Note 10 - Operating Segments The Companys reportable segments are: (i) the Traditional Business and (ii) Journal Technologies. All inter-segment transactions were eliminated. Summarized financial information regarding the Companys reportable segments is shown in the following table: Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Six months ended March 31, 2020 Revenues Advertising $ 4,118,000 $ --- $ --- $ 4,118,000 Circulation 2,598,000 --- --- 2,598,000 Advertising service fees and other 1,348,000 --- --- 1,348,000 Licensing and maintenance fees --- 10,715,000 --- 10,715,000 Consulting fees --- 1,918,000 --- 1,918,000 Other public service fees --- 3,336,000 --- 3,336,000 Operating expenses 7,906,000 18,743,000 --- 26,649,000 Income (loss) from operations 158,000 (2,774,000 ) --- (2,616,000 ) Dividends and interest income --- --- 2,977,000 2,977,000 Other income --- --- 3,000 3,000 Net unrealized losses on investments --- --- (57,680,000 ) (57,680,000 ) Interest expenses on note payable collateralized by real estate (43,000 ) --- --- (43,000 ) Interest expenses on margin loans and others --- --- (337,000 ) (337,000 ) Pretax income (loss) 115,000 (2,774,000 ) (55,037,000 ) (57,696,000 ) Income tax (expense) benefit (30,000 ) 925,000 14,685,000 15,580,000 Net income (loss) 85,000 (1,849,000 ) (40,352,000 ) (42,116,000 ) Total assets 16,074,000 19,578,000 139,083,000 174,735,000 Capital expenditures 99,000 69,000 --- 168,000 Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Six months ended March 31, 2019 Revenues Advertising $ 4,300,000 $ --- $ --- $ 4,300,000 Circulation 2,611,000 --- --- 2,611,000 Advertising service fees and other 1,293,000 --- --- 1,293,000 Licensing and maintenance fees --- 9,430,000 --- 9,430,000 Consulting fees --- 940,000 --- 940,000 Other public service fees --- 2,566,000 --- 2,566,000 Operating expenses 8,348,000 17,984,000 --- 26,332,000 Loss from operations (144,000 ) (5,048,000 ) --- (5,192,000 ) Dividends and interest income --- --- 2,671,000 2,671,000 Other income --- --- 19,000 19,000 Net unrealized losses on investments --- --- (20,143,000 ) (20,143,000 ) Interest expenses on note payable collateralized by real estate (45,000 ) --- --- (45,000 ) Interest expenses on margin loans --- --- (425,000 ) (425,000 ) Pretax loss (189,000 ) (5,048,000 ) (17,878,000 ) (23,115,000 ) Income tax benefit 115,000 1,300,000 5,185,000 6,600,000 Net loss (74,000 ) (3,748,000 ) (12,693,000 ) (16,515,000 ) Total assets 17,399,000 31,710,000 194,354,000 243,463,000 Capital expenditures 50,000 34,000 --- 84,000 Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Three months ended March 31, 2020 Revenues Advertising $ 1,992,000 $ --- $ --- $ 1,992,000 Circulation 1,286,000 --- --- 1,286,000 Advertising service fees and other 654,000 --- --- 654,000 Licensing and maintenance fees --- 5,505,000 --- 5,505,000 Consulting fees --- 1,229,000 --- 1,229,000 Other public service fees --- 1,690,000 --- 1,690,000 Operating expenses 3,908,000 9,546,000 --- 13,454,000 Income (loss) from operations 24,000 (1,122,000 ) --- (1,098,000 ) Dividends and interest income --- --- 1,297,000 1,297,000 Net unrealized losses on investments --- --- (77,211,000 ) (77,211,000 ) Interest expenses on note payable collateralized by real estate (21,000 ) --- --- (21,000 ) Interest expenses on margin loans and others --- --- (153,000 ) (153,000 ) Pretax income (loss) 3,000 (1,122,000 ) (76,067,000 ) (77,186,000 ) Income tax benefit --- 415,000 20,445,000 20,860,000 Net income (loss) 3,000 (707,000 ) (55,622,000 ) (56,326,000 ) Total assets 16,074,000 19,578,000 139,083,000 174,735,000 Capital expenditures 64,000 7,000 --- 71,000 Reportable Segments Traditional Business Journal Technologies Corporate income and expenses Total Three months ended March 31, 2019 Revenues Advertising $ 