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 March 31, 2016

or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 13(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 May 9, 2016:  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
March 31, Six months ended
March 31,

	2016	2015	2016	2015
Net Sales
Product Sales	$984,241	$1,038,783	$2,291,407	$2,139,097
Service Sales	62,383	52,399	132,089	114,303
Total Net Sales	1,046,624	1,091,182	2,423,496	2,253,400
Costs and Expenses
Cost of Product Sold	642,312	673,846	1,335,347	1,433,356
Cost of Service Sold	52,232	35,345	99,718	75,948
Product Development	272,710	260,507	519,483	496,445
Marketing and Administrative  Expenses	542,910	400,570	981,135	799,969
Interest Charges	3,162	171	3,336	299
Other Income	(2,258)	(2,594)	(3,890)	(5,298)
Total Costs and Expenses	1,511,068	1,367,845	2,935,129	2,800,719
Income (Loss) before Provision for Income Taxes	(464,444)	(276,663)	(511,633)	(547,319)
Provision for (Recovery of) Income Taxes	-	-	-	-
Net Income (Loss)	$(464,444)	$(276,663)	$(511,633)	$(547,319)
Earnings per Common Share:
Net Income (Loss)	$(.28)	$(.17)	$(.31)	$(.33)
Earnings per Common Share Assuming Dilution:
Net Income (Loss)	$(.28)	$(.17)	$(.31)	$(.33)
Dividends per Common Share	$-0-	$-0-	$-0-	$-0-

See Notes to Consolidated Financial Statements

HICKOK INCORPORATED
CONSOLIDATED BALANCE SHEET

	March 31, 2016 (Unaudited)	September 30, 2015 (Note)	March 31, 2015 (Unaudited)
Assets
Current Assets
Cash and Cash Equivalents	$381,843	$346,405	$282,401
Trade Accounts Receivable-Net	397,971	1,101,554	593,265
Notes Receivable - Current	-	-	-
Inventories	1,975,372	1,926,513	1,778,854
Prepaid Expenses	73,040	112,019	68,203
Total Current Assets	2,828,226	3,486,491	2,722,723
Property, Plant and Equipment
Land	233,479	233,479	233,479
Buildings	1,440,138	1,440,138	1,429,718
Machinery and Equipment	2,596,376	2,348,554	2,541,835
	4,269,993	4,022,171	4,205,032
Less: Allowance for Depreciation	3,709,937	3,646,937	3,833,311
Total Property - Net	560,056	375,234	371,721
Other Assets
Notes Receivable - Long-term	4,100	4,100	4,100
Deposits	750	750	1,750
Total Other Assets	4,850	4,850	5,850
Total Assets	$3,393,132	$3,866,575	$3,100,294

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

See Notes to Consolidated Financial Statements

	March 31, 2016 (Unaudited)	September 30, 2015 (Note)	March 31, 2015 (Unaudited)
Liabilities and Stockholders' Equity
Current Liabilities
Convertible Notes Payable - related party	$200,000	$-	$200,000
Leases Payable	54,627	-	-
Trade Accounts Payable	260,749	297,761	206,049
Accrued Payroll & Related Expenses	77,626	167,770	141,637
Accrued Expenses	500,890	183,390	310,968
Accrued Taxes Other Than Income	10,275	40,764	29,392
Accrued Income Taxes	-	-	-
Total Current Liabilities	1,104,167	689,685	888,046
Long-Term Liabilities
Convertible Notes Payable - related party	-	200,000	-
Leases Payable	163,408	-	-
Accrued Expenses	-	339,700	-
Total Long-term Liabilities	163,408	539,700	-
Stockholders' Equity
Class A, no par value; authorized 10,000,000 shares; 1,163,349 shares outstanding (1,163,349 shares outstanding at September 30, 2015 and March 31, 2015) excluding 15,795 shares in treasury	1,261,188	1,261,188	1,261,188
Class B, no par value; authorized 2,500,000 shares; 474,866 shares outstanding (474,866 shares outstanding at September 30, 2015 and March 31, 2015) excluding 667 shares in treasury	474,866	474,866	474,866
Preferred, no par value; authorized 1,000,000 shares; no shares outstanding	-	-	-
Contributed Capital	1,488,560	1,488,560	1,488,560
Retained Earnings (Deficit)	(1,099,057)	(587,424)	(1,012,366)
Total Stockholders' Equity	2,125,557	2,637,190	2,212,248
Total Liabilities and Stockholders' Equity	$3,393,132	$3,866,575	$3,100,294

HICKOK INCORPORATED
 CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED MARCH 31,
(Unaudited)

	2016	2015
Cash Flows from Operating Activities:
Cash received from customers	$3,127,079	$2,832,403
Cash paid to suppliers and employees	(3,059,419)	(2,915,519)
Interest paid	(2,991)	-
Interest received	556	645
Income taxes (paid) refunded	-	-
Net Cash Provided By (Used In) Operating Activities	65,225	(82,471)
Cash Flows from Investing Activities:
Capital expenditures	(247,822)	(25,455)
Net Cash Provided By (Used In) Investing Activities	(247,822)	(25,455)
Cash Flows from Financing Activities:
Lease payable borrowing	233,115	-
Payments on lease payable borrowing	(15,080)	-
Net cash Provided By (Used In) Financing Activities	218,035	-
Net increase (decrease) in cash and cash equivalents	35,438	(107,926)
Cash and cash equivalents at beginning of year	346,405	390,327
Cash and cash equivalents at end of second quarter	$381,843	$282,401
See Notes to Consolidated Financial Statements
	2016	2015
Reconciliation of Net Income (Loss) to Net Cash Provided By (Used In) Operating Activities:
Net Income (Loss)	$(511,633)	$(547,319)
Adjustments to reconcile Net Income (Loss) to net cash provided by operating activities:
Depreciation	63,000	32,760
Share-based compensation expense	-	543
Deferred income taxes	-	-
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable	703,583	579,003
Decrease (Increase) in inventories	(48,859)	(64,657)
Decrease (Increase) in prepaid expenses	38,979	(30,214)
Increase (Decrease) in accounts payable	(37,012)	60,492
Increase (Decrease) in accrued payroll and related expenses	(90,144)	8,918
Increase (Decrease) in accrued expenses and accrued taxes other than income	(52,689)	(121,997)
Total Adjustments	576,858	464,848
Net Cash Provided By (Used In) Operating Activities	$65,225	$(82,471)
Supplemental Schedule of Non-Cash Activity:
Assets acquired by capital lease	$233,115	$-

HICKOK INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
MARCH 31, 2016

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 month and six month periods ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ended September 30, 2016. 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, 2015.

2. Inventories

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

	March 31, 2016	September 30, 2015	March 31, 2015
Components	$1,238,650	$1,254,294	$1,140,410
Work-in-Process	594,481	499,752	508,069
Finished Product	142,241	172,467	130,375
	$1,975,372	$1,926,513	$1,778,854

The above amounts are net of reserve for obsolete inventory in the amount of $219,292, $251,500 and $368,564 for the periods ended March 31, 2016, September 30, 2015 and March 31, 2015 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

On December 30, 2011, management entered into a Convertible Loan Agreement with Roundball LLC. Over the past several years there have been several amendments to the original agreement.

On December 30, 2015, management entered into Amendment No. 4 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 an affiliate of two Directors extending the due date of the loan agreement from December 30, 2015 to December 30, 2016 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.34% of which $200,000 is outstanding at March 31, 2016.

During fiscal year ended September 30, 2014, the Company borrowed $200,000 against this agreement. As of March 31, 2016, the outstanding balance on the Roundball convertible note was $200,000.

As part of the Convertible Loan Agreement between the Company and Roundball LLC. the parties 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 or amended, this warrant would have expired on December 30, 2015.

On December 30, 2015, management entered into Amendment No. 1 of the Warrant Agreement with Roundball. The amended Warrant Agreement is by and between the Company and a major shareholder who is also an affiliate of two Directors extending the due date of the agreement from December 30, 2015 to December 30, 2016.

