Note 5 - Fair Value of Financial Instruments

12 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Fair Value Disclosures [Text Block]

5. Fair Value of Financial Instruments

The Company’s financial instruments generally include cash and cash equivalents, short-term investments, trade accounts, notes receivable and accounts payable. Due to the short-term maturities of cash and cash equivalents, trade accounts and notes receivable and accounts payable, the carrying amounts approximate fair value on the respective balance sheet dates.

The Company measures its short-term investments at fair value on a recurring basis.

The following tables present the fair value of the Company’s short-term investments and note receivable on sale of subsidiary by valuation hierarchy and input (in thousands):

	AS OF SEPTEMBER 30, 2024
	(Level 1)		(Level 2)		(Level 3)		Totals
Recurring:
Short-term investments				.
Corporate bonds	$	—	$	21,849	$	—	$	21,849
U.S. treasury securities and securities of U.S. government-sponsored agency		—		8,378		—		8,378
Total recurring	$	—	$	30,227	$	—	$	30,227
Nonrecurring:
Note receivable on sale of subsidiary	$	—	$	—	$	2,600	$	2,600

	AS OF SEPTEMBER 30, 2023
	(Level 1)		(Level 2)		(Level 3)		Totals
Short-term investments:
Corporate bonds	$	—	$	11,295	$	—	$	11,295
U.S. treasury securities and securities of U.S. government-sponsored agency		—		3,626		—		3,626
Total	$	—	$	14,921	$	—	$	14,921

Assets and Liabilities Measured on a Nonrecurring Basis

The Company performed a fair value analysis of the $3.5 million promissory note obtained in connection with its subsidiary sale as of the August 2024 transaction date. The measurements utilized to determine the implied fair value of the note receivable obtained represented significant unobservable inputs (Level 3).  The derivation of discount rate utilized in the analysis was based on comparable market yields.  Based on the analysis, the Company recorded a $0.9 million discount to fair value on this note receivable.  Also see Note 3 to these consolidated financial statements. 

The measurements utilized to determine the implied fair value of the Company's Emerging Markets asset group as of  September 30, 2024 represented significant unobservable inputs (Level 3). The Company determined the fair value of this asset group to be approximately zero.  See Note 11 for more information.