and         |
| •                                                       | our stock repurchase and dividend policies and decisions.                                                         |

ITEM 2. PROPERTIES.

ITEM 3. LEGAL PROCEEDINGS.

----

**Tableof Contents**

PARTII

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATEDSTOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES.

|                                                                                     |                  | **QuarterEnded** |
|-------------------------------------------------------------------------------------|------------------|------------------|
| **3/31/17**                                                                         |                  | **12/31/16**     |  | **9/30/16** |  | **6/30/16** |  | **3/31/16** |  | **12/31/15** |  | **9/30/15** |  | **6/30/15** |
| Market price range of common stock     |             |
|                                                                                | High   | $                | 88.34 |  | $ | 71.69 |  | $ | 60.48 |  | $ | 59.37 |  | $ | 57.87 |  | $ | 62.93 |  | $ | 81.55 |  | $ | 78.88 |
|                                                                                | Low              | $                | 70.29 |  | $ | 55.00 |  | $ | 52.50 |  | $ | 52.16 |  | $ | 45.47 |  | $ | 47.37 |  | $ | 46.50 |  | $ | 65.70 |
|                                                                                |
| Dividends per share                                                                 |             |
|                                                                                | Declared         | $                | 1.00 |  | $ | 1.00 |  | $ | 1.00 |  | $ | 1.00 |  | $ | 1.00 |  | $ | 1.00 |  | $ | 1.00 |  | $ | 1.00 |
|                                                                                | Paid             | $                | 1.00 |  | $ | 1.00 |  | $ | 1.00 |  | $ | 1.00 |  | $ | 1.00 |  | $ | 1.00 |  | $ | 1.00 |  | $ | 1.00 |

|                         | **3/31/2012** |        | **3/31/2013** |   | **3/31/2014** |        | **3/31/2015** |        | **3/31/2016** |   | **3/31/2017** |
|-------------------------|---------------|--------|---------------|---|---------------|--------|---------------|--------|---------------|---|---------------|
| NASDAQ Industrial Index | $             | 100.00 |               | $ | 116.34        |   | $             | 145.82 |          | $ | 158.77        |   | $ | 195.17 |   | $ | 194.46 |
| SmallTimes Index        | $             | 100.00 |               | $ | 105.28        |   | $             | 122.06 |          | $ | 128.29        |   | $ | 122.45 |   | $ | 138.45 |
| NVE Corporation         | $             | 100.00 |               | $ | 106.45        |   | $             | 107.62 |          | $ | 134.24        |   | $ | 117.51 |   | $ | 181.89 |

----

**Tableof Contents**

|                                                  | **BalanceSheet Data as of March 31**                     |
|--------------------------------------------------|----------------------------------------------------------|
| **2017**                                         |                                                          | **2016** |  | **2015** |  | **2014** |  | **2013** |
| Cash, cash equivalents,and marketable securities | $                                                        | 84,602,120 |  | $ | 92,927,312 |  | $ | 100,450,357 |  | $ | 95,644,701 |  | $ | 85,260,969 |
| Total assets                                     | $                                                        | 93,774,806 |  | $ | 100,854,056 |  | $ | 110,089,196 |  | $ | 105,242,043 |  | $ | 95,765,496 |
| Total shareholders’ equity                  | $                                                        | 92,679,485 |  | $ | 99,264,587 |  | $ | 108,327,534 |  | $ | 103,704,641 |  | $ | 93,984,608 |
|                                                  | ** Income Statement Data for Years Ended March 31** |
| **2017**                                         |                                                          | **2016** |  | **2015** |  | **2014** |  | **2013** |
| Revenue                                          |
| Product sales                                    | $                                                        | 26,182,453 |  | $ | 24,410,391 |  | $ | 29,894,045 |  | $ | 25,512,028 |  | $ | 24,434,823 |
| Contract research and development                | 2,143,743                                                |  | 3,306,887 |  | 690,043 |  | 422,879 |  | 2,598,596 |
| Total revenue                                    | $                                                        | 28,326,196 |  | $ | 27,717,278 |  | $ | 30,584,088 |  | $ | 25,934,907 |  | $ | 27,033,419 |
|                                             |
| Income from operations                           | $                                                        | 17,445,203 |  | $ | 16,286,280 |  | $ | 19,251,951 |  | $ | 14,393,816 |  | $ | 15,196,854 |
| Net income                                       | $                                                        | 12,948,869 |  | $ | 12,292,315 |  | $ | 14,368,354 |  | $ | 11,135,875 |  | $ | 11,828,838 |
| Net income per share – diluted              | $                                                        | 2.68 |  | $ | 2.53 |  | $ | 2.95 |  | $ | 2.29 |  | $ | 2.43 |
| Cash dividends declared per share                | $                                                        | 4.00 |  | $ | 4.00 |  | $ | 2.06 |  | $ | - |  | $ | - |

