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| New York                                                            |   | 13-2682108                                |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S. Employer Identification No.) |

| Registrant’s Telephone Number: |   | (212) 244-0555 |
|--------------------------------------|--------|----------------|
| (Including Area Code)                |   |           |

| Large Accelerated filer | o      |                                          | Accelerated Filer                                 |  o |   |
|-------------------------|--------|-----------------------------------------------|---------------------------------------------------|---------|--------|
|                    |   |                                          |                                              |    |   |
| Non-accelerated filer   | o      | (Do not check if a smaller reporting company) | Smaller reporting company     | x       |

| CLASS                     |   | 4,246,418 OUTSTANDING AT May 7, 2010 |
|---------------------------|--------|--------------------------------------|
| COMMON STOCK              |   |                                 |
| PAR VALUE: $.01 per share |   |                                 |
|                      |   |                                 |

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| PART I.  | FINANCIAL INFORMATION |                                                                                                                         |   |
|----------|-----------------------|------------------------------------------------------------------------------------------------------------------------------|--------|
|     |                  |                                                                                                                         |   |
|     | Item 1.               | FINANCIAL STATEMENTS                                                                                                         |   |   |
|     |                  |                                                                                                                         |   |   |
|     |                  | Index to Financial Statements                                                                                                |   |   |
|     |                  |                                                                                                                         |   |   |
|     |                  | Condensed Consolidated Balance Sheets at March 31, 2010 (Unaudited) and December 31, 2009 - (Audited)                        |   | 1 |
|     |                  |                                                                                                                         |   |   |
|     |                  | Condensed Consolidated Statements of Operations for the three  months ended March 31, 2010 and 2009 – (Unaudited) |   | 2 |
|     |                  |                                                                                                                         |   |   |
|     |                  | Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2010 and 2009 – (Unaudited)       |   | 3 |
|     |                  |                                                                                                                         |   |   |
|     |                  | Notes to Condensed Consolidated Financial Statements – (Unaudited)                                                     |   | 4-17 |
|     |                  |                                                                                                                         |   |   |
|     | Item 2.               | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                  |   | 18-26 |
|     |                  |                                                                                                                         |   |   |
|     | Item 3.               | Quantitative and Qualitative Disclosures about Market Risk                                                                   |   | 26-29 |
|     |                  |                                                                                                                         |   |   |
|     | Item 4T.              | Controls and Procedures                                                                                                      |   | 29 |
|     |                  |                                                                                                                         |   |   |
| PART II. | OTHER INFORMATION     |                                                                                                                         |   |
|     |                  |                                                                                                                         |   |
|     | Item 1.               | Legal Proceedings                                                                                                            |   | 29 |
|     |                  |                                                                                                                         |   |   |
|     | Item 1A.              | Risk Factors                                                                                                                 |   | 30 |
|     |                  |                                                                                                                         |   |   |
|     | Item 2.               | Unregistered Sales of Equity Securities and Use of Proceeds                                                                  |   | 30 |
|     |                  |                                                                                                                         |   |   |
|     | Item 3.               | Defaults Upon Senior Securities                                                                                              |   | 30 |
|     |                  |                                                                                                                         |   |   |
|     | Item 4.               | Submission of Matters to a Vote of Security Holders                                                                          |   | 30 |
|     |                  |                                                                                                                         |   |   |
|     | Item 5.               | Other Information                                                                                                            |   | 30 |
|     |                  |                                                                                                                         |   |   |
|     | Item 6.               | Exhibits                                                                                                                     |   | 31 |

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CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                                  |   | UNAUDITEDMarch 31, 2010 |             |   | December 31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------------|--------|-------------------|--------|
| ASSETS                                                                                                                                                                                                |   |                    |             |   |              |   |
|                                                                                                                                                                                                  |   |                    |             |   |              |   |
| CURRENT ASSETS                                                                                                                                                                                        |   |                    |             |   |              |   |
| Cash and cash equivalents                                                                                                                                                                             |   | $                       | 73,898           |   |              | $      | 277,088 |   |
| Receivable from broker (held in money market accounts)                                                                                                                                                |   |                    | 6,150,154        |   |              |   | 6,062,298 |   |
| Available-for-sale securities, at fair value                                                                                                                                                          |   |                    | 52,328,692       |   |              |   | 53,270,726 |   |
| Securities sold, not received, at fair value                                                                                                                                                          |   |                    | 23,397,636       |   |              |   | 10,567,129 |   |
| Accounts receivable, net of allowance for doubtful  accounts of $92,421 in 2010 and $92,421 in 2009                                                                                         |   |                    | 212,976          |   |              |   | 240,615 |   |
| Inventory                                                                                                                                                                                             |   |                    | 448,846          |   |              |   | 454,407 |   |
| Prepaid expenses and other current assets                                                                                                                                                             |   |                    |  129,537    |   |              |   | 104,431 |   |
| Total Current Assets                                                                                                                                                                                  |   |                    | 82,741,739       |   |              |   | 70,976,694 |   |
|                                                                                                                                                                                                  |   |                    |             |   |              |   |   |   |
| Property and equipment, net                                                                                                                                                                           |   |                    | 4,219,088        |   |              |   | 4,173,138 |   |
| Other assets                                                                                                                                                                                          |   |                    | 37,158           |   |              |   | 37,158 |   |
|                                                                                                                                                                                                  |   |                    |             |   |              |   |   |   |
| Total Assets                                                                                                                                                                                          |   | $                       | 86,997,985       |   |              | $      | 75,186,990 |   |
|                                                                                                                                                                                                  |   |                    |             |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                            |   |                    |             |   |              |   |   |   |
|                                                                                                                                                                                                  |   |                    |             |   |              |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                                                   |   |                    |             |   |              |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                              |   | $                       | 377,097          |   |              | $      | 533,631 |   |
| Loans payable                                                                                                                                                                                         |   |                    | 401,252          |   |              |   | — |   |
| Income taxes payable                                                                                                                                                                                  |   |                    | 2,522,671        |   |              |   | 943,075 |   |
| Mortgage payable, current portion                                                                                                                                                                     |   |                    | 44,238           |   |              |   | 43,431 |   |
| Put and call options, at fair value                                                                                                                                                                   |   |                    | 4,674,322        |   |              |   | 4,249,123 |   |
| Securities borrowed, at fair value                                                                                                                                                                    |   |                    | 23,803,986       |   |              |   | 10,771,279 |   |
| Deferred revenue                                                                                                                                                                                      |   |                    | 37,572           |   |              |   | 46,902 |   |
| Deferred income taxes                                                                                                                                                                                 |   |                    | 8,164,673        |   |              |   | 10,627,351 |   |
| Total Current Liabilities                                                                                                                                                                             |   |                    | 40,025,811       |   |              |   | 27,214,792 |   |
|                                                                                                                                                                                                  |   |                    |             |   |              |   |   |   |
| LONG TERM LIABILITIES                                                                                                                                                                                 |   |                    |             |   |              |   |   |   |
|                                                                                                                                                                                                  |   |                    |             |   |              |   |   |   |
| Mortgage payable, less current portion                                                                                                                                                                |   |                    | 335,403          |   |              |   | 346,861 |   |
|                                                                                                                                                                                                  |   |                    |             |   |              |   |   |   |
| Total Liabilities                                                                                                                                                                                     |   |                    |  40,361,214 |   |              |   |  27,561,653 |   |
|                                                                                                                                                                                                  |   |                    |             |   |              |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                                                                            |   |                    |             |   |              |   |   |   |
| Common stock, $.01 par value, Authorized - 10,000,000 shares Issued – 5,316,550 shares Outstanding – 4,246,418 and 4,250,318 shares at March 31, 2010 and December 31, 2009, respectively |   |                    | 53,165           |   |              |   | 53,165 |   |
| Additional paid in capital                                                                                                                                                                            |   |                    | 10,675,228       |   |              |   | 10,675,228 |   |
| Accumulated other comprehensive income                                                                                                                                                                |   |                    | 15,163,433       |   |              |   | 16,016,375 |   |
| Retained earnings                                                                                                                                                                                     |   |                    | 32,149,178       |   |              |   | 32,241,597 |   |
| Treasury stock, at cost, 1,070,132 and 1,066,232 shares at March 31, 2010 and December 31, 2009, respectively                                                                                    |   |                    | (11,404,233      | )      |              |   | (11,361,028 | ) |
| Total Stockholders’ Equity                                                                                                                                                                      |   |                    | 46,636,771       |   |              |   | 47,625,337 |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                                                      |   | $                       | 86,997,985       |   |              | $      | 75,186,990 |   |

