Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2017 | Jul. 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 | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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) | 2,114,886 |
Consolidated Balance Sheet (Cur
Consolidated Balance Sheet (Current Period Unaudited) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | $ 1,030,560 | $ 3,060,734 |
Accounts receivable-less allowance for doubtful accounts | 8,702,023 | 1,354,199 |
Costs in Excess of Billings and estimated costs | 3,106,868 | |
Inventories-less allowance for obsolete inventory | 3,896,865 | 3,308,799 |
Prepaid Expenses and other current assets | 715,740 | 43,085 |
Total Current Assets | 17,452,056 | 7,766,817 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land | 233,479 | 233,479 |
Buildings and Leasehold Improvements | 2,028,914 | 1,448,978 |
Machinery and Equipment | 5,236,781 | 3,392,734 |
Total Property, Plant and Equipment | 7,499,174 | 5,075,191 |
Less accumulated depreciation | 3,974,633 | 3,771,268 |
Property, Plant and Equipment, Net | 3,524,541 | 1,303,923 |
OTHER ASSETS: | ||
Goodwill | 2,409,048 | 1,777,656 |
Intangibles, net of accumulated amortization | 2,330,914 | 1,250,909 |
Deferred income taxes-less valuation allowance of $500,000 | 3,330,600 | 3,330,600 |
Other non-current assets | 3,250 | 4,850 |
Total Non-Current Other Assets | 8,073,812 | 6,364,015 |
Total Assets | 29,050,409 | 15,434,755 |
CURRENT LIABILITIES: | ||
Convertible notes payable - related party | 200,000 | |
Short-term financing - related party | 250,000 | |
Notes payable, related parties, current and non-current | 142,726 | 379,761 |
Bank Debt - Current | 500,000 | |
Leases payable | 42,896 | 59,369 |
Accounts payable | 3,324,482 | 733,388 |
Billings in Excess of Costs & Earnings | 647,276 | |
Accrued payroll and related expenses | 838,458 | 301,054 |
Accrued expenses | 1,362,390 | 593,378 |
Accrued income taxes | 77,744 | 31,000 |
Deferred revenue | 503,646 | |
Total Current Liabilities | 7,639,618 | 2,347,950 |
LONG-TERM LIABILITIES: | ||
Notes payable, related parties, non-current | 3,861,766 | 4,388,901 |
Bank Debt | 7,700,000 | |
Leases payable | 151,208 | 144,997 |
Convertible notes payable - related party | 200,000 | |
Deferred revenue | 377,735 | |
Total Long-Term Liabilities | 12,090,709 | 4,733,898 |
STOCKHOLDERS' EQUITY | ||
Preferred 1,000,000 shares authorized, no shares outstanding | ||
Contributed capital | 1,741,901 | 1,741,901 |
Treasury shares | (264,841) | (253,341) |
Retained earnings | 4,886,381 | 4,045,424 |
Total Stockholders' Equity | 9,320,082 | 8,352,907 |
Total Liabilities and Stockholders' Equity | 29,050,409 | 15,434,755 |
Common Class A [Member] | ||
STOCKHOLDERS' EQUITY | ||
Common stock | 2,246,369 | 2,108,651 |
Common Class B [Member] | ||
STOCKHOLDERS' EQUITY | ||
Common stock | $ 710,272 | $ 710,272 |
Consolidated Balance Sheet (Cu3
Consolidated Balance Sheet (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Deferred income taxes - valuation allowance | $ 500,000 | $ 500,000 |
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) | 2,130,681 | 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 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Total sales | $ 7,220,626 | $ 1,530,244 | $ 12,923,867 | $ 3,953,740 |
Costs and expenses: | ||||
Cost of Sales | 4,191,480 | 769,430 | 7,933,969 | 2,204,495 |
Product Development | 179,840 | 258,406 | 636,166 | 777,889 |
Selling, General and Administrative Expenses | 1,808,920 | 507,326 | 3,354,796 | 1,488,461 |
Interest Charges | 66,695 | 4,843 | 165,656 | 8,179 |
Legal matter | (50,000) | |||
Other income | (5,205) | (1,666) | (11,177) | (5,556) |
Total Costs and Expenses | 6,241,730 | 1,538,339 | 12,029,410 | 4,473,468 |
Income (Loss) before Provision for Income Taxes | 978,896 | (8,095) | 894,457 | (519,728) |
Provision for Income Taxes | 37,373 | 53,500 | ||
Net Income (Loss) | $ 941,523 | $ (8,095) | $ 840,957 | $ (519,728) |
Earnings (Loss) Per Common Share - Basic (in dollars per share) | $ 0.33 | $ 0 | $ 0.29 | $ (0.32) |
