Note 3 - Investments

9 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Investment [Text Block]

Note 3. Investments

The Company invests in certificates of deposit (“CDs”) that are fully insured by the Federal Deposit Insurance Corporation (“FDIC”) as well as U.S. Treasury and money market securities. Historically, the Company’s investment portfolio had been classified as held-to-maturity and recorded at amortized cost. During the second quarter of fiscal 2022, the Company sold investments and has reclassified its investment portfolio to available-for-sale, which is reported at fair value. The unrealized gain or loss on investment securities is recorded in other comprehensive income, net of tax.

At June 30, 2022, available-for-sale investments consist of the following:

	June 30, 2022
(In thousands)	Cost		Unrealized Gains		Unrealized Losses		Fair Value
Short-Term
Certificates of deposit		3,962		1		69		3,894
Investment securities – short-term	$	3,962	$	1	$	69	$	3,894
Long-Term
U.S treasury securities	$	16,167	$	-	$	825	$	15,342
Certificates of deposit		10,000		1		348		9,652
Investment securities – long-term	$	26,167	$	1	$	1,173	$	24,994

At June 30, 2022, investments in debt securities in an unrealized loss position were as follows:

	In Unrealized Loss Position For Less Than 12 Months				In Unrealized Loss Position For Greater Than 12 Months
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S treasury securities	$	15,342	$	825	$	-	$	-
Certificates of deposit		9,637		267		3,569		151
Investment securities	$	24,979	$	1,092	$	3,569	$	151

As of June 30, 2022, there were 60 securities in an unrealized loss position which is due to the securities paying lower interest rates than the market. As of June 30, 2022, there are no securities which are other than temporarily impaired as the Company intends to hold these securities until their value recovers and there is negligible credit risk due to the nature of the securities which are backed by the FDIC and US federal government.