| UNITED STATES                                                                       |
|-------------------------------------------------------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION                                                  |
| Washington, D.C. 20549                                                              |
|                                                                                |
| FORM 10-K                                                                           |
|                                                                                |
| xANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     |
| For the fiscal year ended September 30, 2010                                        |
|                                                                                |
| oTRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                                                                |
| Commission file number 1-10799                                                      |
|                                                                                |
| ADDVANTAGE TECHNOLOGIES GROUP, INC.                                                 |
| (Exact name of registrant as specified in its charter)                              |

| Oklahoma                                                       | 73-1351610                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
|                                                           |                                 |
| 1221 E. Houston, Broken Arrow, Oklahoma                        | 74012                                |
| (Address of principal executive offices)                       | (Zip code)                           |

| Registrant’s telephone number:  (918) 251-9121                                                                                                                                                                                                                                                                                                                                  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                        Securities registered under Section 12(b) of the Act: |

| Title of each class          | Name of exchange on which registered |
|------------------------------|--------------------------------------|
| Common Stock, $.01 par value | NASDAQ Global Market                 |

| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  Yes o      No  x                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                  |
| Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  Yes o      No  x                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                  |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) ofthe Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrantwas required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  Yes x      No  o                        |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any,every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T duringthe preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  Yes o      No  o                        |
| Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not containedherein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or informationstatements 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 a large accelerated filer, an accelerated filer, a non-accelerated filer,or a smaller reporting company.  See the definitions of “large accelerated filer”, “accelerated filer” and “smallerreporting company” in Rule 12b-2 of the Exchange Act.   Large accelerated filer   o                                                                                     Accelerated filer   o   Non-accelerated filer   o                                                                                     Smaller reporting company   x  |                                                                                  |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  Yes o      No  x                        |
|  The aggregate market value of the outstanding shares of common stock, par value $.01 per share, held by non-affiliatescomputed by reference to the closing price of the registrant’s common stock as of March 31, 2010 was $12,221,531.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                  |
|  The number of shares of the registrant’s outstanding common stock, $.01 par value per share, was 10,143,970 as ofNovember 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                  |
|  Documents Incorporated by Reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                  |
| The identified sections of definitive Proxy Statement to be filed as Schedule 14A pursuant to Regulation 14A in connection with the Registrant’s 2011 annual meeting of shareholders are incorporated by reference into Part III of this Form 10-K.  The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                  |

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|         |                                                                                                         | Page     |
|--------------|--------------------------------------------------------------------------------------------------------------|----------|
|         | PART I                                                                                                       |     |
|    |                                                                                                         |     |
|         |                                                                                                         |     |
| Item 1.      | Business.                                                                                                    | 3        |
| Item 2.      | Properties.                                                                                                  | 7        |
| Item 3.      | Legal Proceedings.                                                                                           | 8        |
|         |                                                                                                         |     |
|         |                                                                                                         |     |
|         | PART II                                                                                                      |     |
|         |                                                                                                         |     |
| Item 5.      | Market for Registrant's Common Equity, Related Stockholder Matters andIssuer Purchases of Equity Securities. |  9  |
| Item 6.      | Selected Financial Data.                                                                                     | 10       |
| Item 7.      | Management's Discussion and Analysis of Financial Condition and Resultsof Operations.                        |  10 |
|         |                                                                                                         |     |
| Item 8.      | Financial Statements and Supplementary Data.                                                                 | 15       |
| Item 9.      | Changes in and Disagreements With Accountants on Accounting andFinancial Disclosure.                         |  34 |
| Item 9A.     | Controls and Procedures.                                                                                     | 34       |
| Item 9B.     | Other Information.                                                                                           | 35       |
|         |  PART III                                                                                               |     |
|         |                                                                                                         |     |
| Item 10.     | Directors, Executive Officers and Corporate Governance.                                                      | 36       |
| Item 11.     | Executive Compensation.                                                                                      | 36       |
| Item 12.     | Security Ownership of Certain Beneficial Owners and Management and RelatedStockholder Matters.               |  36 |
| Item 13.     | Certain Relationships and Related Transactions, and Director Independence.                                   | 36       |
| Item 14.     | Principal Accounting Fees and Services.                                                                      | 36       |
|         |                                                                                                         |     |
|         | PART IV                                                                                                      |     |
|         |                                                                                                         |     |
| Item 15.     | Exhibits, Financial Statement Schedules.                                                                     | 37       |
|         |                                                                                                         |     |
|         | SIGNATURES                                                                                         |     |

----

|   | Forward-Looking Statements |
|--------|----------------------------|

----

----

|                                                     |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| United States                                            |   | $      | 40,523,492 |   |   | $      | 37,694,831 |   |   | $ | 48,597,910 |   |
| Canada, Central America, Mexico, South America and Other |   |   | 6,782,638  |   |   |   | 4,548,761  |   |   |   | 7,850,651 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                     |   | $      | 47,306,130 |   |   | $      | 42,243,592 |   |   | $ | 56,448,561 |   |

----

----

| ·   | Broken Arrow, Oklahoma – Tulsat owns a facility consisting of an office, warehouse and service center of approximately 100,000 square feet on ten acres, with an investment of $3.3 million, financed by a loan of $2.8 million, due in monthly payments through 2021 at an interest rate of LIBOR plus 1.4%.   Tulsat constructed a 62,500 square foot warehouse facility on the rear of its existing property in Broken Arrow, OK, with an investment of $1.6 million, financed with cash flow from operations. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Deshler, Nebraska – Tulsat-Nebraska owns a facility consisting of land and an office, warehouse and service center of approximately 8,000 square feet. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Warminster, Pennsylvania – NCS owns its facility consisting of an office, warehouse and service center of approximately 12,000 square feet, with an investment of $0.6 million.  NCS also leases property of approximately 2,000 square feet, with monthly rental payments of $1,298 through December 31, 2010.  NCS also rents on a month-to-month basis another property of approximately 2,000 square feet, with monthly rental payments of $1,250. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Sedalia, Missouri – ComTech Services owns land and an office, warehouse and service center of approximately 24,300 square feet.  ComTech Services also constructed an 18,000 square foot warehouse facility on the back of its existing property in Sedalia, MO with an investment of $0.4 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | New Boston, Texas – Tulsat-Texas owns land and an office, warehouse and service center of approximately 13,000 square feet. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Suwannee, Georgia – Tulsat-Atlanta leases an office and service center of approximately 5,000 square feet, with monthly lease payments of $3,360 through January 31, 2011. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Oceanside, California – Tulsat-West leased an office, warehouse and service center of approximately 15,000 square feet for $13,881 a month through November 30, 2010.  At the expiration of the lease, this facility was closed, and all operations moved to our Broken Arrow facility. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 5. | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
|---------|--------------------------------------------------------------------------------------------------------------|

