10-Q

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

or

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

For the transition period from _____ to _____ .

Commission File No. 0-147

HICKOK INCORPORATED
_____________________________________________________________
(Exact name of registrant as specified in its charter)

Ohio	34-0288470
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
10514 Dupont Avenue, Cleveland, Ohio	44108
(Address of principal executive offices)	(Zip Code)
(Registrant's telephone number, including area code)	(216) 541-8060

Indicate by check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes X No___

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer   [ ]	Small reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No_X_

As of August 7, 2015:  1,163,349 Hickok Incorporated Class A Common Shares and 474,866 Class B Common Shares were outstanding.

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements.

HICKOK INCORPORATED
CONSOLIDATED INCOME STATEMENTS
(Unaudited)

Three months ended
  June 30,  Nine months ended
    June 30, 

	2015	2014	2015	2014
Net Sales
Product Sales	$1,746,940	$2,074,295	$3,886,037	$4,112,374
Service Sales	57,674	56,117	171,977	184,747
Total Net Sales	1,804,614	2,130,412	4,058,014	4,297,121
Costs and Expenses
Cost of Product Sold	961,912	963,721	2,395,268	2,259,005
Cost of Service Sold	34,908	41,777	110,856	124,333
Product Development	245,794	243,600	742,239	727,810
Marketing and    Administrative Expenses	453,903	496,832	1,253,872	1,425,374
Interest Charges	171	2,691	470	2,691
Other (Income) Expense	(1,705)	(5,120)	(7,003)	(11,061)
Total Costs and Expenses	1,694,983	1,743,501	4,495,702	4,528,152
Income (Loss) before Provision for Income Taxes	109,631	386,911	(437,688)	(231,031)
Income (Recovery of) Taxes	-	-	-	-
Net Income (Loss)	$109,631	$386,911	$(437,688)	$(231,031)
Earnings per Common Share:
Net Income (Loss)	$.07	$.24	$(.27)	$(.14)
Earnings per Common Share
Assuming Dilution:
Net Income (Loss)	$.07	$.23	$(.27)	$(.14)
Dividends per Common Share	$ - 0 -	$ - 0 -	$ - 0 -	$ - 0 -

See Notes to Consolidated Financial Statements

HICKOK INCORPORATED
CONSOLIDATED BALANCE SHEET

   
 

	June 30,   2015  (Unaudited)	September 30,    2014   (Note)	June 30,    2014   (Unaudited)
Assets
Current Assets
Cash and Cash Equivalents	$364,649	$390,327	$129,731
Trade Accounts Receivable - Net	752,677	1,172,268	1,531,183
Notes Receivable - Current	-	-	-
Inventories	1,681,100	1,714,197	2,107,875
Prepaid Expenses	70,549	37,989	68,781
Total Current Assets	2,868,975	3,314,781	3,837,570
Property, Plant and Equipment
Land	233,479	233,479	233,479
Buildings	1,429,718	1,429,718	1,429,718
Machinery and Equipment	2,567,635	2,516,380	2,499,678
	4,230,832	4,179,577	4,162,875
Less: Allowance for Depreciation	3,849,691	3,800,551	3,801,592
Total Property - Net	381,141	379,026	361,283
Other Assets
Notes Receivable - Long-term	4,100	4,100	4,100
Deposits	1,750	1,750	1,750
Total Other Assets	5,850	5,850	5,850
Total Assets	$3,255,966	$3,699,657	$4,204,703

Note:  Amounts derived from audited financial statements previously filed with the Securities and Exchange Commission.

See Notes to Consolidated Financial Statements

 
 
 
 
 
 

			June 30,   2015  (Unaudited)	September 30, ____2014___ (Note)	June 30,    2014    (Unaudited)
Liabilities and Stockholders' Equity
Current Liabilities
Short-term Financing			$-	$-	$683,400
Convertible Notes Payable-related party			200,000	-	200,000
Trade Accounts Payable			173,103	145,557	203,356
Accrued Payroll & Related Expenses			149,335	132,719	116,458
Accrued Expenses			374,204	178,815	456,576
Accrued Taxes Other Than Income			37,445	48,342	25,839
Accrued Income Taxes			-	-	-
Total Current Liabilities			934,087	505,433	1,685,629
Long-Term Liabilities
Convertible Notes Payable-related party			-	200,000	-
Accrued expenses			-	235,200	-
Total Long-Term Liabilities			-	435,200	-
Stockholders' Equity
Class A, no par value; authorized			1,261,188	1,261,188	1,261,188
	10,000,000 shares; 1,163,349 shares outstanding (1,163,349 shares outstanding at September 30, 2014 and June 30, 2014) excluding 15,795 shares in treasury
Class B, no par value; authorized			474,866	474,866	474,866
		2,500,000 shares; 474,866 shares outstanding (474,866 shares outstanding at September 30, 2014 and June 30, 2014) excluding 667 shares in treasury
Preferred, no par value; authorized
	1,000,000 shares; no shares outstanding		-	-	-
Contributed Capital			1,488,560	1,488,017	1,487,474
Retained Earnings			(902,735)	(465,047)	(704,454)
Total Stockholders' Equity			2,321,879	2,759,024	2,519,074
Total Liabilities and  Stockholders' Equity			$3,255,966	$3,699,657	$4,204,703

HICKOK INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JUNE 30,
(Unaudited)

 

	2015	2014
Cash Flows from Operating Activities:
Cash received from customers	$4,477,605	$3,404,254
Cash paid to suppliers and employees	(4,452,731)	(4,986,377)
Interest paid	-	-
Interest received	703	518
Income taxes (paid) refunded	-	-
Net Cash Provided By (Used In) Operating Activities	25,577	(1,581,605)
Cash Flows from Investing Activities:
Capital expenditures	(51,255)	(110,916)
Net Cash Provided By (Used In) Investing Activities	(51,255)	(110,916)
Cash Flows from Financing Activities:
Short-term borrowing	-	683,400
Increase in Convertible Notes Payable	-	200,000
Net Cash Provided By (Used In) Financing Activities	-	883,400
Net increase (decrease) in cash and cash equivalents	(25,678)	(809,121)
Cash and cash equivalents at beginning of year	390,327	938,852
Cash and cash equivalents at end of third quarter	$364,649	$129,731
See Notes to Consolidated Financial Statements
	2015	2014
Reconciliation of Net Income (Loss) to Net Cash Provided By (Used In) Operating Activities:
Net Income (Loss)	$(437,688)	$(231,031)
Adjustments to reconcile Net Income (Loss)  to net cash provided by operating activities:
Depreciation	49,140	49,140
Non-cash share-based compensation expense	543	2,294
Changes in assets and liabilities:
Decrease (Increase) in trade accounts receivable	419,591	(892,867)
Decrease (Increase) in inventories	33,097	(518,059)
Decrease (Increase) in prepaid expenses	(32,560)	(36,439)
Increase (Decrease) in accounts payable	27,546	29,120
Increase (Decrease) in accrued payroll and          related expenses	16,616	(26,061)
Increase (Decrease) in accrued expenses and         accrued taxes other than income	(50,708)	42,298
Total Adjustments	463,265	(1,350,574)
Net Cash Provided By (Used In) Operating Activities	$25,577	$(1,581,605)

HICKOK INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
JUNE 30, 2015

1. Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ended September 30, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended September 30, 2014.

2. Inventories

Inventories are valued at the lower of cost or market and consist of the following:
 
   

	June 30,    2015	Sept. 30,    2014	June 30,    2014
Components	$1,059,014	$1,066,672	$916,362
Work-in-Process	475,436	521,424	1,035,529
Finished Product	146,650	126,101	155,984
	$1,681,100	$1,714,197	$2,107,875

The above amounts are net of reserve for obsolete inventory in the amount of $371,564, $363,500 and $817,000 for the periods ended June 30, 2015, September 30, 2014 and June 30, 2014 respectively.

3. Notes Receivable

The Company has a note receivable with a current employee at an interest rate of three percent per annum. The Company does not anticipate repayment within the next twelve months.

4. Convertible Notes Payable

Company issued a convertible note to Roundball in the amount of $466,879. In addition, Roundball, LLC had the right to cause the Company to borrow up to an additional $466,880 from Roundball, LLC. The note was unsecured, bore interest at a rate of 0.20% per annum and was set to mature on December 30, 2012.

The note was convertible by the Investor at any time into Class A Common Shares of the Company, at a conversion price of $1.85 per share, although up to no more than 504,735 Conversion Shares. The Company had the option to convert the note at the expiration date, if the investor had not during the course of the agreement. On December 30, 2011, Roundball converted $233,438 into Class A Common Shares of the Company. In addition, on August 20, 2012 Roundball converted the remaining $233,441 under the Convertible Loan Agreement into Class A Common Shares of the Company.

On December 30, 2012 management entered into an amended Convertible Loan Agreement with Roundball which may provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement was by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2012 to December 31, 2013 and modified the terms to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.24%.

In partial consideration for Amendment No. 1, the Company and Roundball entered into a Warrant Agreement, dated  December 30, 2012, whereby the Company issued a warrant to Roundball to purchase, at its option, up to 100,000 shares of Class A Common Stock of the Company at an exercise price of $2.50 per share, subject to certain anti-dilution and other adjustments. If not exercised, this warrant will expire on December 30, 2015. Roundball is an affiliate of Steven Rosen, a Director of the Company.

The Company used the Black-Scholes option pricing model to determine the fair value estimate for recognizing the cost of services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. The warrants are immediately exercisable and expire in December 2015. The fair value of the warrants issued was amortized over the one year amended convertible loan agreement period.

On December 30, 2013 management entered into Amendment No. 2 of the Convertible Loan Agreement with Roundball which continued to provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement was by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2013 to December 30, 2014 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.25%.

During fiscal year ended September 30, 2014, the Company borrowed $200,000 against this agreement. As of June 30, 2015, the outstanding balance on the Roundball convertible note was $200,000.

On December 31, 2014, management entered into Amendment No. 3 of the Convertible Loan Agreement with Roundball which continues to provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement is by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2014 to December 30, 2015 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.34% and to provide, subject to approval of the holders of two-thirds of the Class A Common Shares, for the issuance of up to an aggregate of 252,367 Class B Common Shares, which are entitled to three votes per share, upon conversion. The proposal to authorize the issuance of Class B Common Shares upon conversion of the convertible note did not pass by a vote of the holders of Class A Common Shares at the Annual Shareholders meeting held on April 2, 2015.

