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|   | x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|---------------------------------------------------------------------------------------------------|

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

| Delaware                                                 |   | 22-1657413                              |
|----------------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdiction of                          |   | (I.R.S. Employer Identification Number) |
| incorporation or organization)                           |   |                                    |
|                                                     |   |                                    |
| 445 Broadhollow Road, Suite 100, Melville, New York |   | 11747                                   |
| (Address of principal executive offices)                 |   | (Zip Code)                              |

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

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TABLE OF CONTENTS

|                                      |                                                                                                                                             | PAGE      |
|-------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                      |                                                                                                                                             |      |
| PART I — FINANCIAL INFORMATION |   1                                                                                                                                         |
|                                      |                                                                                                                                             |      |
| Item 1.                                   | Financial Statements                                                                                                                             |   1  |
|                                      |                                                                                                                                             |      |
|                                      | Consolidated Condensed Balance Sheets as of September 30, 2010 (unaudited) (restated) and December 31, 2009                            |   1  |
|                                      |                                                                                                                                             |      |
|                                      | Consolidated Condensed Statements of Operations for the three and nine months ended September 30, 2010 (restated) and 2009 (unaudited) |   3  |
|                                      |                                                                                                                                             |      |
|                                      | Consolidated Condensed Statement of Shareholders’ Equity for the nine months ended September 30, 2010 (unaudited) (restated)     |   4  |
|                                      |                                                                                                                                             |      |
|                                      | Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2010  (restated) and 2009 (unaudited)     |   5  |
|                                      |                                                                                                                                             |      |
|                                      | Notes to Consolidated Condensed Financial Statements                                                                                             |   7  |
|                                      |                                                                                                                                             |      |
| Item 2.                                   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                      |   18 |
|                                      |                                                                                                                                             |      |
| Item 4                                    | Controls and Procedures                                                                                                                          |   26 |
|                                      |                                                                                                                                             |      |
| PART II — OTHER INFORMATION    |   26                                                                                                                                        |
|                                      |                                                                                                                                             |      |
| Item 6.                                   | Exhibits                                                                                                                                         |   26 |
|                                      |                                                                                                                                             |      |
| Signature                                 |   27                                                                                                                                        |
|                                      |                                                                                                                                             |
| Exhibit Index                        |   28                                                                                                                                        |

----

|                                           |   | September 30, 2010 |       |   | December 31, 2009 |   |
|------------------------------------------------|--------|------------------------------|------------|--------|-----------------------------|--------|
|                                           |   | (unaudited)(Restated)        |       |   | (See Note 1)      |   |
| ASSETS                                         |   |                         |       |   |                        |   |
| CURRENT ASSETS                                 |   |                         |       |   |                        |   |
|                                           |   |                         |       |   |                        |   |
| Cash                                           |   | $                            | 430,000    |   |                        | $      | 546,000 |   |
| Accounts receivable — net                |   |                         | 9,029,000  |   |                        |   | 7,545,000 |   |
| Inventories – net                        |   |                         | 18,706,000 |   |                        |   | 19,746,000 |   |
| Notes and other receivables                    |   |                         | 69,000     |   |                        |   | 110,000 |   |
| Deferred income taxes — net              |   |                         | 670,000    |   |                        |   | 670,000 |   |
| Income tax refund receivable                   |   |                         | -          |   |                        |   | 3,270,000 |   |
| Prepaid expenses and other current assets      |   |                         | 516,000    |   |                        |   | 169,000 |   |
| Assets of discontinued operations              |   |                         | 23,000     |   |                        |   | 10,797,000 |   |
| TOTAL CURRENT ASSETS                           |   |                         | 29,443,000 |   |                        |   | 42,853,000 |   |
|                                           |   |                         |       |   |                        |   |   |   |
| PROPERTY AND EQUIPMENT                         |   |                         |       |   |                        |   |   |   |
| Land                                           |   |                         | 1,550,000  |   |                        |   | 1,550,000 |   |
| Buildings and improvements                     |   |                         | 7,480,000  |   |                        |   | 7,476,000 |   |
| Machinery and equipment                        |   |                         | 16,254,000 |   |                        |   | 16,130,000 |   |
|                                           |   |                         | 25,284,000 |   |                        |   | 25,156,000 |   |
| Less accumulated depreciation and amortization |   |                         | 13,205,000 |   |                        |   | 11,990,000 |   |
| NET PROPERTY AND EQUIPMENT                     |   |                         | 12,079,000 |   |                        |   | 13,166,000 |   |
|                                           |   |                         |       |   |                        |   |   |   |
| GOODWILL                                       |   |                         | 5,150,000  |   |                        |   | 5,150,000 |   |
|                                           |   |                         |       |   |                        |   |   |   |
| OTHER INTANGIBLE ASSETS — net            |   |                         | 2,388,000  |   |                        |   | 2,651,000 |   |
|                                           |   |                         |       |   |                        |   |   |   |
| DEFERRED INCOME TAXES — net              |   |                         | 1,437,000  |   |                        |   | 1,437,000 |   |
|                                           |   |                         |       |   |                        |   |   |   |
| ASSETS OF DISCONTINUED OPERATIONS              |   |                         | -          |   |                        |   | 3,924,000 |   |
|                                           |   |                         |       |   |                        |   |   |   |
| OTHER ASSETS — net                       |   |                         | 509,000    |   |                        |   | 237,000 |   |
|                                           |   |                         |       |   |                        |   |   |   |
| TOTAL ASSETS                                   |   | $                            | 51,006,000 |   |                        | $      | 69,418,000 |   |

