Daily Journal Corporation Responds to Buxton Helmsley's Claims

Daily Journal Corporation (the 'Company') received a letter from Alexander E. Parker at Buxton Helmsley USA, Inc., suggesting that the Company should capitalize software development costs instead of expensing them under GAAP, which would allegedly 'unlock $160+ million in incremental equity value' for shareholders. Mr. Parker requested a consulting engagement worth $24 million in Company equity and two seats on the Board of Directors. The Company disclosed that neither Mr. Parker nor Buxton Helmsley is registered as an investment adviser with the SEC or FINRA. The Company has been expensing software development costs for over a decade, and this practice has been reviewed by three different national accounting firms without issue. The Board and its Audit Committee decided to engage an independent accounting consultant to ensure the correctness of the accounting practices. Mr. Parker responded by reporting the Company to the SEC Enforcement Division and demanding the resignation of the CEO and CFO. The Company has reached out to the SEC staff to discuss the matter.