| Year Ended September 30, 2010 | High   | Low    |
|-------------------------------|--------|--------|
|                          |   |   |
| First Quarter                 | $2.58  | $1.91  |
| Second Quarter                | $2.50  | $1.97  |
| Third Quarter                 | $3.48  | $2.20  |
| Fourth Quarter                | $3.41  | $2.34  |
|                          |   |   |
| Year Ended September 30, 2009 | High   | Low    |
|                          |   |   |
| First Quarter                 | $2.65  | $1.02  |
| Second Quarter                | $2.40  | $1.25  |
| Third Quarter                 | $1.99  | $1.30  |
| Fourth Quarter                | $2.32  | $1.61  |
|                          |   |   |

|      Plan Category                |  Number of securities tobe issued upon exerciseof outstanding options,warrants and rights(a) |  Weighted-average exercise price ofoutstanding options,warrants and rights(b) | Number of securities remainingavailable for future issuanceunder equity compensationplans (excluding securitiesreflected in column (a))(c) |
|------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| Equity compensation plans approved by security holders     |   136,850                                                                               |   $3.46                                                                       |   637,495                                                                                                                        |
| Equity compensation plans not approved by security holders |   0                                                                                     |   0                                                                           |   0                                                                                                                              |
| Total                                                      | 136,850                                                                                           | $3.46                                                                                   | 637,495                                                                                                                                    |

----

|                                                          |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales and service income                                  |   | $      | 47,306 |   |   | $      | 42,244 |   |   | $      | 56,449 |   |   | $      | 65,646 |   |   | $ | 52,541 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                                        |   | $      | 7,554  |   |   | $      | 5,768  |   |   | $      | 8,452  |   |   | $      | 12,543 |   |   | $ | 8,117 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income applicable to   common shareholders |   | $      | 4,186  |   |   | $      | 3,019  |   |   | $      | 4,534  |   |   | $      | 6,590  |   |   | $ | 4,003 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                                       |   | $      | 0.41   |   |   | $      | 0.30   |   |   | $      | 0.44   |   |   | $      | 0.64   |   |   | $ | 0.39 |   |
|    Diluted                                     |   | $      | 0.41   |   |   | $      | 0.30   |   |   | $      | 0.44   |   |   | $      | 0.64   |   |   | $ | 0.39 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                  |   | $      | 52,260 |   |   | $      | 49,433 |   |   | $      | 51,800 |   |   | $      | 49,009 |   |   | $ | 40,925 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term obligations inclusive                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    of current maturities                       |   | $      | 13,872 |   |   | $      | 15,857 |   |   | $      | 20,510 |   |   | $      | 9,009  |   |   | $ | 9,385 |   |

----

----

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| Index to Financial Statements                                                 | Page   |
|-------------------------------------------------------------------------------|--------|
|                                                                          |   |
| Report of Independent Registered Public Accounting Firm                       | 16     |
|                                                                          |   |
| Consolidated Balance Sheets, September 30, 2010 and 2009                      | 17     |
|                                                                          |   |
| Consolidated Statements of Income and Comprehensive Income, Years             |   |
| ended September 30, 2010, 2009 and 2008                                       | 19     |
|                                                                          |   |
| Consolidated Statements of Changes in Shareholders’ Equity, Years ended |   |
| September 30, 2010, 2009 and 2008                                             | 20     |
|                                                                          |   |
| Consolidated Statements of Cash Flows, Years ended                            |   |
| September 30, 2010, 2009 and 2008                                             | 21     |
|                                                                          |   |
| Notes to Consolidated Financial Statements                                    | 22     |

----

----

|                                                  |   | September 30, |       |
|-------------------------------------------------------|--------|---------------|------------|
|                                                  |   | 2010          |       |   | 2009 |   |
| Assets                                                |   |          |       |   |   |   |
| Current assets:                                       |   |          |       |   |   |   |
| Cash and cash equivalents                             |   | $             | 8,739,151  |   |   | $ | 700,004 |   |
| Accounts receivable, net of allowance of $300,000     |   |          | 4,905,733  |   |   |   | 4,199,136 |   |
|                                                  |   |          |       |   |   |   |   |   |
| Income tax refund receivable                          |   |          | 203,405    |   |   |   | 88,411 |   |
| Inventories, net of allowance for excess and obsolete |   |          |       |   |   |   |   |   |
| inventory of $2,545,000 and $2,196,000, respectively  |   |          | 27,410,722 |   |   |   | 33,166,624 |   |
| Prepaid expenses                                      |   |          | 92,567     |   |   |   | 107,423 |   |
| Deferred income taxes                                 |   |          | 1,423,000  |   |   |   | 1,282,000 |   |
| Total current assets                                  |   |          | 42,774,578 |   |   |   | 39,543,598 |   |
|                                                  |   |          |       |   |   |   |   |   |
| Property and equipment, at cost:                      |   |          |       |   |   |   |   |   |
| Land and buildings                                    |   |          | 7,208,679  |   |   |   | 7,188,936 |   |
| Machinery and equipment                               |   |          | 3,203,701  |   |   |   | 3,258,819 |   |
| Leasehold improvements                                |   |          | 205,797    |   |   |   | 205,797 |   |
|                                                  |   |          | 10,618,177 |   |   |   | 10,653,552 |   |
| Less accumulated depreciation and amortization        |   |          | (3,393,921 | ) |   |   | (3,096,885 | ) |
| Net property and equipment                            |   |          | 7,224,256  |   |   |   | 7,556,667 |   |
|                                                  |   |          |       |   |   |   |   |   |
| Other assets:                                         |   |          |       |   |   |   |   |   |
| Deferred income taxes                                 |   |          | 678,000    |   |   |   | 744,000 |   |
| Goodwill                                              |   |          | 1,560,183  |   |   |   | 1,560,183 |   |
| Other assets                                          |   |          | 23,236     |   |   |   | 28,098 |   |
| Total other assets                                    |   |          | 2,261,419  |   |   |   | 2,332,281 |   |
|                                                  |   |          |       |   |   |   |   |   |
| Total assets                                          |   | $             | 52,260,253 |   |   | $ | 49,432,546 |   |

