Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Dec. 31, 2014 | Feb. 09, 2015 | |
Entity Registrant Name | HICKOK INC | |
Entity Central Index Key | 47307 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding (in shares) | 1,163,349 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding (in shares) | 474,866 |
Consolidated_Income_Statements
Consolidated Income Statements (Unaudited) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Net Sales | ||
Product Sales | $1,100,314 | $980,395 |
Service Sales | 61,904 | 69,847 |
Total Net Sales | 1,162,218 | 1,050,242 |
Costs and Expenses | ||
Cost of Product Sold | 759,510 | 655,300 |
Cost of Service Sold | 40,603 | 34,104 |
Product Development | 235,938 | 231,056 |
Marketing and Administrative Expenses | 399,399 | 453,997 |
Interest Charges | 128 | |
Other Income | -2,704 | -3,928 |
Total Costs and Expenses | 1,432,874 | 1,370,529 |
Income (Loss) before Provision for Income Taxes | -270,656 | -320,287 |
Net Income (Loss) | ($270,656) | ($320,287) |
Earnings per Common Share: | ||
Net Income (Loss) (in dollars per share) | ($0.17) | ($0.20) |
Earnings per Common Share Assuming Dilution: | ||
Net Income (Loss) (in dollars per share) | ($0.17) | ($0.20) |
Dividends per Common Share (in dollars per share) | $0 | $0 |
Consolidated_Balance_Sheet_Una
Consolidated Balance Sheet (Unaudited) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Current Assets | |||
Cash and Cash Equivalents | $683,826 | $390,327 | $571,424 |
Trade Accounts Receivable-Net | 486,258 | 1,172,268 | 510,450 |
Inventories | 1,684,526 | 1,714,197 | 1,647,927 |
Prepaid Expenses | 113,667 | 37,989 | 122,907 |
Total Current Assets | 2,968,277 | 3,314,781 | 2,852,708 |
Property, Plant and Equipment | |||
Land | 233,479 | 233,479 | 233,479 |
Buildings | 1,429,718 | 1,429,718 | 1,429,718 |
Machinery and Equipment | 2,525,972 | 2,516,380 | 2,428,890 |
4,189,169 | 4,179,577 | 4,092,087 | |
Less: Allowance for Depreciation | 3,816,931 | 3,800,551 | 3,768,832 |
Total Property - Net | 372,238 | 379,026 | 323,255 |
Other Assets | |||
Notes Receivable-Long-term | 4,100 | 4,100 | 4,100 |
Deposits | 1,750 | 1,750 | 1,750 |
Total Other Assets | 5,850 | 5,850 | 5,850 |
Total Assets | 3,346,365 | 3,699,657 | 3,181,813 |
Current Liabilities | |||
Convertible Notes Payable-related party | 200,000 | ||
Trade Accounts Payable | 165,798 | 145,557 | 246,605 |
Accrued Payroll & Related Expenses | 105,926 | 132,719 | 123,643 |
Accrued Expenses | 94,882 | 178,815 | 323,199 |
Accrued Taxes Other Than Income | 55,648 | 48,342 | 59,634 |
Total Current Liabilities | 622,254 | 505,433 | 753,081 |
Long-Term Liabilities | |||
Convertible Notes Payable-related party | 200,000 | ||
Accrued Expenses | 235,200 | 235,200 | |
Total Long-Term Liabilities | 235,200 | 435,200 | |
Stockholders' Equity | |||
Preferred, no par value; authorized 1,000,000 shares; no shares outstanding | 0 | 0 | 0 |
Contributed Capital | 1,488,560 | 1,488,017 | 1,486,388 |
Retained Earnings (Deficit) | -735,703 | -465,047 | -793,710 |
Total Stockholders' Equity | 2,488,911 | 2,759,024 | 2,428,732 |
Total Liabilities and Stockholders' Equity | 3,346,365 | 3,699,657 | 3,181,813 |
Common Class A [Member] | |||
Stockholders' Equity | |||
Class of common stock - value | 1,261,188 | 1,261,188 | 1,261,188 |
Common Class B [Member] | |||
Stockholders' Equity | |||
Class of common stock - value | $474,866 | $474,866 | $474,866 |
Consolidated_Balance_Sheet_Una1
Consolidated Balance Sheet (Unaudited) (Parentheticals) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Preferred stock - par value (in dollars per share) | $0 | $0 | $0 |
Preferred stock - shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock - shares outstanding (in shares) | 0 | 0 | 0 |
Common Class A [Member] | |||
Class of common stock - par value (in dollars per share) | $0 | $0 | $0 |
Class of common stock - shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Class of common stock - shares outstanding (in shares) | 1,163,349 | 1,163,349 | 1,163,349 |
Class of common stock - excluding shares in treasury (in shares) | 15,795 | 15,795 | 15,795 |
Common Class B [Member] | |||
Class of common stock - par value (in dollars per share) | $0 | $0 | $0 |
Class of common stock - shares authorized (in shares) | 2,500,000 | 2,500,000 | 2,500,000 |
Class of common stock - shares outstanding (in shares) | 474,866 | 474,866 | 474,866 |
Class of common stock - excluding shares in treasury (in shares) | 667 | 667 | 667 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities: | ||
Cash received from customers | $1,848,228 | $1,178,108 |
Cash paid to suppliers and employees | -1,545,549 | -1,505,791 |
Interest received | 412 | 383 |