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 2016. The fair value of the warrants issued was amortized over the one-year amended convertible loan agreement period. The following weighted-average assumptions were used in the option pricing model: a risk free interest rate of 0.42%; an expected life of 1 year; an expected dividend yield of 0.0%; and a volatility factor of .84.

The Company recorded interest expense on the Roundball note of $171 and $345 for the three months and six month periods ended March 31, 2016 respectively.

5. Warrant Agreement

In addition to the Warrant Agreement disclosed in Note 4. the Company and Robert L. 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. The warrant was not exercised, and expired on December 30, 2015.

6. Capital Leases

	Current Portion 2016	Total March 31, 2016	Total March 31, 2015
Capital lease obligation on MIS computer equipment and software, payable in monthly installments of $2,059 including interest at approximately 1.04% per annum through December, 2017.	$24,710	$39,124	$-
Capital lease obligation on IT computer equipment and software, payable in monthly installments of $3,888 including interest at approximately 9.83% per annum, through February, 2021.	29,917	178,911	-
	$54,627	218,035	-
Less current portion		54,627	-
		$163,408	$-

The cost of fixed assets related to the capital leases is $233,115 which approximates book value at March 31, 2016.

7. Capital Stock, Treasury Stock, Contributed Capital and Stock Options

Unissued shares of Class A common stock (832,233 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.

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 and 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 March 31, 2016.

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 5,000 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. The options are exercisable for up to 10 years. Options for 5,000 Class A shares were outstanding at March 31, 2016 (6,000 shares at September 30, 2015 and 20,000 shares at March 31, 2015) at prices ranging from $2.925 to $11.00 per share. Options for 1,000 shares expired during the three month period ended March 31, 2016 at $2.925 per share. In addition, options for 2,000 shares expired during the three month period ended March 31, 2015 at $6.45 per share. All outstanding options under the expired Directors Plans became 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 March 31, 2016:

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	4,000	$2.925	5.8	4,000	$2.925
$6.00 - 7.25	1,000	$6.00	4.0	1,000	$6.00
$10.50 - $11.00	-	-	-	-	-
	5,000	$3.54		5,000	$3.54

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 six month periods ended March 31, 2016 and 2015 respectively $0 and $0; $0 and $543 was expensed as share-based compensation. The following weighted-average assumptions were used in the option pricing model for the three and six month periods ended March 31, 2016 and 2015 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.

8. 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 March 2016, the Financial Accounting Standards Board (FASB) issued a new standard that changes the accounting for certain aspects of share-based payments to employees.  The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled.  In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from the other income tax cash flows.  The standard also allows us to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on our cash flow statements, and provides an accounting policy election to account for forfeitures as they occur.  The new standard is effective for us beginning October 1, 2017, with early adoption permitted.  This new standard is not expected to have a significant impact on the Company’s financial statements.

In February 2016, the FASB issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet.  Most prominent among the amendments  is the recognition of assets and liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP.  Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases.  The new standard will be effective for us beginning October 1, 2019, with early adoption permitted.  We are evaluating the impact this standard will have to our financial statements.

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 e entitled in exchange for those goods and services.” The update is effective for financial statement periods beginning after December 15, 2017, with early adoption prohibited. The Company has not determined the impact of this pronouncement on its financial statements and related disclosure.

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.

9. 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
March 31, Six Months Ended
March 31,

	2016	2015	2016	2015
Basic Income (Loss) per Share
Income (Loss) available to common stockholders	$(464,444)	$(276,663)	$(511,633)	$(547,319)
Shares denominator	1,638,215	1,638,215	1,638,215	1,638,215
Per share amount	$(.28)	$(.17)	$(.31)	$(.33)
Effect of Dilutive Securities
Average shares outstanding	1,638,215	1,638,215	1,638,215	1,638,215
Stock options	-*	-*	-*	-*
	1,638,215	1,638,215	1,638,215	1,638,215
Diluted Income (Loss) per Share
Income (Loss) available to common stockholders	$(464,444)	$(276,663)	$(511,633)	$(547,319)
Per share amount	$(.28)	$(.17)	$(.31)	$(.33)
* Net effect of stock options and warrants were antidilutive for the period.

Options and warrants to purchase 5,000 and 100,000 shares of common stock respectively during the second quarter and the first six months of fiscal 2016 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 second quarter and the first six months of fiscal 2016 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 20,000 and 200,000 shares of common stock respectively during the second quarter and the first six 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 second quarter and the first six 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.

10. Segment and Related Information

The Company's four 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
March 31, Six Months Ended
March 31,

	2016	2015	2016	2015
Net Sales
Indicators and Gauges	$271,937	$355,267	$514,060	$600,936
Automotive Diagnostic Tools and Equipment	774,687	735,915	1,909,436	1,652,464
	$1,046,624	$1,091,182	$2,423,496	$2,253,400
Income (Loss) before provision for Income Taxes
Indicators and Gauges	$32,162	$62,103	$63,236	$64,596
Automotive Diagnostic Tools and Equipment	(134,105)	(91,159)	37,128	(122,547)
General Corporate Expenses	(362,501)	(247,607)	(611,997)	(489,368)
	$(464,444)	$(276,663)	$(511,633)	$(547,319)
Asset Information
Indicators and Gauges			$754,134	$794,095
Automotive Diagnostic Tools and Equipment			1,613,917	1,575,734
Corporate			1,025,081	730,465
			$3,393,132	$3,100,294
Geographical Information
Included in the consolidated financial statements are the following amounts related to geographical locations:
Revenue:
United States	$1,015,090	$1,068,123	$2,344,709	$2,195,582
Australia	588	3,675	38,941	11,800
Canada	5,798	15,896	14,698	35,554
England	20,260	-	20,260	-
Mexico	4,360	3,488	4,360	10,464
Other foreign countries	528	-	528	-
	$1,046,624	$1,091,182	$2,423,496	$2,253,400

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

11. 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.

12. Subsequent Events

The Company has analyzed its operations subsequent to March 31, 2016 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, except as follows:

On January 8, 2016, the Company entered into an Agreement and Plan of Merger (Agreement) with First Francis Company Inc. (First Francis), the shareholders of First Francis, Federal Hose Manufacturing LLC (Federal Hose), a wholly owned subsidiary of First Francis, and Federal Hose Merger Sub, Inc. (Merger Sub), a wholly owned subsidiary of the Company. The Merger Sub will be merged with and into Federal Hose, with Federal Hose surviving the merger on the terms and conditions set forth in the Agreement.

The consideration to be delivered to First Francis upon the closing of the merger shall be (i) the issuance by the Company to First Francis of 911,250 shares of the Company's Class A common capital stock, without par value, (ii) the issuance by the Company to First Francis of 303,750 shares of the Company's Class B common capital stock, without par value, and (iii) the issuance by the Company to First Francis of promissory notes in the original principal amounts of $2,768,662 and $2,000,000 (subject to adjustment as set forth in the Agreement), to be in the forms set forth in the Agreement, with such notes secured by a security interest in all of the Company's, Federal Hose's and Supreme Electronics' assets under the terms of a Security Agreement.

The Agreement may be terminated by mutual consent at any time prior to the closing, or if all conditions of the Agreement have not been satisfied by July 1, 2016.

Before the closing of the merger, the shareholders of the Company must approve the transactions contemplated by the Agreement at the Special Shareholders meeting to be held on June 22, 2016.

13. 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 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.

In addition, on December 30, 2015, 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 an affiliate of two Directors 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 2016. The Company had previously borrowed $200,000 and it is outstanding at March 31, 2016.

On December 30, 2015, management entered into Amendment No. 1 of the Warrant Agreement with Roundball. The amended Warrant Agreement is by and between the Company and a major shareholder who is also an affiliate of two Directors extending the due date of the agreement from December 30, 2015 to December 30, 2016.

Management’s strategic plan to increase revenues and profitability through increased sales of existing products, the introduction of new products to the market place and the cash generated from the completion of the large orders from a Tier 1 Supplier during the prior fiscal year, 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.