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [UNAUDITED]

|                                                                                            |   | March 31, 2010 |       |   | March 31, 2009 |   |
|-------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|----------------|--------|
| REVENUES:                                                                                       |   |           |       |   |           |   |
|                                                                                            |   |           |       |   |           |   |
| Operating Revenues – equipment sales and related services                                 |   | $              | 316,385    |   |           | $      | 344,963 |   |
| Operating Revenues – cryobanking and related services                                     |   |           | 79,887     |   |           |   | 89,074 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Total Revenues                                                                                  |   |           | 396,272    |   |           |   | 434,037 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Cost of Sales:                                                                                  |   |           |       |   |           |   |   |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Cost of equipment sales and related services                                                    |   |           | 185,961    |   |           |   | 140,039 |   |
| Cost of cryobanking and related services                                                        |   |           | 5,816      |   |           |   | 12,429 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Total Cost of Sales                                                                             |   |           | 191,777    |   |           |   | 152,468 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Gross Profit                                                                                    |   |           | 204,495    |   |           |   | 281,569 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| OPERATING EXPENSES:                                                                             |   |           |       |   |           |   |   |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Research and development expenses:                                                              |   |           |       |   |           |   |   |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Research and development-equipment sales and  related services                        |   |           | 836,863    |   |           |   | 565,178 |   |
| Research and development-cryobanking and related services                                       |   |           | 55,102     |   |           |   | 47,379 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Total Research and Development Expenses                                                         |   |           | 891,965    |   |           |   | 612,557 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Selling, General & Administrative Expenses:                                                 |   |           |       |   |           |   |   |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Selling, general, and administrative-equipment sales and related services                       |   |           | 481,744    |   |           |   | 613,784 |   |
| Selling, general, and administrative-cryobanking and related services                           |   |           | 172,942    |   |           |   | 169,724 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Total Selling, General & Administrative Expenses                                            |   |           | 654,686    |   |           |   | 783,508 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Total Operating Expenses                                                                        |   |           | 1,546,651  |   |           |   | 1,396,065 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Loss from Operations                                                                            |   |           | (1,342,156 | )      |           |   | (1,114,496 | ) |
|                                                                                            |   |           |       |   |           |   |   |   |
| Other Income (Expenses):                                                                        |   |           |       |   |           |   |   |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Dividend income-investment portfolio                                                            |   |           | 568,408    |   |           |   | 987,097 |   |
| Realized gains on sale of securities, net                                                       |   |           | 6,076,382  |   |           |   | 5,124,034 |   |
| Mark to market of short positions                                                               |   |           | (4,772,764 | )      |           |   | (6,318,524 | ) |
| Other revenues                                                                                  |   |           | 3,041      |   |           |   | 2,963 |   |
| Interest expense, net of interest income of $1,119 and $6,526                                   |   |           | (6,264     | )      |           |   | (67,699 | ) |
| Administrative expense relating to portfolio investments                                        |   |           | (34,974    | )      |           |   | (31,886 | ) |
|                                                                                            |   |           |       |   |           |   |   |   |
| Total  Other Income (Loss)                                                            |   |           | 1,833,829  |   |           |   | (304,015 | ) |
|                                                                                            |   |           |       |   |           |   |   |   |
| Income (Loss) before Income Taxes                                                               |   |           | 491,673    |   |           |   | (1,418,511 | ) |
|                                                                                            |   |           |       |   |           |   |   |   |
| Income Tax Expense                                                                              |   |           | 584,092    |   |           |   | 124,774 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Net Loss                                                                                        |   | $              | (92,419    | )      |           | $      | ( 1,543,285 | ) |
|                                                                                            |   |           |       |   |           |   |   |   |
| Comprehensive Loss:                                                                             |   |           |       |   |           |   |   |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Net Loss                                                                                        |   | $              | (92,419    | )      |           | $      | (1,543,285 | ) |
| Unrealized Loss on Securities Held  for Sale, Net of  Deferred Income Taxes |   |           | (852,942   | )      |           |   | (9,845,569 | ) |
| Comprehensive  Loss                                                                   |   | $              | (945,361   | )      |           | $      | (11,388,854 | ) |
|                                                                                            |   |           |       |   |           |   |   |   |
| Weighted average number of shares outstanding – basic and diluted                         |   |           | 4,247,285  |   |           |   | 4,285,685 |   |
|                                                                                            |   |           |       |   |           |   |   |   |
| Net  loss  per common equivalent share – basic and diluted            |   | $              | (0.02      | )      |           | $      | (0.36 | ) |

