Daily Journal (DJCO) 10-Q 10 May 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Entity Registrant Name	DAILY JOURNAL CORPORATION
Entity Central Index Key	783,412
Trading Symbol	djco
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		1,380,746
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Sep. 30, 2015
Subscription Arrangement [Member]
LIABILITIES AND SHAREHOLDERS' EQUITY
Deferred revenue	$ 3,491,000	$ 3,474,000
Deferred Installation Contracts [Member]
LIABILITIES AND SHAREHOLDERS' EQUITY
Deferred revenue	6,133,000	7,820,000
Deferred Maintenance Agreement [Member]
LIABILITIES AND SHAREHOLDERS' EQUITY
Deferred revenue	6,796,000	6,815,000
Cash and cash equivalents	9,228,000	15,617,000
Marketable securities at fair value, including common stocks of $154,960,000 and bonds of $7,571,000 at March 31, 2016 and common stocks of $158,705,000 and bonds of $7,336,000 at September 30, 2015	162,531,000	166,041,000
Accounts receivable, less allowance for doubtful accounts of $250,000 at March 31, 2016 and September 30, 2015	6,123,000	5,673,000
Inventories	38,000	48,000
Prepaid expenses and other assets	664,000	684,000
Income tax receivable	352,000	765,000
Total current assets	178,936,000	188,828,000
Land, buildings and improvements	16,283,000	12,773,000
Furniture, office equipment and computer software	2,754,000	2,655,000
Machinery and equipment	1,864,000	1,864,000
	20,901,000	17,292,000
Less accumulated depreciation	(8,641,000)	(8,335,000)
	12,260,000	8,957,000
Intangibles, net	10,472,000	12,990,000
Goodwill	13,400,000	13,400,000
Deferred income taxes, net	6,894,000	4,021,000
	221,962,000	228,196,000
Accounts payable	2,617,000	4,212,000
Accrued liabilities	2,790,000	$ 2,919,000
Note payable collateralized by real estate	107,000
Deferred income taxes, net	39,798,000	$ 40,641,000
Total current liabilities	61,732,000	65,881,000
Investment margin account borrowings	29,493,000	$ 29,493,000
Note payable collateralized by real estate	2,127,000
Deferred maintenance agreements	234,000	$ 551,000
Income tax payable	2,866,000	2,991,000
Accrued interest and penalty for uncertain and unrecognized tax benefits	682,000	633,000
Accrued liabilities	102,000	47,000
Total long term liabilities	$ 35,504,000	$ 33,715,000
Commitments and contingencies (Note 10)
Preferred stock, $.01 par value, 5,000,000 shares authorized and no shares issued
Common stock, $.01 par value, 5,000,000 shares authorized; 1,805,053 shares issued, including 424,307 treasury shares, at March 31, 2016 and September 30, 2015	$ 14,000	$ 14,000
Additional paid-in capital	1,755,000	1,755,000
Retained earnings	59,368,000	59,111,000
Accumulated other comprehensive income	63,589,000	67,720,000
Total shareholders' equity	124,726,000	128,600,000
	$ 221,962,000	$ 228,196,000

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)	Mar. 31, 2016	Sep. 30, 2015
Market securities, common stock	$ 154,960,000	$ 158,705,000
Market securities, bonds	7,571,000	7,336,000
Accounts receivable, allowance for doubtful accounts	$ 250,000	$ 250,000
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