----

|                                                                                                                           |   | September 30, 2010 |       |   | December 31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|--------|-----------------------------|--------|
|                                                                                                                           |   | (unaudited)                  |       |   | (See Note 1)      |   |
|                                                                                                                           |   | (Restated)              |       |   |                        |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                     |   |                         |       |   |                        |   |
| CURRENT LIABILITIES                                                                                                            |   |                         |       |   |                        |   |
|                                                                                                                           |   |                         |       |   |                        |   |
| Short-term borrowings                                                                                                          |   | $                            | 11,300,000 |   |                        | $      | 16,300,000 |   |
| Accounts payable                                                                                                               |   |                         | 3,745,000  |   |                        |   | 1,396,000 |   |
| Other accrued liabilities                                                                                                      |   |                         | 3,399,000  |   |                        |   | 2,003,000 |   |
| Liabilities of discontinued operations                                                                                         |   |                         | 32,000     |   |                        |   | 9,719,000 |   |
| Current maturities of long-term debt                                                                                           |   |                         | 4,814,000  |   |                        |   | 5,015,000 |   |
| TOTAL CURRENT LIABILITIES                                                                                                      |   |                         | 23,290,000 |   |                        |   | 34,433,000 |   |
|                                                                                                                           |   |                         |       |   |                        |   |   |   |
| Long–term debt, less current maturities                                                                                  |   |                         | 1,172,000  |   |                        |   | 4,148,000 |   |
| Liabilities of discontinued operations                                                                                         |   |                         | 310,000    |   |                        |   | 5,222,000 |   |
|                                                                                                                           |   |                         |       |   |                        |   |   |   |
| TOTAL LIABILITIES                                                                                                              |   |                         | 24,772,000 |   |                        |   | 43,803,000 |   |
|                                                                                                                           |   |                         |       |   |                        |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                  |   |                         |       |   |                        |   |   |   |
|                                                                                                                           |   |                         |       |   |                        |   |   |   |
| SHAREHOLDERS’ EQUITY                                                                                                     |   |                         |       |   |                        |   |   |   |
| Preferred stock - $10 par; authorized - 2,000,000 shares; no shares issued                                                     |   |                         | —    |   |                        |   | — |   |
| Common stock                                                                                                                   |   |                         |       |   |                        |   |   |   |
| Class A - $1 par; authorized - 7,000,000 shares; issued - 3,956,000 at September 30, 2010 and December 31, 2009 |   |                         | 3,956,000  |   |                        |   | 3,956,000 |   |
| Class B - $1 par; authorized - 2,000,000 shares; no shares issued                                                         |   |                         | —    |   |                        |   | — |   |
| Additional paid-in capital                                                                                                     |   |                         | 10,702,000 |   |                        |   | 10,615,000 |   |
| Retained earnings                                                                                                              |   |                         | 14,531,000 |   |                        |   | 13,999,000 |   |
| Treasury stock, at cost – 342,000 shares at September 30, 2010 and December 31, 2009                           |   |                         | (2,955,000 | )      |                        |   | (2,955,000 | ) |
|                                                                                                                           |   |                         |       |   |                        |   |   |   |
| TOTAL SHAREHOLDERS’ EQUITY                                                                                               |   |                         | 26,234,000 |   |                        |   | 25,615,000 |   |
|                                                                                                                           |   |                         |       |   |                        |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                               |   | $                            | 51,006,000 |   |                        | $      | 69,418,000 |   |

----

|                                                                                                                                                                                                                         |   | Three months             |       |    | Nine months              |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|------------|---------|-------------------------------|--------|
|                                                                                                                                                                                                                         |   | ended September 30, |       |    | ended September 30, |   |
|                                                                                                                                                                                                                         |   | 2010                          |       |    | 2009                          |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                                                         |   | (Restated)               |       |    |                          |   |   | (Restated)  |   |   |   |   |
|                                                                                                                                                                                                                         |   |                          |       |    |                          |   |   |   |   |   |   |   |
| Net revenue                                                                                                                                                                                                                  |   | $                             | 14,267,000 |    |                          | $      | 13,144,000 |   |   | $ | 38,734,000 |   |   | $ | 39,438,000 |   |
| Cost of sales                                                                                                                                                                                                                |   |                          | 9,526,000  |    |                          |   | 8,798,000 |   |   |   | 25,304,000 |   |   |   | 27,024,000 |   |
| Gross profit                                                                                                                                                                                                                 |   |                          | 4,741,000  |    |                          |   | 4,346,000 |   |   |   | 13,430,000 |   |   |   | 12,414,000 |   |
| Selling, general and administrative expenses                                                                                                                                                                                 |   |                          | 3,845,000  |    |                          |   | 3,909,000 |   |   |   | 12,246,000 |   |   |   | 11,935,000 |   |
| Operating income                                                                                                                                                                                                             |   |                          | 896,000    |    |                          |   | 437,000 |   |   |   | 1,184,000 |   |   |   | 479,000 |   |
| Interest expense                                                                                                                                                                                                             |   |                          | 264,000    |    |                          |   | 368,000 |   |   |   | 990,000 |   |   |   | 995,000 |   |
| Income from continuing operations before income taxes                                                                                                                                                                        |   |                          | 632,000    |    |                          |   | 69,000 |   |   |   | 194,000 |   |   |   | (516,000 | ) |
| Income tax expense (benefit)                                                                                                                                                                                                 |   |                          | —    |    |                          |   | 13,000 |   |   |   | — |   |   |   | (162,000 | ) |
| Net income (loss) from continuing operations                                                                                                                                                                                 |   |                          | 632,000    |    |                          |   | 56,000 |   |   |   | 194,000 |   |   |   | (354,000 | ) |
|                                                                                                                                                                                                                         |   |                          |       |    |                          |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income from discontinued operations (no tax benefits for the three and nine-month periods ended September 30, 2010 and $344,000 and $670,000 for the three and nine-month periods ended September 30, 2009) |   |                          | (49,000    | )  |                          |   | (832,000 | ) |   |   | 338,000 |   |   |   | (1,593,000 | ) |
|                                                                                                                                                                                                                         |   |                          |       |    |                          |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                                                                                                                                            |   | $                             | 583,000    |    |                          | $      | (776,000 | ) |   | $ | 532,000 |   |   | $ | (1,947,000 | ) |
|                                                                                                                                                                                                                         |   |                          |       |    |                          |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted earnings (loss) per share                                                                                                                                                                                  |   |                          |       |    |                          |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                                                                                                                                                                                        |   | $                             | 0.17       |    |                          | $      | 0.02 |   |   | $ | 0.05 |   |   | $ | (0.10 | ) |
| Discontinued operations                                                                                                                                                                                                      |   |                          | (0.01      | )  |                          |   | (0.23 | ) |   |   | 0.09 |   |   |   | (0.44 | ) |
| Net  income (loss)                                                                                                                                                                                                 |   | $                             | 0.16       |    |                          | $      | (0.21 | ) |   | $ | 0.14 |   |   | $ | (0.54 | ) |
|                                                                                                                                                                                                                         |   |                          |       |    |                          |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                                                                                                                                                                                  |   |                          |       |    |                          |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                                                                                                                                                                            |   |                          | 3,615,000  |    |                          |   | 3,615,000 |   |   |   | 3,615,000 |   |   |   | 3,615,000 |   |

