UNITED ~~STATES~~ STATES SECURITIES AND EXCHANGE COMMISSION ~~Washington, D.C. 20549~~

Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the fiscal year ended September 30, ~~2001~~ 2004

Commission File Number 33-98404

T.J.T., INC. ~~(Exact name of registrant as specified in its charter)~~

~~WASHINGTON~~ (~~State~~Exact orname ~~other jurisdiction~~ of ~~incorporation~~registrant oras specified ~~organization)~~in ~~82-0333246~~its ~~(IRS Employer Identification No.~~charter)

843 North Washington, P.O. Box 278, Emmett, Idaho 83617 (Address of principal executive offices)

WASHINGTON		82-0333246
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

~~(208) 365-5321 (Registrant's~~843 ~~telephone~~North Washington, ~~number)~~P.O. Box 278, Emmett, Idaho 83617

~~Securities registered under Sections 12~~(~~b) and~~Address ~~12(g)~~ of ~~the~~principal ~~Exchange Act:~~ executive offices)

Title of each class		Name of each exchange on which registered
Common Stock, $.001 par value		OTC Bulletin Board

(208) 365-5321

~~Indicate by check mark whether the registrant~~ (~~1) has~~Registrant’s ~~filed~~telephone ~~all reports required to be filed by Section 13 or 15(d~~number) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes /x/ No / /

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

Securities registered under Sections 12 (b) and 12 (g) of the Exchange Act:
	Title of each class	Name of each exchange on which registered
	Common Stock, $.001 par value	OTC Bulletin Board

~~Registrant's~~Indicate by check mark whether the registrant ~~revenues~~(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the ~~fiscal~~registrant ~~year~~was ~~ended~~required ~~September 30,~~to ~~2001~~file ~~were~~such ~~$21~~reports),~~219,000.~~ and (2) has been subject to such filing requirements for the past 90 days.

~~Based on~~Yes ~~the~~ý ~~stock's~~No ~~closing price of $.25 on December 18, 2001, non-affiliated market capital was approximately $737,913.~~ o

AsIndicate by check mark if disclosure of delinquent filers pursuant to Item 405 of ~~December 18,~~Regulation ~~2001,~~S-K ~~there~~is ~~were~~not 4contained herein,~~854,739~~ ~~shares~~and ofwill not be contained, to the best of registrant'’s ~~$.001~~knowledge, ~~par~~in definitive ~~value~~proxy ~~common~~or ~~stock~~information ~~outstanding~~statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

~~DOCUMENTS~~Indicate by ~~INCORPORATED~~check BYmark ~~REFERENCE~~ whether the registrant is an accelerated filer (as defined in the Exchange Act Rule 12d-2). Yes o No ý

~~The registrant'~~Registrant’s ~~definitive~~revenues ~~proxy~~for ~~statement~~the tofiscal beyear ~~dated~~ended ~~on or after January~~September 1830, ~~2002, for use in connection with the annual meeting of stockholders to~~2004 bewere ~~held on February~~ $19, ~~2002~~701, ~~portions of which are incorporated by reference into Part III of the Form 10-K~~243.

As of December 17, 2003, there were 4,504,939 shares of the registrant’s $.001 par value common stock outstanding. Based on the stock’s closing price of $.76 on ~~PART~~December 17, I 2004, non-affiliated market value was approximately $1,789,600.

DOCUMENTS ITEMINCORPORATED 1. BUSINESS BY REFERENCE

~~Item~~Portions ~~1(a).~~of ~~General~~the ~~Development~~registrant’s definitive proxy statement to be dated on or after January 17, 2005, for use in connection with the annual meeting of ~~Business~~ stockholders to be held on February 22, 2005, are hereby incorporated by reference into Part III of the Form 10-K.

~~Forward~~PART ~~Looking Statements and Risk Factors~~ I

ThisForward Form 10-KLooking containsStatements certain forward-looking statements which are based on management's current expectations. These forward-looking statements are subject to certain risks and uncertainties,Risk The words "believe," "expect," "anticipate," "intend," "estimate," "will," "should," "could," and other expressions that indicate future events and trends identify forward-looking statements. The Company has identified risk factors which could cause actual results to differ substantially from the forward-looking statements. These risk factors include, but are not limited to, general economic conditions, changes in interest rates, availability of financing, real estate values, competitive pressure on both the purchasing of used axles and tires from manufactured housing dealers and the selling of refurbished axles and tires to manufactured housing factories, adverse weather conditions, the economic viability of our customers and vendors, changes in legislation or regulations, availability of qualified employees, and the outcome of current legal proceedings. Factors

This Form 10-K contains certain forward-looking statements which are based on management’s current expectations. These forward-looking statements are subject to certain risks and uncertainties. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could,” and other expressions that indicate future events and trends identify forward-looking statements. The Company has identified risk factors which could cause actual results to differ substantially from the forward-looking statements. These risk factors include, but are not limited to, general economic conditions, changes in interest rates, availability of financing for both manufactured home buyers and suppliers, real estate values, adverse weather conditions, the economic viability of our customers and vendors, and availability of qualified employees. In addition, industry conditions that may have an adverse impact on future results include, but are not limited to, low barriers of entry, changes and/or enforcement in legislation or regulations, and competitive pressure on both the purchasing of used axles and tires from manufactured housing dealers and the selling of refurbished axles and tires to manufactured housing factories.

~~T.J.T., Inc.,~~All antabular ~~Idaho~~dollar ~~corporation,~~amounts ~~was~~are ~~established~~ in ~~1977. T.J.T., Inc. merged with~~ thousands and ~~into~~all ~~T.J.T., Inc.,~~period areferences ~~Washington~~are ~~corporation~~to ~~on December 13,~~the ~~1994. The~~ Company'’s ~~corporate~~fiscal ~~office~~period isunless ~~located at 843 N~~otherwise indicated. ~~Washington Street, Emmett, Idaho 83617.~~

~~The Company~~ITEM ~~has recycling and distribution locations in Emmett, Idaho; Centralia, Washington; Woodland, California; Phoenix, Arizona; and, Platteville, Colorado~~1. ~~The Company also manufactures hanger parts in Eugene, Oregon which are used by the manufactured housing producers to attach axles to homes and also maintains a sales office in Salem, Oregon.~~ BUSINESS

T.J.T., Inc. hasThe two business lines: repairing and reconditioning axles and tires for the manufactured housing industry, and distribution of after-market accessory products to manufactured housing dealers and set-up contractors, siding to site builders. Company

~~Recent~~T.J.T., ~~Events~~ Inc., an Idaho corporation, was established in 1977. T.J.T., Inc. merged with and into T.J.T., Inc., a Washington corporation on December 13, 1994. The Company’s corporate office is located at 843 N. Washington Street, Emmett, Idaho 83617. Information about the Company is available on the internet at www.tjt-inc.com. Information contained or referenced on our website is not incorporated by reference and does not form a part of this Annual Report on Form 10-K. Copies of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and the Executive Officers’ Code of Ethics are available free of charge by calling 1-800-458-3555.

The ~~manufactured~~Company ~~housing~~has ~~industry~~recycling ~~continues~~and todistribution ~~experience~~locations anin ~~overabundance~~Emmett, ofIdaho; Woodland, ~~new~~California; ~~and~~Chehalis, ~~used~~Washington; ~~homes~~and ~~due~~Platteville, inColorado. The ~~part~~Company toalso ~~overproduction~~manufactures ashanger ~~well~~parts ~~as a decrease~~ in ~~consumer~~Eugene, ~~demand~~Oregon ~~due~~which toare aused ~~tightening~~by ofthe ~~credit~~manufactured ~~standards. Manufactured~~ housing ~~production~~producers ~~facilities~~to asattach axles ~~well~~to ashomes. The ~~numerous~~Company maintained a sales ~~centers~~office ~~have~~in ~~closed~~Salem, Oregon and~~/or~~ ~~filed~~a ~~for~~recycling ~~bankruptcy.~~and Indistribution ~~the~~plant ~~Company's market~~in ~~area~~Phoenix, ~~the~~Arizona ~~decrease~~until inJune of ~~manufactured~~2003 ~~housing~~when ~~production~~both ~~was~~locations ~~approximately~~were ~~24%~~closed. The ~~from~~Company ~~fiscal~~operates ~~1999~~in toArizona, ~~2000~~New asMexico, ~~well~~Kansas, and assouthern ~~from~~California ~~2000~~through toNewCo ~~2001,~~Tire ~~according~~and toAxle, ~~statistics~~L.L.C. ~~from~~(NewCo), ~~the~~a ~~National~~joint ~~Conference~~venture ofestablished ~~States~~in ~~on Building Codes and Standards~~June 2003.

~~Prior to~~The ~~fiscal~~Company ~~2001~~has ~~the~~two ~~Company~~business ~~invested~~lines: ~~in,~~ repairing and onreconditioning aaxles ~~limited~~and ~~basis,~~tires ~~developed real estate~~ for ~~sale. A consensus exists among management as well as~~ the ~~Board~~manufactured ofhousing ~~Directors~~industry, ~~that~~and ~~further~~distribution ~~investments~~of inafter-market ~~investment~~accessory ~~property~~products ~~are not warranted as they are not sufficiently related~~ to ~~our core~~ manufactured housing ~~related business. For fiscal 2001 investment real property is a~~dealers ~~passive,~~and ~~non~~set-~~operating~~up ~~activity~~contractors, ~~with~~as awell ~~half-time~~as ~~employee~~siding ~~responsible~~to ~~for~~on-site ~~liquidating~~house ~~remaining real estate~~builders.

~~On July 9,~~Recent 2001, the Company instituted legal action in the District Court of the Third Judicial District, State of Idaho, against Patricia I. Bradley, Darren M. Bradley, B. Kelly Bradley, Mark T. Wilson, Richard L. Morris, Mark W. Bradley, George Bayn and Mary Carter (the "Bradley Group") who are all former employees and/or shareholders of the Company. The lawsuit seeks monetary damages and injunctive relief based upon the defendants' breach of covenants not to compete with the Company which were granted to the Company by members of the Bradley Group in November 1996 Events

2The manufactured housing industry recovery that began in 2004 was preceded by several years of decreases in manufactured housing production due to extensive repossessions and decreased consumer demand resulting from tightened credit standards. In 2004, production in the Company’s thirteen state market area increased by two percent from fiscal 2003 according to statistics from the Institute for Building Technology and Safety, Inc., a non-profit governmental organization providing

when the Company acquired Bradley Enterprises, Inc. by merger from the Bradley Group. The lawsuit also seeks monetary damages from Patricia I. Bradley, Darren M. Bradley and B. Kelly Bradley for breach of their fiduciary duty while they were members of the Board of Directors of the Company. The Bradley Group began directly competing with the Company in June, 2001, and the Company's business and operations have, and will be negatively impacted by competition from the Bradley Group, primarily in the states of Washington and Oregon. 2

~~On November 15~~independent evaluations, ~~2001~~research, ~~the~~and ~~Federal~~technical ~~District~~assistance ~~Court for the State of Idaho concluded an evidentiary hearing related~~ to afederal government ~~preliminary~~agencies ~~injunction~~and ~~sought~~formally byknown ~~the~~as ~~Company~~National ~~against~~Conference ~~the~~of ~~Bradley~~States ~~Group. The Company is awaiting a decision~~ on ~~that~~Building ~~hearing.~~Codes ~~Trial~~and ~~of the case has been set to commence March 4, 2002~~Standards.

