----

| (Mark      One)                                                                                      |                                                                                                                 |
|------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
| ý                                                                                               | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934                    |
|                                                                                                 |                                                                                                                 |
|                                                                                                 | For      the quarter ended December 31, 2007                                                                         |
|                                                                                                 |                                                                                                                 |
|                                                                                                 | OR                                                                                                                   |
|                                                                                                 |                                                                                                                 |
| q                                                                                                    | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 [NO FEE REQUIRED] |
|                                                                                                 |                                                                                                                 |
|                                                                                                 | For      the transition period from _______ to _____                                                                 |
| Commission      file number 0-27887                                                                  |
|                                                                                                 |
|   COLLECTORS      UNIVERSE, INC.(Exact      name of Registrant as specified in itscharter) |

| Delaware                                                                 | 33-0846191                                |
|--------------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of                                     | (I.R.S.      Employer Identification No.) |
| Incorporation      or organization)                                      |                                      |
|                                                                     |
| 1921      E. Alton Avenue, Santa Ana, California 92705                   |
| (address of principal executive      offices and zip code)               |
|                                                                     |
|                                                                     |
| Registrant's      telephone number, including area code: (949)  567-1234 |

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

|   | Class                             | Outstanding at  February 5,      2008 |
|--------|-----------------------------------|-------------------------------------------------|
|   | Common      Stock $.001 Par Value | 8,562,871                                       |   |
|   |                              |                                            |   |

----

| PART      I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Financial      Information                                                                              | Page                                                                                                                                                                                              |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Item      1.                                                                                            | Financial Statements:                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Condensed      Consolidated Balance Sheets as of  December 31, 2007      and      June 30, 2007 (unaudited)                                                                             | 1 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Condensed      Consolidated Statements of Operations for      the Three and Six Months Ended December 31, 2007 and 2006      (unaudited)                                                          | 2 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Condensed      Consolidated Statements of Stockholders’ Equity for      the Years Ended June 30, 2006 and 2007 and   the      Six Months Ended December 31, 2007 (unaudited) |  3 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Condensed      Consolidated Statements of Cash Flows for      the Six Months Ended December 31, 2007 and 2006      (unaudited)                                                                    | 4 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Notes to Condensed Consolidated Financial Statements      (unaudited)                                                                                                                             | 6 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Item      2.                                                                                            | Management's Discussion and Analysis of      Financial Condition and Results of Operations                                                                                                        | 20 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Forward Looking Information                                                                                                                                                                       | 20 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Our Business                                                                                                                                                                                      | 21 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Overview of Results of Operations for the Three      and Six months Ended December 31, 2007                                                                                                       | 22 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Factors That Can Affect Our Financial Position and      Operating Results                                                                                                                         | 22 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Critical Accounting Policies and      Estimates                                                                                                                                                   | 24 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Results      of Operation–For the Three and Six Months Ended December 31, 2007 Versus      the Three      and Six Months Ended December 31, 2006                                            | 25 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Liquidity and Capital      Resources                                                                                                                                                              | 31 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    | Risks and Uncertainties That Could Affect      Our Future Financial Performance                                                                                                                   | 32 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Item      2A.                                                                                           | Quantitative and Qualitative Disclosures About Market      Risk                                                                                                                                   | 34 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Item      3                                                                                             | Controls and Procedures                                                                                                                                                                           | 35 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |   |
| PART      II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Other      Information                                                                                  |                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Item      1                                                                                             | Legal Proceedings                                                                                                                                                                                 | 35 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Item      1A.                                                                                           | Risk Factors                                                                                                                                                                                      | 36 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Item      2.                                                                                            | Unregistered Sales of Securities and Use of      Proceeds                                                                                                                                         | 36 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Item      3                                                                                             | Submission on Matters to a Vote of the Security      Holders                                                                                                                                      | 36 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Item      6.                                                                                            | Exhibits                                                                                                                                                                                          | 37 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |
| SIGNATURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                    | S-1                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |
| INDEX TO      EXHIBITS                                                                                                                                           | E-1                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |
| EXHIBITS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                    |                                                                                                                                                                                              |
| Exhibit 31.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Certifications      of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley Act of      2002 |                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |
| Exhibit 31.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Certifications      of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley Act of      2002 |                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |
| Exhibit 32.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Chief      Executive Officer Certification Under Section 906 of the Sarbanes-Oxley      Act of 2002     |                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                                                                                                                                                                                              |
| Exhibit 32.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Chief      Financial Officer Certification Under Section 906 of the Sarbanes-Oxley      Act of 2002     |                                                                                                                                                                                              |

----

ITEM 1.      FINANCIALSTATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                         |   | December      31, |    |   | June      30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------|--------|
|                                                                                                                                                         |   | 2007              |    |   | 2007          |   |
| ASSETS                                                                                                                                                       |   |              |    |   |          |   |
| Current      assets:                                                                                                                                         |   |              |    |   |          |   |
| Cash and cash      equivalents                                                                                                                               |   | $                 | 32,279  |   |          | $      | 42,386 |   |
| Accounts receivable, net of      allowance of $77 at December 31,      2007 and      $60 at June 30,      2007                                               |   |              | 2,337   |   |          |   | 1,276 |   |
| Refundable income      taxes                                                                                                                                 |   |              | 1,220   |   |          |   | 1,220 |   |
| Inventories, net                                                                                                                                             |   |              | 527     |   |          |   | 442 |   |
| Prepaid expenses and other current      assets                                                                                                               |   |              | 1,499   |   |          |   | 1,060 |   |
| Customer notes receivable, net of allowance of $25 at      December 31, 2007 and $23 at June 30, 2007                                                        |   |              | 3,464   |   |          |   | 2,536 |   |
| Net deferred income tax      asset                                                                                                                           |   |              | 2,346   |   |          |   | 1,020 |   |
| Receivables from sale of net      assets of discontinued operations                                                                                          |   |              | 92      |   |          |   | 92 |   |
| Total current    assets                                                                                                                                      |   |              | 43,764  |   |          |   | 50,032 |   |
|                                                                                                                                                         |   |              |    |   |          |   |   |   |
| Property and equipment,      net                                                                                                                             |   |              | 4,402   |   |          |   | 4,081 |   |
| Goodwill                                                                                                                                                     |   |              | 13,041  |   |          |   | 12,884 |   |
| Intangible assets,    net                                                                                                                                    |   |              | 10,170  |   |          |   | 10,365 |   |
| Note receivable from sale of      discontinued operation                                                                                                     |   |              | 183     |   |          |   | 229 |   |
| Other assets                                                                                                                                                 |   |              | 509     |   |          |   | 510 |   |
|                                                                                                                                                         |   | $                 | 72,069  |   |          | $      | 78,101 |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                                    |   |              |    |   |          |   |   |   |
| Current      liabilities:                                                                                                                                    |   |              |    |   |          |   |   |   |
| Accounts payable                                                                                                                                             |   | $                 | 658     |   |          | $      | 1,435 |   |
| Accruedliabilities                                                                                                                                           |   |              | 2,549   |   |          |   | 2,154 |   |
| Accrued compensation and      benefits                                                                                                                       |   |              | 1,424   |   |          |   | 1,988 |   |
| Income taxes    payable                                                                                                                                      |   |              | 292     |   |          |   | 14 |   |
| Deferred revenue                                                                                                                                             |   |              | 2,088   |   |          |   | 2,233 |   |
| Current liabilities of      discontinued operations held for sale                                                                                            |   |              | 26      |   |          |   | - |   |
| Total current      liabilities                                                                                                                               |   |              | 7,037   |   |          |   | 7,824 |   |
|                                                                                                                                                         |   |              |    |   |          |   |   |   |
| Deferred      rent                                                                                                                                           |   |              | 451     |   |          |   | 477 |   |
| Other      long-term liabilities                                                                                                                             |   |              | 40      |   |          |   | 40 |   |
| Net      deferred income tax liability                                                                                                                       |   |              | 1,013   |   |          |   | 869 |   |
| Commitments      and contingencies                                                                                                                           |   |              | -       |   |          |   | - |   |
| p  Preferred      stock, $.001 par value; 5,000 shares authorized; no shares issued or      outstanding                                            |   |              | -       |   |          |   | - |   |
|     Common      stock, $.001 par value; 45,000 shares authorized; outstanding 8,554 at      December 31, 2007 and 8,496 at June 30, 2007 |   |              | 9       |   |          |   | 9 |   |
|     Additional      paid-in capital                                                                                                      |   |              | 77,360  |   |          |   | 76,737 |   |
|     Accumulated      deficit                                                                                                             |   |              | (13,841 | )      |          |   | (7,855 | ) |
| Total stockholders'      equity                                                                                                                              |   |              | 63,528  |   |          |   | 68,891 |   |
|                                                                                                                                                         |   | $                 | 72,069  |   |          | $      | 78,101 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                                                                                                                  |   | Three      Months EndedDecember      31, |   |   | Six      Months EndedDecember      31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|--------|----------------------------------------|--------|
|                                                                                                                                                  |   | 2007                                     |   |   | 2006                                   |   |   | 2007 |   |   | 2006 |   |
| Net      revenues:                                                                                                                                    |   |                                     |   |   |                                   |   |   |   |   |   |   |   |
| Grading, authentication and      related services                                                                                                     |   | $                                        | 9,148  |   |                                   | $      | 8,715 |   |   | $ | 19,882 |   |   | $ | 18,561 |   |
| Product sales                                                                                                                                         |   |                                     | 816    |   |                                   |   | 78 |   |   |   | 907 |   |   |   | 130 |   |
|                                                                                                                                                  |   |                                     | 9,964  |   |                                   |   | 8,793 |   |   |   | 20,789 |   |   |   | 18,691 |   |
| Cost      of revenues:                                                                                                                                |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Grading, authentication and      related services                                                                                                     |   |                                     | 6,004  |   |                                   |   | 4,298 |   |   |   | 11,176 |   |   |   | 8,623 |   |
| Product sales                                                                                                                                         |   |                                     | 793    |   |                                   |   | 69 |   |   |   | 821 |   |   |   | 100 |   |
|                                                                                                                                                  |   |                                     | 6,797  |   |                                   |   | 4,367 |   |   |   | 11,997 |   |   |   | 8,723 |   |
| Gross      profit                                                                                                                                     |   |                                     | 3,167  |   |                                   |   | 4,426 |   |   |   | 8,792 |   |   |   | 9,968 |   |
| Operating      expenses:                                                                                                                              |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Selling and marketing      expenses                                                                                                                   |   |                                     | 1,861  |   |                                   |   | 1,433 |   |   |   | 3,879 |   |   |   | 2,695 |   |
| General and administrative      expenses                                                                                                              |   |                                     | 3,729  |   |                                   |   | 3,681 |   |   |   | 7,677 |   |   |   | 7,660 |   |
| Amortization of intangible      assets                                                                                                                |   |                                     | 286    |   |                                   |   | 187 |   |   |   | 556 |   |   |   | 358 |   |
| Total      operating expenses                                                                                                                         |   |                                     | 5,876  |   |                                   |   | 5,301 |   |   |   | 12,112 |   |   |   | 10,713 |   |
| Operating      loss                                                                                                                                   |   |                                     | (2,709 | )      |                                   |   | (875 | ) |   |   | (3,320 | ) |   |   | (745 | ) |
| Interest      income, net                                                                                                                             |   |                                     | 296    |   |                                   |   | 546 |   |   |   | 740 |   |   |   | 1,113 |   |
| Other      income                                                                                                                                     |   |                                     | 2      |   |                                   |   | 2 |   |   |   | 3 |   |   |   | 6 |   |
| Income      (loss) before income taxes                                                                                                                |   |                                     | (2,411 | )      |                                   |   | (327 | ) |   |   | (2,577 | ) |   |   | 374 |   |
| Provision      (benefit) for income taxes                                                                                                             |   |                                     | (962   | )      |                                   |   | (147 | ) |   |   | (1,028 | ) |   |   | 171 |   |
| Income      (loss) from continuing operations                                                                                                         |   |                                     | (1,449 | )      |                                   |   | (180 | ) |   |   | (1,549 | ) |   |   | 203 |   |
| Income      from discontinued operations, net of gain on    sales      of discontinued businesses (net      of income taxes) |   |                                     | 6      |   |                                   |   | 80 |   |   |   | (4 | ) |   |   | 91 |   |
| Net      income (loss)                                                                                                                                |   | $                                        | (1,443 | )      |                                   | $      | (100 | ) |   | $ | (1,553 | ) |   | $ | 294 |   |
|                                                                                                                                                  |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per basic share:                                                                                                               |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|          Income (loss) from continuing operations                                                                                      |   | $                                        | (0.17  | )      |                                   | $      | (0.02 | ) |   | $ | (0.18 | ) |   | $ | 0.02 |   |
|          Income from discontinued operations, net of gainon sales of discontinued      businesses (net of income taxes)                |   |                                     | -      |   |                                   |   | 0.01 |   |   |   | - |   |   |   | 0.01 |   |
| Net      income (loss)                                                                                                                                |   | $                                        | (0.17  | )      |                                   | $      | (0.01 | ) |   | $ | (0.18 | ) |   | $ | 0.03 |   |
|                                                                                                                                                  |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per diluted share:                                                                                                             |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing      operations                                                                                                         |   | $                                        | (0.17  | )      |                                   | $      | (0.02 | ) |   | $ | (0.18 | ) |   | $ | 0.02 |   |
| Income from discontinued      operations, net of gainon sales of discontinued      businesses (net of income taxes)                                   |   |                                     | -      |   |                                   |   | 0.01 |   |   |   | - |   |   |   | 0.01 |   |
| Net      income (loss)                                                                                                                                |   | $                                        | (0.17  | )      |                                   | $      | (0.01 | ) |   | $ | (0.18 | ) |   | $ | 0.03 |   |
|                                                                                                                                                  |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding:                                                                                                             |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                 |   |                                     | 8,491  |   |                                   |   | 8,309 |   |   |   | 8,477 |   |   |   | 8,328 |   |
| Diluted                                                                                                                                               |   |                                     | 8,491  |   |                                   |   | 8,309 |   |   |   | 8,477 |   |   |   | 8,631 |   |
| Dividends      declared per common share                                                                                                              |   | $                                        | 0.25   |   |                                   | $      | 0.08 |   |   | $ | 0.50 |   |   | $ | 0.16 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS'EQUITY

