The Company has Referred Buxton and its CEO, Alexander Erwin Parker, to Federal and State Authorities for Consideration of Criminal Prosecution The Company Stands Firmly Behind its Financial Statements and Accounting Judgments LOS ANGELES, Dec. 26, 2025 (GLOBE NEWSWIRE) -- Daily Journal Corporation (the “Company”) today issued the following statement in response to a flood of false, misleading and self-interested correspondence from Buxton Helmsley USA, Inc. (“BuHeUI”) and its Chief Executive Officer, Alexa ...

The Company has Referred Buxton and its CEO, Alexander Erwin Parker, to Federal and State Authorities for Consideration of Criminal Prosecution The Company Stands Firmly Behind its Financial Statements and Accounting Judgments LOS ANGELES, Dec. 26, 2025 (GLOBE NEWSWIRE) -- Daily Journal Corporation (the “Company”) today issued the following statement in response to a flood of false, misleading and self-interested correspondence from Buxton Helmsley USA, Inc. (“BuHeUI”) and its Chief Executive Officer, Alexa ...

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].