----

----

| x      | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) of                   |   |
|--------|-----------------------------------------------------------------------|--------|
|   | THE SECURITIES EXCHANGE ACT OF 1934                                   |   |
|   | For the quarterly period ended JULY 31, 2011                          |   |
|   |                                                                  |   |
| o      | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)                     |   |
|   | OF THE SECURITIES EXCHANGE ACT OF 1934                                |   |
|   | For the transition period from       to |   |
|   |                                                                  |   |
|   | Commission File Number 002-96666                                      |   |

| Delaware                                                             |   | 51-0102492                                    |
|----------------------------------------------------------------------|--------|-----------------------------------------------|
| (State or other jurisdiction of incorporation or organization)  |   |  (I.R.S. Employer Identification Number) |

| 4 Morris Street, Port Jefferson Station, NY            |   | 11776          |
|-------------------------------------------------------------|--------|----------------|
| (Address of principal executive offices)                    |   | (Zip Code)     |
|                                                        |   |           |
| (Registrant's telephone number, including area code)        |   | (631) 234-0140 |
|                                                        |   |           |
| Securities registered pursuant to Section 12(b) of the Act: |   | None           |
|                                                        |   |           |
| Securities registered pursuant to Section 12(g) of the Act: |   |           |
| Common Stock, $.01 par value                                |   |           |

| Large accelerated filer o | Accelerated filer o | Non-accelerated filer x |
|---------------------------|---------------------|-------------------------|

----

----

----

E

| Part I  -                                                                                                                               | Financial Information:                                                  | 3      |
|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|--------|
|                                                                                                                                              |                                                                    |
| Item I .                                                                                                                                     | Condensed Financial Statements:                                         |   |
|                                                                                                                                              |                                                                    |
| Consolidated Balance Sheets - July 31, 2011 and October 31, 2010                                                                                  | 4                                                                       |
|                                                                                                                                              |                                                                    |
| Consolidated Statements of Operations and Comprehensive Income (Loss) for the Nine Month Periods ended April 30, 2011 and 2010                    | 6                                                                       |
|                                                                                                                                              |                                                                    |
| Consolidated Statements of Changes in Stockholders’ Equity for the One Year and Nine Month Periods ended October 31, 2010 and July 31, 2011 | 10                                                                      |
|                                                                                                                                              |                                                                    |
| Consolidated Statements of Cash Flows for the Nine Month Periods ended July 31, 2011 and 2010                                                     | 11                                                                      |
|                                                                                                                                              |                                                                    |
| Notes to Consolidated Financial Statements                                                                                                        | 13                                                                      |
|                                                                                                                                              |                                                                    |
| Item II                                                                                                                                 | Management’s Discussion and Analysis of  Financial Condition | 28     |
|                                                                                                                                              |                                                                    |
| Liquidity and Capital Resources                                                                                                                   | 37                                                                      |
|                                                                                                                                              |                                                                    |
| Other Factors                                                                                                                                     | 38                                                                      |
|                                                                                                                                              |                                                                    |
| Item III                                                                                                                 | Quantitative and Qualitative Disclosures  About Market Risk        | 39     |
|                                                                                                                                              |                                                                    |
| Item IV                                                                                                                  | Controls and Procedures                                                 | 39     |
|                                                                                                                                              |                                                                    |
| Part II                                                                                                             | Other Information                                                       | 40     |
|                                                                                                                                              |                                                                    |
| Items 1 through 6                                                                                                                                 | 41                                                                      |
|                                                                                                                                              |                                                                    |
| Signatures and Certifications                                                                                                                     | 42                                                                      |

----

Index

INFORMATION

----

Index

EET

|                                                                                                                                                |   | JULY 31,    |      |   | OCT. 31,    |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|-------------|--------|
|                                                                                                                                                |   | 2011        |      |   | 2010        |   |
|                                                                                                                                                |   | (UNAUDITED) |      |   | (UNAUDITED) |   |
|                                                                                                                                                |   |        |      |   |        |   |
| ASSETS:                                                                                                                                             |   |        |      |   |        |   |
|                                                                                                                                                |   |        |      |   |        |   |
| CURRENT ASSETS:                                                                                                                                     |   |        |      |   |        |   |
|                                                                                                                                                |   |        |      |   |        |   |
| CASH AND CASH EQUIVALENTS                                                                                                                           |   | $           | 78,472    |   |        | $      | 510,361 |   |
|                                                                                                                                                |   |        |      |   |        |   |   |   |
| NOTES AND ACCOUNTS RECEIVABLE, NET OF AN ALLOWANCE FOR DOUBTFUL ACCOUNTS OF $ZERO AT BOTH JULY 31, 2011 AND OCTOBER 31, 2010,                       |   |        | 71,784    |   |        |   | 138,879 |   |
|                                                                                                                                                |   |        |      |   |        |   |   |   |
| STOCKYARDS INVENTORY                                                                                                                                |   |        | 1,260     |   |        |   | 14,608 |   |
|                                                                                                                                                |   |        |      |   |        |   |   |   |
| PREPAID EXPENSES                                                                                                                                    |   |        | 29,642    |   |        |   | 12,461 |   |
|                                                                                                                                                |   |        |      |   |        |   |   |   |
| TOTAL CURRENT ASSETS                                                                                                                                |   |        | 181,158   |   |        |   | 676,309 |   |
|                                                                                                                                                |   |        |      |   |        |   |   |   |
| NON-CURRENT ASSETS:                                                                                                                                 |   |        |      |   |        |   |   |   |
|                                                                                                                                                |   |        |      |   |        |   |   |   |
| PROPERTY ON OPERATING LEASES, NET OF ACCUMULATED DEPRECIATION OF $489,049AND $472,399 AT JULY 31, 2011 AND OCTOBER 31, 2010, RESPECTIVELY           |   |        | 1,388,557 |   |        |   | 1,391,407 |   |
|                                                                                                                                                |   |        |      |   |        |   |   |   |
| PROPERTY USED IN STOCKYARD OPERATIONS, NET OF ACCUMULATED DEPRECIATION OF $207,157 AND $191,857 AT JULY 31, 2011 AND OCTOBER 31, 2010, RESPECTIVELY |   |        | 554,282   |   |        |   | 532,672 |   |
|                                                                                                                                                |   |        |      |   |        |   |   |   |
| ART INVENTORY, NET OF A VALUATION ALLOWANCE OF $396,522 AT BOTH JULY 31, 2011 AND OCTOBER 31, 2010                                                  |   |        | 100,000   |   |        |   | 100,000 |   |
|                                                                                                                                                |   |        |      |   |        |   |   |   |
| OTHER ASSETS:                                                                                                                                       |   |        |      |   |        |   |   |   |
|                                                                                                                                                |   |        |      |   |        |   |   |   |
| PROPERTY HELD FOR DEVELOPMENT OR RESALE                                                                                                             |   |        | 52,250    |   |        |   | 52,250 |   |
| RESTRICTED CASH – LETTER OF CREDIT                                                                                                            |   |        | 140,000   |   |        |   | 140,000 |   |
| RESTRICTED CASH - TRANSIT INSURANCE                                                                                                                 |   |        | 40,700    |   |        |   | 26,000 |   |
| DEPOSITS AND OTHER ASSETS                                                                                                                           |   |        | 0         |   |        |   | 0 |   |
|                                                                                                                                                |   |        | 232,950   |   |        |   | 218,250 |   |
|                                                                                                                                                |   | $           | 2,456,947 |   |        | $      | 2,918,638 |   |

