XML 23 R10.htm IDEA: XBRL DOCUMENT v3.24.2
FAIR VALUE OF FINANCIAL INSTRUMENTS
 12 Months Ended
May 31, 2024
FAIR VALUE OF FINANCIAL INSTRUMENTS  
FAIR VALUE OF FINANCIAL INSTRUMENTS

 3. FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The Company’s financial instruments are measured at fair value consistent with authoritative guidance. This authoritative guidance defines fair value, establishes a framework for using fair value to measure assets and liabilities, and disclosures required related to fair value measurements.

 

The guidance establishes a fair value hierarchy based on inputs to valuation techniques that are used to measure fair value that is either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:

 

Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

Level 2 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings.

 

Level 3 - Unobservable inputs that are supported by little or no market activities.

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of May 31, 2024:

 

 

 

Balance as of

 

 

 

 

 

 

 

(In thousands)

 

May 31, 2024

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Money market funds

 

$44,280

 

 

$44,280

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$44,280

 

 

$44,280

 

 

$-

 

 

$-

 

  

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of May 31, 2023:

 

 

 

Balance as of

 

 

 

 

 

 

 

(In thousands)

 

May 31, 2023

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Money market funds

 

$27,022

 

 

$27,022

 

 

$-

 

 

$-

 

U. S. treasury securities

 

 

17,853

 

 

 

17,853

 

 

 

-

 

 

 

-

 

Total

 

$44,875

 

 

$44,875

 

 

$-

 

 

$-

 

  

Included in money market funds as of May 31, 2024 and 2023 was $0.2 million restricted cash, representing a security deposit for the Company’s United States manufacturing and office space lease which is included in other non-current assets in the consolidated balance sheets.

 

There were no financial liabilities measured at fair value as of May 31, 2024 and 2023.

 

There were no transfers between Level 1 and Level 2 fair value measurements during the fiscal years ended May 31, 2024 and 2023.

 

The carrying amounts of financial instruments including cash equivalents, accounts receivables, accounts payable and certain other accrued liabilities, approximate fair value due to their short maturities.