Daily Journal(US:DJCO) Globenewswire·2025-12-26 14:00Core Viewpoint - The Company has firmly rejected the allegations made by Buxton Helmsley USA, Inc. and its CEO, Alexander Erwin Parker, and has referred the matter to federal and state authorities for potential criminal prosecution [1][11]. Group 1: Allegations and Responses - Mr. Parker has accused the Company of improperly expensing software development costs that should be capitalized, claiming this would "unlock value" and demanding two board seats and a consulting contract that could yield him $24 million [3][10]. - The Company has refuted Mr. Parker's accounting allegations, asserting that his claims are based on misunderstandings of accounting standards and practices [4][15]. - The Company has stated that its financial statements and accounting judgments are sound and have been reviewed by third-party experts and auditors [17][23]. Group 2: Threats and Coercive Tactics - Mr. Parker has engaged in a campaign of intimidation, sending numerous letters threatening reputational damage to Company directors unless they comply with his demands [4][6]. - Specific threats included disciplinary referrals to the State Bar of California against directors unless they supported his agenda [6][8]. - The Company views these tactics as coercive and inappropriate, leading to its decision to involve federal and state authorities [5][11]. Group 3: Company Governance and Future Actions - The Company has reassured stockholders of its commitment to integrity and governance standards, emphasizing that it will not be swayed by coercive tactics [23]. - The Company plans to file its Annual Report on Form 10-K for Fiscal Year 2025, which will reflect its continued application of accounting standards [17]. - The Company has also indicated that it will file a Form 8-K to provide transparency regarding the ongoing situation with Mr. Parker and BuHeUI [23].