| x |  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934 |   |
|---|-------------------------------------------------------------------------------------------|--------|

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

| Delaware                                 |   | 84-0513668          |
|------------------------------------------|--------|---------------------|
| (State or other jurisdiction of          |   | (IRS Employer       |
| incorporation or organization)           |   | Identification No.) |
|                                     |   |                |
| 100 Eagle Rock Avenue                    |   |                |
| East Hanover, New Jersey                 |   | 07936               |
| (Address of principal executive offices) |   | (Zip Code)          |

|                |   | Name of each exchange |
|---------------------|--------|-----------------------|
| Title of each class |   | on which registered   |
| None                |   | None                  |

----

----

|     |                                                                      | Page No. |
|----------|---------------------------------------------------------------------------|---------------|
|     |                                                                      |          |
| Part I   |                                                                      |          |
|     |                                                                      |          |
| Item 1.  | Business                                                                  |   3      |
| Item 1A. | Risk Factors                                                              |   8      |
| Item 1B. | Unresolved Staff Comments                                                 |   9      |
| Item 2.  | Properties                                                                |   9      |
| Item 3.  | Legal Proceedings                                                         |   11     |
| Item 4.  | [Removed and Reserved.]                                                   |   11     |
|     |                                                                      |          |
| Part II  |                                                                      |          |
|     |                                                                      |          |
| Item 5.  | Market for Registrant’s Common Equity, Related Stockholder          |          |
|     | Matters and Issuer Purchases of Equity Securities                         |   11     |
| Item 6.  | Selected Financial Data                                                   |   13     |
| Item 7.  | Management’s Discussion and Analysis of Financial Condition         |          |
|     | and Results of Operations                                                 |   14     |
| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk                |   26     |
| Item 8.  | Financial Statements and Supplementary Data                               |   27     |
| Item 9.  | Changes in and Disagreements with Accountants on Accounting               |          |
|     | and Financial Disclosure                                                  |   49     |
| Item 9A. | Controls and Procedures                                                   |   49     |
| Item 9B. | Other Information                                                         |   49     |
|     |                                                                      |          |
| Part III |                                                                      |          |
|     |                                                                      |          |
| Item 10. | Directors, Executive Officers and Corporate Governance                    |   50     |
| Item 11. | Executive Compensation                                                    |   52     |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management            |          |
|     | and Related Stockholder Matters                                           |   56     |
| Item 13. | Certain Relationships and Related Transactions, and Director Independence |   57     |
| Item 14. | Principal Accounting Fees and Services                                    |   58     |
|     |                                                                      |          |
| Part IV  |                                                                      |          |
|     |                                                                      |          |
| Item 15. | Exhibits and Financial Statement Schedules                                |   59     |
|     | Signatures                                                                |          |

----

----

| Name                            |   | City        |   | State  |   | Asset Class         |   | Size        |
|---------------------------------|--------|-------------|--------|--------|--------|---------------------|--------|-------------|
|                            |   |        |   |   |   |                |   |        |
| Sunrise Ridge                   |   | Tucson      |   | AZ     |   | Apartments          |   | 340 units   |
| Van Buren                       |   | Tucson      |   | AZ     |   | Apartments          |   | 70 units    |
| Red Mountain Professional Plaza |   | Mesa        |   | AZ     |   | Office & retail |   | 66,552 SF   |
| Tempe Corporate                 |   | Tempe       |   | AZ     |   | Office              |   | 50,700 SF   |
| Alpine Village                  |   | Sussex      |   | NJ     |   | Apartments          |   | 132 units   |
| Jefferson Gardens               |   | Jefferson   |   | NJ     |   | Condominiums        |   | 10 units    |
| Amboy Tower                     |   | Perth Amboy |   | NJ     |   | Office & Retail |   | 75,000 SF   |
| Alpine Village (a)              |   | Sussex      |   | NJ     |   | Land                |   | 0.51 acres  |
| Alpine Village (a)              |   | Wantage     |   | NJ     |   | Land                |   | 17.32 acres |
| Alpine Village (a)              |   | Sussex      |   | NJ     |   | Land                |   | 0.49 acres  |
| Alpine Village (a)              |   | Sussex      |   | NJ     |   | Land                |   | 0.22 acres  |
| West Orange                     |   | West Orange |   | NJ     |   | Land                |   | 0.6 acres   |
| Summercreek                     |   | San Antonio |   | TX     |   | Apartments          |   | 180 units   |
| Wellington Estates              |   | San Antonio |   | TX     |   | Apartments          |   | 228 units   |

| (a) Alpine Village land parcels are adjacent to the Alpine Village Apartments. |
|--------------------------------------------------------------------------------|

| ·   | Strengthen Wilshire’s existing portfolio by making capital improvements to its existing portfolio where it believes that a return can be generated by enhancing the amenity profile, floor plan finishes or site curb appeal of its properties, which management believes will help increase occupancy rates. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pursue off-market acquisitions that provide opportunity to build its portfolio of core assets at significant market discounts. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | Invest in and hold multi-family, medical office, and retail properties at reasonable off-market prices, which will allow for value creation and capital appreciation. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                       |   |       |   |          |      |               |   |          |   | Taxes               |    |                 |   |
|----------------------------|--------|------------|--------|---------------|-----------|--------------------|--------|---------------|--------|---------------------|---------|----------------------|--------|
| Name (State)(asset class)  |   | Date Sold  |   | Selling Price |      | Net BookValue |   | MortgageValue |   | Payableon Sale |    | Net Proceeds(a) |   |
|                       |   |       |   |          |      |               |   |          |   |                |    |                 |   |
| Jefferson Gardens (NJ)     |   |       |   |          |      |               |   |          |   |                |    |                 |   |
| (1-bedroom condominium)    |   | 1/28/2008  |   | $             | 150,000   |               | $      | 36,000        |   | $                   | -       |                 | $      | 39,000 |   | $ | 98,000 |   |
| Tamarac Office Plaza (FL)  |   |       |   |          |      |               |   |          |   |                |    |                 |   |   |   |   |   |   |
| (26,990 SF Office complex) |   | 5/23/2008  |   | $             | 2,000,000 |               | $      | 763,000       |   | $                   | 566,000 |                 | $      | 446,000 |   | $ | 895,000 |   |
| Jefferson Gardens (NJ)     |   |       |   |          |      |               |   |          |   |                |    |                 |   |   |   |   |   |   |
| (1-bedroom condominium)    |   | 12/08/2008 |   | $             | 154,000   |               | $      | 39,000        |   | $                   | -       |                 | $      | 39,000 |   | $ | 100,000 |   |

| (a)Net proceeds is defined as selling price less mortgage value and transaction costs such as commissions, legal fees, taxes and other expenses. |
|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   |          |                                                                                                                                                    |
|--------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | the attractiveness of our equity securities in comparison to other equity securities, including securities issued by other real estate-based companies; |
|   |          |                                                                                                                                                    |
|   | •  | our financial performance; and                                                                                                                     |
|   |          |                                                                                                                                                    |
|   | •  | general stock and bond market conditions.                                                                                                               |

----

|                          |   |         |     |             |   | Apartment Unit Type |   |   |   |   |
|-------------------------------|--------|--------------|----------|------------------|--------|-------------------------------|--------|--------|--------|--------|
| Name (State)             |   | DateAcquired |     | No. ofUnits |   | Studio /Efficiencies     |   | 1 BR   |   | 2 BR   |   | 3 BR |   | Acreage |   | RentableSq. Ft. |
| Apartments:                   |   |         |     |             |   |                          |   |   |   |   |   |   |   |   |   |   |
| Alpine Village (NJ)           |   |         | 10/29/95 |             | 132    |                          |   | -      |   | 48     |   |   | 84 |   | - |   |   | 13.73 |   | 101,724 |
| Summercreek (TX)              |   |         | 3/29/01  |             | 180    |                          |   | -      |   | 84     |   |   | 96 |   | - |   |   | 8.17 |   | 142,452 |
| Sunrise Ridge (AZ)            |   |         | 10/24/97 |             | 340    |                          |   | -      |   | 144    |   |   | 196 |   | - |   |   | 17.73 |   | 291,674 |
| Van Buren (AZ)                |   |         | 6/11/98  |             | 70     |                          |   | -      |   | 42     |   |   | 28 |   | - |   |   | 1.41 |   | 81,404 |
| Wellington (TX)               |   |         | 7/30/98  |             | 228    |                          |   | 24     |   | 60     |   |   | 116 |   | 28 |   |   | 8.69 |   | 214,744 |
| Condominiums:                 |   |         |     |             |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Jefferson Gardens (NJ) (a)(b) |   |         | 3/31/94  |             | 10     |                          |   | -      |   | 8      |   |   | 2 |   | - |   |   | - |   | 7,785 |

| (a) Classified by the Company as Discontinued Operations. See Note 2 to the Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K             |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) The Jefferson Gardens condominium complex has a total of 50 units, 34 one bedroom and 16 two bedroom, of which the Company owned 10 units as of December 31, 2010. |

----

| Name (State)                                     |   | Date Acquired |     | Rentable Sq. Ft. |   | Acreage |   |
|--------------------------------------------------|--------|--------------------|----------|----------------------------|--------|---------|--------|
| Office and Retail:                          |   |               |     |                       |   |    |   |
| Amboy Tower (NJ) (a)                             |   |               | 3/31/98  |                       | 75,000 |    |   |   |   |
| Red Mountain Professional Plaza(AZ)              |   |               | 3/31/94  |                       | 66,552 |    |   |   |   |
| Tempe Corporate (AZ)                             |   |               | 12/31/92 |                       | 50,700 |    |   |   |   |
| Land:                                            |   |               |     |                       |   |    |   |   |   |
| Alpine Village, Sussex (NJ) (a)                  |   |               | 10/28/98 |                       | -      |    |   | 0.51 |   |
| Alpine Village, Wantage (NJ) (a)                 |   |               | 2/16/01  |                       | -      |    |   | 17.32 |   |
| Alpine Village, Center Street, Sussex (NJ) (a)   |   |               | 6/13/07  |                       | -      |    |   | 0.49 |   |
| Alpine Village, Unionville Ave., Sussex (NJ) (a) |   |               | 11/26/07 |                       | -      |    |   | 0.22 |   |
| West Orange (NJ) (a)                             |   |               | 3/31/94  |                       | -      |    |   | 0.60 |   |

| (a) Classified by the Company as Discontinued Operations. See Note 2 to the Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | As of December 31, 2010 |        | For the Year Ended December 31, 2010 |        |
|--------------------------------------|--------|-------------------------|-------------|--------------------------------------------------------------------|-------------|
| Name (State)                    |   | Net BookValue      |        | Mortgage Principal                                            |        | NetOperatingIncome |   | Interest Expense |   | Capital Expenditures |   |
| Apartments:                          |   |                    |        |                                                               |        |   |   |   |   |   |   |
| Sunrise Ridge (AZ)                   |   |                    | $4,591,000  |                                                               | $9,466,000  |   |   | $1,122,000 |   | $558,000 |   |   | $82,000 |   |
| Van Buren (AZ)                       |   |                    | 1,328,000   |                                                               | 1,858,000   |   |   | 262,000 |   | 110,000 |   |   | 1,000 |   |
| Summercreek (TX)                     |   |                    | 4,898,000   |                                                               | 4,490,000   |   |   | 303,000 |   | 254,000 |   |   | 104,000 |   |
| Wellington (TX)                      |   |                    | 3,300,000   |                                                               | 3,892,000   |   |   | 524,000 |   | 229,000 |   |   | 54,000 |   |
| Alpine Village (NJ)                  |   |                    | 2,862,000   |                                                               | 4,423,000   |   |   | 407,000 |   | 261,000 |   |   | 161,000 |   |
| Office and Retail:                   |   |                    |        |                                                               |        |   |   |   |   |   |   |   |   |   |
| Red Mountain Professional Plaza (AZ) |   |                    | 1,313,000   |                                                               | -           |   |   | 110,000 |   | - |   |   | 193,000 |   |
| Tempe Corporate (AZ)                 |   |                    | 2,195,000   |                                                               | 3,314,000   |   |   | 242,000 |   | 175,000 |   |   | 78,000 |   |
|                                 |   |                    |        |                                                               |        |   |   |   |   |   |   |   |   |   |
| Total:                               |   |                    | $20,487,000 |                                                               | $27,443,000 |   |   | $2,970,000 |   | $1,587,000 |   |   | $673,000 |   |

----

|   |   | Quarter 1 |   | Quarter 2 |    | Quarter 3 |   | Quarter 4 |   |
|--------|--------|-----------|--------|-----------|---------|-----------|--------|-----------|--------|
|   |   | High      |   | -         |    | Low       |   | High      |   | - |   | Low |   | High |   | - |   | Low |   | High |   | - |   | Low |   |
|   |   |      |   |      |    |      |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2010   |   | $         | 1.48   |      |  - |      | 1.05   |      | $      | 1.07 |   |  - |   | .40 |   | $ | .60 |   |  - |   | .37 |   | $ | .95 |   | - |   |   |      .30 |   |
| 2009   |   | $         | 1.69   |      |  - |      | .90    |      | $      | 1.85 |   |  - |   | 1.19 |   | $ | 2.22 |   |  - |   | 1.50 |   | $ | 2.33 |   | - |   |   |     .90 |   |

| Issuer Purchases of Equity Securities |   |                             |      |   |                         |   |   |                                                                             |   |   |
|---------------------------------------|--------|----------------------------------|-----------|--------|------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|--------|
| Period                                |   | Total Number of Shares Purchased |      |   | Average Price Paid Per Share |   |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs |   |
| Quarter ended March 31, 2009          |   |                             | -         |   |                         | $      | -      |                                                                             |   |   | - |   |   |   | - |   |
| Quarter ended June 30, 2009           |   |                             | -         |   |                         | $      | -      |                                                                             |   |   | - |   |   |   | - |   |
| Quarter ended September 30, 2009      |   |                             | 4,047,380 |   |                         | $      | 2.00   |                                                                             |   |   | 4,047,380 |   |   |   | - |   |
| Quarter ended December 31, 2009       |   |                             | -         |   |                         | $      | -      |                                                                             |   |   | - |   |   |   | - |   |
| Total                                 |   |                             | 4,047,380 |   |                         | $      | 2.00   |                                                                             |   |   | 4,047,380 |   |   |   | - |   |

----

|                                                       | (a)Number ofSecurities To BeIssued UponExercise OfOutstandingOptions, Warrantsand Rights |   | (b)WeightedAverage ExercisePrice OfOutstandingOptions, Warrantsand Rights |   | (c)Number ofSecuritiesRemainingAvailableFor FutureIssuanceUnder EquityCompensationPlans(ExcludingSecuritiesReflectedIn Column (a)) |
|------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                       |                                                                                                                   |   |                                                                                     |   |                                                                                                                                                        |
| Equity compensation plans approved by security holders     | 122,500                                                                                                                |   | $                                                                                        | 5.58   |                                                                                                                                                        | 588,000 |
|                                                       |                                                                                                                   |   |                                                                                     |   |                                                                                                                                                        |   |
| Equity compensation plans not approved by security holders | -                                                                                                                      |   |                                                                                     | -      |                                                                                                                                                        | - |
|                                                       |                                                                                                                   |   |                                                                                     |   |                                                                                                                                                        |   |
| Total                                                      | 122,500                                                                                                                |   | $                                                                                        | 5.58   |                                                                                                                                                        | 588,000 |

