7. Capital Transactions:

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

7. Capital Transactions:

On January 22, 2008, the Board of Directors of the Company authorized a buy back of up to 300,000 shares of common stock. Shares will be purchased from time to time, at management’s discretion, in the open market and in private transactions. During the nine months ended September 30, 2013, the Company purchased 12,266 shares at an average price of $1.56.

During the three months ended September 30, 2013, 25,000 shares of options at weighted average exercise price of $5.06 expired. At September 30, 2013, there are 375,000 outstanding options at a weighted average exercise price of $3.21, which were fully vested and exercisable. As of September 30, 2013, there was no unrecognized compensation cost.