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Note 5 - Fair Value Measurements

6 Months Ended

Dec. 31, 2024

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

(5)

Fair Value Measurements

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation methodologies, including market, income and cost approaches is permissible. We consider the principal or most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy. The accounting guidance for fair value measurements establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value based on the reliability of inputs. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect their placement within the fair value hierarchy levels.

We have categorized our cash equivalents and investments within the fair value hierarchy as follows:

Level 1 – applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. These Level 1 assets include our corporate money market funds that are classified as cash equivalents. We have categorized our cash equivalents as Level 1 assets as there are quoted prices in active markets for identical assets or liabilities.

Level 2 – applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. At December 31, 2024 and June 30, 2024, we have categorized our investments as Level 2 assets.

Level 3 – applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. We held no Level 3 assets or liabilities at December 31, 2024 or June 30, 2024.

Assets and Liabilities Measured at Fair Value on a Recurring Basis. The following tables show, by level within the fair value hierarchy, our assets and liabilities that are measured at fair value on a recurring basis at December 31, 2024 and June 30, 2024. There were no transfers between levels of fair value measurements during the periods presented.

		Fair Value Measurements at December 31, 2024
Financial Assets	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Corporate money market funds ⁽¹⁾	Cash and cash equivalents	$	13,830	$	-	$	-	$	13,830
U.S. Treasury bills ⁽²⁾	Investments, short-term		-		82,049		-		82,049
U.S. Treasury notes ⁽²⁾	Investments, long-term		-		45,092		-		45,092
Total		$	13,830	$	127,141	$	-	$	140,971

		Fair Value Measurements at June 30, 2024
Financial Assets	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Corporate money market funds ⁽¹⁾	Cash and cash equivalents	$	33,487	$	-	$	-	$	33,487
U.S. Treasury bills ⁽²⁾	Investments, short-term		-		91,319		-		91,319
U.S. Treasury notes ⁽²⁾	Investments, long-term		-		34,772		-		34,772
Total		$	33,487	$	126,091	$	-	$	159,578

(1)

Our corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the quarter is used to determine its fair value.

(2)

We have current and non-current debt securities (U.S. Treasury bills and notes) intended to enhance returns on our cash as well as to fund future obligations.

There were no investments that have been in a continuous loss position for more than one year, and there have been no other-than-temporary impairments recognized.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis. We did not record any other-than-temporary impairments on assets required to be measured at fair value on a non-recurring basis during fiscal 2025 or 2024.

Assets and Liabilities Measured at Fair Value for Disclosure Purposes Only. We had no outstanding bank borrowings at December 31, 2024 and June 30, 2024. We have historically categorized our outstanding bank borrowings as a Level 2 liability.