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

Results of Operations, Second Quarter (January 1, 2016 through March 31, 2016)
Fiscal 2016 Compared to Second Quarter Fiscal 2015
-----------------------------------------------------------------------------------------

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 $271,937 and $355,267 for the second quarter of fiscal 2016 and fiscal 2015, respectively and $514,060 and $600,936 for the first six months of fiscal 2016 and fiscal 2015, respectively.

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 $774,687 and $735,915 for the second quarter of fiscal 2016 and fiscal 2015, respectively, and $1,909,436 and $1,652,464 for the first six months of fiscal 2016 and fiscal 2015, respectively.

Results of Operations

Product sales for the quarter ended March 31, 2016 were $984,241 versus $1,038,783 for the quarter ended March 31, 2015. The decrease in product sales during the current quarter of approximately $55,000 was volume related due primarily to decreased sales of indicator products and aftermarket products of approximately $94,000 and $132,000, respectively, offset by increased sales of automotive diagnostic testing products to OEM's and emission products of $135,000 and $36,000 respectively. Product sales are expected to increase significantly during the remainder of fiscal 2016 due in part to the large orders received in February, new product introductions and to anticipated improvement in other markets the Company serves.

Service sales for the quarter ended March 31, 2016 were $62,382 versus $52,399 for the quarter ended March 31, 2015. The increase was volume related and due primarily to a higher sales volume for chargeable repairs. The current level of service sales related to product repair sales is expected to continue for the balance of the fiscal year.

Cost of product sold in the second quarter of fiscal 2016 was $642,312 (65.3% of product sales) as compared to $673,846 (64.9% of product sales) in the second quarter of fiscal 2015. 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 significantly for the balance of the fiscal year due to both increased plant utilization and a change in product mix.

Cost of service sold in the second quarter of fiscal 2016 was $52,232 (83.7% of service sales) as compared to $35,345 (64.9% of service sales) in the second quarter of fiscal 2015. The dollar and percentage increase was due primarily to a higher service sales volume and product specifics of chargeable repairs in the current quarter. The current cost of services sold percentage is anticipated to decrease for the balance of the fiscal year.

Product development expenses were $272,710 in the second quarter of fiscal 2016 (27.7% of product sales) as compared to $260,507 (25.1% of product sales) in the second quarter of fiscal 2015. 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, telephone expense and depreciation of approximately $6,000, $5,000 and 2,000 respectively offset in part by a decrease in travel expense of approximately $1,000. The current level of product development expenses is expected to continue for the balance of the fiscal year. The Company 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 $542,910 (51.9% of total sales) in the second quarter of 2016 versus $400,570 (36.7% of total sales) for the same period a year ago. Marketing expenses were approximately $181,000 in the second quarter of fiscal 2016 versus $151,000 for the same period a year ago. Within marketing expenses, advertising expense, commission expense, labor costs, promotion expense, credit and collection expense, telephone expense, and royalty expense increased by approximately $8,000, $6,000, $5,000, $3,000, $3,000, $3,000 and $3,000 respectively. Administrative expenses were approximately $362,000 in the second quarter of fiscal 2016 versus $250,000 for the same period a year ago. Within administrative expenses professional fees, depreciation, data processing expenses, and repairs and maintenance machinery and equipment increased by approximately $100,000, $7,000, $6,000 and $1,000 respectively. The increases were offset primarily by a decrease in labor costs of approximately $2,000. The current level of marketing and administrative expenses are expected to decrease slightly for the remainder of the fiscal year unless professional fees beyond management's expectations are incurred related to the potential acquisition. See Discussions Regarding Potential Acquisition section below.

Interest expense was $3,162 in the second quarter of fiscal 2016 which compares to $171 in the second quarter of fiscal 2015. The increase in interest charges in the current quarter compared to a year ago was due to recording interest expense on the lease payable borrowing and the convertible note payable during the current year second quarter. The prior year interest was recorded on the convertible note payable only. The current level of interest expense is expected to increase significantly for the remainder of the fiscal year due to the lease payable borrowing payments to be made during the balance of the year.

Other income was $2,259 in the second quarter of fiscal 2016 which compares with $2,594 in the second quarter of fiscal 2015. Other income consists primarily of interest income on cash and cash equivalents invested and the proceeds from the sale of scrap metal shavings. The decrease was due primarily to a lower level of scrap metal sales during the current quarter.

Income taxes in the second quarter of fiscal 2016 were $0 which compares with income taxes of $0 in the second quarter of fiscal 2015. In the second quarter of fiscal 2016 recovery of income taxes was calculated at an effective tax rate of 37% offset by an increase in the valuation allowance netting to $0. In the second quarter of fiscal 2015 income taxes were recorded at an effective tax rate of 37% offset by an increase in the valuation allowance netting to $0.

The net loss in the second quarter of fiscal 2016 was $464,444 which compares with a net loss of $276,663 in the second quarter of fiscal 2015. The net loss in fiscal 2016 and 2015 was primarily the result of low sales volume.

Unshipped customer orders as of March 31, 2016 were $900,000 versus $1,232,000 at March 31, 2015. The decrease was due primarily to decreased orders for diagnostic products to automotive OEM's and aftermarket products of approximately $347,000 and $39,000 respectively. In addition, orders for emissions products and indicator products increased by approximately $52,000 and $2,000 respectively. The Company anticipates that most of the current backlog will be shipped in the last half of fiscal 2016. The current order backlog includes substantially smaller orders for diagnostic products to automotive OEM's while the prior year order backlog benefited from larger automotive diagnostic product orders to OEM's.

Results of Operations, Six Months Ended March 31, 2016
Compared to Six Months Ended March 31, 2015

Product sales for the six months ended March 31, 2016 were $2,291,407 versus $2,139,097 for the same period in fiscal 2015. The increase in product sales during the first six months of the current fiscal year was volume related due primarily to increased sales of automotive diagnostic testing products, primarily, automotive diagnostic testing products to OEM's of approximately $314,000 and emission products of approximately $13,000. Sales of automotive diagnostic testing products to the aftermarket decreased by approximately $64,000. In addition, sales of indicator products decreased by approximately $111,000. Management anticipates product sales for the third and fourth quarter will increase significantly due to the large orders received in February, new product introductions and to anticipated improvement in other markets the Company serves.

Service sales for the six months ended March 31, 2016 were $132,089 compared with $114,303 for the same period in fiscal 2015. The increase was volume related and due primarily to a higher sales volume for chargeable repairs. The current level of service sales related to product repair sales is expected to continue for the balance of the fiscal year.

Cost of product sold was $1,335,347 or (58.3% of product sales) compared to $1,433,356 (67.0% of product sales) for the six months ended March 31, 2015. The dollar and percentage decrease in the cost of product sold was due primarily to higher plant utilization and a change in product mix during the current six month period. The current cost of product sold percentage is expected to decrease significantly for the balance of the fiscal year due to both increased plant utilization and an improved product mix.

Cost of service sold was $99,718 (75.5% of service sales) compared with $75,948 (66.4% of service sales) for the six months ended March 31, 2015. The dollar and percentage increase was due primarily to lower plant utilization and product specifics of chargeable repairs. The cost of services sold percentage is expected to decrease slightly for the balance of the fiscal year.