----

|                                 |   | As of December 31, |   |
|--------------------------------------|--------|--------------------|--------|
|                                 |   | (in thousands)     |   |
|                                 |   | 2010               |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Balance Sheet Data at Year-End:      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                         |   | $                  | 30,248 |   |   | $ | 32,480 |   |   | $ | 43,343 |   |   | $ | 45,384 |   |   | $ | 46,915 |   |
| Long-term debt                       |   |               | 27,443 |   |   |   | 28,016 |   |   |   | 27,845 |   |   |   | 28,952 |   |   |   | 29,618 |   |
| Stockholders' equity                 |   |               | 91     |   |   |   | 1,200 |   |   |   | 11,976 |   |   |   | 13,136 |   |   |   | 13,923 |   |
| Weighted average shares outstanding: |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Basic        |   |               | 4,091  |   |   |   | 6,799 |   |   |   | 7,924 |   |   |   | 7,922 |   |   |   | 7,888 |   |
|     Diluted      |   |               | 4,091  |   |   |   | 6,799 |   |   |   | 7,924 |   |   |   | 7,922 |   |   |   | 8,015 |   |

|                                                                |   | For the Year Ended December 31,                    |   |
|---------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                |   | (In thousands of dollars except per share amounts) |   |
|                                                                |   | 2010                                               |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Statement of Operations Data:                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                            |   | $                                                  | 8,649  |   |   | $ | 8,920 |   |   | $ | 9,203 |   |   | $ | 9,420 |   |   | $ | 8,834 |   |
| Costs and expenses:                                                 |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                  |   |                                               | 5,679  |   |   |   | 5,857 |   |   |   | 5,892 |   |   |   | 5,863 |   |   |   | 5,275 |   |
| Depreciation                                                        |   |                                               | 1,125  |   |   |   | 1,148 |   |   |   | 1,188 |   |   |   | 1,368 |   |   |   | 1,987 |   |
| General and administrative                                          |   |                                               | 1,998  |   |   |   | 3,865 |   |   |   | 3,816 |   |   |   | 3,617 |   |   |   | 2,475 |   |
| Total costs and expenses                                            |   |                                               | 8,802  |   |   |   | 10,870 |   |   |   | 10,896 |   |   |   | 10,848 |   |   |   | 9,737 |   |
| Dividend and interest income                                        |   |                                               | 8      |   |   |   | 33 |   |   |   | 415 |   |   |   | 540 |   |   |   | 836 |   |
| Loss on sale of marketable securities                               |   |                                               |   |   |   |   | - |   |   |   | (188 | )  |   |   | - |   |   |   | - |   |
| Other income                                                        |   |                                               | 7      |   |   |   | 3 |   |   |   | - |   |   |   | 36 |   |   |   | 7 |   |
| Interest expense including amortization of deferred financing costs |   |                                               | (1,587 | ) |   |   | (1,708 | ) |   |   | (1,776 | ) |   |   | (1,837 | ) |   |   | (1,811 | ) |
| Loss before provision for taxes                                     |   |                                               | (1,725 | ) |   |   | (3,622 | ) |   |   | (3,242 | ) |   |   | (2,689 | ) |   |   | (1,871 | ) |
| Income tax benefit                                                  |   |                                               | (480   | ) |   |   | (1,110 | ) |   |   | (1,343 | ) |   |   | (1,321 | ) |   |   | (829 | ) |
| Loss from continuing operations                                     |   |                                               | (1,245 | ) |   |   | (2,512 | ) |   |   | (1,899 | ) |   |   | (1,368 | ) |   |   | (1,042 | ) |
| Discontinued operations - real estate                               |   |                                               | (240   | ) |   |   | (465 | )  |   |   | 214 |   |   |   | 176 |   |   |   | 3,212 |   |
| Discontinued operations - oil and gas                               |   |                                               | 16     |   |   |   | 218 |   |   |   | 324 |   |   |   | 300 |   |   |   | 115 |   |
| Net income (loss)                                                   |   | $                                                  | (1,469 | ) |   | $ | (2,759 | ) |   | $ | (1,361 | ) |   | $ | (892 | ) |   | $ | 2,285 |   |
| Basic earnings (loss) per share:                                    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                               |   | $                                                  | (0.30  | ) |   | $ | (0.37 | ) |   | $ | (0.24 | ) |   | $ | (0.17 | ) |   | $ | (0.13 | ) |
| Discontinued operations                                             |   |                                               | (0.06  | ) |   |   | (0.04 | )  |   |   | 0.07 |   |   |   | 0.06 |   |   |   | 0.42 |   |
| Net income (loss) per share                                         |   | $                                                  | (0.36  | ) |   | $ | (0.41 | ) |   | $ | (0.17 | ) |   | $ | (0.11 | ) |   | $ | 0.29 |   |
| Diluted earnings (loss) per share:                                  |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                               |   | $                                                  | (0.30  | ) |   | $ | (0.37 | ) |   | $ | (0.24 | ) |   | $ | (0.17 | ) |   | $ | (0.13 | ) |
| Discontinued operations                                             |   |                                               | (0.06  | ) |   |   | (0.04 | )  |   |   | 0.07 |   |   |   | 0.06 |   |   |   | 0.41 |   |
| Net income (loss) per share                                         |   | $                                                  | (0.36  | ) |   | $ | (0.41 | ) |   | $ | (0.17 | ) |   | $ | (0.11 | ) |   | $ | 0.28 |   |

----

----

----

----

|                                                |   | Increase (Decrease) in Consolidated Statements |        |
|-----------------------------------------------------|--------|------------------------------------------------|-------------|
|                                                |   | of Operations Categories for the Periods:      |        |
|                                                |   | 2010 v. 2009                                   |        | 2009 v. 2008 |   |
|                                                |   | Amount ($)                                     |        | % |   | Amount ($) |   | % |   |
|                                                |   |                                           |        |   |   |   |   |   |   |
| Revenues                                            |   | $                                              | (271,000)   |   |   | (3.0) | % | $ | (283,000) |   |   | (3.1 | )% |
| Costs and expenses:                                 |   |                                           |        |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                  |   |                                           | (178,000)   |   |   | (3.0) | % |   | (35,000 | ) |   | (0.6 | )% |
| Depreciation and amortization                       |   |                                           | (23,000)    |   |   | (2.0) | % |   | (40,000 | ) |   | (3.4 | )% |
| General and administrative                          |   |                                           | (1,867,000) |   |   | (48.3) | % |   | 49,000 |   |   | 1.3 |  % |
| Total costs and expenses                            |   |                                           | (2,068,000) |   |   | (19.0) | % |   | (26,000 | )  |   | (0.2 | )% |
| Income (Loss) from Operations                       |   |                                           | 1,797,000   |   |   | 92.1 | % |   | (257,000 | ) |   | (15.2 | ) % |
| Other Income (Loss)                                 |   |                                           |        |   |   |   |   |   |   |   |   |   |   |
| Dividend and interest income                        |   |                                           | (25,000)    |   |   | (75.8) | % |   | (382,000 | ) |   | (92.0 | )% |
| Loss on sale of marketable securities               |   |                                           |        |   |   |   |   |   | 188,000 |   |   |      100.0 | % |
| Other income                                        |   |                                           | 4,000       |   |   | 133.3 | % |   | 3,000 |   |   | 100.0 |  % |
| Interest expense                                    |   |                                           | 121,000     |   |   | 7.1 | % |   | 68,000 |   |   | 3.8 | % |
| Income (Loss) before benefit for taxes              |   |                                           | 1,897,000   |   |   | 52.4 | % |   | (380,000 | ) |   | (11.7 | )% |
| Income tax benefit                                  |   |                                           | 630,000     |   |   | 56.8 | % |   | 233,000 |   |   |  17.3 | % |
| Income (Loss) from continuing operations            |   |                                           | 1,267,000   |   |   | 50.4 | % |   | (613,000 | ) |   | ( 32.3 | )% |
| Discontinued operations - real estate               |   |                                           |        |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                |   |                                           | 225,000     |   |   | 48.4 | % |   | 127,000 |   |   | 21.5 | % |
| Gain from sales                                     |   |                                           |        |   |   |   |   |   | (806,000 | ) |   | (100.0 | )% |
| Discontinued operations - oil and  gas    |   |                                           |        |   |   |   |   |   |   |   |   |   |   |
| Income from operations                              |   |                                           | (202,000)   |   |   | (92.7) | % |   | (106,000 | )  |   | (32.7 | )% |
| Income  Net (loss)                        |   | $                                              | 1,290,000   |   |   | 46.7 | % | $ | (1,398,000 | ) |   | (102.7 | )% |
| Basic earnings (loss) per share:                    |   |                                           |        |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                     |   | $                                              | 0.07        |   |   |  18.9 | % | $ | (0.13 | ) |   | (54.2 | )% |
| Income from discontinued operations                 |   |                                           | (0.02)      |   |   | (50.0) | % |   | (0.11 | ) |   | (157.1 | )% |
| Net income (loss) applicable to common stockholders |   | $                                              | 0.05        |   |   | 12.2 | % | $ | (0.24 | ) |   | (141.2 | )% |
| Diluted earnings (loss) per share:                  |   |                                           |        |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                     |   | $                                              | 0.07        |   |   | 81.1 | % | $ | (0.13 | ) |   | (54.2 | )% |
| Income from discontinued operations                 |   |                                           | (0.02)      |   |   | (50.0) | % |   | (0.11 | ) |   | (157.1 | )% |
| Net income (loss) applicable to common stockholders |   | $                                              | 0.05        |   |   | 84.9 | % | $ | (0.24 | ) |   | (141.2 | )% |

----

|                                                                        |   | Residential Real Estate |    | Commercial Real Estate |   |  Total  |   | Total           |                               |
|-----------------------------------------------------------------------------|--------|-------------------------|---------|------------------------|--------|--------------|--------|-----------------|------------------------------------|
|                                                                        |   | Year ended              |    | Increase               |   | Year ended   |   |            |                               | Year ended |   |   |   |
|                                                                        |   | December 31,            |    | (Decrease)             |   | December 31, |   | Decrease        |                               | December 31, |   | Decrease |   |
|                                                                        |   | 2010                    |    | 2009                   |   |  $      |   | %               |                               | 2010 |   | 2009 |   |  $ |   | % |   | 2010 |   | 2009 |   | $ |   | % |   |
|                                                                        |   | (In 000's of $)         |    |                   |   |         |   | (In 000's of $) |                               |   |   |   |   | (In 000's of $) |   |   |   |   |   |
|                                                                        |   |                    |    |                   |   |         |   |            |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                                              |   | $                       | 7,596   |                   | $      | 7,663        |   | $               |      (67) |   |   |  (.09%) |   | $ | 1,053 |   | $ | 1,257 |   | $ | (204) |   |   |  (16.2)% |   | $ | 8,649 |   | $ | 8,920 |   | $ | (271) |   |   | (3.0)% |   |
|                                                                        |   |                    |    |                   |   |         |   |            |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                          |   |                    | 4,977   |                   |   | 5,143        |   |            |  (166)                        |   |   |  (3.2)% |   |   | 702 |   |   | 714 |   |   | (12) |   |   |  (1.6)% |   |   | 5,679 |   |   | 5,857 |   |   | (178) |   |   | (3.0)% |   |
|                                                                        |   |                    |    |                   |   |         |   |            |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net operating income                                                        |   | $                       | 2,619   |                   | $      | 2,520        |   | $               | 99                                 |   |   | 3.9% |   | $ | 351 |   | $ | 543 |   | $ |           (192) |   |   | (35.3)% |   | $ | 2,970 |   | $ | 3,063 |   | $ | (93) |   |   |  (3.0)% |   |
|   Reconciliation to consolidated loss from continuing operations: |   |
|                                                                        |   |
| Net operating income                                                        |   | $                       | 2,970   |                   | $      | 3,063        |   |
| Depreciation                                                                |   |                    | (1,125) |                   |   | (1,148       | )      |
| General and administrative expense                                          |   |                    | (1,998) |                   |   | (3,865       | )      |
| Other income                                                                |   |                    | 15      |                   |   | 36           |   |
| Interest expense                                                            |   |                    | (1,587) |                   |   | (1,708       | )      |
| Income tax benefit                                                          |   |                    | 480     |                   |   | 1,110        |   |
| Loss from continuing operations                                             |   | $                       | (1,245) |                   | $      | (2,512       | )      |

----

|                               |   | Years Ended December 31, |      |   | Increase |   |
|------------------------------------|--------|--------------------------|-----------|--------|----------|--------|
|  Residential Properties:      |   | 2010                     |      |   | 2009     |   |   | (Decrease) |   |
| Sunrise Ridge, Arizona             |   | $                        | 2,607,000 |   |     | $      | 2,568,000 |   |   | $ | 39,000 |   |
| Van Buren Apartments, Arizona      |   |                     | 689,000   |   |     |   | 680,000 |   |   |   | 9,000 |   |
| Wellington Estates, Texas          |   |                     | 1,823,000 |   |     |   | 1,824,000 |   |   |   | (1,000 | ) |
| Alpine Village, New Jersey         |   |                     | 1,324,000 |   |     |   | 1,416,000 |   |   |   | (92,000 | ) |
| Summercreek, Texas                 |   |                     | 1,153,000 |   |     |   | 1,175,000 |   |   |   | (22,000 | ) |
| Sub-total - Residential Properties |   |                     | 7,596,000 |   |     |   | 7,663,000 |   |   |   | (67,000 | ) |
|                               |   |                     |      |   |     |   |   |   |   |   |   |   |
|  Commercial Properties:       |   |                     |      |   |     |   |   |   |   |   |   |   |
| Red Mountain Plaza, Arizona        |   |                     | 425,000   |   |     |   | 464,000 |   |   |   | (39,000 | ) |
| Tempe Corporate Center, Arizona    |   |                     | 628,000   |   |     |   | 793,000 |   |   |   | (165,000 | ) |
| Sub-total- Commercial Properties   |   |                     | 1,053,000 |   |     |   | 1,257,000 |   |   |   | (204,000 | ) |
|                               |   |                     |      |   |     |   |   |   |   |   |   |   |
| Total Revenues                     |   | $                        | 8,649,000 |   |     | $      | 8,920,000 |   |   | $ | (271,000 | ) |

----

|                               |   | Years Ended December 31, |      |   | Increase |   |
|------------------------------------|--------|--------------------------|-----------|--------|----------|--------|
|  Residential Properties:      |   | 2010                     |      |   | 2009     |   |   | (Decrease) |   |
| Sunrise Ridge, Arizona             |   | $                        | 1,484,000 |   |     | $      | 1,597,000 |   |   | $ | (113,000 | ) |
| Van Buren Apartments, Arizona      |   |                     | 427,000   |   |     |   | 468,000 |   |   |   | (41,000 | ) |
| Wellington Estates, Texas          |   |                     | 1,299,000 |   |     |   | 1,283,000 |   |   |   | 16,000 |   |
| Alpine Village, New Jersey         |   |                     | 917,000   |   |     |   | 915,000 |   |   |   | 2,000 |   |
| Summercreek, Texas                 |   |                     | 850,000   |   |     |   | 880,000 |   |   |   | (30,000 | ) |
| Sub-total - Residential Properties |   |                     | 4,977,000 |   |     |   | 5,143,000 |   |   |   | (166,000 | ) |
|                               |   |                     |      |   |     |   |   |   |   |   |   |   |
| Commercial Properties:             |   |                     |      |   |     |   |   |   |   |   |   |   |
| Red Mountain Plaza, Arizona        |   |                     | 387,000   |   |     |   | 308,000 |   |   |   | 79,000 |   |
| Tempe Corporate Center, Arizona    |   |                     | 315,000   |   |     |   | 406,000 |   |   |   | (91,000 | ) |
| Sub-total- Commercial Properties   |   |                     | 702,000   |   |     |   | 714,000 |   |   |   | (12,000 | ) |
|                               |   |                     |      |   |     |   |   |   |   |   |   |   |
| Total Operating Expenses           |   | $                        | 5,679,000 |   |     | $      | 5,857,000 |   |   | $ | (178,000 | ) |

