10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No.1)

(Mark One)

☑          QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

          For the quarterly period ended June 30, 2013

or

☐        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

          For the transition period from _______________ to _____________________

Commission File Number 0-14665

DAILY JOURNAL CORPORATION

(Exact name of registrant as specified in its charter)

 

South Carolina	95-4133299
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
915 East First Street
Los Angeles, California	90012-4050
(Address of principal executive offices)	(Zip code)

(213) 229-5300

(Registrant's telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes: X                     No:

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes:      X                  No:

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer:	Accelerated Filer:
Non-accelerated Filer:	Smaller Reporting Company: X

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes: No: X

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date.

Class	Outstanding at July 31, 2013
Common Stock, par value $ .01 per share	1,380,746 shares

Page 1 of 18

Explanatory Note

This Form 10-Q/A for the fiscal quarter ended June 30, 2013 is being filed by Daily Journal Corporation (the “Company”) solely to correct an error in the allocation of the Company’s net income (loss) between its traditional business and that of its Sustain Technologies, Inc. (“Sustain”) and New Dawn Technologies, Inc. (“New Dawn”) subsidiaries. Specifically, the net income of the traditional business segment was $5,369,000 in the nine months ended June 30, 2013 and $1,861,000 in the three months ended June 30, 2013, and the net loss of the Sustain and New Dawn segment was $2,558,000 in the nine month period and $1,035,000 in the three month period. The correction affects only Note 12 – Operating Segments, appearing on page 11 of the 10-Q/A, and the “reportable segments” chart, appearing on page 14 of the 10-Q/A.

This amendment does not reflect events occurring after the original filing of the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2013, or modify or update the disclosures in the original Form 10-Q in any way, other than to reflect the correction described above.

DAILY JOURNAL CORPORATION

INDEX

 

			Page Nos.
PART I  Financial Information
	Item 1. Financial Statements
		Consolidated Balance Sheets - June 30, 2013 and September 30, 2012	3
		Consolidated Statements of Comprehensive Income (Loss) - Three months ended June 30, 2013 and 2012	4
		Consolidated Statements of Comprehensive Income - Nine months ended June 30, 2013 and 2012	5
		Consolidated Statements of Cash Flows - Nine months ended June 30, 2013 and 2012	6
	Notes to Consolidated Financial Statements		7
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		13
	Item 4. Controls and Procedures		17
Part II  Other Information
	Item 6. Exhibits		19

Page 2 of 18

PART I
Item 1. FINANCIAL STATEMENTS
DAILY JOURNAL CORPORATION
CONSOLIDATED BALANCE SHEETS

	June 30 2013			September 30 2012
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	6,283,000		$	985,000
U.S. Treasury Bills		---			800,000
Marketable securities, including common stocks of $121,104,000 and bonds of $7,317,000 at June 30, 2013 and common stocks of $94,061,000 and bonds of $8,095,000 at September 30, 2012		128,421,000			102,156,000
Accounts receivable, less allowance for doubtful accounts of $250,000 and$200,000 at June 30, 2013 and September 30, 2012, respectively		4,813,000			5,709,000
Inventories		47,000			43,000
Prepaid expenses and other assets		545,000			241,000
Income tax receivable		952,000			196,000
Total current assets		141,061,000			110,130,000
Property, plant and equipment, at cost
Land, buildings and improvements		12,846,000			12,819,000
Furniture, office equipment and computer software		2,692,000			2,263,000
Machinery and equipment		2,014,000			2,072,000
		17,552,000			17,154,000
Less accumulated depreciation		(8,341,000	)		(7,911,000	)
		9,211,000			9,243,000
Other assets
Intangibles (net)		8,411,000			---
Goodwill		14,000,000			---
Deferred income taxes		1,068,000			1,591,000
		23,479,000			1,591,000
	$	173,751,000		$	120,964,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,665,000		$	2,201,000
Accrued liabilities		4,217,000			2,738,000
Deferred subscriptions		3,239,000			3,649,000
Deferred installation contracts		7,915,000			---
Deferred maintenance agreements and others		4,099,000			1,805,000
Deferred income taxes		29,728,000			19,146,000
Total current liabilities		50,863,000			29,539,000
Long term liabilities
Investment margin account borrowing		14,000,000			---
Accrued liabilities		3,050,000			4,200,000
Total long term liabilities		17,050,000			4,200,000
Commitments and contingencies (Notes 10 and 11)		---			---
Shareholders' equity
Preferred stock, $.01 par value, 5,000,000 shares authorized and no shares issued		---			---
Common stock, $.01 par value, 5,000,000 shares authorized; 1,380,746 at June 30, 2013 and September 30, 2012, outstanding		14,000			14,000
Additional paid-in capital		1,755,000			1,755,000
Retained earnings		56,702,000			53,891,000
Accumulated other comprehensive income		47,367,000			31,565,000
Total shareholders' equity		105,838,000			87,225,000
	$	173,751,000		$	120,964,000

See accompanying Notes to Consolidated Financial Statements

Page 3 of 18

DAILY JOURNAL CORPORATION 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three months ended June 30
	2013			2012
Revenues
Advertising	$	3,617,000		$	4,897,000
Circulation		1,574,000			1,630,000
Advertising service fees and other		685,000			769,000
Information systems and services		3,328,000			835,000
		9,204,000			8,131,000
Costs and expenses
Salaries and employee benefits		5,023,000			3,466,000
Other outside services		914,000			755,000
Postage and delivery expenses		346,000			360,000
Newsprint and printing expenses		379,000			360,000
Depreciation and amortization		635,000			126,000
Other general and administrative expenses		1,446,000			830,000
		8,743,000			5,897,000
Income from operations		461,000			2,234,000
Other income (expense)
Dividends and interest income		726,000			608,000
Interest expense		(27,000	)		(4,000	)
Gain on sale of capital assets		1,000			---
Other-than-temporary impairment losses on investments	---				(2,855,000	)
Income before taxes		1,161,000			(17,000	)
Provision for (benefit of) income taxes		335,000			(225,000	)
Net income	$	826,000		$	208,000
Weighted average number of common shares outstanding - basic and diluted		1,380,746			1,380,746
Basic and diluted net income per share	$	.60		$	.15
Comprehensive income (loss)
Net income	$	826,000		$	208,000
Net change in unrealized appreciation (depreciation) of investments (net of taxes)		4,887,000			(3,410,000	)
Other-than-temporary impairment losses recognized in net income (net of taxes)		---			1,720,000
Comprehensive income (loss)	$	5,713,000		$	(1,482,000	)

See accompanying Notes to Consolidated Financial Statements.

Page 4 of 18

DAILY JOURNAL CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Nine months ended June 30
	2013			2012
Revenues
Advertising	$	11,299,000		$	14,605,000
Circulation		4,792,000			4,931,000
Advertising service fees and other		2,224,000			2,288,000
Information systems and services		8,335,000			2,293,000
		26,650,000			24,117,000
Costs and expenses
Salaries and employee benefits		14,169,000			10,316,000
Other outside services		2,604,000			2,218,000
Postage and delivery expenses		1,006,000			1,040,000
Newsprint and printing expenses		1,000,000			1,023,000
Depreciation and amortization		1,544,000			371,000
Other general and administrative expenses		4,008,000			2,471,000
		24,331,000			17,439,000
Income from operations		2,319,000			6,678,000
Other income (expense)
Dividends and interest income		1,832,000			1,451,000
Interest expense reversal (expense)		(66,000	)		62,000
Gain on sale of capital assets		1,000			7,000
Other-than-temporary impairment losses on investments	---				(2,855,000	)
Income before taxes		4,086,000			5,343,000
Provision for income taxes		1,275,000			1,385,000
Net income	$	2,811,000		$	3,958,000
Weighted average number of common shares outstanding - basic and diluted		1,380,746			1,380,746
Basic and diluted net income per share	$	2.04		$	2.87
Comprehensive income
Net income	$	2,811,000		$	3,958,000
Net change in unrealized appreciation of investments (net of taxes)		15,802,000			13,430,000
Other-than-temporary impairment losses recognized in net income (net of taxes)	---				1,720,000
Comprehensive income	$	18,613,000		$	19,108,000

See accompanying Notes to Consolidated Financial Statements.

