----

----

|  X        | Quarterly      Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of      1934. For the quarterly period ended December 31, 2007  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)                      |

----

TABLE OF CONTENTS

| PART I. FINANCIAL    INFORMATION                                                                                                                             |                                                                                                                                                                | Page   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |
| Item      1.                                                                                                                                                      | Condensed      Financial Statements                                                                                                                                 |   |   |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |
|                                                                                                                                                              | Balance Sheets at December 31, 2007 (unaudited)      and                                                                                                            |   |   |   |
|                                                                                                                                                              | June 30, 2007  . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .      . . . . . . . . . . . . . . . . . .        |   |   | 3 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
|                                                                                                                                                              | Condensed Statements of Income – Six and      three months ended                                                                                              |   |   |   |   |
|                                                                                                                                                              | December 31, 2007 and 2006      (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . .                                         |   |   | 4 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
|                                                                                                                                                              | Statement of Changes in Shareholders’ Equity -                                                                                                                |   |   |   |   |
|                                                                                                                                                              | Six months ended December 31,      2007 (unaudited) .. . . . . . . . . . . . . . . . . . . . . . . . . . .                                                          |   |   | 5 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
|                                                                                                                                                              | Statements of Cash Flows – Six months      ended                                                                                                              |   |   |   |   |
|                                                                                                                                                              | December 31, 2007 and 2006      (unaudited). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . .                                     |   |   | 6 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
|                                                                                                                                                              | Notes to Condensed Financial Statements      (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . .                                                     |   |   | 7 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
| Item      2.                                                                                                                                                      | Management's Discussion and Analysis of Financial      Condition                                                                                                    |   |   |   |   |
|                                                                                                                                                              | and Results of      Operations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . .                        |   |   | 12 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
| Item      3.                                                                                                                                                      | Quantitative and Qualitative Disclosures About      Market Risk    . . . . . . . . . . . . . . . . .      .                                |   |   | 16 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
| Item      4.                                                                                                                                                      | Controls and Procedures   . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . .              |   |   | 16 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |
| PART II. OTHER INFORMATION  . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . .  |                                                                                                                                                                |   | 17     |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
| Item      1.                                                                                                                                                      | Legal Proceedings . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . .             |   |   | 17 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
| Item      2.                                                                                                                                                      | Unregistered Sales of Equity Securities and Use      of Proceeds   . . . . . . . . . . . . . . . . .      . .                                        |   |   | 17 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
| Item      3.                                                                                                                                                      | Defaults Upon Senior Securities . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . .                       |   |   | 17 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
| Item      4.                                                                                                                                                      | Submission of Matters to a Vote of Security Holders . .      . . . . . . . . . . . . . . . . . . . . . . . . .                                                 |   |   | 17 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
| Item      5.                                                                                                                                                      | Other Information  . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . .       |   |   | 17 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
| Item      6.                                                                                                                                                      | Exhibits  . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . .   |   |   | 17 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
|                                                                                                                                                              | Signature . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . .          |   |   | 18 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |
|                                                                                                                                                              | Exhibit Index . . . . . . . . . . . . . . .      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . . . . . .  |   |   | 19 |   |
|                                                                                                                                                              |                                                                                                                                                                |   |   |   |   |

