Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

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FAIR VALUE MEASUREMENTS
 3 Months Ended
Jan. 31, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

 

3. FAIR VALUE MEASUREMENTS

 

US GAAP defines fair value and establishes a framework for measuring fair value. We have categorized our financial assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

 

Financial assets and liabilities recorded in the accompanying condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

 

Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market which we have the ability to access at the measurement date.

 

Level 2 – Financial assets and liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets.

 

Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset and liabilities.

 

The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of January 31, 2022:

 

    Level 1     Level 2     Level 3     Total  
          (in thousands)        
Money market funds:                                
Cash and cash equivalents   $ 28,312     $ -     $ -     $ 28,312  
Certificates of deposit:                                
Cash and cash equivalents     1,000       -       -       1,000  
Short-term investments     -       1,450       -        1,450  
U. S. treasury bills                                
Short-term investments     -       3,299       -       3,299  
Total financial assets   $ 29,312     $ 4,749     $ -     $ 34,061  

 

 

The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2021:

 

    Level 1     Level 2     Level 3     Total  
          (in thousands)        
Money market funds:                                
Cash and cash equivalents   $ 28,949     $ -     $ -     $ 28,949  
Certificates of deposit:                                
Short term investments     -       2,000       -        2,000  
U. S. treasury bills                              
Short-term investments     -       4,599       -       4,599  
Total financial assets   $ 28,949     $ 6,599     $ -     $ 35,548  

 

The estimated fair value of prepaid expenses and other current assets and accounts payable approximates their individual carrying amounts due to the short-term nature of these instruments. Cash and cash equivalents are stated at carrying value which approximates fair value.