Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 605, Revenue Recognition (ASC 605) and related authoritative guidance. The primary source of the Companys revenue is fees paid by its clients under subscription agreements. The Company believes the subscription component of its patent risk management solution comprises a single deliverable. The Company recognizes each subscription fee ratably over the period for which the fee applies. Revenue is recognized net of any discounts or other contractual incentives. The Company starts recognizing revenue when all of the following criteria have been met:  Persuasive evidence of an arrangement exists. All subscription fees are supported by an executed subscription agreement.  Delivery has occurred or services have been rendered. The subscription agreement calls for the Company to provide its patent risk management solution over a specific term commencing on the agreement effective date. Because services are not on an individualized basis ( i.e. , the Company generally performs its services on behalf of all of its clients as opposed to each client individually), delivery occurs automatically with the passage of time. Consequently, the Company recognizes subscription revenue ratably.  Sellers price to the buyer is fixed or determinable. Each clients annual subscription fee is typically based on the Companys rate card in effect at the time of the clients initial agreement. A clients subscription fee is generally determined using the applicable rate card and its normalized operating income, which is defined as the greater of (i) the average of its operating income for the three most recently reported fiscal years and (ii) 5% of its revenue for the most recently reported fiscal year. The fee for the first year of the agreement is typically determined and invoiced at the time of contract execution. The fee for each subsequent year of the agreement is generally c