7. Capital Transactions:

9 Months Ended

Sep. 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. During the nine months ended September 30, 2014, there were no shares purchased.

During the nine months ended September 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 September 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 September 30, 2014, there was no unrecognized compensation cost.