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenues
Advertising	$ 2,346,000	$ 2,549,000	$ 4,667,000	$ 5,253,000
Circulation	1,458,000	1,460,000	2,964,000	2,984,000
Advertising service fees and other	644,000	650,000	1,294,000	1,335,000
Licensing and maintenance fees	4,107,000	3,680,000	7,754,000	7,437,000
Consulting fees	1,664,000	1,418,000	3,040,000	2,610,000
Other public service fees	1,223,000	1,635,000	2,538,000	3,096,000
	11,442,000	11,392,000	22,257,000	22,715,000
Costs and expenses
Salaries and employee benefits	7,029,000	6,771,000	13,677,000	13,383,000
Other outside services	813,000	835,000	1,677,000	1,682,000
Postage and delivery expenses	292,000	312,000	578,000	644,000
Newsprint and printing expenses	219,000	258,000	436,000	600,000
Depreciation and amortization	1,428,000	1,367,000	2,843,000	2,727,000
Other general and administrative expenses	2,237,000	2,815,000	4,584,000	5,006,000
	12,018,000	12,358,000	23,795,000	24,042,000
Loss from operations	(576,000)	(966,000)	(1,538,000)	(1,327,000)
Other income (expense)
Dividends and interest income	833,000	860,000	1,736,000	1,688,000
Other income and capital gains	14,000	14,000	30,000	32,000
Interest expense	(94,000)	(55,000)	(162,000)	(112,000)
Interest expense accrued for uncertain and unrecognized tax benefits	(25,000)	(24,000)	(49,000)	(44,000)
Income (loss) before income taxes	152,000	(171,000)	17,000	237,000
Benefit from (provision for) income taxes	55,000	675,000	240,000	700,000
Net income	$ 207,000	$ 504,000	$ 257,000	$ 937,000
Weighted average number of common shares outstanding - basic and diluted (in shares)	1,380,746	1,380,746	1,380,746	1,380,746
Basic and diluted net income per share (in dollars per share)	$ 0.15	$ 0.37	$ 0.19	$ 0.68
Comprehensive loss
Net income	$ 207,000	$ 504,000	$ 257,000	$ 937,000
Net decrease in unrealized appreciation of marketable securities (net of taxes)	(10,058,000)	(802,000)	(4,131,000)	(4,444,000)
(Loss) income before income taxes	$ (9,851,000)	$ (298,000)	$ (3,874,000)	$ (3,507,000)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Subscription Arrangement [Member]
Increase (decrease) in liabilities
Deferred Revenue Arrangements	$ 17,000	$ 11,000
Deferred Maintenance Agreement [Member]
Increase (decrease) in liabilities
Deferred Revenue Arrangements	(336,000)	(1,578,000)
Deferred Installation Contracts [Member]
Increase (decrease) in liabilities
Deferred Revenue Arrangements	(1,687,000)	(672,000)
Net income	257,000	937,000
Depreciation and amortization	$ 2,843,000	2,727,000
Gains on sales of marketable securities		(4,000)
Deferred income taxes	$ (498,000)	(862,000)
Discounts earned on bonds	(1,000)	(2,000)
Accounts receivable, net	(450,000)	2,003,000
Inventories	10,000	13,000
Prepaid expenses and other assets	20,000	139,000
Income tax receivable	413,000	1,183,000
Accounts payable	(1,595,000)	23,000
Accrued liabilities	(25,000)	(31,000)
Income taxes	(125,000)	(123,000)
Net cash (used for) provided by operating activities	$ (1,157,000)	3,764,000
Cash flows from investing activities
Sales of marketable securities		4,044,000
Purchases of marketable securities	$ (3,838,000)	(10,977,000)
Purchases of property, plant and equipment, including the Logan Utah office building	(3,628,000)	(386,000)
Net cash used for investing activities	(7,466,000)	$ (7,319,000)
Cash flows from financing activities
Note payable collateralized by real estate	2,260,000
Payment of loan principal	(26,000)
Net cash provided by financing activities	2,234,000
Decrease in cash and cash equivalents	(6,389,000)	$ (3,555,000)
Cash and cash equivalents
Beginning of period	15,617,000	15,410,000
End of period	9,228,000	11,855,000
Interest paid during period	158,000	112,000
Net income taxes refunded during period	$ (29,000)	$ (899,000)

Note 1 - The Corporation and Op

Note 1 - The Corporation and Operations	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1 - The Corporation and Operations Daily Journal Corporation (the “Company”) publishes newspapers and web sites 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, includes as of October 1, 2014, the combined operations of Sustain Technologies, Inc. (“Sustain”), a wholly-owned subsidiary since 2008; New Dawn Technologies, Inc. (“New Dawn”), acquired in December 2012; and ISD Technologies, Inc. (“ISD”), acquired in September 2013. Journal Technologies 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 bar members and the public, including a website to pay traffic citations online. These products are licensed to more than 500 organizations in 41 states and internationally. Essentially all of the Company’s operations are based in California, Arizona and Utah.

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Basis of Accounting [Text Block]	Note 2 - Basis of Presentation In the opinion of the Company, the accompanying interim unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of its financial position as of March 31, 2016, its results of operations for the three- and six-month periods ended March 31, 2016 and 2015 and its cash flows for the six-month periods ended March 31, 2016 and 2015. The results of operations for the three and six months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year. The consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2015. Certain reclassifications of previously reported amounts have been made to conform to the current year’s presentation.

Note 3 - Accounting Standards A

Note 3 - Accounting Standards Adopted in Fiscal 2016 and Recent Accounting Pronouncements	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 3 - Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) In addition, the Company will evaluate other new accounting pronouncements as detailed in its Annual Report on Form 10-K for the year ended September 30, 2015.

Note 4 - Basic and Diluted Inco

Note 4 - Basic and Diluted Income Per Share	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 4 - Basic and Diluted Income Per Share The Company does not have any common stock equivalents, and therefore the basic and diluted income per share are the same.

Note 5 - Intangible Assets

Note 5 - Intangible Assets	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	Note 5 - Intangible Assets Intangible Assets March 31, 2016 September 30, 2015 Customer Relationships Developed Technology Total Customer Relationships Developed Technology Total Gross intangible $ 22,104,000 $ 2,525,000 $ 24,629,000 $ 22,104,000 $ 2,525,000 $ 24,629,000 Accumulated amortization (12,672,000 ) (1,485,000 ) (14,157,000 ) (10,406,000 ) (1,233,000 ) (11,639,000 ) $ 9,432,000 $ 1,040,000 $ 10,472,000 $ 11,698,000 $ 1,292,000 $ 12,990,000 These identifiable intangible assets are being amortized over five years or less for financial statement purposes due to the short life cycle of technology that customer relationships depend on, and over a 15-year period on a straight-line basis for tax purposes. The intangible amortization expenses were $2,518,000 and $1,259,000 for the six- and three-month periods ended March 31, 2016, respectively, as compared with $2,448,000 and $1,224,000 in the prior year periods.