----

Table of Contents

PART I. FINANCIAL INFORMATION

BALANCE SHEETS

|                                                                                                                                                                                                |   | December      31, 2007 (unaudited) |   |   | June      30, 2007 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|--------------------|--------|
| ASSETS                                                                                                                                                                                              |   |                               |   |   |               |   |
| CURRENT      ASSETS:                                                                                                                                                                                |   |                               |   |   |               |   |
| Cash      and cash equivalents                                                                                                                                                                      |   | $                                  | 4,492  |   |               | $      | 3,587 |   |
|                  Marketable securities, fair value                                                                                           |   |                               | 19,320 |   |               |   | 32,819 |   |
| Accounts      receivable                                                                                                                                                                            |   |                               | 28     |   |               |   | 39 |   |
| Other      receivables                                                                                                                                                                              |   |                               | 17     |   |               |   | 21 |   |
| Prepaid      income taxes                                                                                                                                                                           |   |                               | 97     |   |               |   | 85 |   |
| Prepaid      expenses                                                                                                                                                                               |   |                               | 62     |   |               |   | 154 |   |
| Total      current assets                                                                                                                                                                           |   |                               | 24,016 |   |               |   | 36,705 |   |
|             RENTAL PROPERTY, net                                                                                                                                      |   |                               | 1,109  |   |               |   | 1,210 |   |
|             DEFERRED INCOME TAXES, net                                                                                                                                |   |                               | 239    |   |               |   | 222 |   |
|             PREPAID COMMISSIONS AND OTHER ASSETS                                                                                                                      |   |                               | 229    |   |               |   | 167 |   |
| Total      assets                                                                                                                                                                                   |   | $                                  | 25,593 |   |               | $      | 38,304 |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                                                                     |   |                               |   |   |               |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                                                                           |   |                               |   |   |               |   |   |   |
| Accounts      payable                                                                                                                                                                               |   | $                                  | 102    |   |               | $      | 111 |   |
| Property      dividend payable                                                                                                                                                                      |   |                               | 16,384 |   |               |   | - |   |
| Accrued      payroll and related liabilities                                                                                                                                                        |   |                               | 20     |   |               |   | 204 |   |
| Accrued      expenses                                                                                                                                                                               |   |                               | 169    |   |               |   | 108 |   |
| Unearned      rents                                                                                                                                                                                 |   |                               | 66     |   |               |   | 102 |   |
| Tenant      deposits                                                                                                                                                                                |   |                               | 475    |   |               |   | 376 |   |
| Deferred      income taxes, net                                                                                                                                                                     |   |                               | 6,702  |   |               |   | 12,023 |   |
| Total      current liabilities                                                                                                                                                                      |   |                               | 23,918 |   |               |   | 12,924 |   |
| SHAREHOLDERS’      EQUITY:                                                                                                                                                                    |   |                               |   |   |               |   |   |   |
| Preferred      stock: 2,500 shares authorized; no par value; no shares issued and      outstanding                                                                                                  |   |                               | -      |   |               |   | - |   |
|          Common stock: 5,000 shares authorized, par value $0.0001; 1,240 and      1,188 shares issued and outstanding at December 31, 2007 and June 30,      2007, respectively |   |                               | -      |   |               |   | 3,625 |   |
| Accumulated      other comprehensive income                                                                                                                                                         |   |                               | 10,179 |   |               |   | 18,301 |   |
| Accumulated      deficit                                                                                                                                                                            |   |                               | (8,504 | )      |               |   | 3,454 |   |
| Total      shareholders’ equity                                                                                                                                                               |   |                               | 1,675  |   |               |   | 25,380 |   |
| Total      liabilities and shareholders’ equity                                                                                                                                               |   | $                                  | 25,593 |   |               | $      | 38,304 |   |