----

Index

|                                                                                                                                                                                                                                                                               |   | JULY 31, 2011 |           |   | OCT.31, 2010 |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------------|--------|--------------|---------|
|                                                                                                                                                                                                                                                                               |   | (UNAUDITED)   |           |   | (UNAUDITED)  |    |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |
| LIABILITIES & STOCKHOLDERS' EQUITY:                                                                                                                                                                                                                                            |   |          |           |   |         |    |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |
| CURRENT LIABILITIES:                                                                                                                                                                                                                                                               |   |          |           |   |         |    |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                                                                                                                                                                                                              |   | $             | 73,886         |   |         | $       | 267,827 |   |
| ACCRUED PROFESSIONAL FEES                                                                                                                                                                                                                                                          |   |          | 37,205         |   |         |    | 55,000 |   |
| INCOME TAXES PAYABLE                                                                                                                                                                                                                                                               |   |          | 10,000         |   |         |    | 10,000 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                                                                                                                                                          |   |          | 121,091        |   |         |    | 332,827 |   |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
| NON-CURRENT LIABILITIES:                                                                                                                                                                                                                                                           |   |          |           |   |         |    |   |   |
| LONG-TERM PENSION LIABILITY                                                                                                                                                                                                                                                        |   |          | 714,830        |   |         |    | 869,676 |   |
| PREFERRED STOCK DIVIDEND PAYABLE                                                                                                                                                                                                                                                   |   |          | 223,550        |   |         |    | 169,550 |   |
| SALARIES AND INTEREST PAYABLE – OFFICERS                                                                                                                                                                                                                                     |   |          | 344,025        |   |         |    | 175,000 |   |
| REAL ESTATE TAXES PAYABLE                                                                                                                                                                                                                                                          |   |          | 55,182         |   |         |    | 44,543 |   |
| OTHER NON-CURRENT LIABILITIES                                                                                                                                                                                                                                                      |   |          | 40,700         |   |         |    | 26,000 |   |
| TOTAL NON-CURRENT LIABILITIES                                                                                                                                                                                                                                                      |   |          | 1,378,287      |   |         |    | 1,284,769 |   |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
| LONG-TERM DEBT, RELATED PARTY                                                                                                                                                                                                                                                      |   |          | 847,000        |   |         |    | 847,000 |   |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                                                      |   |          |           |   |         |    |   |   |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
| STOCKHOLDERS' EQUITY:                                                                                                                                                                                                                                                              |   |          |           |   |         |    |   |   |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
| PREFERRED STOCK, $0.01 PAR VALUE:10,000,000 SHARES AUTHORIZED; 9,102,655SHARES ISSUED AND OUTSTANDING AT JULY 31,2011 AND OCTOBER 31, 2010, RESPECTIVELY AND AGGREGATE LIQUIDATION PREFERENCE OF $10 PER SHARE FOR $ 91,026,550 AT JULY 31, 2011AND OCTOBER 31, 2010, RESPECTIVELY |   |          | 91,027         |   |         |    | 91,027 |   |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
| COMMON STOCK, $0.01 PAR VALUE:10,000,000 SHARES AUTHORIZED; 5,313,794SHARES ISSUED AND 4,326,929 SHARES OUT-STANDING AT JULY 31, 2011 AND OCTOBER 31,2010, RESPECTIVELY                                                                                                            |   |          | 53,138         |   |         |    | 53,138 |   |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
| ADDITIONAL PAID-IN CAPITAL                                                                                                                                                                                                                                                         |   |          | 28,322,341     |   |         |    | 28,322,341 |   |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
| ACCUMULATED DEFICIT                                                                                                                                                                                                                                                                |   |          | (15,539,019.00 | )      |         |    | (15,114,546.00 | ) |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
| 986,865 SHARES OF COMMON STOCK HELD IN TREASURY, AT COST                                                                                                                                                                                                                           |   |          | (11,003,545.00 | )      |         |    | (11,003,545.00 | ) |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
| COMPREHENSIVE INCOME:                                                                                                                                                                                                                                                              |   |          |           |   |         |    |   |   |
| PENSION VALUATION RESERVE                                                                                                                                                                                                                                                          |   |          | (1,813,373.00  | )      |         |    | (1,894,373.00 | ) |
|                                                                                                                                                                                                                                                                               |   |          | 110,569        |   |         | 454,042 |   |
|                                                                                                                                                                                                                                                                               |   |          |           |   |         |    |   |   |
|                                                                                                                                                                                                                                                                               |   | $             | 2,456,947      |   |         | $       | 2,918,638 |   |

