----

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|  X        | Quarterly      Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of      1934. For the quarterly period ended September 30, 2008  or |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|        | Transition      Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934. For the transition period from _________ to    _________. |
|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Delaware                                    |  94-1069729                     |
|---------------------------------------------------|--------------------------------------|
| (State      of incorporation)                     | (IRS      Employer Identification #) |
|  2064      Highway 116 North, Sebastopol, CA |  95472-2662                     |
| (Address      of principal executive offices)     | (Zip      Code)                      |

----

| PART I.      FINANCIAL INFORMATION                                                                                                                                                         |                                                                                                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
| Item      1.                                                                                                                                                                                    | Condensed      Financial Statements                                                                                                                                              |   |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
|                                                                                                                                                                                            | Balance      Sheets at September      30, 2008 (unaudited)      and                                                                                                         |   |
|                                                                                                                                                                                            | June      30, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . .  | 3 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
|                                                                                                                                                                                            | Statements      of Income – Three months ended                                                                                                                             |   |
|                                                                                                                                                                                            | September      30, 2008 and 2007 (unaudited) . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . .                                        | 4 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
|                                                                                                                                                                                            | Statement      of Changes in Shareholders’ Deficit -                                                                                                                       |   |
|                                                                                                                                                                                            | Three      months ended September 30, 2008 (unaudited)  . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . .                                              | 5 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
|                                                                                                                                                                                            | Statements      of Cash Flows – Three months ended                                                                                                                         |   |
|                                                                                                                                                                                            | September      30, 2008 and 2007 (unaudited) . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . .                                        | 6 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
|                                                                                                                                                                                            | Notes      to Condensed Financial Statements (unaudited) . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . .                                               | 7 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
| Item      2.                                                                                                                                                                                    | Management's      Discussion and Analysis of Financial Condition                                                                                                                 |   |
|                                                                                                                                                                                            | and      Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    .                         | 11 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
| Item      4T                                                                                                                                                                                    | Controls      and Procedures          . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . .   | 15 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
| PART      II. OTHER INFORMATION         . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . | 16                                                                                                                                                                               |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
| Item      1.                                                                                                                                                                                    | Legal      Proceedings  . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . .   | 16 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
| Item      2.                                                                                                                                                                                    | Unregistered      Sales of Equity Securities and Use of Proceeds . . . . . . .      . . . . . . . . . . . . . . . . . . . .                                            | 16 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
| Item      3.                                                                                                                                                                                    | Defaults      Upon Senior Securities   . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . .            | 16 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
| Item      4.                                                                                                                                                                                    | Submission      of Matters to a Vote of Security Holders . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . .                                           | 16 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
| Item      5.                                                                                                                                                                                    | Other      Information  . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . .      | 16 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
| Item      6.                                                                                                                                                                                    | Exhibits  . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . .       | 16 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
|                                                                                                                                                                                            | Signature  . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . .     | 17 |
|                                                                                                                                                                                            |                                                                                                                                                                             |   |
|                                                                                                                                                                                            | Exhibit Index   . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18 |

