UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _____________________ Commission File Number 0-14665 DAILY JOURNAL CORPORATION (Exact name of registrant as specified in its charter) South Ca ...

LOS ANGELES, Dec. 27, 2023 (GLOBE NEWSWIRE) -- During fiscal 2023, Daily Journal Corporation (NASDAQ:DJCO) had consolidated revenues of $67,709,000 as compared to $54,009,000 in the prior year. This increase of $13,700,000 was primarily from increases in (i) Journal Technologies' consulting fees of $7,911,000, license and maintenance fees of $4,311,000 and other public service fees of $1,147,000, and (ii) the Traditional Business' advertising revenues of $364,000, partially offset by a decrease in the Tradi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 0-14665 DAILY JOURNAL CORPORATION (Exact name of registrant as specified in its charter) | South Carolina | | 95-4133299 | | --- | --- | --- | | (State or other jurisdiction ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _____________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or Commission File Number 0-14665 DAILY JOURNAL CORPORATION (Exact name of registrant as specified in its charter) South Caroli ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _____________________ Commission File Number 0-14665 DAILY JOURNAL CORPORATION (Exact name of registrant as specified in its charter) South Carol ...

For the quarterly period ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _____________________ Commission File Number 0-14665 DAILY JOURNAL CORPORATION (Exact name of registrant as specified in its charter) South Ca ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 0-14665 DAILY JOURNAL CORPORATION | --- | --- | --- | |-------------------------------------------------------------|-------------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _____________________ Commission File Number 0-14665 DAILY JOURNAL CORPORATION (Exact name of registrant as specified in its charter) South Caroli ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _____________________ | --- | --- | --- | |--------------------------------------------------------------------------------|--------------------- ...

