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Note 6 - Fair Value Measurements
 9 Months Ended
Jun. 30, 2021
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
 

6.

FAIR VALUE MEASUREMENTS

 

The Company’s financial instruments consist principally of cash equivalents, short and long-term marketable securities, accounts receivable and accounts payable. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows:

 

 

Level 1:

Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date.

 

 

Level 2:

Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date.

 

 

Level 3:

Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation.

 

The fair value of the Company’s cash equivalents and marketable securities was determined based on Level 1 and Level 2 inputs. The Company did not have any marketable securities in the Level 3 category as of June 30, 2021 or September 30, 2020. The Company believes that the recorded values of its other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.

 

Instruments measured at fair value on a recurring basis

 

Cash equivalents and marketable securities: The following tables present the Company’s cash equivalents and marketable securities’ costs, gross unrealized gains and losses, and fair value by major security type recorded as cash equivalents or short-term or long-term marketable securities as of June 30, 2021, and September 30, 2020. Unrealized gains and losses from the remeasurement of marketable securities are recorded in accumulated other comprehensive income until recognized in earnings upon the sale or maturity of the security.

 

   

June 30, 2021

  
   

Cost Basis

    

Unrealized

Gain

    

Fair Value

    

Cash

Equivalents

    

Short-term

Securities

    

Long-term

Securities

  

Level 1:

                                                

Money Market Funds

   $ 208     $ -     $ 208     $ 208     $ -     $ -  
                                                 

Level 2:

                                                

Certificates of deposit

     1,193       -       1,193       -       469       724  

Municipal securities

     5,879       2       5,881       -       4,451       1,430  

Corporate bonds

     1,199       -       1,199       -       1,056       143  

Subtotal

     8,271       2       8,273       -       5,976       2,297  
                                                 
Total    $ 8,479     $ 2     $ 8,481     $ 208     $ 5,976     $ 2,297  

 

   

September 30, 2020

  
   

Cost Basis

    

Unrealized

Gain

    

Fair Value

    

Cash

Equivalents

    

Short-term

Securities

    

Long-term

Securities

  

Level 1:

                                                

Money Market Funds

   $ 365     $ -     $ 365     $ 365     $ -     $ -  
                                                 

Level 2:

                                                

Certificates of deposit

     1,195       -       1,195       -       -       1,195  

Municipal securities

     3,777       4       3,781       -       2,431       1,350  

Corporate bonds

     3,091       3       3,094       -       1,834       1,260  

Subtotal

     8,063       7       8,070       -       4,265       3,805  
                                                 
Total    $ 8,428     $ 7     $ 8,435     $ 365     $ 4,265     $ 3,805  

 

Instruments measured at fair value on a non-recurring basis

 

Nonfinancial assets: Nonfinancial assets such as goodwill, other intangible assets, long-lived assets held and used, and right-of-use assets (“ROU assets”) are measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized or for a business combination. 

 

Goodwill and intangible assets are recognized at fair value during the period in which an acquisition is completed, from updated estimates during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for intangible assets acquired, were based on Level 3 inputs. The Company estimates the fair value of these long-lived assets on a non-recurring basis based on a market valuation approach, engaging independent valuation experts to assist in the determination of fair value.

 

The following table presents nonfinancial assets that were subject to fair value measurement during the nine months ended June 30, 2021. There were no business combinations or indicators of impairment for the nine months ended June 30, 2020.

 

   

Carrying

Value

    

Level 1

    

Level 2

    

Level 3

    

Gain/ (Loss)

  

Goodwill from Zonehaven acquisition

   $ 15,403     $ -     $ -     $ 15,403     $ -  

Intangible assets from Zonehaven acquisition

   $ 9,974     $ -     $ -     $ 9,974     $ -  

Goodwill from Amika Mobile asset purchase

   $ 6,001     $ -     $ -     $ 6,001     $ -  

Intangibles from Amika Mobile asset purchase

   $ 2,703     $ -     $ -     $ 2,703     $ -  

Operating lease ROU asset from Amika Mobile asset purchase

   $ 259     $ -     $ -     $ 259     $ -  

 

Foreign currency forward contract: In August 2020, the Company entered into a foreign currency forward contract as an economic hedge against exposure to changes in the Canadian dollar in connection with the Amika Mobile asset purchase. At September 30, 2020, the notional value of the foreign currency forward contract was CAD$6,955 with a maturity date in October 2020. The foreign currency forward contract was classified under Level 2 of the fair value hierarchy. The valuation techniques used to measure the fair value were based on quoted market prices. On October 1, 2020, the foreign currency forward contract was settled for CAD$6,955 (USD$5,281), resulting in a realized loss of $48 on the contract that was recorded in earnings as other income (expense). The foreign currency forward contract liability was recorded in accrued liabilities in the consolidated balance sheet as of September 30, 2020.