Earnings (Loss) Per Common Share - Diluted (in dollars per share) | $ 0.31 | $ 0 | $ 0.28 | $ (0.32) |
Weighted Average Shares of Common Stock Outstanding - Basic (in shares) | 2,880,719 | 1,638,215 | 2,870,349 | 1,638,215 |
Weighted Average Shares of Common Stock Outstanding - Diluted (in shares) | 3,044,440 | 1,638,215 | 2,962,430 | 1,638,215 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flow (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Cash received from customers | $ 15,510,323 | $ 4,261,359 |
Cash paid to suppliers and employees | (13,874,832) | (4,542,057) |
Interest paid | (176,219) | (7,329) |
Interest received | 4,049 | 632 |
Income taxes paid | (51,500) | |
Net Cash Provided by (Used in) Operating Activities | 1,411,821 | (287,395) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash used in purchase of business | (10,250,000) | |
Capital Expenditures | (314,530) | (26,435) |
Net Cash Used in Investing Activities | (10,564,530) | (26,435) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on Related Party Notes | (764,170) | |
Payments on related party short-term financing | (250,000) | |
Borrowing on short-term financing | 250,000 | |
Borrowing on bank debt | 8,500,000 | |
Payment on bank debt | (300,000) | |
Payments on capital lease | (51,795) | (26,524) |
Net Cash Provided by Financing Activities | 7,122,535 | 223,476 |
Decrease in Cash and Cash Equivalents | (2,030,174) | (90,354) |
Cash and Cash Equivalents at Beginning of Period | 3,060,734 | 346,405 |
Cash and Cash Equivalents at End of Period | 1,030,560 | 256,051 |
RECONCILIATION OF NET INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: | ||
Net Income (Loss) | 840,957 | (519,728) |
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: | ||
Depreciation and amortization | 353,693 | 94,500 |
Loss on disposal of assets | 2,667 | |
Non-cash share-based compensation expense | 129,832 | |
CHANGES IN ASSETS AND LIABILITIES: | ||
Decrease (Increase) in accounts receivable | (2,586,456) | 307,619 |
Decrease (Increase) in excess of billing | 873,956 | |
Decrease (Increase) in inventories | 6,437 | (22,161) |
Decrease (Increase) in prepaid expenses and other assets | (610,393) | 58,856 |
Increase (Decrease) in accounts payable | 864,476 | (107,043) |
Increase (Decrease) in billings in excess of costs and earnings | 52,732 | (35,063) |
Increase (Decrease) in accrued payroll and related expenses | 211,454 | (64,375) |
Increase (Decrease) in accrued expenses | 344,341 | |
Increase (Decrease) in accrued income taxes | 46,744 | |
Increase (Decrease) in deferred revenue | 881,381 | |
Total Adjustments | 570,864 | 232,333 |
Net Cash Provided by Operating Activities | 1,411,821 | (287,395) |
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 | 9 Months Ended |
Jun. 30, 2017 | |
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 8 X. not three nine June 30, 2017 not may September 30, 2017. 10 September 30, 2016. During the nine June 30, 2017, no 10 September 30, 2016. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company’s Summary of Significant Accounting Policies is provided with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10 September 30, 2016. June 1, 2017. Revenue Recognition: Revenue from contracts is recognized on the percentage-of-completion method measured by the percentage of costs incurred to date to total estimated costs for each contract. Contract costs include all direct costs and allocations of indirect costs. Provisions for estimated losses on uncompleted contracts are made in the period in which it is determined a loss will be incurred. As long-term contracts extend over one Because of the inherent uncertainties in estimating costs, it is at least reasonably possible the estimates of costs and revenue will change in the next year. Revenue earned on contracts in progress in excess of billings are classified as an asset. Amounts billed in excess of revenue earned are classified as a liability. The length of the contracts varies, but is typically three six Revenue relating to replacement parts is recognized upon the shipment of goods or rendering of services to customers. Deferred Commissions: Commissions are earned based on the percentage-of-completion of the contract. Commissions are paid upon receipt of payment for units shipped. Product Warranties: The Company provides a warranty for its customer air handling business covering parts for 12 18 may |