----

|                                                                  |   | Residential Real Estate |    | Commercial Real Estate |   |  Total  |   | Total           |   |
|-----------------------------------------------------------------------|--------|-------------------------|---------|------------------------|--------|--------------|--------|-----------------|--------|
|                                                                  |   | Year ended              |    |                   |   | Year ended   |   | Increase        |   | Year ended |   |   |   |
|                                                                  |   | December 31,            |    | Decrease               |   | December 31, |   | (Decrease)      |   | December 31, |   | Decrease |   |
|                                                                  |   | 2009                    |    | 2008                   |   |  $      |   | %               |   | 2009 |   | 2008 |   |  $ |   | % |   | 2009 |   | 2008 |   | $ |   | % |   |
|                                                                  |   | (In 000's of $)         |    |                   |   |         |   | (In 000's of $) |   |   |   |   |   | (In 000's of $) |   |   |   |   |   |
|                                                                  |   |                    |    |                   |   |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                                        |   | $                       | 7,663   |                   | $      | 7,770        |   | $               | (107)  |   |   | (1.4) | % | $ | 1,257 |   | $ | 1,433 |   | $ | (176) |   |   | (12.3) | % | $ | 8,920 |   | $ | 9,203 |   | $ | (283) |   |   | (3.1) | % |
|                                                                  |   |                    |    |                   |   |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                    |   |                    | 5,143   |                   |   | 5,192        |   |            | (49)   |   |   | (0.9) | % |   | 714 |   |   | 700 |   |   | 14 |   |   | 2.0 | % |   | 5,857 |   |   | 5,892 |   |   | (35) |   |   | (0.6) | % |
|                                                                  |   |                    |    |                   |   |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net operating income                                                  |   | $                       | 2,520   |                   | $      | 2,578        |   | $               | (58    | ) |   | (2.2) | % | $ | 543 |   | $ | 733 |   | $ | (190 | )  |   | (25.9) | % | $ | 3,063 |   | $ | 3,311 |   | $ | (248 | ) |   | (7.5) | % |
|  Reconciliation to consolidated loss from continuing operations: |   |
|                                                                  |   |
|    Net operating income                                |   | $                       | 3,063   |                   | $      | 3,311        |   |
|    Depreciation expense                                |   |                    | (1,148) |                   |   | (1,188       | )      |
|    General and administrative expense                  |   |                    | (3,865) |                   |   | (3,816       | )      |
|    Other income                                        |   |                    | 36      |                   |   | 227          |   |
|    Interest expense                                    |   |                    | (1,708) |                   |   | (1,776       | )      |
|    Income tax benefit                                  |   |                    | 1,110   |                   |   | 1,343        |   |
|    Loss from continuing operations                     |   | $                       | (2,512) |                   | $      | (1,899       | )      |

----

|                                     |   | Years Ended December 31, |      |   | Increase |   |
|------------------------------------------|--------|--------------------------|-----------|--------|----------|--------|
|  Residential Properties:            |   | 2009                     |      |   | 2008     |   |   | (Decrease) |   |
| Sunrise Ridge, Arizona                   |   | $                        | 2,568,000 |   |     | $      | 2,732,000 |   |   | $ | (164,000 | ) |
| Van Buren Apartments, Arizona            |   |                     | 680,000   |   |     |   | 655,000 |   |   |   | 25,000 |   |
| Wellington Estates, Texas                |   |                     | 1,824,000 |   |     |   | 1,825,000 |   |   |   | (1,000 | ) |
| Alpine Village, New Jersey               |   |                     | 1,416,000 |   |     |   | 1,394,000 |   |   |   | 22,000 |   |
| Summercreek, Texas                       |   |                     | 1,175,000 |   |     |   | 1,164,000 |   |   |   | 11,000 |   |
| Sub-total - Residential Properties       |   |                     | 7,663,000 |   |     |   | 7,770,000 |   |   |   | (107,000 | ) |
|                                     |   |                     |      |   |     |   |   |   |   |   |   |   |
|  Commercial Properties:             |   |                     |      |   |     |   |   |   |   |   |   |   |
| Red Mountain Professional Plaza, Arizona |   |                     | 464,000   |   |     |   | 577,000 |   |   |   | (113,000 | ) |
| Tempe Corporate Center, Arizona          |   |                     | 793,000   |   |     |   | 856,000 |   |   |   | (63,000 | )  |
| Sub-total- Commercial Properties         |   |                     | 1,257,000 |   |     |   | 1,433,000 |   |   |   | (176,000 | ) |
|                                     |   |                     |      |   |     |   |   |   |   |   |   |   |
| Total Revenues                           |   | $                        | 8,920,000 |   |     | $      | 9,203,000 |   |   | $ | (283,000 | ) |

----

|                                     |   | Years Ended December 31, |      |   | Increase |   |
|------------------------------------------|--------|--------------------------|-----------|--------|----------|--------|
|                                     |   | 2009                     |      |   | 2008     |   |   | (Decrease) |   |
| Sunrise Ridge, Arizona                   |   | $                        | 1,597,000 |   |     | $      | 1,619,000 |   |   | $ | (22,000 | ) |
| Van Buren Apartments, Arizona            |   |                     | 468,000   |   |     |   | 433,000 |   |   |   | 35,000 |   |
| Wellington Estates, Texas                |   |                     | 1,283,000 |   |     |   | 1,316,000 |   |   |   | (33,000 | ) |
| Alpine Village, New Jersey               |   |                     | 915,000   |   |     |   | 927,000 |   |   |   | (12,000 | ) |
| Summercreek, Texas                       |   |                     | 880,000   |   |     |   | 897,000 |   |   |   | (17,000 | ) |
| Sub-total - Residential Properties       |   |                     | 5,143,000 |   |     |   | 5,192,000 |   |   |   | (49,000 | ) |
|                                     |   |                     |      |   |     |   |   |   |   |   |   |   |
| Red Mountain Professional Plaza, Arizona |   |                     | 308,000   |   |     |   | 301,000 |   |   |   | 7,000 |   |
| Tempe Corporate Center, Arizona          |   |                     | 406,000   |   |     |   | 399,000 |   |   |   | 7,000 |   |
| Sub-total - Commercial Properties        |   |                     | 714,000   |   |     |   | 700,000 |   |   |   | 14,000 |   |
|                                     |   |                     |      |   |     |   |   |   |   |   |   |   |
| Total Operating Expenses                 |   | $                        | 5,857,000 |   |     | $      | 5,892,000 |   |   | $ | (35,000 | ) |

----

----

| Name of property                       |   | Years ended December 31, |    |
|----------------------------------------|--------|--------------------------|---------|
|                                   |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
| Residential continuing operations:     |   |                     |    |   |   |   |   |   |   |
| Sunrise Ridge                          |   | $                        | 82,000  |   |   | $ | 12,000 |   |   | $ | 78,000 |   |
| Van Buren                              |   |                     | 1,000   |   |   |   | 2,000 |   |   |   | 2,000 |   |
| Wellington                             |   |                     | 54,000  |   |   |   | 79,000 |   |   |   | 60,000 |   |
| Alpine Village                         |   |                     | 161,000 |   |   |   | 6,000 |   |   |   | 13,000 |   |
| Summercreek                            |   |                     | 104,000 |   |   |   | 385,000 |   |   |   | 27,000 |   |
|                                   |   |                     |    |   |   |   |   |   |   |   |   |   |
| Commercial continuing operations:      |   |                     |    |   |   |   |   |   |   |   |   |   |
| Red Mountain Professional Plaza        |   |                     | 193,000 |   |   |   | 50,000 |   |   |   | - |   |
| Tempe Corporate                        |   |                     | 78,000  |   |   |   | 17,000 |   |   |   | 63,000 |   |
|                                   |   |                     |    |   |   |   |   |   |   |   |   |   |
| Discontinued operations - residential: |   |                     |    |   |   |   |   |   |   |   |   |   |
| Jefferson Gardens                      |   |                     | 3,000   |   |   |   | - |   |   |   | - |   |
| Alpine Land (a)                        |   |                     | 0       |   |   |   | - |   |   |   | - |   |
|                                   |   |                     |    |   |   |   |   |   |   |   |   |   |
| Discontinued operations - commercial:  |   |                     |    |   |   |   |   |   |   |   |   |   |
| Amboy Towers                           |   |                     | 20,000  |   |   |   | 2,000 |   |   |   | 12,000 |   |
| Tamarac Office Plaza(b)                |   |                     |    |   |   |   | - |   |   |   | 2,000 |   |
|                                   |   |                     |    |   |   |   |   |   |   |   |   |   |
| Total capital expenditures             |   | $                        | 696,000 |   |   | $ | 553,000 |   |   | $ | 257,000 |   |

| (a)   | Alpine Land represents land and a residential building bought in 2007. |
|-----------------|------------------------------------------------------------------------|

| (b)   | Tamarac Office Plaza was sold in May 2008. |
|-----------------|--------------------------------------------|

----

|                 |   | 2010   |       |   | 2009   |   |
|----------------------|--------|--------|------------|--------|--------|--------|
| Total debt           |   |   | 27,443,000 |   |   |   | 28,016,000 |   |
| Less-current portion |   |   | 606,000    |   |   |   | 572,000 |   |
| Long term portion    |   | $      | 26,837,000 |   |   | $      | 27,444,000 |   |

| Year       |   | Amount |       |
|------------|--------|--------|------------|
| 2011       |   | $      | 606,000    |   |
| 2012       |   |   | 637,000    |   |
| 2013       |   |   | 21,910,000 |   |
| 2014       |   |   | 74,000     |   |
| 2015       |   |   | 79,000     |   |
| Thereafter |   |   | 4,137,000  |   |
|       |   | $      | 27,443,000 |   |

| Year   |   | Amount |       |
|--------|--------|--------|------------|
| 2013   |   | $      | 21,699,000 |   |
| 2017   |   |   | 3,841,000  |   |
|   |   | $      | 25,540,000 |   |

----

----

|                                                                                                           |   | 2010   |       |   | 2009   |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| ASSETS                                                                                                         |   |   |       |   |   |   |
| Current assets:                                                                                                |   |   |       |   |   |   |
| Cash and cash equivalents                                                                                      |   | $      | 3,591,000  |   |   | $      | 4,263,000 |   |
| Restricted cash                                                                                                |   |   | 176,000    |   |   |   | 197,000 |   |
| Accounts receivable, net                                                                                       |   |   | 65,000     |   |   |   | 181,000 |   |
| Income taxes receivable                                                                                        |   |   | -          |   |   |   | 1,086,000 |   |
| Prepaid expenses and other current assets                                                                      |   |   | 1,420,000  |   |   |   | 1,321,000 |   |
| Total current assets                                                                                           |   |   | 5,252,000  |   |   |   | 7,048,000 |   |
|                                                                                                           |   |   |       |   |   |   |   |   |
| Other noncurrent assets                                                                                        |   |   | 117,000    |   |   |   | 172,000 |   |
|                                                                                                           |   |   |       |   |   |   |   |   |
| Property and equipment:                                                                                        |   |   |       |   |   |   |   |   |
| Real estate properties                                                                                         |   |   | 40,153,000 |   |   |   | 39,432,000 |   |
| Real estate properties - held for sale                                                                         |   |   | 4,663,000  |   |   |   | 4,640,000 |   |
|                                                                                                           |   |   | 44,816,000 |   |   |   | 44,072,000 |   |
| Less:                                                                                                          |   |   |       |   |   |   |   |   |
| Accumulated depreciation and amortization                                                                      |   |   | 19,566,000 |   |   |   | 18,441,000 |   |
| Accumulated depreciation and amortization – property held for sale                                  |   |   | 371,000    |   |   |   | 371,000 |   |
|                                                                                                           |   |   | 24,879,000 |   |   |   | 25,260,000 |   |
| Total assets                                                                                                   |   | $      | 30,248,000 |   |   | $      | 32,480,000 |   |
|                                                                                                           |   |   |       |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                     |   |   |       |   |   |   |   |   |
| Current liabilities:                                                                                           |   |   |       |   |   |   |   |   |
| Current portion of long-term debt                                                                              |   | $      | 606,000    |   |   | $      | 572,000 |   |
| Accounts payable                                                                                               |   |   | 1,418,000  |   |   |   | 1,272,000 |   |
| Income taxes payable                                                                                           |   |   | 95,000     |   |   |   | 90,000 |   |
| Accrued liabilities                                                                                            |   |   | 665,000    |   |   |   | 1,093,000 |   |
| Deferred income                                                                                                |   |   | 156,000    |   |   |   | 108,000 |   |
| Current liabilities associated with discontinued operations                                                    |   |   | 219,000    |   |   |   | 166,000 |   |
| Total current liabilities                                                                                      |   |   | 3,159,000  |   |   |   | 3,301,000 |   |
| Noncurrent liabilities:                                                                                        |   |   |       |   |   |   |   |   |
| Long-term debt, less current portion                                                                           |   |   | 26,837,000 |   |   |   | 27,444,000 |   |
| Deferred income taxes                                                                                          |   |   | 106,000    |   |   |   | 464,000 |   |
| Deferred income                                                                                                |   |   | 55,000     |   |   |   | 71,000 |   |
| Total liabilities                                                                                              |   |   | 30,157,000 |   |   |   | 31,280,000 |   |
|                                                                                                           |   |   |       |   |   |   |   |   |
| Commitments and contingencies                                                                                  |   |   |       |   |   |   |   |   |
|                                                                                                           |   |   |       |   |   |   |   |   |
| Stockholders' equity:                                                                                          |   |   |       |   |   |   |   |   |
| Preferred stock, $1 par value, 1,000,000 shares authorized; none issued and outstanding in 2010 and 2009       |   |   | -          |   |   |   | - |   |
| Common stock, $1 par value, 15,000,000 shares authorized, 5,966,164  shares issued in 2010 and 2009  |   |   | 5,966,000  |   |   |   | 5,966,000 |   |
| Capital in excess of par value                                                                                 |   |   | 4,457,000  |   |   |   | 5,340,000 |   |
| Treasury stock,  1,825,065 and 2,088,130 shares at December 31, 2010 and 2009, respectively, at cost |   |   | (8,624,000 | )      |   |   | (9,867,000 | ) |
| Accumulated deficit                                                                                            |   |   | (1,708,000 | )      |   |   | (239,000 | ) |
| Total stockholders’ equity                                                                               |   |   | 91,000     |   |   |   | 1,200,000 |   |
| Total liabilities and stockholders' equity                                                                     |   | $      | 30,248,000 |   |   | $      | 32,480,000 |   |