5. Short-term Financing

The Company had a credit agreement of $250,000 with Robert L. Bauman, one of its major shareholders who is also an employee of the Company. The agreement was to expire in April 2013 but was modified on December 31, 2012 to extend the maturity date to December 2013.

The agreement provided for a revolving credit facility of $250,000 with interest at 0.24% per annum and was unsecured and included a three year warrant for 100,000 shares of Class A common stock at a price of $2.50 per share. In addition, the agreement generally allowed for borrowing based on an amount equal to eighty percent of eligible accounts receivables or $250,000. The revolving line of credit was not extended.

In partial consideration for the original extension of the revolving credit facility the Company and Bauman entered into a Warrant Agreement, dated December 30, 2012 whereby the Company issued a warrant to Bauman to purchase, at his option, up to 100,000 shares of Class A Common Stock of the Company at an exercise price of $2.50 per share, subject to certain anti-dilution and other adjustments. If not exercised, this warrant will expire on December 30, 2015.

The Company used the Black-Scholes option pricing model to determine the fair value estimate for recognizing the cost of services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. The warrants are immediately exercisable and expire in December 2015. The fair value of the warrants issued was amortized over the one year credit agreement period.

6. Capital Stock, Treasury Stock, Contributed Capital and Stock Options Unissued shares of Class A common stock (947,233 shares) are reserved for the share-for-share conversion rights of the Class B common stock, stock options under the Directors Plans, conversion rights of the Convertible Promissory Note and available warrants.

On February 27, 2013, the Company's 2013 Omnibus Equity Plan was approved and adopted by an affirmative vote of a majority of the Company's Class A and Class B Shareholders.

The 2013 Omnibus Plan will provide the Company with the flexibility to grant a variety of share-based awards for covered employees, consultants and Directors. The 2013 Omnibus Plan provides for the grant of the following types of incentive awards: stock options, stock appreciation rights, restricted shares, restricted share units, performance shares and Class A Common Shares. Those who will be eligible for awards under the 2013 Omnibus Plan include employees who provide services to the Company and its affiliates, executive officers, non-employee Directors and consultants designated by the Compensation Committee. The Plan has 150,000 Class A Common Shares reserved for issuance. The Class A Common Shares may be either authorized, but unissued, common shares or treasury shares. No share-based awards have been granted under the 2013 Omnibus Equity Plan as of June 30, 2015. 

The Company's expired Outside Directors Stock Option Plans (collectively the "Directors Plans"), have provided for the automatic grant of options to purchase up to 20,000 shares of Class A Common Stock to members of the Board of Directors who are not employees of the Company, at the fair market value on the date of grant. Options for 20,000 Class A shares were outstanding at June 30, 2015 (22,000 shares at September 30, 2014 and 29,000 shares at June 30, 2014) at prices ranging from $2.925 to $11.00 per share. Options for 2,000 shares expired during the three month period ended March 31, 2015 at $6.45 per share. In addition, options for 2,000 shares expired during the three month period ended March 31, 2014 at $7.25 per share. All outstanding options under the expired Directors Plans become fully exercisable on March 8, 2015.

The following is a summary of the range of exercise prices for stock options outstanding and exercisable under the expired Directors Plans at June 30, 2015:

Directors Plans	Outstanding  Stock  Options	Weighted  Average  Share Price	Weighted  Average  Remaining  Life	Number of  Stock Options  Exercisable	Weighted  Average  Share  Price
Range of exercise prices:
$2.925 - 5.25	13,000	$3.28	5.1	13,000	$3.28
$6.00	3,000	$6.00	4.8	3,000	$6.00
$10.50 -11.00	4,000	$10.75	2.3	4,000	$10.75
	20,000	$5.18		20,000	$5.18

The Company accounts for Share-Based Payments under the modified prospective method for its stock options for both employees and non-employee Directors. Compensation cost for fixed based awards are measured at the grant date, and the Company uses the Black-Scholes option pricing model to determine the fair value estimates for recognizing the cost of employee and director services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. Employee stock options are immediately exercisable while Director's stock options are exercisable over a three year period. The fair value of stock option grants to Directors is amortized over the three year vesting period. During the three and the nine month periods ended June 30, 2015 and 2014 respectively $0 and $543; $543 and $2,294 was expensed as share-based compensation. The following weighted-average assumptions were used in the option pricing model for the three and nine month periods ended June 30, 2015 and 2014 respectively: a risk free interest rate of 5.0% and 5.0%; an expected life of 10 and 10 years; an expected dividend yield of 0.0% and 0.0%; and a volatility factor of .87 and .87.

7. Recently Issued Accounting Pronouncements

The Company did not incur any material impact to its financial condition or results of operations due to the adoption of any new accounting standards during the periods reported.

In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers.  The standard, issued as Accounting Standards Update (ASU) 2014-09, outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The core principle of this model is that “an entity recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.” The update is effective for financial statement periods beginning after December 15, 2016, with early adoption prohibited. However, the FASB currently has a proposal outstanding to defer the effective date by one year. The Company has not determined the impact of this pronouncement on its financial statements and related disclosure.

In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition, and as such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company is evaluating the potential impacts of the new standard on its existing stock-based compensation plans.

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, ASU 2014-15 requires that an entity’s management evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. ASU 2014-15 is effective for annual periods beginning after December 15, 2016 and for interim periods thereafter. The Company is evaluating the potential impacts of this new standard on its quarterly reporting process.

8. Earnings per Common Share

Earnings per common share information is computed on the weighted average number of shares outstanding during each period based on the provisions of FASB Codification ASC Topic 260, "Earnings per Share." The required reconciliations are as follows:
 

Three Months Ended
      June 30,  Nine Months Ended 
  June 30, 

	2015	2014	2015	2014
Basic Income (Loss) per Share
Income (Loss) available   to common stockholders	$109,631	$386,911	$(437,688)	$(231,031)
Shares denominator	1,638,215	1,638,215	1,638,215	1,638,215
Per share amount	$.07	$.24	$(.27)	$(.14)
Effect of Dilutive Securities
Average shares outstanding	1,638,215	1,638,215	1,638,215	1,638,215
Stock options	-*	27,906	-*	-*
	1,638,215	1,666,121	1,638,215	1,638,215
Diluted Income (Loss) per Share
Income (Loss) available   to common stockholders	$109,631	$386,911	$(437,688)	$(231,031)
Per share amount	$.07	$.23	$(.27)	$(.14)
* Net effect of stock options and warrants were antidilutive for the period.

 

Options and warrants to purchase 20,000 and 200,000 shares of common stock respectively during the third quarter and the first nine months of fiscal 2015 at prices ranging from $2.50 to $11.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's and warrant's effect was antidilutive or the exercise price was greater than the average market price of the common share.

In addition, conversion rights to purchase 252,367 shares of common stock during the third quarter and first nine months of fiscal 2015 at a price of $1.85 per share were not included in the computation of diluted earnings per share because the conversion rights of the Convertible Promissory Notes effect was antidilutive or the exercise price was greater than the average market price of the common share.

Options and warrants to purchase 29,000 and 200,000 shares of common stock respectively during the third quarter and the first nine months of fiscal 2014 at prices ranging from $2.50 to $11.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's and warrant's effect was antidilutive or the exercise price was greater than the average market price of the common share.

In addition, conversion rights to purchase 252,367 shares of common stock during the first nine months of fiscal 2014 at a price of $1.85 per share were not included in the computation of diluted earnings per share because the conversion rights of the Convertible Promissory Notes effect was antidilutive or the exercise price was greater than the average market price of the common share.

9. Segment and Related Information

The Company's three business units have a common management team and infrastructure that offer different products and services. The business units have been aggregated into two reportable segments: 1.) indicators and gauges and 2.) automotive related diagnostic tools and equipment.

Indicators and Gauges
This segment consists of products manufactured and sold primarily to companies in the aircraft and locomotive industry. Within the aircraft market, the primary customers are those companies that manufacture or service business, military and pleasure aircraft. Within the locomotive market, indicators and gauges are sold to both original equipment manufacturers and to operators of railroad equipment.

Automotive Diagnostic Tools and Equipment
This segment consists primarily of products designed and manufactured to support the testing or servicing of automotive systems using electronic means to measure vehicle parameters. These products are sold to OEM's and to the aftermarket using several brand names and a variety of distribution methods. Included in this segment are products used for state required testing of vehicle emissions.

Information by industry segment is set forth below:

       

Three Months Ended
         June 30,   Nine Months Ended
      June 30, 

	2015	2014	2015	2014
Net Revenue
Indicators and Gauges	$332,771	$460,749	$933,707	$1,211,350
Automotive Diagnostic  Tools and Equipment	1,471,843	1,669,663	3,124,307	3,085,771
	$1,804,614	$2,130,412	$4,058,014	$4,297,121
Income (Loss) before provision for Income Taxes
Indicators and Gauges	$54,783	$138,030	$119,379	$227,434
Automotive Diagnostic  Tools and Equipment	294,830	531,969	172,283	430,759
General Corporate Expenses	(239,982)	(283,088)	(729,350)	(889,224)
	$109,631	$386,911	$(437,688)	$(231,031)
Asset Information
Indicators and Gauges			$721,504	$800,751
Automotive Diagnostic Tools and Equipment			1,705,065	2,836,401
Corporate			829,397	567,551
			$3,255,966	$4,204,703
Geographical Information
Included in the consolidated financialstatements are the following amounts relatedto geographical locations:
Revenue:
United States	$1,739,642	$2,103,243	$3,935,224	$4,201,849
Australia	1,602	5,996	13,402	30,134
Canada	21,487	14,197	57,041	35,911
Mexico	7,283	6,976	17,747	25,288
China	29,657	-	29,657	-
Other foreign countries	4,943	-	4,943	3,939
	$1,804,614	$2,130,412	$4,058,014	$4,297,121

All export sales to Australia, Canada, Mexico, China and other foreign countries are made in United States of America Dollars.

10. Commitments and Contingencies

Legal Matters

The Company is the plaintiff in a suit pursuing patent infringement against a competitor in the emissions market. Management believes that it is not currently possible to estimate the impact, if any, that the ultimate resolution of this matter will have on the Company's results of operations, financial position or cash flows.