Note 3 - Accounts Receivable
Note 3 - Accounts Receivable | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3 . 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. The reserve for doubtful accounts was $117,750 $10,000 June 30, 2017 September 30, 2016. |
Note 4 - Inventory
Note 4 - Inventory | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4. first first June 30 , 2017 September 30, 2016 Raw materials and component parts $ 2,760,341 $ 1,730,563 Work-in-process 592,670 438,447 Finished products 543,854 1,139,789 Inventories, net of reserve $ 3,896,865 $ 3,308,799 The reserve for inventory obsolescence was $561,087 and $235,592 June 30, 2017 September 30, 2016, |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets, Net | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. NGIBLE ASSETS, NET Intangible assets relate to the purchase of businesses on June 1, 2017 July 1, 2016. not one 15 June 30, 2017 September 30, 2016 Customer List: Backlog $ 1,970,000 $ 1,280,000 Non-Compete Agreements 200,000 0 Trademarks 340,000 0 Other Intangibles 2,510,000 1,280,000 Accumulated Amortization (179,086 ) (29,091 ) Other Intangibles, Net $ 2,330,914 $ 1,250,909 Amortization of other intangibles was: Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Intangible Amortization $ 91,813 $ - $ 149,995 $ - |
Note 6 - Property, Plant and Eq
Note 6 - Property, Plant and Equipment, Net | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6. NET Property, plant and equipment are recorded at cost and depreciated over their useful lives. Maintenance and repair costs are expenses as incurred. Depreciation expense was: Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Depreciation Expense $ 86,293 $ 31,500 $ 203,698 $ 94,500 |
Note 7 - Bank Debt
Note 7 - Bank Debt | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 7. The Company entered into a Credit Agreement on June 1, 2017 $8,000,000, 80% 50% 50% $2,000,000, $41,667 July 1, 2017. The revolving facility includes a $3 0.00% 2.00% June 1, 2020. a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i) 0.25% 2.25% June 1, 2021. 0.25% In connection with entering into the Credit Agreement, the Company made a onetime prepayment of a portion of the outstanding principal under outstanding promissory notes held by First Francis Company Inc. (“First Francis”), in the amount of $500,000. not 2017. Bank debt balances consist of the following: Current June 30, 2017 Total June 30 , 2017 Total Term Debt $ 500,000 $ 2,000,000 $ - Revolving Debt - 6,200,000 - Total Bank Debt 8,200,000 - Less: Current Portion 500,000 Non-Current Bank Debt 7,700,000 |
Note 8 - Notes Payable
Note 8 - Notes Payable | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. 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, No. 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 June 30, 2017, 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 June 3, 2016, July 1, 2016 $250,000 4.0% eighty $250,000. May 31, 2017. $250,000 September 30, 2016. June 30, 2017, $0. Notes Payable – Related Party Notes payable - related parties is a result of the acquisition of a business on July 1, 2016 Current June 30, 2017 Total June 30 , 2017 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. $ 81,254 $ 1,639,206 $ 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. 61,472 2,365,286 2,768,662 $ 142,726 4,004,492 4,768,662 Less current portion 142,726 379,761 $ 3,861,766 $ 4,388,901 |
Note 9 - Earnings Per Common Sh
