Investments (Tables)

9 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Investments by Type of Security

The following tables summarize investments by type of security as of June 30, 2022 and September 30, 2021 (amounts shown in thousands):

June 30, 2022:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	4,024	$	—	$	(71)	$	3,953
Foreign government and agency securities, short-term	2,877		—		(45)		2,832
Corporate debt securities, short-term	43,346		—		(600)		42,746
U.S. Treasury, long-term	5,440		—		(212)		5,228
Corporate debt securities, long-term	14,750		—		(444)		14,306
Total	$	70,437	$	—	$	(1,372)	$	69,065

September 30, 2021:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	4,222	$	1	$	—	$	4,223
Asset-backed securities, short-term	4,812		1		(2)		4,811
Corporate debt securities, short-term	140,042		6		(25)		140,023
U.S. Treasury, long-term	6,996		1		(2)		6,995
Foreign government and agency securities, long-term	2,909		—		(1)		2,908
Corporate debt securities, long-term	38,184		3		(39)		38,148
Total	$	197,165	$	12	$	(69)	$	197,108

Schedule of Fair Value of Investments Measured on Recurring Basis

The following tables represent the fair value hierarchy of the Company’s investments, convertible senior notes hedge, acquisition-related contingent consideration, and embedded conversion derivative as of June 30, 2022 and September 30, 2021, respectively (amounts shown in thousands):

June 30, 2022:	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
U.S. Treasury	$	3,953	$	3,953	$	—	$	—
Foreign government and agency securities	2,832		—		2,832		—
Corporate debt securities	42,746		—		42,746		—
Total short-term investments at fair value	49,531		3,953		45,578		—
Long-term investments:
U.S. Treasury	5,228		5,228		—		—
Corporate debt securities	14,306		—		14,306		—
Total long-term investments at fair value	19,534		5,228		14,306		—
Total assets at fair value	$	69,065	$	9,181	$	59,884	$	—
Liabilities:
Current liabilities:
Acquisition-related contingent consideration	$	4,980	$	—	$	—	$	4,980
Non-current liabilities:
Acquisition-related contingent consideration	100		—		—		100
Total liabilities at fair value	$	5,080	$	—	$	—	$	5,080

September 30, 2021:	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
U.S. Treasury	$	4,223	$	4,223	$	—	$	—
Asset-backed securities, short-term	4,811		—		4,811		—
Corporate debt securities	140,023		—		140,023		—
Total short-term investments at fair value	149,057		4,223		144,834		—
Long-term investments:
U.S. Treasury	6,995		6,995		—		—
Foreign government and agency securities	2,908		—		2,908		—
Corporate debt securities	38,148		—		38,148		—
Total long-term investments at fair value	48,051		6,995		41,056		—
Convertible senior notes hedge	48,208		—		48,208		—
Total assets at fair value	$	245,316	$	11,218	$	234,098	$	—
Liabilities:
Current liabilities:
Acquisition-related contingent consideration	$	11,050	$	—	$	—	$	11,050
Non-current liabilities:
Acquisition-related contingent consideration	5,720		—		—		5,720
Embedded conversion derivative	48,208		—		48,208		—
Total liabilities at fair value	$	64,978	$	—	$	48,208	$	16,770

Schedule of Contingent Consideration Measured at Fair Value

The following table includes a summary of the contingent consideration measured at fair value using significant unobservable inputs (Level 3) during the nine months ended June 30, 2022 (amounts shown in thousands):

Balance at September 30, 2021	$	16,770
Reduction of expense due to changes in fair value	(2,198)
Payment and issuance of stock as contingent consideration associated with the ID R&D acquisition	(9,492)
Balance at June 30, 2022	$	5,080

The following table presents the fair value and the change in fair value for the embedded conversion derivative (in thousands):

Embedded conversion derivative
Fair value as of September 30, 2021	$	48,208
Remeasurement to fair value on March 3, 2022	(19,692)
Impact of increase of authorized shares of common stock on convertible senior notes hedge	(28,516)
Fair value as of June 30, 2022	$	—

The remeasurement of the embedded conversion derivative to fair value on March 3, 2022 was offset by the remeasurement of the Notes Hedge. See details of the remeasurement of the Notes Hedge below.