11. Subsequent Events

The Company has analyzed its operations subsequent to June 30, 2015 through the date the financial statements were submitted to the Securities and Exchange Commission and has determined that no subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes to the consolidated financial statements.

12. Business Condition and Management Plan

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has suffered recurring losses from operations during the past several years due primarily to decreasing sales of existing product lines and a general economic downturn in all markets the Company serves. The resulting lower sales levels have impacted the Company's accounts receivable and cash balances, if this situation continues it may prevent the Company from generating sufficient cash flow to sustain its operations.

The ability of the Company to continue as a going concern is dependent on improving the Company's profitability and cash flow and securing additional financing if needed. Management continues to review and revise its strategic plan and believes in the viability of its strategy to increase revenues and profitability through increased sales of existing products and the introduction of new products to the market place. Management believes that the actions presently being taken by the Company will provide the stimulus for it to continue as a going concern, however, because of the inherent uncertainties there can be no assurances to that effect. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Additionally, the Company has net operating loss carryforwards, currently valued at $0, that offset taxable income.

In addition, on December 31, 2014, management entered into an amended unsecured convertible loan agreement which may provide approximately $467,000 of liquidity to meet on going working capital requirements. The unsecured convertible loan agreement is with a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement and continues to allow $250,000 of borrowing on the agreement at the Company's discretion. This facility is available through December 2015. The Company borrowed $200,000 on the loan agreement during the fiscal year ended September 30, 2014 and it is outstanding at June 30, 2015.

Management’s strategic plan to increase revenues and profitability through increased sales of existing products, the introduction of new products to the market place, the Company's continued efforts on several large potential orders with OEM's, and other additional short-term or long-term financing is expected to provide the Company with the needed working capital for the next twelve months.

13. Potential Acquisition

The Company is engaged in discussions with First Francis Company, Inc., an entity affiliated with two directors of Hickok Incorporated, concerning a potential acquisition of Federal Hose LLC, a wholly owned subsidiary of First Francis. The Company has signed a non-binding Letter of Intent with First Francis and the terms of the potential transaction are still being negotiated.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations.

Results of Operations, Third Quarter (April 1, 2015 through June 30, 2015)
Fiscal 2015 Compared to Third Quarter Fiscal 2014
-------------------------------------------------------------------------------------

Reportable Segment Information

The Company has determined that it has two reportable segments: 1) indicators and gauges and 2) automotive related diagnostic tools and equipment. The indicators and gauges segment consists of products manufactured and sold primarily to companies in the aircraft and locomotive industry. Within the aircraft market, the primary customers are those companies that manufacture or service business, military and pleasure aircraft. Within the locomotive market, indicators and gauges are sold to original equipment manufacturers, servicers of locomotives and operators of railroad equipment. Revenue in this segment was $332,771 and $460,749 for the third quarter of fiscal 2015 and fiscal 2014, respectively, and $933,707 and $1,211,350 for the first nine months of fiscal 2015 and fiscal 2014, respectively. The decreases were primarily the result of decreased customer orders of government funded programs for the military.

The automotive diagnostic tools and equipment segment consists primarily of products designed and manufactured to support the testing or servicing of automotive systems using electronic means to measure vehicle parameters. These products are sold to OEM's and to the aftermarket using several brand names and a variety of distribution methods. Included in this segment are products used for state required testing of vehicle emissions. Revenue in this segment was $1,471,843 and $1,669,663 for the third quarter of fiscal 2015 and fiscal 2014, respectively, and $3,124,307 and $3,085,771 for the first nine months of fiscal 2015 and fiscal 2014, respectively. Increased sales volume in both fiscal years over the recent past was primarily due to large orders from Tier 1 OEM suppliers.

Results of Operations

Product sales for the quarter ended June 30, 2015 were $1,746,940 versus $2,074,295 for the quarter ended June 30, 2014. The 16% decrease in product sales during the current quarter of approximately $327,000 was volume related due primarily to decreased sales of automotive diagnostic testing products to OEM's of approximately $341,000. Sales of aftermarket products andemission products increased during the current quarter by approximately $2,000 and $119,000 respectively. In addition, sales of indicator products decreased during the current quarter by approximately $107,000. Product sales for the quarter ended June 30, 2015 benefited from two moderate size orders from a Tier 1 Supplier while product sales for the prior year third quarter benefited from a single large order. Product sales are expected to increase moderately during the fourth quarter of the fiscal year due to the receipt a large order received in June, new product introductions and to anticipated improved sales in other markets the Company serves. 

Service sales for the quarter ended June 30, 2015 were $57,674 versus $56,117 for the quarter ended June 30, 2014. The current level of service sales related to product repair sales is expected to continue in the fourth quarter of the fiscal year.

Cost of product sold in the third quarter of fiscal 2015 was $961,912 (55.1% of product sales) as compared to $963,721 (46.5% of product sales) in the third quarter of 2014. The percentage increase in the cost of product sold was due primarily to a change in product mix. The current cost of product sold percentage is expected to decrease moderately during the fourth quarter of the fiscal year.

Cost of service sold for the quarter ended June 30, 2015 was $34,908 (60.5% of service sales) as compared to $41,777 (74.4% of service sales) in the quarter ended June 30, 2014. The percentage decrease was due primarily to the product specifics of chargeable repairs and a decrease in warranty repairs in the current quarter. The current cost of services sold percentage is anticipated to continue in the fourth quarter of the fiscal year.

Product development expenses were $245,794 in the third quarter of fiscal 2015 (14.1% of product sales) as compared to $243,600 (11.7% of product sales) in the third quarter of fiscal 2014. The percentage increase was due primarily to lower product sales during the current quarter. The dollar increase was due primarily to an increase in labor costs of approximately $7,000 offset in part by a decrease in research and experimental material of approximately $5,000. The current level of product development expenses is expected to continue in the fourth quarter of the fiscal year. Management believes the existing resources will be sufficient to continue to develop identified new products for both OEM and Aftermarket customers.

Marketing and administrative expenses were $453,903 (25.2% of total sales) in the third quarter of fiscal 2015 versus $496,832 (23.3% of total sales) for the same period a year ago. Marketing expenses were approximately $212,000 in the third quarter of fiscal 2015 versus $211,000 for the same period a year ago. Within marketing expenses, advertising expense, credit and collection expense, commission expense, promotion expense, labor costs and travel expense increased by approximately $9,000, $7,000, $7,000, $4,000, $2,000 and $2,000 respectively. These increases were offset in part by a decrease in royalty expense and outside consulting expense of approximately $28,000 and $2,000 respectively. Administrative expenses were approximately $242,000 in the third quarter of fiscal 2015 versus $285,000 for the same period a year ago. Within administrative expenses, professional fees, rent machinery and equipment, and data processing expense decreased by approximately $40,000, $4,000 and $1,000 respectively. These decreases were offset in part by an increase in labor costs, repairs and maintenance computer equipment and travel expense of approximately $2,000, $1,000 and $1,000. The current level of marketing and administrative expenses is expected to increase slightly during the fourth quarter.

Interest expense was $171 in the third quarter of fiscal 2014 which compares with $2,691 in the third quarter of fiscal 2014. Interest expense for the current quarter was due primarily to the borrowing on the convertible note payable. Interest expense for the prior year third quarter was due primarily to short-term borrowing on notes from a major shareholder who is also an employee and to a lesser extent to the borrowing available on the convertible note payable. The current level of interest expense is expected to continue during the fourth quarter of the fiscal year.

Other income was $1,705 in the third quarter of fiscal 2015 which compares with $5,120 in the third quarter of fiscal 2014. Other income consists primarily of the proceeds from the sale of scrap metal shavings, purchase discounts and interest income on cash and cash equivalents invested. The decrease was due primarily to a lower level of scrap metal sales during the current quarter. The current level of other income is expected to continue during the fourth quarter

Income taxes in the third quarter of fiscal 2015 and 2014 was $0. In the third quarter of fiscal 2015 and 2014 income taxes were calculated at an effective tax rate of 37% offset by deferred taxes, specifically net operating loss carryforwards. 

The net income in the third quarter of fiscal 2015 was $109,631 which compares with net income of $386,911 in fiscal 2014. The decrease in net income for the current quarter was the result of a lower sales volume.

Unshipped customer orders as of June 30, 2015 were $1,391,000 versus $1,349,000 at June 30, 2014. The $42,000 increase was due primarily to increased orders for diagnostic products to automotive OEM's of approximately $32,000 and indicator products of approximately $34,000, offset in part by a decrease in orders for aftermarket products of approximately $24,000. The Company anticipates that approximately 86% of the current backlog will be shipped in the last quarter of fiscal 2015.

Results of Operations, Nine Months Ended June 30, 2015
Compared to Nine Months Ended June 30, 2014

Product sales for the nine months ended June 30, 2015 were $3,886,037 versus $4,112,374 for the same period in fiscal 2014. The decrease in product sales during the first nine months of the current fiscal year of approximately $226,000 was volume related due to lower sales of automotive diagnostic testing products, primarily, automotive diagnostic testing products to OEM's of approximately $281,000 and emission products of approximately $8,000. These decreases were offset by an increase in aftermarket product sales of approximately $290,000. The increase in aftermarket sales was primarily the result of new product introductions. In addition, sales of indicator products decreased by approximately $227,000. The decrease in product sales to OEM's is due to the current year benefiting from two moderate size orders for a Tier 1 OEM supplier shipping during the first nine months of fiscal 2015. Fiscal 2014 benefited from a single larger order for a Tier 1 OEM supplier which began shipping during the third quarter of fiscal 2014. The decrease in indicator sales during the first nine months of the current year was primarily the result of decreased customer orders of government funded programs for the military. Management anticipates product sales for the fourth quarter to increase moderately.

Service sales for the nine months ended June 30, 2015 were $171,977 compared with $184,747 for the same period in fiscal 2014. The decrease was volume related and due primarily to a lower sales volume for chargeable repairs. The current level of service sales related to product repair sales is expected to continue in the last three months of the fiscal year.

Cost of product sold was $2,395,268 (61.6% of product sales) compared with $2,259,005 (54.9% of product sales) for the nine months ended June 30, 2014. The dollar and percentage increase in the cost of product sold was due to higher costs associated with new product introductions and lower sales volume in the current fiscal year. The current cost of product sold percentage is expected to decrease moderately during the fourth quarter of the fiscal year.