|                                                                                                         |   | Common      Stock |   |   | AdditionalPaid-in |   |   | Accumulated |   |   | Treasury      Stock |   |   |   |    |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------|--------|--------|---------------------|--------|--------|--------|---------|
|                                                                                                         |   | Shares            |   |   | Amount            |   |   | Capital     |   |   | Deficit             |   |   | Shares |    |   | Amount |   |   | Total |   |
| Balance      at June 30, 2005                                                                                |   |              | 8,610  |   |              | $      | 9      |        |   | $      | 78,594              |   |   | $      | (7,016  | ) |   |   | (125 | ) |   | $ | (1,021 | ) |   | $ | 70,566 |   |
| Exercise      of stock options                                                                               |   |              | 47     |   |              |   | -      |        |   |   | 243                 |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 243 |   |
| Stock-based      compensation expense                                                                        |   |              | -      |   |              |   | -      |        |   |   | 670                 |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 670 |   |
| Tax      benefit on exercise of stock options                                                                |   |              | -      |   |              |   | -      |        |   |   | 29                  |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 29 |   |
| Shares      repurchased and cancelled          under the      Stock Repurchase Plan |   |              | (182   | )      |              |   | (1     | )           |   |   | (2,627              | )      |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | (2,628 | ) |
| Net      income                                                                                              |   |              | -      |   |              |   | -      |        |   |   | -                   |   |   |   | 3,700   |   |   |   | - |   |   |   | - |   |   |   | 3,700 |   |
| Dividends      paid to common stockholders                                                                   |   |              | -      |   |              |   | -      |        |   |   | -                   |   |   |   | (674    | ) |   |   | - |   |   |   | - |   |   |   | (674 | ) |
| Balance      at June 30, 2006                                                                                |   |              | 8,475  |   |              |   | 8      |        |   |   | 76,909              |   |   |   | (3,990  | ) |   |   | (125 | ) |   |   | (1,021 | ) |   |   | 71,906 |   |
|                                                                                                         |   |              |   |   |              |   |   |        |   |   |                |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise      of stock options                                                                               |   |              | 161    |   |              |   | 1      |        |   |   | 275                 |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 276 |   |
| Stock-based      compensation expense                                                                        |   |              | -      |   |              |   | -      |        |   |   | 726                 |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 726 |   |
| Issuance      of restricted shares                                                                           |   |              | 57     |   |              |   | -      |        |   |   | 164                 |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 164 |   |
| Tax      benefit on exercise of stock options                                                                |   |              | -      |   |              |   | -      |        |   |   | 633                 |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 633 |   |
| Shares      repurchased and cancelledunder the Stock repurchase      Plan                                    |   |              | (72    | )      |              |   | -      |        |   |   | (949                | )      |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | (949 | ) |
| Net      loss                                                                                                |   |              | -      |   |              |   | -      |        |   |   | -                   |   |   |   | (515    | ) |   |   | - |   |   |   | - |   |   |   | (515 | ) |
| Retirement      of treasury shares                                                                           |   |              | (125   | )      |              |   | -      |        |   |   | (1,021              | )      |   |   | -       |   |   |   | 125 |   |   |   | 1,021 |   |   |   | - |   |
| Dividends      paid ($0.40 per share)                                                                        |   |              | -      |   |              |   | -      |        |   |   | -                   |   |   |   | (3,350  | ) |   |   | - |   |   |   | - |   |   |   | (3,350 | ) |
| Balance      at June 30, 2007                                                                                |   |              | 8,496  |   |              |   | 9      |        |   |   | 76,737              |   |   |   | (7,855  | ) |   |   | - |   |   |   | - |   |   |   | 68,891 |   |
| Cumulative      effect of adoption ofFIN 48 (see note    8)                                                  |   |              | -      |   |              |   | -      |        |   |   | -                   |   |   |   | (170    | ) |   |   | - |   |   |   | - |   |   |   | (170 | ) |
| Exercise      of stock options                                                                               |   |              | 37     |   |              |   | -      |        |   |   | 111                 |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 111 |   |
| Stock-based      compensation expense                                                                        |   |              | 21     |   |              |   | -      |        |   |   | 512                 |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 512 |   |
| Dividends      paid ($0.50 per share)                                                                        |   |              | -      |   |              |   | -      |        |   |   | -                   |   |   |   | (4,263  | ) |   |   | - |   |   |   | - |   |   |   | (4,263 | ) |
| Net      loss                                                                                                |   |              | -      |   |              |   | -      |        |   |   | -                   |   |   |   | (1,553  | ) |   |   | - |   |   |   | - |   |   |   | (1,553 | ) |
| Balance      at December 31, 2007                                                                            |   |              | 8,554  |   |              | $      | 9      |        |   | $      | 77,360              |   |   | $      | (13,841 | ) |   |   | - |   |   | $ | - |   |   | $ | 63,528 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                                         |   | Six      Months EndedDecember      31, |    |
|--------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                                                         |   | 2007                                   |    |   | 2006 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                   |   |                                   |    |   |   |   |
| Net      income (loss)                                                                                       |   | $                                      | (1,553  | ) |   | $ | 294 |   |
| Adjustments      to reconcile net income (loss) to net cash (used in) provided by      operating activities: |   |                                   |    |   |   |   |   |   |
| Depreciation and      amortization                                                                           |   |                                   | 1,164   |   |   |   | 852 |   |
| Stock-based compensation      expense                                                                        |   |                                   | 512     |   |   |   | 420 |   |
| Tax benefit from exercising of      stock options                                                            |   |                                   | -       |   |   |   | 7 |   |
| Provision for bad debts and      credit                                                                      |   |                                   | 19      |   |   |   | 34 |   |
| Gain on sale of property and      equipment                                                                  |   |                                   | (1      | ) |   |   | - |   |
| Provision for inventory write      down                                                                      |   |                                   | 10      |   |   |   | 3 |   |
| Interest on notes      receivable                                                                            |   |                                   | (6      | ) |   |   | - |   |
| Discontinued      operations                                                                                 |   |                                   | 4       |   |   |   | (91 | ) |
| Deferred income      taxes                                                                                   |   |                                   | (963    | ) |   |   | (10 | ) |
| Changes      in operating assets and liabilities:                                                            |   |                                   |    |   |   |   |   |   |
| Accounts    receivable                                                                                       |   |                                   | (1,077  | ) |   |   | 191 |   |
| Inventories                                                                                                  |   |                                   | (95     | ) |   |   | (31 | ) |
| Prepaid expenses and other      current assets                                                               |   |                                   | (438    | ) |   |   | (276 | ) |
| Income taxes      payable                                                                                    |   |                                   | 4       |   |   |   | (584 | ) |
| Other assets                                                                                                 |   |                                   | (7      | ) |   |   | (66 | ) |
| Accountspayable                                                                                              |   |                                   | (777    | ) |   |   | (49 | ) |
| Accrued    liabilities                                                                                       |   |                                   | 396     |   |   |   | 155 |   |
| Deferred rent and other      long-term liabilities                                                           |   |                                   | (26     | ) |   |   | 89 |   |
| Accrued compensation and      benefits                                                                       |   |                                   | (564    | ) |   |   | 21 |   |
| Deferredrevenue                                                                                              |   |                                   | (145    | ) |   |   | 324 |   |
| Net cash (used in) provided by      operating activities                                                     |   | $                                      | (3,543  | ) |   | $ | 1,283 |   |
| Net      cash provided by operating activities of discontinued      businesses                               |   |                                   | 22      |   |   |   | 23 |   |
|                                                                                                         |   |                                   |    |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                   |   |                                   |    |   |   |   |   |   |
| Capital      expenditures                                                                                    |   |                                   | (983    | ) |   |   | (1,973 | ) |
| Proceeds      from sale of property and equipment                                                            |   |                                   | 63      |   |   |   | - |   |
| Advances      on customer notes receivable                                                                   |   |                                   | (3,501  | ) |   |   | (2,626 | ) |
| Proceeds      from customer notes receivable                                                                 |   |                                   | 2,578   |   |   |   | 4,380 |   |
| Purchase      of businesses, net of cash acquired                                                            |   |                                   | -       |   |   |   | (6,289 | ) |
| Purchase      of patents and other intangible assets                                                         |   |                                   | (20     | ) |   |   | (343 | ) |
| Capitalized      software                                                                                    |   |                                   | (615    | ) |   |   | (777 | ) |
| Cash      received on sale of discontinued businesses                                                        |   |                                   | 44      |   |   |   | 177 |   |
| Net cash used in investing      activities                                                                   |   |                                   | (2,434  | ) |   |   | (7,451 | ) |
|                                                                                                         |   |                                   |    |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                   |   |                                   |    |   |   |   |   |   |
| Proceeds      from exercise of stock options                                                                 |   |                                   | 111     |   |   |   | 36 |   |
| Payments      for retirement of common stock                                                                 |   |                                   | -       |   |   |   | (949 | ) |
| Dividends      paid to common stockholders                                                                   |   |                                   | (4,263  | ) |   |   | (1,333 | ) |
| Net cash used in financing      activities                                                                   |   |                                   | (4,152  | ) |   |   | (2,246 | ) |
|                                                                                                         |   |                                   |    |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                               |   |                                   | (10,107 | ) |   |   | (8,391 | ) |
| Cash      and cash equivalents at beginning of period                                                        |   |                                   | 42,386  |   |   |   | 52,110 |   |
| Cash      and cash equivalents at end of period                                                              |   | $                                      | 32,279  |   |   | $ | 43,719 |   |
|                                                                                                         |   |                                   |    |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW INFORMATION:                                                      |   |                                   |    |   |   |   |   |   |
| Interest      paid                                                                                           |   | $                                      | 9       |   |   | $ | 11 |   |
| Income      taxes paid                                                                                       |   | $                                      | -       |   |   | $ | 863 |   |

