Quarterly report pursuant to Section 13 or 15(d)

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2013

Nature Of Business And Summary Of Significant Accounting Policies Tables

The fair value of each stock option grant on the date of grant is estimated using the Black-Scholes option-pricing utilizing the following weighted average assumptions:

NINE MONTHS ENDED SEPTEMBER 30,

2013

2012

Risk-free interest rates

Expected option life in years

Expected stock price volatility

Expected dividend yield

0.78% -1.24%

5 years

43.54% - 44.31%

-0-

0.71%-0.89%

5 years

45.86%

- 0 -

Schedule Earnings Per Share

Computations of basic and diluted weighted average common shares outstanding are as follows:

	Nine Months Ended September 30,		Three Months Ended September 30,
	2013	2012	2013	2012

Weighted-average common shares outstanding – basic	25,387,348	25,659,085	25,792,387	25,963,093
Dilutive effect of options and warrants	2,075,010	2,885,887	2,397,196	2,553,549
Weighted-average common shares outstanding – diluted	27,462,358	28,544,972	28,189,583	28,516,642
Options and Warrants excluded from the computation of diluted income (loss) per share because the effect of inclusion would have been anti-dilutive	5,132,490	2,574,113	4,810,304	2,906,451

Schedule of Cash and Cash Equivalents

Cash and cash equivalents as of September 30, 2013 and December 31, 2012 are composed of:

	September 30, 2013	December 31, 2012

Cash	$ 1,823,000	$ 1,346,000
Money market fund	17,761,000	20,637,000
Total	$ 19,584,000	$ 21,983,000

Schedule of Investment

At September 30, 2013, the Company’s investment in Lifestream consists of the following:

	Number of Shares	Value
Common Stock	250,000	$ 76,000
Series A Preferred Stock	123,456	50,000
Warrants	1,305,000	70,000
		$ 196,000