----

|                                                                                                                                                                        |   | September 30, |           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------------|
|                                                                                                                                                                        |   | 2010          |           |   | 2009 |   |
| Liabilities and Shareholders’ Equity                                                                                                                                  |   |          |           |   |   |   |
| Current liabilities:                                                                                                                                                        |   |          |           |   |   |   |
| Accounts payable                                                                                                                                                            |   | $             | 2,751,498      |   |   | $ | 2,523,143 |   |
| Accrued expenses                                                                                                                                                            |   |          | 1,340,414      |   |   |   | 1,095,822 |   |
| Notes payable – current portion                                                                                                                                       |   |          | 1,814,008      |   |   |   | 1,863,767 |   |
| Total current liabilities                                                                                                                                                   |   |          | 5,905,920      |   |   |   | 5,482,732 |   |
|                                                                                                                                                                        |   |          |           |   |   |   |   |   |
| Notes payable, less current portion                                                                                                                                         |   |          | 12,058,128     |   |   |   | 13,992,873 |   |
| Other liabilities                                                                                                                                                           |   |          | 1,252,683      |   |   |   | 1,049,685 |   |
|                                                                                                                                                                        |   |          |           |   |   |   |   |   |
| Shareholders’ equity:                                                                                                                                                 |   |          |           |   |   |   |   |   |
| Common stock, $.01 par value; 30,000,000 shares authorized;10,367,934 and 10,340,784 shares issued, respectively;10,143,970 and 10,116,820 shares outstanding, respectively |   |          |   103,679 |   |   |   |   103,408 |   |
| Paid in capital                                                                                                                                                             |   |          | (6,070,986     | ) |   |   | (6,151,530 | ) |
| Retained earnings                                                                                                                                                           |   |          | 40,193,791     |   |   |   | 36,007,342 |   |
| Accumulated other comprehensive loss:                                                                                                                                       |   |          |           |   |   |   |   |   |
| Unrealized loss on interest rate swap, net of tax                                                                                                                           |   |          | (776,683       | ) |   |   | (645,685 | ) |
|                                                                                                                                                                        |   |          | 33,449,801     |   |   |   | 29,313,535 |   |
|                                                                                                                                                                        |   |          |           |   |   |   |   |   |
| Less: Treasury stock, 223,964 shares, at cost                                                                                                                               |   |          | (406,279       | ) |   |   | (406,279 | ) |
| Total shareholders’ equity                                                                                                                                            |   |          | 33,043,522     |   |   |   | 28,907,256 |   |
|                                                                                                                                                                        |   |          |           |   |   |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                                            |   | $             | 52,260,253     |   |   | $ | 49,432,546 |   |

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|                                                    |   | Years ended September 30, |       |
|---------------------------------------------------------|--------|---------------------------|------------|
|                                                    |   | 2010                      |       |   | 2009 |   |   | 2008 |   |
| Sales:                                                  |   |                      |       |   |   |   |   |   |   |
| Net new sales income                                    |   | $                         | 32,108,559 |   |   | $ | 27,053,746 |   |   | $ | 34,678,054 |   |
| Net refurbished sales income                            |   |                      | 9,444,802  |   |   |   | 9,704,744 |   |   |   | 16,090,192 |   |
| Net service income                                      |   |                      | 5,752,769  |   |   |   | 5,485,102 |   |   |   | 5,680,315 |   |
| Total net sales                                         |   |                      | 47,306,130 |   |   |   | 42,243,592 |   |   |   | 56,448,561 |   |
| Cost of sales                                           |   |                      | 32,850,524 |   |   |   | 29,315,645 |   |   |   | 39,839,667 |   |
| Gross profit                                            |   |                      | 14,455,606 |   |   |   | 12,927,947 |   |   |   | 16,608,894 |   |
| Operating, selling, general and administrative expenses |   |                      | 6,901,946  |   |   |   | 7,159,604 |   |   |   | 8,156,536 |   |
| Income from operations                                  |   |                      | 7,553,660  |   |   |   | 5,768,343 |   |   |   | 8,452,358 |   |
| Interest expense                                        |   |                      | 801,211    |   |   |   | 936,339 |   |   |   | 983,564 |   |
| Income before income taxes                              |   |                      | 6,752,449  |   |   |   | 4,832,004 |   |   |   | 7,468,794 |   |
| Provision for income taxes                              |   |                      | 2,566,000  |   |   |   | 1,813,000 |   |   |   | 2,801,000 |   |
| Net income                                              |   |                      | 4,186,449  |   |   |   | 3,019,004 |   |   |   | 4,667,794 |   |
|                                                    |   |                      |       |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss:                               |   |                      |       |   |   |   |   |   |   |   |   |   |
| Unrealized loss on interest rate swap, net of $72,000,  |   |                      |       |   |   |   |   |   |   |   |   |   |
| $292,000 and $112,000 tax benefit, respectively         |   |                      | (130,998   | ) |   |   | (457,741 | ) |   |   | (225,302 | ) |
|                                                    |   |                      |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                    |   | $                         | 4,055,451  |   |   | $ | 2,561,263 |   |   | $ | 4,442,492 |   |
|                                                    |   |                      |       |   |   |   |   |   |   |   |   |   |
| Net income                                              |   |                      | 4,186,449  |   |   |   | 3,019,004 |   |   |   | 4,667,794 |   |
| Preferred stock dividends                               |   |                      | –    |   |   |   | – |   |   |   | 133,480 |   |
| Net income attributable to common shareholders          |   | $                         | 4,186,449  |   |   | $ | 3,019,004 |   |   | $ | 4,534,314 |   |
|                                                    |   |                      |       |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                     |   |                      |       |   |   |   |   |   |   |   |   |   |
| Basic                                                   |   | $                         | 0.41       |   |   | $ | 0.30 |   |   | $ | 0.44 |   |
| Diluted                                                 |   | $                         | 0.41       |   |   | $ | 0.30 |   |   | $ | 0.44 |   |
| Shares used in per share calculation:                   |   |                      |       |   |   |   |   |   |   |   |   |   |
| Basic                                                   |   |                      | 10,132,658 |   |   |   | 10,162,122 |   |   |   | 10,263,365 |   |
| Diluted                                                 |   |                      | 10,136,610 |   |   |   | 10,164,216 |   |   |   | 10,281,136 |   |