Net Cash Provided By (Used In) Operating Activities | 303,091 | -327,300 |
Cash Flows from Investing Activities: | ||
Capital expenditures | -9,592 | -40,128 |
Net Cash Provided By (Used In) Investing Activities | -9,592 | -40,128 |
Net increase (decrease) in cash and cash equivalents | 293,499 | -367,428 |
Cash and cash equivalents at beginning of year | 390,327 | 938,852 |
Cash and cash equivalents at end of first quarter | 683,826 | 571,424 |
Reconciliation of Net Income (Loss) to Net Cash Provided By (Used In) Operating Activities: | ||
Net Income (Loss) | -270,656 | -320,287 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 16,380 | 16,380 |
Share-based compensation expense | 543 | 1,208 |
Deferred income taxes | 0 | 0 |
Changes in assets and liabilities: | ||
Decrease (Increase) in accounts receivable | 686,010 | 127,866 |
Decrease (Increase) in inventories | 29,671 | -58,111 |
Decrease (Increase) in prepaid expenses | -75,678 | -90,565 |
Increase (Decrease) in accounts payable | 20,241 | 72,369 |
Increase (Decrease) in accrued payroll and related expenses | -26,793 | -18,876 |
Increase (Decrease) in accrued expenses and accrued taxes other than income and long-term liabilities | -76,627 | -57,284 |
Total Adjustments | 573,747 | -7,013 |
Net Cash Provided By (Used In) Operating Activities | $303,091 | ($327,300) |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | 1 |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended December 31, 2014 are not necessarily indicative of the results that may be expected for the year ended September 30, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended September 30, 2014. |
Note_2_Inventories
Note 2 - Inventories | 3 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Notes to Financial Statements | |||||||||||||
Inventory Disclosure [Text Block] | 2 | ||||||||||||
Inventories | |||||||||||||
Inventories are valued at the lower of cost or market and consist of the following: | |||||||||||||
December 31, | September 30, | December 31, | |||||||||||
2014 | 2014 | 2013 | |||||||||||
Components | $ | 1,049,254 | $ | 1,066,672 | $ | 864,844 | |||||||
Work-in-Process | 501,125 | 521,424 | 612,598 | ||||||||||
Finished Product | 134,147 | 126,101 | 170,485 | ||||||||||
$ | 1,684,526 | $ | 1,714,197 | $ | 1,647,927 | ||||||||
The above amounts are net of reserve for obsolete inventory in the amount of $365,564, $363,500 and $810,376 for the periods ended December 31, 2014, September 30, 2014 and December 31, 2013 respectively. |
Note_3_Notes_Receivable
Note 3 - Notes Receivable | 3 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3 |
Notes Receivable | |
The Company has a note receivable with a current employee at an interest rate of three percent per annum. The Company does not anticipate repayment within the next twelve months. |
Note_4_Convertible_Notes_Payab
Note 4 - Convertible Notes Payable | 3 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 4 |
Convertible Notes Payable | |
On December 30, 2011, Hickok Incorporated entered into a Convertible Loan Agreement with Roundball, LLC. Under the Convertible Loan Agreement, the Company issued a convertible note to Roundball in the amount of $466,879. In addition, Roundball, LLC had the right to cause the Company to borrow up to an additional $466,880 from Roundball, LLC. The note was unsecured, bore interest at a rate of 0.20% per annum and was set to mature on December 30, 2012. The note was convertible by the Investor at any time into Class A Common Shares of the Company, at a conversion price of $1.85 per share, although up to no more than 504,735 Conversion Shares. The Company had the option to convert the note at the expiration date, if the investor had not during the course of the agreement. On December 30, 2011, Roundball converted $233,438 into Class A Common Shares of the Company. In addition, on August 20, 2012 Roundball converted the remaining $233,441 under the Convertible Loan Agreement into Class A Common Shares of the Company. | |
On December 30, 2012 management entered into an amended Convertible Loan Agreement with Roundball which may provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement was by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2012 to December 31, 2013 and modified the terms to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.24%. | |
In partial consideration for Amendment No. 1, the Company and Roundball entered into a Warrant Agreement, dated December 30, 2012, whereby the Company issued a warrant to Roundball to purchase, at its option, up to 100,000 shares of Class A Common Stock of the Company at an exercise price of $2.50 per share, subject to certain anti-dilution and other adjustments. If not exercised, this warrant will expire on December 30, 2015. Roundball is an affiliate of Steven Rosen, a Director of the Company. | |
