Interest Rate Fluctuations

        At June 30, 2007, approximately $1.0 million of our outstanding borrowings were subject to changes in interest rates; however, we do not use derivatives to manage this risk. This exposure is linked to the prime rate and LIBOR.

        Management believes that moderate changes in the prime rate or LIBOR would not materially affect our operating results or financial condition. For example, a 1.0% change in interest rates would result in an approximate $10,000 annual impact on pretax earnings (loss) based upon our outstanding borrowings at June 30, 2007.

Interest Rate Fluctuations

        At March 31, 2007, we did not have any outstanding borrowings subject to changes in interest rates. Borrowings under our Wachovia revolving line of credit will be subject to changes in interest rates. We presently do not use derivatives to manage this risk.

        Management believes that moderate changes in the prime rate would not materially affect our operating results or financial condition.

Interest Rate Fluctuations

At September 30, 2006, we do not have any outstanding borrowings subject to changes in interest rates.  Borrowings under our bank revolving line of credit will be subject to changes in interest rates.  We presently do not use derivatives to manage this risk.  This exposure is linked to the prime rate. 

Management believes that moderate changes in the prime rate would not materially affect our operating results or financial condition. 

Interest Rate Fluctuations.

At June 30, 2006, approximately $13.1 million of our outstanding borrowings are subject to changes in interest rates; however, we do not use derivatives to manage this risk.  This exposure is linked to the prime rate and LIBOR.

Management believes that moderate changes in the prime rate or LIBOR would not materially affect our operating results or financial condition.  For example, a 1.0% change in interest rates would result in an approximate $131,000 annual impact on pretax earnings (loss) based upon those outstanding borrowings at June 30, 2006.

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operating results or financial condition. A 1% increase in the prime rate or LIBOR would increase our annual interest expense by $115,000 based on the outstanding variable interest borrowings at March 31, 2006.

Interest Rate Fluctuations

At December 31, 2005, all of our outstanding bank borrowings are subject to changes in interest rates; however, we do not use derivatives to manage this risk.  This exposure is linked to the prime rate and LIBOR.

Management believes that moderate changes in the prime rate or LIBOR would not materially affect our operating results or financial condition.  For example, a 1.0% change in interest rates would result in an approximate $160,000 annual impact on pretax income (loss) based upon those outstanding borrowings at December 31, 2005.  To date we have not entered into interest rate swap agreements.

Interest Rate Fluctuations

At September 30, 2005, approximately $13,895,000 of our outstanding borrowings are subject to changes in interest rates; however, we do not use derivatives to manage this risk.  This exposure is linked to the prime rate and LIBOR.

Management believes that moderate changes in the prime rate or LIBOR would not materially affect our operating results or financial condition.  For example, a 1.0% change in interest rates would result in an approximate $139,000 annual impact on pretax income (loss) based upon those outstanding borrowings at September 30, 2005.

Interest Rate Fluctuations.

At June 30, 2005, approximately $916,000 of our outstanding borrowings are subject to changes in interest rates; however, we do not use derivatives to manage this risk.  This exposure is linked to the prime rate and LIBOR.  Subsequent to June 30, 2005, we financed the $8 million purchase price of Home Vision through additional borrowing under our revolving line of credit.

Management believes that moderate changes in the prime rate or LIBOR would not materially affect our operating results or financial condition.  For example, a 1.0% change in interest rates would result in an approximate $89,000 annual impact on pretax income (loss) based upon those outstanding borrowings at June 30, 2005 plus the $8 million borrowed to acquire Home Vision subsequent to the end of the quarter.

Interest Rate Fluctuations

At December 31, 2004, approximately $85,000 of our outstanding borrowings are subject to changes in interest rates; however, we do not use derivatives to manage this risk.  This exposure is linked to the prime rate and LIBOR.  Management believes that moderate changes in the prime rate or LIBOR would not materially affect our operating results or financial condition.  For example, a 1.0% change in interest rates would result in an approximate $1,000 annual impact on pretax income (loss) based upon those outstanding borrowings at December 31, 2004.