Revenue Recognition The Company derives substantially all of its revenue from contract subscription fees for use of its applications. The Company recognizes revenues in accordance with ASC 605, and accordingly revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, collectability is reasonably assured and acceptance criteria, if any, have been met. If any of these criteria are not met, revenue recognition is deferred until such time that all of the criteria are met. The Companys subscription arrangements do not provide customers with the right to take possession of the software at any time. Subscription Revenue Subscription revenue is recognized ratably over the initial subscription period committed by the customer commencing when the customers environment has been created in the Companys hosted environment. The initial subscription period is typically one to three years and the level of service provided each customer varies based on the level of service required by the complexity of a customers business. The level of service also specifies the level of usage by the customer in terms of minutes or data used to transmit the notifications. In the event actual usage exceeds the level purchased, overages are invoiced and are recorded as revenue during the service period. The subscription services are noncancelable, although customers have the right to terminate their contracts if the Company materially fails to perform. The Company generally invoices the Companys customers in advance in annual installments for the subscription fees, including the set-up fees on the first annual invoice. Other Revenue The Company recognizes revenue for set-up fees, which historically have not been material to the Companys financial statements. The Company has concluded that set-up fees do not meet the criteria for separation from the Companys primary service as they do not have stand-alone value as the Company has historically not sold set-up fees separat