----

Index

 INCOME 

|                                    |   | 2011        |        |   | 2010        |   |
|-----------------------------------------|--------|-------------|-------------|--------|-------------|--------|
|                                    |   | (UNAUDITED) |        |   | (UNAUDITED) |   |
|                                    |   |        |        |   |        |   |
| REAL ESTATE OPERATIONS:                 |   |        |        |   |        |   |
|                                    |   |        |        |   |        |   |
| REAL ESTATE REVENUES:                   |   |        |        |   |        |   |
| SALE OF REAL ESTATE                     |   |        | 0           |   |        |   | 0 |   |
| OUTSIDE REAL ESTATE RENT                |   |        | 202,732     |   |        |   | 202,284 |   |
| EXCHANGE BUILDING RENTAL INCOME         |   |        | 0           |   |        |   |  14,493 |   |
|                                    |   |        | 202,732     |   |        |   |  216,777 |   |
|                                    |   |        |        |   |        |   |   |   |
| REAL ESTATE EXPENSES:                   |   |        |        |   |        |   |   |   |
| COST OF REAL ESTATE SOLD                |   |        | 0           |   |        |   | 0 |   |
| LABOR, OPERATING AND MAINTENANCE        |   |        | 7,034       |   |        |   | 19,343 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 16,650      |   |        |   | 16,650 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 11,250      |   |        |   | 16,550 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 7,650       |   |        |   |  16,873 |   |
|                                    |   |        | 42,584      |   |        |   |  69,416 |   |
|                                    |   |        |        |   |        |   |   |   |
| INCOME FROM REAL ESTATE OPERATIONS      |   |        | 160,148     |   |        |   |  147,361 |   |
|                                    |   |        |        |   |        |   |   |   |
|                                    |   |        |        |   |        |   |   |   |
| STOCKYARD OPERATIONS:                   |   |        |        |   |        |   |   |   |
|                                    |   |        |        |   |        |   |   |   |
| STOCKYARD REVENUES:                     |   |        |        |   |        |   |   |   |
| YARD HANDLING AND AUCTION               |   | $           | 1,255,424   |   |        | $      | 1,353,303 |   |
| FEED AND BEDDING INCOME                 |   |        | 83,224      |   |        |   | 79,836 |   |
| RENTAL & OTHER INCOME               |   |        | 92,629      |   |        |   |  214,369 |   |
|                                    |   |        | 1,431,277   |   |        |   |  1,647,508 |   |
|                                    |   |        |        |   |        |   |   |   |
| STOCKYARD EXPENSES:                     |   |        |        |   |        |   |   |   |
| LABOR AND RELATED COSTS                 |   |        | 562,070     |   |        |   | 610,017 |   |
| OTHER OPERATING AND MAINTENANCE         |   |        | 332,280     |   |        |   | 386,417 |   |
| FEED AND BEDDING EXPENSE                |   |        | 66,311      |   |        |   | 66,125 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 15,300      |   |        |   | 10,103 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 56,909      |   |        |   | 116,272 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 246,315     |   |        |   |  244,123 |   |
|                                    |   |        | 1,279,185   |   |        |   |  1,433,057 |   |
|                                    |   |        |        |   |        |   |   |   |
| INCOME (LOSS) FROM STOCKYARD OPERATIONS |   |        | 152,092     |   |        |   |  214,451 |   |
|                                    |   |        |        |   |        |   |   |   |
|                                    |   |        |        |   |        |   |   |   |
| GENERAL AND ADMINISTRATIVE EXPENSE      |   |        | (619,510.00 | )      |        |   | (627,896.00 | ) |
|                                    |   |        |        |   |        |   |   |   |
|                                    |   |        |        |   |        |   |   |   |
| (LOSS) INCOME FROM OPERATIONS           |   |        | (307,270.00 | )      |        |   | (266,084.00 | ) |

----

Index

|                                                 |   | 2011        |        |   | 2010        |         |
|------------------------------------------------------|--------|-------------|-------------|--------|-------------|--------------|
|                                                 |   | (UNAUDITED) |        |   | (UNAUDITED) |         |
|                                                 |   |        |        |   |        |         |
| OTHER (EXPENSE) INCOME:                              |   |        |        |   |        |         |
| INTEREST & OTHER INCOME                          |   |        | 322         |   |        |         | 407 |   |
| INTEREST EXPENSE                                     |   |        | (63,525.00  | )      |        |         | (88,179.00 | ) |
| ART SALES AND OPERATIONS                             |   |        | 0           |   |        |  0      |   |
|                                                 |   |        | (63,203.00  | )      |        |         | (87,772.00 | ) |
|                                                 |   |        |        |   |        |         |   |   |
| (LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES      |   |        | (370,473.00 | )      |        |         | (353,856.00 | ) |
| PROVISION FOR INCOME TAXES                           |   |        | 0           |   |        |  0      |   |
|                                                 |   |        |        |   |        |         |   |   |
| NET (LOSS) INCOME                                    |   |        | (370,473    | )      |        |         | (353,856 | ) |
|                                                 |   |        |        |   |        |         |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME:                   |   |        |        |   |        |         |   |   |
|                                                 |   |        |        |   |        |         |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                 |   |        | 81,000      |   |        |  81,000 |   |
|                                                 |   |        |        |   |        |         |   |   |
| COMPREHENSIVE (LOSS) INCOME                          |   | $           | (289,473    | )      |        | $            | (272,856 | ) |
| (LOSS) EARNINGS PER COMMON SHARE:                    |   |        |        |   |        |         |   |   |
|                                                 |   |        |        |   |        |         |   |   |
| NET (LOSS) INCOME                                    |   | $           | (370,473    | )      |        | $            | (353,856 | ) |
|                                                 |   |        |        |   |        |         |   |   |
| LESS PREFERRED STOCK DIVIDEND                        |   |        | (54,000.00  | )      |        |         | (54,000.00 | ) |
|                                                 |   |        |        |   |        |         |   |   |
| (LOSS) INCOME AVAILABLE TO COMMON STKDERS            |   | $           | (424,473    | )      |        | $            | (407,856 | ) |
|                                                 |   |        |        |   |        |         |   |   |
|                                                 |   |        |        |   |        |         |   |   |
| NET (LOSS) INCOME PER COMMON SHARE BASIC AND DILUTED |   | $           | (0.10       | )      |        | $            | (0.09 | ) |
|                                                 |   |        |        |   |        |         |   |   |
| AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED       |   |        | 4,326,929   |   |        |         | 4,326,929 |   |