----

**Tableof Contents**

----

**Tableof Contents**
Results of Operations

|                                                                                      | **Percentageof RevenueYear Ended March 31** |     | **Year-to-Year ChangeYears Ended March 31** |
|--------------------------------------------------------------------------------------|---------------------------------------------|----------|-----------------------------------------------------------------|
| **2017**                                                                             |                                             | **2016** |                                                                 | **2015** | **2016 to 2017** |  | **2015 to 2016** |
| Revenue                                                                              |
| Product sales                                                                        | 92.4                                        | %        |                                                                 | 88.1 | % |  | 97.7 | % |  | 7.3 | % |  | (18.3 | )% |
| Contract research and development       | 7.6                                         | %        |                                                                 | 11.9 | % |  | 2.3 | % |  | (35.2 | )% |  | 379.2 | % |
| Total revenue                                                                        | 100.0                                       | %        |                                                                 | 100.0 | % |  | 100.0 | % |  | 2.2 | % |  | (9.4 | )% |
| Cost of sales                                                                        | 21.5                                        | %        |                                                                 | 23.9 | % |  | 19.7 | % |  | (8.1 | )% |  | 9.9 | % |
| Gross profit                                                                         | 78.5                                        | %        |                                                                 | 76.1 | % |  | 80.3 | % |  | 5.4 | % |  | (14.1 | )% |
| Expenses                                                                             |
| Selling, general, and administrative                                                 | 5.1                                         | %        |                                                                 | 6.3 | % |  | 7.6 | % |  | (16.8 | )% |  | (24.2 | )% |
| Research and development                                                   | 11.8                                        | %        |                                                                 | 11.0 | % |  | 9.8 | % |  | 9.2 | % |  | 2.0 | % |
| Total expenses                                                                       | 16.9                                        | %        |                                                                 | 17.3 | % |  | 17.4 | % |  | (0.2 | )% |  | (9.4 | )% |
| Income from operations                                                               | 61.6                                        | %        |                                                                 | 58.8 | % |  | 62.9 | % |  | 7.1 | % |  | (15.4 | )% |
| Interest income                                                                      | 5.8                                         | %        |                                                                 | 6.8 | % |  | 7.2 | % |  | (12.7 | )% |  | (13.6 | )% |
| Income before taxes                                                                  | 67.4                                        | %        |                                                                 | 65.6 | % |  | 70.1 | % |  | 5.1 | % |  | (15.2 | )% |
| Income tax provision                                                                 | 21.7                                        | %        |                                                                 | 21.3 | % |  | 23.1 | % |  | 4.5 | % |  | (16.8 | )% |
| Net income                                                                           | 45.7                                        | %        |                                                                 | 44.3 | % |  | 47.0 | % |  | 5.3 | % |  | (14.4 | )% |

----

**Tableof Contents**

----

**Tableof Contents**

|                                       | **PaymentsDue by Period** |
|---------------------------------------|---------------------------|
| **Contractual obligations**      |                           | **Total** |  | **<1 Year** |  | **1-3 Years** |  | **3-5 Years** |
| Operating lease obligations |                      | $ | 1,080,903 |  | $ | 283,494 |  | $ | 577,113 |  | $ | 220,296 |
| Purchase obligations             |                      | 499,880 |  | 499,880 |  | - |  | - |
| Total                                 |                      | $ | 1,580,783 |  | $ | 783,374 |  | $ | 577,113 |  | $ | 220,296 |

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK.

----

**Tableof Contents**

|                                                              | **Unaudited;Quarter Ended**        |
|--------------------------------------------------------------|------------------------------------|
| **March 31,2017**                                       |                                    | **Dec. 31,2016** |  | **Sept. 30,2016** |  | **June 30,2016** |
| Revenue                                                      |
| Product sales                                                | $                                  | 6,399,924 |  | $ | 7,116,931 |   | $ | 6,814,384 |  | $ | 5,851,214 |
| Contract research and development             | 453,282                            |  | 345,748 |  | 488,155 |  | 856,558 |
| Total revenue                                                |                                    | 6,853,206 |  |  | 7,462,679 |  |  | 7,302,539 |  |  | 6,707,772 |
| Cost of sales                                                | 1,449,454                          |  | 1,502,848 |  | 1,740,814 |  | 1,385,178 |
| Gross profit                                                 |                                    | 5,403,752 |  |  | 5,959,831 |  |  | 5,561,725 |  |  | 5,322,594 |
| Expenses                                                     |
| Selling, general, and administrative          |                                    | 340,673 |  |  | 384,322 |  |  | 343,688 |  |  | 389,915 |
| Research and development                           | 990,729                            |  | 826,816 |  | 768,188 |  | 758,368 |
| Total expenses                                               | 1,331,402                          |  | 1,211,138 |  | 1,111,876 |  | 1,148,283 |
| Income from operations                                       |                                    | 4,072,350 |  |  | 4,748,693 |  |  | 4,449,849 |  |  | 4,174,311 |
| Income before taxes                                          | 4,459,234                          |  | 5,143,900 |  | 4,880,832 |  | 4,612,045 |
| Net income                                                   | $                                  | 3,027,383 |  | $ | 3,483,744 |  | $ | 3,305,19 |  | $ | 3,132,545 |
| Net income per share – diluted | $                                  | 0.62 |  | $ | 0.72 |  | $ | 0.68 |  | $ | 0.65 |
|                                                              | ** Unaudited; Quarter Ended** |
| **March 31,2016**                                       |                                    | **Dec. 31,2015** |  | **Sept. 30,2015** |  | **June 30,2015** |
| Revenue                                                      |
| Product sales                                                | $                                  | 5,212,813 |  | $ | 5,025,041 |  | $ | 6,436,672 |  | $ | 7,735,865 |
| Contract research and development             | 887,774                            |  | 990,974 |  | 843,085 |  | 585,054 |
| Total revenue                                                |                                    | 6,100,587 |  |  | 6,016,015 |  |   | 7,279,757 |  |   | 8,320,919 |
| Cost of sales                                                | 1,470,049                          |  | 1,508,361 |  | 1,644,514 |  | 1,993,928 |
| Gross profit                                                 |                                    | 4,630,538 |  |   | 4,507,654 |  |   | 5,635,243 |  |   | 6,326,991 |
| Expenses                                                     |
| Selling, general, and administrative          |                                    | 336,891 |  |   | 406,676 |  |   | 524,631 |  |   | 484,764 |
| Research and development                           | 1,012,564                          |  | 738,657 |  | 628,962 |  | 681,001 |
| Total expenses                                               | 1,349,455                          |  | 1,145,333 |  | 1,153,593 |  | 1,165,765 |
| Income from operations                                       |                               | 3,281,083 |  |   | 3,362,321 |  |   | 4,481,650 |  |   | 5,161,226 |
| Income before taxes                                          | 3,749,204                          |  | 3,830,688 |  | 4,950,181 |  | 5,647,024 |
| Net income                                                   | $                                  | 2,600,843 |  | $ | 2,577,451 |  | $ | 3,310,795 |  | $ | 3,803,226 |
| Net income per share – diluted | $                                  | 0.54 |  | $ | 0.53 |  | $ | 0.68 |  | $ | 0.78 |

----

**Tableof Contents**

PARTIII

ITEM 10.

