Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Nov. 30, 2020 | Mar. 31, 2020 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0000783412 | ||
Entity Registrant Name | DAILY JOURNAL CORPORATION | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 0-14665 | ||
Entity Incorporation, State or Country Code | SC | ||
Entity Tax Identification Number | 95-4133299 | ||
Entity Address, Address Line One | 915 East First Street | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90012 | ||
City Area Code | 213 | ||
Local Phone Number | 229-5300 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | DJCO | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 275,783,000 | ||
Entity Common Stock, Shares Outstanding | 1,380,746 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 26,922,000 | $ 8,615,000 |
Restricted cash | 2,041,000 | 2,015,000 |
Marketable securities | 179,368,000 | 194,581,000 |
Accounts receivable, less allowance for doubtful accounts of $250,000 at September 30, 2020 and $200,000 at September 30, 2019 | 6,727,000 | 7,036,000 |
Inventories | 36,000 | 40,000 |
Prepaid expenses and other current assets | 613,000 | 508,000 |
Income tax receivable | 601,000 | 153,000 |
Total current assets | 216,308,000 | 212,948,000 |
Property, plant and equipment, at cost | ||
Land, buildings and improvements | 16,572,000 | 16,499,000 |
Furniture, office equipment and computer software | 1,782,000 | 2,119,000 |
Machinery and equipment | 1,524,000 | 1,750,000 |
Property, Plant and Equipment, Gross, Ending Balance | 19,878,000 | 20,368,000 |
Less accumulated depreciation | (9,422,000) | (9,572,000) |
Property, Plant and Equipment, Net, Ending Balance | 10,456,000 | 10,796,000 |
Operating lease right-of-use assets | 140,000 | 0 |
Deferred income taxes - Federal | 11,137,000 | 12,596,000 |
Deferred income taxes - State | 534,000 | 1,036,000 |
Assets, Total | 238,575,000 | 237,376,000 |
Current liabilities | ||
Accounts payable | 3,926,000 | 4,520,000 |
Accrued liabilities | 5,005,000 | 5,173,000 |
Note payable collateralized by real estate | 133,000 | 126,000 |
Total current liabilities | 27,990,000 | 30,668,000 |
Long term liabilities | ||
Investment margin account borrowings | 29,493,000 | 29,493,000 |
Note payable collateralized by real estate | 1,576,000 | 1,709,000 |
Deferred maintenance agreements | 450,000 | 335,000 |
Accrued liabilities | 1,455,000 | 230,000 |
Deferred income taxes | 35,870,000 | 37,241,000 |
Total long term liabilities | 68,844,000 | 69,008,000 |
Shareholders' equity | ||
Preferred stock, $.01 par value, 5,000,000 shares authorized and no shares issued | 0 | 0 |
Common stock, $.01 par value, 5,000,000 shares authorized; 1,805,053 shares issued, including 424,307 treasury shares,at September 30, 2020 and September 30, 2019 | 14,000 | 14,000 |
Additional paid-in capital | 1,755,000 | 1,755,000 |
Retained earnings | 139,972,000 | 135,931,000 |
Total shareholders' equity | 141,741,000 | 137,700,000 |
Liabilities and Equity, Total | 238,575,000 | 237,376,000 |
Subscription and Circulation [Member] | ||
Current liabilities | ||
Deferred revenue | 2,899,000 | 3,195,000 |
Installation Contracts [Member] | ||
Current liabilities | ||
Deferred revenue | 140,000 | 1,932,000 |
License and Maintenance [Member] | ||
Current liabilities | ||
Deferred revenue | $ 15,887,000 | $ 15,722,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Marketable securities | $ 179,368,000 | $ 194,581,000 |
Accounts receivable, allowance for doubtful accounts | $ 250,000 | $ 200,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, shares issued (in shares) | 1,805,053 | 1,805,053 |
Common stock, treasury shares (in shares) | 424,307 | 424,307 |
Common Stock [Member] | ||
Marketable securities | $ 179,368,000 | $ 194,581,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||
Revenues | $ 49,942,000 | $ 48,655,000 |
Costs and expenses | ||
Salaries and employee benefits | 37,802,000 | 35,014,000 |
Outside services | 3,428,000 | 3,874,000 |
Postage and delivery expenses | 712,000 | 838,000 |
Newsprint and printing expenses | 699,000 | 727,000 |
Depreciation and amortization | 524,000 | 589,000 |
Goodwill impairment | 0 | 13,400,000 |
Equipment maintenance and software | 1,268,000 | 1,516,000 |
Credit card merchant discount fees | 1,393,000 | 1,409,000 |
Rent expenses | 612,000 | 1,017,000 |
Accounting and legal fees | 939,000 | 1,605,000 |
Other general and administrative expenses | 3,848,000 | 6,890,000 |
Total operating expenses | 51,225,000 | 66,879,000 |
Loss from operations | (1,283,000) | (18,224,000) |
Other income (expenses) | ||
Dividends and interest income | 4,965,000 | 5,380,000 |
Other income | 3,000 | 38,000 |
Net unrealized losses on investments | (3,099,000) | (17,715,000) |
Gains on sales of marketable securities, net | 4,193,000 | 0 |
Income (loss) before taxes | 4,226,000 | (31,476,000) |
(Provision for) benefit from income taxes | (185,000) | 6,260,000 |
Net income (loss) | $ 4,041,000 | $ (25,216,000) |
Weighted average number of common shares outstanding – basic and diluted (in shares) | 1,380,746 | 1,380,746 |
Basic and diluted net income (loss) per share (in dollars per share) | $ 2.93 | $ (18.26) |
Real Estate Bank Loan Secured by Logan Office [Member] | ||
Other income (expenses) | ||
Interest expense on debt | $ (119,000) | $ (93,000) |
Margin Account [Member] | ||
Other income (expenses) | ||
Interest expense on debt | (434,000) | (862,000) |
Advertising [Member] | ||
Revenue | ||
Revenues | 7,104,000 | 9,132,000 |
Subscription and Circulation [Member] | ||
Revenue | ||
Revenues | 5,090,000 | 5,249,000 |
Advertising Service Fees and Other [Member] | ||
Revenue | ||
Revenues | 2,501,000 | 2,712,000 |
License and Maintenance [Member] | ||
Revenue | ||
Revenues | 21,647,000 | 20,179,000 |
Consulting Fees [Member] | ||
Revenue | ||
Revenues | 7,718,000 | 5,539,000 |
Service, Other [Member] | ||
Revenue | ||
Revenues | $ 5,882,000 | $ 5,844,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Treasury Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Sep. 30, 2018 | 1,805,053 | (424,307) | ||||||||||
Balance at Sep. 30, 2018 | $ 0 | $ 0 | $ 0 | $ 115,786,000 | $ (115,786,000) | $ 0 | $ 18,000 | $ (4,000) | $ 1,755,000 | $ 45,361,000 | $ 115,786,000 | $ 162,916,000 |
Net loss | $ 0 | $ 0 | 0 | (25,216,000) | 0 | (25,216,000) | ||||||
Balance (in shares) at Sep. 30, 2019 | 1,805,053 | (424,307) | ||||||||||
Balance at Sep. 30, 2019 | $ 18,000 | $ (4,000) | 1,755,000 | 135,931,000 | 0 | 137,700,000 | ||||||