----

Index

|                                    |   | 2011        |        |   | 2010        |   |
|-----------------------------------------|--------|-------------|-------------|--------|-------------|--------|
|                                    |   | (UNAUDITED) |        |   | (UNAUDITED) |   |
| REAL ESTATE OPERATIONS:                 |   |        |        |   |        |   |
|                                    |   |        |        |   |        |   |
| REAL ESTATE REVENUES:                   |   |        |        |   |        |   |
| SALE OF REAL ESTATE                     |   |        | 0           |   |        |   | 0 |   |
| OUTSIDE REAL ESTATE RENT                |   |        | 66,244      |   |        |   | 67,270 |   |
| EXCHANGE BUILDING RENTAL INCOME         |   |        | 0           |   |        |   |  2,414 |   |
|                                    |   |        | 66,244      |   |        |   |  69,684 |   |
|                                    |   |        |        |   |        |   |   |   |
| REAL ESTATE EXPENSES:                   |   |        |        |   |        |   |   |   |
| COST OF REAL ESTATE SOLD                |   |        | 0           |   |        |   | 0 |   |
| LABOR, OPERATING AND MAINTENANCE        |   |        | 2,500       |   |        |   | 5,765 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 5,550       |   |        |   | 5,550 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 3,750       |   |        |   | 5,550 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 2,550       |   |        |   |  7,257 |   |
|                                    |   |        | 14,350      |   |        |   |  24,122 |   |
|                                    |   |        |        |   |        |   |   |   |
| INCOME FROM REAL ESTATE OPERATIONS      |   |        | 51,894      |   |        |   |  45,562 |   |
|                                    |   |        |        |   |        |   |   |   |
| STOCKYARD REVENUES:                     |   |        |        |   |        |   |   |   |
| YARD HANDLING AND AUCTION               |   | $           | 216,003     |   |        | $      | 277,142 |   |
| FEED AND BEDDING INCOME                 |   |        | 16,161      |   |        |   | 21,817 |   |
| RENTAL & OTHER INCOME               |   |        | 27,471      |   |        |   |  34,028 |   |
|                                    |   |        | 259,635     |   |        |   |  332,987 |   |
|                                    |   |        |        |   |        |   |   |   |
| STOCKYARD EXPENSES:                     |   |        |        |   |        |   |   |   |
| LABOR AND RELATED COSTS                 |   |        | 150,917     |   |        |   | 145,810 |   |
| OTHER OPERATING AND MAINTENANCE         |   |        | 92,598      |   |        |   | 111,536 |   |
| FEED AND BEDDING EXPENSE                |   |        | 16,197      |   |        |   | 15,826 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 5,100       |   |        |   | 3,368 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 16,513      |   |        |   | 35,886 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 45,131      |   |        |   |  54,641 |   |
|                                    |   |        | 326,456     |   |        |   |  367,067 |   |
|                                    |   |        |        |   |        |   |   |   |
| INCOME (LOSS) FROM STOCKYARD OPERATIONS |   |        | (66,821.00  | )      |        |   | (34,080.00 | ) |
|                                    |   |        |        |   |        |   |   |   |
| GENERAL AND ADMINISTRATIVE EXPENSE      |   |        | (205,483.00 | )      |        |   | (208,042.00 | ) |
|                                    |   |        |        |   |        |   |   |   |
| (LOSS) INCOME FROM OPERATIONS           |   |        | (220,410.00 | )      |        |   | (196,560.00 | ) |

----

Index

|                                                 |   | 2011        |        |   | 2010        |   |
|------------------------------------------------------|--------|-------------|-------------|--------|-------------|--------|
|                                                 |   | (UNAUDITED) |        |   | (UNAUDITED) |   |
|                                                 |   |        |        |   |        |   |
| OTHER (EXPENSE) INCOME:                              |   |        |        |   |        |   |
| INTEREST & OTHER INCOME                          |   |        | 53          |   |        |   | 177 |   |
| INTEREST EXPENSE                                     |   |        | (21,175.00  | )      |        |   | (33,300.00 | ) |
| ART SALES AND OPERATIONS                             |   |        | 0           |   |        |   |  0 |   |
|                                                 |   |        | (21,122.00  | )      |        |   | (33,123.00 | ) |
|                                                 |   |        |        |   |        |   |   |   |
|                                                 |   |        |        |   |        |   |   |   |
| (LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES      |   |        | (241,532.00 | )      |        |   | (229,683.00 | ) |
| PROVISION FOR INCOME TAXES                           |   |        | 0           |   |        |   |  0 |   |
| NET (LOSS) INCOME                                    |   |        | (241,532.00 | )      |        |   | (229,683.00 | ) |
|                                                 |   |        |        |   |        |   |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME:                   |   |        |        |   |        |   |   |   |
|                                                 |   |        |        |   |        |   |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                 |   |        | 27,000      |   |        |   |  27,000 |   |
|                                                 |   |        |        |   |        |   |   |   |
| COMPREHENSIVE (LOSS) INCOME                          |   | $           | (214,532    | )      |        | $      | (202,683 | ) |
|                                                 |   |        |        |   |        |   |   |   |
| (LOSS) EARNINGS PER COMMON SHARE:                    |   |        |        |   |        |   |   |   |
|                                                 |   |        |        |   |        |   |   |   |
| NET (LOSS) INCOME                                    |   | $           | (241,532    | )      |        | $      | (229,683 | ) |
| LESS PREFERRED STOCK DIVIDEND                        |   |        | (18,000.00  | )      |        |   | (18,000.00 | ) |
|                                                 |   |        |        |   |        |   |   |   |
| (LOSS) INCOME AVAILABLE TO COMMON STKDERS            |   | $           | (259,532    | )      |        | $      | (247,683 | ) |
|                                                 |   |        |        |   |        |   |   |   |
| NET (LOSS) INCOME PER COMMON SHARE BASIC AND DILUTED |   | $           | (0.06       | )      |        | $      | (0.06 | ) |
|                                                 |   |        |        |   |        |   |   |   |
| AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED       |   |        | 4,326,929   |   |        |   | 4,326,929 |   |