ITEM 11.

ITEM 12.

ITEM 13.

ITEM 14.

PARTIV

ITEM15. 

----

Tableof Contents

| **Exhibit # ** | **Description**                                                                                                                                                                                                                            |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |
|   3.1          | Amended and Restated Articles of Incorporation of the company as amended bythe Board of Directors effective November 21, 2002 (incorporated by referenceto the Form 10-QSB for the period ended December 31, 2002).              |
|                          |
|                          |
|   3.2          | Bylaws of the company as amended by the Board of Directorseffective December 18, 2007 (incorporated by reference to the Form 8-K filed December19, 2007).                                                                                  |
|                          |
|                          |
|   10.1         | Lease dated October 1, 1998 between the company and Glenborough Properties,LP (incorporated by reference to the Form 10-QSB for the period ended September30, 2002).                                                                       |
|                          |
|                          |
|   10.2         | First amendment to lease between the company and Glenboroughdated September 18, 2002 (incorporated by reference to the Form 10-QSB forthe period ended September 30, 2002).                                                      |
|                          |
|                          |
|   10.3         | Second amendment to lease between the company and Glenborough dated December1, 2003 (incorporated by reference to the Form10-QSB for the period ended December 31, 2003).                                                                  |
|                          |
|                          |
|   10.4         | Third amendment to lease between the company and Carlson Real Estate (incorporatedby reference to the Form 8-K/A filed December 20, 2007).                                                                                                 |
|                          |
|                          |
|   10.5         | Fourth amendment to lease between the company and the Barbara C. Gage RevocableTrust (incorporated by reference to our Current Report on Form 8-K/A filed August 3,2011).                                                             |
|                          |
|                          |
|   10.6*        | Employment Agreement between the company and Daniel A. Bakerdated January 29, 2001 (incorporated by reference to the Form 10-KSB forthe year ended March 31, 2001).                                                              |
|                          |
|                          |
|   10.7*        | NVE Corporation 2000 Stock Option Plan as Amended July 19, 2001 by theshareholders (incorporated by reference to our Registration Statement on FormS-8 filed July 20, 2001).                                                     |
|                          |
|                          |
|   10.8         | Indemnification Agreement by and between Pacesetter, Inc.,a St. Jude Medical Company, d.b.a. St. Jude Medical Cardiac Rhythm ManagementDivision, and the company (incorporated by reference to the Form 8-K filed September 27,2005). |
|                          |
|                          |
|   10.9+        | Supplier Partnering Agreement by and between St. Jude and the company(incorporated by reference to the Form 8-Kfiled January 4, 2006).                                                                                           |
|                          |
|                          |
|   10.10+       | Amendment No. 1 to Supplier Partnering Agreement betweenSt. Jude and the company (incorporated by reference to the Form 8-K/A filedSeptember 10, 2007).                                                                               |
|                          |
|                          |
|   10.11+       | Amendment No. 2 to Supplier Partnering Agreement between St. Jude andthe company (incorporated by reference to the Form 8-K/A filed December 18,2009).                                                                           |
|                          |
|                          |
|   10.12+       | Amendment No. 3 to Supplier Partnering Agreement betweenSt. Jude and the company (incorporated by reference to the Form 8-K/A filed September 16,2010).                                                                               |
|                          |
|                          |
|   10.13        | Amendment No. 4 to Supplier Partnering Agreement between St. Jude andthe company (incorporated by reference to the Form 8-K/A filed February 7,2011).                                                                            |
|                          |
|                          |
|   10.14        | Supplier Quality Agreement between St. Jude and the company (incorporatedby reference to the Form 8-K filed February 10, 2016).                                                                                                  |
|                          |
|                          |
|   10.15        | Amendment No. 5 to Supplier Partnering Agreement between St. Jude andthe company (incorporated by reference to the Form 8-K/A filed April 21,2016).                                                                              |
|                          |
|                          |
|   10.16+       | Supply Agreement by andbetween the company and Sonova AG (incorporated by reference to the Form8-K/A filed November 16, 2015).                                                                                                        |
|                          |
|                          |
|   23           | Consent of Grant Thornton LLP.                                                                                                                                                                                                             |
|                          |
|                          |
|   31.1         | Certification by Daniel A. Baker pursuant to Rule 13a-14(a)/15d-14(a).                                                                                                                                                                     |
|                          |
|                          |
|   31.2         | Certification by Curt A. Reynders pursuant to Rule 13a-14(a)/15d-14(a).                                                                                                                                                                    |
|                          |
|                          |
|   32           | Certification by Daniel A. Baker and Curt A. Reynders pursuant to 18 U.S.C.Section 1350.                                                                                                                                                   |
|                          |
|                          |
| 101.INS                  | XBRL Instance Document                                                                                                                                                                                                                     |
|                          |
|                          |
| 101.SCH                  | XBRL Taxonomy Extension Schema Document                                                                                                                                                                                                    |
|                          |
|                          |
| 101.CAL                  | XBRL Taxonomy Extension Calculation Linkbase Document                                                                                                                                                                                      |
|                          |
|                          |
| 101.DEF                  | XBRL Taxonomy Extension Definition Linkbase Document                                                                                                                                                                                       |
|                          |
|                          |
| 101.LAB                  | XBRL Taxonomy Extension Label Linkbase Document                                                                                                                                                                                            |
|                          |
|                          |
| 101.PRE                  | XBRL Taxonomy Extension Presentation Linkbase Document                                                                                                                                                                                     |  |

|   |
|--------|
|        |

----

**Tableof Contents**

SIGNATURES

| **Name**                                                  |  **Title**                                                                     | **Date**  |
|-----------------------------------------------------------|-------------------------------------------------------------------------------------|----------------|
| /s/Terrence W. GlarnerTerrence W. Glarner                 | Director andChairman of the Board                                         | May 3, 2017    |
| /s/Daniel A. BakerDaniel A. Baker                         | Director,President & Chief Executive Officer(Principal Executive Officer)  | May 3, 2017    |
| /s/Curt A. ReyndersCurt A. Reynders                       | Treasurer andChief Financial Officer(Principal Financial andAccounting Officer)     | May 3, 2017    |
| /s/Patricia M. HollisterPatricia M. Hollister   | Director                                                                            | May 3, 2017    |
| /s/Richard W. KrampRichard W. Kramp             | Director                                                                            | May 3, 2017    |
| /s/Gary R. MaharajGary R. Maharaj                         | Director                                                                            | May 3, 2017    |