----

|                        |   |   |       |   | Class A CommonStock, $1 Par |   |      | Additionalpaid-in |   |   | Retained  |   |   | Treasury stock |       |
|----------------------------------|--------|--------|------------|--------|-------------------------------------------------|--------|-----------|-------------------|--------|--------|-----------|--------|--------|---------------------|------------|
|                             |   | Total  |       |   | Shares                                          |   |      | Amount            |   |   | capital   |   |   | earnings            |       |   | Shares |   |   | Amount |   |
|                             |   |   |       |   |                                            |   |      |              |   |   |      |   |   |                |       |   |   |   |   |   |   |
| Balance, January 1, 2010    |   | $      | 25,615,000 |   |                                            |   | 3,956,000 |              |   | $      | 3,956,000 |   |   | $                   | 10,615,000 |   |   | $ | 13,999,000 |   |   |   | 342,000 |   |   | $ | (2,955,000 | ) |
|                             |   |   |       |   |                                            |   |      |              |   |   |      |   |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                       |   |   | 532,000    |   |                                            |   |      |              |   |   |      |   |   |                |       |   |   |   | 532,000 |   |   |   |   |   |   |   |   |   |
| Stock-based compensation         |   |   | 87,000     |   |                                            |   |      |              |   |   |      |   |   |                | 87,000     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             |   |   |       |   |                                            |   |      |              |   |   |      |   |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, September 30, 2010 |   | $      | 26,234,000 |   |                                            |   | 3,956,000 |              |   | $      | 3,956,000 |   |   | $                   | 10,702,000 |   |   | $ | 14,531,000 |   |   |   | 342,000 |   |   | $ | (2,955,000 | ) |

----

|                                                                                                              |   | Nine monthsended September 30, |       |
|-------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                                                                              |   | 2010                                          |       |   | 2009 |   |
|                                                                                                              |   | (Restated)                                    |       |   |   |   |
| Cash Flows from Operating Activities                                                                              |   |                                          |       |   |   |   |
| Net income (loss)                                                                                                 |   | $                                             | 532,000    |   |   | $ | (1,947,000 | ) |
|                                                                                                              |   |                                          |       |   |   |   |   |   |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations: |   |                                          |       |   |   |   |   |   |
| (Income) loss from discontinued operations                                                                        |   |                                          | (338,000   | )  |   |   | 1,593,000 |   |
| Non-cash charges:                                                                                                 |   |                                          |       |   |   |   |   |   |
| Depreciation and amortization                                                                                     |   |                                          | 1,239,000  |   |   |   | 1,176,000 |   |
| Amortization of other intangible assets                                                                           |   |                                          | 263,000    |   |   |   | 263,000 |   |
| Amortization of other assets                                                                                      |   |                                          | 57,000     |   |   |   | 10,000 |   |
| Provision for losses on accounts receivable                                                                       |   |                                          | 32,000     |   |   |   | (119,000 | ) |
| Stock-based compensation                                                                                          |   |                                          | 87,000     |   |   |   | 173,000 |   |
| Deferred income taxes - net                                                                                       |   |                                          | —    |   |   |   | 651,000 |   |
| Loss (gain) on sale of fixed assets                                                                               |   |                                          | 2,000      |   |   |   | (2,000 | ) |
| Changes in operating assets and liabilities:                                                                      |   |                                          |       |   |   |   |   |   |
| Accounts receivable                                                                                               |   |                                          | (1,516,000 | ) |   |   | (890,000 | ) |
| Notes and other receivables                                                                                       |   |                                          | 41,000     |   |   |   | 17,000 |   |
| Inventories                                                                                                       |   |                                          | 1,040,000  |   |   |   | 4,694,000 |   |
| Income tax refund receivable                                                                                      |   |                                          | 3,270,000  |   |   |   | (748,000 | ) |
| Prepaid expenses and other current assets                                                                         |   |                                          | (347,000   | ) |   |   | 3,000 |   |
| Other assets                                                                                                      |   |                                          | (28,000    | ) |   |   | 169,000 |   |
| Accounts payable                                                                                                  |   |                                          | 2,349,000  |   |   |   | 1,614,000 |   |
| Accrued liabilities                                                                                               |   |                                          | 1,396,000  |   |   |   | (676,000 | ) |
| Total adjustments                                                                                                 |   |                                          | 7,547,000  |   |   |   | 7,928,000 |   |
| Net cash provided by operating activities of continuing operations                                                |   |                                          | 8,079,000  |   |   |   | 5,981,000 |   |

----

|                                                |   | Nine monthsended September 30, |       |
|-----------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                |   | 2010                                          |       |   | 2009 |   |
|                                                |   | (Restated)                                    |       |   |   |   |
| Cash Flows from Investing Activities:               |   |                                          |       |   |   |   |
| Capital expenditures                                |   | $                                             | (154,000   | ) |   | $ | (1,592,000 | ) |
| Proceeds from sale of fixed assets                  |   |                                          | —    |   |   |   | 3,000 |   |
| Additional purchase price – Hy-Tech           |   |                                          | —    |   |   |   | (2,362,000 | ) |
| Net cash used in investing activities               |   |                                          | (154,000   | ) |   |   | (3,951,000 | ) |
|                                                |   |                                          |       |   |   |   |   |   |
| Cash Flows from Financing Activities:               |   |                                          |       |   |   |   |   |   |
| Proceeds from short-term borrowings                 |   |                                          | —    |   |   |   | 11,614,000 |   |
| Repayments of short-term borrowings                 |   |                                          | (5,000,000 | ) |   |   | (11,114,000 | ) |
| Term loan advances                                  |   |                                          | 957,000    |   |   |   | — |   |
| Repayments of term loan                             |   |                                          | (4,280,000 | ) |   |   | (7,334,000 | ) |
| Net proceeds from equipment lease financing         |   |                                          | —    |   |   |   | 540,000 |   |
| Principal payments on long-term debt                |   |                                          | (604,000   | ) |   |   | (194,000 | ) |
| Proceeds from notes payable                         |   |                                          | 750,000    |   |   |   | 1,433,000 |   |
| Bank financing costs                                |   |                                          | (300,000   | )  |   |   | — |   |
| Net cash used in financing activities               |   |                                          | (8,477,000 | ) |   |   | (5,055,000 | ) |
|                                                |   |                                          |       |   |   |   |   |   |
| Cash Flows from Discontinued Operations:            |   |                                          |       |   |   |   |   |   |
| Operating activities                                |   |                                          | 436,000    |   |   |   | 727,000 |   |
| Investing activities                                |   |                                          | —    |   |   |   | (13,477,000 | ) |
| Financing activities                                |   |                                          | —    |   |   |   | 15,497,000 |   |
| Net cash provided by Discontinued Operations        |   |                                          | 436,000    |   |   |   | 2,747,000 |   |
|                                                |   |                                          |       |   |   |   |   |   |
| Net decrease in cash                                |   |                                          | (116,000   | ) |   |   | (278,000 | ) |
| Cash at beginning of period                         |   |                                          | 546,000    |   |   |   | 845,000 |   |
| Cash at end of period                               |   | $                                             | 430,000    |   |   | $ | 567,000 |   |
|                                                |   |                                          |       |   |   |   |   |   |
| Supplemental disclosures of cash flow information : |   |                                          |       |   |   |   |   |   |
|                                                |   |                                          |       |   |   |   |   |   |
| Cash paid for:                                      |   |                                          |       |   |   |   |   |   |
| Interest                                            |   | $                                             | 914,000    |   |   | $ | 960,000 |   |
| Income taxes                                        |   | $                                             | 27,000     |   |   | $ | 30,000 |   |

