**SECURITIES AND EXCHANGE COMMISSION**                            Washington, D.C. 20549

FORM             10-K

[X]             ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES   EXCHANGE         ACT OF 1934 

             For the fiscal year ended September 30, 2003

             OR 

[             ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES         EXCHANGE    ACT OF 1934 

             For the transition period from Not Applicable to Not  Applicable

             Commission file number:  0-147 

**HICKOK INCORPORATED**

             (Exact name of registrant as specified in its charter) 

**
**Ohio**

**34-0288470**

 (State or other jurisdiction of incorporation or organization)                   

 (I.R.S. Employer Identification No.) 

**10514 Dupont Avenue, Cleveland, Ohio**

**44108**

 (Address of principal executive offices) 

 (Zip Code) 
**

             Registrant's telephone number, including area code: **(216)      541-8060**

             Securities registered pursuant to 

             Section 12(b) of the Act:                             NONE                             Securities registered pursuant to Section 12(g) of  the   Act:   

 Class A Common Shares, $1.00 par value                             (Title of Class) 

 Indicate by check             mark whether the registrant (1) has filed all reports required  to   be   filed     by Section 13 or 15(d) of the Securities Exchange Act  of 1934   during  the    preceding 12 months (or for such shorter period that the registrant    was  required  to file such reports), and (2) hasbeen subject to such filing    requirements  for the past 90 days. **Yes[X] No[ ]**

 Indicate by check             mark if disclosure of delinquent filers pursuant to Item 405of   Regulation          S-K is not contained herein, and will not be contained,   to the best    of   Registrant's   knowledge, in definitive proxy or information   statements     incorporated  by  reference in Part III of this Form 10-K  or any amendment     to this Form  10-K.  **[X]**

 Indicate by check             mark whether the registrant is an accelerated filer ( as defined    in   Exchange      Act Rule 12b - 2 ). **Yes [ ] No[X]**

 As of December             15, 2003, the Registrant had 764,884 voting shares of ClassA  Common       Stock     outstanding and 454,866 voting shares of ClassB Common  Stock     outstanding.       As of such date, non-affiliates held709,753  shares  of   Class A Common   Stock    and 233,098 shares of ClassB Common  Stock.  As  of December 15, 2003,  based    on the closing priceof $4.45  per Class  A  Common Share on the Nasdaq  Small    Cap Market,the aggregate  market value  of the Class A Common Stock  held  by  suchnon-affiliates was approximately    $3,158,401. There is no trading    market in the shares  of Class B Common    Stock. 

 Documents Incorporated             by Reference: 

| **PART OF FORM 10-K**                              | **DOCUMENT INCORPORATED             BY REFERENCE**                                                                                                                              |
|----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Part III (Items 10, 11,             12, 13 and 14) | Portions of the Registrant's             Definitive Proxy Statement to be used in connection with itsAnnual       Meeting      of Shareholders to be held on February 18, 2004. |

 Except as otherwise stated,             the information contained in this Form 10-K is as of September  30,    2003.

For the fiscalyears ended September 30, 2002 and 2003, Hickok Incoporated had revenuesof less than $25,000,000 and less than $25,000,000 in outstanding votingand non-voting common equity held by non-affiliates. As a result, Hickokmet the definition of a small business issuer under Regulation S-B and haselected to submit its future periodic reports in accordance with the disclosurerequirements for small business issuers under Regulation S-B.

 Table of Contents 

**PART I.**
ITEM 1. DESCRIPTION             OF BUSINESSITEM 2. DESCRIPTION OFPROPERTIESITEM 3. LEGAL PROCEEDINGSITEM 4. SUBMISSION OF  MATTERS     TO  A  VOTE   OF  SECURITY HOLDERSITEM 10. EXECUTIVE OFFICERS   OF  THE   REGISTRANT

**PART II.**
 ITEM 5. MARKET FORREGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERSITEM 6. SELECTED FINANCIAL    DATAITEM 7. MANAGEMENT'S DISCUSSION    AND   ANALYSIS     OF  FINANCIAL  CONDITION AND RESULTSITEM 7A. QUANTITATIVE AND QUALITATIVE       DISCLOSURES      ABOUT MARKET RISKITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATAF-1: INDEPENDENT AUDITORS'  REPORTF-2: CONSOLIDATED BALANCE SHEETF-3: LIABILITIES AND STOCKHOLDERS'     EQUITYF-4: CONSOLIDATED STATEMENT  OF  INCOMEF-5: CONSOLIDATED STATEMENT  OF  STOCKHOLDERS'        EQUITYF-6: CONSOLIDATED STATEMENT  OF  CASH   FLOWS

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**
1. NATURE OF OPERATIONS2. SUMMARY OF SIGNIFICANT ACCOUNTING      POLICIES3. SHORT-TERM FINANCING4. LEASES5. STOCK OPTIONS6. CAPITAL STOCK, TREASURY STOCK,    AND   CONTRIBUTED       CAPITAL7. INCOME TAXES8. EARNINGS PER COMMON SHARE9. EMPLOYEE BENEFIT PLANS10. GOODWILL        11. SEGMENT AND RELATEDINFORMATION12. QUARTERLY DATA (UNAUDITED)
ITEM 9. CHANGES IN ANDDISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL  DISCLOSURE  ITEM 9A. CONTROLS AND PROCEDURES

**PART III.**
ITEM 10. DIRECTORS AND             EXECUTIVE OFFICERS OF THE REGISTRANT ITEM 11. EXECUTIVE COMPENSATIONITEM 12. SECURITY OWNERSHIP    OF  CERTAIN     BENEFICIAL     OWNERS AND MANAGEMENTITEM 13. CERTAIN RELATIONSHIPS   AND   RELATED     TRANSACTIONSITEM14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

**PART IV.**
ITEM 15. EXHIBITS, FINANCIALSTATEMENT SCHEDULES, AND REPORTS ON REPORT 8-KSIGNATURESEXHIBIT INDEXREPORT OF INDEPENDENT AUDITORS   AS  TO  CONSOLIDATED       SCHEDULESSCHEDULE VIII - VALUATIONAND   QUALIFYING      ACCOUNTSSCHEDULE IX - SHORT-TERM  BORROWINGS

----

**PART I**

**ITEM 1. DESCRIPTION OF BUSINESS**

General Development             of Business

Hickok Incorporated             was organized in 1915 as an Ohio corporation, and first offered   its    securities      to the public in 1959. Except as otherwise stated,   the terms   "Company"   or   "Hickok" as used herein mean Hickok Incorporated    and its   two wholly-owned      subsidiaries. 

In February 1995             the shareholders approved a change in the Company's name toHickok       Incorporated       from The Hickok Electrical Instrument Company.Hickok      develops and manufactures       products used by companies inthe transportation      industry. Primary markets       served are automotive,aircraft, and locomotive     with sales to both original       equipmentmanufacturers (OEM's) and to   the automotive aftermarket. 

Until the mid 1980's             Hickok was known primarily for its ability to develop and manufacture         electronic    instruments for electronic servicers, precision indicating        instruments for   aircraft, locomotive, and industrial applications,   and    electronic teaching    systems for vocational schools. For thepast    eighteen    years the Company  has  used this expertise to developand manufacture    electronic   diagnostic  tools  and equipment used byautomotive technicians    in the automotive   market.  This  is now the Company'slargest business   segment.

By the early 1990's             the Company had become dependent on a few large OEM  customers  for    the    majority   of its business. After recognizing this dependency    the Company    tried  several approaches to expand both its customerbase      and  its product    lines  utilizing its existing expertise andacquisitions   but only had modest    success.  The Company then determinedthat it was  crucial   that it expand   its automotive  business by designingproducts  and opening   sales channels   to the automotive  aftermarket.In February  1998 the Company   added new products   and customers  withinthe automotive  aftermarket with   the acquisition of  Waekon Industries, a privately owned  company in Kirkwood,     Pennsylvania.  Waekon manufactureda variety of testing equipment used  by   automotive technicians.

In addition,  the           Company embarked on programs to design tools specifically        tailored  to the needs of the automotive aftermarket and develop a  variety    of sales  channels to the market. Since the acquisition the     Waekon  name  is  used by the Company as a trademark to market its products     to technicians     in the automotive  aftermarket and for certain emission     inspection grade    equipment it manufactures. Also the name Waekon-Hickok     is used as   a trademark for higher complexity  equipment primarilyaimed      at automotive    service shops as a shop tool. The  Hickok brandis used     for a family of  products  that are related to OEM grade  toolssold to   automotive   dealerships  and manufacturers.

 The Company'soperations are currently concentrated in the United States of America. Salesare primarily to domestic customers although the Company also makes salesto international customers through domestically based distribution companies.The Company established select market international service center arrangementsduring fiscal 1995. 

Operating Segment             Information

The Company's operations             are combined into two reportable business segments: 1) indicators     and    gauges    and 2) automotive diagnostic tools and equipment. Reference     is   made to "Segment   and Related Information" incorporated in thefollowing        financial statements.   

Indicators and             Gauges

For over seventy             years the Company has developed and manufactured precision indicating         instruments    used in aircraft, locomotives and other applications.    In   recent  years the    Company has specialized in aircraft and locomotive     cockpit  instruments.    Within  the aircraft market, instruments are sold    primarily  to manufacturers    of business  and pleasure aircraft. Within    the locomotive  market, indicators     are sold to both original equipment    manufacturers and to operators of railroad    equipment.  The Company added    pressure gauges  to its offerings to locomotive    customers  in 1996. Indicators   and gauges  represented approximately 13%  of  the Company's  sales for fiscal  2003 and  15% for fiscal 2002. A new grouping    of products,  DIGILOG Instruments,    were certified with the FAA during fiscal    2002. The DIGILOG instrument    is a customizable indicator  that is a combination    analog/digital  indicator    for the aircraft market.  It can be adapted to  display  a wide variety   of aircraft parameters.The  Company expects these  instruments   to have  broad  appeal in the aircraft  retrofit market, a new  market for  the  Company.    

Automotive Diagnostic             Tools and Equipment

In the mid 1980's             the Company began to concentrate on designing and marketinginstruments            used  to diagnose automotive electronic systems. Theseproducts  were     initially      sold to Ford Motor Company but are nowsold both to Ford   and  to the aftermarket       using jobbers, wholesalersand mobile  distributors.     The Company increased       its aftermarketbusiness with  the acquisition,     in February 1998, of Waekon      Industries,a manufacturer  of a variety    of testing equipment used by automotive   technicians. Leveraging on this   acquisition, the Company has designedand    introduced a number of new products  that increased product  offeringsin  the  Waekon product line significantly.  The acquisition added  new distribution    resources and new products for  the American aftermarket  market coverage.   Additional distribution resources    have been added since  the acquisition and  the Company now has full North    American aftermarket  market coverage. The aftermarket currently accounts    for approximately 60%  of automotive diagnostic   and specialty tool sales.    In fiscal 2002 it represented approximately  53%.   As a whole, automotive    diagnostic tools and equipment represented approximately    87% of the  Company's  sales for fiscal 2003and  85% for fiscal 2002. 

Fastening control             systems are some of the automotive products sold by the Company.    Fastening         instrumentation is used to monitor and control pneumatic    and electric     tools    that tighten threaded fasteners in order toprovide    high quality     joint control   and documentation. With the introduction    of products such     as the pulse tool   control and Windows based user  station  software the   Company  is expanding  its customer base to include  tool distributors   and   heavy equipment   manufacturers.   Recently single  spindle air and  pulse  tool controls, first   introduced in  1999, have become an important  product  grouping that is expanding   the Company's  penetration into heavy  equipment  manufacturers. In addition,   the Company  has determined that  the technology  used for these fastening  controland  documentation   systems  could have applicability to the automotive service  market. 

New products  are           an important part of the marketing package that enables growth   in   the    aftermarket.    The Company maintains a substantial engineering   staff   skilled    in electronic    and packaging design and in diagnosing   vehicle   systems.   In late fiscal 2002   and in fiscal 2003 the Company   introduced   six new products.   In 2001 the Company  determined to use the  Waekon brand   for products that   are primarily  expected  to sellto individual technicians   as well as for certain   products specific to emissions inspection testing that   were already established in the marketplace.The Company established   a new brand, Waekon/Hickok,    for products primarily   targeted toward shop purchase.  The Hickok brand    is used for shop type products   that concentrate on high-level  diagnostic    technologies generally single   OEM focused. Three products were  introduced    using the Waekon brand during   fiscal 2003. Two products branded  Waekon/Hickok    and one branded Hickok were  also introduced. One of the Waekon  products,    the COP Probe (Coil on Plug  Quick Probe) won the prestigious Motor  Magazine     Top Twenty Tools Award for  2003.

Packaging, sales             collateral for both users and sales channels, and field support   have     become     an important element of the "product packages" theCompany    offers.    In the    past several years the Company has increasedits skills    in these    disciplines     and now offers greatly enhanced"product packages"    as compared    to the requirements    for OEM sales.The "product packages"    include extensive    use of the Internet    forproduct technical details,    sales support, customer     communications,and   product registration.  During  fiscal 2004 the Company     will beadding to this   capability including    business to business capability    for representatives   and distributors,    and several other electronicinitiatives     designed to enable    further    penetration of the aftermarket.

NGS is a diagnostic             tool primarily used on Ford vehicles to diagnose electronicsystems.         This     unit and software upgrades for the unit representover 38%   of   the   Company's     sales. The Flash Kit, an accessory forthe NGS Tester,     was  introduced in   late fiscal 2000. The unit reprogramsa Ford automobile's       PCM (Powertrain    Control Module) which is the"brain" of the car. PCM    updates  are released    periodically by Fordto improve engine performance.     Because  of Federal mandates,   the aftermarketmust have access to the   same  capabilities  Ford offers their   dealerships.The NGS unit provides   aftermarket  shops the same capability  dealershipshave for diagnosing and  servicing vehicles. In addition, the Flash kit enablesa shop to reprogram   a PCM to factory specifications.    This capabilityincludes the ability  to program transponder keys for security    systemson the vehicles. The Company offers a version of NGS to the locksmithindustry specifically for this purpose. Recently Ford introduced a new diagnostic  tool called VCM that works with the NGS on a new generation of vehiclesthat  uses CAN protocol for the diagnostic link. The Company is currentlyconcluding     negotiations with Ford to offer this tool to the automotiveaftermarket.     

The Company isparticipating in an emissions program announced by the State of Pennsylvaniathat will begin installation of equipment in December 2003. The Company willoffer products for counties required to perform OBD II inspections and thoserequired to do Visual inspections. In addition, a number of the competitiveofferings  in this program use a Waekon Gas Cap Tester manufactured by theCompany. The OBD II and Visual platforms           are the first of thistype of product that the Company has introduced.        In   addition theCompany is involved in a program for California that     involves      measurementsof leaks in evaporative emissions systems. While    this program      isstill in its initial stages the Company believes it   will proceed and become    a substantial market for our products as the program further develops.The Company holds   several patents and    has submitted for approval ofanother that the Company believes   directly apply to this    technicallychallenging program.

Sources andAvailability of Raw Materials

Raw materials essential             to the business are acquired from a large number of United States     of   America     manufacturers and some materials are now purchasedfrom     European   and South     East Asian sources. Materials acquiredfrom the    electronic  components industry    include transistors, integratedcircuits,    resistors,  capacitors, switches,    potentiometers, micro controllers, and  other passive  parts. Fabricated metal   or plastic parts are generally purchased  from local  suppliers or manufactured   by the Company from raw materials.  In general,  the required  materials are   available, if ordered with sufficient     lead times, from multiple  sources at  current prices. 

