Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Fair Value Measurements

v3.24.1.u1
Note 5 - Fair Value Measurements
 6 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 5. Fair Value Measurements

 

The Company determines the fair value of its assets and liabilities based on the market price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair value of U.S. treasury securities and certificates of deposit based on valuations provided by an external pricing service, which obtains them from a variety of industry standard data providers.

 

The Company’s investments are categorized according to the three-level fair value hierarchy which distinguishes between observable and unobservable inputs, in one of the following levels:

 

Level 1- Quoted prices in active markets for identical assets or liabilities.

 

Level 2- Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

 

Level 3- Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those with fair value measurements that are determined using pricing models, discounted cash flow valuation or similar techniques, as well as significant management judgment or estimation.

 

The following provides information regarding fair value measurements for the Company’s investment securities as of March 31, 2024, according to the three-level fair value hierarchy:

 

   

Fair Value Measurements as of March 31, 2024

  

(In thousands)

  

Total

    

Level 1

    

Level 2

    

Level 3

  

Cash equivalents:

                                

Money market funds

   $ 12,925     $ 12,925     $ -     $ -  

Total cash equivalents

   $ 12,925     $ 12,925     $ -     $ -  

Investment securities:

                                

Certificates of deposit

   $ 2,437     $ -     $ 2,437     $ -  

U.S. Treasury securities

     131,175       -       131,175       -  

Total investment securities

   $ 133,612     $ -     $ 133,612     $ -  

 

The following provides information regarding fair value measurements for the Company’s investment securities as of September 30, 2023, according to the three-level fair value hierarchy:

 

   

Fair Value Measurements as of September 30, 2023

  

(In thousands)

  

Total

    

Level 1

    

Level 2

    

Level 3

  

Cash equivalents:

                                

Money market funds

   $ 26,467     $ 26,467     $ -     $ -  

Total cash equivalents

   $ 26,467     $ 26,467     $ -     $ -  

Investment securities:

                                

Certificates of deposit

   $ 8,115     $ -     $ 8,115     $ -  

U.S. Treasury securities

     128,514       -       128,514       -  

Total investment securities

   $ 136,629     $ -     $ 136,629     $ -  

 

During the three and six months ended March 31, 2024, and the year ended September 30, 2023, the Company owned no Level 3 securities and there were no transfers within the fair value level hierarchy.

 

Non-financial assets such as equipment and leasehold improvements, goodwill and intangible assets, and right-of-use assets for operating leases are subject to non-recurring fair value measurements if they are deemed impaired. The Company had no re-measurements of non-financial assets to fair value in the three or six months ended March 31, 2024, and the year ended September 30, 2023.