Note 6 - Goodwill

Note 6 - Goodwill	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Goodwill Disclosure [Text Block]	Note 6 – Goodwill The Company accounts for goodwill in accordance with Accounting Standards Codification (ASC) 350, Intangibles — Goodwill and Other In addition, ASU 2011-08, Intangible – Goodwill and Others -- Testing Goodwill for Impairment

Note 7 - Revenue Recognition

Note 7 - Revenue Recognition	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Deferred Revenue Disclosure [Text Block]	Note 7 – Revenue Recognition For the Company’s traditional publishing business (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 commissions. Journal Technologies recognizes revenues in accordance with the provisions of ASC 985-605, Software—Revenue Recognition Construction-Type and Production-Type Contracts The Company has established Vendor Specific Objective Evidence (VSOE) of fair value of the annual maintenance because a substantial majority of the Journal Technologies’ actual maintenance renewals is within a narrow range of pricing as a percentage of the underlying license fees for the legacy contracts and is deemed substantive. Approximately 60% and 58% of the Company’s revenues during the six months ended March 31, 2016 and 2015, respectively, were derived from Journal Technologies.

Note 8 - Income Taxes

Note 8 - Income Taxes	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 8 - Income Taxes For the six months ended March 31, 2016, the Company recorded an income tax benefit of $240,000 on pretax profit of $17,000. The income tax benefit was the result of applying the effective tax rate anticipated for fiscal 2016 to pretax income for the six-month period ended March 31, 2016. The effective tax rate was lower than the statutory rate primarily due to the dividends received deduction and the domestic production activity deduction. On pretax income of $237,000 for the six months ended March 31, 2015, the Company recorded an income tax benefit of $700,000 which was the net result of applying the effective tax rate anticipated for fiscal 2015 to pretax income for the six months ended March 31, 2015. The Company’s effective tax rate was -1,412% and -295% for the six months ended March 31, 2016 and 2015, respectively. The Company files federal income tax returns in the United States and with various state jurisdictions and is no longer subject to examinations for fiscal years before fiscal 2012 with regard to federal income taxes and fiscal 2011 for state income taxes. At March 31, 2016, the Company had an accrued liability of approximately $2,866,000 for uncertain and unrecognized tax benefits relating to an acquisition in fiscal 2013, after a reduction of $378,000 resulting from the recognition of deferred revenues and from the amortization of goodwill for tax purposes. The Company does not anticipate a significant increase or decrease in this liability in the next twelve months. If recognized, it is expected that these unrecognized tax benefits would not have a significant impact to the Company’s effective tax rate. During the six-month periods ended March 31, 2016 and 2015, interest expenses of approximately $49,000 and $44,000, respectively, were recorded as “interest expense accrued for uncertain and unrecognized tax benefits” in the Consolidated Statements of Comprehensive Loss.

Note 9 - Investments in Marketa

Note 9 - Investments in Marketable Securities	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	Note 9 - Investments in Marketable Securities Investments in marketable securities categorized as “available-for-sale” are stated at fair value. The Company uses quoted prices in active markets for identical assets (consistent with the Level 1 definition in the fair value hierarchy) to measure the fair value of its investments on a recurring basis pursuant to ASC 820, Fair Value Measurement Investments in equity securities and securities with fixed maturity as of March 31, 2016 and September 30, 2015 are summarized below. March 31, 2016 September 30, 2015 (Unaudited) Aggregate fair value Amortized/ Adjusted cost basis Pretax unrealized gains Aggregate fair value Amortized/ Adjusted cost basis Pretax unrealized gains Marketable securities Common stocks $ 154,960,000 $ 53,442,000 $ 101,518,000 $ 158,705,000 $ 49,604,000 $ 109,101,000 Bonds 7,571,000 4,940,000 2,631,000 7,336,000 4,939,000 2,397,000 Total $ 162,531,000 $ 58,382,000 $ 104,149,000 $ 166,041,000 $ 54,543,000 $ 111,498,000 All investments are classified as “Current assets” because they are available for sale at any time. The bonds mature in 2039. As of March 31, 2016, the Company perform ed an evaluation for an equity securit y with a fair value below cost to determine if the unrealized loss was other-than-temporary. This evaluation considers a number of factors including, but not limited to, the length of time and extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer and the Company’s ability and intent to hold the securit y until fair value recovers. The assessment of the ability and intent to hold th is securit y to recovery focuses on liquidity need s, asset/liability management objectives and securit y portfolio objectives. Based on the result of th e evaluation, the Company concluded that as of March 31, 2016, the unrealized loss related to the equity securit y it owns was temporary.