OnIn January 2004, the property lease for the Centralia, Washington facility expired. Therefore, in December 212003, the ~~2000~~Washington ~~the~~facility was moved to a new location in Chehalis, Washington. The Company's ~~common~~entered ~~stock~~into ~~warrants~~a ~~expired~~lease with nooption to ~~warrants~~purchase ~~being~~agreement ~~exercised~~in August 2003. The Company may execute the purchase option at any time prior to the expiration of the lease. Leasehold improvements of approximately $99,000 were made to the property.

In ~~July~~ June ~~2001~~2003, the ~~Financial~~Company ~~Accounting~~entered ~~Standards~~into ~~Board~~a ~~(FASB)~~joint ~~issued~~venture, ~~Statement~~NewCo, with ofWest ~~Financial~~States ~~Accounting~~Recycling, ~~Standards (SFAS) No~~Inc. ~~141,~~ NewCo ~~"Business~~engages in ~~Combinations" and~~the ~~No. 142,~~manufactured ~~"Goodwill~~housing axle and ~~Other~~tire ~~Intangible~~recycling ~~Assets". SFAS 141 requires~~ business ~~combinations~~in ~~to be accounted for by~~ the ~~purchase~~Arizona ~~method~~and New ~~starting~~Mexico, ~~July 1~~Kansas, ~~2001.~~and ~~SFAS 142~~southern ~~requires intangible~~California ~~assets~~market toareas ~~be amortized over their useful life if determinable. Intangible assets~~ with ~~indeterminable~~plans ~~lives (such as goodwill) are no longer subject~~ to ~~amortization, rather they are subject~~expand tointo ~~impairment~~other bymarket ~~applying a fair-value-based test~~areas. The ~~SFAS 142~~Company ~~must~~has a be50 ~~adopted~~percent byownership ~~the Company on October 1~~interest, ~~2002~~and ~~unless~~under the ~~Company~~terms ~~elects~~of tothe ~~early~~joint ~~adopt~~venture, the ~~provisions on~~ ~~October 1,~~Company ~~2001.~~will ~~The~~receive ~~Company~~40 ~~has~~percent ~~$790,000~~ of net profits ~~goodwill~~or aslosses. In ~~of September 30~~addition, ~~2001~~the Company ~~and~~leases istrucks ~~recognizing~~and ~~$77,000~~equipment ofto ~~related~~the ~~amortization~~joint ~~expense each year~~venture.

~~Implementation of~~Axle ~~SFAS 142 will cease the amortization of goodwill~~ and instead require the Company to address whether goodwill is impaired using different rules than were acceptable during previous years. Under previous guidance positive cash flow was sufficient from the June 1998 Ken's Mobile Tire acquisition and the November 1996 Bradley Enterprises acquisition to suggest there was no impairment of the resulting goodwill. Under SFAS 142 the preferred impairment test is based upon the Company's market capitalization compared to net tangible assets. Under the guidance of the SFAS 142 preferred impairment test all goodwill will likely be impaired at the time of implementation of SFAS 142. The Company's Board of Directors have voted to implement SFAS 142 as of October 1, 2001. Reconditioning

~~Axle~~The Company buys used axles and ~~Tire~~tires ~~Reconditioning~~ from manufactured housing dealers throughout the western United States. The axles and tires are detached from the manufactured homes when they are placed on a pad or foundation upon sale and delivery of the manufactured home by the dealer or third party. The Company also buys used axles and tires from independent brokers.

In accordance with criteria set forth in The ~~Company~~Federal Manufactured ~~buys~~Housing ~~used~~Construction and Safety Standards, Section 3280.904(b), more commonly known as “The HUD Code,” after each use the axles are dismantled, cleaned, inspected, and ~~tires~~rebuilt ~~from~~as ~~manufactured~~necessary. This ~~housing~~is ~~dealers~~done ~~which~~in ~~are~~compliance ~~detached~~with ~~from~~recycling ~~the~~guidelines ~~manufactured~~and ~~homes~~quality assurance ~~after~~programs ~~they~~established and administered by independent third party listing companies. Approximately 30 axles are ~~placed~~rebuilt onfor aeach ~~pad~~eight orman-hour shift. Tires are graded and repaired. Axles and tires are then sold to manufactured ~~foundation~~housing factories. Each ~~The~~axle ~~Company~~and ~~also~~tire assembly ~~buys~~is used and recycled approximately three times a year. The tires and axles are sold principally to manufactured housing factories and ~~tires~~are ~~from~~delivered ~~independent~~to ~~brokers.~~their sites.

~~The used~~Sales of reconditioned axles and tires ~~are~~represented ~~dismantled~~74 atpercent, ~~the Company's recycling facilities. All major parts are inspected~~77 percent, ~~cleaned~~ and ~~replaced~~76 aspercent ~~required.~~of ~~Approximately~~total 30revenues ~~axles are rebuilt~~ for ~~each~~ ~~eight~~the ~~man-hour~~years ~~shift.~~ended ~~Tires are graded and repaired. Axles and tires are then sold to manufactured housing factories. Each axle and tire assembly is used and recycled approximately~~September 30, ~~three~~2004, ~~times~~2003, ~~a year. The tires~~ and ~~axles~~2002, ~~are sold principally to manufactured housing factories and are delivered to their sites~~respectively.

Sales ofAccessories reconditioned axles and tiresSiding were 72 percent, 70 percent and 76 percent of total revenues for the years ended September 30, 2001, 2000, and 1999, respectively. Distribution

~~Regulatory~~The ~~Matters~~ Company sells manufactured housing accessories such as vinyl skirting, piers, and other ancillary products to manufactured housing dealers and set-up contractors. The Company sells vinyl siding to the site-built housing market. In 2004, the Company began selling metal buildings under the accessories and siding distribution segment.

~~HUD~~Sales ~~regulations~~of ~~govern~~accessories ~~the~~and ~~maximum~~siding ~~load~~represented ~~limit~~26 ~~per tire~~percent, ~~which~~23 inpercent, ~~turn~~and 24 ~~dictates~~percent ~~the number~~ of ~~axles~~total ~~needed~~revenues tofor ~~transport~~the ayears ~~manufactured~~ended ~~home.~~September 30, ~~The~~2004, ~~number of axles~~2003, ~~required~~and to2002, ~~transport a~~ respectively.

3Regulatory Matters

Department of Transportation (DOT) regulations govern the maximum per tire load limit for tires used in the transportation of manufactured ~~home~~homes, which ~~averages~~in ~~approximately~~turn ~~six~~dictates the number of axles required for the transport of these homes. Approximately seven axles are required for transport of the average manufactured home. Department of Housing and Urban Development (HUD) regulations ~~requires~~require each axle to be reconditioned prior to every use by a certified recycler, and further require periodic ~~inspection~~inspections atof the recycling facilities ~~facility~~ by an approved third party inspector. Future changes in DOT or

On January 1, 2002 the manufactured home load limit per tire, set by the Department of Transportation and the Department of Housing and Urban Development, is tentatively scheduled to decrease from an 18% allowable overload to no allowable overload. Should the 18% allowable overload be eliminated, producers of manufactured homes will be required to either add axles and tires to their homes, or increase the rated capacity of the tires that they are using. Standard practice among the producers of manufactured homes has been to utilize the 18% allowable overload as needed. In anticipation of the elimination of the 18% overload, the Company is adjusting it's inventory to comply with the new standard. 3

~~Accessories~~HUD rules and ~~Siding~~regulations ~~Distribution~~ may impact the demand for the Company’s axle and tire reconditioning services.

~~T.J.T., Inc.~~Target ~~sells~~Market ~~manufactured housing accessories such as vinyl skirting, piers,~~ and ~~other ancillary products to manufactured housing dealers and set-up contractors. The Company sells vinyl siding to the site-built housing market.~~ Supply

~~Sales of~~The ~~accessories~~Company’s ~~were~~target ~~28 percent,~~market ~~28 percent~~is the manufactured housing industry and ~~24 percent~~the ofsite-built ~~total~~construction ~~revenue~~industry. The ~~for~~Company ~~the~~sells ~~years~~to ~~ended~~manufactured ~~September 30~~housing factories, ~~2001~~manufactured housing dealers, ~~2000~~set-up contractors, and ~~1999,~~site-built contractors ~~respectively~~and remodelers. The Company’s major customers are manufactured housing factories. Three manufacturers collectively represented more than 40 percent of total sales during 2004:

Target Market

Oakwood/Clayton Homes Corporation	15 percent
Fleetwood Enterprises, Inc.	15 percent
Champion Homes	10 percent

The Company's ~~target~~has ~~market~~no isone ~~the~~vendor ~~manufactured~~or ~~housing~~broker ~~industry and the site-built construction industry. The Company sells to manufactured~~that ~~housing~~supplies factories, manufactured housing dealers, set-up contractors, and site-built contractors and remodelers. The Company's major customers are manufactured housing factories. Three manufacturers represented more than ~~ten~~10 percent of ~~sales,~~axle ~~Oakwood Homes Corporation with 18 percent, Champion Enterprises, Inc. with 10 percent,~~ and ~~Fleetwood Enterprises, Inc.~~tire ~~with 10 percent of total sales during fiscal 2001~~purchases. It ~~The Company~~ has noone ~~single~~ supplier of ~~axles~~accessory ~~and~~products, D-Mac, ~~tires~~that orsupplies ~~accessories~~11 ~~that~~percent ~~represents~~of ~~ten~~total ~~percent~~accessory orproducts ~~more~~purchased ofby ~~total~~the ~~purchases~~Company.

Competition

OnThe ~~July 9, 2001, the~~ Company ~~instituted~~operates ~~legal action~~ in ~~the~~Idaho, ~~District Court of the Third Judicial District~~Oregon, ~~State of Idaho~~Washington, ~~against Patricia I. Bradley~~California, ~~Darren~~Colorado, M.Utah, ~~Bradley~~Nevada, ~~B. Kelly Bradley~~Montana, ~~Mark T. Wilson~~Wyoming, ~~Richard L. Morris~~Minnesota, ~~Mark W. Bradley~~Nebraska, ~~George~~North ~~Bayn~~ Dakota, and ~~Mary~~South ~~Carter (the "Bradley Group") who are all former employees and/or shareholders of the Company~~Dakota. The ~~lawsuit seeks monetary damages and injunctive relief based upon the defendants' breach of covenants not to compete with the~~ Company ~~which were granted to the Company by members of the~~also ~~Bradley~~operates ~~Group~~ in ~~November 1996~~Arizona, ~~when~~New ~~the Company acquired Bradley Enterprises~~Mexico, ~~Inc.~~ ~~by merger from the Bradley Group. The lawsuit also seeks monetary damages from Patricia I. Bradley~~Kansas, ~~Darren~~ ~~M. Bradley~~ and B.southern ~~Kelly~~California ~~Bradley~~through ~~for breach of their fiduciary duty while they were members of the Board of Directors of the Company. The Bradley Group began directly competing with the Company~~its injoint ~~June~~venture, ~~2001,~~NewCo ~~and~~Tire ~~the Company's business~~ and ~~operations have~~Axle, ~~and will be negatively impacted by competition from the Bradley Group, primarily in the states of Washington and Oregon~~L. L.C.

