ASTROTECH Corp Fair Value Disclosure
(6) Fair Value Measurement
ASC Topic 820 “Fair Value Measurement” (“Topic 820”) defines fair value, establishes a market-based framework or hierarchy for measuring fair value, and expands disclosures about fair value measurements. Topic 820 is applicable whenever assets and liabilities are measured and included in the financial statements at fair value. The fair value hierarchy established in the standard prioritizes the inputs used in valuation techniques into three levels as follows:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as 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.
Level 3 - Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.
The following tables present the carrying amounts, estimated fair values, and valuation input levels of certain financial instruments as of June 30, 2025, and June 30, 2024:
| June 30, 2025 | ||||||||||||||||||||
| Carrying | Fair Value Measured Using | Fair | ||||||||||||||||||
| (In thousands) | Amount | Level 1 | Level 2 | Level 3 | Value | |||||||||||||||
| Available-for-Sale Securities | ||||||||||||||||||||
| Short-Term Investments | ||||||||||||||||||||
| Mutual Funds - Corporate & Government Debt | $ | 9,879 | $ | 9,879 | $ | - | $ | - | $ | 9,879 | ||||||||||
| ETFs - Corporate & Government Debt | 5,229 | 5,229 | - | - | 5,229 | |||||||||||||||
| Total Available-for-Sale Investments | $ | 15,108 | $ | 15,108 | $ | - | $ | - | $ | 15,108 | ||||||||||
| June 30, 2024 | ||||||||||||||||||||
| Carrying | Fair Value Measured Using | Fair | ||||||||||||||||||
| (In thousands) | Amount | Level 1 | Level 2 | Level 3 | Value | |||||||||||||||
| Available-for-Sale Securities | ||||||||||||||||||||
| Short-Term Investments | ||||||||||||||||||||
| Mutual Funds - Corporate & Government Debt | $ | 14,426 | $ | 14,426 | $ | - | $ | - | $ | 14,426 | ||||||||||
| ETFs - Corporate & Government Debt | 7,048 | 7,048 | - | - | 7,048 | |||||||||||||||
| Total Available-for-Sale Investments | $ | 21,474 | $ | 21,474 | $ | - | $ | - | $ | 21,474 | ||||||||||
The value of available-for-sale investments is based on pricing from third-party pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 26, 2025 | Showing above |
| 2024 | Sep 20, 2024 | |
| 2023 | Sep 28, 2023 | |
| 2022 | Sep 15, 2022 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.