Importanceof Patents, Licenses, Franchises, Trademarks and Concessions

The Company presently             has several patents and patent applications that relate to certain      of   its    products. The Company does not consider that any one patentor group     of  patents    is   material to the conduct of its businessas a whole.   The Company  believes  that    its  position in the industryis dependent  upon its present  level  of engineering      skill, research,sales relationships,   production  techniques  and service    rather  thanupon its ownership of   patents. Other  than the  names "Hickok"    and "Waekon",  the Company does  not have any  material licenses, trademarks,    franchisesor  concessions.   

Seasonality

The Company believes             that with the growing importance of the automotive aftermarket  to   its    business    there is a modest seasonality affecting its revenues.    Typically    the first    and fourth quarters tend to be weaker thanthe    other two quarters.    Although    there were no such orders in fiscal2003   certain products can    be subject   to large order amounts that aredependent   upon customer release    dates. As   a result any seasonalityaspect to revenues     can be overwhelmed    by delivery   of these largeorders and operating   results  can fluctuate    widely  from quarterto quarter. There were  several such  order completions   in fiscal 2001that    had an influence  on quarterly results. 

Practices Relative             to Working Capital Items

The nature of the             Company's business requires it to maintain sufficient levelsof   inventory          to meet rapid delivery requirements of customers.The  Company provides       its   customers with payment terms prevalentin the  industry. 

Dependence on             Single or Few Customers

During the fiscal             year ended September 30, 2003, sales to Ford and General Motors   Corporation          accounted for approximately 20% and 8% respectively  of the consolidated        sales  of the Company. This compares with 24% and 9% respectively during       the prior  fiscal year. The Company hasno long-term contractual relationships        with either Ford or GeneralMotors, and the loss of business from either       one without a correspondingincrease in business from new or existing   customers     would have a materialadverse effect on the Company. 

Backlog

At September 30,             2003, the unshipped customer order backlog totaled $1,522,000 compared         to   $1,580,000 at September 30, 2002 and $1,850,000 atSeptember 30,    2001.    The   slight decrease in fiscal 2003 is primarilydue to lower  orders  for    indicators   and gauges, and fastening controlproducts of  $138,000  and  $291,000  respectively.   The decrease was offsetin part  by an increase   in automotive  diagnostic products,  specifically,emission   products of $362,000.   The decrease  in fiscal 2002 was primarilydue to  lower orders for indicators   and gauges  of $233,000. 

Government Contract             Renegotiation

No major portion             of the business is open to renegotiation of profits or termination      of   contracts    or subcontracts at the election of the Government. The    amount   of revenue   derived from Government contracts is currently minimal    and not  material.  

CompetitiveConditions

The Company isengaged in a highly competitive industry and faces competition from domesticand international firms. Several of the Company's competitors have greaterfinancial resources and larger sales organizations than the Company. Competitionwith respect to the Company's diagnostic tool business arises from the existence             of a number of other significant manufacturers in the field,such     as   Snap-On,     SPX Corporation, Teradyne, and Vetronix whichdominate    the available     market in terms of total sales. With regardto  fastening    systems  products,     competition comes both from companies  that make the  equipment  to control    fastening tools and from tool makers  themselves.   Specific companies  include    Atlas Copco, Cooper Tool, and  Stanley.The    instrumentation industry  is composed   primarily of companies thatspecialize    in the production of  particular  items  as compared to a fullline of instruments.   The Company  believes that  its competitive  positionin this field is in  the area of smaller,   specialized   products,  an areain which the Company  has operated since 1915 and in which   the Company hasestablished itself  competitively by offering   high-quality,   high-performanceproducts in comparison to high-volume, mass-produced  items.   

Research and             Development Activities

The Company expensed             as incurred product development costs of $1,961,901 in 2003,$1,874,858           in  2002 and $2,343,684 in 2001. These expendituresincluded engineering       product      support and development of manualsfor both of the Company's       business  segments.

Compliance with             Environmental Provisions

The Company's capital             expenditures, earnings and competitive position are not materially      affected       by compliance with federal, state and local environmental     provisions  which     have been enacted or adopted to regulate the distribution     of materials    into   the environment. 

Number of Persons             Employed

Total employment             by the Company at September 30, 2003 was 161 employees. Noneof   the    employees      are represented by a union. The Company considers its  relations    with its    employees to be good. 

Financial Information             Concerning Foreign and Domestic Operations and Export Sales

During       the fiscal year ended September 30, 2003, all manufacturing, research   and    development and administrative operations were conducted in theUnited    States   of America. Revenues derived from export sales approximated$501,000    in 2003,  $566,000 in 2002, and $692,000 in 2001. Shipments toCanada make    up the majority  of export sales.

----

**ITEM 2. DESCRIPTION OF PROPERTIES**

 As of December 1, 2003             the Company had facilities in the United States of America as shown      below:      

| **LOCATION**                       | **SIZE**       | **DESCRIPTION**                                                                                                                                                    | **OWNED OR LEASED**                                        |
|------------------------------------|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|
| Cleveland,             Ohio        | 37,000 Sq. Ft. | Two-story             brick construction; used for corporate administrative headquarters,       marketing      and product development with limited manufacturing. | Owned                                                      |
|                                    |                |                                                                                                                                                                    |                                                            |
| Greenwood,             Mississippi | 63,000 Sq. Ft. | One-story             modern concrete block construction; used for manufacturing instruments,           test  equipment, and fastening systems products.           | Leased,with annual renewal options extending through 2061. |
|                                    |                |                                                                                                                                                                    |                                                            |
|                                    |                |                                                                                                                                                                    |                                                            |

----

**ITEM 3. LEGAL PROCEEDINGS**

 The Company is             not a party to any material legal proceedings. 

----

**ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY             HOLDERS**

 Not Applicable. 

----

**ITEM 10. EXECUTIVE OFFICERS OF THE REGISTRANT***

 The following is a list             of the executive officers of the Company as of September 30,2003.      The    executive   officers are elected each year and serve atthe pleasure      of  the  Board of  Directors. Mr. Robert Bauman was electedChairman by   the  Board   of Directors  in July 1993 and served as chairmanuntil May  2001.  He has  been President  since 1991 and Chief ExecutiveOfficer since  1993.  For at  least five years  prior to 1991 he held theoffice of Vice  President.  The  Board of Directors  elected Mr. GregoryZoloty Vice President  of Finance   and Chief Financial Officer in May 2001.Mr. Zoloty was Vice  President of   Accounting and Chief Accounting Officersince 1994. He joined  the Company   in 1986. Mr. Thomas Bauman was electedVice President of Sales  and Marketing   by the Board of Directors in May1999. He joined the Company  in April 1998.   In 1996 and 1997 he was President and CEO of C&K Manufacturing.  Mr. Robert  Bauman and Mr. Thomas Bauman are brothers. 

| **OFFICE**                                                      | **OFFICER**                  | **AGE** |
|-----------------------------------------------------------------|------------------------------|---------|
|                                                                 |                              |         |
| President             and Chief Executive Officer               | Robert L.             Bauman | 63      |
|                                                                 |                              |         |
| Vice President,             Finance and Chief Financial Officer | GregoryM. Zoloty             | 51      |
|                                                                 |                              |         |
| Vice President,             Sales and Marketing                 | Thomas F.             Bauman | 60      |

 *The description             of Executive Officers called for in this Item is included pursuant      to   Instruction    3 to Section (b) of Item 401 of Regulation S-K.                          Hickok has historically operated under informalethical  guidelines, under which the Company's principal executive, financial,and  accounting officers, are held accountable. In accordance with these guidelines, the Company has always promoted honest, ethical and lawful conduct throughout the organization. The Company is presently working to formalize its guidelines into a written Code of Ethics, which will be formally adopted and made publicly avaiable in early 2004.  

----

**PART II**

**ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED     STOCKHOLDER        MATTERS**

 a)  MARKETINFORMATION 

 The Registrant's             Class A Common Shares are traded on The Nasdaq Small Cap Market   under      the    symbol HICKA. There is no market for the Registrant's Class  B Common     Shares.    

 The following table sets             forth the range of high and low closing prices for the Registrant's       Class      A Common Shares for the periods indicated, which pricesreflect       inter-dealer      prices without retail markup, markdown orcommissions.      Data was supplied     by Nasdaq. 

| **PRICES FOR THE YEARS ENDED:** |
|---------------------------------|
|                                 |
|                                 | **September 30, 2003** | **September 30, 2002** |
|                                 | **HIGH** | **LOW** | **HIGH** | **LOW** |
| First Quarter                   | 5.00 | 3.41 | 4.80 | 2.45 |
| Second Quarter                  | 4.60 | 3.51 | 4.35 | 3.28 |
| Third Quarter                   | 4.10 | 3.40 | 4.29 | 2.61 |
| Fourth Quarter                  | 4.25 | 3.70 | 4.71 | 3.01 |

 b) HOLDERS             

 As of December             15, 2003, there were approximately 382 holders of record ofthe    Company's          outstanding Class A Common Shares and 5 holdersof record    of the Company's         outstanding Class B Common Shares.

 c) DIVIDENDS             

 The Company has not paid dividends on its Class A and Class B Common Shares since fiscal     2000.      The declaration and payment of future dividends is restricted,      under certain     circumstances, by the provisions of the Company'sbank     credit agreement   when  borrowings are outstanding. Such restriction is   not expected to materially     limit the Company's ability to pay dividends    in the future, if declared.    In addition, pursuant to the Company'sAmended     Articles of Incorporation,     no dividends may be paid on ClassB Common     Shares until cash dividends  of   ten cents per share per fiscalyear are    paid on Class A Common Shares.  Any   determination to pay cashdividends     in the future will be at the discretion     of the Board ofDirectors after    taking into account various factors, including     theCompany's financial    condition, results of operations and current and  anticipated cash needs.

----

**ITEM 6. SELECTED       FINANCIAL DATA**

**FOR THE YEARS ENDED SEPTEMBER 30**

|                                         | **2003**                                            | **2002** | **2001** | **2000** | **1999** |
|-----------------------------------------|-----------------------------------------------------|----------|----------|----------|----------|
|                                         | (In Thousands of Dollars, except per share amounts) |
|                                         |                                                     |          |          |          |          |
| Net Sales                               | $                                                   | 11,038   | $        | 12,392   | $        | 15,261 | $ | 18,275 | $ | 18,827 |
|                                         |                                                     |          |          |          |          |
| Net Income             (Loss)           | $                                                   | (1,773)  | $        | 244      | $        | (662) | $ | (411) | $ | (268) |
|                                         |                                                     |          |          |          |          |
| WorkingCapital                          | $                                                   | 6,611    | $        | 7,720    | $        | 7,096 | $ | 7,923 | $ | 8,473 |
|                                         |                                                     |          |          |          |          |
| Total Assets                            | $                                                   | 10,380   | $        | 12,303   | $        | 12,178 | $ | 13,767 | $ | 14,282 |
|                                         |                                                     |          |          |          |          |
| Long-term             Debt              | $                                                   | -0-      | $        | -0-      | $        | 9 | $ | 156 | $ | 418 |
|                                         |                                                     |          |          |          |          |
| Total Stockholders'             Equity  | $                                                   | 9,458    | $        | 11,231   | $        | 10,986 | $ | 11,642 | $ | 12,110 |
|                                         |                                                     |          |          |          |          |
| Net Income             (Loss) Per Share | $                                                   | (1.45)   | $        | .20      | $        | (.54) | $ | (.34) | $ | (.22) |
|                                         |                                                     |          |          |          |          |
| Dividends             Declared          |                                                     |          |          |          |          |
|                                         |                                                     |          |          |          |          |
| Per Share:                              |                                                     |          |          |          |          |
|                                         |                                                     |          |          |          |          |
| Class A                                 | $                                                   | -0-      | $        | -0-      | $        | -0- | $ | .10 | $ | .15 |
|                                         |                                                     |          |          |          |          |
| Class B                                 | $                                                   | -0-      | $        | -0-      | $        | -0- | $ | .10 | $ | .15 |
|                                         |                                                     |          |          |          |          |
| Stockholders'             Equity        |                                                     |          |          |          |          |
|                                         |                                                     |          |          |          |          |
| Per Share:                              | $                                                   | 7.75     | $        | 9.21     | $        | 9.01 | $ | 9.56 | $ | 10.09 |
|                                         |                                                     |          |          |          |          |
| Return on             Sales             | (16.1%)                                             | 2.0%     | (4.3%)   | (2.2%)   | (1.4%)   |
|                                         |                                                     |          |          |          |          |
| Return on             Assets            | (15.6%)                                             | 2.0%     | (5.4%)   | (2.9%)   | (1.8%)   |
|                                         |                                                     |          |          |          |          |
| Return on             Equity            | (17.1%)                                             | 2.2%     | (6.0%)   | (3.5%)   | (2.2%)   |
|                                         |                                                     |          |          |          |          |
| ClosingStock Price                      | $                                                   | 4.10     | $        | 4.71     | $        | 2.50 | $ | 4.50 | $ | 7.56 |
|                                         |                                                     |          |          |          |          |

----

**ITEM 7. MANAGEMENT'S       DISCUSSION AND ANALYSIS OF FINANCIAL      CONDITION AND RESULTS OFOPERATIONS**

 Introduction             

 Until the mid1980's Hickok was known primarily for its ability to develop and manufactureelectronic instruments for electronic servicers, precision indicating instrumentsfor aircraft, locomotive, and industrial applications, and electronic teaching             systems for vocational schools. For the past eighteen yearsthe    Company        has  used this expertise to develop and manufactureelectronic    diagnostic        tools  and equipment used by automotive techniciansin   the automotive    market.    This  is now the Company's largest business segment. The Company    currently    generates  approximately 60% of itsrevenue from designing  and  manufacturing    diagnostic  tools for the automotive aftermarket. These   tools enable automotive    service  technicians toidentify  problems in the  rapidly increasing number    of electronics  systemsin automobiles. 

Approximately ten             years ago the Company initiated a strategy to use existing expertise        to   diversify  its customer base and add new products within itsvarious        product   classes.  The strategy has been implemented usingacquisitions       and modifying   the organization  to a market orientation.

In February 1998             the Company increased its automotive aftermarket business with  the    acquisition       of Waekon Industries, a privately owned company in Kirkwood,    Pennsylvania.       Sales of aftermarket products now account  for 60% of   automotive diagnostic       and specialty tool sales, 53%in   fiscal 2002.   Waekon manufactured a variety      of automotive diagnostic  equipment and   specialty tools used by automotive      technicians. The acquisition cost   $2,221,302 and was recorded as an asset      purchase. Because of its positive   reputation in the industry the Waekon    name has become the trademark used  by the Company to market certain of  its products  to the automotive aftermarket.  

In July 2000 the             Company closed its production and sales facility in Kirkwood, Pennsylvania            pursuant to a restructuring plan. For the year ended September 30,    2002     the  Company achieved the savings that were anticipated from this    restructuring.       In April 2001 management took steps toreduce non-direct    product related      expenses throughout the Companyby an estimated 20%.    The steps included    a  substantial reduction inpersonnel and expenditure    restrictions in most    aspects  of the Company'soperations. Savings in   fiscal 2002 from this reduction   were  approximately$1,500,000. During  this past year it became evident that  revenue  wouldbe lower than fiscal  2002 and to maintain operating profitability  further staff reductions would  be necessary. Simultaneously it became evidentthat  the Pennsylvania emissions   program, which the Company had been preparing  for,  would be implemented in  early fiscal 2004. Management decided notto reduce expenses     during the last  half of fiscal 2003 because in theirjudgment it would  have   jeopardized   the Company's ability to competeeffectively in the Pennsylvania     and  eventually in the California emissionsprograms.

