Cash and Marketable Securities

6 Months Ended

Nov. 30, 2022

Cash and Cash Equivalents [Abstract]

Cash and Marketable Securities

2. CASH AND MARKETABLE SECURITIES

Cash and Cash Equivalents

Cash and cash equivalents consist of bank demand accounts, savings deposits, certificates of deposit and commercial paper with original maturities of 90 days or less. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has not experienced losses related to these balances and believes it is not exposed to significant credit risk regarding its cash and cash equivalents. Cash and cash equivalents were $100,000,000 and $44,473,000 at November 30, 2022 and May 31, 2022, respectively. The carrying value of these assets approximates fair value due to the short maturity of these instruments and is classified as Level 1 in the fair value hierarchy.

Marketable Securities

The Company has marketable securities held by banks or broker-dealers at November 30, 2022. Changes in market value are monitored and recorded on a monthly basis; in the event of a downgrade in credit quality subsequent to purchase, the marketable securities investment is evaluated to determine the appropriate action to take to minimize the overall risk to our marketable securities portfolio. These securities are classified as available for sale. The primary objective of management’s short-term investment activity is to preserve capital for the purpose of funding current operations, capital expenditures and business acquisitions; short-term investments are not entered into for trading or speculative purposes. These securities

are recorded at fair value based on recent trades or pricing models and therefore meet the Level 2 criteria. Interest income on these investments is recorded within other income on the income statement. Adjustments in the fair value of these assets are recorded in other comprehensive income.

Marketable Securities as of November 30, 2022 and May 31, 2022 are listed below by classification and remaining maturities.

(in thousands)	Maturity		November 30, 2022		May 31, 2022
Commercial Paper & Corporate Bonds		0 - 90 days	$	61,104	$	106,497
		91 - 180 days		34,200		61,373
		181 days - 1 year		57,151		91,706
		1 - 2 years		23,883		77,002
Total Marketable Securities			$	176,338	$	336,578

The components of marketable securities, consisting of commercial paper and corporate bonds, at November 30, 2022 are as follows:

(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Commercial Paper & Corporate Bonds	$	179,650	$	—	$	(3,312	)	$	176,338

The components of marketable securities, consisting of commercial paper and corporate bonds, at May 31, 2022 are as follows:

(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Commercial Paper & Corporate Bonds	$	339,540	$	7	$	(2,969	)	$	336,578