Fair Value Measurements
The following tables show our cash, cash equivalents and marketable securities at fair value as of March 31, 2026 and 2025 (in thousands):
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| | March 31, 2026 |
| | Level 1 | | Level 2 | | Level 3 | | Total |
| Assets: | | | | | | | | |
| Cash and cash equivalents: | | | | | | | | |
| Cash and money market funds | | $ | 30,789 | | | $ | — | | | $ | — | | | $ | 30,789 | |
| Marketable securities | | | | | | | | |
| U.S. treasury securities | | — | | | 14,614 | | | — | | | 14,614 | |
| Total | | $ | 30,789 | | | $ | 14,614 | | | $ | — | | | $ | 45,403 | |
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| | March 31, 2025 |
| | Level 1 | | Level 2 | | Level 3 | | Total |
| Assets: | | | | | | | | |
| Cash and cash equivalents: | | | | | | | | |
| Cash and money market funds | | $ | 67,131 | | | $ | — | | | $ | — | | | $ | 67,131 | |
| Marketable securities | | | | | | | | |
| U.S. treasury securities | | — | | | 13,351 | | | — | | | 13,351 | |
| Total | | $ | 67,131 | | | $ | 13,351 | | | $ | — | | | $ | 80,482 | |
The carrying amounts of our prepaid and other current assets, accounts payable, and accrued liabilities, approximate fair value due to their short term nature. We had no financial liabilities measured at fair value on a recurring basis at March 31, 2026 or 2025. There were no transfers between Levels 1, 2 or 3 for any of the periods presented.
Our marketable securities consist solely of U.S. Treasury notes, for which the expected credit loss is considered to be zero. Accordingly, no allowance for credit losses has been recorded on our available-for-sale debt securities as of March 31, 2026 or 2025.
The following table summarizes our marketable securities as of March 31, 2026 and 2025 (in thousands):
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| | | March 31, 2026 |
| Maturity (in years) | | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value |
| U.S. treasury notes | Less than 1 | | $ | 14,616 | | | $ | 2 | | | $ | (4) | | | $ | 14,614 | |
| Total | | | $ | 14,616 | | | $ | 2 | | | $ | (4) | | | $ | 14,614 | |
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| | | March 31, 2025 |
| Maturity (in years) | | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value |
| U.S. treasury notes | Less than 1 | | $ | 13,346 | | | $ | 5 | | | $ | — | | | $ | 13,351 | |
| Total | | | $ | 13,346 | | | $ | 5 | | | $ | — | | | $ | 13,351 | |
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.