----

|                                                |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Revenues                                            |   | $      | 8,649,000  |   |   | $      | 8,920,000  |   |   | $ | 9,203,000 |   |
|                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Costs and expenses                                  |   |   |       |   |   |   |       |   |   |   |   |   |
| Operating expenses                                  |   |   | 5,679,000  |   |   |   | 5,857,000  |   |   |   | 5,892,000 |   |
| Depreciation and amortization expense               |   |   | 1,125,000  |   |   |   | 1,148,000  |   |   |   | 1,188,000 |   |
| General and administrative                          |   |   | 1,998,000  |   |   |   | 3,865,000  |   |   |   | 3,816,000 |   |
| Total costs and expenses                            |   |   | 8,802,000  |   |   |   | 10,870,000 |   |   |   | 10,896,000 |   |
|                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss from operations                                |   |   | (153,000   | )      |   |   | (1,950,000 | )      |   |   | (1,693,000 | ) |
|                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Other income (loss)                                 |   |   |       |   |   |   |       |   |   |   |   |   |
| Dividend and interest income                        |   |   | 8,000      |   |   |   | 33,000     |   |   |   | 415,000 |   |
| Loss on sale of marketable securities               |   |   | -          |   |   |   | -          |   |   |   | (188,000 | ) |
| Other income                                        |   |   | 7,000      |   |   |   | 3,000      |   |   |   | - |   |
| Interest expense                                    |   |   | (1,587,000 | )      |   |   | (1,708,000 | )      |   |   | (1,776,000 | ) |
|                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss before benefit for income taxes                |   |   | (1,725,000 | )      |   |   | (3,622,000 | )      |   |   | (3,242,000 | ) |
|                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Income tax benefit                                  |   |   | (480,000   | )      |   |   | (1,110,000 | )      |   |   | (1,343,000 | ) |
|                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss from continuing operations                     |   |   | (1,245,000 | )      |   |   | (2,512,000 | )      |   |   | (1,899,000 | ) |
|                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Discontinued operations - real estate, net of taxes |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss from operations                                |   |   | (240,000   | )      |   |   | (465,000   | )      |   |   | (592,000 | ) |
| Gain from sales                                     |   |   | -          |   |   |   | -          |   |   |   | 806,000 |   |
|                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Discontinued operations - oil and gas, net of taxes |   |   |       |   |   |   |       |   |   |   |   |   |
| Income from operations                              |   |   | 16,000     |   |   |   | 218,000    |   |   |   | 324,000 |   |
|                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Net loss                                            |   | $      | (1,469,000 | )      |   | $      | (2,759,000 | )      |   | $ | (1,361,000 | ) |
|                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic net loss per share:                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss from continuing operations                     |   | $      | (0.30      | )      |   | $      | (0.37      | )      |   | $ | (0.24 | ) |
| Income (loss) from discontinued operations -        |   |   |       |   |   |   |       |   |   |   |   |   |
| Real estate - loss from operations                  |   |   | (0.06      | )      |   |   | (0.07      | )      |   |   | (0.07 | ) |
| Real estate - gain on sales                         |   |   |       |   |   |   | -          |   |   |   | 0.10 |   |
| Oil and gas – income from operations     |   |   | (0.00      | )      |   |   | 0.03       |   |   |   | 0.04 |   |
| Net loss applicable to common stockholders          |   | $      | (0.36      | )      |   | $      | (0.41      | )      |   | $ | (0.17 | ) |
| Diluted net loss per share:                         |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss from continuing operations                     |   | $      | (0.30      | )      |   | $      | (0.37      | )      |   | $ | (0.24 | ) |
| Income (loss) from discontinued operations -        |   |   |       |   |   |   |       |   |   |   |   |   |
| Real estate - loss from operations                  |   |   | (0.06      | )      |   |   | (0.07      | )      |   |   | (0.07 | ) |
| Real estate - gain on sales                         |   |   |       |   |   |   | -          |   |   |   | 0.10 |   |
| Oil and gas – income from operations     |   |   | (0.0       | )      |   |   | 0.03       |   |   |   | 0.04 |   |
| Net loss applicable to common stockholders          |   | $      | (0.36      | )      |   | $      | (0.41      | )      |   | $ | (0.17 | ) |

----

|                                                                                     |   |   | Preferred Stock |   | Common Stock |    | Capital inExcess of |   | (Retained |        | Treasury  |   | AccumulatedOther Comprehensive  |   | Comprehensive |           | TotalStockholders' |   |               |   |
|------------------------------------------------------------------------------------------|--------|--------|----------------------|--------|-------------------|---------|-------------------------------|--------|-----------|-------------|-----------|--------|--------------------------------------|--------|---------------|----------------|--------------------|--------|--------------------|--------|
|                                                                                     |   |   | Shares               |   | Amount            |    | Shares                        |   | Amount    |        | Par Value |   | Earnings)                            |   | Stock         |           | Income (Loss) |   | Income (Loss) |   | Equity |   |   |   |
| Balance, January 1, 2008                                                                 |   |   |                 | -      |              |  $ | -                             |   |      | 10,013,544  |      |   | $10,014,000                          |   |          | $9,202,000     |               |   | $3,881,000         |   |   | $(9,885,000 | ) |   | $(76,000) |   |   |   |   |   | $13,136,000 |   |   |   |
| Net loss                                                                                 |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          |           |               |   | (1,361,000         | )      |   |   |   |   |   |   | $ | (1,361,000 | ) |   | (1,361,000 | ) |   |   |
| Change in unrealized loss on marketable securities, net of income tax benefit of $50,000 |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          |           |               |   |               |   |   |   |   |   | 76,000 |   |   | 76,000 |   |   | 76,000 |   |   |   |
| Comprehensive loss                                                                       |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          |           |               |   |          |   |   |   |   |   |   |   | $ | (1,285,000 | ) |   |   |   |   |   |
| Grant of 6,133 shares of restricted stock                                 |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          | (18,000)  |               |   |               |   |   | 18,000   |   |   |   |   |   |   |   |   | -  |   |   |   |
| Amortization of compensation associated with stock and stock option awards               |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          | 125,000        |               |   |               |   |   |   |   |   |   |   |   |   |   |   | 125,000 |   |   |   |
|                                                                                     |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          |           |               |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                                               |   |   |                 | -      |              |    | -                             |   |      | 10,013,544  |      |   | 10,014,000                           |   |          | 9,309,000      |               |   | 2,520,000          |   |   | (9,867,000 | ) |   | - |   |   |   |   |   | 11,976,000 |   |   |   |
| Net loss                                                                                 |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          |           |               |   | (2,759,000         | )      |   |   |   |   |   |   |   |   |   |   | (2,759,000 | ) |   |   |
| Amortization of compensation associated with stock and stock option awards               |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          | 78,000         |               |   |               |   |   |   |   |   |   |   |   |   |   |   | 78,000 |   |   |   |
| Purchase and retirement of treasury shares                                               |   |   |                 |   |              |    |                          |   |      | (4,047,380) |      |   | (4,048,000)                          |   |          | (4,047,000)    |               |   |               |   |   |   |   |   |   |   |   |   |   |   | (8,095,000) |   |   |   |
| Balance, December 31, 2009                                                               |   |   |                 | -      |              |    | -                             |   |      | 5,966,164   |      |   | 5,966,000                            |   |          | 5,340,000      |               |   | (239,000)          |   |   | (9,867,000 | ) |   | - |   |   |   |   |   | 1,200,000 |   |   |   |
| Net loss                                                                                 |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          |           |               |   | (1,469,000)        |   |   |   |   |   |   |   |   |   |   |   | (1,469,000) |   |   |   |
| Compensation associated with stock issuance                                              |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          | (925,000)      |               |   |               |   |   | 1,243,000 |   |   |   |   |   |   |   |   | 318,000 |   |   |   |
| Amortization of compensation associated with stock and stock option awards               |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          | 42,000         |               |   |               |   |   |   |   |   |   |   |   |   |   |   | 42,000 |   |   |   |
|                                                                                     |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          |           |               |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                                                               |   |   |                 | -      |              |    | -                             |   |  $   | 5,966,164   |      | $      | 5,966,000                            |   | $             | 4,457,000      |               | $      | (1,708,000)        |   | $ | (8,624,000) |   |   | - |   |   |   |   | $ | 91,000 |   |   |   |
|                                                                                     |   |   |                 |   |              |    |                          |   |      |        |      |   |                                 |   |          |           |               |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                |   | 2010   |       |   | 2009   |   |       | 2008    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|---------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                                                                                                               |   |   |       |   |   |   |       |    |   |
| Net loss                                                                                                                                                                                                                                                                            |   | $      | (1,469,000 | )      |   | $      | (2,759,000 | )       |   | $ | (1,361,000 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                                                                                                                                                                                           |   |   |       |   |   |   |       |    |   |   |   |   |
| Depreciation                                                                                                                                                                                                                                                                        |   |   | 1,125,000  |   |   |   | 1,148,000  |    |   |   | 1,188,000 |   |
| Bad debt expense                                                                                                                                                                                                                                                                    |   |   |       |   |   |   | 78,000     |    |   |   |   |   |
| Stock-based compensation expense                                                                                                                                                                                                                                                    |   |   | 42,000     |   |   |   | 78,000     |    |   |   | 125,000 |   |
| Amortization of mortgage finance costs                                                                                                                                                                                                                                              |   |   | 55,000     |   |   |   | 63,000     |    |   |   | 57,000 |   |
| Deferred income taxes  (benefit)                                                                                                                                                                                                                                          |   |   | (358,000   | )      |   |   | (133,000   | )       |   |   | 28,000 |   |
| Loss on sale of marketable securities                                                                                                                                                                                                                                               |   |   | -          |   |   |   | -          |    |   |   | 188,000 |   |
| Gain on sales of real estate assets                                                                                                                                                                                                                                                 |   |   | -          |   |   |   | -          |    |   |   | (1,344,000 | ) |
| Changes in operating assets and liabilities -                                                                                                                                                                                                                                       |   |   |       |   |   |   |       |    |   |   |   |   |
| (Increase) decrease  in accounts receivable                                                                                                                                                                                                                               |   |   | 116,000    |   |   |   | (86,000    | )  |   |   | 28,000 |   |
| (Increase) decrease in income taxes receivable                                                                                                                                                                                                                                      |   |   | 1,086,000  |   |   |   | (313,000   | )       |   |   | 877,000 |   |
| (Increase) decrease  in prepaid expenses and other current assets                                                                                                                                                                                                         |   |   | (35,000    | )      |   |   | (127,000   | )  |   |   | 45,000 |   |
| Increase (decrease) in accounts payable, accrued liabilities and taxes payable                                                                                                                                                                                                      |   |   | 30,000     |   |   |   | (128,000   | )       |   |   | 294,000 |   |
|     Increase (decrease) in deferred income                                                                                                                                                                                                                      |   |   | 32,000     |   |   |   | 3,000      |    |   |   | (83,000 | ) |
| Net cash provided by (used in) operating activities                                                                                                                                                                                                                                 |   |   | 624,000    |   |   |   | (2,176,000 | )       |   |   | 42,000 |   |
|                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |       |    |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                                                                                                               |   |   |       |   |   |   |       |    |   |   |   |   |
| Net capital expenditures - real estate                                                                                                                                                                                                                                              |   |   | (744,000   | )      |   |   | (558,000   | )       |   |   | (257,000 | ) |
| Proceeds from sales and redemptions of marketable securities                                                                                                                                                                                                                        |   |   | -          |   |   |   | 2,000,000  |    |   |   | 7,257,000 |   |
| Proceeds from sales of real estate                                                                                                                                                                                                                                                  |   |   | -          |   |   |   | -          |    |   |   | 2,182,000 |   |
| (Increase) decrease in restricted cash                                                                                                                                                                                                                                              |   |   | 21,000     |   |   |   | (2,000     | )       |   |   | 62,000 |   |
| Net cash provided by (used in) investing activities                                                                                                                                                                                                                                 |   |   | (723,000   | )      |   |   | 1,440,000  |    |   |   | 9,244,000 |   |
|                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |       |    |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                                                                                                               |   |   |       |   |   |   |       |    |   |   |   |   |
| Proceeds from issuance of debt                                                                                                                                                                                                                                                      |   |   | -          |   |   |   | 4,582,000  |    |   |   | - |   |
| Principal payments of long-term debt                                                                                                                                                                                                                                                |   |   | (573,000   | )      |   |   | (4,411,000 | )       |   |   | (1,106,000 | ) |
| Repurchase of common stock                                                                                                                                                                                                                                                          |   |   | -          |   |   |   | (8,095,000 | )       |   |   | - |   |
| Financing costs                                                                                                                                                                                                                                                                     |   |   | -          |   |   |   | (100,000   | )  |   |   | - |   |
| Net cash used in financing activities                                                                                                                                                                                                                                               |   |   | (573,000   | )      |   |   | (8,024,000 | )       |   |   | (1,106,000 | ) |
|                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |       |    |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                                                                                                                                                |   |   | (672,000   | )      |   |   | (8,760,000 | )       |   |   | 8,180,000 |   |
| CASH AND CASH EQUIVALENTS, beginning of year                                                                                                                                                                                                                                        |   |   | 4,263,000  |   |   |   | 13,023,000 |    |   |   | 4,843,000 |   |
| CASH AND CASH EQUIVALENTS, end of year                                                                                                                                                                                                                                              |   | $      | 3,591,000  |   |   | $      | 4,263,000  |    |   | $ | 13,023,000 |   |
|                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |       |    |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES TO THE STATEMENTS OF CASH FLOWS:                                                                                                                                                                                                                           |   |   |       |   |   |   |       |    |   |   |   |   |
|                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |       |    |   |   |   |   |
| Cash paid during the period for -                                                                                                                                                                                                                                                   |   |   |       |   |   |   |       |    |   |   |   |   |
| Interest                                                                                                                                                                                                                                                                            |   | $      | 1,587,000  |   |   | $      | 1,644,000  |    |   | $ | 1,732,000 |   |
| Income taxes                                                                                                                                                                                                                                                                        |   | $      | (15,000    | )      |   | $      | (934,000   | )       |   | $ | (2,135,000 | ) |
|                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |       |    |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING ACTIVITIES:                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |       |    |   |   |   |   |
| During the year ended December 31, 2010, 263,065 shares of common stock, valued at $318,000, were issued in settlement of bonuses accrued during 2009 and 2008, as well as for stock awards that were granted to employees and consultants during the year ended December 31, 2010. |
|                                                                                                                                                                                                                                                                                |   |
| The accompanying notes are an integral part of these condensed consolidated financial statements.                                                                                                                                                                                   |   |

----

| 1. | Organization and significant accounting policies: |
|----|---------------------------------------------------|

----

| Year ended December 31, 2010                  |   |   |
|-----------------------------------------------|--------|--------|
|                                          |   |   | Level 1 |   |   |   | Level 2 |   |   |   | Level 3 |   |   |   | Total |   |
| Cash and cash equivalents and restricted cash |   | $      | 3,767,000 |   |   | $ | - |   |   | $ | - |   |   | $ | 3,767,000 |   |
|                                          |   | $      | 3,767,000 |   |   | $ | - |   |   | $ | - |   |   | $ | 3,767,000 |   |

| Year ended December 31, 2009                  |   |   |
|-----------------------------------------------|--------|--------|
|                                          |   |   | Level 1 |   |   |   | Level 2 |   |   |   | Level 3 |   |   |   | Total |   |
| Cash and cash equivalents and restricted cash |   | $      | 4,460,000 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,460,000 |   |
|                                          |   | $      | 4,460,000 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,460,000 |   |