Net loss | $ 0 | $ 0 | 0 | 4,041,000 | 0 | 4,041,000 | ||||||
Balance (in shares) at Sep. 30, 2020 | 1,805,053 | (424,307) | ||||||||||
Balance at Sep. 30, 2020 | $ 18,000 | $ (4,000) | $ 1,755,000 | $ 139,972,000 | $ 0 | $ 141,741,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net income (loss) | $ 4,041,000 | $ (25,216,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation and amortization | 524,000 | 589,000 |
Goodwill impairment | 0 | 13,400,000 |
Gains on sales of marketable securities, net | (4,193,000) | 0 |
Deferred income taxes | 590,000 | (6,392,000) |
Unrealized losses on investments | 3,099,000 | 17,715,000 |
(Increase) decrease in current assets | ||
Accounts receivable, net | 309,000 | (2,233,000) |
Inventories | 4,000 | 6,000 |
Prepaid expenses and other assets | (105,000) | 4,000 |
Income tax receivable | (448,000) | 117,000 |
Increase (decrease) in liabilities | ||
Accounts payable | (594,000) | 1,700,000 |
Accrued liabilities | 917,000 | 831,000 |
Net cash provided by operating activities | 2,336,000 | 1,615,000 |
Cash flows from investing activities | ||
Sales of marketable securities | 16,307,000 | 0 |
Purchases of property, plant and equipment, net | (184,000) | (165,000) |
Net cash provided by (used in) investing activities | 16,123,000 | (165,000) |
Cash flows from financing activities | ||
Proceeds from margin loan borrowing | 1,000,000 | 0 |
Payment to margin loan borrowing | (1,000,000) | 0 |
Payment of loan principal | (126,000) | (121,000) |
Net cash used in financing activities | (126,000) | (121,000) |
Increase in cash and restricted cash and cash equivalents | 18,333,000 | 1,329,000 |
Cash and restricted cash and cash equivalents | ||
Beginning of year | 10,630,000 | 9,301,000 |
End of year | 28,963,000 | 10,630,000 |
Interest paid during year | 529,000 | 963,000 |
Income taxes refunded during year | (47,000) | (121,000) |
Subscription and Circulation [Member] | ||
Increase (decrease) in liabilities | ||
Deferred revenue arrangements | (296,000) | 21,000 |
Installation Contracts [Member] | ||
Increase (decrease) in liabilities | ||
Deferred revenue arrangements | (1,792,000) | 1,695,000 |
License and Maintenance [Member] | ||
Increase (decrease) in liabilities | ||
Deferred revenue arrangements | $ 280,000 | $ (622,000) |
Note 1 - The Company and Operat
Note 1 - The Company and Operations | 12 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Daily Journal Corporation (“Daily Journal”) publishes newspapers and websites covering California and Arizona and produces several specialized information services. It also serves as a newspaper representative specializing in public notice advertising. Journal Technologies, Inc. (“Journal Technologies”), a wholly-owned subsidiary of Daily Journal, supplies case management software systems and related products to courts, prosecutor and public defender offices, probation departments and other justice agencies, including administrative law organizations, city and county governments and bar associations. These organizations use the Journal Technologies family of products to help manage cases and information electronically, to interface with other critical justice partners and to extend electronic services to the public, including efiling and a website to pay traffic citations and fees online, and bar members. These products are licensed to more than 500 42 Essentially all of the Company’s U.S. operations are based in California, Arizona and Utah. The Company also has a presence in Australia where Journal Technologies is working on three |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Basis of Presentation: Certain reclassifications of previously reported amounts have been made to conform to the current year's presentation. Concentrations of Credit Risk: The Company maintains the reserve account for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of its customers were to deteriorate or its judgments about their abilities to pay are incorrect, additional allowances might be required and its results of operations could be materially affected. Cash Equivalents: three Restricted Cash: September 30, 2020 2019, two Fair Value of Financial Instruments: 2019, No. 2016 01, Financial Instruments – Overall (Subtopic 825 10 2020, 2019, 1 820, Fair Value Measurement and Disclosures September 30, 2020, three September 30, 2019, All investments are classified as “Current assets” because they are available for sale at any time. In August 2020, Investment in Financial Instruments September 30, 2020 September 30, 2019 Aggregate fair value Amortized/ Adjusted cost basis Pretax Aggregate fair value Amortized/ Adjusted cost basis Pretax Marketable securities Common stocks $ 179,368,000 $ 41,775,000 $ 137,593,000 $ 194,581,000 $ 53,889,000 $ 140,692,000 As of September 30, 2020, no Goodwill: September 30, 2019 ( 2019 Inventories: first first not Property, plant and equipment: September 30, 2020, 2020 2019, Significant expenditures which extend the useful lives of existing assets are capitalized. Maintenance and repair costs are expensed as incurred. Gains or losses on dispositions of assets are reflected in current earnings. Impairment of Long-Lived Assets: may not no 2020 2019. Journal Technologies’ Software Development Costs: not The Company believes its process for developing software is essentially completed concurrent with the establishment of technological feasibility, and accordingly, no Revenue Recognition: The Company recognizes revenues in accordance with the provisions of ASU No. 2014 09, Revenue from Contracts with Customers (ASC Topic 606 October 1, 2017, For the Traditional Business, proceeds from the sale of subscriptions for newspapers, court rule books and other publications and other services are recorded as deferred revenue and are included in earned revenue only when the services are provided, generally over the subscription term. Advertising revenues are recognized when advertisements are published and are net of agency commissions. Journal Technologies contracts may one third not third The adoption of ASC 606 no not Since the Company recognizes revenues when it can invoice the customer pursuant to the contract for the value of completed performance, as a practical expedient and because reliable estimates cannot be made, it has elected not not no not Approximately 71% and 65% of the Company’s revenues in fiscal 2020 2019, The change in allowance for doubtful accounts is as follows: Allowance for Doubtful Accounts Description Balance at Beginning of Year Additions Charged to Costs and Expenses Accounts Charged off less Recoveries Balance at End of Year Fiscal 2020 Allowance for doubtful accounts $ 200,000 $ 116,000 $ (66,000 ) $ 250,000 Fiscal 2019 Allowance for doubtful accounts $ 200,000 $ 8,000 $ (8,000 ) $ 200,000 Management Incentive Plan: 1987, ten Certificate interests entitled participants to receive 7.51% and 6.79% (amounting to $502,700 and $465,500, respectively) of Daily Journal non-consolidated income before taxes, workers’ compensation, supplemental compensation and certain other items, 9.4% and 9.00% (amounting to $0 and $0 for fiscal 2020 2019, 2020 2019, September 30, 2020 2019, 65. 