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Fair Value of Financial Assets and Liabilities (Tables)
12 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Financial Assets and Liabilities that were Subject to Fair Value Measurement on Recurring Basis

The following tables present information about the Company’s financial assets and liabilities that were subject to fair value measurement on a recurring basis as of September 30, 2020 and 2019 and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value:

 

 

Fair Value Measurements at September 30, 2020 Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

81,502

 

 

$

 

 

$

 

 

$

81,502

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury notes

 

 

94,208

 

 

 

 

 

 

 

 

 

94,208

 

Commercial paper

 

 

 

 

 

93,909

 

 

 

 

 

 

93,909

 

Corporate bonds

 

 

 

 

 

144,035

 

 

 

 

 

 

144,035

 

 

 

$

175,710

 

 

$

237,944

 

 

$

 

 

$

413,654

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series 1 nonconvertible preferred stock

 

 

 

 

 

 

 

 

1,479

 

 

 

1,479

 

 

 

$

 

 

$

 

 

$

1,479

 

 

$

1,479

 

 

 

Fair Value Measurements at September 30, 2019 Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

44,569

 

 

$

 

 

$

 

 

$

44,569

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury notes

 

 

170,515

 

 

 

 

 

 

 

 

 

170,515

 

Commercial paper

 

 

 

 

 

66,667

 

 

 

 

 

 

66,667

 

Corporate bonds

 

 

 

 

 

111,837

 

 

 

 

 

 

111,837

 

 

 

$

215,084

 

 

$

178,504

 

 

$

 

 

$

393,588

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series 1 nonconvertible preferred stock

 

 

 

 

 

 

 

 

1,628

 

 

 

1,628

 

 

 

$

 

 

$

 

 

$

1,628

 

 

$

1,628

 

Fair Value Measurements of the Company's Warrant Liability and Series 1 Nonconvertible Preferred Stock

The recurring Level 3 fair value measurements of the Company’s warrant liability and Series 1 nonconvertible preferred stock using probability-weighted discounted cash flow include the following significant unobservable inputs:

 

 

Range

 

 

 

September 30,

 

Unobservable Input

 

2020

 

 

2019

 

Probabilities of payout

 

0%-60%

 

 

0%-60%

 

Discount rate

 

4.25%

 

 

6.00%

 

Rollforward of Aggregate Fair Values of Warrants and Outstanding Series 1 Nonconvertible Preferred Stock

The following table provides a rollforward of the aggregate fair values of the Company’s warrants for the purchase of Series 1 nonconvertible preferred stock and the outstanding Series 1 nonconvertible preferred stock for which fair value is determined by Level 3 inputs:

 

 

 

Warrant

Liability

 

 

Series 1

Nonconvertible

Preferred

Stock

 

 

 

(in thousands)

 

Balance, September 30, 2017

 

$

807

 

 

$

762

 

Warrants exercised

 

 

(766

)

 

 

766

 

Warrants expired

 

 

(41

)

 

 

 

Increase in fair value

 

 

 

 

 

100

 

Balance, September 30, 2018

 

 

 

 

 

1,628

 

Increase in fair value

 

 

 

 

 

 

Balance, September 30, 2019

 

 

 

 

 

1,628

 

Decrease in fair value

 

 

 

 

 

(149

)

Balance, September 30, 2020

 

$

 

 

$

1,479