| þ   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |
|--------------------|----------------------------------------------------------------------------------------|

|  ̈   | TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |
|--------------------|---------------------------------------------------------------------------------|

| Delaware                                                      | 11-1719724                           |
|---------------------------------------------------------------|--------------------------------------|
| (State or Other Jurisdiction ofIncorporation or Organization) | (I.R.S. Employer Identification No.) |

----

| Large accelerated filer   | £                                                          |
|---------------------------|-----------------------------------------------------------------|
| Non-accelerated filer     | £  (Do not check if a smaller reporting company) |
| Accelerated filer         | £                                                          |
| Smaller reporting company | þ                                                          |

----

| Part I.  FINANCIAL INFORMATION | Page No.                                                                                                              |
|------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
|                                     |                                                                                                                  |   |
|                                     | Item 1 -  Condensed Financial Statements                                                                    |   |
|                                     |                                                                                                                  |   |
|                                     | Statements of Income - Three and Six Months ended June 30, 2009 and 2008 (unaudited)                                  | 2 |
|                                     |                                                                                                                  |   |
|                                     | Balance Sheets – June 30, 2009 (unaudited) and December 31, 2008                                                | 3-4 |
|                                     |                                                                                                                  |   |
|                                     | Statements of Cash Flows –  Six months ended June 30, 2009 and 2008 (unaudited)                       | 5 |
|                                     |                                                                                                                  |   |
|                                     | Notes to Financial Statements (unaudited)                                                                             | 6-13 |
|                                     |                                                                                                                  |   |
|                                     | Item 2 -    Management's Discussion and Analysis of Financial Condition and Results of Operations | 14-18 |
|                                     |                                                                                                                  |   |
|                                     | Item 3 -    Quantitative and Qualitative Disclosures About Market Risk                            | 18 |
|                                     |                                                                                                                  |   |
|                                     | Item 4T -  Controls and Procedures                                                                          | 18 |

|       | Item 1 - Legal Proceedings                                           | 19     |
|------------|----------------------------------------------------------------------|--------|
|       |                                                                 |   |
|       | Item 1A - Risk Factors                                               | 19     |
|       |                                                                 |   |
|       | Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds | 19     |
|       |                                                                 |   |
|       | Item 3 - Defaults Upon Senior Securities                             | 19     |
|       |                                                                 |   |
|       | Item 4 - Submission of Matters to a Vote of Security Holders         | 19     |
|       |                                                                 |   |
|       | Item 5 - Other Information                                           | 19     |
|       |                                                                 |   |
|       | Item 6 -    Exhibits and Reports On Form 8-K     | 19-20  |
|       |                                                                 |
| Signatures | 20                                                                   |

----

ITEM 1

|                                                                                                           |   | SIX MONTHS ENDED JUNE 30, |      |   | THREE MONTHS ENDED JUNE 30, |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------|--------|----------------------------------|--------|
|                                                                                                           |   | 2009                           |      |   | 2008                             |   |   | 2009 |   |   | 2008 |   |
|                                                                                                           |   |                           |      |   |                             |   |   |   |   |   |   |   |
| Net sales                                                                                                      |   | $                              | 6,888,287 |   |                             | $      | 6,002,238 |   |   | $ | 2,993,144 |   |   | $ | 2,971,039 |   |
|                                                                                                           |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses:                                                                                            |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                                                                  |   |                           | 2,819,916 |   |                             |   | 2,537,179 |   |   |   | 1,273,597 |   |   |   | 1,299,996 |   |
| Operating expenses                                                                                             |   |                           | 1,397,382 |   |                             |   | 1,351,632 |   |   |   | 687,397 |   |   |   | 692,320 |   |
|                                                                                                           |   |                           | 4,217,298 |   |                             |   | 3,888,811 |   |   |   | 1,960,994 |   |   |   | 1,992,316 |   |
|              Income from operations           |   |                           | 2,670,989 |   |                             |   | 2,113,427 |   |   |   | 1,032,150 |   |   |   | 978,723 |   |
|                                                                                                           |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                                                        |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                                                                              |   |                           | 185,083   |   |                             |   | 248,774 |   |   |   | 93,481 |   |   |   | 120,498 |   |
| Loss on sale of equipment                                                                                      |   |                           | ---       |   |                             |   | (7,763 | ) |   |   | --- |   |   |   | --- |   |
| Other                                                                                                          |   |                           | ---       |   |                             |   | (1,375 | ) |   |   | --- |   |   |   | (1,426 | ) |
|                                                                                                           |   |                           | 185,083   |   |                             |   | 239,636 |   |   |   | 93,481 |   |   |   | 119,072 |   |
| Income from operations before income taxes                                                                     |   |                           | 2,856,072 |   |                             |   | 2,353,063 |   |   |   | 1,125,631 |   |   |   | 1,097,795 |   |
| Provision for income taxes                                                                                     |   |                           | 945,400   |   |                             |   | 777,500 |   |   |   | 370,200 |   |   |   | 361,500 |   |
|       Net Income                                                                 |   | $                              | 1,910,672 |   |                             | $      | 1,575,563 |   |   | $ | 755,431 |   |   | $ | 736,295 |   |
|           Earnings per common share (Basic and Diluted) |   | $                              | 0.39      |   |                             | $      | 0.32 |   |   | $ | 0.15 |   |   | $ | 0.15 |   |
| Weighted average shares – basic and diluted                                                              |   |                           | 4,946,439 |   |                             |   | 4,946,439 |   |   |   | 4,946,439 |   |   |   | 4.946,439 |   |

