Note 6 - Treasury Stock and Net Income Per Common Share |
6 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Notes to Financial Statements | |
| Equity [Text Block] |
Note 6 - Treasury Stock and Net Income per Common Share
In June 2022, the Company received from Charles T. Munger 3,720 shares of Daily Journal common stock as his gracious personal gift (worth approximately $1 million on the date of the gift) for the purpose of establishing a new senior management equity incentive plan. These donated shares were considered treasury stock, and the Company accounted for them using the par method which had an immaterial effect on the amount on Treasury Stock and Additional Paid-in Capital. The number of outstanding shares of the Company was reduced by these 3,720 shares to reflect the actual number of outstanding shares of 1,377,026 at September 30, 2022. In July 2024, the Board approved the grant of 400 shares to the Company’s Chief Executive Officer, and these shares were transferred to him in December 2024. The net income per common share is based on the weighted average number of shares outstanding during each year. The shares used in the calculation were 1,377,268 and 1,377,026 for the six months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025 and 2024, the shares used in the calculation were 1,377,426 and 1,377,026, respectively, |