Note 5 - Short-term Financing

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Short-term Debt [Text Block]

5.

Short-term Financing

On June 3, 2016, management entered into an unsecured revolving credit agreement with First Francis Company Inc. First Francis Company Inc, became a major shareholder of the Company on July 1, 2016 when the Company entered into an Agreement and Plan of Merger with First Francis Company Inc. owner of Federal Hose, Federal Hose, and Mr. Edward Crawford and Mr. Matthew Crawford, each of whom are the shareholders of First Francis Company Inc. Edward Crawford and Matthew Crawford serve on the Board of directors of Hickok Incorporated. Matthew Crawford is the son of Edward Crawford.

The agreement provides for a revolving credit facility of $250,000 with interest at 4.0% per annum and is unsecured. Each loan made under the credit arrangement will be due and payable in full on the expiration date of the revolver note. In addition, the agreement generally allows for borrowing based on an amount equal to eighty percent of eligible accounts receivables or $250,000. The revolving line of credit expires on May 31, 2017.

The Company has borrowed $250,000 against this credit facility during the quarter ended June 30, 2016 and has recorded interest expense of $333 during the current period and as of June 30, 2016 no interest was paid. As of June 30, 2016 the outstanding balance on this credit facility was $250,000.