Cost of service sold was $110,856 (64.5% of service sales) compared with $124,333 (67.3% of service sales) for the nine months ended June 30, 2014. The dollar and percentage decrease was due primarily to the product specifics of chargeable repairs and a decrease in warranty repairs. The cost of services sold percentage is expected to continue in the fourth quarter of the fiscal year.

Product development expenses were $742,239 (19.1% of product sales) compared to $727,810 (17.7% of product sales) for the nine months ended June 30, 2014. The percentage increase was due primarily to lower product sales during the current nine months of fiscal 2015. The dollar increase was due primarily to an increase in labor costs of approximately $20,000 offset in part by a decrease in research and experimental material of approximately $5,000. The current level of product development expenditures is expected to continue for the fourth quarter of the fiscal year. Management believes the existing and planned resources will be sufficient to continue to develop identified new products for both OEM and Aftermarket customers.

Marketing and administrative expenses were $1,253,872 for the nine months ended June 30, 2015 (30.9% of total sales) versus $1,425,374 (33.2% of total sales) for the nine months ended June 30, 2014. Marketing expenses were approximately $518,000 during the first nine months of the current fiscal year versus $528,000 for the same period a year ago. Within marketing expenses, decreases were primarily in royalty expense and outside consulting expense of approximately $44,000 and $6,000 respectively. These decreases were offset in part by increases in credit and collection expense, commission expense, labor costs, advertising expense, travel expense and promotion expense of approximately $13,000, $9,000, $7,000, $6,000, $4,000 and $2,000 respectively. Administrative expenses were approximately $736,000 during the first nine months of the current fiscal year versus $897,000 for the same period a year ago. The dollar decrease during the first nine months of the current fiscal year was due primarily to decreases in professional fees, rent machinery and equipment and data processing expenses of approximately $160,000, $8,000 and $4,000 respectively. These decreases were offset in part by increases in labor costs, repairs and maintenance machinery and equipment, and travel expense of approximately $8,000, $5,000 and $1,000 respectively. The current level of marketing and administrative expenses are expected to increase slightly for the remainder of the fiscal year.

Interest expense was $470 for the nine months ended June 30, 2015, and $2,691 for the same period in 2014. Interest expense for the current year was due primarily to the borrowing available on the convertible note payable. Interest expense for the prior year year was due primarily to short-term borrowing on notes from a major shareholder who is also an employee and to a lesser extent to the borrowing available on the convertible note payable. The current level of interest expense is expected to continue during the fourth quarter of the fiscal year.

Other income of $7,003 compares with other income of $11,061 in the same period last year. Other income consists primarily of the proceeds from the sale of scrap metal shavings, purchase discounts and interest income on cash and cash equivalents invested. The decrease was due primarily to a decrease in the sale of scrap metal shavings of approximately $3,700 during the current year nine month period. The current level of other income is expected to continue for the fourth quarter of fiscal 2015.

Income taxes during the first nine months of fiscal 2015 was $0 which compares with income taxes of $0 in the first nine months of fiscal 2014. In the first nine months of fiscal 2015 and 2014 recovery of income taxes was calculated at an effective tax rate of 37% offset by a increase in the valuation allowance netting to $0. 

The net loss for the nine months ended June 30, 2015 was $437,688 which compares with a net loss of $231,031 for the nine months ended June 30, 2014. The increased net loss for the first nine months of fiscal 2015 was primarily the result of a lower sales volume.

Liquidity and Capital Resources

Total current assets were $2,868,975, $3,314,781 and $3,837,570 at June 30, 2015, September 30, 2014 and June 30, 2014, respectively. The decrease of approximately $969,000 from June to June is due primarily to the decrease in accounts receivable and inventory of approximately $779,000 and $427,000 respectively, offset in part by an increase in cash and cash equivalents and prepaid expenses of approximately $235,000 and $2,000 respectively. The decrease in accounts receivable combined with the decrease in inventory was due primarily to the collection of the accounts receivable and the completion of the large OEM orders during the period. The increase in cash and cash equivalents was due to the collection of the accounts receivable from the moderate size OEM orders. The decrease in current assets from September to June of approximately $446,000 was due primarily to the decrease in accounts receivable, inventory and cash and cash equivalents of approximately $420,000, $33,000 and $26,000 respectively, offset by an increase in prepaid expenses of approximately $33,000. The decrease in inventory was due primarily to the completion of the moderate size OEM orders during the period. The decrease in accounts receivable was due to the decrease in the sales volume and the collection of the accounts receivable from the moderate size OEM orders during the period Prepaid expenses increased during the period due to timing.

Working capital as of June 30, 2015 amounted to $1,934,888 as compared with $2,151,941 a year earlier. Current assets were 3.1 times current liabilities compared to 2.3 a year ago. The quick ratio was 1.2 compared to 1.0 a year ago. 

Internally generated funds during the nine months ended June 30, 2015 were a positive $25,577 and were not adequate to fund the Company's primary non-operating cash requirements consisting of capital expenditures of $51,255. The primary reason for the positive cash flow from operations was the decrease in accounts receivable and inventory due to the completion of the moderate size orders received during the period. The Company does anticipate additional capital expenditures during fiscal 2015 of approximately $50,000 primarily to continue the upgrade and replacement of the Company's IT infrastructure. The Company believes that cash and cash equivalents, together with funds anticipated to be generated by operations in addition to available short-term or long-term financing will provide adequate funding of the Company's working capital needs.

Shareholders' equity during the nine months ended June 30, 2015 decreased by $437,145 which was the net loss during the period of $437,688 and share-based compensation expense of $543.

Whenever there may be a requirement to increase inventory in fiscal 2015, there will be a negative but temporary impact on liquidity. Management implemented expense reductions in response to the economic downturn and uncertainty in the markets the Company serves. These expense reductions began in fiscal 2009 and have continued through fiscal 2015. The Company has reduced headcount, product development, and marketing, administrative and sales related expenses at points during this expense reduction program in order to appropriately manage its working capital.

In December 2014, management entered into Amendment No. 3 of the Convertible Loan Agreement which may provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement is between the Company and a major shareholder who is also a Director, as discussed in Note 4 to the Company's financial statements. This amended agreement modified the terms of the previously amended agreement by modifying the terms and extending the due date of the loan agreement from December 30, 2014 to December 30, 2015 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion. During fiscal 2014, the Company borrowed $200,000 against this facility and at June 30, 2015 this balance is outstanding.Management’s strategic plan to increase revenues and profitability through increased sales of existing products, the introduction of new products to the market place, the Company's continued efforts on several large potential orders with OEMs, and other additional short-term or long-term financing is expected to provide the Company with the needed working capital for the next twelve months. In addition, the Company received an additional large order for approximately $957,000.

Discussions Regarding Potential Acquisition

The Company is engaged in discussions with First Francis Company, Inc., an entity affiliated with Edward F. Crawford and Matthew V. Crawford, directors of the Company, concerning a potential acquisition of Federal Hose LLC, a wholly owned subsidiary of First Francis. The Company has signed a non-binding Letter of Intent with First Francis under the terms of which it would acquire all of the membership interests of Federal Hose in exchange for an aggregate of (i) 911,250 of the Company’s Class A Common Shares; (ii) 303,750 of the Company's Class B Common Shares; (iii) $4,268,662 in a note to be issued by the Company, which will rank pari passu with its existing indebtedness, bear interest at an annual rate of 4% payable quarterly, subject to redemption over a mandatory 10-year amortization schedule and required to be fully redeemed within six years of their issuance date. The Company will not incur any additional debt greater than $250,000 without the Note Holder’s approval.

Information concerning this prospective transaction constitutes forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. With respect to statements relating to this proposed transaction, such uncertainties include, among other things, the fact that no agreement has been reached between the parties with respect to the terms of the proposed transaction, and the fact that any such transaction would be subject to a number of conditions precedent, including the negotiation of a satisfactory purchase agreement, authorization by the Board of Directors of the Company, receipt of third party consents, and the satisfaction of other customary conditions precedent. In addition, shareholder approval of the transaction will be required including, that Class B Common Shares are proposed to be issued which requires a separate approval of the holders of two-thirds of the Company’s Class A Shares. We cannot assure you that any agreement will be reached with respect to the transaction or as to the timing or terms thereof.

Critical Accounting Policies

Our critical accounting policies are as presented in Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K for the year ended September 30, 2014.

Forward-Looking Statements

The foregoing discussion includes forward-looking statements relating to the business of the Company. These forward-looking statements, or other statements made by the Company, are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors (including, but not limited to, those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. As a result, actual results of the Company could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) the Company's dependence upon a limited number of customers, (b) the highly competitive industry in which the company operates, which includes several competitors with greater financial resources and larger sales organizations, (c) the acceptance in the marketplace of new products and/or services developed or under development by the Company including automotive diagnostic products and indicating instrument products, (d) the ability of the Company to further establish distribution and a customer base in the automotive aftermarket, (e) the Company's ability to capitalize on market opportunities including state automotive emissions programs and OEM tool programs and (f) the Company's ability to obtain cost effective financing.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Market Risk

The Company is exposed to certain market risks from transactions that are entered into during the normal course of business. The Company has not entered into derivative financial instruments for trading purposes. The Company's primary market risk is exposure related to interest rate risk. The Company's only debt subject to interest rate risk during the current quarter was the funds available from the convertible note agreement. The Company had an outstanding balance on the convertible note at June 30, 2015, of $200,000 which is subject to a fixed rate of interest of 0.34%. As a result, the Company believes that the market risk relating to interest rate movements is minimal. 

Item 4. Controls and Procedures.

As of June 30, 2015, an evaluation was performed, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer along with the Company's Vice President, Finance and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based upon that evaluation, the Company's management, including the Chief Executive Officer along with the Company's Vice President, Finance and Chief Financial Officer, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2015 in ensuring that information required to be disclosed by the Company in the reports it files and submits under the Exchange Act is (1) recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms, and (2) is accumulated and communicated to the Company's management, including its principal executive and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. There were no changes in the Company's internal controls over financial reporting during the third fiscal quarter ended June 30, 2015 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II.  OTHER INFORMATION

Item 1. Legal Proceedings.