The timing of order             releases in the Company's automotive diagnostic equipment business      can    cause   wide fluctuations in the Company's operating results, particularly         on a quarter-to-quarter  basis. Orders for such equipment can be large,       are  subject to customer release,  and may result insubstantial variations       in  quarterly sales and earnings.  There wereno large orders of this   nature     in either of the past three fiscalyears although previous large   orders    were completed in fiscal 2001.A reason  for this is the Company's   efforts    in recent years to diversifyits customer  base. However, in future  years    the receipt of large orderscould result in  a significant increase  in order   levels which may resultin substantial variations  in quarterly  sales and   earnings. Any foreignsales are made in United States  of America  Dollars.    

Introduction of             new automotive diagnostic products to the aftermarket on a regular      basis      is very important for the ongoing success of this business  segment.    Consequently,       expenditures for product development have  been and will   continue to be   significant   to the Company's operations.  Expenditures   for product   development were reduced several years ago. Management feels     the current   levels are adequate to support new product needs. 

The Company's order             backlog as of September 30, 2003 totaled $1,522,000 as compared   to   $1,580,000       as of September 30, 2002 and $1,850,000 as of September     30, 2001. The   slight    decrease in fiscal 2003 is primarily due to lower    orders for indicators     and  gauges and fastening control products of  $138,000   and $291,000 respectively.       The decrease was offsetin  part  by an increase    in automotive diagnostic     products,  specifically, emissions   products   of $362,000. The decrease in   fiscal 2002 was due primarily to  lower orders    for indicators and gauges  of  $233,000. Most  of the backlog  at September    30, 2003 is expected to be  shipped  bythe end  of the current  fiscal year.   

Reportable Segment             Information

Effective September             30, 1999, the Company adopted Financial Accounting StandardsNo.    131,     Disclosures    about Segments of an Enterprise and RelatedInformation.       The  Standard requires    segment information disclosuresbased on how    management     evaluates operating    performance and resourceallocations.    The Company    has determined that it   has two reportablesegments: 1)indicators    and gauges    and 2) automotive related    diagnostictools and equipment.    

Indicators and             Gauges

This segment consists             of products manufactured and sold primarily to companies inthe    aircraft         and locomotive industry. Within the aircraft market,the    primary customers         are those companies that manufacture business and  pleasure aircraft.    Within     the locomotive market, indictors and gauges  are sold to both  original   equipment     manufacturers and tooperators    of railroad equipment.  

Automotive Diagnostic             Tools and Equipment

This segment consists      primarily        of products designed and manufactured to support the  servicing    of automotive        electronic systems. These products are sold to OEM's    and to the aftermarket        using a variety of distribution  methods. The   acquisition of Waekon Industries       in 1998 added newproducts  and distribution   sources for the aftermarket.      Included inthis segment   are fastening  control products used primarily   by   largemanufacturers   to monitor and  control the nut running process in  assembly  plants. This   equipment provides  high quality joint control and  documentation.   

Results of Operations

Sales for the fiscal             year ended September 30, 2003 declined to $11,037,946, a decrease     of   approximately     11% from fiscal 2002 sales of $12,391,642. This  decrease      in sales was volume-driven    and attributable primarilyto   lower product      sales of approximately $1,200,000.    Service salesin   fiscal 2003 decreased      by approximately $200,000 and the reductionwas   volume related  compared to fiscal  2002.    The reduction in productsales occurred   in  both the indicator and gauges,    and the automotivediagnostic  equipment    segments. The dollar  reductions    were approximately$400,000 and  $800,000   respectively. While  an emphasis    has been placedon increasing sales in the aftermarket, there  was only a  slight dollaramount increase  during  fiscal 2003. Included in  the aftermarket   areemission products, although   sales have remained flat  over the past several years it is anticipated   this  product will see a substantial  increasein fiscal 2004. In fiscal  2004 an overall increase  in product sales  isanticipated    by management, with  the greatest  increase coming   fromemissions  products. Product sales were $9,188,843 in fiscal 2003 compared   to $10,365,358  in fiscal 2002. The current level of service revenue isexpected   to continue  for fiscal 2004. 

Sales for the fiscal             year ended September 30, 2002 were $12,391,642, a decrease of  approximately         19% from fiscal 2001 sales of $15,261,149. This decrease   in sales  was   volume-driven    and attributable primarily to lower product   sales  of approximately   $2,800,000.    Service sales in fiscal 2002remained    relatively flat compared   to fiscal   2001. The reduction inproduct sales     occurred in the automotive   diagnostic   equipment segment,primarily  sales   to OEM accounts, as the  Company emphasizes   its aftermarketbusiness.   Aftermarket  sales increased  by approximately $1,000,000   infiscal 2002   for several reasons. Sales of  emissions products increased  by approximately   $600,000 and new product introductions of approximately  $400,000. 

Cost of products             sold in fiscal 2003 was $4,997,533 or 54.4% of net product sales    compared         to $5,247,825 or 50.6% of net product sales, respectively,    in fiscal  2002.      Cost of products sold during fiscal 2001 was $8,016,562    or 60.7%  of net    product   sales. The increase in the percentage of cost   of products   sold   to product   sales between fiscal 2003 and fiscal 2002   was due primarily    to a change in  product mix as sales of lower margin   automotive diagnostic    products to the  aftermarket and othermarkets represent  a larger portion    of total product   sales. The decreasein the percentage  of cost of products    sold to product   sales betweenfiscal 2002 and fiscal  2001 was due primarily    to manufacturing   cost reductions and a more favorable product mix. The cost of products   sold   percentage is expected to decrease    slightly in fiscal 2004. 

Cost of services             sold in fiscal 2003 was $1,114,269 or 60.3% of net service sales    compared         to $1,136,324 or 56.1% respectively in fiscal 2002.Cost     of services    sold     during fiscal 2001 was $1,470,011 or 71.6%of net    service sales.    The increase     in the cost of services soldas a percentage    of net service    sales between fiscal 2003 and 2002 wasdue    primarily    to a lower sales volume for chargeable repairs.    Thedecrease in   the   cost of services sold as a percentage of net services   sales between  fiscal    2002 and 2001 was primarily due to a higher sales  volume due  to price    adjustments for chargeable repairs coupled withcost   reductions   implemented    in April 2001 and lower warranty relatedcosts   associated with  the automotive    diagnostic products. The percentageof cost  of services sold   relative   to  net service sales is expectedto continue   at current levels in fiscal 2004. 

Product development             expenditures in fiscal 2003 were $1,961,901 or 21.4% of product   sales      compared    to $1,874,858 or 18.1%, respectively, in fiscal2002.   Product    development   expenditures  during fiscal 2001 were $2,343,684   or 17.7%  of  product sales.   The dollar increase between fiscal 2003and   fiscal 2002   was due primarily   to increased labor cost while thepercentage   increase   was due to lower product   sales volume in the currentfiscal  year compared   to the prior year. Fiscal   2002 benefited from anentire  year of cost reductions    which were implemented   in fiscal 2001.The 20%  decrease between fiscal   2002 and fiscal 2001 was  due primarilyto a full  year of expense reductions   implemented in April 2001  and efficiency improvements.   It is anticipated   that the amount spent on product   development will increase   modestly in  fiscal 2004 in order to continue supporting  the ongoing need   to develop  a steady flow of new diagnostic productsfor  the automotive  aftermarket.  

Marketing and administrative             expenses amounted to $4,216,551 which was 38.2% of net salesin   fiscal       2003,   $3,894,173 or 31.4% of net sales in fiscal 2002and  $4,570,170,     or  29.9%  of net sales in fiscal 2001. The dollar increase  in fiscal 2003   was due in part to higher labor costs, higher marketing     and   administrative expenses applicable to automotive product  sales,  primarily       commissions, royalties and promotional expenditures andan  expanded sales  group. The percentage of sales increase was due primarily  to   lower  net  sales during the current fiscal year. Fiscal 2002 benefited    from  an entire  year of cost reductions which were implemented during fiscal   2001.    Expenditures in fiscal 2002 were 15% lower than fiscal 2001  due to lower  marketing and administrative expenses as a result ofexpense  reduction measures  implemented in April 2001 and to a lesser extentto expenses  applicable to the closing of the Kirkwood, Pennsylvania facility     in July 2000 offset in part by an increase in commissions and royalties   associated  with certain aftermarket product sales.  The Company anticipates   that   marketing and administrative expenses will increase slightly infiscal   2004.  

Interest charges             were $3,243 in fiscal 2003 compared with $7,706 in fiscal 2002  and    $49,057       in fiscal 2001. The decrease in interest charges in fiscal   2003 compared       to fiscal 2002 was due to a reduction in employees deferred    compensation       balances and "end of lease" termination during the current    fiscal  year.    The decrease in interest charges in fiscal 2002 compared    to fiscal  2001  was  due to no short-term borrowing requirements   during fiscal  2002. 

Other income of             $49,895 in fiscal 2003 compares with other income of $30,850in   fiscal       2002.   The change was primarily due to an increase ininterest   income    on   short-term   investments as a result of positivecash flow   from operating       activities during  the current fiscal year.Other income   of $30,850 in   fiscal   2002 compares  with other incomeof $40,929 in fiscal  2001. The  change was   primarily due  to losses onfixed asset disposals   in fiscal  2002. Other income  in fiscal  2003, 2002and 2001 consisted primarily  of  interest income on short-term investmentsand discounts on purchases.  

Income taxes in             fiscal 2003 were a negative $471,000 which represents a recovery    of   income      taxes at a 39% effective tax rate.  Income taxes in   fiscal   2002 were     $17,200 which represents a 6.6% effective tax rate.   Income  taxes in fiscal     2001 were a negative $485,300 whichrepresents     a recovery  of income taxes     at a 42.3% effective tax rate. The    tax rate in fiscal 2002 was lower     than the normal tax rate of37% due    to the utilization    of prior years research    and developmenttax credits.     The recovery rate    in fiscal 2003 and 2001 exceededthe normal tax  rate   of 37% due to the   recognition of both current andprior   year research     and development tax   credits. It is anticipatedthat the effective   tax    rate in fiscal 2004 will  be consistent with2003. Management anticipates       that future business will  generate sufficienttaxable income (approximately     $3,800,000) during the carryforward  periodto fully  realize the deferred     tax benefits. The deferred tax benefits begin to expire  in 2019. 

The net loss in             fiscal 2003 was $1,773,198, or $1.45 per share which was a decrease       of   $2,017,604   compared with net income of $244,406, or $.20 per share,      in  fiscal 2002.    The net loss in fiscal 2001 was $662,106, or  $.54    per  share. The net loss   in fiscal 2003 includes a $1,038,542 (net  of tax) charge from   a change in accounting for  goodwill, resulting from  the adoption of SFAS   No. 142 in October 2002. The  remaining netloss of  $734,656 is primarily   the result of lower sales due  to the economic  climate  in the aircraft and   automotive   markets. The change  in fiscal  2002 versus   fiscal 2001 was primarily  due  to improved gross product and service margins   and cost reduction measures.      

Liquidity and             Capital Resources

Current assetsof $7,533,629 at September 30, 2003 were 8.2 times current liabilities andthe total of cash, short-term investments and receivables was 4.4 times current      liabilities. These ratios compare to 8.2 and 4.4 respectively at the end    of fiscal 2002. Total current assets were down approximately $1,260,000   from   the previous year end due primarily to a decrease in accounts receivable,      inventory and refundable    income taxes of approximately $723,000,$298,000      and $253,000 respectively.    The decrease was offset in partby a net   increase   in cash and short-term investments of approximately $104,000.  The decrease   in accounts receivable   and inventory was dueprimarily to  improved  collection   activities, lower   sales volume, andmanagement's  emphasis on inventory  reductions. 

Working capital             at September 30, 2003 was $6,611,140 as compared to $7,720,012  a  year     ago.    The decrease was due primarily to a decrease in accounts    receivable,     inventory and refundable income taxes of approximately $723,000,   $298,000     and $253,000 respectively, offset by  a net increase  in cash   and short-term     investments of approximately $104,000  anda reduction    in current liabilities     of approximately $150,000. 

During the fiscal             year the Company's business may require an increase in inventory    of   work-in-process      and finished goods in order to meet anticipated    delivery   schedules. Whenever      there may be a requirement to increase    inventory   in fiscal 2004 there  will    be a negative but temporaryimpact    on liquidity.   The Company believes  that    internally generatedfunds   and a $1,000,000   revolving line of credit  will    provide sufficient liquidity   to meet ongoing   working capital requirements.      

Internally generated             funds in fiscal 2003 were $243,857 and were adequate to fundthe    Company's         primary non-operating cash requirements consistingof  capital  expenditures         of $129,976 and debt payments of $11,334.The  primary  reason for the    positive   cash flow from operationswas the reductions  in accounts receivable    and   inventory,  and the receipt of refundable  income taxes. Internally   generated   funds in  fiscal 2002 were $1,924,625  and were adequate to fund   the Company's   primary  non-operating  cash requirements  consisting of capital   expenditures   of $206,534and   debt payments of $37,575. The primary reason   for the positive   cashflow    from operations was net income of $244,406  and the reduction in accounts   receivable and inventory. In fiscal 2001 internally   generatedfunds  were   $1,083,049 and were adequate to fund the Company's  primarynon-operating     cash requirements consisting of capital expenditures  anddebt payments   of   $131,289 and $702,699 respectively. The primary reason  for the positive   cash  flow in fiscal 2001 was the reduction in inventory.  The Company  expects  internally generated funds in fiscal 2004 from operating  activities   to be  adequate to fund approximately $240,000 of capitalexpenditures.   Most of the capital expenditures will be made to upgradeinformation technology       and manufacturing equipment. 

In February 2003             the Company renewed its credit agreement with its financiallender.        The    agreement  expires in February 2004 and provides fora secured    revolving       credit facility  of $1,000,000 with interestat the prime    commercial  rate.     Throughout fiscal  2003 the Companyhad no outstanding    balance under this     loan facility. The  agreementis secured by the Company's   accounts receivable,     inventory, equipment and general intangibles.  The  credit agreement contains     affirmativecovenant  requirements related   to working capital and tangible     networth minimums of  $6,500,000 and   $9,000,000 respectively. The revolving    credit facility is subject to  annual review by the Company's lender.Although  no determination has been  made to seek renewal of the creditagreement, the Company believes that,  given its current financial condition,   renewal at the existing amount can be obtained on acceptable terms. 

Off-Balance SheetArrangements

Hickok has no off-balance sheet arrangements (as defined in Regulation S-K Item 303 paragraph (a)(4)(ii)) that have or are reasonably likely to have a material current or future effect on its financial condition, changes in financial condition, revenues orexpenses,  results of operations, liquidity, capital expenditures or capitalresources.

Critical Accounting              Policies

The Company describes      its        significant accounting policies in the notes to the consolidated      financial        statements included in the Company's Annual Reporton   Form   10-K. However,        In response to the SEC's Release No. FR-60,  "Cautionary   Advice Regarding       Disclosure About Critical Accounting  Policies", issued   December 12, 2001,      the Company has identifiedthe   policies it believes   are most critical   to   an understanding ofthe Company's  financial statements.   Since application       of these accountingpolicies  involves the exercise   of judgement and use    of  estimates,actual results  could differ from those  estimates. 

