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Note 6 - Reportable Segments
 12 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

6.

REPORTABLE SEGMENTS

 

An operating segment is defined as a component of an enterprise which has discrete financial information that is evaluated regularly by the Company’s Chief Executive Officer to decide how to allocate resources and to access performance.

 

In accordance with ASC 280-10, Segment Reporting, the Company has two segments of business. The Company’s reportable segments are: (i) the Traditional Business and (ii) Journal Technologies which includes Journal Technologies, Inc. and Journal Technologies (Canada) Inc. (In August 2022, the Company established a new wholly-owned subsidiary, Journal Technologies (Canada) Inc., in Victoria BC, Canada. Except for a nominal founding cost of approximately $4,000, there were no business activities for this new Canadian company during fiscal 2022.) All inter-segment transactions were eliminated.

 

Additional details about each of the reportable segments and its corporate income and expenses is set forth below:

 

Overall Financial Results (000)

 

For the twelve months ended September 30

 
                                 
  

Reportable Segments

                 
  

Traditional

Business

  

Journal

Technologies

  

Corporate

  

Total

 
  

2022

  

2021

  

2022

  

2021

  

2022

  

2021

  

2022

  

2021

 

Revenues

                                

Advertising

 $8,591  $8,171  $---  $---  $---  $---  $8,591  $8,171 

Circulation

  4,394   4,576   ---   ---   ---   ---   4,394   4,576 

Advertising service fees and other

  2,937   2,684   ---   ---   ---   ---   2,937   2,684 

Licensing and maintenance fees

  ---   ---   19,192   21,044   ---   ---   19,192   21,044 

Consulting fees

  ---   ---   11,865   6,319   ---   ---   11,865   6,319 

Other public service fees

  ---   ---   7,030   7,131   ---   ---   7,030   7,131 

Total operating revenues

  15,922   15,431   38,087   34,494   ---   ---   54,009   49,925 

Operating expenses

                                

Salaries and employee benefits

  9,618   8,226   27,317   26,004   ---   ---   36,935   34,230 

Increase to the long-term Supplemental compensation accrual

  1,130   1,795   115   40   ---   ---   1,245   1,835 

Others

  4,472   4,967   9,368   6,741   ---   ---   13,840   11,708 

Total operating expenses

  15,220   14,988   36,800   32,785   ---   ---   52,020   47,773 

Income from operations

  702   443   1,287   1,709   ---   ---   1,989   2,152 
                                 

Dividends and interest income

  ---   ---   ---   ---   5,451   2,908   5,451   2,908 

Gains on sale of land

  ---   ---   ---   ---   272   ---   272   --- 

Other income

  ---   ---   ---   ---   ---   69   ---   69 

Interest expenses on note payable collateralized by real estate and other

  ---   ---   ---   ---   (83)  (94)  (83)  (94)

Interest expense on margin loans

  ---   ---   ---   ---   (1,026)  (233)  (1,026)  (233)

Gains on sales of marketable securities, net

  ---   ---   ---   ---   14,249   41,749   14,249   41,749 

Net unrealized (losses) gains on marketable securities

  ---   ---   ---   ---   (123,401)  106,499   (123,401)  106,499 

Pretax income (loss)

  702   443   1,287   1,709   (104,538)  150,898   (102,549)  153,050 

Income tax (expense) benefit

  (185)  (115)  (205)  (425)  27,315   (39,610)  26,925   (40,150)

Net income (loss)

 $517  $328  $1,082  $1,284  $(77,223) $111,288  $(75,624) $112,900 

Total assets

 $22,743  $22,412  $27,868  $20,480  $268,500  $339,664  $319,111  $382,556 

Capital expenditures

 $3  $22  $33  $7   ---   ---  $36  $29 

 

During fiscal 2022 and 2021, the Traditional Business had total operating revenues of $15,922,000 and $15,431,000 of which $11,528,000 and $10,855,000, respectively, were recognized after services were provided while $4,394,000 and $4,576,000, respectively, were recognized ratably over the subscription terms. Total operating revenues for the Company’s software business were $38,087,000 and $34,494,000, of which $19,459,000 and $14,787,000, respectively, were recognized upon completion of services while $18,628,000 and $19,707,000, respectively, were recognized ratably over the subscription periods.