----

Table of Contents

CONDENSED STATEMENTS OF INCOME

|                                                 |   | Six      Months         |   |   | Three      Months       |   |
|------------------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                                 |   | Ended      December 31, |   |   | Ended      December 31, |   |
|                                                 |   | 2007                    |   |   | 2006                    |   |   | 2007 |   |   | 2006 |   |
| RENTAL      REVENUE –NET                  |   | $                       | 1,368  |   |                    | $      | 1,247 |   |   | $ | 694 |   |   | $ | 626 |   |
| TENANT      REIMBURSEMENTS                           |   |                    | 311    |   |                    |   | 361 |   |   |   | 142 |   |   |   | 154 |   |
| TOTAL      REVENUE                                   |   |                    | 1,679  |   |                    |   | 1,608 |   |   |   | 836 |   |   |   | 780 |   |
|                                                 |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      COSTS                                 |   |                    | 1,366  |   |                    |   | 1,343 |   |   |   | 658 |   |   |   | 774 |   |
| OPERATING      COSTS - RELATED PARTY EXPENSE         |   |                    | 3      |   |                    |   | 8 |   |   |   | 1 |   |   |   | 4 |   |
| TOTAL      OPERATING COSTS                           |   |                    | 1,369  |   |                    |   | 1,351 |   |   |   | 659 |   |   |   | 778 |   |
| OPERATING      INCOME                                |   |                    | 310    |   |                    |   | 257 |   |   |   | 177 |   |   |   | 2 |   |
|                                                 |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST      EXPENSE                                |   |                    | -      |   |                    |   | (7 | ) |   |   | - |   |   |   | - |   |
| INTEREST      INCOME                                 |   |                    | 81     |   |                    |   | 69 |   |   |   | 37 |   |   |   | 35 |   |
| LOSS      ON RETIREMENT OF RENTAL PROPERTY           |   |                    | (2     | )      |                    |   | - |   |   |   | - |   |   |   | - |   |
| OTHER      INCOME                                    |   |                    | 3      |   |                    |   | 3 |   |   |   | - |   |   |   | 1 |   |
| INCOME      BEFORE TAXES                             |   |                    | 392    |   |                    |   | 322 |   |   |   | 214 |   |   |   | 38 |   |
| INCOME      TAX PROVISION                            |   |                    | 169    |   |                    |   | 132 |   |   |   | 78 |   |   |   | 19 |   |
| NET      INCOME                                      |   | $                       | 223    |   |                    | $      | 190 |   |   | $ | 136 |   |   | $ | 19 |   |
|                                                 |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED      AVERAGE COMMON SHARES AND EQUIVALENTS: |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                |   |                    | 1,192  |   |                    |   | 1,137 |   |   |   | 1,192 |   |   |   | 1,150 |   |
| Diluted                                              |   |                    | 1,193  |   |                    |   | 1,160 |   |   |   | 1,193 |   |   |   | 1,175 |   |
|                                                 |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| INCOME      PER COMMON SHARE:                        |
| Basic                                                |   | $                       | 0.19   |   |                    | $      | 0.17 |   |   | $ | 0.11 |   |   | $ | 0.02 |   |
| Diluted                                              |   | $                       | 0.19   |   |                    | $      | 0.16 |   |   | $ | 0.11 |   |   | $ | 0.02 |   |
|                                                 |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

STATEMENT OF CHANGES IN SHAREHOLDERS’EQUITY

|                                                                                                                       |   | Common      Stock |    |   | Accumulated |   |    |                     |   |   | Total       |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-------------|--------|---------|--------------------------|--------|--------|-------------|--------|
|                                                                                                                       |   |              |    |   |        |   |    | Other      Comprehensive |   |   | Accumulated |   |   | Shareholders’ |   |
|                                                                                                                       |   | Shares            |    |   | Amount      |   |    | Income                   |   |   | Deficit     |   |   | Equity |   |
| BALANCE,      JUNE 30, 2007                                                                                                |   |              | 1,188   |   |        | $      | 3,625   |                     |   | $      | 18,301      |   |   | $ | 3,454 |   |   | $ | 25,380 |   |
|         Comprehensive      income:                                                 |   |              |    |   |        |   |    |                     |   |   |        |   |   |   |   |   |   |   |   |   |
|         Net      Income               |   |              | -  |   |        |   | -  |                     |   |   | -      |   |   |   | 223 |   |   |   | 223 |   |
| Other      comprehensive loss - Unrealized loss on available –for- sale securities,      net of tax benefit ($5,377) |   |              | -       |   |        |   | -       |                     |   |   | (8,122      | )      |   |   | -  |   |   |   | (8,122 | ) |
|            Total comprehensive loss                                                               |   |              |    |   |        |   |    |                     |   |   |        |   |   |   |   |   |   |   | (7,899 | ) |
| Property      dividend                                                                                                     |   |              | -       |   |        |   | (4,203  | )                        |   |   | -           |   |   |   | (12,181 | ) |   |   | (16,384 | ) |
| Stock      compensation expense                                                                                            |   |              | -       |   |        |   | 19      |                     |   |   | -           |   |   |   | - |   |   |   | 19 |   |
| Issuance      of common stock                                                                                              |   |              | 52      |   |        |   | 534     |                     |   |   | -           |   |   |   | - |   |   |   | 534 |   |
| Tax      benefit on exercise of options                                                                                    |   |              | -       |   |        |   | 25      |                     |   |   | -           |   |   |   | - |   |   |   | 25 |   |
| BALANCE,      DECEMBER 31, 2007                                                                                            |   |              | 1,240   |   |        | $      | -       |                     |   | $      | 10,179      |   |   | $ | (8,504 | ) |   | $ | 1,675 |   |