Revenue Recognition             - Revenue is recognized as manufactured items are shipped tocustomers,           legal  title has passed, and all significant contractualobligations      of   the  Company  have been satisfied. Revenue from developmentcontracts      is  recorded  as agreed  upon milestones are achieved. 

Inventory Valuation             and Reserves - Inventories are valued at the lower of cost or market       using     the first-in, first-out (FIFO) method. The Company's business     may  require     an increase in inventory of component parts, work-in-process      and finished     goods in order to meet anticipateddelivery schedules   of   customers. However,     we are responsible forexcess and obsolete inventory     purchases in excess    of inventory neededto meet customer demand forecasts,     as well as inventory     purchasesgenerally not covered by supply agreements,     or parts that becomeobsolete before use in production. If our forecasts      change or excessinventory     becomes obsolete, the inventory reserves    included  in ourfinancial statements     may be understated. 

Deferred Taxes- Deferred income taxes are provided for temporary differences between financial             and tax reporting in accordance with the provisions of Financial    Accounting         Standards Board Statement No. 109, "Accounting forIncome    Taxes." Significant        factors considered by the Company inestimating    the probability of the    realization   of deferred taxes includeexpectations    of future earnings   and  taxable income,   as well as applicationof tax    laws in the jurisdictions     in which the Company   operates.

The Company does             not have off-balance sheet arrangements, financing, or otherrelationships             with unconsolidated entities or persons, also knownas "special   purpose        entities"  (SPEs). 

Impact of Inflation

In recent years,             inflation has had a minimal effect on the Company because oflow    rates      of   inflation and the Company's policy minimizing theacceptance    of long-term        fixed rate contracts without provisionspermitting adjustment    for inflation.        

Forward-Looking             Statements

The foregoing discussion             includes forward-looking statements relating to the businessof   the    Company.      These forward-looking statements, or other statements   made   by the Company,      are made based on management's expectations and  beliefs    concerning future      events impacting the Company andare  subject  to uncertainties   and factors      (including, but not limitedto, those  specified below)which   are difficult      to predict and, inmany instances,  are beyond the control   of the Company.      As a result,actual results  of the Company could differ   materially from    those  expressed in or implied  by any such forward-looking   statements. These   uncertainties  and factors  include (a) the Company's  dependence upon a limited   number  of  customers,  including Ford Motor Company,  (b) the  highly competitive    industry  in  which the Company operates, which  includes  several competitors    with greater   financial resources and larger  sales organizations, and  (c)  the acceptance   in the marketplace of new products   and/or services  developed  or under  development  by the Company including   automotivediagnostic  products,   fastening systems  products and indicating   instrumentproducts,  and (d)  the  ability of the Company  to further establish   distribution  and a customer   base in the automotive aftermarket,  and (e)   the Company's  ability to capitalize   on market opportunities.

----

**ITEM 7A. QUANTITATIVE       AND QUALITATIVE DISCLOSURES ABOUT      MARKET RISK**

The Company isexposed to certain market risks from transactions that are entered into duringthe normal course of business. The Company has not entered into derivativefinancial instruments for trading purposes. The Company's primary marketrisk exposure relates to interest rate risk. The Company's only debt subjectto interest rate risk is its revolving credit facility. The Company has abalance of $-0- on its revolving credit facility at September 30, 2003, whichis subject to a variable rate of interest based on the prime commercial rate.As a result, the Company believes that the market risk relating to interestrate movements is minimal.

**ITEM 8. FINANCIAL    STATEMENTS    AND SUPPLEMEMTARY DATA**

The following pages    contain the Financial Statements and Supplementary Data as specifiedfor    Item 8 or Part II of Annual Report on Form 10-K.

----

**INDEPENDENT AUDITORS'        REPORT**

**SHAREHOLDERS AND BOARD             OF DIRECTORS****HICKOK INCORPORATED****CLEVELAND, OHIO**

We have audited             the accompanying consolidated balance sheets of HICKOK INCORPORATED       as   of   September 30, 2003 and 2002, and the related consolidated statements         of income,  stockholders' equity and cash flows for each of the three     years    in the period  ended September 30, 2003. Thesefinancial statements     are  the  responsibility  of the Company's management.Our responsibility     is to  express  an opinion on these financial statements based on our audits.     

We conducted our             audits in accordance with auditing standards generally accepted   in   the    United   States of America. Those standards require that we plan   and  perform    the audit  to obtain reasonable assurance that the financial   statements    are  free from  material misstatement. An audit includes examining,   on a  test basis, evidence  supporting the amountsand disclosures in the   financial   statements. An audit  also includes assessingthe accounting  principles used  and significant estimates  made by management,as well as  evaluating the overall financial statement  presentation. Webelieve that  our audits provide a reasonable basis for our  opinion. 

In our opinion,             the financial statements referred to above present fairly, in all    material        respects, the consolidated financial position of Hickok   Incorporated     as   of  September 30, 2003 and 2002, and the consolidated   results of their    operations     and their cash flows for each of the three  years in the period   ended September     30, 2003 in conformitywith  accounting   principles generally    accepted in   the  United Statesof America.

As required by SFASNo. 142 and discussed in  note 10 to the financial statements, the Company       changed its method of accounting      for goodwill in 2003.  /s/ Meaden & Moore, Ltd.

**MEADEN &             MOORE, Ltd.****CERTIFIED PUBLIC ACCOUNTANTS**

**NOVEMBER 26,       2003****CLEVELAND, OHIO**

**F-1**

----

**CONSOLIDATED BALANCE SHEET****HICKOK INCORPORATED****SEPTEMBER 30**

**ASSETS**

|                                                       | **2003**                                                  | **2002**    |
|-------------------------------------------------------|-----------------------------------------------------------|-------------|
|                                                       |                                                           |
| **CURRENT             ASSETS:**                       |                                                           |             |
| Cash and             cash equivalents                 | $1,347,971                                                | $2,261,774  |
| Short-term investments                                | 1,018,000                                                 | -           |
| Accounts             receivable-less allowance for    | 1,697,549                                                 | 2,420,614   |
|                                                       | doubtful             accounts of $124,000 ($46,000, 2002) |
| Inventories-less        allowance for obsolete        | 3,291,328                                                 | 3,589,543   |
|                                                       | inventory             of $78,000 ($31,500, 2002)          |
| Deferred             income taxes                     | 131,400                                                   | 231,000     |
| Prepaid expenses                                      | 47,381                                                    | 36,691      |
| Refundable             income taxes                   | -                                                         | 253,000     |
|                                                       |                                                           |
|                                                       | **Total             Current Assets**                      | 7,533,629   | 8,792,622 |
|                                                       |                                                           |             |
|                                                       |                                                           |             |
| **PROPERTY,             PLANT AND EQUIPMENT:**        |                                                           |             |
| Land                                                  | 229,089                                                   | 229,089     |
| Buildings                                             | 1,478,629                                                 | 1,486,969   |
| Machinery             and equipment                   | 2,600,444                                                 | 2,634,766   |
|                                                       |                                                           |
|                                                       | 4,308,162                                                 | 4,350,824   |
| Less accumulated depreciation                         | 3,042,178                                                 | 2,888,756   |
|                                                       |                                                           |
|                                                       | 1,265,984                                                 | 1,462,068   |
|                                                       |                                                           |             |
| **OTHER             ASSETS:**                         |                                                           |             |
| Goodwill-less             accumulated amortization of | -                                                         | 1,574,542   |
|                                                       | $-0-($575,545,             2002)                          |
| Deferred             income taxes                     | 1,578,700                                                 | 472,100     |
| Deposits                                              | 1,750                                                     | 2,050       |
|                                                       |                                                           |
|                                                       | 1,580,450                                                 | 2,048,692   |
|                                                       |                                                           |
|                                                       |                                                           |             |
|                                                       | **Total             Assets**                              | $10,380,063 | $12,303,382 |
|                                                       |                                                           |

              See accompanying summary of accounting policies and notes to financial          statements.  **F-2**

----

**LIABILITIES AND STOCKHOLDERS' EQUITY**

|                                                               | **2003**                                                   | **2002**    |             |   |  |   |  |
|---------------------------------------------------------------|------------------------------------------------------------|-------------|-------------|---|--|---|--|
|                                                               |                                                            |             |             |   |  |   |
| **CURRENT             LIABILITIES:**                          |                                                            |             |             |   |  |   |  |
| Short-term             financing                              |                                                            | $           |             | - |  | $ |  | - |  |  |  |  |  |
| Current portionof capitalized lease payable                   | -                                                          | 11,334      |             |   |  |   |  |
| Accounts             payable                                  | 294,216                                                    | 374,024     |             |   |  |   |  |
| Accrued payrolland related expenses                           | 249,051                                                    | 350,039     |             |   |  |   |  |
| Accrued expenses                                              | 132,675                                                    | 91,416      |             |   |  |   |  |
| Accrued taxesother than income                                | 89,613                                                     | 86,997      |             |   |  |   |  |
| Accrued incometaxes                                           | 156,934                                                    | 158,800     |             |   |  |   |  |
|                                                               |                                                            |             |             |   |  |   |
|                                                               | **Total             Current Liabilities**                  | 922,489     | 1,072,610   |   |  |   |  |  |
|                                                               |                                                            |             |             |   |  |   |  |
|                                                               |                                                            |             |             |   |  |   |  |
|                                                               |                                                            |             |             |   |  |   |  |
|                                                               |                                                            |             |             |   |  |   |  |
| **STOCKHOLDERS'             EQUITY:**                         |                                                            |             |             |   |  |   |  |
| Common shares              - par value $1.00                  |                                                            |             |             |   |  |   |  |
| Class A 3,750,000shares authorized, 774,470                   | 764,884                                                    | 764,884     |             |   |  |   |  |
|                                                               |                                                            |             |             |   |
|                                                               | shares issued                                              |
| Class B 1,000,000convertible shares authorized,               | 454,866                                                    | 454,866     |             |   |  |   |  |
|                                                               |                                                            |             |             |   |
|                                                               | 475,533 sharesissued                                       |
| Contributed             capital                               | 1,603,848                                                  | 1,603,848   |             |   |  |   |  |
| Treasury             shares - 9,586 Class A shares and 20,667 | (605,795)                                                  | (605,795)   |             |   |  |   |  |
|                                                               |                                                            |             |             |
|                                                               | Class B shares                                             |
| Retained             earnings                                 | 7,239,771                                                  | 9,012,969   |             |
|                                                               |                                                            |             |
|                                                               | **Total             Stockholders' Equity**                 | 9,457,574   | 11,230,772  |   |
|                                                               |                                                            |             |
|                                                               | **Total             Liabilities and Stockholders' Equity** | $10,380,063 | $12,303,382 |   |
|                                                               |                                                            |             |             |

**F-3**

----

**CONSOLIDATED STATEMENT             OF INCOME****HICKOK INCORPORATED****FOR THE YEARS ENDED SEPTEMBER 30**

|                                                                     | **2003**                                                                   | **2002**     | **2001**    |
|---------------------------------------------------------------------|----------------------------------------------------------------------------|--------------|-------------|
| **NET SALES:**                                                      |                                                                            |              |             |
| Product sales                                                       | $9,188,843                                                                 | $10,365,358  | $13,209,191 |
| Service sales                                                       | 1,849,103                                                                  | 2,026,284    | 2,051,958   |
|                                                                     |                                                                            |
|                                                                     | **Total             Net Sales**                                            | 11,037,946   | 12,391,642  | 15,261,149 |
|                                                                     |                                                                            |              |             |
| **COSTS             AND EXPENSES:**                                 |                                                                            |              |             |
| Cost of productsold                                                 | 4,997,533                                                                  | 5,247,825    | 8,016,562   |
| Cost of servicessold                                                | 1,114,269                                                                  | 1,136,324    | 1,470,011   |
| Product development                                                 | 1,961,901                                                                  | 1,874,858    | 2,343,684   |
| Marketing             and administrative                            | 4,216,551                                                                  | 3,894,173    | 4,570,170   |
|                                                                     | expenses                                                                   |
| Interest             charges                                        | 3,243                                                                      | 7,706        | 49,057      |
| Other (income)             expense                                  | (49,895)                                                                   | (30,850)     | (40,929)    |
|                                                                     |                                                                            |
| **Total             Costs and Expenses**                            | 12,243,602                                                                 | 12,130,036   | 16,408,555  |
|                                                                     |                                                                            |
|                                                                     | **Income             (Loss) before Provision for Income Taxes**            | (1,205,656)  | 261,606     | (1,147,406) |
| **Provision For (Recovery             Of)**                         |                                                                            |              |             |
| ****                                                                | **Income Taxes:**                                                          |              |             |  |
| Current                                                             | -                                                                          | (25,000)     | (255,200)   |
| Deferred                                                            | (471,000)                                                                  | 42,200       | (230,100)   |
|                                                                     |                                                                            |
|                                                                     | (471,000)                                                                  | 17,200       | (485,300)   |
|                                                                     |                                                                            |
| Income(Loss) before                                                 |                                                                            |              |             |
|                                                                     | cumulative effect of change           in accounting principle              | (734,656)    | 244,406     | (662,106) |
| Cumulative             effect of change                             |                                                                            |              |             |
|                                                                     | in accounting for goodwill,           net of tax of $536,000               | (1,038,542)  | -           | - |
|                                                                     |                                                                            |
|                                                                     | **Net Income (Loss)**                                                      | $(1,773,198) | $244,406    | $(662,106) |
|                                                                     |                                                                            |
| Income(Loss) per Common                                             |                                                                            |              |             |
|                                                                     | share before cumulative           effect of change in accounting principle | $(.60)       | $.20        | $(.54) |
| Cumulative effect of change                                         |                                                                            |              |             |
|                                                                     | in accounting for goodwill                                                 | (.85)        | -           | - |
|                                                                     |                                                                            |
|                                                                     | **NET INCOME (LOSS) PER           COMMON SHARE - BASIC AND DILUTED**       | $(1.45)      | $.20        | $(.54) |
|                                                                     |                                                                            |
| **WEIGHTED             AVERAGE SHARES OF COMMON STOCK OUTSTANDING** | 1,219,750                                                                  | 1,219,750    | 1,218,374   |
|                                                                     |                                                                            |

              See accompanying summary of accounting policies and notes to financial          statements.  **F-4**

