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Note 15 - Fair Value Measurements
 12 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

15.    Fair Value Measurements

 

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

The following tables summarize assets and liabilities measured and recorded at fair value on a recurring basis in the Consolidated Balance Sheets as of September 30, 2025 and 2024 (in thousands):

 

  

As of September 30, 2025

 

Description

 

Total Fair Value

  

Level 1

  

Level 2

  

Level 3

 

Assets:

                

Cash equivalents

 $149,790  $148,539  $1,251  $— 

Available-for-sale securities

  262,722   8,027   254,695   — 

Investment in equity securities

  2,100   —   —   2,100 

Foreign exchange contracts

  21   —   21   — 

Total assets

 $414,633  $156,566  $255,967  $2,100 

Liabilities:

                

Net investment hedge

  33,420   —   33,420   — 

Foreign exchange contracts

  120   —   120   — 

Total liabilities

 $33,540  $—  $33,540  $— 

 

 

  

As of September 30, 2024

 

Description

 

Total Fair Value

  

Level 1

  

Level 2

  

Level 3

 

Assets:

                

Cash equivalents

 $157,990  $157,990  $—  $— 

Available-for-sale securities

  198,616   37,584   161,032   — 

Convertible debt securities

  2,000   —   —   2,000 

Foreign exchange contracts

  9   —   9   — 

Total assets

 $358,615  $195,574  $161,041  $2,000 

Liabilities:

                

Net investment hedge

  1,915   —   1,915   — 

Foreign exchange contracts

  213   —   213   — 

Total liabilities

 $2,128  $—  $2,128  $— 

 

Cash Equivalents

 

Cash equivalents consisting of money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. Cash equivalents consisting of certificates of deposit are classified within Level 2 of the fair value hierarchy because they are valued using observable market inputs, not active market prices. The Company considers all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. 

 

Available-For-Sale Securities

 

Available-for-sale securities primarily consist of highly rated corporate debt securities and U.S. government backed securities which are classified as Level 1. Investments classified as Level 2 consist of debt securities that are valued using matrix pricing and benchmarking because they are not actively traded, and bank certificates of deposit. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices.

 

Convertible Debt Securities and Investment in Equity Securities

 

In the third quarter of fiscal year 2024, the Company purchased $2.0 million principal amount of convertible notes issued by a private company. The Company accounted for the investment in these convertible notes at fair value with changes in fair value recognized in the Consolidated Statement of Operations. As of the conversion of these notes into preferred stock of the private company described below, the fair value of the convertible notes was $2.1 million.

 

During the first quarter of fiscal year 2025, the Company converted the convertible notes into 420,000 shares of preferred stock of the private company. The conversion did not result in the recognition of additional gain or loss on the convertible notes. The shares of preferred stock are equity securities and within the scope of ASC 321, Investments - Equity Securities. The Company elected the measurement alternative for its investment in the shares of preferred stock because the shares do not have a readily determinable fair value. As of  September 30, 2025, the carrying value of the investment in the shares of preferred stock was $2.1 million and is included in “Other assets” on the Consolidated Balance Sheets. The fair value determination is classified as Level 3 based on unobservable inputs which were based on the best information available in the circumstance, including transaction pricing, recent acquisition, and market participant assumptions. The unobservable inputs used in the determination of the fair value of assets classified as Level 3 have an inherent measurement uncertainty that if changed could result in higher or lower fair value measurements of the assets as of the reporting date.

 

Foreign Exchange Contracts & Net Investment Hedge

 

The Company's foreign exchange contract assets and liabilities, and its net investment hedge assets and liabilities are measured and reported at fair value using the market method valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. 

 

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

 

In addition to assets and liabilities that are recorded at fair value on a recurring basis, impairment indicators  may subject goodwill and long-lived assets to fair value measurement on a nonrecurring basis. As described in Note 8, Goodwill and Intangible Assets, the Company concluded that there was no impairment to goodwill for its Sample Management Solutions and Multiomics reporting units during fiscal year 2025 and 2024. During the second quarter of fiscal year 2024, the Company discontinued its sample sourcing product offering (a product line within the Sample Management Solutions segment). As a result, the Company recorded a $4.7 million impairment of intangible assets related to the sample sourcing business within “Impairment of goodwill and intangible assets” in its Consolidated Statements of Operations during the fiscal year ended September 30, 2024.