The Company used the Black-Scholes option pricing model to determine the fair value estimate for recognizing the cost of services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. The warrants are immediately exercisable and expire in December 2015. The fair value of the warrants issued was amortized over the one year amended convertible loan agreement period. | |
On December 30, 2013 management entered into Amendment No. 2 of the Convertible Loan Agreement with Roundball which continued to provide approximately $467,000 of liquidity to meet on going working capital requirements. The amended Convertible Loan Agreement was by and between the Company and a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement from December 30, 2013 to December 30, 2014 and continues to allow $250,000 of borrowing on the agreement at the Company's discretion at an interest rate of 0.25%. | |
During fiscal year ended September 30, 2014, the Company borrowed $200,000 against this agreement. As of December 31, 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%. |
Note_5_Shortterm_Financing
Note 5 - Short-term Financing | 3 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Short-term Debt [Text Block] | 5 |
Short-term Financing | |
The Company had a credit agreement of $250,000 with Robert L. Bauman, one of its major shareholders who is also an employee of the Company. The agreement was to expire in April 2013 but was modified on December 31, 2012 to extend the maturity date to December 2013. Effective October 30, 2012 for the remainder of the agreement, the lender may terminate the agreement with 45 days written notice, but it is 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. |
Note_6_Capital_Stock_Treasury_
Note 6 - Capital Stock, Treasury Stock, Contributed Capital and Stock Options | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | 6 | ||||||||||||||||||||||||
Capital Stock, Treasury Stock, Contributed Capital and Stock Options | |||||||||||||||||||||||||
Unissued shares of Class A common stock (949,233 shares) are reserved for the share-for-share conversion rights of the Class B common stock, stock options under the Directors Plans, conversion rights of the Convertible Promissory Note and available warrants. | |||||||||||||||||||||||||
On February 27, 2013, the Company's 2013 Omnibus Equity Plan was approved and adopted by an affirmative vote of a majority of the Company's Class A and Class B Shareholders. | |||||||||||||||||||||||||
The 2013 Omnibus Plan will provide the Company with the flexibility to grant a variety of share-based awards for covered employees, consultants and Directors. The 2013 Omnibus Plan provides for the grant of the following types of incentive awards: stock options, stock appreciation rights, restricted shares, restricted share units, performance shares and Class A Common Shares. Those who will be eligible for awards under the 2013 Omnibus Plan include employees who provide services to the Company and its affiliates, executive officers, non-employee Directors and consultants designated by the Compensation Committee. The Plan has 150,000 Class A Common Shares reserved for issuance. The Class A Common Shares may be either authorized, but unissued, common shares or treasury shares. No share-based awards have been granted under the 2013 Omnibus Equity Plan as of December 31, 2014. | |||||||||||||||||||||||||
The Company's expired Outside Directors Stock Option Plans (collectively the "Directors Plans"), provided for the automatic grant of options to purchase up to 22,000 shares of Class A Common Stock to members of the Board of Directors who are not employees of the Company, at the fair market value on the date of grant. Options for 22,000 Class A shares were outstanding at December 31, 2014 (22,000 shares at September 30, 2014 and 31,000 shares at December 31, 2013) at prices ranging from $2.925 to $11.00 per share. All outstanding options under the Directors Plans become fully exercisable on March 8, 2015. | |||||||||||||||||||||||||
The following is a summary of the range of exercise prices for stock options outstanding and exercisable under the Directors Plans at December 31, 2014: | |||||||||||||||||||||||||
Directors Plans | Outstanding | Weighted Average | Weighted Average Remaining | Number of Stock Options | Weighted Average | ||||||||||||||||||||
Stock Options | Share Price | Life | Exercisable | Share Price | |||||||||||||||||||||
Range of exercise prices: | |||||||||||||||||||||||||
$2.92 | - | $5.25 | 13,000 | $ | 3.28 | 5.6 | 11,000 | $ | 3.35 | ||||||||||||||||
