Fair Value Measurements
The following table presents information about the Company's financial assets, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values:
| | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2026 |
| Level I | | Level II | | Level III | | Total |
| Corporate debt securities | $ | — | | | $ | 117,657 | | | $ | — | | | $ | 117,657 | |
| U.S. treasury securities | — | | | 52,250 | | | — | | | 52,250 | |
| Common stock | 5 | | | — | | | — | | | 5 | |
| Certificates of deposit | — | | | 359 | | | — | | | 359 | |
| Total asset measured at fair value | $ | 5 | | | $ | 170,266 | | | $ | — | | | $ | 170,271 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2025 |
| Level I | | Level II | | Level III | | Total |
| Corporate debt securities | $ | — | | | $ | 178,150 | | | $ | — | | | $ | 178,150 | |
| U.S. treasury securities | — | | | 16,904 | | | — | | | 16,904 | |
| Common stock | 21 | | | — | | | — | | | 21 | |
| Certificates of deposit | — | | | 549 | | | — | | | 549 | |
| Total asset measured at fair value | $ | 21 | | | $ | 195,603 | | | $ | — | | | $ | 195,624 | |
The Company had no transfers between fair value levels during the years ended March 31, 2026 and March 31, 2025.
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.