Note

- Operating Segments

The Company

’s reportable segments are: (i) the Traditional Business and (ii) Journal Technologies. All inter-segment transactions were eliminated. Summarized financial information regarding the Company’s reportable segments is shown in the following table:

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three m onths ended December 31, 2017
Revenues
Advertising	$	2,116,000		$	---		$	---		$	2,116,000
Circulation		1,363,000			---			---			1,363,000
Advertising service fees and other		602,000			---			---			602,000
Licensing and maintenance fees		---			4,350,000			---			4,350,000
Consulting fees		---			995,000			---			995,000
Other public service fees		---			826,000			---			826,000
Operating expenses		4,314,000			9,383,000			---			13,697,000
Loss from operations		(233,000	)		(3,212,000	)		---			(3,445,000	)
Dividends and interest income		---			---			1,483,000			1,483,000
Gain on sale of capital asset		---			---			2,000			2,000
Other income		---			---			9,000			9,000
Interest expenses on note payable collateralized by real estate		(24,000	)		---			---			(24,000	)
Interest expenses on margin loans		---			---			(136,000	)		(136,000	)
Pretax (loss) income		(257,000	)		(3,212,000	)		1,358,000			(2,111,000	)
Income tax benefit (expense)		(680,000	)		(2,185,000	)		19,715,000			16,850,000
Net income (loss)		(937,000	)		(5,397,000	)		21,073,000			14,739,000
Total assets		18,188,000			26,768,000			244,934,000			289,890,000
Capital expenditures		34,000			---			---			34,000
Amortization of intangible assets		---			1,062,000			---			1,062,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three months ended December 31, 2016
Revenues
Advertising	$	2,310,000		$	---		$	---		$	2,310,000
Circulation		1,449,000			---			---			1,449,000
Advertising service fees and other		638,000			---			---			638,000
Licensing and maintenance fees		---			3,966,000			---			3,966,000
Consulting fees		---			848,000			---			848,000
Other public service fees		---			779,000			---			779,000
Operating expenses		4,400,000			8,443,000			---			12,843,000
Loss from operations		(3,000	)		(2,850,000	)		---			(2,853,000	)
Dividends and interest income		---			---			1,171,000			1,171,000
Other income		15,000			---			---			15,000
Interest e xpenses on note payable collateralized by real estate		(26,000	)		---			---			(26,000	)
Interest expenses on margin loans		---			---			(79,000	)		(79,000	)
Interest expense accrued for uncertain and unrec ognized tax benefits		---			(9,000	)		---			(9,000	)
Pretax income (loss)		(14,000	)		(2,859,000	)		1,092,000			(1,781,000	)
Income tax (expense) benefit		---			775,000			(465,000	)		310,000
Net income (l oss)		(14,000	)		(2,084,000	)		627,000			(1,471,000	)
Total assets		14,294,000			37,981,000			196,486,000			248,761,000
Capital expenditures		160,000			27,000			---			187,000
Amortization of intangible assets		---			1,224,000			---			1,224,000

During the

three

months ended

December 31, 2017,

the Traditional Business had total revenues of

$4,081,000

of which

$2,718,000

were recognized after services were provided and

$1,363,000

were recognized ratably over the subscription terms. Total revenues for the Company’s software business were

$6,171,000

of which

$2,064,000

were recognized upon completion of services with customer acceptance while

$4,107,000

were recognized ratably over the subscription periods.

Approximately

60%

of the Company’s revenues during the

three

-month periods ended

December 31, 2017

were derived from Journal Technologies, as compared with

56%

in the prior year period. In addition, the Company’s revenues have been primarily from the United States with approximately

from foreign countries. Journal Technologies’ revenues are all from governmental agencies.

The following table sets forth certain deferred obligations from

October 1, 2017

through

December 31, 2017:

	Beginning Bal ance		Addition		Recognized			Ending Balance

Deferred subscriptions	$	3,284,000	$	1,214,000	$	(1,363,000	)	$	3,135,000
Deferred installation contracts		5,072,000		530,000		(1,238,000	)		4,364,000
Deferred maintenance agreements and others		9,442,000		4,705,000		(4,107,000	)		10,040,000