The Company is the plaintiff in a suit pursuing patent infringement against a competitor in the emissions market. There have been several legal developments in this legal proceeding since the filing of Form 10-K for fiscal 2014 however it is still difficult to access the status of the proceedings or probable outcomes. Management believes that it is not currently possible to estimate the impact, if any, that the ultimate resolution of the patent infringement matter will have on the Company's results of operations, financial position or cash flows.

Item 6. Exhibits.

Exhibit No.	Description
11	Statement Regarding Computation of Earnings Per share and Common Share Equivalents
31.1	Rule 13a-14(a)/15d-14(a) Certification by the Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer
32.1	Certification by the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification by the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS**	XBRL Instance
101.SCH**	XBRL Taxonomy Extension Schema
101.CAL**	XBRL Taxonomy Extension Calculation
101.DEF**	XBRL Taxonomy Extension Definition
101.LAB**	XBRL Taxonomy Extension Labels
101.PRE**	XBRL Taxonomy Extension Presentation

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		HICKOK INCORPORATED (Registrant)
Date: August 14, 2015	/s/ R. L. Bauman
	R. L. Bauman, Chief Executive Officer, President, and Treasurer
Date: August 14, 2015	/s/ G. M. Zoloty
	G. M. Zoloty, Chief Financial Officer

EX-11

FORM 10-Q

EXHIBIT 11

HICKOK INCORPORATED
CONSOLIDATED STATEMENT OF COMPUTATION OF EARNINGS
PER COMMON SHARE AND COMMON SHARE EQUIVALENTS

Three Months Ended	Nine Months Ended
June 30,	June 30,
2015           2014	2015           2014

NET INCOME Net Income (Loss) applicable to common shares for basic earnings per share	$109,631	$386,911	$(437,688)	$(231,031)
Net Income (Loss) applicable to common shares for diluted earnings per share	$109,631	$386,911	$(437,688)	$(231,031)
SHARES OUTSTANDING Weighted average shares for basic earnings per share	1,638,215	1,638,215	1,638,215	1,638,215
Net effect of dilutive stock options - based on the treasury  stock method using year-end market price, if higher than average market price	-*	27,906	-*	-*
Total shares for diluted earnings per share	1,638,215	1,666,121	1,638,215	1,638,215
Basic Earnings Per Common Share	$.07	$.24	$(.27)	$(.14)
Diluted Earnings Per Common Share	$.07	$.23	$(.27)	$(.14)

 *  Net effect of stock options was antidilutive for the period.
 
 
 
 
 
 
 

EX-31

Form 10-Q

Exhibit 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Robert L. Bauman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hickok Incorporated (the "registrant");
    

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
    

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
    

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

   a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
   
   b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
   
   c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
   
   d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
   
   

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:

/s/ R. L. Bauman

R. L. Bauman

Chief Executive Officer

August 14, 2015

EX-31

Form 10-Q

Exhibit 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Gregory M. Zoloty, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hickok Incorporated (the "registrant");
    

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
    

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
    

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

   a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
   
   b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
   
   c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
   
   d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
   
   

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:

/s/ G. M. Zoloty

G. M. Zoloty

Vice President, Finance
and Chief Financial Officer

August 14, 2015

EX-32

Form 10-Q

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Hickok Incorporated (the "Company") on form 10-Q for the period ending June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Robert L. Bauman, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ R. L. Bauman

R. L. Bauman

Chief Executive Officer

August 14, 2015

EX-32

Form 10-Q

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Hickok Incorporated (the "Company") on Form 10-Q for the period ending June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Gregory M. Zoloty, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ G. M. Zoloty

G. M. Zoloty

Chief Financial Officer

August 14, 2015

XML

Note 9 - Information by Industry Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Indicators and Gauges [Member]
Net Sales
Revenue	$ 332,771	$ 460,749	$ 933,707	$ 1,211,350
Income (Loss) before provision for Income Taxes
Income (Loss) before provision for Income Taxes	54,783	138,030	119,379	227,434
Asset Information
Assets	721,504	800,751	721,504	800,751
Revenue:
Revenue	332,771	460,749	933,707	1,211,350
Automotive Diagnostic Tools and Equipment [Member]
Net Sales
Revenue	1,471,843	1,669,663	3,124,307	3,085,771
Income (Loss) before provision for Income Taxes
Income (Loss) before provision for Income Taxes	294,830	531,969	172,283	430,759
Asset Information
Assets	1,705,065	2,836,401	1,705,065	2,836,401
Revenue:
Revenue	1,471,843	1,669,663	3,124,307	3,085,771
Corporate Segment [Member]
Income (Loss) before provision for Income Taxes
Income (Loss) before provision for Income Taxes	(239,982)	(283,088)	(729,350)	(889,224)
Asset Information
Assets	829,397	567,551	829,397	567,551
UNITED STATES
Net Sales
Revenue	1,739,642	2,103,243	3,935,224	4,201,849
Revenue:
Revenue	1,739,642	2,103,243	3,935,224	4,201,849
AUSTRALIA
Net Sales
Revenue	1,602	5,996	13,402	30,134
Revenue:
Revenue	1,602	5,996	13,402	30,134
CANADA
Net Sales
Revenue	21,487	14,197	57,041	35,911
Revenue:
Revenue	21,487	14,197	57,041	35,911
MEXICO
Net Sales
Revenue	7,283	6,976	17,747	25,288
Revenue:
Revenue	7,283	$ 6,976	17,747	$ 25,288
CHINA
Net Sales
Revenue	29,657		29,657
Revenue:
Revenue	29,657		29,657
Other Foreign Countries [Member]
Net Sales
Revenue	4,943		4,943	$ 3,939
Revenue:
Revenue	4,943		4,943	3,939
Revenue	1,804,614	$ 2,130,412	4,058,014	4,297,121
Income (Loss) before provision for Income Taxes	109,631	386,911	(437,688)	(231,031)
Assets	3,255,966	4,204,703	3,255,966	4,204,703
Revenue	$ 1,804,614	$ 2,130,412	$ 4,058,014	$ 4,297,121

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Note 3 - Notes Receivable (Details Textual)	9 Months Ended
	Jun. 30, 2015
Unsecured Note Receivable Interest Rate	3.00%

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Note 4 - Convertible Notes Payable

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Debt Disclosure [Text Block]

4.

Convertible Notes Payable

Company issued a convertible note to Roundball in the amount of $466,879. In addition, Roundball, LLC had the right to cause the Company to borrow up to an additional $466,880 from Roundball, LLC. The note was unsecured, bore interest at a rate of 0.20% per annum and was set to mature on December 30, 2012.

The note was convertible by the Investor at any time into Class A Common Shares of the Company, at a conversion price of $1.85 per share, although up to no more than 504,735 Conversion Shares. The Company had the option to convert the note at the expiration date, if the investor had not during the course of the agreement. On December 30, 2011, Roundball converted $233,438 into Class A Common Shares of the Company. In addition, on August 20, 2012 Roundball converted the remaining $233,441 under the Convertible Loan Agreement into Class A Common Shares of the Company.

On December 30, 2012 management entered into an amended Convertible Loan Agreement with Roundball which may provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement was by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2012 to December 31, 2013 and modified the terms to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.24%.

In partial consideration for Amendment No. 1, the Company and Roundball entered into a Warrant Agreement, dated  December 30, 2012, whereby the Company issued a warrant to Roundball to purchase, at its option, up to 100,000 shares of Class A Common Stock of the Company at an exercise price of $2.50 per share, subject to certain anti-dilution and other adjustments. If not exercised, this warrant will expire on December 30, 2015. Roundball is an affiliate of Steven Rosen, a Director of the Company.

The Company used the Black-Scholes option pricing model to determine the fair value estimate for recognizing the cost of services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. The warrants are immediately exercisable and expire in December 2015. The fair value of the warrants issued was amortized over the one year amended convertible loan agreement period.

On December 30, 2013 management entered into Amendment No. 2 of the Convertible Loan Agreement with Roundball which continued to provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement was by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2013 to December 30, 2014 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.25%.

During fiscal year ended September 30, 2014, the Company borrowed $200,000 against this agreement. As of June 30, 2015, the outstanding balance on the Roundball convertible note was $200,000.

On December 31, 2014, management entered into Amendment No. 3 of the Convertible Loan Agreement with Roundball which continues to provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement is by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2014 to December 30, 2015 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.34% and to provide, subject to approval of the holders of two-thirds of the Class A Common Shares, for the issuance of up to an aggregate of 252,367 Class B Common Shares, which are entitled to three votes per share, upon conversion. The proposal to authorize the issuance of Class B Common Shares upon conversion of the convertible note did not pass by a vote of the holders of Class A Common Shares at the Annual Shareholders meeting held on April 2, 2015.

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Note 6 - Summary of Expired Director Plans (Details) - Jun. 30, 2015 - $ / shares	Total
Exercise Price Range 1 [Member]
Range of exercise price, lower limit (in dollars per share)	$ 2.925
Range of exercise price, upper limit (in dollars per share)	$ 5.25
Outstanding stock options (in shares)	13,000
Outstanding, weighted average share price (in dollars per share) (in dollars per share)	$ 3.28
Weighted average remaining life	5 years 36 days
Number of stock options exercisable (in shares)	13,000
Exercisable, weighted average share price (in dollars per share)	$ 3.28
Exercise Price Range 2 [Member]
Range of exercise price, lower limit (in dollars per share)	$ 6
Range of exercise price, upper limit (in dollars per share)
Outstanding stock options (in shares)	3,000
Outstanding, weighted average share price (in dollars per share) (in dollars per share)	$ 6
Weighted average remaining life	4 years 292 days
Number of stock options exercisable (in shares)	3,000
Exercisable, weighted average share price (in dollars per share)	$ 6
Exercise Price Range 3 [Member]
Range of exercise price, lower limit (in dollars per share)	10.50
Range of exercise price, upper limit (in dollars per share)	$ 11
Outstanding stock options (in shares)	4,000
Outstanding, weighted average share price (in dollars per share) (in dollars per share)	$ 10.75
Weighted average remaining life	2 years 109 days
Number of stock options exercisable (in shares)	4,000
Exercisable, weighted average share price (in dollars per share)	$ 10.75
Outstanding stock options (in shares)	20,000
Outstanding, weighted average share price (in dollars per share) (in dollars per share)	$ 5.18
Weighted average remaining life
Number of stock options exercisable (in shares)	20,000
Exercisable, weighted average share price (in dollars per share)	$ 5.18