----

|                                 |   |         |       |   |      |   |    |     |   |   |        |   |   |          |       |   | Accumulated   |   |       |   |   |   |     |   |
|--------------------------------------|--------|--------------|------------|--------|-----------|--------|---------|----------|--------|--------|-------------|--------|--------|---------------|------------|--------|---------------|--------|------------|--------|--------|--------|----------|--------|
|                                 |   |         |       |   |      |   |    | Series B |   |   |        |   |   |          |       |   | Other         |   |       |   |   |   |     |   |
|                                 |   | Common Stock |       |   | Preferred |   |    | Paid-in  |   |   | Retained    |   |   | Comprehensive |       |   | Treasury      |   |       |   |   |
|                                 |   | Shares       |       |   | Amount    |   |    | Stock    |   |   | Capital     |   |   | Earnings      |       |   | Income (Loss) |   |       | Stock  |   |   | Total    |   |
| Balance, September 30, 2007          |   |         | 10,270,756 |   |      | $      | 102,708 |     |   | $      | 12,000,000  |   |   | $             | (6,383,574 | )      |          | $      | 28,454,024 |   |   | $      | 37,358   |   |   | $ | (54,164 | ) |   | $ | 34,156,352 |   |
|                                 |   |         |       |   |      |   |    |     |   |   |        |   |   |          |       |   |          |   |       |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Net income                           |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | –    |   |          |   | 4,667,794  |   |   |   | –  |   |   |   | – |   |   |   | 4,667,794 |   |
| Preferred stock dividends            |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | –    |   |          |   | (133,480   | )      |   |   | –  |   |   |   | – |   |   |   | (133,480 | ) |
| Repurchase of preferred stock        |   |         | –    |   |      |   | – |     |   |   | (12,000,000 | )      |   |          | –    |   |          |   | –    |   |   |   | –  |   |   |   | – |   |   |   | (12,000,000 | ) |
| Stock issuance                       |   |         | 16,359     |   |      |   | 164     |     |   |   | –     |   |   |          | 69,836     |   |          |   | –    |   |   |   | –  |   |   |   | – |   |   |   | 70,000 |   |
| Stock options exercised              |   |         | 7,000      |   |      |   | 69      |     |   |   | –     |   |   |          | 20,180     |   |          |   | –    |   |   |   | –  |   |   |   | – |   |   |   | 20,249 |   |
| Net unrealized loss on interest swap |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | –    |   |          |   | –    |   |   |   | (225,302 | )      |   |   | – |   |   |   | (225,302 | ) |
| Share based compensation expense     |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | 20,661     |   |          |   | –    |   |   |   | –  |   |   |   | – |   |   |   | 20,661 |   |
|                                 |   |         |       |   |      |   |    |     |   |   |        |   |   |          |       |   |          |   |       |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance, September 30, 2008          |   |         | 10,294,115 |   |      | $      | 102,941 |     |   | $      | –     |   |   | $             | (6,272,897 | )      |          | $      | 32,988,338 |   |   | $      | (187,944 | )      |   | $ | (54,164 | ) |   | $ | 26,576,274 |   |
|                                 |   |         |       |   |      |   |    |     |   |   |        |   |   |          |       |   |          |   |       |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Net income                           |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | –    |   |          |   | 3,019,004  |   |   |   | –  |   |   |   | – |   |   |   | 3,019,004 |   |
| Purchase of common stock             |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | –    |   |          |   | –    |   |   |   | –  |   |   |   | (352,115 | ) |   |   | (352,115 | ) |
| Stock issuance                       |   |         | 46,669     |   |      |   | 467     |     |   |   | –     |   |   |          | 69,533     |   |          |   | –    |   |   |   | –  |   |   |   | – |   |   |   | 70,000 |   |
| Net unrealized loss on interest swap |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | –    |   |          |   | –    |   |   |   | (457,741 | )      |   |   | – |   |   |   | (457,741 | ) |
| Share based compensation expense     |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | 51,834     |   |          |   | –    |   |   |   | –  |   |   |   | – |   |   |   | 51,834 |   |
|                                 |   |         |       |   |      |   |    |     |   |   |        |   |   |          |       |   |          |   |       |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance, September 30, 2009          |   |         | 10,340,784 |   |      | $      | 103,408 |     |   | $      | –     |   |   | $             | (6,151,530 | )      |          | $      | 36,007,342 |   |   | $      | (645,685 | )      |   | $ | (406,279 | ) |   | $ | 28,907,256 |   |
|                                 |   |         |       |   |      |   |    |     |   |   |        |   |   |          |       |   |          |   |       |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Net income                           |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | –    |   |          |   | 4,186,449  |   |   |   | –  |   |   |   | – |   |   |   | 4,186,449 |   |
| Stock issuance                       |   |         | 27,150     |   |      |   | 271     |     |   |   | –     |   |   |          | 59,729     |   |          |   | –    |   |   |   | –  |   |   |   | – |   |   |   | 60,000 |   |
| Net unrealized loss on interest swap |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | –    |   |          |   | –    |   |   |   | (130,998 | )      |   |   | – |   |   |   | (130,998 | ) |
| Share based compensation expense     |   |         | –    |   |      |   | – |     |   |   | –     |   |   |          | 20,815     |   |          |   | –    |   |   |   | –  |   |   |   | – |   |   |   | 20,815 |   |
|                                 |   |         |       |   |      |   |    |     |   |   |        |   |   |          |       |   |          |   |       |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance, September 30, 2010          |   |         | 10,367,934 |   |      | $      | 103,679 |     |   | $      | –     |   |   | $             | (6,070,986 | )      |          | $      | 40,193,791 |   |   | $      | (776,683 | )      |   | $ | (406,279 | ) |   | $ | 33,043,522 |   |