----

BALANCE SHEETS

|                                                                                                                     |   | JUNE 30,    |       |   | DECEMBER 31, |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
| ASSETS                                                                                                                   |   | 2009        |       |   | 2008         |   |
|                                                                                                                     |   | (UNAUDITED) |       |   |         |   |
| Current assets:                                                                                                          |   |        |       |   |         |   |
| Cash and cash equivalents                                                                                                |   | $           | 2,861,015  |   |         | $      | 3,425,538 |   |
| Certificates of deposit                                                                                                  |   |        | 975,830    |   |         |   | 812,952 |   |
| Marketable securities                                                                                                    |   |        | 8,576,303  |   |         |   | 8,239,183 |   |
| Accounts receivable, net of allowance for doubtful accounts of $27,400 at June 30, 2009 and $30,000 at December 31, 2008 |   |        | 1,126,888  |   |         |   | 1,381,012 |   |
| Inventories (net)                                                                                                        |   |        | 1,176,681  |   |         |   | 1,344,579 |   |
| Prepaid expenses and other current assets                                                                                |   |        | 328,177    |   |         |   | 226,330 |   |
| Deferred income taxes                                                                                                    |   |        | 355,798    |   |         |   | 355,798 |   |
| Total current assets                                                                                                     |   |        | 15,400,692 |   |         |   | 15,785,392 |   |
|                                                                                                                     |   |        |       |   |         |   |   |   |
| Certificates of deposit, due August 2010                                                                                 |   |        | 123,474    |   |         |   | 271,976 |   |
|                                                                                                                     |   |        |       |   |         |   |   |   |
| Property, plant and equipment:                                                                                           |   |        |       |   |         |   |   |   |
| Land                                                                                                                     |   |        | 69,000     |   |         |   | 69,000 |   |
| Factory equipment and fixtures                                                                                           |   |        | 3,304,112  |   |         |   | 3,288,808 |   |
| Building and improvements                                                                                                |   |        | 2,431,908  |   |         |   | 2,431,908 |   |
| Waste disposal plant                                                                                                     |   |        | 133,532    |   |         |   | 133,532 |   |
|                                                                                                                     |   |        | 5,938,552  |   |         |   | 5,923,248 |   |
| Less: Accumulated depreciation                                                                                           |   |        | 5,037,853  |   |         |   | 4,971,269 |   |
| Total property, plant and equipment, net                                                                                 |   |        | 900,699    |   |         |   | 951,979 |   |
|                                                                                                                     |   |        |       |   |         |   |   |   |
| Other assets                                                                                                             |   |        |       |   |         |   |   |   |
|       Pension asset                                                                        |   |        | 128,984    |   |         |   | 123,589 |   |
|       Other                                                                                |   |        | 131,852    |   |         |   | 150,687 |   |
| Total other assets                                                                                                       |   |        | 260,836    |   |         |   | 274,276 |   |
| TOTAL ASSETS                                                                                                             |   | $           | 16,685,701 |   |         | $      | 17,283,623 |   |

