Note 4 - Fair Value of Financial Instruments

9 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Fair Value Disclosures [Text Block]

4. Fair Value of Financial Instruments

The Company’s financial instruments generally include cash and cash equivalents, short-term investments, trade accounts and financing receivables and accounts payable. Due to the short-term maturities of cash and cash equivalents, trade accounts receivable and accounts payable, the carrying amounts of these financial instruments are deemed to approximate their 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, note receivable on sale of subsidiary and Emerging Markets asset group intangible assets by valuation hierarchy and input (in thousands):

	As of June 30, 2025
	(Level 1)		(Level 2)		(Level 3)		Totals
Short-term investments:
Corporate bonds	$	—	$	1,997	$	—	$	1,997

	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	$	—	$	30,227	$	—	$	30,227
Nonrecurring:
Note receivable on sale of subsidiary	$	—	$	—	$	2,600	$	2,600

Assets and liabilities Measured on a Nonrecurring basis

In August 2024, the Company performed a fair value analysis on its $3.5 million promissory note obtained in connection with its subsidiary sale as of the transaction date.  The measurements utilized to determine the implied fair value of the note receivable obtained 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 5 for more information.

At September 30, 2024, the Company performed a recoverability assessment on its long-lived assets of its Emerging Markets asset group in which its carrying value was compared to the estimated undiscounted cash flows over the remaining useful life of the asset group's primarily asset, its developed technology.  Accordingly, a fair value analysis was performed.  Based on the assessment, the Company determined the fair value of the asset was less than its carrying value and recorded an impairment charge of $2.8 million on this asset group, which impaired its intangible assets in their entirety. The Company determined the fair value of this asset group to be approximately zero. The measurements utilized to determine the implied fair value represented significant unobservable inputs (Level 3).