Note 11 - Operating Segments

6 Months Ended

Mar. 31, 2021

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
Six months ended March 31, 2021
Revenues
Advertising	$	3,454,000		$	-		$	-		$	3,454,000
Circulation		2,332,000			-			-			2,332,000
Advertising service fees and other		1,202,000			-			-			1,202,000
Licensing and maintenance fees		-			11,388,000			-			11,388,000
Consulting fees		-			2,549,000			-			2,549,000
Other public service fees		-			3,465,000			-			3,465,000
Operating expenses		7,336,000			16,064,000			-			23,400,000
Income (loss) from operations		(348,000	)		1,338,000			-			990,000
Dividends and interest income		-			-			1,287,000			1,287,000
Realized gains on sales of marketable securities		-			-			18,478,000			18,478,000
Net unrealized gains on marketable securities		-			-			76,068,000			76,068,000
Interest expenses on note payable collateralized by real estate		(34,000	)		-			-			(34,000	)
Interest expenses on margin loans and others		-			-			(128,000	)		(128,000	)
Pretax income (loss)		(382,000	)		1,338,000			95,705,000			96,661,000
Income tax (expense) benefit		160,000			(325,000	)		(24,750,000	)		(24,915,000	)
Net income (loss)		(222,000	)		1,013,000			70,955,000			71,746,000
Total assets		14,586,000			21,639,000			294,420,000			330,645,000
Capital expenditures		22,000			7,000			-			29,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Six months ended March 31, 2020
Revenues
Advertising	$	4,118,000		$	-		$	-		$	4,118,000
Circulation		2,598,000			-			-			2,598,000
Advertising service fees and other		1,348,000			-			-			1,348,000
Licensing and maintenance fees		-			10,715,000			-			10,715,000
Consulting fees		-			1,918,000			-			1,918,000
Other public service fees		-			3,336,000			-			3,336,000
Operating expenses		7,620,000			19,029,000			-			26,649,000
Income (loss) from operations		444,000			(3,060,000	)		-			(2,616,000	)
Dividends and interest income		-			-			2,977,000			2,977,000
Other income		-			-			3,000			3,000
Net unrealized losses on marketable securities		-			-			(57,680,000	)		(57,680,000	)
Interest expenses on note payable collateralized by real estate		(43,000	)		-			-			(43,000	)
Interest expenses on margin loans and others		-			-			(337,000	)		(337,000	)
Pretax income (loss)		401,000			(3,060,000	)		(55,037,000	)		(57,696,000	)
Income tax (expense) benefit		(110,000	)		925,000			14,765,000			15,580,000
Net income (loss)		291,000			(2,135,000	)		(40,272,000	)		(42,116,000	)
Total assets		16,074,000			19,578,000			139,083,000			174,735,000
Capital expenditures		99,000			69,000			-			168,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three months ended March 31, 2021
Revenues
Advertising	$	1,762,000		$	-		$	-		$	1,762,000
Circulation		1,129,000			-			-			1,129,000
Advertising service fees and other		568,000			-			-			568,000
Licensing and maintenance fees		-			6,355,000			-			6,355,000
Consulting fees		-			2,305,000			-			2,305,000
Other public service fees		-			1,851,000			-			1,851,000
Operating expenses		4,355,000			8,310,000			-			12,665,000
Income (loss) from operations		(896,000	)		2,201,000			-			1,305,000
Dividends and interest income		-			-			649,000			649,000
Realized gains on sales of marketable securities		-			-			18,478,000			18,478,000
Net unrealized losses on marketable securities		-			-			(5,144,000	)		(5,144,000	)
Interest expenses on note payable collateralized by real estate		(13,000	)		-			-			(13,000	)
Interest expenses on margin loans and others		-			-			(64,000	)		(64,000	)
Pretax income (loss)		(909,000	)		2,201,000			13,919,000			15,211,000
Income tax (expense) benefit		265,000			(730,000	)		(2,270,000	)		(2,735,000	)
Net income (loss)		(644,000	)		1,471,000			11,649,000			12,476,000
Total assets		14,586,000			21,639,000			294,420,000			330,645,000
Capital expenditures		22,000			7,000			-			29,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three months ended March 31, 2020
Revenues
Advertising	$	1,992,000		$	-		$	-		$	1,992,000
Circulation		1,286,000			-			-			1,286,000
Advertising service fees and other		654,000			-			-			654,000
Licensing and maintenance fees		-			5,505,000			-			5,505,000
Consulting fees		-			1,229,000			-			1,229,000
Other public service fees		-			1,690,000			-			1,690,000
Operating expenses		3,762,000			9,692,000			-			13,454,000
Income (loss) from operations		170,000			(1,268,000	)		-			(1,098,000	)
Dividends and interest income		-			-			1,297,000			1,297,000
Net unrealized losses on marketable securities		-			-			(77,211,000	)		(77,211,000	)
Interest expenses on note payable collateralized by real estate		(21,000	)		-			-			(21,000	)
Interest expenses on margin loans and others		-			-			(153,000	)		(153,000	)
Pretax income (loss)		149,000			(1,268,000	)		(76,067,000	)		(77,186,000	)
Income tax benefit		(40,000	)		415,000			20,485,000			20,860,000
Net income (loss)		109,000			(853,000	)		(55,582,000	)		(56,326,000	)
Total assets		16,074,000			19,578,000			139,083,000			174,735,000
Capital expenditures		64,000			7,000			-			71,000

During the six months ended March 31, 2021, the Traditional Business had total operating revenues of $6,988,000 with $4,656,000 recognized after services were provided and $2,332,000 recognized ratably over the subscription terms, as compared with total operating revenues of $8,064,000 with $5,466,000 recognized after services were provided and $2,598,000 recognized ratably over the subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $17,402,000 with $6,717,000 recognized upon completion of services and $10,685,000 recognized ratably over the subscription periods, as compared with total operating revenues of $15,969,000 with $5,631,000 recognized upon completion of services and $10,338,000 recognized ratably over the subscription periods in the prior fiscal year period.

During the three months ended March 31, 2021, the Traditional Business had total operating revenues of $3,459,000 with $2,330,000 recognized after services were provided and $1,129,000 recognized ratably over the subscription terms, as compared with total operating revenues of $3,932,000 with $2,646,000 recognized after services were provided and $1,286,000 recognized ratably over the subscription terms in the prior fiscal year period. Total operating revenues for the Company’s software business were $10,511,000 with $4,848,000 recognized upon completion of services and $5,663,000 recognized ratably over the subscription periods, as compared with total operating revenues of $8,424,000 with $3,177,000 recognized upon completion of services and $5,247,000 recognized ratably over the subscription periods in the prior fiscal year period.

Approximately 71% of the Company’s revenues during the six-month period ended March 31, 2021 were derived from Journal Technologies, as compared with 66% in the prior year period. In addition, the Company’s revenues have been primarily from the United States with approximately 7% from foreign countries during the six-months ended March 31, 2021. Journal Technologies’ revenues are primarily from governmental agencies.