Note 9 - Earnings Per Common Share | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per share. Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Earnings (Loss) Per Share - Basic Net Income (Loss) $ 941,523 $ (8,095 ) $ 840,957 $ (519,728 ) Weighted average shares of common stock outstanding - Basic 2,880,719 1,638,215 2,870,349 1,638,215 Earnings (Loss) Per Share - Basic $ 0.33 $ (0.00 ) $ 0.29 $ (0.32 ) Earnings (Loss) Per Share - Diluted Weighted average shares of common stock outstanding - Basic 2,880,719 1,638,215 2,870,349 1,638,215 Warrants, Options and Convertible Notes 163,721 - 92,081 - Weighted average shares of common stock - Diluted 3,044,440 1,638,215 2,962,430 1,638,215 Earnings (Loss) Per Share - Diluted $ 0.31 $ (0.00 ) $ 0.28 $ (0.32 ) |
Note 10 - Acquisitions
Note 10 - Acquisitions | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 10 . ACQUISITIONS The Company purchased certain assets and assumed certain liabilities of Air Enterprises Acquisition, LLC on June 1, 2017 $10,250,000. one Accounts Receivable $ 4,761,368 Inventory 594,503 Costs in excess of billings and estimated costs 3,980,824 Fixed Assets 2,112,120 Prepaid and Other Assets 53,110 Intangibles Assets 1,230,000 Goodwill 631,392 Total Assets Acquired $ 13,363,317 Accounts Payable $ 1,726,618 Billings in Excess of costs and earnings 594,545 Accrued Payroll and related expenses 325,950 Accrued Expense 424,671 Lease Payable 41,533 Total Liabilities Assumed $ 3,113,317 Net Assets Acquired $ 10,250,000 $0.3 three nine June 30, 2017. |
Note 11 - Segment and Related I
Note 11 - Segment and Related Information | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 11. SEGMENT AND RELATED INFORMATION The Company operates three 1 2 3 Commercial Air Handling : Test and Measurement : Industrial Hose: Information by industry segment is set forth below: Three Months Ended Nine Months Ended June 30 June 30 2017 2016 2017 2016 Sales Commercial Air Handling $ 3,343,945 $ - $ 3,343,945 $ - Test and Measurement 2,452,854 1,530,244 5,049,991 3,953,740 Industrial Hose 1,423,827 - 4,529,931 - Total Sales $ 7,220,626 $ 1,530,244 $ 12,923,867 $ 3,953,740 Income (Loss) Before Provision for Income Taxes Commercial Air Handling 607,471 - 607,471 - Test and Measurement (1) 880,600 (8,095 ) (19,446 ) (519,728 ) Industrial Hose (509,175 ) - 306,433 - Income (Loss) Before Provision for Income Taxes $ 978,896 $ (8,095 ) $ 894,458 $ (519,728 ) ( 1 Certain Expenses such as corporate general and administrative expenses, acquisition related expense and interest expense are included in the Test and Measurement division. |
Note 12 - Recently Issued Accou
Note 12 - Recently Issued Accounting Standards | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 12 . RECENTLY ISSUED ACCOUNTING STANDARDS not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition: Revenue from contracts is recognized on the percentage-of-completion method measured by the percentage of costs incurred to date to total estimated costs for each contract. Contract costs include all direct costs and allocations of indirect costs. Provisions for estimated losses on uncompleted contracts are made in the period in which it is determined a loss will be incurred. As long-term contracts extend over one Because of the inherent uncertainties in estimating costs, it is at least reasonably possible the estimates of costs and revenue will change in the next year. Revenue earned on contracts in progress in excess of billings are classified as an asset. Amounts billed in excess of revenue earned are classified as a liability. The length of the contracts varies, but is typically three six Revenue relating to replacement parts is recognized upon the shipment of goods or rendering of services to customers. |
Commissions, Policy [Policy Text Block] | Deferred Earned Commissions: Commissions are earned based on the percentage-of-completion of the contract. Commissions are paid upon receipt of payment for units shipped. |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties: The Company provides a warranty for its customer air handling business covering parts for 12 18 may |
Note 4 - Inventory (Tables)
Note 4 - Inventory (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30 , 2017 September 30, 2016 Raw materials and component parts $ 2,760,341 $ 1,730,563 Work-in-process 592,670 438,447 Finished products 543,854 1,139,789 Inventories, net of reserve $ 3,896,865 $ 3,308,799 |
