Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Mar. 31, 2014 | Jan. 02, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | HICKOK INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -21 | ||
Entity Public Float | $1,500,888 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 47307 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 30-Sep-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,163,349 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 474,866 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $390,327 | $938,852 |
Accounts receivable-less allowance for doubtful accounts of $10,000 ($10,000, 2013) | 1,172,268 | 638,316 |
Notes receivable-current | 0 | 0 |
Inventories-less allowance for obsolete inventory of $363,500 ($793,000, 2013) | 1,714,197 | 1,589,816 |
Deferred income taxes-less valuation allowance of $107,700 ($334,200, 2013) | 0 | 0 |
Prepaid expenses | 37,989 | 32,342 |
Total Current Assets | 3,314,781 | 3,199,326 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land | 233,479 | 233,479 |
Buildings | 1,429,718 | 1,429,718 |
Machinery and equipment | 2,516,380 | 2,388,762 |
4,179,577 | 4,051,959 | |
Less accumulated depreciation | 3,800,551 | 3,752,452 |
379,026 | 299,507 | |
OTHER ASSETS: | ||
Deferred income taxes-less valuation allowance of $4,059,000 ($3,788,100, 2013) | 0 | 0 |
Notes receivable-long-term | 4,100 | 4,100 |
Deposits | 1,750 | 1,750 |
5,850 | 5,850 | |
Total Assets | 3,699,657 | 3,504,683 |
CURRENT LIABILITIES: | ||
Accounts payable | 145,557 | 174,236 |
Accrued payroll and related expenses | 132,719 | 142,519 |
Accrued expenses | 178,815 | 395,426 |
Accrued taxes other than income | 48,342 | 44,691 |
Total Current Liabilities | 505,433 | 756,872 |
LONG-TERM LIABILITIES: | ||
Convertible notes payable - related party | 200,000 | |
Accrued expenses | 235,200 | |
Total Long-term Liabilities | 435,200 | |
STOCKHOLDERS' EQUITY: | ||
Preferred 1,000,000 shares authorized, no shares outstanding | ||
Contributed capital | 1,741,358 | 1,738,521 |
Treasury shares - 15,795 (2014 and 2013) Class A shares and 667 (2014 and 2013) Class B shares | -253,341 | -253,341 |
Retained earnings | -465,047 | -473,423 |
Total Stockholders' Equity | 2,759,024 | 2,747,811 |
Total Liabilities and Stockholders' Equity | 3,699,657 | 3,504,683 |
Common Class A [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Class of common stock - value | 1,261,188 | 1,261,188 |
Common Class B [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Class of common stock - value | $474,866 | $474,866 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parentheticals) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Accounts receivable-less allowance for doubtful accounts (in Dollars) | $10,000 | $10,000 |
Inventories-less allowance for obsolete inventory (in Dollars) | 363,500 | 793,000 |
Deferred income taxes-less valuation allowance (in Dollars) | 107,700 | 334,200 |
Deferred income taxes-less valuation allowance (in Dollars) | $4,059,000 | $3,788,100 |
Preferred stock - par value (in Dollars per share) | $0 | $0 |
Preferred stock - shares authorized | 1,000,000 | 1,000,000 |
Preferred stock - shares outstanding | 0 | 0 |
Common Class A [Member] | ||
Class of common stock - par value (in Dollars per share) | $0 | $0 |
Class of common stock - shares authorized | 10,000,000 | 10,000,000 |
Class of common stock - shares outstanding | 1,163,349 | 1,163,349 |
Treasury shares | 15,795 | 15,795 |
Common Class B [Member] | ||
Class of common stock - par value (in Dollars per share) | $0 | $0 |
Class of common stock - shares authorized | 2,500,000 | 2,500,000 |
Class of common stock - shares outstanding | 475,533 | 475,533 |
Treasury shares | 667 | 667 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
NET SALES: | |||
Product sales | $6,078,349 | $6,190,260 | $4,442,133 |
Service sales | 227,487 | 275,912 | 319,156 |
Total Net Sales | 6,305,836 | 6,466,172 | 4,761,289 |
COSTS AND EXPENSES: | |||
Cost of product sold | 3,462,092 | 3,359,727 | 2,787,212 |
Cost of services sold | 149,068 | 138,307 | 216,949 |
Product development | 965,975 | 939,373 | 938,058 |
Marketing and administrative expenses | 1,728,107 | 1,812,598 | 1,616,320 |
Interest charges | 6,592 | 91,178 | 5,956 |
Other income | -14,374 | -13,816 | -19,240 |
Total Costs and Expenses | 6,297,460 | 6,327,367 | 5,545,255 |
Income (Loss) before Provision for Income Taxes | 8,376 | 138,805 | -783,966 |
Provision For Income Taxes: | |||
Current | -44,400 | 114,400 | |
Deferred | 44,400 | -114,400 | |
0 | 0 | 0 | |
Net Income (Loss) | $8,376 | $138,805 | ($783,966) |
NET Income (LOSS) PER COMMON SHARE - BASIC (in Dollars per share) | $0.01 | $0.09 | ($0.57) |
NET Income (LOSS) PER COMMON SHARE - DILUTED (in Dollars per share) | $0.01 | $0.08 | ($0.57) |
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING (in Shares) | 1,638,215 | 1,610,571 | 1,372,812 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Common Class A [Member] | Common Class B [Member] | Retained Earnings [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Total |
Common Stock [Member] | Common Stock [Member] | |||||
Balance at October 1, 2011 at Sep. 30, 2011 | $793,229 | $454,866 | $171,738 | $1,862,652 | ($661,676) | $2,620,809 |
Sale of Class B shares from treasury | 20,000 | -391,335 | 408,335 | 37,000 | ||
Conversion of convertible notes payable to Class A shares | 252,368 | 214,511 | 466,879 | |||
Convertible notes issue cost | -34,235 | -34,235 | ||||
Share-based compensation expense | 11,388 | 11,388 | ||||
Net Income (loss) | -783,966 | -783,966 | ||||
Balance at Sep. 30, 2012 | 1,045,597 | 474,866 | -612,228 | 1,662,981 | -253,341 | 2,317,875 |
Balance at October 1, 2011 at Sep. 30, 2012 | ||||||
Fees for additional authorized Class A, Class B and Preferred shares | -21,925 | -21,925 | ||||
Conversion of convertible notes payable to Class A shares | 208,591 | 208,591 | ||||
Class A shares issued for professional services | 7,000 | 7,000 | ||||
Warrants issued for debt offering | 91,000 | 91,000 | ||||
Share-based compensation expense | 6,465 | 6,465 | ||||
Net Income (loss) | 138,805 | 138,805 | ||||
Balance at Sep. 30, 2013 | 1,261,188 | 474,866 | -473,423 | 1,738,521 | -253,341 | 2,747,811 |
Balance at October 1, 2011 at Sep. 30, 2013 | ||||||
Share-based compensation expense | 2,837 | 2,837 | ||||
Net Income (loss) | 8,376 | 8,376 | ||||
Balance at Sep. 30, 2014 | $1,261,188 | $474,866 | ($465,047) | $1,741,358 | ($253,341) | $2,759,024 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Cash received from customers | $5,771,884 | $6,530,702 | $4,781,174 |
Cash paid to suppliers and employees | -6,373,180 | -5,848,654 | -5,177,377 |
Interest paid | -6,174 | -6,641 | |
Interest received | 659 | 3,874 | 1,057 |
Net Cash Provided by (Used in) Operating Activities | -606,811 | 685,922 | -401,787 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | -141,714 | -14,443 | -55,180 |
Payments received (advances) on notes receivable | 30,500 | 3,500 | |
Proceeds on sale of assets | 9,500 | ||
Net Cash Provided by (Used in) Investing Activities | -141,714 | 16,057 | -42,180 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Short-term borrowings | 683,400 | 250,000 | |
Payments on short-term borrowings | -683,400 | -250,000 | |
Payments on long-term borrowings | -250,000 | ||
Proceeds from Convertible Notes Payable | 200,000 | 675,470 | |
Sale of Class B shares from treasury | 37,000 | ||
Convertible notes issue costs | -34,235 | ||
Cost for additional authorized shares | -21,925 | ||
Net Cash Provided by (Used in) Financing Activities | 200,000 | -21,925 | 428,235 |
Increase (Decrease) in Cash and Cash Equivalents | -548,525 | 680,054 | -15,732 |
Cash and Cash Equivalents at Beginning of Year | 938,852 | 258,798 | 274,530 |
Cash and Cash Equivalents at End of Year | 390,327 | 938,852 | 258,798 |
RECONCILIATION OF NET INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: | |||
Net Income (Loss) | 8,376 | 138,805 | -783,966 |
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: | |||
Depreciation | 62,195 | 64,186 | 86,257 |
(Gain)loss on disposal of assets | -3,548 | ||
Share-based compensation expense | 2,837 | 6,465 | 11,388 |
Warrants issued for debt offering | 91,000 | ||
CHANGES IN ASSETS AND LIABILITIES: | |||
Decrease (Increase) in accounts receivable | -533,952 | 64,530 | 19,885 |
Decrease (Increase) in inventories | -124,381 | 144,954 | 229,173 |
Decrease (Increase) in prepaid expenses | -5,647 | 91,615 | -70,690 |
Increase (Decrease) in accounts payable | -28,679 | -4,599 | 4,987 |
Increase (Decrease) in accrued payroll and related expenses | -9,800 | -7,117 | 6,687 |
Increase (Decrease) in other accrued expenses and accrued taxes other than income and long-term liabilities | 22,240 | 89,083 | 98,040 |
Total Adjustments | -615,187 | 547,117 | 382,179 |
Net Cash Provided by (Used in) Operating Activities | -606,811 | 685,922 | -401,787 |
Supplemental Schedule of Non-Cash Financing Activities: | |||
Conversion of convertible notes payable to Class A shares | 208,591 | 466,879 | |
Professional Service Expense [Member] | |||
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: | |||
Non-cash professional service expense | $7,000 |
Note_1_Nature_of_Operations
Note 1 - Nature of Operations | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||
Nature of Operations [Text Block] | 1. NATURE OF OPERATIONS | ||||||||||||
Hickok Incorporated and its wholly-owned domestic subsidiaries ("Company") develop and manufacture products used by companies in the transportation and emissions testing industries. Among the products are indicators and gauges sold to companies in aircraft and locomotive markets. On a much larger scale, the Company manufactures diagnostic equipment used by technicians to test the various electronic systems in automobiles and trucks, and emissions testing equipment specified by various states for testing vehicle emissions. The Company serves the automotive, locomotive and general aviation markets predominately in North America. Sales in the Company's principal product classes, as a percent of consolidated sales, are as follows: | |||||||||||||
Product Classes | 2014 | 2012 | 2012 | ||||||||||
Automotive Test Equipment | 76.3 | % | 74.4 | % | 66.1 | % | |||||||
Indicating Instruments | 23.7 | 25.6 | 33.9 | ||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||
Current operating properties consist of a manufacturing plant in Greenwood, Mississippi, and a corporate headquarters, marketing and product development facility in Cleveland, Ohio. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Principles of Consolidation : | |||||||||||||
The consolidated financial statements include the accounts of Hickok Incorporated and its wholly-owned domestic subsidiaries. Significant intercompany transactions and balances have been eliminated in the financial statements. | |||||||||||||
New Accounting Standards : | |||||||||||||
The Company did not incur any material impact to its financial condition or results of operations due to the adoption of any new accounting standards during the periods reported. | |||||||||||||
In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. The standard, issued as Accounting Standards Update (ASU) 2014-09, outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The core principle of this model is that “an entity recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to e entitled in exchange for those goods and services.” The update is effective for financial statement periods beginning after December 15, 2016, with early adoption prohibited. The Company has not determined the impact of this pronouncement on its financial statements and related disclosure. | |||||||||||||