2020 $.88 2019 $.04 10 Income taxes: 740 10 two first not” second 50% no Net income (loss) per common share : 2020 2019. not Use of Estimates: Accounting Standards Adopted in Fiscal 20 20 At the beginning of fiscal 2020, 2016 02, Leases (Topic 842 no September 30, 2020, $140,000 one New Accounting Pronouncement: No |
Note 3 - Income Taxes
Note 3 - Income Taxes | 12 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 3. The provision (benefit) from income taxes consists of the following: 2020 2019 Current: Federal $ (420,000 ) $ 132,000 State 15,000 — (405,000 ) 132,000 Deferred: Federal 808,000 (4,685,000 ) State (218,000 ) (1,707,000 ) 590,000 (6,392,000 ) $ 185,000 $ (6,260,000 ) The difference between the statutory federal income tax rate and the Company’s effective rate is summarized below: 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % State franchise taxes (net of federal tax benefit) 5.6 4.5 Effect of state rate change on beginning balance of deferred tax liabilities (9.4 ) (0.2 ) Business meals/gifts/other permanent differences 0.6 (0.1 ) Goodwill impairment — (6.5 ) Dividends received deduction (11.1 ) 1.5 Revenue recognized for book but not tax 0.4 — Prior year true-up — 0.2 Foreign tax credits (0.4 ) 0.1 CARES Act benefits (4.4 ) — Others 2.1 (0.6 ) Effective tax rate 4.4 % 19.9 % The Company’s deferred income tax assets and liabilities were comprised of the following: 2020 2019 Deferred tax assets attributable to: Accrued liabilities, including supplemental compensation and vacation pay accrual $ 415,000 $ 178,000 Impairment losses on investments 1,016,000 2,201,000 Bad debt reserves not yet deductible 55,000 41,000 Depreciation and amortization 3,482,000 3,999,000 Deferred revenues 913,000 885,000 Goodwill 590,000 677,000 Net operating losses 4,768,000 5,195,000 Credits and other 432,000 456,000 Total deferred tax assets 11,671,000 13,632,000 Deferred tax liabilities attributable to: Unrealized gains on investments (35,870,000 ) (37,241,000 ) Net deferred income taxes $ (24,199,000 ) $ (23,609,000 ) For fiscal 2020, 2020 The CARES Act, which was signed into law on March 27, 2020, two 2018, five 2018. 2019 2014. 2014. 34% 2014 21% 2019. During fiscal 2020, For fiscal 2019, The Company’s effective tax rate was 4.4% 2020 The Company files consolidated federal income tax returns in the United States and with various state jurisdictions and is no 2017 2016 The Company has federal and state income tax net operating losses (“NOLs”). A portion of the fiscal 2017 2019 2014. September 30, 2020, 2036 2039, Fiscal Year ended Federal NOL California NOL Other State NOL (in millions) September 30, 2036 $ .8 $ — $ — September 30, 2037 6.6 — .3 September 30, 2038 11.1 5.4 2.0 September 30, 2039 — .7 .3 No expiration 1.6 — — The Company believes it is more likely than not not |
Note 4 - Debts and Commitments
Note 4 - Debts and Commitments | 12 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | 4. During fiscal 2013, two September 30, 2020 not In November 2015, 1998 2030. September 30, 2020. ( October 2020, The Company also owns its facilities in Los Angeles and leases space for its other offices under operating leases which expire at various dates through fiscal 2022. October 2019. The Company is responsible for a portion of maintenance, insurance and property tax expenses relating to the leased properties. Rental expenses for fiscal years 2020 2019 The following table represents the Company’s future obligations Payments due by Fiscal Year 2021 2022 2023 2024 2025 2026 and after Total Real estate loan $ 131,000 $ 148,000 $ 153,000 $ 158,000 $ 164,000 $ 955,000 $ 1,709,000 Obligations under operating leases 129,000 11,000 — — — — 140,000 Long-term accrued liabilities and other* 10,000 434,000 191,000 215,000 160,000 445,000 1,455,000 $ 270,000 $ 593,000 $ 344,000 $ 373,000 $ 324,000 $ 1,400,000 $ 3,304,000 * The long-term accrued liabilities for the Management Incentive Plan are discounted to the present value using a discount rate of 6%. |
Note 5 - Contingencies
Note 5 - Contingencies | 12 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 5. From time to time, the Company is subject to litigation arising in the normal course of its business. While it is not not |
Note 6 - Reportable Segments
Note 6 - Reportable Segments | 12 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 6. An operating segment is defined as a component of an enterprise which has discrete financial information that is evaluated regularly by the Company’s Chief Executive Officer to decide how to allocate resources and to access performance. In accordance with ASC 280 10, Segment Reporting Summarized financial information concerning the Company’s reportable segments and Corporate income and expenses is shown in the following table. The Company’s Traditional Business is one Reportable Segments Traditional Business Journal Technologies Corporate Total Fiscal 2020 Revenues Advertising $ 7,104,000 $ — $ — $ 7,104,000 Circulation 5,090,000 — — 5,090,000 Advertising service fees and other 2,501,000 — — 2,501,000 Licensing and maintenance fees — 21,647,000 — 21,647,000 Consulting fees — 7,718,000 — 7,718,000 Other public service fees — 5,882,000 — 5,882,000 Operating expenses 16,425,000 34,800,000 — 51,225,000 Income (loss) from operations (1,730,000 ) 447,000 — (1,283,000 ) Dividends and interest income — — 4,965,000 4,965,000 Other income — — 3,000 3,000 Net unrealized losses on investments — — (3,099,000 ) (3,099,000 ) Interest expenses on note payable collateralized by real estate (84,000 ) — (35,000 ) (119,000 ) Interest expenses on margin loans — — (434,000 ) (434,000 ) Gains on sales of marketable securities, net — — 4,193,000 4,193,000 Pretax income (1,814,000 ) 447,000 5,593,000 4,226,000 Income tax expense 685,000 