----

----

----

| Consolidated condensed balance sheet |   |             |       |   |        |   |        |             |   |
|-----------------------------------------------------|--------|------------------|------------|--------|-------------|--------|-------------|------------------|--------|
| As at September 30, 2010        |   |             |       |   |        |   |        |             |   |
|                                                |   | As Reported |       |   | Adjustments |   |        | As Restated |   |
| Assets of discontinued operations - current         |   | $                | 128,000    |   |        | $      | (105,000    | )                |   | $ | 23,000 |   |
| Total current assets                                |   |             | 29,548,000 |   |        |   | (105,000    | )                |   |   | 29,443,000 |   |
|                                                |   |             |       |   |        |   |        |             |   |   |   |   |
| Assets of discontinued operations                   |   |             | 16,000     |   |        |   | (16,000     | )                |   |   | — |   |
| Other assets - net                                  |   |             | 233,000    |   |        |   | 276,000     |             |   |   | 509,000 |   |
| Total Assets                                        |   | $                | 50,851,000 |   |        | $      | 155,000     |             |   | $ | 51,006,000 |   |
|                                                |   |             |       |   |        |   |        |             |   |   |   |   |
|                                                |   |             |       |   |        |   |        |             |   |   |   |   |
| Liabilities of discontinued operations - current    |   | $                | 12,560,000 |   |        | $      | (12,528,000 | )                |   | $ | 32,000 |   |
| Other accrued liabilities                           |   |             | 3,483,000  |   |        |   | (84,000     | )                |   |   | 3,399,000 |   |
| Total current liabilities                           |   |             | 35,902,000 |   |        |   | (12,612,000 | )                |   |   | 23,290,000 |   |
| Total Liabilities                                   |   |             | 37,384,000 |   |        |   | (12,612,000 | )                |   |   | 24,772,000 |   |
|                                                |   |             |       |   |        |   |        |             |   |   |   |   |
| Retained earnings                                   |   |             | 1,764,000  |   |        |   | 12,767,000  |             |   |   | 14,531,000 |   |
| Total shareholders’ equity                    |   |             | 13,467,000 |   |        |   | 12,767,000  |             |   |   | 26,234,000 |   |
| Total liabilities and shareholders’ equity    |   | $                | 50,851,000 |   |        | $      | 155,000     |             |   | $ | 51,006,000 |   |

----

| Consolidated condensed statement of operations                                          |   |             |    |   |        |   |     |             |   |
|------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|-------------|--------|----------|------------------|--------|
| For the three month period ended September 30, 2010                      |   |             |    |   |        |   |     |             |   |
|                                                                                                             |   | As Reported |    |   | Adjustments |   |     | As Restated |   |
|                                                                                                             |   |             |    |   |        |   |     |             |   |
| Income (loss) from discontinued operations (no tax benefits for the three-month period ended September 30, 2010) |   | $                | 200,000 |   |        | $      | (249,000 | )                |   | $ | (49,000 | ) |
| Net income                                                                                                       |   | $                | 832,000 |   |        |   | (249,000 | )                |   | $ | 583,000 |   |
|                                                                                                             |   |             |    |   |        |   |     |             |   |   |   |   |
| Basic and diluted earnings (loss) per share                                                                      |   |             |    |   |        |   |     |             |   |   |   |   |
| Discontinued operations                                                                                          |   | $                | 0.06    |   |        | $      | (0.07    | )                |   | $ | (0.01 | ) |
| Net income                                                                                                       |   | $                | 0.23    |   |        | $      | (0.07    | )                |   | $ | 0.16 |
|                                                                                                             |

| Consolidated condensed statement of operations                                          |   |             |        |   |        |   |       |             |   |
|------------------------------------------------------------------------------------------------------------------|--------|------------------|-------------|--------|-------------|--------|------------|------------------|--------|
| For the nine month period ended September 30, 2010                       |   |             |        |   |        |   |       |             |   |
|                                                                                                             |   | As Reported |        |   | Adjustments |   |       | As Restated |   |
|                                                                                                             |   |             |        |   |        |   |       |             |   |
| (Loss) income from discontinued operations (no tax benefits for the nine -month period ended September 30, 2010) |   | $                | (12,429,000 | )      |        | $      | 12,767,000 |             |   | $ | 338,000 |   |
| Net Income (loss) income                                                                                    |   | $                | (12,235,000 | )      |        | $      | 12,767,000 |             |   | $ | 532,000 |   |
|                                                                                                             |   |             |        |   |        |   |       |             |   |   |   |   |
| Basic and diluted earnings (loss) per share                                                                      |   |             |        |   |        |   |       |             |   |   |   |   |
|    Discontinued operations                                                                        |   | $                | (3.44       | )      |        | $      | 3.53       |             |   | $ | 0.09 |   |
|    Net income                                                                                     |   | $                | (3.39       | )      |        | $      | 3.53       |             |   | $ | 0.14 |   |
|                                                                                                             |

|                       |   | As Reported |        |   | Adjustments |   |       | As Restated |   |
|----------------------------|--------|------------------|-------------|--------|-------------|--------|------------|------------------|--------|
|                       |   |             |        |   |        |   |       |             |   |
| Net (loss) income          |   | $                | (12,235,000 | )      |        | $      | 12,767,000 |             |   | $ | 532,000 |   |
|                       |   |             |        |   |        |   |       |             |   |   |   |   |
| Balance September 30, 2010 |   | $                | 13,467,000  |   |        | $      | 12,767,000 |             |   | $ | 26,234,000 |   |