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Note 6 - Capital Stock, Treasury Stock, Contributed Capital and Stock Options (Details Textual) - USD ($)	3 Months Ended				9 Months Ended		28 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Sep. 30, 2014	Feb. 27, 2013
Common Class A [Member] | Omnibus 2013 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period							0
Common Stock, Capital Shares Reserved for Future Issuance									150,000
Common Class A [Member] | Directors Plans [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit					$ 2.925
Common Class A [Member] | Directors Plans [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit					$ 11
Common Class A [Member] | Directors Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period					3 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					20,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	20,000		29,000		20,000	29,000	20,000	22,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period		2,000		2,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price		$ 6.45		$ 7.25
Common Class A [Member]
Common Stock, Capital Shares Reserved for Future Issuance	947,233				947,233		947,233
Directors Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	5.00%		5.00%		5.00%	5.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	10 years		10 years		10 years	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%		0.00%		0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	0.87%		0.87%		0.87%	0.87%
Allocated Share-based Compensation Expense	$ 0		$ 543		$ 543	$ 2,294

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Note 8 - Earnings Per Common Share (Details Textual) - $ / shares	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	20,000	29,000		29,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		200,000	200,000	200,000
Options and Warrants [Member] | Minimum [Member]
Share Price	$ 2.50	$ 2.50	$ 2.50	$ 2.50
Options and Warrants [Member] | Maximum [Member]
Share Price	$ 11	11	$ 11	$ 11
Conversion Rights [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	252,367		252,367	252,367
Share Price	$ 1.85	$ 1.85	$ 1.85	$ 1.85

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Note 8 - Summary of Earnings Per Share Calculation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings per Common Share:
Income (Loss) available to common stockholders	$ 109,631	$ 386,911	$ (437,688)	$ (231,031)
Shares denominator (in shares)	1,638,215	1,638,215	1,638,215	1,638,215
Net Income (Loss) (in dollars per share)	$ 0.07	$ 0.24	$ (0.27)	$ (0.14)
Effect of Dilutive Securities
Average shares outstanding (in shares)	1,638,215	1,638,215	1,638,215	1,638,215
Stock options (in shares)		27,906
(in shares)	1,638,215	1,666,121	1,638,215	1,638,215
Earnings per Common Share Assuming Dilution:
Income (Loss) available to common stockholders	$ 109,631	$ 386,911	$ (437,688)	$ (231,031)
Per share amount (in dollars per share)	$ 0.07	$ 0.23	$ (0.27)	$ (0.14)

[1] Net effect of stock options, warrants, and Convertible Note were antidilutive for the period.

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Note 3 - Notes Receivable

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

3.

Notes Receivable

The Company has a note receivable with a current employee at an interest rate of three percent per annum. The Company does not anticipate repayment within the next twelve months.

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Note 9 - Segment and Related Information (Details Textual)	9 Months Ended
	Jun. 30, 2015
Number of Operating Segments	3
Number of Reportable Segments	2

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Consolidated Income Statements (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Sales
Product Sales	$ 1,746,940	$ 2,074,295	$ 3,886,037	$ 4,112,374
Service Sales	57,674	56,117	171,977	184,747
Total Net Sales	1,804,614	2,130,412	4,058,014	4,297,121
Costs and Expenses
Cost of Product Sold	961,912	963,721	2,395,268	2,259,005
Cost of Service Sold	34,908	41,777	110,856	124,333
Product Development	245,794	243,600	742,239	727,810
Marketing and Administrative Expenses	453,903	496,832	1,253,872	1,425,374
Interest Charges	171	2,691	470	2,691
Other (Income) Expense	(1,705)	(5,120)	(7,003)	(11,061)
Total Costs and Expenses	1,694,983	1,743,501	4,495,702	4,528,152
Income (Loss) before Provision for Income Taxes	$ 109,631	$ 386,911	$ (437,688)	$ (231,031)
Income (Recovery of) Taxes
Net Income (Loss)	$ 109,631	$ 386,911	$ (437,688)	$ (231,031)
Earnings per Common Share:
Net Income (Loss) (in dollars per share)	$ 0.07	$ 0.24	$ (0.27)	$ (0.14)
Earnings per Common Share Assuming Dilution:
Net Income (Loss) (in dollars per share)	0.07	0.23	(0.27)	(0.14)
Dividends per Common Share (in dollars per share)	$ 0	$ 0	$ 0	$ 0

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Note 1 - Basis of Presentation

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Basis of Accounting [Text Block]

1.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ended September 30, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended September 30, 2014.

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Note 9 - Segment and Related Information (Tables)

9 Months Ended

Jun. 30, 2015

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended June 30,						Nine Months Ended June 30,
	2015			2014			2015			2014
Net Revenue
Indicators and Gauges	$	332,771		$	460,749		$	933,707		$	1,211,350
Automotive Diagnostic Tools and Equipment		1,471,843			1,669,663			3,124,307			3,085,771
	$	1,804,614		$	2,130,412		$	4,058,014		$	4,297,121
Income (Loss) before provision for Income Taxes
Indicators and Gauges	$	54,783		$	138,030		$	119,379		$	227,434
Automotive Diagnostic Tools and Equipment		294,830			531,969			172,283			430,759
General Corporate Expenses		(239,982	)		(283,088	)		(729,350	)		(889,224	)
	$	109,631		$	386,911		$	(437,688	)	$	(231,031	)
Asset Information
Indicators and Gauges							$	721,504		$	800,751
Automotive Diagnostic Tools and Equipment								1,705,065			2,836,401
Corporate								829,397			567,551
							$	3,255,966		$	4,204,703

Revenue:
United States	$	1,739,642	$	2,103,243	$	3,935,224	$	4,201,849
Australia		1,602		5,996		13,402		30,134
Canada		21,487		14,197		57,041		35,911
Mexico		7,283		6,976		17,747		25,288
China		29,657		-		29,657		-
Other foreign countries		4,943		-		4,943		3,939
	$	1,804,614	$	2,130,412	$	4,058,014	$	4,297,121

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Note 2 - Inventory (Details) - USD ($)	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Components	$ 1,059,014	$ 1,066,672	$ 916,362
Work-in-Process	475,436	521,424	1,035,529
Finished Product	146,650	126,101	155,984
	$ 1,681,100	$ 1,714,197	$ 2,107,875

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Note 2 - Inventories

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Inventory Disclosure [Text Block]

2.

Inventories

Inventories are valued at the lower of cost or market and consist of the following:
 
   

	June 30, 2015		Sept. 30, 2014		June 30, 2014
Components	$	1,059,014	$	1,066,672	$	916,362
Work-in-Process		475,436		521,424		1,035,529
Finished Product		146,650		126,101		155,984
	$	1,681,100	$	1,714,197	$	2,107,875

The above amounts are net of reserve for obsolete inventory in the amount of $371,564, $363,500 and $817,000 for the periods ended June 30, 2015, September 30, 2014 and June 30, 2014 respectively.

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Consolidated Balance Sheet (Unaudited) - USD ($)	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Common Class A [Member]
Stockholders' Equity
Common stock	$ 1,261,188	$ 1,261,188	$ 1,261,188
Common Class B [Member]
Stockholders' Equity
Common stock	474,866	474,866	474,866
Cash and Cash Equivalents	364,649	390,327	129,731
Trade Accounts Receivable - Net	$ 752,677	$ 1,172,268	$ 1,531,183
Notes Receivable - Current
Inventories	$ 1,681,100	$ 1,714,197	$ 2,107,875
Prepaid Expenses	70,549	37,989	68,781
Total Current Assets	2,868,975	3,314,781	3,837,570
Land	233,479	233,479	233,479
Buildings	1,429,718	1,429,718	1,429,718
Machinery and Equipment	2,567,635	2,516,380	2,499,678
	4,230,832	4,179,577	4,162,875
Less: Allowance for Depreciation	3,849,691	3,800,551	3,801,592
Total Property - Net	381,141	379,026	361,283
Notes Receivable - Long-term	4,100	4,100	4,100
Deposits	1,750	1,750	1,750
Total Other Assets	5,850	5,850	5,850
Total Assets	$ 3,255,966	$ 3,699,657	4,204,703
Short-term Financing			683,400
Convertible Notes Payable-related party	$ 200,000		200,000
Trade Accounts Payable	173,103	$ 145,557	203,356
Accrued Payroll & Related Expenses	149,335	132,719	116,458
Accrued Expenses	374,204	178,815	456,576
Accrued Taxes Other Than Income	$ 37,445	$ 48,342	$ 25,839
Accrued Income Taxes
Total Current Liabilities	$ 934,087	$ 505,433	$ 1,685,629
Convertible Notes Payable-related party		200,000
Accrued expenses		235,200
Total Long-Term Liabilities		$ 435,200
Preferred, no par value; authorized 1,000,000 shares; no shares outstanding
Contributed Capital	$ 1,488,560	$ 1,488,017	$ 1,487,474
Retained Earnings	(902,735)	(465,047)	(704,454)
Total Stockholders' Equity	2,321,879	2,759,024	2,519,074
Total Liabilities and Stockholders' Equity	$ 3,255,966	$ 3,699,657	$ 4,204,703

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Note 12 - Business Condition and Management Plan

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Going Concern Disclosure [Text Block]

12.

Business Condition and Management Plan

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has suffered recurring losses from operations during the past several years due primarily to decreasing sales of existing product lines and a general economic downturn in all markets the Company serves. The resulting lower sales levels have impacted the Company's accounts receivable and cash balances, if this situation continues it may prevent the Company from generating sufficient cash flow to sustain its operations.

The ability of the Company to continue as a going concern is dependent on improving the Company's profitability and cash flow and securing additional financing if needed. Management continues to review and revise its strategic plan and believes in the viability of its strategy to increase revenues and profitability through increased sales of existing products and the introduction of new products to the market place. Management believes that the actions presently being taken by the Company will provide the stimulus for it to continue as a going concern, however, because of the inherent uncertainties there can be no assurances to that effect. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Additionally, the Company has net operating loss carryforwards, currently valued at $0, that offset taxable income.

In addition, on December 31, 2014, management entered into an amended unsecured convertible loan agreement which may provide approximately $467,000 of liquidity to meet on going working capital requirements. The unsecured convertible loan agreement is with a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement and continues to allow $250,000 of borrowing on the agreement at the Company's discretion. This facility is available through December 2015. The Company borrowed $200,000 on the loan agreement during the fiscal year ended September 30, 2014 and it is outstanding at June 30, 2015.