----

|                                                                                                                                                                              |   | JUNE 30,    |       |   | DECEMBER 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                                                                                                                                              |   |  2009  |       |   | 2008         |   |
| Current liabilities:                                                                                                                                                              |   | (UNAUDITED) |       |   |         |   |
| Dividends payable                                                                                                                                                            |   | $           | ---        |   |         | $      | 1,385,003 |   |
| Accounts payable                                                                                                                                                             |   |        | 137,064    |   |         |   | 187,810 |   |
| Loans payable                                                                                                                                                                |   |        | ---        |   |         |   | 6,657 |   |
| Accrued taxes payable                                                                                                                                                             |   |        | 44,895     |   |         |   | --- |   |
| Accrued expenses                                                                                                                                                             |   |        | 1,096,385  |   |         |   | 969,242 |   |
| Total current liabilities                                                                                                                                                    |   |        | 1,278,344  |   |         |   | 2,548,712 |   |
|                                                                                                                                                                              |   |        |       |   |         |   |   |   |
| Deferred income taxes                                                                                                                                                        |   |        | 79,489     |   |         |   | 28,616 |   |
|                                                                                                                                                                              |   |        |       |   |         |   |   |   |
| Stockholders’ equity:                                                                                                                                                  |   |        |       |   |         |   |   |   |
| Common stock $.10 par value, authorized, 10,000,000 shares; 5,008,639 shares issued, and 4,946,439 shares outstanding at June 30, 2009 and December 31, 2008. |   |        | 500,864    |   |         |   | 500,864 |   |
| Capital in excess of par value                                                                                                                                               |   |        | 3,819,480  |   |         |   | 3,819,480 |   |
| Accumulated other comprehensive loss                                                                                                                                         |   |        | (290,305   | )      |         |   | (386,208 | ) |
| Retained earnings                                                                                                                                                            |   |        | 11,657,459 |   |         |   | 11,131,789 |   |
| Treasury stock, at cost; 62,200 shares                                                                                                                                       |   |        | (359,630   | )      |         |   | (359,630 | ) |
| Total stockholders’ equity                                                                                                                                             |   |        | 15,327,868 |   |         |   | 14,706,295 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                   |   | $           | 16,685,701 |   |         | $      | 17,283,623 |   |

----

STATEMENTS OF CASH FLOWS

|                                                                                                                                                                           |   | June 30, |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|
|                                                                                                                                                                           |   | 2009     |       |   | 2008 |   |
| Cash flows from operating activities:                                                                                                                                          |   |     |       |   |   |   |
| Net Income                                                                                                                                                                     |   | $        | 1,910,672  |   |   | $ | 1,575,563 |   |
| Adjustments to reconcile net incometo net cash provided by operating activities:                                                                                               |   |     |       |   |   |   |   |   |
| Depreciation and amortization                                                                                                                                                  |   |     | 85,419     |   |   |   | 110,092 |   |
| Realized loss (gain) on sales of marketable  securities                                                                                                                   |   |     | 498        |   |   |   | (51 | ) |
| Loss on sale of equipment                                                                                                                                                      |   |     | ---        |   |   |   | 7,763 |   |
| Reduction in allowance for bad debts                                                                                                                                           |   |     | (2,616     | ) |   |   | (6,273 | ) |
| Increase (decrease) in cash resulting from changes in operating assets and liabilities:                                                                                        |   |     |       |   |   |   |   |   |
| Accounts receivable                                                                                                                                                            |   |     | 256,740    |   |   |   | (397,253 | ) |
| Inventories                                                                                                                                                                    |   |     | 167,898    |   |   |   | (196,440 | ) |
| Prepaid expenses and other current and non-current assets                                                                                                                 |   |     | (107,242   | ) |   |   | (338,510 | ) |
| Accounts payable                                                                                                                                                               |   |     | (50,746    | ) |   |   | 96,195 |   |
| Accrued expenses and taxes payable                                                                                                                                             |   |     | 172,038    |   |   |   | 493,007 |   |
| Net cash provided by continuing operating activities                                                                                                                           |   |     | 2,432,661  |   |   |   | 1,344,093 |   |
| Net cash provided by discontinued operating activities                                                                                                                         |   |     | ---        |   |   |   | 17,233 |   |
| Net cash provided by operating activities                                                                                                                                 |   |     | 2,432,661  |   |   |   | 1,361,326 |   |
|                                                                                                                                                                           |   |     |       |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                          |   |     |       |   |   |   |   |   |
|          Acquisition of property, plant and equipment                                                                                                 |   |     | (15,304    | ) |   |   | (91,376 | ) |
|          Proceeds from sale of equipment                                                                                                              |   |     | ---        |   |   |   | 7,988 |   |
|          Proceeds from sale  of marketable securities                                                                   |   |     | 300,000    |   |   |   | 600,000 |   |
|          Purchases of marketable securities                                                                                                           |   |     | (490,841   | ) |   |   | (623,113 | ) |
|          Net change in certificates of deposit                                                                                    |   |     | (14,376    | ) |   |   | 208,512 |   |
| Net cash (used in) provided by investingactivities                                                                                                                             |   |     | (220,521   | ) |   |   | 102,011 |   |
|                               |   |     |       |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                                                          |   |     |       |   |   |   |   |   |
|          Payment of long term debt                                                                                                                    |   |     | (6,657     | ) |   |   | (3,994 | ) |
|          Dividends paid                                                                                                                               |   |     | (2,770,006 | ) |   |   | (2,720,542 | ) |
| Net cash used in financing activities                                                                                                                                          |   |     | (2,776,663 | ) |   |   | (2,724,536 | ) |
|                                                                                                                                                                           |   |     |       |   |   |   |   |   |
| Net decrease in cash and cashequivalents                                                                                                                                       |   |     | (564,523   | ) |   |   | (1,261,199 | ) |
| Cash and cash equivalents at beginning of period                                                                                                                               |   |     | 3,425,538  |   |   |   | 4,555,388 |   |
| Cash and cash equivalents at end of period                                                                                                                                     |   | $        | 2,861,015  |   |   | $ | 3,294,189 |   |

