Crawford United (CRAWA) 10-Q 14 Feb 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Jan. 31, 2017
Document Information [Line Items]
Entity Registrant Name	HICKOK INC
Entity Central Index Key	47,307
Trading Symbol	hicka
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		773,616
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		2,105,599

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) - USD ($)	Dec. 31, 2016	Sep. 30, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 3,607,452	$ 3,060,734
Accounts receivable-less allowance for doubtful accounts of $10,000	1,059,757	1,354,199
Inventories-less allowance for obsolete inventory of $257,146 and $235,592	3,219,793	3,308,799
Prepaid expenses	167,771	43,085
Total Current Assets	8,054,773	7,766,817
PROPERTY, PLANT AND EQUIPMENT:
Land	233,479	233,479
Buildings	1,477,312	1,448,978
Machinery and equipment	3,519,253	3,392,734
	5,230,044	5,075,191
Less accumulated depreciation	3,813,214	3,771,268
	1,416,830	1,303,923
Goodwill	1,777,656	1,777,656
Deferred income taxes-less valuation allowance of $500,000	3,330,600	3,330,600
Other assets	4,850	4,850
	6,334,924	6,364,015
Total Assets	15,806,527	15,434,755
CURRENT LIABILITIES:
Convertible notes payable - related party	200,000
Short-term financing - related party		250,000
Notes payable, related parties, current	399,393	379,761
Leases payable	56,450	59,369
Accounts payable	629,669	733,388
Accrued payroll and related expenses	167,726	301,054
Accrued expenses	596,738	593,378
Accrued income taxes	8,000	31,000
Deferred revenue	578,000
Total Current Liabilities	2,635,976	2,347,950
LONG-TERM LIABILITIES:
Notes payable - related party	4,287,558	4,388,901
Leases payable	133,292	144,997
Convertible notes payable - related party		200,000
Deferred revenue	722,000
Total Long-term Liabilities	5,142,850	4,733,898
STOCKHOLDERS' EQUITY:
Preferred 1,000,000 shares authorized, no shares outstanding
Contributed capital	1,741,901	1,741,901
Treasury shares - Class A - 15,795 shares, Class B - 5,667 and 667 shares	(264,841)	(253,341)
Retained earnings	3,731,718	4,045,424
Total Stockholders' Equity	8,027,701	8,352,907
Total Liabilities and Stockholders' Equity	15,806,527	15,434,755
Common Class A [Member]
STOCKHOLDERS' EQUITY:
Common stock	2,108,651	2,108,651
Common stock	2,108,651	2,108,651
Common Class B [Member]
STOCKHOLDERS' EQUITY:
Common stock	710,272	710,272
Common stock	710,272	710,272
Customer Lists [Member]
PROPERTY, PLANT AND EQUIPMENT:
Customer list-less accumulated amortization of $58,182 and $29,091	$ 1,221,818	$ 1,250,909

Consolidated Balance Sheet (Un3

Consolidated Balance Sheet (Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands	Dec. 31, 2016	Sep. 30, 2016
Allowance for doubtful accounts	$ 10,000	$ 10,000
Allowance for obsolete inventory	257,146	235,592
Deferred income taxes - valuation allowance	$ 500,000	$ 500,000
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common Class A [Member]
Class of common stock, par value (in dollars per share)	$ 0	$ 0
Class of common stock, shares authorized (in shares)	10,000,000	10,000,000
Class of common stock, shares issued (in shares)	2,090,394	2,090,394
Treasury shares (in 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 (in shares)	2,500,000	2,500,000
Class of common stock, shares issued (in shares)	779,283	779,283
Treasury shares (in shares)	5,667	667
Customer Lists [Member]
Accumulated amortization	$ 58,182	$ 29,091

Consolidated Statement of Incom

Consolidated Statement of Income (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
TOTAL SALES	$ 2,356,926	$ 1,376,872
COSTS AND EXPENSES:
Cost of product sold	1,773,688	740,521
Product development	239,010	246,773
Marketing and administrative expenses	651,574	438,225
Interest charges	50,769	174
Legal matter	(50,000)
Other income	(2,409)	(1,632)
Total Costs and Expenses	2,662,632	1,424,061
Income (Loss) before Provision for (Recovery of) Income Taxes	(305,706)	(47,189)
Provision for Income Taxes	8,000
Net Income (Loss)	$ (313,706)	$ (47,189)
Net Income (Loss) Per Common Share - Basic (in dollars per share)	$ (0.11)	$ (0.03)
Net income (loss) per common share - Diluted (in dollars per share)	$ (0.11)	$ (0.03)
Weighted average shares of common stock outstanding - Basic (in shares)	2,853,107	1,638,215
Weighted average shares of common stock outstanding - Diluted (in shares)	2,853,107	1,638,215