Concentration of Credit Risk : | |||||||||||||
The Company sells its products and services primarily to customers in the United States of America and to a lesser extent overseas. All sales are made in United States of America dollars. The Company extends normal credit terms to its customers. Customers in the automotive industry comprise 87% of outstanding receivables at September 30, 2014 (60% in 2013). Sales to three customers approximated $2,768,000, $341,000 and $284,000 (2014), $2,304,000, $651,000 and $242,000 (2013), $905,000, $710,000 and $229,000 (2012), and accounts receivable to these customers amounted to approximately $731,000, $90,000 and $65,000 (2014), and $99,000, $163,000 and $14,000 (2013). | |||||||||||||
Use of Estimates in the Preparation of Financial Statements : | |||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts of certain assets and liabilities and disclosure of contingencies at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Fair Value of Financial Instruments: | |||||||||||||
Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and convertible notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value. | |||||||||||||
Revenue Recognition : | |||||||||||||
The Company records sales as manufactured items are shipped to customers on an FOB shipping point arrangement, at which time title passes and the earnings process is complete. The Company primarily records service sales as the items are repaired. The customer does not have a right to return merchandise unless defective or warranty related and there are no formal customer acceptance provisions. Sales returns and allowances were immaterial during each of the three years in the period ending September 30, 2014. | |||||||||||||
Product Warranties : | |||||||||||||
The Company warrants certain products against defects for periods ranging primarily from 12 to 48 months. The Company's estimated future warranty claims is included in "Accrued expenses" and are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance October 1 | $ | 89 | $ | 451 | $ | 993 | |||||||
Current year provisions | 10,275 | 8,690 | 7,564 | ||||||||||
Expenditures | (10,355 | ) | (9,052 | ) | (8,106 | ) | |||||||
Balance September 30 | $ | 9 | $ | 89 | $ | 451 | |||||||
Product Development Costs : | |||||||||||||
Product development costs, which include engineering production support, are expensed as incurred. Research and development performed for customers represents no more than 1% of sales in each year. The arrangements do not include a repayment obligation by the Company. | |||||||||||||
Cash and Cash Equivalents : | |||||||||||||
For purposes of the Statement of Cash Flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. From time to time the Company maintains cash balances in excess of the FDIC limits. The cash balance at September 30, 2014 and 2013 amounted to $390,327 and $938,852, respectively. | |||||||||||||
Accounts Receivable : | |||||||||||||
The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. | |||||||||||||
Inventories : | |||||||||||||
Inventories are valued at the lower of cost (first-in, first-out) or market and consist of: | |||||||||||||
2014 | 2013 | ||||||||||||
Raw materials and component parts | $ | 1,066,672 | $ | 852,229 | |||||||||
Work-in-process | 521,424 | 590,687 | |||||||||||
Finished products | 126,101 | 146,900 | |||||||||||
$ | 1,714,197 | $ | 1,589,816 | ||||||||||
Property, Plant and Equipment : | |||||||||||||
Property, plant and equipment are carried at cost. Maintenance and repair costs are expensed as incurred. Additions and betterments are capitalized. The depreciation policy of the Company is generally as follows: | |||||||||||||
Class | Method | Estimated Useful Lives | |||||||||||
Buildings | Straight-line | 10 | - | 40 | years | ||||||||
Machinery and equipment | Straight-line | 3 | - | 10 | years | ||||||||
Tools and dies | Straight-line | 3 | years | ||||||||||
Depreciation amounted to $62,195 (2014), $64,186 (2013), and $86,257 (2012). | |||||||||||||
Valuation of Long-Lived Assets : | |||||||||||||
Long-lived assets such as property, plant and equipment and software are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the total of the expected future undiscounted cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying value of the asset. | |||||||||||||
Shipping and Handling Costs : | |||||||||||||
Shipping and handling costs are classified as cost of product sold. | |||||||||||||
Advertising Costs : | |||||||||||||
Advertising costs are expensed as incurred and amounted to $9,017 (2014), $6,558 (2013) and $6,940 (2012). | |||||||||||||
Income Taxes : | |||||||||||||
The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus any change in deferred taxes during the year. Deferred taxes result from differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. | |||||||||||||
Income per Common Share : | |||||||||||||
Income per common share information is computed on the weighted average number of shares outstanding during each period as disclosed in Note 10. |
Note_3_Notes_Receivable
Note 3 - Notes Receivable | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Receivables [Abstract] | |||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. NOTES RECEIVABLE | ||||||||||||
Selected details of notes receivable are as follows: | |||||||||||||
Current | Total | ||||||||||||
Portion | |||||||||||||
2014 | 2014 | 2013 | |||||||||||
Unsecured note receivable from current employee which bears interest at 3% per annum | $ | - | $ | 4,100 | $ | 4,100 | |||||||
$ | - | 4,100 | 4,100 | ||||||||||
Less current portion | - | - | |||||||||||
Long-term portion | $ | 4,100 | $ | 4,100 | |||||||||
Note_4_Convertible_Notes_Payab
Note 4 - Convertible Notes Payable | 12 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 4. CONVERTIBLE NOTES PAYABLE |
On December 30, 2011, Hickok Incorporated entered into a Convertible Loan Agreement with Roundball, LLC and the Aplin Family Trust. Under the Convertible Loan Agreement, the Company issued a convertible note to Roundball in the amount of $466,879 and a convertible note to the Aplin Family Trust in the amount of $208,591. In addition, Roundball, LLC had the right to cause the Company to borrow up to an additional $466,880 from Roundball, LLC. The notes were unsecured, bore interest at a rate of 0.20% per annum and were set to mature on December 30, 2012. | |
The notes were convertible by the Investors at any time into Class A Common Shares of the Company, at a conversion price of $1.85 per share, although up to no more than 504,735 Conversion Shares for Roundball and no more than 112,752 Conversion Shares for the Aplin Family Trust. The Company had the option to convert the notes at the expiration date, if the investors had not during the course of the agreement. On December 30, 2011, Roundball converted $233,438 into Class A Common Shares of the Company. In addition, on August 20, 2012 Roundball converted the remaining $233,441 under the Convertible Loan Agreement into Class A Common Shares of the Company. | |
On December 28, 2012, the Aplin Family Trust converted the $208,591 under the Convertible Loan Agreement into Class A Common Shares of the Company. | |
On December 30, 2012, management entered into an amended Convertible Loan Agreement with Roundball which may provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement was by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2012 to December 30, 2013 and modified the terms to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.24%. | |
In partial consideration for Amendment No. 1, the Company and Roundball entered into a Warrant Agreement, dated December 30, 2012, whereby the Company issued a warrant to Roundball to purchase, at its option, up to 100,000 shares of Class A Common Stock of the Company at an exercise price of $2.50 per share, subject to certain anti-dilution and other adjustments. If not exercised, this warrant will expire on December 30, 2015. Roundball is an affiliate of Steven Rosen, a Director of the Company. | |
The Company used the Black-Scholes option pricing model to determine the fair value estimate for recognizing the cost of services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. The warrants are immediately exercisable and expire in December 2015. The fair value of the warrants issued was amortized over the one-year amended convertible loan agreement period. During fiscal year ended September 30, 2013, $45,500 was expensed as non-cash interest expense. The following weighted-average assumptions were used in the option pricing model for the fiscal year ended September 30, 2013: a risk free interest rate of 0.42%; an expected life of 3 years; an expected dividend yield of 0.0%; and a volatility factor of .84. | |
On December 30, 2013, management entered into Amendment No. 2 of the Convertible Loan Agreement with Roundball which continued to provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement is by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2013 to December 30, 2014 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.25%. | |
During fiscal year ended September 30, 2014, the Company borrowed $200,000 against this agreement. As of September 30, 2014, the outstanding balance on the Roundball convertible note was $200,000. | |
On December 31, 2014, management entered into Amendment No. 3 of the Convertible Loan Agreement with Roundball which continues to provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement is by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2014 to December 30, 2015 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.34%. | |
The Company recorded interest expense on the Roundball and Aplin Family Trust notes of $228 and $0 respectively for fiscal 2014, $0 and $103 respectively for fiscal 2013, and $303 and $314 respectively for fiscal 2012. As of September 30, 2014 no interest was paid. |
Note_5_Shortterm_Financing
Note 5 - Short-term Financing | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Short-term Debt [Text Block] | 5. SHORT-TERM FINANCING | ||||||||
The Company had a credit agreement of $250,000 with Robert L. Bauman, one of its major shareholders who is also an employee of the Company. The agreement was to expire in April 2013 but was modified on December 31, 2012 to extend the maturity date to December 2013. Effective October 30, 2012 for the remainder of the agreement, the lender could have terminated the agreement with 45 days written notice, and at the discretion of the Company to deny the termination notice until December 2013 if it would have had a negative effect on the solvency of the Company. | |||||||||
The agreement provided for a revolving credit facility of $250,000 with interest at 0.24% per annum and was unsecured and included a three-year warrant for 100,000 shares of Class A common stock at a price of $2.50 per share. In addition, the agreement generally allowed for borrowing based on an amount equal to eighty percent of eligible accounts receivables or $250,000. The revolving line of credit was not extended. | |||||||||
In partial consideration for the original extension of the revolving credit facility the Company and Bauman entered into a Warrant Agreement, dated December 30, 2012 whereby the Company issued a warrant to Bauman to purchase, at his option, up to 100,000 shares of Class A Common Stock of the Company at an exercise price of $2.50 per share, subject to certain anti-dilution and other adjustments. If not exercised, this warrant will expire on December 30, 2015. | |||||||||
