Note 11 - Operating Segments

3 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 11 - Operating Segments

The Company’s reportable segments are: (i) the Traditional Business and (ii) Journal Technologies. All inter-segment transactions were eliminated. Summarized financial information regarding the Company’s reportable segments is shown in the following table:

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three months ended December 31, 2020
Revenues
Advertising	$	1,692,000		$	-		$	-		$	1,692,000
Circulation		1,203,000			-			-			1,203,000
Advertising service fees and other		634,000			-			-			634,000
Licensing and maintenance fees		-			5,033,000			-			5,033,000
Consulting fees		-			244,000			-			244,000
Other public service fees		-			1,614,000			-			1,614,000
Operating expenses		2,981,000			7,754,000			-			10,735,000
Income (loss) from operations		548,000			(863,000	)		-			(315,000	)
Dividends and interest income		-			-			638,000			638,000
Net unrealized gains on marketable securities		-			-			81,212,000			81,212,000
Interest expenses on note payable collateralized by real estate		(21,000	)		-			-			(21,000	)
Interest expenses on margin loans and others		-			-			(64,000	)		(64,000	)
Pretax income (loss)		527,000			(863,000	)		81,786,000			81,450,000
Income tax (expense) benefit		(105,000	)		405,000			(22,480,000	)		(22,180,000	)
Net income (loss)		422,000			(458,000	)		59,306,000			59,270,000
Total assets		21,799,000			19,923,000			261,621,000			303,343,000
Capital expenditures		-			-			-			-

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three months ended December 31, 2019
Revenues
Advertising	$	2,126,000		$	-		$	-		$	2,126,000
Circulation		1,312,000			-			-			1,312,000
Advertising service fees and other		694,000			-			-			694,000
Licensing and maintenance fees		-			5,210,000			-			5,210,000
Consulting fees		-			689,000			-			689,000
Other public service fees		-			1,646,000			-			1,646,000
Operating expenses		3,858,000			9,337,000			-			13,195,000
Income (loss) from operations		274,000			(1,792,000	)		-			(1,518,000	)
Dividends and interest income		-			-			1,680,000			1,680,000
Other income		-			-			3,000			3,000
Net unrealized gains on marketable securities		-			-			19,531,000			19,531,000
Interest expenses on note payable collateralized by real estate		(22,000	)		-			-			(22,000	)
Interest expenses on margin loans		-			-			(184,000	)		(184,000	)
Pretax income (loss)		252,000			(1,792,000	)		21,030,000			19,490,000
Income tax (expense) benefit		(30,000	)		510,000			(5,760,000	)		(5,280,000	)
Net income (loss)		222,000			(1,282,000	)		15,270,000			14,210,000
Total assets		17,541,000			20,993,000			216,325,000			254,859,000
Capital expenditures		35,000			62,000			-			97,000

During the three months ended December 31, 2020 and 2019, the Traditional Business had total operating revenues of $3,529,000 and $4,132,000 of which $2,326,000 and $2,820,000, respectively, were recognized after services were provided while $1,203,000 and $1,312,000, respectively, were recognized ratably over the subscription terms. Total operating revenues for the Company’s software business were $6,891,000 and $7,545,000, of which $1,869,000 and $2,454,000, respectively, were recognized upon completion of services while $5,022,000 and $5,091,000, respectively, were recognized ratably over the subscription periods.

Approximately 66% of the Company’s revenues during the three-month period ended December 31, 2020 were derived from Journal Technologies, as compared with 65% in the prior year period. In addition, the Company’s revenues have been primarily from the United States with approximately 4% from foreign countries during the three-months ended December 31, 2020. Journal Technologies’ revenues are primarily from governmental agencies.