----

|                                                              |   | Years ended September 30, |       |   |
|-------------------------------------------------------------------|--------|---------------------------|------------|--------|
|                                                              |   | 2010                      |       |   | 2009 |   |   | 2008 |
| Operating Activities                                              |   |                      |       |   |   |   |   |   |
| Net income                                                        |   | $                         | 4,186,449  |   |   | $ | 3,019,004 |   |   | $ | 4,667,794 |   |
| Adjustments to reconcile net income to net cash                   |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| provided by operating activities:                                 |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                     |   |                      | 398,778    |   |   |   | 411,052 |   |   |   | 388,702 |   |
| Provision for losses on accounts receivable                       |   |                      | 26,162     |   |   |   | 129,307 |   |   |   | 38,238 |   |
| Provision for excess and obsolete inventories                     |   |                      | 805,684    |   |   |   | 970,720 |   |   |   | 1,670,425 |   |
| (Gain) loss on disposal of property and equipment                 |   |                      | 7,704      |   |   |   | (8,594 | ) |   |   | - |   |
| Deferred income tax benefit                                       |   |                      | (3,000     | )      |   |   | (40,000 | ) |   |   | (225,000 | ) |
| Share based compensation expense                                  |   |                      | 84,984     |   |   |   | 121,834 |   |   |   | 61,492 |   |
| Cash provided (used) by changes in current assetsand liabilities: |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                               |   |                      | (732,759   | )      |   |   | 2,375,719 |   |   |   | (32,521 | ) |
| Income tax refund receivable                                      |   |                      | (114,994   | )      |   |   | (4,676 | ) |   |   | 69,517 |   |
| Inventories                                                       |   |                      | 4,950,218  |   |   |   | (458,926 | ) |   |   | (3,884,316 | ) |
| Prepaid expenses                                                  |   |                      | 14,856     |   |   |   | 1,137 |   |   |   | 16,559 |   |
| Other  assets                                           |   |                      | 693        |   |   |   | 1,014 |   |   |   | 42,423 |   |
| Accounts payable                                                  |   |                      | 228,355    |   |   |   | (743,863 | ) |   |   | (1,034,666 | ) |
| Accrued expenses                                                  |   |                      | 244,592    |   |   |   | (50,850 | ) |   |   | (185,218 | ) |
| Net cash provided by operating activities                         |   |                      | 10,097,722 |   |   |   | 5,722,878 |   |   |   | 1,593,429 |   |
|                                                              |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Investing Activities                                              |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Additions to machinery and equipment                              |   |                      | (77,078    | )      |   |   | (58,411 | ) |   |   | (125,610 | ) |
| Additions of land and buildings                                   |   |                      | (19,743    | )      |   |   | (11,133 | ) |   |   | (694,743 | ) |
| Disposals of machinery and equipment                              |   |                      | 22,750     |   |   |   | 36,594 |   |   |   | 3,500 |   |
| Net cash used in investing activities                             |   |                      | (74,071    | )      |   |   | (32,950 | ) |   |   | (816,853 | ) |
|                                                              |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Financing Activities                                              |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Net change under bank revolving line of credit                    |   |                      | –    |   |   |   | (2,789,252 | ) |   |   | 1,053,847 |   |
| Proceeds on notes payable                                         |   |                      | –    |   |   |   | – |   |   |   | 12,000,000 |   |
| Payments on notes payable                                         |   |                      | (1,984,504 | )      |   |   | (1,863,768 | ) |   |   | (1,552,974 | ) |
| Repurchase of preferred stock                                     |   |                      | –    |   |   |   | – |   |   |   | (12,000,000 | ) |
| Purchase of treasury stock                                        |   |                      | –    |   |   |   | (352,115 | ) |   |   | – |   |
| Proceeds from stock options exercised                             |   |                      | –    |   |   |   | – |   |   |   | 20,249 |   |
| Payments of preferred dividends                                   |   |                      | –    |   |   |   | – |   |   |   | (343,480 | ) |
| Net cash used in financing activities                             |   |                      | (1,984,504 | )      |   |   | (5,005,135 | ) |   |   | (822,358 | ) |
|                                                              |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents              |   |                      | 8,039,147  |   |   |   | 684,793 |   |   |   | (45,782 | ) |
| Cash and cash equivalents at beginning of year                    |   |                      | 700,004    |   |   |   | 15,211 |   |   |   | 60,993 |   |
| Cash and cash equivalents at end of year                          |   | $                         | 8,739,151  |   |   | $ | 700,004 |   |   | $ | 15,211 |   |
|                                                              |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Supplemental cash flow information:                               |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Cash paid for interest                                            |   | $                         | 814,332    |   |   | $ | 944,777 |   |   | $ | 901,940 |   |
| Cash paid for income taxes                                        |   | $                         | 2,767,180  |   |   | $ | 1,934,465 |   |   | $ | 2,946,329 |   |

----

----

----

----

|                                        |   | 2010   |       |   | 2009   |   |
|---------------------------------------------|--------|--------|------------|--------|--------|--------|
| New                                         |   | $      | 21,808,323 |   |   | $      | 24,723,788 |   |
| Refurbished                                 |   |   | 8,147,399  |   |   |   | 10,638,836 |   |
| Allowance for excess and obsolete inventory |   |   | (2,545,000 | )      |   |   | (2,196,000 | ) |
|                                        |   |   |       |   |   |   |   |   |
|                                        |   | $      | 27,410,722 |   |   | $      | 33,166,624 |   |

|     |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|----------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Current  |   | $      | 2,569,000 |   |   | $      | 1,853,000 |   |   | $ | 3,026,000 |   |
| Deferred |   |   | (3,000    | )      |   |   | (40,000   | )      |   |   | (225,000 | ) |
|     |   |   |      |   |   |   |      |   |   |   |   |   |
|     |   | $      | 2,566,000 |   |   | $      | 1,813,000 |   |   | $ | 2,801,000 |   |

----

|                                              |   | 2010   |    |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Statutory tax rate                                |   |   | 34.0    | %      |   |   | 34.0   | %      |   |   | 34.0 | % |
| State income taxes, net of U.S.                   |   |   |    |   |   |   |   |   |   |   |   |   |
|      federal tax benefit |   |   | 4.0     | %      |   |   | 4.7    | %      |   |   | 4.6 | % |
| Tax credits and exclusions                        |   |   | – |   |   |   | (1.2   | %)     |   |   | (1.1 | %) |
|                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Company’s effective tax rate                |   |   | 38.0    | %      |   |   | 37.5   | %      |   |   | 37.5 | % |

|                                                     |   | 2010   |      |   | 2009   |   |
|----------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Net operating loss carryforwards                         |   | $      | 714,000   |   |   | $      | 826,000 |   |
| Financial basis in excess of tax basis of certain assets |   |   | (575,000  | )      |   |   | (574,000 | ) |
| Accounts receivable                                      |   |   | 114,000   |   |   |   | 116,000 |   |
| Inventory                                                |   |   | 1,097,000 |   |   |   | 1,015,000 |   |
| Interest rate swap                                       |   |   | 476,000   |   |   |   | 404,000 |   |
| Other, net                                               |   |   | 275,000   |   |   |   | 239,000 |   |
|                                                     |   |   |      |   |   |   |   |   |
|                                                     |   | $      | 2,101,000 |   |   | $      | 2,026,000 |   |

| Deferred tax assets are classified as: |   |   |      |   |   |   |
|----------------------------------------|--------|--------|-----------|--------|--------|--------|
|    Current              |   | $      | 1,423,000 |   |   | $      | 1,282,000 |   |
|    Noncurrent           |   |   | 678,000   |   |   |   | 744,000 |   |
|                                   |   |   |      |   |   |   |   |   |
|                                   |   | $      | 2,101,000 |   |   | $      | 2,026,000 |   |

----

|                        |   | 2010   |      |   | 2009   |   |
|-----------------------------|--------|--------|-----------|--------|--------|--------|
| Employee costs              |   | $      | 971,099   |   |   | $      | 724,349 |   |
| Taxes other than income tax |   |   | 154,835   |   |   |   | 148,540 |   |
| Interest                    |   |   | 60,065    |   |   |   | 73,186 |   |
| Other, net                  |   |   | 154,415   |   |   |   | 149,747 |   |
|                        |   |   |      |   |   |   |   |   |
|                        |   | $      | 1,340,414 |   |   | $      | 1,095,822 |   |