The Company used the Black-Scholes option pricing model to determine the fair value estimate for recognizing the cost of services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. The warrants are immediately exercisable and expire in December 2015. The fair value of the warrants issued was amortized over the one-year credit agreement period. During fiscal year ended September 30, 2013, $45,500 was expensed as non-cash interest expense. The following weighted-average assumptions were used in the option pricing model for the fiscal year ended September 30, 2013: a risk free interest rate of 0.42%; an expected life of 3 years; an expected dividend yield of 0.0%; and a volatility factor of .84. | |||||||||
During the fiscal year ended September 30, 2014, the Company entered into various short-term unsecured demand notes with Robert L. Bauman borrowing a total of $683,400 with interest at 4.0%. The Company recorded interest expense of $6,364 for fiscal 2014 and $75 for fiscal 2013. As of September 30, 2014, $6,174 of interest was paid on the above notes and line of credit. The Company had no outstanding borrowings on the various short-term demand notes at September 30, 2014. | |||||||||
Selected details of short-term borrowings for fiscal 2014 and 2013 are as follows: | |||||||||
Amount | Weighted Average | ||||||||
Interest Rate | |||||||||
Balance at September 30, 2014 | $ | - | 4 | % | |||||
Average during 2014 | $ | 151,133 | 4 | % | |||||
Maximum during 2014 (month end) | $ | 683,400 | 4 | % | |||||
Balance at September 30, 2013 | $ | - | 0.24 | % | |||||
Average during 2013 | $ | 29,167 | 0.24 | % | |||||
Maximum during 2013 (month end) | $ | 250,000 | 0.24 | % | |||||
Note_6_Leases
Note 6 - Leases | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases [Abstract] | |||||
Leases of Lessee Disclosure [Text Block] | 6. LEASES | ||||
Operating : | |||||
The Company leases a facility and certain equipment under operating leases expiring through September 2016. | |||||
The Company's minimum commitment under these operating leases is as follows: | |||||
2015 | $ | 6,866 | |||
2016 | 2,880 | ||||
2017 | - | ||||
Total | $ | 9,746 | |||
Rental expense under these commitments was $10,521 (2014), $10,444 (2013) and $7,971 (2012). | |||||
A facility held under a capital lease has a net book value of $0 at September 30, 2014. Future minimum lease payments which extend through 2061 are immaterial. |
Note_7_Stock_Options
Note 7 - Stock Options | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 7. STOCK OPTIONS | ||||||||||||||||||||||||
On February 27, 2013, the Company's 2013 Omnibus Equity Plan was approved and adopted by an affirmative vote of a majority of the Company's Class A and Class B Shareholders. | |||||||||||||||||||||||||
The 2013 Omnibus Plan will provide the Company with the flexibility to grant a variety of share-based awards for covered employees, consultants and Directors. The 2013 Omnibus Plan provides for the grant of the following types of incentive awards: stock options, stock appreciation rights, restricted shares, restricted share units, performance shares and Class A Common Shares. Those who will be eligible for awards under the 2013 Omnibus Plan include employees who provide services to the Company and its affiliates, executive officers, non-employee Directors and consultants designated by the Compensation Committee. The Plan has 150,000 Class A Common Shares reserved for issuance. The Class A Common Shares may be either authorized, but unissued, common shares or treasury shares. No share-based awards have been granted under the 2013 Omnibus Equity Plan as of September 30, 2014. | |||||||||||||||||||||||||
Under the Company's expired Key Employees Stock Option Plans there are no options currently available for grant and there are no options outstanding at September 30, 2014. | |||||||||||||||||||||||||
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 22,000 shares of Class A Common Stock over a three-year period to members of the Board of Directors who were not employees of the Company, at the fair market value on the date of grant. The options are exercisable for up to 10 years. All options granted under the Directors Plans become fully exercisable on March 8, 2015. | |||||||||||||||||||||||||
Non-cash compensation expense related to stock option plans for fiscal years ended September 30, 2014, 2013 and 2012 was $2,837, $6,465 and $11,388 respectively. | |||||||||||||||||||||||||
Transactions involving the Directors Plans are summarized as follows: | |||||||||||||||||||||||||
Weighted Average | Weighted Average | Weighted Average | |||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||
2014 | Price | 2013 | Price | 2012 | Price | ||||||||||||||||||||
Option Shares Directors Plans: | |||||||||||||||||||||||||
Outstanding October 1, | 31,000 | $ | 5.57 | 42,000 | $ | 5.62 | 38,000 | $ | 5.95 | ||||||||||||||||
Granted | - | - | - | - | 7,000 | 2.925 | |||||||||||||||||||
Canceled/expired | (9,000 | ) | 6.23 | (11,000 | ) | 3.55 | (3,000 | ) | 3.55 | ||||||||||||||||
Exercised | - | - | - | - | - | - | |||||||||||||||||||
Outstanding September 30, ($2.925 to $11.00 per share) | 22,000 | 5.3 | 31,000 | 5.57 | 42,000 | 5.62 | |||||||||||||||||||
Exercisable September 30, | 20,000 | 5.54 | 25,000 | 6.2 | 30,000 | 6.52 | |||||||||||||||||||
The following is a summary of the range of exercise prices for stock options outstanding and exercisable under the Directors Plans at September 30, 2014. | |||||||||||||||||||||||||
Directors Plans | Outstanding | Weighted | Weighted | Number of | Weighted | ||||||||||||||||||||
Stock | Average | Average | Stock | Average | |||||||||||||||||||||
Options | Exercise Price | Remaining | Options | Exercise | |||||||||||||||||||||
Life | Exercisable | Price | |||||||||||||||||||||||
Range of exercise prices: | |||||||||||||||||||||||||
$2.92 | - | 5.25 | 13,000 | $ | 3.28 | 5.9 | 11,000 | $ | 3.35 | ||||||||||||||||
$6.00 | - | 7.25 | 5,000 | $ | 6.18 | 3.5 | 5,000 | $ | 6.18 | ||||||||||||||||
$10.50 | - | 11 | 4,000 | $ | 10.75 | 3 | 4,000 | $ | 10.75 | ||||||||||||||||
22,000 | $ | 5.3 | 20,000 | $ | 5.54 | ||||||||||||||||||||
The Company accounts for Share-Based Payments under the modified prospective method for its stock options. Compensation cost for fixed based awards is 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. Director's stock options under the expired Outside Directors Stock Option Plans 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 fiscal year ended September 30, 2014 and 2013, $2,837 and $6,465, respectively, was expensed as share-based compensation. Total compensation costs related to nonvested awards not yet recognized is $543 (2015). The following weighted-average assumptions were used in the option pricing model for 2014 and 2013: 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. |
Note_8_Capital_Stock_Treasury_
Note 8 - Capital Stock, Treasury Stock, and Contributed Capital | 12 Months Ended |
Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 8. CAPITAL STOCK, TREASURY STOCK, AND CONTRIBUTED CAPITAL |
On October 11, 2012, the Company's Amended Articles of Incorporation and the Amended Code of Regulations were adopted by an affirmative vote of more than two-thirds of the Company's Class A and Class B Shareholders. | |
The Amended Articles amend and restate the Current Articles in a number of significant ways and are primarily as follows: increased the number of Class A Shares and Class B Shares from 3,750,000 and 1,000,000 to 10,000,000 and 2,500,000 respectively, and added a class of 1,000,000 Serial Preferred Shares; eliminated par value for Class A Shares and Class B Shares; updated certain provisions relating to the payment of dividends; removed restrictions on the issuance of additional Class A Shares; clarified the method by which the Company may repurchase its shares; reduced the percentage of shareholder vote required to authorize corporate actions from two-thirds of the voting power to a majority of the voting power; and made other technical or conforming changes. | |
The Amended Regulations amend and restate the Current Regulations in a number of significant ways and are primarily as follows: updated certain provisions relating to the Company's meetings of shareholders in order to provide more consistency in the regulations regarding the Company's practices in this area; further clarifying the roles of the Company's officers and directors in conducting the Company's business; updated the Company's policy regarding the indemnification of its directors, officers, employees, and others; revised provisions allowing for the Board of Directors to adopt amendments to the Amended Regulations to the extent permitted by Ohio law; and made other technical or conforming changes. | |
Unissued shares of Class A common stock (949,233 and 958,233 shares in 2014 and 2013, respectively) 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 (see Notes 4, 5 and 7). The Class A shares have one vote per share and the Class B shares have three votes per share, except under certain circumstances such as voting on voluntary liquidation, sale of substantially all the assets, etc. Dividends up to $.10 per year, noncumulative, must be paid on Class A shares before any dividends are paid on Class B shares. |
Note_9_Income_Taxes
Note 9 - Income Taxes | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax Disclosure [Text Block] | 9. INCOME TAXES | ||||||||||||
A reconciliation of the provision (recovery) of income taxes to the statutory federal income tax rate is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income (Loss) Before Provision for Income Taxes | $ | 8,376 | $ | 138,805 | $ | (783,966 | ) | ||||||
Statutory rate | 34 | % | 34 | % | 34 | % | |||||||
2,848 | 47,194 | (266,548 | ) | ||||||||||
Permanent differences | 1,200 | 1,200 | 2,500 | ||||||||||
Research and development credit - net | (46,300 | ) | (44,900 | ) | (8,500 | ) | |||||||
Valuation allowance | 44,400 | - | 274,600 | ||||||||||
Other | (2,148 | ) | (3,494 | ) | (2,052 | ) | |||||||
$ | - | $ | - | $ | - | ||||||||
Deferred tax assets (liabilities) consist of the following: | |||||||||||||
2014 | 2013 | ||||||||||||
Current: | |||||||||||||
Inventories | $ | 128,900 | $ | 277,300 | |||||||||
Bad debts | 3,400 | 3,400 | |||||||||||
Accrued liabilities | (11,700 | ) | 63,000 | ||||||||||
Prepaid expense | (12,900 | ) | (9,500 | ) | |||||||||
107,700 | 334,200 | ||||||||||||
Valuation allowance | (107,700 | ) | (334,200 | ) | |||||||||
Total current deferred income taxes | - | - | |||||||||||
Noncurrent: | |||||||||||||
Depreciation and amortization | 45,100 | 42,700 | |||||||||||
Research and development and other credit carryforwards | 1,903,800 | 1,830,600 | |||||||||||
Net operating loss carryforward | 1,880,200 | 1,817,200 | |||||||||||
Contribution carryforward | 8,900 | 8,900 | |||||||||||
Directors stock option plan | 40,000 | 39,000 | |||||||||||
Acquisition costs | 101,000 | 49,700 | |||||||||||
Accrued liabilities | 80,000 | - | |||||||||||
4,059,000 | 3,788,100 | ||||||||||||
Valuation allowance | (4,059,000 | ) | (3,788,100 | ) | |||||||||
Total long-term deferred income taxes | - | - | |||||||||||
Total | $ | - | $ | - | |||||||||
The Company did not incur any material impact to its financial condition or results of operations due to the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. | |||||||||||||
The Company is subject to U.S federal jurisdiction income tax examinations for the tax years 2010 through 2012. In addition, the Company is subject to state and local income tax examinations for the tax years 2010 through 2012. | |||||||||||||