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS [UNAUDITED]

|                                                                            |   | March 31, 2010 |        |   | March 31, 2009 |   |
|---------------------------------------------------------------------------------|--------|----------------|-------------|--------|----------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                           |   |           |        |   |           |   |
| Net  loss                                                             |   | $              | (92,419     | )      |           | $      | (1,543,285 | ) |
|                                                                            |   |           |        |   |           |   |   |   |
| Adjustment to reconcile net income to net cash used in operating activities:    |   |           |        |   |           |   |   |   |
|         Depreciation                    |   |           | 73,726      |   |           |   | 73,573 |   |
| Non-cash compensation expense associated with employee stock compensation plans |   |           | —     |   |           |   | 8,672 |   |
| Deferred income taxes                                                           |   |           | (2,003,401  | )      |           |   | (2,192,726 | ) |
| Realized gains on sale of investments                                           |   |           | (6,076,382  | )      |           |   | (5,070,441 | ) |
| Mark to market adjustments on options & short sales                         |   |           | 4,772,764   |   |           |   | 6,264,931 |   |
|                                                                            |   |           |        |   |           |   |   |   |
| Change in operating assets and liabilities:                                     |   |           |        |   |           |   |   |   |
| Decrease (Increase) in accounts receivable                                      |   |           | 27,639      |   |           |   | (8,554 | ) |
| Increase  in prepaid expenses & other current assets              |   |           | (25,106     | )      |           |   | (21,485 | ) |
| Decrease (Increase) in inventory                                                |   |           | 5,561       |   |           |   | (24,633 | ) |
| Decrease in accounts payable and accrued liabilities                            |   |           | (156,534    | )      |           |   | (60,271 | ) |
| Increase (Decrease) in income taxes payable                                     |   |           | 1,579,596   |   |           |   | (382,500 | ) |
| Decrease in deferred revenue                                                    |   |           | (9,330      | )      |           |   | (9,503 | ) |
|                                                                            |   |           |        |   |           |   |   |   |
| Net cash used in operating activities                                           |   |           | (1,903,886  | )      |           |   | (2,966,222 | ) |
|                                                                            |   |           |        |   |           |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                           |   |           |        |   |           |   |   |   |
| Purchase of property and equipment                                              |   |           | (119,676    | )      |           |   | (987,725 | ) |
| Increase in securities sold, not received at fair market value                  |   |           | (12,830,507 | )      |           |   | (74,881 | ) |
| Increase  in securities borrowed, at fair market value                |   |           | 13,032,707  |   |           |   | 9,987 |   |
| Purchases of put and call options                                               |   |           | (46,866     | )      |           |   | (2,619,217 | ) |
| Proceeds from sales of put and call options                                     |   |           | 5,116,310   |   |           |   | 6,751,777 |   |
| Acquisition of available for sale securities                                    |   |           | (6,465,841  | )      |           |   | (21,746,211 | ) |
| Proceeds from sale of available for sale securities                             |   |           | 2,755,031   |   |           |   |  11,230,002 |   |
|                                                                            |   |           |        |   |           |   |   |   |
| Net cash provided by (used in) investing activities                             |   |           | 1,441,158   |   |           |   | (7,436,268 | ) |
|                                                                            |   |           |        |   |           |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                           |   |           |        |   |           |   |   |   |
| Proceeds from margin loan payable                                               |   |           | 8,549,797   |   |           |   | 29,891,560 |   |
| Repayment of margin loan payable                                                |   |           | (8,236,403  | )      |           |   | (21,496,989 | ) |
| Repayment of bank loan                                                          |   |           | —     |   |           |   | (685,000 | ) |
| Proceeds from bank loan                                                         |   |           | —     |   |           |   | 250,000 |   |
| Purchase of treasury stock                                                      |   |           | (43,205     | )      |           |   | (54,607 | ) |
| Repayment of mortgage payable                                                   |   |           | (10,651     | )      |           |   | (9,902 | ) |
| Net cash provided by financing activities                                  |   |           | 259,538     |   |           |   |  7,895,062 |   |
|                                                                            |   |           |        |   |           |   |   |   |
| Net decrease in cash and cash equivalents                                       |   |           | (203,190    | )      |           |   | (2,507,428 | ) |
| Cash and cash equivalents at beginning of period                                |   |           | 277,088     |   |           |   | 2,545,040 |   |
|                                                                            |   |           |        |   |           |   |   |   |
| Cash and cash equivalents at end of period                                      |   | $              | 73,898      |   |           | $      | 37,612 |   |
|                                                                            |   |           |        |   |           |   |   |   |
| Supplemental Disclosures of Cash Flow Information:                              |   |           |        |   |           |   |   |   |
| Cash paid during the period for:                                                |   |           |        |   |           |   |   |   |
| Interest                                                                        |   | $              | 7,383       |   |           | $      | 74,225 |   |
| Income taxes                                                                    |   | $              | 1,013,017   |   |           | $      | 2,707,010 |   |