----

|                                 |   | December 31, |        |
|--------------------------------------|--------|--------------|-------------|
|                                 |   | 2010         |        |   | 2009 |   |
|                                 |   |         |        |   |   |   |
| Real estate and other properties:    |   |         |        |   |   |   |
| Land                                 |   | $            | 3,378,000   |   |   | $ | 3,378,000 |   |
| Building                             |   |         | 27,968,000  |   |   |   | 27,326,000 |   |
| Furniture, fixtures and equipment    |   |         | 8,807,000   |   |   |   | 8,728,000 |   |
|                                 |   |         |        |   |   |   |   |   |
| Accumulated depreciation             |   |         | (19,566,000 | ) |   |   | (18,441,000 | ) |
|                                 |   |         |        |   |   |   |   |   |
| Net real estate and other properties |   |         | 20,587,000  |   |   |   | 20,991,000 |   |
|                                 |   |         |        |   |   |   |   |   |
| Real estate held for sale:           |   |         |        |   |   |   |   |   |
| Land                                 |   |         | 1,043,000   |   |   |   | 1,043,000 |   |
| Building                             |   |         | 3,426,000   |   |   |   | 3,405,000 |   |
| Furniture, fixtures and equipment    |   |         | 194,000     |   |   |   | 192,000 |   |
|                                 |   |         |        |   |   |   |   |   |
| Accumulated depreciation             |   |         | (371,000    | ) |   |   | (371,000 | ) |
|                                 |   |         |        |   |   |   |   |   |
| Net real estate held for sale        |   |         | 4,292,000   |   |   |   | 4,269,000 |   |
|                                 |   |         |        |   |   |   |   |   |
| Net real estate and other properties |   | $            | 24,879,000  |   |   | $ | 25,260,000 |   |

----

|                                                                     |   | 2010   |       | 2009   |   | 2008       |   |
|--------------------------------------------------------------------------|--------|--------|------------|--------|--------|------------|--------|
| Numerator-                                                               |   |   |       |   |   |       |   |
| Net loss – Basic and Diluted                                  |   | $      | (1,469,000 | )      | $      | (2,759,000 | )      | $ | (1,361,000 | ) |
|                                                                     |   |   |       |   |   |       |   |   |   |   |
| Denominator-                                                             |   |   |       |   |   |       |   |   |   |   |
| Weighted average commonshares outstanding – Basic and Diluted |   |   | 4,091,369  |   |   | 6,799,216  |   |   | 7,924,299 |   |
|                                                                     |   |   |       |   |   |       |   |   |   |   |
| Basic and Diluted loss per share:                                        |   | $      | (0.36      | )      | $      | (0.41      | )      | $ | (0.17 | ) |
|                                                                     |   |   |       |   |   |       |   |   |   |   |

|   | · | Expected volatility - the Company estimates the volatility of common stock at the date of grant using historical volatility.                                                                          |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                  |
|   | · | Expected term - the Company estimates the expected term of options granted based on a combination of vesting schedules, term of the option and historical experience.                            |
|   |   |                                                                                                                                                                                                  |
|   | · | Risk-free interest rate - the Company estimates the risk-free interest rate using the U.S. Treasury yield curve for periods equal to the expected term of the options in effect at the time of grant. |
|   |   |                                                                                                                                                                                                  |

----

|                    |   |   |   |   |   |           |   |
|-------------------------|--------|--------|--------|--------|--------|----------------|--------|
|                    |   |   |   |   |   |           |   |
| Risk free interest rate |   |   |   |   |   | 2.41% - 2.84   | %      |   |   |   |
| Volatility              |   |   |   |   |   | 67.15% - 68.03 | %      |   |   |   |
| Dividend yield          |   |   |   |   |   | -              |   |   |   |   |
| Expected option life    |   |   |   |   |   | 10 years       |   |   |   |   |

| Year ending December 31, 2011 |   | $      | 23,000 |   |
|-------------------------------|--------|--------|--------|--------|
| Year ending December 31, 2012 |   |   | 11,000 |   |
|                          |   | $      | 34,000 |   |

|                       |   | UnrealizedGains (Losses)on Available-for-SaleSecurities |    |
|----------------------------|--------|-------------------------------------------------------------------|---------|
| BALANCE, December 31, 2007 |   |  $                                                           | (76,000 | )  |
| Change for the year 2008   |   |  $                                                           | 76,000  |   |
| BALANCE, December 31, 2008 |   |  $                                                           | -       |   |

| 2. | Discontinued operations: |
|----|--------------------------|

----

|  3. |  Long-term debt: |
|----------|-----------------------|

|                       |   |   |   |   | 2010   |   |   | 2009   |   |
|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                       |   |   |   |   |   |   |   |   |   |
| Mortgage notes payable (a) |   |   |   |   |   |   |   |   |   | $ | 3,313,000 |   |   |   |   |   |   | $ | 3,430,000 |   |
| Mortgage notes payable (b) |   |   |   |   |   |   |   |   |   |   | 19,640,000 |   |   |   |   |   |   |   | 20,037,000 |   |
| Mortgage notes payable (c) |   |   |   |   |   |   |   |   |   |   | 4,490,000 |   |   |   |   |   |   |   | 4,549,000 |   |
|                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Totals                     |   |   |   |   |   |   |   |   |   |   | 27,443,000 |   |   |   |   |   |   |   | 28,016,000 |   |
| Less current portion       |   |   |   |   |   |   |   |   |   |   | 606,000 |   |   |   |   |   |   |   | 572,000 |   |
|                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term debt             |   |   |   |   |   |   |   |   |   | $ | 26,837,000 |   |   |   |   |   |   | $ | 27,444,000 |   |

|   | (a)    | Mortgage note payable to Capital One NA payable in monthly installments, bearing interest at a weighted average effective rate of 5.125%. This mortgage note is secured by a first mortgage interest in a commercial real estate property in Arizona. The note is being amortized over a 25-year period and matures in February 2013, with a balloon principal payment due at maturity. At December 31, 2010, the property securing this note had an approximate net book value of $2,195,000.                                                                       |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | (b)    | Mortgage notes payable to four real estate mortgage conduits arranged by Wells Fargo Bank (formerly Wachovia Bank) that are payable in monthly installments of principal and interest, bearing interest at a weighted average effective rate of 5.75%, a 30-year amortization and a ten year term, maturing in March 2013, with a balloon principal payment due at maturity. The residential properties securing the mortgage conduit loans are located in Arizona, New Jersey and Texas and at December 31, 2010, had an approximate net book value of $12,081,000. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | (c)    | Mortgage note payable to Orix Real Estate Capital Markets was refinanced under Gemsa Loan Services, LP effective June 2009, and is payable in monthly installments of principal and interest, bearing interest at 5.55%.  The note is being amortized over a 30-year period and matures in June 2019, with a balloon principal payment due at maturity. The note is secured by residential property located in Texas that at December 31, 2010 had an approximate net book value of $4,898,000.                                                            |

| Year       |   | Amount |       |
|------------|--------|--------|------------|
|       |   |   |       |   |
| 2011       |   | $      | 606,000    |   |
| 2012       |   |   | 637,000    |   |
| 2013       |   |   | 21,910,000 |   |
| 2014       |   |   | 74,000     |   |
| 2015       |   |   | 79,000     |   |
| Thereafter |   |   | 4,137,000  |   |
|       |   |   |       |   |
|       |   | $      | 27,443,000 |   |

----

| 4. | Commitments and contingencies: |
|----|--------------------------------|

| Year       |   | Amount  |            |
|------------|--------|---------|-----------------|
| 2011       |   |  $ |  1,022,000 |   |
| 2012       |   |    | 733,000         |   |
| 2013       |   |    | 509,000         |   |
| 2014       |   |    | 396,000         |   |
| 2015       |   |    | 290,000         |   |
| 2016       |   |    | 117,000         |   |
| Thereafter |   |    | 117,000         |   |
|       |   | $       | 3,184,000       |   |

| Year       |   | Amount  |         |
|------------|--------|---------|--------------|
| 2011       |   |  $ |  66,000 |   |
| 2012       |   |    | 68,000       |   |
| 2013       |   |    | 69,000       |   |
| 2014       |   |    | 71,000       |   |
| 2015       |   |    | 67,000       |   |
| Thereafter |   |    | -            |   |
|       |   | $       | 341,000      |   |

----

----

| 5. | Stock option plans: |
|----|---------------------|

----

|                                     |   | Shares |    | WeightedAverageExercise Price |   | Weighted Average RemainingContractual Term     |   | AggregateIntrinsic Value |   |
|------------------------------------------|--------|--------|---------|------------------------------------|--------|--------------------------------------------------------------------|--------|-------------------------------|--------|
| Options Outstanding at January 1, 2010   |   |   | 142,000 |                               | $      | 6.10                                                               |   |                          | 5.10   |   | $ | - |   |
| Options granted                          |   |   | -       |                               |   | -                                                                  |   |                          | -      |   |   | - |   |
| Options terminated and expired           |   |   | (20,000 | )                             |   | 1.65                                                               |   |                          | 8.10   |   |   | - |   |
| Options outstanding at December 31, 2010 |   |   | 122,500 |                               | $      | 5.58                                                               |   |                          | 5.20   |   | $ |   - |   |
|                                     |   |   |    |                               |   |                                                               |   |                          |   |   |   |   |   |
| Options exercisable at December 31, 2010 |   |   | 107,500 |                               | $      | 6.01                                                               |   |                          | 4.50   |   | $ | - |   |

|                                     |   | Shares |    | WeightedAverageExercise Price |   | Weighted Average RemainingContractual Term     |   | AggregateIntrinsic Value |   |
|------------------------------------------|--------|--------|---------|------------------------------------|--------|--------------------------------------------------------------------|--------|-------------------------------|--------|
| Options Outstanding at January 1, 2009   |   |   | 130,000 |                               | $      | 6.27                                                               |   |                          | 6.50   |   | $ | - |   |
| Options granted                          |   |   | 35,000  |                               |   | 1.44                                                               |   |                          | 9.28   |   |   | - |   |
| Options exercised                        |   |   | -       |                               |   | -                                                                  |   |                          | -      |   |   | - |   |
| Options terminated and expired           |   |   | (22,500 | )                             |   | 6.26                                                               |   |                          | -      |   |   | - |   |
| Options outstanding at December 31, 2009 |   |   | 142,500 |                               | $      | 5.03                                                               |   |                          | 6.30   |   | $ |   |   |
|                                     |   |   |    |                               |   |                                                               |   |                          |   |   |   |   |   |
| Options exercisable at December 31, 2009 |   |   | 92,500  |                               | $      | 6.10                                                               |   |                          | 5.10   |   | $ | - |   |
|                                     |   | Shares |    | WeightedAverageExercise Price |   | Weighted Average RemainingContractual Term     |   | AggregateIntrinsic Value |   |
| Options outstanding at January 1, 2008   |   |   | 135,000 |                               | $      | 6.26                                                               |   |                          | 7.20   |   | $ | - |   |
| Options granted                          |   |   | -       |                               |   | -                                                                  |   |                          | -      |   |   | - |   |
| Options exercised                        |   |   |    |                               |   | -                                                                  |   |                          | -      |   |   | - |   |
| Options terminated and expired           |   |   | (5,000) |                               |   | 6.00                                                               |   |                          | -      |   |   | - |   |
| Options outstanding at December 31, 2008 |   |   | 130,000 |                               | $      | 6.27                                                               |   |                          | 6.50   |   | $ | - |   |
|                                     |   |   |    |                               |   |                                                               |   |                          |   |   |   |   |   |
| Options exercisable at December 31, 2008 |   |   | 91,500  |                               | $      | 5.95                                                               |   |                          | 5.90   |   | $ | - |   |

|                                      |          | 2010   |   |       | 2009     |   |          | 2008   |   |
|-------------------------------------------|---------------|--------|--------|------------|----------|--------|---------------|--------|--------|
|                                      |          |   |   |       | Weighted |   |          |   |   |   | Weighted |   |   |   |   |   | Weighted |   |
| Nonvested Shares                          |          |   |   |       | Average  |   |          |   |   |   | Average |   |   |   |   |   | Average |   |
|                                      |          |   |   | Grant Date |     |   |          |   |   | Grant Date |   |   |   |   |   | Grant Date |   |
|                                      | Shares   |   |   | Fair Value |     |   | Shares   |   |   | Fair Value |   |   | Shares   |   |   | Fair Value |   |
| Nonvested shares at the beginning of year |          |   | 4,089  |       |     | $      | 3.05          |   |   |   | 7,633 |   |   | $ | 3.90 |   |   |   | 34,467 |   |   | $ | 7.65 |   |
| Shares granted                            |          |   | -      |       |     |   |          |   |   |   | 125,000 |   |   |   | .99 |   |   |   | 6,133 |   |   |   | 3.05 |   |
| Shares vested                             |          |   | 2,045  |       |     |   | 3.05          |   |   |   | (2,711 | ) |   |   | 3.50 |   |   |   | (26,834 | ) |   |   | 5.24 |   |
| Shares forfeited                          |          |   | -      |       |     |   |          |   |   |   | (125,833 | ) |   |   | 1.05 |   |   |   | (6,133 | ) |   |   | 6.30 |   |
| Nonvested shares at end of year           |          |   | 2,044  |       |     | $      | 3.05          |   |   |   | 4,089 |   |   | $ | 3.05 |   |   |   | 7,633 |   |   | $ | 3.90 |   |

----

| 6. | Income taxes |
|----|--------------|

|                     |   | 2010   |     | 2009   |   | 2008       |    |
|--------------------------|--------|--------|----------|--------|--------|------------|---------|
| Continuing Operations:   |   |   |     |   |   |       |    |
| Federal:                 |   |   |     |   |   |       |    |
| Current                  |   | $      |   - |   | $      | (981,000   | )       | $ | (1,310,000 | ) |
| Deferred                 |   |   | (445,000 | )      |   | (140,000   | )  |   | 100,000 |   |
|                     |   |   | (445,000 | )      |   | (1,121,000 | )       |   | (1,210,000 | ) |
| State:                   |   |   |     |   |   |       |    |   |   |   |
| Current                  |   |   |     |   |   | -          |    |   | (10,000) |   |
| Deferred                 |   |   | (35,000  | )      |   | 11,000     |    |   | (123,000 | ) |
|                     |   |   | (35,000  | )      |   | 11,000     |    |   | (133,000 | ) |
|                     |   |   |     |   |   |       |    |   |   |   |
| Total Continuing         |   | $      | (480,000 | )      | $      | (1,110,000 | )       | $ | (1,343,000 | ) |
|                     |   |   |     |   |   |       |    |   |   |   |
| Discontinued Operations: |   |
| Real Estate:             |   |   |     |   |   |       |    |   |   |   |
| Federal                  |   |   |     |   |   |       |    |   |   |   |
| Current                  |   | $      | (157,000 | )      | $      | (285,000   | )  | $ | 200,000 |   |
| Deferred                 |   |   | -        |   |   | -          |    |   | - |   |
|                     |   |   | (157,000 | )      |   | (285,000   | )  |   | 200,000 |   |
| State:                   |   |   |     |   |   |       |    |   |   |   |
| Current                  |   |   | -        |   |   | -          |    |   | 44,000 |   |
| Deferred                 |   |   | -        |   |   | -          |    |   | - |   |
|                     |   |   | -        |   |   | -          |    |   | 44,000 |   |
|                     |   |   |     |   |   |       |    |   |   |   |
| Total Real Estate        |   | $      | (157,000 | )      | $      | (285,000   | )  | $ | 244,000 |   |
|                     |   |   |     |   |   |       |    |   |   |   |
| Oil and Gas:             |   |   |     |   |   |       |    |   |   |   |
| Federal:                 |   |   |     |   |   |       |    |   |   |   |
| Current                  |   | $      | -        |   | $      | -          |    | $ | - |   |
| Deferred                 |   |   | -        |   |   | -          |    |   | - |   |
|                     |   |   | -        |   |   | -          |    |   | - |   |
| State:                   |   |   |     |   |   |       |    |   |   |   |
| Current                  |   |   | -        |   |   | -          |    |   | - |   |
| Deferred                 |   |   | -        |   |   | -          |    |   | - |   |
|                     |   |   | -        |   |   | -          |    |   | - |   |
| Foreign:                 |   |   |     |   |   |       |    |   |   |   |
| Current                  |   |   | -        |   |   | -          |    |   | (85,000) |   |
| Deferred                 |   |   | -        |   |   | -          |    |   | - |   |
|                     |   |   | -        |   |   | -          |    |   | (85,000) |   |
|                     |   |   |     |   |   |       |    |   |   |   |
| Total Oil and Gas        |   | $      | -        |   | $      | -          |    | $ | (85,000) |   |
|                     |   |   |     |   |   |       |    |   |   |   |
| Totals                   |   | $      | (666,000 | )      | $      | (1,395,000 | )       | $ | (1,184,000 | ) |