----

|                                                                                                                                                                                                            |   | September      30, 2008 (unaudited) |   |   | June      30, 2008 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|--------------------|--------|
| ASSETS                                                                                                                                                                                                          |   |                                |   |   |               |   |
| CURRENT      ASSETS:                                                                                                                                                                                            |   |                                |   |   |               |   |
| Cash      and cash equivalents                                                                                                                                                                                  |   | $                                   | 2,146  |   |               | $      | 2,554 |   |
| Restricted      cash and cash equivalents                                                                                                                                                                       |   |                                | -      |   |               |   | 50 |   |
|                  Marketable securities, fair value                                                                                                       |   |                                | -      |   |               |   | 2,673 |   |
| Accounts      receivable                                                                                                                                                                                        |   |                                | 43     |   |               |   | 9 |   |
| Other      receivables                                                                                                                                                                                          |   |                                | -      |   |               |   | 7 |   |
| Dividend      claims receivable                                                                                                                                                                                 |   |                                | 49     |   |               |   | 49 |   |
| Prepaid      income taxes                                                                                                                                                                                       |   |                                | -      |   |               |   | 47 |   |
| Prepaid      expenses and other assets                                                                                                                                                                          |   |                                | 100    |   |               |   | 145 |   |
| Total      current assets                                                                                                                                                                                       |   |                                | 2,338  |   |               |   | 5,534 |   |
|              RENTAL PROPERTY, net                                                                                                                                            |   |                                | 1,021  |   |               |   | 1,054 |   |
|              DEFERRED INCOME TAXES, net                                                                                                                                      |   |                                | 367    |   |               |   | 248 |   |
|              PREPAID COMMISSIONS AND OTHER ASSETS                                                                                                                            |   |                                | 229    |   |               |   | 246 |   |
| Total      assets                                                                                                                                                                                               |   | $                                   | 3,955  |   |               | $      | 7,082 |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                       |   |                                |   |   |               |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                                                                                       |   |                                |   |   |               |   |   |   |
| Accounts      payable                                                                                                                                                                                           |   | $                                   | 122    |   |               | $      | 119 |   |
| Accrued      dividends payable                                                                                                                                                                                  |   |                                | 49     |   |               |   | 49 |   |
| Accrued      payroll and related liabilities                                                                                                                                                                    |   |                                | 28     |   |               |   | 243 |   |
| Income      taxes payable                                                                                                                                                                                       |   |                                | 605    |   |               |   | 509 |   |
| Accrued      expenses                                                                                                                                                                                           |   |                                | 119    |   |               |   | 123 |   |
| Unearned      rents                                                                                                                                                                                             |   |                                | 127    |   |               |   | 136 |   |
| Tenant      deposits                                                                                                                                                                                            |   |                                | 489    |   |               |   | 470 |   |
| Deferred      income taxes, net                                                                                                                                                                                 |   |                                | -      |   |               |   | 495 |   |
| Total      current liabilities                                                                                                                                                                                  |   |                                | 1,539  |   |               |   | 2,144 |   |
|  LONG-TERM      DEBT, net of current maturities                                                                                                                                                            |   |                                | 2,500  |   |               |   | 2,500 |   |
| Total      liabilities                                                                                                                                                                                          |   |                                | 4,039  |   |               |   | 4,644 |   |
|                                                                                                                                                                                                            |   |                                |   |   |               |   |   |   |
| SHAREHOLDERS’      EQUITY (DEFICIT):                                                                                                                                                                      |   |                                |   |   |               |   |   |   |
| Preferred      stock: 2,500 shares authorized; no shares issued and      outstanding                                                                                                                            |   |                                | -      |   |               |   | - |   |
|     Common      stock: 5,000 shares authorized, par value $0.0001; 1,251 and 1,241      shares  issued and outstanding at September 30, 2008 and June 30,      2008, respectively |   |                                | -      |   |               |   | - |   |
| Accumulated      other comprehensive income                                                                                                                                                                     |   |                                | -      |   |               |   | 1,389 |   |
| Retained      earnings (accumulated deficit)                                                                                                                                                                    |   |                                | (84    | )      |               |   | 1,049 |   |
| Total      shareholders’ equity (deficit)                                                                                                                                                                 |   |                                | (84    | )      |               |   | 2,438 |   |
| Total      liabilities and shareholders’ equity (deficit)                                                                                                                                                 |   | $                                   | 3,955  |   |               | $      | 7,082 |   |