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

|   | ● | Level 1, is defined as observable inputs being quoted prices in active markets for identical assets; |
|--------|---------|------------------------------------------------------------------------------------------------------|

|   | ● | Level 2, is defined as observable inputs including quoted prices for similar assets; and |
|--------|---------|------------------------------------------------------------------------------------------|

|   | ● | Level 3, is defined as unobservable inputs in which little or no market data exists, therefore requiring assumptions based on the best information available. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 1.     | The Company’s investment goals are capital preservation, maintaining returns on capital with a high degree of safety and generating income from dividends and option sales to help offset operating losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | 2.     | In order to achieve these goals, the Company maintains a diversified securities portfolio comprised primarily of electric utility common and preferred stocks. The Company also sells covered calls on portions of its portfolio and also sells puts on stocks it is willing to own. It also sells uncovered calls and may have net short positions in common stock up to 15% of the value of the portfolio. The Company’s net short position may temporarily rise to 15% of the Company’s portfolio without any specific action because of changes in valuation, but should not exceed this amount. The Company’s investment policy is to maintain a minimum of 80% of its portfolio in electric utilities. The Board of Directors has authorized this minimum to be temporarily lowered to 70% when Company management deems it to be necessary. Investments in utilities are primarily in electric companies. Investments in non-utility stocks will generally not exceed 20% of the value of the portfolio. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | 3.     | Investment in speculative issues, including short sales, maximum of 15%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   | 4.     | Limited use of options to increase yearly investment income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   |   | a.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | The use of “Call” Options. Covered options can be sold up to a maximum of 20% of the value of the portfolio. This provides extra income in addition to dividends received from the Company’s investments. The risk of this strategy is that investments may be called away, which the Company may have preferred to retain. Therefore, a limitation of 20% is placed on the amount of stock on which options can be written. The amount of the portfolio on which options are actually written is usually between 3-10% of the portfolio. The historical turnover of the portfolio is such that the average holding period is in excess of five years for available for sale securities. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   |   | b.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | The use of “Put” options. Put options are written on stocks which the Company is willing to purchase. While the Company does not have a high rate of turnover in its portfolio, there is some turnover; for example, due to preferred stocks being called back by the issuing Company, or stocks being called away because call options have been written. If the stock does not go below the put exercise price, the Company records the proceeds from the sale as income. If the put is exercised, the cost basis is reduced by the proceeds received from the sale of the put option. There may be occasions where the cost basis of the stock is lower than the market price at the time the option is exercised. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   |   | c.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Speculative Short Sales/Short Options. The Company normally limits its speculative transactions to no more than 15% of the value of the portfolio. The Company may sell uncovered calls on certain stocks. If the stock price does not rise to the price of the call, the option is not exercised and the Company records the proceeds from the sale of the call as income. If the call is exercised, the Company will have a short position in the related stock. The Company then has the choice of covering the short position, or selling a put against it. If the put is exercised, then the short position is covered. The Company’s current accounting policy is to mark to the market at the end of each quarter any short positions, and include it in the income statement. While the Company may have so-called speculative positions equal to 15% of its accounts, in actual practice the net short stock positions usually account for less than 10% of the assets of the Company. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   | 5.     | In the event of a merger, the Company will elect to receive shares in the new company if this is an option. If the proposed merger is a cash only offer, the Company will receive cash and be forced to sell the stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

|   | · | The extent to which the market value has been less than cost.                                                                                                                                                                  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                           |
|   | · | An evaluation of the financial condition of an issuer including a review of their profit and loss statements for the most recent completed fiscal year and the preceding two years.                                            |
|   |   |                                                                                                                                                                                                                           |
|   | · | The examination of the general market outlook of the issuer. This could include but is not limited to the issuer having a unique product or technology which would appear likely to have a positive impact on future earnings. |
|   |   |                                                                                                                                                                                                                           |
|   | · | A review of the general market conditions.                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                           |
|   | · | Our intent and ability to retain the investment for a period of time sufficient to allow for the anticipated recovery in market value.                                                                                         |
|   |   |                                                                                                                                                                                                                           |
|   | · | Specific adverse conditions related to the financial health of, and business outlook for, the issuer.                                                                                                                          |
|   |   |                                                                                                                                                                                                                           |
|   | · | Changes in technology in the industry and its affect on the issuer.                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                           |
|   | · | Changes in the issuer’s credit rating.                                                                                                                                                                                   |

|                                       |   | Three months endedMarch 31, 2010 |      |   | Three months endedMarch 31, 2009 |   |
|--------------------------------------------|--------|----------------------------------|-----------|--------|----------------------------------|--------|
| Basic and diluted shares                   |   |                             | 4,247,285 |   |                             |   | 4,285,685 |   |
| Loss  from  operations |   | $                                | (92,419   | )      |                             | $      | (1,543,285 | ) |
| Basic and diluted loss per share           |   | $                                | (0.02     | )      |                             | $      | (0.36 | ) |

----

| Type of Security        |   | Market Value |       |   | Cost of Securities |   |       | Net Unrealized Gain |   |   | Unrealized Gains |   |   | Unrealized Losses |       |
|-------------------------|--------|--------------|------------|--------|--------------------|--------|------------|---------------------|--------|--------|------------------|--------|--------|-------------------|------------|
| Common Stock            |   | $            | 50,093,752 |   |               | $      | 27,021,070 |                |   | $      | 23,072,682       |   |   | $                 | 25,064,479 |   |   | $ | (1,991,797 | ) |
| Preferred Stock         |   |         | 2,234,940  |   |               |   | 1,979,264  |                |   |   | 255,676          |   |   |              | 456,714    |   |   |   | (201,038 | ) |
| Total Equity Securities |   | $            | 52,328,692 |   |               | $      | 29,000,334 |                |   | $      | 23,328,358       |   |   | $                 | 25,521,193 |   |   | $ | (2,192,835 | ) |

|                         |   | Less Than Twelve Months |      |   | Twelve Months or Greater |   |    | Total      |   |
|------------------------------|--------|-------------------------|-----------|--------|--------------------------|--------|---------|------------|--------|
|                         |   | Fair Value              |      |   | Unrealized Loss          |   |    | Fair Value |   |   | Unrealized Loss |   |   | Fair Value |   |   | Unrealized Loss |   |
| Marketable Equity Securities |   | $                       | 3,576,762 |   |                     | $      | 476,625 |       |   | $ | 2,628,241 |   |   | $ | 1,716,210 |   |   | $ | 6,205,003 |   |   | $ | 2,192,835 |   |

|                         |   | Less Than Twelve Months |      |   | Twelve Months or Greater |   |    | Total      |   |
|------------------------------|--------|-------------------------|-----------|--------|--------------------------|--------|---------|------------|--------|
|                         |   | Fair Value              |      |   | Unrealized Gains         |   |    | Fair Value |   |   | Unrealized Gains |   |   | Fair Value |   |   | Unrealized Gains |   |
| Marketable Equity Securities |   | $                       | 2,584,670 |   |                     | $      | 329,088 |       |   | $ | 43,539,019 |   |   | $ | 25,192,105 |   |   | $ | 46,123,689 |   |   | $ | 25,521,193 |   |