| Consolidated condensed statement of cash flows               |   |             |        |    |        |   |        |             |   |
|---------------------------------------------------------------------------------------|--------|------------------|-------------|---------|-------------|--------|-------------|------------------|--------|
| For the nine month period ended September 30, 2010 |   |             |        |    |        |   |        |             |   |
|                                                                                  |   | As Reported |        |    | Adjustments |   |        | As Restated |   |
|                                                                                  |   |             |        |    |        |   |        |             |   |
| (Loss) income from discontinued operations                                            |   | $                | (12,429,000 | )  |        | $      | 12,767,000  |             |   | $ | 338,000 |   |
| Total adjustments                                                                     |   |             | 20,673,000  |    |        |   | (13,126,000 | )                |   |   | 7,547,000 |   |
|                                                                                  |   |             |        |    |        |   |        |             |   |   |   |   |
| Net cash provided by operating activities of continuing operations                    |   |             | 8,438,000   |    |        |   | (359,000    | )                |   |   | 8,079,000 |   |
|                                                                                  |   |             |        |    |        |   |        |             |   |   |   |   |
| Cash Flows from Discontinued Operations:                                              |   |             |        |    |        |   |        |             |   |   |   |   |
| Operating activities                                                                  |   |             | 2,778,000   |    |        |   | (2,342,000  | )                |   |   | 436,000 |   |
| Investing activities                                                                  |   |             | (2,110,000  | )       |        |   | 2,110,000   |             |   |   | — |   |
| Financing activities                                                                  |   |             | (591,000    | )       |        |   | 591,000     |             |   |   | — |   |
| Net cash provided by Discontinued Operations                                          |   |             | 77,000      |    |        |   | 359,000     |             |   |   | 436,000 |   |

----

|                                                                                                           |   | Three months ended |      |    | Nine months ended |   |
|----------------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|---------|-----------------------------|--------|
|                                                                                                           |   | September 30,           |      |    | September 30,          |   |
|                                                                                                           |   | 2010                         |      |    | 2009                        |   |   | 2010 |   |   | 2009 |   |
| Numerator:                                                                                                     |   |                         |      |    |                        |   |   |   |   |   |   |   |
| Numerator for basic and diluted earnings (loss) per common share:                                              |   |                         |      |    |                        |   |   |   |   |   |   |   |
| Earnings (loss) from continuing operations                                                                     |   | $                            | 632,000   |    |                        | $      | 56,000 |   |   | $ | 194,000 |   |   | $ | (354,000 | ) |
| Earnings (loss) from discontinued operations                                                                   |   |                         | (49,000   | )  |                        |   | (832,000 | ) |   |   | 338,000 |   |   |   | (1,593,000 | ) |
| Net earnings (loss)                                                                                            |   | $                            | 583,000   |    |                        | $      | (776,000 | ) |   | $ | 532,000 |   |   | $ | (1,947,000 | ) |
|                                                                                                           |   |                         |      |    |                        |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                   |   |                         |      |    |                        |   |   |   |   |   |   |   |   |   |   |   |
| Denominator for basic and diluted earnings (loss) per share — weighted average common shares outstanding |   |                         | 3,615,000 |    |                        |   | 3,615,000 |   |   |   | 3,615,000 |   |   |   | 3,615,000 |   |

|                                                    |   | Three months ended |    |   | Nine months ended |   |
|---------------------------------------------------------|--------|------------------------------|---------|--------|-----------------------------|--------|
|                                                    |   | September 30,           |    |   | September 30,          |   |
|                                                    |   | 2010                         |    |   | 2009                        |   |   | 2010 |   |   | 2009 |   |
| Weighted average antidilutive stock options outstanding |   |                         | 517,000 |   |                        |   | 554,000 |   |   |   | 515,000 |   |   |   | 554,000 |   |

----

|                                           |   | September 30, 2010 |   |
|------------------------------------------------|--------|--------------------|--------|
| Risk-free interest rate                        |   |               | 2.97   | % |
| Expected term (in years)                       |   | 10 years           |   |
| Volatility                                     |   |               | 51.4   | % |
| Dividend yield                                 |   |               | 0      | % |
| Weighted-average fair value of options granted |   | $                  | 1.40   |   |

|                                 |   | Option Shares |    |   | WeightedAverageExercisePrice |   |    | Weighted AverageRemainingContractual Life(Years) |   |   | AggregateIntrinsicValue |   |
|--------------------------------------|--------|--------------------|---------|--------|------------------------------|--------|---------|------------------------------------------------------------|--------|--------|-------------------------|--------|
| Outstanding, January 1, 2010    |   |               | 514,624 |   |                         | $      | 7.26    |                                                       |   |   | 6.0                     |   |   |   | — |   |
| Granted                              |   |               | 2,000   |   |                         |   | 2.17    |                                                       |   |   | 9.8                     |   |   |   | — |   |
| Exercised                            |   |               | — |   |                         |   | — |                                                       |   |   |                    |   |   |   |   |   |
| Forfeited                            |   |               | — |   |                         |   | — |                                                       |   |   |                    |   |   |   |   |   |
| Expired                              |   |               | — |   |                         |   | — |                                                       |   |   |                    |   |   |   |   |   |
| Outstanding, September 30, 2010 |   |               | 516,624 |   |                         | $      | 7.24    |                                                       |   |   | 5.3                     |   |   |   | — |   |
|                                 |   |               |    |   |                         |   |    |                                                       |   |   |                    |   |   |   |   |   |
| Vested, September 30, 2010      |   |               | 421,291 |   |                         | $      | 7.94    |                                                       |   |   | 4.7                     |   |   |   | — |   |