Page 5 of 18

DAILY JOURNAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended June 30
	2013			2012
Cash flows from operating activities
Net income	$	2,811,000		$	3,958,000
Adjustments to reconcile net income to net cash provided by operations
Depreciation and amortization		1,544,000			371,000
Deferred income taxes		644,000			(851,000	)
Net premium amortized and discount earned on bonds and U.S. Treasury Bills		(2,000	)		(3,000	)
Other-than-temporary impairment losses on investments ($1,720,000 net of taxes)		---			2,855,000
Changes in assets and liabilities
Decrease (increase) in current assets (net of acquisition)
Accounts receivable, net		1,556,000			1,236,000
Inventories		(7,000	)		6,000
Prepaid expenses and other assets		(184,000	)		(12,000	)
Increase (decrease) in current liabilities (net of acquisition)
Accounts payable		(753,000	)		(347,000	)
Accrued liabilities		(2,347,000	)		(913,000	)
Income taxes		(756,000	)		(178,000	)
Deferred subscriptions		(410,000	)		53,000
Deferred maintenance agreements and others		95,000			207,000
Deferred installation contracts		443,000			---
Net cash provided by operating activities		2,634,000			6,382,000
Cash flows from investing activities
Maturities and sales of U.S. Treasury Bills		800,000			14,600,000
Purchases of U.S. Treasury Bills		---			(4,299,000	)
Acquisition of New Dawn Technologies, Inc. (net of cash acquired)		(11,878,000	)		---
Purchases of marketable securities		---			(16,390,000	)
Purchases of property, plant and equipment		(258,000	)		(352,000	)
Net cash used in investing activities		(11,336,000	)		(6,441,000	)
Cash flows from financing activities
Investment margin account borrowing		14,000,000			---
Cash provided by financing activities		14,000,000			---
Increase (decrease) in cash and cash equivalents		5,298,000			(59,000	)
Cash and cash equivalents
Beginning of period		985,000			3,058,000
End of period	$	6,283,000		$	2,999,000

See accompanying Notes to Consolidated Financial Statements.

Page 6 of 18

DAILY JOURNAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 - The Corporation and Operations

     The Daily Journal Corporation (the “Company”) publishes newspapers and web sites covering California and Arizona, as well as the California Lawyer magazine, and produces several specialized information services. It also serves as a newspaper representative specializing in public notice advertising. Sustain Technologies, Inc. (“Sustain”), a wholly-owned subsidiary, supplies case management software systems and related products to courts and other justice agencies, including administrative law organizations. These courts and agencies use the Sustain family of products to help manage cases and information electronically and to interface with other critical justice partners. Sustain’s products are designed to help users manage electronic case files from inception to disposition, including calendaring and accounting, report and notice generation, the implementation of standards and business rules and other corollary functions, and to enable justice agencies to extend electronic services to the public and bar members.

     In December 2012, the Company purchased all of the outstanding stock of New Dawn Technologies, Inc. (“New Dawn”) based in Logan, Utah, which provides products and services similar to those of Sustain to more than 350 justice agencies in 39 states, three U.S. territories and two other countries. The acquisition expands the Company’s position in the case management software marketplace. Essentially all of the Company’s operations are based in California, Arizona and Utah.

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 statement of its financial position as of June 30, 2013, and of its results of operations and cash flows for the three- and nine- month periods ended June 30, 2013 and 2012. The results of operations for the nine months ended June 30, 2013 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, 2012.

     Certain reclassifications of previously reported amounts have been made to conform to the current year’s presentation.

Note 3 -New Accounting Pronouncements

     In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, requiring entities to disclose additional information with respect to changes in accumulated other comprehensive income (AOCI) balances by component and significant items reclassified out of AOCI. This ASU will be effective beginning October 1, 2013 for the Company, and the adoption will have no impact on the Company’s consolidated results of operations or financial positions because it only represents a change to the presentation and the disclosure requirements.

Page 7 of 18

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 – Acquisition of New Dawn Technologies, Inc.

On December 4, 2012 the Company purchased all of the outstanding stock of New Dawn for $14 million in cash.  The New Dawn acquisition was accounted for using the purchase method of accounting in accordance with the Statement of FASB’s ASC 805 Business Combinations. The Company incurred legal and tax fees of about $93,000 associated with this acquisition. These costs were included in “Other general and administrative expenses” on the Company’s Consolidated Statements of Comprehensive Income. New Dawn’s results of operations from December 5, 2012 through June 30, 2013 have been included in the Company’s Consolidated Financial Statements: revenues were $6,430,000, expenses were $7,148,000 (including intangible amortization expenses of $1,111,000), and the pretax loss was $718,000.

   The Company preliminarily allocated the purchase price to the tangible assets ($3.1 million including cash of $2.2 million; accounts receivable, net, of $.66 million, and net fixed assets of $.14 million) and identifiable intangible assets (purchased software and customer relationships of $9.5 million) and liabilities ($12.6 million including accounts payable and accrued expenses of $2.8 million, deferred maintenance agreements of $2.2 million and deferred installation contracts of $7.5 million) based on their fair values with the remaining balance in excess of the net assets allocated to goodwill ($14 million).  Deferred revenues on installation contracts primarily represent advances from customers for software licenses and installation services in various stages of completion; after customer’s acceptance of the completed project, the advances would become no longer at risk of refund and earned.

Note 6 - Intangible Assets

     At June 30, 2013, New Dawn’s purchased software and customer relationships costs of $8,411,000 (net of the accumulated amortization expenses of $1,111,000) are being amortized over five years based on their estimated useful lives.    

      The Company accounts for goodwill in accordance with ASC 350 Intangibles — Goodwill and Other. Goodwill is not amortized for financial statement purposes but evaluated for impairment annually as of September 30th, or whenever events or changes in circumstances indicate that the value may not be recoverable.

Note 7 - Revenue Recognition

     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.

     The Company recognizes revenues from both the lease and sale of software products in accordance with ASC 985-605 Software Revenue Recognition. Revenues from leases of software products are recognized over the life of the lease while revenues from software product sales are recognized normally upon delivery, installation or acceptance pursuant to a signed agreement. Revenues from annual maintenance contracts generally call for the Company to provide software updates and upgrades to customers and are recognized ratably over the maintenance period. Consulting and other services are recognized upon acceptance by the customers.

Page 8 of 18

Note 8 - Income Taxes

On a pretax profit of $4,086,000 and $5,343,000 for the nine months ended June 30, 2013 and 2012, respectively, the Company recorded a tax provision of $1,275,000 and $1,385,000 respectively, which was lower in each case than the amount computed using the statutory rate because of the available dividends received deduction and the domestic production activity deduction.  Consequently, the Company’s effective tax rate was 31% and 26% for the nine months ended June 30, 2013 and 2012, respectively. The acquisition of New Dawn was structured as a stock acquisition with an Internal Revenue Code Section 338 (h)(10) election, which results in the acquisition being treated similarly to an acquisition of assets for income tax purposes. As such, the amounts allocated to purchased software and customer relationships as well as goodwill are amortized over a 15-year period on a straight-line basis for tax purposes. Differences in the amortization period and methods between book and tax useful lives will result in deferred tax assets or liabilities.The Company files federal income tax returns in the United States and with various state jurisdictions and is no longer subject to examinations for years before 2010 with regard to federal income taxes.

Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities

     Investments in U.S. Treasury Bills and marketable securities categorized as “available-for-sale” are stated at fair value, with the unrealized gains and losses, net of taxes, reported in “Accumulated other comprehensive income”. As of June 30, 2013 and September 30, 2012, an unrealized gain of $78,727,000 (consisting of gross unrealized gains of $80,999,000 and gross unrealized losses of $2,272,000) and $52,464,000 (consisting of gross unrealized gains of $54,653,000 and gross unrealized losses of $2,189,000), respectively, net of taxes, was recorded in “Accumulated other comprehensive income” in the accompanying Consolidated Balance Sheets. 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 June 30, 2013 and September 30, 2012 are summarized by type below.

	June 30, 2013						September 30, 2012
	(Unaudited)
	Aggregate fair value		Amortized/Adjusted cost basis		Pretax unrealized gains		Aggregate fair value		Amortized/Adjusted cost basis		Pretax unrealized gains
U.S. Treasury Bills	$	---	$	---	$	---	$	800,000	$	800,000	$	---
Marketable securities
Common stocks		121,104,000		44,761,000		76,343,000		94,061,000		44,761,000		49,300,000
Bonds		7,317,000		4,933,000		2,384,000		8,095,000		4,931,000		3,164,000
Total	$	128,421,000	$	49,694,000	$	78,727,000	$	102,956,000	$	50,492,000	$	52,464,000

     At June 30, 2013, all investments are classified as “Current assets” because they are available for sale at any time. The bonds mature in 2039.  

     As of June 30, 2013, the Company performed separate evaluations for impaired equity securities to determine if the unrealized losses were 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 securities until fair value recovers. The assessment of the ability and intent to hold these securities to recovery focuses on liquidity needs, asset/liability management objectives and securities portfolio objectives. Based on the results of the evaluations, the Company concluded that as of June 30, 2013, all unrealized losses related to equity securities were temporary.

Page 9 of 18

Note 10 - Debt and Commitments

     On December 4, 2012, the Company borrowed the purchase price of $14 million for the New Dawn acquisition and pledged its marketable securities as collateral. The interest rate for this investment margin account borrowing will fluctuate based on the Federal Funds Rate plus 50 basis points with interest only payable monthly. This investment margin account borrowing does not mature.