The Company has available a net operating loss carryforward of approximately $5,500,000, and a research and development credit carryforward of approximately $1,800,000, and a contribution carryforward of approximately $26,000. The net operating loss, research and development credit and contribution carryforwards will begin to expire in fiscal 2025, 2016, and 2015 respectively. | |||||||||||||
Management has recorded a valuation allowance on the entire balance of deferred tax assets due to the losses during the past several years, the current economic uncertainties, the negative effects of the recent economic crisis on all the Company's markets and concern that a more likely than not expiration of the Company's net operating loss, research and development credit and contribution carryforwards could occur before they can be used. | |||||||||||||
The Company's ability to realize the entire benefit of its deferred tax assets requires that the Company achieve certain future earning levels prior to the expiration of its net operating loss, research and development credit and contribution carryforwards. Because of the uncertainties involved with this significant estimate, it is reasonably possible that the Company's estimate may change in the near term. |
Note_10_Earnings_Per_Common_Sh
Note 10 - Earnings Per Common Share | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share [Text Block] | 10. EARNINGS PER COMMON SHARE | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic Income (Loss) Per Share | |||||||||||||
Income (Loss) available to common stockholders | $ | 8,376 | $ | 138,805 | $ | (783,966 | ) | ||||||
Shares denominator | 1,638,215 | 1,610,571 | 1,372,812 | ||||||||||
Per share amount | $ | 0.01 | $ | 0.09 | $ | (.57 | ) | ||||||
Effect of Dilutive Securities | |||||||||||||
Average shares outstanding | 1,638,215 | 1,610,571 | 1,372,812 | ||||||||||
Options available under convertible note | 31,097 | 23,505 | - | ||||||||||
1,669,312 | 1,634,076 | 1,372,812 | |||||||||||
Diluted Income (Loss) Per Share | |||||||||||||
Income (Loss) available to common stockholders | $ | 8,376 | $ | 138,805 | $ | (783,966 | ) | ||||||
Per share amount | $ | 0.01 | $ | 0.08 | $ | (.57 | ) | ||||||
Options and warrants to purchase 22,000 and 200,000 shares of common stock respectively during fiscal 2014 at prices ranging from $2.50 to $11.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's and warrant's effect was antidilutive or the exercise price was greater than the average market price of the common share. | |||||||||||||
In fiscal 2013 options and warrants to purchase 31,000 and 200,000 shares of common stock respectively 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 fiscal 2012 options to purchase 42,000 shares of common stock at prices ranging from $2.925 to $11.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option'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 365,119 shares of common stock 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. |
Note_11_Employee_Benefit_Plans
Note 11 - Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 11. EMPLOYEE BENEFIT PLANS |
The Company has a 401(k) Savings and Retirement Plan covering all full-time employees. Company contributions to the plan, including matching of employee contributions, are at the Company's discretion. For fiscal years ended September 30, 2014, 2013 and 2012, the Company made matching contributions to the plan in the amount of $16,979, $16,003 and $15,178, respectively. The Company does not provide any other postretirement benefits to its employees. |
Note_12_Segment_and_Related_In
Note 12 - Segment and Related Information | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Reporting Disclosure [Text Block] | 12. SEGMENT AND RELATED INFORMATION | ||||||||||||
The Company's four business units have a common management team and infrastructure. The indicators and gauges unit has different technologies and customers than the other business units. Therefore, the business units have been aggregated into two reportable segments: 1.) indicators and gauges and 2.) automotive related diagnostic tools and equipment. The Company's management evaluates segment performance based primarily on operating earnings before taxes. Non-operating items such as interest income and interest expense are included in general corporate expenses. Depreciation expense on assets used in manufacturing are considered part of each segment's operating performance. Depreciation expense on non-manufacturing assets is included in general corporate expenses. | |||||||||||||
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 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 OEMs 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: | |||||||||||||
Years Ended September 30, | 2014 | 2013 | 2012 | ||||||||||
Net Sales | |||||||||||||
Indicators and Gauges | $ | 1,492,348 | $ | 1,657,725 | $ | 1,612,943 | |||||||
Automotive Diagnostic Tools and Equipment | 4,813,488 | 4,808,447 | 3,148,346 | ||||||||||
$ | 6,305,836 | $ | 6,466,172 | $ | 4,761,289 | ||||||||
Income (Loss) Before Provision for Income Taxes | |||||||||||||
Indicators and Gauges | $ | 312,692 | $ | 433,361 | $ | 271,343 | |||||||
Automotive Diagnostic Tools and Equipment | 704,427 | 834,630 | (78,433 | ) | |||||||||
General Corporate Expenses | (1,008,743 | ) | (1,129,186 | ) | (976,876 | ) | |||||||
$ | 8,376 | $ | 138,805 | $ | (783,966 | ) | |||||||
Asset Information : | |||||||||||||
Years Ended September 30, | 2014 | 2013 | |||||||||||
Identifiable Assets | |||||||||||||
Indicators and Gauges | $ | 685,198 | $ | 898,555 | |||||||||
Automotive Diagnostic Tools and Equipment | 2,199,779 | 1,327,932 | |||||||||||
Corporate | 814,680 | 1,278,196 | |||||||||||
$ | 3,699,657 | $ | 3,504,683 | ||||||||||
Geographical Information : | |||||||||||||
Included in the consolidated financial statements are the following amounts related to geographic locations: | |||||||||||||
Years Ended September 30, | 2014 | 2013 | 2012 | ||||||||||
Revenue: | |||||||||||||
United States of America | $ | 6,149,883 | $ | 6,317,722 | $ | 4,598,029 | |||||||
Australia | 64,744 | 23,481 | 14,018 | ||||||||||
Canada | 58,983 | 77,239 | 72,535 | ||||||||||
Mexico | 25,288 | 16,640 | 36,960 | ||||||||||
Taiwan | - | 22,481 | 34,935 | ||||||||||
Other foreign countries | 6,938 | 8,609 | 4,812 | ||||||||||
$ | 6,305,836 | $ | 6,466,172 | $ | 4,761,289 | ||||||||
All export sales to Australia, Canada, Mexico, Taiwan and other foreign countries are made in United States of America Dollars. |
Note_13_Commitments_and_Contin
Note 13 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 13. 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. |
Note_14_Subsequent_Events
Note 14 - Subsequent Events | 12 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 14. SUBSEQUENT EVENTS |
The Company has analyzed its operations subsequent to September 30, 2014 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 December 31, 2014, management entered into an amended Convertible Loan Agreement which may provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement is by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2014 to December 30, 2015 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.34% per annum. | |
In addition, the Company's legal firm handling the patent infringement case discussed in Note 13 to the Company's financial statements has provided a letter indicating the firm will not seek to be paid by the Company prior to February 1, 2016, unbilled legal fees in excess of $45,000 unless the Lawsuit is settled prior to February 1, 2016. | |
Lastly, in December 2014, the Company issued a non-binding proposal letter to acquire the membership interests of Federal Hose LLC, a wholly owned subsidiary of First Francis Company, Inc. First Francis is owned by certain directors of the Company and the terms of the potential transaction are still being negotiated. |
Note_15_Business_Condition_and
Note 15 - Business Condition and Management Plan | 12 Months Ended |
Sep. 30, 2014 | |
Going Concern Disclosure [Abstract] | |
Going Concern Disclosure [Text Block] | 15. BUSINESS CONDITION AND MANAGEMENT PLAN |
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has suffered recurring losses from operations during the past several years due primarily to decreasing sales of existing product lines and a general economic downturn in all markets the Company serves. The resulting lower sales levels have impacted the Company's accounts receivable and cash balances, if this situation continues it may prevent the Company from generating sufficient cash flow to sustain its operations. | |
The ability of the Company to continue as a going concern is dependent on improving the Company's profitability and cash flow and securing additional financing if needed. Management continues to review and revise its strategic plan and believes in the viability of its strategy to increase revenues and profitability through increased sales of existing products and the introduction of new products to the market place. Management believes that the actions presently being taken by the Company will provide the stimulus for it to continue as a going concern, however, because of the inherent uncertainties there can be no assurances to that effect. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Additionally, the Company has net operating loss carryforwards, currently valued at $0, that offset taxable income. | |
In addition, on December 31, 2014, management entered into an amended unsecured convertible loan agreement which may provide approximately $467,000 of liquidity to meet on going working capital requirements. The unsecured convertible loan agreement is with a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement and continues to allow $250,000 of borrowing on the agreement at the Company's discretion. This facility is available through December 2015. The Company has borrowed $200,000 on the loan agreement during the year and it is outstanding at September 30, 2014. | |
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 order from a Tier 1 Supplier during the current fiscal year should provide the Company with the needed working capital for the next twelve months. |
Note_16_Quarterly_Data_Unaudit
Note 16 - Quarterly Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information [Text Block] | 16. QUARTERLY DATA (UNAUDITED) | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Net Sales | |||||||||||||||||
2014 | $ | 1,050,242 | $ | 1,116,467 | $ | 2,130,412 | $ | 2,008,715 | |||||||||
2013 | 1,738,903 | 1,964,338 | 1,339,931 | 1,423,000 | |||||||||||||
2012 | 1,181,501 | 1,178,538 | 1,271,803 | 1,129,447 | |||||||||||||
Gross Profit | |||||||||||||||||
2014 | 360,838 | 428,031 | 1,124,914 | 780,893 | |||||||||||||
2013 | 812,501 | 856,177 | 572,192 | 727,268 | |||||||||||||
2012 | 392,712 | 402,681 | 479,189 | 482,546 | |||||||||||||
Net Income (Loss) | |||||||||||||||||
2014 | (320,287 | ) | (297,655 | ) | 386,911 | 239,407 | |||||||||||
2013 | 143,804 | 119,431 | (133,777 | ) | 9,347 | ||||||||||||
2012 | (183,140 | ) | (224,781 | ) | (170,975 | ) | (205,070 | ) | |||||||||
Net Income (Loss) per Common Share | |||||||||||||||||
Basic | |||||||||||||||||
2014 | (.20 | ) | (.18 | ) | 0.24 | 0.15 | |||||||||||
2013 | 0.09 | 0.08 | (.08 | ) | 0.01 | ||||||||||||
2012 | (.15 | ) | (.16 | ) | (.12 | ) | (.14 | ) | |||||||||
Diluted | |||||||||||||||||
2014 | (.20 | ) | (.18 | ) | 0.23 | 0.14 | |||||||||||
2013 | 0.09 | 0.07 | (.08 | ) | 0.01 | ||||||||||||
2012 | (.15 | ) | (.16 | ) | (.12 | ) | (.14 | ) | |||||||||