----

|                                                 |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| RENTAL      REVENUE – NET                 |   | $      | 734    |   |   | $      | 674 |   |
| TENANT      REIMBURSEMENTS                           |   |   | 184    |   |   |   | 169 |   |
| TOTAL      REVENUE                                   |   |   | 918    |   |   |   | 843 |   |
|                                                 |   |   |   |   |   |   |   |   |
| OPERATING      COSTS                                 |   |   | 743    |   |   |   | 708 |   |
| OPERATING      COSTS - RELATED PARTY EXPENSES        |   |   | 10     |   |   |   | 2 |   |
| TOTAL      OPERATING COSTS                           |   |   | 753    |   |   |   | 710 |   |
| OPERATING      PROFIT                                |   |   | 165    |   |   |   | 133 |   |
|                                                 |   |   |   |   |   |   |   |   |
| INTEREST      EXPENSE                                |   |   | (31    | )      |   |   | - |   |
| INTEREST      INCOME                                 |   |   | 8      |   |   |   | 44 |   |
| LOSS      ON RETIREMENT OF EQUIPMENT                 |   |   | -      |   |   |   | (2 | ) |
| GAINS      ON DISTRIBUTION OF INVESTMENTS            |   |   | 2,283  |   |   |   | - |   |
| OTHER      INCOME                                    |   |   | -      |   |   |   | 3 |   |
| INCOME      BEFORE TAXES                             |   |   | 2,425  |   |   |   | 178 |   |
| PROVISION      FOR INCOME TAXES                      |   |   | 964    |   |   |   | 91 |   |
| NET      INCOME                                      |   | $      | 1,461  |   |   | $      | 87 |   |
|                                                 |   |   |   |   |   |   |   |   |
| WEIGHTED      AVERAGE COMMON SHARES AND EQUIVALENTS: |   |   |   |   |   |   |   |   |
| Basic                                                |   |   | 1,250  |   |   |   | 1,188 |   |
| Diluted                                              |   |   | 1,253  |   |   |   | 1,209 |   |
|                                                 |   |   |   |   |   |   |   |   |
| INCOME      PER COMMON SHARE:                        |
| Basic                                                |   | $      | 1.17   |   |   | $      | 0.07 |   |
| Diluted                                              |   | $      | 1.17   |   |   | $      | 0.07 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                      |   | Common      Stock |    |   | Accumulated |   |    | Retained      Earnings   |   |   |         |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-------------|--------|---------|--------------------------|--------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |    |   |        |   |    | Other      Comprehensive |   |   | (Accumulated |   |   | Total      Shareholders’ |   |
|                                                                                                                                                                                                                                                                                                                                                                                                      |   | Shares            |    |   | Amount      |   |    | Income                   |   |   | Deficit)     |   |   | Equity      (Deficit) |   |
| BALANCE,      JUNE 30, 2008                                                                                                                                                                                                                                                                                                                                                                               |   |              | 1,241   |   |        | $      | -       |                     |   | $      | 1,389        |   |   | $ | 1,049 |   |   | $ | 2,438 |   |
|        Comprehensive      income:                                                                                                                                                                                                                                                                                                                                      |   |              |    |   |        |   |    |                     |   |   |         |   |   |   |   |   |   |   |   |   |
|        Net      Income                                                         |   |              | -  |   |        |   | -  |                     |   |   | -       |   |   |   | 1,461 |   |   |   | 1,461 |   |
| Net      change in unrealized gain (loss), net of tax                                                                                                                                                                                                                                                                                                                                                     |   |              | -       |   |        |   | -       |                     |   |   | (1,389       | )      |   |   | -  |   |   |   | (1,389 | ) |
|            Total comprehensive loss                                                                                                                                                                                                                                                                                                                                              |   |              |    |   |        |   |    |                     |   |   |         |   |   |   |   |   |   |   | 72 |   |
| Property      dividend                                                                                                                                                                                                                                                                                                                                                                                    |   |              | -       |   |        |   | (54     | )                        |   |   | -            |   |   |   | (2,594 | ) |   |   | (2,648 | ) |
| Exercise      of stock options                                                                                                                                                                                                                                                                                                                                                                            |   |              | 10      |   |        |   | 65      |                     |   |   | -            |   |   |   | - |   |   |   | 65 |   |
| Tax      benefit on exercise of options                                                                                                                                                                                                                                                                                                                                                                   |   |              | -       |   |        |   | (11)    |                     |   |   | -            |   |   |   | - |   |   |   | (11) |   |
| BALANCE,      SEPTEMBER 30, 2008                                                                                                                                                                                                                                                                                                                                                                          |   |              | 1,251   |   |        | $      | -       |                     |   | $      | -            |   |   | $ | (84) |   |   | $ | (84) |   |