     The Company owns its facilities in Los Angeles and leases space for its other offices under operating leases which expire at various dates through 2015. New Dawn’s Logan, Utah office lease requires a monthly rent of $41,500, with short-term sub-leases of approximately $5,000 per month, and will expire in 2015, subject to certain extension options. The Company is responsible for a portion of maintenance, insurance and property tax expenses relating to certain leased property. Rental expenses for comparable nine-month periods ended June 30, 2013 and 2012 were $600,000 and $349,000, respectively.

Note 11 - Contingencies

    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.

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Note 12 - Operating Segments

     The Company has two segments of business. The Company’s reportable segments are (i) the traditional business and (ii) Sustain and New Dawn. Summarized financial information for the Company’s reportable segments is shown in the following table:

	Reportable segments
	Traditional business			Sustain and New Dawn*			Total
Nine months ended June 30, 2013
Revenues	$	18,315,000		$	8,335,000		$	26,650,000
Pretax income (loss)		7,869,000			(3,783,000	)		4,086,000
Income tax (expense) benefit		(2,500,000	)		1,225,000			(1,275,000	)
Net income (loss)		5,369,000			(2,558,000	)		2,811,000
Total assets		146,902,000			26,849,000			173,751,000
Capital expenditures		96,000			162,000			258,000
Depreciation and amortization		340,000			1,204,000			1,544,000

	Traditional business			Sustain			Total
Nine months ended June 30, 2012
Revenues	$	21,824,000		$	2,293,000		$	24,117,000
Income (loss) from operations		8,133,000			(1,455,000	)		6,678,000
Other-than-temporary impairment losses on investments		2,855,000			---			2,855,000
Pretax income (loss)		6,791,000			(1,448,000	)		5,343,000
Income tax (expense) benefit		(2,135,000	)		750,000			(1,385,000	)
Net income (loss)		4,656,000			(698,000	)		3,958,000
Total assets		116,344,000			1,312,000			117,656,000
Capital expenditures		312,000			40,000			352,000
Depreciation and amortization		349,000			22,000			371,000

	Traditional business			Sustain and New Dawn**			Total
Three months ended June 30, 2013
Revenues	$	5,876,000		$	3,328,000		$	9,204,000
Pretax income (loss)		2,701,000			(1,540,000	)		1,161,000
Income tax (expense) benefit		(840,000	)		505,000			(335,000	)
Net income (loss)		1,861,000			(1,035,000	)		826,000
Total assets		146,902,000			26,849,000			173,751,000
Capital expenditures		5,000			97,000			102,000
Depreciation and amortization		109,000			526,000			635,000

	Traditional business		Sustain			Total
Three months ended June 30, 2012
Revenues	$	7,296,000	$	835,000		$	8,131,000
Income (loss) from operations		2,709,000		(475,000	)		2,234,000
Other-than-temporary impairment losses on investments		2,855,000		---			2,855,000
Pretax income (loss)		458,000		(475,000	)		(17,000	)
Income tax benefit		100,000		125,000			225,000
Net income (loss)		558,000		(350,000	)		208,000
Total assets		116,344,000		1,312,000			117,656,000
Capital expenditures		21,000		31,000			52,000
Depreciation and amortization		118,000		8,000			126,000

*	Includes New Dawn’s financial results from December 5, 2012 through June 30, 2013 with revenues of $6,430,000, expenses of $7,148,000 (including intangible amortization expenses of $1,111,000), and inter-company income tax benefits of $230,000.
**	Includes New Dawn’s financial results from April 1, 2013 through June 30, 2013 with revenues of $2,740,000, expenses of $3,102,000 (including intangible amortization expenses of $476,000), and income tax expenses of $115,000.

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Note 13 - 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.

Page 12 of 18

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company continues to operate as two different businesses: (1) The “traditional business”, being the business of newspaper and magazine publishing and related services that the Company had before 1999 when it purchased Sustain, and (2) the Sustain and New Dawn software businesses, which supply case management software systems and related products to courts and other justice agencies, including administrative law organizations.

      On December 4, 2012 the Company purchased all of the outstanding stock of New Dawn for $14 million in cash.  New Dawn provides products and services to more than 350 justice agencies in 39 states, three U.S. territories and two other countries.  The acquisition expands the Company’s position in the case management software marketplace.  The results of operations of New Dawn from December 5, 2012 through June 30, 2013 have been included in the Company’s Consolidated Financial Statements: revenues were $6,430,000; expenses were $7,148,000 (including intangible amortization expenses of $1,111,000), and its pretax loss was $718,000. The acquisition was accounted for using the purchase method of accounting; accordingly, the Company preliminarily allocated the purchase price to tangible assets ($3.1 million including cash of $2.2 million; accounts receivable, net, of $.66 million, and net fixed assets of $.14 million) and identifiable intangible assets (purchased software and customer relationships of $9.5 million) and liabilities ($12.6 million including accounts payable and accrued expenses of $2.8 million, deferred maintenance agreements of $2.2 million and deferred installation contracts of $7.5 million) based on their fair values with the remaining balance in excess of the net assets allocated to goodwill ($14 million). The purchased software and customer relationships costs are being amortized over five years. Goodwill is not amortized for financial statement purposes but evaluated for impairment annually, or whenever events or changes in circumstances indicate that the value may not be recoverable. Deferred revenues on installation contracts primarily represent advances from customers for software licenses and installation services in various stages of completion; after customer’s acceptance of the completed project, the advances would become no longer at risk of refund and earned.

      The Company’s traditional business segment pretax income increased by $1,078,000 (16%) to $7,869,000 in the nine months ended June 30, 2013 from $6,791,000 in the prior year period when the Company incurred impairment losses on investments of $2,855,000. This year there was a reduction in trustee sale notice and related service fee revenues of $3,055,000, partially offset by a reduction in operating costs and expenses of $144,000 and an increase in dividends and interest income of $381,000. Sustain’s and New Dawn’s business segment had a pretax loss of $3,783,000 compared to $1,455,000 in the prior year period primarily due to (i) the addition of New Dawn’s pretax loss of $718,000 and (ii) an increase in Sustain’s implementation and development personnel costs of $1,191,000 during the nine months ended June 30, 2013.

During the nine months ended June 30, 2013, consolidated pretax income decreased by $1,257,000 (24%) to $4,086,000 from $5,343,000 in the comparable prior year period.

   Comprehensive income includes net income and unrealized net gains on investments, net of taxes.

Comprehensive Income
	Nine months ended June 30
	2013		2012
Net income	$	2,811,000	$	3,958,000
Net change in unrealized appreciation of investments (net of taxes)		15,802,000		13,430,000
Other-than-temporary impairment losses recognized in net income (net of taxes)	---			1,720,000
Comprehensive income	$	18,613,000	$	19,108,000

* * * * * * * * * * * *

Page 13 of 18

	Reportable segments
	Traditional business			Sustain and New Dawn*			Total
Nine months ended June 30, 2013
Revenues	$	18,315,000		$	8,335,000		$	26,650,000
Pretax income (loss)		7,869,000			(3,783,000	)		4,086,000
Income tax benefit (expense)		(2,500,000	)		1,225,000			(1,275,000	)
Net income (loss)		5,369,000			(2,558,000	)		2,811,000
Amortization of intangible assets*		---			1,111,000			1,111,000

	Traditional business			Sustain			Total
Nine months ended June 30, 2012
Revenues	$	21,824,000		$	2,293,000		$	24,117,000
Income (loss) from operations		8,133,000			(1,455,000	)		6,678,000
Other-than-temporary impairment losses on investments		2,855,000			---			2,855,000
Pretax income (loss)		6,791,000			(1,448,000	)		5,343,000
Income tax (expense) benefit		(2,135,000	)		750,000			(1,385,000	)
Net income (loss)		4,656,000			(698,000	)		3,958,000

 * Includes New Dawn’s financial results from December 5, 2012 through June 30, 2013 with revenues of $6,430,000, expenses of $7,148,000 (including intangible amortization expenses of $1,111,000), and inter-company income tax benefits of $230,000.

Consolidated revenues were $26,650,000 and $24,117,000 for the nine months ended June 30, 2013 and 2012, respectively. This increase of $2,533,000 (11%) was primarily from the additional New Dawn revenues of $6,430,000, partially offset by the reduction in trustee sale notice and related service fee revenues of $3,055,000. The Company’s revenues derived from Sustain’s and New Dawn’s operations constituted about 31% (Sustain and New Dawn) and 10% (Sustain only) of the Company’s total revenues for the nine months ended June 30, 2013 and 2012, respectively. (Consolidated revenues were $9,204,000 and $8,131,000 for the three months ended June 30, 2013 and 2012, respectively.)