----

**CONSOLIDATED STATEMENT OF STOCKHOLDERS'             EQUITY****HICKOK INCORPORATED****FOR THE YEARS ENDED SEPTEMBER 30, 2003, 2002,  AND   2001**

|                                      |                          | **COMMON STOCK -****$1.00 PAR VALUE** |             |
|--------------------------------------|--------------------------|---------------------------------------|-------------|
|                                      | **RETAINED****EARNINGS** | **CLASS A**                           | **CLASS B** | **CONTRIBUTED****CAPITAL** | **TREASURY****SHARES** | **TOTAL** |
|                                      |                          |                                       |             |  |  |  |
| **Balance             at September** | $9,430,669               | $762,884                              | $454,866    | $1,599,598 | $(605,795) | $11,642,222 |
| **30, 2000**                         |
|                                      |                          |                                       |             |  |  |  |
| Sale of ClassA shares                | -                        | 2,000                                 | -           | 4,250 | - | 6,250 |
|                                      | under option             |
| Net Loss                             | (662,106)                | -                                     | -           | - | - | (662,106) |
|                                      |                          |                                       |
|                                      |                          |                                       |             |  |  |  |
| **Balance             at September** |                          |                                       |             |  |  |  |
| **30, 2001**                         | 8,768,563                | 764,884                               | 454,866     | 1,603,848 | (605,795) | 10,986,366 |
|                                      |                          |                                       |             |  |  |  |
| Net Income                           | 244,406                  | -                                     | -           | - | - | 244,406 |
|                                      |                          |                                       |
|                                      |                          |                                       |             |  |  |  |
| **Balance             at September** | 9,012,969                | 764,884                               | 454,866     | 1,603,848 | (605,795) | 11,230,772 |
| **30, 2002**                         |
|                                      |                          |                                       |             |  |  |  |
| Net Loss                             | (1,773,198)              | -                                     | -           | - | - | (1,773,198) |
|                                      |                          |                                       |
|                                      |                          |                                       |             |  |  |  |
| **Balance             at September** | $7,239,771               | $764,884                              | $454,866    | $1,603,848 | $(605,795) | $9,457,574 |
| **30, 2003**                         |
|                                      |                          |                                       |

**F-5**

----

**CONSOLIDATED STATEMENT OF CASH FLOWS****HICKOK INCORPORATED****FOR THE YEARS ENDED SEPTEMBER 30**

|                                                                                                | **2003**     | **2002**     | **2001**     |
|------------------------------------------------------------------------------------------------|--------------|--------------|--------------|
|                                                                                                |              |
| **CASH             FLOWS FROM OPERATING ACTIVITIES:**                                          |              |              |              |
| Cash received             from customers                                                       | $11,761,011  | $13,161,958  | $15,090,973  |
| Cash paid             to suppliers and employees                                               | (11,793,871) | (11,300,956) | (14,175,409) |
| Interest             paid                                                                      | (3,243)      | (7,706)      | (52,828)     |
| Interest             received                                                                  | 28,826       | 26,841       | 8,803        |
| Income taxes              refunded                                                             | 251,134      | 44,488       | 211,510      |
|                                                                                                |              |
| **Net CashProvided by Operating Activities**                                                   | 243,857      | 1,924,625    | 1,083,049    |
|                                                                                                |              |              |              |
| **CASH             FLOWS FROM INVESTING ACTIVITIES** :                                         |              |              |              |
| Capital expenditures                                                                           | (129,976)    | (206,534)    | (131,289)    |
| Change in              deposits                                                                | 300          | -            | -            |
| Proceeds             on sale of assets                                                         | 1,350        | 4,594        | 7,800        |
| Purchase of short-terminvestments                                                              | (2,069,935)  | -            | -            |
| Sale of short-terminvestments                                                                  | 1,051,935    | -            | -            |
|                                                                                                |              |
| **Net Cash Used in Investing Activities**                                                      | (1,146,326)  | (201,940)    | (123,489)    |
|                                                                                                |              |              |              |
| **CASH             FLOWS FROM FINANCING ACTIVITIES:**                                          |              |              |              |
| Short-term             borrowings                                                              | -            | -            | 1,725,000    |
| Payments             on short-term borrowings                                                  | -            | -            | (2,393,000)  |
| Decrease             in long-term liabilities                                                  | (11,334)     | (37,575)     | (34,699)     |
| Sale of ClassA shares under option                                                             | -            | -            | 6,250        |
|                                                                                                |              |
| **Net CashProvided by (Used in) Financing Activities**                                         | (11,334)     | (37,575)     | (696,449)    |
|                                                                                                |              |
|                                                                                                |              |              |              |
| **Increase             (Decrease) in Cash and Cash Equivalents**                               | (913,803)    | 1,685,110    | 263,111      |
|                                                                                                |              |              |              |
| **Cash             and Cash Equivalents at Beginning of Year**                                 | 2,261,774    | 576,664      | 313,553      |
|                                                                                                |              |
| **Cash             and Cash Equivalents at End of Year**                                       | $1,347,971   | $2,261,774   | $576,664     |
|                                                                                                |              |
|                                                                                                |              |              |              |
| See accompanying             summary of accounting policies and notes to financial statements. |

**F-6**

----

|                                                                                            | **2003**                                                                                          | **2002**                | **2001**   |
|--------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-------------------------|------------|
|                                                                                            |                                                                                                   |
| **RECONCILIATION             OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:** |                                                                                                   |                         |            |
|                                                                                            |
| Net Income             (Loss)                                                              | $(1,773,198)                                                                                      | $244,406                | $(662,106) |
|                                                                                            | **ADJUSTMENTS             TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:** |                         |            |  |
|                                                                                            | Depreciation             and amortization                                                         | 313,693                 | 468,395    | 561,399 |
|                                                                                            | Cumulative effect of change             in                                                        |                         |            |  |
|                                                                                            |                                                                                                   | accounting for goodwill | 1,574,542  | - | - |
|                                                                                            | Loss on disposalof assets                                                                         | 11,017                  | 16,428     | 991 |
|                                                                                            | Deferred             income taxes                                                                 | (1,007,000)             | 42,200     | (230,100) |
|                                                                                            | **CHANGES             IN ASSETS AND LIABILITIES:**                                                |                         |            |  |
|                                                                                            | Decrease             (Increase) in accounts receivable                                            | 723,065                 | 770,316    | (170,176) |
|                                                                                            | Decrease             (Increase) in inventories                                                    | 298,215                 | 404,804    | 1,865,870 |
|                                                                                            | Decrease             (Increase) in prepaid expenses                                               | (10,690)                | 14,540     | (16,623) |
|                                                                                            | Decrease             (Increase) in refundable income                                              | 253,000                 | 44,538     | (35,705) |
|                                                                                            | taxes                                                                                             |
|                                                                                            | Increase             (Decrease) in accounts payable                                               | (79,808)                | 59,861     | (87,643) |
||
|                                                                                            | Increase             (Decrease) in accrued payroll and                                            | (100,988)               | (13,794)   | (79,813) |
|                                                                                            | related expenses                                                                                  |
|                                                                                            | Increase             (Decrease) in other accrued                                                  | 43,875                  | (102,019)  | (55,060) |
|                                                                                            | expenses            and  accrued taxes other than income                                          |
||
|                                                                                            | Increase             (Decrease) in accrued income taxes                                           | (1,866)                 | (25,050)   | (7,985) |
|                                                                                            |                                                                                                   |                         |
|                                                                                            | Total Adjustments                                                                                 | 2,017,055               | 1,680,219  | 1,745,155 |
|                                                                                            |                                                                                                   |                         |
|                                                                                            |                                                                                                   | $243,857                | $1,924,625 | $1,083,049 |
| **Net CashProvided by Operating Activities**                                               |
|                                                                                            |                                                                                                   |

**F-7**

----

**F-8**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS****HICKOK INCORPORATED****SEPTEMBER 30, 2003, 2002 AND 2001**

**1. NATURE OF OPERATIONS**

 Hickok Incorporated             and its wholly-owned domestic subsidiaries ("Company") develop  and    manufacture       products used by companies in the transportation  industry.    Among the  products     are indicators and gauges sold to companies  in aircraft   and locomotive  markets.   On a much larger scale, the Company   manufactures   diagnostic equipment  used   by automotive techniciansto   test the various   electronic systems in  automobiles.   Also withinthe  automotive segment,  the Company manufactures  equipment to  controlthe nut running process in  assembly plants. The Company  serves the  automotive, locomotive and general  aviation markets predominately  in North  America. Sales in the Company's  principal product classes, as a  percent of  consolidated sales, are as follows:  

**Product Classes**

**2003**

**2002**

**2001**

 Automotive              Test Equipment 

 78.5 

 %           

 76.8 

 %           

 68.3 

 %           

 Fastening              Systems 

 5.8 

 5.5 

 13.9 

 Indicating              Instruments 

 13.0 

 15.1 

 14.7 

 Other              Product Classes 

 2.7 

 2.6 

 3.1 

**Total**

 100.0 

 %           

 100.0 

 %           

 100.0 

 %           

 Current operating             properties consist of a manufacturing plant in Greenwood, Mississippi,         and    a corporate headquarters, marketing and product development  facility       in  Cleveland,  Ohio. 

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Principles             of Consolidation**:***                            The consolidated financial statements includethe   accounts     of  Hickok    Incorporated  and its wholly-owned domesticsubsidiaries    since   date of acquisition.   Significant  intercompany transactionsand    balances   have been eliminated  in the financial  statements. 

*Concentration              of Credit Risk :*                            The Company sells its products and services primarily    to  customers      in  the  United States of America and to a lesser extent    overseas.  All   sales   are made  in United States of America dollars.  The  Company extends   normal   credit terms  to its customers. Customers  in the  automotive industry (primarily      original  equipment manufacturers)   comprise  38% of outstanding receivables      at September  30, 2003 (40%   in 2002).  Sales to two customers approximated      $2,200,000 and $840,000   (2003),$3,000,000   and $1,100,000 (2002), $5,100,000      and $1,900,000   (2001). The Company  establishes  an allowance for doubtful      accounts   based upon factors surrounding  the credit  risk of specific customers,     historical trends and other information.   

*Use of Estimates             in the Preparation of Financial Statements :*                            The preparation of financial statements in conformity    with   generally      accepted  accounting principles requires management    to make   estimates  and    assumptions  that may affect the reportedamounts    of certain   assets  and  liabilities  and  disclosure of contingencies  at  the date of   the financial    statements,  and the reported amounts of revenue  and expenses   during the   reporting period.  Actual results could differ  from those estimates.   

*Revenue Recognition              :*                            The Securities and Exchange Commission (SEC)issued    Staff    Accounting      Bulletin  (SAB) 101, "Revenue Recognitionin Financial    Statements,"   in   December   1999.  The SAB summarizescertain of the  SEC  staff's views   in  applying generally    accepted accountingprinciples   to revenue recognition    in financial statements.    The Companyperformed   a review of its revenue    recognition policies and determined  that they   are in compliance with SAB   101. 

 The Company records              sales as manufactured items are shipped to customers. Revenue  from     development      contracts represent agreements to provide training  related     programs to   technicians   and engineers and are recordedas   service revenue.    Revenue  from these contracts   is recognized asagreed   upon milestones  are  achieved.  The customer does not  have a rightto return   merchandise  unless  defective  or warranty related and  thereare no formal   customer acceptance  provisions.   The Company warrantscertain products   against defects for periods ranging   primarily from 12to  36 months. Charges   against income for warranty expense   and salesreturns and allowances were   immaterial during each of the three   yearsin the period ending September   30, 2003. 

*Product Development              Costs :*                            Product development costs, which include engineering    production      support,     are expensed as incurred. Research and development    performed      for customers     represents no more than 1% of salesin   each  year. The    arrangements  do not    include a repayment obligation  by the  Company. 

*Cash and Cash             Equivalents**:*                            For purposes of the Statement of Cash Flows,the   Company     considers      all   highly liquid debt instruments purchased  with a maturity     of three    months   or less to be cash equivalents. From time to time  the   Company maintains    cash   balances in excessof  the FDIC limits. The cash   balance at September    30,  2003 amountedto  $1,393,127.

*Short-term Investments**:*                            Investments are comprised of short-term corporate  notes,    are   considered     as held-to-maturity and are carried at cost,  which  approximates     the market   value.

*Inventories :*                            Inventories are valued at the lower of cost (first-in,     first-out)      or  market  and consist of: 

|                                               | **2003**   | **2002**   |
|-----------------------------------------------|------------|------------|
|                                               |            |
| Raw materials             and component parts | $2,287,708 | $2,300,401 |
| Work-in-process                               | 330,299    | 558,406    |
| Finished             products                 | 673,321    | 730,736    |
|                                               |            |
|                                               |            |            |
|                                               | $3,291,328 | $3,589,543 |
|                                               |            |

*Property, Plantand Equipment :*                            Property, plant and equipment are carried atcost.    Maintenance       and   repair   costs are expensed as incurred.Additions    and betterments      are capitalized.     The depreciation policyof the   Company is generally     as follows: 

-  
**Class**

**Method**

**Estimated Useful             Lives**

 Buildings                       

 Straight-line                       

 10 to              40 years 

 Machinery             and equipment 

 Straight-line                       

 3 to             10 years 

 Tools             and dies 

 Straight-line                       

 3 years                       
 

                            Depreciation, including depreciation on capitalized   leases,     amounted     to  $313,693(2003), $355,830 (2002), and $437,955   (2001).  

*Valuation of             Long-Lived Assets :*                            Long-lived assets such as property, plant andequipment,      goodwill,      patents   and software are reviewed for impairmentwhenever      events or  changes    in circumstances   indicate that the carryingamount      may not be  recoverable.    If the total of   the expected futureundiscounted      cash flows  is less than    the carrying amount   of theasset, a loss   is   recognized for the difference    between the fair value  and carrying   value   of the asset. 

*Intangible Assets             :*                            Goodwill is the excess of the purchase priceover   the   fair   value    of  net  identifiable assets acquired in businesscombinations    accounted     for  as a  purchase. Prior to adoption of SFASNo. 142 in  the  first quarter     of  fiscal  2003, the Company amortizedgoodwill on  a straight-line  basis     over  15 to 20 years. Amortizationof intangibles   amounted to $-0-  (2003),     $112,565  (2002)  and $123,444(2001). 

*Shipping and Handling            Costs :*                         Shipping and handling costs are classified as cost of  product     sold.    

*Advertising Costs :*                            Advertising costs are expensed as incurred and amounted     to  $143,496     (2003),   $135,724 (2002) and $214,650 (2001). 

*Income Taxes             :*                            The Company records income taxes under the provisions    of  Financial      Accounting   Standards Board Statement No. 109, "Accounting      for Income   Taxes."   

*Income per Common             Share :*                            Income per common share information is computed on  the   weighted     average    number of shares outstanding during each period  as  disclosed   in  note 8.  

*Adoption of NewAccounting Standards :*                        In July 2001, the  Financial Accounting StandardsBoard    issued    SFAS   No.   142, Goodwill and Other Intangible Assets.  SFAS  No. 142   requires   that   goodwill and intangible  assets with indefinite   useful   lives no longer   be   amortized, but instead be  tested for impairment   at  least annually in  accordance   with its' provisions.  The Companyadopted     the provisions of  SFAS No. 142   effective October 1, 2002.Additional   information   is disclosed   in note 10.   In December 2002,the FinancialAccounting Standards          Board issued SFAS No. 148, Accounting for Stock-BasedCompensation   -  Transition     and Disclosure. This statement is intendedto encourage   more  companies   to  adopt the fair value method of accountingand amends   the disclosure requirements    of SFAS No. 123, Accounting forStock-Based   Compensation to require more    prominent disclosure in bothannual and interim  financial   statements. The    Company follows the "disclosureonly" provisions  of SFAS   No. 123, thus the   adoption of SFAS No. 148in March 2003 did not affect   the Company's results   of operations, financialposition or liquidity. Pro  forma information is  presented in note 5. 

In August 2001,             The Financial Accounting Standards Board issued SFAS No. 144, Accounting           for the Impairment or Disposal of Long-Lived Assets. This statement     addresses       financial accounting and reporting for the impairment or   disposal of  long-lived     assets. This statement supersedes FASB Statement    No. 121. The Company adopted   the provisions of SFAS No. 144 effective  October  1, 2002. The adoption of   SFAS No. 144 did notimpact  the Company's  results    of operations, financial    position orliquidity.  