----

|                                                                                                                                                 |   |                                   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                                                                                                 |   | Six      Months EndedDecember      31, |   |
|                                                                                                                                                 |   | 2007                                   |   |   | 2006 |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW INFORMATION (CONTINUED):                                                                                  |   |                                   |   |   |   |   |
| Effective      July 1, 2006, the Company acquired Expos Unlimited, LLC in a transaction      summarized      as follows:                             |   |                                   |   |   |   |   |
| Fair value of net liabilities      assumed                                                                                                           |   | $                                      | -      |   |   | $ | (385 | ) |
| Intangible    assets                                                                                                                                 |   |                                   | -      |   |   |   | 1,810 |   |
| Goodwill                                                                                                                                             |   |                                   | -      |   |   |   | 1,001 |   |
| Purchase price, net of $49 cash      acquired                                                                                                        |   | $                                      | -      |   |   | $ | 2,426 |   |
|                                                                                                                                                 |   |                                   |   |   |   |   |   |   |
| Effective      August 18, 2006, the Company acquired American Gemological Laboratories,      Inc. (AGL) in      a transaction summarized as follows: |   |                                   |   |   |   |   |   |   |
| Fair value of net liabilities      assumed                                                                                                           |   | $                                      | 2      |   |   | $ | (42 | ) |
| Deferred tax liability      recognized at acquisition                                                                                                |   |                                   | 110    |   |   |   | (1,205 | ) |
| Intangible    assets                                                                                                                                 |   |                                   | (274   | ) |   |   | 3,030 |   |
| Goodwill                                                                                                                                             |   |                                   | 162    |   |   |   | 2,083 |   |
| Purchase price, net of $81 cash      acquired                                                                                                        |   | $                                      | -      |   |   | $ | 3,866 |   |
|                                                                                                                                                 |   |                                   |   |   |   |   |   |   |

----

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

| Business                                     | Acquisition      Date | Purchase      Price |
|----------------------------------------------|-----------------------|---------------------|
| Expos      Unlimited, LLC                    | July      1, 2006     | $2.5      million   |
| American      Gemological Laboratories, Inc. | August      18, 2006  | $3.9      million   |

----

----

|                                          |   | Three      Months EndedDecember      31,(in      thousands) |   |   | Six      Months EndedDecember      31,(in      thousands) |   |
|-----------------------------------------------|--------|-------------------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|
| Included      in:                             |   | 2007                                                        |   |   | 2006                                                      |   |   | 2007 |   |   | 2006 |   |
| Cost      of revenues                         |   | $                                                           | 61     |   |                                                      | $      | 76 |   |   | $ | 122 |   |   | $ | 152 |   |
| Selling      and marketing expenses(1)        |   |                                                        | -      |   |                                                      |   | 2 |   |   |   | (7 | ) |   |   | 3 |   |
| General      and administrative expenses(2)   |   |                                                        | 205    |   |                                                      |   | 142 |   |   |   | 397 |   |   |   | 265 |   |
| Pre-tax      stock-based compensation expense |   | $                                                           | 266    |   |                                                      | $      | 220 |   |   | $ | 512 |   |   | $ | 420 |   |

|   | (1) | Includes      $8,000 related to a forfeiture of stock options during the six months      ended December 31, 2007. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   |  (2) | Includes      $85,000 and $167,000 in the three and six months ended December 31, 2007,      respectively, and $35,000 and $38,000 in the three and six months ended      December 31, 2006, respectively, for amortization of compensation expense      related to issuance of restrictedstock. |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | Three      Months EndedDecember      31,                                                                                                     |   |   | Six      Months EndedDecember      31,                                                                                                            |   |
|------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                         |   | 2007                                                                                                                                         |   |   | 2006                                                                                                                                              |   |   | 2007 |   |   | 2006 |   |
| Dividend      yield          |   |                                                                                                                                         | 6.9    | %      |                                                                                                                                              |   | 2.4 | % |   |   | 6.9 | % |   |   | 2.3 | % |
| Expected      volatility     |   |                                                                                                                                         | 48.4   | %      |                                                                                                                                              |   | 52.0 | % |   |   | 48.4 | % |   |   | 51.5 | % |
| Risk-free      interest rate |   |                                                                                                                                         | 3.9    | %      |                                                                                                                                              |   | 4.5 | % |   |   | 3.9 | % |   |   | 4.6 | % |
| Expected      term           |   |                            6.0 yrs. |   |   |                       5.1      yrs. |   |   |                       6.0      yrs. |   |   |                       5.1      yrs. |   |

