Note 9 - Debts and Commitments

3 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Commitments Disclosure [Text Block]

Note

9

- Debt and Commitments

During fiscal

2013,

the Company borrowed from its investment margin account the aggregate purchase price of

$29.5

million for

two

acquisitions, 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

December 31, 2018

was

3%.

These investment margin account borrowings do

not

mature.

In

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

$1.93

million as of

December 31, 2018.

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

2021.

During fiscal

2014,

the Company renewed its office lease for its San Francisco office for

five

years to end on

October 31, 2019

with a current monthly rent of approximately

$28,000

for about

6,200

square feet. Beginning in fiscal

2017,

the Company leased approximately

9,800

square feet of office space (expiring in

August 2020)

in Englewood, Colorado, for a monthly rent of approximately

$21,000.

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

$258,000

for the

three

-month period ended

December 31, 2018,

as compared with

$237,000

in the prior year period.