----

|                                                                                                  |   | 2010   |      | 2009   |   | 2008          |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                                                                                                  |   | Amount |      | %      |   | Amount        |   | % |   | Amount |   | % |   |
| Federal income tax benefit at statutory rate                                                |   | $      | (604,000  | )      | 35.0   | %             | $      | (1,268,000 | ) | 35.0 | % | $ | (1,135,000 | ) | 35.0 | % |
| Change in Federal valuation allowances                                                                |   |   | 414,000   |   | (24.0) | %             |   |   |   |   |   |   |   |   |   |   |
| State tax expense (benefit) including Federal benefit                                       |   |   | (42,000)  |   | 2.4    |  %       |   | 55,000 |   | (1.5) |   |   | (130,000 | ) | 4.0 |   |
| Dividend exclusion                                                                          |   |   |      |   |   |          |   | - |   | 0.0 |   |   | (22,000 | ) | 0.7 |   |
| Tax-exempt interest                                                                         |   |   | -         |   |   |          |   | (1,000 | ) | 0.0 |   |   | (67,000 | ) | 2.1 |   |
| Other    Equity based compensation                                                          |   |   | 14,000    |   | (0.8)  | %        |   | 104,000 |   | (2.9) |   |   | 11,000 |   |     (0.3) |   |
|              Prior year end true ups |   |   | (262,000) |   | 15.2   | %             |   |   |   |   |   |   |   |   |   |   |
| Total tax benefit / Effective tax rate (benefit)                                            |   | $      | (480,000  | )      | 27.8   | %   | $      | (1,110,000 | ) | 30.6 | %   | $ | (1,343,000 | ) | 41.5% |    |

|                                                                                                  |   | 2010   |      |   | 2009   |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Deferred tax assets:                                                                             |   |   |      |   |   |   |
| Federal net operations loss carry forward                                                             |   | $      | 828,000   |   |   | $      | - |   |
| State net loss carry forward                                                                          |   |   | 556,000   |   |   |   | 443,000 |   |
| Accrued liabilities                                                                                   |   |   | 1,000     |   |   |   | 80,000 |   |
| Deferred income                                                                                       |   |   | 91,000    |   |   |   | 73,000 |   |
| Capital loss carryover                                                                                |   |   | 59,000    |   |   |   | 59,000 |   |
|                                                                                                  |   |   | 1,535,000 |   |   |   | 655,000 |   |
| Less valuation allowance                                                                              |   |   | 691,000   |   |   |   | 222,000 |   |
|                                                                                                  |   |   | 844,000   |   |   |   | 433,000 |   |
|                                                                                                  |   |   |      |   |   |   |   |   |
| Deferred tax liabilities                                                                              |   |   |      |   |   |   |   |   |
| Tax over book depreciation, depletion and amortization -Oil and gas and real estate properties - U.S. |   |   | 927,000   |   |   |   | 875,000 |   |
| Restricted stock                                                                                      |   |   | 23,000    |   |   |   | 22,000 |   |
| Unrealized loss on marketable securities                                                              |   |   |      |   |   |   | - |   |
|                                                                                                  |   |   | 950,000   |   |   |   | 897,000 |   |
|                                                                                                  |   |   |      |   |   |   |   |   |
| Net deferred tax liabilities                                                                          |   | $      | 106,000   |   |   | $      | 464,000 |   |

----

| 7. | Segment information: |
|----|----------------------|

|                                                                   |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Real estate revenue:                                                   |   |   |       |   |   |   |       |   |   |
| Residential                                                            |   | $      | 7,596,000  |   |   | $      | 7,663,000  |   |   | $ | 7,770,000 |   |
| Commercial                                                             |   |   | 1,053,000  |   |   |   | 1,257,000  |   |   |   | 1,433,000 |   |
| Totals                                                                 |   | $      | 8,649,000  |   |   | $      | 8,920,000  |   |   | $ | 9,203,000 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Real estate operating expenses:                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Residential                                                            |   | $      | 4,977,000  |   |   | $      | 5,143,000  |   |   | $ | 5,192,000 |   |
| Commercial                                                             |   |   | 702,000    |   |   |   | 714,000    |   |   |   | 700,000 |   |
| Totals                                                                 |   | $      | 5,679,000  |   |   | $      | 5,857,000  |   |   | $ | 5,892,000 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net operating income (“NOI”):                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Residential                                                            |   | $      | 2,619,000  |   |   | $      | 2,520,000  |   |   | $ | 2,578,000 |   |
| Commercial                                                             |   |   | 351,000    |   |   |   | 543,000    |   |   |   | 733,000 |   |
| Totals                                                                 |   | $      | 2,970,000  |   |   | $      | 3,063,000  |   |   | $ | 3,311,000 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Capital improvements:                                                  |   |   |       |   |   |   |       |   |   |   |   |   |
| Residential                                                            |   | $      | 402,000    |   |   | $      | 484,000    |   |   | $ | 180,000 |   |
| Commercial                                                             |   |   | 271,000    |   |   |   | 69,000     |   |   |   | 77,000 |   |
| Totals                                                                 |   | $      | 673,000    |   |   | $      | 553,000    |   |   | $ | 257,000 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Reconciliation of NOI to consolidated loss from continuing operations: |   |   |       |   |   |   |       |   |   |   |   |   |
| Segment NOI                                                            |   | $      | 2,970,000  |   |   | $      | 3,063,000  |   |   | $ | 3,311,000 |   |
| Total other income, including net investment income                    |   |   | 15,000     |   |   |   | 36,000     |   |   |   | 227,000 |   |
| Depreciation                                                           |   |   | (1,125,000 | )      |   |   | (1,148,000 | )      |   |   | (1,188,000 | ) |
| General and administrative expense                                     |   |   | (1,998,000 | )      |   |   | (3,865,000 | )      |   |   | (3,816,000 | ) |
| Interest expense                                                       |   |   | (1,587,000 | )      |   |   | (1,708,000 | )      |   |   | (1,776,000 | ) |
| Income tax benefit                                                     |   |   | 480,000    |   |   |   | 1,110,000  |   |   |   | 1,343,000 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss from continuing operations                                        |   | $      | (1,245,000 | )      |   | $      | (2,512,000 | )      |   | $ | (1,899,000 | ) |

----

|  8.     |  Preferred Stock |
|----------------------------------|-----------------------|

| 9. | Fair value of financial instruments |
|----|-------------------------------------|

| 10. | Other matters |
|-----|---------------|

----

| 11. | Quarterly data (Unaudited) |
|-----|----------------------------|

|                                                           |   | Quarter Ended |      |
|----------------------------------------------------------------|--------|---------------|-----------|
|                                                           |   | March 31      |      | June 30 |   | September 30 |   | December 31 |   |
| 2010:                                                          |   |          |      |   |   |   |   |   |   |
|                                                           |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                       |   | $             | 2,191,000 |   | $ | 2,169,000 |   | $ | 2,164,000 |   | $ | 2,125,000 |   |
|                                                           |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses:                                            |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                             |   |          | 1,367,000 |   |   | 1,362,000 |   |   | 1,452,000 |   |   | 1,498,000 |   |
| Depreciation and amortization expense                          |   |          | 302,000   |   |   | 272,000 |   |   | 279,000 |   |   | 272,000 |   |
| General and administrative                                     |   |          | 519,000   |   |   | 521,000 |   |   | 447,000 |   |   | 511,000 |   |
| Total costs and expenses                                       |   |          | 2,188,000 |   |   | 2,155,000 |   |   | 2,178,000 |   |   | 2,281,000 |   |
|                                                           |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) from operations                                  |   |          | 3,000     |   |   | 14,000 |   |   | (14,000 | ) |   | (156,000 | ) |
|                                                           |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Dividend and interest income                                   |   |          | 3,000     |   |   | 2,000 |   |   | 1,000 |   |   | 2,000 |   |
| Other income                                                   |   |          | 5,000     |   |   | - |   |   | - |   |   | 2,000 |   |
| Interest expense                                               |   |          | (410,000  | ) |   | (412,000 | ) |   | (415,000 | ) |   | (350,000 | ) |
| Loss before benefit from income taxes                          |   |          | (399,000  | ) |   | (396,000 | ) |   | (428,000 | ) |   | (502,000 | ) |
| .                                                              |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit                                             |   |          | (136,000  | ) |   | (142,000 | ) |   | (159,000 | ) |   | (43,000 | ) |
|                                                           |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                                |   |          | (263,000  | ) |   | (254,000 | ) |   | (269,000 | ) |   | (459,000 | ) |
|                                                           |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Discontinued operations - real estate, net of taxes            |   |          | (45,000   | ) |   | (52,000 | ) |   | (32,000 | ) |   | (111,000 | )  |
| Discontinued operations - oil and  gas, net of taxes |   |          | (10,000   | )  |   | 21,000 |   |   | (8,000 | ) |   | 13,000 |   |
|                                                           |   |          |      |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                       |   | $             | (318,000  | ) | $ | (285,000 | ) | $ | (309,000 | ) | $ | (557,000 | ) |
|                                                           |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Basic loss per share:                                          |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                          |   | $             | (0.07     | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.11 | ) |
| Discontinued operations                                        |   |          | (0.01     | )  |   | (0.01 | )  |   | (0.01 | ) |   | ( 0.02 | ) |
| Net loss                                                       |   | $             | (0.08     | ) | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.13 | ) |
|                                                           |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Diluted loss per share:                                        |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                          |   | $             | (0.07     | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.11 | ) |
| Discontinued operations                                        |   |          | (0.01     | )  |   | (0.01 | ) |   | (0.01 | ) |   | ( 0.02 | ) |
| Net loss                                                       |   | $             | (0.08     | ) | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.13 | ) |

----

|                                                                                                  |    | Quarter Ended                      |       |
|-------------------------------------------------------------------------------------------------------|---------|------------------------------------|------------|
|                                                                                                  |    | March 31                           |       | June 30 |   | September 30 |   | December 31 |   |
| 2009:                                                                                                 |    |           |       |           |   |           |   |           |   |
| Revenues                                                                                              |  $ | 2,279,000                          |       | $        2,261,000 |   | $        2,234,000 |   | $        2,146,000 |   |
|                                                                                                  |    |                               |       |   |   |   |   |   |   |
| Costs and expenses:                                                                                   |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                                                    |    |                               | 1,334,000  |   |   | 1,449,000 |   |   | 1,520,000 |   |   | 1,554,000 |   |
| Depreciation and amortization expense                                                                 |    |                               | 321,000    |   |   | 265,000 |   |   | 272,000 |   |   | 290,000 |   |
| General and administrative                                                                            |    |                               | 1,297,000  |   |   | 868,000 |   |   | 826,000 |   |   | 874,000 |   |
| Total costs and expenses                                                                              |    |                               | 2,952,000  |   |   | 2,582,000 |   |   | 2,618,000 |   |   | 2,718,000 |   |
|                                                                                                  |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                                                  |    |                               | (673,000   | )  |   | (321,000 | ) |   | (384,000 | ) |   | (572,000 | ) |
|                                                                                                  |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Dividend and interest income                                                                          |    |                               | 16,000     |   |   | 9,000 |   |   | 5,000 |   |   | 3,000 |   |
| Gain (loss) on sale of marketable securities                                                          |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Other income (loss)                                                                                   |    |                               | 2,000      |   |   | - |   |   | - |   |   | 1,000 |   |
| Interest expense                                                                                      |    |                               | (429,000   | ) |   | (437,000 | ) |   | (422,000 | ) |   | (420,000 | ) |
|                                                                                                  |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Loss before benefit from income taxes                                                                 |    |                               | (1,084,000 | ) |   | (749,000 | ) |   | (801,000 | ) |   | (988,000 | ) |
| Income tax benefit                                                                                    |    |                               | (415,000   | ) |   | (264,000 | ) |   | (281,000 | ) |   | (150,000 | ) |
|                                                                                                  |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                                                                       |    |                               | (669,000   | )  |   | (485,000 | ) |   | (520,000 | ) |   | (838,000 | ) |
|                                                                                                  |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Discontinued operations – real estate gain from sales                                           |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Discontinued operations - real estate, net of taxes                                                   |    |                               | (148,000   | )  |   | (105,000 | )  |   | (56,000 | )  |   | (156,000) |   |
| Discontinued operations - oil and gas, net of taxes                                                   |    |                               | 86,000     |   |   | (73,000 | ) |   | 104,000 |   |   | 101,000 |   |
|                                                                                                  |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                              |    | $                                  | (731,000   | )  | $ | (663,000 | ) | $ | (472,000 | )  | $ | (893,000 | ) |
|                                                                                                  |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share:                                                                      |    |                               |       |   |   |   |   |   |   |   |   |   |   |
|             Continuing operations         |    | $                                  | (0.08      | )  | $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.21 | ) |
|             Discontinued operations       |    |                               | (0.01      |  ) |   | (0.02 | ) |   | 0.00 |   |   | (0.01 | )  |
| Net loss                                                                                              |    | $                                  | (0.09      | )  | $ | (0.08 | ) | $ | (0.07 | )  | $ | (0.22 | ) |
|                                                                                                  |    |                               |       |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share:                                                                    |    |                               |       |   |   |   |   |   |   |   |   |   |   |
|              Continuing operations   |    | $                                  | (0.08      | ) | $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.21 | ) |
|              Discontinued operations |    |                               | (0.01      |  ) |   | (0.02 | ) |   | 0.00 |   |   | (0.01 | )  |
| Net loss                                                                                              |    | $                                  | (0.09      | )  | $ | (0.08 | ) | $ | (0.07 | )  | $ | (0.22 | ) |