Note 10 - Debt and Commitments

Note 10 - Debt and Commitments and Contingencies	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Commitments Disclosure [Text Block]	Note 10 - Debt and Commitments and Contingencies In December 2012, the Company borrowed from its investment margin account the purchase price of $14 million for the New Dawn acquisition, and in September 2013, it borrowed another $15.5 million for the ISD acquisition, in each case pledging its marketable securities as collateral. The interest rate for these investment margin account borrowings fluctuates based on the Federal Funds Rate plus 50 basis points with interest only payable monthly. The interest rate as of March 31, 2016 was 1%. These investment margin account borrowings do not mature. In November 2015, the Company purchased a 30,700 square foot office building constructed in 1998 on about 3.6 acres in Logan, Utah that had been previously leased by Journal Technologies. The Company paid $1.24 million and financed the balance with a real estate bank loan of $2.26 million which bears a fixed interest rate of 4.66% and is repayable in equal monthly installments of about $17,600 through 2030. This loan is secured by the Logan facility and can be paid off at any time without prepayment penalty. The Company owns its facilities in Los Angeles and leases space for its other Daily Journal offices under operating leases which expire at various dates through fiscal 2020. The Company is responsible for a portion of maintenance, insurance and property tax expenses relating to these leased properties and certain other leased properties. Rental expenses were $415,000 and $165,000 for the six- and three-month periods ended March 31, 2016, respectively, as compared with $588,000 and $305,000 in the prior year periods. From time to time, the Company is subject to litigation arising in the normal course of its business. While it is not possible to predict the results of such litigation, management does not believe the ultimate outcome of these matters will have a material effect on the Company’s financial position or results of operations or cash flows.

Note 11 - Operating Segments

Note 11 - Operating Segments	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 11 - Operating Segments The Company’s reportable segments are: (i) the Traditional Business and (ii) Journal Technologies. All inter-segment transactions were eliminated. Summarized financial information concerning the Company’s reportable segments is shown in the following table: Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Six months ended March 31, 2016 Revenues Advertising $ 4,667,000 $ --- $ --- $ 4,667,000 Circulation 2,964,000 --- --- 2,964,000 Advertising service fees and other 1,294,000 --- --- 1,294,000 Licensing and maintenance fees --- 7,754,000 --- 7,754,000 Consulting fees --- 3,040,000 --- 3,040,000 Other public service fees --- 2,538,000 --- 2,538,000 Operating expenses 8,775,000 15,020,000 --- 23,795,000 Income (loss) from operations 150,000 (1,688,000 ) --- (1,538,000 ) Dividends and interest income --- --- 1,736,000 1,736,000 Other income 21,000 --- 9,000 30,000 Interest expenses on note payable collateralized by real estate and margin loans (36,000 ) --- (126,000 ) (162,000 ) Interest expense accrued for uncertain and unrecognized tax benefits --- (49,000 ) --- (49,000 ) Pretax income (loss) 135,000 (1,737,000 ) 1,619,000 17,000 Income tax (expense) benefit (165,000 ) 670,000 (265,000 ) 240,000 Net income (loss) (30,000 ) (1,067,000 ) 1,354,000 257,000 Total assets 16,946,000 42,485,000 162,531,000 221,962,000 Capital expenditures, including purchase of Logan building 3,625,000 3,000 --- 3,628,000 Amortization of intangible assets 71,000 2,447,000 --- 2,518,000 Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Six months ended March 31, 2015 Revenues Advertising $ 5,253,000 $ --- $ --- $ 5,253,000 Circulation 2,984,000 --- --- 2,984,000 Advertising service fees and other 1,335,000 --- --- 1,335,000 Licensing and maintenance fees --- 7,437,000 --- 7,437,000 Consulting fees --- 2,610,000 --- 2,610,000 Other public service fees --- 3,096,000 --- 3,096,000 Operating expenses 9,176,000 14,866,000 --- 24,042,000 Income (loss) from operations 396,000 (1,723,000 ) --- (1,327,000 ) Dividends and interest income --- --- 1,688,000 1,688,000 Other income and capital gains --- --- 32,000 32,000 Interest expenses on margin loans --- --- (112,000 ) (112,000 ) Interest expense accrued for uncertain and unrecognized tax benefits --- (44,000 ) --- (44,000 ) Pretax income (loss) 396,000 (1,767,000 ) 1,608,000 237,000 Income tax (expense) benefit 310,000 670,000 (280,000 ) 700,000 Net income (loss) 706,000 (1,097,000 ) 1,328,000 937,000 Total assets 14,012,000 47,718,000 172,865,000 234,595,000 Capital expenditures 306,000 80,000 --- 386,000 Amortization of intangible assets --- 2,448,000 --- 2,448,000 Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Three months ended March 31, 2016 Revenues Advertising $ 2,346,000 $ --- $ --- $ 2,346,000 Circulation 1,458,000 --- --- 1,458,000 Advertising service fees and other 644,000 --- --- 644,000 Licensing and maintenance fees --- 4,107,000 --- 4,107,000 Consulting fees --- 1,664,000 --- 1,664,000 Other public service fees --- 1,223,000 --- 1,223,000 Operating expenses 4,422,000 7,596,000 --- 12,018,000 Income (loss) from operations 26,000 (602,000 ) --- (576,000 ) Dividends and interest income --- --- 833,000 833,000 Other income 14,000 --- --- 14,000 Interest expenses on note payable collateralized by real estate and margin loans (27,000 ) --- (67,000 ) (94,000 ) Interest expense accrued for uncertain and unrecognized tax benefits --- (25,000 ) --- (25,000 ) Pretax income (loss) 13,000 (627,000 ) 766,000 152,000 Income tax (expense) benefit (115,000 ) 275,000 (105,000 ) 55,000 Net income (loss) (102,000 ) (352,000 ) 661,000 207,000 Total assets 16,946,000 42,485,000 162,531,000 221,962,000 Capital expenditures 84,000 3,000 --- 87,000 Amortization of intangible assets 36,000 1,223,000 --- 1,259,000 Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Three months ended March 31, 2015 Revenues Advertising $ 2,549,000 $ --- $ --- $ 2,549,000 Circulation 1,460,000 --- --- 1,460,000 Advertising service fees and other 650,000 --- --- 650,000 Licensing and maintenance fees --- 3,680,000 --- 3,680,000 Consulting fees --- 1,418,000 --- 1,418,000 Other public service fees --- 1,635,000 --- 1,635,000 Operating expenses 4,553,000 7,805,000 --- 12,358,000 Income (loss) from operations 106,000 (1,072,000 ) --- (966,000 ) Dividends and interest income --- --- 860,000 860,000 Other income and capital gains --- --- 14,000 14,000 Interest expenses on margin loans --- --- (55,000 ) (55,000 ) Interest expense accrued for uncertain and unrecognized tax benefits --- (24,000 ) --- (24,000 ) Pretax income (loss) 106,000 (1,096,000 ) 819,000 (171,000 ) Income tax (expense) benefit 400,000 420,000 (145,000 ) 675,000 Net income (loss) 506,000 (676,000 ) 674,000 504,000 Total assets 14,012,000 47,718,000 172,865,000 234,595,000 Capital expenditures 248,000 69,000 --- 317,000 Amortization of intangible assets --- 1,224,000 --- 1,224,000