----

**Tableof Contents**

| Reports of Independent Registered Public AccountingFirm | F-2  |
|---------------------------------------------------------|-----------|
| Balance Sheets                                          | F-4  |
| Statements of Income                               | F-5  |
| Statements of Comprehensive Income                      | F-5  |
| Statements of Shareholders’ Equity                 | F-6  |
| Statements of Cash Flows                                | F-7  |
| Notes to Financial Statements                           | F-8  |

----

**Tableof Contents**

**REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

----

**Tableof Contents**

----

**Tableof Contents**

NVECORPORATION

|                                                                                                                                                                                     | **March31, 2017** |            | **March31, 2016** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|------------|-------------------|
| ASSETS                                                                                                                                                                              |
| Current assets                                                                                                                                                                      |
| Cash and cash equivalents                                                                                                                                                           | $                 | 8,199,364  |                   |  | $ | 7,534,593 |  |
| Marketable securities, short-term                                                                                                                                                   |              | 19,591,833 |                   |  |  | 19,697,384 |  |
| Accounts receivable, net of allowance for uncollectibleaccounts of $15,000                                                                                                          |              | 3,436,802  |                   |  |  | 2,244,086 |  |
| Inventories                                                                                                                                                                         |              | 3,358,298  |                   |  |  | 3,205,233 |  |
| Prepaid expenses and other assets                                                                                                                                                   | 607,283           |       |                   | 734,524 |   |
| Total current assets                                                                                                                                                                |                   | 35,193,580 |              |  |  | 33,415,820 |   |
| Fixed assets                                                                                                                                                                        |
| Machinery and equipment                                                                                                                                                        |                   | 9,007,455  |                   |  |  | 8,840,033 |  |
| Leasehold improvements                                                                                                                                                              | 1,644,419         |       |                   | 1,539,965 |   |
|                                                                                                                                                                                |                   | 10,651,874 |                   |  |  | 10,379,998 |  |
| Less accumulated depreciation and amortization                                                                                                                                 | 9,238,626         |       |                   | 8,688,285 |   |
| Net fixed assets                                                                                                                                                                    |                   | 1,413,248  |                   |  |  | 1,691,713 |  |
| Long-term deferred tax assets                                                                                                                                                       | 357,055           |            |                   | 51,188 |  |
| Marketable securities, long-term                                                                                                                                                    | 56,810,923        |       |                   | 65,695,335 |   |
| Total assets                                                                                                                                                                        | $                 | 93,774,806 |              |  | $ | 100,854,056 |   |
|                                                                                                                                                                                |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                           |
| Current liabilities                                                                                                                                                                 |
| Accounts payable                                                                                                                                                                    | $                 | 376,275    |                   |  | $ | 317,990 |  |
| Accrued payroll and other                                                                                                                                                           | 576,313           |            |                   | 556,674 |  |
| Deferred revenue                                                                                                                                                                    | 142,733           |       |                   | 714,805 |   |
| Total current liabilities                                                                                                                                                           |                   | 1,095,321  |                   |  |  | 1,589,469 |  |
|                                                                                                                                                                                |
| Shareholders’ equity                                                                                                                                                           |
| Common stock, $0.01 par value,6,000,000 shares authorized; 4,841,010 issued and outstanding as of March 31,2017 and 4,835,010 issued and outstanding as of March 31, 2016 |                   | 48,410     |                   |  |  | 48,350 |  |
| Additional paid-in capital                                                                                                                                                          |                   | 19,507,348 |                   |  |  | 19,205,682 |  |
| Accumulated other comprehensive (loss) income                                                                                                                                       |                   | (38,298    | )                 |  |  | 451,359 |  |
| Retained earnings                                                                                                                                                                   | 73,162,025        |       |                   | 79,559,196 |   |
| Total shareholders’ equity                                                                                                                                                     | 92,679,485        |       |                   | 99,264,587 |   |
| Total liabilities and shareholders’ equity                                                                                                                                     | $                 | 93,774,806 |              |  | $ | 100,854,056 |   |