----

|                                                                                                                                                                                                     |   | 2008   |                                                  |    | 2007   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------|---------|--------|--------|
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                               |   |   |                                                  |    |   |   |
|                Net income                                                                                                                                        |   | $      | 1,461                                                 |    |   | $      | 87 |   |
|            Adjustments to reconcile net income to net cash provided by      operating activities:                                                                                    |   |   |                                                  |    |   |   |   |   |
| Gains      on distribution of investments                                                                                                                                                                |   |   | (2,283                                                | )       |   |   | - |   |
| Loss      on retirement of equipment                                                                                                                                                                     |   |   | -                                                     |    |   |   | 2 |   |
| Stock      compensation expense                                                                                                                                                                          |   |   | -                                                     |    |   |   | 10 |   |
| Depreciation      and amortization expense                                                                                                                                                               |   |   | 43                                                    |    |   |   | 51 |   |
| Deferred      income tax benefit                                                                                                                                                                         |   |   | 305                                                   |    |   |   | (9) |   |
| Changes      in assets and liabilities:                                                                                                                                                                  |   |   |                                                  |    |   |   |   |   |
| Accounts      receivable                                                                                                                                                                                 |   |   | (34                                                   | )       |   |   | 10 |   |
| Other      receivables                                                                                                                                                                                   |   |   | 7                                                     |    |   |   | 7 |   |
| Prepaid      income taxes                                                                                                                                                                                |   |   | 47                                                    |    |   |   | (1,402 | )  |
| Prepaid      expenses and other assets                                                                                                                                                                   |   |   | 45                                                    |    |   |   | 51 |   |
| Prepaid      commissions and other assets                                                                                                                                                                |   |   | 17                                                    |    |   |   | (40 | ) |
| Accounts      payable                                                                                                                                                                                    |   |   | 3                                                     |    |   |   | 24 |   |
| Accrued      payroll and related liabilities                                                                                                                                                             |   |   | (215                                                  | )       |   |   | (188 | ) |
| Accrued      expenses                                                                                                                                                                               |   |   | (4                                                    | )       |   |   | 47 |   |
| Income      taxes payable                                                                                                                                                                                |   |   | 96                                                    |    |   |   | - |   |
| Unearned      rents                                                                                                                                                                                      |   |   | (9                                                    | )       |   |   | 9 |   |
| Tenant      deposits                                                                                                                                                                                     |   |   | 19                                                    |    |   |   | 117 |   |
|                        Net      cash used for operating activities                    |   |   | (502                                                  | )  |   |   | (1,224 | )  |
|                                                                                                                                                                                                     |   |   |                                                  |    |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                               |   |   |                                                  |    |   |   |   |   |
|           Capital      Expenditures                                                                                                                    |   |   | (10                                                   | )       |   |   | - |   |
|                                 Net cash used for investing activities |   |   | (10                                                   | )       |   |   | - |   |
|                                                                                                                                                                                                     |   |   |                                                  |    |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                               |   |   |                                                  |    |   |   |   |   |
|       Tax      benefit from exercise of stock options                                                                                                                      |   |   | (11)                                                  |    |   |   | - |   |
|        Exercise      of stock options                                                                                                                                 |   |   | 65                                                    |    |   |   | - |   |
|                             Net cash provided by financing activities                      |   |   | 54                                                    |    |   |   | - |   |
| NET      DECREASE IN CASH                                                                                                                                                                                |   |   | (458                                                  | )  |   |   | (1,224 | ) |
|                                                                                                                                                                                                     |   |   |                                                  |    |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                                                                                                                    |   |   | 2,604                                                 |    |   |   | 3,587 |   |
| CASH      AND CASH EQUIVALENTS AT END OF PERIOD                                                                                                                                                          |   | $      | 2,146                                                 |    |   | $      | 2,363 |   |
|                                                                                                                                                                                                     |   |   |                                                  |    |   |   |   |   |
| Supplemental Cash Flow      Information                                                                                                                                                                  |   |
|                                                                                                                                                                                                     |   | 2008   |                                                  |    | 2007   |   |
| Property      dividend                                                                                                                                                                                   |   | $      |         2,648 |    |   | $      | - |   |
| Interest      paid                                                                                                                                                                                       |   | $      | 45                                                    |    |   | $      | - |   |
| Taxes      paid                                                                                                                                                                                          |   | $      | 540                                                   |    |   | $      | 1,503 |   |