----

NOTES TO FINANCIAL STATEMENTS

----

----

----

| •   | Defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | Establishes a three-level hierarchy ("Valuation Hierarchy") for fair value measurements; |
|---------------------|------------------------------------------------------------------------------------------|

| •   | Requires consideration of the Company's creditworthiness when valuing liabilities; and |
|---------------------|----------------------------------------------------------------------------------------|

| •   | Expands disclosures about instruments measured at fair value. |
|---------------------|---------------------------------------------------------------|

| •   | Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| •   | Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
|---------------------|---------------------------------------------------------------------------------------------------------------------|

|                                                                                                   |   |   |      |   |       |   |      | Unrealized  |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|------------|--------|-----------|-------------|--------|
| June 30, 2009                                                                                          |   | Cost   |      |   | Fair Value |   |      | Gain/(Loss) |   |
|                                                                                                   |   |   |      |   |       |   |      |        |   |
|  Available for Sale:                                                                         |   |   |      |   |       |   |      |        |   |
|        U.S. Treasury and agencies                                             |   |   |      |   |       |   |      |        |   |
|           Mature within 1 year                       |   | $      | 1,945,797 |   |       | $      | 1,972,607 |        |   | $ | 26,810 |   |
|           Mature 1-5 years                           |   |   | 1,652,874 |   |       |   | 1,684,495 |        |   |   | 31,621 |   |
|             Total US Treasury and agencies |   |   | 3,598,671 |   |       |   | 3,657,102 |        |   |   | 58,431 |   |
|                                                                                                   |   |   |      |   |       |   |      |        |   |   |   |   |
|        Fixed income mutual funds                                              |   |   | 4,904,472 |   |       |   | 4,746,684 |        |   |   | (157,788 | ) |
|        Equity and other mutual funds                                          |   |   | 242,433   |   |       |   | 172,517   |        |   |   | (69,916 | ) |
|                                                                                                   |   | $      | 8,745,576 |   |       | $      | 8,576,303 |        |   | $ | (169,273 | ) |

----

| December 31, 2008                                                                                            |   | Cost   |      |   | Fair Value |   |      | UnrealizedGain/(Loss) |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|------------|--------|-----------|-----------------------|--------|
|                                                                                                         |   |   |      |   |       |   |      |                  |   |
|  Available for Sale:                                                                               |   |   |      |   |       |   |      |                  |   |
|        U.S. Treasury and agencies                                                   |   |   |      |   |       |   |      |                  |   |
|           Mature within 1 year                             |   | $      | 1,140,227 |   |       | $      | 1,153,798 |                  |   | $ | 13,571 |   |
|           Mature 1-5 years                                 |   |   | 2,458,685 |   |       |   | 2,536,931 |                  |   |   | 78,246 |   |
|              Total US Treasury and agencies |   |   | 3,598,912 |   |       |   | 3,690,729 |                  |   |   | 91,817 |   |
|                                                                                                         |   |   |      |   |       |   |      |                  |   |   |   |   |
|        Fixed income mutual funds                                                    |   |   | 4,715,827 |   |       |   | 4,380,669 |                  |   |   | (335,158 | )  |
|        Equity and other mutual funds                                                |   |   | 240,494   |   |       |   | 167,785   |                  |   |   | (72,709 | ) |
|                                                                                                         |   | $      | 8,555,233 |   |       | $      | 8,239,183 |                  |   | $ | (316,050 | ) |