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | HICKOK INCORPORATED | ||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
Col. A | Col. B | Col. C | Col. D | Col. E | |||||||||||||||||
Additions | |||||||||||||||||||||
Balance at | Charged to | Charged to | Balance | ||||||||||||||||||
Beginning | Costs and | Other | at End | ||||||||||||||||||
Description | of Period | Expenses | Accounts | Deductions | of Period | ||||||||||||||||
Deducted from Asset Accounts: | |||||||||||||||||||||
Year Ended September 30, 2012 | |||||||||||||||||||||
Reserve for doubtful accounts | $ | 10,000 | $ | 374 | -1 | $ | - | -2 | $ | 374 | -3 | $ | 10,000 | ||||||||
Reserve for inventory obsolescence | $ | 714,000 | $ | 185,697 | $ | - | $ | 48,697 | -4 | $ | 851,000 | ||||||||||
Reserve for product warranty | $ | 993 | $ | 7,565 | $ | - | $ | 8,107 | $ | 451 | |||||||||||
Valuation allowance deferred taxes | $ | 4,049,300 | $ | 187,400 | $ | - | $ | - | $ | 4,236,700 | |||||||||||
Year Ended September 30, 2013 | |||||||||||||||||||||
Reserve for doubtful accounts | $ | 10,000 | $ | 2,049 | -1 | $ | - | -2 | $ | 2,049 | -3 | $ | 10,000 | ||||||||
Reserve for inventory obsolescence | $ | 851,000 | $ | 60,107 | $ | - | $ | 118,107 | -4 | $ | 793,000 | ||||||||||
Reserve for product warranty | $ | 451 | $ | 8,690 | $ | - | $ | 9,052 | $ | 89 | |||||||||||
Valuation allowance deferred taxes | $ | 4,236,700 | $ | - | $ | - | $ | 114,400 | $ | 4,122,300 | |||||||||||
Year Ended September 30, 2014 | |||||||||||||||||||||
Reserve for doubtful accounts | $ | 10,000 | $ | (4,446 | )(1) | $ | - | -2 | $ | (4,446 | )(3) | $ | 10,000 | ||||||||
Reserve for inventory obsolescence | $ | 793,000 | $ | (113,603 | ) | $ | - | $ | 315,897 | -4 | $ | 363,500 | |||||||||
Reserve for product warranty | $ | 89 | $ | 10,275 | $ | - | $ | 10,335 | $ | 9 | |||||||||||
Valuation allowance deferred taxes | $ | 4,122,300 | $ | 44,400 | $ | - | $ | - | $ | 4,166,700 | |||||||||||
(1) Classified as bad debt expense. | |||||||||||||||||||||
(2) Recoveries on accounts charged off in prior years. | |||||||||||||||||||||
(3) Accounts charged off during year as uncollectible. | |||||||||||||||||||||
(4) Inventory charged off during the year as obsolete. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation : | ||||||||||||
The consolidated financial statements include the accounts of Hickok Incorporated and its wholly-owned domestic subsidiaries. Significant intercompany transactions and balances have been eliminated in the financial statements. | |||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards : | ||||||||||||
The Company did not incur any material impact to its financial condition or results of operations due to the adoption of any new accounting standards during the periods reported. | |||||||||||||
In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. The standard, issued as Accounting Standards Update (ASU) 2014-09, outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The core principle of this model is that “an entity recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to e entitled in exchange for those goods and services.” The update is effective for financial statement periods beginning after December 15, 2016, with early adoption prohibited. The Company has not determined the impact of this pronouncement on its financial statements and related disclosure. | |||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk : | ||||||||||||
The Company sells its products and services primarily to customers in the United States of America and to a lesser extent overseas. All sales are made in United States of America dollars. The Company extends normal credit terms to its customers. Customers in the automotive industry comprise 87% of outstanding receivables at September 30, 2014 (60% in 2013). Sales to three customers approximated $2,768,000, $341,000 and $284,000 (2014), $2,304,000, $651,000 and $242,000 (2013), $905,000, $710,000 and $229,000 (2012), and accounts receivable to these customers amounted to approximately $731,000, $90,000 and $65,000 (2014), and $99,000, $163,000 and $14,000 (2013). | |||||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates in the Preparation of Financial Statements : | ||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts of certain assets and liabilities and disclosure of contingencies at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments: | ||||||||||||
Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and convertible notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value. | |||||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition : | ||||||||||||
The Company records sales as manufactured items are shipped to customers on an FOB shipping point arrangement, at which time title passes and the earnings process is complete. The Company primarily records service sales as the items are repaired. The customer does not have a right to return merchandise unless defective or warranty related and there are no formal customer acceptance provisions. Sales returns and allowances were immaterial during each of the three years in the period ending September 30, 2014. | |||||||||||||
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties : | ||||||||||||
The Company warrants certain products against defects for periods ranging primarily from 12 to 48 months. The Company's estimated future warranty claims is included in "Accrued expenses" and are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance October 1 | $ | 89 | $ | 451 | $ | 993 | |||||||
Current year provisions | 10,275 | 8,690 | 7,564 | ||||||||||
Expenditures | (10,355 | ) | (9,052 | ) | (8,106 | ) | |||||||
Balance September 30 | $ | 9 | $ | 89 | $ | 451 | |||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | Product Development Costs : | ||||||||||||
Product development costs, which include engineering production support, are expensed as incurred. Research and development performed for customers represents no more than 1% of sales in each year. The arrangements do not include a repayment obligation by the Company. | |||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents : | ||||||||||||
For purposes of the Statement of Cash Flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. From time to time the Company maintains cash balances in excess of the FDIC limits. The cash balance at September 30, 2014 and 2013 amounted to $390,327 and $938,852, respectively. | |||||||||||||
Receivables, Policy [Policy Text Block] | Accounts Receivable : | ||||||||||||
The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. | |||||||||||||
Inventory, Policy [Policy Text Block] | Inventories : | ||||||||||||
Inventories are valued at the lower of cost (first-in, first-out) or market and consist of: | |||||||||||||
2014 | 2013 | ||||||||||||
Raw materials and component parts | $ | 1,066,672 | $ | 852,229 | |||||||||
Work-in-process | 521,424 | 590,687 | |||||||||||
Finished products | 126,101 | 146,900 | |||||||||||
$ | 1,714,197 | $ | 1,589,816 | ||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment : | ||||||||||||
Property, plant and equipment are carried at cost. Maintenance and repair costs are expensed as incurred. Additions and betterments are capitalized. The depreciation policy of the Company is generally as follows: | |||||||||||||
Class | Method | Estimated Useful Lives | |||||||||||
Buildings | Straight-line | 10 | - | 40 | years | ||||||||
Machinery and equipment | Straight-line | 3 | - | 10 | years | ||||||||
Tools and dies | Straight-line | 3 | years | ||||||||||
Depreciation amounted to $62,195 (2014), $64,186 (2013), and $86,257 (2012). | |||||||||||||
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Valuation of Long-Lived Assets : | ||||||||||||
Long-lived assets such as property, plant and equipment and software are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the total of the expected future undiscounted cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying value of the asset. | |||||||||||||
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs : | ||||||||||||
Shipping and handling costs are classified as cost of product sold. | |||||||||||||
Advertising Costs, Policy [Policy Text Block] | Advertising Costs : | ||||||||||||
Advertising costs are expensed as incurred and amounted to $9,017 (2014), $6,558 (2013) and $6,940 (2012). | |||||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes : | ||||||||||||
The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus any change in deferred taxes during the year. Deferred taxes result from differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. | |||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Income per Common Share : | ||||||||||||
Income per common share information is computed on the weighted average number of shares outstanding during each period as disclosed in Note 10. |
Note_1_Nature_of_Operations_Ta
Note 1 - Nature of Operations (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Product Classes | 2014 | 2012 | 2012 | |||||||||
Automotive Test Equipment | 76.3 | % | 74.4 | % | 66.1 | % | |||||||
Indicating Instruments | 23.7 | 25.6 | 33.9 | ||||||||||
Total | 100 | % | 100 | % | 100 | % |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | 2014 | 2013 | 2012 | ||||||||||
Balance October 1 | $ | 89 | $ | 451 | $ | 993 | |||||||
Current year provisions | 10,275 | 8,690 | 7,564 | ||||||||||
Expenditures | (10,355 | ) | (9,052 | ) | (8,106 | ) | |||||||
Balance September 30 | $ | 9 | $ | 89 | $ | 451 | |||||||
Schedule of Inventory, Current [Table Text Block] | 2014 | 2013 | |||||||||||
Raw materials and component parts | $ | 1,066,672 | $ | 852,229 | |||||||||
Work-in-process | 521,424 | 590,687 | |||||||||||
Finished products | 126,101 | 146,900 | |||||||||||
$ | 1,714,197 | $ | 1,589,816 | ||||||||||
Property, Plant and Equipment [Table Text Block] | Class | Method | Estimated Useful Lives | ||||||||||
Buildings | Straight-line | 10 | - | 40 | years | ||||||||
Machinery and equipment | Straight-line | 3 | - | 10 | years | ||||||||
Tools and dies | Straight-line | 3 | years |
Note_3_Notes_Receivable_Tables
Note 3 - Notes Receivable (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Receivables [Abstract] | |||||||||||||
Schedule of Related Party Transactions [Table Text Block] | Current | Total | |||||||||||
Portion | |||||||||||||
2014 | 2014 | 2013 | |||||||||||
Unsecured note receivable from current employee which bears interest at 3% per annum | $ | - | $ | 4,100 | $ | 4,100 | |||||||
$ | - | 4,100 | 4,100 | ||||||||||
Less current portion | - | - | |||||||||||
Long-term portion | $ | 4,100 | $ | 4,100 |
Note_5_Shortterm_Financing_Tab
Note 5 - Short-term Financing (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Schedule of Short-term Debt [Table Text Block] | Amount | Weighted Average | |||||||
Interest Rate | |||||||||
Balance at September 30, 2014 | $ | - | 4 | % | |||||
Average during 2014 | $ | 151,133 | 4 | % | |||||
Maximum during 2014 (month end) | $ | 683,400 | 4 | % | |||||
Balance at September 30, 2013 | $ | - | 0.24 | % | |||||
Average during 2013 | $ | 29,167 | 0.24 | % | |||||
Maximum during 2013 (month end) | $ | 250,000 | 0.24 | % |
Note_6_Leases_Tables
Note 6 - Leases (Tables) | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2015 | $ | 6,866 | ||
2016 | 2,880 | ||||
2017 | - | ||||
Total | $ | 9,746 |
Note_7_Stock_Options_Tables
Note 7 - Stock Options (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Average | Weighted Average | Weighted Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||