~~On November 15,~~Axles ~~2001,~~and the Federal District Court for the State of Idaho concluded an evidentiary hearing related to a preliminary injunction sought by the Company against the Bradley Group. The Company is awaiting a decision on that hearing. Trial of the case has been set to commence March 4, 2002. Tires

4In the Company’s thirteen-state market area, price competition is intense for both the purchase and sale of axles and tires. The Company has two major competitors within its market area. Barriers to entry are low for the axle and tire business, which could result in additional major competitors.

An ~~Axles~~injunction was granted in January of 2002 prohibiting certain former employees and ~~Tires~~ directors of the Company (the Bradley Group) from competing against the Company’s axle and tire business as well as the housing accessories business. The injunction expired on January 1, 2004. Therefore, the Bradley Group is now competing with the Company in the Oregon and Washington market areas.

The Company ~~operates~~believes init ~~Idaho,~~has greater ~~Oregon,~~financial ~~Washington~~resources, ~~California,~~a ~~Colorado,~~larger ~~Utah,~~geographical ~~Nevada~~presence, ~~Montana,~~and ~~Arizona~~a better reputation for quality, ~~Texas~~honesty, ~~New Mexico~~reliability, and ~~Wyoming.~~service Inthan ~~that twelve-state~~its ~~market~~competitors. The ~~area,~~Company ~~price~~believes ~~competition~~its competitors ishave ~~intense~~a ~~for~~lower ~~both~~cost ~~the~~structure ~~purchase~~that ~~and~~enables ~~sale~~them ofto ~~axles~~acquire ~~and~~market share ~~tires.~~where ~~The~~price ~~Company~~is ~~competes~~the ~~based~~customers’ onprimary ~~reputation, reliability and service~~concern.

~~The Company~~All ~~believes~~competitors itare ~~has~~believed ~~greater~~to ~~financial~~be ~~resources,~~privately aheld ~~larger~~companies ~~geographical~~having between ~~presence,~~one and atwenty-five ~~better~~employees. The ~~reputation~~Company ~~for~~estimates ~~quality,~~that ~~honesty,~~it ~~reliability~~has a 64 percent market share, and ~~service~~is roughly two times larger than ~~it's~~its ~~competitors~~largest competitor. ~~The~~ Since the Company ~~believes~~is ~~it's~~the ~~competitor's~~only ~~have~~company awith readily ~~lower~~discernable ~~cost~~revenues ~~structure~~and ~~which~~industry ~~enables~~totals ~~them~~are tounknown, ~~acquire~~estimating market share ~~where~~involves ~~price~~extrapolating isnumerous ~~the~~estimates ~~customers~~and ~~primary~~results ~~concern.~~in a market share number subject to questionable accuracy.

The Company ~~has~~also ~~three~~competes ~~main~~in ~~competitors~~the ~~and~~Arizona, ~~numerous~~New ~~smaller~~Mexico, ~~competitors~~Kansas, ~~with all competitors believed to be privately held companies having between one~~ and ~~twenty-five~~ ~~employees.~~southern ~~The~~California ~~Company~~markets ~~estimates~~through ~~that it has~~ a ~~60%~~joint ~~market share~~venture, ~~and~~NewCo isTire ~~roughly~~& ~~two~~Axle, L.L.C. ~~times~~(NewCo) ~~larger~~which ~~than~~was ~~it's~~formed ~~largest~~in ~~competitor~~July of 2003. The ~~Since the~~ Company isbelieves ~~the~~there ~~only~~are ~~company~~two ~~with readily discernable revenues~~major ~~and~~competitors ~~industry~~in ~~totals~~the ~~are~~joint ~~unknown,~~venture’s ~~estimating~~ market ~~share involves extrapolating numerous estimates and results in a market share number subject to questionable accuracy~~area.

~~Accessories and Siding~~ 4

~~The~~Accessories ~~Company competes for accessory~~ and ~~siding sales with building materials distributors and manufactured housing wholesale suppliers which are numerous in all of the Company's market areas.~~ Siding

The Company competes ~~with numerous competitors~~ for ~~accessories~~accessory, siding, and ~~siding~~metal building sales with ~~availability~~building ~~and~~materials ~~price~~distributors ~~being~~and ~~the principal methods of competition. The Company believes it has~~manufactured ~~lower~~housing ~~prices~~wholesale ~~than~~suppliers ~~local~~which ~~stores~~are ~~providing~~numerous ~~immediate~~in ~~access~~all toof ~~accessories~~the ~~and higher prices than regional distributors providing two to fourteen day access. The~~ Company’s ~~delivers accessories everywhere in its~~ market ~~area on a daily to weekly basis~~ areas.

~~Industry~~The ~~Overview~~ Company competes with numerous competitors for accessories and siding sales with availability and price being the principal methods of competition. The Company believes it has lower prices than local stores providing immediate access to accessories, and higher prices than regional distributors that provide two to fourteen day access. The Company also offers engineered custom metal buildings while providing local customer service and installation assistance.

ProductionIndustry of manufactured housing was stronger than related sales of manufactured housing to home buyers during 1998 and 1999. The unusually strong production rate created excessive retail inventories of manufactured homes. The excess supply of completed homes has greatly slowed the demand for additional production, which reduces the demand for axles and tires. Overview

~~The slow-down~~Production of manufactured housing in the Company’s ~~industry~~market area increased ~~the~~two ~~supply~~percent offrom ~~used~~2003 ~~axles~~to ~~and~~2004 ~~tires~~after ~~and~~several years ~~resulted~~of indecline. Shipments ~~lower~~of manufactured ~~purchase~~homes ~~costs~~increased ~~from~~three ~~January~~percent toas ~~September 2001~~well. The ~~excess~~manufactured ~~supply has~~housing ~~gradually~~production ~~diminished~~ and shipment ~~the~~indicators ~~Company~~were ~~has~~obtained ~~excess~~from ~~inventory~~the ~~only~~Institute infor ~~specific~~Building Technology ~~inventory~~and ~~items as of September 30~~Safety, ~~2001~~Inc., Aformally ~~shortage~~known ofas ~~specific~~the ~~inventory~~National ~~items~~Conference ~~exists~~of ~~due~~States toon ~~prospective~~Building ~~changes in~~Codes ~~regulations~~and asStandards. The ~~well~~Company asexpects ~~used~~to ~~items~~see ~~having~~market conditions ~~been~~remain ~~inexpensive~~static ~~enough~~in to2005 ~~limit~~or ~~the~~to ~~amount~~see ofslight ~~new~~increases ~~items~~similar ~~being~~to ~~used~~those experienced in ~~the~~fiscal ~~industry~~2004.

Personnel

The Company had a total of ~~103,~~101 ~~132, and 145~~ employees as of September 30, ~~2001,~~2004. None ~~2000,~~of ~~and~~the ~~1999,~~Company’s ~~respectively.~~employees are members of a union.

ITEM 2. PROPERTIES

The ~~Company leases nine properties and owns~~ two properties. ~~The two properties~~ owned by the Company are ana ~~11,360 square foot~~ warehouse in Emmett, Idaho, and a ~~9,000~~ ~~square foot~~ processing facility in Platteville, Colorado. The Magna, Utah property, previously owned and used as a small sales office by the Company, was sold in 2003.

The Company leases four properties ~~totaling~~located ~~145~~in Idaho,~~000~~ ~~square~~California, Washington, ~~feet~~and Oregon. Property located in Emmett, Idaho is leased from two related parties, T.J.T. ~~Three~~Enterprises ofand ~~the~~Sheldon-Homedale Family, L.P. The property located in Centralia, Washington was leased ~~properties~~through ~~totaling~~January 1, 822004. The recycling and distribution center located in Centralia is now operated at a facility leased in Chehalis,~~000~~ ~~square~~Washington. The ~~feet~~property ~~are~~previously leased ~~from~~for Tthe Phoenix, Arizona facility was subleased until the lease expired in January of 2004.J The property leased and located in Eugene, Oregon is only utilized for manufacturing hanger parts and sales of accessories.T. All ~~Enterprises~~properties ~~(1)(4)~~are adequate and suitable for the needs of the location and ~~one~~are ~~property~~being fully utilized.

5ITEM 3. LEGAL PROCEEDINGS

~~totaling~~The ~~63,000~~Company ~~square~~has ~~feet~~no ~~is leased from Sheldon-Homedale Family, L.P. (2)(4). Two properties totaling 64,000 square feet are located in Oregon. One property, located in Centralia, Washington~~material ~~totaling~~legal ~~593,000~~proceedings ~~square~~to ~~feet is leased from MBFI, Inc~~report. (3)(4). One property located in Woodland, California totaling 44,000 square feet, is leased from Ulysses B. Mori (4). One property located in Phoenix, Arizona totals 131,000 square feet. All properties are adequate and suitable for their needs and are being fully utilized, with the exception of the Salem, Oregon facility where operations have been curtailed. The Salem facility is currently utilizing 75% of a total of 21,000 square feet.

ITEM 34. LEGAL PROCEEDINGS SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

OnShareholders ~~July 9,~~were 2001, the Company instituted legal action in the District Court of the Third Judicial District, State of Idaho, against Patricia I. Bradley, Darren M. Bradley, B. Kelly Bradley, Mark T. Wilson, Richard L. Morris, Mark W. Bradley, George Bayn and Mary Carter (the "Bradley Group") who are all former employees and/or shareholders of the Company. The lawsuit seeks monetary damages and injunctive relief based upon the defendants' breach of covenants not toasked ~~compete with the Company which were granted~~ to ~~the~~vote ~~Company~~on byany ~~members~~matters ofduring the quarter ~~Bradley~~ended ~~Group in November~~September ~~1996 when the Company acquired Bradley Enterprises~~30, ~~Inc.~~ ~~by merger from the Bradley Group~~2004. The lawsuit also seeks monetary damages from Patricia I. Bradley, Darren M. Bradley and B. Kelly Bradley for breach of their fiduciary duty while they were members of the Board of Directors of the Company. The Bradley Group began directly competing with the Company in June, 2001, and the Company's business and operations have, and will be negatively impacted by competition from the Bradley Group, primarily in the states of Washington and Oregon.