100,000 (970,000 ) (185,000 ) Net loss (1,129,000 ) 547,000 4,623,000 4,041,000 Total assets 35,896,000 22,277,000 180,402,000 238,575,000 Capital expenditures 121,000 63,000 — 184,000 Reportable Segments Traditional Business Journal Technologies Corporate Total Fiscal 2019 Revenues Advertising $ 9,132,000 $ — $ — $ 9,132,000 Circulation 5,249,000 — — 5,249,000 Advertising service fees and other 2,712,000 — — 2,712,000 Licensing and maintenance fees — 20,179,000 — 20,179,000 Consulting fees — 5,539,000 — 5,539,000 Other public service fees — 5,844,000 — 5,844,000 Operating expenses 16,981,000 49,898,000* — 66,879,000 * Income (loss) from operations 112,000 (18,336,000 ) — (18,224,000 ) Dividends and interest income — — 5,380,000 5,380,000 Other income — — 38,000 38,000 Net unrealized losses on investments — — (17,715,000 ) (17,715,000 ) Interest expenses on note payable collateralized by real estate (93,000 ) — — (93,000 ) Interest expenses on margin loans — — (862,000 ) (862,000 ) Pretax income 19,000 (18,336,000 ) (13,159,000 ) (31,476,000 ) Income tax expense (5,000 ) 2,450,000 3,815,000 6,260,000 Net loss 14,000 (15,886,000 ) (9,344,000 ) (25,216,000 ) Total assets 17,176,000 22,741,000 197,459,000 237,376,000 Capital expenditures 132,000 33,000 — 165,000 * included goodwill impairment of $13,400,000 During fiscal 2020 2019, |
Note 7 - Subsequent Events
Note 7 - Subsequent Events | 12 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 7. The Company has completed an evaluation of all subsequent events through the issuance date of these financial statements and concluded that no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of Presentation: Certain reclassifications of previously reported amounts have been made to conform to the current year's presentation. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk: The Company maintains the reserve account for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of its customers were to deteriorate or its judgments about their abilities to pay are incorrect, additional allowances might be required and its results of operations could be materially affected. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents: three |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash: September 30, 2020 2019, two |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments: 2019, No. 2016 01, Financial Instruments – Overall (Subtopic 825 10 2020, 2019, 1 820, Fair Value Measurement and Disclosures September 30, 2020, three September 30, 2019, All investments are classified as “Current assets” because they are available for sale at any time. In August 2020, Investment in Financial Instruments September 30, 2020 September 30, 2019 Aggregate fair value Amortized/ Adjusted cost basis Pretax Aggregate fair value Amortized/ Adjusted cost basis Pretax Marketable securities Common stocks $ 179,368,000 $ 41,775,000 $ 137,593,000 $ 194,581,000 $ 53,889,000 $ 140,692,000 As of September 30, 2020, no |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill: September 30, 2019 ( 2019 |
Inventory, Policy [Policy Text Block] | Inventories: first first not |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, plant and equipment: September 30, 2020, 2020 2019, Significant expenditures which extend the useful lives of existing assets are capitalized. Maintenance and repair costs are expensed as incurred. Gains or losses on dispositions of assets are reflected in current earnings. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets: may not no 2020 2019. |
Research, Development, and Computer Software, Policy [Policy Text Block] | Journal Technologies’ Software Development Costs: not The Company believes its process for developing software is essentially completed concurrent with the establishment of technological feasibility, and accordingly, no |
Revenue [Policy Text Block] | Revenue Recognition: The Company recognizes revenues in accordance with the provisions of ASU No. 2014 09, Revenue from Contracts with Customers (ASC Topic 606 October 1, 2017, For the Traditional Business, proceeds from the sale of subscriptions for newspapers, court rule books and other publications and other services are recorded as deferred revenue and are included in earned revenue only when the services are provided, generally over the subscription term. Advertising revenues are recognized when advertisements are published and are net of agency commissions. Journal Technologies contracts may one third not third The adoption of ASC 606 no not Since the Company recognizes revenues when it can invoice the customer pursuant to the contract for the value of completed performance, as a practical expedient and because reliable estimates cannot be made, it has elected not not no not Approximately 71% and 65% of the Company’s revenues in fiscal 2020 2019, The change in allowance for doubtful accounts is as follows: Allowance for Doubtful Accounts Description Balance at Beginning of Year Additions Charged to Costs and Expenses Accounts Charged off less Recoveries Balance at End of Year Fiscal 2020 Allowance for doubtful accounts $ 200,000 $ 116,000 $ (66,000 ) $ 250,000 Fiscal 2019 Allowance for doubtful accounts $ 200,000 $ 8,000 $ (8,000 ) $ 200,000 |
Share-based Payment Arrangement [Policy Text Block] | Management Incentive Plan: 1987, ten Certificate interests entitled participants to receive 7.51% and 6.79% (amounting to $502,700 and $465,500, respectively) of Daily Journal non-consolidated income before taxes, workers’ compensation, supplemental compensation and certain other items, 9.4% and 9.00% (amounting to $0 and $0 for fiscal 2020 2019, 2020 2019, September 30, 2020 2019, 65. 2020 $.88 2019 $.04 10 |
Income Tax, Policy [Policy Text Block] | Income taxes: 740 10 two first not” second 50% no |
Earnings Per Share, Policy [Policy Text Block] | Net income (loss) per common share : 2020 2019. not |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Standards Adopted in Fiscal 20 20 At the beginning of fiscal 2020, 2016 02, Leases (Topic 842 no September 30, 2020, $140,000 one New Accounting Pronouncement: No |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | September 30, 2020 September 30, 2019 Aggregate fair value Amortized/ Adjusted cost basis Pretax Aggregate fair value Amortized/ Adjusted cost basis Pretax Marketable securities Common stocks $ 179,368,000 $ 41,775,000 $ 137,593,000 $ 194,581,000 $ 53,889,000 $ 140,692,000 |