2014 | Price | 2013 | Price | 2012 | Price | ||||||||||||||||||||
Option Shares Directors Plans: | |||||||||||||||||||||||||
Outstanding October 1, | 31,000 | $ | 5.57 | 42,000 | $ | 5.62 | 38,000 | $ | 5.95 | ||||||||||||||||
Granted | - | - | - | - | 7,000 | 2.925 | |||||||||||||||||||
Canceled/expired | (9,000 | ) | 6.23 | (11,000 | ) | 3.55 | (3,000 | ) | 3.55 | ||||||||||||||||
Exercised | - | - | - | - | - | - | |||||||||||||||||||
Outstanding September 30, ($2.925 to $11.00 per share) | 22,000 | 5.3 | 31,000 | 5.57 | 42,000 | 5.62 | |||||||||||||||||||
Exercisable September 30, | 20,000 | 5.54 | 25,000 | 6.2 | 30,000 | 6.52 | |||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Directors Plans | Outstanding | Weighted | Weighted | Number of | Weighted | |||||||||||||||||||
Stock | Average | Average | Stock | Average | |||||||||||||||||||||
Options | Exercise Price | Remaining | Options | Exercise | |||||||||||||||||||||
Life | Exercisable | Price | |||||||||||||||||||||||
Range of exercise prices: | |||||||||||||||||||||||||
$2.92 | - | 5.25 | 13,000 | $ | 3.28 | 5.9 | 11,000 | $ | 3.35 | ||||||||||||||||
$6.00 | - | 7.25 | 5,000 | $ | 6.18 | 3.5 | 5,000 | $ | 6.18 | ||||||||||||||||
$10.50 | - | 11 | 4,000 | $ | 10.75 | 3 | 4,000 | $ | 10.75 | ||||||||||||||||
22,000 | $ | 5.3 | 20,000 | $ | 5.54 |
Note_9_Income_Taxes_Tables
Note 9 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2014 | 2013 | 2012 | ||||||||||
Income (Loss) Before Provision for Income Taxes | $ | 8,376 | $ | 138,805 | $ | (783,966 | ) | ||||||
Statutory rate | 34 | % | 34 | % | 34 | % | |||||||
2,848 | 47,194 | (266,548 | ) | ||||||||||
Permanent differences | 1,200 | 1,200 | 2,500 | ||||||||||
Research and development credit - net | (46,300 | ) | (44,900 | ) | (8,500 | ) | |||||||
Valuation allowance | 44,400 | - | 274,600 | ||||||||||
Other | (2,148 | ) | (3,494 | ) | (2,052 | ) | |||||||
$ | - | $ | - | $ | - | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2014 | 2013 | |||||||||||
Current: | |||||||||||||
Inventories | $ | 128,900 | $ | 277,300 | |||||||||
Bad debts | 3,400 | 3,400 | |||||||||||
Accrued liabilities | (11,700 | ) | 63,000 | ||||||||||
Prepaid expense | (12,900 | ) | (9,500 | ) | |||||||||
107,700 | 334,200 | ||||||||||||
Valuation allowance | (107,700 | ) | (334,200 | ) | |||||||||
Total current deferred income taxes | - | - | |||||||||||
Noncurrent: | |||||||||||||
Depreciation and amortization | 45,100 | 42,700 | |||||||||||
Research and development and other credit carryforwards | 1,903,800 | 1,830,600 | |||||||||||
Net operating loss carryforward | 1,880,200 | 1,817,200 | |||||||||||
Contribution carryforward | 8,900 | 8,900 | |||||||||||
Directors stock option plan | 40,000 | 39,000 | |||||||||||
Acquisition costs | 101,000 | 49,700 | |||||||||||
Accrued liabilities | 80,000 | - | |||||||||||
4,059,000 | 3,788,100 | ||||||||||||
Valuation allowance | (4,059,000 | ) | (3,788,100 | ) | |||||||||
Total long-term deferred income taxes | - | - | |||||||||||
Total | $ | - | $ | - |
Note_10_Earnings_Per_Common_Sh1
Note 10 - Earnings Per Common Share (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2014 | 2013 | 2012 | ||||||||||
Basic Income (Loss) Per Share | |||||||||||||
Income (Loss) available to common stockholders | $ | 8,376 | $ | 138,805 | $ | (783,966 | ) | ||||||
Shares denominator | 1,638,215 | 1,610,571 | 1,372,812 | ||||||||||
Per share amount | $ | 0.01 | $ | 0.09 | $ | (.57 | ) | ||||||
Effect of Dilutive Securities | |||||||||||||
Average shares outstanding | 1,638,215 | 1,610,571 | 1,372,812 | ||||||||||
Options available under convertible note | 31,097 | 23,505 | - | ||||||||||
1,669,312 | 1,634,076 | 1,372,812 | |||||||||||
Diluted Income (Loss) Per Share | |||||||||||||
Income (Loss) available to common stockholders | $ | 8,376 | $ | 138,805 | $ | (783,966 | ) | ||||||
Per share amount | $ | 0.01 | $ | 0.08 | $ | (.57 | ) |
Note_12_Segment_and_Related_In1
Note 12 - Segment and Related Information (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Years Ended September 30, | 2014 | 2013 | 2012 | |||||||||
Net Sales | |||||||||||||
Indicators and Gauges | $ | 1,492,348 | $ | 1,657,725 | $ | 1,612,943 | |||||||
Automotive Diagnostic Tools and Equipment | 4,813,488 | 4,808,447 | 3,148,346 | ||||||||||
$ | 6,305,836 | $ | 6,466,172 | $ | 4,761,289 | ||||||||
Income (Loss) Before Provision for Income Taxes | |||||||||||||
Indicators and Gauges | $ | 312,692 | $ | 433,361 | $ | 271,343 | |||||||
Automotive Diagnostic Tools and Equipment | 704,427 | 834,630 | (78,433 | ) | |||||||||
General Corporate Expenses | (1,008,743 | ) | (1,129,186 | ) | (976,876 | ) | |||||||
$ | 8,376 | $ | 138,805 | $ | (783,966 | ) | |||||||
Years Ended September 30, | 2014 | 2013 | 2012 | ||||||||||
Revenue: | |||||||||||||
United States of America | $ | 6,149,883 | $ | 6,317,722 | $ | 4,598,029 | |||||||
Australia | 64,744 | 23,481 | 14,018 | ||||||||||
Canada | 58,983 | 77,239 | 72,535 | ||||||||||
Mexico | 25,288 | 16,640 | 36,960 | ||||||||||
Taiwan | - | 22,481 | 34,935 | ||||||||||
Other foreign countries | 6,938 | 8,609 | 4,812 | ||||||||||
$ | 6,305,836 | $ | 6,466,172 | $ | 4,761,289 | ||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Years Ended September 30, | 2014 | 2013 | ||||||||||
Identifiable Assets | |||||||||||||
Indicators and Gauges | $ | 685,198 | $ | 898,555 | |||||||||
Automotive Diagnostic Tools and Equipment | 2,199,779 | 1,327,932 | |||||||||||
Corporate | 814,680 | 1,278,196 | |||||||||||
$ | 3,699,657 | $ | 3,504,683 |
Note_16_Quarterly_Data_Unaudit1
Note 16 - Quarterly Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | First | Second | Third | Fourth | |||||||||||||
Net Sales | |||||||||||||||||
2014 | $ | 1,050,242 | $ | 1,116,467 | $ | 2,130,412 | $ | 2,008,715 | |||||||||
2013 | 1,738,903 | 1,964,338 | 1,339,931 | 1,423,000 | |||||||||||||
2012 | 1,181,501 | 1,178,538 | 1,271,803 | 1,129,447 | |||||||||||||
Gross Profit | |||||||||||||||||
2014 | 360,838 | 428,031 | 1,124,914 | 780,893 | |||||||||||||
2013 | 812,501 | 856,177 | 572,192 | 727,268 | |||||||||||||
2012 | 392,712 | 402,681 | 479,189 | 482,546 | |||||||||||||
Net Income (Loss) | |||||||||||||||||
2014 | (320,287 | ) | (297,655 | ) | 386,911 | 239,407 | |||||||||||
2013 | 143,804 | 119,431 | (133,777 | ) | 9,347 | ||||||||||||
2012 | (183,140 | ) | (224,781 | ) | (170,975 | ) | (205,070 | ) | |||||||||
Net Income (Loss) per Common Share | |||||||||||||||||
Basic | |||||||||||||||||
2014 | (.20 | ) | (.18 | ) | 0.24 | 0.15 | |||||||||||
2013 | 0.09 | 0.08 | (.08 | ) | 0.01 | ||||||||||||
2012 | (.15 | ) | (.16 | ) | (.12 | ) | (.14 | ) | |||||||||
Diluted | |||||||||||||||||
2014 | (.20 | ) | (.18 | ) | 0.23 | 0.14 | |||||||||||
2013 | 0.09 | 0.07 | (.08 | ) | 0.01 | ||||||||||||
2012 | (.15 | ) | (.16 | ) | (.12 | ) | (.14 | ) |
Note_1_Nature_of_Operations_De
Note 1 - Nature of Operations (Details) - Summary of Company's Product Classes | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | |||
Product classes | 100.00% | 100.00% | 100.00% |
Automotive Test Equipment [Member] | |||
Segment Reporting Information [Line Items] | |||
Product classes | 76.30% | 74.40% | 66.10% |
Indicating Instruments [Member] | |||
Segment Reporting Information [Line Items] | |||
Product classes | 23.70% | 25.60% | 33.90% |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Revenue, Net | $6,305,836 | $6,466,172 | $4,761,289 | |
Percentage of Research and Development to Sales | 1.00% | |||
Cash and Cash Equivalents, at Carrying Value | 390,327 | 938,852 | 258,798 | 274,530 |
Depreciation | 62,195 | 64,186 | 86,257 | |
Advertising Expense | 9,017 | 6,558 | 6,940 | |
Customer 1 [Member] | Accounts Receivable [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Revenue, Net | 905,000 | |||
Accounts Receivable, Net | 731,000 | 99,000 | ||
Customer 1 [Member] | Sales Revenue, Goods, Net [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Revenue, Net | 2,768,000 | 2,304,000 | ||
Customer 2 [Member] | Accounts Receivable [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Revenue, Net | 710,000 | |||
Accounts Receivable, Net | 90,000 | 163,000 | ||
Customer 2 [Member] | Sales Revenue, Goods, Net [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Revenue, Net | 341,000 | 651,000 | ||
Customer 3 [Member] | Accounts Receivable [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Accounts Receivable, Net | 65,000 | 14,000 | ||
Customer 3 [Member] | Sales Revenue, Goods, Net [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Revenue, Net | 284,000 | 242,000 | ||
Customer 3 [Member] | Customer 3 [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Revenue, Net | $229,000 | |||
Accounts Receivable [Member] | Automotive Industry [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Concentration Risk, Percentage | 87.00% | 60.00% | ||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Number of Customers | 3 | |||
Minimum [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Warranty Period | 12 months | |||
Maximum [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Warranty Period | 48 months |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies (Details) - Estimated Future Warranty Claims (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Estimated Future Warranty Claims [Abstract] | |||
Balance October 1 | $89 | $451 | $993 |
Balance September 30 | 9 | 89 | 451 |
Current year provisions | 10,275 | 8,690 | 7,564 |
Expenditures | ($10,355) | ($9,052) | ($8,106) |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies (Details) - Inventories Summary (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Inventories Summary [Abstract] | ||
Raw materials and component parts | $1,066,672 | $852,229 |
Work-in-process | 521,424 | 590,687 |
Finished products | 126,101 | 146,900 |
$1,714,197 | $1,589,816 |
Note_2_Summary_of_Significant_5
Note 2 - Summary of Significant Accounting Policies (Details) - Property, Plant and Equipment Useful Lives | 12 Months Ended |
Sep. 30, 2014 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Method | Straight-line |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Method | Straight-line |
Tools, Dies and Molds [Member] | |
Property, Plant and Equipment [Line Items] | |
Method | Straight-line |
Useful life | 3 years |
Note_3_Notes_Receivable_Detail
Note 3 - Notes Receivable (Details) - Summary of Notes Receivable (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Related Party Transaction [Line Items] | ||
Unsecured note receivable from current employee | $4,100 | $4,100 |
Long-term portion | 4,100 | 4,100 |
Current Employee [Member] | ||
Related Party Transaction [Line Items] | ||
Unsecured note receivable from current employee | $4,100 | $4,100 |
Note_3_Notes_Receivable_Detail1
Note 3 - Notes Receivable (Details) - Summary of Notes Receivable (Parentheticals) (Current Employee [Member]) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Related Party Transaction [Line Items] | ||
UnsP5curP5d notP5 rP5cP5ivablP5 intP5rP5st pP5r annum | 3.00% | 3.00% |
Current Portion [Member] | ||
Related Party Transaction [Line Items] | ||
UnsP5curP5d notP5 rP5cP5ivablP5 intP5rP5st pP5r annum | 3.00% |
Note_4_Convertible_Notes_Payab1
Note 4 - Convertible Notes Payable (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 20, 2012 | Dec. 30, 2011 | Dec. 28, 2012 | Dec. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 30, 2013 | |
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $2.50 | |||||||||
Interest Expense, Debt | $45,500 | |||||||||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Risk Free Interest Rate | 0.42% | |||||||||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Term | 3 years | |||||||||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Dividend Rate | 0.00% | |||||||||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Volatility Rate | 0.84% | |||||||||