----

|                                       |   | Option Shares |    |   | Weighted Average Grant-Date Fair Value |   |
|--------------------------------------------|--------|--------------------|---------|--------|------------------------------------------------------------|--------|
| Non-vested shares, January 1, 2010    |   |               | 147,667 |   |                                                       | $      | 2.85 |   |
| Granted                                    |   |               | — |   |                                                       |   |   |   |
| Vested                                     |   |               | 52,334  |   |                                                       |   | 3.61 |   |
| Forfeited                                  |   |               | — |   |                                                       |   |   |   |
| Non-vested shares, September 30, 2010 |   |               | 95,333  |   |                                                       | $      | 2.44 |   |

|                            |   | September 30,2010 |      |   | December 31,2009 |   |
|---------------------------------|--------|------------------------|-----------|--------|-----------------------|--------|
| Accounts receivable             |   | $                      | 9,210,000 |   |                  | $      | 7,694,000 |   |
| Allowance for doubtful accounts |   |                   | (181,000  | )      |                  |   | (149,000 | ) |
|                            |   | $                      | 9,029,000 |   |                  | $      | 7,545,000 |   |

|                                             |   | September 30, 2010 |       |   | December 31, 2009 |   |
|--------------------------------------------------|--------|------------------------------|------------|--------|-----------------------------|--------|
| Raw material                                     |   | $                            | 1,914,000  |   |                        | $      | 2,086,000 |   |
| Work in process                                  |   |                         | 475,000    |   |                        |   | 680,000 |   |
| Finished goods                                   |   |                         | 17,772,000 |   |                        |   | 18,532,000 |   |
|                                             |   |                         | 20,161,000 |   |                        |   | 21,298,000 |   |
| Reserve for obsolete and slow-moving inventories |   |                         | (1,455,000 | )      |                        |   | (1,552,000 | ) |
|                                             |   | $                            | 18,706,000 |   |                        | $      | 19,746,000 |   |

|                                       |   | September 30, 2010 |      |   | December 31, 2009 |   |
|--------------------------------------------|--------|------------------------------|-----------|--------|-----------------------------|--------|
|                                       |   | Cost                         |      |   | Accumulatedamortization     |   |   | Net bookvalue |   |   | Cost |   |   | Accumulatedamortization |   |   | Net bookvalue |   |
| Other intangible assets:                   |   |                         |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer relationships                     |   | $                            | 5,070,000 |   |                        | $      | 3,174,000 |   |   | $ | 1,896,000 |   |   | $ | 5,070,000 |   |   | $ | 2,930,000 |   |   | $ | 2,140,000 |   |
| Non-compete and employment agreements |   |                         | 760,000   |   |                        |   | 760,000 |   |   |   | — |   |   |   | 760,000 |   |   |   | 760,000 |   |   |   | — |   |
| Trademarks                                 |   |                         | 199,000   |   |                        |   | — |   |   |   | 199,000 |   |   |   | 199,000 |   |   |   | — |   |   |   | 199,000 |   |
| Drawings                                   |   |                         | 290,000   |   |                        |   | 52,000 |   |   |   | 238,000 |   |   |   | 290,000 |   |   |   | 41,000 |   |   |   | 249,000 |   |
| Licensing                                  |   |                         | 105,000   |   |                        |   | 50,000 |   |   |   | 55,000 |   |   |   | 105,000 |   |   |   | 42,000 |   |   |   | 63,000 |   |
| Totals                                     |   | $                            | 6,424,000 |   |                        | $      | 4,036,000 |   |   | $ | 2,388,000 |   |   | $ | 6,424,000 |   |   | $ | 3,773,000 |   |   | $ | 2,651,000 |   |

----

| Three months ended September 30, |   |   | Nine months ended September 30, |   |
|------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
| 2010                                                 |   |   | 2009                                                |   |   | 2010 |   |   | 2009 |   |
| $                                                    | 88,000 |   |                                                | $      | 88,000 |   |   | $ | 263,000 |   |   | $ | 263,000 |   |

|                                                               |   | Nine months ended September 30, |     |
|--------------------------------------------------------------------|--------|-----------------------------------------------------|----------|
|                                                               |   | 2010                                                |     |   | 2009 |   |
| Balance, beginning of period                                       |   | $                                                   | 183,000  |   |   | $ | 337,000 |   |
| Warranties issued and changes in estimated pre-existing warranties |   |                                                | 261,000  |   |   |   | 391,000 |   |
| Actual warranty costs incurred                                     |   |                                                | (188,000 | ) |   |   | (500,000 | ) |
| Balance, end of period                                             |   | $                                                   | 256,000  |   |   | $ | 228,000 |   |

----

----

| Three months ended September 30, 2010 |   | Consolidated |       |   | Tools  |   |       | Hardware |   |
|----------------------------------------------------------------|--------|--------------|------------|--------|--------|--------|------------|----------|--------|
|                                                           |   |         |       |   |   |   |       |     |   |
| Revenues from unaffiliated customers                           |   | $            | 14,267,000 |   |   | $      | 10,609,000 |     |   | $ | 3,658,000 |   |
|                                                           |   |         |       |   |   |   |       |     |   |   |   |   |
| Segment operating income                                       |   | $            | 1,978,000  |   |   | $      | 1,593,000  |     |   | $ | 385,000 |   |
| General corporate expense                                      |   |         | (1,082,000 | )      |   |   |       |     |   |   |   |   |
| Interest expense – net                                   |   |         | (264,000   | )      |   |   |       |     |   |   |   |   |
| Earnings before income taxes                                   |   | $            | 632,000    |   |   |   |       |     |   |   |   |   |
|                                                           |   |         |       |   |   |   |       |     |   |   |   |   |
| Segment assets                                                 |   | $            | 47,254,000 |   |   | $      | 36,516,000 |     |   | $ | 10,738,000 |   |
| Corporate assets                                               |   |         | 3,597,000  |   |   |   |       |     |   |   |   |   |
| Total assets                                                   |   | $            | 50,851,000 |   |   |   |       |     |   |   |   |   |
|                                                           |   |         |       |   |   |   |       |     |   |   |   |   |
| Long-lived assets, including $355,000 at corporate             |   | $            | 19,617,000 |   |   | $      | 14,673,000 |     |   | $ | 4,589,000 |   |

| Three months ended September 30, 2009 |   | Consolidated |       |   | Tools  |   |       | Hardware |   |
|----------------------------------------------------------------|--------|--------------|------------|--------|--------|--------|------------|----------|--------|
|                                                           |   |         |       |   |   |   |       |     |   |
| Revenues from unaffiliated customers                           |   | $            | 13,144,000 |   |   | $      | 9,753,000  |     |   | $ | 3,391,000 |   |
|                                                           |   |         |       |   |   |   |       |     |   |   |   |   |
| Segment operating income                                       |   | $            | 1,606,000  |   |   | $      | 1,149,000  |     |   | $ | 457,000 |   |
| General corporate expense                                      |   |         | (1,169,000 | )      |   |   |       |     |   |   |   |   |
| Interest expense – net                                   |   |         | (368,000   | )      |   |   |       |     |   |   |   |   |
| Income before income taxes                                     |   | $            | 69,000     |   |   |   |       |     |   |   |   |   |
|                                                           |   |         |       |   |   |   |       |     |   |   |   |   |
| Segment assets                                                 |   | $            | 52,238,000 |   |   | $      | 42,198,000 |     |   | $ | 10,040,000 |   |
| Corporate assets                                               |   |         | 8,126,000  |   |   |   |       |     |   |   |   |   |
| Total assets                                                   |   | $            | 60,364,000 |   |   |   |       |     |   |   |   |   |
|                                                           |   |         |       |   |   |   |       |     |   |   |   |   |
| Long-lived assets, including $193,000 at corporate             |   | $            | 21,088,000 |   |   | $      | 16,130,000 |     |   | $ | 4,765,000 |   |

