NOTE 5. MARKETABLE SECURITIES

3 Months Ended

Jun. 30, 2024

Notes

NOTE 5. MARKETABLE SECURITIES

NOTE 5. MARKETABLE SECURITIES

The following table shows the major categories of our marketable securities and their contractual maturities as of June 30, 2024:

	Total		<1 Year		1–3 Years		3–5 Years
Money market funds	$	5,775,400	$	5,775,400	$	-	$	-
Corporate bonds		47,176,191		15,670,927		23,206,787		8,298,477
Total	$	52,951,591	$	21,446,327	$	23,206,787	$	8,298,477

Total marketable securities represented approximately 80% of our total assets as of June 30, 2024. Marketable securities as of June 30, 2024, had remaining maturities between four and 58 months.

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included on the balance sheets in “Marketable securities, short term” and “Marketable securities, long term.” Accrued interest receivables were $334,757 as of June 30, 2024, and $460,627 as of March 31, 2024, and are included in the balance sheets in “Prepaid expenses and other assets.”

We monitor the credit ratings of our marketable securities at least quarterly as reported by Standard & Poor’s. The following table summarizes the fair values of our marketable securities as of June 30, 2024, aggregated by credit rating:

Credit Rating		Fair Value
AAA	$	5,775,400
AA+		3,798,418
AA		9,553,228
AA-		21,145,888
A+		2,878,474
A		9,800,183
Total	$	52,951,591

The following table shows the estimated fair value of our marketable securities, aggregated by fair value hierarchy inputs used in estimating their fair values:

	As of June 30, 2024						As of March 31, 2024
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	5,775,400	$	-	$	5,775,400	$	9,842,796	$	-	$	9,842,796
Corporate bonds		-		47,176,191		47,176,191		-		42,706,080		42,706,080
Total	$	5,775,400	$	47,176,191	$	52,951,591	$	9,842,796	$	42,706,080	$	52,548,876

The following table shows the amortized cost, fair value and gross unrealized holding gains and losses of our marketable securities as of June 30 and March 31, 2024:

	As of June 30, 2024									As of March 31, 2024
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Money market funds	$	5,775,400	$	-	$	-		$	5,775,400	$	9,842,796	$	-	$	-		$	9,842,796
Corporate bonds		48,134,879		-		(958,688	)		47,176,191		43,701,520		930		(996,370	)		42,706,080
Total	$	53,910,279	$	-	$	(958,688	)	$	52,951,591	$	53,544,316	$	930	$	(996,370	)	$	52,548,876

The following table shows the gross unrealized holding losses and estimated fair value of our marketable securities for which an allowance for credit losses has not been recorded, aggregated by category of securities and length of time that individual securities had been in a continuous unrealized loss position as of June 30 and March 31, 2024.

	Less Than 12 Months					12 Months or Greater					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
As of June 30, 2024
Corporate bonds	$	10,556,505	$	(23,647	)	$	36,619,686	$	(935,041	)	$	47,176,191	$	(958,688	)
Total	$	10,556,505	$	(23,647	)	$	36,619,686	$	(935,041	)	$	47,176,191	$	(958,688	)
As of March 31, 2024
Corporate bonds	$	3,154,764	$	(4,902	)	$	36,551,534	$	(991,468	)	$	39,706,298	$	(996,370	)
Total	$	3,154,764	$	(4,902	)	$	36,551,534	$	(991,468	)	$	39,706,298	$	(996,370	)

None of the securities were impaired at acquisition, and subsequent declines in fair value are attributable to interest rate increases. We do not intend to sell, and it is not more likely than not that we will be required to sell, these securities before recovery of their amortized cost basis. The issuers continue to make timely interest payments on these securities. Because we believe it is more likely than not we will recover the cost basis of our investments, we did not record any impairment attributable to credit losses.

None of the marketable securities purchased during the period had experienced more-than-insignificant deterioration in credit quality since its origination and were therefore not considered “Purchased Financial Assets with Credit Deterioration.”

Unrealized losses on our marketable securities and their tax effects are as follows:

	Quarter Ended June 30,
	2024			2023
Unrealized gain (loss) from marketable securities	$	36,751		$	(300,437	)
Tax effects		(8,041	)		65,736
Unrealized gain (loss) from marketable securities, net of tax	$	28,710		$	(234,701	)