| Type of Security        |   | Market Value |       |   | Cost of Securities |   |       | Net Unrealized Gain |   |   | Unrealized Gains |   |   | Unrealized Losses |       |
|-------------------------|--------|--------------|------------|--------|--------------------|--------|------------|---------------------|--------|--------|------------------|--------|--------|-------------------|------------|
| Common Stock            |   | $            | 51,207,654 |   |               | $      | 26,673,055 |                |   | $      | 24,534,599       |   |   | $                 | 26,771,744 |   |   | $ | (2,237,145 | ) |
| Preferred Stock         |   |         | 2,063,072  |   |               |   | 1,957,094  |                |   |   | 105,978          |   |   |              | 370,187    |   |   |   | (264,209 | ) |
| Total Equity Securities |   | $            | 53,270,726 |   |               | $      | 28,630,149 |                |   | $      | 24,640,577       |   |   | $                 | 27,141,931 |   |   | $ | (2,501,354 | ) |

|                         |   | Less Than Twelve Months |      |   | Twelve Months or Greater |   |      | Total      |   |
|------------------------------|--------|-------------------------|-----------|--------|--------------------------|--------|-----------|------------|--------|
|                         |   | Fair Value              |      |   | Unrealized Loss          |   |      | Fair Value |   |   | Unrealized Loss |   |   | Fair Value |   |   | Unrealized Loss |   |
| Marketable Equity Securities |   | $                       | 2,874,316 |   |                     | $      | 1,451,436 |       |   | $ | 1,917,505 |   |   | $ | 1,049,918 |   |   | $ | 4,791,821 |   |   | $ | 2,501,354 |   |

----

|                         |   | Less Than Twelve Months |      |   | Twelve Months or Greater |   |    |  Total |   |
|------------------------------|--------|-------------------------|-----------|--------|--------------------------|--------|---------|-------------|--------|
|                         |   | Fair Value              |      |   | Unrealized Gains         |   |    | Fair Value  |   |   | Unrealized Gains |   |   | Fair Value |   |   | Unrealized Gains |   |
| Marketable Equity Securities |   | $                       | 4,025,079 |   |                     | $      | 696,783 |        |   | $ | 44,453,826 |   |   | $ | 26,445,148 |   |   | $ | 48,478,905 |   |   | $ | 27,141,931 |   |

|   | · | The extent to which the market value has been less than cost.                                                                                                                                                                  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                           |
|   | · | An evaluation of the financial condition of an issuer including a review of their profit and loss statements for the most recent completed fiscal year and the preceding two years.                                            |
|   |   |                                                                                                                                                                                                                           |
|   | · | The examination of the general market outlook of the issuer. This could include but is not limited to the issuer having a unique product or technology which would appear likely to have a positive impact on future earnings. |
|   |   |                                                                                                                                                                                                                           |
|   | · | A review of the general market conditions.                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                           |
|   | · | Our intent and ability to retain the investment for a period of time sufficient to allow for the anticipated recovery in market value.                                                                                         |
|   |   |                                                                                                                                                                                                                           |
|   | · | Specific adverse conditions related to the financial health of, and business outlook for, the issuer.                                                                                                                          |
|   |   |                                                                                                                                                                                                                           |
|   | · | Changes in technology in the industry and its affect on the issuer.                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                           |
|   | · | Changes in the issuer’s credit rating.                                                                                                                                                                                   |

----

----

|            |   |   |      |   | Less Than Twelve Months |   |      | Tweleve Months or Greater |   |   | Total      |   |
|-----------------|--------|--------|-----------|--------|-------------------------|--------|-----------|---------------------------|--------|--------|------------|--------|
|            |   | Total  |      |   |                    |   |      | Unrealized                |   |   |       |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
| Security        |   | Cost   |      |   | Fair Value              |   |      | Loss                      |   |   | Fair Value |   |   | Loss |   |   | Fair Value |   |   | Loss |   |
| Dynegy, Inc.    |   | $      | 2,168,649 |   |                    | $      | 649,782   |                      |   | $      | 232,328    |   |   | $ | 525,420 |   |   | $ | 761,119 |   |   | $ | 1,175,202 |   |   | $ | 993,447 |   |
| Citigroup, Inc. |   |   | 1,841,841 |   |                    |   | 546,750   |                      |   |   | 188,396    |   |   |   | 667,468 |   |   |   | 439,226 |   |   |   | 1,214,218 |   |   |   | 627,622 |   |
| Total           |   | $      | 4,010,490 |   |                    | $      | 1,196,532 |                      |   | $      | 420,724    |   |   | $ | 1,192,888 |   |   | $ | 1,200,345 |   |   | $ | 2,389,420 |   |   | $ | 1,621,069 |   |

----

|                                         |   | March 31, 2010 |       |
|----------------------------------------------|--------|----------------|------------|
|                                         |   | Equipment      |       |   |   |   |   |   |   |   |   |   |
|                                         |   | Sales &    |       |   | Cryobanking |   |   |   |   |   |   |   |
|                                         |   | Related        |       |   | & Related |   |   | Investment |   |   |   |   |
|                                         |   | Services       |       |   | Services |   |   | Activity |   |   | Total |   |
|                                         |   |           |       |   |   |   |   |   |   |   |   |   |
| Revenues                                     |   | $              | 316,385    |   |   | $ | 79,887 |   |   | $ | — |   |   | $ | 396,272 |   |
|                                         |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                |   |           | 185,961    |   |   |   | 5,816 |   |   |   | — |   |   |   | 191,777 |   |
| Research and development expenses            |   |           | 836,863    |   |   |   | 55,102 |   |   |   | — |   |   |   | 891,965 |   |
| Selling, general and administrative expenses |   |           | 481,744    |   |   |   | 172,942 |   |   |   | — |   |   |   | 654,686 |   |
| Total Expenses                               |   |           | 1,504,568  |   |   |   | 233,860 |   |   |   | — |   |   |   | 1,738,428 |   |
|                                         |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                               |   |           | (1,188,183 | ) |   |   | (153,973 | ) |   |   | — |   |   |   | (1,342,156 | ) |
|                                         |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment income, net                       |   |           | —    |   |   |   | — |   |   |   | 1,837,052 |   |   |   | 1,837,052 |   |
|                                         |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                       |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                        |   |           | (7,146     | ) |   |   | 314 |   |   |   | 568 |   |   |   | (6,264 | ) |
| Other income                                 |   |           | 3,041      |   |   |   | — |   |   |   | — |   |   |   | 3,041 |   |
| Total Other Income (Expense)                 |   |           | (4,105     | ) |   |   | 314 |   |   |   | 568 |   |   |   | (3,223 | ) |
|                                         |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes            |   |           | (1,192,288 | ) |   |   | (153,659 | ) |   |   | 1,837,620 |   |   |   | 491,673 |   |
| Income tax expense                           |   |           | 36,000     |   |   |   | — |   |   |   | 548,092 |   |   |   | 584,092 |   |
|                                         |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                            |   | $              | (1,228,288 | ) |   | $ | (153,659 | ) |   | $ | 1,289,528 |   |   | $ | (92,419 | ) |
|                                         |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                 |   | $              | 4,914,496  |   |   | $ | 207,007 |   |   | $ | 81,876,482 |   |   | $ | 86,997,985 |   |