Consolidated Statement of Cash

Consolidated Statement of Cash Flow (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers	$ 4,001,368	$ 2,036,706
Cash paid to suppliers and employees	(2,844,212)	(1,628,380)
Interest paid	(67,045)
Interest received	295	251
Income taxes paid	(31,000)
Net Cash Provided by Operating Activities	1,059,406	408,577
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(154,853)	(2,184)
Decrease in deposits
Net Cash (Used in) Investing Activities	(154,853)	(2,184)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on notes payable – related party	(81,711)
Payments on short-term financing – related party	(250,000)
Payments on lease payable borrowings	(14,624)
Net Cash (Used in) Financing Activities	(357,835)
Increase in Cash and Cash Equivalents	546,718	406,393
Cash and Cash Equivalents at Beginning of Period	3,060,734	346,405
Cash and Cash Equivalents at End of Period	3,607,452	752,798
RECONCILIATION OF NET (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Net Income (Loss)	(313,706)	(47,189)
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Depreciation and amortization	71,037	31,500
CHANGES IN ASSETS AND LIABILITIES:
Decrease in accounts receivable	294,442	659,834
Decrease in inventories	89,006	5,671
Decrease (Increase) in prepaid expenses	(124,686)	11,456
(Decrease) in accounts payable	(103,719)	(105,550)
(Decrease) in accrued payroll	(133,328)	(29,350)
Increase (Decrease) in accrued expenses	3,360	(117,795)
(Decrease) in accrued income taxes	(23,000)
Increase in deferred revenue	1,300,000
Total Adjustments	1,373,112	455,766
Net Cash Provided by Operating Activities	1,059,406	408,577
Common Class B [Member]
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of Class B shares	$ (11,500)

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Basis of Accounting [Text Block]	1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with general accepted accounting principles for interim financial information and with the instructions to Form 10 8 three December 31, 2016 may September 30, 2017. 10 September 30, 2016.

Note 2 - Accounts Receivable

Note 2 - Accounts Receivable	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	2. 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.

Note 3 - Inventory

Note 3 - Inventory	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. (first first December 31, 2016 September 30, 2016 Raw materials and component parts $ 1,719,027 $ 1,730,563 Work-in-process 446,961 438,447 Finished products 1,053,805 1,139,789 $ 3,219,793 $ 3,308,799 The reserve for inventory obsolescence was $257,146 and $235,592 December 31, 2016 September 30, 2016,

Note 4 - Goodwill and Other Int

Note 4 - Goodwill and Other Intangible Assets, Net	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	4. NGIBLE ASSETS, NET Intangible assets relate to the purchase of a business on July 1, 2016. 11 years. Amortization of other intangibles was $29,091 $0 three December 31, 2016 2015,

Note 5 - Notes Payable

Note 5 - Notes Payable	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	5. Convertible Notes Payable On December 30, 2011, $467,000 $250,000 0.25%. There have been several amendments to the original agreement over the years for the purpose of extending the existing terms of the Convertible Loan. On December 20, 2016, 5 ● Continues to provide approximately $467,000 ● Continues to allow $250,000 0.34%; ● Extends the due date of the loan agreement from December 30, 2016 December 30, 2017. The outstanding balance on the Convertible Loan as of December 31, 2016, September 30, 2016 $ 200,000 As part of the Convertible Loan Agreement between the Company and Roundball, the parties entered into a Warrant Agreement, dated December 30, 2012, 100,000 $2.50 December 30, 2017. Short-Term Financing On June 3, 2016, July 1, 2016 $250,000 4.0% eighty $250,000. May 31, 2017. The Company had $250,000 September 30, 2016. December 31, 2016, $0. Notes Payable – Related Party Notes payable - related parties is a result of the acquisition of a business on July 1, 2016 Current December 31, 2016 Total December 31 , 2016 Total September 30 , 2016 In connection with the acquisition, the Company entered into a promissory note on July 1, 2016 for $2,000,000 loan due to First Francis Company, payable in quarterly installments of $60,911 beginning on October 31, 2016, bearing interest at 4%. The remaining balance of the note shall be payable in full on July 1, 2022. Collateralized by all of the assets of the Company. $ 167,507 $ 1,965,730 $ 2,000,000 In connection with the acquisition, the Company entered into a promissory note on July 1, 2016 for $2,768,662 loan due to First Francis Company, payable in quarterly installments of $84,321 beginning on October 31, 2016, bearing interest at 4%. The remaining balance of the note shall be payable in full on July 1, 2022. Collateralized by all of the assets of the Company. 231,886 2,721,221 2,768,662 $ 399,393 4,686,951 4,768,662 Less current portion 399,393 379,761 $ 4,287,558 $ 4,388,901

