Note 10 - Debt and Commitments and Contingencies

9 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Commitments Disclosure [Text Block]

Note

10

- Debt and Commitments and Contingencies

The Company borrowed from its investment margin account during fiscal

2013

the purchase price of

two

acquisitions aggregating

$29.5

million, in each case pledging its marketable securities as collateral. The interest rate for these investment margin account borrowings fluctuates based on the Federal Funds Rate plus

50

basis points with interest only payable monthly. The interest rate as of

June 30, 2017

was

1.75%.

These investment margin account borrowings do

not

mature.

In

November 2015,

the Company purchased a

30,700

square foot office building constructed in

1998

on about

3.6

acres in Logan, Utah that had been previously leased by Journal Technologies. The Company paid

$1.24

million and financed the balance with a real estate bank loan of

$2.26

million which bears a fixed interest rate of

4.66%

and is repayable in equal monthly installments of about

$17,600

through

2030.

This loan is secured by the Logan facility and can be paid off at any time without prepayment penalty. This real estate loan had a balance of approximately

$2.1

million as of

June 30, 2017.

The Company owns its facilities in Los Angeles and leases space for its other offices under operating leases which expire at various dates through fiscal

2020.

The Company is responsible for a portion of maintenance, insurance and property tax expenses relating to these leased properties and certain other leased properties. Rental expenses were

$537,000

and

$181,000

for the

nine

- and

three

-month periods ended

June 30, 2017,

respectively, as compared with

$579,000

and

$164,000

in the prior year periods.

From time to time, the Company is subject to contingencies, including litigation, arising in the normal course of its business. While it is

not

possible to predict the results of such contingencies, management does

not

believe the ultimate outcome of these matters will have a material effect on the Company’s financial position or results of operations or cash flows.