INVESTMENTS IN MARKETABLE DEBT SECURITIES

3 Months Ended

Sep. 30, 2024

INVESTMENTS IN MARKETABLE DEBT SECURITIES

INVESTMENTS IN MARKETABLE DEBT SECURITIES

NOTE 3 —INVESTMENTS IN MARKETABLE DEBT SECURITIES

Investments in marketable debt securities are accounted for as available-for-sale investments at fair value and consist of the following (in thousands):

	September 30,		June 30,
	2024		2024
Short-term investments	$	97,801	$	56,478
Long-term investments		9,552		263
Total investments	$	107,353	$	56,741

The Company only invests in liquid, high quality debt securities. Nonetheless, all of these investments are subject to interest rate and credit risk that may result in fluctuations in the fair value of the investments. To minimize exposure due to an adverse shift in interest rates, the Company generally invests in securities with expected maturities of two years or less while maintaining a weighted average maturity of one year or less. As of September 30, 2024, investments in marketable debt securities with an aggregate fair value of $97.8 million are scheduled to mature during the 12-month period ending September 30, 2025. All remaining investments, with an aggregate fair value of $9.6 million, are scheduled to mature during the 12-month period ending September 30, 2026.

During the three months ended September 30, 2024, marketable debt securities for $23.8 million matured and were reinvested in additional marketable debt securities. The Company used $73.2 million of cash and cash equivalents to purchase investments in marketable debt securities of the proceeds during the three months ended September 30, 2024. The Company did not sell any marketable debt securities prior to the scheduled maturity dates for the three months ended September 30, 2024.

Accrued interest receivable on all marketable debt securities amounted to $0.5 million and $0.4 million as of September 30, 2024 and June 30, 2024, respectively. Accrued interest receivable is included in other current assets in the accompanying condensed consolidated balance sheets.

For the three months ended September 30, 2024, the Company did not recognize any allowance for credit losses or other than temporary impairment related to investments in marketable debt securities. The following table summarizes the cumulative unrealized gains and losses that result in differences between the amortized cost basis and fair value of the Company’s marketable debt securities held as of September 30, 2024 (in thousands):

			Gross Unrealized
	Amortized Cost		Gains		Losses		Fair Value
Corporate commercial paper	$	31,485	$	37	$	—	$	31,522
Obligations of U.S. government agencies		5,253		24		—		5,277
U.S. Treasury obligations		13,651		14		(1)		13,664
Corporate notes and bonds		56,675		217		(2)		56,890
Total	$	107,064	$	292	$	(3)	$	107,353