Investments (Tables)

12 Months Ended

Sep. 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 September 30, 2022 and 2021, respectively (amounts in thousands):

September 30, 2022:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	6,016	$	—	$	(134)	$	5,882
Foreign government and agency securities, short-term	2,865		—		(38)		2,827
Commercial paper, short-term	18,245		—		(223)		18,022
Corporate debt securities, short-term	32,065		—		(528)		31,537
U.S. Treasury, long-term	3,431		—		(210)		3,221
Foreign government and agency securities, long-term	—		—		—		—
Corporate debt securities, long-term	7,692		—		(280)		7,412
Total	$	70,314	$	—	$	(1,413)	$	68,901

 

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 and acquisition-related contingent consideration as of September 30, 2022 and 2021, respectively (amounts in thousands):

September 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	$	5,882	$	5,882	$	—	$	—
Commercial paper	18,022		—		18,022		—
Foreign government and agency securities	2,827		—		2,827		—
Corporate debt securities	31,537		—		31,537		—
Total short-term investments at fair value	58,268		5,882		52,386		—
Long-term investments:
U.S. Treasury	3,221		3,221		—		—
Foreign government and agency securities	—		—		—		—
Corporate debt securities	7,412		—		7,412		—
Total long-term investments at fair value	10,633		3,221		7,412		—
Convertible senior notes hedge	—		—		—		—
Total assets at fair value	$	68,901	$	9,103	$	59,798	$	—
Liabilities:
Current liabilities:
Acquisition-related contingent consideration	$	5,920	$	—	$	—	$	5,920
Non-current liabilities:
Acquisition-related contingent consideration	—		—		—		—
Embedded conversion derivative	—		—		—
Total liabilities at fair value	$	5,920	$	—	$	—	$	5,920

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	4,811		—		4,811		—
Corporate debt securities	65,666		—		65,666		—
Commercial paper	74,357		—		74,357
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 Acquisition-related Contingent Consideration Measured at Fair Value

he following table includes a rollforward of the contingent consideration liability measured at fair value using significant unobservable inputs (Level 3) during the twelve months ended September 30, 2022 (amounts in thousands):

Balance at September 30, 2021	$	16,770
Expenses recorded due to changes in fair value	(1,358)
Payment of contingent consideration associated with the ID R&D acquisition	(9,492)
Balance at September 30, 2022	$	5,920

The following table presents the fair value and the change in fair value for the embedded conversion derivative (amounts shown 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 September 30, 2022	$	—

Summary of Fair Value Measurement Inputs and Valuation Techniques

The following tables summarize the quantitative information including the unobservable inputs related to our acquisition related accrued earnout as of September 30, 2022 and 2021, respectively (amounts in thousands):

	Fair Value at September 30, 2022		Valuation Technique	Unobservable Input	Input Used
Acquisition-related contingent consideration	$	5,920	Monte Carlo simulation	Weighted-average cost of capital	14.80	%
				Revenue weight-average cost of capital	4.40	%
				Revenue volatility	0.20

	Fair Value at September 30, 2021		Valuation Technique	Unobservable Input	Input Used
Acquisition-related contingent consideration	$	16,770	Monte Carlo simulation	Weighted-average cost of capital	11.40	%
				Revenue weight-average cost of capital	2.90	%
				Revenue volatility	0.20