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 months ended December 31, 2018
Revenues
Advertising	$	2,192,000		$	---		$	---		$	2,192,000
Circulation		1,338,000			---			---			1,338,000
Advertising service fees and other		669,000			---			---			669,000
Licensing and maintenance fees		---			4,790,000			---			4,790,000
Consulting fees		---			541,000			---			541,000
Other public service fees		---			898,000			---			898,000
Operating expenses		4,208,000			8,741,000			---			12,949,000
Loss from operations		(9,000	)		(2,512,000	)		---			(2,521,000	)
Dividends and interest income		---			---			1,530,000			1,530,000
Other income		---			---			10,000			10,000
Net unrealized losses on investments		---			---			(28,640,000	)		(28,640,000	)
Interest expenses on note payable collateralized by real estate		(23,000	)		---			---			(23,000	)
Interest expenses on margin loans		---			---			(206,000	)		(206,000	)
Pretax (loss) income		(32,000	)		(2,512,000	)		(27,306,000	)		(29,850,000	)
Income tax benefit (expense)		80,000			585,000			7,652,000			8,317,000
Net income (loss)		48,000			(1,927,000	)		(19,654,000	)		(21,533,000	)
Total assets		18,702,000			30,571,000			185,843,000			235,116,000
Capital expenditures		50,000			34,000			---			84,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three months 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
Other income and capital gains		---			---			11,000			11,000
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		17,259,000			26,768,000			245,863,000			289,890,000
Capital expenditures		34,000			---			---			34,000
Amortization of intangible assets		---			1,062,000			---			1,062,000

During the

three

months ended

December 31, 2018,

the Traditional Business had total revenues of

$4,199,000

of which

$2,861,000

were recognized, at a point of time, after services were provided and

$1,338,000

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

$6,229,000

of which

$1,935,000

were recognized upon completion of services with customer acceptance while

$4,294,000

were recognized ratably over the subscription periods.

Approximately

60%

of the Company’s revenues during the

three

-month periods ended

December 31, 2018

were derived from Journal Technologies, as compared with

60%

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, 2018

through

December 31, 2018:

	Beginning Balance		Addition		Recognized			Ending Balance

Deferred subscriptions	$	3,174,000	$	1,111,000	$	(1,338,000	)	$	2,947,000
Deferred installation contracts		2,554,000		925,000		(1,037,000	)		2,442,000
Deferred maintenance agreements and others		14,362,000		4,662,000		(4,294,000	)		14,730,000