----

Table of Contents

STATEMENTS OF CASH FLOWS

|                                                                                                                                                                                                     |   | 2007   |   |   | 2006   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                               |   |   |   |   |   |   |
|                Net income                                                                                                                                        |   | $      | 223    |   |   | $      | 190 |   |
|           Adjustments to reconcile net income to net cash provided by      operating activities:                                                                                     |   |   |   |   |   |   |   |   |
| Loss      on retirement of rental property                                                                                                                                                               |   |   | 2      |   |   |   | - |   |
| Stock      compensation expense                                                                                                                                                                          |   |   | 19     |   |   |   | 96 |   |
| Depreciation      and amortization expense                                                                                                                                                               |   |   | 102    |   |   |   | 108 |   |
| Deferred      income tax benefit                                                                                                                                                                         |   |   | 39     |   |   |   | 2 |   |
| Changes      in assets and liabilities:                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                                                                                                                 |   |   | 11     |   |   |   | (20 | ) |
| Other      receivables                                                                                                                                                                                   |   |   | 4      |   |   |   | 15 |   |
| Prepaid      income taxes                                                                                                                                                                                |   |   | (12    | )      |   |   | 25 |   |
| Prepaid      expenses and other assets                                                                                                                                                                   |   |   | 92     |   |   |   | 70 |   |
| Prepaid      commissions and other assets                                                                                                                                                                |   |   | (62    | )      |   |   | 28 |   |
| Accounts      payable                                                                                                                                                                                    |   |   | (9     | )      |   |   | (117 | ) |
| Accrued      payroll and related liabilities                                                                                                                                                             |   |   | (184   | )      |   |   | (60 | ) |
| Accrued      expenses                                                                                                                                                                               |   |   | 61     |   |   |   | (154 | ) |
| Unearned      rents                                                                                                                                                                                      |   |   | (36    | )      |   |   | 11 |   |
| Tenant      deposits                                                                                                                                                                                     |   |   | 99     |   |   |   | 59 |   |
|                        Net      cash provided by  operating activities      |   |   | 349    |   |   |   | 253 |   |
|                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                               |   |   |   |   |   |   |   |   |
|               Capital expenditures                                                                                                                               |   |   | (3     | )      |   |   | (2 | ) |
|                                 Net cash used for investing activities |   |   | (3     | )      |   |   | (2 | ) |
|                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                               |   |   |   |   |   |   |   |   |
|        Principal      payments on debt                                                                                                                                |   |   | -      |   |   |   | (1,552 | ) |
|        Tax      benefit from exercise of stock options                                                                                                                |   |   | 25     |   |   |   | 63 |   |
|        Exercise      of stock options                                                                                                                                 |   |   | 534    |   |   |   | 185 |   |
|                             Net cash provided by (used for) financing activities           |   |   | 559    |   |   |   | (1,304 | ) |
| NET      INCREASE (DECREASE) IN CASH                                                                                                                                                                     |   |   | 905    |   |   |   | (1,053 | ) |
|                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                                                                                                                    |   |   | 3,587  |   |   |   | 3,851 |   |
| CASH      AND CASH EQUIVALENTS AT END OF PERIOD                                                                                                                                                          |   | $      | 4,492  |   |   | $      | 2,798 |   |
|                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Supplemental Cash Flow      Information                                                                                                                                                                  |   |
|                                                                                                                                                                                                     |   | 2007   |   |   | 2006   |   |
| Interest      paid                                                                                                                                                                                       |   | $      | -      |   |   | $      | 18 |   |
| Taxes      paid                                                                                                                                                                                          |   | $      | 117    |   |   | $      | 43 |   |