Proceeds from Convertible Debt | 200,000 | 675,470 | ||||||||
Common Class A [Member] | Roundball LLC [Member] | Convertible Notes Payable [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $1.85 | |||||||||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 504,735 | |||||||||
Conversion of Stock, Amount Converted | 233,441 | 233,438 | ||||||||
Common Class A [Member] | Roundball LLC [Member] | Amendment No. 1 [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 100,000 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $2.50 | |||||||||
Common Class A [Member] | Aplin Family Trust [Member] | Convertible Notes Payable [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 112,752 | |||||||||
Common Class A [Member] | Convertible Notes Payable [Member] | Aplin Family Trust [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Conversion of Stock, Amount Converted | 208,591 | |||||||||
Common Class A [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 100,000 | 100,000 | ||||||||
Roundball LLC [Member] | Convertible Notes Payable [Member] | Additional Borrowing [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Proceeds from Issuance of Debt | 466,880 | |||||||||
Roundball LLC [Member] | Convertible Notes Payable [Member] | Director [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.24% | |||||||||
Working Capital Funding | 467,000 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | |||||||||
Roundball LLC [Member] | Convertible Notes Payable [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Convertible Notes Payable, Current | 466,879 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.20% | |||||||||
Roundball LLC [Member] | Subsequent Event [Member] | Amendment No 3 [Member] | Director [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.34% | |||||||||
Working Capital Funding | 467,000 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | |||||||||
Roundball LLC [Member] | Amendment No 2 [Member] | Director [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.25% | |||||||||
Working Capital Funding | 467,000 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | |||||||||
Roundball LLC [Member] | Amendment No 2 [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Convertible Notes Payable, Current | 200,000 | |||||||||
Proceeds from Convertible Debt | 200,000 | |||||||||
Roundball LLC [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Interest Expense, Debt | 228 | 0 | 303 | |||||||
Aplin Family Trust [Member] | Convertible Notes Payable [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Convertible Notes Payable, Current | 208,591 | |||||||||
Aplin Family Trust [Member] | ||||||||||
Note 4 - Convertible Notes Payable (Details) [Line Items] | ||||||||||
Interest Expense, Debt | $0 | $103 | $314 |
Note_5_Shortterm_Financing_Det
Note 5 - Short-term Financing (Details) (USD $) | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | Dec. 31, 2013 | |
Note 5 - Short-term Financing (Details) [Line Items] | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $2.50 | ||||
Line of Credit Facility, Current Borrowing Capacity | $250,000 | ||||
Class of Warrant or Right Amortized Period | 1 year | ||||
Interest Expense, Debt | 45,500 | ||||
Interest Paid | 6,174 | 6,641 | |||
Common Class A [Member] | |||||
Note 5 - Short-term Financing (Details) [Line Items] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 100,000 | 100,000 | |||
Robert L. Bauman [Member] | |||||
Note 5 - Short-term Financing (Details) [Line Items] | |||||
Due to Related Parties, Current | 250,000 | ||||
Line of Credit Facility, Maximum Amount Outstanding During Period | 250,000 | ||||
Line of Credit Facility, Interest Rate During Period | 0.24% | ||||
Warrant Period | 3 years | ||||
Interest Expense, Debt | 6,364 | 75 | |||
Proceeds from Short-term Debt | 683,400 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ||||
Interest Paid | 6,174 | ||||
Short-term Debt | 0 | ||||
Warrant Agreement [Member] | |||||
Note 5 - Short-term Financing (Details) [Line Items] | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | 2.5 | ||||
Interest Expense, Debt | $45,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.42% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 0.84% |
Note_5_Shortterm_Financing_Det1
Note 5 - Short-term Financing (Details) - Summary of Short-term and Long-term Borrowings (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of Short-term and Long-term Borrowings [Abstract] | ||
Weighted average interest rate | 4.00% | 0.24% |
Average amount (in Dollars) | $151,133 | $29,167 |
Average interest rate | 4.00% | 0.24% |
Maximum amount (in Dollars) | $683,400 | $250,000 |
Interest rate at month end | 4.00% | 0.24% |
Note_6_Leases_Details
Note 6 - Leases (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Leases [Abstract] | |||
Operating Leases, Rent Expense | $10,521 | $10,444 | $7,971 |
Capital Leased Assets Net Book Value | $0 |
Note_6_Leases_Details_The_Comp
Note 6 - Leases (Details) - The Company's Minimum Commitment Under Operating leases (USD $) | Sep. 30, 2014 |
The Company's Minimum Commitment Under Operating leases [Abstract] | |
2015 | $6,866 |
2016 | 2,880 |
Total | $9,746 |
Note_7_Stock_Options_Details
Note 7 - Stock Options (Details) (USD $) | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | Sep. 30, 2011 | |
Note 7 - Stock Options (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||||
Allocated Share-based Compensation Expense | $2,837 | $6,465 | $11,388 | ||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Volatility Rate | 0.84% | ||||
Common Class A [Member] | 2013 Omnibus Equity Plan [Member] | |||||
Note 7 - Stock Options (Details) [Line Items] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 150,000 | ||||
Common Class A [Member] | |||||
Note 7 - Stock Options (Details) [Line Items] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 949,233 | 958,233 | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 100,000 | 100,000 | |||
Expired Plan [Member] | |||||
Note 7 - Stock Options (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | ||||
Expired Directors Plans [Member] | |||||
Note 7 - Stock Options (Details) [Line Items] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 22,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 10 years | ||||
Directors Plans [Member] | |||||
Note 7 - Stock Options (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 7,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 22,000 | 31,000 | 42,000 | 38,000 | |
Allocated Share-based Compensation Expense | 2,837 | 6,465 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $543 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 5.00% | 5.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | |||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Volatility Rate | 0.87% | 0.87% |
Note_7_Stock_Options_Details_T
Note 7 - Stock Options (Details) - Transactions Involving the Directors Plans (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Option Shares Directors Plans: | |||
Granted | 0 | ||
Directors Plans [Member] | |||
Option Shares Directors Plans: | |||
Outstanding October 1, | 31,000 | 42,000 | 38,000 |
Outstanding October 1, | $5.57 | $5.62 | $5.95 |
Granted | 7,000 | ||
Granted | $2.92 | ||
Canceled/expired | -9,000 | -11,000 | -3,000 |
Canceled/expired | $6.23 | $3.55 | $3.55 |
Outstanding September 30, ($2.925 to $11.00 per share) | 22,000 | 31,000 | 42,000 |
Outstanding September 30, ($2.925 to $11.00 per share) | $5.30 | $5.57 | $5.62 |
Exercisable September 30, | 20,000 | 25,000 | 30,000 |
Exercisable September 30, | $5.54 | $6.20 | $6.52 |
Note_7_Stock_Options_Details_T1
Note 7 - Stock Options (Details) - Transactions Involving the Directors Plans (Parentheticals) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note 7 - Stock Options (Details) - Transactions Involving the Directors Plans (Parentheticals) [Line Items] | |||
Exercise Price Range, Low | $2.92 | $2.92 | $2.92 |
Exercise Price Range, High | $11 | $11 | $11 |
Note_7_Stock_Options_Details_S
Note 7 - Stock Options (Details) - Summary of Range of Exercise Prices for Stock Options Outstanding and Exercisable Directors Plans (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower exercise price | $2.92 | $2.92 | $2.92 |
Upper exercise price | $11 | $11 | $11 |
Price Range 1 [Member] | Directors Plans [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower exercise price | $2.92 | ||
Upper exercise price | $5.25 | ||
Outstanding stock options (in Shares) | 13,000 | ||
Weighted average exercise price, outstanding | $3.28 | ||
Weighted average remaining life, outstanding | 5 years 328 days | ||
Exercisable stock options (in Shares) | 11,000 | ||
Weighted average exercise price, exercisable | $3.35 | ||
Price Range 2 [Member] | Directors Plans [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower exercise price | $6 | ||
Upper exercise price | $7.25 | ||
Outstanding stock options (in Shares) | 5,000 | ||
Weighted average exercise price, outstanding | $6.18 | ||
Weighted average remaining life, outstanding | 3 years 6 months | ||
Exercisable stock options (in Shares) | 5,000 | ||
Weighted average exercise price, exercisable | $6.18 | ||
Price Range 3 [Member] | Directors Plans [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower exercise price | $10.50 | ||
Upper exercise price | $11 | ||
Outstanding stock options (in Shares) | 4,000 | ||
Weighted average exercise price, outstanding | $10.75 | ||
Weighted average remaining life, outstanding | 3 years | ||
Exercisable stock options (in Shares) | 4,000 | ||
Weighted average exercise price, exercisable | $10.75 | ||
Directors Plans [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Outstanding stock options (in Shares) | 22,000 | ||
Weighted average exercise price, outstanding | $5.30 | ||
Exercisable stock options (in Shares) | 20,000 | ||
Weighted average exercise price, exercisable | $5.54 |
Note_8_Capital_Stock_Treasury_1
Note 8 - Capital Stock, Treasury Stock, and Contributed Capital (Details) (USD $) | Oct. 11, 2012 | Sep. 30, 2014 | Sep. 30, 2013 |
Common Class A [Member] | Original Authorized Shares [Member] | |||
Note 8 - Capital Stock, Treasury Stock, and Contributed Capital (Details) [Line Items] | |||
Common Stock, Shares Authorized | 3,750,000 | ||
Common Class A [Member] | Current Authorized Shares [Member] | |||
Note 8 - Capital Stock, Treasury Stock, and Contributed Capital (Details) [Line Items] | |||
Common Stock, Shares Authorized | 10,000,000 | ||
Common Class A [Member] | |||
Note 8 - Capital Stock, Treasury Stock, and Contributed Capital (Details) [Line Items] | |||
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Common Stock, Capital Shares Reserved for Future Issuance | 949,233 | 958,233 | |
Dividends Payable, Amount Per Share (in Dollars per share) | $0.10 | ||
Common Class B [Member] | Original Authorized Shares [Member] | |||
Note 8 - Capital Stock, Treasury Stock, and Contributed Capital (Details) [Line Items] | |||
Common Stock, Shares Authorized | 1,000,000 | ||
Common Class B [Member] | Current Authorized Shares [Member] | |||
Note 8 - Capital Stock, Treasury Stock, and Contributed Capital (Details) [Line Items] | |||
Common Stock, Shares Authorized | 2,500,000 | ||
Common Class B [Member] | |||
Note 8 - Capital Stock, Treasury Stock, and Contributed Capital (Details) [Line Items] | |||
Common Stock, Shares Authorized | 2,500,000 | 2,500,000 | |
Serial Preferred Shares [Member] | |||
