7. Capital Transactions:

6 Months Ended

Jun. 30, 2014

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. The Company did not purchase any shares during the three and six months ended June 30, 2014.

During the six months ended June 30, 2014, 25,000 employee stock options expired in June 2014 with an exercise price of $4.04, and 60,000 stock options were cancelled in January 2014 at an exercise price of $3.05 with the passing of Director Leonard M. Leiman . At June 30, 2014, there are 265,000 outstanding options at a weighted average exercise price of $3.02, which were fully vested and exercisable. As of June 30, 2014, there were no unrecognized compensation costs.