Note 5 - Goodwill and Other I20
Note 5 - Goodwill and Other Intangible Assets, Net (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30, 2017 September 30, 2016 Customer List: Backlog $ 1,970,000 $ 1,280,000 Non-Compete Agreements 200,000 0 Trademarks 340,000 0 Other Intangibles 2,510,000 1,280,000 Accumulated Amortization (179,086 ) (29,091 ) Other Intangibles, Net $ 2,330,914 $ 1,250,909 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Intangible Amortization $ 91,813 $ - $ 149,995 $ - |
Note 6 - Property, Plant and 21
Note 6 - Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Depreciation Expense $ 86,293 $ 31,500 $ 203,698 $ 94,500 |
Note 7 - Bank Debt (Tables)
Note 7 - Bank Debt (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | Current June 30, 2017 Total June 30 , 2017 Total Term Debt $ 500,000 $ 2,000,000 $ - Revolving Debt - 6,200,000 - Total Bank Debt 8,200,000 - Less: Current Portion 500,000 Non-Current Bank Debt 7,700,000 |
Note 8 - Notes Payable (Tables)
Note 8 - Notes Payable (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | Current June 30, 2017 Total June 30 , 2017 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. $ 81,254 $ 1,639,206 $ 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. 61,472 2,365,286 2,768,662 $ 142,726 4,004,492 4,768,662 Less current portion 142,726 379,761 $ 3,861,766 $ 4,388,901 |
Note 9 - Earnings Per Common 24
Note 9 - Earnings Per Common Share (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Earnings (Loss) Per Share - Basic Net Income (Loss) $ 941,523 $ (8,095 ) $ 840,957 $ (519,728 ) Weighted average shares of common stock outstanding - Basic 2,880,719 1,638,215 2,870,349 1,638,215 Earnings (Loss) Per Share - Basic $ 0.33 $ (0.00 ) $ 0.29 $ (0.32 ) Earnings (Loss) Per Share - Diluted Weighted average shares of common stock outstanding - Basic 2,880,719 1,638,215 2,870,349 1,638,215 Warrants, Options and Convertible Notes 163,721 - 92,081 - Weighted average shares of common stock - Diluted 3,044,440 1,638,215 2,962,430 1,638,215 Earnings (Loss) Per Share - Diluted $ 0.31 $ (0.00 ) $ 0.28 $ (0.32 ) |
Note 10 - Acquisitions (Tables)
Note 10 - Acquisitions (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Accounts Receivable $ 4,761,368 Inventory 594,503 Costs in excess of billings and estimated costs 3,980,824 Fixed Assets 2,112,120 Prepaid and Other Assets 53,110 Intangibles Assets 1,230,000 Goodwill 631,392 Total Assets Acquired $ 13,363,317 Accounts Payable $ 1,726,618 Billings in Excess of costs and earnings 594,545 Accrued Payroll and related expenses 325,950 Accrued Expense 424,671 Lease Payable 41,533 Total Liabilities Assumed $ 3,113,317 Net Assets Acquired $ 10,250,000 |
Note 11 - Segment and Related26
Note 11 - Segment and Related Information (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended June 30 June 30 2017 2016 2017 2016 Sales Commercial Air Handling $ 3,343,945 $ - $ 3,343,945 $ - Test and Measurement 2,452,854 1,530,244 5,049,991 3,953,740 Industrial Hose 1,423,827 - 4,529,931 - Total Sales $ 7,220,626 $ 1,530,244 $ 12,923,867 $ 3,953,740 Income (Loss) Before Provision for Income Taxes Commercial Air Handling 607,471 - 607,471 - Test and Measurement (1) 880,600 (8,095 ) (19,446 ) (519,728 ) Industrial Hose (509,175 ) - 306,433 - Income (Loss) Before Provision for Income Taxes $ 978,896 $ (8,095 ) $ 894,458 $ (519,728 ) |
Note 3 - Accounts Receivable (D
Note 3 - Accounts Receivable (Details Textual) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Allowance for Doubtful Accounts Receivable | $ 117,750 | $ 10,000 |
Note 4 - Inventory (Details Tex
Note 4 - Inventory (Details Textual) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Inventory Valuation Reserves | $ 561,087 | $ 235,592 |
Note 4 - Inventory - Inventory
Note 4 - Inventory - Inventory (Details) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Raw materials and component parts | $ 2,760,341 | $ 1,730,563 |
Work-in-process | 592,670 | 438,447 |
Finished products | 543,854 | 1,139,789 |
Inventories, net of reserve | $ 3,896,865 | $ 3,308,799 |
