Note 7—Fair Value Measurements

The following table sets forth the Company’s assets measured at fair value on a recurring basis as of August 31, 2025. The Company did not have any assets and liabilities measured at fair value on a recurring basis as of August 31, 2024.

 

August 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

(amounts in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

$

 

 

$

524

 

 

$

 

 

$

524

 

Treasury notes

 

15,908

 

 

 

 

 

 

 

 

 

15,908

 

U.S. Government Agency debt securities

 

 

 

 

28,005

 

 

 

 

 

 

28,005

 

Total assets at fair value

$

15,908

 

 

$

28,529

 

 

$

 

 

$

44,437

 

The Company’s cash and cash equivalents include cash on hand, deposits in banks, certificates of deposits and money market funds.

Historical Timeline

Fiscal YearFiled
2025Nov 6, 2025Showing above
2024Nov 8, 2024
2023Nov 9, 2023

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.