----

|     Options                                       |   |    Shares |    |   | Weighted      Average Exercise Price |   |   | Weighted      Average Remaining Contractual Term |   |          |  Aggregate      IntrinsicValue |   |
|-----------------------------------------------------------------------|--------|--------------------------|---------|--------|--------------------------------------|--------|--------|--------------------------------------------------|--------|---------------|-------------------------------------|--------|
|     Outstanding      at June 30, 2007             |   |                     | 912,000 |   |                                 | $      | 12.98  |                                             |   | 6.4      yrs. |                                |   | $ | 3,280,000 |   |
|        Granted                     |   |                     | 30,000  |   |                                 | $      | 14.50  |                                             |   |          | -                                   |   |   |   | - |   |
|        Exercised                   |   |                     | (37,000 | )      |                                 | $      | 5.10   |                                             |   |          | -                                   |   |   |   | - |   |
|        Forfeited      or cancelled |   |                     | (18,000 | )      |                                 | $      | 14.53  |                                             |   |          | -                                   |   |   |   | - |   |
|    Outstanding      at December 31, 2007               |   |                     | 887,000 |   |                                 | $      | 13.33  |                                             |   | 6.0      yrs. |                                |   | $ | 1,507,000 |   |
|    Exercisable      at December 31, 2007               |   |                     | 640,000 |   |                                 | $      | 13.08  |                                             |   | 5.5      yrs. |                                |   | $ | 1,468,000 |   |
|    Unvested      at December 31, 2007                  |   |                     | 247,000 |   |                                 | $      | 13.96  |                                             |   | 7.5      yrs. |                                |   | $ | 39,000 |   |
|    Expected      to vest at December 31, 2007          |   |                     | 216,000 |   |                                 | $      | 13.97  |                                             |   | 7.5      yrs. |                                |   | $ | 36,000 |   |

|    Non-Vested      Shares: |   |   Shares |    |   | WeightedAverageGrant-Date Fair      Value |   |
|-------------------------------------------|--------|--------------------|---------|--------|------------------------------------------------|--------|
| Non-vested      at June 30, 2007          |   |               | 50,230  |   |                                           | $      | 13.68 |   |
| Granted                                   |   |               | 21,359  |   |                                           |   | 14.12 |   |
| Vested                                    |   |               | (13,927 | )      |                                           |   | 13.60 |   |
| Forfeited or      Cancelled               |   |               | -       |   |                                           |   | - |   |
| Non-vested      at December 31, 2007      |   |               | 57,662  |   |                                           | $      | 13.86 |   |

| Fiscal      Year Ending June 30, |   | Amount |      |
|----------------------------------|--------|--------|-----------|
| 2008                             |   | $      | 490,000   |   |
| 2009                             |   |   | 596,000   |   |
| 2010                             |   |   | 256,000   |   |
| 2011                             |   |   | 120,000   |   |
| 2012                             |   |   | 15,000    |   |
|                             |   | $      | 1,477,000 |   |

----

|  |   | Concentrations |
|--|--------|----------------|

----

|                                                                |   |  Coins |   |   | GCALincluding      Gemprint |   |   |  AGL |   |   |  Expos |   |   | CCEand      Other |   |   |  Total |   |
|---------------------------------------------------------------------|--------|-------------|--------|--------|-----------------------------|--------|--------|-----------|--------|--------|-------------|--------|--------|-------------------|--------|--------|-------------|--------|
| Goodwill:                                                           |   |        |   |   |                        |   |   |      |   |   |        |   |   |              |   |   |        |   |
| Balance      at June 30, 2007                                       |   | $           | 515    |   |                        | $      | 8,168  |      |   | $      | 2,083       |   |   | $                 | 1,001  |   |        | $      | 1,117 |   |   | $ | 12,884 |   |
| Purchase price adjustment since      June 30, 2007:                 |   |        |   |   |                        |   |   |      |   |   |        |   |   |              |   |   |        |   |   |   |   |   |   |   |
|             CCE                       |   |        | -      |   |                        |   | -      |      |   |   | -           |   |   |              | -      |   |        |   | (5 | ) |   |   | (5 | ) |
|         AGL                                               |   |        | -      |   |                        |   | -      |      |   |   | 162         |   |   |              | -      |   |        |   | - |   |   |   | 162 |   |
| Balance      at December 31, 2007                                   |   | $           | 515    |   |                        | $      | 8,168  |      |   | $      | 2,245       |   |   | $                 | 1,001  |   |        | $      | 1,112 |   |   | $ | 13,041 |   |
|                                                                |   |        |   |   |                        |   |   |      |   |   |        |   |   |              |   |   |        |   |   |   |   |   |   |   |
| Intangible      Assets, Net:                                        |   |        |   |   |                        |   |   |      |   |   |        |   |   |              |   |   |        |   |   |   |   |   |   |   |
| Balance      at June 30, 2007                                       |   | $           | 412    |   |                        | $      | 4,013  |      |   | $      | 2,916       |   |   | $                 | 1,700  |   |        | $      | 1,324 |   |   | $ | 10,365 |   |
| Capitalized      software costs                                     |   |        | 54     |   |                        |   | 150    |      |   |   | -           |   |   |              | -      |   |        |   | 411 |   |   |   | 615 |   |
|     CDE      software license                   |   |        | -      |   |                        |   | 20     |      |   |   | -           |   |   |              | -      |   |        |   | - |   |   |   | 20 |   |
|     AGL      reference set                      |   |        | -      |   |                        |   | -      |      |   |   | (274        | )      |   |              | -      |   |        |   | - |   |   |   | (274 | ) |
| Less: amortization for six      months ended      December 31, 2007 |   |        | (81    | )      |                        |   | (260   | )         |   |   | (57         | )      |   |              | (55    | )      |        |   | (103 | ) |   |   | (556 | ) |
| Balance at December 31,      2007                                   |   | $           | 385    |   |                        | $      | 3,923  |      |   | $      | 2,585       |   |   | $                 | 1,645  |   |        | $      | 1,632 |   |   | $ | 10,170 |   |

| 2008      (for Q3-Q4) |   | $ | 656,000   |   |
|-----------------------|--------|---|-----------|--------|
| 2009                  |   | $ | 1,406,000 |   |
| 2010                  |   | $ | 1,228,000 |   |
| 2011                  |   | $ | 780,000   |   |
| 2012                  |   | $ | 560,000   |   |

----

----

----

|                                                           |   | Three      Months EndedDecember      31, |   |   | Six      Months EndedDecember      31, |   |
|----------------------------------------------------------------|--------|------------------------------------------|--------|--------|----------------------------------------|--------|
|                                                           |   | 2007                                     |   |   | 2006                                   |   |   | 2007 |   |   | 2006 |   |
| Revenue                                                        |   | $                                        | 9,964  |   |                                   | $      | 8,793 |   |   | $ | 20,789 |   |   | $ | 18,768 |   |
| Operating      loss                                            |   |                                     | (2,709 | )      |                                   |   | (875 | ) |   |   | (3,320 | ) |   |   | (745 | ) |
| Interest      income, net                                      |   |                                     | 296    |   |                                   |   | 546 |   |   |   | 740 |   |   |   | 1,113 |   |
| Other      income                                              |   |                                     | 2      |   |                                   |   | 2 |   |   |   | 3 |   |   |   | 6 |   |
| Income      (loss) before provision (benefit) for income taxes |   |                                     | (2,411 | )      |                                   |   | (327 | ) |   |   | (2,577 | ) |   |   | 374 |   |
| Provision      (benefit) for income taxes                      |   |                                     | (962   | )      |                                   |   | (147 | ) |   |   | (1,028 | ) |   |   | 171 |   |
| Income      (loss) from continuing operations                  |   |                                     | (1,449 | )      |                                   |   | (180 | ) |   |   | (1,549 | ) |   |   | 203 |   |
| Income      from discontinued operations                       |   |                                     | 6      |   |                                   |   | 80 |   |   |   | (4 | ) |   |   | 91 |   |
| Net      income (loss)                                         |   | $                                        | (1,443 | )      |                                   | $      | (100 | ) |   | $ | (1,553 | ) |   | $ | 294 |   |
|                                                           |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per basic share:                        |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing      operations                  |   | $                                        | (0.17  | )      |                                   | $      | (0.02 | ) |   | $ | (0.18 | ) |   | $ | 0.02 |   |
| Income from discontinued      operations                       |   | $                                        | -      |   |                                   | $      | 0.01 |   |   | $ | - |   |   | $ | 0.01 |   |
| Net income    (loss)                                           |   | $                                        | (0.17  | )      |                                   | $      | (0.01 | ) |   | $ | (0.18 | ) |   | $ | 0.03 |   |
|                                                           |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per diluted share:                      |   |                                     |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing      operations                  |   | $                                        | (0.17  | )      |                                   | $      | (0.02 | ) |   | $ | (0.18 | ) |   | $ | 0.02 |   |
| Income from discontinued      operations                       |   | $                                        | -      |   |                                   | $      | 0.01 |   |   | $ | - |   |   | $ | 0.01 |   |
| Net income    (loss)                                           |   | $                                        | (0.17  | )      |                                   | $      | (0.01 | ) |   | $ | (0.18 | ) |   | $ | 0.03 |   |

|  | 4.            | INVENTORIES |
|--|----------------------------------------------------------------------|-------------|

| Inventories      consist of the following:                                                                                                                                                                                                                                                                                                                                                                                       |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   | (in      thousands) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   | December      31, |   |   | June      30, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2007 |   |   | 2007 |   |
| Coins                                                                                            |   | $ | 345 |   |   | $ | 253 |   |
| Other      collectibles                                                                          |   |   | 29 |   |   |   | 33 |   |
| Grading      raw materials consumable inventory                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 254 |   |   |   | 247 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 628 |   |   |   | 533 |   |
| Less      inventory      reserve                                                                 |   |   | (101 | ) |   |   | (91 | ) |
| Inventories,      net                                                                                                                                                                                                                                                                                                                                                                                                            |   | $ | 527 |   |   | $ | 442 |   |