----

**Tableof Contents**

NVECORPORATION

|                                          | **YearEnded March 31** |
|------------------------------------------|------------------------|
| **2017**                                 |                        | **2016** |  | **2015** |
| Revenue                                  |
| Product sales                            | $                      | 26,182,453 |  |  | $ | 24,410,391 |  |  | $ | 29,894,045 |  |
| Contract research and development        | 2,143,743              |   |  | 3,306,887 |   |  | 690,043 |   |
| Total revenue                            |                        | 28,326,196 |  |  |  | 27,717,278 |  |  |   | 30,584,088 |  |
| Cost of sales                            | 6,078,294              |   |  | 6,616,852 |   |  | 6,019,868 |   |
| Gross profit                             | 22,247,902             |  |  | 21,100,426 |  |  | 24,564,220 |  |
| Expenses                                 |
| Selling, general, and administrative     |                        | 1,458,598 |  |  |   | 1,752,962 |  |  |   | 2,312,076 |  |
| Research and development                 | 3,344,101              |   |  | 3,061,184 |   |  | 3,000,193 |   |
| Total expenses                           | 4,802,699              |   |  | 4,814,146 |   |  | 5,312,269 |   |
| Income from operations                   |                        | 17,445,203 |  |  |   | 16,286,280 |  |  |   | 19,251,951 |  |
| Interest income                          |                        | 1,650,808 |   |  |   | 1,890,817 |   |  |   | 2,187,723 |   |
| Income before taxes                      |                        | 19,096,011 |  |  |   | 18,177,097 |  |  |   | 21,439,674 |  |
| Provision for income taxes               | 6,147,142              |   |  | 5,884,782 |   |  | 7,071,320 |   |
| Net income                               | $                      | 12,948,869 |   |  | $ | 12,292,315 |   |  | $ | 14,368,354 |   |
| Net income per share – basic        | $                      | 2.68 |   |  | $ | 2.53 |   |  | $ | 2.96 |   |
| Net income per share – diluted      | $                      | 2.68 |   |  | $ | 2.53 |   |  | $ | 2.95 |   |
| Cash dividends declared per common share | $                      | 4.00 |   |  | $ | 4.00 |   |  | $ | 2.06 |   |
| Weighted average shares outstanding      |
| Basic                                    | 4,836,602              | 4,850,209 | 4,855,504 |  |
| Diluted                                  | 4,838,389              | 4,852,602 | 4,871,935 |  |

|                                                                                                  | **YearEnded March 31** |
|--------------------------------------------------------------------------------------------------|------------------------|
| **2017**                                                                                         |                        | **2016** |  | **2015** |
| Net income                                                                                       | $                      | 12,948,869 |   |  | $ | 12,292,315 |   |  | $ | 14,368,354 |   |
| Unrealized loss from marketable securities, net of tax   | (489,657               | ) |  | (295,088 | ) |  | (131,410 | ) |
| Comprehensive income                                                                             | $                      | 12,459,212 |   |  | $ | 11,997,227 |   |  | $ | 14,236,944 |   |

----

**Tableof Contents**

NVECORPORATION

|                                                         |     |            | **AdditionalPaid-InCapital** |   |   | **AccumulatedOther Comprehen- sive Income(Loss)** |       | **RetainedEarnings** |   |   |             |
|---------------------------------------------------------|--------------------|------------|------------------------------|--------|--------|---------------------------------------------------|------------|----------------------|--------|--------|-------------|
| **CommonStock**                                         |
| **Shares**                                              |               | **Amount** | **Total**                    |
| Balance as of March 31, 2014                            | 4,851,043          |            | $                            | 48,510 |        | $                                                 | 20,464,883 |                      |        | $      | 877,857     |  |  | $ | 82,313,391 |  |  | $ | 103,704,641 |  |
| Exercise of stockoptions                                | 6,910              |       |                         | 70     |   |                                              | 302,631    |                 |   |   |        |   |   |   |  |  |  |  | 302,701 |  |
| Comprehensive income:                                   |
| Unrealized loss onmarketable securities,net of tax      |               |       |                         |   |   |                                              |       |                 |   |   | (131,410    | ) | (131,410 | ) |
| Net income                                              |               |       |                         |   |   |                                              |       |                 |   |   |        |   |   |   | 14,368,354 |   |   |   | 14,368,354 |  |
| Total comprehensive income                              |               |       |                         |   |   |                                              |       |                 |   |   |        |   |   |   |   |   |   |   | 14,236,944 |  |
| Stock-based compensation                                |                    |            |                              |        | 58,960 |                                                   |            |                      |        |        |             |  |  | 58,960 |  |
| Tax benefit of stock-based compensation                 |                    |            |                              |        |        | 24,288                                            |            |                      |        |        |             |  |  | 24,288 |  |
| Cash dividends declared($2.06 per share ofcommon stock) |               |            |                         |        |   |                                              |            |                      |   |        | (10,000,000 | ) |  | (10,000,000 | ) |
| Balance as of March 31, 2015                            | 4,857,953          |            |                         | 48,580 |        |                                              | 20,850,762 |                      |        |   | 746,447     |  |  |   | 86,681,745 |  |  |   | 108,327,534 |   |
| Exercise of stockoptions                                | 18,090             |       |                         | 181    |   |                                              | 292,728    |                 |   |   |        |   |   |   |   |   |  |  | 292,909 |  |
| Repurchase of common stock                              | (41,033            | )          |                         | (411   | )      |                                              | (2,311,262 | )                    |   |   |        |   |   |   |   |   |   |   | (2,311,673 | ) |
| Comprehensive income:                                   |
| Unrealized loss onmarketable securities,net of tax      |               |       |                         |   |   |                                              |       |                 |   |   | (295,088    | ) | (295,088 | ) |
| Net income                                              |               |       |                         |   |   |                                              |       |                 |   |   |        |   |   |   | 12,292,315 |   |   |   | 12,292,315 |   |
| Total comprehensive income                              |               |       |                         |   |   |                                              |       |                 |   |   |        |   |   |   |   |   |   |   | 11,997,227 |  |
| Stock-based compensation                                |               |       |                         |   | 21,160 |                                              |       |                 |   |   |        |   |   | 21,160 |   |
| Tax benefit of stock-based compensation                 |               |       |                         |   |   | 352,294                                           |       |                 |   |   |        |   |   | 352,294 |   |
| Cash dividends declared($4.00 per share ofcommon stock) |               |            |                         |        |   |                                              |       |                      |   |        | (19,414,864 | ) |  | (19,414,864 | ) |
| Balance as of March 31, 2016                            | 4,835,010          |            |                              | 48,350 |        |                                                   | 19,205,682 |                      |        |        | 451,359     |  |  |  | 79,559,196 |  |  |  | 99,264,587 |  |
| Exercise of stockoptions                                | 6,000              |            |                              | 60     |        |                                                   | 247,050    |                      |        |        |             |  |  |  |  |  |  |  | 247,110 |  |
| Comprehensive income:                                   |
| Unrealized loss onmarketable securities,net of tax      |                    |            |                              |        |        |                                                   |            |                      |        |        | (489,657    | ) | (489,657 | ) |
| Net income                                              |                    |            |                              |        |        |                                                   |            |                      |        |        |             |  |  |  | 12,948,869 |  |  |  | 12,948,869 |  |
| Total comprehensive income                              |                    |            |                              |        |        |                                                   |            |                      |        |        |             |  |  |  |  |  |  |  | 12,459,212 |  |
| Stock-based compensation                                |                    |            |                              |        | 22,000 |                                                   |            |                      |        |        |             |  |  | 22,000 |  |
| Tax benefit of stock-based compensation                 |                    |            |                              |        |        | 32,616                                            |            |                      |        |        |             |  |  | 32,616 |  |
| Cash dividends declared($4.00 per share ofcommon stock) |               |            |                         |        |   |                                              |            |                      |   |        | (19,346,040 | ) |  | (19,346,040 | ) |
| Balance as of March 31, 2017                            | 4,841,010          |            | $                            | 48,410 |        | $                                                 | 19,507,348 |                      |        | $      | (38,298     | ) |  | $ | 73,162,025 |   |  | $ | 92,679,485 |   |

