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INVESTMENTS | 6 Months Ended
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Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
INVESTMENTS | 3. INVESTMENTS The following tables summarize investments by type of security as of March 31, 2024 and September 30, 2023 (amounts in thousands):
March 31, 2024: | Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Market Value
Available-for-sale securities: |  |  |  |  |  |  |
U.S. Treasury, short-term | $ | 19,203 |  |  | $ | — |  |  | $ | (51) |  |  | $ | 19,152 |
Commercial paper, short-term | 16,252 |  |  | 1 |  |  | (10) |  |  | 16,243 |
Corporate debt securities, short-term | 7,626 |  |  | 1 |  |  | (35) |  |  | 7,592 |
U.S. Treasury, long-term | 4,397 |  |  | — |  |  | (18) |  |  | 4,379 |
Corporate debt securities, long-term | 1,961 |  |  | — |  |  | (3) |  |  | 1,958 |
Total | $ | 49,439 |  |  | $ | 2 |  |  | $ | (117) |  |  | $ | 49,324 |
September 30, 2023: | Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Market Value
Available-for-sale securities: |  |  |  |  |  |  |
U.S. Treasury, short-term | $ | 40,329 |  |  | $ | 1 |  |  | $ | (76) |  |  | $ | 40,254 |
Corporate debt securities, short-term | 34,545 |  |  | — |  |  | (99) |  |  | 34,446 |
U.S. Treasury, long-term | 1,371 |  |  | — |  |  | (67) |  |  | 1,304 |
Total | $ | 76,245 |  |  | $ | 1 |  |  | $ | (242) |  |  | $ | 76,004 |
All of the Company’s investments are designated as available-for-sale debt securities. As of March 31, 2024 and September 30, 2023, the Company’s short-term investments have maturity dates of less than one year from the balance sheet date and the Company’s long-term investments have maturity dates of greater than one year from the balance sheet date. The contractual maturities of the available-for-sale securities held at March 31, 2024 are as follows: $43.0 million within one year and $6.3 million beyond one year to five years. As of September 30, 2023, the contractual maturities of the available-for-sale securities were $74.7 million within one year and $1.3 million beyond one year to five years. The following tables represent the fair value hierarchy of the Company’s investments and acquisition-related contingent consideration as of March 31, 2024 and September 30, 2023, respectively (amounts in thousands):
March 31, 2024: | Balance |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Short-term investments: |  |  |  |  |  |  |
U.S. Treasury | $ | 19,152 |  |  | $ | 19,152 |  |  | $ | — |  |  | $ | — |
Commercial paper | 16,243 |  |  | — |  |  | 16,243 |  |  | — |
Corporate debt securities | 7,592 |  |  | — |  |  | 7,592 |  |  | — |
Total short-term investments at fair value | 42,987 |  |  | 19,152 |  |  | 23,835 |  |  | — |
Long-term investments: |  |  |  |  |  |  |
U.S. Treasury | 4,379 |  |  | 4,379 |  |  | — |  |  | — |
Corporate debt securities | 1,958 |  |  | — |  |  | 1,958 |  |  | — |
Total long-term investments at fair value | 6,337 |  |  | 4,379 |  |  | 1,958 |  |  | — |
Total assets at fair value | $ | 49,324 |  |  | $ | 23,531 |  |  | $ | 25,793 |  |  | $ | — |
September 30, 2023: | Balance |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Short-term investments: |  |  |  |  |  |  |
U.S. Treasury | $ | 40,254 |  |  | $ | 40,254 |  |  | $ | — |  |  | $ | — |
Corporate debt securities | 34,446 |  |  | — |  |  | 34,446 |  |  | — |
Total short-term investments at fair value | 74,700 |  |  | 40,254 |  |  | 34,446 |  |  | — |
Long-term investments: |  |  |  |  |  |  |
U.S. Treasury | 1,304 |  |  | 1,304 |  |  | — |  |  | — |
Total long-term investments at fair value | 1,304 |  |  | 1,304 |  |  | — |  |  | — |
Total assets at fair value | $ | 76,004 |  |  | $ | 41,558 |  |  | $ | 34,446 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Acquisition-related contingent consideration | $ | 7,976 |  |  | $ | — |  |  | $ | 7,976 |  |  |
Total liabilities at fair value | $ | 7,976 |  |  | $ | — |  |  | $ | 7,976 |  |  | $ | — |
•Level 1: Includes investments in U.S. Government and agency securities, which are valued based on recently executed transactions in the same or similar securities. •Level 2: Corporate debt securities. Corporate debt securities are valued using quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. As of March 31, 2024, no acquisition-related contingent consideration is recorded in the condensed consolidated balance sheets. The Company recorded the acquisition date fair value based on the likelihood of contingent earnout payments related to the Company’s acquisition of ID R&D Inc., as part of the consideration transferred. The earnout payments consist of cash payments and issuances of Common Stock and are subsequently remeasured to fair value each reporting date. Additionally, for contingent consideration to be settled in a variable number of shares of Common Stock, the Company used the most recent Mitek share price as reported by the Nasdaq Capital Market to determine the fair value of the shares expected to be issued. The Company previously classified the contingent consideration as Level 3, due to the lack of relevant observable inputs and market activity. The second earnout period ended on May 28, 2023 and the Company recorded the value based on the calculated final payout and reclassified the contingent consideration as Level 2 during the third quarter of fiscal 2023. The contingent consideration was settled during the three months ended December 31, 2023. The following table includes a roll-forward of the contingent consideration liability during the six months ended March 31, 2024 (amounts in thousands):
Balance at September 30, 2023 | $ | 7,976 |
Expenses recorded due to changes in fair value | 136 |
Cash payment of contingent consideration associated with the ID R&D acquisition | (4,641) |
Issuance of common stock as contingent consideration associated with the ID R&D acquisition | (3,471) |
Balance at March 31, 2024 | $ | — |

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