Marketable Securities

3 Months Ended

Sep. 30, 2023

Marketable Securities

Marketable Securities

NOTE 4 – Marketable Securities

The Company’s marketable securities include investments in fixed income mutual funds, which invest primarily in various government and corporate obligations, stocks and money market funds, and are reported at their fair values. The disaggregated net gains and losses

on the marketable securities recognized within the accompanying condensed consolidated statements of income for the three months ended September 30, 2023 and 2022, are as follows (in thousands):

	Three months ended September 30,
	2023		2022
Net gains recognized during the period on marketable securities	$	42	$	—
Less: Net gains recognized during the period on marketable securities sold during the period		—		—
Unrealized gains (losses) recognized during the reporting period on marketable securities still held at the reporting date		(57)		(153)
	$	(15)	$	(153)

The fair values of the Company’s marketable securities are determined as being the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company utilizes the three-tier value hierarchy, as prescribed by US GAAP, which prioritizes the inputs used in measuring fair value as follows:

• Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company’s marketable securities, which are considered available-for-sale securities, are re-measured to fair value on a recurring basis and are valued using Level 1 inputs using quoted prices (unadjusted) for identical assets in active markets.

The following tables summarize the Company’s investments at September 30, 2023 and June 30, 2023, respectively (in thousands):

	September 30, 2023						June 30, 2023
					Unrealized						Unrealized
	Cost		Fair Value		Gain (Loss)		Cost		Fair Value		Gain (Loss)
Mutual Funds - Level 1	$	5,693		5,121	$	(572)	$	5,651	$	5,136	$	(515)

Investment income is recognized when earned and consists principally of interest income from fixed income mutual funds. Realized gains and losses on sales of investments are determined on a specific identification basis.