----

**Tableof Contents**

NVECORPORATION

|                                                                                 | **YearEnded March 31** |
|---------------------------------------------------------------------------------|------------------------|
| **2017**                                                                        |                        | **2016** |  | **2015** |
| OPERATING ACTIVITIES                                                            |
| Net income                                                                      | $                      | 12,948,869 |  |  | $ | 12,292,315 |  |  | $ | 14,368,354 |  |
| Adjustments to reconcile net income to netcashprovided by operating activities: |
| Depreciation and amortization                                                   | 1,147,451              |   |  | 850,970 |   |  | 934,371 |   |
| Stock-based compensation                                                        | 22,000                 |  |  | 21,160 |  |  | 58,960 |  |
| Excess tax benefits                                                             | (32,616                | ) |  | (352,294 | ) |  | (24,288 | ) |
| Deferred income taxes                                                           | 6,144                  |   |  | 295,827 |   |  | 155,713 |   |
| Changes in operating assets and liabilities                                     |
| Accounts receivable                                                             | (1,192,716             | ) |  | 719,888 |   |  | (632,400 | ) |
| Inventories                                                                     | (153,065               | ) |  | 537,259 |   |  | (535,159 | ) |
| Prepaid expenses and other assets                                               | 127,241                |   |  | (159,611 | ) |  | 241,363 |   |
| Accounts payable and accrued expenses                                           | 77,924                 |   |  | (611,290 | ) |  | 303,152 |  |
| Deferred revenue                                                                | (572,072               | ) |  | 714,805 |   |  | - |   |
| Net cash provided by operating activities                                       | 12,379,160             |   |  | 14,309,029 |   |  | 14,870,066 |   |
|                                                                            |
| INVESTING ACTIVITIES                                                            |
| Purchases of fixed assets                                                       | (519,835               | ) |  | (287,275 | ) |  | (185,007 | ) |
| Purchases of marketable securities                                              | (11,528,240            | ) |  | (14,568,089 | ) |  | (8,997,086 | ) |
| Proceeds from maturities of marketable securities                               | 19,400,000             |   |  | 19,725,000 |   |  | 12,160,000 |   |
| Net cash provided by investing activities                                       | 7,351,925              |   |  | 4,869,636 |   |  | 2,977,907 |   |
|                                                                            |
| FINANCING ACTIVITIES                                                            |
| Proceeds from sale of common stock                                              | 247,110                |   |  | 292,909 |   |  | 302,701 |   |
| Excess tax benefits                                                             | 32,616                 |   |  | 352,294 |   |  | 24,288 |   |
| Repurchase of common stock                                                      | -                      |   |  | (2,311,673 | ) |  | - |   |
| Payment of dividends to shareholders                                            | (19,346,040            | ) |  | (19,414,864 | ) |  | (10,000,000 | ) |
| Net cash used in financing activities                                           | (19,066,314            | ) |  | (21,081,334 | ) |  | (9,673,011 | ) |
|                                                                            |
| Increase (decrease) in cash and cash equivalents                                | 664,771                |   |  | (1,902,669 | ) |  | 8,174,962 |   |
| Cash and cash equivalents at beginning of year                                  | 7,534,593              |   |  | 9,437,262 |   |  | 1,262,300 |   |
|                                                                            |
| Cash and cash equivalents at end of year                                        | $                      | 8,199,364 |   |  | $ | 7,534,593 |   |  | $ | 9,437,262 |   |
|                                                                            |
| Supplemental disclosures of cash flow information:                              |
| Cash paid during the year for income taxes                                      | $                      | 6,040,000 |  |  | $ | 5,810,000 |  |  | $ | 6,800,000 |  |

----

Tableof Contents

----

**Tableof Contents**

----

**Tableof Contents**

|                                                              | **YearEnded March 31** |
|--------------------------------------------------------------|------------------------|
| **2017**                                                     |                        | **2016** |  | **2015** |
| Weighted average common shares outstanding – basic      | 4,836,602              | 4,850,209 | 4,855,504 |
| Dilutive effect of stock options                             | 1,787                  |  | 2,393 |  | 16,431 |
| Shares used in computing net income per share – diluted | 4,838,389              |  | 4,852,602 |  | 4,871,935 |