----

| Property      and equipment consist of the following:                                                                                                                                                                                                                                                                                                                                                |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                 |   | (in      thousands) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                 |   | December      31, |   |   | June      30, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2007 |   |   | 2007 |   |
| Coins      and stamp grading reference sets                                                                                                                                                                                                                                                                                                                                                          |   | $ | 617 |   |   | $ | 222 |   |
| Computer      hardware and equipment                                                                                                                                                                                                                                                                                                                                                                 |   |   | 1,759 |   |   |   | 1,664 |   |
| Computer      software                                                                             |   |   | 1,035 |   |   |   | 1,027 |   |
| Equipment                                                                                          |   |   | 3,670 |   |   |   | 3,366 |   |
| Furniture      and office      equipment                                                           |   |   | 1,102 |   |   |   | 1,064 |   |
| Leasehold      improvements                                                                        |   |   | 1,535 |   |   |   | 1,452 |   |
| Trading      card reference      library                                                           |   |   | 52 |   |   |   | 52 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 9,770 |   |   |   | 8,847 |   |
| Less      accumulated depreciation and amortization                                                                                                                                                                                                                                                                                                                                                  |   |   | (5,368 | ) |   |   | (4,766 | ) |
| Property      and equipment, net                                                                                                                                                                                                                                                                                                                                                                     |   | $ | 4,402 |   |   | $ | 4,081 |   |

| Accrued      liabilities consist of the following: |   | (in      thousands) |   |
|----------------------------------------------------|--------|---------------------|--------|
|                                               |   | December      31,   |   |   | June      30, |   |
|                                               |   | 2007                |   |   | 2007 |   |
| Warranty      costs                                |   | $                   | 1,432  |   |   | $ | 735 |   |
| Professional      fees                             |   |                | 132    |   |   |   | 183 |   |
| Other                                              |   |                | 985    |   |   |   | 1,236 |   |
|                                               |   | $                   | 2,549  |   |   | $ | 2,154 |   |

|                                       |   | (in      thousands)                   |   |
|--------------------------------------------|--------|---------------------------------------|--------|
|                                       |   | Six      MonthsEndedDecember      31, |   |   | Six      MonthsEndedDecember      31, |   |
|                                       |   | 2007                                  |   |   | 2006 |   |
| Warranty      reserve, beginning of period |   | $                                     | 735    |   |   | $ | 710 |   |
| Charged      to cost of revenue            |   |                                  | 1,008  |   |   |   | 190 |   |
| Payments                                   |   |                                  | (311   | ) |   |   | (196 | ) |
| Warranty      reserve, end of period       |   | $                                     | 1,432  |   |   | $ | 704 |   |

| 7.                  | DISCONTINUED      OPERATIONS |
|----------------------------------------------------------------------------|------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (in      thousands)                      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Three      Months EndedDecember      31, |   |   | Six      Months EndedDecember      31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2007                                     |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Net      revenues                                                                                      |   | $                                        | 13     |   |   | $ | 46 |   |   | $ | 17 |   |   | $ | 49 |   |
| Income      (loss) before income tax expense (benefit)                                                                                                                                                                                                                                                                                                                                                                                 |   |                                     | 10     |   |   |   | 30 |   |   |   | (6 | ) |   |   | 41 |   |
| Gain      on sale of discontinued businesses                                                                                                                                                                                                                                                                                                                                                                                           |   |                                     | -      |   |   |   | 144 |   |   |   | - |   |   |   | 151 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                     | 10     |   |   |   | 174 |   |   |   | (6 | ) |   |   | 192 |   |
| Income      tax expense      (benefit)                                                                 |   |                                     | 4      |   |   |   | 94 |   |   |   | (2 | ) |   |   | 101 |   |
| Net      income (loss) from discontinued operations                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                        | 6      |   |   | $ | 80 |   |   | $ | (4 | ) |   | $ | 91 |   |

| 8.   |                INCOME TAXES |
|----------------|--------------------------------------------------------------------------|

----

|                                                                                                                                 |   | (in      thousands)     |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                 |   | Three      Months Ended |   |   | Six      Months Ended |   |
|                                                                                                                                 |   | December      31,       |   |   | December      31, |   |
|                                                                                                                                 |   | 2007                    |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Income      (loss) from continuing operations                                                                                        |   | $                       | (1,449 | ) |   | $ | (180 | ) |   | $ | (1,549 | ) |   | $ | 203 |   |
| Income      (loss) from discontinued operations, net of gainon sales of discontinued      businesses (net of income taxes)           |   |                    | 6      |   |   |   | 80 |   |   |   | (4 | ) |   |   | 91 |   |
| Net      income (loss)                                                                                                               |   | $                       | (1,443 | ) |   | $ | (100 | ) |   | $ | (1,553 | ) |   | $ | 294 |   |
|                                                                                                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME (LOSS) PER SHARE – BASIC:                                                                                      |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing      operations                                                                                        |   | $                       | (0.17  | ) |   | $ | (0.02 | ) |   | $ | (0.18 | ) |   | $ | 0.02 |   |
| Income (loss) from discontinued      operations, net of gainon sales      of  discontinued businesses (net of incometaxes) |   |                    | -      |   |   |   | 0.01 |   |   |   | - |   |   |   | 0.01 |   |
| Total                                                                                                                                |   | $                       | (0.17  | ) |   | $ | (0.01 | ) |   | $ | (0.18 | ) |   | $ | 0.03 |   |
|                                                                                                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME (LOSS) PER SHARE – DILUTED:                                                                                    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing      operations                                                                                        |   | $                       | (0.17  | ) |   | $ | (0.02 | ) |   | $ | (0.18 | ) |   | $ | 0.02 |   |
| Income (loss) from discontinued      operations, net of gainon sales of discontinued      businesses (net of income taxes)           |   |                    | -      |   |   |   | 0.01 |   |   |   | - |   |   |   | 0.01 |   |
| Total                                                                                                                                |   | $                       | (0.17  | ) |   | $ | (0.01 | ) |   | $ | (0.18 | ) |   | $ | 0.03 |   |
|                                                                                                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED      AVERAGE SHARES OUTSTANDING:                                                                                            |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                |   |                    | 8,491  |   |   |   | 8,309 |   |   |   | 8,477 |   |   |   | 8,328 |   |
| Effect of dilutive      shares                                                                                                       |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | 303 |   |
| Diluted                                                                                                                              |   |                    | 8,491  |   |   |   | 8,309 |   |   |   | 8,477 |   |   |   | 8,631 |   |

| 10.                | BUSINESS      SEGMENTS |
|-----------------------------------------------------------------|------------------------|

----

|                                                     |   | Three      Months Ended |   |   | Six      Months Ended |   |
|----------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
|                                                     |   | December      31,       |   |   | December      31,     |   |
|                                                     |   | 2007                    |   |   | 2006                  |   |   | 2007 |   |   | 2006 |   |
| Net      revenues from external customers                |   |                    |   |   |                  |   |   |   |   |   |   |   |
| Coins                                                    |   | $                       | 5,527  |   |                  | $      | 4,896 |   |   | $ | 11,565 |   |   | $ | 10,486 |   |
| Sportscards                                              |   |                    | 2,192  |   |                  |   | 2,099 |   |   |   | 4,484 |   |   |   | 4,350 |   |
| Jewelry                                                  |   |                    | 534    |   |                  |   | 426 |   |   |   | 914 |   |   |   | 667 |   |
| Other                                                    |   |                    | 1,711  |   |                  |   | 1,372 |   |   |   | 3,826 |   |   |   | 3,188 |   |
| Total revenue                                            |   | $                       | 9,964  |   |                  | $      | 8,793 |   |   | $ | 20,789 |   |   | $ | 18,691 |   |
| Amortization      and depreciation                       |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Coins                                                    |   | $                       | 62     |   |                  | $      | 36 |   |   | $ | 119 |   |   | $ | 76 |   |
| Sportscards                                              |   |                    | 24     |   |                  |   | 21 |   |   |   | 47 |   |   |   | 42 |   |
| Jewelry                                                  |   |                    | 322    |   |                  |   | 179 |   |   |   | 635 |   |   |   | 287 |   |
| Other                                                    |   |                    | 97     |   |                  |   | 147 |   |   |   | 196 |   |   |   | 287 |   |
| Total                                                    |   |                    | 505    |   |                  |   | 383 |   |   |   | 997 |   |   |   | 692 |   |
| Unallocated amortization and      depreciation           |   |                    | 84     |   |                  |   | 79 |   |   |   | 167 |   |   |   | 160 |   |
| Consolidated amortization and      depreciation          |   | $                       | 589    |   |                  | $      | 462 |   |   | $ | 1,164 |   |   | $ | 852 |   |
| Stock-based      compensation                            |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Coins                                                    |   | $                       | 33     |   |                  | $      | 55 |   |   | $ | 67 |   |   | $ | 113 |   |
| Sportscards                                              |   |                    | 5      |   |                  |   | 4 |   |   |   | 9 |   |   |   | 20 |   |
| Jewelry                                                  |   |                    | 3      |   |                  |   | 1 |   |   |   | 6 |   |   |   | 2 |   |
| Other                                                    |   |                    | 29     |   |                  |   | 25 |   |   |   | 58 |   |   |   | 52 |   |
| Total                                                    |   |                    | 70     |   |                  |   | 85 |   |   |   | 140 |   |   |   | 187 |   |
| Unallocated stock-based      compensation                |   |                    | 196    |   |                  |   | 135 |   |   |   | 372 |   |   |   | 233 |   |
| Consolidated stock-based      compensation               |   | $                       | 266    |   |                  | $      | 220 |   |   | $ | 512 |   |   | $ | 420 |   |
| Operating      income (loss) before unallocated expenses |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Coins                                                    |   | $                       | 457    |   |                  | $      | 1,738 |   |   | $ | 2,941 |   |   | $ | 4,121 |   |
| Sportscards                                              |   |                    | 424    |   |                  |   | 314 |   |   |   | 942 |   |   |   | 752 |   |
| Jewelry                                                  |   |                    | (1,882 | )      |                  |   | (901 | ) |   |   | (3,691 | ) |   |   | (1,542 | ) |
| Other                                                    |   |                    | 13     |   |                  |   | (126 | ) |   |   | 322 |   |   |   | 147 |   |
| Total                                                    |   |                    | (988   | )      |                  |   | 1,025 |   |   |   | 514 |   |   |   | 3,478 |   |
| Unallocated operating      expenses                      |   |                    | (1,721 | )      |                  |   | (1,900 | ) |   |   | (3,834 | ) |   |   | (4,223 | ) |
| Consolidated operating      loss                         |   | $                       | (2,709 | )      |                  | $      | (875 | ) |   | $ | (3,320 | ) |   | $ | (745 | ) |

|                                                                                                                                                                                                                                             |   | At      December 31 |   |   | At      June 30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------|--------|
| Identifiable      Assets                                                                                                                                                                                                                         |   | 2007                |   |   | 2007             |   |
| Coins                                                        |   | $                   | 3,930  |   |             | $      | 2,622 |   |
| Sportscards                                                  |   |                | 732    |   |             |   | 582 |   |
| Jewelry                                                      |   |                | 20,527 |   |             |   | 20,453 |   |
| Other                                                        |   |                | 8,815  |   |             |   | 7,866 |   |
| Total                                                        |   |                | 34,004 |   |             |   | 31,523 |   |
| Unallocated      assets                                      |   |                | 38,065 |   |             |   | 46,578 |   |
| Consolidated      assets                                     |   | $                   | 72,069 |   |             | $      | 78,101 |   |