| Nine months ended September 30, 2010 |   | Consolidated |       |   | Tools  |   |       | Hardware |   |
|---------------------------------------------------------------|--------|--------------|------------|--------|--------|--------|------------|----------|--------|
|                                                          |   |         |       |   |   |   |       |     |   |
| Revenues from unaffiliated customers                          |   | $            | 38,734,000 |   |   | $      | 27,124,000 |     |   | $ | 11,610,000 |   |
|                                                          |   |         |       |   |   |   |       |     |   |   |   |   |
| Segment operating income                                      |   | $            | 5,187,000  |   |   | $      | 3,541,000  |     |   | $ | 1,646,000 |   |
| General corporate expense                                     |   |         | (4,003,000 | )      |   |   |       |     |   |   |   |   |
| Interest expense – net                                  |   |         | (990,000   | )      |   |   |       |     |   |   |   |   |
| Loss before income taxes                                      |   | $            | 194,000    |   |   |   |       |     |   |   |   |   |
|                                                          |   |         |       |   |   |   |       |     |   |   |   |   |
| Segment assets                                                |   | $            | 47,254,000 |   |   | $      | 36,516,000 |     |   | $ | 10,738,000 |   |
| Corporate assets                                              |   |         | 3,597,000  |   |   |   |       |     |   |   |   |   |
| Total assets                                                  |   | $            | 50,851,000 |   |   |   |       |     |   |   |   |   |
|                                                          |   |         |       |   |   |   |       |     |   |   |   |   |
| Long-lived assets, including $355,000 at corporate            |   | $            | 19,617,000 |   |   | $      | 14,673,000 |     |   | $ | 4,589,000 |   |

----

| Nine months ended September 30, 2009 |   | Consolidated |       |   | Tools  |   |       | Hardware |   |
|---------------------------------------------------------------|--------|--------------|------------|--------|--------|--------|------------|----------|--------|
|                                                          |   |         |       |   |   |   |       |     |   |
| Revenues from unaffiliated customers                          |   | $            | 39,438,000 |   |   | $      | 28,234,000 |     |   | $ | 11,204,000 |   |
|                                                          |   |         |       |   |   |   |       |     |   |   |   |   |
| Segment operating income                                      |   | $            | 3,785,000  |   |   | $      | 2,745,000  |     |   | $ | 1,040,000 |   |
| General corporate expense                                     |   |         | (3,306,000 | )      |   |   |       |     |   |   |   |   |
| Interest expense – net                                  |   |         | (995,000   | )      |   |   |       |     |   |   |   |   |
| Loss before income taxes                                      |   | $            | (516,000   | )      |   |   |       |     |   |   |   |   |
|                                                          |   |         |       |   |   |   |       |     |   |   |   |   |
| Segment assets                                                |   | $            | 52,238,000 |   |   | $      | 42,198,000 |     |   | $ | 10,040,000 |   |
| Corporate assets                                              |   |         | 8,126,000  |   |   |   |       |     |   |   |   |   |
| Total assets                                                  |   | $            | 60,364,000 |   |   |   |       |     |   |   |   |   |
|                                                          |   |         |       |   |   |   |       |     |   |   |   |   |
| Long-lived assets, including $193,000 at corporate            |   | $            | 21,088,000 |   |   | $      | 16,130,000 |     |   | $ | 4,765,000 |   |

----

----

----

|              |   | Three-months Ended September 30, |       |   |   |   |       |     |   |
|-------------------|--------|-------------------------------------------------|------------|--------|--------|--------|------------|----------|--------|
|              |   | 2010                                            |       |   | 2009   |   |       | Variance |   |   | Variance |   |
|              |   |                                            |       |   |   |   |       | $        |   |   | % |   |
| Tools             |   |                                            |       |   |   |   |       |     |   |   |   |   |   |
| Florida Pneumatic |   | $                                               | 7,241,000  |   |   | $      | 6,483,000  |     |   | $ | 758,000 |   |   |   | 11.7 | % |
| Hy-Tech           |   |                                            | 3,368,000  |   |   |   | 3,270,000  |     |   |   | 98,000 |   |   |   | 3.0 |   |
| Tools Total       |   |                                            | 10,609,000 |   |   |   | 9,753,000  |     |   |   | 856,000 |   |   |   | 8.8 |   |
|              |   |                                            |       |   |   |   |       |     |   |   |   |   |   |   |   |   |
| Hardware          |   |                                            |       |   |   |   |       |     |   |   |   |   |   |   |   |   |
| Hardware Total    |   |                                            | 3,658,000  |   |   |   | 3,391,000  |     |   |   | 267,000 |   |   |   | 7.9 |   |
|              |   |                                            |       |   |   |   |       |     |   |   |   |   |   |   |   |   |
| Consolidated      |   | $                                               | 14,267,000 |   |   | $      | 13,144,000 |     |   | $ | 1,123,000 |   |   |   | 8.5 | % |

|              |   | Nine-months Ended September 30, |       |   |   |   |       |     |   |
|-------------------|--------|------------------------------------------------|------------|--------|--------|--------|------------|----------|--------|
|              |   | 2010                                           |       |   | 2009   |   |       | Variance |   |   | Variance |   |
|              |   |                                           |       |   |   |   |       | $        |   |   | % |   |
| Tools             |   |                                           |       |   |   |   |       |     |   |   |   |   |   |
| Florida Pneumatic |   | $                                              | 16,902,000 |   |   | $      | 17,313,000 |     |   | $ | (411,000 | ) |   |   | (2.4 | )% |
| Hy-Tech           |   |                                           | 10,222,000 |   |   |   | 10,921,000 |     |   |   | (699,000 | ) |   |   | (6.4 | ) |
| Tools Total       |   |                                           | 27,124,000 |   |   |   | 28,234,000 |     |   |   | (1,110,000 | ) |   |   | (3.9 | ) |
|              |   |                                           |       |   |   |   |       |     |   |   |   |   |   |   |   |   |
| Hardware          |   |                                           |       |   |   |   |       |     |   |   |   |   |   |   |   |   |
| Hardware Total    |   |                                           | 11,610,000 |   |   |   | 11,204,000 |     |   |   | 406,000 |   |   |   | 3.6 |   |
|              |   |                                           |       |   |   |   |       |     |   |   |   |   |   |   |   |   |
| Consolidated      |   | $                                              | 38,734,000 |   |   | $      | 39,438,000 |     |   | $ | (704,000 | ) |   |   | (1.8 | )% |