Note 5 - Goodwill and Other I30
Note 5 - Goodwill and Other Intangible Assets, Net (Details Textual) | 9 Months Ended |
Jun. 30, 2017 | |
Minimum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Maximum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Note 5 - Goodwill and Other I31
Note 5 - Goodwill and Other Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Other Intangibles | $ 2,510,000 | $ 1,280,000 |
Accumulated Amortization | (179,086) | (29,091) |
Other Intangibles, Net | 2,330,914 | 1,250,909 |
Customer Lists [Member] | ||
Customer List: Backlog | 1,970,000 | 1,280,000 |
Noncompete Agreements [Member] | ||
Customer List: Backlog | 200,000 | 0 |
Trademarks [Member] | ||
Customer List: Backlog | $ 340,000 | $ 0 |
Note 5 - Goodwill and Other I32
Note 5 - Goodwill and Other Intangible Assets, Net - Amortization of Other Intangibles (Details) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Intangible Amortization | $ 179,086 | $ 29,091 | ||||
Other Intangible Assets [Member] | ||||||
Intangible Amortization | $ 91,813 | $ 149,995 |
Note 6 - Property, Plant and 33
Note 6 - Property, Plant and Equipment, Net - Depreciation Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Depreciation Expense | $ 86,293 | $ 31,500 | $ 203,698 | $ 94,500 |
Note 7 - Bank Debt (Details Tex
Note 7 - Bank Debt (Details Textual) - USD ($) | Jun. 01, 2017 | Jun. 30, 2017 |
Long-term Debt | $ 2,000,000 | |
Line of Credit [Member] | First Francis [Member] | ||
Repayments of Notes Payable | $ 500,000 | |
J P Morgan Chase Bank [Member] | ||
Long-term Debt | 2,000,000 | |
Debt Instrument, Periodic Payment | $ 41,667 | |
J P Morgan Chase Bank [Member] | Prime Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
J P Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility, Percent of Eligible Inventory | 50.00% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | |
Line of Credit Facility, Percent of Eligible Accounts | 80.00% | |
Line of Credit Facility, Percent of Eligible Progress Billing Accounts | 50.00% | |
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
J P Morgan Chase Bank [Member] | Letter of Credit [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 |
Note 7 - Bank Debt - Summary of
Note 7 - Bank Debt - Summary of Loan Balances (Details) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Long-term Line of Credit | $ 6,200,000 | |
Long-term Debt | 2,000,000 | |
Term Debt | 500,000 | |
Non-Current Bank Debt | 7,700,000 | |
Loans Payable [Member] | ||
Long-term Debt | $ 8,200,000 |
Note 8 - Notes Payable (Details
Note 8 - Notes Payable (Details Textual) - USD ($) | Jun. 03, 2016 | Jun. 30, 2017 | Dec. 20, 2016 | Sep. 30, 2016 | Dec. 30, 2012 | Dec. 30, 2011 |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 200,000 | $ 200,000 | ||||
Long-term Line of Credit | 6,200,000 | |||||
Roundball LLC [Member] | Amendment No. 5 [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.34% | |||||
Working Capital Funding | $ 467,000 | |||||
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 | |||||
Line of Credit Facility, Interest Rate During Period | 4.00% | |||||
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Accounts Receivable | 80.00% | |||||
Long-term Line of Credit | $ 0 | $ 250,000 | ||||
Director [Member] | Roundball LLC [Member] | Convertible Notes Payable [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.25% | |||||
Working Capital Funding | $ 467,000 |
Note 8 - Notes Payable - Notes
Note 8 - Notes Payable - Notes Due to Related Parties (Details) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Notes payable, related parties, current and non-current | $ 142,726 | $ 379,761 |
Notes payable, related parties, non-current | 3,861,766 | 4,388,901 |
First Francis [Member] | ||
Notes payable, related parties, current and non-current | 4,004,492 | 4,768,662 |
Notes payable, related parties, current and non-current | 142,726 | 379,761 |
Notes payable, related parties, non-current | 3,861,766 | 4,388,901 |
First Francis [Member] | Promissory Note 1 [Member] | ||
Notes payable, related parties, current and non-current | 1,639,206 | 2,000,000 |
