v3.26.1
Financial Instruments and Fair Value Measurements
12 Months Ended
Jun. 30, 2026
Financial Instruments and Fair Value Measurement  
Financial Instruments and Fair Value Measurements

4.    Financial Instruments and Fair Value Measurement

The carrying values of cash and cash equivalents, restricted cash, subscription receivable, accounts receivable, and accounts payable in the Company’s consolidated balance sheets approximated their fair values as of June 30, 2026 and 2025 due to their short-term nature. The carrying value of the promissory note receivable, term promissory note, equipment financing payable and finance lease obligations approximated fair value as of June 30, 2026 and 2025 as the interest rates related to the financial instruments approximated market.

The Company accounts for its investments in debt securities at fair value using Level 1 and Level 2 inputs (see Note 6 – Investments in Debt Securities for additional information). The following provides a description of the three levels of inputs that may be used to measure fair value under the standard, the types of plan investments that fall under each category, and the valuation methodologies used to measure these investments at fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable.
Level 3 – Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions).

The Company's Level 2 investments, which consist of certificates of deposit, corporate debt securities, and money market/cash-equivalent instruments, are valued using a market approach based on observable inputs obtained from a third-party pricing service. These inputs include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, benchmark yields, reported trades, and other observable market-corroborated data. The Company did not adjust the prices obtained from the pricing service. There were no transfers between levels of the fair value hierarchy during the periods presented.

Assets measured at fair value on a recurring basis are as follows (in thousands):

June 30, 2026

Fair Value Hierarchy

Quoted Prices in Active Markets for Identical Assets (Level 1)

Significant Other Observable Inputs (Level 2)

Significant Unobservable Inputs (Level 3)

Total Fair Value

Assets:

Cash equivalents (1)

$

6,306

$

1,000

$

$

7,306

U.S. Government agency securities

20,371

20,371

Certificates of deposits

8,986

8,986

Corporate debt securities

2,287

2,287

Total financial assets

$

26,677

$

12,273

$

$

38,950

(1) Cash equivalents include short-term investments in U.S. Government agency issued securities (Level 1) and certificates of deposits (Level 2).

The Company did not hold investments in debt securities at June 30, 2025.