[PART I: Financial Information](index=4&type=section&id=PART%20I%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited statements show increased assets and revenues but a sharp drop in net income due to unrealized losses on securities [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $436.0 million, driven by increased marketable securities and financed partly by higher margin borrowings Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Dec 31, 2021 | Sep 30, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $12,793 | $12,596 | | Marketable securities | $395,284 | $347,573 | | **Total Assets** | **$436,007** | **$390,577** | | **Liabilities & Equity** | | | | Investment margin account borrowings | $69,014 | $32,000 | | Total Liabilities | $174,488 | $135,936 | | Total Shareholders' Equity | $261,519 | $254,641 | | **Total Liabilities & Equity** | **$436,007** | **$390,577** | [Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Net income fell to $6.9 million from $59.3 million year-over-year, primarily due to a significant swing from unrealized gains to losses on marketable securities Consolidated Income Statement Summary (in thousands, except per share data) | Metric | Q1 2022 (ended Dec 31, 2021) | Q1 2021 (ended Dec 31, 2020) | | :--- | :--- | :--- | | Total Revenues | $11,528 | $10,420 | | Income (loss) from operations | $56 | $(315) | | Net unrealized (losses) gains on marketable securities | $(36,088) | $81,212 | | Realized gains on sales of marketable securities | $46,694 | $0 | | Net Income | $6,878 | $59,270 | | Basic and diluted net income per share | $4.98 | $42.93 | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased to $261.5 million, with the growth entirely attributed to the $6.9 million in net income for the period Change in Shareholders' Equity (in thousands) | Description | Amount | | :--- | :--- | | Balance at September 30, 2021 | $254,641 | | Net income | $6,878 | | **Balance at December 31, 2021** | **$261,519** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated positive operating cash flow, used cash for security investments, and drew on its margin loan for financing Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended Dec 31, 2021 | Three months ended Dec 31, 2020 | | :--- | :--- | :--- | | Net cash from operating activities | $325 | $(2,783) | | Net cash used in investing activities | $(37,105) | $0 | | Net cash from financing activities | $36,978 | $(14,516) | | **Increase (decrease) in cash** | **$198** | **$(17,299)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail two operating segments, a significant sale and purchase of marketable securities, and a 40% effective tax rate - The company operates two main businesses: a Traditional Business (newspapers and public notice advertising) and Journal Technologies (case management software for justice agencies)[21](index=21&type=chunk)[22](index=22&type=chunk) - In December 2021, the company sold marketable securities for **~$50M**, realizing a gain of **$46.7M**, and purchased new securities for **~$87.1M**, financed in part by an additional **$37M** margin loan[39](index=39&type=chunk) Segment Performance (in thousands) | Segment | Revenues (Q1 2022) | Income (Loss) from Operations (Q1 2022) | Revenues (Q1 2021) | Income (Loss) from Operations (Q1 2021) | | :--- | :--- | :--- | :--- | :--- | | Traditional Business | $3,574 | $506 | $3,529 | $548 | | Journal Technologies | $7,954 | $(450) | $6,891 | $(863) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses segment performance, noting revenue growth driven by Journal Technologies but a sharp drop in net income due to investment portfolio losses - The COVID-19 pandemic is expected to continue impacting business operations, potentially causing delays in government procurement for Journal Technologies and affecting dividend income from the securities portfolio[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) - The company's strategy is to become a significant software company while also operating its Traditional Business, and it is **not a smaller version of Berkshire Hathaway Inc**[89](index=89&type=chunk) [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Consolidated revenues rose 11%, but a swing from unrealized gains to losses on securities caused a significant drop in net income to $6.9 million Consolidated Financial Comparison (in thousands) | Metric | Q1 2022 | Q1 2021 | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Revenues | $11,528 | $10,420 | 11% | | Consolidated Operating Expenses | $11,472 | $10,735 | 7% | | Pretax Income | $11,438 | $81,450 | -86% | | Net Income | $6,878 | $59,270 | -88% | - The primary reason for the decrease in non-operating income and net income was the recording of **$36.1 million in net unrealized losses** on marketable securities, compared to **$81.2 million in unrealized gains** in the prior year[67](index=67&type=chunk) [The Traditional Business](index=19&type=section&id=The%20Traditional%20Business) The Traditional Business segment's pretax income decreased by 8% despite a slight revenue increase driven by foreclosure notice advertising - Pretax income for the Traditional Business **decreased by 8% to $506,000** from $548,000 in the prior year period[74](index=74&type=chunk) - The number of foreclosure notices published **increased by 32%** year-over-year, contributing to a **6% rise** in advertising revenues[75](index=75&type=chunk) - Circulation revenues, primarily from The Daily Journals, **declined by 8% to $1,110,000**[77](index=77&type=chunk) [Journal Technologies](index=20&type=section&id=Journal%20Technologies) The Journal Technologies segment narrowed its pretax loss by 48% on 15% revenue growth, driven by a surge in consulting fees - The segment's pretax loss **decreased by 48% to $450,000** from $863,000 in the prior year[79](index=79&type=chunk) Journal Technologies Revenue Breakdown (in thousands) | Revenue Source | Q1 2022 | Q1 2021 | Change (%) | | :--- | :--- | :--- | :--- | | Licensing and maintenance fees | $4,480 | $5,033 | -11% | | Consulting fees | $1,761 | $244 | 622% | | Other public service fees | $1,713 | $1,614 | 6% | | **Total Revenues** | **$7,954** | **$6,891** | **15%** | - The company ended maintenance for legacy software products on July 1, 2021, to focus on its main eSeries products, contributing to the decline in maintenance revenue[80](index=80&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $373.9 million in working capital and actively managed its investment portfolio during the quarter - The company's cash, restricted cash, and marketable security positions **increased by a net $47.9 million** during the quarter[83](index=83&type=chunk) - As of December 31, 2021, the company had working capital of **$373,851,000**[87](index=87&type=chunk) - The company may need to consider selling some of its marketable securities to generate cash if needed to fund ongoing operations, and it could be subject to margin calls if its investment portfolio value decreases significantly[88](index=88&type=chunk) [Item 4. Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of December 31, 2021, due to previously identified material weaknesses - Due to material weaknesses in internal control over financial reporting discussed in the last Form 10-K, management concluded that disclosure controls and procedures were **not effective** as of December 31, 2021[93](index=93&type=chunk) [PART II: Other Information](index=23&type=section&id=Part%20II%20Other%20Information) [Item 6. Exhibits](index=23&type=section&id=Item%206.%20Exhibits) This section lists the required CEO/CFO certifications and Inline XBRL financial data files filed as exhibits with the Form 10-Q - The report includes CEO/CFO certifications pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act of 2002**[96](index=96&type=chunk) - **Inline XBRL data files** are included as exhibits, covering the instance document, schema, calculations, definitions, labels, and presentation[97](index=97&type=chunk)