Valuation and Qualifying Accounts [Table Text Block] | Description Balance at Beginning of Year Additions Charged to Costs and Expenses Accounts Charged off less Recoveries Balance at End of Year Fiscal 2020 Allowance for doubtful accounts $ 200,000 $ 116,000 $ (66,000 ) $ 250,000 Fiscal 2019 Allowance for doubtful accounts $ 200,000 $ 8,000 $ (8,000 ) $ 200,000 |
Note 3 - Income Taxes (Tables)
Note 3 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2020 2019 Current: Federal $ (420,000 ) $ 132,000 State 15,000 — (405,000 ) 132,000 Deferred: Federal 808,000 (4,685,000 ) State (218,000 ) (1,707,000 ) 590,000 (6,392,000 ) $ 185,000 $ (6,260,000 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % State franchise taxes (net of federal tax benefit) 5.6 4.5 Effect of state rate change on beginning balance of deferred tax liabilities (9.4 ) (0.2 ) Business meals/gifts/other permanent differences 0.6 (0.1 ) Goodwill impairment — (6.5 ) Dividends received deduction (11.1 ) 1.5 Revenue recognized for book but not tax 0.4 — Prior year true-up — 0.2 Foreign tax credits (0.4 ) 0.1 CARES Act benefits (4.4 ) — Others 2.1 (0.6 ) Effective tax rate 4.4 % 19.9 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2020 2019 Deferred tax assets attributable to: Accrued liabilities, including supplemental compensation and vacation pay accrual $ 415,000 $ 178,000 Impairment losses on investments 1,016,000 2,201,000 Bad debt reserves not yet deductible 55,000 41,000 Depreciation and amortization 3,482,000 3,999,000 Deferred revenues 913,000 885,000 Goodwill 590,000 677,000 Net operating losses 4,768,000 5,195,000 Credits and other 432,000 456,000 Total deferred tax assets 11,671,000 13,632,000 Deferred tax liabilities attributable to: Unrealized gains on investments (35,870,000 ) (37,241,000 ) Net deferred income taxes $ (24,199,000 ) $ (23,609,000 ) |
Summary of Operating Loss Carryforwards [Table Text Block] | Fiscal Year ended Federal NOL California NOL Other State NOL (in millions) September 30, 2036 $ .8 $ — $ — September 30, 2037 6.6 — .3 September 30, 2038 11.1 5.4 2.0 September 30, 2039 — .7 .3 No expiration 1.6 — — |
Note 4 - Debts and Commitments
Note 4 - Debts and Commitments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Contractual Obligation, Fiscal Year Maturity [Table Text Block] | Payments due by Fiscal Year 2021 2022 2023 2024 2025 2026 and after Total Real estate loan $ 131,000 $ 148,000 $ 153,000 $ 158,000 $ 164,000 $ 955,000 $ 1,709,000 Obligations under operating leases 129,000 11,000 — — — — 140,000 Long-term accrued liabilities and other* 10,000 434,000 191,000 215,000 160,000 445,000 1,455,000 $ 270,000 $ 593,000 $ 344,000 $ 373,000 $ 324,000 $ 1,400,000 $ 3,304,000 |
Note 6 - Reportable Segments (T
Note 6 - Reportable Segments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Reportable Segments Traditional Business Journal Technologies Corporate Total Fiscal 2020 Revenues Advertising $ 7,104,000 $ — $ — $ 7,104,000 Circulation 5,090,000 — — 5,090,000 Advertising service fees and other 2,501,000 — — 2,501,000 Licensing and maintenance fees — 21,647,000 — 21,647,000 Consulting fees — 7,718,000 — 7,718,000 Other public service fees — 5,882,000 — 5,882,000 Operating expenses 16,425,000 34,800,000 — 51,225,000 Income (loss) from operations (1,730,000 ) 447,000 — (1,283,000 ) Dividends and interest income — — 4,965,000 4,965,000 Other income — — 3,000 3,000 Net unrealized losses on investments — — (3,099,000 ) (3,099,000 ) Interest expenses on note payable collateralized by real estate (84,000 ) — (35,000 ) (119,000 ) Interest expenses on margin loans — — (434,000 ) (434,000 ) Gains on sales of marketable securities, net — — 4,193,000 4,193,000 Pretax income (1,814,000 ) 447,000 5,593,000 4,226,000 Income tax expense 685,000 100,000 (970,000 ) (185,000 ) Net loss (1,129,000 ) 547,000 4,623,000 4,041,000 Total assets 35,896,000 22,277,000 180,402,000 238,575,000 Capital expenditures 121,000 63,000 — 184,000 Reportable Segments Traditional Business Journal Technologies Corporate Total Fiscal 2019 Revenues Advertising $ 9,132,000 $ — $ — $ 9,132,000 Circulation 5,249,000 — — 5,249,000 Advertising service fees and other 2,712,000 — — 2,712,000 Licensing and maintenance fees — 20,179,000 — 20,179,000 Consulting fees — 5,539,000 — 5,539,000 Other public service fees — 5,844,000 — 5,844,000 Operating expenses 16,981,000 49,898,000* — 66,879,000 * Income (loss) from operations 112,000 (18,336,000 ) — (18,224,000 ) Dividends and interest income — — 5,380,000 5,380,000 Other income — — 38,000 38,000 Net unrealized losses on investments — — (17,715,000 ) (17,715,000 ) Interest expenses on note payable collateralized by real estate (93,000 ) — — (93,000 ) Interest expenses on margin loans — — (862,000 ) (862,000 ) Pretax income 19,000 (18,336,000 ) (13,159,000 ) (31,476,000 ) Income tax expense (5,000 ) 2,450,000 3,815,000 6,260,000 Net loss 14,000 (15,886,000 ) (9,344,000 ) (25,216,000 ) Total assets 17,176,000 22,741,000 197,459,000 237,376,000 Capital expenditures 132,000 33,000 — 165,000 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Cash and Cash Equivalents, Total | $ 2,041,000 | $ 2,015,000 | |
Net Income (Loss) Attributable to Parent, Total | 4,041,000 | (25,216,000) | |
Unrealized Gain (Loss) on Investments, Total | (3,099,000) | (17,715,000) | |
Equity Securities, FV-NI | 179,368,000 | 194,581,000 | |
Equity Securities, FV-NI, Unrealized Gain (Loss), Total | 137,593,000 | 140,692,000 | |
Equity Securities, FV-NI, Unrealized Gain (Loss), Tax | 35,870,000 | 37,241,000 | |
Goodwill, Impairment Loss | 0 | 13,400,000 | |
Depreciation, Total | $ 524,000 | $ 589,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||
Weighted Average Number of Shares Outstanding, Basic and Diluted (in shares) | 1,380,746 | 1,380,746 | |
Operating Lease, Right-of-Use Asset | $ 140,000 | $ 0 | |
Office Lease Obligations Beyond One Year | 10,000 | ||
Accrued Liabilities, Current and Noncurrent [Member] | |||
Operating Lease, Liability, Total | $ 140,000 | ||
Measurement Input, Discount Rate [Member] | |||
Incentive Plan Future Commitment, Measurement Input | 6.00% | 6.00% | |
Management Incentive Plan, Future Commitment [Member] | |||
Other Accrued Liabilities | $ 1,445,000 | $ 230,000 | |
Increase (Decrease) in Other Accrued Liabilities | $ 1,215,000 | $ 60,000 | |
Other Accrued Liabilities Impact on Earnings Per Share (in dollars per share) | $ 0.88 | $ 0.04 | |
Daily Journal Non-Consolidated [Member] | |||
Management Incentive Plan Total Percentage of Pre Tax Earnings | 7.51% | 6.79% | |