  

|                                        |   | June 30, |      |   | December 31, |   |
|---------------------------------------------|--------|----------|-----------|--------|--------------|--------|
|                                        |   | 2009     |      |   | 2008         |   |
| Inventories consist of the following:  |   |     |      |   |         |   |
| Raw materials and work in process           |   | $        | 349,015   |   |         | $      | 422,437 |   |
| Finished products                      |   |     | 827,666   |   |         |   | 922,142 |   |
|                                        |   | $        | 1,176,681 |   |         | $      | 1,344,579 |   |

----

 allowance to the extent that it is more likely than not that the deferred tax assets will not be realized. As of June 30, 2009 and December 31, 2008 the Company did not haveany unrecognized tax benefits.

|                                                                                                        |   | Six months endedJune 30, |      |   | Three months endedJune 30 |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|--------|---------------------------|--------|
|                                                                                                   |   | 2009                     |      |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
|                                                                                                        |   |                     |      |   |                      |   |   |   |   |   |   |   |
| Net income                                                                                             |   | $                        | 1,910,672 |   |                      | $      | 1,575,563 |   |   | $ | 755,431 |   |   | $ | 736,295 |   |
| Other comprehensive income                                                                                  |   |                     |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|      Unrealized gain (loss) on marketable securities during period       |   |                     | 146,777   |   |                      |   | (82,369 | ) |   |   | 141,705 |   |   |   | (123,977 | ) |
|      Income tax expense (benefit) related to other comprehensive income  |   |                     | 50,873    |   |                      |   | (28,515 | ) |   |   | 49,115 |   |   |   | (42,937 | ) |
| Other comprehensive income, net of tax                                                                      |   |                     | 95,904    |   |                      |   | (53,854 | ) |   |   | 92,590 |   |   |   | (81,040 | ) |
| Comprehensive income                                                                                   |   | $                        | 2,006,576 |   |                      | $      | 1,521,709 |   |   | $ | 848,021 |   |   | $ | 655,255 |   |

----

|                                                     |   | 2009        |     |   | 2008   |   |
|----------------------------------------------------------|--------|-------------|----------|--------|--------|--------|
|                                                     |   | (projected) |     |   |   |   |
| Interest cost – projected benefit obligation  |   | $           | 113,864  |   |   | $      | 176,429 |   |
| Expected return on plan assets                      |   |        | (131,315 | )      |   |   | (232,109 | ) |
| Effect of special events                            |   |        | ---      |   |   |   | 112,552 |   |
| Amortization of net loss                                 |   |        | 6,659    |   |   |   | --- |   |
| Net periodic (income) benefit costs                 |   | $           | (10,792  | )      |   | $      | 56,872 |   |

----

|                            |   | June 30, |      |   | December 31, |   |
|---------------------------------|--------|----------|-----------|--------|--------------|--------|
|                            |   | 2009     |      |   | 2008         |   |
| Accrued 401K plan contributions |   | $        | 87,500    |   |         | $      | 175,000 |   |
| Accrued vacations               |   |     | 116,355   |   |         |   | 98,974 |   |
| Accrued bonuses                 |   |     | 301,600   |   |         |   | 170,000 |   |
| Accrued annual report expenses  |   |     | 30,836    |   |         |   | 63,859 |   |
| Accrued distribution fees       |   |     | 286,378   |   |         |   | 213,541 |   |
| Other                           |   |     | 273,716   |   |         |   | 247,868 |   |
|                            |   | $        | 1,096,385 |   |         | $      | 969,242 |   |

