XML 39 R19.htm IDEA: XBRL DOCUMENT v3.24.4
FAIR VALUE MEASUREMENTS
 12 Months Ended
Sep. 30, 2024
FAIR VALUE MEASUREMENTS  
FAIR VALUE MEASUREMENTS

13. FAIR VALUE MEASUREMENTS

 

In accordance with the provisions of ASC 820, “Fair Value Measurements,” the Company determines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The Company generally applies the income approach to determine fair value.  This method uses valuation techniques to convert future amounts to a single present amount.  The measurement is based on the value indicated by current market expectations with respect to the future amounts.

ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value.  The hierarchy gives the highest priority to active markets for identical assets and liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).  The Company classifies fair value balances based on the observability of those inputs.  The three levels of the fair value hierarchy are as follows:

 

 

·

Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities

 

 

 

 

·

Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and amounts derived from valuation models where all significant inputs other than quoted prices that are observable for the asset or liability are observable in active markets

 

 

 

 

·

Level 3 – Unobservable inputs that reflect management’s assumptions

 

For disclosure purposes, assets and liabilities are classified in their entirety in the fair value hierarchy level based on the lowest level of input that is significant to the overall fair value measurement.  The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels.

 

The Company’s money market funds included in cash equivalents are measured at fair value on a recurring basis. The following tables summarize the Company’s fair value measurements and the level of inputs within the fair value hierarchy utilized to determine such fair value as of September 30:

 

September 30, 2024

Description

 

Level

 

 

Cost

 

 

Fair Value

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

Cash

 

 

1

 

 

$-

 

 

$1,258,173

 

Money market funds included in cash and cash equivalents (Note 2)

 

 

1

 

 

$3,480,000

 

 

$3,480,000

 

Total cash and cash equivalents

 

 

 

 

 

$3,480,000

 

 

$4,738,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2023

Description

 

Level

 

 

Cost

 

 

Fair Value

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

1

 

 

$-

 

 

$1,895,735

 

Money market funds included in cash and cash equivalents (Note 2)

 

 

1

 

 

$2,250,000

 

 

$2,250,000

 

Total cash and cash equivalents

 

 

 

 

 

$2,250,000

 

 

$4,145,735