Management’s strategic plan to increase revenues and profitability through increased sales of existing products, the introduction of new products to the market place, the Company's continued efforts on several large potential orders with OEM's, and other additional short-term or long-term financing is expected to provide the Company with the needed working capital for the next twelve months.

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Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Aug. 07, 2015
Common Class A [Member]
Entity Common Stock, Shares Outstanding (in shares)		1,163,349
Common Class B [Member]
Entity Common Stock, Shares Outstanding (in shares)		474,866
Entity Registrant Name	HICKOK INC
Entity Central Index Key	0000047307
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Amendment Flag	false

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Note 13 - Potential Acquisition

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Business Combination Disclosure [Text Block]

13.

Potential Acquisition

The Company is engaged in discussions with First Francis Company, Inc., an entity affiliated with two directors of Hickok Incorporated, concerning a potential acquisition of Federal Hose LLC, a wholly owned subsidiary of First Francis. The Company has signed a non-binding Letter of Intent with First Francis and the terms of the potential transaction are still being negotiated.

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Consolidated Balance Sheet (Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Common Class A [Member]
Class of common stock - par value (in dollars per share)	$ 0	$ 0	$ 0
Class of common stock - shares authorized (in shares)	10,000,000	10,000,000	10,000,000
Class of common stock - shares outstanding (in shares)	1,163,349	1,163,349	1,163,349
Class of common stock - excluding shares in treasury (in shares)	15,795	15,795	15,795
Common Class B [Member]
Class of common stock - par value (in dollars per share)	$ 0	$ 0	$ 0
Class of common stock - shares authorized (in shares)	2,500,000	2,500,000	2,500,000
Class of common stock - shares outstanding (in shares)	474,866	474,866	474,866
Class of common stock - excluding shares in treasury (in shares)	667	667	667
Preferred stock - par value (in dollars per share)	$ 0	$ 0	$ 0
Preferred stock - shares authorized (in shares)	1,000,000	1,000,000	1,000,000
Preferred stock - shares outstanding (in shares)	0	0	0

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Note 7 - Recently Issued Accounting Pronouncements

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

7.

Recently Issued Accounting Pronouncements

The Company did not incur any material impact to its financial condition or results of operations due to the adoption of any new accounting standards during the periods reported.

In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers.  The standard, issued as Accounting Standards Update (ASU) 2014-09, outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The core principle of this model is that “an entity recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.” The update is effective for financial statement periods beginning after December 15, 2016, with early adoption prohibited. However, the FASB currently has a proposal outstanding to defer the effective date by one year. The Company has not determined the impact of this pronouncement on its financial statements and related disclosure.

In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition, and as such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company is evaluating the potential impacts of the new standard on its existing stock-based compensation plans.
 
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, ASU 2014-15 requires that an entity’s management evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. ASU 2014-15 is effective for annual periods beginning after December 15, 2016 and for interim periods thereafter. The Company is evaluating the potential impacts of this new standard on its quarterly reporting process.

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Note 6 - Capital Stock, Treasury Stock, Contributed Capital and Stock Options

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

6.

Capital Stock, Treasury Stock, Contributed Capital and Stock Options

Unissued shares of Class A common stock (947,233

shares) are reserved for the share-for-share conversion rights of the Class B common stock, stock options under the Directors Plans, conversion rights of the Convertible Promissory Note and available warrants.

On February 27, 2013, the Company's 2013 Omnibus Equity Plan was approved and adopted by an affirmative vote of a majority of the Company's Class A and Class B Shareholders.

The 2013 Omnibus Plan will provide the Company with the flexibility to grant a variety of share-based awards for covered employees, consultants and Directors. The 2013 Omnibus Plan provides for the grant of the following types of incentive awards: stock options, stock appreciation rights, restricted shares, restricted share units, performance shares and Class A Common Shares. Those who will be eligible for awards under the 2013 Omnibus Plan include employees who provide services to the Company and its affiliates, executive officers, non-employee Directors and consultants designated by the Compensation Committee. The Plan has 150,000 Class A Common Shares reserved for issuance. The Class A Common Shares may be either authorized, but unissued, common shares or treasury shares. No share-based awards have been granted under the 2013 Omnibus Equity Plan as of June 30, 2015. 

The Company's expired Outside Directors Stock Option Plans (collectively the "Directors Plans"), have provided for the automatic grant of options to purchase up to 20,000 shares of Class A Common Stock to members of the Board of Directors who are not employees of the Company, at the fair market value on the date of grant. Options for 20,000 Class A shares were outstanding at June 30, 2015 (22,000 shares at September 30, 2014 and 29,000 shares at June 30, 2014) at prices ranging from $2.925 to $11.00 per share. Options for 2,000 shares expired during the three month period ended March 31, 2015 at $6.45 per share. In addition, options for 2,000 shares expired during the three month period ended March 31, 2014 at $7.25 per share.

All outstanding options under the expired Directors Plans become fully exercisable on March 8, 2015.

The following is a summary of the range of exercise prices for stock options outstanding and exercisable under the expired Directors Plans at June 30, 2015:

Directors Plans			Outstanding Stock Options		Weighted Average Share Price		Weighted Average Remaining Life		Number of Stock Options Exercisable		Weighted Average Share Price
Range of exercise prices:
$ 2.925	-	5.25		13,000	$	3.28		5.1		13,000	$	3.28
$ 6.00				3,000	$	6.00		4.8		3,000	$	6.00
$ 10.50	-	11.00		4,000	$	10.75		2.3		4,000	$	10.75
				20,000	$	5.18				20,000	$	5.18

The Company accounts for Share-Based Payments under the modified prospective method for its stock options for both employees and non-employee Directors. Compensation cost for fixed based awards are measured at the grant date, and the Company uses the Black-Scholes option pricing model to determine the fair value estimates for recognizing the cost of employee and director services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. Employee stock options are immediately exercisable while Director's stock options are exercisable over a three year period. The fair value of stock option grants to Directors is amortized over the three year vesting period. During the three and the nine month periods ended June 30, 2015 and 2014 respectively $0 and $543; $543 and $2,294 was expensed as share-based compensation. The following weighted-average assumptions were used in the option pricing model for the three and nine month periods ended June 30, 2015 and 2014 respectively: a risk free interest rate of 5.0% and 5.0%; an expected life of 10 and 10 years; an expected dividend yield of 0.0% and 0.0%; and a volatility factor of .87 and .87.

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Note 2 - Inventories (Details Textual) - USD ($)	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Inventory Valuation Reserves	$ 371,564	$ 363,500	$ 817,000

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Note 2 - Inventories (Tables)

9 Months Ended

Jun. 30, 2015

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 30, 2015		Sept. 30, 2014		June 30, 2014
Components	$	1,059,014	$	1,066,672	$	916,362
Work-in-Process		475,436		521,424		1,035,529
Finished Product		146,650		126,101		155,984
	$	1,681,100	$	1,714,197	$	2,107,875

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Note 10 - Commitments and Contingencies

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

10.

Commitments and Contingencies

Legal Matters

The Company is the plaintiff in a suit pursuing patent infringement against a competitor in the emissions market. Management believes that it is not currently possible to estimate the impact, if any, that the ultimate resolution of this matter will have on the Company's results of operations, financial position or cash flows.

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Note 8 - Earnings Per Common Share

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Earnings Per Share [Text Block]

8.

Earnings per Common Share

Earnings per common share information is computed on the weighted average number of shares outstanding during each period based on the provisions of FASB Codification ASC Topic 260, "Earnings per Share." The required reconciliations are as follows:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2015		2014		2015			2014
Basic Income (Loss) per Share
Income (Loss) available to common stockholders	$	109,631	$	386,911	$	(437,688	)	$	(231,031	)
Shares denominator		1,638,215		1,638,215		1,638,215			1,638,215
Per share amount	$	.07	$	.24	$	(.27	)	$	(.14	)
Effect of Dilutive Securities
Average shares outstanding		1,638,215		1,638,215		1,638,215			1,638,215
Stock options		-*		27,906		-*			-*
		1,638,215		1,666,121		1,638,215			1,638,215
Diluted Income (Loss) per Share
Income (Loss) available to common stockholders	$	109,631	$	386,911	$	(437,688	)	$	(231,031	)
Per share amount	$	.07	$	.23	$	(.27	)	$	(.14	)

* Net effect of stock options and warrants were antidilutive for the period.

Options and warrants to purchase 20,000 and 200,000 shares of common stock respectively during the third quarter and the first nine months of fiscal 2015 at prices ranging from $2.50 to $11.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's and warrant's effect was antidilutive or the exercise price was greater than the average market price of the common share.

In addition, conversion rights to purchase 252,367 shares of common stock during the third quarter and first nine months of fiscal 2015 at a price of $1.85 per share were not included in the computation of diluted earnings per share because the conversion rights of the Convertible Promissory Notes effect was antidilutive or the exercise price was greater than the average market price of the common share.

Options and warrants to purchase 29,000 and 200,000 shares of common stock respectively during the third quarter and the first nine months of fiscal 2014 at prices ranging from $2.50 to $11.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's and warrant's effect was antidilutive or the exercise price was greater than the average market price of the common share.

In addition, conversion rights to purchase 252,367 shares of common stock during the first nine months of fiscal 2014 at a price of $1.85 per share were not included in the computation of diluted earnings per share because the conversion rights of the Convertible Promissory Notes effect was antidilutive or the exercise price was greater than the average market price of the common share.

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Note 9 - Segment and Related Information

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

9.

Segment and Related Information

The Company's three business units have a common management team and infrastructure that offer different products and services. The business units have been aggregated into two reportable segments: 1.) indicators and gauges and 2.) automotive related diagnostic tools and equipment.

Indicators and Gauges

This segment consists of products manufactured and sold primarily to companies in the aircraft and locomotive industry. Within the aircraft market, the primary customers are those companies that manufacture or service business, military and pleasure aircraft. Within the locomotive market, indicators and gauges are sold to both original equipment manufacturers and to operators of railroad equipment.

Automotive Diagnostic Tools and Equipment

This segment consists primarily of products designed and manufactured to support the testing or servicing of automotive systems using electronic means to measure vehicle parameters. These products are sold to OEM's and to the aftermarket using several brand names and a variety of distribution methods. Included in this segment are products used for state required testing of vehicle emissions.