----

| 2011       |   | $      | 1,814,008  |   |
|------------|--------|--------|------------|--------|
| 2012       |   |   | 1,814,008  |   |
| 2013       |   |   | 8,741,508  |   |
| 2014       |   |   | 184,008    |   |
| 2015       |   |   | 184,008    |   |
| Thereafter |   |   | 1,134,596  |   |
|       |   |   |       |   |
| Total      |   | $      | 13,872,136 |   |

|                         |   | Amount of Loss Recognized inOCI on Derivative, Net of Tax |     |   | Amount of Loss Recognized inAccumulated OCI, Net of Tax |   |
|------------------------------|--------|-----------------------------------------------------------|----------|--------|---------------------------------------------------------|--------|
|                         |   | Year Ended September 30,                                  |     |   | September 30,                                           |   |   | September 30, |   |
|                         |   | 2010                                                      |     |   | 2009                                                    |   |   | 2010 |   |   | 2009 |   |
|                         |   |                                                      |     |   |                                                    |   |   |   |   |   |   |   |
| Interest rate swap agreement |   | $                                                         | (130,998 | )      |                                                    | $      | (457,741 | ) |   | $ | (776,683 | ) |   | $ | (645,685 | ) |

| ·   | Level 1 – Quoted prices for identical assets in active markets or liabilities that we have the ability to access. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2 – Inputs are other than quoted prices in active markets included in Level 1 that are either directly or indirectly observable. These inputs are either directly observable in the marketplace or indirectly observable through corroboration with market data for substantially the full contractual term of the asset or liability being measured. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 – Inputs that are not observable for which there is little, if any, market activity for the asset or liability being measured. These inputs reflect management’s best estimate of the assumptions market participants would use in determining fair value. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              |   |  Options |    |   | Weighted AverageExercise Price |   |    | Aggregate IntrinsicValue |   |
|-----------------------------------|--------|---------------|---------|--------|--------------------------------|--------|---------|-------------------------------|--------|
| Outstanding at September 30, 2009 |   |          | 148,850 |   |                           | $      | 3.43    |                          |   |   |   |
| Granted                           |   |          | – |   |                           |   | – |                          |   |   |   |
| Exercised                         |   |          | – |   |                           |   | – |                          |   |   | – |   |
| Expired                           |   |          | (12,000 | )      |                           | $      | 3.13    |                          |   |   |   |   |
| Forfeited                         |   |          | – |   |                           |   | – |                          |   |   |   |   |
| Outstanding at September 30, 2010 |   |          | 136,850 |   |                           | $      | 3.46    |                          |   |   | – |   |
| Exercisable at September 30, 2010 |   |          | 96,850  |   |                           | $      | 3.65    |                          |   |   | – |   |

----

|           |          | Exercisable   | Remaining   |
|----------------|---------------|---------------|-------------|
|           | Stock Options | Stock Options | Contractual |
| Exercise Price | Outstanding   | Outstanding   | Life        |
| $3.001         | 80,000        | 40,000        | 7.9 years   |
| $3.450         | 15,000        | 15,000        | 6.5 years   |
| $5.780         | 15,000        | 15,000        | 5.5 years   |
| $4.620         | 15,000        | 15,000        | 4.5 years   |
| $4.400         | 3,000         | 3,000         | 3.5 years   |
| $1.650         |  2,000   |  2,000   | 2.5 years   |
| $0.810         |  2,000   |  2,000   | 1.5 years   |
| $1.500         | 4,850         | 4,850         | 0.5 years   |
|           | 136,850       | 96,850        |        |

|                                             |   | 2008   |    |
|--------------------------------------------------|--------|--------|---------|
| Weighted average grant date fair value ofoptions |   | $      | 1.09    |   |
| Black-Scholes model assumptions:                 |   |   |    |   |
| Average expected life (years)                    |   |   | 6.25    |   |
| Average expected volatility factor               |   |   | 30      | % |
| Average risk-free interest rate                  |   |   | 3.1     | % |
| Average expected dividends yield                 |   |   | – |   |

|                       |   | 2010   |    |   | 2009   |   |   | 2008   |   |
|----------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Fiscal year 2006 grant     |   | $      | – |   |   | $      | 3,063  |   |   | $ | 6,510 |   |
| Fiscal year 2008 grant     |   |   | 20,815  |   |   |   | 48,771 |   |   |   | 14,151 |   |
|                       |   |   |    |   |   |   |   |   |   |   |   |   |
| Total compensation expense |   | $      | 20,815  |   |   | $      | 51,834 |   |   | $ | 20,661 |   |

----

|                   |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Fiscal year 2008 grant |   | $      | – |   |   | $      | 29,169  |   |   | $ | 40,831 |   |
| Fiscal year 2009 grant |   |   | 29,169  |   |   |   | 40,831  |   |   |   | – |   |
| Fiscal year 2010 grant |   |   | 35,000  |   |   |   | – |   |   |   | – |   |
|                   |   |   |    |   |   |   |    |   |   |   |   |   |
|                   |   | $      | 64,169  |   |   | $      | 70,000  |   |   | $ | 40,831 |   |

----

|                                  |   |   |       |   |   |   |       |   |   |
|---------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                  |   | 2010   |       |   | 2009   |   |       | 2008   |   |
| Net income                            |   | $      | 4,186,449  |   |   | $      | 3,019,004  |   |   | $ | 4,667,794 |   |
| Dividends on preferred stock          |   |   | –    |   |   |   | –    |   |   |   | 133,480 |   |
| Net income attributable to            |   |   |       |   |   |   |       |   |   |   |   |   |
|    common shareholders |   | $      | 4,186,449  |   |   | $      | 3,019,004  |   |   | $ | 4,534,314 |   |
|                                  |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic weighted average shares         |   |   | 10,132,658 |   |   |   | 10,162,122 |   |   |   | 10,263,365 |   |
| Effect of dilutive securities:        |   |   |       |   |   |   |       |   |   |   |   |   |
|    Stock options       |   |   | 3,952      |   |   |   | 2,094      |   |   |   | 17,771 |   |
| Diluted weighted average shares       |   |   | 10,136,610 |   |   |   | 10,164,216 |   |   |   | 10,281,136 |   |
|                                  |   |   |       |   |   |   |       |   |   |   |   |   |
| Earnings per common share:            |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic                                 |   | $      | 0.41       |   |   | $      | 0.30       |   |   | $ | 0.44 |   |
| Diluted                               |   | $      | 0.41       |   |   | $      | 0.30       |   |   | $ | 0.44 |   |

|                                 |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|--------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Stock options excluded               |   |   | 128,000 |   |   |   | 140,000 |   |   |   | 60,000 |   |
| Weighted average exercise price of   |   |   |    |   |   |   |    |   |   |   |   |   |
|    stock options      |   | $      | 3.60    |   |   | $      | 3.56    |   |   | $ | 5.30 |   |
| Average market price of common stock |   | $      | 2.49    |   |   | $      | 1.80    |   |   | $ | 4.48 |   |

