Quarterly report pursuant to Section 13 or 15(d)

Condensed Statements of Income and Comprehensive Income (Unaudited)

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Condensed Statements of Income and Comprehensive Income (Unaudited) (USD $)
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Condensed Statements Of Income And Comprehensive Income        
ROYALTY REVENUE $ 1,367,000 $ 1,227,000 $ 11,024,000 $ 7,198,000
COST OF REVENUE 337,000 345,000 3,157,000 2,117,000
GROSS PROFIT 1,030,000 882,000 7,867,000 5,081,000
OPERATING EXPENSES:        
General and administrative 668,000 738,000 1,881,000 1,933,000
Depreciation and Amortization 408,000 418,000 1,226,000 668,000
Non-cash compensation 45,000 70,000 207,000 326,000
TOTAL OPERATING EXPENSES 1,121,000 1,226,000 3,314,000 2,927,000
OPERATING INCOME (LOSS) (91,000) (344,000) 4,553,000 2,154,000
OTHER INCOME (EXPENSES):        
Interest income, net 8,000 9,000 29,000 27,000
INCOME (LOSS) BEFORE INCOME TAXES (83,000) (335,000) 4,582,000 2,181,000
INCOME TAXES (BENEFIT)        
Current (12,000) (3,000) 90,000 23,000
Deferred (35,000) (124,000) 1,531,000 192,000
Total Income Taxes (Benefits) (47,000) (127,000) 1,621,000 215,000
NET INCOME (LOSS) (36,000) (208,000) 2,961,000 1,966,000
Net Income per share        
Basic $ 0.00 $ (0.01) $ 0.12 $ 0.08
Diluted $ 0.00 $ (0.01) $ 0.11 $ 0.07
Weighted average number of common shares outstanding:        
Basic 24,942,874 25,792,387 25,396,573 25,387,348
Diluted 24,942,874 28,189,583 27,610,979 27,462,358
NET INCOME (LOSS) (36,000) (208,000) 2,961,000 1,966,000
OTHER COMPREHENSIVE LOSS NET OF TAX:        
Unrealized loss arising during period (5,000) (1,000) (15,000) (15,000)
COMPREHENSIVE INCOME (LOSS) $ (41,000) $ (209,000) $ 2,946,000 $ 1,951,000