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

Core Viewpoint - Daily Journal Corporation is addressing allegations from Buxton Helmsley USA, Inc. regarding improper accounting practices related to software development costs, asserting that it has complied with accounting standards [1][2]. Group 1: Allegations and Responses - Buxton Helmsley USA, Inc. claims that Daily Journal Corporation should capitalize its software development costs instead of expensing them, suggesting this change would unlock shareholder value [2]. - The Audit Committee of Daily Journal Corporation reviewed the allegations and confirmed that the company is correctly accounting for its software development costs in accordance with ASC 950-20 [3]. Group 2: Accounting Standards Explanation - Historically, software companies followed ASC 985-20, which allows capitalization of development costs only after technological feasibility is established and before general release [4]. - The evolution of software development practices, particularly the adoption of agile methodologies, has shortened the capitalization window, making it rare for companies to incur significant costs eligible for capitalization [6]. - Companies developing software as a service (SaaS) may capitalize costs under ASC 350-40, which has a longer development window compared to ASC 985-20 [7]. Group 3: Misunderstandings and Clarifications - Buxton Helmsley USA, Inc. appears to have misunderstood the accounting practices of other companies, as they likely use different standards for capitalizing costs [8]. - Daily Journal Corporation emphasizes that it will continue to expense development costs when appropriate and capitalize them when justified, ensuring transparency in reporting R&D costs [9]. Group 4: Call for Resolution - Daily Journal Corporation urges Mr. Parker to cease his unfounded attacks and allow the company to focus on creating actual business value for shareholders [11].