Note 12 - Subsequent Events

Note 12 - Subsequent Events	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	Note 12 - Subsequent Events The Company has completed an evaluation of all subsequent events through the issuance date of these financial statements and concluded that no subsequent events occurred that required recognition to the financial statements or disclosures in the Notes to Consolidated Financial Statements or cash flows.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) In addition, the Company will evaluate other new accounting pronouncements as detailed in its Annual Report on Form 10-K for the year ended September 30, 2015.

Note 5 - Intangible Assets (Tab

Note 5 - Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible Assets March 31, 2016 September 30, 2015 Customer Relationships Developed Technology Total Customer Relationships Developed Technology Total Gross intangible $ 22,104,000 $ 2,525,000 $ 24,629,000 $ 22,104,000 $ 2,525,000 $ 24,629,000 Accumulated amortization (12,672,000 ) (1,485,000 ) (14,157,000 ) (10,406,000 ) (1,233,000 ) (11,639,000 ) $ 9,432,000 $ 1,040,000 $ 10,472,000 $ 11,698,000 $ 1,292,000 $ 12,990,000

Note 9 - Investments in Marke20

Note 9 - Investments in Marketable Securities (Tables)	6 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]	March 31, 2016 September 30, 2015 (Unaudited) Aggregate fair value Amortized/ Adjusted cost basis Pretax unrealized gains Aggregate fair value Amortized/ Adjusted cost basis Pretax unrealized gains Marketable securities Common stocks $ 154,960,000 $ 53,442,000 $ 101,518,000 $ 158,705,000 $ 49,604,000 $ 109,101,000 Bonds 7,571,000 4,940,000 2,631,000 7,336,000 4,939,000 2,397,000 Total $ 162,531,000 $ 58,382,000 $ 104,149,000 $ 166,041,000 $ 54,543,000 $ 111,498,000

