Daily Journal Corporation Provides Additional Public Access to its Recent Form 8-K

Core Viewpoint - Daily Journal Corporation is responding to a proposal from Buxton Helmsley USA, Inc. regarding the accounting treatment of software development costs, which could potentially unlock significant equity value for shareholders [2][3]. Group 1: Proposal and Impact - Buxton Helmsley USA, Inc. suggested that Daily Journal Corporation should capitalize software development costs instead of expensing them, which could "unlock $160+ million in incremental equity value" for shareholders [3]. - The proposal included a request for a consulting engagement that would compensate Mr. Parker with $24 million in equity if the stock price increased accordingly [3]. Group 2: Company’s Accounting Practices - Daily Journal Corporation has been transparent about its practice of expensing software development costs for over a decade, adhering to GAAP and ASC 985-20 accounting rules [5]. - The company believes its accounting for the eSeries® product line development is correct and has been reviewed without issue by three different national accounting firms during annual audits [5]. Group 3: Response to the Proposal - The Board and Audit Committee decided to engage an independent accounting consultant to review the accounting practices, which led to Mr. Parker's subsequent actions [7]. - Following the decision to not engage Buxton Helmsley, Mr. Parker expressed dissatisfaction and reported the company to the SEC [8][9]. Group 4: Communication and Demands - Mr. Parker's correspondence included demands for the immediate resignation of the CEO and CFO, which the company views as an overreach following the decision to consult an independent firm [10]. - The company has offered to discuss its accounting practices with the SEC if they wish to engage [9].