Note 6 - Capital Stock, Treasury Stock, Contributed Capital and Stock Options

14 Months Ended

Dec. 31, 2011

Stockholders' Equity Note Disclosure [Text Block]

6. Capital Stock, Treasury Stock, Contributed Capital and Stock Options

Under the Company's Key Employees Stock Option Plans (collectively the "Employee Plans"), incentive stock options, in general, are exercisable for up to ten years, at an exercise price of not less than the market price on the date the option is granted. Under the Employee Plans there are no options currently available for grant. Options for 26,850 Class A shares were outstanding at December 31, 2011 (26,850 shares at September 30, 2011 and 27,650 shares at December 31, 2010) at prices ranging from $3.125 to $3.55 per share. Options for 13,850 at a price of $3.125 per share expired during the three month period ended December 31, 2010. No other options were granted, exercised or canceled during the three month periods presented under the Employee Plans. All options granted under the Employee Plans are exercisable at December 31, 2011.

The Company's Outside Directors Stock Option Plans (collectively the "Directors Plans"), provide for the automatic grant of options to purchase up to 38,000 shares of Class A Common Stock to members of the Board of Directors who are not employees of the Company, at the fair market value on the date of grant. Options for 38,000 Class A shares were outstanding at December 31, 2011 (38,000 shares at September 30, 2011 and 44,000 shares at December 31, 2010) at prices ranging from $2.925 to $11.00 per share. All outstanding options under the Directors Plans become fully exercisable on February 24, 2014.

The following is a summary of the range of exercise prices for stock options outstanding and exercisable under the Employee Plans and the Directors Plans at December 31, 2011:

Employee Plans	Outstanding Stock Options Exercisable		Weighted Average Share Price		Weighted Average Remaining Life
Range of exercise prices:
$3.55		26,850	$	3.55		.3
		26,850	$	3.55

Directors Plans	Outstanding Stock Options		Weighted Average Share Price		Weighted Average Remaining Life		Number of Stock Options  Exercisable		Weighted Average Share Price
Range of exercise prices:
$2.925 - $5.25		19,000	$	3.63		5.1		12,667	$	3.98
$6.00 - $7.25		11,000	$	6.46		5.3		7,667	$	6.67
$10.50 - $11.00		8,000	$	10.75		5.8		8,000	$	10.75
		38,000	$	5.95				28,334	$	6.62

The Company accounts for Share-Based Payments under the modified prospective method for its stock options for both employees and non-employee Directors. Compensation cost for fixed based awards are measured at the grant date, and the Company uses the Black-Scholes option pricing model to determine the fair value estimates for recognizing the cost of employee and director services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. Employee stock options are immediately exercisable while Director's stock options are exercisable over a three year period. The fair value of stock option grants to Directors is amortized over the three year vesting period. During the quarter ended December 31, 2011 $2,865 was expensed as share-based compensation. During the quarter ended December 31, 2010 $4,020 was expensed as share-based compensation. The following weighted-average assumptions were used in the option pricing model for the three month periods ended December 31, 2011 and 2010 respectively: a risk free interest rate of 5.5% and 5.5%; an expected life of 10 and 10 years; an expected dividend yield of 0.0% and 0.0%; and a volatility factor of .75 and .75.

Unissued shares of Class A common stock (1,031,020 shares) are reserved for the share-for-share conversion rights of the Class B common stock, stock options under the Employee Plans and the Directors Plans and conversion rights of the Convertible Promissory Notes.