Note 11 - Operating Segments (T

Note 11 - Operating Segments (Tables)	6 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Six months ended March 31, 2016 Revenues Advertising $ 4,667,000 $ --- $ --- $ 4,667,000 Circulation 2,964,000 --- --- 2,964,000 Advertising service fees and other 1,294,000 --- --- 1,294,000 Licensing and maintenance fees --- 7,754,000 --- 7,754,000 Consulting fees --- 3,040,000 --- 3,040,000 Other public service fees --- 2,538,000 --- 2,538,000 Operating expenses 8,775,000 15,020,000 --- 23,795,000 Income (loss) from operations 150,000 (1,688,000 ) --- (1,538,000 ) Dividends and interest income --- --- 1,736,000 1,736,000 Other income 21,000 --- 9,000 30,000 Interest expenses on note payable collateralized by real estate and margin loans (36,000 ) --- (126,000 ) (162,000 ) Interest expense accrued for uncertain and unrecognized tax benefits --- (49,000 ) --- (49,000 ) Pretax income (loss) 135,000 (1,737,000 ) 1,619,000 17,000 Income tax (expense) benefit (165,000 ) 670,000 (265,000 ) 240,000 Net income (loss) (30,000 ) (1,067,000 ) 1,354,000 257,000 Total assets 16,946,000 42,485,000 162,531,000 221,962,000 Capital expenditures, including purchase of Logan building 3,625,000 3,000 --- 3,628,000 Amortization of intangible assets 71,000 2,447,000 --- 2,518,000 Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Six months ended March 31, 2015 Revenues Advertising $ 5,253,000 $ --- $ --- $ 5,253,000 Circulation 2,984,000 --- --- 2,984,000 Advertising service fees and other 1,335,000 --- --- 1,335,000 Licensing and maintenance fees --- 7,437,000 --- 7,437,000 Consulting fees --- 2,610,000 --- 2,610,000 Other public service fees --- 3,096,000 --- 3,096,000 Operating expenses 9,176,000 14,866,000 --- 24,042,000 Income (loss) from operations 396,000 (1,723,000 ) --- (1,327,000 ) Dividends and interest income --- --- 1,688,000 1,688,000 Other income and capital gains --- --- 32,000 32,000 Interest expenses on margin loans --- --- (112,000 ) (112,000 ) Interest expense accrued for uncertain and unrecognized tax benefits --- (44,000 ) --- (44,000 ) Pretax income (loss) 396,000 (1,767,000 ) 1,608,000 237,000 Income tax (expense) benefit 310,000 670,000 (280,000 ) 700,000 Net income (loss) 706,000 (1,097,000 ) 1,328,000 937,000 Total assets 14,012,000 47,718,000 172,865,000 234,595,000 Capital expenditures 306,000 80,000 --- 386,000 Amortization of intangible assets --- 2,448,000 --- 2,448,000 Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Three months ended March 31, 2016 Revenues Advertising $ 2,346,000 $ --- $ --- $ 2,346,000 Circulation 1,458,000 --- --- 1,458,000 Advertising service fees and other 644,000 --- --- 644,000 Licensing and maintenance fees --- 4,107,000 --- 4,107,000 Consulting fees --- 1,664,000 --- 1,664,000 Other public service fees --- 1,223,000 --- 1,223,000 Operating expenses 4,422,000 7,596,000 --- 12,018,000 Income (loss) from operations 26,000 (602,000 ) --- (576,000 ) Dividends and interest income --- --- 833,000 833,000 Other income 14,000 --- --- 14,000 Interest expenses on note payable collateralized by real estate and margin loans (27,000 ) --- (67,000 ) (94,000 ) Interest expense accrued for uncertain and unrecognized tax benefits --- (25,000 ) --- (25,000 ) Pretax income (loss) 13,000 (627,000 ) 766,000 152,000 Income tax (expense) benefit (115,000 ) 275,000 (105,000 ) 55,000 Net income (loss) (102,000 ) (352,000 ) 661,000 207,000 Total assets 16,946,000 42,485,000 162,531,000 221,962,000 Capital expenditures 84,000 3,000 --- 87,000 Amortization of intangible assets 36,000 1,223,000 --- 1,259,000 Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Three months ended March 31, 2015 Revenues Advertising $ 2,549,000 $ --- $ --- $ 2,549,000 Circulation 1,460,000 --- --- 1,460,000 Advertising service fees and other 650,000 --- --- 650,000 Licensing and maintenance fees --- 3,680,000 --- 3,680,000 Consulting fees --- 1,418,000 --- 1,418,000 Other public service fees --- 1,635,000 --- 1,635,000 Operating expenses 4,553,000 7,805,000 --- 12,358,000 Income (loss) from operations 106,000 (1,072,000 ) --- (966,000 ) Dividends and interest income --- --- 860,000 860,000 Other income and capital gains --- --- 14,000 14,000 Interest expenses on margin loans --- --- (55,000 ) (55,000 ) Interest expense accrued for uncertain and unrecognized tax benefits --- (24,000 ) --- (24,000 ) Pretax income (loss) 106,000 (1,096,000 ) 819,000 (171,000 ) Income tax (expense) benefit 400,000 420,000 (145,000 ) 675,000 Net income (loss) 506,000 (676,000 ) 674,000 504,000 Total assets 14,012,000 47,718,000 172,865,000 234,595,000 Capital expenditures 248,000 69,000 --- 317,000 Amortization of intangible assets --- 1,224,000 --- 1,224,000