Product development expenses were $519,483 (22.7% of product sales) compared to $496,445 (23.2% of product sales) for the six months ended March 31, 2015. The percentage decrease was due primarily to higher product sales during the current six months of fiscal 2016. The dollar increase was due primarily to an increase in labor costs, telephone expense and depreciation of approximately $15,000, $7,000 and $5,000 respectively, offset in part by a decrease in travel expense, and research and experimental material of approximately $3,000 and $1,000 respectively. The current level of product development expenses is expected to continue for the balance 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 $981,135 for the six months ended March 31, 2016 (40.5% of total sales) versus $799,969 (35.5% of total sales) for the six months ended March 31, 2015. The percentage and dollar increase was due primarily to the higher level of expenses for the current six months of fiscal 2016. Marketing expenses were approximately $368,000 during the first six months of the current fiscal year as compared to $306,000 for the same period a year ago. Within marketing expenses, increases were primarily in royalties, advertising expenses, labor costs, credit and collection expense, telephone expense, commission expense, travel expenses and promotion expenses of approximately $20,000, $18,000, $9,000, $6,000, $3,000, $3,000, $2,000 and $1,000 respectively. Administrative expenses were approximately $613,000 during the first six months of the current fiscal year as compared to $494,000 for the same period a year ago. The dollar increase was due primarily to increases in professional fees, depreciation, telephone expense, data processing expenses and labor costs of approximately $100,000, $13,000, $2,000, $1,000 and $1,000 respectively. The current level of marketing and administrative expenses are expected to decrease slightly for the remainder of the fiscal year unless professional fees beyond management's expectations are incurred related to the potential acquisition. See Discussions Regarding Potential Acquisition section below.

Interest expense was $3,336 for the six months ended March 31, 2016, and $299 for the same period in 2015. The interest charges in the current six month period were due to recording interest expense on the lease payable borrowing and the convertible note payable. The prior year interest was recorded on the convertible note payable only. The current level of interest expense is expected to increase significantly for the remainder of the fiscal year due to the lease payable borrowing payments to be made during the balance of the year.

Other income of $3,890 for the six months ended March 31, 2016 compares with other income of $5,298 in the same period last year. Other income consists primarily of interest income on cash and cash equivalents invested and the proceeds from the sale of scrap metal shavings. The decrease is due primarily to a lower level of scrap metal sales of approximately $1,400 during the current year six month period. The current level of other income is expected to continue for the remainder of fiscal 2016.

Income taxes during the first six months of fiscal 2016 were $0 which compares with income taxes of $0 in the first six months of fiscal 2015. In the first six months of fiscal 2016 recovery of income taxes was calculated at an effective tax rate of 37% offset by an increase in the valuation allowance netting to $0. In the first six months of fiscal 2015 income taxes were recorded at an effective tax rate of 37% offset by an increase in the valuation allowance netting to $0.

The net loss for the six months ended March 31, 2016 was $511,633 compared with a net loss of $547,319 for the six months ended March 31, 2015. The net loss for the first half of fiscal 2016 and 2015 was primarily the result of a low sales volume.

Liquidity and Capital Resources

Total current assets were $2,828,226, $3,486,491 and $2,722,723 at March 31, 2016, September 30, 2015 and March 31, 2015, respectively. The increase of approximately $106,000 from March to March was due primarily to the increase in cash and cash equivalents, inventory and prepaid expenses of approximately $99,000, $197,000 and $5,000 respectively, offset by a decrease in accounts receivable of approximately $195,000. The increase in cash and cash equivalents, and inventory was due primarily to the increase in the sales volume during the period. The decrease in accounts receivable was due to the collection orders shipped in the third and fourth quarter of fiscal 2015. The decrease from September to March of approximately $658,000 was due primarily to the decrease in accounts receivable and prepaid expenses of approximately $704,000 and $39,000 respectively, offset in part by an increase in inventory and cash and cash equivalents of approximately $49,000 and $35,000 respectively. The decrease in accounts receivable was due primarily to the collection of sales during the period. The increase in inventory was due to the purchase of inventory for OEM orders to be shipped in the third quarter of fiscal 2016.

Working capital as of March 31, 2016 amounted to $1,724,059 as compared with $1,834,677 a year earlier. Current assets were 2.6 times current liabilities compared to 3.1 a year ago. The quick ratio was .7 compared to 1.0 a year ago.

Internally generated funds during the six months ended March 31, 2016 were $65,225 and were not adequate to fund the Company's primary non-operating cash requirements consisting of capital expenditures of $247,822. The primary reason for the cash flow from operations was the decrease in accounts receivable and prepaid expenses of approximately $703,583 and $38,979, offset in part by the net loss during the period of $511,633 and an increase in inventory, a decrease in accounts payable and accrued expenses of $48,859, $37,012 and $142,833 respectively. The Company does anticipate additional capital expenditures during fiscal 2016 of approximately $50,000 primarily to complete 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 six months ended March 31, 2016 decreased by $511,633 which was the net loss during the period.

Whenever there may be a requirement to increase inventory in fiscal 2016, there will be a negative but temporary impact on liquidity. Management continues to tightly control expenses and will take actions as deemed necessary to manage its working capital.

In December 2015, management entered into Amendment No. 4 of the Convertible Loan Agreement which may provide up to approximately $467,000 of liquidity to meet on going working capital requirements. The Convertible Loan Agreement, as amended, is between the Company and a major shareholder who is also affiliated with two Directors, as discussed in Note 4 to the Company's financial statements. This amended agreement modified the terms of the previously amended agreement by extending the due date of the loan agreement from December 30, 2015 to December 30, 2016 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 March 31, 2016 this balance is outstanding.

Discussions Regarding Potential Acquisition

The Company signed a Merger Agreement on January 8, 2016 with First Francis Company, Inc.("First Francis"), an entity affiliated with Edward F. Crawford and Matthew V. Crawford, directors of the Company, concerning a potential acquisition of Federal Hose Manufacturing LLC, a wholly owned subsidiary of First Francis ("Federal Hose"). The Merger Agreement provides that the Company will 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; and (iii) $4,768,662 in certain promissory notes to be issued by the Company, which will bear interest at an annual rate of 4% payable quarterly, be subject to redemption over a mandatory 10-year amortization schedule and is required to be fully redeemed within six years of their issuance date.
 
Information concerning this proposed 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 any such transaction would be subject to a number of conditions precedent, including the receipt of third party consents, and the satisfaction of other customary conditions precedent. In addition, shareholder approval of the transactions contemplated by the Merger Agreement will be required, including with respect to the issuance of Class B Common Shares, which requires separate approval of the holders of a two-thirds majority of the Company's Class A Common Shares. We cannot assure you that the proposed transaction will be consummated or as to the timing thereof. Before the closing of the merger, the shareholders of the Company must approve the transactions contemplated by the Agreement at the Special Shareholders meeting to be held on June 22, 2016.

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, 2015.

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, fastening systems 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 risks are exposure related to interest rate risk and equity market fluctuations. The Company's funds available from the convertible note and leases payable were the only debt subject to interest rates during the current quarter. The Company currently has available under the convertible note agreement a credit facility subject to a nominal fixed rate of interest and the leases payable are at fixed rates. As a result, the Company believes that the market risk related to interest rate movements is minimal. The Company had $200,000 of outstanding borrowings under this credit facility at March 31, 2016. In addition, the Company had $218,035 of outstanding borrowing under the leases at March 31, 2016.

Item 4. Controls and Procedures.

