v3.26.1
Fair Value of Financial Instruments
 3 Months Ended
Dec. 31, 2025
Fair Value of Financial Instruments [Abstract]  
Fair Value of Financial Instruments

Note 4: Fair Value of Financial Instruments

 

ASC 820, Fair Value Measurements (“ASC 820”) states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tiered fair value hierarchy, which prioritizes which inputs should be used in measuring fair value, is comprised of: (Level I) observable inputs such as quoted prices in active markets; (Level II) inputs other than quoted prices in active markets that are observable either directly or indirectly and (Level III) unobservable inputs for which there is little or no market data. The fair value hierarchy requires the use of observable market data when available in determining fair value. Our assets and liabilities that were measured at fair value on a recurring basis were as follows:

 

    December 31, 2025     September 30, 2025  
    Fair Value     Level I     Level II     Level III     Fair Value     Level I     Level II     Level III  
U.S. government securities   $ 21,795     $ 21,795     $ -     $ -     $ 18,391     $ 18,391     $ -     $ -  
Certificates of deposit     195,871       -       195,871       -       47,972       -       47,972       -  
Money market funds     5,572       5,572       -       -       45,532       45,532       -       -  
Liability-classified Warrants     4,134       -       -       4,134       19,285               -       19,285  
Total   $ 227,372     $ 27,367     $ 195,871     $ 4,134     $ 131,180     $ 63,923     $ 47,972     $ 19,285  

 

Our U.S. government securities are classified within Level I of the fair value hierarchy because their fair values are based on quoted prices in active markets. Our certificates of deposit are classified within Level II of the fair value hierarchy and are measured using observable market inputs.

 

Our liability-classified warrants are measured at fair value on a recurring basis using Level III inputs. Refer to Note 9 for details on the valuation technique and significant unobservable inputs used and a rollforward of the fair value balance.  

 

Our cash, cash equivalents and investments classified by security type as of December 31, 2025 and September 30, 2025 consisted of the following:

 

    December 31, 2025  
    Adjusted
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value     Cash and
Cash
Equivalents		     Short-Term
Investments		  
Cash   $ 105,255     $ -     $      -     $ 105,255     $ 105,255     $ -  
U.S. government securities     21,435       360       -       21,795       -       21,795  
Certificates of deposit and time deposits     195,871       -       -       195,871       27,196       168,675  
Money market funds     5,572       -       -       5,572       5,572       -  
Total cash, cash equivalents and short-term investments   $ 328,133     $ 360     $ -     $ 328,493     $ 138,023     $ 190,470  

 

    September 30, 2025  
    Adjusted
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value     Cash and
Cash
Equivalents		     Short-Term
Investments		  
Cash   $ 76,441     $ -     $ -     $ 76,441     $ 76,441      $    
U.S. government securities     80,915       393               -       81,308       62,917       18,391  
Certificates of deposit and time deposits     48,656       -       -       48,656       684       47,972  
Money market funds     45,532       -       -       45,532       45,532          
Total cash, cash equivalents and short-term investments   $ 251,544     $ 393     $ -     $ 251,937     $ 185,574     $ 66,363  

 

As of December 31, 2025, all of our short-term investments had contractual maturity dates within one year.

 

Disclosure of Fair Values

 

Our financial instruments that are not re-measured at fair value include accounts receivable, notes receivable, other receivables, accounts payable, accrued expenses, short-term loan and long-term payables. The carrying values of these financial instruments materially approximate their fair values.