Note 6 - Reportable Segments

12 Months Ended

Sep. 30, 2020

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. All inter-segment transactions were eliminated.

Summarized financial information concerning the Company’s reportable segments and Corporate income and expenses is shown in the following table.

The Company’s Traditional Business is one reportable segment and the other is Journal Technologies. Additional details about each of the reportable segments and its corporate income and expenses is set forth below:

	Reportable Segments
	Traditional Business			Journal Technologies		Corporate			Total
Fiscal 2020
Revenues
Advertising	$	7,104,000		$	—	$	—		$	7,104,000
Circulation		5,090,000			—		—			5,090,000
Advertising service fees and other		2,501,000			—		—			2,501,000
Licensing and maintenance fees		—			21,647,000		—			21,647,000
Consulting fees		—			7,718,000		—			7,718,000
Other public service fees		—			5,882,000		—			5,882,000
Operating expenses		16,425,000			34,800,000		—			51,225,000
Income (loss) from operations		(1,730,000	)		447,000		—			(1,283,000	)
Dividends and interest income		—			—		4,965,000			4,965,000
Other income		—			—		3,000			3,000
Net unrealized losses on investments		—			—		(3,099,000	)		(3,099,000	)
Interest expenses on note payable collateralized by real estate		(84,000	)		—		(35,000	)		(119,000	)
Interest expenses on margin loans		—			—		(434,000	)		(434,000	)
Gains on sales of marketable securities, net		—			—		4,193,000			4,193,000
Pretax income		(1,814,000	)		447,000		5,593,000			4,226,000
Income tax expense		685,000			100,000		(970,000	)		(185,000	)
Net loss		(1,129,000	)		547,000		4,623,000			4,041,000
Total assets		35,896,000			22,277,000		180,402,000			238,575,000
Capital expenditures		121,000			63,000		—			184,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate			Total
Fiscal 2019
Revenues
Advertising	$	9,132,000		$	—		$	—		$	9,132,000
Circulation		5,249,000			—			—			5,249,000
Advertising service fees and other		2,712,000			—			—			2,712,000
Licensing and maintenance fees		—			20,179,000			—			20,179,000
Consulting fees		—			5,539,000			—			5,539,000
Other public service fees		—			5,844,000			—			5,844,000
Operating expenses		16,981,000			49,898,000*			—			66,879,000	*
Income (loss) from operations		112,000			(18,336,000	)		—			(18,224,000	)
Dividends and interest income		—			—			5,380,000			5,380,000
Other income		—			—			38,000			38,000
Net unrealized losses on investments		—			—			(17,715,000	)		(17,715,000	)
Interest expenses on note payable collateralized by real estate		(93,000	)		—			—			(93,000	)
Interest expenses on margin loans		—			—			(862,000	)		(862,000	)
Pretax income		19,000			(18,336,000	)		(13,159,000	)		(31,476,000	)
Income tax expense		(5,000	)		2,450,000			3,815,000			6,260,000
Net loss		14,000			(15,886,000	)		(9,344,000	)		(25,216,000	)
Total assets		17,176,000			22,741,000			197,459,000			237,376,000
Capital expenditures		132,000			33,000			—			165,000

* included goodwill impairment of $13,400,000

During fiscal 2020 and 2019, the Traditional Business had total operating revenues of $14,695,000 and $17,093,000 of which $9,605,000 and $11,844,000, respectively, were recognized after services were provided while $5,090,000 and $5,249,000, respectively, were recognized ratably over the subscription terms. Total operating revenues for the Company’s software business were $35,247,000 and $31,562,000, of which $14,025,000 and $12,353,000, respectively, were recognized upon completion of services while $21,222,000 and $19,209,000, respectively, were recognized ratably over the subscription periods.