----

Table of Contents

NOTES TO CONDENSED FINANCIALSTATEMENTS

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                |   | Options |    |   | Weighted      Average Exercise Price |   |   | Weighted      Average Remaining Contractual Years |   |   | Aggregate      Intrinsic Value (in thousands) |   |
|-------------------------------------|--------|---------|---------|--------|--------------------------------------|--------|--------|---------------------------------------------------|--------|--------|-----------------------------------------------|--------|
| Balance,      June 30, 2007         |   |    | 57,000  |   |                                 | $      | 10.42  |                                              |   |   |                                          |   |   |   |
| Granted                             |   |    | -       |   |                                 |   | -      |                                              |   |   |                                          |   |   |   |
| Exercised                           |   |    | (52,000 | )      |                                 |   | 10.27  |                                              |   |   |                                          |   |   |   |
| Cancelled                           |   |    | -       |   |                                 |   | -      |                                              |   |   |                                          |   |   |   |
| Balance,      December 31, 2007     |   |    | 5,000   |   |                                 | $      | 13.05  |                                              |   |   | 8.96                                          |   |   | $ | 65 |   |
|                                |   |    |    |   |                                 |   |   |                                              |   |   |                                          |   |   |   |   |   |
| Exercisable,      December 31, 2007 |   |    | 5,000   |   |                                 | $      | 13.05  |                                              |   |   | 8.96                                          |   |   | $ | 65 |   |

|                | 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 |
| $13.05              | 5,000                    | 8.96                     | $13.05 | 5,000 | $13.05 |

|                                    |   | Six Months      Ended |   |
|----------------------------------------------|--------|----------------------------|--------|
|                                         |   | December      31, 2007     |   |
|                                    |   | Number of             |   |   | Weighted      Average |   |
|                                         |   | Shares                     |   |   | Grant      Date Fair Value |   |
| Unvested      balance at beginning of period |   |                       | 6,000  |   |   | $ | 4.08 |   |
| Granted                                      |   |                       | -      |   |   |   | - |   |
| Forfeited                                    |   |                       | -      |   |   |   | - |   |
| Vested                                       |   |                       | (6,000 | ) |   |   | 4.08 |   |
| Unvested      balance at end of period       |   |                       | -      |   |   |   | - |   |

----

Table of Contents

| Year      EndingJune      30 |   |  Amount |      |
|------------------------------|--------|--------------|-----------|
| Balance      of 2008         |   | $            | 1,598,000 |   |
| 2009                         |   |         | 2,028,000 |   |
| 2010                         |   |         | 1,874,000 |   |
| 2011                         |   |         | 1,773,000 |   |
| 2012                         |   |         | 1,141,000 |   |
| Thereafter      through 2017 |   |         | 559,000   |   |
| Total                        |   | $            | 8,973,000 |   |

----

Table of Contents

Management's Discussion 

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

Quantitative and Qualitative 

Controls and Procedures

----

Table of Contents

OTHER INFORMATION

Legal Proceedings

Unregistered Sales 

Defaults 

Submission 

|   |           |         |                                                                                                                                                                                  | Number      of Shares |   |
|--------|----------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------|
|   |           |         |                                                                                                                                                                                  | Voted      For        |   |   | Voted      Against |   |   | Withheld |   |
|   | 1.   |         | To      elect four directors to hold office until the Annual Meeting of      Stockholders to be held in 2008 or until their respective successors have      been elected or appointed |                  |   |   |   |   |   |   |   |   |
|   |           |         |     Walker      R. Stapleton                                                                                                                                      |                  |   | 978,257 |   |   |   |   |   |   | 69,694 |   |
|   |           |         |     David      J. Bugatto                                                                                                                                         |                  |   | 905,300 |   |   |   |   |   |   | 142,651 |   |
|   |           |         |     Robert      W. C. Davies                                                                                                                                      |                  |   | 986,672 |   |   |   |   |   |   | 61,279 |   |
|   |           |         |     David      A. Janke                                                                                                                                           |                  |   | 986,672 |   |   |   |   |   |   | 61,279 |   |
|   | 2.   |    | To      ratify the appointment of the accounting firm of Macias Gini &      O’Connell LLP as independent auditors for the fiscal year ending June 30,      2008.            |                  |   | 1,047,952 |   |   |   | - |   |   |   | - |   |
|   | 3.             |         | For      transaction of such other business as may come before the      meeting                                                                                                       |                  |   | 855,814 |   |   |   | 89,152 |   |   |   | 72,985 |   |

Other Information

Exhibits

|   | 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 + |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

SIGNATURES

----

Table of Contents

|  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 |

----

----