Management Incentive Plan Total Amount Paid | $ 502,700 | $ 465,500 | |
Journal Technologies [Member] | |||
Management Incentive Plan Total Percentage of Pre Tax Earnings | 9.40% | 9.00% | |
Management Incentive Plan Total Amount Paid | $ 0 | $ 0 | |
Daily Journal Consolidated [Member] | |||
Management Incentive Plan Total Percentage of Pre Tax Earnings | 8.20% | 8.20% | |
Management Incentive Plan Total Amount Paid | $ 452,900 | $ 0 | |
Product Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Concentration Risk, Percentage | 71.00% | 65.00% | |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 3 years | ||
Minimum [Member] | Building and Building Improvements [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||
Minimum [Member] | Furniture, Office Equipment, and Software [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 3 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 39 years | ||
Maximum [Member] | Building and Building Improvements [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 39 years | ||
Maximum [Member] | Furniture, Office Equipment, and Software [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 10 years | ||
Bonds [Member] | |||
Proceeds from Sale of Available-for-sale Securities, Total | $ 16,307,000 | ||
Debt Securities, Available-for-sale, Realized Gain (Loss), Total | $ 4,193,000 |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Investment in Financial Instruments (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Marketable securities, fair value | $ 179,368,000 | $ 194,581,000 |
Marketable securities, gross unrealized gains | 137,593,000 | 140,692,000 |
Common Stock [Member] | ||
Marketable securities, fair value | 179,368,000 | 194,581,000 |
Marketable securities, amortized cost | 41,775,000 | 53,889,000 |
Marketable securities, gross unrealized gains | $ 137,593,000 | $ 140,692,000 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Allowance for doubtful accounts | $ 200,000 | $ 200,000 |
Additions Charged to Costs and Expenses | 116,000 | 8,000 |
Accounts Charged off less Recoveries | (66,000) | (8,000) |
Allowance for doubtful accounts | $ 250,000 | $ 200,000 |
Note 3 - Income Taxes (Details
Note 3 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Expense (Benefit), Total | $ 185,000 | $ (6,260,000) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest, Total | $ 4,226,000 | $ (31,476,000) |
Effective Income Tax Rate Reconciliation, Percent, Total | 4.40% | 19.90% |
Income Tax Expense (Benefit) From CARES Act | $ (187,000) | |
Marketable Securities, Unrealized Gain (Loss), Total | $ 3,099,000 | |
Income Tax Expense (Benefit), Recorded as a Temporary Difference in Deferred Income Tax | (1,371,000) | |
Marketable Securities, Realized Gain (Loss), Total | $ 4,193,000 | $ 0 |
Domestic Tax Authority [Member] | ||
Open Tax Year | 2016 2017 2018 2019 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards, Total | $ 20,100,000 | |
Domestic Tax Authority [Member] | California Franchise Tax Board [Member] | ||
Operating Loss Carryforwards, Total | 6,100,000 | |
Domestic Tax Authority [Member] | Other State [Member] | ||
Operating Loss Carryforwards, Total | $ 2,600,000 |
Note 3 - Income Taxes - Provisi
Note 3 - Income Taxes - Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Federal | $ (420,000) | $ 132,000 |
State | 15,000 | 0 |
Current Income Tax Expense (Benefit), Total | (405,000) | 132,000 |
Federal | 808,000 | (4,685,000) |
State | (218,000) | (1,707,000) |
Deferred Income Tax Expense (Benefit), Total | 590,000 | (6,392,000) |
Income Tax Expense (Benefit), Total | $ 185,000 | $ (6,260,000) |
Note 3 - Income Taxes - Summary
Note 3 - Income Taxes - Summary of the Difference Between Statutory Federal Income Tax Rate and Effective Rate (Details) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statutory federal income tax rate | 21.00% | 21.00% |
State franchise taxes (net of federal tax benefit) | 5.60% | 4.50% |
Effect of state rate change on beginning balance of deferred tax liabilities | (9.40%) | (0.20%) |
Business meals/gifts/other permanent differences | 0.60% | (0.10%) |
Goodwill impairment | 0.00% | (6.50%) |
Dividends received deduction | (11.10%) | 1.50% |
Revenue recognized for book but not tax | (0.40%) | 0.00% |
Prior year true-up | 0.00% | 0.20% |
Foreign tax credits | (0.40%) | 0.10% |
CARES Act benefits | (4.40%) | 0.00% |
Others | 2.10% | (0.60%) |
Effective tax rate | 4.40% | 19.90% |
Note 3 - Income Taxes - Deferre
Note 3 - Income Taxes - Deferred Income Taxes (Details) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred tax assets attributable to: | ||
Accrued liabilities, including supplemental compensation and vacation pay accrual | $ 415,000 | $ 178,000 |
Impairment losses on investments | 1,016,000 | 2,201,000 |
Bad debt reserves not yet deductible | 55,000 | 41,000 |
Depreciation and amortization | 3,482,000 | 3,999,000 |
Deferred revenues | 913,000 | 885,000 |
Goodwill | 590,000 | 677,000 |
Net operating losses | 4,768,000 | 5,195,000 |
Credits and other | 432,000 | 456,000 |
Total deferred tax assets | 11,671,000 | 13,632,000 |
Deferred tax liabilities attributable to: | ||
Unrealized gains on investments | (35,870,000) | (37,241,000) |
Net deferred income taxes | $ (24,199,000) | $ (23,609,000) |
Note 3 - Income Taxes - Operati
Note 3 - Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Sep. 30, 2020USD ($) |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |
Operating Loss Carryforward | $ 20.1 |
Operating Loss Carryforward, No Expiration | 1.6 |
Domestic Tax Authority [Member] | California Franchise Tax Board [Member] | |
Operating Loss Carryforward | 6.1 |
Domestic Tax Authority [Member] | Other State [Member] | |
Operating Loss Carryforward | 2.6 |
Domestic Tax Authority [Member] | Expires at Fiscal Year Ended September 30, 2036 [Member] | Internal Revenue Service (IRS) [Member] | |
Operating Loss Carryforward | 8 |
Domestic Tax Authority [Member] | Expires at Fiscal Year Ended September 30, 2037 [Member] | Internal Revenue Service (IRS) [Member] | |
Operating Loss Carryforward | 6.6 |
Domestic Tax Authority [Member] | Expires at Fiscal Year Ended September 30, 2038 [Member] | Internal Revenue Service (IRS) [Member] | |
Operating Loss Carryforward | 11.1 |
Domestic Tax Authority [Member] | Expires at Fiscal Year Ended September 30, 2039 [Member] | Internal Revenue Service (IRS) [Member] | |
Operating Loss Carryforward | 0 |
State and Local Jurisdiction [Member] | California Franchise Tax Board [Member] | |
