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Note 4 - Debts and Commitments
 12 Months Ended
Sep. 30, 2013
Disclosure Text Block Supplement [Abstract]  
Commitments Disclosure [Text Block]

4. DEBTS AND COMMITMENTS


On December 4, 2012, the Company borrowed from its investment margin account the purchase price of $14 million for the New Dawn acquisition, and on September 13, 2013, it borrowed another $15.5 million for the ISD acquisition, in each case pledging its marketable securities as collateral. The interest rate for these investment margin account borrowings will fluctuate based on the Federal Funds Rate plus 50 basis points with interest only payable monthly. These investment margin account borrowings do not mature.


The Company owns its facilities in Los Angeles and leases space for its other Daily Journal offices under operating leases which expire at various dates through fiscal 2016. The Logan, Utah office operating lease entered into in December 2012 in connection with the New Dawn acquisition requires a monthly rent of $41,500 and will expire in fiscal 2016, subject to certain extension options. Part of this office space is sub-leased to third parties under short-term leases for approximately $5,000 per month. ISD leases about 10,000 square feet of office space in Corona, California, for a monthly rent of about $12,000. The Company is responsible for a portion of maintenance, insurance and property tax expenses relating to these leased properties and certain other leased properties. Rental expenses for fiscal years 2013 and 2012 were $830,000 and $455,000, respectively.


     Company’s future obligations under its operating leases as of September 30, 2013


   

2014

   

2015

   

2016

and after

   

Total

 

Obligations under operating leases

  $ 1,043,000     $ 593,000     $ 100,000     $ 1,736,000