      Consolidated operating costs and expenses increased by $6,892,000 (40%) to $24,331,000 from $17,439,000, primarily for New Dawn and Sustain. Total personnel costs increased by $3,853,000 (37%) to $14,169,000 from $10,316,000 primarily due to New Dawn’s additional personnel costs of $4,551,000, Sustain’s implementation and development personnel cost increases of $1,191,000 and annual salary adjustments, partially offset by a $730,000 decrease in the expenses related to the Company’s Management Incentive Plan (“Incentive Plan”). The decrease in Incentive Plan expense consisted of a reduction of $1,400,000 in the Incentive Plan accrual during the nine months ended June 30, 2013 due to reduced estimated current and future consolidated pretax profits before this accrual versus a reduction of $670,000 in the prior comparable period. Depreciation and amortization costs increased by $1,173,000 (316%) to $1,544,000 mainly resulting from the amortization of New Dawn’s purchased software and customer relationships costs of $1,111,000. Other general and administrative expenses also increased by $1,537,000 (62%) primarily resulting from increased professional fees and additional rent, sales and marketing expenses for New Dawn. (Consolidated operating costs and expenses were $8,743,000 and $5,897,000 for the three months ended June 30, 2013 and 2012, respectively.)

Page 14 of 18

     The traditional business segment revenues are very much dependant on the number of California and Arizona foreclosure notices. The number of foreclosure notices published by the Company decreased by 49% during the nine months ended June 30, 2013 as compared to the prior comparable period. Although public notice advertising revenues were down compared to the prior year period, the Company still continued to benefit from a relatively large number of foreclosures in California and Arizona for which public notice advertising is required by law. Effective January 1, 2013, the California Homeowner’s Bill of Rights imposed new requirements that have contributed to the slowdown in the foreclosure process. Because this slowing is expected to continue, we anticipate there will be fewer foreclosure notice advertisements and declining revenues in fiscal 2013, and the Company’s print-based earnings will also grossly decline because it will be impractical for the Company to offset all revenue loss by expense reduction. The Company's smaller newspapers, those other than the Los Angeles and San Francisco Daily Journals ("The Daily Journals"), accounted for about 95% of the total public notice advertising revenues in the nine-month period. Public notice advertising revenues and related advertising and other service fees constituted about 39% of the Company's total revenues during this period. Because of this concentration, the Company’s revenues would be significantly affected if California (and to a lesser extent Arizona) eliminated the legal requirement to publish public notices in adjudicated newspapers of general circulation, as has been proposed from time to time. Also, if the adjudication of one or more of the Company’s newspapers was challenged and revoked, those newspapers would no longer be eligible to publish public notice advertising, and it could have a material adverse effect on the Company’s revenues. We do not expect to experience an offsetting increase in commercial advertising as a result of this trend because of the continuing challenges in the commercial advertising business. Advertising service fees and other are traditional business segment revenues, which include primarily (i) agency commissions received from outside newspapers in which the advertising is placed and (ii) fees generated when filing notices with government agencies. The Daily Journals accounted for about 85% of the Company's total circulation revenues. The court rule and judicial profile services generated about 13% of the total circulation revenues, with the other newspapers and services accounting for the balance.

     Sustain’s and New Dawn’s consulting, licensing and maintenance revenues are subject to uncertainty because they depend on (i) the timing of the acceptance of the completed installations, (ii) the unpredictable needs of their existing customers, and (iii) their ability to secure new customers. In most cases, revenues from their new installation projects will only be recognized, if at all, upon completion and acceptance of their services by the various customers. The Company’s expenses for the development of software products are significant and will materially impact overall results at least through the foreseeable future. These costs are expensed as incurred due to the uncertainties concerning recoverability.

     On a pretax profit of $4,086,000 and $5,343,000 for the nine months ended June 30, 2013 and 2012, respectively, the Company recorded a tax provision of $1,275,000 and $1,385,000 respectively, which was lower in each case than the amount computed using the statutory rate because of the available dividends received deduction and the domestic production activity deduction. Consequently, the Company’s effective tax rate was 31% and 26% for the nine months ended June 30, 2013 and 2012, respectively. The acquisition of New Dawn was structured as a stock acquisition with an Internal Revenue Code Section 338 (h)(10) election, which  results in the acquisition being treated similarly to an acquisition of assets for income tax purposes. As such, the amounts allocated to purchased software and customer relationships as well as goodwill are amortized over a 15-year period on a straight line basis for tax purposes. Differences in the amortization period and methods between book and tax useful lives will result in deferred tax assets or liabilities.The Company files federal income tax returns in the United States and with various state jurisdictions and is no longer subject to examinations for years before 2010 with regard to federal income taxes. Net income per share decreased to $2.04 from $2.87.

Liquidity and Capital Resources

     During the nine months ended June 30, 2013, the Company's cash and cash equivalents, and marketable security positions increased by $30,763,000. Cash and cash equivalents were used primarily for the purchase of capital assets of $258,000 (mostly computer software and office equipment). During the first quarter of fiscal 2013, the Company borrowed $14 million from its investment margin account to purchase all of the outstanding stock of New Dawn and pledged its marketable securities to obtain favorable financing. During the first quarter of fiscal 2012, the Company bought shares of common stock of a Fortune 200 company, and during the third quarter of fiscal 2012, it bought additional shares of common stock of one of the foreign manufacturing companies in which it had previously invested. There have been no additional purchases in fiscal 2013. The investments in marketable securities, which cost approximately $49,694,000 and had a market value of about $128,421,000 at June 30, 2013, generated approximately $1,832,000 in dividends and interest income, which lowers the effective income tax rate because of the dividends received deduction. As of June 30, 2013, there were unrealized pretax gains of $78,727,000 as compared to $52,464,000 at September 30, 2012. Most of the unrealized gains were in the common stocks.

Page 15 of 18

     The cash provided by operating activities of $2,634,000 included net increases in deferred maintenance agreements and installation contracts of $538,000, partially offset by a net decreases in deferred subscriptions of $410,000. Proceeds from the sale of subscriptions from newspapers, court rule books and other publications and for software licenses and maintenance and other services are recorded as deferred revenue and are included in earned revenue only when the services are rendered and accepted. Cash flows from operating activities decreased by $3,748,000 during the nine months ended June 30, 2013 as compared to the prior comparable period primarily resulting from the decreases in accounts payable and accrued liabilities of $1,840,000, deferred subscriptions of $463,000 and net income of $1,147,000.

     As of June 30, 2013, the Company had working capital of $90,198,000, including the liabilities for deferred subscriptions and deferred maintenance agreements of $7,338,000, which are scheduled to be earned within one year, and the deferred tax liability of $31,360,000 for the unrealized gains described above.

     Company believes that it will be able to fund its operations for the foreseeable future through its cash flows from operating activities and its current working capital and expects that any such cash flows will be invested in its businesses. The Company continues to have the ability to borrow against its marketable securities on favorable terms as it did for the New Dawn acquisition. The Company also may entertain business acquisition opportunities, as it did in acquiring New Dawn. Any excess cash flows could be used to reduce the investment margin account liability or invested as management and the Board of Directors deem appropriate at the time.

     Such investments may include additional securities of the companies in which the Company has already invested, securities of other companies, government securities (including U.S. Treasury Notes and Bills) or other instruments. The decision as to particular investments will be driven by the Company’s belief about the risk/reward profile of the various investment choices at the time, and it may utilize government securities as a default if attractive opportunities for a better return are not available. The Company’s Chairman of the Board, Charles Munger, is also the vice chairman of Berkshire Hathaway Inc., which maintains a substantial investment portfolio. The Company’s Board of Directors has utilized his judgment and suggestions, as well as those of J.P. Guerin, the Company’s vice chairman, when selecting investments, and both of them will continue to play an important role in monitoring existing investments and selecting any future investments.

     As noted above, however, the investments are concentrated in just six companies. Accordingly, a significant decline in the market value of one or more of the Company’s investments may not be offset by the hypothetically better performance of other investments, and that could result in a large decrease in the Company’s shareholders’ equity and, under certain circumstances, in the recognition of impairment losses in the Company’s income statement.

Critical Accounting Policies

     The Company’s financial statements and accompanying notes are prepared in accordance with U.S. generally accepted accounting principles. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates and assumptions are affected by management’s application of accounting policies. Management believes that revenue recognition, accounting for capitalized software costs and income taxes are critical accounting policies.

Page 16 of 18

 The Company’s critical accounting policies are detailed in its Annual Report on Form 10-K for the year ended September 30, 2012. The above discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and the notes thereto included in this report.