Notes payable, related parties, current and non-current | 81,254 | |
First Francis [Member] | Promissory Note 2 [Member] | ||
Notes payable, related parties, current and non-current | 2,365,286 | $ 2,768,662 |
Notes payable, related parties, current and non-current | $ 61,472 |
Note 8 - Notes Payable - Note38
Note 8 - Notes Payable - Notes Due to Related Parties (Details) (Parentheticals) - First Francis [Member] | 9 Months Ended |
Jun. 30, 2017USD ($) | |
Promissory Note 1 [Member] | |
Notes payable, quarterly payment | $ 60,911 |
Notes payable, interest rate | 4.00% |
Notes payable, face value | $ 2,000,000 |
Promissory Note 2 [Member] | |
Notes payable, quarterly payment | $ 84,321 |
Notes payable, interest rate | 4.00% |
Notes payable, face value | $ 2,768,662 |
Note 9 - Earnings Per Common 39
Note 9 - Earnings Per Common Share - Summary of Earnings Per Share Calculation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings (Loss) Per Share - Basic | ||||
Net Income (Loss) | $ 941,523 | $ (8,095) | $ 840,957 | $ (519,728) |
Earnings (Loss) Per Share - Basic (in dollars per share) | $ 0.33 | $ 0 | $ 0.29 | $ (0.32) |
Earnings (Loss) Per Share - Diluted | ||||
Weighted average shares of common stock outstanding - Basic (in shares) | 2,880,719 | 1,638,215 | 2,870,349 | 1,638,215 |
Warrants, Options and Convertible Notes (in shares) | 163,721 | 92,081 | ||
Weighted average shares of common stock -Diluted (in shares) | 3,044,440 | 1,638,215 | 2,962,430 | 1,638,215 |
Earnings (Loss) Per Share - Diluted (in dollars per share) | $ 0.31 | $ 0 | $ 0.28 | $ (0.32) |
Note 10 - Acquisitions (Details
Note 10 - Acquisitions (Details Textual) - Air Enterprises [Member] - USD ($) | Jun. 01, 2017 | Jun. 30, 2017 | Jun. 30, 2017 |
Business Combination, Consideration Transferred | $ 10,250,000 | ||
Business Combination, Acquisition Related Costs | $ 300,000 | $ 300,000 |
Note 10 - Acquisitions - Summar
Note 10 - Acquisitions - Summary Assets Acquired and Liabilities Assumed (Details) - USD ($) | Jun. 30, 2017 | Jun. 01, 2017 | Sep. 30, 2016 |
Goodwill | $ 2,409,048 | $ 1,777,656 | |
Air Enterprises [Member] | |||
Accounts Receivable | $ 4,761,368 | ||
Inventory | 594,503 | ||
Costs in excess of billings and estimated costs | 3,980,824 | ||
Fixed Assets | 2,112,120 | ||
Prepaid and Other Assets | 53,110 | ||
Intangibles Assets | 1,230,000 | ||
Goodwill | 631,392 | ||
Total Assets Acquired | 13,363,317 | ||
Accounts Payable | 1,726,618 | ||
Billings in Excess of costs and earnings | 594,545 | ||
Accrued Payroll and related expenses | 325,950 | ||
Accrued Expense | 424,671 | ||
Lease Payable | 41,533 | ||
Total Liabilities Assumed | 3,113,317 | ||
Net Assets Acquired | $ 10,250,000 |
Note 11 - Segment and Related42
Note 11 - Segment and Related Information (Details Textual) | 9 Months Ended |
Jun. 30, 2017 | |
Number of Reportable Segments | 3 |
Note 11 - Segment and Related43
Note 11 - Segment and Related Information - Information by Industry Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Sales | $ 7,220,626 | $ 1,530,244 | $ 12,923,867 | $ 3,953,740 | |
Income (Loss) Before Provision for Income Taxes | |||||
Commercial Air Handling | 978,896 | (8,095) | 894,458 | (519,728) | |
Operating Segments [Member] | Commercial Air Handling [Member] | |||||
Sales | 3,343,945 | 3,343,945 | |||
Income (Loss) Before Provision for Income Taxes | |||||
Commercial Air Handling | 607,471 | 607,471 | |||
Operating Segments [Member] | Test and Measurement [Member] | |||||
Sales | 2,452,854 | 1,530,244 | 5,049,991 | 3,953,740 | |
Income (Loss) Before Provision for Income Taxes | |||||
Commercial Air Handling | [1] | 880,600 | (8,095) | (19,446) | (519,728) |
Operating Segments [Member] | Industrial Hose [Member] | |||||
Sales | 1,423,827 | 4,529,931 | |||
Income (Loss) Before Provision for Income Taxes | |||||
Commercial Air Handling | $ (509,175) | $ 306,433 | |||
[1] | Certain Expenses such as corporate general and administrative expenses, acquisition related expense and interest expense are included in the Test and Measurement division. |