$6.00 | - | $7.25 | 5,000 | $ | 6.18 | 3.3 | 5,000 | $ | 6.18 | ||||||||||||||||
$10.50 | - | $11.00 | 4,000 | $ | 10.75 | 2.8 | 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 for both employees and non-employee Directors. Compensation cost for fixed based awards are measured at the grant date, and the Company uses the Black-Scholes option pricing model to determine the fair value estimates for recognizing the cost of employee and director services received in exchange for an award of equity instruments. The Black-Scholes option pricing model requires the use of subjective assumptions which can materially affect the fair value estimates. Employee stock options were immediately exercisable while Director's stock options are exercisable over a three year period. The fair value of stock option grants to Directors is amortized over the three year vesting period. During the quarter ended December 31, 2014 $543 was expensed as share-based compensation. During the quarter ended December 31, 2013 $1,208 was expensed as share-based compensation. The following weighted-average assumptions were used in the option pricing model for the three month periods ended December 31, 2014 and 2013 respectively: a risk free interest rate of 5.0% and 5.0%; an expected life of 10 and 10 years; an expected dividend yield of 0.0% and 0.0%; and a volatility factor of .87 and .87. |
Note_7_Recently_Issued_Account
Note 7 - Recently Issued Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 7 |
Recently Issued Accounting Pronouncements | |
The Company did not incur any material impact to its financial condition or results of operations due to the adoption of any new accounting standards during the periods reported. | |
In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. The standard, issued as Accounting Standards Update (ASU) 2014-09, outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The core principle of this model is that “an entity recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to 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. |
Note_8_Earnings_Per_Common_Sha
Note 8 - Earnings Per Common Share | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Earnings Per Share [Text Block] | 8 | ||||||||
Earnings per Common Share | |||||||||
Earnings per common share information is computed on the weighted average number of shares outstanding during each period based on the provisions of FASB Codification ASC Topic 260, "Earnings per Share." The required reconciliations are as follows: | |||||||||
Three Months ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Basic Income (Loss) per Share | |||||||||
Income (Loss) available to common stockholders | $ | (270,656 | ) | $ | (320,287 | ) | |||
Shares denominator | 1,638,215 | 1,638,215 | |||||||
Per share amount | $ | (.17 | ) | $ | (.20 | ) | |||
Effect of Dilutive Securities | |||||||||
Average shares outstanding | 1,638,215 | 1,638,215 | |||||||
Stock options | -* | -* | |||||||
1,638,215 | 1,638,215 | ||||||||
Diluted Income (Loss) per Share | |||||||||
Income (Loss) available to common stockholders | $ | (270,656 | ) | $ | (320,287 | ) | |||
Per share amount | $ | (.17 | ) | $ | (.20 | ) | |||
* Net effect of stock options, warrants, and Convertible Note were antidilutive for the period. | |||||||||
Options and warrants to purchase 22,000 and 200,000 shares of common stock respectively during the first quarter of fiscal 2015 at prices ranging from $2.50 to $11.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's and warrant's effect was antidilutive or the exercise price was greater than the average market price of the common share. | |||||||||
Options and warrants to purchase 31,000 and 200,000 shares of common stock respectively during the first quarter of fiscal 2014 at prices ranging from $2.50 to $11.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's and warrant's effect was antidilutive or the exercise price was greater than the average market price of the common share. | |||||||||
In addition, conversion rights to purchase 252,367 shares of common stock at a price of $1.85 per share were not included in the computation of diluted earnings per share during the first quarter of fiscal 2015 and 2014 because the conversion rights of the Convertible Promissory Notes effect was antidilutive or the exercise price was greater than the average market price of the common share. |
Note_9_Segment_and_Related_Inf
Note 9 - Segment and Related Information | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Segment Reporting Disclosure [Text Block] | 9 | ||||||||
Segment and Related Information | |||||||||
