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

9 Months Ended

Jun. 30, 2012

Stockholders' Equity Note Disclosure [Text Block]

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

Under the Employee Plans there are no options currently available for grant and there are no options outstanding at June 30, 2012.

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. Non-qualified stock options may be granted at such exercise price and such other terms and conditions as the Compensation Committee of the Board of Directors may determine. No options may be granted at a price less than $2.925. Options for 26,850 Class A shares were outstanding at September 30, 2011 and 41,500 shares at June 30, 2011 at prices ranging from $3.125 to $5.00 per share. Options for 26,850 shares at $3.55 per share expired during the three month period ended March 31, 2012. Options for 800 shares at a price of $3.55 per share were canceled during the three month period ended June 30, 2011. Options for 13,850 shares at prices ranging from $3.125 to $3.55 per share expired during the three month period ended December 31, 2010. No other options were granted, exercised, canceled or expired during the three or nine month periods presented under the Employee Plans.

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 42,000 Class A shares were outstanding at June 30, 2012 (38,000 shares at September 30, 2011 and 38,000 shares at June 30, 2011) at prices ranging from $2.925 to $11.00 per share. Options for 8,000 shares at prices ranging from $2.925 to $11.00 were canceled during the three month period ended June 30, 2011. Options for 7,000 and 5,000 shares were granted under the Directors Plans during each of the three month periods ended March 31, 2012 and March 31, 2011, at a price of $2.925 per share. In addition, options for 3,000 shares expired during the three month periods ended March 31, 2012 and March 31, 2011, at $3.55 and $4.25 per share respectively. All outstanding options under the Directors Plans become fully exercisable on March 8, 2015.

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 June 30, 2012:

Employee Plans	Outstanding Stock Options Exercisable		Weighted Average Share Price		Weighted Average Remaining Life
Range of exercise prices:
$-		-	$	-		-
		-	$	-

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		23,000	$	3.43		6.8		12,667	$	3.84
	6.00	-	7.25		11,000	$	6.46		4.8		9,333	$	6.55
	10.50	-	11.00		8,000	$	10.75		5.3		8,000	$	10.75
					42,000	$	5.62				30,000	$	6.52

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 three and the nine month periods ended June 30, 2012 and June 30, 2011 respectively $2,841 and $8,547 ; $2,865 and $9,750 was expensed as share-based compensation. The following weighted-average assumptions were used in the option pricing model for the three and nine month periods ended June 30, 2012 and 2011 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 .87 and .75.

Unissued shares of Class A common stock (1,008,170 shares) are reserved for the share-for-share conversion rights of the Class B common stock, stock options under the Directors Plans and conversion rights of the Convertible Promissory Notes.