----

| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------|

----

----

| (a)   | Pharmaceuticals:  Pharmaceutical sales increased by $479,952 (90.0%) for the three months ended June 30, 2009 compared with the three months ended June 30, 2008. This was the result of a 5% price increase that was implemented on May 1, 2009, which caused a significant increase in sales inthe second quarter as customers purchased additional inventory in anticipation of the price increase.  The Company implemented a slightly smaller price increase (4%) on April 1, 2008, which affected sales in the first quarter of that year rather than the second quarter, but the increase in sales prior to the effective date of that increase was not nearly as large as it was in 2009.  As a result, pharmaceutical sales for the six months ended June 30, 2009 were $423,863 (34%) higher than thecomparable period in 2008.  Since the annual sales of these products are relatively stable from year-to-year, the Company anticipates that the quantity of pharmaceutical products that will be sold in 2009 will be comparable to what was sold in 2008. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Personal care products: For the three months ended June 30, 2009, the Company’s sales of personal care products decreased by $512,026 (28%) when compared with the three months ended June 30, 2008. For the six months ended June 30, 2009, the Company’s sales of personal care products decreasedby $167,416 (4%) when compared with the six months ended June 30, 2008.  Based on information provided by the Company’s marketing partners, the Company believes that this decrease was due primarily to the ordering patterns of its customers rather than any real decline in the use of the Company’s products. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Medical (non-pharmaceutical) products:  Sales of the Company’s medical products increased $695,766 (69%) and $94,241 (15%) for the six- and three-month periods ended June 30, 2009 when compared with the comparable periods ended June 30, 2008.  The Company believes that thisincrease is due to the buying patterns of its customers, especially one customer that significantly increased its purchases in anticipation of moving its production facility later this year. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Industrial products: For the three months ended June 30, 2009, sales of industrial products increased $13,063 (59.0%) when compared with the comparable period in 2008. Sales of industrial products increased $6,598 (13%) for the six-month period ended June 30, 2009 when compared with the comparableperiod in 2008. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|       | Working capital increased by $885,668 to $14,122,348 at June 30, 2009 from $13,236,680 at December 31, 2008. The current ratio increased to 12 to 1 at June 30, 2009 from 6.2 to 1 at December 31, 2008. The increase in the current ratio was primarily due to the effect of a decrease in dividends payable, partially offset by other changes in working capital items. |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | During the six-month period ended June 30, 2009, the average period of time that an account receivable was outstanding was approximately 34 days. The average period of time that an account receivable was outstanding during the six-month period ended June 30, 2008 was 46 days, which was mainly due to a few customers who were paying more slowly than normal at that time. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | The Company believes that its working capital is and will continue to be sufficient to support its operating requirements for at least the next twelve months.  The Company does not expect to incur any significant capital expenditures for the remainder of 2009. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | The Company generated cash from operations of $2,432,661 and $1,361,326 for the six months ended June 30, 2009 and June 30, 2008, respectively. The increase was primarily due to an increase in net income and decreases in accounts receivable and inventory. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cash used in investing activities for the six-month period ended June 30, 2009 was $220,521, while cash provided by investing activities for the six-month period ended June 30, 2008 was $102,011. This decrease was primarily due to a decrease in the redemption of marketable securities. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | Cash used in financing activities was $2,776,663 and $2,724,536 for the six months ended June 30, 2009 and June 30, 2008, respectively.  This was mainly related to dividend payments. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The Company has no off balance sheet transactions that have, or are reasonably likely to have, a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The information to be reported under this item is not required of smaller reporting companies. |
|--------|------------------------------------------------------------------------------------------------|

| Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET |
|---------|-------------------------------------------------------|

Item 4T.

| (a)   | DISCLOSURE CONTROLS AND PROCEDURES |
|-----------------|------------------------------------|

| (b)   | CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING |
|-----------------|------------------------------------------------------|

----

| ITEM 1. | LEGAL PROCEEDINGS |
|---------|-------------------|

| ITEM 1A. | RISK FACTORS |
|----------|--------------|

|   | The information to be reported under this item is not required of smaller reporting companies. |
|--------|------------------------------------------------------------------------------------------------|

| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OFPROCEEDS. |
|---------|-------------------------------------------------------------|

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
|---------|---------------------------------|

| ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
|---------|-----------------------------------------------------|

ITEM 5.

ITEM 6.

| 31.1      | Certification of Kenneth H. Globus, President and principal executive officer of the Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002  |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                                                                     |
| 31.2      | Certification of Robert S. Rubinger, Chief Financial Officer of the Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                   |
|                     |                                                                                                                                                     |
| 32.1      | Certification of Kenneth H. Globus, President and principal executive officer of the Company, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|                     |                                                                                                                                                     |
| 32.2      | Certification of Robert S. Rubinger, Chief Financial Officer of the Company, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                  |

  

----

SIGNATURES

----