7. Capital Transactions:

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

7. Capital Transactions:

On January 23, 2008, the Board of Directors of the Company authorized a buy back of up to 300,000 shares of common stock. Under this program, shares are purchased from time to time, at management’s discretion, in the open market and in private transactions. The Company purchased 9,906 shares at a cost of $16,000 (average price per share of $1.56) in the first quarter of 2013.

There are no stock option transactions during the three months ended March 31, 2013. At March 31, 2013, there are 400,000 outstanding options at a weighted average exercise price of $3.33, which were fully vested and exercisable. As of March 31, 2013, there were no unrecognized compensation costs.