In June 2002, the             Financial Accounting Standards Board issued SFAS No. 146, Accounting        for    Costs Associated with Exit or Disposal Activities. SFAS No. 146    requires      companies to recognize costs associated with exit or disposal    activities     when they are incurred rather than at the date of a commitment    to an exit     or disposal plan for activities initiated after December  31,  2002. The  Company   adopted the provisions of SFASNo. 146 effective  January  1, 2003.  During  2003, the Company had no exitor disposal activities.

In April 2003, The Financial Accounting            Standards Board issued SFAS No. 149, Amendment to Statement 133  on   Derivative       Instruments and Hedging Activities. SFAS No. 149 amends    and clarifies   the    financial accounting and reporting for derivative   instruments, including      certain derivative instruments embedded inother   contracts and for hedging      activities under SFAS No. 133, Accounting  for Derivative Instruments and    Hedging Activities. This statement iseffective   for hedging relationships     designated and contracts enteredinto or modified   after June 30, 2003,  except   for the provisions thatrelate to SFAS No.   133 Implementation Issues,  which   will continue tobe applied in accordance   with their respective dates.  Upon   adoptionof SFAS No. 149 the Company   had no derivatives, thus no impact   on  ourconsolidated financial statements.   

In May 2003, the Financial Accounting Standards            Board issued SFAS No. 150, Accounting for Certain Financial Instruments         with  Characteristics of Both Liabilities and Equity. SFAS No. 150  establishes        accounting  standards for the classification and measurement  of certain      financial  instruments  with characteristics of both liabilities  and equity.     The Company  has no financial  instruments with characteristics    of both  liabilities   and  equity, thus the July 1, 2003 adoption ofthe    provisions  of SFAS No.   150 did not affect the Company's results of operations, financialposition or liquidity.

In November 2002,            the     Financial        Accounting Standards Board issued InterpretationNo. 45,    Guarantor's   Accounting     and Disclosure Requirements for Guarantees,   including Indirect   Guarantees     of Indebtedness of Others. Interpretation No.45 supersedes Interpretation        No.    34,   Disclosures   of Indirect Guarantees of Indebtedness of Others,     and provides   guidance on  the recognition and disclosures to be made  by   a guarantor in   its interim  and annual financial statements about its obligations  under  certain guarantees.   The disclosure requirements are effective for  financial  statements for interim   or annual periodsending after December  15, 2002.  The Company adopted Interpretation   No.45 in the first quarter  of fiscal  2003. Upon adoption of Interpretation  No. 45 the Company did  not have any  guarantees other than product warranties,     including indirect  guarantees  of indebtedness of others, thus no impact   on  our consolidated  financial statements.

In January 2003, the Financial Accounting            Standards Board issued Interpretation No. 46, Consolidation of Variable         Interest Entities. The Interpretation addresses the consolidation  of   variable     interest entities, more commonly referred to as special  purpose   entities.     The interpretation immediately applies to entities  created  after January    31, 2003, and after July 1, 2003 for existingvariable  interest   entities.    The Company has no variable interest entities,thus  the July   1, 2003 adoption     of the provisions of InterpretationNo. 46  did not affect the Company's results of operations, financialposition or liquidity.     

*Reclassifications :*                            Certain prior year amounts have been reclassified  to  conform     with   current    year presentation. 

**3. SHORT-TERM             FINANCING**

The Company has a secured             credit agreement of $1,000,000 with its financial lender. The agreement          expires  in February 2004 and provides for a revolving credit facility       of   $1,000,000  with interest at the bank's primecommercial rate. The    agreement     is secured  by the Company's accountsreceivable, inventory,     equipment  and   general intangibles.  The creditagreement contains affirmative     covenant    requirements related to  workingcapital and tangible net worth    minimums   of $6,500,000 and $9,000,000 respectively. The Company had no   borrowings   under this loan facility during the years ended September   30,  2003 and 2002.  The Company  is incompliance with its loan covenants.   At  September 30, 2003  the Company had a $700,000 standby letter of credit    outstanding which expired   onOctober  15, 2003.  

**4. LEASES**

*Operating*:                             The Company leases a facility and certain equipment   under    operating      leases   expiring through March 2006. 

 The Company's minimumcommitments under operating leases are as follows: 

 2004 

 $25,221 

 2005 

 18,129 

 2006 

 5,012 

**Total**

 $48,362 

 Rental expense             under these commitments was $41,198 (2003), $49,492 (2002) and  $68,362        (2001).   

*Capital*              :                             During 2000, the Company purchased equipmentunder    a  capital     lease    obligation, replacingequipment purchasedin   1997.  The obligation     was payable   in monthly installments   of$3,344   including  interest at   8.0%  per year until  February 2003. Thetotal   capital lease  obligation   payable  included $44,954  remainingon the equipment   purchased  in 1997.   The final  lease payment was  madeon January 31, 2003.  Interest  expense   on this lease  obligation  amounted to $545 during fiscal 2003.

 A facility held             under a capital lease has a net book value of $0 at September 30,    2003.     Future   minimum lease payments which extend through 2061 are  immaterial.       

**5. STOCK OPTIONS**

 Under the Company's             Key Employees Stock Option Plans (collectively the "EmployeePlans")        the    Compensation Committee of the Board of Directors hasthe authority        to grant     options to Key Employees to purchase upto 47,200 Class   A  shares,    net of   granted options. The options areexercisable for up  to  10 years.    Incentive    stock options are availableat an exercise  price  of not less    than market   price on the date theoption is granted.  However,  options  available  to an   individual owningmore than 10% of the Company's  Class  A shares at  the time   of grant mustbe at a price not less than 110% of  the market price.  Non-qualified    stockoptions may be issued at such exercise  price and on  such other terms  and conditions  as the Compensation Committee   may determine.  No options may  be granted  at a price less than $2.925.  Non-cash compensation  expense related  to  stock option plans was $0 for  fiscal years ended September 30,  2003, 2002   and 2001. All options granted  under the Employee Plansare  exercisable    at  September 30, 2003. 

 The Company's OutsideDirectors Stock Option Plans (collectively the "Directors Plans") providefor the automatic grant of options to purchase up to 39,000 shares (less33,000 options which were either canceled, expired or unissued) of ClassA common stock over a five year period to members of the Board of Directors             who are not employees of the Company, at the fair market value  on   the    date    of grant. All options granted under the Directors Plans  become    fully   exercisable    on February 21, 2006. 

 Transactions involving             the plans are summarized as follows: 

|                                                                       |                                  |           |                                  |           |                                  |           |
|-----------------------------------------------------------------------|----------------------------------|-----------|----------------------------------|-----------|----------------------------------|-----------|
|                                                                       | **Weighted Average****Exercise** |           | **Weighted Average****Exercise** |           | **Weighted Average****Exercise** |
|                                                                       | **2003**                         | **Price** | **2002**                         | **Price** | **2001**                         | **Price** |
|                                                                       |
| **Option             Shares**                                         |                                  |           |                                  |           |                                  |           |
| **Employee             Plans:**                                       |
|                                                                       |                                  |           |                                  |           |                                  |           |
| Outstanding             October 1,                                    | 151,400                          | $6.66     | 123,150                          | $7.99     | 116,300                          | $9.34     |
|                                                                       |                                  |           |                                  |           |                                  |           |
| Granted                                                               | -                                | -         | 44,300                           | 3.55      | 32,100                           | 3.13      |
|                                                                       |                                  |           |                                  |           |                                  |           |
| Canceled                                                              | (21,500)                         | 7.10      | (16,050)                         | 8.31      | (23,250)                         | 8.46      |
|                                                                       |                                  |           |                                  |           |                                  |           |
| Exercised                                                             | -                                | -         | -                                | -         | (2,000)                          | 3.13      |
|                                                                       |                                  |           |                                  |           |                                  |           |
| Outstanding             September 30,(2003-$3.13 to $17.25 per share) | 129,900                          | 6.58      | 151,400                          | 6.66      | 123,150                          | 7.99      |
| Exercisable             September 30,                                 | 129,900                          | 6.58      | 151,400                          | 6.66      | 123,150                          | 7.99      |
|                                                                       |                                  |           |                                  |           |                                  |           |
| **Director             Plans:**                                       |                                  |           |                                  |           |                                  |           |
|                                                                       |                                  |           |                                  |           |                                  |           |
| Outstanding             October 1,                                    | 42,000                           | $9.73     | 36,000                           | $10.76    | 30,000                           | $12.07    |
|                                                                       |                                  |           |                                  |           |                                  |           |
| Granted                                                               | 6,000                            | 3.67      | 6,000                            | 3.55      | 6,000                            | 4.25      |
|                                                                       |                                  |           |                                  |           |                                  |           |
| Canceled                                                              | (9,000)                          | 10.49     | -                                | -         | -                                | -         |
|                                                                       |                                  |           |                                  |           |                                  |           |
| Exercised                                                             | -                                | -         | -                                | -         | -                                | -         |
|                                                                       |                                  |           |                                  |           |                                  |           |
| Outstanding             September 30,(2003-$3.55 to $18.00 per share) | 39,000                           | 8.62      | 42,000                           | 9.73      | 36,000                           | 10.76     |
| Exercisable              September 30,                                | 28,000                           | 10.61     | 30,000                           | 11.83     | 24,667                           | 12.97     |

In December 2002, the Financial             Accounting Standards Board issued SFAS No. 148, Accounting for  Stock-Based           Compensation - Transition and Disclosure. This statement  is intended      to   encourage  more companies to adopt the fair valuemethod  of accounting      and   amends the  disclosure requirements of  SFAS  No. 123, Accounting      for   Stock-Based  Compensation to require more prominent disclosure in   both  annual   and interim  financial statements. For companies that follow   the  "disclosure   only" provisions  of SFAS123, the new rules are effective    in the first calendar  quarter of  2003.

The Company has adopted             the disclosure only provisions of SFAS 123, which allows a company      to   continue    to measure compensation costs for those plans using the    intrinsic   value-based    method of accounting prescribed by APBOpinion    No. 25, Accounting   for Stock   Issued to Employees. The Companyhas elected    to follow APB Opinion    No. 25  and related interpretationsin accounting    for its stock options  for  both  employees and non-employee  Directors.  Compensation  costs for stock   based awards is measured bythe  excess, if  any, of the fair market value  price at the grant date ofthe  underlying stock over the amount the individual  is required to pay forexercising  the stock based award. Compensation cost  for fixed based awardsare measured  at the grant date, and the Company uses  the Black-Scholes optionpricing  model to determine  the fair value estimates  for disclosure purposes.The Black-Scholesoption        pricing model was originally developed for use in estimatingthe fair    value    of traded options which have different characteristicsfrom the   Company's    employee stock options. The model is also sensitive             to changes in the subjective assumptions which can materially affect       the    fair value estimate. As a result, management believes that the   Black-Scholes        model may not necessarily provide a reliable single  measure of the fair     value  of the Company's stock options. The following weighted-average             assumptions were used in the option pricing model for 2003, 2002    and    2001     respectively: a risk free interest rate of 3.0%, 3.0%and    4.0%;   an expected     life of 6, 6 and 6 years; an expected dividend yield   of 0.0%,   0.0% and  0.0%;   and a volatility factor of .60, .71and .88. Theadoption of this statement            did not affect the Company's resultsof operations, financial position         or   liquidity. Had  compensation costfor fixed price stock options granted in         2003, 2002 and  2001 beendetermined consistent with FAS 123, pro forma      net  income (loss)  andearnings (loss) per share would have been as follows: 

|  |                                                                                                                                                                               |               | **2003**     | **2002** | **2001**   |
|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------------|----------|------------|
|  |                                                                                                                                                                               |               |              |
|  | Net Income             (Loss)                                                                                                                                                 | - as reported | $(1,773,198) | $244,406 | $(662,106) |
|  |                                                                                                                                                                               |               |              |
|  | Deduct: Total stock based           employee and Director compensation expense   determined underfair     value      based method for all awards, net of related tax  effects |               |              | 9,340    |            | 111,380 |  | 84,472 |
|  |                                                                                                                                                                               |               |              |
|  |                                                                                                                                                                               | - pro forma   | $(1,782,538) | $133,026 | $(746,578) |
|  |                                                                                                                                                                               |               |              |
|  | Net Income             (Loss) per share                                                                                                                                       | - as reported |              | $(1.45)  |            | $.20 |  | $(.54) |
|  |                                                                                                                                                                               |               |              |
|  |                                                                                                                                                                               | - pro forma   |              | $(1.46)  |            | $.11 |  | $(.61) |

 The fair value             method of accounting has not been determined for options granted    prior      to   October 1, 1995. The effects of applying FAS No. 123 in  this  pro  forma    disclosure   are not necessarily indicative of future  amounts.  

**6. CAPITAL STOCK, TREASURY STOCK, AND CONTRIBUTED CAPITAL**

 Unissued shares             of Class A common stock (623,766 and 648,266 shares in 2003 and   2002     respectively)     are reserved for the share-for-share conversion   rights    of the Class B common    stock and stock options under the Employee   Plans    and the Directors Plans   (see note 5). The Class A shares have  one vote   per share and the Class B  shares have three votes per share, except under   certain circumstances such  as voting on voluntary liquidation, sale of substantially    all the assets,   etc. Dividends up to $.10 peryear, noncumulative, must    be paid on Class  A shares before any dividendsare paid on Class B shares.    

**7. INCOME TAXES**

 A reconciliation of the              recovery of income taxes to the statutory Federal income tax rate     is   as   follows: 

|                                                             | **2003**                                          | **2002**   | **2001**     |
|-------------------------------------------------------------|---------------------------------------------------|------------|--------------|
|                                                             |                                                   |
|                                                             |                                                   |            |              |
| Income (Loss)             Before Provision for Income Taxes | $(1,205,656)                                      | $261,606   | $(1,147,406) |
|                                                             | Statutory             rate                        | 34%        | 34%          | 34% |
|                                                             |                                                   |            |
|                                                             |                                                   | (409,923)  | 88,946       | (390,118) |
|                                                             |                                                   |            |              |  |
|                                                             | Surtax Savings                                    | -          | (3,700)      | - |
|                                                             | State and              local taxes - net          | -          | -            | 12,300 |
|                                                             | Permanent             differences                 | 10,800     | 16,800       | 8,500 |
|                                                             | Research             and development credit - net | (62,300)   | (76,900)     | (123,000) |
|                                                             | Other                                             | (9,577)    | (7,946)      | 7,018 |
|                                                             |                                                   |            |
|                                                             |                                                   | $(471,000) | $17,200      | $(485,300) |
|                                                             |                                                   |            |

 Deferred tax asset (liabilities)             consist of the following: 

|                 | **2003**                                                 | **2002**   |           |
|-----------------|----------------------------------------------------------|------------|-----------|
|                 |                                                          |            |           |  |
| **Current:**    |                                                          |            |           |
|                 | Inventories                                              | $31,200    | $7,900    |  |
|                 | Research             and development credit carryforward | -          | 47,100    |  |
|                 | Bad debts                                                | 42,200     | 15,600    |  |
|                 | Accrued liabilities                                      | 58,000     | 82,800    |  |
|                 | Contribution             carryforward                    | -          | 77,600    |  |
|                 |                                                          |            |           |
|                 | 131,400                                                  | 231,000    |           |
| **Noncurrent:** |                                                          |            |           |
|                 | Depreciation             and amortization                | 275,600    | (185,000) |  |
|                 | Research             and development credit carryforward | 778,400    | 623,100   |  |
|                 | Net operating loss carryforward                          | 395,600    | -         |  |
|                 | Contribution             carryforward                    | 129,100    | 34,000    |  |
|                 |                                                          |            |           |
|                 |                                                          | 1,578,700  | 472,100   |  |
|                 |                                                          |            |           |
|                 | **Total**                                                | $1,710,100 | $703,100  |  |
|                 |                                                          |            |           |

The Company has            available a net operating loss carryforward of approximately $1,160,000          and  a contribution carryforward of approximately $380,000. Thenet    operating       loss, contribution  and research and development credit  carryforwards     will    begin to expire in  2019. 