| 12. | Subsequent Events |
|-----|-------------------|

----

|  Column A                              |   |   Column B |   |   |   Column C Initial Cost |   |   | Column D CostsCapitalizedSubsequent ToAcquisition |   |   | Column E Gross Amount AtWhich Carried as of December31, 2010 |   |   |   Column F            |   |   |   Column H |   |  Column I |
|---------------------------------------------|--------|----------------------|--------|--------|---------------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------|--------|--------|----------------------|--------|---------------------|
| Description                                 |   | Encumbrances         |   |   | Land                                        |   |   | Building &Improvements                                  |   |   | Land                                                                                                      |   |   | Building &Improvements |   |   | Land                 |   |                | Building &Improvements |   |   | Total |   |   | AccumulatedDepreciation |   |   | DateAcquired |   | Life on WhichDepreciation isComputed |
|                                        |   |                 |   |   |                                        |   |   |                                                             |   |   |                                                                                                      |   |   |                            |   |   |                 |   |                |   |   |   |   |   |   |   |   |   |   |   |   |
| Arizona                                     |   |                 |   |   |                                        |   |   |                                                             |   |   |                                                                                                      |   |   |                            |   |   |                 |   |                |   |   |   |   |   |   |   |   |   |   |   |   |
| 340 unit garden apartment complex |   | $                    | 9,466  |   |                                        | $      | 800    |                                                             |   | $      | 5,600                                                                                                     |   |   | $                               | -0-    |   |                 | $      | 3,795               |   |   | $ | 800 |   |   | $ | 9,395 |   |   | $ | 10,195 |   |   | $ | 5,604 |   |   |   | 1992 |   | Various |
| 51,000 square foot office building          |   | $                    | 3,314  |   |                                        | $      | 313    |                                                             |   | $      | 2,384                                                                                                     |   |   | $                               | -0-    |   |                 | $      | 2,366               |   |   | $ | 313 |   |   | $ | 4,750 |   |   | $ | 5,063 |   |   | $ | 2,868 |   |   |   | 1992 |   | Various |
|                                        |   |                 |   |   |                                        |   |   |                                                             |   |   |                                                                                                      |   |   |                            |   |   |                 |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas                                       |   |                 |   |   |                                        |   |   |                                                             |   |   |                                                                                                      |   |   |                            |   |   |                 |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 228 unit apartment complex                  |   | $                    | 3,892  |   |                                        | $      | 620    |                                                             |   | $      | 3,015                                                                                                     |   |   | $                               | -0-    |   |                 | $      | 3,295               |   |   | $ | 620 |   |   | $ | 6,310 |   |   | $ | 6,930 |   |   | $ | 3,630 |   |   |   | 1992 |   | Various |
| 180 unit apartment complex                  |   | $                    | 4,490  |   |                                        | $      | 805    |                                                             |   | $      | 4,450                                                                                                     |   |   | $                               | -0-    |   |                 | $      | 1,364               |   |   | $ | 805 |   |   | $ | 5,814 |   |   | $ | 6,619 |   |   | $ | 1,720 |   |   |   | 2001 |   | Various |
|                                        |   |                 |   |   |                                        |   |   |                                                             |   |   |                                                                                                      |   |   |                            |   |   |                 |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| New Jersey                                  |   |                 |   |   |                                        |   |   |                                                             |   |   |                                                                                                      |   |   |                            |   |   |                 |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 132 unit apartment complex                  |   | $                    | 4,423  |   |                                        | $      | 480    |                                                             |   | $      | 3,541                                                                                                     |   |   | $                               | -0-    |   |                 | $      | 999                 |   |   | $ | 480 |   |   | $ | 4,540 |   |   | $ | 5,020 |   |   | $ | 2,158 |   |   |   | 1997 |   | Various |
|                                        |   |                 |   |   |                                        |   |   |                                                             |   |   |                                                                                                      |   |   |                            |   |   |                 |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other residential                           |   | $                    | 1,858  |   |                                        | $      | 312    |                                                             |   | $      | 2,397                                                                                                     |   |   | $                               | -0-    |   |                 | $      | 1,120               |   |   | $ | 312 |   |   | $ | 3,517 |   |   | $ | 3,829 |   |   | $ | 1,875 |   |   | Various |   | Various |
|                                        |   |                 |   |   |                                        |   |   |                                                             |   |   |                                                                                                      |   |   |                            |   |   |                 |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other office/retail                         |   | $                    | -0-    |   |                                        | $      | 435    |                                                             |   | $      | 1,948                                                                                                     |   |   | $                               | -0-    |   |                 | $      | 3,862               |   |   | $ | 435 |   |   | $ | 5,810 |   |   | $ | 6,245 |   |   | $ | 1,945 |   |   | Various |   | Various |
|                                        |   |                 |   |   |                                        |   |   |                                                             |   |   |                                                                                                      |   |   |                            |   |   |                 |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Land held for development                   |   | $                    | -0-    |   |                                        | $      | 655    |                                                             |   | $      | -0-                                                                                                       |   |   | $                               | -0-    |   |                 | $      | -0-                 |   |   | $ | 655 |   |   | $ | -0- |   |   | $ | 655 |   |   | $ | -0- |   |   | Various |   | Various |
|                                        |   |                 |   |   |                                        |   |   |                                                             |   |   |                                                                                                      |   |   |                            |   |   |                 |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | $                    | 27,443 |   |                                        | $      | 4,420  |                                                             |   | $      | 23,335                                                                                                    |   |   | $                               | -0-    |   |                 | $      | 16,801              |   |   | $ | 4,420 |   |   | $ | 40,136 |   |   | $ | 44,556 |   |   | $ | 19,800 |   |   |   |   |   |   |

|                         |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Balance at beginning of year |   | $      | 44,072 |   |   | $      | 43,514 |   |   | $ | 44,579 |   |
| Property acquisitions        |   |   | -      |   |   |   | -      |   |   |   | - |   |
| Improvements                 |   |   | 744    |   |   |   | 558    |   |   |   | 257 |   |
| Retirements/disposals        |   |   | -      |   |   |   | -      |   |   |   | (1,322 | ) |
| Balance at end of year       |   | $      | 44,816 |   |   | $      | 44,072 |   |   | $ | 43,514 |   |

|                    |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                         |   |   |   |   |   |   |   |   |   |
| Balance at beginning of year |   | $      | 18,812 |   |   | $      | 17,664 |   |   | $ | 16,960 |   |
| Depreciation for year        |   |   | 1,125  |   |   |   | 1,148  |   |   |   | 1,188 |   |
| Retirements/disposals        |   |   | 0      |   |   |   | 0      |   |   |   | (484 | ) |
| Balance at end of year       |   | $      | 19,937 |   |   | $      | 18,812 |   |   | $ | 17,664 |   |

----

| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
|---------|--------------------------------------------------------------------------------------|

| Item 9A. | Controls and Procedures |
|----------|-------------------------|

| Item 9B. | Other Information |
|----------|-------------------|

----

| Item 10.  | Directors, Executive Officers and Corporate Governance |
|---------------------|--------------------------------------------------------|

| Name                                                                                                                                                                                                                    |   | Class   |   | Principal Occupationand Age (a)                                                                                                                                            |   | Year Became Director ofthe Company |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                                                                                                                                                                    |   |    |   |                                                                                                                                                                       |   |                               |   |
| Miles Berger                                       |   |  I |   | Chairman of Berger Organization, Real Estate Management and Development Company, Newark, NJ Age 58                                                                    |   |                               | 2002   |   |
| Milton Donnenberg                                  |   | II      |   | Formerly President, Milton Donnenberg Assoc., Realty Management, Carlstadt, NJAge 87                                                                                  |   |                               | 1981   |   |
| S. Wilzig Izak                                     |   | II      |   | Chairman of the Board since September 1990; Chief Executive Officer since May 1991; Executive Vice President (1987-1990); prior thereto, Senior Vice PresidentAge 52  |   |                               | 1987   |   |
| W. Martin Willschick                                                                                                                                                                                                    |   | III     |   | Manager, Capital Markets, City of Toronto, CanadaAge 59                                                                                                                    |   |                               | 1997   |   |

| Director Profiles |
|-------------------|

----

|  Name and Age | Executive Officer of TheCompany Since | Position with the Companyand Business Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|------------------------------|-----------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| S. Wilzig Izak, Age 52       | 1987                                                      | Chairman of the Board of the Company since September 20, 1990; Chief Executive Officer since May 1991; Executive Vice President (1987-1990); prior thereto, Senior Vice President                                                                                                                                                                                                                                                                                                                                                               |
|                         |                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| David Morrow, Age 51         | November 2010                                             | Executive Vice President and Chief Operating Officer of the Company since November 30, 2011 and Principal Accounting Officer of the Company since March 2, 2011; President, Berkeley Management, Inc. May 2009 – October 2010; Director, Asset Management DRA Advisors, LLC August 2002 – April 2009; Director, Retail Operations, The Rouse Company March 1993 – August 2002.                                                                                                                                                |
| Francis J. Elenio, Age 44*   | September 2006                                            | Chief Financial Officer, Secretary and Treasurer of the Company since September 2006; Chief Financial Officer of Premier Wealth Management, Inc. since September 2007; Chief Financial Officer of Webcollage, Inc. (March 2006 - August 2006); Interim Chief Financial Officer of TWS Holdings, Inc. (November 2005 - March 2006); Chief Financial Officer and Director of Roomlinx, Inc. (April 2004 - November 2005); Chief Financial Officer, Secretary and Treasurer of GoAmerica, Inc. (January 1999 - August 2003) *Resigned 2/28/11 |

| Relationships Among Directors or Executive Officers |
|-----------------------------------------------------|

| Section 16(a) Beneficial Ownership Reporting Compliance |
|---------------------------------------------------------|

| The Audit Committee |
|---------------------|

----

| Code of Ethics |
|----------------|

|  Item 11.  |  Executive Compensation |
|---------------------------|------------------------------|

| Summary of Cash and Certain other Compensation |
|------------------------------------------------|

|  Name and Principal Position                                                                                                                                                                                                                                                                 |  Year     |  Salary ($)     |  Bonus ($)      |  All Other Compensation ($) |  Total ($)      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|----------------------|----------------------|----------------------------------|----------------------|
| S. Wilzig Izak                                     Chairman of the Board (Chief Executive Officer)  | 20102009  | 300,000266,671  | 0200,000   | 41,95729,818                | 341,957496,489  |
| David Morrow (1)                                     Chief Operating Officer                             | 2010      | 15,231               | 0                    |   923                  | 16,154               |
| Francis J. Elenio (2)                                     Chief Financial Officer                   | 20102009  | 50,00061,988    | 5,000 (3)0      | 2,4000                      | 57,40061,988    |

| (1) | On November 24, 2010, the Company entered into a letter agreement with Mr. Morrow under which, effective November 30, 2010, Mr. Morrow will serve as the Company’s Executive Vice President and Chief Operating Officer at an annual salary of $165,000. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Mr. Elenio joined the Company in September 2006 as its Chief Financial Officer.  On September 4, 2007, the Company entered into a letter agreement with Mr. Elenio, under which he continues to serve as the Company's Senior Vice President and Chief Financial Officer at a reduced annual salary of $50,000, and also provides services to an unaffiliated company.  His 2009 salary includes an additional $10,000 for additional work he performed in connection with the Company’s tender offer and the Company’s proxy solicitations.  On February 15, 2011, Frank Elenio submitted his resignation from his position as Chief Financial Officer of the “Company, effective as of February 28, 2011. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | On March 11, 2010, the Compensation Committee of the Board of Directors determined that Mr. Elenio should receive a one-time payment of $5,000 for work performed during 2010, payable in the Company’s common stock, which represented 4,132 shares at the time of the grant. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | except as set forth below, no stock awards or option awards were granted to the Named Officers in 2010 or 2009 and they did not receive any non-equity incentive plan compensation or non-qualified deferred compensation earnings for those years; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “all other compensation” for Ms. Izak for (1) 2010 consists of $12,000 for travel expenses, $23,077 for unused vacation pay and a $6,880 match on her 401(k) contribution and (2) 2009 consists of $12,477 for an automobile allowance and $17,341 for unused vacation pay; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | “all other compensation” for Mr. Morrow for 2010 consists of $923.06 for automobile expenses; and |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | “all other compensation” for Mr. Elenio consists of $2,400 match on his 401(k) contribution. |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | The Committee decided, based in part upon Ms. Izak’s extraordinary efforts during the proposed merger with NWJ Apartment Holdings Corp., that Ms. Izak’s bonus for 2008 would be $200,000.  (Although the Committee had discussed Ms. Izak’s bonus for 2008 in the past during several Board meetings, a formal vote was not previously taken.)  The Committee granted Ms. Izak a 2008 bonus as follows:  $100,000 in cash compensation and $100,000 in shares of the Company’s Common Stock, which equated to 82,644 shares of Common Stock, based upon the closing stock price of $1.21 on March 15, 2010, which is currently valued at $28,925 based upon the Company’s closing price on December 9, 2010.  This amount is included in the 2008 Bonus column as it was earned in 2008. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Committee decided, based upon its review of Ms. Izak’s continued extraordinary efforts during 2009 related to a shareholder proxy dispute, the completed tender offer during 2009 and the resignation of the Company’s President and Chief Operating Officer, to grant Ms. Izak a $200,000 bonus for 2009.  The bonus was paid entirely in stock, on account of the desire of the Compensation Committee to preserve cash for the Company, and equated to 165,289 shares of Common Stock based upon the closing stock price of $1.21 on March 15, 2010, which is currently valued at $57,851 based upon the Company’s closing price on December 9, 2010. This amount is included in the 2009 Bonus column as it was earned in 2009. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Committee decided that Ms. Izak’s salary for 2009 should have been increased to $265,000 per year, which is less than the recommendation of an independent compensation consultant that Ms. Izak’s salary for 2009 be $300,000.  Although the Committee had discussed increasing Ms. Izak's salary for 2009 during that year, they did not take formal action until 2010.  Accordingly, the Committee decided to grant Ms. Izak a $40,000 retroactive pay increase for 2009, which was paid in cash during 2010.  This amount has been included in the 2009 Salary column as it was earned in 2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Committee granted Mr. Elenio, the Company’s former Chief Financial Officer, a payment of $5,000, payable in the Company’s common stock (representing 4,132 shares of common stock), for work performed during 2010.  The $5,000 payment to Mr. Elenio has been included in the 2010 Bonus column as it was earned in 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Grants of Plan Based Awards |
|-----------------------------|

| Outstanding Equity Awards at December 31, 2010 |
|------------------------------------------------|

|              |  Option Awards                                                        |
|-------------------|----------------------------------------------------------------------------|
|  Name(a)     |  Number of Securities Underlying Unexercised Options(#)Exercisable(b) |  Number of Securities Underlying Unexercised Options(#)Unexercisable(c) |  Option Exercise Price($)(e) |  Option Expiration Date(f) |
| S. Wilzig Izak    | 10,000                                                                     | 0 | 3.32 | 7/15/2012 |
| David Morrow      | 0                                                                          | 0 | 0 | 0 |
| Francis J. Elenio | 0                                                                          | 0 | 0 | 0 |

| ·   | in column (b), the number of shares of our Common Stock underlying unexercised stock options that were exercisable as of December 31, 2010; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | in column (c), the number of shares of our Common Stock underlying unexercised stock options that were not exercisable as of December 31, 2010; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | in columns (e) and (f), respectively, the exercise price and expiration date for each stock option that was outstanding as of December 31, 2010. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Options Exercised and Stock Awards Vested |
|--------|-------------------------------------------|

|   | Employment Agreements and Other Arrangements with Executive Officers |
|--------|----------------------------------------------------------------------|

| Compensation of Directors |
|---------------------------|

|  Name        |   | FeesEarned or Paid in Cash($) |   |   |   OptionAwards($)  |   |   | AllOtherCompensation($) |   |   | Total($) |   |
|------------------------|--------|-------------------------------|--------|--------|-----------------------------------|--------|--------|-------------------------|--------|--------|----------|--------|
| Miles Berger           |   |                          | 27,500 |   |                              |   | 0      |                    |   |   | 0        |   |   |   | 27,500 |   |
| Milton Donnenberg      |   |                          | 27,000 |   |                              |   | 0      |                    |   |   | 0        |   |   |   | 27,000 |   |
| Eric J. Schmertz, Esq. |   |                          | 37,000 |   |                              |   | 0      |                    |   |   | 0        |   |   |   | 37,000 |   |
| W. Martin Willschick   |   |                          | 30,000 |   |                              |   | 0      |                    |   |   | 0        |   |   |   | 30,000 |   |
| James M. Orphanides    |   |                          | 6,000  |   |                              |   | 0      |                    |   |   | 0        |   |   |   | 6,000 |   |

| ·   | when we refer to “Fees Earned or Paid in Cash”, we are referring to all cash fees that we paid or were accrued in 2010, including annual retainer fees, committee and/or chairmanship fees and meeting fees; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | when we refer to amounts under “Option Awards”, we are referring to the aggregate grant date fair value in accordance with FASB ASC Topic 718, in accordance with current SEC rules; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the aggregate number of stock options outstanding at December 31, 2010 for each director in the table above is as follows:  for Mr. Berger, 32,500; for Mr. Donnenberg, 27,500; for Mr. Schmertz, 27,500; and for Mr. Willschick, 30,000.  Mr. Orphanides’ options expired in connection with his resignation in 2010. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Item 12.  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Maters |
|---------------------|-----------------------------------------------------------------------------------------------|

|   Name and Address of Beneficial Owner                                                                            |  Amount and Nature of  Beneficial Ownership(1) |  Percent   of Class(2) |
|-----------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|--------------------------------------------|
|  5% or Greater Holders*:                                                                                          |                                                          |                                       |
| Estate of Siggi B. Wilzigc/o Irene TafelVista Tax Group, LLC120 Columbia Turnpike, Suite 3Florham Park, NJ  07932 | 1,660,792 (2)                                                 | 40.1%                                      |

