Revenue Recognition: The Company recognizes revenues in accordance with the provisions of ASU No. 2014 - 09, Revenue from Contracts with Customers (ASC Topic 606 ) , which it adopted effective October 1, 2017, using the modified retrospective method. For the Traditional Business, proceeds from the sale of subscriptions for newspapers, court rule books and other publications and other services are recorded as deferred revenue and are included in earned revenue only when the services are provided, generally over the subscription term. Advertising revenues are recognized when advertisements are published and are net of agency commissions. Journal Technologies contracts may include several products and services, which are generally distinct and include separate transaction pricing and performance obligations. Most are one -transaction contracts. These current subscription-type contract revenues include (i) implementation consulting fees to configure the system to go-live, (ii) subscription software license, maintenance (including updates and upgrades) and support fees, and (iii) third -party hosting fees when used. Revenues for consulting are recognized at point of delivery (go-live) upon completion of services. These contracts include assurance warranty provisions for limited periods and do not include financing terms. For some contracts, the Company acts as a principal with respect to certain services, such as data conversion, interfaces and hosting that are provided by third -parties, and recognizes such revenues on a gross basis. For legacy contracts with perpetual license arrangements, licenses and consulting services are recognized at point of delivery (go-live), and maintenance revenues are recognized ratably after the go-live. Other public service fees are earned and recognized as revenues when the Company processes credit card payments on behalf of the courts via its websites through which the public can efile cases and pay traffic citations and other fees. The adoption of ASC 606 also requires the capitalization of certain costs of obtaining contracts, specifically sales commissions which are to be amortized over the expected term of the contracts. For its software contracts, the Company incurs an immaterial amount of sales commission costs which have no significant impact on the Companys financial condition and results of operations. In addition, the Companys implementation and fulfillment costs do not meet all criteria required for capitalization. Since the Company recognizes revenues when it can invoice the customer pursuant to the contract for the value of completed performance, as a practical expedient and because reliable estimates cannot be made, it has elected not to include the transaction price allocated to unsatisfied performance obligations. Also, as a practical expedient, the Company has elected not to include its evaluation of variable consideration of certain usage based fees (i.e. public service fees) that are included in some contracts. Furthermore, there are no fulfillment costs to be capitalized for the software contracts because these costs do not generate or enhance resources that will be used in satisfying future performance obligations. Approximately 65%, 58% and 58% of the Companys revenues in fiscal 2019, 2018 and 2017, respectively, were derived from sales of software licenses, annual software licenses, maintenance and support agreements and consulting services that typically include implementation and training. The change in allowance for doubtful accounts is as follows: Allowance for Doubtful Accounts Description Balance at Beginning of Year Additions Charged to Costs and Expenses Accounts Charged off less Recoveries Balance at End of Year Fiscal 2019 Allowance for doubtful accounts $ 200,000 $ 8,000 $ (8,000 ) $ 200,000 Fiscal 2018 Allowance for doubtful accounts $ 200,000 $ 6,000 $ (6,000 ) $ 200,000 Fiscal 2017 Allowance for doubtful accounts $ 200,000 $ 33,000 $ (33,000 ) $ 200,000