----

Index

OLDER

|                      |   | COMMON STOCK |      |   | PREFERRED STOCK |   |   |   |   |   |      |   |   |       |   |   |        |   |
|---------------------------|--------|--------------|-----------|--------|-----------------|--------|--------|--------|--------|--------|-----------|--------|--------|------------|--------|--------|-------------|--------|
|                      |   | NUMBER       |      |   |            |   |   | NUMBER |   |   |      |   |   | ADDITIONAL |   |   |        |   |   |   |   |   | TREASURY |   |
|                      |   | OF           |      |   |            |   |   | OF     |   |   |      |   |   | PAID-IN    |   |   | ACCUMULATED |   |   | COMPREHENSIV |   |   | STOCK, |   |
|                      |   | SHARES       |      |   | AMOUNT          |   |   | SHARES |   |   | AMOUNT    |   |   | CAPITAL    |   |   | DEFICIT     |   |   | LOSS |   |   | AT COST |   |
|                      |   |         |      |   |            |   |   |   |   |   |      |   |   |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, OCTOBER 31, 2009 |   |         | 5,313,794 |   |            | $      | 53,138 |   |   |   | 9,102,655 |   |   | $          | 91,027 |   |        | $      | 28,322,341 |   |   | $ | (15,068,051 | ) |   | $ | (1,915,985 | ) |   | $ | (11,003,545 | ) |
| NET INCOME                |   |         | 0         |   |            |   | 0      |   |   |   | 0         |   |   |       | 0      |   |        |   | 0 |   |   |   | 10,505 |   |   |   | 0 |   |   |   | 0 |   |
| PREFERRED STOCK DIVIDEND  |   |         | 0         |   |            |   | 0      |   |   |   | 0         |   |   |       | 0      |   |        |   | 0 |   |   |   | -57,000 |   |   |   | 0 |   |   |   | 0 |   |
| MINIMUM PEN. LIAB. ADJ.   |   |         | 0         |   |            |   | 0      |   |   |   | 0         |   |   |       | 0      |   |        |   | 0 |   |   |   | 0 |   |   |   | 21,612 |   |   |   | 0 |   |
|                      |   |         |      |   |            |   |   |   |   |   |      |   |   |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, OCTOBER 31, 2010 |   |         | 5,313,794 |   |            | $      | 53,138 |   |   |   | 9,102,655 |   |   | $          | 91,027 |   |        | $      | 28,322,341 |   |   | $ | (15,114,546 | ) |   | $ | (1,894,373 | ) |   | $ | (11,003,545 | ) |
| NET LOSS                  |   |         | 0         |   |            |   | 0      |   |   |   | 0         |   |   |       | 0      |   |        |   | 0 |   |   |   | -370,473 |   |   |   | 0 |   |   |   | 0 |   |
| PREFERRED STOCK DIVIDEND  |   |         | 0         |   |            |   | 0      |   |   |   | 0         |   |   |       | 0      |   |        |   | 0 |   |   |   | -54,000 |   |   |   | 0 |   |   |   | 0 |   |
| MINIMUM PEN. LIAB. ADJ.   |   |         | 0         |   |            |   | 0      |   |   |   | 0         |   |   |       | 0      |   |        |   | 0 |   |   |   | 0 |   |   |   | 81,000 |   |   |   | 0 |   |
|                      |   |         |      |   |            |   |   |   |   |   |      |   |   |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, JULY 31, 2011    |   |         | 5,313,794 |   |            | $      | 53,138 |   |   |   | 9,102,655 |   |   | $          | 91,027 |   |        | $      | 28,322,341 |   |   | $ | (15,539,019 | ) |   | $ | (1,813,373 | ) |   | $ | (11,003,545 | ) |

----

Index

SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                                 |   | JULY 2011 |        |   | JULY 2010 |    |
|------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|-----------|---------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                |   |      |        |   |      |    |
|   NET (LOSS) INCOME                                                                        |   | $         | (370,473    | )      |      | $       | (353,856 | ) |
|                                                                                                 |   |      |        |   |      |    |   |   |
| ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH  (USED IN) PROVIDED BY OPERATING ACTIVITIES: |   |      |        |   |      |    |   |   |
|                                                                                                 |   |      |        |   |      |    |   |   |
| DEPRECIATION AND AMORTIZATION                                                                        |   |      | 31,950      |   |      |    | 26,753 |   |
| GAIN ON SALES OF REAL ESTATE                                                                         |   |      | 0           |   |      |    | 0 |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                                                                 |   |      | 81,000      |   |      |    | 81,000 |   |
|                                                                                                 |   |      |        |   |      |    |   |   |
| DECREASE (INCREASE) IN ASSETS:                                                                       |   |      |        |   |      |    |   |   |
|                                                                                                 |   |      |        |   |      |    |   |   |
| NOTES AND ACCOUNTS RECEIVABLE                                                                        |   |      | 67,095      |   |      |    | (164,470.00 | ) |
| STOCKYARDS INVENTORY                                                                                 |   |      | 13,348      |   |      |    | 11,729 |   |
| PREPAID EXPENSES                                                                                     |   |      | (17,181.00  | )      |      |    | (44,974.00 | ) |
| RESTRICTED CASH – LETTER OF CREDIT                                                             |   |      | 0           |   |      |    | -10,000 |   |
| RESTRICTED CASH – TRANSIT INSURANCE                                                            |   |      | (14,700.00  | )      |      |    | (6,535.00 | ) |
|                                                                                                 |   |      |        |   |      |    |   |   |
| INCREASE (DECREASE) IN LIABILITIES:                                                                  |   |      |        |   |      |    |   |   |
|                                                                                                 |   |      |        |   |      |    |   |   |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                                |   |      | (193,941.00 | )      |      |    | 113,159 |   |
| PENSION PLAN PAYABLE                                                                                 |   |      | 0           |   |      |    | 0 |   |
| PAYABLE TO EXECUTIVE OFFICERS                                                                        |   |      | 169,025     |   |      |    | 337,875 |   |
| ACCRUED PROFESSIONAL FEES                                                                            |   |      | (17,795.00  | )      |      |    | (65,969.00 | ) |
| LONG-TERM PENSION LIABILITY                                                                          |   |      | (154,846.00 | )      |      |    | (14,540.00 | ) |
| REAL ESTATE TAXES PAYABLE                                                                            |   |      | 10,639      |   |      |    | (27,391.00 | ) |
| OTHER NON-CURRENT LIABILITIES                                                                        |   |      | 14,700      |   |      | 0       |   |
| TOTAL ADJUSTMENTS                                                                                    |   |      | (10,706.00  | )      |      | 236,637 |   |
|                                                                                                 |   |      |        |   |      |    |   |   |
| NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES                                                  |   |      | (381,179.00 | )      |      |    | (117,219.00 | ) |