Note 5 - Intangible Assets (Det

Note 5 - Intangible Assets (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Tax Purposes [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			15 years
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			5 years
Amortization of Intangible Assets	$ 1,259,000	$ 1,224,000	$ 2,518,000	$ 2,448,000

Note 5 - Summary of Intangible

Note 5 - Summary of Intangible Assets (Details) - USD ($)	Mar. 31, 2016	Sep. 30, 2015
Customer Relationships [Member]
Gross intangible	$ 22,104,000	$ 22,104,000
Accumulated amortization	(12,672,000)	(10,406,000)
Net intangibles	9,432,000	11,698,000
Developed Technology Rights [Member]
Gross intangible	2,525,000	2,525,000
Accumulated amortization	(1,485,000)	(1,233,000)
Net intangibles	1,040,000	1,292,000
Gross intangible	24,629,000	24,629,000
Accumulated amortization	(14,157,000)	(11,639,000)
Net intangibles	$ 10,472,000	$ 12,990,000

Note 6 - Goodwill (Details Text

Note 6 - Goodwill (Details Textual) - USD ($)	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Goodwill, Impairment Loss	$ 0	$ 0
Goodwill Useful Life for Tax Purposes	15 years

Note 7 - Revenue Recognition (D

Note 7 - Revenue Recognition (Details Textual)	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Sales Revenue, Net [Member] | Product Concentration Risk [Member]
Concentration Risk, Percentage	60.00%	58.00%

Note 8 - Income Taxes (Details

Note 8 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Income Tax Expense (Benefit)	$ (55,000)	$ (675,000)	$ (240,000)	$ (700,000)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	152,000	(171,000)	$ 17,000	$ 237,000
Effective Income Tax Rate Reconciliation, Percent			(1412.00%)	(295.00%)
Liability for Uncertainty in Income Taxes, Noncurrent	2,866,000		$ 2,866,000
Unrecognized Tax Benefits, Accumulated Reduction	(378,000)		(378,000)
Unrecognized Tax Benefits, Interest on Income Taxes Expense	$ 25,000	$ 24,000	$ 49,000	$ 44,000

Note 9 - Investments in Marke27

Note 9 - Investments in Marketable Securities (Details Textual) - USD ($)	Mar. 31, 2016	Sep. 30, 2015
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	$ 104,149,000	$ 111,498,000
Deferred Tax Liabilities, Investments	$ 40,060,000	$ 43,278,000

Note 9 - Summary of Investments

Note 9 - Summary of Investments (Details) - USD ($)	Mar. 31, 2016	Sep. 30, 2015
Equity Securities [Member]
Marketable securities
Aggregate fair value	$ 154,960,000	$ 158,705,000
Amortized/Adjusted cost basis	53,442,000	49,604,000
Pretax unrealized gains	101,518,000	109,101,000
Debt Securities [Member]
Marketable securities
Aggregate fair value	7,571,000	7,336,000
Amortized/Adjusted cost basis	4,940,000	4,939,000
Pretax unrealized gains	2,631,000	2,397,000
Aggregate fair value	162,531,000	166,041,000
Amortized/Adjusted cost basis	58,382,000	54,543,000
Pretax unrealized gains	$ 104,149,000	$ 111,498,000

Note 10 - Debt and Commitment29

Note 10 - Debt and Commitments and Contingencies (Details Textual)	Sep. 13, 2013USD ($)	Dec. 04, 2012USD ($)	Nov. 30, 2015USD ($)aft²	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)
New Dawn [Member] | Margin Account [Member]
Proceeds from Other Debt		$ 14,000,000
ISD Corporation [Member] | Margin Account [Member]
Proceeds from Other Debt	$ 15,500,000
Margin Account [Member] | Fed Funds Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Real Estate Bank Loan Secured by Logan Office [Member]
Loans Payable to Bank			$ 2,260,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate			4.66%
Debt Instrument, Periodic Payment			$ 17,600
Utah [Member] | Building [Member]
Area of Real Estate Property | ft²			30,700
Utah [Member] | Land [Member]
Area of Land | a			3.6
Utah [Member] | Land and Building [Member]
Payments to Acquire Property, Plant, and Equipment			$ 1,240,000
Debt Instrument, Interest Rate, Effective Percentage				1.00%		1.00%
Payments to Acquire Property, Plant, and Equipment				$ 87,000	$ 317,000	$ 3,628,000	$ 386,000
Operating Leases, Rent Expense				$ 165,000	$ 305,000	$ 415,000	$ 588,000