----

|                    |   | Three-months Ended September 30, |      |   |   |   |      |     |   |
|-------------------------|--------|-------------------------------------------------|-----------|--------|--------|--------|-----------|----------|--------|
|                    |   | 2010                                            |      |   | 2009   |   |      | Variance |   |   | Variance |   |
|                    |   |                                            |      |   |   |   |      | $        |   |   | % |   |
| Hardware                |   |                                            |      |   |   |   |      |     |   |   |   |   |
| Fence and gate hardware |   | $                                               | 2,348,000 |   |   | $      | 1,867,000 |     |   | $ | 481,000 |   |   |   | 25.8 | % |
| Kitchen and Bath        |   |                                            | 606,000   |   |   |   | 734,000   |     |   |   | (128,000 | ) |   |   | (17.4 | ) |
| OEM                     |   |                                            | 517,000   |   |   |   | 590,000   |     |   |   | (73,000 | ) |   |   | (12.4 | ) |
| Patio                   |   |                                            | 187,000   |   |   |   | 200,000   |     |   |   | (13,000 | ) |   |   | (6.5 | ) |
| Total Hardware          |   | $                                               | 3,658,000 |   |   | $      | 3,391,000 |     |   | $ | 267,000 |   |   |   | 7.9 |   |

|                    |   | Nine-months Ended September 30, |       |   |   |   |       |     |   |
|-------------------------|--------|------------------------------------------------|------------|--------|--------|--------|------------|----------|--------|
|                    |   | 2010                                           |       |   | 2009   |   |       | Variance |   |   | Variance |   |
|                    |   |                                           |       |   |   |   |       | $        |   |   | % |   |
| Hardware                |   |                                           |       |   |   |   |       |     |   |   |   |   |
| Fence and gate hardware |   | $                                              | 7,312,000  |   |   | $      | 6,289,000  |     |   | $ | 1,023,000 |   |   |   | 16.3 | % |
| Kitchen and Bath        |   |                                           | 2,129,000  |   |   |   | 2,443,000  |     |   |   | (314,000 | ) |   |   | (12.9 | ) |
| OEM                     |   |                                           | 1,523,000  |   |   |   | 1,853,000  |     |   |   | (330,000 | ) |   |   | (17.8 | ) |
| Patio                   |   |                                           | 646,000    |   |   |   | 619,000    |     |   |   | 27,000 |   |   |   | 4.4 |   |
| Total Hardware          |   | $                                              | 11,610,000 |   |   | $      | 11,204,000 |     |   | $ | 406,000 |   |   |   | 3.6 | % |

----

| Three months ended September 30, |   |              |       | Consolidated |       |       |    Tools    |   |       | Hardware |   |
|------------------------------------------------------|--------|-------------------|--------------------------------|--------------|------------|--------------------------------|-------------------------------------------|--------|--------------------------------|----------|--------|
| 2010                                                 |   | Gross Profit |                           | $            | 4,741,000  |                           |                                      | $      | 3,452,000                      |     |   | $ | 1,289,000 |   |
|                                                 |   | Gross Margin |                           |         | 33.2       | %                              |                                      |   | 32.5                           | %        |   |   | 35.2 | % |
|                                                 |   |              |                           |         |       |                           |                                      |   |                           |     |   |   |   |   |
| 2009                                                 |   | Gross Profit |                           | $            | 4,346,000  |                           |                                      | $      | 3,112,000                      |     |   | $ | 1,234,000 |   |
|                                                 |   | Gross Margin |                           |         | 33.1       | %                              |                                      |   | 31.9                           | %        |   |   | 36.4 | % |
|                                                 |   |              |                           |         |       |                           |                                      |   |                           |     |   |   |   |   |
| Nine months ended September 30,  |   |              |                           | Consolidated |       |                           | Tools                                     |   |                           | Hardware |   |
| 2010                                                 |   | Gross Profit |                           | $            | 13,430,000 |                           |                                      | $      | 9,096,000                      |     |   | $ | 4,334,000 |   |
|                                                 |   | Gross Margin |                           |         | 34.7       | %                              |                                      |   | 33.5                           | %        |   |   | 37.3 | % |
|                                                 |   |              |                           |         |       |                           |                                      |   |                           |     |   |   |   |   |
| 2009                                                 |   | Gross Profit |                           | $            | 12,414,000 |                           |                                      | $      | 8,836,000                      |     |   | $ | 3,578,000 |   |
|                                                 |   | Gross Margin |                           |         | 31.5       | %                              |                                      |   | 31.3                           | %        |   |   | 31.9 | % |

----

----

|                                |   | September 30, 2010 |       |   | December 31, 2009 |   |
|------------------------------------------|--------|------------------------------|------------|--------|-----------------------------|--------|
| Working Capital of continuing operations |   | $                            | 6,162,000  |   |                        | $      | 7,342,000 |   |
| Current Ratio of continuing operations   |   | 1.26 to 1.0                  |       |   | 1.30 to 1.0                 |   |
| Shareholders’ Equity               |   | $                            | 26,234,000 |   |                        | $      | 25,615,000 |   |

----

----

| Item 6. | Exhibits |
|---------|----------|

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|                | P&F INDUSTRIES, INC. |
|---------------------|--------------------------|
|                | (Registrant)             |
|                |                     |
|                | By                       | /s/ Joseph A. Molino, Jr. |
|                |                     | Joseph A. Molino, Jr. |
|                |                     | Chief Financial Officer |
| Dated: May 13, 2011 |                     | (Principal Financial and Chief Accounting Officer) |

----

| ExhibitNumber |   | Description of Exhibit                                                                                                                                                                 |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                             |
| 31.1          |   | Certification of Richard A. Horowitz, Principal Executive Officer of the Registrant, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                  |
|          |   |                                                                                                                                                                                             |
| 31.2          |   | Certification of Joseph A. Molino, Jr., Principal Financial Officer of the Registrant, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                |
|          |   |                                                                                                                                                                                             |
| 32.1          |   | Certification of Richard A. Horowitz, Principal Executive Officer of the Registrant, 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 Joseph A. Molino, Jr., Principal Financial Officer of the Registrant, 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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