Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments and Fair Value Measurement

v3.21.2
Financial Instruments and Fair Value Measurement
 3 Months Ended
Sep. 30, 2021
Financial Instruments and Fair Value Measurement [Abstract]  
Financial Instruments and Fair Value Measurement

4.   Financial Instruments and Fair Value Measurement

The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses in the Company’s condensed consolidated balance sheets approximated their fair values as of September 30, 2021 and June 30, 2021 due to their short-term nature. The carrying value of the convertible promissory note receivable and finance lease obligation approximated fair value as of September 30, 2021 and June 30, 2021 as the interest rates related to the financial instruments approximated market.

The Company accounts for its investments in debt securities at fair value. The following provides a description of the three levels of inputs that may be used to measure fair value under the standard, the types of investments that fall under each category, and the valuation methodologies used to measure these investments at fair value.

• Level 1 – Inputs are based upon unadjusted quoted prices for identical instruments in active markets.
• Level 2 – Inputs to the valuation include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.  All debt securities were valued using Level 2 inputs.
• Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.