~~On November 15,~~EXECUTIVE ~~2001,~~OFFICERS ~~the~~OF ~~Federal District Court for the State of Idaho concluded an evidentiary hearing related to a preliminary injunction sought by the Company against the~~THE ~~Bradley Group. The Company is awaiting a decision on that hearing. Trial of the case has been set to commence March 4, 2002.~~ REGISTRANT

The schedule below shows the names and ~~ITEM~~certain ~~4. SUBMISSION~~information OFregarding ~~MATTERS~~all TOof Athe ~~VOTE~~executive OFofficers ~~SECURITY~~of ~~HOLDERS~~ TJT as of September 30, 2004. Each executive officer has a one-year term of office.

~~Shareholders were not asked to vote on any matters during the quarter ended September 30, 2001.~~ 5

Name	Age	Position
Terrence J. Sheldon	62	President, Chief Executive Officer, Chairman of the Board of Directors, Trustee of the Company’s 401(k) Profit Sharing Plan, Chairman of the Directors Compensation Committee and Member of the Directors Executive Committee

Larry B. Prescott	56	Senior Vice President, Chief Financial Officer and Treasurer, Member of the Board of Directors, Trustee of the Company’s 401(k) Profit Sharing Plan, Secretary of the Directors Executive Committee

Cindy M. Truchot	33	Vice President and Controller

John W. Eames II	63	Vice President and Corporate Secretary and non-voting Secretary of the Directors Audit Committee

Terrence J. Sheldon ~~ITEM~~- 4AMr. ~~EXECUTIVE~~ ~~OFFICERS~~Sheldon OFis ~~THE~~the ~~REGISTRANT~~ founder and principal stockholder of the Company and has served as President since October 1986 and Chief Executive Officer since 1994.

~~The~~Larry ~~schedule~~B. ~~below~~Prescott ~~shows~~– ~~the~~Mr. ~~names~~Prescott has ~~and~~served ~~certain~~as ~~information~~Senior ~~regarding~~Vice ~~all~~President, ofChief ~~the~~Financial ~~executive~~Officer ~~officers~~and ofTreasurer since ~~TJT~~January 1999. Previously, he served as ofVice ~~September 30,~~President ~~2001~~and Portfolio Manager at U.S. ~~Each~~Bancorp ~~executive~~in ~~officer~~Portland. Mr. ~~has~~Prescott received a ~~one-year~~B.A. in ~~term~~Business offrom ~~office.~~Boise State University.

Name	Age	Position
Terrence J. Sheldon	59	President, Chief Executive Officer, Chief Operating Officer from December 1998 through December 1999, Chairman of the Board of Directors, Trustee of the Company's 401(k) Profit Sharing Plan, Chairman of the Directors Compensation Committee and Member of the Directors Executive Committee
Larry B. Prescott	53	Senior Vice President, Chief Financial Officer and Treasurer, Member of the Board of Directors, Trustee of the Company's 401(k) Profit Sharing Plan, Secretary of the Directors Executive Committee, and non-voting Secretary of the Directors Audit Committee
Michael J. Gilberg	32	Vice President and Controller

Cindy M. Truchot – Ms. Truchot is a CPA and has served as Vice President and Controller since February 2002. Previously, she served as Controller of a privately owned technology based company as well as serving several years in the public accounting sector. Ms. Truchot received a B.S. in Business Administration, accounting emphasis, from Idaho State University.

~~Terrence~~John JW. ~~Sheldon—~~Eames III - Mr. ~~Sheldon~~ isEames has served the ~~founder~~Company ~~and~~in ~~principal~~various ~~stockholder~~positions ofsince ~~TJT~~1991. He ~~and~~was ~~has~~appointed ~~served~~Corporate asSecretary ~~President~~in ~~since~~August 2001, ~~October~~an Executive Officer in August ~~1986~~2002, and ~~Chief~~a ~~Executive~~Vice ~~Officer~~President ~~since~~in ~~1994~~February of 2004. Previously, Mr. Eames served as National Sales Manager for a log home manufacturer in Idaho and held several management positions with Boise Cascade Corporation’s Housing Division.

~~Larry~~PART B. Prescott—Mr. Prescott has served as Senior Vice President, Chief Financial Officer and Treasurer since January 1999. Previously, he served as Vice President and Portfolio Manager at U.S. Bancorp in Portland. Mr. Prescott received a B.A. in Business from Boise State University. II

7The Company’s Common Stock is registered on the OTC Bulletin Board under the symbol “AXLE”. The table below shows the high and low sales prices of the Common Stock for each of the last eight fiscal quarters:

PART II

	Quarter Ended 9/30/04		Quarter Ended 6/30/04		Quarter Ended 3/31/04		Quarter Ended 12/31/03

Common Stock:
High	$	.80	$	.80	$	.90	$	.95
Low	.63		.64		.60		.46
Quarter-end	.70		.72		.71		.90

~~ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS~~ 6

The Company's Common Stock is registered on the OTC Bulletin Board under the symbol "AXLE". The Company's Redeemable Common Stock Purchase Warrants were registered on the OTC Bulletin Board under the symbol "AXLEW" until their expiration on December 21, 2000. The table below shows the high and low sales prices of the Common Stock and the Warrants for each of the last eight fiscal quarters:

	Quarter Ended 9/30/03		Quarter Ended 6/30/03		Quarter Ended 3/31/03		Quarter Ended 12/31/02

Common Stock:
High	$	.51	$	.62	$	.58	$	.45
Low	.33		.32		.27		.22
Quarter-end	.51		.35		.51		.27

		Quarter Ended 9/30/01	Quarter Ended 6/30/01	Quarter Ended 3/31/01	Quarter Ended 12/31/00
Common Stock:
	High	.32	.39	.45	.33
	Low	.20	.17	.21	.20
	Quarter-end	.23	.27	.30	.21
Warrants:
	High	NA	NA	NA	.001
	Low	NA	NA	NA	.001
	Quarter-end	NA	NA	NA	NA

The over-the-counter market quotations reflect inter-dealer prices, without retail mark-up, mark-down, or commission and may not necessarily represent actual transactions.

		Quarter Ended 9/30/00	Quarter Ended 6/30/00	Quarter Ended 3/31/00	Quarter Ended 12/31/99
Common Stock:
	High	29/64	1	11/8	11/16
	Low	1/4	23/64	1/2	21/32
	Quarter-end	9/32	13/32	13/16	21/32
Warrants:
	High	.01	.01	.001	3/32
	Low	.001	.001	.001	.001
	Quarter-end	.001	.01	.001	.001

The table below shows the approximate number of holders of record of the Company’s Common Stock at December 17, 2004:

The over-the-counter market quotations reflect inter-dealer prices, without retail mark-up, mark-down, or commission and may not necessarily represent actual transactions.

Title of Class		Number of registered owners
Common Stock, $.001 par value		573

The Company has never paid dividends to shareholders and does not ~~table~~expect ~~below~~to ~~shows~~pay dividends in the ~~approximate~~foreseeable ~~number~~future. The ofCompany ~~holders~~intends ofto ~~record~~use offuture ~~the~~earnings for reinvestment in its business. The Company's ~~Common~~is ~~Stock~~prohibited atfrom ~~December 18,~~paying ~~2001:~~cash dividends by the revolving line of credit agreement with its principal lender.

Title of Class		Number of registered owners
Common Stock, $.001 par value		800

Information relating to compensation plans under which equity securities of the Company are authorized for issuance are set forth under “Equity Compensation Plan Information” in the Company’s definitive Proxy Statement which is incorporated herein by reference.

~~TJT has~~ITEM ~~never paid dividends to shareholders and does not expect to pay dividends in the foreseeable future~~6. ~~The~~SELECTED ~~Company~~FINANCIAL ~~intends to use future earnings for reinvestment in its business. The Company is prohibited from paying cash dividends by the revolving line of credit agreement with it's principal lender.~~ DATA

	Fiscal Year Ended September 30
	2004		2003		2002			2001			2000

Operating data:
Sales	$	19,701	$	19,728	$	20,386		$	21,219		$	26,881
Cost of goods sold	14,881		15,481		16,072			16,939			22,502
Selling, general and administrative expenses	4,669		4,259		4,709			4,840			5,957
Impairment loss	—		—		—			—			847
Cumulative effect of accounting change, net of tax	—		—		(748		)	—			—

Net income(loss)	397		132		(887		)	(242		)	(1,720		)

Share data
Net income (loss)	.09		.03		(.20		)	(.05		)	(.38		)
Weighted average shares outstanding	4,504,939		4,504,939		4,504,939			4,504,939			4,516,605

Balance sheet data:
Cash and cash equivalents	843		1,072		767			329			54
Current assets	5,346		5,119		4,706			4,589			6,102
Property, plant & equipment, net	728		594		699			952			1,320
Total assets	7,703		7,542		6,990			8,005			10,117
Current liabilities	1,196		1,413		989			1,070			2,921
Long-term liabilities	57		79		83			130			149
Shareholders’ equity	6,450		6,050		5,918			6,805			7,047

~~ITEM 6. SELECTED FINANCIAL DATA~~ 7

~~Fiscal~~ITEM ~~Year~~7. ~~Ended~~MANAGEMENT’S ~~September 30 (Dollars~~DISCUSSION inAND ~~thousands~~ANALYSIS ~~except~~OF ~~per~~FINANCIAL ~~share~~CONDITION ~~amounts)~~ AND RESULTS OF OPERATIONS

		2001			2000			1999			1998		1997
Operating data:
	Sales	$	21,219		$	26,881		$	34,642		$	34,073	$	25,441
	Cost of goods sold		16,939			22,502			28,446			27,946		21,004
	Selling, general and administrative expenses		4,840			5,957			6,369			5,402		3,802
	Impairment loss		—			847			—			—		—
Net income(loss)			(242	)		(1,720	)		(207	)		446		477
Share data
	Net income (loss)		(.06	)		(.38	)		(.04	)		.09		.11
	Weighted average shares outstanding		4,504,939			4,516,605			4,773,731			4,844,704		4,514,679
Balance sheet data:
	Cash		329			54			129			204		835
	Current assets		4,589			6,102			6,265			6,606		6,306
	Property, plant & equipment, net		952			1,320			1,862			1,944		1,318
	Total assets		8,005			10,117			11,338			11,054		10,140
	Current liabilities		1,070			2,921			2,311			1,929		1,470
	Long-term liabilities		130			149			189			196		199
	Shareholder's equity		6,805			7,047			8,838			8,929		8,471

This Form 10-K contains certain forward-looking statements which are based on management’s current expectations. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could,” and other expressions that indicate future events and trends identify forward-looking statements. The forward-looking statements such as those made in “Company Strategy” regarding growth for the housing accessories segment and new product development, as well as comments made in “Overview” regarding expansion of NewCo market areas are subject to certain risks and uncertainties. Additional risk factors identified by the Company that could cause actual results to differ substantially from the forward-looking statements include, but are not limited to, general economic conditions, availability of financing for both manufactured home buyers and suppliers, real estate values, adverse weather conditions, the economic viability of our customers and vendors, and availability of qualified employees. In addition, industry conditions that may have an adverse impact on future results include, but are not limited to, low barriers of entry, changes and/or enforcement in legislation or regulations, and competitive pressure on both the purchasing of used axles and tires from manufactured housing dealers and the selling of refurbished axles and tires to manufactured housing factories. The Management’s Discussion and Analysis should be read in conjunction with the Financial Statements and accompanying notes for the year ended September 30, 2004. All period references are to the Company’s fiscal periods unless otherwise indicated.