As of March 31, 2016, 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 March 31, 2016 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 second fiscal quarter ended March 31, 2016 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 2015 including the scheduling of a jury trial date of June 13, 2016 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 Extension Definition
101.LAB**	XBRL 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: May 13, 2016	/s/ R. L. Bauman
	R. L. Bauman, Chief Executive Officer, President, and Treasurer
Date: May 13, 2016	/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
March 31,  Six Months Ended
March 31,

	2016	2015	2016	2015
NET INCOME
Net Income (loss) applicable to common shares for basic earnings per share	$(464,444)	$(276,663)	$(511,633)	$(547,319)
Net Income (loss) applicable to common shares for diluted earnings per share	$(464,444)	$(276,663)	$(511,633)	$(547,319)
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	-*	-*	-*	-*
Total shares for diluted earnings per share	1,638,215	1,638,215	1,638,215	1,638,215
Basic Earnings Per Common Share	$(.28)	$(.17)	$(.31)	$(.33)
Diluted Earnings Per Common Share	$(.28)	$(.17)	$(.31)	$(.33)

* 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

May 13, 2016

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

May 13, 2016

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 March 31, 2016 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

May 13, 2016

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 March 31, 2016 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

May 13, 2016

XML

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2016	May. 09, 2016
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
Trading Symbol	hicka
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	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Income Statements (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Net Sales
Product Sales	$ 984,241	$ 1,038,783	$ 2,291,407	$ 2,139,097
Service Sales	62,383	52,399	132,089	114,303
Total Net Sales	1,046,624	1,091,182	2,423,496	2,253,400
Costs and Expenses
Cost of Product Sold	642,312	673,846	1,335,347	1,433,356
Cost of Service Sold	52,232	35,345	99,718	75,948
Product Development	272,710	260,507	519,483	496,445
Marketing and Administrative Expenses	542,910	400,570	981,135	799,969
Interest Charges	3,162	171	3,336	299
Other Income	(2,258)	(2,594)	(3,890)	(5,298)
Total Costs and Expenses	1,511,068	1,367,845	2,935,129	2,800,719
Income (Loss) before Provision for Income Taxes	$ (464,444)	$ (276,663)	$ (511,633)	$ (547,319)
Provision for (Recovery of) Income Taxes
Net Income (Loss)	$ (464,444)	$ (276,663)	$ (511,633)	$ (547,319)
Earnings per Common Share:
Net Income (Loss) (in dollars per share)	$ (0.28)	$ (0.17)	$ (0.31)	$ (0.33)
Earnings per Common Share Assuming Dilution:
Net Income (Loss) (in dollars per share)	(0.28)	(0.17)	(0.31)	(0.33)
Dividends per Common Share (in dollars per share)	$ 0	$ 0	$ 0	$ 0

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Consolidated Balance Sheet (Unaudited) - USD ($)	Mar. 31, 2016	Sep. 30, 2015	Mar. 31, 2015
Common Class A [Member]
Stockholders' Equity
Common stock, value	$ 1,261,188	$ 1,261,188	$ 1,261,188
Common Class B [Member]
Stockholders' Equity
Common stock, value	474,866	474,866	474,866
Cash and Cash Equivalents	381,843	346,405	282,401
Trade Accounts Receivable-Net	$ 397,971	$ 1,101,554	$ 593,265
Notes Receivable - Current
Inventories	$ 1,975,372	$ 1,926,513	$ 1,778,854
Prepaid Expenses	73,040	112,019	68,203
Total Current Assets	2,828,226	3,486,491	2,722,723
Land	233,479	233,479	233,479
Buildings	1,440,138	1,440,138	1,429,718
Machinery and Equipment	2,596,376	2,348,554	2,541,835
	4,269,993	4,022,171	4,205,032
Less: Allowance for Depreciation	3,709,937	3,646,937	3,833,311
Total Property - Net	560,056	375,234	371,721
Notes Receivable - Long-term	4,100	4,100	4,100
Deposits	750	750	1,750
Total Other Assets	4,850	4,850	5,850
Total Assets	3,393,132	$ 3,866,575	3,100,294
Convertible Notes Payable - related party	200,000		$ 200,000
Capital lease obligation on MIS computer equipment and software, payable in monthly installments of $2,059 including interest at approximately 1.04% per annum through December, 2017.	54,627
Trade Accounts Payable	260,749	$ 297,761	$ 206,049
Accrued Payroll & Related Expenses	77,626	167,770	141,637
Accrued Expenses	500,890	183,390	310,968
Accrued Taxes Other Than Income	$ 10,275	$ 40,764	$ 29,392
Accrued Income Taxes
Total Current Liabilities	$ 1,104,167	$ 689,685	$ 888,046
Convertible Notes Payable - related party		$ 200,000
Leases Payable	$ 163,408
Accrued Expenses		$ 339,700
Total Long-term Liabilities	$ 163,408	$ 539,700
Preferred, no par value; authorized 1,000,000 shares; no shares outstanding
Contributed Capital	$ 1,488,560	$ 1,488,560	$ 1,488,560
Retained Earnings (Deficit)	(1,099,057)	(587,424)	(1,012,366)
Total Stockholders' Equity	2,125,557	2,637,190	2,212,248
Total Liabilities and Stockholders' Equity	$ 3,393,132	$ 3,866,575	$ 3,100,294

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Consolidated Balance Sheet (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2016	Sep. 30, 2015	Mar. 31, 2015
Common Class A [Member]
Common stock, par value (in dollars per share)	$ 0	$ 0	$ 0
Common stock, shares authorized (in shares)	10,000,000	10,000,000	10,000,000
Common stock, shares outstanding (in shares)	1,163,349	1,163,349	1,163,349
Treasury stock, shares (in shares)	15,795	15,795	15,795
Common Class B [Member]
Common stock, par value (in dollars per share)	$ 0	$ 0	$ 0
Common stock, shares authorized (in shares)	2,500,000	2,500,000	2,500,000
Common stock, shares outstanding (in shares)	474,866	474,866	474,866
Treasury stock, shares (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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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities:
Cash received from customers	$ 3,127,079	$ 2,832,403
Cash paid to suppliers and employees	(3,059,419)	$ (2,915,519)
Interest paid	(2,991)
Interest received	$ 556	$ 645
Income taxes (paid) refunded
Net Cash Provided By (Used In) Operating Activities	$ 65,225	$ (82,471)
Cash Flows from Investing Activities:
Capital expenditures	(247,822)	(25,455)
Net Cash Provided By (Used In) Investing Activities	(247,822)	$ (25,455)
Cash Flows from Financing Activities:
Lease payable borrowing	233,115
Payments on lease payable borrowing	(15,080)
Net cash Provided By (Used In) Financing Activities	218,035
Net increase (decrease) in cash and cash equivalents	35,438	$ (107,926)
Cash and cash equivalents at beginning of year	346,405	390,327
Cash and cash equivalents at end of second quarter	381,843	282,401
Reconciliation of Net Income (Loss) to Net Cash Provided By (Used In) Operating Activities:
Net Income (Loss)	(511,633)	(547,319)
Adjustments to reconcile Net Income (Loss) to net cash provided by operating activities:
Depreciation	$ 63,000	32,760
Share-based compensation expense		$ 543
Deferred income taxes
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable	$ 703,583	$ 579,003
Decrease (Increase) in inventories	(48,859)	(64,657)
Decrease (Increase) in prepaid expenses	38,979	(30,214)
Increase (Decrease) in accounts payable	(37,012)	60,492
Increase (Decrease) in accrued payroll and related expenses	(90,144)	8,918
Increase (Decrease) in accrued expenses and accrued taxes other than income	(52,689)	(121,997)
Total Adjustments	576,858	464,848
Net Cash Provided By (Used In) Operating Activities	65,225	$ (82,471)
Supplemental Schedule of Non-Cash Activity:
Assets acquired by capital lease	$ 233,115

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Note 1 - Basis of Presentation

6 Months Ended

Mar. 31, 2016

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 month and six month periods ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ended September 30, 2016. 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, 2015.

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Note 2 - Inventories

6 Months Ended

Mar. 31, 2016

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:

	March 31, 2016		September 30, 2015		March 31, 2015
Components	$	1,238,650	$	1,254,294	$	1,140,410
Work-in-Process		594,481		499,752		508,069
Finished Product		142,241		172,467		130,375
	$	1,975,372	$	1,926,513	$	1,778,854

The above amounts are net of reserve for obsolete inventory in the amount of $219,292, $251,500 and $368,564 for the periods ended March 31, 2016, September 30, 2015 and March 31, 2015 respectively.

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Note 3 - Notes Receivable

6 Months Ended

Mar. 31, 2016

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 4 - Convertible Notes Payable

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

4.

Convertible Notes Payable

On December 30, 2011, management entered into a Convertible Loan Agreement with Roundball LLC. Over the past several years there have been several amendments to the original agreement.

On December 30, 2015, management entered into Amendment No. 4 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 an affiliate of two Directors extending the due date of the loan agreement from December 30, 2015 to December 30, 2016 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.34% of which $200,000 is outstanding at March 31, 2016.