----

|                              |   | FirstQuarter |       |   | SecondQuarter |   |       | ThirdQuarter |   |   | FourthQuarter |   |
|-----------------------------------|--------|--------------|------------|--------|---------------|--------|------------|--------------|--------|--------|---------------|--------|
| Fiscal year ended 2010            |   |         |       |   |          |   |       |         |   |   |          |   |
| Net sales and service income      |   | $            | 10,219,221 |   |          | $      | 12,055,521 |         |   | $      | 13,297,449    |   |   | $ | 11,733,939 |   |
| Gross profit                      |   | $            | 3,330,340  |   |          | $      | 3,619,796  |         |   | $      | 4,207,974     |   |   | $ | 3,297,496 |   |
| Net income                        |   | $            | 859,639    |   |          | $      | 1,081,845  |         |   | $      | 1,396,234     |   |   | $ | 848,731 |   |
| Basic earnings per common share   |   | $            | 0.08       |   |          | $      | 0.11       |         |   | $      | 0.14          |   |   | $ | 0.08 |   |
| Diluted earnings per common share |   | $            | 0.08       |   |          | $      | 0.11       |         |   | $      | 0.14          |   |   | $ | 0.08 |   |
|  Fiscal year ended 2009      |   |         |       |   |          |   |       |         |   |   |          |   |   |   |   |   |
| Net sales and service income      |   | $            | 12,800,006 |   |          | $      | 10,126,636 |         |   | $      | 9,148,907     |   |   | $ | 10,168,043 |   |
| Gross profit                      |   | $            | 3,833,786  |   |          | $      | 3,073,992  |         |   | $      | 2,974,965     |   |   | $ | 3,045,204 |   |
| Net income                        |   | $            | 954,146    |   |          | $      | 698,359    |         |   | $      | 654,606       |   |   | $ | 711,893 |   |
| Basic earnings per common share   |   | $            | 0.09       |   |          | $      | 0.07       |         |   | $      | 0.06          |   |   | $ | 0.07 |   |
| Diluted earnings per common share |   | $            | 0.09       |   |          | $      | 0.07       |         |   | $      | 0.06          |   |   | $ | 0.07 |   |
|                              |   |         |       |   |          |   |       |         |   |   |          |   |   |   |   |   |
| Fiscal year ended 2008            |   |         |       |   |          |   |       |         |   |   |          |   |   |   |   |   |
| Net sales and service income      |   | $            | 14,739,368 |   |          | $      | 13,851,819 |         |   | $      | 13,213,802    |   |   | $ | 14,643,572 |   |
| Gross profit                      |   | $            | 4,750,828  |   |          | $      | 4,568,063  |         |   | $      | 3,363,548     |   |   | $ | 3,926,455 |   |
| Net income                        |   | $            | 1,593,111  |   |          | $      | 1,411,109  |         |   | $      | 605,504       |   |   | $ | 1,058,070 |   |
| Basic earnings per common share   |   | $            | 0.14       |   |          | $      | 0.14       |         |   | $      | 0.06          |   |   | $ | 0.10 |   |
| Diluted earnings per common share |   | $            | 0.14       |   |          | $      | 0.14       |         |   | $      | 0.06          |   |   | $ | 0.10 |   |
|                              |   |         |       |   |          |   |       |         |   |   |          |   |   |   |   |   |

----

----

----

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
|----------|-------------------------------------------------------------------------------------------------|

----

|   | 2. | The following financial statement Schedule II – Valuation and Qualifying Accounts for the years ended September 30, 2010, 2009 and 2008 is filed as part of this report.  All other financial statement schedules have been omitted because they are not applicable or are not required or the information required to be set forth therein is included in the financial statements or notes thereto contained in Part II, Item 8 of this current report. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   | Balance at |      |   | Charged to |   |      |       |   |   |       |   |   | Balance at |   |
|---------------------------------------------|--------|------------|-----------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|--------|------------|--------|
|                                        |   | Beginning  |      |   | Costs and  |   |      |       |   |   |       |   |   | End        |   |
|                                        |   | of Period  |      |   | Expenses   |   |      | Write offs |   |   | Recoveries |   |   | of Period  |   |
| Period Ended September 30, 2010             |   |       |      |   |       |   |      |       |   |   |       |   |   |       |   |
| Allowance for Doubtful Accounts             |   | $          | 300,000   |   |       |   | 26,162    |       |   |   | (26,162    | )      |   |       | -      |   |   | $ | 300,000 |   |
| Allowance for Excess and Obsolete Inventory |   |       | 2,196,000 |   |       |   | 804,565   |       |   |   | (455,565   | )      |   |       | -      |   |   |   | 2,545,000 |   |
|                                        |   |       |      |   |       |   |      |       |   |   |       |   |   |       |   |   |   |   |   |   |
| Period Ended September 30, 2009             |   |       |      |   |       |   |      |       |   |   |       |   |   |       |   |   |   |   |   |   |
| Allowance for Doubtful Accounts             |   | $          | 253,000   |   |       |   | 126,346   |       |   |   | (79,346    | )      |   |       | -      |   |   | $ | 300,000 |   |
| Allowance for Excess and Obsolete Inventory |   |       | 1,958,000 |   |       |   | 981,692   |       |   |   | (743,692   | )      |   |       | -      |   |   |   | 2,196,000 |   |
|  Period Ended September 30, 2008       |   |       |      |   |       |   |      |       |   |   |       |   |   |       |   |   |   |   |   |   |
| Allowance for Doubtful Accounts             |   | $          | 261,000   |   |       |   | 38,238    |       |   |   | (46,238    | )      |   |       | -      |   |   | $ | 253,000 |   |
| Allowance for Excess and Obsolete Inventory |   |       | 697,000   |   |       |   | 1,670,425 |       |   |   | (409,425   | )      |   |       | -      |   |   |   | 1,958,000 |   |

----

|   | 3.1 | Certificate of Incorporation of the Company and amendments thereto incorporated by reference to Exhibit 3.1 to the Annual Report on Form 10-KSB filed with the Securities and Exchange Commission by the Company on January 10, 2003. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Bylaws of the Company, as amended, incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission by the Company on December 31, 2007. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | Certificate of Designation, Preferences, Rights and Limitations of ADDvantage Media Group, Inc. Series A 5% Cumulative Convertible Preferred Stock and Series B 7% Cumulative Preferred Stock as filed with the Oklahoma Secretary of State on September 30, 1999 incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission by the Company on October 14, 1999. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Revolving Credit and Term Loan Agreement dated September 30, 2004 ("Revolving Credit and Term Loan Agreement"), incorporated by reference to Exhibit 10.5 to the Company's Form 10-K filed with the Securities and Exchange Commission on December 22, 2004. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | First Amendment to the Revolving Credit and Term Loan Agreement dated September 30, 2005, incorporated by reference to Exhibit 10.6 to the Company’s Form 10-K filed with the Securities and Exchange Commission on December 28, 2005. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3 | Third Amendment to the Revolving Credit and Term Loan Agreement dated November 20, 2006, incorporated by reference to Exhibit 10.5 to the Company’s Form 10-K filed with the Securities and Exchange Commission on December 27, 2006. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4 | Fourth Amendment to the Revolving Credit and Term Loan Agreement dated November 27, 2007, incorporated by reference to Exhibit 10.3 to the Company’s Form 10-K filed with the Securities and Exchange Commission on December 31, 2007. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | Fifth Amendment to the Revolving Credit and Term Loan Agreement dated February 4, 2009, incorporated by reference to Exhibit 10.5 to the Company's Form 10-K/A filed with the Securities and Exchange Commission on December 17, 2009. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Amended and Restated Revolving Credit and Term Loan Agreement dated November 30, 2010. |
|--------|------|----------------------------------------------------------------------------------------|