~~ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~ Overview

T.J.T., Inc. has two business lines: axle and tire reconditioning, and accessories and siding distribution.

~~Prior to~~Axle ~~fiscal~~and ~~2001~~tire ~~the~~reconditioning ~~Company~~sales ~~invested~~represent ~~in,~~approximately ~~and~~74 onpercent of aconsolidated ~~limited~~sales. Axles ~~basis,~~and ~~developed~~tires are ~~real~~purchased ~~estate~~from ~~for~~manufactured ~~sale.~~homes Adealers ~~consensus~~and ~~exists~~reconditioned ~~among~~in ~~management~~four locations asin ~~well~~the aswestern ~~the~~United ~~Board~~States. After ofaxles ~~Directors~~are ~~that further~~reconditioned ~~investments~~and incertified ~~investment~~and ~~property~~tires are ~~not~~inspected ~~warranted~~and graded, as they are ~~not~~sold ~~sufficiently~~primarily ~~related~~ to ~~our core~~ manufactured housing ~~related business~~factories. ~~For fiscal 2001 investment property is a passive, non-operating activity with a half-time employee responsible for liquidating remaining real estate.~~

Axle and tire reconditioning ~~historically~~is ~~accounts~~performed ~~for~~at ~~approximately~~the ~~75 percent~~Company’s oflocations ~~consolidated~~in Emmett, ~~sales.~~Idaho; Chehalis, ~~Axles~~Washington; Woodland, California; and ~~tires~~Platteville, ~~are~~Colorado. The ~~purchased~~Company ~~from~~maintains ~~manufactured~~a ~~homes dealers and~~manufacturing ~~reconditioned~~facility in ~~five~~Eugene, ~~locations~~Oregon inwhich ~~the~~manufactures ~~western~~metal ~~United~~hanger ~~States.~~parts ~~After~~for attaching axles ~~and~~to ~~tires~~manufactured ~~are~~homes ~~reconditioned~~ and ~~certified,~~frame ~~they~~components ~~are~~used ~~sold~~on to manufactured ~~housing~~home chassis, ~~factories.~~and sells dealer accessories items.

~~Axle~~The Company sells accessories to manufactured ~~and~~home ~~tire~~dealers ~~reconditioning~~and isset-up ~~performed~~contractors atfrom ~~the~~all ~~Company's~~its locations. The inmajor ~~Emmett,~~product ~~Idaho;~~lines ~~Centralia,~~are ~~Washington;~~vinyl ~~Woodland~~skirting, piers, ~~California;~~and ~~Platteville,~~related ~~Colorado;~~products ~~and~~through ~~Phoenix,~~the ~~Arizona.~~Company’s distribution channels which comprise approximately 650 dealers. The Company ~~maintains~~also asells ~~manufacturing~~vinyl ~~facility~~siding into ~~Eugene,~~the ~~Oregon~~site-built ~~which~~construction ~~manufactures~~industry ~~metal~~out ~~hanger~~of its ~~parts~~Emmett ~~for~~location. In ~~attaching~~2004 ~~axles~~the toCompany began ~~manufactured~~selling ~~homes~~metal ~~and~~buildings ~~accessory~~primarily ~~parts~~to ~~used~~agricultural inmarkets ~~the~~and ~~set-up~~registered ofthe ~~manufactured~~trade ~~homes~~name ~~on-site.~~Anchor Metal Buildings.

The Company ~~sells~~is ~~accessories~~a to50 ~~manufactured~~percent ~~home~~owner ~~dealers.~~in ~~The~~a ~~major~~joint venture ~~product~~limited ~~lines~~liability ~~are~~corporation, ~~vinyl~~NewCo ~~skirting~~Tire & Axle, ~~piers~~L.L.C. (NewCo), which operates an axle and ~~related~~tire ~~products~~reconditioning ~~through~~facility in Arizona and services the ~~Company's~~Arizona, ~~distribution~~New ~~channels~~Mexico, ~~which comprise~~Kansas ~~approximately~~and ~~650~~parts ~~dealers.~~of ~~The~~southern ~~Company~~California ~~also~~market areas. Plans ~~sells~~for ~~vinyl~~expansion ~~siding~~into toother market ~~the~~areas ~~site-built~~are ~~construction~~currently ~~industry~~underway. The ~~out~~Company ofaccounts ~~its~~for ~~Emmett~~the ~~location.~~joint venture using

~~The~~the ~~Company~~equity ~~estimates~~method ~~that~~and andoes ~~approximate~~not ~~60%~~consolidate the ~~market~~income ~~share~~as ~~has~~the ~~been~~investment ~~maintained~~does ~~over~~not meet the ~~last~~criteria ~~several~~for ~~years~~consolidation outlined ~~although~~in ~~since~~the ~~industry~~Financial ~~totals~~Accounting ~~are~~Standards ~~unknown~~Board Interpretation No. 46, ~~estimating~~Consolidation ~~market~~of ~~share~~Variable ~~includes~~Interest Entities – an Interpretation of ARB ~~extrapolating~~No. ~~numerous~~51. ~~estimates~~The ~~and~~Company ~~results~~recognized $224,000 of undistributed earnings related to its investment in athe ~~market~~joint ~~share~~venture, ~~number~~which ~~subject~~contributed more than 20 percent to ~~questionable~~net ~~accuracy~~income for the Company as a whole. Separate financial statements of NewCo will be filed as an Exhibit in Item 15 of an amended Form 10-K within 90 days following the joint venture’s year end, which is October 31, 2004.

Results of Operations

~~The~~During ~~following~~2004, ~~table~~the ~~summarizes~~manufactured housing industry experienced an increase in shipments of approximately three percent in the Company'’s ~~revenues~~market ~~and~~area ~~expenses~~according to bythe ~~major~~Institute ~~categories~~for Building Technology and Safety, Inc., formally known as National Conference of States on Building Codes and Standards. The Company’s sales for the same period reflect a decrease of only .1 percent. The Company’s ongoing operations increased its market share from 2003 to 2004 by 11 percent after excluding $1.9 million of sales ~~for~~generated ~~2001,~~in ~~2000~~the ~~and~~first ~~1999:~~half of 2003 by the Company’s Arizona facility.

	2001		2000		1999
Axle and tire reconditioning	72.0	%	69.8	%	75.5	%
Manufactured housing accessories and siding	28.0		28.2		24.4
Investment property income	—		2.0		0.1
Gross margin	20.2		16.3		17.9
Selling expense	15.7		12.4		13.4
Administrative expense	7.1		6.6		5.0
Impairment loss	—		3.2		—
Interest income (expense)	(.1	)	(.3	)	0.0
Other expense	.1		0.1		0.2

The 2004 fiscal period reflects operating profit for each location compared to losses in 2003 in Colorado and Arizona. The following table summarizes the Company’s revenues and expenses by major categories as a percent of sales for 2004, 2003 and 2002:

			2001			2000			1999
		Fiscal years ended September 30
Axles and Tires:
		2004		2003		2002
	Operating revenue		$	15,277		$	18,752		$	26,166
Axle and tire reconditioning		73.6	%	77.1	%	76.5	%
	Cost of goods			12,707			16,507			22,431
Manufactured housing accessories and siding		26.4		22.9		23.5
	Gross profit			2,570			2,245			3,735
Gross margin		24.5		21.5		21.2
	Selling, general administrative expense			2,953			3,100			3,679
Selling expense		14.9		14.8		15.9
	Impairment loss			—			847			—
Administrative expense		8.8		6.8		7.2
	Operating income (loss)			(383	)		(1,702	)		56
Interest income, net of expense		.3		.3		.2
Accessories and Siding:
Other expense		.1		.1		.1
	Operating revenue			5,942			7,577			8,441
	Cost of goods			4,232			5,613			6,015
	Gross profit			1,710			1,964			2,426
	Selling, general administrative expense			1,887			2,779			2,618
	Operating income (loss)			(177	)		(815	)		(192	)
Investment Property:
	Operating revenue			—			552			35
	Cost of goods			—			382			—
	Gross profit			—			170			35
	Selling, general administrative expense			—			78			72
	Operating income (loss)			—			92			(37	)

Net sales were $21,219,000 in fiscal year 2001, a decrease of $5,662,000 and $13,423,000 from 2000 and 1999, respectively. The Company increased fiscal 2001 market share by approximately $1,226,000 in sales, offsetting the approximately $6,336,000 decline in sales due to reduced production and sales of manufactured housing based upon the 24% decline in the manufactured housing industry in the Company's market area.

	2004			2003			2002
Axles and Tires:
Net sales	$	14,502		$	15,215		$	15,594
Cost of goods	11,312			12,332			12,690
Gross profit	3,190			2,883			2,904
Selling, general administrative expense	2,870			2,812			2,908
Operating income (loss)	320			71			(4		)

Accessories and Siding:
Net sales	5,199			4,513			4,792
Cost of goods	3,569			3,149			3,382
Gross profit	1,630			1,364			1,410
Selling, general administrative expense	1,799			1,447			1,801
Operating income (loss)	(169		)	(83		)	(391		)

The Company's Arizona, California, and Colorado locations are among the most recently acquired, and have experienced the largest losses due to high operating costs, competition, and ineffective management. Management of all three locations was replaced in fiscal 2000. Combined losses for the three locations was $648,000 in fiscal 2001, and $2,075,000 and $1,375,000 in fiscal 2000 and 1999, 9

10Net Sales

Net sales were virtually the same in 2004 as compared to 2003. In 2004, sales generated from the dealer ~~respectively~~accessories and siding segment increased 15 percent from 2003 while sales from the axles and tires segment declined five percent during the same period. However, ~~The~~the ~~fiscal~~Company’s ~~2001~~Arizona ~~combined~~facility, which ~~loss~~was ofclosed ~~$648~~mid-year in 2003,~~000~~ ~~included~~generated a$1.9 ~~loss~~million of ~~$668,000~~sales ~~for~~to the ~~first~~axle and ~~six~~tire ~~months~~segment ofin fiscal ~~2001~~2003. Axle and tire sales generated by locations operating in both 2004 and ~~income~~2003 ofincreased by ~~$20~~eight percent. Therefore,~~000~~ ~~for~~sales volumes of the ~~final~~Company’s ~~six~~five ~~months~~remaining locations in 2004 largely offset the loss of ~~fiscal~~the ~~2001.~~2003 Arizona sales.