----

| * | See “Directors and Named Executive Officers” for the shares beneficially owned by S. Wilzig Izak, the Company’s Chairman of the Board and Chief Executive Officer. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | Each beneficial owner’s percentage ownership of Common Stock is determined by assuming that options, warrants and other convertible securities that are held by such person (but not those held by any other person) and that are exercisable or convertible within 60 days of December 31, 2010 have been exercised or converted. Options, warrants and other convertible securities that are not exercisable within 60 days of December 31, 2010 have been excluded.  Unless otherwise noted, the Company believes that all persons named in the above table have sole voting and investment power with respect to all shares of Common Stock beneficially owned by them. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Mr. Wilzig, former Chairman and President of the Company, served as the Senior Consultant to the Company until his death on January 7, 2003.  The table above reflects the Estate’s ownership as reported by the Estate. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   Name of Beneficial Owner                                          |  Amount and Nature of Beneficial Ownership(1) |  Percent   of Class |
|-------------------------------------------------------------------------------|----------------------------------------------------|-----------------------------------------|
|  Directors and Named Executives:                                    |                                               |                                    |
| Miles Berger                                                                  | 35,000 (2)                                         | *                                       |
| Milton Donnenberg                                                             | 43,962 (3)                                         | 1.1%                                    |
| S. Wilzig Izak                                                                | 791,701 (4)                                        | 19.1%                                   |
| W. Martin Willschick                                                          | 32,060 (5)                                         | *                                       |
| Francis J. Elenio                                                             | 30,925                                             | *                                       |
| All directors and current executive officers as agroup  (5 persons) | 933,648 (6)                                        | 22.1%                                   |

----

| * | Less than one percent. |
|---|------------------------|

| (1) | Each beneficial owner’s percentage ownership of Common Stock is determined by assuming that options, warrants and other convertible securities that are held by such person (but not those held by any other person) and that are exercisable or convertible within 60 days of December 31, 2010 have been exercised or converted. Options, warrants and other convertible securities that are not exercisable within 60 days of December 31, 2010 have been excluded.  Unless otherwise noted, the Company believes that all persons named in the above table have sole voting and investment power with respect to all shares of Common Stock beneficially owned by them. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes 27,500 shares of stock that could be obtained by Mr. Berger upon the exercise of stock options exercisable within 60 days of December 31, 2010. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes 22,500 shares of stock that could be obtained by Mr. Donnenberg upon the exercise of stock options exercisable within 60 days of December 31, 2010. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes 10,000 shares of stock that could be obtained by Ms. Izak upon the exercise of stock options exercisable within 60 days of December 31, 2010. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes 25,000 shares of stock that could be obtained by Mr. Willschick upon the exercise of stock options exercisable within 60 days of December 31, 2010. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes 85,000 shares of stock that could be obtained by the current directors and current executive officers upon the exercise of stock options exercisable within 60 days of December 31, 2010. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item 13.  | Certain Relationships and Related Transactions, and Director Independence |
|---------------------|---------------------------------------------------------------------------|

| ·   | the nature of the related party’s interest in the transaction; |
|--------------------|----------------------------------------------------------------------|

| ·   | the material terms of the transaction, including, the amount involved and type of transaction; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | the importance of the transaction to the related person and to us; |
|--------------------|--------------------------------------------------------------------|

| ·   | whether the transaction would impair the judgment of a director or executive officer to act in our best interest and the best interest of our stockholders; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | any other matters the Audit Committee deems appropriate. |
|--------------------|----------------------------------------------------------|

----

| Item 14.  | Principal Accounting Fees and Services |
|---------------------|----------------------------------------|

| Audit Fees and Related Matters |
|--------------------------------|

|   | Audit Fees |
|--------|------------|

|   | Audit-Related Fees |
|--------|--------------------|

|   | Tax Fees |
|--------|----------|

|   | All Other Fees |
|--------|----------------|

----

| Item 15.  | Exhibits and Financial Statement Schedules |
|---------------------|--------------------------------------------|

| (a) |   Financial Statements |
|-----|----------------------------------|

|   |   (i)   | Report of Independent Registered Public Accounting Firm                                                               |
|--------|-------------------|-----------------------------------------------------------------------------------------------------------------------|
|   |   (ii)  | Consolidated Balance Sheets as of December 31, 2010 and 2009                                                          |
|   |   (iii) | Consolidated Statements of Operations for the years ended December 31, 2010, 2009 and 2008                            |
|   |   (iv)  | Consolidated Statements of  Stockholders’ Equity for the years ended December 31, 2010, 2009 and 2008 |
|   |   (v)   | Consolidated Statements of Cash Flows for the years ended December 31, 2010, 2009 and 2008                            |
|   |   (vi)  | Notes to Consolidated Financial Statements                                                                            |

|   |   (i) | Real Estate and Accumulated Depreciation December 31, 2010 |
|--------|-----------------|------------------------------------------------------------|

| (b) |   Exhibits |
|-----|----------------------|

| Exhibit # |   | Description                                                                                                                                                                                                                       |
|-----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |   |                                                                                                                                                                                                                              |
| 3.1       |   | Restated Certificate of Incorporation of Wilshire Enterprises, Inc., as amended.  (Incorporated by referenced to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed with the SEC on December 8, 2008.) |
|      |   |                                                                                                                                                                                                                              |
| 3.2       |   | By-laws, as amended and restated through August 7, 2009.  (Incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed with the SEC on August 7, 2009.)                                       |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.3       |   | Certificate of Amendment of  Certificate of Incorporation filed with the Delaware Secretary of State on February 28, 2011                                                                                                                                                                                                                                                      |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.1  |   | Qualified Offer Plan Rights Agreement, dated as of December 4, 2008, between Wilshire Enterprises, Inc. and Continental Stock Transfer & Trust Company, as Rights Agent.  (Incorporated by referenced to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed with the SEC on December 4, 2008.)                                                            |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.2      |   | Wilshire Enterprises, Inc. 1995 Stock Option and Incentive Plan. (Incorporated by reference to Exhibit A of the Company’s Definitive Proxy Statement for its 1995 Annual Meeting of Stockholders.)                                                                                                                                                                                 |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.3      |   | Wilshire Enterprises, Inc. 1995 Non-Employee Director Stock Option Plan. (Incorporated by reference to Exhibit B of the Company’s Definitive Proxy Statement for its 1995 Annual Meeting of Stockholders.)                                                                                                                                                                         |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.4      |   | Wilshire Enterprises, Inc. 2004 Stock Option and Incentive Plan. (Incorporated by reference to Appendix C of the Company’s Definitive Proxy Statement for its 2004 Annual Meeting of Stockholders.)                                                                                                                                                                                |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.5      |   | Wilshire Enterprises, Inc. 2004 Non-Employee Director Stock Option Plan. (Incorporated by reference to Appendix D of the Company’s Definitive Proxy Statement for its 2004 Annual Meeting of Stockholders.)                                                                                                                                                                        |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.6      |   | Promissory Note given by Alpine Village Apartments, L.L.C., a subsidiary of Wilshire Enterprises, Inc., to Merrill Lynch Mortgage Lending, Inc. dated February 28, 2003.  (Incorporated by reference to Exhibit 10.74 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                                 |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.7      |   | Environmental Indemnity Agreement between Alpine Village Apartments, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 28, 2003. (Incorporated by reference to Exhibit 10.75 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                          |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.8      |   | Indemnity and Guaranty Agreement between Alpine Village Apartments, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 28, 2003. (Incorporated by reference to Exhibit 10.76 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                 |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.9      |   | Multifamily Mortgage, Security Agreement, Assignment of Rents and Fixture Filing between Alpine Village Apartments, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 28, 2003. (Incorporated by reference to Exhibit 10.77 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.) |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                     |

----

| 10.10  |   | Promissory Note given by Sunrise Ridge, L.L.C., a subsidiary of Wilshire Enterprises, Inc., to Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.78 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                                  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                    |
| 10.11  |   | Environmental Indemnity Agreement between Sunrise Ridge, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.79 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                    |
| 10.12  |   | Indemnity and Guaranty Agreement between Sunrise Ridge, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.80 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                    |
| 10.13  |   | Multifamily Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing between Sunrise Ridge, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.81 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                    |
| 10.14  |   | Promissory Note given by Van Buren, L.L.C., a subsidiary of Wilshire Enterprises, Inc., to Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.82 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                    |
| 10.15  |   | Environmental Indemnity Agreement between Van Buren, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.83 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                    |
| 10.16  |   | Indemnity and Guaranty Agreement between Van Buren, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.84 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                    |
| 10.17  |   | Multifamily Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing between Van Buren, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.85 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                    |
| 10.18  |   | Promissory Note given by Wellington Apartments, L.L.C., a subsidiary of Wilshire Enterprises, Inc., to Merrill Lynch Mortgage Lending, Inc. dated                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | February 27, 2003. (Incorporated by reference to Exhibit 10.86 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                                                                                                                                                                                              |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.19  |   | Environmental Indemnity Agreement between Wellington Apartments, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.87 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.20  |   | Indemnity and Guaranty Agreement between Wellington Apartments, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.88 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.)                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.21  |   | Multifamily Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing between Wellington Apartments, L.L.C., a subsidiary of Wilshire Enterprises, Inc., and Merrill Lynch Mortgage Lending, Inc. dated February 27, 2003. (Incorporated by reference to Exhibit 10.89 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.22  |   | Letter Agreement, dated as of September 4, 2007, between Wilshire Enterprises, Inc. and Frank Elenio. (Incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on September 5, 2007.)                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.23  |   | Severance Letter Agreement between the Company and Sherry Wilzig Izak dated as of March 29, 2004. (Incorporated by reference to Exhibit 10.94 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2003.)                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.24  |   | Amendment to Severance Letter Agreement between the Company and Sherry Wilzig Izak dated December 31, 2008, in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended. (Incorporated by reference to Exhibit 10.26 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2008.)                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.25  |   | Form of Indemnification Agreement of Directors and Chief Financial Officer (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed with the SEC on January 18, 2007).                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.26  |   | Settlement Agreement, dated as of April 2, 2009, among Wilshire Enterprises, Inc., Bulldog Investors, Full Value Partners, L.P. and certain of their affiliates. (Incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on April 3, 2009.)                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |

----

| 10.27  |   | Amendment No. 1 to Qualified Offer Plan Rights Agreement, dated as of March 11, 2010, between Wilshire Enterprises, Inc. and Continental Stock Transfer & Trust Company, as Rights Agent. (Incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed with the SEC on March 12, 2010.) |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                             |
| 10.28  |   | Office Lease, dated July 1, 2010 and amended September 2, 2010, between The Realty Associates Fund VII, LP (as “Landlord”) and Wilshire Enterprises, Inc. (as “Tenant) (filed herewith).                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                             |
| 10.29  |   | Letter Agreement, dated as of November 24, 2010, between the Company and David Morrow (filed herewith).                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                             |
| 21     |   | List of significant subsidiaries of the Company.                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                             |
| 23.1   |   | Consent of J.H. Cohn LLP, Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                             |
| 24     |   | Power of Attorney.                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                             |
| 31.1   |   | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                             |
| 31.2   |   | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                             |
| 32.1   |   | Certification of the 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 the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                           |

----

|                | WILSHIRE ENTERPRISES, INC.(Registrant)                                         |
|---------------------|--------------------------------------------------------------------------------|
|                |                                                                           |   |
| Date: July 29, 2011 | By:                                                                  | /s/ S. Wilzig Izak |
|                | S. Wilzig Izak                                                                 |
|                | Chairman of the Board and Chief Executive Officer(Principal Executive Officer) |

| By:       |   | *                 |   | Date:    July 29, 2011 |
|-----------|--------|-------------------|--------|--------------------------------------------|
|      |   | Miles Berger      |   |                                       |
|      |   |              |   |                                       |
| By:       |   | *                 |   | Date:    July 29, 2011 |
|      |   | Milton Donnenberg |   |                                       |
|      |   |              |   |                                       |
| By:       |   |              |   | Date:   July 29, 2011       |
|      |   | S. Wilzig Izak    |   |                                       |
|  By: |   | *                 |   | Date:    July 29, 2011 |
|      |   | Martin Willschick |   |                                       |
|      |   |              |   |                                       |
| By:       |   | *                 |   | Date:   July 29, 2011       |
|      |   |              |   |                                       |

| Officers: |
|-----------|

| By:    |   | /s/ S. Wilzig Izak                                                                                                     |   | Date:   July 29, 2011 |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|
|   |   | S. Wilzig Izak                                                                                                         |   |                                 |
|   |   | Chairman of the Board and Chief Executive Officer(Principal Executive Officer)                                         |   |                                 |
|   |   |                                                                                                                   |   |                                 |
| By:    |   | /s/ David Morrow                                                                                                  |   | Date:   July 29, 2011 |
|   |   |  David Morrow                                                                                                     |   |                                 |
|   |   | Principal Accounting Officer and Chief Operating Officer(Principal Accounting Officer and Principal Financial Officer) |   |                                 |

----

| Exhibit # |   | Description                                                                                                                                            |
|-----------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| 21        |   | List of significant subsidiaries.                                                                                                                      |
|      |   |                                                                                                                                                   |
| 23.1      |   | Consent of J.H. Cohn LLP, Independent Registered Public Accounting Firm.                                                                               |
|      |   |                                                                                                                                                   |
| 24        |   | Power of attorney.                                                                                                                                     |
|      |   |                                                                                                                                                   |
| 31.1      |   | Certification of the Chief Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.                                                    |
|      |   |                                                                                                                                                   |
| 31.2      |   | Certification of the Chief Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.                                                    |
|      |   |                                                                                                                                                   |
| 32.1      |   | Certification of the 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 the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

----