----

Index

|                                                                  |   | JULY 2010 |        |   | JULY 2010 |   |
|-----------------------------------------------------------------------|--------|-----------|-------------|--------|-----------|--------|
|                                                                  |   |      |        |   |      |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                 |   |      |        |   |      |   |
|                                                                  |   |      |        |   |      |   |
| PROCEEDS FROM SALES OF REAL ESTATE                                    |   |      | 0           |   |      |   | 0 |   |
| COSTS RELATING TO SALES OF REAL ESTATE                                |   |      | 0           |   |      |   | 0 |   |
| CAPITAL EXPENDITURES                                                  |   |      | (50,710     | )      |      |   | (375,000 | ) |
| NET CASH PROVIDED BY INVESTING ACTIVITIES                             |   |      | (50,710     | )      |      |   | (375,000 | ) |
|                                                                  |   |      |        |   |      |   |   |   |
| CASH FLOWS PROVIDED BY (USED) IN FINANCING  ACTIVITIES:     |   |      |        |   |      |   |   |   |
|                                                                  |   |      |        |   |      |   |   |   |
| PROCEEDS FROM LONG-TERM DEBT OBLIGATION                               |   |      | 0           |   |      |   | 340,000 |   |
| REPAYMENT OF LONG-TERM DEBT OBLIGATION                                |   |      | 0           |   |      |   | 0 |   |
|                                                                  |   |      |        |   |      |   |   |   |
| NET CASH PROVIDED BY (USED) IN FINANCING  ACTIVITIES        |   |      | 0           |   |      |   | 340,000 |   |
|                                                                  |   |      |        |   |      |   |   |   |
| NET (DECREASE) INCREASE IN CASH AND CASH  EQUIVALENTS       |   |      | (431,889.00 | )      |      |   | (152,219.00 | ) |
|                                                                  |   |      |        |   |      |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGN OF YEAR                             |   |      | 510,361     |   |      |   | 154,624 |   |
|                                                                  |   |      |        |   |      |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF YEAR                              |   | $         | 78,472      |   |      | $      | 2,405 |   |
|                                                                  |   |      |        |   |      |   |   |   |
|                                                                  |   | JULY 31,  |        |
|                                                                  |   | 2011      |        |   | 2010      |   |
|                                                                  |   |      |        |   |      |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW  INFORMATION:         |   |      |        |   |      |   |   |   |
|                                                                  |   |      |        |   |      |   |   |   |
| CASH PAID DURING THE YEAR FOR:                                        |   |      |        |   |      |   |   |   |
|                                                                  |   |      |        |   |      |   |   |   |
| INTEREST                                                              |   | $         | 63,525      |   |      | $      | 88,179 |   |
| INCOME TAXES                                                          |   | $         | 0           |   |      | $      | 0 |   |
|                                                                  |   |      |        |   |      |   |   |   |
| SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: |   |      |        |   |      |   |   |   |
|                                                                  |   |      |        |   |      |   |   |   |
| PREFERRED STOCK DIVIDENDS                                             |   | $         | 54,000      |   |      | $      | 54,000 |   |

----

Index

TO CONSOLIDATED 

| 1.  | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION |
|----------|---------------------------------------------------|

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

| 3.  | INTERIM FINANCIAL STATEMENTS |
|----------|------------------------------|

| 4.  | STOCK OPTION PLAN |
|----------|-------------------|

----

Index

| 5.  | BORROWINGS |
|----------|------------|

|                                                          |   | July 31, |   |   | October 31, |   |
|---------------------------------------------------------------|--------|----------|--------|--------|-------------|--------|
| ($ 000's Omitted)                                             |   | 2011     |   |   | 2010        |   |
| Variable rate mortgage notes due May 15, 2012 - related party |   | $        | 847    |   |        | $      | 847 |   |
| Less -- current maturities                                    |   |     | 0      |   |        |   | 0 |   |
| Long-term debt                                                |   | $        | 847    |   |        | $      | 847 |   |

|                       |   | Total  |   |   | Less Than 1 year |   |   | 1 - 3Years |   |   | 3 - 5 Years |   |   | More Than5Yrs. |   |
|----------------------------|--------|--------|--------|--------|------------------|--------|--------|------------|--------|--------|-------------|--------|--------|---------------------|--------|
|                       |   |   |   |   |             |   |   |       |   |   |        |   |   |                |   |
| Pension Plan Liability (a) |   | $      | 715    |   |             | $      | 125    |       |   | $      | 400         |   |   | $                   | 190    |   |   | $ | 0 |   |
| Mortgage Notes Payable (b) |   |   | 847    |   |             |   | 0      |       |   |   | 847         |   |   |                | 0      |   |   |   | 0 |   |
|                       |   | $      | 1,562  |   |             | $      | 125    |       |   | $      | 1,247       |   |   | $                   | 190    |   |   | $ | 0 |   |