During fiscal year ended September 30, 2014, the Company borrowed $200,000 against this agreement. As of March 31, 2016, the outstanding balance on the Roundball convertible note was $200,000.

As part of the Convertible Loan Agreement between the Company and Roundball LLC. the parties 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 or amended, this warrant would have expired on December 30, 2015.

On December 30, 2015, management entered into Amendment No. 1 of the Warrant Agreement with Roundball. The amended Warrant Agreement is by and between the Company and a major shareholder who is also an affiliate of two Directors extending the due date of the agreement from December 30, 2015 to December 30, 2016.

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 2016. The fair value of the warrants issued was amortized over the one-year amended convertible loan agreement period. The following weighted-average assumptions were used in the option pricing model: a risk free interest rate of 0.42%; an expected life of 1 year; an expected dividend yield of 0.0%; and a volatility factor of .84.

The Company recorded interest expense on the Roundball note of $171 and $345 for the three months and six month periods ended March 31, 2016 respectively.

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Note 5 - Warrant Agreement

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Warrants [Text Block]

5.

Warrant Agreement

In addition to the Warrant Agreement disclosed in Note 4. the Company and Robert L. 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. The warrant was not exercised, and expired on December 30, 2015.

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Note 6 - Capital Leases

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Capital Leases in Financial Statements of Lessee Disclosure [Text Block]

6

.

Capital Leases

	Current Portion 2016		Total March 31, 2016		Total March 31, 2015
Capital lease obligation on MIS computer equipment and software, payable in monthly installments of $2,059 including interest at approximately 1.04% per annum through December, 2017.	$	24,710	$	39,124	$	-
Capital lease obligation on IT computer equipment and software, payable in monthly installments of $3,888 including interest at approximately 9.83% per annum, through February, 2021.		29,917		178,911		-
	$	54,627		218,035		-
Less current portion				54,627		-
			$	163,408	$	-

The cost of fixed assets related to the capital leases is $233,115 which approximates book value at March 31, 2016.

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Note 7 - Capital Stock, Treasury Stock, Contributed Capital and Stock Options

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

7.

Capital Stock, Treasury Stock, Contributed Capital and Stock Options

Unissued shares of Class A common stock (832,233 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.

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 and 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 March 31, 2016.

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 5,000 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. The options are exercisable for up to 10 years. Options for 5,000 Class A shares were outstanding at March 31, 2016 (6,000 shares at September 30, 2015 and 20,000 shares at March 31, 2015) at prices ranging from $2.925 to $11.00 per share. Options for 1,000 shares expired during the three month period ended March 31, 2016 at $2.925 per share. In addition, options for 2,000 shares expired during the three month period ended March 31, 2015 at $6.45 per share. All outstanding options under the expired Directors Plans became 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 March 31, 2016:

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		4,000	$	2.925		5.8		4,000	$	2.925
$6.00	-	7.25		1,000	$	6.00		4.0		1,000	$	6.00
$10.50	-	$11.00		-		-		-		-		-
				5,000	$	3.54				5,000	$	3.54

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 six month periods ended March 31, 2016 and 2015 respectively $0 and $0; $0 and $543 was expensed as share-based compensation. The following weighted-average assumptions were used in the option pricing model for the three and six month periods ended March 31, 2016 and 2015 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 8 - Recently Issued Accounting Pronouncements

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

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

8.

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 March 2016, the Financial Accounting Standards Board (FASB) issued a new standard that changes the accounting for certain aspects of share-based payments to employees.  The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled.  In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from the other income tax cash flows.  The standard also allows us to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on our cash flow statements, and provides an accounting policy election to account for forfeitures as they occur.  The new standard is effective for us beginning October 1, 2017, with early adoption permitted.  This new standard is not expected to have a significant impact on the Company’s financial statements.

In February 2016, the FASB issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet.  Most prominent among the amendments  is the recognition of assets and liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP.  Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases.  The new standard will be effective for us beginning October 1, 2019, with early adoption permitted.  We are evaluating the impact this standard will have to our financial statements.

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 e entitled in exchange for those goods and services.” The update is effective for financial statement periods beginning after December 15, 2017, with early adoption prohibited. The Company has not determined the impact of this pronouncement on its financial statements and related disclosure.

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 9 - Earnings Per Common Share

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

9.

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						Six Months Ended
	March 31,						March 31,
	2016			2015			2016			2015
Basic Income (Loss) per Share
Income (Loss) available to common stockholders	$	(464,444	)	$	(276,663	)	$	(511,633	)	$	(547,319	)
Shares denominator		1,638,215			1,638,215			1,638,215			1,638,215
Per share amount	$	(.28	)	$	(.17	)	$	(.31	)	$	(.33	)
Effect of Dilutive Securities
Average shares outstanding		1,638,215			1,638,215			1,638,215			1,638,215
Stock options		-*			-*			-*			-*
		1,638,215			1,638,215			1,638,215			1,638,215
Diluted Income (Loss) per Share
Income (Loss) available to common stockholders	$	(464,444	)	$	(276,663	)	$	(511,633	)	$	(547,319	)
Per share amount	$	(.28	)	$	(.17	)	$	(.31	)	$	(.33	)

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

Options and warrants to purchase 5,000 and 100,000 shares of common stock respectively during the second quarter and the first six months of fiscal 2016 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 second quarter and the first six months of fiscal 2016 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 20,000 and 200,000 shares of common stock respectively during the second quarter and the first six 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 second quarter and the first six 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.

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Note 10 - Segment and Related Information

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10.

Segment and Related Information

The Company's four 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						Six Months Ended
	March 31,						March 31,
	2016			2015			2016			2015
Net Sales
Indicators and Gauges	$	271,937		$	355,267		$	514,060		$	600,936
Automotive Diagnostic Tools and Equipment		774,687			735,915			1,909,436			1,652,464
	$	1,046,624		$	1,091,182		$	2,423,496		$	2,253,400
Income (Loss) before provision for Income Taxes
Indicators and Gauges	$	32,162		$	62,103		$	63,236		$	64,596
Automotive Diagnostic Tools and Equipment		(134,105	)		(91,159	)		37,128			(122,547	)
General Corporate Expenses		(362,501	)		(247,607	)		(611,997	)		(489,368	)
	$	(464,444	)	$	(276,663	)	$	(511,633	)	$	(547,319	)
Asset Information
Indicators and Gauges							$	754,134		$	794,095
Automotive Diagnostic Tools and Equipment								1,613,917			1,575,734
Corporate								1,025,081			730,465
							$	3,393,132		$	3,100,294
Geographical Information
Included in the consolidated financial statements are the following amounts related to geographical locations:
Revenue:
United States	$	1,015,090		$	1,068,123		$	2,344,709		$	2,195,582
Australia		588			3,675			38,941			11,800
Canada		5,798			15,896			14,698			35,554
England		20,260			-			20,260			-
Mexico		4,360			3,488			4,360			10,464
Other foreign countries		528			-			528			-
	$	1,046,624		$	1,091,182		$	2,423,496		$	2,253,400

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

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Note 11 - Commitments and Contingencies

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

11.

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 12 - Subsequent Events

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Subsequent Events [Text Block]

12.

Subsequent Events

The Company has analyzed its operations subsequent to March 31, 2016 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, except as follows:

On January 8, 2016, the Company entered into an Agreement and Plan of Merger (Agreement) with First Francis Company Inc. (First Francis), the shareholders of First Francis, Federal Hose Manufacturing LLC (Federal Hose), a wholly owned subsidiary of First Francis, and Federal Hose Merger Sub, Inc. (Merger Sub), a wholly owned subsidiary of the Company. The Merger Sub will be merged with and into Federal Hose, with Federal Hose surviving the merger on the terms and conditions set forth in the Agreement.

