(5)

Revenue

Revenue is comprised of the following:


	Three months ended March 31,
	2017		2018
Commercial advertising	$	47,549,822	$	47,702,470
Digital advertising		3,183,127		3,208,539
Other		3,007,602		4,242,618

	$	53,740,551	$	55,153,627

The Company recognizes revenue when it satisfies a performance obligation under a contract with an advertiser. The transaction price is allocated to performance obligations based on executed contracts which represent relative standalone selling prices. Payment is generally due within 30 days although certain advertisers are required to pay in advance. Revenues are reported at the amount the Company expects to be entitled to receive under the contract. The Company has elected to use the practical expedient to expense sales commissions as incurred. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue in the balance sheet. Substantially all deferred revenue is recognized within twelve months of the payment date. Deferred revenue was $1.9 million and $3.0 million as of December 31, 2017 and March 31, 2018, respectively. Losses on receivables from contracts with advertisers were $0.1 million and $0.2 million for the three months ended March 2017 and 2018, respectively.

Commercial advertising includes revenue from the sale or trade of commercial spots to advertisers directly or through national, regional or local advertising agencies. Commercial spots may be aired or streamed. Each commercial spot is considered a performance obligation. Revenue is recognized when the commercial spots have aired or streamed. Trade sales are recorded at the estimated fair value of the goods or services received. If commercial spots are aired or streamed before the goods or services are received then a trade sales receivable is recorded. If goods or services are received before the commercial spots are aired or streamed then a trade sales payable is recorded. Trade sales revenue was $2.6 million and $1.9 million for the three months ended March 31, 2017 and 2018, respectively. Trade sales receivable was $1.6 million and $1.7 million as of December 31, 2017 and March 31, 2018, respectively. Trade sales payable was $1.3 million as of both December 31, 2017 and March 31, 2018.

Digital advertising includes revenue from the sale of streamed commercial spots station-owned assets and third party products. Each station-owned asset and third party product is considered a performance obligation. Station-owned assets are generally scheduled over a period of time and revenue is recognized over time as the digital items are used for advertising content. Third-party products are generally scheduled over a period of time with an impression target each month. Revenue from the sale of third-party products is recognized over time as the digital items are used for advertising content and impression targets are met each month.

Other revenue includes revenue from concerts, promotional events, talent fees and other miscellaneous items. Revenue is generally recognized when the event is completed, as the promotional events are completed, or as the talent services are completed.