----

|                                         |   | March 31,2009                       |      |
|----------------------------------------------|--------|-------------------------------------|-----------|
|                                         |   | EquipmentSales &RelatedServices |      |   | Cryobanking& RelatedServices |   |   | InvestmentActivity |   |   | Total |   |
|                                         |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                     |   | $                                   | 344,963   |   |   | $ | 89,074 |   |   | $ | — |   |   | $ | 434,037 |   |
|                                         |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                     |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                |   |                                | 140,039   |   |   |   | 12,429 |   |   |   | — |   |   |   | 152,468 |   |
| Research and development expenses            |   |                                | 565,178   |   |   |   | 47,379 |   |   |   | — |   |   |   | 612,557 |   |
| Selling, general and administrative expenses |   |                                | 613,784   |   |   |   | 169,724 |   |   |   | — |   |   |   | 783,508 |   |
| Total Expenses                               |   |                                | 1,319,001 |   |   |   | 229,532 |   |   |   | — |   |   |   | 1,548,533 |   |
|                                         |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                               |   |                                | (974,038  | ) |   |   | (140,458 | ) |   |   | — |   |   |   | (1,114,496 | ) |
|                                         |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment loss, net                         |   |                                | —   |   |   |   | — |   |   |   | (239,279 | ) |   |   | (239,279 | ) |
|                                         |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                       |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                        |   |                                | (7,895    | ) |   |   | — |   |   |   | (59,804 | ) |   |   | (67,699 | ) |
| Other income                                 |   |                                | 2,963     |   |   |   | — |   |   |   | — |   |   |   | 2,963 |   |
| Total Other Income (Expense)                 |   |                                | (4,932    | ) |   |   | — |   |   |   | (59,804 | ) |   |   | (64,736 | ) |
|                                         |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                     |   |                                | (978,970  | ) |   |   | (140,458 | ) |   |   | (299,083 | ) |   |   | (1,418,511 | ) |
| Income tax expense                           |   |                                | 7,500     |   |   |   | — |   |   |   | 117,274 |   |   |   | 124,774 |   |
|                                         |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                     |   | $                                   | (986,470  | ) |   | $ | (140,458 | ) |   | $ | (416,357 | ) |   | $ | (1,543,285 | ) |
|                                         |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                 |   | $                                   | 3,925,788 |   |   | $ | 190,667 |   |   | $ | 58,247,300 |   |   | $ | 62,363,755 |   |

----

|                 |   |                |      |   | Fair Market |   |      | Unrealized |   |
|----------------------|--------|---------------------|-----------|--------|-------------|--------|-----------|------------|--------|
| Put and Call Options |   |  Selling Price |      |   | Value       |   |      | Gain       |   |
| March 31, 2010       |   | $                   | 8,056,389 |   |        | $      | 4,674,322 |       |   | $ | 3,382,067 |   |
| December 31, 2009    |   |                | 9,605,476 |   |        |   | 4,249,123 |       |   |   | 5,356,353 |   |

----

|                                          |   | March 31, 2010 |       |   | March 31, 2009 |   |
|-----------------------------------------------|--------|----------------|------------|--------|----------------|--------|
| Regular tax and Alternative Minimum Tax (AMT) |   | $              | 1,784,468  |   |           | $      | 1,645,000 |   |
| Personal Holding Company Tax (PHC)            |   |           | 767,025    |   |           |   | 665,000 |   |
| State Franchise Taxes                         |   |           | 36,000     |   |           |   | 7,500 |   |
| Total Current Income Tax Provision            |   |           | 2,587,493  |   |           |   | 2,317,500 |   |
| Deferred Income Taxes                         |   |           | (2,003,401 | )      |           |   | (2,192,726 | ) |
| Total Income Tax Expense                      |   | $              | 584,092    |   |           | $      | 124,774 |   |

|                                                             |   | March 31, 2010 |      |   | December 31,2009 |   |
|------------------------------------------------------------------|--------|---------------------|-----------|--------|------------------|--------|
|                                                             |   |  (unaudited)   |      |   |             |   |
| Deferred Tax Liabilities (Assets):                               |   |                |      |   |             |   |
| Fair market value adjustment for available -for -sale securities |   | $                   | 8,164,925 |   |             | $      | 8,624,202 |   |
| Mark to market on short positions                                |   |                | (128,678  | )      |             |   | 1,874,723 |   |
| Property and Equipment                                           |   |                | 128,426   |   |             |   | 128,426 |   |
|                                                             |   |                |      |   |             |   |   |   |
|                                                             |   | $                   | 8,164,673 |   |             | $      | 10,627,351 |   |