The Company's four business units have a common management team and infrastructure that offer different products and services. The business units have been aggregated into two reportable segments: 1.)indicators and gauges and 2.)automotive related diagnostic tools and equipment. | |||||||||
Indicators and Gauges | |||||||||
This segment consists of products manufactured and sold primarily to companies in the aircraft and locomotive industry. Within the aircraft market, the primary customers are those companies that manufacture or service business and pleasure aircraft. Within the locomotive market, indicators and gauges are sold to both original equipment manufacturers and to operators of railroad equipment. | |||||||||
Automotive Diagnostic Tools and Equipment | |||||||||
This segment consists primarily of products designed and manufactured to support the testing or servicing of automotive systems using electronic means to measure vehicle parameters. These products are sold to OEM's and to the aftermarket using several brand names and a variety of distribution methods. Included in this segment are products used for state required testing of vehicle emissions. | |||||||||
Information by industry segment is set forth below: | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Net Sales | |||||||||
Indicators and Gauges | $ | 245,669 | $ | 404,405 | |||||
Automotive Diagnostic Tools and Equipment | 916,549 | 645,837 | |||||||
$ | 1,162,218 | $ | 1,050,242 | ||||||
Income (Loss) before Provision for Income Taxes | |||||||||
Indicators and Gauges | $ | 2,493 | $ | 65,634 | |||||
Automotive Diagnostic Tools and Equipment | (31,388 | ) | (87,070 | ) | |||||
General Corporate Expenses | (241,761 | ) | (298,851 | ) | |||||
$ | (270,656 | ) | $ | (320,287 | ) | ||||
Asset Information | |||||||||
Indicators and Gauges | $ | 704,441 | $ | 922,325 | |||||
Automotive Diagnostic Tools and Equipment | 1,462,089 | 1,235,229 | |||||||
Corporate | 1,179,835 | 1,024,259 | |||||||
$ | 3,346,365 | $ | 3,181,813 | ||||||
Geographical Information | |||||||||
Included in the consolidated financial statements are the following amounts related to geographical locations: | |||||||||
Revenue: | |||||||||
United States | $ | 1,127,459 | $ | 1,004,148 | |||||
Australia | 8,125 | 24,138 | |||||||
Canada | 19,658 | 11,492 | |||||||
Mexico | 6,976 | 10,464 | |||||||
Other foreign countries | - | - | |||||||
$ | 1,162,218 | $ | 1,050,242 | ||||||
All export sales to Australia, Canada, Mexico and other foreign countries are made in United States of America Dollars. |
Note_10_Commitments_and_Contin
Note 10 - Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 10 |
Commitments and Contingencies | |
Legal Matters | |
The Company is the plaintiff in a suit pursuing patent infringement against a competitor in the emissions market. Management believes that it is not currently possible to estimate the impact, if any, that the ultimate resolution of this matter will have on the Company's results of operations, financial position or cash flows. |
Note_11_Subsequent_Events
Note 11 - Subsequent Events | 3 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 11 |
Subsequent Events | |
The Company has analyzed its operations subsequent to December 31, 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. |
Note_12_Business_Condition_and
Note 12 - Business Condition and Management Plan | 3 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Going Concern Disclosure [Text Block] | 12 |
Business Condition and Management Plan | |
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has suffered recurring losses from operations during the past several years due primarily to decreasing sales of existing product lines and a general economic downturn in all markets the Company serves. The resulting lower sales levels have impacted the Company's accounts receivable and cash balances, if this situation continues it may prevent the Company from generating sufficient cash flow to sustain its operations. | |
The ability of the Company to continue as a going concern is dependent on improving the Company's profitability and cash flow and securing additional financing if needed. Management continues to review and revise its strategic plan and believes in the viability of its strategy to increase revenues and profitability through increased sales of existing products and the introduction of new products to the market place. Management believes that the actions presently being taken by the Company will provide the stimulus for it to continue as a going concern, however, because of the inherent uncertainties there can be no assurances to that effect. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Additionally, the Company has net operating loss carryforwards, currently valued at $0, that offset taxable income. | |