Net ~~loss~~ ~~improved~~sales toduring ~~$242,000~~2003 indeclined ~~fiscal~~by ~~2001,~~three apercent ~~decrease~~compared ofto ~~$1,478,000 from~~ the ~~fiscal~~same period ~~2000~~in ~~net~~2002 ~~loss of $1,720,000. The improvement is~~ primarily due to the ~~impairment~~closure ~~loss~~ of ~~$847,000 in~~the ~~fiscal~~Arizona ~~2000~~location ~~not~~during ~~recurring,~~the 2003 asfiscal ~~well~~year. Increases asin ~~an improved gross profit on axle and tire~~ sales of axles ~~$325,000~~and ~~resulting~~tires ~~from~~at the ~~lower~~Platteville, ~~purchase~~Colorado ~~costs~~facility ~~realized~~partially ~~starting~~offset ~~January 2001, and~~ the ~~$892,000~~ ~~reduction~~decrease in ~~accessory~~Arizona ~~and siding selling, general, and administrative expense resulting from management's effort to lower costs~~sales.

~~The fiscal~~Gross 2000 impairment loss of $847,000 consisted of $360,000 of goodwill, $11,000 of merger costs, and $21,000 of property, plant, and equipment related to the Woodland, California acquisition completed in fiscal 1997 and $407,000 of goodwill, $4,000 of merger costs, and $44,000 of property, plant, and equipment related to the Phoenix, Arizona acquisition completed in fiscal 1999. All goodwill attributable to the California and Arizona acquisitions has been impaired. The California and Arizona locations experienced increases in sales subsequent to acquisition with further increases in sales and operational performances expected by management until the rapid deterioration in the manufactured housing industry during fiscal 2000. Due to the deterioration in the industry the Company no longer expected to fully recover the book value assigned to the California and Arizona acquisitions as projected increases in sales and operational performance were sufficient to produce positive cash flow, but insufficient to also cover the amortization of goodwill, merger costs, and certain items of property, plant, and equipment. Margin

The ~~manufactured~~ ~~housing~~Company’s ~~industry~~gross ~~continued~~profit tomargin ~~experience~~increased anthree ~~overabundance~~percent ofin ~~new~~2004 compared ~~and used homes due~~ to ~~overproduction as well as a decrease in consumer demand~~2003. Gross Inmargin ~~the~~was ~~Company's~~positively ~~market~~impacted ~~area~~by ~~the~~higher ~~decrease~~sales inprices ~~manufactured~~for ~~housing~~axles ~~production~~and ~~from fiscal 2000 to 2001 was approximately 24%~~tires, ~~and~~lower ~~followed~~purchase ~~the~~costs ~~decrease from fiscal 1999 to 2000~~ of ~~approximately 24%. The Company expects~~ ~~this~~used ~~downward trend to continue~~tires, atand ~~least in~~ the ~~short~~elimination ~~term,~~of ~~and~~lower ~~expects~~margin sales ~~for~~generated ~~fiscal~~by ~~2002 to be approximately at~~ the ~~fiscal 2001 level. In the Company's market area~~Phoenix, ~~manufactured housing~~ ~~production~~Arizona ~~continues~~facility towhich ~~decline~~was ~~from~~closed ~~the previous year production, but at a decreasing rate of decline. The Company continues to take steps to decrease costs~~ in ~~an attempt to match our customers decrease in production~~July 2003. In ~~Should this downward trend continue~~addition, ~~the~~higher ~~Company~~margin ~~will~~sales ~~have to continue to take steps to decrease costs such as shutting down locations, or parts~~ of ~~locations,~~the ~~reducing~~accessories ~~personnel,~~ and ~~reducing~~siding ~~inventory.~~segment ~~These~~increased ~~steps~~15 ~~have~~percent ~~the~~in ~~general~~2004 ~~desired~~compared ~~effect~~to ~~of reducing costs but also make servicing present customers more difficult~~2003.

~~A group~~The ofCompany’s ~~former~~gross ~~employees~~margin ~~and~~increased ~~directors~~.4 ~~(the~~percent ~~Bradley~~in ~~Group)~~2003 ~~began~~compared ~~directly~~to 2002 ~~competing~~as ~~with~~a ~~the~~result ~~Company~~of inhigher ~~June,~~selling ~~2001,~~prices ~~primarily~~of axles and tires in the ~~states~~final quarter of ~~Washington~~2003, ~~and~~which ~~Oregon.~~were ~~The~~offset ~~Company also~~by ~~incurred~~the ~~$137,000~~lower ofmargin ~~legal~~sales ~~fees~~at ~~during~~the ~~fiscal~~Arizona facility. The ~~2001~~Arizona tolocation ~~enforce~~operated for the ~~non-compete~~first ~~agreements~~nine ~~executed~~months byof ~~members~~2003 ofbut was in operation for the ~~Bradley~~entire ~~Group.~~year of 2002.

~~Seasonality~~ Selling, General, and Administrative

~~The~~In ~~manufactured~~2004, ~~housing~~selling, ~~industry~~general and ~~the~~administrative ~~site-built~~expenses ~~construction~~for ~~industry are seasonal within~~ the ~~majority~~Company increased ofby ~~the~~10 ~~Company's~~percent ~~market~~compared ~~area~~to 2003. ~~Typically,~~The ~~sales~~increase ~~for~~is ~~the~~primarily ~~months~~due ~~from~~to ~~November~~higher ~~through~~selling ~~March~~expenses ~~are~~associated ~~lower~~with expansion ~~than~~of ~~for~~the ~~other~~dealer ~~months~~accessories ~~due~~product toline ~~weather~~ and ~~ground~~performance ~~conditions.~~based incentive ~~Assuming~~pay ~~normal~~offset ~~weather~~by ~~conditions,~~elimination ~~the~~of ~~Company~~overhead ~~expects~~expense ~~the~~associated ~~quarters~~with the ~~ended~~Arizona ~~September 30~~location ~~and~~incurred ~~June 30~~during tothe befirst ~~higher~~three ~~volume~~quarters of 2003.

11Selling, general and administrative expenses decreased by almost 10 percent in 2003 compared to 2002 primarily due to a significant reduction of legal fees associated with prior year legal proceedings and a reduction of overhead expenses as a result of closing the Arizona location in July of 2003.

~~quarters~~Net ~~and the quarter ended March 31 to be the lowest volume quarter. The following table summarizes operating results by quarter and demonstrates the seasonal nature of TJT's operations:~~ Income

		December 31			March 31			June 30			September 30
		(Unaudited, dollars in thousands)
Fiscal year ended 2001
	Net sales	$	5,516		$	4,811		$	5,506		$	5,386
	Gross profit		892			785			1,197			1,406
	Operating income (loss)		(385	)		(455	)		60			220
	Net income (loss)		(223	)		(241	)		69			153
Fiscal year ended 2000
	Net sales	$	6,455		$	5,822		$	7,473		$	7,131
	Gross profit		1,150			853			1,230			1,146
	Operating income (loss)		(465	)		(699	)		(166	)		(1,095	)
	Net income (loss)		(311	)		(457	)		(132	)		(820	)

Net income tripled in 2004 increasing to $397,000 compared to $132,000 in 2003. Higher margins generated from an increase in higher margin accessories sales along with higher selling prices and lower purchase costs in the axle and tire segment increased gross profit by $573,000 in 2004 compared to 2003. All locations open in 2004 operated at a profit. The 2003 gross profit reflects losses of $98,000 related to the Phoenix, Arizona facility. The increased margins were offset by higher selling, general and administrative expenses resulting from increased sales personnel related to expanding the dealer accessory and after market business and incentive compensation for performance based bonus plans.

~~Liquidity~~The Company also recognized $224,000 of undistributed income in 2004 and ~~Capital~~$63,000 ~~Resources~~ in 2003 from its interest in NewCo. Rental income received for equipment leased to the joint venture in 2004 was $26,000 compared to $16,000 received in the four months during operation in 2003.

~~Historically,~~Net ~~the~~income ~~Company's~~for ~~principal~~fiscal ~~sources~~period of2003 ~~liquidity~~was ~~have~~$132,000 ~~been~~compared ~~cash~~to ~~flow from operations and borrowings under~~ a ~~revolving~~loss ~~line~~ of ~~credit with a bank. As~~ ~~of September 30, 2001, the Company's available credit under the bank line was~~ $~~655~~139,000. ~~The~~before ~~credit line bears interest at~~ the ~~prime~~cumulative ~~rate~~effect ~~plus~~of ~~2 percent.~~implementing ~~On October 24, 2001 the~~SFAS ~~Company amended the credit line to provide for a $500~~142,~~000~~ ~~limit~~Goodwill and anOther ~~expiration~~Intangible ~~date~~Assets in ofthe ~~January 31, 2002~~ first

At September 30, 2001, $0 was outstanding under the line of credit and the Company was in compliance with the related covenants. During fiscal 2001 the Company was not in compliance with a cash flow, and a minimum tangible equity covenant, and obtained waivers for the non-compliance. It is likely that waivers may be required for both the cash flow coverage as well as the minimum tangible equity covenants as long as the Company has net losses. 10

~~While waivers~~quarter ~~for~~of ~~noncompliance~~2002. The ~~have~~improvement was soprimarily ~~far~~due ~~been~~to ~~obtained~~a bydecrease ~~the~~of ~~Company~~selling, ~~there~~general isand noadministrative ~~assurance~~expenses of ~~that~~$450,000 ~~waivers~~and ~~will~~improved beoperating ~~obtained~~results inat the ~~future, if needed. Should the~~ Company’s beColorado ~~unable to~~and ~~obtain~~California alocations. Losses ~~waiver~~generated by ~~or be unable to obtain a waiver at an acceptable cost,~~ the ~~Company~~Arizona ~~may~~facility beduring ~~required to convert~~ the ~~operating~~2003 ~~line~~and to2002 anfiscal ~~asset~~periods ~~based~~were ~~loan. Asset based loans typically have a~~$98,000 ~~2-5%~~and ~~higher~~$339,000, ~~interest rate than lines of credit~~respectively.

~~The Company~~Income ~~expects~~recognized ~~that~~on ~~cash~~investment ~~flow~~property ~~from~~sales ~~operations~~was ~~combined~~$170,000, ~~with~~$68,000, and ~~the~~$116,000 ~~line~~in of2004, ~~credit~~2003, ~~will~~and be2002, arespectively. The ~~sufficient~~Company ~~source~~plans ~~of liquidity~~ to ~~fund~~liquidate ~~operations. Although~~ the ~~manufactured housing~~remaining ~~industry~~investment ~~has continued to deteriorate over the past year~~properties, ~~management~~which ~~expects~~have ~~that,~~a ~~even~~book ~~with~~value ~~decreased~~of ~~sales and margins~~$224,000 ~~inventory~~as ~~could~~of ~~be sold and not replaced~~September 30, ~~or replaced at lower cost resulting~~ in2004, ~~sufficient~~as ~~liquidity~~permitted ~~even~~by ~~within~~market ~~the deteriorating industry~~conditions.

