Marketable Securities

3 Months Ended

Jun. 30, 2023

Notes

Marketable Securities

NOTE 5. MARKETABLE SECURITIES

The following table shows the major categories of our marketable securities and their contractual maturities as of June 30, 2023:

	Total		<1 Year		1–3 Years		3–6 Years
Money market funds	$	1,294,300	$	1,294,300	$	-	$	-
Corporate bonds		51,893,106		12,173,737		27,318,977		12,400,392
Total	$	53,187,406	$	13,468,037	$	27,318,977	$	12,400,392

Total marketable securities represent approximately 78% of our total assets as of June 30, 2023. Marketable securities as of June 30, 2023, had remaining maturities between three weeks and 70 months.

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included on the balance sheets in “Marketable securities, short term” and “Marketable securities, long term.” Accrued interest receivables were $418,336 as of June 30, 2023, and $425,372 as of March 31, 2023, and are included in the balance sheets in “Prepaid expenses and other assets.”

We monitor the credit ratings of our marketable securities at least quarterly as reported by Standard & Poor’s. The following table summarizes the fair values of our marketable securities as of June 30, 2023, aggregated by credit rating:

Credit Rating		Fair Value
AAA	$	2,564,149
AA		6,626,736
AA-		20,804,539
A+		7,893,562
A		9,387,766
A-		5,910,654
Total	$	53,187,406

The following table shows the estimated fair value of our marketable securities, aggregated by fair value hierarchy inputs used in estimating their fair values:

	As of June 30, 2023						As of March 31, 2023
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	1,294,300	$	-	$	1,294,300	$	906,141	$	-	$	906,141
Corporate bonds		-		51,893,106		51,893,106		-		51,638,142		51,638,142
Total	$	1,294,300	$	51,893,106	$	53,187,406	$	906,141	$	51,638,142	$	52,544,283

The following table shows the amortized cost, fair value and gross unrealized holding gains and losses of our marketable securities as of June 30 and March 31, 2023:

	As of June 30, 2023									As of March 31, 2023
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Money market funds	$	1,294,300	$	-	$	-		$	1,294,300	$	906,141	$	-	$	-		$	906,141
Corporate bonds		53,747,380		1		(1,854,275	)		51,893,106		53,191,981		1,007		(1,554,846	)		51,638,142
Total	$	55,041,680	$	1	$	(1,854,275	)	$	53,187,406	$	54,098,122	$	1,007	$	(1,554,846	)	$	52,544,283

The following table shows the gross unrealized holding losses and estimated fair value of our marketable securities for which an allowance for credit losses has not been recorded, aggregated by category of securities and length of time that individual securities had been in a continuous unrealized loss position as of June 30 and March 31, 2023.

	Less Than 12 Months					12 Months or Greater					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
As of June 30, 2023
Corporate bonds	$	36,594,686	$	(934,611	)	$	15,298,420	$	(919,664	)	$	51,893,106	$	(1,854,275	)
Total	$	36,594,686	$	(934,611	)	$	15,298,420	$	(919,664	)	$	51,893,106	$	(1,854,275	)
As of March 31, 2023
Corporate bonds	$	37,084,628	$	(590,967	)	$	13,294,817	$	(963,879	)	$	50,379,445	$	(1,554,846	)
Total	$	37,084,628	$	(590,967	)	$	13,294,817	$	(963,879	)	$	50,379,445	$	(1,554,846	)

None of the securities were impaired at acquisition, and subsequent declines in fair value are attributable to interest rate increases. We do not intend to sell, and it is not more likely than not that we will be required to sell, these securities before recovery of their amortized cost basis. The issuers continue to make timely interest payments on these securities. Because we believe it is more likely than not we will recover the cost basis of our investments, we did not record any impairment attributable to credit losses.

None of the marketable securities purchased during the period had experienced more-than-insignificant deterioration in credit quality since its origination and were therefore not considered “Purchased Financial Assets with Credit Deterioration.”

Unrealized losses on our marketable securities and their tax effects are as follows:

	Quarter Ended June 30,
	2023			2022
Unrealized loss from marketable securities	$	(300,437	)	$	(433,376	)
Tax effects		65,736			94,823
Unrealized loss from marketable securities, net of tax	$	(234,701	)	$	(338,553	)