|   | (a) | See Note 16. |
|--------|-----|--------------|

|   | (b) | The mortgage notes are due May 15, 2012 and are held entirely by the Company’s Chief Executive Officer and members of his family. These notes carry annual interest of 10% and are collateralized by substantially all of Canal’s property, the stock of certain subsidiaries and its art inventories. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| 6.  | RESTRICTED CASH |
|----------|-----------------|

| 7.  | INCOME TAXES |
|----------|--------------|

| 8.  | IMPAIRMENT LOSS ON LONG-LIVED ASSETS |
|----------|--------------------------------------|

----

Index

| 9.  | ART INVENTORY HELD FOR SALE |
|----------|-----------------------------|

| 10.  | LEASE COMMITMENTS |
|-----------|-------------------|

| 11.  | MINIMUM FUTURE RENTALS ON OPERATING LEASES |
|-----------|--------------------------------------------|

----

Index

| 12.  | PROPERTY ON OPERATING LEASES |
|-----------|------------------------------|

|                              | Current Year |            |
|-----------------------------------|--------------|-----------------|
|                              | (Retirements |            |
|                              |         | Historical Cost |   |   | Additions |   |   |   |   |   | Carrying |   |
| Description (1)                   |         | Land            |   |   | Bldgs. &Imprvmts. |   |   | Land |   |   | Bldgs. &Imprvmts. |   |   | Accum.Depr. |   |   | Value07/31/11 |   |
| New York office                   |         |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Leasehold assets                  |         | $               | 0 |   |   | $ | 8 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | (8 | ) |   | $ | 0 |   |
|                              |         |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 9 acres of land                   |         |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in Omaha, NE                      |         | $               | 800 |   |   | $ | 21 |   |   | $ | 0 |   |   | $ | 14 |   |   | $ | (19 | ) |   | $ | 816 |   |
| Acquired in 1976                  |         |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |         |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3 acres of land                   |         |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in S. St. Paul, MN                |         | $               | 10 |   |   | $ | 485 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | (462 | ) |   | $ | 33 |   |
| Acquired in 1937                  |         |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |         |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 4 acres of land                   |         |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in Sioux City, IAAcquired in 1937 |         | $               | 540 |   |   | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 540 |   |
|                              |         |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |         | $               | 1,350 |   |   | $ | 514 |   |   | $ | 0 |   |   | $ | 14 |   |   | $ | (489 | ) |   | $ | 1,389 |   |

|                          |   | July 31, |   |   | October 31, |   |
|-------------------------------|--------|----------|--------|--------|-------------|--------|
|                          |   | 2011     |   |   | 2010        |   |
| Balance at beginning of year  |   |     | 1391   |   |        |   | 1074 |   |
| Acquisitions and Improvements |   |     | 14     |   |        |   | 0 |   |
| Cost of property sold         |   |     | 0      |   |        |   | 0 |   |
| Depreciation                  |   |     | (16    | )      |        |   | (23 | ) |
| Reclassifications             |   |     | 0      |   |        |   | 340 |   |
| Balance at end of the period  |   |     | 1389   |   |        |   | 1391 |   |

|   | (1) | Substantially all of Canal’s real property is pledged as collateral for its debt obligations. |
|--------|-----|----------------------------------------------------------------------------------------------------------|

----

Index

| 13.  | PROPERTY USED IN STOCKYARD OPERATIONS |
|-----------|---------------------------------------|

|                                                |   |            |   |   | Current Year          |   |   |   |   |   |                  |   |
|-----------------------------------------------------|--------|-----------------|--------|--------|-----------------------|--------|--------|--------|--------|--------|-----------------------|--------|
|                                                |   |            |   |   | (Retirements)         |   |   |   |   |   |                  |   |
|                                                |   | Historical Cost |   |   | Additions             |   |   |   |   |   | Carrying              |   |
| Description (1)                                     |   | Land            |   |   | Bldgs. &Imprvmts. |   |   | Land   |   |   | Bldgs. &Imprvmts. |   |   | Accum.Depr. |   |   | Value07/31/11 |   |
|                                                |   |            |   |   |                  |   |   |   |   |   |                  |   |   |   |   |   |   |   |
| 30 acres of land in St. Joseph, MO Acquired in 1942 |   | $               | 400    |   |                  | $      | 325    |   |   | $      | 0                     |   |   | $ | 37 |   |   | $ | (206) |   |   |   | 554 |   |

|                          |   | July 31, |   |   | October 31, |   |
|-------------------------------|--------|----------|--------|--------|-------------|--------|
|                          |   | 2011     |   |   | 2010        |   |
|                          |   |     |   |   |        |   |
| Balance at beginning of year  |   | $        | 533    |   |        | $      | 988 |   |
| Acquisitions and Improvements |   |     | 37     |   |        |   | 60 |   |
| Transfers                     |   |     | 0      |   |        |   | (502 | ) |
| Depreciation                  |   |     | (16    | )      |        |   | (13 | ) |
| Balance at end of the period  |   | $        | 554    |   |        | $      | 533 |   |

----

Index

| 14.  | PROPERTY HELD FOR DEVELOPMENT OR RESALE |
|-----------|-----------------------------------------|

|                              |   | Current Year    |   |
|-----------------------------------|--------|-----------------|--------|
|                              |   | (Retirements)   |   |
|                              |   | Historical Cost |   |   | Additions |   |   |   |   |   | Carrying |   |
| Description (1)                   |   | Land            |   |   | Bldgs. &Imprvmts. |   |   | Land |   |   | Bldgs. &Imprvmts. |   |   | Accum.Depr. |   |   | Value07/31/11 |   |
|                              |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2 acres of land                   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in Sioux City, IAAcquired in 1937 |   |            | 53     |   |   |   | N/A |   |   | $ | 0 |   |   |   | N/A |   |   |   | N/A |   |   |   | 53 |   |
|                              |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | $               | 53     |   |   |   | N/A |   |   | $ | 0 |   |   |   | N/A |   |   |   | N/A |   |   | $ | 53 |   |

|                          |   | July 31, |   |   | October 31, |   |
|-------------------------------|--------|----------|--------|--------|-------------|--------|
|                          |   | 2011     |   |   | 2010        |   |
|                          |   |     |   |   |        |   |
| Balance at beginning of year  |   | $        | 53     |   |        | $      | 273 |   |
| Acquisitions and Improvements |   |     | 0      |   |        |   | 0 |   |
| Cost of property sold         |   |     | 0      |   |        |   | 0 |   |
| Reclassification of property  |   |     | 0      |   |        |   | (220 | ) |
| Balance at end of the period  |   | $        | 53     |   |        | $      | 53 |   |