The consideration to be delivered to First Francis upon the closing of the merger shall be (i) the issuance by the Company to First Francis of 911,250 shares of the Company's Class A common capital stock, without par value, (ii) the issuance by the Company to First Francis of 303,750 shares of the Company's Class B common capital stock, without par value, and (iii) the issuance by the Company to First Francis of promissory notes in the original principal amounts of $2,768,662 and $2,000,000 (subject to adjustment as set forth in the Agreement), to be in the forms set forth in the Agreement, with such notes secured by a security interest in all of the Company's, Federal Hose's and Supreme Electronics' assets under the terms of a Security Agreement.

The Agreement may be terminated by mutual consent at any time prior to the closing, or if all conditions of the Agreement have not been satisfied by July 1, 2016.

Before the closing of the merger, the shareholders of the Company must approve the transactions contemplated by the Agreement at the Special Shareholders meeting to be held on June 22, 2016.

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Note 13 - Business Condition and Management Plan

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Going Concern Disclosure [Text Block]

13.

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 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.

In addition, on December 30, 2015, 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 an affiliate of two Directors 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 2016. The Company had previously borrowed $200,000 and it is outstanding at March 31, 2016.

On December 30, 2015, management entered into Amendment No. 1 of the Warrant Agreement with Roundball. The amended Warrant Agreement is by and between the Company and a major shareholder who is also an affiliate of two Directors extending the due date of the agreement from December 30, 2015 to December 30, 2016.

Management’s strategic plan to increase revenues and profitability through increased sales of existing products, the introduction of new products to the market place and the cash generated from the completion of the large orders from a Tier 1 Supplier during the prior fiscal year, 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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Note 2 - Inventories (Tables)

6 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	March 31, 2016		September 30, 2015		March 31, 2015
Components	$	1,238,650	$	1,254,294	$	1,140,410
Work-in-Process		594,481		499,752		508,069
Finished Product		142,241		172,467		130,375
	$	1,975,372	$	1,926,513	$	1,778,854

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Note 6 - Capital Leases (Tables)

6 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Capital Leased Assets [Table Text Block]

	Current Portion 2016		Total March 31, 2016		Total March 31, 2015
Capital lease obligation on MIS computer equipment and software, payable in monthly installments of $2,059 including interest at approximately 1.04% per annum through December, 2017.	$	24,710	$	39,124	$	-
Capital lease obligation on IT computer equipment and software, payable in monthly installments of $3,888 including interest at approximately 9.83% per annum, through February, 2021.		29,917		178,911		-
	$	54,627		218,035		-
Less current portion				54,627		-
			$	163,408	$	-

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Note 7 - Capital Stock, Treasury Stock, Contributed Capital and Stock Options (Tables)

6 Months Ended

Mar. 31, 2016

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		4,000	$	2.925		5.8		4,000	$	2.925
$6.00	-	7.25		1,000	$	6.00		4.0		1,000	$	6.00
$10.50	-	$11.00		-		-		-		-		-
				5,000	$	3.54				5,000	$	3.54

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Note 9 - Earnings Per Common Share (Tables)

6 Months Ended

Mar. 31, 2016

Notes Tables

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

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2016			2015			2016			2015
Basic Income (Loss) per Share
Income (Loss) available to common stockholders	$	(464,444	)	$	(276,663	)	$	(511,633	)	$	(547,319	)
Shares denominator		1,638,215			1,638,215			1,638,215			1,638,215
Per share amount	$	(.28	)	$	(.17	)	$	(.31	)	$	(.33	)
Effect of Dilutive Securities
Average shares outstanding		1,638,215			1,638,215			1,638,215			1,638,215
Stock options		-*			-*			-*			-*
		1,638,215			1,638,215			1,638,215			1,638,215
Diluted Income (Loss) per Share
Income (Loss) available to common stockholders	$	(464,444	)	$	(276,663	)	$	(511,633	)	$	(547,319	)
Per share amount	$	(.28	)	$	(.17	)	$	(.31	)	$	(.33	)

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Note 10 - Segment and Related Information (Tables)

6 Months Ended

Mar. 31, 2016

Notes Tables

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

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2016			2015			2016			2015
Net Sales
Indicators and Gauges	$	271,937		$	355,267		$	514,060		$	600,936
Automotive Diagnostic Tools and Equipment		774,687			735,915			1,909,436			1,652,464
	$	1,046,624		$	1,091,182		$	2,423,496		$	2,253,400
Income (Loss) before provision for Income Taxes
Indicators and Gauges	$	32,162		$	62,103		$	63,236		$	64,596
Automotive Diagnostic Tools and Equipment		(134,105	)		(91,159	)		37,128			(122,547	)
General Corporate Expenses		(362,501	)		(247,607	)		(611,997	)		(489,368	)
	$	(464,444	)	$	(276,663	)	$	(511,633	)	$	(547,319	)
Asset Information
Indicators and Gauges							$	754,134		$	794,095
Automotive Diagnostic Tools and Equipment								1,613,917			1,575,734
Corporate								1,025,081			730,465
							$	3,393,132		$	3,100,294
Geographical Information
Included in the consolidated financial statements are the following amounts related to geographical locations:
Revenue:
United States	$	1,015,090		$	1,068,123		$	2,344,709		$	2,195,582
Australia		588			3,675			38,941			11,800
Canada		5,798			15,896			14,698			35,554
England		20,260			-			20,260			-
Mexico		4,360			3,488			4,360			10,464
Other foreign countries		528			-			528			-
	$	1,046,624		$	1,091,182		$	2,423,496		$	2,253,400

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Note 2 - Inventories (Details Textual) - USD ($)	Mar. 31, 2016	Sep. 30, 2015	Mar. 31, 2015
Inventory Valuation Reserves	$ 219,292	$ 251,500	$ 368,564

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Note 2 - Inventory (Details) - USD ($)	Mar. 31, 2016	Sep. 30, 2015	Mar. 31, 2015
Components	$ 1,238,650	$ 1,254,294	$ 1,140,410
Work-in-Process	594,481	499,752	508,069
Finished Product	142,241	172,467	130,375
	$ 1,975,372	$ 1,926,513	$ 1,778,854

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Note 3 - Notes Receivable (Details Textual)	3 Months Ended
	Mar. 31, 2016
Unsecured Note Receivable Interest Rate	3.00%

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Note 4 - Convertible Notes Payable (Details Textual) - USD ($)		3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 30, 2015	Mar. 31, 2016	Mar. 31, 2016	Dec. 30, 2016	Sep. 30, 2014	Dec. 31, 2015	Dec. 30, 2012
Director [Member] | Roundball LLC [Member] | Convertible Notes Payable [Member]
Working Capital Funding	$ 467,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000
Roundball LLC [Member] | Amendment No. 1 [Member] | Warrant to Purchase Class A Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights							$ 2.50
Roundball LLC [Member]
Interest Expense, Debt		$ 171	$ 345
Debt Instrument, Interest Rate, Stated Percentage						0.34%
Line of Credit Facility, Fair Value of Amount Outstanding		$ 200,000	$ 200,000
Proceeds from Convertible Debt					$ 200,000
Warrant Term				1 year
Fair Value Assumptions, Risk Free Interest Rate				0.42%
Fair Value Assumptions, Expected Term	1 year
Fair Value Assumptions, Expected Dividend Rate				0.00%
Fair Value Assumptions, Weighted Average Volatility Rate				0.84%

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Note 5 - Warrant Agreement (Details Textual) - Robert L Bauman [Member] - Common Class A [Member]	Dec. 30, 2012 $ / shares shares
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

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Note 6 - Capital Leases (Details Textual) - USD ($)	Mar. 31, 2016	Sep. 30, 2015	Mar. 31, 2015
Assets Held under Capital Leases [Member]
Property, Plant and Equipment, Gross	$ 233,115
Property, Plant and Equipment, Gross	$ 4,269,993	$ 4,022,171	$ 4,205,032