 The Company's             ability to realize the entire benefit of its deferred tax assets    requires         that the Company achieve certain future earning levels  prior  to the   expiration      of its net operating loss, contributionand  research  and  development credit    carryforwards. The Company couldbe required to  record  a valuation allowance    for a portion or all ofits deferred tax  assets if market conditions deteriorate    and future earnings are below,  or projected  to be below, its current estimates.    

**8. EARNINGS PER COMMON SHARE**

 The following table sets              forth the computation of basic and diluted earning per share.  

|                                                            | **2003**     | **2002**  | **2001**   |
|------------------------------------------------------------|--------------|-----------|------------|
|                                                            |              |
| **Basic             Income (Loss) Per Share**              |              |           |            |
| Income (Loss)             available to common stockholders | $(1,773,198) | $244,406  | $(662,106) |
|                                                            |              |           |            |
| Shares denominator                                         | 1,219,750    | 1,219,750 | 1,218,374  |
|                                                            |              |           |            |
| Per share             amount                               | $(1.45)      | $.20      | $(.54)     |
|                                                            |              |
| **Effect             of Dilutive Securities**              |              |           |            |
| Average sharesoutstanding                                  | 1,219,750    | 1,219,750 | 1,218,374  |
|                                                            |              |           |            |
| Stock options                                              | -            | 21,370    | -          |
|                                                            |              |
|                                                            | 1,219,750    | 1,241,120 | 1,218,374  |
| **Diluted             Income (Loss) Per Share**            |              |           |            |
| Income (Loss)             available to common stockholders | $(1,773,198) | $244,406  | $(662,106) |
|                                                            |              |           |            |
| Per share             amount                               | $(1.45)      | $.20      | $(.54)     |
|                                                            |              |

**9. EMPLOYEE BENEFIT PLANS**

The Company has             a formula based profit sharing bonus plan for officers and key  employees.           The formula takes into account "Economic Profit" in determining the    bonus      pool. The bonus distribution is determinedby the Compensation     Committee     of the Board of Directors after considering such factors  as   salary, length     of service and merit. The maximum individual distribution     is 50% of the   distributee's   salary. For fiscal years ended September    30, 2003, 2002 and  2001, the formula   produced no distributions. 

The Company has             a 401(k) Savings and Retirement Plan covering all full-time employees.          Company   contributions to the plan, including matching of employee    contributions,        are at the Company's discretion. For fiscal years  ended  September 30,    2003,    2002 and 2001, approximately $-0-, $-0-,  and $19,102  respectively,    were  contributed   to the plan. The Company  does not provide  any other  post  retirement  benefits   to its employees.  

The Company has             a deferred compensation plan which permits selected management  and    highly       compensated employees to make tax deferred contributions  in   the form  of   salary  reductions instead of, or in addition to, contributions      made  by them  under  the 401(k) Savings and Retirement Plan. For fiscal     years ended September   30, 2003, 2002 and 2001, approximately $9,600,  $7,200   and $10,800 respectively,    were allocated by the participants to this plan  and is included in "Accrued    Payroll and Related Expenses."

**10. GOODWILL**

In connection with             the adoption of the Financial Accounting Standards Board SFAS No.    142,     "Goodwill   and Other Intangible Assets", the Company discontinued     the  amortization    of  goodwill as of October 1, 2002. In lieu of amortization,       the new standard      requires that goodwill be tested for impairment   as   of the date of adoption      and at least annually thereafter. The initial     impairment test indicated    that  the carrying values of our reporting   units  exceeded the corresponding    fair  values due to prior year losses.   The fair values were determined by   an asset  approach.The  implied fair   value of goodwill in these reporting    units was  thendetermined  through   the allocation of the fair values to  the  underlying asset and  liability   classes. The October 1, 2002 carrying  value  ofthe goodwill   in these reporting  units exceeded its implied fair  value by $1,574,542.  The  $1,038,542 represents    an entire write-off of the Company's  goodwill  as of  October 1, 2002,  net  of $536,000 of relatedtax  benefits,  and has been reported  as the  effect  of a change in accounting principle in the accompanying financial   statements.  The goodwill in ourSeptember 30, 2002 financial statements,  which included  the $1,574,542described above,  was supported by the undiscounted   estimated  future cashflows of the related  operations.

|                                                                        | **2003**     | **2002**  | **2001**   |
|------------------------------------------------------------------------|--------------|-----------|------------|
|                                                                        |              |
| **Net              Income (Loss):**                               |              |           |            |
| Reported             Net Income (Loss)                                 | $(1,773,198) | $244,406  | $(662,106) |
| Add back:             goodwill amortization and impairment, net of tax | 1,038,542    | 74,265    | 74,491     |
|                                                                        |              |
| Adjusted Net Income (Loss)                                             | $(734,656)   | $318,671  | $(587,615) |
|                                                                        |              |           |            |
| Shares denominator                                                     | 1,219,750    | 1,219,750 | 1,218,374  |
|                                                                        |              |           |            |
| **Basic Income (Loss)per Share:**                                      |              |           |            |
| Reported Basic Income (Loss)           per Share                       | $(1.45)      | $.20      | $(.54)     |
| Add back: goodwill amortization           and impairment, net of tax   | .85          | .06       | .06        |
|                                                                        |              |
| Adjusted Basic Income (Loss)           per Share                       | $(.60)       | $.26      | $(.48)     |
|                                                                        |              |
| **Effect             of Dilutive Securities:**                         |              |           |            |
| Average sharesoutstanding                                              | 1,219,750    | 1,219,750 | 1,218,374  |
| Stock options                                                          | -            | 21,370    | -          |
|                                                                        |              |
|                                                                        | 1,219,750    | 1,241,120 | 1,218,374  |
| **Diluted             Income (Loss) Per Share:**                       |              |           |            |
| Reported     Diluted NetIncome (Loss) per Share                        | $(1.45)      | $.20      | $(.54)     |
| Add back: goodwill amortization           and impairment, net of tax   | .85          | .06       | .06        |
|                                                                        |              |
| AdjustedDiluted  Income (Loss) per Share                               | $(.60)       | $.26      | $(.48)     |
|                                                                        |              |

**11. SEGMENT AND RELATED INFORMATION**

The Company has             adopted SFAS No. 131, Disclosures about Segments of an Enterprise     and    Related    Information, which changes the way the Company reports    the information     about   its operating segments. 

The Company's four             business units have a common management team and infrastructure.    The    indicators      and gauges unit has different technologies andcustomers       than the other    business  units. Therefore, the businessunits have   been    aggregated into   two reportable  segments: 1.) indicatorsand gauges   and    2.) automotive related    diagnostic  tools and equipment. The Company's      management evaluates segment    performance  based primarily on operating      earnings before taxes. Non-operating    items such as interest income  and    interest expense are included in general    corporate  expenses. Depreciation      expense on assets used in manufacturing    are considered  part of each    segment's  operating performance. Depreciation    expense on non-manufacturing     assets  are included in general corporate expenses.   Goodwill amortization    is applied  to each segment's operating performance.   

*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 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  servicing          of automotive electronic systems. These products aresold  to the aftermarket          using a variety of distribution methods.The acquisition of Waekon   Industries       in 1998 added significant newproducts and distribution   sources for the    aftermarket.  

Included in this             segment are fastening control products used by large manufacturers      to   monitor    and control pneumatic and electric tools that tighten  threaded       fasteners   so as to provide high quality joint control in  assembly plants.      The product   was added in fiscal 1994 when the Company  acquired the fastening     systems  business from Allen-Bradley Company. 

*Information by industry             segment is set forth below:*

| **Years             Ended September 30,**                       | **2003**                                              | **2002**    | **2001**    |
|-----------------------------------------------------------------|-------------------------------------------------------|-------------|-------------|
|                                                                 |
| **Net Sales**                                                   |                                                       |             |             |
|                                                                 | Indicators             and Gauges                     | $           | 1,428,575   | $ | 1,863,037 | $ | 2,239,126 |
|                                                                 | Automotive             Diagnostic Tools and Equipment | 9,609,371   | 10,528,605  | 13,022,023 |
|                                                                 |                                                       |
|                                                                 | $                                                     | 11,037,946  | $           | 12,391,642 | $ | 15,261,149 |
|                                                                 |                                                       |
| **Income             (Loss) Before Provision for Income Taxes** |                                                       |             |             |
|                                                                 | Indicators             and Gauges                     | $           | 31,044      | $ | 336,555 | $ | (3,847) |
|                                                                 | Automotive             Diagnostic Tools and Equipment | 285,569     | 1,468,438   | 688,847 |
|                                                                 | General CorporateExpenses                             | (1,522,269) | (1,430,822) | (1,719,515) |
|                                                                 | Goodwill Amortization                                 | -           | (112,565)   | (112,891) |
|                                                                 |                                                       |
|                                                                 | $                                                     | (1,205,656) | $           | 261,606 | $ | (1,147,406) |
|                                                                 |                                                       |

*Asset Information**:*

| **Years             Ended September 30,** | **2003**                                              | **2002**   | **2001**  |
|-------------------------------------------|-------------------------------------------------------|------------|-----------|
|                                           |
| **Identifiable              Assets**      |                                                       |            |           |
|                                           | Indicators             and Gauges                     | $          | 771,108   | $ | 924,961 | $ | 941,446 |
|                                           | Automotive             Diagnostic Tools and Equipment | 4,174,295  | 5,044,031 | 6,217,667 |
|                                           | Corporate                                             | 5,434,660  | 4,759,848 | 3,331,333 |
|                                           | Goodwill                                              | -          | 1,574,542 | 1,687,107 |
|                                           |                                                       |
|                                           | $                                                     | 10,380,063 | $         | 12,303,382 | $ | 12,177,553 |
|                                           |                                                       |
| ****                                      |                                                       |            |           |

 As discussed in             note 10, the amortization of goodwill was discontinued at the beginning          of  fiscal 2003 with the adoption of SFAS No. 142. Goodwill impairment       recognized    in the first quarter of fiscal 2003 amounted to $55,556   for    the indicators    and gauges segment and $1,518,986 for the automotive    diagnostic   tools and    equipment segment. Although goodwill amortization     was included   in income    or loss before provision for income taxes by   segment  for fiscal    2002 and    2001, we have adjusted the segment information   for fiscal  2002   and 2001   to present it ona consistent basis with the   fiscal 2003 presentation.    The  fiscal 2002 and 2001 goodwill amortization   expense is now presented   on  a  separate line. Asset information for reported   segments was also adjusted     and goodwill for fiscal 2002 and 2001 is presented  on a separate line.

*Geographical             Information :*

 Included in the              consolidated financial statements are the following amountsrelated        to   geographic  locations: 

| **Years             Ended September 30,** | **2003**                             | **2002**    | **2001**    |
|-------------------------------------------|--------------------------------------|-------------|-------------|
|                                           |
| **Revenue:**                              |                                      |             |             |
|                                           | United States             of America | $10,536,829 | $11,825,716 | $14,568,941 |
|                                           | Canada                               | 263,934     | 391,134     | 516,664 |
|                                           | Other foreign              countries | 237,183     | 174,792     | 175,544 |
|                                           |                                      |
|                                           | $11,037,946                          | $12,391,642 | $15,261,149 |
|                                           |                                      |

 All export sales to Canada and other foreign countries are made             in United States of America Dollars. 

**12. QUARTERLY DATA (UNAUDITED)**

-  
**First**

**Second**

**Third**

**Fourth**

**Net Sales**

 2003 

 $2,447,948 

 $2,913,756 

 $2,887,656 

 $2,788,586 

 2002 

 2,584,817 

 3,252,795 

 3,513,353 

 3,040,677 

 2001 

 3,754,296 

 4,166,399 

 3,727,618 

 3,612,836 

**Gross Profit**

 2003 

 911,641 

 1,347,880 

 1,324,752 
  1,341,871
 2002 

 1,057,151 

 1,697,761 

 1,829,234 

 1,423,347 

 2001 

 1,306,638 

 1,375,333 

 1,436,556 

 1,656,049 
**Income (Loss) before            cumulative effect of change in accounting  principle**2003(357,488)(122,720)(153,753)(100,695)2002(208,540)150,971249,59152,3842001(344,563)(353,127)(137,645)173,229
**Net Income (Loss)**

 2003 

(1)(1,396,030) 

(122,720) 

 (153,753) 

 (100,695) 

 2002 

 (208,540) 

 150,971 

 249,591 

 52,384 

 2001 

(344,563) 

 (353,127) 

 (137,645) 

 173,229 
**Income (Loss) per Common            Share before cumulative effect of change in accounting principle****Basic**2003(.29)(.10)(.13)(.08)2002(.17).12.20.052001(.28)(.29)(.11).14**Diluted**2003(.29)(.10)(.13)(.08)2002(.17).12.20.052001(.28)(.29)(.11).14
**Net Income (Loss) per Common Share**

**Basic**

 2003 

 (1.14) 

 (.10) 

(.13) 

(.08) 

 2002 

 (.17) 

 .12 

 .20 

 .05 

 2001 

(.28) 

 (.29) 

 (.11) 

 .14 

**Diluted**

 2003 

 (1.14) 

(.10) 

(.13) 

(.08) 

 2002 

 (.17) 

 .12 

 .20 

 .05 

 2001 

(.28) 

 (.29) 

 (.11) 

 .14 
(1)    The first quarter 2003     includes a $1,038,542 charge from a changein   accounting for goodwill,  net   of tax of $536,000. 

**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

 Not Applicable.

**ITEM 9A. CONTROLS AND PROCEDURES**

As of September 30, 2003,      an evaluation was performed,    under    the supervision and with the  participation    of the Company's management,      including  the Company's  Chief Executive    Officer along with the Company's      Vice President,  Finance and Chief   Financial Officer, of the effectiveness      of thedesign and  operation   of the Company's disclosure controls and  procedures.Based upon that evaluation,    the Company's   management, including theChief  Executive Officer along   with the Company's Vice President,   Finance  and Chief  Financial Officer,   concluded that the Company's disclosure  controls   and procedures were  effective as of September 30, 2003 in ensuring  that information required to be disclosed by the Company in the reportsit  files and submits under the Exchange Act is recorded, processed, summarized  and reported, within the time periods specified in the Commission's rules  and forms. There have   been no   significant changes  in the Company'sinternal  controls over financial reporting or in other  factors   whichcould significantly  affect internal controls over financial reporting subsequent   to the date   the Company carried out its  evaluation.