Note 11 - Summarized Financial

Note 11 - Summarized Financial Information for Reportable Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Operating Segments [Member] | Traditional Business [Member]
Advertising	$ 2,346,000	$ 2,549,000	$ 4,667,000	$ 5,253,000
Circulation	1,458,000	1,460,000	2,964,000	2,984,000
Advertising service fees and other	$ 644,000	$ 650,000	$ 1,294,000	$ 1,335,000
Licensing and maintenance fees
Consulting fees
Other public service fees
Operating expenses	$ 4,422,000	$ 4,553,000	$ 8,775,000	$ 9,176,000
Income (loss) from operations	$ 26,000	$ 106,000	$ 150,000	$ 396,000
Dividends and interest income
Other income and capital gains	$ 14,000		$ 21,000
Interest expenses on note payable collateralized by real estate and margin loans	$ (27,000)		$ (36,000)
Interest expense accrued for uncertain and unrecognized tax benefits
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	$ 13,000	$ 106,000	$ 135,000	$ 396,000
Income tax (expense) benefit	(115,000)	400,000	(165,000)	310,000
Net income (loss)	(102,000)	506,000	(30,000)	706,000
Total assets	16,946,000	14,012,000	16,946,000	14,012,000
Payments to Acquire Property, Plant, and Equipment	84,000	$ 248,000	3,625,000	$ 306,000
Amortization of Intangible Assets	$ 36,000		$ 71,000
Operating Segments [Member] | Journal Technologies [Member]
Advertising
Circulation
Advertising service fees and other
Licensing and maintenance fees	$ 4,107,000	$ 3,680,000	$ 7,754,000	$ 7,437,000
Consulting fees	1,664,000	1,418,000	3,040,000	2,610,000
Other public service fees	1,223,000	1,635,000	2,538,000	3,096,000
Operating expenses	7,596,000	7,805,000	15,020,000	14,866,000
Income (loss) from operations	$ (602,000)	$ (1,072,000)	$ (1,688,000)	$ (1,723,000)
Dividends and interest income
Other income and capital gains
Interest expenses on note payable collateralized by real estate and margin loans
Interest expense accrued for uncertain and unrecognized tax benefits	$ (25,000)	$ (24,000)	$ (49,000)	$ (44,000)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	(627,000)	(1,096,000)	(1,737,000)	(1,767,000)
Income tax (expense) benefit	275,000	420,000	670,000	670,000
Net income (loss)	(352,000)	(676,000)	(1,067,000)	(1,097,000)
Total assets	42,485,000	47,718,000	42,485,000	47,718,000
Payments to Acquire Property, Plant, and Equipment	3,000	69,000	3,000	80,000
Amortization of Intangible Assets	$ 1,223,000	$ 1,224,000	$ 2,447,000	$ 2,448,000
Corporate, Non-Segment [Member]
Advertising
Circulation
Advertising service fees and other
Licensing and maintenance fees
Consulting fees
Other public service fees
Operating expenses
Income (loss) from operations
Dividends and interest income	$ 833,000	$ 860,000	$ 1,736,000	$ 1,688,000
Other income and capital gains		14,000	9,000	32,000
Interest expenses on note payable collateralized by real estate and margin loans	$ (67,000)	$ (55,000)	$ (126,000)	$ (112,000)
Interest expense accrued for uncertain and unrecognized tax benefits
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	$ 766,000	$ 819,000	$ 1,619,000	$ 1,608,000
Income tax (expense) benefit	(105,000)	(145,000)	(265,000)	(280,000)
Net income (loss)	661,000	674,000	1,354,000	1,328,000
Total assets	$ 162,531,000	$ 172,865,000	$ 162,531,000	$ 172,865,000
Payments to Acquire Property, Plant, and Equipment
Amortization of Intangible Assets
Advertising	$ 2,346,000	$ 2,549,000	$ 4,667,000	$ 5,253,000
Circulation	1,458,000	1,460,000	2,964,000	2,984,000
Advertising service fees and other	644,000	650,000	1,294,000	1,335,000
Licensing and maintenance fees	4,107,000	3,680,000	7,754,000	7,437,000
Consulting fees	1,664,000	1,418,000	3,040,000	2,610,000
Other public service fees	1,223,000	1,635,000	2,538,000	3,096,000
Operating expenses	12,018,000	12,358,000	23,795,000	24,042,000
Income (loss) from operations	(576,000)	(966,000)	(1,538,000)	(1,327,000)
Dividends and interest income	833,000	860,000	1,736,000	1,688,000
Other income and capital gains	14,000	14,000	30,000	32,000
Interest expenses on note payable collateralized by real estate and margin loans	(94,000)	(55,000)	(162,000)	(112,000)
Interest expense accrued for uncertain and unrecognized tax benefits	(25,000)	(24,000)	(49,000)	(44,000)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	152,000	(171,000)	17,000	237,000
Income tax (expense) benefit	55,000	675,000	240,000	700,000
Net income (loss)	207,000	504,000	257,000	937,000
Total assets	221,962,000	234,595,000	221,962,000	234,595,000	$ 228,196,000
Payments to Acquire Property, Plant, and Equipment	87,000	317,000	3,628,000	386,000
Amortization of Intangible Assets	$ 1,259,000	$ 1,224,000	$ 2,518,000	$ 2,448,000