REPORTABLE SEGMENTS

Operating segments are defined as components of an enterprise which has discrete financial information that is evaluated regularly by the Company’s Chief Executive Officer to decide how to allocate resources and to access performance.

In accordance with ASC

280

10,

Segment Reporting

, the Company has

two

segments of business. The Company’s reportable segments are: (i) the Traditional Business and (ii) Journal Technologies. All inter-segment transactions were eliminated.

Summarized financial information concerning the Company

’s reportable segments and Corporate income and expenses is shown in the following table:

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Fiscal 2017
Revenues
Advertising, net	$	9,104,000		$	---		$	---		$	9,104,000
Circulation		5,654,000			---			---			5,654,000
Advertising service fees and other		2,812,000			---			---			2,812,000
Licensing and maintenance fees		---			16,037,000			---			16,037,000
Consulting fees		---			4,476,000			---			4,476,000
Other public service fees		---			3,301,000			---			3,301,000
Operating expenses		17,852,000			36,699,000			---			54,551,000
Loss from operations		(282,000	)		(12,885,000	)		---			(13,167,000	)
Dividends and interest income		---			---			4,844,000			4,844,000
Other income		22,000			---			12,000			34,000
Interest expense on note payable collateralized by real estate		(100,000	)		---			---			(100,000	)
Interest expense on margin loans		---			---			(422,000	)		(422,000	)
Interest and penalty expense reversal for uncertain and unrecognized tax benefits		---			743,000			---			743,000
Pretax (loss) income		(360,000	)		(12,142,000	)		4,434,000			(8,068,000	)
Income tax benefit (expense)		(2,000	)		7,910,000			(758,000	)		7,150,000
Net (loss) income		(362,000	)		(4,232,000	)		3,676,000			(918,000	)
Total assets		17,474,000			33,461,000			229,265,000			280,200,000
Capital expenditures		160,000			93,000			---			253,000
Amortization of intangible assets		---			4,895,000			---			4,895,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Fiscal 2016
Revenues
Advertising, net	$	9,854,000		$	---		$	---		$	9,854,000
Circulation		5,912,000			---			---			5,912,000
Advertising service fees and other		2,651,000			---			---			2,651,000
Licensing and maintenance fees		---			14,758,000			---			14,758,000
Consulting fees		---			4,085,000			---			4,085,000
Other public service fees		---			4,352,000			---			4,352,000
Operating expenses		17,240,000			31,012,000			---			48,252,000
Income (loss) from operations		1,177,000			(7,817,000	)		---			(6,640,000	)
Dividends and interest income		---			---			4,085,000			4,085,000
Other income		52,000			---			9,000			61,000
Interest expense on note payable collateralized by real estate		(88,000	)		---			---			(88,000	)
Interest expense on margin loans		---			---			(284,000	)		(284,000	)
Interest expense accrued for uncertain and unrecognized tax benefits		---			(112,000	)		---			(112,000	)
Pretax income (loss)		1,141,000			(7,929,000	)		3,810,000			(2,978,000	)
Income tax benefit (expense)		(530,000	)		3,140,000			(675,000	)		1,935,000
Net income (loss)		611,000			(4,789,000	)		3,135,000			(1,043,000	)
Total assets		19,026,000			39,786,000			166,634,000			225,446,000
Capital expenditures, including purchase of Logan building		3,662,000			117,000			---			3,779,000
Amortization of intangible assets		142,000			4,895,000			---			5,037,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Fiscal 2015
Revenues
Advertising, net	$	10,502,000		$	---		$	---		$	10,502,000
Circulation		5,915,000			---			---			5,915,000
Advertising service fees and other		2,703,000			---			---			2,703,000
Licensing and maintenance fees		---			13,984,000			---			13,984,000
Consulting fees		---			4,704,000			---			4,704,000
Other public service fees		---			6,170,000			---			6,170,000
Operating expenses		18,038,000			29,452,000			---			47,490,000
Income (loss) from operations		1,082,000			(4,594,000	)		---			(3,512,000	)
Dividends and interest income		---			---			3,829,000			3,829,000
Other income and capital gains		---			---			69,000			69,000
Interest expense on margin loans		---			---			(224,000	)		(224,000	)
Interest expense accrued for uncertain and unrecognized tax benefits		---			(96,000	)		---			(96,000	)
Other-than-temporary impairment losses on investments		---			---			(376,000	)		(376,000	)
Pretax income (loss)		1,082,000			(4,690,000	)		3,298,000			(310,000	)
Income tax benefit (expense)		(70,000	)		1,580,000			(390,000	)		1,120,000
Net income (loss)		1,012,000			(3,110,000	)		2,908,000			810,000
Total assets		15,047,000			47,108,000			166,041,000			228,196,000
Capital expenditures		425,000			140,000			---			565,000
Amortization of intangible assets		12,000			4,895,000			---			4,907,000