2,108,000 $ --- $ --- $ 2,108,000 Circulation 1,273,000 --- --- 1,273,000 Advertising service fees and other 624,000 --- --- 624,000 Licensing and maintenance fees --- 4,640,000 --- 4,640,000 Consulting fees --- 399,000 --- 399,000 Other public service fees --- 1,668,000 --- 1,668,000 Operating expenses 4,140,000 9,243,000 --- 13,383,000 Loss from operations (135,000 ) (2,536,000 ) --- (2,671,000 ) Dividends and interest income --- --- 1,141,000 1,141,000 Other income --- --- 9,000 9,000 Net unrealized gains on investments --- --- 8,497,000 8,497,000 Interest expenses on note payable collateralized by real estate (22,000 ) --- --- (22,000 ) Interest expenses on margin loans --- --- (219,000 ) (219,000 ) Pretax income (loss) (157,000 ) (2,536,000 ) 9,428,000 6,735,000 Income tax benefit (expense) 35,000 715,000 (2,467,000 ) (1,717,000 ) Net (loss) income (122,000 ) (1,821,000 ) 6,961,000 5,018,000 Total assets 17,399,000 31,710,000 194,354,000 243,463,000 Capital expenditures --- --- --- --- During the six months ended March 31, 2020, the Traditional Business had total revenues of $8,064,000 of which $5,466,000 were recognized, at a point of time, after services were provided, and $2,598,000 were recognized ratably over the subscription terms. Total revenues for the Journal Technologies software business were $15,969,000 of which $5,631,000 were recognized upon completion of services with customer acceptance, while $10,338,000 were recognized ratably over the license and maintenance periods. During the six months ended March 31, 2019, the Traditional Business had total revenues of $8,204,000 of which $5,593,000 were recognized, at a point of time, after services were provided, and $2,611,000 were recognized ratably over the subscription terms. Total revenues for the Companys software business were $12,936,000 of which $4,035,000 were recognized upon completion of services with customer acceptance, while $8,901,000 were recognized ratably over the license and maintenance periods. During the three months ended March 31, 2020, the Traditional Business had total revenues of $3,932,000 of which $2,646,000 were recognized, at a point of time, after services were provided, and $1,286,000 were recognized ratably over the subscription terms. Total revenues for the Journal Technologies software business were $8,424,000 of which $3,177,000 were recognized upon completion of services with customer acceptance, while $5,247,000 were recognized ratably over the license and maintenance periods. During the three months ended March 31, 2019, the Traditional Business had total revenues of $4,005,000 of which $2,732,000 were recognized, at a point of time, after services were provided, and $1,273,000 were recognized ratably over the subscription terms. Total revenues for the Companys software business were $6,707,000 of which $2,100,000 were recognized upon completion of services with customer acceptance, while $4,607,000 were recognized ratably over the subscription periods. Approximately 68% and 66% of the Companys revenues during the three - and six -month periods ended March 31, 2020 were derived from Journal Technologies, as compared with 63% and 61% in the prior year periods. In addition, the Companys revenues have been primarily from the United States with approximately 1% from foreign countries. Journal Technologies revenues are primarily from governmental agencies. The following table sets forth certain deferred obligations from October 1, 2019 through March 31, 2020: Beginning Balance Oct. 1, 2019 Addition Recognized Ending Balance March 31, 2020 Deferred subscriptions $ 3,195,000 $ 2,287,000 $ (2,598,000 ) $ 2,884,000 Deferred installation contracts 1,932,000 1,471,000 (2,295,000 ) 1,108,000 Deferred maintenance agreements and others 16,057,000 7,738,000 (10,338,000 ) 13,457,000