In addition, on December 31, 2014, management entered into an amended unsecured convertible loan agreement which may provide approximately $467,000 of liquidity to meet on going working capital requirements. The unsecured convertible loan agreement is with a major shareholder who is also a Director modifying the terms and extending the due date of the loan agreement and continues to allow $250,000 of borrowing on the agreement at the Company's discretion. This facility is available through December 2015. The Company borrowed $200,000 on the loan agreement during the fiscal year ended September 30, 2014 and it is outstanding at December 31, 2014. | |
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. | |
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 prior fiscal year should provide the Company with the needed working capital for the next twelve months. |
Note_2_Inventories_Tables
Note 2 - Inventories (Tables) | 3 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Notes Tables | |||||||||||||
Schedule of Inventory, Current [Table Text Block] | December 31, | September 30, | December 31, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Components | $ | 1,049,254 | $ | 1,066,672 | $ | 864,844 | |||||||
Work-in-Process | 501,125 | 521,424 | 612,598 | ||||||||||
Finished Product | 134,147 | 126,101 | 170,485 | ||||||||||
$ | 1,684,526 | $ | 1,714,197 | $ | 1,647,927 |
Note_6_Capital_Stock_Treasury_1
Note 6 - Capital Stock, Treasury Stock, Contributed Capital and Stock Options (Tables) (Directors Plans [Member]) | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Directors Plans [Member] | |||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Directors Plans | Outstanding | Weighted Average | Weighted Average Remaining | Number of Stock Options | Weighted Average | |||||||||||||||||||
Stock Options | Share Price | Life | Exercisable | Share Price | |||||||||||||||||||||
Range of exercise prices: | |||||||||||||||||||||||||
$2.92 | - | $5.25 | 13,000 | $ | 3.28 | 5.6 | 11,000 | $ | 3.35 | ||||||||||||||||
$6.00 | - | $7.25 | 5,000 | $ | 6.18 | 3.3 | 5,000 | $ | 6.18 | ||||||||||||||||
$10.50 | - | $11.00 | 4,000 | $ | 10.75 | 2.8 | 4,000 | $ | 10.75 | ||||||||||||||||
22,000 | $ | 5.3 | 20,000 | $ | 5.54 |
Note_8_Earnings_Per_Common_Sha1
Note 8 - Earnings Per Common Share (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes Tables | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months ended | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Basic Income (Loss) per Share | |||||||||
Income (Loss) available to common stockholders | $ | (270,656 | ) | $ | (320,287 | ) | |||
Shares denominator | 1,638,215 | 1,638,215 | |||||||
Per share amount | $ | (.17 | ) | $ | (.20 | ) | |||
Effect of Dilutive Securities | |||||||||
Average shares outstanding | 1,638,215 | 1,638,215 | |||||||
Stock options | -* | -* | |||||||
1,638,215 | 1,638,215 | ||||||||
Diluted Income (Loss) per Share | |||||||||
Income (Loss) available to common stockholders | $ | (270,656 | ) | $ | (320,287 | ) | |||
Per share amount | $ | (.17 | ) | $ | (.20 | ) |
Note_9_Segment_and_Related_Inf1
Note 9 - Segment and Related Information (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes Tables | |||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Net Sales | |||||||||
Indicators and Gauges | $ | 245,669 | $ | 404,405 | |||||
Automotive Diagnostic Tools and Equipment | 916,549 | 645,837 | |||||||
$ | 1,162,218 | $ | 1,050,242 | ||||||
Income (Loss) before Provision for Income Taxes | |||||||||
Indicators and Gauges | $ | 2,493 | $ | 65,634 | |||||
Automotive Diagnostic Tools and Equipment | (31,388 | ) | (87,070 | ) | |||||
General Corporate Expenses | (241,761 | ) | (298,851 | ) | |||||
$ | (270,656 | ) | $ | (320,287 | ) | ||||
Asset Information | |||||||||
Indicators and Gauges | $ | 704,441 | $ | 922,325 | |||||
Automotive Diagnostic Tools and Equipment | 1,462,089 | 1,235,229 | |||||||
Corporate | 1,179,835 | 1,024,259 | |||||||
$ | 3,346,365 | $ | 3,181,813 | ||||||
Geographical Information | |||||||||
Included in the consolidated financial statements are the following amounts related to geographical locations: | |||||||||
Revenue: | |||||||||
United States | $ | 1,127,459 | $ | 1,004,148 | |||||
Australia | 8,125 | 24,138 | |||||||
Canada | 19,658 | 11,492 | |||||||
Mexico | 6,976 | 10,464 | |||||||
Other foreign countries | - | - | |||||||
$ | 1,162,218 | $ | 1,050,242 |
Note_2_Inventories_Details_Tex
Note 2 - Inventories (Details Textual) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | |||
Inventory Valuation Reserves | $365,564 | $363,500 | $810,376 |
Note_2_Inventory_Details