|   | 10.7 | The ADDvantage Media Group, Inc. 1998 Incentive Stock Plan,  incorporated by reference to Appendix A to the Company's Proxy Statement relating to the Company's 1998 Annual Meeting, filed with the Securities and Exchange Commission on April 28, 1998. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | First Amendment to ADDvantage Media Group, Inc. 1998 Incentive |
|--------|------|----------------------------------------------------------------|

|   | Stock Plan, incorporated by reference to Exhibit 4.4 to the Company's Registration Statement on Form S-8 filed with the Securities and Exchange Commission on November 20, 2003. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | Senior Management Incentive Compensation Plan, incorporated by  reference to the Current Report on Form 8-K filed with the Securities and Exchange Commission by the Company on March 9, 2007. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.10 | Employment Contract between the Company and Scott A. Francis, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission by the Company on September 18, 2008. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.1 | Listing of the Company's subsidiaries. |
|--------|------|----------------------------------------|

|   | 23.1 | Consent of HoganTaylor LLP. |
|--------|------|-----------------------------|

|   | 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------|

----

|                                                 |   | ADDvantage Technologies Group, Inc.                       |
|------------------------------------------------------|--------|-----------------------------------------------------------|
| Date:     December 14, 2010 | By:    | /s/ Kenneth A. Chymiak                                    |
|                                                 |   | Kenneth A. Chymiak, President and Chief Executive Officer |

| Date:     December 14, 2010 | /s/ David E. Chymiak                                                                                |
|------------------------------------------------------|-----------------------------------------------------------------------------------------------------|
|                                                 | David E. Chymiak, Chairman of the Board of Directors                                                |
|                                                 |                                                                                                |
| Date:     December 14, 2010 | /s/ Kenneth A. Chymiak                                                                              |
|                                                 | Kenneth A. Chymiak, President and Chief Executive Officer(Principal Executive Officer) and Director |
|                                                 |                                                                                                |
| Date:     December 14, 2010 | /s/ Scott A. Francis                                                                                |
|                                                 | Scott A. Francis, Chief Financial Officer (Principal Financial Officer)                             |
|                                                 |                                                                                                |
| Date:     December 14, 2010 | /s/ Thomas J. Franz                                                                                 |
|                                                 | Thomas J. Franz, Director                                                                           |
|                                                 |                                                                                                |
| Date:     December 14, 2010 | /s/ Paul F. Largess                                                                                 |
|                                                 | Paul F. Largess, Director                                                                           |
|                                                 |                                                                                                |
| Date:     December 14, 2010 | /s/ James C. McGill                                                                                 |
|                                                 | James C. McGill, Director                                                                           |
|                                                 |                                                                                                |
| Date:     December 14, 2010 | /s/ Stephen J. Tyde                                                                                 |
|                                                 | Stephen J. Tyde, Director                                                                           |

----

|   | 3.1 | Certificate of Incorporation of the Company and amendments thereto incorporated by reference to Exhibit 3.1 to the Annual Report on Form 10-KSB filed with the Securities and Exchange Commission by the Company on January 10, 2003. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Bylaws of the Company, as amended, incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission by the Company on December 31, 2007. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | Certificate of Designation, Preferences, Rights and Limitations of ADDvantage Media Group, Inc. Series A 5% Cumulative Convertible Preferred Stock and Series B 7% Cumulative Preferred Stock as filed with the Oklahoma Secretary of State on September 30, 1999 incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission by the Company on October 14, 1999. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Revolving Credit and Term Loan Agreement dated September 30, 2004 ("Revolving Credit and Term Loan Agreement"), incorporated by reference to Exhibit 10.5 to the Company's Form 10-K filed with the Securities and Exchange Commission on December 22, 2004. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | First Amendment to the Revolving Credit and Term Loan Agreement dated September 30, 2005, incorporated by reference to Exhibit 10.6 to the Company’s Form 10-K filed with the Securities and Exchange Commission on December 28, 2005. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3 | Third Amendment to the Revolving Credit and Term Loan Agreement dated November 20, 2006, incorporated by reference to Exhibit 10.5 to the Company’s Form 10-K filed with the Securities and Exchange Commission on December 27, 2006. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4 | Fourth Amendment to the Revolving Credit and Term Loan Agreement dated November 27, 2007, incorporated by reference to Exhibit 10.3 to the Company’s Form 10-K filed with the Securities and Exchange Commission on December 31, 2007. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | Fifth Amendment to the Revolving Credit and Term Loan Agreement dated February 4, 2009, incorporated by reference to Exhibit 10.5 to the Company's Form 10-K/A filed with the Securities and Exchange Commission on December 17, 2009. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Amended and Restated Revolving Credit and Term Loan Agreement dated November 30, 2010. |
|--------|------|----------------------------------------------------------------------------------------|

|   | 10.7 | The ADDvantage Media Group, Inc. 1998 Incentive Stock Plan,  incorporated by reference to Appendix A to the Company's Proxy Statement relating to the Company's 1998 Annual Meeting, filed with the Securities and Exchange Commission on April 28, 1998. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | First Amendment to ADDvantage Media Group, Inc. 1998 Incentive |
|--------|------|----------------------------------------------------------------|

|   | Stock Plan, incorporated by reference to Exhibit 4.4 to the Company's Registration Statement on Form S-8 filed with the Securities and Exchange Commission on November 20, 2003. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.9 | Senior Management Incentive Compensation Plan, incorporated by  reference to the Current Report on Form 8-K filed with the Securities and Exchange Commission by the Company on March 9, 2007. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10 | Employment Contract between the Company and Scott A. Francis, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission by the Company on September 18, 2008. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.1 | Listing of the Company's subsidiaries. |
|--------|------|----------------------------------------|

|   | 23.1 | Consent of HoganTaylor LLP. |
|--------|------|-----------------------------|

|   | 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------|

----