Disclosure Regarding Forward-Looking Statements

      This Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this document, including but not limited to those in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, are “forward-looking” statements that involve risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Words such as “expects,” “intends,” “anticipates,” “should,” “believes,” “will,” “plans,” “estimates,” “may,” variations of such words and similar expressions are intended to identify such forward-looking statements. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise. There are many factors that could cause actual results to differ materially from those contained in the forward-looking statements. These factors include, among others: risks associated with Sustain’s internal software development efforts; Sustain’s and New Dawn’s reliance on professional services engagements with justice agencies, including California courts, for a substantial portion of their revenues; material changes in the costs of postage and paper; possible changes in the law, particularly changes limiting or eliminating the requirements for public notice advertising; possible loss of the adjudicated status of the Company’s newspapers and their legal authority to publish public notice advertising; a decline in public notice advertising revenues because of fewer foreclosures; a further decline in subscriber and commercial advertising revenues; collectibility of accounts receivable; the Company’s reliance on its president and chief executive officer; changes in accounting guidance; and declines in the market prices of the Company’s investments. In addition, such statements could be affected by general industry and market conditions, general economic conditions (particularly in California) and other factors. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements are disclosed in this Form 10-Q, including in conjunction with the forward-looking statements themselves. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in documents filed by the Company with the Securities and Exchange Commission, including in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012.

Item 4. CONTROLS AND PROCEDURES

     An evaluation was performed under the supervision and with the participation of the Company’s management, including Gerald L. Salzman, its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of June 30, 2013. Based on that evaluation, Mr. Salzman concluded that the Company’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Company in reports it files or submits under the Securities Exchange Act of 1934, as amended, is (1) recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities Exchange Commission and (2) accumulated and communicated to the Company’s management, including Mr. Salzman, in such a way as to allow timely decisions regarding required disclosure. There have been no material changes in the Company’s internal control over financial reporting or in other factors reasonably likely to affect its internal control over financial reporting during the quarter ended June 30, 2013.

Page 17 of 18

PART II

Item 6. EXHIBITS

31	Certification by Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification by Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance
101.SCH**	XBRL Taxonomy Extension Schema
101.CAL**	XBRL Taxonomy Extension Calculation
101.DEF**	XBRL Taxonomy Extension Definition
101.LAB**	XBRL Taxonomy Extension Labels
101.PRE**	XBRL Taxonomy Extension Presentation
** XBRL	information is furnished and not filed as a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

DAILY JOURNAL CORPORATION

(Registrant)

/s/ Gerald L. Salzman

Gerald L. Salzman

Chief Executive Officer

President

Chief Financial Officer

Treasurer

(Principal Executive Officer,

Principal Financial Officer and

Principal Accounting Officer) 

DATE: August 20, 2013

 Page 18 of 18

EX-31

Exhibit 31

CERTIFICATIONS BY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gerald L. Salzman, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A of the Daily Journal Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 20, 2013

   /s/ Gerald L. Salzman

______________________________

Gerald L. Salzman

Chief Executive Officer, President,

Chief Financial Officer and Treasurer

EX-32

Exhibit 32

CERTIFICATION BY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 

     In connection with the Quarterly Report on Form 10-Q/A of Daily Journal Corporation (the "Company") for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Gerald L. Salzman, President, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

   /s/ Gerald L. Salzman  

____________________________________________

Gerald L. Salzman
Chief Executive Officer, President,
Chief Financial Officer and Treasurer

August 20, 2013

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, and is not being filed as part of the Report or as a separate disclosure document.

XML

Note 11 - Contingencies

9 Months Ended

Jun. 30, 2013

Loss Contingency [Abstract]

Contingencies Disclosure [Text Block]

Note 11 - Contingencies

    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.

XML

Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenues
Advertising	$ 3,617,000	$ 4,897,000	$ 11,299,000	$ 14,605,000
Circulation	1,574,000	1,630,000	4,792,000	4,931,000
Advertising service fees and other	685,000	769,000	2,224,000	2,288,000
Information systems and services	3,328,000	835,000	8,335,000	2,293,000
	9,204,000	8,131,000	26,650,000	24,117,000
Costs and expenses
Salaries and employee benefits	5,023,000	3,466,000	14,169,000	10,316,000
Other outside services	914,000	755,000	2,604,000	2,218,000
Postage and delivery expenses	346,000	360,000	1,006,000	1,040,000
Newsprint and printing expenses	379,000	360,000	1,000,000	1,023,000
Depreciation and amortization	635,000	126,000	1,544,000	371,000
Other general and administrative expenses	1,446,000	830,000	4,008,000	2,471,000
	8,743,000	5,897,000	24,331,000	17,439,000
Income from operations	461,000	2,234,000	2,319,000	6,678,000
Other income (expense)
Dividends and interest income	726,000	608,000	1,832,000	1,451,000
Interest expense	(27,000)	(4,000)	(66,000)	62,000
Gain on sale of capital assets	1,000		1,000	7,000
Other-than-temporary impairment losses on investments		(2,855,000)		(2,855,000)
Income before taxes	1,161,000	(17,000)	4,086,000	5,343,000
Provision for (benefit of) income taxes	335,000	(225,000)	1,275,000	1,385,000
Net income	826,000	208,000	2,811,000	3,958,000
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)	$ 0.60	$ 0.15	$ 2.04	$ 2.87
Comprehensive income (loss)
Net income	826,000	208,000	2,811,000	3,958,000
Net change in unrealized appreciation (depreciation) of investments (net of taxes)	4,887,000	(3,410,000)	15,802,000	13,430,000
Other-than-temporary impairment losses recognized in net income (net of taxes)		1,720,000		1,720,000
Comprehensive income (loss)	$ 5,713,000	$ (1,482,000)	$ 18,613,000	$ 19,108,000

XML

Note 4 - Basic and Diluted Income Per Share

9 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

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.

XML

Note 8 - Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Note 8 - Income Taxes (Details) [Line Items]
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest	$ 1,161,000	$ (17,000)	$ 4,086,000	$ 5,343,000	$ 4,086,000	$ 5,343,000
Income Tax Expense (Benefit)	$ 335,000	$ (225,000)	$ 1,275,000	$ 1,385,000
Effective Income Tax Rate Reconciliation, Percent			31.00%	26.00%
Amortization Period For Purchased Software, Customer Relationhips And Goodwill Tax Basis [Member]
Note 8 - Income Taxes (Details) [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			15 years

XML

Note 12 - Operating Segments

9 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 12 - Operating Segments

     The Company has two segments of business. The Company’s reportable segments are (i) the traditional business and (ii) Sustain and New Dawn. Summarized financial information for the Company’s reportable segments is shown in the following table:

	Reportable segments
	Traditional business			Sustain and New Dawn*			Total
Nine months ended June 30, 2013
Revenues	$	18,315,000		$	8,335,000		$	26,650,000
Pretax income (loss)		7,869,000			(3,783,000	)		4,086,000
Income tax (expense) benefit		(2,500,000	)		1,225,000			(1,275,000	)
Net income (loss)		5,369,000			(2,558,000	)		2,811,000
Total assets		146,902,000			26,849,000			173,751,000
Capital expenditures		96,000			162,000			258,000
Depreciation and amortization		340,000			1,204,000			1,544,000

	Traditional business			Sustain			Total
Nine months ended June 30, 2012
Revenues	$	21,824,000		$	2,293,000		$	24,117,000
Income (loss) from operations		8,133,000			(1,455,000	)		6,678,000
Other-than-temporary impairment losses on investments		2,855,000			---			2,855,000
Pretax income (loss)		6,791,000			(1,448,000	)		5,343,000
Income tax (expense) benefit		(2,135,000	)		750,000			(1,385,000	)
Net income (loss)		4,656,000			(698,000	)		3,958,000
Total assets		116,344,000			1,312,000			117,656,000
Capital expenditures		312,000			40,000			352,000
Depreciation and amortization		349,000			22,000			371,000

	Traditional business			Sustain and New Dawn**			Total
Three months ended June 30, 2013
Revenues	$	5,876,000		$	3,328,000		$	9,204,000
Pretax income (loss)		2,701,000			(1,540,000	)		1,161,000
Income tax (expense) benefit		(840,000	)		505,000			(335,000	)
Net income (loss)		1,861,000			(1,035,000	)		826,000
Total assets		146,902,000			26,849,000			173,751,000
Capital expenditures		5,000			97,000			102,000
Depreciation and amortization		109,000			526,000			635,000

	Traditional business		Sustain			Total
Three months ended June 30, 2012
Revenues	$	7,296,000	$	835,000		$	8,131,000
Income (loss) from operations		2,709,000		(475,000	)		2,234,000
Other-than-temporary impairment losses on investments		2,855,000		---			2,855,000
Pretax income (loss)		458,000		(475,000	)		(17,000	)
Income tax benefit		100,000		125,000			225,000
Net income (loss)		558,000		(350,000	)		208,000
Total assets		116,344,000		1,312,000			117,656,000
Capital expenditures		21,000		31,000			52,000
Depreciation and amortization		118,000		8,000			126,000

*	Includes New Dawn’s financial results from December 5, 2012 through June 30, 2013 with revenues of $6,430,000, expenses of $7,148,000 (including intangible amortization expenses of $1,111,000), and inter-company income tax benefits of $230,000.
**	Includes New Dawn’s financial results from April 1, 2013 through June 30, 2013 with revenues of $2,740,000, expenses of $3,102,000 (including intangible amortization expenses of $476,000), and income tax expenses of $115,000.