In order to reduce cash outflow, as well as improve performance, the unit purchase cost of axles and tires was reduced during the first quarter of fiscal 2001. The reduction in unit purchase cost was generally accepted within the industry as a nationwide surplus of axles and tires existed due to the decreased production and resulting fewer homes requiring axles and tires. While cash outflow decreased at the same time purchase costs were reduced, inventory was sold for about three months before the decreased purchase costs were reflected in operations. As a result of the decreased purchase cost less inventory was acquired than sold by the Company during fiscal 2001 resulting in $1,137,000 of positive cash flow. Additional significant positive cash flow from the reduction in inventory could not be maintained without a serious disruption in operations. No further major reductions in inventory is planned. Seasonality

12The manufactured housing industry and the site-built construction industry are seasonal within the majority of the Company’s market area. Typically, sales for the months from November through March are lower than for other months due to weather and ground conditions. Assuming normal weather conditions, the Company expects the quarters ended September 30 and June 30 to be higher volume quarters and the quarter ended March 31 to be the lowest volume quarter. The following table summarizes operating results by quarter and demonstrates the seasonal nature of TJT’s operations:

Other Events

	December 31			March 31			June 30		September 30
	(Unaudited)			(Unaudited)			(Unaudited)

Fiscal year ended 2004
Net sales	$	4,377		$	4,337		$	5,230	$	5,757
Gross profit	1,064			1,083			1,261		1,412
Operating income (loss)	36			(11		)	57		69
Net income (loss)	55			64			110		168

Fiscal year ended 2003
Net sales	$	4,918		$	4,571		$	5,127	$	5,112
Gross profit	1,036			849			1,100		1,262
Operating income (loss)	(2		)	(292		)	81		201
Net income (loss)	6			(155		)	72		209

TheLiquidity Board of Directors authorized a stock repurchase plan of 500,000 shares in May 1999. This plan was in addition to 240,000 additional shares authorized in November 1998. The shares authorized for repurchase accounted for approximately 15 percent of the Company's outstanding stock. During fiscal 2001 no shares of stock were repurchased, and theCapital Board authorizations to purchase stock expired. Resources

~~During~~Operating ~~fiscal~~activities ~~1999~~for ~~$99,875~~2004 ofused ~~the~~cash of $~~260~~218,000 ~~loss~~compared ~~before~~to operating ~~income~~activities ~~taxes~~in ~~was~~2003 ~~attributable~~which toprovided ~~the~~cash ~~writeoff~~ of a$306,000. In ~~securities~~2004, ~~subscription~~the ~~agreement~~Company ~~with~~increased ahousing ~~group~~accessories inventory oflevels ~~investors.~~as ~~Two~~a ~~out~~result of ~~six investors~~adding ~~failed~~new toproduct ~~pay~~lines ~~their~~and ~~portion~~changing suppliers of ~~the~~certain ~~$470,000~~tie ~~subscription~~down toaccessories. In addition, ~~which~~a ~~they~~contractual ~~had~~agreement ~~contractually~~with ~~agreed.~~a ~~The~~major ~~Company~~customer ~~has~~who ~~exhausted~~also ~~all~~supplies ~~methods~~tires and ofaxles ~~collecting~~to the ~~amounts~~Company, ~~due~~significantly ~~under~~reduced the ~~subscription agreement~~payment ~~short~~terms ofon ~~litigation.~~purchases made ~~Because~~by the Company. Prepaid ~~has~~expenses ~~not~~and ~~been~~other ~~able~~current ~~to identify~~ assets increased ~~owned~~ by ~~either~~$95,000 ofin ~~the~~2004, ~~individuals~~of ~~from~~ which ~~a judgment could be paid~~$87,000 ~~the~~is ~~Company~~a ~~has~~result ~~been~~of ~~reluctant~~direct ~~to incur~~deposit ~~the~~amounts ~~substantial~~related ~~costs necessary~~ to ~~bring~~ the ~~litigation~~October 1st topayroll ~~obtain~~clearing ~~such~~the abank ~~judgment.~~in September, ~~The~~as ~~two~~well ~~individuals~~as ~~are~~increases ~~not~~in ~~employees~~advances ofto ~~the~~tire ~~Company~~ and ~~are~~axle ~~not known to be shareholders~~buyers.

Investing activities used $11,000 of cash during 2004 compared to $1,000 in 2003. Amounts received on notes receivable and investment property sales during 2004 were more than offset by $122,000 of leasehold improvements made to the Chehalis, Washington and Eugene, Oregon facilities along with $105,000 invested in trucks, trailers, and equipment. The Company ~~Strategy~~ invested approximately $40,000 in necessary upgrades to the information systems and accounting software during 2004. Also, $17,000 was used to further develop property parcels owned by the Company to increase market appeal. Investment property sales contributed $158,000 and $153,000 to cash flow from investing activities for the periods ending September 30, 2004 and 2003, respectively. The Company will continue to focus on liquidating its current investment property holdings and expects to see similar

The Company focus will be the return to profitability. The Company has completed its acquisitions and expansions and now has operating locations in six states. The Salem, Oregon recycling operations were condensed into the Centralia, Washington facility during August, 2000. Management was replaced in California in July 2000; Colorado in June 2000; and Arizona in May 2000. 11

~~The manufactured~~results ~~housing industry declined~~ in fiscal ~~2000~~2005. The ~~and the beginning of 2001 faster than the~~ Company ~~was~~made ~~able~~an toadvance ~~react to the decline, resulting~~ in ~~excess~~exchange ~~capacity that was~~for ~~expensive,~~a ~~but~~note ~~produced~~receivable nofrom ~~revenue.~~a Asrelated ofparty ~~the~~which ~~second quarter of fiscal 2001 the Company caught up with the industry decline, and~~ is ~~currently~~discussed ~~matching~~further ~~our~~in ~~customers'~~Note ~~production~~K ~~levels. Finished good~~of ~~levels~~the ~~are~~financial ~~down to less than one month of expected sales~~statements.

~~The~~ On March 31, 2004, the Company~~-wide~~ ~~reduction~~renewed ofa $350,000 ~~inventory~~revolving ~~costs~~credit ~~started~~facility inthat ~~December~~matures on March ~~2000~~31, ~~has~~2005 ~~had~~and is secured by receivables and inventory. The interest rate on the ~~desired~~credit ~~effect~~line ofis ~~reducing~~the ~~costs~~prime ~~and~~rate ~~increasing~~plus ~~cash~~one percent. As ~~Balancing~~of ~~inventory~~September 30, to2004, ~~reduce~~ the ~~excess~~Company ofhas ~~certain~~not ~~items~~borrowed ison the ~~next~~line ~~step~~and is in ~~reducing~~compliance ~~inventory~~with ~~costs~~all covenants. The ~~Lower~~Company ~~purchase~~expects ~~costs~~that cash ~~and~~flow ~~volume~~from ~~for~~operations ~~items~~combined with the ~~Company~~line ~~has an excess~~ of ~~are~~credit ~~continuing,~~will asbe ~~well~~a assufficient source ~~wholesaling~~of ~~these items~~liquidity to ~~other~~fund ~~recyclers~~operations.

13Critical Accounting Policies

The Company’s financial statements have been prepared in conformity with generally accepted accounting principles. In preparing the financial statements, ~~ITEM~~management 8makes many estimates and assumptions that affect the amounts and disclosures reported in the financial statements and related accompanying notes. ~~FINANCIAL~~ Changes ~~STATEMENTS~~in ~~AND~~most ~~SUPPLEMENTARY~~of ~~DATA~~ the estimates and assumptions would not likely materially affect the Company’s financial position and results of operations. However, calculations related to inventory, shipping expenses and deferred tax assets involve subjective judgments, estimates, and assumptions that could produce materially different results if different judgments, estimates, or assumptions were used.

~~T.J.T., INC.—FORM 10-K INDEX TO FINANCIAL STATEMENTS AND SCHEDULES~~ Inventory

		Page
Balance Sheets		15
Statement of Operations		16
Statements of Cash Flows		17
Changes in Equity		18
Notes to Financial Statements		19
Independent Auditors' Report		31

Inventory is stated at lower of cost or market. Cost of the Company’s tire and axle inventory includes unprocessed or raw tires and axles as well as processed or finished tires and axles. A portion of the costs incurred in acquiring and processing the tires and axles is allocated to finished inventory based on the number of tires and axles processed at the end of the period. The Company estimates per unit processing and gathering costs based upon labor and manufacturing overhead costs.

14The Company reviews inventory for slow moving or obsolete items on a regular basis. Inventory is written-down based on specific identification, taking into consideration demand in certain markets and other industry conditions. If actual demand or market conditions are less favorable than those estimated, additional write-downs may be necessary.

Shipping ~~T.J.T., INC. BALANCE SHEETS (Dollars in thousands)~~ Allocation

				At September 30,
				2001			2000
Current assets:
	Cash and cash equivalents			$	329		$	54
	Accounts receivable and notes receivable (net of allowance for doubtful accounts of $84 and $8)				1,501			1,893
	Income taxes receivable				—			296
	Inventories				2,679			3,816
	Prepaid expenses and other current assets				80			43
		Total current assets			4,589			6,102
Property, plant and equipment, net of accumulated depreciation					952			1,320
Notes receivable					265			330
Notes receivable from related parties					186			237
Real estate held for investment					562			649
Deferred charges and other assets					145			192
Deferred tax asset					516			420
Goodwill					790			867
			Total assets	$	8,005		$	10,117
Current liabilities:
	Line of credit			$	—		$	1,787
	Accounts payable				759			699
	Accrued liabilities				311			435
		Total current liabilities			1,070			2,921
Deferred income and other noncurrent obligations					130			149
	Total liabilities				1,200			3,070
Shareholders' equity:
	Common stock, $.001 par value; 10,000,000 shares authorized; 4,854,739 shares issued and outstanding				5			5
	Common stock warrants				—			113
	Capital surplus				6,181			6,068
	Retained earnings				1,012			1,254
	Treasury stock (349,800 shares at cost)				(393	)		(393	)
		Total shareholders' equity			6,805			7,047
			Total liabilities and shareholders' equity	$	8,005		$	10,117

The Company allocates to cost of goods sold a portion of the costs associated with gathering and distributing products (shipping costs). These expenses include labor for drivers, fuel, equipment operating leases as well as maintenance and depreciation, along with other expenses related to travel and per diem. These shipping costs are allocated based upon an estimate of the level of gathering and distribution utilized by department and segment of business for each facility operated by the Company. The estimates associated with gathering and delivering tires and axles to manufactured housing factories are allocated to cost of goods sold for each location. Although the estimates used to allocate shipping costs are subjective, they do not change the net income results. However, the allocation to cost of goods sold could impact the gross margin analysis for both business segments from period to period if the estimated levels of shipping costs change significantly.