Note 2 - Inventory (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Components | $1,049,254 | $1,066,672 | $864,844 |
Work-in-Process | 501,125 | 521,424 | 612,598 |
Finished Product | 134,147 | 126,101 | 170,485 |
$1,684,526 | $1,714,197 | $1,647,927 |
Note_4_Convertible_Notes_Payab1
Note 4 - Convertible Notes Payable (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |||||
Aug. 20, 2012 | Dec. 30, 2011 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 30, 2012 | Dec. 31, 2013 | Dec. 30, 2013 | |
Debt Disclosure [Abstract] | |||||||
Convertible Notes Payable, Current | $200,000 | ||||||
Roundball LLC [Member] | Convertible Notes Payable [Member] | |||||||
Debt Disclosure [Abstract] | |||||||
Convertible Notes Payable, Current | 466,879 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.20% | ||||||
Roundball LLC [Member] | Convertible Notes Payable [Member] | Director [Member] | |||||||
Debt Disclosure [Abstract] | |||||||
Working Capital Funding | 467,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.24% | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | ||||||
Roundball LLC [Member] | Convertible Notes Payable [Member] | Common Class A [Member] | |||||||
Debt Disclosure [Abstract] | |||||||
Debt Instrument, Convertible, Conversion Price | $1.85 | ||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 504,735 | ||||||
Conversion of Stock, Amount Converted | 233,441 | 233,438 | |||||
Additional Borrowing [Member] | Roundball LLC [Member] | Convertible Notes Payable [Member] | |||||||
Debt Disclosure [Abstract] | |||||||
Proceeds from Issuance of Debt | 466,880 | ||||||
Amendment No. 1 [Member] | Roundball LLC [Member] | Common Class A [Member] | |||||||
Debt Disclosure [Abstract] | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 100,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 2.5 | ||||||
Amendment No 2 [Member] | Roundball LLC [Member] | |||||||
Debt Disclosure [Abstract] | |||||||
Convertible Notes Payable, Current | 200,000 | ||||||
Proceeds from Convertible Debt | 200,000 | ||||||
Amendment No 2 [Member] | Roundball LLC [Member] | Director [Member] | |||||||
Debt Disclosure [Abstract] | |||||||
Working Capital Funding | 467,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.25% | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | ||||||
Amendment No. 3 [Member] | Roundball LLC [Member] | Director [Member] | |||||||
Debt Disclosure [Abstract] | |||||||
Working Capital Funding | 467,000 | ||||||
Convertible Notes Payable, Current | 200,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.34% | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $250,000 |
Note_5_Shortterm_Financing_Det
Note 5 - Short-term Financing (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Robert L Bauman [Member] | |
Warrant Period | 3 years |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $2.50 |
Robert L Bauman [Member] | Common Class A [Member] | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 100,000 |
Revolving Credit Facility [Member] | Robert L Bauman [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $250,000 |
Line of Credit Facility, Interest Rate During Period | 0.24% |
Note_6_Capital_Stock_Treasury_2
Note 6 - Capital Stock, Treasury Stock, Contributed Capital and Stock Options (Details Textual) (USD $) | 3 Months Ended | 22 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Feb. 27, 2013 | |
Common Class A [Member] | |||||
Stockholders' Equity Note [Abstract] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 949,233 | 949,233 | |||
Directors Plans [Member] | |||||
Stockholders' Equity Note [Abstract] | |||||
Allocated Share-based Compensation Expense | $543 | $1,208 | |||
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 Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 0.87% | 0.87% | |||
Directors Plans [Member] | Common Class A [Member] | |||||
Stockholders' Equity Note [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 22,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 22,000 | 31,000 | 22,000 | 22,000 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $11 | ||||
Employee Plans [Member] | |||||
Stockholders' Equity Note [Abstract] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $2.92 | ||||
Omnibus 2013 Equity Plan [Member] | Common Class A [Member] | |||||
Stockholders' Equity Note [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 150,000 |
Note_6_Summary_of_Expired_Dire
Note 6 - Summary of Expired Director Plans (Details) (USD $) | 3 Months Ended |
Dec. 31, 2014 | |
Outstanding Stock Options (in shares) | 22,000 |
Weighted AverageShare Price (in dollars per share) | $5.30 |
Number of Stock Options Exercisable (in shares) | 20,000 |