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Note 10 - Debt and Commitments (Details) (USD $)	9 Months Ended		11 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 04, 2012
Note 10 - Debt and Commitments (Details) [Line Items]
Loans Payable			$ 14,000,000
Debt Instrument, Basis Spread on Variable Rate			50.00%
Operating Leases, Rent Expense	600,000	349,000
Monthly Rent New Dawn Logan Utah Office [Member]
Note 10 - Debt and Commitments (Details) [Line Items]
Operating Leases, Rent Expense	41,500
Monthly Sublease [Member]
Note 10 - Debt and Commitments (Details) [Line Items]
Operating Leases, Rent Expense	$ 5,000

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Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities (Details) - Investments in U.S. Treasury Notes and Bills and Marketable Securities (USD $)	9 Months Ended	12 Months Ended
	Jun. 30, 2013	Sep. 30, 2012
Total [Member]
Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities (Details) - Investments in U.S. Treasury Notes and Bills and Marketable Securities [Line Items]
Available for sale investment, aggregate fair value	$ 128,421,000	$ 102,956,000
Available for sale investment, amortized cost basis	49,694,000	50,492,000
Available for sale investment, pretax unrealized gains	78,727,000	52,464,000
US Treasury Securities [Member]
Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities (Details) - Investments in U.S. Treasury Notes and Bills and Marketable Securities [Line Items]
Available for sale investment, aggregate fair value	0	800,000
Available for sale investment, amortized cost basis	0	800,000
Available for sale investment, pretax unrealized gains	0	0
Equity Securities [Member]
Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities (Details) - Investments in U.S. Treasury Notes and Bills and Marketable Securities [Line Items]
Available for sale investment, aggregate fair value	121,104,000	94,061,000
Available for sale investment, amortized cost basis	44,761,000	44,761,000
Available for sale investment, pretax unrealized gains	76,343,000	49,300,000
Debt Securities [Member]
Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities (Details) - Investments in U.S. Treasury Notes and Bills and Marketable Securities [Line Items]
Available for sale investment, aggregate fair value	7,317,000	8,095,000
Available for sale investment, amortized cost basis	4,933,000	4,931,000
Available for sale investment, pretax unrealized gains	$ 2,384,000	$ 3,164,000

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Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities (Details) (USD $)	9 Months Ended	21 Months Ended
	Jun. 30, 2013	Sep. 30, 2012
Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities (Details) [Line Items]
Available-for-sale Securities, Gross Unrealized Gain	$ 80,999,000	$ 54,653,000
Available-for-sale Securities, Gross Unrealized Loss	2,272,000	2,189,000
US Treasury Bills And Marketable Securities [Member]
Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities (Details) [Line Items]
Available-for-sale Securities, Gross Unrealized Gain (Loss)	$ 78,727,000	$ 52,464,000

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Consolidated Statements Of Cash Flows (Unaudited) (Parentheticals) (USD $)	9 Months Ended
	Jun. 30, 2012
Write off of impairment losses on investments, net of tax	$ 1,720,000

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Note 2 - Basis of Presentation

9 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

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 statement of its financial position as of June 30, 2013, and of its results of operations and cash flows for the three- and nine- month periods ended June 30, 2013 and 2012. The results of operations for the nine months ended June 30, 2013 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, 2012.

     Certain reclassifications of previously reported amounts have been made to conform to the current year’s presentation.

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Note 5 - Acquisition of New Dawn Technologies, Inc

9 Months Ended

Jun. 30, 2013

Disclosure Text Block Supplement [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

Note 5 – Acquisition of New Dawn Technologies, Inc.

On December 4, 2012 the Company purchased all of the outstanding stock of New Dawn for $14 million in cash.  The New Dawn acquisition was accounted for using the purchase method of accounting in accordance with the Statement of FASB’s ASC 805 Business Combinations. The Company incurred legal and tax fees of about $93,000 associated with this acquisition. These costs were included in “Other general and administrative expenses” on the Company’s Consolidated Statements of Comprehensive Income. New Dawn’s results of operations from December 5, 2012 through June 30, 2013 have been included in the Company’s Consolidated Financial Statements: revenues were $6,430,000, expenses were $7,148,000 (including intangible amortization expenses of $1,111,000), and the pretax loss was $718,000.

   The Company preliminarily allocated the purchase price to the tangible assets ($3.1 million including cash of $2.2 million; accounts receivable, net, of $.66 million, and net fixed assets of $.14 million) and identifiable intangible assets (purchased software and customer relationships of $9.5 million) and liabilities ($12.6 million including accounts payable and accrued expenses of $2.8 million, deferred maintenance agreements of $2.2 million and deferred installation contracts of $7.5 million) based on their fair values with the remaining balance in excess of the net assets allocated to goodwill ($14 million).  Deferred revenues on installation contracts primarily represent advances from customers for software licenses and installation services in various stages of completion; after customer’s acceptance of the completed project, the advances would become no longer at risk of refund and earned.

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Note 3 - New Accounting Pronouncements

9 Months Ended

Jun. 30, 2013

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Note 3 - New Accounting Pronouncements

     In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, requiring entities to disclose additional information with respect to changes in accumulated other comprehensive income (AOCI) balances by component and significant items reclassified out of AOCI. This ASU will be effective beginning October 1, 2013 for the Company, and the adoption will have no impact on the Company’s consolidated results of operations or financial positions because it only represents a change to the presentation and the disclosure requirements.

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Note 12 - Operating Segments (Details) (USD $)	3 Months Ended	7 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Note 12 - Operating Segments (Details) [Line Items]
Number of Reportable Segments		2
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	$ 2,740,000	$ 6,430,000
Business Combination Pro Forma Information Expenses Since Acquisition Date Actual	3,102,000	7,148,000
Amortization of Intangible Assets	476,000	1,111,000
Adjustment for Long-term Intercompany Transactions, Tax Benefit (Expense)	115,000	230,000
Depreciation And Amortization Expenses [Member]
Note 12 - Operating Segments (Details) [Line Items]
Amortization of Intangible Assets		$ 1,111,000

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Consolidated Balance Sheets (June 30, 2013 Unaudited) (Parentheticals) (USD $)	Jun. 30, 2013	Sep. 30, 2012
Marketable securities, common stock (in Dollars)	$ 121,104,000	$ 94,061,000
Marketable securities, bonds (in Dollars)	7,317,000	8,095,000
Accounts receivable, allowance for doubtful accounts (in Dollars)	$ 250,000	$ 200,000
Preferred stock par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares outstanding	1,380,746	1,380,746

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Note 8 - Income Taxes

9 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 8 - Income Taxes

On a pretax profit of $4,086,000 and $5,343,000 for the nine months ended June 30, 2013 and 2012, respectively, the Company recorded a tax provision of $1,275,000 and $1,385,000 respectively, which was lower in each case than the amount computed using the statutory rate because of the available dividends received deduction and the domestic production activity deduction.  Consequently, the Company’s effective tax rate was 31% and 26% for the nine months ended June 30, 2013 and 2012, respectively. The acquisition of New Dawn was structured as a stock acquisition with an Internal Revenue Code Section 338 (h)(10) election, which results in the acquisition being treated similarly to an acquisition of assets for income tax purposes. As such, the amounts allocated to purchased software and customer relationships as well as goodwill are amortized over a 15-year period on a straight-line basis for tax purposes. Differences in the amortization period and methods between book and tax useful lives will result in deferred tax assets or liabilities. The Company files federal income tax returns in the United States and with various state jurisdictions and is no longer subject to examinations for years before 2010 with regard to federal income taxes.

