3. Fair Value Measurements

The following table presents the Company's fair value hierarchy for financial assets measured at fair value as of October 31, 2025:

 

 

 

 

 

October 31, 2025

 

Description

 

Total

 

 

Quoted Prices in
Active Markets
for Identical
Assets (Level 1)

 

 

Significant Other
Observable
Inputs (Level 2)

 

 

Significant Unobservable
Inputs (Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

  Money market funds

 

$

8,642

 

 

$

8,642

 

 

$

-

 

 

$

-

 

  U.S. government treasuries

 

 

21,623

 

 

$

21,623

 

 

$

-

 

 

$

-

 

  Government agency securities

 

 

3,249

 

 

$

-

 

 

$

3,249

 

 

$

-

 

Short term marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

  U.S. government treasuries

 

 

125,467

 

 

$

125,467

 

 

$

-

 

 

$

-

 

  Government agency securities

 

 

18,117

 

 

$

-

 

 

$

18,117

 

 

$

-

 

Long term marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

  U.S. government treasuries

 

 

8,522

 

 

$

8,522

 

 

$

-

 

 

$

-

 

Total financial assets

 

$

185,620

 

 

$

164,254

 

 

$

21,366

 

 

$

-

 

 

The following table presents the Company's fair value hierarchy for financial assets measured at fair value as of October 31, 2024:

 

 

 

 

 

October 31, 2024

 

Description

 

Total

 

 

Quoted Prices in
Active Markets
for Identical
Assets (Level 1)

 

 

Significant Other
Observable
Inputs (Level 2)

 

 

Significant Unobservable
Inputs (Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

  Money market funds

 

$

121

 

 

$

121

 

 

$

 

 

$

 

  U.S. government treasuries

 

 

94,236

 

 

 

94,236

 

 

 

 

 

 

 

  Government agency securities

 

 

9,955

 

 

 

 

 

 

9,955

 

 

 

 

Short term marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

  U.S. government treasuries

 

 

51,574

 

 

 

51,574

 

 

 

 

 

 

 

  Government agency securities

 

 

13,754

 

 

 

 

 

 

13,754

 

 

 

 

Long term marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

  U.S. government treasuries

 

 

49,627

 

 

 

49,627

 

 

 

 

 

 

 

  Government agency securities

 

 

9,900

 

 

 

 

 

 

9,900

 

 

 

 

Total financial assets

 

$

229,167

 

 

$

195,558

 

 

$

33,609

 

 

$

 

 

As of October 31, 2025 and 2024, the Company classified its government agency marketable securities as Level 2 within the valuation hierarchy. The Company estimates the fair value of these marketable securities by taking into consideration valuations obtained from third-party pricing sources. These pricing sources utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly to estimate fair value. These inputs include market pricing based on real time trade data for the same or similar securities, issuer credit spreads, benchmark yields, and other observable inputs.

During the years ended October 31, 2025 and 2024, there were no transfers or reclassifications between fair value measure levels of assets or liabilities. The carrying values of all other financial current assets, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities.

Historical Timeline

Fiscal YearFiled
2025Dec 22, 2025Showing above
2024Dec 19, 2024
2023Jan 29, 2024

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.