Information by industry segment is set forth below:

	Three Months Ended June 30,						Nine Months Ended June 30,
	2015			2014			2015			2014
Net Revenue
Indicators and Gauges	$	332,771		$	460,749		$	933,707		$	1,211,350
Automotive Diagnostic Tools and Equipment		1,471,843			1,669,663			3,124,307			3,085,771
	$	1,804,614		$	2,130,412		$	4,058,014		$	4,297,121
Income (Loss) before provision for Income Taxes
Indicators and Gauges	$	54,783		$	138,030		$	119,379		$	227,434
Automotive Diagnostic Tools and Equipment		294,830			531,969			172,283			430,759
General Corporate Expenses		(239,982	)		(283,088	)		(729,350	)		(889,224	)
	$	109,631		$	386,911		$	(437,688	)	$	(231,031	)
Asset Information
Indicators and Gauges							$	721,504		$	800,751
Automotive Diagnostic Tools and Equipment								1,705,065			2,836,401
Corporate								829,397			567,551
							$	3,255,966		$	4,204,703

Geographical Information

Included in the consolidated financial statements are the following amounts related to geographical locations:

Revenue:
United States	$	1,739,642	$	2,103,243	$	3,935,224	$	4,201,849
Australia		1,602		5,996		13,402		30,134
Canada		21,487		14,197		57,041		35,911
Mexico		7,283		6,976		17,747		25,288
China		29,657		-		29,657		-
Other foreign countries		4,943		-		4,943		3,939
	$	1,804,614	$	2,130,412	$	4,058,014	$	4,297,121

All export sales to Australia, Canada, Mexico, China and other foreign countries are made in United States of America Dollars.

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Note 11 - Subsequent Events

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Subsequent Events [Text Block]

11.

Subsequent Events

The Company has analyzed its operations subsequent to June 30, 2015 through the date the financial statements were submitted to the Securities and Exchange Commission and has determined that no subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes to the consolidated financial statements.

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Note 12 - Business Condition and Management Plan (Details Textual) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014
Amendment No. 3 [Member] | Director [Member] | Roundball LLC [Member]
Convertible Notes Payable, Current	$ 200,000		$ 200,000
Working Capital Funding		$ 467,000
Line of Credit Facility, Current Borrowing Capacity	250,000
Convertible Notes Payable, Current	200,000			$ 200,000
Operating Loss Carryforward, Net of Allowance	$ 0

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Note 8 - Earnings Per Common Share (Tables)

9 Months Ended

Jun. 30, 2015

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended June 30,				Nine Months Ended June 30,
	2015		2014		2015			2014
Basic Income (Loss) per Share
Income (Loss) available to common stockholders	$	109,631	$	386,911	$	(437,688	)	$	(231,031	)
Shares denominator		1,638,215		1,638,215		1,638,215			1,638,215
Per share amount	$	.07	$	.24	$	(.27	)	$	(.14	)
Effect of Dilutive Securities
Average shares outstanding		1,638,215		1,638,215		1,638,215			1,638,215
Stock options		-*		27,906		-*			-*
		1,638,215		1,666,121		1,638,215			1,638,215
Diluted Income (Loss) per Share
Income (Loss) available to common stockholders	$	109,631	$	386,911	$	(437,688	)	$	(231,031	)
Per share amount	$	.07	$	.23	$	(.27	)	$	(.14	)

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Note 4 - Convertible Notes Payable (Details Textual)		1 Months Ended		9 Months Ended		12 Months Ended
	Dec. 30, 2012 USD ($) $ / shares shares	Aug. 20, 2012 USD ($)	Dec. 30, 2011 USD ($) $ / shares shares	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($) shares	Dec. 30, 2013 USD ($)
Director [Member] | Roundball LLC [Member] | Amendment No. 3 [Member] | Common Class A [Member]
Threshold Percentage of Class A Common Share Holders							67.00%
Director [Member] | Roundball LLC [Member] | Amendment No. 3 [Member] | Common Class B [Member]
Common Stock, Voting Rights, per Share							3
Director [Member] | Roundball LLC [Member] | Amendment No. 3 [Member] | Upon Approval of Class A Common Share Holders [Member]
Debt Conversion, Convertible Instrument, Shares Issuable | shares							252,367
Director [Member] | Roundball LLC [Member] | Amendment No. 3 [Member]
Working Capital Funding							$ 467,000
Convertible Notes Payable, Current				$ 200,000		$ 200,000
Debt Instrument, Interest Rate, Stated Percentage							0.34%
Line of Credit Facility, Maximum Borrowing Capacity							$ 250,000
Director [Member] | Roundball LLC [Member] | Amendment No 2 [Member]
Working Capital Funding								$ 467,000
Debt Instrument, Interest Rate, Stated Percentage								0.25%
Line of Credit Facility, Maximum Borrowing Capacity								$ 250,000
Director [Member] | Roundball LLC [Member] | Convertible Notes Payable [Member]
Working Capital Funding	$ 467,000
Debt Instrument, Interest Rate, Stated Percentage	0.24%
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000
Roundball LLC [Member] | Amendment No. 1 [Member] | Warrant to Purchase Class A Common Stock [Member]
Warrant Term	1 year
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 2.50
Roundball LLC [Member] | Amendment No 2 [Member]
Convertible Notes Payable, Current				200,000
Proceeds from Convertible Debt						$ 200,000
Roundball LLC [Member] | Additional Borrowing [Member] | Convertible Notes Payable [Member]
Proceeds from Issuance of Debt			$ 466,880
Roundball LLC [Member] | Common Class A [Member] | Convertible Notes Payable [Member]
Debt Instrument, Convertible, Conversion Price | $ / shares			$ 1.85
Convertible Preferred Stock, Shares Issued upon Conversion | shares			504,735
Conversion of Stock, Amount Converted		$ 233,441	$ 233,438
Roundball LLC [Member] | Convertible Notes Payable [Member]
Convertible Notes Payable, Current			$ 466,879
Debt Instrument, Interest Rate, Stated Percentage			0.20%
Convertible Notes Payable, Current				$ 200,000	$ 200,000
Proceeds from Convertible Debt					$ 200,000

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities:
Cash received from customers	$ 4,477,605	$ 3,404,254
Cash paid to suppliers and employees	$ (4,452,731)	$ (4,986,377)
Interest paid
Interest received	$ 703	$ 518
Income taxes (paid) refunded
Net Cash Provided By (Used In) Operating Activities	$ 25,577	$ (1,581,605)
Cash Flows from Investing Activities:
Capital expenditures	(51,255)	(110,916)
Net Cash Provided By (Used In) Investing Activities	$ (51,255)	(110,916)
Cash Flows from Financing Activities:
Short-term borrowing		683,400
Increase in Convertible Notes Payable		200,000
Net Cash Provided By (Used In) Financing Activities		883,400
Net increase (decrease) in cash and cash equivalents	$ (25,678)	(809,121)
Cash and cash equivalents at beginning of year	390,327	938,852
Cash and cash equivalents at end of third quarter	364,649	129,731
Reconciliation of Net Income (Loss) to Net Cash Provided By (Used In) Operating Activities:
Net Income (Loss)	(437,688)	(231,031)
Adjustments to reconcile Net Income (Loss) to net cash provided by operating activities:
Depreciation	49,140	49,140
Non-cash share-based compensation expense	543	2,294
Changes in assets and liabilities:
Decrease (Increase) in trade accounts receivable	419,591	(892,867)
Decrease (Increase) in inventories	33,097	(518,059)
Decrease (Increase) in prepaid expenses	(32,560)	(36,439)
Increase (Decrease) in accounts payable	27,546	29,120
Increase (Decrease) in accrued payroll and related expenses	16,616	(26,061)
Increase (Decrease) in accrued expenses and accrued taxes other than income	(50,708)	42,298
Total Adjustments	463,265	(1,350,574)
Net Cash Provided By (Used In) Operating Activities	$ 25,577	$ (1,581,605)

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Note 5 - Short-term Financing

9 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Short-term Debt [Text Block]

5.

Short-term Financing

The Company had a credit agreement of $250,000 with Robert L. Bauman, one of its major shareholders who is also an employee of the Company. The agreement was to expire in April 2013 but was modified on December 31, 2012 to extend the maturity date to December 2013.

The agreement provided for a revolving credit facility of $250,000 with interest at 0.24% per annum and was unsecured and included a three year warrant for 100,000 shares of Class A common stock at a price of $2.50 per share. In addition, the agreement generally allowed for borrowing based on an amount equal to eighty percent of eligible accounts receivables or $250,000. The revolving line of credit was not extended.

In partial consideration for the original extension of the revolving credit facility the Company and Bauman entered into a Warrant Agreement, dated December 30, 2012 whereby the Company issued a warrant to Bauman to purchase, at his option, up to 100,000 shares of Class A Common Stock of the Company at an exercise price of $2.50 per share, subject to certain anti-dilution and other adjustments. If not exercised, this warrant will expire on December 30, 2015.

The Company used the Black-Scholes option pricing model to determine the fair value estimate for recognizing the cost of services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. The warrants are immediately exercisable and expire in December 2015. The fair value of the warrants issued was amortized over the one year credit agreement period.

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Note 5 - Short-term Financing (Details Textual) - Dec. 31, 2013 - USD ($)	Total
Robert L Bauman [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000
Line of Credit Facility, Interest Rate During Period	0.24%
Robert L Bauman [Member]
Warrant Period	3 years
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 2.50
Common Class A [Member] | Robert L Bauman [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	100,000

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Note 6 - Capital Stock, Treasury Stock, Contributed Capital and Stock Options (Tables)

9 Months Ended

Jun. 30, 2015

Directors Plans [Member]

Notes Tables

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Directors Plans			Outstanding Stock Options		Weighted Average Share Price		Weighted Average Remaining Life		Number of Stock Options Exercisable		Weighted Average Share Price
Range of exercise prices:
$ 2.925	-	5.25		13,000	$	3.28		5.1		13,000	$	3.28
$ 6.00				3,000	$	6.00		4.8		3,000	$	6.00
$ 10.50	-	11.00		4,000	$	10.75		2.3		4,000	$	10.75
				20,000	$	5.18				20,000	$	5.18