----

----

----

|                                 | Options |    | Weighted      Average Exercise Price |   | Weighted      Average Remaining Contractual Years |   | Aggregate      Intrinsic Value (in thousands) |   |
|--------------------------------------|---------|---------|--------------------------------------|--------|---------------------------------------------------|--------|-----------------------------------------------|--------|
| Balance,      June 30, 2008          |    | 31,000  |                                 | $      | 7.53                                              |   |                                          |   |   |   |
| Granted                              |    | -       |                                 |   | -                                                 |   |                                          |   |   |   |
| Exercised                            |    | (10,000 | )                                    |   | 6.50                                              |   |                                          |   |   |   |
| Cancelled                            |    | -       |                                 |   | -                                                 |   |                                          |   |   |   |
| Balance,      September 30, 2008     |    | 21,000  |                                 | $      | 8.02                                              |   |                                          | 9.17   |   | $ | 0 |   |
| Exercisable,      September 30, 2008 |    | 21,000  |                                 | $      | 8.02                                              |   |                                          | 9.17   |   | $ | 0 |   |

----

|                | Options      outstanding | Options      exercisable |
|---------------------|--------------------------|--------------------------|
|                |                     | Weighted-                |   |   |   |
|                |                     | average                  | Weighted- |   | Weighted- |
|                |                     | Remaining                | average |   | Average |
|                | Number of           | Contractual              | Exercise | Number of | Exercise |
| Exercise      Price | Shares                   | Life      (years)        | Price | Shares | Price |
| $5.70               | 1,000                    | 9.70                     | $                  5.70 | 1,000 | $               5.70 |
| $6.50               | 15,000                   | 9.61                     | $             6.50 | 15,000 | $                    6.50 |
| $13.05              | 5,000                    | 8.21                     | $                13.05 | 5,000 | $                  13.05 |
| Total               | 21,000                   | 9.17                     | $                  8.02 | 21,000 | $                    8.02 |

| Year      EndingSeptember      30, |   | Amount |       |
|------------------------------------|--------|--------|------------|
| Balance      of 2009               |   | $      | 2,135,000  |   |
| 2010                               |   |   | 2,577,000  |   |
| 2011                               |   |   | 2,434,000  |   |
| 2012                               |   |   | 1,807,000  |   |
| 2013                               |   |   | 1,050,000  |   |
| Thereafter      through 2021       |   |   | 1,093,000  |   |
| Total                              |   | $      | 11,096,000 |   |

----

----

----

----

----

----

|   | 31.1 | Chief      Executive Officer and Chief Financial Officer Certification of Periodic      Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of      2002* |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Chief      Executive Officer and Chief Financial Officer Certification Pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 + |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  EXHIBIT      INDEX                                                                                                         |
|----------------------------------------------------------------------------------------------------------------------------------|
| Exhibit      No.                                                                                                                 | Document      Description |
| 31.1                                                                                                                        | Chief      Executive Officer and Chief Financial Officer Certification of Periodic      Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of      2002* |
| 32.1                                                                                                                             | Chief      Executive Officer and Chief Financial Officer Certification Pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 + |
|  *      Filed      herewith +      Furnished      herewith |