Note 6 - Earnings Per Common Sh

Note 6 - Earnings Per Common Share	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	6. EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per share. Three Months Ended December 31, 2016 2015 Basic Income (Loss) Per Share Income (Loss) available to common stockholders $ (313,706 ) $ (47,189 ) Shares denominator 2,853,107 1,638,215 Per share amount $ (0.11 ) $ (0.03 ) Effect of Dilutive Securities Average shares outstanding 2,853,107 1,638,215 Warrants and options - - 2,853,107 1,638,215 Diluted Income (Loss) Per Share Income (Loss) available to common stockholders $ (313,706 ) $ (47,189 ) Per share amount $ (0.11 ) $ (0.03 )

Note 7 - Segment and Related In

Note 7 - Segment and Related Information	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	7. SEGMENT AND RELATED INFORMATION The Company operates two 1) 2) Test and Measurement : Industrial Hose: Information by industry segment is set forth below: Three Months Ended December 31: 2016 2015 Sales Test and Measurement $ 827,066 $ 1,376,872 Industrial Hose 1,529,860 - $ 2,356,926 $ 1,376,872 Income (Loss) Before Provision for Income Taxes Test and Measurement (45,409 ) 389,578 Industrial Hose 389,637 - Unallocated Expenses (649,934 ) (436,767 ) $ (305,706 ) $ (47,189 ) Geographical Information 95%)

Note 8 - Commitments and Contin

Note 8 - Commitments and Contingencies	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	8. COMMITMENTS AND CONTINGENCIES Legal Matters:

Note 9 - Recently Issued Accoun

Note 9 - Recently Issued Accounting Standards	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	9 . RECENTLY ISSUED 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.

Note 10 - Subsequent Events

Note 10 - Subsequent Events	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	10. SUBSEQUENT EVENTS January 6, 2017, 31,000 2013

Note 3 - Inventory (Tables)

Note 3 - Inventory (Tables)	3 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	December 31, 2016 September 30, 2016 Raw materials and component parts $ 1,719,027 $ 1,730,563 Work-in-process 446,961 438,447 Finished products 1,053,805 1,139,789 $ 3,219,793 $ 3,308,799

Note 5 - Notes Payable (Tables)

Note 5 - Notes Payable (Tables)	3 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Related Party Transactions [Table Text Block]	Current December 31, 2016 Total December 31 , 2016 Total September 30 , 2016 In connection with the acquisition, the Company entered into a promissory note on July 1, 2016 for $2,000,000 loan due to First Francis Company, payable in quarterly installments of $60,911 beginning on October 31, 2016, bearing interest at 4%. The remaining balance of the note shall be payable in full on July 1, 2022. Collateralized by all of the assets of the Company. $ 167,507 $ 1,965,730 $ 2,000,000 In connection with the acquisition, the Company entered into a promissory note on July 1, 2016 for $2,768,662 loan due to First Francis Company, payable in quarterly installments of $84,321 beginning on October 31, 2016, bearing interest at 4%. The remaining balance of the note shall be payable in full on July 1, 2022. Collateralized by all of the assets of the Company. 231,886 2,721,221 2,768,662 $ 399,393 4,686,951 4,768,662 Less current portion 399,393 379,761 $ 4,287,558 $ 4,388,901

Note 6 - Earnings Per Common 18

Note 6 - Earnings Per Common Share (Tables)	3 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended December 31, 2016 2015 Basic Income (Loss) Per Share Income (Loss) available to common stockholders $ (313,706 ) $ (47,189 ) Shares denominator 2,853,107 1,638,215 Per share amount $ (0.11 ) $ (0.03 ) Effect of Dilutive Securities Average shares outstanding 2,853,107 1,638,215 Warrants and options - - 2,853,107 1,638,215 Diluted Income (Loss) Per Share Income (Loss) available to common stockholders $ (313,706 ) $ (47,189 ) Per share amount $ (0.11 ) $ (0.03 )

Note 7 - Segment and Related 19

Note 7 - Segment and Related Information (Tables)	3 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended December 31: 2016 2015 Sales Test and Measurement $ 827,066 $ 1,376,872 Industrial Hose 1,529,860 - $ 2,356,926 $ 1,376,872 Income (Loss) Before Provision for Income Taxes Test and Measurement (45,409 ) 389,578 Industrial Hose 389,637 - Unallocated Expenses (649,934 ) (436,767 ) $ (305,706 ) $ (47,189 )

Note 3 - Inventory (Details Tex

Note 3 - Inventory (Details Textual) - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Inventory Valuation Reserves	$ 257,146	$ 235,592

Note 3 - Inventory - Inventory

Note 3 - Inventory - Inventory (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Raw materials and component parts	$ 1,719,027	$ 1,730,563
Work-in-process	446,961	438,447
Finished products	1,053,805	1,139,789
	$ 3,219,793	$ 3,308,799