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Consolidated Statements Of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities
Net income	$ 2,811,000	$ 3,958,000
Adjustments to reconcile net income to net cash provided by operations
Depreciation and amortization	1,544,000	371,000
Deferred income taxes	644,000	(851,000)
Net premium amortized and discount earned on bonds and U.S. Treasury Bills	(2,000)	(3,000)
Other-than-temporary impairment losses on investments ($1,720,000 net of taxes)		2,855,000
Decrease (increase) in current assets (net of acquisition)
Accounts receivable, net	1,556,000	1,236,000
Inventories	(7,000)	6,000
Prepaid expenses and other assets	(184,000)	(12,000)
Increase (decrease) in current liabilities (net of acquisition)
Accounts payable	(753,000)	(347,000)
Accrued liabilities	(2,347,000)	(913,000)
Income taxes	(756,000)	(178,000)
Net cash provided by operating activities	2,634,000	6,382,000
Cash flows from investing activities
Maturities and sales of U.S. Treasury Bills	800,000	14,600,000
Purchases of U.S. Treasury Bills		(4,299,000)
Acquisition of New Dawn Technologies, Inc. (net of cash acquired)	(11,878,000)
Purchases of marketable securities		(16,390,000)
Purchases of property, plant and equipment	(258,000)	(352,000)
Net cash used in investing activities	(11,336,000)	(6,441,000)
Cash flows from financing activities
Investment margin account borrowing	14,000,000
Cash provided by financing activities	14,000,000
Increase (decrease) in cash and cash equivalents	5,298,000	(59,000)
Cash and cash equivalents
Beginning of period	985,000	3,058,000
End of period	6,283,000	2,999,000
Subscription Arrangement [Member]
Increase (decrease) in current liabilities (net of acquisition)
Deferred revenues	(410,000)	53,000
Deferred Maintenance Agreements [Member]
Increase (decrease) in current liabilities (net of acquisition)
Deferred revenues	95,000	207,000
Deferred Installation Contracts [Member]
Increase (decrease) in current liabilities (net of acquisition)
Deferred revenues	$ 443,000

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Consolidated Balance Sheets (June 30, 2013 Unaudited) (USD $)	Jun. 30, 2013	Sep. 30, 2012
Current assets
Cash and cash equivalents	$ 6,283,000	$ 985,000
U.S. Treasury Bills		800,000
Marketable securities, including common stocks of $121,104,000 and bonds of $7,317,000 at June 30, 2013 and common stocks of $94,061,000 and bonds of $8,095,000 at September 30, 2012	128,421,000	102,156,000
Accounts receivable, less allowance for doubtful accounts of $250,000 and$200,000 at June 30, 2013 and September 30, 2012, respectively	4,813,000	5,709,000
Inventories	47,000	43,000
Prepaid expenses and other assets	545,000	241,000
Income tax receivable	952,000	196,000
Total current assets	141,061,000	110,130,000
Property, plant and equipment, at cost
Land, buildings and improvements	12,846,000	12,819,000
Furniture, office equipment and computer software	2,692,000	2,263,000
Machinery and equipment	2,014,000	2,072,000
	17,552,000	17,154,000
Less accumulated depreciation	(8,341,000)	(7,911,000)
	9,211,000	9,243,000
Other assets
Intangibles (net)	8,411,000
Goodwill	14,000,000
Deferred income taxes	1,068,000	1,591,000
	23,479,000	1,591,000
	173,751,000	120,964,000
Current liabilities
Accounts payable	1,665,000	2,201,000
Accrued liabilities	4,217,000	2,738,000
Deferred income taxes	29,728,000	19,146,000
Total current liabilities	50,863,000	29,539,000
Long term liabilities
Investment margin account borrowing	14,000,000
Accrued liabilities	3,050,000	4,200,000
Total long term liabilities	17,050,000	4,200,000
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; 1,380,746 at June 30, 2013 and September 30, 2012, outstanding	14,000	14,000
Additional paid-in capital	1,755,000	1,755,000
Retained earnings	56,702,000	53,891,000
Accumulated other comprehensive income	47,367,000	31,565,000
Total shareholders' equity	105,838,000	87,225,000
	173,751,000	120,964,000
Subscription Arrangement [Member]
Current liabilities
Deferred Revenue	3,239,000	3,649,000
Deferred Installation Contracts [Member]
Current liabilities
Deferred Revenue	7,915,000
Deferred Maintenance Agreements [Member]
Current liabilities
Deferred Revenue	$ 4,099,000	$ 1,805,000

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Note 12 - Operating Segments (Details) - Reportable Segments (USD $)	3 Months Ended			9 Months Ended			12 Months Ended
	Jun. 30, 2013		Jun. 30, 2012	Jun. 30, 2013		Jun. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Segment Reporting Information [Line Items]
Revenues	$ 9,204,000		$ 8,131,000	$ 26,650,000		$ 24,117,000
Income (loss) from operations			2,234,000			6,678,000
Other-than-temporary impairment losses on investments			2,855,000			2,855,000
Pretax income (loss)	1,161,000		(17,000)	4,086,000		5,343,000	4,086,000	5,343,000
Income tax benefit (expense)	(335,000)		225,000	(1,275,000)		(1,385,000)
Net income (loss)	826,000		208,000	2,811,000		3,958,000
Total assets	173,751,000		117,656,000	173,751,000		117,656,000		120,964,000
Capital expenditures	102,000		52,000	258,000		352,000
Depreciation and amortization	635,000		126,000	1,544,000		371,000
Traditional Business [Member]
Segment Reporting Information [Line Items]
Revenues	5,876,000		7,296,000	18,315,000		21,824,000
Income (loss) from operations			2,709,000			8,133,000
Other-than-temporary impairment losses on investments			2,855,000			2,855,000
Pretax income (loss)	2,701,000		458,000	7,869,000		6,791,000
Income tax benefit (expense)	(840,000)		100,000	(2,500,000)		(2,135,000)
Net income (loss)	1,861,000		558,000	5,369,000		4,656,000
Total assets	146,902,000		116,344,000	146,902,000		116,344,000
Capital expenditures	5,000		21,000	96,000		312,000
Depreciation and amortization	109,000		118,000	340,000		349,000
Sustain And New Dawn [Member]
Segment Reporting Information [Line Items]
Revenues	3,328,000	[1]	835,000	8,335,000	[2]	2,293,000
Income (loss) from operations			(475,000)			(1,455,000)
Pretax income (loss)	(1,540,000)	[1]	(475,000)	(3,783,000)	[2]	(1,448,000)
Income tax benefit (expense)	505,000	[1]	125,000	1,225,000	[2]	750,000
Net income (loss)	(1,035,000)	[1]	(350,000)	(2,558,000)	[2]	(698,000)
Total assets	26,849,000	[1],[2]	1,312,000	26,849,000	[1],[2]	1,312,000
Capital expenditures	97,000	[1]	31,000	162,000	[2]	40,000
Depreciation and amortization	$ 526,000	[1]	$ 8,000	$ 1,204,000	[2]	$ 22,000

[1] Includes New Dawn's financial results from April 1, 2013 through June 30, 2013 with revenues of $2,740,000, expenses of $3,102,000 (including intangible amortization expenses of $476,000), and income tax expenses of $115,000.

[2] Includes New Dawn's financial results from December 5, 2012 through June 30, 2013 with revenues of $6,430,000, expenses of $7,148,000 (including intangible amortization expenses of $1,111,000), and inter-company income tax benefits of $230,000.

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Note 6 - Intangible Assets (Details) (Software And Customer Relationhips Costs [Member], USD $)	7 Months Ended
	Jun. 30, 2013
Software And Customer Relationhips Costs [Member]
Note 6 - Intangible Assets (Details) [Line Items]
Finite-lived Intangible Assets Acquired	$ 8,411,000
Finite-Lived Intangible Assets, Accumulated Amortization	$ 1,111,000
Finite-Lived Intangible Asset, Useful Life	5 years

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Note 7 - Revenue Recognition

9 Months Ended

Jun. 30, 2013

Deferred Revenue Disclosure [Abstract]

Deferred Revenue Disclosure [Text Block]

Note 7 - Revenue Recognition

     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.

     The Company recognizes revenues from both the lease and sale of software products in accordance with ASC 985-605 Software Revenue Recognition. Revenues from leases of software products are recognized over the life of the lease while revenues from software product sales are recognized normally upon delivery, installation or acceptance pursuant to a signed agreement. Revenues from annual maintenance contracts generally call for the Company to provide software updates and upgrades to customers and are recognized ratably over the maintenance period. Consulting and other services are recognized upon acceptance by the customers.

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Note 10 - Debt and Commitments

9 Months Ended

Jun. 30, 2013

Disclosure Text Block Supplement [Abstract]

Commitments Disclosure [Text Block]

Note 10 - Debt and Commitments

     On December 4, 2012, the Company borrowed the purchase price of $14 million for the New Dawn acquisition and pledged its marketable securities as collateral. The interest rate for this investment margin account borrowing will fluctuate based on the Federal Funds Rate plus 50 basis points with interest only payable monthly. This investment margin account borrowing does not mature.

     The Company owns its facilities in Los Angeles and leases space for its other offices under operating leases which expire at various dates through 2015. New Dawn’s Logan, Utah office lease requires a monthly rent of $41,500, with short-term sub-leases of approximately $5,000 per month, and will expire in 2015, subject to certain extension options. The Company is responsible for a portion of maintenance, insurance and property tax expenses relating to certain leased property. Rental expenses for comparable nine-month periods ended June 30, 2013 and 2012 were $600,000 and $349,000, respectively.

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Note 6 - Intangible Assets

9 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6 - Intangible Assets

     At June 30, 2013, New Dawn’s purchased software and customer relationships costs of $8,411,000 (net of the accumulated amortization expenses of $1,111,000) are being amortized over five years based on their estimated useful lives.    