Note 8 - Capital Stock, Treasury Stock, and Contributed Capital (Details) [Line Items] | |||
Common Stock, Shares Authorized | 1,000,000 |
Note_9_Income_Taxes_Details
Note 9 - Income Taxes (Details) (USD $) | Sep. 30, 2014 |
Note 9 - Income Taxes (Details) [Line Items] | |
Operating Loss Carryforwards | $5,500,000 |
Contribution Carryforward | 26,000 |
Research Tax Credit Carryforward [Member] | |
Note 9 - Income Taxes (Details) [Line Items] | |
Tax Credit Carryforward, Amount | $1,800,000 |
Note_9_Income_Taxes_Details_In
Note 9 - Income Taxes (Details) - Income Tax Reconciliation (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Reconciliation [Abstract] | |||
Income (Loss) Before Provision for Income Taxes | $8,376 | $138,805 | ($783,966) |
Statutory rate | 34.00% | 34.00% | 34.00% |
2,848 | 47,194 | -266,548 | |
Permanent differences | 1,200 | 1,200 | 2,500 |
Research and development credit - net | -46,300 | -44,900 | -8,500 |
Valuation allowance | 44,400 | 274,600 | |
Other | ($2,148) | ($3,494) | ($2,052) |
Note_9_Income_Taxes_Details_De
Note 9 - Income Taxes (Details) - Deferred Tax Assets (Liabilities) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Current: | ||
Inventories | $128,900 | $277,300 |
Accrued liabilities | -11,700 | 63,000 |
Prepaid expense | -12,900 | -9,500 |
107,700 | 334,200 | |
Valuation allowance | -107,700 | -334,200 |
Noncurrent: | ||
Depreciation and amortization | 45,100 | 42,700 |
Research and development and other credit carryforwards | 1,903,800 | 1,830,600 |
Net operating loss carryforward | 1,880,200 | 1,817,200 |
Contribution carryforward | 8,900 | 8,900 |
Directors stock option plan | 40,000 | 39,000 |
Acquisition costs | 101,000 | 49,700 |
Accrued liabilities | 80,000 | |
4,059,000 | 3,788,100 | |
Valuation allowance | -4,059,000 | -3,788,100 |
Bad Debts [Member] | ||
Current: | ||
Bad debts | $3,400 | $3,400 |
Note_10_Earnings_Per_Common_Sh2
Note 10 - Earnings Per Common Share (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Equity Option [Member] | Minimum [Member] | |||
Note 10 - Earnings Per Common Share (Details) [Line Items] | |||
Share Price | 2.925 | ||
Equity Option [Member] | Maximum [Member] | |||
Note 10 - Earnings Per Common Share (Details) [Line Items] | |||
Share Price | 11 | ||
Equity Option [Member] | |||
Note 10 - Earnings Per Common Share (Details) [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 22,000 | 31,000 | 42,000 |
Warrant [Member] | |||
Note 10 - Earnings Per Common Share (Details) [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 200,000 | 200,000 | |
Options And Warrants [Member] | Minimum [Member] | |||
Note 10 - Earnings Per Common Share (Details) [Line Items] | |||
Share Price | 2.5 | 2.5 | |
Options And Warrants [Member] | Maximum [Member] | |||
Note 10 - Earnings Per Common Share (Details) [Line Items] | |||
Share Price | 11 | 11 | |
Conversion Rights [Member] | |||
Note 10 - Earnings Per Common Share (Details) [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 365,119 | ||
Share Price | 1.85 |
Note_10_Earnings_Per_Common_Sh3
Note 10 - Earnings Per Common Share (Details) - Summary of Earnings Per Share Calculation (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Basic Income (Loss) Per Share | |||
Income (Loss) available to common stockholders (in Dollars) | $8,376 | $138,805 | ($783,966) |
Shares denominator | 1,638,215 | 1,610,571 | 1,372,812 |
Per share amount (in Dollars per share) | $0.01 | $0.09 | ($0.57) |
Effect of Dilutive Securities | |||
Average shares outstanding | 1,638,215 | 1,610,571 | 1,372,812 |
Options available under convertible note | 31,097 | 23,505 | |
1,669,312 | 1,634,076 | 1,372,812 | |
Diluted Income (Loss) Per Share | |||
Income (Loss) available to common stockholders (in Dollars) | $8,376 | $138,805 | ($783,966) |
Per share amount (in Dollars per share) | $0.01 | $0.08 | ($0.57) |
Note_11_Employee_Benefit_Plans1
Note 11 - Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $16,979 | $16,003 | $15,178 |
Note_12_Segment_and_Related_In2
Note 12 - Segment and Related Information (Details) | 12 Months Ended |
Sep. 30, 2014 | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 4 |
Number of Reportable Segments | 2 |
Note_12_Segment_and_Related_In3
Note 12 - Segment and Related Information (Details) - Information by Industry Segment (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net Sales | |||
Net sales | $6,305,836 | $6,466,172 | $4,761,289 |
Income (Loss) Before Provision for Income Taxes | |||
Income (loss) before provistion for income taxes | 8,376 | 138,805 | -783,966 |
Indicators and Gauges [Member] | |||
Net Sales | |||
Net sales | 1,492,348 | 1,657,725 | 1,612,943 |
Income (Loss) Before Provision for Income Taxes | |||
Income (loss) before provistion for income taxes | 312,692 | 433,361 | 271,343 |
Automotive Diagnostic Tools and Equipment [Member] | |||
Net Sales | |||
Net sales | 4,813,488 | 4,808,447 | 3,148,346 |
Income (Loss) Before Provision for Income Taxes | |||
Income (loss) before provistion for income taxes | 704,427 | 834,630 | -78,433 |
Corporate, Non-Segment [Member] | |||
Income (Loss) Before Provision for Income Taxes | |||
Income (loss) before provistion for income taxes | -1,008,743 | -1,129,186 | -976,876 |
UNITED STATES | |||
Net Sales | |||
Net sales | 6,149,883 | 6,317,722 | 4,598,029 |
AUSTRALIA | |||
Net Sales | |||
Net sales | 64,744 | 23,481 | 14,018 |
CANADA | |||
Net Sales | |||
Net sales | 58,983 | 77,239 | 72,535 |
MEXICO | |||
Net Sales | |||
Net sales | 25,288 | 16,640 | 36,960 |
TAIWAN, PROVINCE OF CHINA | |||
Net Sales | |||
Net sales | 22,481 | 34,935 | |
Other Foreign Countries [Member] | |||
Net Sales | |||
Net sales | $6,938 | $8,609 | $4,812 |
Note_12_Segment_and_Related_In4
Note 12 - Segment and Related Information (Details) - Asset Information (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Identifiable Assets | ||
Identifiable assets | $3,699,657 | $3,504,683 |
Indicators and Gauges [Member] | ||
Identifiable Assets | ||
Identifiable assets | 685,198 | 898,555 |
Automotive Diagnostic Tools and Equipment [Member] | ||
Identifiable Assets | ||
Identifiable assets | 2,199,779 | 1,327,932 |
Corporate, Non-Segment [Member] | ||
Identifiable Assets | ||
Identifiable assets | $814,680 | $1,278,196 |
Note_14_Subsequent_Events_Deta
Note 14 - Subsequent Events (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Majority Shareholder [Member] | Subsequent Event [Member] | ||
Note 14 - Subsequent Events (Details) [Line Items] | ||
Convertible Debt | $467,000 | |
Majority Shareholder [Member] | ||
Note 14 - Subsequent Events (Details) [Line Items] | ||
Due to Related Parties | 250,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.34% | |
Subsequent Event [Member] | ||
Note 14 - Subsequent Events (Details) [Line Items] | ||
Convertible Debt | 467,000 | |
Accrued Professional Fees | $45,000 |
Note_15_Business_Condition_and1
Note 15 - Business Condition and Management Plan (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2014 | |
Note 15 - Business Condition and Management Plan (Details) [Line Items] | ||
Operating Loss Carryforward Net of Allowance | $0 | |
Line of Credit Facility, Current Borrowing Capacity | 250,000 | |
Proceeds from Related Party Debt | 200,000 | |
Subsequent Event [Member] | ||
Note 15 - Business Condition and Management Plan (Details) [Line Items] | ||
Convertible Debt | $467,000 |
Note_16_Quarterly_Data_Unaudit2
Note 16 - Quarterly Data (Unaudited) (Details) - Summary of Quarterly Data (Unaudited) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net Sales | |||
Net sales | $6,305,836 | $6,466,172 | $4,761,289 |
Net Income (Loss) | |||
Net income (loss) | 8,376 | 138,805 | -783,966 |
Basic | |||
Net income (loss) per common share, basic (in Dollars per share) | $0.01 | $0.09 | ($0.57) |
Diluted | |||
Net income (loss) per common share, diluted (in Dollars per share) | $0.01 | $0.08 | ($0.57) |
First [Member] | |||
Net Sales | |||
Net sales | 1,050,242 | 1,738,903 | 1,181,501 |
Gross Profit | |||
Gross profit | 360,838 | 812,501 | 392,712 |
Net Income (Loss) | |||
Net income (loss) | -320,287 | 143,804 | -183,140 |
Basic | |||
Net income (loss) per common share, basic (in Dollars per share) | ($0.20) | $0.09 | ($0.15) |
Diluted | |||
Net income (loss) per common share, diluted (in Dollars per share) | ($0.20) | $0.09 | ($0.15) |
Second [Member] | |||
Net Sales | |||
Net sales | 1,116,467 | 1,964,338 | 1,178,538 |
Gross Profit | |||
Gross profit | 428,031 | 856,177 | 402,681 |
Net Income (Loss) | |||
Net income (loss) | -297,655 | 119,431 | -224,781 |
Basic | |||
Net income (loss) per common share, basic (in Dollars per share) | ($0.18) | $0.08 | ($0.16) |
Diluted | |||
Net income (loss) per common share, diluted (in Dollars per share) | ($0.18) | $0.07 | ($0.16) |
Third [Member] | |||
Net Sales | |||
Net sales | 2,130,412 | 1,339,931 | 1,271,803 |
Gross Profit | |||
Gross profit | 1,124,914 | 572,192 | 479,189 |
Net Income (Loss) | |||
Net income (loss) | 386,911 | -133,777 | -170,975 |
Basic | |||
Net income (loss) per common share, basic (in Dollars per share) | $0.24 | ($0.08) | ($0.12) |
Diluted | |||
Net income (loss) per common share, diluted (in Dollars per share) | $0.23 | ($0.08) | ($0.12) |
Fourth [Member] | |||
Net Sales | |||
Net sales | 2,008,715 | 1,423,000 | 1,129,447 |
Gross Profit | |||
Gross profit | 780,893 | 727,268 | 482,546 |
Net Income (Loss) | |||
Net income (loss) | $239,407 | $9,347 | ($205,070) |
Basic | |||
Net income (loss) per common share, basic (in Dollars per share) | $0.15 | $0.01 | ($0.14) |
Diluted | |||
Net income (loss) per common share, diluted (in Dollars per share) | $0.14 | $0.01 | ($0.14) |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) - Summary of Valuation and Qualifying Accounts (USD $) | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Allowance for Doubtful Accounts [Member] | ||||||
Schedule II - Valuation and Qualifying Accounts (Details) - Summary of Valuation and Qualifying Accounts [Line Items] | ||||||
Beginning balance | $10,000 | $10,000 | $10,000 | |||
Charged to costs and expenses | -4,446 | 2,049 | [1] | 374 | [1] | |
Charged to other accounts | [2] | [2] | [2] | |||
Deductions | -4,446 | 2,049 | [3] | 374 | [3] | |
Ending balance | 10,000 | 10,000 | 10,000 | |||
Inventory Valuation Reserve [Member] | ||||||
Schedule II - Valuation and Qualifying Accounts (Details) - Summary of Valuation and Qualifying Accounts [Line Items] | ||||||
Beginning balance | 793,000 | 851,000 | 714,000 | |||
Charged to costs and expenses | -113,603 | 60,107 | 185,697 | |||
Deductions | 315,897 | [4] | 118,107 | [4] | 48,697 | [4] |
Ending balance | 363,500 | 793,000 | 851,000 | |||
Warranty Reserves [Member] | ||||||
Schedule II - Valuation and Qualifying Accounts (Details) - Summary of Valuation and Qualifying Accounts [Line Items] | ||||||
Beginning balance | 89 | 451 | 993 | |||
Charged to costs and expenses | 10,275 | 8,690 | 7,565 | |||
Deductions | 10,335 | 9,052 | 8,107 | |||
Ending balance | 9 | 89 | 451 | |||
Valuation Allowance of Deferred Tax Assets [Member] | ||||||
Schedule II - Valuation and Qualifying Accounts (Details) - Summary of Valuation and Qualifying Accounts [Line Items] | ||||||
Beginning balance | 4,122,300 | 4,236,700 | 4,049,300 | |||
Charged to costs and expenses | 44,400 | 187,400 | ||||
Deductions | 114,400 | |||||
Ending balance | $4,166,700 | $4,122,300 | $4,236,700 | |||
[1] | Classified as bad debt expense. | |||||
[2] | Recoveries on accounts charged off in prior years. | |||||
[3] | Accounts charged off during year as uncollectible. | |||||
[4] | Inventory charged off during the year as obsolete. |