NOTE 3 — INVESTMENTS IN MARKETABLE DEBT SECURITIES

The Company only invests in liquid, high quality debt securities. Nonetheless, all of these investments are subject to interest rate and credit risk that may result in fluctuations in the fair value of the investments. To minimize the exposure due to an adverse shift in interest rates, the Company generally invests in securities with expected maturities of two years or less while maintaining a weighted average maturity of one year or less. As of June 30, 2026, all investments in marketable debt securities with an aggregate fair value of $97.2 million are scheduled to mature during the 12-month period ending June 30, 2027.

During the fiscal year ended June 30, 2026, marketable debt securities for $157.1 million matured and approximately $178.2 million was invested in additional marketable debt securities. The Company did not sell any marketable debt securities prior to the scheduled maturity dates for the fiscal years ended June 30, 2026 and 2025.

Accrued interest receivable on all marketable debt securities amounted to $0.5 million and $0.7 million as of June 30, 2026 and 2025, respectively. Accrued interest is included in other current assets in the accompanying consolidated balance sheets.

For the fiscal years ended June 30, 2026 and 2025, the Company did not recognize any allowance for credit losses or impairment related to investments in marketable debt securities.

The following table summarizes the unrealized gains and losses that result in differences between the amortized cost basis and fair value of the Company’s marketable debt securities held as of June 30, 2026 (in thousands):

The following table summarizes the unrealized gains and losses that result in differences between the amortized cost basis and fair value of the Company’s marketable debt securities held as of June 30, 2025 (in thousands):

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