Operating Loss Carryforward, No Expiration | 0 |
State and Local Jurisdiction [Member] | Other State [Member] | |
Operating Loss Carryforward, No Expiration | 0 |
State and Local Jurisdiction [Member] | Expires at Fiscal Year Ended September 30, 2036 [Member] | California Franchise Tax Board [Member] | |
Operating Loss Carryforward | 0 |
State and Local Jurisdiction [Member] | Expires at Fiscal Year Ended September 30, 2036 [Member] | Other State [Member] | |
Operating Loss Carryforward | 0 |
State and Local Jurisdiction [Member] | Expires at Fiscal Year Ended September 30, 2037 [Member] | California Franchise Tax Board [Member] | |
Operating Loss Carryforward | 0 |
State and Local Jurisdiction [Member] | Expires at Fiscal Year Ended September 30, 2037 [Member] | Other State [Member] | |
Operating Loss Carryforward | 3 |
State and Local Jurisdiction [Member] | Expires at Fiscal Year Ended September 30, 2038 [Member] | California Franchise Tax Board [Member] | |
Operating Loss Carryforward | 5.4 |
State and Local Jurisdiction [Member] | Expires at Fiscal Year Ended September 30, 2038 [Member] | Other State [Member] | |
Operating Loss Carryforward | 2 |
State and Local Jurisdiction [Member] | Expires at Fiscal Year Ended September 30, 2039 [Member] | California Franchise Tax Board [Member] | |
Operating Loss Carryforward | 7 |
State and Local Jurisdiction [Member] | Expires at Fiscal Year Ended September 30, 2039 [Member] | Other State [Member] | |
Operating Loss Carryforward | $ 3 |
Note 4 - Debts and Commitment_2
Note 4 - Debts and Commitments (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2015USD ($)ft²a | Sep. 30, 2020USD ($)ft² | Sep. 30, 2019USD ($) | Sep. 30, 2013USD ($) | Oct. 31, 2020 | |
Proceeds from Issuance of Debt | $ 1,000,000 | $ 0 | |||
Payments to Acquire Property, Plant, and Equipment, Total | 184,000 | 165,000 | |||
Operating Leases, Rent Expense, Net, Total | $ 612,000 | $ 1,017,000 | |||
Measurement Input, Discount Rate [Member] | |||||
Incentive Plan Future Commitment, Measurement Input | 6.00% | 6.00% | |||
UTAH | Building [Member] | |||||
Area of Real Estate Property (Square Foot) | ft² | 30,700 | ||||
UTAH | Land [Member] | |||||
Area of Land (Acre) | a | 3.6 | ||||
UTAH | Land and Building [Member] | |||||
Payments to Acquire Property, Plant, and Equipment, Total | $ 1,240,000 | ||||
San Francisco Office [Member] | |||||
Area of Real Estate Property (Square Foot) | ft² | 6,200 | ||||
Margin Account [Member] | |||||
Proceeds from Issuance of Debt | $ 29,500,000 | ||||
Margin Account [Member] | Fed Funds Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 75.00% | ||||
Real Estate Bank Loan Secured by Logan Office [Member] | |||||
Loans Payable to Bank, Total | $ 2,260,000 | $ 1,710,000 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.66% | ||||
Debt Instrument, Periodic Payment, Total | $ 17,600 | ||||
Real Estate Bank Loan Secured by Logan Office [Member] | Subsequent Event [Member] | |||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.33% | ||||
Long-term Debt, Term (Year) | 10 years |
Note 4 - Debts and Commitment_3
Note 4 - Debts and Commitments - Future Obligations (Details) | Sep. 30, 2020USD ($) | |
Payments due by Fiscal Year One | $ 129,000 | |
Payments due by Fiscal Year Two | 11,000 | |
Payments due by Fiscal Year Three | 0 | |
Payments due by Fiscal Year Four | 0 | |
Payments due by Fiscal Year Five | 0 | |
Payments due by Fiscal Year After Year Five | 0 | |
Payments due by Fiscal Year Total | 140,000 | |
Payments due by Fiscal Year One | 270,000 | |
Payments due by Fiscal Year Two | 593,000 | |
Payments due by Fiscal Year Three | 344,000 | |
Payments due by Fiscal Year Four | 373,000 | |
Payments due by Fiscal Year Five | 324,000 | |
Payments due by Fiscal Year After Year Five | 1,400,000 | |
Payments due by Fiscal Year Total | 3,304,000 | |
Real Estate Loan [Member] | ||
Payments due by Fiscal Year One | 131,000 | |
Payments due by Fiscal Year Two | 148,000 | |
Payments due by Fiscal Year Three | 153,000 | |
Payments due by Fiscal Year Four | 158,000 | |
Payments due by Fiscal Year Five | 164,000 | |
Payments due by Fiscal Year After Year Five | 955,000 | |
Payments due by Fiscal Year Total | 1,709,000 | |
Long Term Accrued Liabilities [Member] | ||
Payments due by Fiscal Year One | 10,000 | [1] |
Payments due by Fiscal Year Two | 434,000 | [1] |
Payments due by Fiscal Year Three | 191,000 | [1] |
Payments due by Fiscal Year Four | 215,000 | [1] |
Payments due by Fiscal Year Five | 160,000 | [1] |
Payments due by Fiscal Year After Year Five | 445,000 | [1] |
Payments due by Fiscal Year Total | $ 1,455,000 | [1] |
[1] | The long-term accrued liabilities for the Management Incentive Plan are discounted to the present value using a discount rate of 6%. |
Note 6 - Reportable Segments (D
Note 6 - Reportable Segments (Details Textual) | 12 Months Ended | |
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Number of Reportable Segments | 2 | |
Goodwill, Impairment Loss | $ 0 | $ 13,400,000 |
Revenue from Contract with Customer, Including Assessed Tax | 49,942,000 | 48,655,000 |
Traditional Business [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 14,695,000 | 17,093,000 |
Traditional Business [Member] | Transferred at Point in Time [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 9,605,000 | 11,844,000 |
Traditional Business [Member] | Transferred over Time [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 5,090,000 | 5,249,000 |
Journal Technologies [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 35,247,000 | 31,562,000 |
Journal Technologies [Member] | Transferred at Point in Time [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 14,025,000 | 12,353,000 |
Journal Technologies [Member] | Transferred over Time [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 21,222,000 | $ 19,209,000 |
Note 6 - Reportable Segments -
Note 6 - Reportable Segments - Summarized Financial Information for Reportable Segments (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 49,942,000 | $ 48,655,000 | |
Operating expenses | 51,225,000 | 66,879,000 | |
Income (loss) from operations | (1,283,000) | (18,224,000) | |
Dividends and interest income | 4,965,000 | 5,380,000 | |
Other income | 3,000 | 38,000 | |
Unrealized Gain (Loss) on Investments, Total | (3,099,000) | (17,715,000) | |
Gains on sales of marketable securities, net | 4,193,000 | 0 | |
Pretax income | 4,226,000 | (31,476,000) | |