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Note 6 - Capital Leased Assets (Details) - USD ($)	Mar. 31, 2016	Sep. 30, 2015	Mar. 31, 2015
Assets Held Under Capital Leases, MIS Computer Equipment [Member]
Capital lease obligation on MIS computer equipment and software, payable in monthly installments of $2,059 including interest at approximately 1.04% per annum through December, 2017.	$ 24,710
Capital lease obligation on MIS computer equipment and software, payable in monthly installments of $2,059 including interest at approximately 1.04% per annum through December, 2017.	39,124
Less current portion	24,710
Assets Held Under Capital Leases, IT Computer Equipment [Member]
Capital lease obligation on MIS computer equipment and software, payable in monthly installments of $2,059 including interest at approximately 1.04% per annum through December, 2017.	29,917
Capital lease obligation on MIS computer equipment and software, payable in monthly installments of $2,059 including interest at approximately 1.04% per annum through December, 2017.	178,911
Less current portion	29,917
Capital lease obligation on MIS computer equipment and software, payable in monthly installments of $2,059 including interest at approximately 1.04% per annum through December, 2017.	54,627
Capital lease obligation on MIS computer equipment and software, payable in monthly installments of $2,059 including interest at approximately 1.04% per annum through December, 2017.	218,035
Less current portion	54,627
	$ 163,408

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Note 6 - Capital Leased Assets (Details) (Parentheticals) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2016	Mar. 31, 2015
Assets Held Under Capital Leases, MIS Computer Equipment [Member] | Debt Instrument, Maturing at December, 2017 [Member]
Interest rate	1.04%	1.04%
Assets Held Under Capital Leases, MIS Computer Equipment [Member]
Monthly Installment	$ 2,059	$ 2,059
Assets Held Under Capital Leases, IT Computer Equipment [Member] | Debt Instrument, Maturing at February, 2021 [Member]
Interest rate	9.83%	9.83%
Assets Held Under Capital Leases, IT Computer Equipment [Member]
Monthly Installment	$ 3,888	$ 3,888

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Note 7 - Capital Stock, Treasury Stock, Contributed Capital and Stock Options (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015	Feb. 27, 2013
Common Class A [Member] | Omnibus 2013 Equity Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance						150,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	0
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, Options, Outstanding, Number	5,000	20,000	5,000	20,000	6,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	1,000	2,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 2.925	$ 6.45
Common Class A [Member]
Common Stock, Capital Shares Reserved for Future Issuance	832,233		832,233
Directors Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Allocated Share-based Compensation Expense	$ 0	$ 0	$ 0	$ 543
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%

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Note 7 - Summary of Expired Director Plans (Details)	3 Months Ended
	Mar. 31, 2016 $ / shares shares
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) | shares	4,000
Outstanding, weighted average share price (in dollars per share) (in dollars per share)	$ 2.925
Weighted average remaining life	5 years 292 days
Number of stock options exercisable (in shares) | shares	4,000
Exercisable, weighted average share price (in dollars per share)	$ 2.925
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)	$ 7.25
Outstanding stock options (in shares) | shares	1,000
Outstanding, weighted average share price (in dollars per share) (in dollars per share)	$ 6
Weighted average remaining life	4 years
Number of stock options exercisable (in shares) | shares	1,000
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) | shares
Outstanding, weighted average share price (in dollars per share) (in dollars per share)
Weighted average remaining life
Number of stock options exercisable (in shares) | shares
Exercisable, weighted average share price (in dollars per share)
Outstanding stock options (in shares) | shares	5,000
Outstanding, weighted average share price (in dollars per share) (in dollars per share)	$ 3.54
Weighted average remaining life
Number of stock options exercisable (in shares) | shares	5,000
Exercisable, weighted average share price (in dollars per share)	$ 3.54

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Note 9 - Earnings Per Common Share (Details Textual) - $ / shares	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,000	20,000	5,000	20,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	100,000	200,000	100,000	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	252,367
Share Price	$ 1.85	$ 1.85	$ 1.85	$ 1.85

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Note 9 - Summary of Earnings Per Share Calculation (Details) - USD ($)		3 Months Ended		6 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Earnings per Common Share:
Income (Loss) available to common stockholders		$ (464,444)	$ (276,663)	$ (511,633)	$ (547,319)
Shares denominator (in shares)		1,638,215	1,638,215	1,638,215	1,638,215
Net Income (Loss) (in dollars per share)		$ (0.28)	$ (0.17)	$ (0.31)	$ (0.33)
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)	[1]
(in shares)		1,638,215	1,638,215	1,638,215	1,638,215
Earnings per Common Share Assuming Dilution:
Income (Loss) available to common stockholders		$ (464,444)	$ (276,663)	$ (511,633)	$ (547,319)
Per share amount (in dollars per share)		$ (0.28)	$ (0.17)	$ (0.31)	$ (0.33)

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

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Note 10 - Segment and Related Information (Details Textual)	3 Months Ended
	Mar. 31, 2016
Number of Operating Segments	4
Number of Reportable Segments	2

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Note 10 - Information by Industry Segment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Indicators and Gauges [Member]
Net Sales
Revenue	$ 271,937	$ 355,267	$ 514,060	$ 600,936
Income (Loss) before provision for Income Taxes
Income (Loss) before provision for Income Taxes	32,162	62,103	63,236	64,596
Asset Information
Assets	754,134	794,095	754,134	794,095
Revenue:
Revenue	271,937	355,267	514,060	600,936
Automotive Diagnostic Tools and Equipment [Member]
Net Sales
Revenue	774,687	735,915	1,909,436	1,652,464
Income (Loss) before provision for Income Taxes
Income (Loss) before provision for Income Taxes	(134,105)	(91,159)	37,128	(122,547)
Asset Information
Assets	1,613,917	1,575,734	1,613,917	1,575,734
Revenue:
Revenue	774,687	735,915	1,909,436	1,652,464
Corporate Segment [Member]
Income (Loss) before provision for Income Taxes
Income (Loss) before provision for Income Taxes	(362,501)	(247,607)	(611,997)	(489,368)
Asset Information
Assets	1,025,081	730,465	1,025,081	730,465
UNITED STATES
Net Sales
Revenue	1,015,090	1,068,123	2,344,709	2,195,582
Revenue:
Revenue	1,015,090	1,068,123	2,344,709	2,195,582
AUSTRALIA
Net Sales
Revenue	588	3,675	38,941	11,800
Revenue:
Revenue	588	3,675	38,941	11,800
CANADA
Net Sales
Revenue	5,798	15,896	14,698	35,554
Revenue:
Revenue	5,798	15,896	14,698	35,554
England [Member]
Net Sales
Revenue	20,260		20,260
Revenue:
Revenue	20,260		20,260
MEXICO
Net Sales
Revenue	4,360	3,488	4,360	10,464
Revenue:
Revenue	4,360	3,488	4,360	10,464
Other Foreign Countries [Member]
Net Sales
Revenue	528		528
Revenue:
Revenue	528		528
Revenue	1,046,624	1,091,182	2,423,496	2,253,400
Income (Loss) before provision for Income Taxes	(464,444)	(276,663)	(511,633)	(547,319)
Assets	3,393,132	3,100,294	3,393,132	3,100,294	$ 3,866,575
Revenue	$ 1,046,624	$ 1,091,182	$ 2,423,496	$ 2,253,400

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Note 12 - Subsequent Events (Details Textual) - Federal Hose [Member] - First Francis [Member]	Jan. 08, 2016 USD ($) shares
Common Class A [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	911,250
Common Class B [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	303,750
Promissory Note 1 [Member]
Debt Instrument, Face Amount | $	$ 2,768,662
Promissory Note 2 [Member]
Debt Instrument, Face Amount | $	$ 2,000,000

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Note 13 - Business Condition and Management Plan (Details Textual) - USD ($)	Mar. 31, 2016	Dec. 30, 2015	Sep. 30, 2015	Mar. 31, 2015
Roundball LLC [Member] | Director [Member] | Amendment No.4 [Member]
Working Capital Funding		$ 467,000
Line of Credit Facility, Current Borrowing Capacity		$ 250,000
Convertible Notes Payable, Current	$ 200,000
Convertible Notes Payable, Current	$ 200,000			$ 200,000