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NOTE 5. MARKETABLE SECURITIES
 9 Months Ended
Dec. 31, 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 December 31, 2024:

 

 

Total

 

<1 Year

 

1–3 Years

 

3–5 Years

 

Money market funds

 

$

5,109,218

 

$

5,109,218

 

$

-

 

$

-

 

Treasury securities

 

 

4,686,781

 

 

-

 

 

4,686,781

 

 

-

 

Corporate bonds

 

 

39,924,838

 

 

14,907,252

 

 

17,149,882

 

 

7,867,704

 

Total

 

$

49,720,837

 

$

20,016,470

 

$

21,836,663

 

$

7,867,704

 

 

Total marketable securities and money market funds represented approximately 77% of our total assets as of December 31, 2024. Marketable securities as of December 31, 2024, had remaining maturities between 10 weeks and 52 months.

 

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included in “Marketable securities, short term” and “Marketable securities, long term.” Treasury securities are included in “Marketable securities, long term.” Accrued interest receivable was $354,529 as of December 31, 2024, and $460,627 as of March 31, 2024, and is 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 December 31, 2024, aggregated by credit rating:

 

Credit Rating

 

Fair Value

AAA

$

9,795,999

AA+

 

3,877,878

AA

 

9,755,138

AA-

 

18,408,078

A+

 

2,915,398

A

 

4,968,346

Total

$

49,720,837

 

Because we believe it is more likely than not we will recover the cost basis of our investments, we did not record any allowance 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.”

 

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 December 31, 2024

 

 

As of March 31, 2024

 

 

Level 1

 

 

Level 2

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Total

Money market funds

 

$

5,109,218

 

 

$

-

 

 

$

5,109,218

 

 

$

9,842,796

 

 

$

-

 

 

$

9,842,796

Treasury securities

 

 

-

 

 

 

4,686,781

 

 

 

4,686,781

 

 

 

-

 

 

 

-

 

 

 

-

Corporate bonds

 

 

-

 

 

 

39,924,838

 

 

 

39,924,838

 

 

 

-

 

 

 

42,706,080

 

 

 

42,706,080

Total

 

$

5,109,218

 

 

$

44,611,619

 

 

$

49,720,837

 

 

$

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 December 31 and March 31, 2024:

 

 

 

As of December 31, 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

 

$

5,109,218

 

 

$

-

 

 

$

-

 

 

$

5,109,218

 

 

$

9,842,796

 

 

$

-

 

 

$

-

 

 

$

9,842,796

Treasury securities

 

 

4,699,645

 

 

 

-

 

 

 

(12,864

)

 

 

4,686,781

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

Corporate bonds

 

 

40,289,749

 

 

 

40,688

 

 

 

(405,599

)

 

 

39,924,838

 

 

 

43,701,520

 

 

 

930

 

 

 

(996,370

)

 

 

42,706,080

Total

 

$

50,098,612

 

 

$

40,688

 

 

$

(418,463

)

 

$

49,720,837

 

 

$

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, aggregated by category of securities and length of time that individual securities had been in a continuous unrealized loss position as of December 31 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 December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury securities

 

$

4,686,781

 

 

$

(12,864

)

 

$

-

 

 

$

-

 

 

 

4,686,781

 

 

 

(12,864

)

Corporate bonds

 

 

7,364,614

 

 

 

(97,789

)

 

 

25,812,127

 

 

 

(307,810

)

 

$

33,176,741

 

 

$

(405,599

)

Total

 

$

12,051,395

 

 

$

(110,653

)

 

$

25,812,127

 

 

$

(307,810

)

 

$

37,863,522

 

 

$

(418,463

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

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

 

 

 

Quarter Ended December 31,

 

 

 

2024

 

 

2023

 

Unrealized gain (loss) on marketable securities

 

$

(290,384

)

 

$

958,564

 

Tax effects

 

 

63,536

 

 

 

(209,734

) 

Unrealized gain (loss) on marketable securities, net of tax

 

$

(226,848

)

 

$

748,830

 

 

 

 

Nine Months Ended December 31,

 

 

 

2024

 

 

2023

 

Unrealized gain from marketable securities

 

$

617,665

 

 

$

589,530

 

Tax effects

 

 

(135,386

)

 

 

(128,989

) 

Unrealized gain on marketable securities, net of tax

 

$

482,279

 

 

$

460,541