----

| 11.                | LINE      OF CREDIT |
|------------------------------------------------------------|---------------------|

| 12.           | LEGAL      MATTERS |
|-----------------------------------------------------------------|--------------------|

----

| 13.           | SUBSEQUENT      EVENT |
|-----------------------------------------------------------------|-----------------------|

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

Forward-Looking Statements

----

Our Business

----

Overview of Results of Operation for the Three and SixMonths Ended December 31, 2007

|                                                                                                                             |   | (in      thousands)     |   |    | (in      thousands)   |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|---------|-----------------------|--------|
|                                                                                                                             |   | Three      Months Ended |   |    | Six      Months Ended |   |
|                                                                                                                             |   | December      31,       |   |    | December      31,     |   |
|                                                                                                                             |   | 2007                    |   |    | 2006                  |   |   | 2007 |   |   | 2006 |   |
| Net      revenues                                                                                                                |   |                    | 100.0  | %       |                  |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost      of revenues                                                                                                            |   |                    | 68.2   | %       |                  |   | 49.7 | % |   |   | 57.7 | % |   |   | 46.7 | % |
| Gross      profit                                                                                                                |   |                    | 31.8   | %       |                  |   | 50.3 | % |   |   | 42.3 | % |   |   | 53.3 | % |
| Operating      expenses:                                                                                                         |   |                    |   |    |                  |   |   |   |   |   |   |   |   |   |   |   |
| Selling and marketing      expenses                                                                                              |   |                    | 18.7   | %       |                  |   | 16.3 | % |   |   | 18.7 | % |   |   | 14.4 | % |
| General and administrative      expenses                                                                                         |   |                    | 37.4   | %       |                  |   | 41.9 | % |   |   | 36.9 | % |   |   | 41.0 | % |
| Amortization of      intangibles                                                                                                 |   |                    | 2.9    | %       |                  |   | 2.1 | % |   |   | 2.7 | % |   |   | 1.9 | % |
| Total operating      expenses                                                                                                    |   |                    | 59.0   | %       |                  |   | 60.3 | % |   |   | 58.3 | % |   |   | 57.3 | % |
| Operating      loss                                                                                                              |   |                    | (27.2  | %)      |                  |   | (10.0 | %) |   |   | (16.0 | %) |   |   | (4.0 | %) |
| Interest      income, net                                                                                                        |   |                    | 3.0    | %       |                  |   | 6.3 | % |   |   | 3.6 | % |   |   | 6.0 | % |
| Other      income                                                                                                                |   |                    | 0.0    | %  |                  |   | 0.0 | %  |   |   | 0.0 | % |   |   | 0.0 | %  |
| Income      (loss) before provision (benefit) for income taxes                                                                   |   |                    | (24.2  | %)      |                  |   | (3.7 | %) |   |   | (12.4 | %) |   |   | 2.0 | % |
| Provision      (benefit) for income taxes                                                                                        |   |                    | (9.6   | %)      |                  |   | (1.7 | %) |   |   | (5.0 | %) |   |   | 0.9 | % |
| Income      (loss) from continuing operations                                                                                    |   |                    | (14.6  | %)      |                  |   | (2.0 | %) |   |   | (7.4 | %) |   |   | 1.1 | % |
| Income      (loss) from discontinued operations, net of gain on sales of discontinued      businesses (net of income taxes) |   |                    | 0.1    | %       |                  |   | 0.9 | % |   |   | (0.1 | %) |   |   | 0.5 | % |
| Net      income (loss)                                                                                                           |   |                    | (14.5  | %)      |                  |   | (1.1 | %) |   |   | (7.5 | %) |   |   | 1.6 | % |

Factors That Can Affect our Financial Position and OperatingResults

----

----

|                    |   | Units      ProcessedThree      Months Ended December 31, |    |   | Declared      Value (000)Three      Months Ended December 31, |   |
|-------------------------|--------|----------------------------------------------------------|---------|--------|---------------------------------------------------------------|--------|
|                    |   | 2007                                                     |    |   | 2006                                                          |   |   | 2007 |   |   | 2006 |   |
| Coins                   |   |                                                     | 292,800 |   |                                                          |   | 42.3 | % |   |   | 281,400 |   |   |   | 43.0 | % |   | $ | 246,840 |   |   |   | 57.9 | % |   | $ | 322,673 |   |   |   | 78.9 | % |
| Sportscards             |   |                                                     | 313,000 |   |                                                          |   | 45.3 | % |   |   | 295,600 |   |   |   | 45.1 | % |   |   | 19,402 |   |   |   | 4.5 | % |   |   | 21,568 |   |   |   | 5.3 | % |
| Autographs              |   |                                                     | 50,000  |   |                                                          |   | 7.2 | % |   |   | 43,800 |   |   |   | 6.7 | % |   |   | 6,159 |   |   |   | 1.4 | % |   |   | 4,152 |   |   |   | 1.0 | % |
| Stamps                  |   |                                                     | 11,700  |   |                                                          |   | 1.7 | % |   |   | 18,000 |   |   |   | 2.7 | % |   |   | 8,928 |   |   |   | 2.1 | % |   |   | 2,296 |   |   |   | 0.5 | % |
| Currency                |   |                                                     | 10,800  |   |                                                          |   | 1.6 | % |   |   | 7,200 |   |   |   | 1.1 | % |   |   | 13,487 |   |   |   | 3.2 | % |   |   | 7,453 |   |   |   | 1.8 | % |
| Diamonds                |   |                                                     | 12,000  |   |                                                          |   | 1.7 | % |   |   | 9,000 |   |   |   | 1.4 | % |   |   | 115,418 |   |   |   | 27.1 | % |   |   | 33,924 |   |   |   | 8.3 | % |
| Colored Gemstones* |   |                                                     | 1,100   |   |                                                          |   | 0.2 | % |   |   | 200 |   |   |   | - |   |   |   | 16,066 |   |   |   | 3.8 | % |   |   | 17,042 |   |   |   | 4.2 | % |
| Total                   |   |                                                     | 691,400 |   |                                                          |   | 100.0 | % |   |   | 655,200 |   |   |   | 100.0 | % |   | $ | 426,300 |   |   |   | 100.0 | % |   | $ | 409,108 |   |   |   | 100.0 | % |

|                    |   | Units      ProcessedSix      Months Ended December 31, |      |   | Declared      Value (000)Six      Months Ended December 31, |   |
|-------------------------|--------|--------------------------------------------------------|-----------|--------|-------------------------------------------------------------|--------|
|                    |   | 2007                                                   |      |   | 2006                                                        |   |   | 2007 |   |   | 2006 |   |
| Coins                   |   |                                                   | 659,900   |   |                                                        |   | 44.6 | % |   |   | 762,700 |   |   |   | 50.2 | % |   | $ | 711,762 |   |   |   | 73.2 | % |   | $ | 787,595 |   |   |   | 82.5 | % |
| Sportscards             |   |                                                   | 651,500   |   |                                                        |   | 44.0 | % |   |   | 617,100 |   |   |   | 40.6 | % |   |   | 41,997 |   |   |   | 4.3 | % |   |   | 44,163 |   |   |   | 4.6 | % |
| Autographs              |   |                                                   | 94,800    |   |                                                        |   | 6.4 | % |   |   | 78,000 |   |   |   | 5.1 | % |   |   | 16,634 |   |   |   | 1.7 | % |   |   | 14,626 |   |   |   | 1.5 | % |
| Stamps                  |   |                                                   | 31,400    |   |                                                        |   | 2.1 | % |   |   | 30,300 |   |   |   | 2.0 | % |   |   | 11,987 |   |   |   | 1.2 | % |   |   | 5,356 |   |   |   | 0.6 | % |
| Currency                |   |                                                   | 21,800    |   |                                                        |   | 1.5 | % |   |   | 16,300 |   |   |   | 1.1 | % |   |   | 21,929 |   |   |   | 2.3 | % |   |   | 15,895 |   |   |   | 1.7 | % |
| Diamonds                |   |                                                   | 19,700    |   |                                                        |   | 1.3 | % |   |   | 15,000 |   |   |   | 1.0 | % |   |   | 138,627 |   |   |   | 14.3 | % |   |   | 57,134 |   |   |   | 6.0 | % |
| Colored Gemstones* |   |                                                   | 2,000     |   |                                                        |   | 0.1 | % |   |   | 300 |   |   |   | - |   |   |   | 29,210 |   |   |   | 3.0 | % |   |   | 30,187 |   |   |   | 3.1 | % |
| Total                   |   |                                                   | 1,481,100 |   |                                                        |   | 100.0 | % |   |   | 1,519,700 |   |   |   | 100.0 | % |   | $ | 972,146 |   |   |   | 100.0 | % |   | $ | 954,956 |   |   |   | 100.0 | % |

Critical Accounting Policies andEstimates

----

Results of Operations – Three and Six Months EndedDecember 31, 2007 versus the Three and Six Months Ended December 31,2006

|                                         |   | Three      Months Ended December 31, |   |
|----------------------------------------------|--------|--------------------------------------|--------|
|                                         |   | 2007                                 |   |   | 2006 |   |   | Increase |   |
|                                         |   | Amount                               |   |   | %      of NetRevenues |   |   | Amount |   |   | %      of NetRevenues |   |   | Amount |   |   | %      of NetRevenues |   |
|                                         |   | (Dollars      in thousands)          |   |
| Product      revenues                        |   | $                                    | 816    |   |   |   | 8.2 | % |   | $ | 78 |   |   |   | 0.9 | % |   | $ | 738 |   |   |   | 946.2 | % |
| Grading      and authentication service fees |   |                                 | 7,680  |   |   |   | 77.1 | % |   |   | 7,455 |   |   |   | 84.8 | % |   |   | 225 |   |   |   | 3.0 | % |
| Other      related services                  |   |                                 | 1,468  |   |   |   | 14.7 | % |   |   | 1,260 |   |   |   | 14.3 | % |   |   | 208 |   |   |   | 16.5 | % |
| Total      services                          |   |                                 | 9,148  |   |   |   | 91.8 | % |   |   | 8,715 |   |   |   | 99.1 | % |   |   | 433 |   |   |   | 5.0 | % |
| Total      net revenues                      |   | $                                    | 9,964  |   |   |   | 100.0 | % |   | $ | 8,793 |   |   |   | 100.0 | % |   | $ | 1,171 |   |   |   | 13.3 | % |

