Note 5 - Short - Term Financing

12 Months Ended

Sep. 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 completed the acquisition of Federal Hose pursuant to an Agreement and Plan of Merger with First Francis Company Inc. as 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 recorded interest expense of

$2,889

for fiscal

2016.

Interest of

$2,889

was paid on the above credit facility as of

September

30,

2016.

The Company had

$250,000

outstanding borrowings on the credit facility at

September

30,

2016.

On

October

11,

2016,

the outstanding balance of

$250,000

plus accrued interest was paid in full.

Selected details of short - term borrowings for fiscal

2016

and

2015

are as follows:

	Amount		Weighted Average Interest Rate
Balance at September 30, 2016	$	250,000		4.00	%
Average during 2016	$	83,333		4.00	%
Maximum during 2016 (month end)	$	250,000		4.00	%
Balance at September 30, 2015	$	-		.00	%
Average during 2015	$	-		.00	%
Maximum during 2015 (month end)	$	-		.00	%