Daily Journal (DJCO) risk factors, FY2024 10-K

Daily Journal's FY2024 10-K, filed Dec 31, 2024, lists 21 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
211 groups
Section length
3k wordsItem 1A

Daily Journal's biggest risks in the FY2024 10-K

  • Daily Journal Corp faces distinct operational risks centered around newspaper publishing decline, Journal Technologies public sector software contracts, and a large marketable securities portfolio managed previously by Charles T. Munger.

The risks most specific to Daily Journal

  • The Company’s business is likely to be materially and adversely affected by the emergence or resurgence of an epidemic or pandemic such as COVID-19, or by a similar event or the fear of such an event, and the measures that governmental authorities implement to address it

    The Company’s business is likely to be materially and adversely affected by epidemics, pandemics, or public health events like COVID-19 and related government restrictions.

  • The Company’s business may be materially affected--either positively or negatively--by the emergence of disruptive new technologies or approaches enabled by the rapid pace of innovation unfolding in the artificial intelligence space

    The Traditional Business, Journal Technologies, and marketable securities holdings face positive or negative impacts from disruptive artificial intelligence technologies.

  • Changes in the legal requirement to publish public notice advertising or in the legal ability of our newspapers to publish those notices would have a significant adverse impact on the Traditional Business

    Legislative proposals in California and Arizona to eliminate or reduce public notice advertising in print newspapers would harm the Traditional Business.

  • The Traditional Business is exposed to risks associated with fluctuations in postage and paper costs

    Postage and paper costs are the largest expenses after personnel, and the Traditional Business lacks contracts with paper suppliers to prevent shortages and price hikes.

  • We expect the Traditional Business to continue to suffer from significant secular decline

    The Traditional Business continues to suffer from significant secular decline in newspaper and court rule subscriptions.

  • The customers of Journal Technologies are public sector entities, thus creating special issues and risks

    Journal Technologies depends on public sector customers like courts and justice agencies, exposing it to government budget constraints and delayed software fee payments.

  • A large portion of the Company’s assets is held in publicly traded securities, and the prices of those securities may decline

    The Company holds marketable securities worth approximately $358,691,000 with an unrealized gain of $219,597,000, exposing assets to market price declines.

  • The irreplaceable manager of our marketable securities portfolio passed away in November 2023

    Charles T. Munger, who long managed the Company’s marketable securities portfolio and served as director, passed away in November 2023 and cannot be replaced.

  • General Corporate Risks

    We cannot be sure that customer information and systems are fully protected against security breaches

    Journal Technologies stores customer information using cloud-based systems and remains vulnerable to security breaches and unauthorized data access.

  • General Corporate Risks

    The Company has identified material weaknesses in its internal control over financial reporting

    The Company has identified material weaknesses in its internal control over financial reporting.

All 21 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Risks Associated with a Public Health Event
  2. 02The Company’s business is likely to be materially and adversely affected by the emergence or resurgence of an epidemic or pandemic such as COVID-19, or by a similar event or the fear of such an event, and the measures that governmental authorities implement to address it
  3. 03The Company’s business may be materially affected--either positively or negatively--by the emergence of disruptive new technologies or approaches enabled by the rapid pace of innovation unfolding in the artificial intelligence space
  4. 04For the Traditional Business, there may be opportunities to automate or reduce the cost of content creation, or perhaps allow monetization of existing and/or historic content in new ways. Likewise, AI may negatively impact the business in ways that will prove difficult to circumvent
  5. 05The process and approach to engineering software itself may change in notable ways, and this could impact the business model of Journal Technologies. Monitoring potential impacts of AI on companies in the marketable securities portfolio will also require attention
  6. 06Changes in the legal requirement to publish public notice advertising or in the legal ability of our newspapers to publish those notices would have a significant adverse impact on the Traditional Business
  7. 07The Traditional Business faces strong competition in each of its markets
  8. 08The Traditional Business continues to experience challenges in maintaining its commercial advertising and circulation revenues, particularly due to the growth of Internet sites
  9. 09The Traditional Business is exposed to risks associated with fluctuations in postage and paper costs
  10. 10We expect the Traditional Business to continue to suffer from significant secular decline
  11. 11The success of Journal Technologies depends in large part on the technological update and upgrade of its software products
  12. 12Journal Technologies faces significant competition from other case management software vendors
  13. 13The customers of Journal Technologies are public sector entities, thus creating special issues and risks
  14. 14Journal Technologies generally recognizes revenues for software installations only upon completion of the applicable services and customer acceptance of the software system
  15. 15A large portion of the Company’s assets is held in publicly traded securities, and the prices of those securities may decline
  16. 16The irreplaceable manager of our marketable securities portfolio passed away in November 2023
  17. 17The Company is required to recognize losses in a particular security for financial statement purposes even though the Company has not actually sold the security
  18. 18The Company may be subject to fluctuations in foreign currency rates for marketable securities that are not denominated in the United States Dollar

General Corporate Risks

  1. 19Changes in accounting guidance could have a significant effect on the Company’s reported financial results
  2. 20We cannot be sure that customer information and systems are fully protected against security breaches
  3. 21The Company has identified material weaknesses in its internal control over financial reporting

Other Daily Journal 10-Ks

  • FY2025 10-K risk factors
    19 risks3 new5 dropped8 reworded

    Circulation revenue dropped by $0.2 million to 4% due to paper declines, offset slightly by digital.

    Filed Dec 29, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.