----

|                                         |   | Six      Months Ended December 31, |   |
|----------------------------------------------|--------|------------------------------------|--------|
|                                         |   | 2007                               |   |   | 2006 |   |   | Increase |   |
|                                         |   | Amount                             |   |   | %      of NetRevenues |   |   | Amount |   |   | %      of NetRevenues |   |   | Amount |   |   | %      of NetRevenues |   |
|                                         |   | (Dollars      in thousands)        |   |
| Product      revenues                        |   | $                                  | 907    |   |   |   | 4.4 | % |   | $ | 130 |   |   |   | 0.7 | % |   | $ | 777 |   |   |   | 597.7 | % |
| Grading      and authentication service fees |   |                               | 16,651 |   |   |   | 80.1 | % |   |   | 15,770 |   |   |   | 84.4 | % |   |   | 881 |   |   |   | 5.6 | % |
| Other      related services                  |   |                               | 3,231  |   |   |   | 15.5 | % |   |   | 2,791 |   |   |   | 14.9 | % |   |   | 440 |   |   |   | 15.8 | % |
| Total      services                          |   |                               | 19,882 |   |   |   | 95.6 | % |   |   | 18,561 |   |   |   | 99.3 | % |   |   | 1,321 |   |   |   | 7.1 | % |
| Total      net revenues                      |   | $                                  | 20,789 |   |   |   | 100.0 | % |   | $ | 18,691 |   |   |   | 100.0 | % |   | $ | 2,098 |   |   |   | 11.2 | % |

|                  |   | Three      Months Ended December 31, |   |
|-----------------------|--------|--------------------------------------|--------|
|                  |   | 2007                                 |   |   | 2006 |   |   | 2007      vs. 2006 |   |
|                  |   |                                 |   |   |   |   |   |   |   |   |   |   |   | Increase      (Decrease) |   |
|                  |   |                                 |   |   | %      of Net |   |   |   |   |   | %      of Net |   |   | Revenues |   |   | Units      Processed |   |
|                  |   | Amount                               |   |   | Revenues |   |   | Amount |   |   | Revenues |   |   | Amounts |   |   | Percent |   |   | Number |   |   | Percent |   |
|                  |   | (in      thousands)                  |   |   |   |   |   |   |   |
| Product      revenues |   | $                                    | 816    |   |   |   | 8.2 | % |   | $ | 78 |   |   |   | 0.9 | % |   | $ | 738 |   |   |   | 946.2 | % |   |   | N/A |   |   | N/A |   |
| Coins                 |   |                                 | 4,711  |   |   |   | 47.3 | % |   |   | 4,818 |   |   |   | 54.8 | % |   |   | (107 | ) |   |   | (2.2 | %) |   |   | 11 |   |   |   | 4.1 | % |
| Sportscards           |   |                                 | 2,192  |   |   |   | 22.0 | % |   |   | 2,099 |   |   |   | 23.9 | % |   |   | 93 |   |   |   | 4.4 | % |   |   | 17 |   |   |   | 5.9 | % |
| Other      (1)        |   |                                 | 2,245  |   |   |   | 22.5 | % |   |   | 1,798 |   |   |   | 20.4 | % |   |   | 447 |   |   |   | 24.9 | % |   |   | 8 |   |   |   | 9.5 | % |
| Net      Revenues     |   | $                                    | 9,964  |   |   |   | 100.0 | % |   | $ | 8,793 |   |   |   | 100.0 | % |   | $ | 1,171 |   |   |   | 13.3 | % |   |   | 36 |   |   |   | 5.5 | % |

|                  |   | Six      Months Ended December 31, |   |
|-----------------------|--------|------------------------------------|--------|
|                  |   | 2007                               |   |   | 2006 |   |   | 2007      vs. 2006 |   |
|                  |   |                               |   |   |   |   |   |   |   |   |   |   |   | Increase      (Decrease) |   |
|                  |   |                               |   |   | %      of Net |   |   |   |   |   | %      of Net |   |   | Revenues |   |   | Units      Processed |   |
|                  |   | Amount                             |   |   | Revenues |   |   | Amount |   |   | Revenues |   |   | Amounts |   |   | Percent |   |   | Number |   |   | Percent |   |
|                  |   | (in      thousands)                |   |   |   |   |   |   |   |
| Product      revenues |   | $                                  | 907    |   |   |   | 4.4 | % |   | $ | 130 |   |   |   | 0.7 | % |   | $ | 777 |   |   |   | 597.7 | % |   |   | N/A |   |   |   | N/A |   |
| Coins                 |   |                               | 10,658 |   |   |   | 51.2 | % |   |   | 10,356 |   |   |   | 55.4 | % |   |   | 302 |   |   |   | 2.9 | % |   |   | (103 | ) |   |   | (13.5 | ) |
| Sportscards           |   |                               | 4,484  |   |   |   | 21.6 | % |   |   | 4,350 |   |   |   | 23.3 | % |   |   | 134 |   |   |   | 3.1 | % |   |   | 34 |   |   |   | 5.6 | % |
| Other      (1)        |   |                               | 4,740  |   |   |   | 22.8 | % |   |   | 3,855 |   |   |   | 20.6 | % |   |   | 885 |   |   |   | 23.0 | % |   |   | 30 |   |   |   | 21.3 | % |
| Net      Revenues     |   | $                                  | 20,789 |   |   |   | 100.0 | % |   | $ | 18,691 |   |   |   | 100.0 | % |   | $ | 2,098 |   |   |   | 11.2 | % |   |   | (39 | ) |   |   | (2.5 | %) |

| (1) | Consists      of autographs, stamps, currency, diamonds and colored gemstones, CCE      subscription business, our CFC dealer financing business, and our      collectibles convention business. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       |   | Three      Months Ended December 31, |      |   | Six      Months Ended December 31, |   |
|----------------------------|--------|--------------------------------------|-----------|--------|------------------------------------|--------|
|                       |   | 2007                                 |      |   | 2006                               |   |   | 2007 |   |   | 2006 |   |
|                       |   |                                 |      |   | Gross      Profit                  |   |   |   |   |   | Gross      Profit |   |   |   |   |   | Gross      Profit |   |   |   |   |   | Gross      Profit |   |
|                       |   | Amount                               |      |   | Margin                             |   |   | Amount |   |   | Margin |   |   | Amounts |   |   | Margin |   |   | Amount |   |   | Margin |   |
| Gross      profit-products |   | $                                    | 23,000    |   |                               |   | 2.8 | % |   | $ | 9,000 |   |   |   | 11.5 | % |   | $ | 86,000 |   |   |   | 9.5 | % |   |   | 30,000 |   |   |   | 23.1 | % |
| Gross      profit-services |   |                                 | 3,144,000 |   |                               |   | 34.4 | % |   |   | 4,417,000 |   |   |   | 50.7 | % |   |   | 8,706,000 |   |   |   | 43.8 | % |   |   | 9,938,000 |   |   |   | 53.5 | % |
| Gross      profit-totals   |   | $                                    | 3,167,000 |   |                               |   | 31.8 | % |   | $ | 4,426,000 |   |   |   | 50.3 | % |   | $ | 8,792,000 |   |   |   | 42.3 | % |   |   | 9,968,000 |   |   |   | 53.3 | % |

----

|                                |   | Three      Months Ended |      |   | Six      Months Ended |   |
|-------------------------------------|--------|-------------------------|-----------|--------|-----------------------|--------|
|                                |   | December      31,       |      |   | December      31,     |   |
|                                |   | 2007                    |      |   | 2006                  |   |   | 2007 |   |   | 2006 |   |
| Selling and marketing      expenses |   | $                       | 1,861,000 |   |                  | $      | 1,433,000 |   |   | $ | 3,879,000 |   |   | $ | 2,695,000 |   |
| Percent of net      revenue         |   |                    | 18.7      | %      |                  |   | 16.3 | % |   |   | 18.7 | % |   |   | 14.4 | % |

|                                     |   | Three      Months Ended |      |   | Six      Months Ended |   |
|------------------------------------------|--------|-------------------------|-----------|--------|-----------------------|--------|
|                                     |   | December      31,       |      |   | December      31,     |   |
|                                     |   | 2007                    |      |   | 2006                  |   |   | 2007 |   |   | 2006 |   |
| General      and administrative expenses |   | $                       | 3,729,000 |   |                  | $      | 3,681,000 |   |   | $ | 7,677,000 |   |   | $ | 7,660,000 |   |
| Percent      of net revenue              |   |                    | 37.4      | %      |                  |   | 41.9 | % |   |   | 36.9 | % |   |   | 41.0 | % |

----

|                              |   | Three      Months Ended |    |   | Six      Months Ended |   |
|-----------------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
|                              |   | December      31,       |    |   | December      31,     |   |
|                              |   | 2007                    |    |   | 2006                  |   |   | 2007 |   |   | 2006 |   |
| Amortization      and intangibles |   | $                       | 286,000 |   |                  | $      | 187,000 |   |   | $ | 556,000 |   |   | $ | 358,000 |   |
| Percent      of net revenue       |   |                    | 2.9     | %      |                  |   | 2.1 | % |   |   | 2.7 | % |   |   | 1.9 | % |

|                                     |   | Three      Months Ended |    |   | Six      Months Ended |   |
|------------------------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
|                                     |   | December      31,       |    |   | December      31,     |   |
| Included      In:                        |   | 2007                    |    |   | 2006                  |   |   | 2007 |   |   | 2006 |   |
| Cost      of revenues                    |   | $                       | 61,000  |   |                  | $      | 76,000 |   |   | $ | 122,000 |   |   | $ | 152,000 |   |
| Selling      and marketing expenses      |   |                    | -       |   |                  |   | 2,000 |   |   |   | (7,000 | ) |   |   | 3,000 |   |
| General      and administrative expenses |   |                    | 205,000 |   |                  |   | 142,000 |   |   |   | 397,000 |   |   |   | 265,000 |   |
|                                     |   | $                       | 266,000 |   |                  | $      | 220,000 |   |   | $ | 512,000 |   |   | $ | 420,000 |   |

| Fiscal      Year Ending June 30, |   | Amount |      |
|----------------------------------|--------|--------|-----------|
| 2008                             |   | $      | 490,000   |   |
| 2009                             |   |   | 596,000   |   |
| 2010                             |   |   | 256,000   |   |
| 2011                             |   |   | 120,000   |   |
| 2012                             |   |   | 15,000    |   |
|                             |   | $      | 1,477,000 |   |