----

----

----

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

----

----

|  Equipment Sales andRelated Services: |   | Kit SalesThree Months EndedMarch 31, 2010 |    |    | Equipment Sales and OtherThree Months EndedMarch 31, 2010 |   |   | TotalThree Months EndedMarch 31, 2010 |   |
|--------------------------------------------|--------|-------------------------------------------|---------|---------|-----------------------------------------------------------|--------|--------|--------------------------------------------|--------|
| Revenue                                    |   | $                                         | 272,608 |    |                                                      | $      | 43,777 |                                       |   | $ | 316,385 |   |
| Cost of Goods Sold                         |   |                                      | 135,178 |    |                                                      |   | 50,783 |                                       |   |   | 185,961 |   |
| Gross Profit (Loss)                        |   | $                                         | 137,430 |    |                                                      | $      | (7,006 | )                                          |   | $ | 130,424 |   |
| Gross Profit (Loss) Percentage             |   |                                      | 50.4    | %  |                                                      |   | (16.0  | )%                                    |   |   | 41.2 | %  |

----

| Equipment Sales andRelated Services: |   | Kit SalesThree Months EndedMarch 31, 2009 |    |    | Equipment Sales and OtherThree Months EndedMarch 31, 2009 |   |   | TotalThree Months EndedMarch 31, 2009 |   |
|--------------------------------------|--------|-------------------------------------------|---------|---------|-----------------------------------------------------------|--------|--------|--------------------------------------------|--------|
| Revenue                              |   | $                                         | 309,452 |    |                                                      | $      | 35,511 |                                       |   | $ | 344,963 |   |
| Cost of Goods Sold                   |   |                                      | 107,415 |    |                                                      |   | 32,624 |                                       |   |   | 140,039 |   |
| Gross Profit                         |   | $                                         | 202,037 |    |                                                      | $      | 2,887  |                                       |   | $ | 204,924 |   |
| Gross Profit Percentage              |   |                                      | 65.2    | %  |                                                      |   | 8.1    | %                                     |   |   | 59.4 | %  |

|   | ● | A difference of $30,194 in inventory valuation adjustments between the current and previous quarter. |
|--------|---------|------------------------------------------------------------------------------------------------------|

|   | ● | $34,000 removed from Cost of Goods Sold and capitalized during the quarter ended March 31, 2009 versus $17,000 during the current quarter. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Price increases of between 4%-10% on various items used in production of blood volume kits which were not passed on to our customers. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|            |   |   |      | Less Than Twelve Months |   | Tweleve Months or Greater |   | Total      |    |
|-----------------|--------|--------|-----------|-------------------------|--------|---------------------------|--------|------------|---------|
|            |   | Total  |      |                    |   | Unrealized                |   |       |    | Unrealized |   |   |   | Unrealized |   |
| Security        |   | Cost   |      | Fair Value              |   | Loss                      |   | Fair Value |    | Loss |   | Fair Value |   | Loss |   |
| Dynegy, Inc.    |   | $      | 2,168,649 |                    | $      | 649,782                   |   | $          | 232,328 |   | $ | 525,420 |   | $ | 761,119 |   | $ | 1,175,202 |   | $ | 993,447 |   |
| Citigroup, Inc. |   |   | 1,841,841 |                    |   | 546,750                   |   |       | 188,396 |   |   | 667,468 |   |   | 439,226 |   |   | 1,214,218 |   |   | 627,622 |   |
| Total           |   | $      | 4,010,490 |                    | $      | 1,196,532                 |   | $          | 420,724 |   | $ | 1,192,888 |   | $ | 1,200,345 |   | $ | 2,389,420 |   | $ | 1,621,069 |   |

----

|   | 1.     | The Company’s investment goals are capital preservation, maintaining returns on capital with a high degree of safety and generating income from dividends and option sales to help offset operating losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   | 2.     | In order to achieve these goals, the Company maintains a diversified securities portfolio comprised primarily of electric utility common and preferred stocks. The Company also sells covered calls on portions of its portfolio and also sells puts on stocks it is willing to own. It also sells uncovered calls and may have net short positions in common stock up to 15% of the value of the portfolio. The Company’s net short position may temporarily rise to 15% of the Company’s portfolio without any specific action because of changes in valuation, but should not exceed this amount. The Company’s investment policy is to maintain a minimum of 80% of its portfolio in electric utilities. The Board of Directors has authorized this minimum to be temporarily lowered to 70% when Company management deems it to be necessary. Investments in utilities are primarily in electric companies. Investments in non-utility stocks will generally not exceed 20% of the value of the portfolio. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   | 3.     | Investment in speculative issues, including short sales, maximum of 15%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   | 4.     | Limited use of options to increase yearly investment income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   |   | a.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | The use of “Call” Options. Covered options can be sold up to a maximum of 20% of the value of the portfolio. This provides extra income in addition to dividends received from the Company’s investments. The risk of this strategy is that investments may be called away, which the Company may have preferred to retain. Therefore, a limitation of 20% is placed on the amount of stock on which options can be written. The amount of the portfolio on which options are actually written is usually between 3-10% of the portfolio. The historical turnover of the portfolio is such that the average holding period is in excess of five years for available for sale securities. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   |   | b.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | The use of “Put” options. Put options are written on stocks which the Company is willing to purchase. While the Company does not have a high rate of turnover in its portfolio, there is some turnover; for example, due to preferred stocks being called back by the issuing Company, or stocks being called away because call options have been written. If the stock does not go below the put exercise price, the Company records the proceeds from the sale as income. If the put is exercised, the cost basis is reduced by the proceeds received from the sale of the put option. There may be occasions where the cost basis of the stock is lower than the market price at the time the option is exercised. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   |   | c.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Speculative Short Sales/Short Options. The Company normally limits its speculative transactions to no more than 15% of the value of the portfolio. The Company may sell uncovered calls on certain stocks. If the stock price does not rise to the price of the call, the option is not exercised and the Company records the proceeds from the sale of the call as income. If the call is exercised, the Company will have a short position in the related stock. The Company then has the choice of covering the short position, or selling a put against it. If the put is exercised, then the short position is covered. The Company’s current accounting policy is to mark to the market at the end of each quarter any short positions, and include it in the income statement. While the Company may have so-called speculative positions equal to 15% of its accounts, in actual practice the net short stock positions usually account for less than 10% of the assets of the Company. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   | 5.     | In the event of a merger, the Company will elect to receive shares in the new company if this is an option. If the proposed merger is a cash only offer, the Company will receive cash and be forced to sell the stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