----

Tableof Contents

----

Tableof Contents

----

Tableof Contents

| **Total** |            | **<1Year** |   | **1–3Years** |  | **3–5Years** |
|-----------|------------|---------------|---|-------------------|--|-------------------|
| $         | 76,402,756 |               | $ | 19,591,833        |  | $                 | 33,461,493 |  | $ | 23,349,430 |

|                                  | **Asof March 31, 2017** |                          | **Asof March 31, 2016** |
|----------------------------------|------------------------------|--------------------------|------------------------------|
| **AdjustedCost**                 |                              | **GrossUnrealizedGains** |                              | **GrossUnrealizedLosses** |  | **FairMarketValue** | **AdjustedCost** |  | **GrossUnrealizedGains** |  | **GrossUnrealizedLosses** |  | **FairMarketValue** |
| Corporate bonds             | $                            | 75,158,087               |                    | $ | 187,001 |    | $ | (246,935 | ) |    | $ | 75,098,153 |    | $ | 83,339,487 |    | $ | 717,206 |    | $ | (10,824 | ) |    | $ | 84,045,869 |
| Municipal bonds   | 1,304,817                    |                          | -                            |  | (214 | ) |  | 1,304,603 |   | 1,344,328 |   | 2,522 |   | - |   |   | 1,346,850 |
| Total                            | $                            | 76,462,904               |                              | $ | 187,001 |  | $ | (247,149 | ) |  | $ | 76,402,756 |   | $ | 84,683,815 |   | $ | 719,728 |   | $ | (10,824 | ) |   | $ | 85,392,719 |

|                      | **LessThan 12 Months**           |                           | **12 Monthsor Greater** |        | **Total**                 |
|----------------------|----------------------------------|---------------------------|-------------------------|--------|---------------------------|
| **FairMarketValue**  |                                  | **GrossUnrealizedLosses** | **FairMarketValue**     |        | **GrossUnrealizedLosses** | **FairMarketValue** |  | **GrossUnrealizedLosses** |
| As of March 31, 2017 |
|                 | Corporate bonds                  | $                         | 32,198,766              |        | $                         | (246,935 | ) |  | $ | - |  | $ | - |   |  | $ | 32,198,766 |  | $ | (246,935 | ) |
|                 | Municipal bonds   | 1,304,603                 |                         | (214   | )                         |  | - |  | - |  |  | 1,304,603 |  | (214 | ) |
|                 | Total                            | $                         | 33,503,369              |        | $                         | (247,149 | ) |  | $ | - |  | $ | - |   |  | $ | 33,503,369 |  | $ | (247,149 | ) |
| As of March 31, 2016 |
|                 | Corporate bonds                  | $                         | 3,003,606               |   | $                         | (6,703 | ) |   | $ | 2,599,870 |   | $ | (4,121 | ) |  | $ | 5,603,476 |   | $ | (10,824 | ) |
|                 | Municipal bonds   | -                         |                    | -      |                      |   | - |   | - |   |   | - |   | - |   |
|                 | Total                            | $                         | 3,003,606               |   | $                         | (6,703 | ) |   | $ | 2,599,870 |   | $ | (4,121 | ) |   | $ | 5,603,476 |   | $ | (10,824 | ) |

----

**Tableof Contents**

|                   | **March31** |
|-------------------|-------------|
| **2017**          |             | **2016** |
| Raw materials     | $           | 786,775 |  | $ | 810,987 |
| Work in process   |        | 1,968,990 |  |   | 1,653,800 |
| Finished goods    | 602,533     |  | 740,446 |
| Total inventories | $           | 3,358,298 |  | $ | 3,205,233 |

|                         | **YearEnded March 31** |
|-------------------------|------------------------|
| **2017**                |                        | **2016** |  | **2015** |
| Risk-free interest rate | 1.0                    | % |  | 1.6 | % |  | 1.6 | % |
| Expected volatility     | 27                     | % |  | 26 | % |  | 24 | % |
| Expected life (years)   | 4.3                    |   |  | 4.3 |   |  | 4.2 |   |
| Dividend yield          | 7.0                    | % |  | 7.1 | % |  | 0 | % |

----

**Tableof Contents**

| **RangesofExercise Prices** |      | **NumberOutstanding** |      | **Weighted AverageExercise Price** |      | **Weighted RemainingContractual Life (years)** |
|----------------------------------|--------------------------|-----------------------|--------------------------|----------------------------------------------|--------------------------|---------------------------------------------------------------|
| $ 42.45 - 54.11        |                          | 5,000                 |                          | $                                            | 49.70                    |                                                               | 4.0 |
| 56.76 - 67.69          |                          | 14,000                |                          | 60.30                                        |                          | 7.8                                                           |
|                                  |                          | 19,000                |                          | $                                            | 57.51                    |                                                               | 6.8 |

|                                              | **Option SharesReserved** |       | **OptionsOutstanding** |       | **WeightedAverageOption Exercise Price** |       | **WarrantsOutstanding** |       | **WeightedAverageWarrant Exercise Price** |
|----------------------------------------------|--------------------------------|--------------------------------|------------------------|--------------------------------|----------------------------------------------------|--------------------------------|-------------------------|--------------------------------|-----------------------------------------------------|
| At March 31, 2014   | 155,230                        |                           |                   | 38,000                         |                                               |                           | $                       | 31.78                          |                                                | 2,000 |   |   | $ | 37.38 |
| Granted                                      | (4,000                         | )                              |                   | 4,000                          |                                               |                           | $                       | 67.69                          |                                                     | - |   |  |  | - |
| Exercised                                    | -                              |                           |                   | (6,910                         | )                                                  |                                | $                       | 43.81                          |                                                     | - |  |  | - |
| Terminated                                   | -                              |                           |                   | -                              |                                               |                           | $                       | -                              |                                                | (2,000 | ) |   |   | 37.38 |
| At March 31, 2015        | 151,230                        |                           |                   | 35,090                         |                                               |                           | $                       | 33.51                          |                                                | - |   |   | $ | - |
| Granted                                      | (4,000                         | )                              |                   | 4,000                          |                                                    |                                | $                       | 56.76                          |                                                | - |   |   |   | - |
| Exercised                                    | -                              |                           |                   | (18,090                        | )                                                  |                                | $                       | 16.19                          |                                                | - |   |   | - |
| Terminated                                   | -                              |                           |                   | -                              |                                               |                           | $                       | -                              |                                                | - |   |   |   | - |
| At March 31, 2016        | 147,230                        |                                |                        | 21,000                         |                                               |                                | $                       | 52.85                          |                                                     | - |   |   | $ | - |
| Granted                                      | (4,000                         | )                              |                        | 4,000                          |                                                    |                                | $                       | 57.46                          |                                                | - |   |   |   | - |
| Exercised                                    | -                              |                                |                        | (6,000                         | )                                                  |                                | $                       | 41.19                          |                                                | - |   |   | - |
| Terminated                                   | -                              |                                |                        | -                              |                                                    |                                | $                       | -                              |                                                | - |   |   |   | - |
| At March 31, 2017             | 143,230                        |                                |                        | 19,000                         |                                                    |                                | $                       | 57.51                          |                                                     | - |   |   | $ | - |

