Note 3 - Fair Value Measurements

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Fair Value Disclosures [Text Block]

(3)

     Fair Value Measurements

A fair value hierarchy has been established

that requires the Company to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes

three

levels of inputs that

may

be used to measure fair value:

Level 1	Quoted prices in active markets for identical assets or liabilities.
Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table sets forth the financial assets and liabilities that were measured at fair value on a recurring basis at

December

31,

2016

and

June

30,

2016,

by level within the fair value hierarchy. The assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

T

he Company’s short-term investments have been classified as Level

2,

which have been initially valued at the transaction price and subsequently revalued, at the end of each reporting period, utilizing a

third

party pricing service. The pricing service utilizes industry standard valuation models and observable market inputs to determine value that include surveying the bond dealer community, obtaining benchmark quotes, incorporating relevant trade data, and updating spreads daily. There have been no transfers of assets or liabilities between the fair value measurement classifications.

			Quoted Prices in		Significant
			Active Markets		Other		Significant
(in millions)			for Identical Assets		Observable Inputs		Unobservable Inputs
December 31 , 201 6	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	10.7	$	7.7	$	3.0	$	—
Short-term investments available-for-sale		11.1		—		11.1		—
Total	$	21.8	$	7.7	$	14.1	$	—

			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
(in millions)			Assets		Inputs		Inputs
June 30, 201 6	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	1.5	$	1.5	$	—	$	—
Short-term investments available-for-sale	19.3			10.0		9.3		—
Total	$	20.8	$	11.5	$	9.3	$	—

Cash equivalents consist primarily of money market funds. Short-term investments consist of certificates of deposit, corporate securities, U.S. Treasury securities and U.S. agency securities, classified as available-for-sale and have maturities less than

365

days from the date of acquisition.

The following table shows the unrealized gains and losses and fair values for those investments as of

December

31,

2016

and

June

30,

2016

aggregated by major security type:

(in millions)			Unrealized		Unrealized
December 31 , 201 6	At Cost		Gains		(Losses)		At Fair Value
Money market funds	$	7.7	$	-	$	-		7.7
Corporate notes		9.4		-		-		9.4
Commercial paper		3.0		-		-		3.0
Certificates of deposit		1.7		-		-		1.7
Total	$	21.8	$	-	$	-		21.8

(in millions)			Unrealized		Unrealized
June 30, 201 6	At Cost		Gains		(Losses)		At Fair Value
Money market funds	$	1.5	$	—	$	—	$	1.5
Debt securities of U.S. government agencies		2.0		—		—		2.0
U.S. Treasury securities		7.0		—		—		7.0
Corporate notes		2.9		0.1		—		3.0
Certificates of deposit		7.3		—		—		7.3
Total	$	20.7	$	0.1	$	—	$	20.8

As of

December

31,

2016,

the Company had no investments in an unrealized gain (loss) position.

  As of

June

30,

2016,

the Company had investments in an unrealized gain position. The Company has determined that the unrealized gains on these investments are temporary in nature and expects the security to mature at its stated maturity principal. All available-for-sale securities held at

December

31,

2016,

will mature within a

one

year period. The fair value of cash, accounts receivable, accounts payable and accrued liabilities approximate their carrying value because of the short-term nature of these financial instruments respectively, at

December

31,

2016

and

June

 

30,

2016.

The fair value of the Company’s short-term note payable, which is measured using Level

2

inputs, approximates book value, at

December

31,

2016

and

June

 

30,

2016.