Income tax expense | (185,000) | 6,260,000 | |
Net income (loss) | 4,041,000 | (25,216,000) | |
Total assets | 238,575,000 | 237,376,000 | |
Capital expenditures | 184,000 | 165,000 | |
Net unrealized losses on investments | (3,099,000) | (17,715,000) | |
Real Estate Bank Loan Secured by Logan Office [Member] | |||
Interest expense on debt | (119,000) | (93,000) | |
Margin Account [Member] | |||
Interest expense on debt | (434,000) | (862,000) | |
Advertising [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 7,104,000 | 9,132,000 | |
Subscription and Circulation [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 5,090,000 | 5,249,000 | |
Advertising Service Fees and Other [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 2,501,000 | 2,712,000 | |
License and Maintenance [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 21,647,000 | 20,179,000 | |
Consulting Fees [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 7,718,000 | 5,539,000 | |
Service, Other [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 5,882,000 | 5,844,000 | |
Traditional Business [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 14,695,000 | 17,093,000 | |
Journal Technologies [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 35,247,000 | 31,562,000 | |
Operating Segments [Member] | Traditional Business [Member] | |||
Operating expenses | 16,425,000 | 16,981,000 | |
Income (loss) from operations | (1,730,000) | 112,000 | |
Dividends and interest income | 0 | 0 | |
Other income | 0 | 0 | |
Unrealized Gain (Loss) on Investments, Total | 0 | 0 | |
Gains on sales of marketable securities, net | 0 | ||
Pretax income | (1,814,000) | 19,000 | |
Income tax expense | 685,000 | (5,000) | |
Net income (loss) | (1,129,000) | 14,000 | |
Total assets | 35,896,000 | 17,176,000 | |
Capital expenditures | 121,000 | 132,000 | |
Net unrealized losses on investments | 0 | 0 | |
Operating Segments [Member] | Traditional Business [Member] | Real Estate Bank Loan Secured by Logan Office [Member] | |||
Interest expense on debt | (84,000) | (93,000) | |
Operating Segments [Member] | Traditional Business [Member] | Margin Account [Member] | |||
Interest expense on debt | 0 | 0 | |
Operating Segments [Member] | Traditional Business [Member] | Advertising [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 7,104,000 | 9,132,000 | |
Operating Segments [Member] | Traditional Business [Member] | Subscription and Circulation [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 5,090,000 | 5,249,000 | |
Operating Segments [Member] | Traditional Business [Member] | Advertising Service Fees and Other [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 2,501,000 | 2,712,000 | |
Operating Segments [Member] | Traditional Business [Member] | License and Maintenance [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Operating Segments [Member] | Traditional Business [Member] | Consulting Fees [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Operating Segments [Member] | Traditional Business [Member] | Service, Other [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Operating Segments [Member] | Journal Technologies [Member] | |||
Operating expenses | 34,800,000 | 49,898,000 | [1] |
Income (loss) from operations | 447,000 | (18,336,000) | |
Dividends and interest income | 0 | 0 | |
Other income | 0 | 0 | |
Unrealized Gain (Loss) on Investments, Total | 0 | 0 | |
Gains on sales of marketable securities, net | 0 | ||
Pretax income | 447,000 | (18,336,000) | |
Income tax expense | 100,000 | 2,450,000 | |
Net income (loss) | 547,000 | (15,886,000) | |
Total assets | 22,277,000 | 22,741,000 | |
Capital expenditures | 63,000 | 33,000 | |
Net unrealized losses on investments | 0 | 0 | |
Operating Segments [Member] | Journal Technologies [Member] | Real Estate Bank Loan Secured by Logan Office [Member] | |||
Interest expense on debt | 0 | 0 | |
Operating Segments [Member] | Journal Technologies [Member] | Margin Account [Member] | |||
Interest expense on debt | 0 | 0 | |
Operating Segments [Member] | Journal Technologies [Member] | Advertising [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Operating Segments [Member] | Journal Technologies [Member] | Subscription and Circulation [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Operating Segments [Member] | Journal Technologies [Member] | Advertising Service Fees and Other [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Operating Segments [Member] | Journal Technologies [Member] | License and Maintenance [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 21,647,000 | 20,179,000 | |
Operating Segments [Member] | Journal Technologies [Member] | Consulting Fees [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 7,718,000 | 5,539,000 | |
Operating Segments [Member] | Journal Technologies [Member] | Service, Other [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 5,882,000 | 5,844,000 | |
Corporate, Non-Segment [Member] | |||
Operating expenses | 0 | 0 | |
Income (loss) from operations | 0 | 0 | |
Dividends and interest income | 4,965,000 | 5,380,000 | |
Other income | 3,000 | 38,000 | |
Unrealized Gain (Loss) on Investments, Total | (3,099,000) | (17,715,000) | |
Gains on sales of marketable securities, net | 4,193,000 | ||
Pretax income | 5,593,000 | (13,159,000) | |
Income tax expense | (970,000) | 3,815,000 | |
Net income (loss) | 4,623,000 | (9,344,000) | |
Total assets | 180,402,000 | 197,459,000 | |
Capital expenditures | 0 | 0 | |
Net unrealized losses on investments | (3,099,000) | (17,715,000) | |
Corporate, Non-Segment [Member] | Real Estate Bank Loan Secured by Logan Office [Member] | |||
Interest expense on debt | (35,000) | 0 | |
Corporate, Non-Segment [Member] | Margin Account [Member] | |||
Interest expense on debt | (434,000) | (862,000) | |
Corporate, Non-Segment [Member] | Advertising [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Corporate, Non-Segment [Member] | Subscription and Circulation [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Corporate, Non-Segment [Member] | Advertising Service Fees and Other [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Corporate, Non-Segment [Member] | License and Maintenance [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Corporate, Non-Segment [Member] | Consulting Fees [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |
Corporate, Non-Segment [Member] | Service, Other [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 0 | $ 0 | |
[1] | included goodwill impairment of $13,400,000 |