|                      | **YearEnded March 31** |
|----------------------|------------------------|
| **2017**             |                        | **2016** |  | **2015** |
| Current taxes        |
| Federal              | $                      | 6,034,924 |  |  | $ | 5,754,428 |  |  | $ | 6,608,923 |  |
| State                | 138,689                |  |  | 186,822 |  |  | 330,971 |  |
| Deferred taxes       |
| Federal              | (25,196                | ) |  | (55,254 | ) |  | 125,070 |   |
| State                | (1,275                 | ) |  | (1,214 | ) |  | 6,356 |   |
| Income tax provision | $                      | 6,147,142 |   |  | $ | 5,884,782 |   |  | $ | 7,071,320 |   |

----

**Tableof Contents**

|                                            | **YearEnded March 31** |
|--------------------------------------------|------------------------|
| **2017**                                   |                        | **2016** |  | **2015** |
| Tax expense at U.S. statutory rate         | $                      | 6,645,733 |  |  | $ | 6,272,341 |   |  | $ | 7,503,886 |   |
| State income taxes, net of Federal benefit |                   | 83,116 |  |  |   | 118,057 |   |  |   | 216,518 |   |
| Domestic manufacturing deduction           |                   | (536,063 | ) |  |   | (476,932 | ) |  |   | (600,207 | ) |
| Municipal interest                         |                   | (4,207 | ) |  |   | (4,171 | ) |  |   | (11,489 | ) |
| Other                                      |                   | (41,437 | ) |  |   | (24,513 | ) |  |   | (37,388 | ) |
| Income tax provision                       | $                      | 6,147,142 |   |  | $ | 5,884,782 |   |  | $ | 7,071,320 |   |

|                                                 | **March31** |
|-------------------------------------------------|-------------|
| **2017**                                        |             | **2016** |
| Vacation accrual                                | $           | 109,298 |  |   | $ | 118,611 |  |
| Inventory reserve                               | 81,743      |   |   | 90,825 |   |
| Depreciation and amortization                   | 52,378      |   |   | (30,174 | ) |
| Stock-based compensation deductions             | 86,335      |  |   | 115,257 |  |
| Unrealized loss (gain) on marketable securities | 21,852      |   |   | (257,545 | ) |
| Other                                           | 5,449       |   |  | 14,214 |   |
| Long-term deferred tax assets                   | $           | 357,055 |   |  | $ | 51,188 |   |

----

**Tableof Contents**

|            | **%of Revenue for Year Ended March 31** |
|------------|-----------------------------------------|
| **2017**   |                                         | **2016** |  | **2015** |
| Customer A | 22%                                     |  | 23% |  | 20% |
| Customer B | 20%                                     |  | 20% |  | 16% |
| Customer C | *                                       |  | * |  | 14% |
| Customer D | *                                       |  | * |  | 12% |

|   |   |
|--------|--------|
|   |

| *Less than 10% |
|----------------|

|                                                                                | **YearEnded March 31** |
|--------------------------------------------------------------------------------|------------------------|
| **2017**                                                                       |                        | **2016** |  | **2015** |
| United States                                                                  | $                      | 13,600,236 |  | $ | 12,392,053 |  | $ | 11,919,548 |
| Europe, the Middle East, and Africa    |                   | 9,612,883 |  |   | 11,392,046 |   |   | 13,779,392 |
| Asia-Pacific                                                                   |                   | 4,200,934 |  |   | 3,113,484 |   |   | 4,318,209 |
| Rest of World                                                                  | 912,143                |  | 819,695 |  | 566,939 |
| Total Revenue                                                                  | $                      | 28,326,196 |  | $ | 27,717,278 |  | $ | 30,584,088 |

| **YearEnding March 31** |         |
|-------------------------|---------|
| **2018**                |         | **2019** |  | **2020** |  | **2021** |  | **2022** |  | **Total** |
| $                       | 283,494 |  | $ | 286,590 |  | $ | 290,523 |  | $ | 220,296 |  | $ | -  |  | $ | 1,080,903 |

----

**Tableof Contents**

| **Exhibit # ** | **Description**                                                                                |
|--------------------------|------------------------------------------------------------------------------------------------|
|                     |
|   23           | Consent of Grant Thornton LLP.                                                            |
|   31.1         | Certification by Daniel A. Baker pursuant to Rule 13a-14(a)/15d-14(a).                    |
|   31.2         | Certification by Curt A. Reynders pursuant to Rule 13a-14(a)/15d-14(a).                   |
|   32           | Certification by Daniel A. Baker and Curt A. Reynders pursuant to 18 U.S.C.Section 1350.  |
| 101.INS             | XBRL Instance Document                                                                    |
| 101.SCH                  | XBRL Taxonomy Extension Schema Document                                                   |
| 101.CAL                  | XBRL Taxonomy Extension Calculation Linkbase Document                                     |
| 101.DEF                  | XBRL Taxonomy Extension Definition Linkbase Document                                      |
| 101.LAB                  | XBRL Taxonomy Extension Label Linkbase Document                                           |
| 101.PRE                  | XBRL Taxonomy Extension Presentation Linkbase Document                                         |

----