----

|                        |   | Three      Months Ended |    |   | Six      Months Ended |   |
|-----------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
|                        |   | December      31,       |    |   | December      31,     |   |
|                        |   | 2007                    |    |   | 2006                  |   |   | 2007 |   |   | 2006 |   |
| Interest      Income, net   |   | $                       | 296,000 |   |                  | $      | 546,000 |   |   | $ | 740,000 |   |   | $ | 1,113,000 |   |
| Percent      of net revenue |   |                    | 3.0     | %      |                  |   | 6.3 | % |   |   | 3.6 | % |   |   | 6.0 | % |

|                              |   | Three      Months Ended |     |   | Six      Months Ended |   |
|-----------------------------------|--------|-------------------------|----------|--------|-----------------------|--------|
|                              |   | December      31,       |     |   | December      31,     |   |
|                              |   | 2007                    |     |   | 2006                  |   |   | 2007 |   |   | 2006 |   |
| Income      tax (benefit) expense |   | $                       | (962,000 | )      |                  | $      | (147,000 | ) |   | $ | (1,028,000 | ) |   | $ | 171,000 |   |
| Percent      of net revenue       |   |                    | (9.6     | %)     |                  |   | (1.7 | %) |   |   | (5.0 | %) |   |   | 0.9 | % |

|                                                                                                                                       |   | Three      Months Ended |         |   | Six      Months Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------------|--------|-----------------------|--------|
|                                                                                                                                       |   | December      31,       |         |   | December      31,     |   |
|                                                                                                                                       |   | 2007                    |         |   | 2006                  |   |   | 2007 |   |   | 2006 |   |
| Income      (loss) from discontinued operations,      net of gain on sales of discontinued      businesses (net of income      taxes) |   | $                       |   6,000 |   |                  | $      |    80,000 |   |   | $ | (4,000 | ) |   | $ |   91,000 |   |
| Percent      of net revenue                                                                                                                |   |                    | 0.1          | %      |                  |   | 0.9 | % |   |   | (0.1 | %) |   |   | 0.5 | % |

----

Liquidity and Capital Resources

----

| Fiscal      Year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|
| 2008    (remaining      6 months)                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $      | 912,000   |   |
| 2009                                                                                    |   |   | 2,131,000 |   |
| 2010                                                                                    |   |   | 1,243,000 |   |
| 2011                                                                                    |   |   | 792,000   |   |
| 2012                                                                                    |   |   | 789,000   |   |
| Thereafter                                                                                   |   |   | 3,802,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 9,669,000 |   |

Risks and Uncertainties That Could Affect Our FutureFinancial Performance

| ·   | changes      in general economic conditions or changes in conditions in the      collectibles or high-value assets markets in which we operate, such as a      possible decline in the popularity of some high-value collectibles or      assets, either of which could reduce the volume of authentication and      grading submissions and, therefore, the grading fees we      generate; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a      lack of diversity in our sources of revenues and, more particularly, our      dependence on collectible coin authentication and grading for a      significant percentage of our total revenues, which makes us more      vulnerable to adverse changes in economic conditions, including declines      in the value of precious metals or recessionary or other conditions that      could lead to reduced coin and other collectibles submissions that would,      in turn, result in reductions in our revenues and  income; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | our      dependence on certain key executives and collectibles experts, the loss of      the services of any of which could adversely affect our ability to obtain      authentication and grading submissions and, therefore, could harm our      operating results; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      fact that for the fiscal year ended June 30, 2007 and the six months ended      December 31, 2007, our five      largestcoin authentication and grading customers      accounted for approximately 14% and 10% of our net revenues, respectively,      which means that the loss of any of those customers, or a reduction in      their grading submissions to us, would result in a decline in our revenues      and a reduction in our operatingincome; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increased      competition from other collectibles’ authentication and grading companies      that could result in reductions in collectibles submissions to us or could      require us to reduce the prices we charge for our services, either of      which could result in reductions in our revenue and  income; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      risk that we will incur unanticipated liabilities under our authentication      and grading warranties that would increase our operating      expenses; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      risk that warranty claims will increase to a higher level than in the past      such that we will have to recognize additional warranty accruals in      anticipation of these claims and our ongoing warranty accrual rate will      increase to cover potential higher claims in the  future; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      risk that new collectibles service offerings and business initiatives,      such as autograph, stamp and paper currency grading services, diamonds and      colored gemstones, and our dealer financing program, will not gain market      acceptance or will be unsuccessful and will, as a result, increase our      operating expenses and reduce our overall profitability or cause us to      incur losses; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      risks involved in acquiring existing or commencing new authentication and      grading businesses, including the risks that we will be unable to      successfully integrate new businesses into our operations; that our new      businesses (in particular our diamond and colored gemstones businesses)      may not gain market acceptance; that business expansion may result in a      costly diversion of management time and resources from our existing      businesses and increase our operating expenses; that acquisition-related      goodwill and intangible assets may become impaired, which could adversely      impact our financial statements and results of operations; and that we      will not achieve adequate returns on the investments we may make in      acquiring other or establishing new businesses, any of which would harm      our profitability or cause us to incurlosses; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      risks that we will encounter problems with or failures of our computer      systems that would interrupt our services or result in loss of data that      we need for our business; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      potential of increased government regulation of our businesses that could      cause operating costs to increase. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

----

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUTMARKET RISK

----

CONTROLS AND PROCEDURES

| ITEM      1. | LEGALPROCEEDINGS |
|--------------|------------------|

----

| ITEM      1A. | RISK FACTORS |
|---------------|--------------|

UNREGISTERED SALES OF SECURITIESAND USE OF PROCEEDS

| ITEM 3. | SUBMISSION ON MATTERS TO A VOTE OF THE SECURITY      HOLDERS |
|--------------|--------------------------------------------------------------|

----

| Nominees                            |   | Votes      For |      |   | Votes      Withheld |   |
|-------------------------------------|--------|----------------|-----------|--------|---------------------|--------|
| A.      Clinton Allen               |   |           | 6,677,005 |   |                |   | 14,238 |   |
| Deborah      A. Farrington          |   |           | 6,676,970 |   |                |   | 14,273 |   |
| David      G. Hall                  |   |           | 6,672,194 |   |                |   | 19,049 |   |
| Michael      R. Haynes              |   |           | 6,671,944 |   |                |   | 19,299 |   |
| Michael      J. McConnell           |   |           | 6,675,845 |   |                |   | 15,398 |   |
| A.      J. “Bert” Moyer |   |           | 6,676,755 |   |                |   | 14,488 |   |
| Van      D. Simmons                 |   |           | 6,671,119 |   |                |   | 20,424 |   |
| Bruce      A. Stevens               |   |           | 6,676,755 |   |                |   | 14,488 |   |

|                      |   | Number      of Shares |      |   | Percent      ofShares      Voted |   |
|---------------------------|--------|-----------------------|-----------|--------|----------------------------------|--------|
| Voted      For            |   |                  | 6,544,411 |   |                             |   | 98 | % |
| Voted      Against        |   |                  | 11,686    |   |                             |   | 0 | % |
| Voted      as Abstentions |   |                  | 135,146   |   |                             |   | 2 | % |

| ITEM      6. | EXHIBITS |
|--------------|----------|

| (a)    | Exhibits:         |                                                                                                   |
|--------|-------------------|--------------------------------------------------------------------------------------------------------|
|   | Exhibit      31.1 | Certification      of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley Act of      2002 |
|   |              |                                                                                                   |
|   | Exhibit      31.2 | Certification      of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley Act of      2002 |
|   |              |                                                                                                   |
|   | Exhibit      32.1 | Chief      Executive Officer Certification Under Section 906 of the Sarbanes-Oxley      Act of 2002    |
|   |              |                                                                                                   |
|   | Exhibit      32.2 | Chief      Financial Officer Certification Under Section 906 of the Sarbanes-Oxley      Act of 2002    |

----

SIGNATURES

|                                                                                          |   | COLLECTORS      UNIVERSE, INC. |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------|
|                                                                                          |   |                           |
| Date:           February      11, 2008 |   | /s/      MICHAEL R. HAYNES     |
|                                                                                          |   | Michael      R. Haynes         |
|                                                                                          |   | Chief      Executive Officer   |

|                                                                                          |   | COLLECTORS      UNIVERSE, INC. |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------|
|                                                                                          |   |                           |
| Date:           February      11, 2008 |   | /s/      JOSEPH J. WALLACE     |
|                                                                                          |   | Joseph      J. Wallace         |
|                                                                                          |   | Chief      Financial Officer   |

----

|   | INDEX TO EXHIBITS |
|--------|-------------------|

| Number            | Description                                                                                            |
|-------------------|--------------------------------------------------------------------------------------------------------|
|              |                                                                                                   |
| Exhibit      31.1 | Certification      of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley Act of      2002 |
|              |                                                                                                   |
| Exhibit      31.2 | Certification      of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley Act of      2002 |
|              |                                                                                                   |
| Exhibit      32.1 | Chief      Executive Officer Certification Under Section 906 of the Sarbanes-Oxley      Act of 2002    |
|              |                                                                                                   |
| Exhibit      32.2 | Chief      Financial Officer Certification Under Section 906 of the Sarbanes-Oxley      Act of 2002    |
|              |                                                                                                   |

----