Note 4 - Goodwill and Other I22

Note 4 - Goodwill and Other Intangible Assets, Net (Details Textual) - Customer Lists [Member] - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Asset, Useful Life	11 years
Amortization of Intangible Assets	$ 29,091	$ 0

Note 5 - Notes Payable (Details

Note 5 - Notes Payable (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 20, 2016	Sep. 30, 2016	Jun. 03, 2016	Dec. 30, 2012	Dec. 30, 2011
Line of Credit Facility, Fair Value of Amount Outstanding	$ 200,000		$ 200,000
Roundball LLC [Member] | Amendment No. 5 [Member]
Working Capital Funding		$ 467,000
Line of Credit Facility, Maximum Borrowing Capacity		$ 250,000
Debt Instrument, Interest Rate, Stated Percentage		0.34%
Roundball LLC [Member] | Amendment No. 1 [Member] | Warrant to Purchase Class A Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights					100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 2.50
First Francis [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity				$ 250,000
Long-term Line of Credit	$ 0
Director [Member] | Roundball LLC [Member] | Convertible Notes Payable [Member]
Working Capital Funding						$ 467,000
Line of Credit Facility, Maximum Borrowing Capacity						$ 250,000
Debt Instrument, Interest Rate, Stated Percentage						0.25%

Note 5 - Notes Payable - Notes

Note 5 - Notes Payable - Notes Due to Related Parties (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Notes payable, related parties, current	$ 399,393	$ 379,761
Notes payable, related parties, non-current	4,287,558	4,388,901
First Francis [Member]
Notes payable, related parties, current	399,393	379,761
Notes payable, related parties, current and non-current	4,686,951	4,768,662
Notes payable, related parties, non-current	4,287,558	4,388,901
First Francis [Member] | Promissory Note 1 [Member]
Notes payable, related parties, current	167,507
Notes payable, related parties, current and non-current	1,965,730	2,000,000
First Francis [Member] | Promissory Note 2 [Member]
Notes payable, related parties, current	231,886
Notes payable, related parties, current and non-current	$ 2,721,221	$ 2,768,662

Note 5 - Notes Payable - Note25

Note 5 - Notes Payable - Notes Due to Related Parties (Details) (Parentheticals) - First Francis [Member]	3 Months Ended
	Dec. 31, 2016USD ($)
Promissory Note 1 [Member]
Notes payable, face value	$ 2,000,000
Notes payable, quarterly payment	$ 60,911
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Promissory Note 2 [Member]
Notes payable, face value	$ 2,768,662
Notes payable, quarterly payment	$ 84,321
Debt Instrument, Interest Rate, Stated Percentage	4.00%

Note 6 - Earnings Per Common 26

Note 6 - Earnings Per Common Share - Summary of Earnings Per Share Calculation (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Basic Income (Loss) Per Share
Income (Loss) available to common stockholders	$ (313,706)	$ (47,189)
Shares denominator (in shares)	2,853,107	1,638,215
Per share amount (in dollars per share)	$ (0.11)	$ (0.03)
Effect of Dilutive Securities
Average shares outstanding (in shares)	2,853,107	1,638,215
Warrants and options (in shares)
(in shares)	2,853,107	1,638,215
Diluted Income (Loss) Per Share
Income (Loss) available to common stockholders	$ (313,706)	$ (47,189)
Per share amount (in dollars per share)	$ (0.11)	$ (0.03)

Note 7 - Segment and Related 27

Note 7 - Segment and Related Information (Details Textual)	3 Months Ended
	Dec. 31, 2016
Number of Reportable Segments	2
UNITED STATES | Geographic Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage	95.00%

Note 7 - Segment and Related 28

Note 7 - Segment and Related Information - Information by Industry Segment (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenue	$ 2,356,926	$ 1,376,872
Income (Loss) Before Provision for Income Taxes
Income (Loss) before provision for Income Taxes	(305,706)	(47,189)
Operating Segments [Member] | Test and Measurement [Member]
Revenue	827,066	1,376,872
Income (Loss) Before Provision for Income Taxes
Income (Loss) before provision for Income Taxes	(45,409)	389,578
Operating Segments [Member] | Industrial Hose [Member]
Revenue	1,529,860
Income (Loss) Before Provision for Income Taxes
Income (Loss) before provision for Income Taxes	389,637
Corporate, Non-Segment [Member]
Income (Loss) Before Provision for Income Taxes
Income (Loss) before provision for Income Taxes	$ (649,934)	$ (436,767)

Note 10 - Subsequent Events (De

Note 10 - Subsequent Events (Details Textual)	Jan. 06, 2017shares
Omnibus 2013 Equity Plan [Member] | Common Class A [Member] | Subsequent Event [Member] | Directors and Certain Members of Management [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	31,000