Fair Value Measurements

3 Months Ended

Apr. 30, 2023

Fair Value Measurements

Note 3: Fair Value Measurements

The Company estimates and categorizes fair value by applying the following hierarchy:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2: Observable prices based on inputs not quoted in active markets but are corroborated by market data.

Level 3: Unobservable inputs that are supported by little or no market activity.

Financial assets measured at fair value on a recurring basis by level were as follows (in thousands):


	Balance as of April 30, 2023
	Level 1		Level 2		Total
Cash and cash equivalents:
Money market funds		11,268	$	—	$	11,268
Total cash equivalents	$	11,268	$	—		11,268
Cash						16,122
Total cash and cash equivalents					$	27,390

Short-term investments:
U.S. treasury securities	$	490	$	—	$	490
Corporate debt securities		—		497		497
Total short-term investments	$	490	$	497	$	987

	Balance as of January 31, 2023
	Level 1			Level 2		Total
Cash and cash equivalents:
Money market funds	$	11,380	$	—	$	11,380
Total cash equivalents	$	11,380	$	—		11,380
Cash						12,757
Total cash and cash equivalents					$	24,137

Short-term investments:
U.S. treasury securities	$	1,232	$	—	$	1,232
Corporate debt securities		—		1,491		1,491
Total short-term investments	$	1,232	$	1,491	$	2,723

The Company classifies its cash equivalents and short-term investments within Level 1 or Level 2 because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The Company has no Level 3 assets or liabilities. For the periods presented, the amortized cost of cash equivalents and marketable securities approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate.

Short-term investments due in less than a year were $1.0 million and $2.7 million as of April 30, 2023 and January 31, 2023, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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