----

**PART III**

**ITEM 10.             DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT**

The information             required by this Item 10 as to the Directors of the Companyis   incorporated           herein by reference to the information set forthunder  the caption    "Information       Concerning Nominees for Directors"in the  Company's definitive   Proxy  Statement     for the Annual Meetingof Shareholders  to be held on   February  18, 2004,   since  such ProxyStatement will be  filed with the  Securities  and Exchange   Commission not later than 120  days after the end of the Company's  fiscal   year pursuant to Regulation  14A. Information required by this Item  10 as   to the Executive  Officers  of the Company is included in Part I of  this Annual  Reporton  Form  10-K.

         Hickok has historically operated under informal ethical  guidelines,under which the Company's principal executive, financial, and  accountingofficers, are held accountable. In accordance with these guidelines,  theCompany has always promoted honest, ethical and lawful conduct throughout the organization. The Company is presently working to formalize its guidelines into a written Code of Ethics, which will be formally adopted and made publicly avaiable in early 2004.

**ITEM 11.             EXECUTIVE COMPENSATION**

The information             required by this Item 11 is incorporated by reference to theinformation            set forth under the caption "Executive Compensation"in the Company's        definitive     Proxy Statement for the Annual Meetingof Shareholders    to   be held on February     18, 2004, since such ProxyStatement will be   filed   with the Securities  and   Exchange Commissionnot later than 120   days after   the end of the Company's     fiscal yearpursuant to Regulation    14A. 

**ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

Equity Compensation             Plan Information

The following table provides             information as of September 30, 2003 with respect to compensation     plans      (including  individual compensation arrangements) under which    Common Stock     of the Company  is authorized for issuance under compensation    plans previously     approved and  not previously approved by shareholders    of the Company. 

|  | (a) | (b) | (c) |
|--|-----|-----|-----|

| Plan category | Number of             securities to be issued upon exercise of outstanding options, warrants         and   rights | Weighted             average exercise price of outstanding options, warrants andrights | Number of             securities remaining available for future issuance under equity   compensation          plans (excluding securities reflected in column(a)) |
|---------------|-------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 ________________________________________________________________________________              

| Equity compensation             plans approved by security holders | 157,900 | $7.30 | 47,200 |
|--------------------------------------------------------------------|---------|-------|--------|

| Equity compensation             plans not approved by security holders | -       | - | -      |
|------------------------------------------------------------------------|---------|---|--------|
| Total                                                                  | 157,900 |   | 47,200 |
|                                                                        |         |   |        |

Other information required             by this Item 12 is incorporated by reference to the information   set    forth      under the captions "Principal Shareholders" and "Share  Ownership    of Directors      and Officers" in the Company's definitive Proxy Statement    for the Annual     Meeting of Shareholders to be heldon February 18, 2004,    since such Proxy     Statement will be filed withthe Securities and Exchange    Commission not   later  than 120 days afterthe end of the Company's fiscal    year pursuant  to Regulation   14A. 

**ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS**

The information             required by this Item 13 is incorporated by reference to theinformation            set forth under the caption "Transactions with Management"in the    Company's        definitive Proxy Statement for the Annual Meeting of Shareholders    to   be   held  on February 18, 2004, since such Proxy Statement will be   filed   with   the Securities  and Exchange Commission not later than 120   days after   the   end of the Company's   fiscal year pursuant to Regulation   14A. 

**ITEM 14. PRINCIPALACCOUNTANT FEES AND SERVICES**

The information             required by this Item 14 is incorporated by reference to theinformation            set forth under the caption "Transactions with Management"in the    Company's        definitive Proxy Statement for the Annual Meeting of Shareholders    to   be   held  on February 18, 2004, since such Proxy Statement will be   filed   with   the Securities  and Exchange Commission not later than 120   days after   the   end of the Company's   fiscal year pursuant to Regulation   14A.

----

**PART IV**

**ITEM 15. EXHIBITS,       FINANCIAL STATEMENT SCHEDULES, AND REPORTS      ON REPORT 8-K**

 (a) (1)  FINANCIAL             STATEMENTS 

The following Consolidated             Financial Statements of the Registrant and its subsidiaries are   included         in Part II, Item 8: 

| **PAGE** |
|----------|

|                                                                                                                              |     |
|------------------------------------------------------------------------------------------------------------------------------|-----|
| Report of Independent  Auditors                                                                                              | F-1 |
|                                                                                                                              |     |
| Consolidated Balance        Sheet - As of September 30, 2003 and 2002                                                        | F-2 |
|                                                                                                                              |     |
| Consolidated Statement             of Income - Years Ended September 30, 2003, 2002 and 2001                                 | F-4 |
|                                                                                                                              |     |
| Consolidated Statement             of Stockholders' Equity - Years Ended September 30, 2003, 2002  and 2001                  | F-5 |
|                                                                                                                              |     |
| Consolidated Statement             of Cash Flows - Years Ended September 30, 2003,                             2002 and 2001 | F-6 |
|                                                                                                                              |     |
| Notes to Consolidated          Financial Statements                                                                          | F-8 |
|                                                                                                                              |     |

 (a) (2)  FINANCIAL             STATEMENT SCHEDULES 

 The followingConsolidated Financial Statement Schedules of the Registrant and its subsidiariesare included in Item 15 hereof. 

 SEQUENTIAL PAGE 

| Report of Independent          Auditors as to Schedules     |  |
|-------------------------------------------------------------|--|
|                                                             |  |
| Schedule   VIII-Valuation           and Qualifying Accounts |  |
|                                                             |  |
| Schedule   IX-Short-term           Borrowings               |  |

 All other schedules             for which provision is made in the applicable accounting regulation       of   the   Securities and Exchange Commission are not required under  the    related   instructions   or are inapplicable, and therefore havebeen  omitted.    

 (a) (3)  EXHIBITS             

 Reference is made             to the Exhibit Index set forth herein. 

 (b) On August14, 2003 the Company filed a Current Report on Form 8-K related to its' Third             Quarter Earnings News Release. No other Form 8-K was filed during     the    quarter    ended September 30, 2003. 

----

**SIGNATURES**

 Pursuant to the requirements             of Section 13 or 15(d) of the Securities Exchange Act of 1934,  the    Registrant       has duly caused this report to be signed on itsbehalf    by  the undersigned,       thereunto duly authorized at Cleveland,Ohio  this   19th day of December,     2003.  

|  | HICKOK INCORPORATED                   

 By:/s/ Robert L. Bauman                             Robert L. Bauman                             President and Chief Executive Officer |
|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 Pursuant to the             requirements of the Securities Exchange Act of 1934, this report    has   been     signed below by the following persons on behalf of theRegistrant       and in   the capacities indicated and on the 19th day ofDecember, 2003:      

| **SIGNATURE:**               | **TITLE**                                                |
|------------------------------|----------------------------------------------------------|
|                              |                                                          |
| /s/Janet H. Slade            | Chairman                                                 |
| Janet H.             Slade   |                                                          |
|                              |                                                          |
|                              |                                                          |
| /s/Robert L. Bauman          | President             and Chief Executive Officer        |
| Robert L.             Bauman | (Principal             Executive Officer)                |
|                              |                                                          |
|                              |                                                          |
| /s/Gregory M. Zoloty         | Vice President             and Chief Financial Officer   |
| GregoryM. Zoloty             | (Principal             Financial and Accounting Officer) |
|                              |                                                          |
|                              |                                                          |
| /s/T. Harold Hudson          | Director                                                 |
| T. Harold             Hudson |                                                          |
|                              |                                                          |
|                              |                                                          |
| /s/James T. Martin           | Director                                                 |
| James T.             Martin  |                                                          |
|                              |                                                          |
|                              |                                                          |
| /s/Michael L. Miller         | Director                                                 |
| MichaelL. Miller             |                                                          |
|                              |                                                          |
|                              |                                                          |
| /s/James Moreland            | Director                                                 |
| James Moreland               |                                                          |
|                              |                                                          |
|                              |                                                          |
| /s/ Hugh S. Seaholm          | Director                                                 |
| Hugh S. Seaholm              |                                                          |

----

----

**EXHIBIT INDEX**

| **EXHIBIT             NO.:** | **DOCUMENT** |  |
|------------------------------|--------------|--|

| 3(a)  | Articles             of Incorporation and Code of Regulations.*                                                                                                                                                                                                                                           |  |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
|       |                                                                                                                                                                                                                                                                                                           |  |
| 3(b)  | Amendment             to Articles of Incorporation (incorporated herein by reference  to   the    Company's    Annual Report on Form 10-K for the fiscal yearended    September    30, 1995,   File No. 0-147).                                                                                           |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 10(a) | Loan Agreement,             dated as of February 28, 2003, by and between the Company and Huntington           National Bank (incorporated herein by reference tothe  appropriate    exhibit       to the Company's Quarterly Report on Form10-Q  for the quarterly    period     ended  March 31, 2003). |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 10(b) | Hickok Incorporated             1995 Key Employees Stock Option Plan (incorporated herein byreference          to   the appropriate exhibit to the Company's RegistrationStatement     on   Form   S-8  as filed with the Commission on September17, 1998).                                               |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 10(c) | Hickok Incorporated             1997 Outside Directors Stock Option Plan (incorporated herein by   reference         to the appropriate exhibit to the Company's Registration    Statement  on   Form    S-8 as filed with the Commission on September17,    1998).                                       |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 10(d) | Hickok Incorporated             1997 Key Employees Stock Option Plan (incorporated herein byreference          to   the appropriate exhibit to the Company's RegistrationStatement     on   Form   S-8  as filed with the Commission on September17, 1998).                                               |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 10(e) | Hickok Incorporated             2000 Outside Directors Stock Option Plan (incorporated herein by   reference         to the appropriate exhibit to the Company's Registration    Statement  on   Form    S-8 as filed with the Commission on June 6, 2001).                                               |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 10(f) | Hickok Incorporated             2000 Key Employees Stock Option Plan (incorporated herein byreference          to   the appropriate exhibit to the Company's RegistrationStatement     on   Form   S-8  as filed with the Commission on June 6, 2001).                                                    |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 11    | Computation             of Net Income Per Common Share.                                                                                                                                                                                                                                                   |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 21    | Subsidiaries             of the Registrant.                                                                                                                                                                                                                                                               |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 23    | Consentof Independent Auditors.                                                                                                                                                                                                                                                                           |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 31.1  | Certification by the Chief           Executive Officer pursuant to Section   302 (a) of the Sarbanes-Oxley       Act    of 2002.                                                                                                                                                                          |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 31.2  | Certification by the Chief           Financial Officer pursuant to Section   302 (a) of the Sarbanes-Oxley       Act    of 2002.                                                                                                                                                                          |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 32.1  | Certification by the Chief           Executive Officer pursuant to 18 U.S.C.   Section 1350, as adopted    pursuant       to Section 906 of the Sarbanes-Oxley Act   of 2002.                                                                                                                             |  |
|       |                                                                                                                                                                                                                                                                                                           |  |
| 32.2  | Certification by the Chief           Financial Officer pursuant to 18 U.S.C.   Section 1350, as adopted    pursuant       to Section 906 of the Sarbanes-Oxley Act   of 2002.                                                                                                                             |  |

 Reference is             made to the Company's basic documents filed as Exhibits 3(a)and    3(b)     to   the Company's Registration Statement on Form S-1, datedSeptember      1,   1959,   as supplemented by Amendments 1 and 2 thereto,dated respectively         October   15, 1959, and October 19, 1959 (theOctober 15, 1959 amendment        containing    an Amendment to Articlesof Incorporation, dated September       29, 1959) and   such  exhibits arehereby incorporated by reference herein.        

 The following pages contain             the Consolidated Financial Statement Schedules as specifiedfor    Item     15(a)(2)     of Part IV of Form 10-K.

----

**REPORT OF INDEPENDENT             AUDITORS AS TO CONSOLIDATED SCHEDULES**

 To the Shareholders             and Board of Directors                             Hickok Incorporated                             Cleveland, Ohio 

 We have audited             the consolidated financial statements of HICKOK INCORPORATED(the     "Company")        as of September 30, 2003 and 2002, and for eachof the    three years in   the    period ended September 30, 2003, and haveissued   our report thereon    dated    November 26, 2003; such consolidatedfinancial    statements and report   are   included in Part II, Item 8 ofthis Form 10-K.   Our audits also included    the  consolidated financialstatement schedules   ("schedules") of the Company    listed  in Item 15(a)(2). These schedules   are the responsibility of the   Company's   management.Our responsibility    is to express an opinion based   on our audits.   Inour opinion, such schedules,   when considered in relation   to the basic financial  statements taken as  a whole, present fairly in all  materialrespects   the  information set forth therein.  /s/ Meaden & Moore, Ltd. 

 MEADEN & MOORE,             Ltd.                             Certified Public Accountants 

 December 17, 2003                                  Cleveland, Ohio

----

                                                HICKOK INCORPORATED                                  SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS           Col. A                    Col. B                   Col.C                    Col. D          Col. E-----------------------             ----------   -------------------------------     -----------    ------------                                                           Additions                                                 -------------------------------                                    Balance at     Charged to        Charged to                        Balance                                    Beginning      Costs and           Other                           at End    Description                     of Period       Expenses          Accounts        Deductions      of Period-----------------------------       ----------    ------------     -------------      -----------    ------------Deducted from Asset Accounts:                                                  Year Ended September 30, 2001                                                  ------------------------------ Reserve for doubtful accounts       $  80,000    $   (283) (1)      $    46 (2)     $    36,763(3)    $  43,000 Reserve for inventory obsolescence  $ 254,510    $ 433,574          $      -        $   596,084(4)    $  92,000                                                  Year Ended September 30, 2002                                                  ------------------------------ Reserve for doubtful accounts        $ 43,000    $     400(1)       $  2,330 (2)     $    (270) (3)    $ 46,000 Reserve for inventory obsolescence   $ 92,000    $ 348,123          $      -         $ 408,623  (4)    $ 31,500                                                  Year Ended September 30, 2003                                                  ------------------------------ Reserve for doubtful accounts        $  46,000   $ 132,484 (1)      $ 14,211 (2)     $  68,695 (3)     $124,000 Reserve for inventory obsolescence   $  31,500   $ 361,506          $      -         $ 315,006 (4)     $ 78,000(1) Classified as bad debt expense.(2) Recoveries on accounts charged off in prior years.(3) Accounts charged off during year as uncollectible.(4) Inventory charged off during the year as obsolete.                                               HICKOK INCORPORATED                                         SCHEDULE IX - SHORT-TERM BORROWINGS        Col. A                      Col. B       Col. C        Col. D            Col. E              Col. F       --------                   ----------   ---------   ---------------   --------------   --------------------                                                Weighted    Maximum Amount   Average Amount    Weighted Average                                  Balance at    Average      Outstanding      Outstanding       Interest RateCategory of Aggregate               End of      Interest     During the        During the        During theShort-term Borrowings               Period        Rate          Period           Period           Period (3)------------------------          ----------   ---------   ---------------   --------------   --------------------                                          Year Ended September 30, 2001                                          -----------------------------   Note Payable to Bank (1)       $       -      9.01%       $1,093,000        $ 349,208 (2)          9.30%                                          Year Ended September 30, 2002                                          -----------------------------   Note Payable to Bank (1)       $      -          -%       $       -        $        - (2)             -%                                          Year Ended September 30, 2003                                          -----------------------------   Note Payable to Bank (1)       $      -          -%       $        -        $       - (2)             -%(1) Note payable to bank represents borrowings under a revolving credit facility which expires February 28, 2004.(2) The average amount outstanding during the period was computed by dividing the total of daily outstanding principal balances by 365.(3) The weighted average interest rate during the period was computed by dividing the actual interest by the average short-term debt outstanding.