Note G – Goodwill

The following is a roll-forward of goodwill from year-end 2011 to the end of the third quarter 2012:

	Industrial Hardware Segment		Security Products Segment		Metal Products Segment		Total

Beginning balance	$	2,071,393	$	11,833,816	$	-	$	13,905,209
Foreign exchange		43,367		-		-		43,367
Ending balance	$	2,114,760	$	11,833,816	$	-	$	13,948,576

During the third quarter of 2012 the Company decided to change its annual impairment testing from the second quarter of its fiscal year to the fourth quarter of its fiscal year. The Company completed a qualitative analysis in the second quarter of 2012 and determined it is more likely than not that no impairment of goodwill existed at that time. The Company will perform another qualitative analysis in the fourth quarter of 2012 and will then perform future annual qualitative analyses in the fourth quarter of subsequent years. Additionally, the Company will perform interim analysis whenever conditions warrant. The Company discussed this change in accounting principle with its Independent Registered Public Accounting Firm and have attached their Preference Letter as an exhibit to this Form 10-Q.