----

Index

| 15.  | PENSION VALUATION RESERVE |
|-----------|---------------------------|

|                               |   | Six Months Ended |    |
|------------------------------------|--------|------------------|---------|
|                               |   | 7/31/11          |    |   | 7/31/10 |   |
|                               |   |             |    |   |   |   |
|                               |   |             |    |   |   |   |
| Service cost                       |   |             | 6,000   |   |   |   | 6,000 |   |
| Interest cost                      |   |             | 78,000  |   |   |   | 78,000 |   |
| Expected return on plan assets     |   |             | (84,000 | ) |   |   | (84,000 | ) |
| Amortization of prior service cost |   |             | 0       |   |   |   | 0 |   |
| Recognized net actuarial loss      |   |             | 90,000  |   |   |   | 90,000 |   |
| Net periodic benefit cost          |   |             | 90,000  |   |   |   | 90,000 |   |

| 16.  | 401(k) PLAN |
|-----------|-------------|

----

Index

| 17.  | RELATED PARTY TRANSACTIONS |
|-----------|----------------------------|

| 18.  | LITIGATION |
|-----------|------------|

----

Index

| ITEM II. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF THERESULTS OF OPERATIONS AND FINANCIAL CONDITION FOR THE NINE MONTHS ENDED JULY 31, 2011 |
|----------|----------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

----

Index

----

Index

|                                |   | Nine Months Ended July 31, |    |
|-------------------------------------|--------|----------------------------|---------|
|                                |   | 2011                       |    |   | 2010 |   |
|                                |   | (In Thousands)             |    |
| Revenues:                           |   |                       |    |   |   |   |
| Real Estate Revenues                |   | $                          | 203     |   |   | $ | 217 |   |
| Stockyard Revenues                  |   |                       | 1,431   |   |   |   |  1,648 |   |
| Total Revenues                      |   |                       | 1,634   |   |   |   |  1,865 |   |
|                                |   |                       |    |   |   |   |   |   |
| Costs and Expenses:                 |   |                       |    |   |   |   |   |   |
| Real Estate Expenses                |   |                       | 43      |   |   |   | 70 |   |
| Stockyard Expenses                  |   |                       | 1,279   |   |   |   | 1,433 |   |
| General and Administrative Expenses |   |                       | 619     |   |   |   |  628 |   |
| Total Costs and Expenses            |   |                       | 1,941   |   |   |   |  2,131 |   |
|                                |   |                       |    |   |   |   |   |   |
| (Loss) Income from Operations       |   |                       | (307.00 | ) |   |   | (266.00 | ) |
|                                |   |                       |    |   |   |   |   |   |
| Other Income                        |   |                       | 0       |   |   |   | 0 |   |
| Other Expenses                      |   |                       | (63.00  | ) |   |   | (88.00 | ) |
| Net (Loss) Income                   |   | $                          | (307    | ) |   | $ | (354 | ) |

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urces

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actors

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| ITEM III. | Quantitative and Qualitative Disclosures About Market Risk |
|-----------|------------------------------------------------------------|

| As of      |   | Fixed rate   |    |   | Average       |   |       Fair |
|------------|--------|--------------|---------|--------|---------------|--------|------------------------------------------|
| JULY 31,   |   |  ($ US) |    |   | Interest Rate |   |    Value                  |
| 2011       |   | $            | 0       |   |          |   | N/A                                      |   |   |
| 2012       |   |         | 847     |   |          |   | 10%                                      |   |   |
| 2013       |   |         | 0       |   |          |   | N/A                                      |   |   |
| 2014       |   |         | 0       |   |          |   | N/A                                      |   |   |
| 2015       |   |         | 0       |   |          |   | N/A                                      |   |   |
| Thereafter |   |         |  0 |   |          |   | N/A                                      |   |   |
| Total      |   | $            | 847     |   |          |   |                                     |   | N/A (A) |

| (A) | Long-term debt related party: it is not practicable to estimate the fair value of the related party debt. |
|-----|-----------------------------------------------------------------------------------------------------------|

| ITEM IV. | Controls and Procedures |
|----------|-------------------------|

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OTHER INFORMATION

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| Item 1: | Legal Proceedings: |
|---------|--------------------|

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NAT

|   | CANAL CAPITAL CORPORATION |                          |
|--------|---------------------------|-------------------------------|
|   |                      |                          |   |
|   |                      |                          |   |
| Date   | By:                       | /s/ Michael E. Schultz   |   |
|   |                      | Michael E. Schultz            |   |
|   |                      | President and Chief           |   |
|   |                      | Executive Officer             |   |
|   |                      | (Principal Executive Officer) |   |

| Signature                              |   | Title                          |   | Date               |
|----------------------------------------|--------|--------------------------------|--------|--------------------|
|                                   |   |                           |   |               |
|                                   |   | President and Chief            |   |               |
| /S/ Michael E. Schultz            |   | Executive Officer and Director |   |               |
| Michael E. Schultz                |   | (Principal Executive Officer)  |   | September 12, 2011 |
|                                   |   |                           |   |               |
|                                   |   | Vice President-Finance         |   |               |
|                                   |   | Secretary and Treasurer        |   |               |
| /S/ Reginald Schauder        |   | (Principal Financial and       |   |               |
| Reginald Schauder                      |   | Accounting Officer)       |   | September 12, 2011 |
|                                   |   |                           |   |               |
|                                   |   |                           |   |               |
| /S/ Asher B. Edelman    |   | Chairman of the Board          |   |               |
| Asher B. Edelman                  |   | and Director              |   | September 12, 2011 |

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