Note 5 - Fair Value Measurements

9 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

5.

FAIR VALUE MEASUREMENTS

The Company’s financial instruments consist principally of cash equivalents, short and long-term marketable securities, accounts receivable and accounts payable. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or

not

the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into

three

levels (with Level

3

being the lowest) defined as follows:

Level 1:	Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date.
Level 2:	Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date.
Level 3:	Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation.

The fair value of the Company’s cash equivalents and marketable securities was determined based on Level

1

and Level

2

inputs. The Company did

not

have any marketable securities in the Level

3

category as of

June 30, 2019

or

September 30, 2018.

The Company believes that the recorded values of its other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.

Instruments Measured at Fair Value

The following tables present the Company’s cash equivalents and marketable securities’ costs, gross unrealized gains and losses, and fair value by major security type recorded as cash equivalents or short-term or long-term marketable securities as of

June 30, 2019

and

September 30, 2018.

	June 30, 2019
	Cost Basis		Unrealized Gain		Fair Value		Cash Equivalents		Short-term Securities		Long-term Securities
Level 1:
Money Market Funds	$	848,402	$	-	$	848,402	$	848,402	$	-	$	-
Level 2:
Certificates of deposit		499,000		-		499,000		-		-		499,000
Municipal securities		-		-		-		-		-		-
Corporate bonds		3,968,992		10,157		3,979,149		-		2,978,354		1,000,795
Subtotal		4,467,992		10,157		4,478,149		-		2,978,354		1,499,795
Total	$	5,316,394	$	10,157	$	5,326,551	$	848,402	$	2,978,354	$	1,499,795

	September 30, 2018
			Unrealized			Fair		Cash		Short-term		Long-term
	Cost Basis		Losses			Value		Equivalents		Securities		Securities
Level 1:
Money Market Funds	$	410,393	$	-		$	410,393	$	410,393	$	-	$	-
Level 2:
Certificates of deposit		499,000		-			499,000		-		-		499,000
Municipal securities		-		-			-		-		-		-
Corporate bonds		4,302,661		(8,945	)		4,293,716		-		3,592,175		701,541
Subtotal		4,801,661		(8,945	)		4,792,716		-		3,592,175		1,200,541
Total	$	5,212,054	$	(8,945	)	$	5,203,109	$	410,393	$	3,592,175	$	1,200,541