Weighted Average Share Price (in dollars per share) | $5.54 |
Exercise Price Range 1 [Member] | |
Range of Exercise Price, Lower Limit (in dollars per share) | $2.92 |
Range of Exercise Price, Upper Limit (in dollars per share) | $5.25 |
Outstanding Stock Options (in shares) | 13,000 |
Weighted AverageShare Price (in dollars per share) | $3.28 |
Weighted Average Remaining Life | 5 years 219 days |
Number of Stock Options Exercisable (in shares) | 11,000 |
Weighted Average Share Price (in dollars per share) | $3.35 |
Exercise Price Range 2 [Member] | |
Range of Exercise Price, Lower Limit (in dollars per share) | $6 |
Range of Exercise Price, Upper Limit (in dollars per share) | $7.25 |
Outstanding Stock Options (in shares) | 5,000 |
Weighted AverageShare Price (in dollars per share) | $6.18 |
Weighted Average Remaining Life | 3 years 109 days |
Number of Stock Options Exercisable (in shares) | 5,000 |
Weighted Average Share Price (in dollars per share) | $6.18 |
Exercise Price Range 3 [Member] | |
Range of Exercise Price, Lower Limit (in dollars per share) | $10.50 |
Range of Exercise Price, Upper Limit (in dollars per share) | $11 |
Outstanding Stock Options (in shares) | 4,000 |
Weighted AverageShare Price (in dollars per share) | $10.75 |
Weighted Average Remaining Life | 2 years 292 days |
Number of Stock Options Exercisable (in shares) | 4,000 |
Weighted Average Share Price (in dollars per share) | $10.75 |
Note_8_Earnings_Per_Common_Sha2
Note 8 - Earnings Per Common Share (Details Textual) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Option [Member] | ||
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 22,000 | 31,000 |
Warrant [Member] | ||
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200,000 | 200,000 |
Conversion Rights [Member] | ||
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 252,367 | 252,367 |
Share Price | 1.85 | 1.85 |
Options and Warrants [Member] | Maximum [Member] | ||
Earnings Per Share [Abstract] | ||
Share Price | 11 | 11 |
Options and Warrants [Member] | Minimum [Member] | ||
Earnings Per Share [Abstract] | ||
Share Price | 2.5 | 2.5 |
Note_8_Summary_of_Earnings_Per
Note 8 - Summary of Earnings Per Share Calculation (Details) (USD $) | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Earnings per Common Share: | ||||
Income (Loss) available to common stockholders | ($270,656) | ($320,287) | ||
Shares denominator (in shares) | 1,638,215 | 1,638,215 | ||
Per share amount (in dollars per share) | ($0.17) | ($0.20) | ||
Effect of Dilutive Securities | ||||
Average shares outstanding (in shares) | 1,638,215 | 1,638,215 | ||
Stock options (in shares) | [1] | [1] | ||
Average shares outstanding, diluted (in shares) | 1,638,215 | 1,638,215 | ||
Earnings per Common Share Assuming Dilution: | ||||
Income (Loss) available to common stockholders | ($270,656) | ($320,287) | ||
Per share amount (in dollars per share) | ($0.17) | ($0.20) | ||
[1] | Net effect of stock options, warrants, and Convertible Note were antidilutive for the period. |
Note_9_Segment_and_Related_Inf2
Note 9 - Segment and Related Information (Details Textual) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | ||
Number of Operating Segments | 4 | |
Number of Reportable Segments | 2 |
Note_9_Information_by_Industry
Note 9 - Information by Industry Segment (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue | $1,162,218 | $1,050,242 |
Income (loss) before provistion for income taxes | -270,656 | -320,287 |
Asset information | 3,346,365 | 3,181,813 |
Australia [Member] | ||
Revenue | 8,125 | 24,138 |
Canada [Member] | ||
Revenue | 19,658 | 11,492 |
Mexico [Member] | ||
Revenue | 6,976 | 10,464 |
United States [Member] | ||
Revenue | 1,127,459 | 1,004,148 |
Corporate Segment [Member] | ||
Asset information | 1,179,835 | 1,024,259 |
Automotive Diagnostic Tools and Equipment [Member] | ||
Revenue | 916,549 | 645,837 |
Income (loss) before provistion for income taxes | -31,388 | -87,070 |
Asset information | 1,462,089 | 1,235,229 |
Indicators and Gauges [Member] | ||
Revenue | 245,669 | 404,405 |
Income (loss) before provistion for income taxes | 2,493 | 65,634 |
Asset information | 704,441 | 922,325 |
Corporate, Non-Segment [Member] | ||
Income (loss) before provistion for income taxes | ($241,761) | ($298,851) |
Note_12_Business_Condition_and1
Note 12 - Business Condition and Management Plan (Details Textual) (USD $) | Dec. 31, 2014 |
Operating Loss Carryforward, Net of Allowance | $0 |
Convertible Notes Payable, Current | 200,000 |
Amendment No. 3 [Member] | Roundball LLC [Member] | Director [Member] | |
Working Capital Funding | 467,000 |
Line of Credit Facility, Current Borrowing Capacity | 250,000 |
Convertible Notes Payable, Current | $200,000 |