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| Type of Security |   | Total Fair Market Value |       |   | Total Cost |   |       | Total Net Unrealized Gain (Loss) |   |
|------------------|--------|-------------------------|------------|--------|------------|--------|------------|---------------------------------------|--------|
| Common Stock     |   | $                       | 50,093,752 |   |       | $      | 27,021,070 |                                  |   | $ | 23,072,682 |   |
| Preferred Stock  |   |                    | 2,234,940  |   |       |   | 1,979,264  |                                  |   |   | 255,676 |   |
| Total Portfolio  |   | $                       | 52,328,692 |   |       | $      | 29,000,334 |                                  |   | $ | 23,328,358 |   |

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|                         |   | Less Than Twelve Months |      |   | Twelve Months or Greater |   |    | Total      |   |
|------------------------------|--------|-------------------------|-----------|--------|--------------------------|--------|---------|------------|--------|
|                         |   | Fair Value              |      |   | Unrealized Loss          |   |    | Fair Value |   |   | Unrealized Loss |   |   | Fair Value |   |   | Unrealized Loss |   |
| Marketable Equity Securities |   | $                       | 3,576,762 |   |                     | $      | 476,625 |       |   | $ | 2,628,241 |   |   | $ | 1,716,210 |   |   | $ | 6,205,003 |   |   | $ | 2,192,835 |   |

|                         |   | Less Than Twelve Months |      |   | Twelve Months or Greater |   |    | Total      |   |
|------------------------------|--------|-------------------------|-----------|--------|--------------------------|--------|---------|------------|--------|
|                         |   | Fair Value              |      |   | Unrealized Gains         |   |    | Fair Value |   |   | Unrealized Gains |   |   | Fair Value |   |   | Unrealized Gains |   |
| Marketable Equity Securities |   | $                       | 2,584,670 |   |                     | $      | 329,088 |       |   | $ | 43,539,019 |   |   | $ | 25,192,105 |   |   | $ | 46,123,689 |   |   | $ | 25,521,193 |   |

| Total ProceedsReceived onopen positionsat 1/1/10 |      |   | Sale ofOptions from1/1/10-3/31/10 |   |      | Expirations andAssignments ofOptions from1/1/10-3/31/10 |   |   | ProceedsReceived onopen positionsat 3/31/10 |   |   | MarketValue at3/31/10 |      |   | UnrealizedAppreciationat 3/31/10 |   |
|--------------------------------------------------|-----------|--------|-----------------------------------|--------|-----------|---------------------------------------------------------|--------|--------|---------------------------------------------|--------|--------|-----------------------|-----------|--------|----------------------------------|--------|
| $                                                | 9,605,476 |   |                              | $      | 5,116,310 |                                                    |   | $      | 6,665,397                                   |   |   | $                     | 8,056,389 |   |                             | $      | 4,674,322 |   |   | $ | 3,382,067 |   |

| Type of Security |   | Total Fair Market Value |       |   | Total Cost |   |       | Total Net Unrealized Gain |   |
|------------------|--------|-------------------------|------------|--------|------------|--------|------------|---------------------------|--------|
| Common Stock     |   | $                       | 51,207,654 |   |       | $      | 26,673,055 |                      |   | $ | 24,534,599 |   |
| Preferred Stock  |   |                    | 2,063,072  |   |       |   | 1,957,094  |                      |   |   | 105,978 |   |
| Total Portfolio  |   | $                       | 53,270,726 |   |       | $      | 28,630,149 |                      |   | $ | 24,640,577 |   |

| Total ProceedsReceived onopen positionsat 1/1/09 |       |   | Sale ofOptions from1/1/09-12/31/09 |   |       | Expirations andAssignments ofOptions from1/1/09-12/31/09 |   |   | ProceedsReceived onopen positionsat 12/31/09 |   |   | MarketValue at12/31/09 |      |   | UnrealizedAppreciationat 12/31/09 |   |
|--------------------------------------------------|------------|--------|------------------------------------|--------|------------|----------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------|-----------|--------|-----------------------------------|--------|
| $                                                | 13,811,975 |   |                               | $      | 26,044,493 |                                                     |   | $      | 30,250,992                                   |   |   | $                      | 9,605,476 |   |                              | $      | 4,249,123 |   |   | $ | 5,356,353 |   |

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|                         |   | Less Than Twelve Months |      |   | Twelve Months or Greater |   |      | Total      |   |
|------------------------------|--------|-------------------------|-----------|--------|--------------------------|--------|-----------|------------|--------|
|                         |   | Fair Value              |      |   | Unrealized Loss          |   |      | Fair Value |   |   | Unrealized Loss |   |   | Fair Value |   |   | Unrealized Loss |   |
| Marketable Equity Securities |   | $                       | 2,874,316 |   |                     | $      | 1,451,436 |       |   | $ | 1,917,505 |   |   | $ | 1,049,918 |   |   | $ | 4,791,821 |   |   | $ | 2,501,354 |   |

|                         |   | Less Than Twelve Months |      |   | Twelve Months or Greater |   |    | Total      |   |
|------------------------------|--------|-------------------------|-----------|--------|--------------------------|--------|---------|------------|--------|
|                         |   | Fair Value              |      |   | Unrealized Gains         |   |    | Fair Value |   |   | Unrealized Gains |   |   | Fair Value |   |   | Unrealized Gains |   |
| Marketable Equity Securities |   | $                       | 4,025,079 |   |                     | $      | 696,783 |       |   | $ | 44,453,826 |   |   | $ | 26,445,148 |   |   | $ | 48,478,905 |   |   | $ | 27,141,931 |   |

Item 4T. Controls and Procedures

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

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Item 1A. Risk Factors

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 3. Defaults upon Senior Securities

Item 4. Submission of Matters to a Vote of Security Holders

Item 5. Other Information

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| Item 6. Exhibits to Quarterly Report on Form 10-Q |
|---------------------------------------------------|
|                                              |   |
| 31.1                                              | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|                                              |   |
| 31.2                                              | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|                                              |   |
| 32.1                                              | Certification of Chief Executive Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|                                              |   |
| 32.2                                              | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

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| DATE: May 11, 2010 | By:    | /s/ JOSEPH FELDSCHUH, M.D.         |
|--------------------|--------|------------------------------------|
|               |   | JOSEPH FELDSCHUH, M.D.,            |
|               |   | President                          |
|               |   | Chief Executive Officer            |
|               |   | Chairman of the Board of Directors |
|               |   | Principal Executive Officer        |

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