      The Company accounts for goodwill in accordance with ASC 350 Intangibles — Goodwill and Other. Goodwill is not amortized for financial statement purposes but evaluated for impairment annually as of September 30th, or whenever events or changes in circumstances indicate that the value may not be recoverable.

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Note 1 - The Corporation and Operations

9 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 - The Corporation and Operations

     The Daily Journal Corporation (the “Company”) publishes newspapers and web sites covering California and Arizona, as well as the California Lawyer magazine, and produces several specialized information services. It also serves as a newspaper representative specializing in public notice advertising. Sustain Technologies, Inc. (“Sustain”), a wholly-owned subsidiary, supplies case management software systems and related products to courts and other justice agencies, including administrative law organizations. These courts and agencies use the Sustain family of products to help manage cases and information electronically and to interface with other critical justice partners. Sustain’s products are designed to help users manage electronic case files from inception to disposition, including calendaring and accounting, report and notice generation, the implementation of standards and business rules and other corollary functions, and to enable justice agencies to extend electronic services to the public and bar members.

     In December 2012, the Company purchased all of the outstanding stock of New Dawn Technologies, Inc. (“New Dawn”) based in Logan, Utah, which provides products and services similar to those of Sustain to more than 350 justice agencies in 39 states, three U.S. territories and two other countries. The acquisition expands the Company’s position in the case management software marketplace. Essentially all of the Company’s operations are based in California, Arizona and Utah.

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Note 13 - Subsequent Events

9 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 13 - 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.

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Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities

9 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities

     Investments in U.S. Treasury Bills and marketable securities categorized as “available-for-sale” are stated at fair value, with the unrealized gains and losses, net of taxes, reported in “Accumulated other comprehensive income”. As of June 30, 2013 and September 30, 2012, an unrealized gain of $78,727,000 (consisting of gross unrealized gains of $80,999,000 and gross unrealized losses of $2,272,000) and $52,464,000 (consisting of gross unrealized gains of $54,653,000 and gross unrealized losses of $2,189,000), respectively, net of taxes, was recorded in “Accumulated other comprehensive income” in the accompanying Consolidated Balance Sheets. 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 June 30, 2013 and September 30, 2012 are summarized by type below.

	June 30, 2013						September 30, 2012
	(Unaudited)
	Aggregate fair value		Amortized/Adjusted cost basis		Pretax unrealized gains		Aggregate fair value		Amortized/Adjusted cost basis		Pretax unrealized gains
U.S. Treasury Bills	$	---	$	---	$	---	$	800,000	$	800,000	$	---
Marketable securities
Common stocks		121,104,000		44,761,000		76,343,000		94,061,000		44,761,000		49,300,000
Bonds		7,317,000		4,933,000		2,384,000		8,095,000		4,931,000		3,164,000
Total	$	128,421,000	$	49,694,000	$	78,727,000	$	102,956,000	$	50,492,000	$	52,464,000

     At June 30, 2013, all investments are classified as “Current assets” because they are available for sale at any time. The bonds mature in 2039.  

     As of June 30, 2013, the Company performed separate evaluations for impaired equity securities to determine if the unrealized losses were 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 securities until fair value recovers. The assessment of the ability and intent to hold these securities to recovery focuses on liquidity needs, asset/liability management objectives and securities portfolio objectives. Based on the results of the evaluations, the Company concluded that as of June 30, 2013, all unrealized losses related to equity securities were temporary.

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Note 5 - Acquisition of New Dawn Technologies, Inc (Details) (USD $)	0 Months Ended	3 Months Ended	7 Months Ended
	Dec. 04, 2012	Jun. 30, 2013	Jun. 30, 2013
Note 5 - Acquisition of New Dawn Technologies, Inc (Details) [Line Items]
Payments to Acquire Businesses, Gross	$ 14,000,000
Business Acquisition, Transaction Costs	93,000
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual		2,740,000	6,430,000
Business Combination Pro Forma Information Expenses Since Acquisition Date Actual		3,102,000	7,148,000
Amortization of Intangible Assets		476,000	1,111,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual			718,000
Business Combination, Consideration Transferred	3,100,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	2,200,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	660,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	140,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	9,500,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	12,600,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	2,800,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	14,000,000
Deferred Maintenance Agreements [Member]
Note 5 - Acquisition of New Dawn Technologies, Inc (Details) [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	2,200,000
Deferred Installation Contracts [Member]
Note 5 - Acquisition of New Dawn Technologies, Inc (Details) [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	$ 7,500,000

XML

Note 9 - Investments in U.S. Treasury Notes and Bills and Marketable Securities (Tables)

9 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

	June 30, 2013						September 30, 2012
	(Unaudited)
	Aggregate fair value		Amortized/Adjusted cost basis		Pretax unrealized gains		Aggregate fair value		Amortized/Adjusted cost basis		Pretax unrealized gains
U.S. Treasury Bills	$	---	$	---	$	---	$	800,000	$	800,000	$	---
Marketable securities
Common stocks		121,104,000		44,761,000		76,343,000		94,061,000		44,761,000		49,300,000
Bonds		7,317,000		4,933,000		2,384,000		8,095,000		4,931,000		3,164,000
Total	$	128,421,000	$	49,694,000	$	78,727,000	$	102,956,000	$	50,492,000	$	52,464,000

XML

Document And Entity Information	9 Months Ended
	Jun. 30, 2013	Jul. 31, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	DAILY JOURNAL CORP
Document Type	10-Q
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		1,380,746
Amendment Flag	true
Amendment Description	Explanatory Note This Form 10-Q/A for the fiscal quarter ended June 30, 2013 is being filed by Daily Journal Corporation (the “Company”) solely to correct an error in the allocation of the Company’s net income (loss) between its traditional business and that of its Sustain Technologies, Inc. (“Sustain”) and New Dawn Technologies, Inc. (“New Dawn”) subsidiaries. Specifically, the net income of the traditional business segment was $5,369,000 in the nine months ended June 30, 2013 and $1,861,000 in the three months ended June 30, 2013, and the net loss of the Sustain and New Dawn segment was $2,558,000 in the nine month period and $1,035,000 in the three month period. The correction affects only Note 12 – Operating Segments, appearing on page 11 of the 10-Q/A, and the “reportable segments” chart, appearing on page 14 of the 10-Q/A. This amendment does not reflect events occurring after the original filing of the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2013, or modify or update the disclosures in the original Form 10-Q in any way, other than to reflect the correction described above.
Entity Central Index Key	0000783412
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

XML

Note 12 - Operating Segments (Tables)

9 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Reportable segments
	Traditional business			Sustain and New Dawn*			Total
Nine months ended June 30, 2013
Revenues	$	18,315,000		$	8,335,000		$	26,650,000
Pretax income (loss)		7,869,000			(3,783,000	)		4,086,000
Income tax (expense) benefit		(2,500,000	)		1,225,000			(1,275,000	)
Net income (loss)		5,369,000			(2,558,000	)		2,811,000
Total assets		146,902,000			26,849,000			173,751,000
Capital expenditures		96,000			162,000			258,000
Depreciation and amortization		340,000			1,204,000			1,544,000

	Traditional business			Sustain			Total
Nine months ended June 30, 2012
Revenues	$	21,824,000		$	2,293,000		$	24,117,000
Income (loss) from operations		8,133,000			(1,455,000	)		6,678,000
Other-than-temporary impairment losses on investments		2,855,000			---			2,855,000
Pretax income (loss)		6,791,000			(1,448,000	)		5,343,000
Income tax (expense) benefit		(2,135,000	)		750,000			(1,385,000	)
Net income (loss)		4,656,000			(698,000	)		3,958,000
Total assets		116,344,000			1,312,000			117,656,000
Capital expenditures		312,000			40,000			352,000
Depreciation and amortization		349,000			22,000			371,000

	Traditional business			Sustain and New Dawn**			Total
Three months ended June 30, 2013
Revenues	$	5,876,000		$	3,328,000		$	9,204,000
Pretax income (loss)		2,701,000			(1,540,000	)		1,161,000
Income tax (expense) benefit		(840,000	)		505,000			(335,000	)
Net income (loss)		1,861,000			(1,035,000	)		826,000
Total assets		146,902,000			26,849,000			173,751,000
Capital expenditures		5,000			97,000			102,000
Depreciation and amortization		109,000			526,000			635,000

	Traditional business		Sustain			Total
Three months ended June 30, 2012
Revenues	$	7,296,000	$	835,000		$	8,131,000
Income (loss) from operations		2,709,000		(475,000	)		2,234,000
Other-than-temporary impairment losses on investments		2,855,000		---			2,855,000
Pretax income (loss)		458,000		(475,000	)		(17,000	)
Income tax benefit		100,000		125,000			225,000
Net income (loss)		558,000		(350,000	)		208,000
Total assets		116,344,000		1,312,000			117,656,000
Capital expenditures		21,000		31,000			52,000
Depreciation and amortization		118,000		8,000			126,000