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Note 3 - Fair Value Measurements
6 Months Ended
Dec. 31, 2014
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
(3)
Fair Value Measurements
 
A fair value hierarchy has been established which requires the Company to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used to measure fair value:
 
 
Level 1
Quoted prices in active markets for identical assets or liabilities.
Level 2
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
 
The following table sets forth the financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2014 and June 30, 2014, by level within the fair value hierarchy. The assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
 
The Company’s long-term and short-term investments have been classified as Level 2, which have been initially valued at the transaction price and subsequently revalued, at the end of each reporting period, utilizing a third party pricing service. The pricing service utilizes industry standard valuation models and observable market inputs to determine value that include surveying the bond dealer community, obtaining benchmark quotes, incorporating relevant trade data, and updating spreads daily. There have been no transfers of assets or liabilities between the fair value measurement classifications during the periods presented.
 
 
 
 
 
 
 
Quoted Prices in
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active Markets for
 
 
Significant Other
 
 
Significant
 
 
 
 
 
 
 
Identical Assets
 
 
Observable Inputs
 
 
Unobservable
 
 
 
Total
 
 
(Level 1)
 
 
(Level 2)
 
 
Inputs (Level 3)
 
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents
  $ 26.9     $ 26.9     $     $  
Short-term investments available-for-sale
    7.1             7.1        
Long-term investments available-for-sale
    5.8             5.8        
                                 
Total
  $ 39.8     $ 26.9     $ 12.9     $  
 
 
 
 
 
 
 
 
Quoted Prices in
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active Markets for
 
 
Significant Other
 
 
Significant
 
 
 
 
 
 
 
Identical Assets
 
 
Observable Inputs
 
 
Unobservable
 
 
 
Total
 
 
(Level 1)
 
 
(Level 2)
 
 
Inputs (Level 3)
 
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents
  $ 36.9     $ 36.9     $     $  
Long-term investments available-for-sale
    10.0             10.0        
                                 
Total
  $ 46.9     $ 36.9     $ 10.0        
   
 
10

 
 
 
Biota Pharmaceuticals, Inc.
 
Notes to Unaudited Condensed Consolidated Financial Statements

(for the quarterly period ended December 31, 2014)
 
Cash equivalents consist primarily of money market funds. Short-term investments consist of corporate securities and have a maturity less than 365 days from the date of acquisition. Long-term investments consist of U.S. agency securities, U.S. Treasury securities, and corporate securities classified as available-for-sale and have maturities greater than 365 days from the date of acquisition.
 
The Company has had no realized gains or losses from the sale of investments for the six months ended December 31, 2014. The following table shows the unrealized gains and losses and fair values for those investments as of December 31, 2014 and June 30, 2014, aggregated by major security type:
 
 
 
 
 
 
 
Unrealized
 
 
Unrealized
 
 
 
 
 
 
 
At Cost
 
 
Gains
 
 
(Losses)
 
 
At Fair Value
 
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
  $ 26.9     $     $     $ 26.9  
Debt securities of U.S. government agencies
    2.5                   2.5  
U.S. Treasury securities
    7.6             (0.1
)
    7.5  
Corporate Securities
    2.9                   2.9  
                                 
Total
  $ 39.9     $     $ (0.1
)
  $ 39.8  
 
 
 
 
 
 
 
Unrealized
 
 
Unrealized
 
 
 
 
 
 
 
At Cost
 
 
Gains
 
 
(Losses)
 
 
At Fair Value
 
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
  $ 36.9     $     $     $ 36.9  
Debt securities of U.S. government agencies
    4.9                   4.9  
U.S. Treasury securities
    5.1                   5.1  
                                 
Total
  $ 46.9     $     $     $ 46.9  
 
 
As of December 31, 2014 and June 30, 2014, the Company had investments in an unrealized loss position. The Company has determined that the unrealized losses of less than $0.1 million on these investments at December 31, 2014 and June 30, 2014 are temporary in nature and expects the securities to mature at their stated maturity principal.