~~See accompanying~~Income ~~notes to financial statements.~~ Taxes

15The Company’s accompanying Balance Sheets include deferred tax assets resulting from temporary differences, which are expected to reduce future taxable income. Management estimates the realizability of these assets based upon forecasted taxable income. The realizability of these assets is reassessed at the end of each reporting period or as significant events occur which may impact management’s assessment. Failure to achieve forecasted taxable income could affect the realization of certain deferred tax assets, and could result in the recording of a valuation reserve.

~~T.J.T., INC. STATEMENTS OF OPERATION (Dollars in thousands except per share amounts)~~ 12

			For the year ended September 30,
			2001			2000			1999
Sales (net of returns and allowances):
	Axles and tires		$	15,277		$	18,752		$	26,166
	Accessories and siding			5,942			7,577			8,441
	Investment property income			—			552			35
		Total sales		21,219			26,881			34,642
Cost of goods sold
	Axles and tires			12,707			16,507			22,431
	Accessories and siding			4,232			5,613			6,015
	Investment property income			—			382			—
		Cost of goods sold		16,939			22,502			28,446
	Gross profit			4,280			4,379			6,196
Selling, general and administrative expenses				4,840			5,957			6,369
Impairment loss				—			847			—
		Operating income (loss)		(560	)		(2,425	)		(173	)
Interest income				73			72			81
Interest expense				(88	)		(156	)		(67	)
Income on investment property (non-operating)				223			—			—
Other income (expense)				15			30			(101	)
	Income (loss) before taxes			(337	)		(2,479	)		(260	)
Income taxes (benefit)				(95	)		(759	)		(53	)
	Net income (loss)		$	(242	)	$	(1,720	)	$	(207	)
Net income (loss) per common share			$	(0.05	)	$	(0.38	)	$	(0.04	)
Weighted average shares outstanding				4,504,939			4,516,605			4,773,731

Off Balance Sheet Arrangements

~~See accompanying~~Joint ~~notes to financial statements.~~ Venture

16The Company entered into a joint venture, NewCo, to engage in the manufactured housing axle and tire recycling business in Arizona, New Mexico, Kansas and southern California. The Company has 50 percent ownership interest in the joint venture and will receive 40 percent of the net profits or losses. The Company also receives rental income from NewCo for equipment leased to the joint venture. The Company recognized $224,000 and $63,000 of income in 2004 and 2003, respectively, related to the investment as is further described in Footnote N of the financial statements.

The Company contributed $130,000 in cash and T$259,000 of inventory during 2003.J No capital contributions were made during 2004.T Further capital contributions to NewCo are limited to an additional $20,000 in aggregate unless both parties agree to the additional contributions and are willing to contribute 50 percent of the required capital. The Company’s exposure is limited to amounts contributed as of the end of 2003 as well as amounts included in trade receivables, ~~INC~~which approximate $2,000 in 2004 and $16,000 in 2003. ~~STATEMENTS~~ The OFCompany ~~CASH~~accounts ~~FLOWS (Dollars~~for its interest in ~~thousands)~~ the joint venture using the equity method.

				For the year ended September 30,
				2001			2000			1999
Cash flows from operating activities:
	Net income (loss)			$	(242	)	$	(1,720	)	$	(207	)
	Adjustments to reconcile net income (loss) to net cash provided by operating activities:
		Depreciation and amortization			604			794			792
		Impairment Loss			—			847			—
		(Gain) loss on sale of assets			(225	)		(30	)		2
		Change in receivables			404			34			271
		Change in inventory			1,137			205			(95	)
		Change in prepaid expenses and other current assets			(37	)		47			(146	)
		Change in accounts payable			60			42			(646	)
		Change in taxes			200			(645	)		(8	)
		Change in other assets and liabilities			(158	)		(104	)		(78	)
			Net cash provided/used by operating activities		1,743			(530	)		(115	)
Cash flows from investing activities:
	Additions to property, plant and equipment				(81	)		(94	)		(364	)
	Issuance of notes receivable				—			(10	)		(3	)
	Payments on notes receivable				88			44			33
	Proceeds from sale of assets				22			36			—
	Land purchased for investment				(45	)		(439	)		(308	)
	Sale of land purchased for investment				335			361			56
	Net cash paid for Ford acquisition				—			—			(251	)
	Direct acquisition costs				—			—			(4	)
			Net cash provided/used by investing activities		319			(102	)		(841	)
Cash flows from financing activities:
	Treasury stock transactions				—			(71	)		(278	)
	Net proceeds(payments) from debt				(1,787	)		628			1,159
			Net cash provided/used by financing activities		(1,787	)		557			881
Net increase/(decrease) in cash and cash equivalents					275			(75	)		(75	)
Cash and cash equivalents at October 1					54			129			204
Cash and cash equivalents at September 30				$	329		$	54		$	129
Supplemental information:
	Interest paid			$	88		$	156		$	67
	Income tax refunds/(payments)				296			114			(81	)
Noncash transactions:
	Sale of land by issuance of note receivable			$	34		$	31		$	98
	Impairment loss				—			847			—
	Acquisition of property, plant and equipment by capital lease				—			—			22
	Reaquisition of investment property by cancellation of note receivable				50			—			38
	Sale of Bend, Oregon location by note receivable				—			—			195
	Offset of subscription receivable against accrued payable				—			—			294
	Write off of subscription receivable				—			—			100

Contractual Obligations

~~See~~The ~~accompanying~~following ~~notes~~table summarizes the Company’s significant contractual obligations at September 30, 2004, and the effect the obligations are expected to ~~financial~~have ~~statements.~~on the Company’s cash flow in future periods.

	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years

Operating leases	$	624,400	$	236,126	$	287,654	$	86,375	$	14,245

The timing of payment ~~T.J.T.,~~amounts ~~INC~~of the obligations listed above are estimated based upon current information. ~~STATEMENTS~~ The OFtiming ~~CHANGES~~of INpayments ~~SHAREHOLDERS'~~and actual ~~EQUITY (Dollars~~amounts inpaid ~~thousands)~~ may be different depending on potential changes to lease agreements. The amounts above include leases that are non-cancelable.

	Common Stock		Common Stock Warrants			Capital Surplus		Retained Earnings			Treasury Stock			Stock Subscriptions Receivable
Balance at October 1, 1998	$	5	$	113		$	6,068	$	3,181		$	(44	)	$	(394	)
Changes in stock subscriptions receivable		—		—			—		—			—			394
Treasury stock transactions		—		—			—		—			(278	)		—
Net loss		—		—			—		(207	)		—			—
Balance at September 30, 1999	$	5	$	113		$	6,068	$	2,974		$	(322	)	$	—
Treasury stock transactions		—		—			—		—			(71	)		—
Net loss		—		—			—		(1,720	)		—			—
Balance at September 30, 2000	$	5	$	113		$	6,068	$	1,254		$	(393	)	$	—
Expiration of warrants				(113	)		113
Net loss		—		—			—		(242	)		—			—
Balance at September 30, 2001	$	5	$	—		$	6,181	$	1,012		$	(393	)	$	—

The Company does not have any long-term debt obligations or any other agreements that require fixed or minimum quantities to be purchased that are enforceable or legally binding purchase agreements.

~~See accompanying~~Company ~~notes to financial statements.~~ Strategy

18The Company will endeavor to maintain its market share and profit margins in the axle and tire segment of the business. The Company expects demand to increase over the next year and as a result could encounter supply shortages in used tires and axles. The Company plans to protect profit margins through careful planning, good purchasing practices, and judicious price increases for reconditioned axles and used tires. Prior experience indicates that should the demand for used tires and axles exceed availability, it would be possible to supplement supply with new product at comparable profit margins.

The Company’s growth strategies for fiscal 2005 include research and development of carefully selected new product lines for addition into the ~~T.J.T.~~accessories and siding distribution segment, ~~INC. NOTES~~ TOand ~~FINANCIAL~~a ~~STATEMENTS September~~significantly expanded marketing effort for Anchor Metal Buildings®. 30 The marketing plan for Anchor Metal Buildings® includes strategic placement of model building sales centers, ~~2001~~providing one-stop shopping service to customers throughout the northwest and northern California, ~~2000~~as well as expanded product offerings through improved design and ~~1999~~ engineering.

~~NOTE A—SIGNIFICANT ACCOUNTING POLICIES~~ 13

~~Business~~These ~~Activity~~ strategies are consistent with our continuing quest to develop a more diversified and equal business base for the Company.

~~The~~ITEM ~~Company is engaged in the business of repairing and reconditioning axles and tires for the manufactured housing industry~~7A. ~~The~~QUANTITATIVE ~~Company~~AND ~~also~~QUALITATIVE ~~sells~~DISCLOSURE ~~skirting and~~ABOUT ~~other~~MARKET aftermarket accessories to manufactured housing dealers, and vinyl and steel siding primarily to the site-built housing market. The Company grants trade credit to customers in Idaho, Oregon, California, Utah, Washington, Montana, Colorado, Wyoming, Arizona, Texas, New Mexico, and Nevada, substantially all of whom are manufactured housing factories, manufactured housing dealers, site-built home contractors or siding contractors. RISK

~~Major~~The ~~Suppliers~~Company ~~and~~is ~~Customers~~ not required to provide this information pursuant to Item 305(e) of Regulation S-K.

TheITEM Company had no single supplier of axles and tires or accessories that represented 10 percent or more of total purchases8. TheFINANCIAL CompanySTATEMENTS hasAND certain majorSUPPLEMENTARY customers for reconditioned axles and tires, all of which are manufactured housing producers. Three companies have purchases representing 10 percent or more of sales: DATA

	2001	2000	1999
Company A	18	12	8
Company B	10	9	14
Company C	10	14	20

T.J.T., INC. – FORM 10-K

~~Cash~~INDEX ~~and~~TO FINANCIAL ~~Cash~~STATEMENTS ~~Equivalents~~ AND SCHEDULES

~~The~~Balance ~~Company~~Sheets ~~considers~~Statements ~~all~~of ~~highly~~Operation ~~liquid~~Statements ~~investments~~of ~~purchased~~Cash ~~with~~Flows aStatements ~~maturity~~ of ~~three~~Changes ~~months~~in orShareholders’ ~~less~~Equity Notes to beFinancial ~~cash~~Statements ~~equivalents.~~Independent Auditor’s Reports

~~Accounts Receivable and Bad Debts~~ 14

~~The Company performs credit history checks and limited financial analysis before credit terms are offered to customers~~T. ~~Accounts receivable are generally unsecured~~J. ~~Bad debts are accounted for using the allowance method~~T. ~~Expense is recognized based on an estimate of uncollectible accounts~~, INC.

~~Property,~~BALANCE ~~Plant and Equipment~~ SHEETS

~~Property, plant and equipment is stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives for~~(Dollars ~~financial~~in ~~reporting purposes.~~ thousands)

Useful lives for property, plant and equipment are as follows:

At September 30,	2004		2003

Current assets:
Cash and cash equivalents	$	843	$	1,072
Accounts receivable (net of allowance for doubtful accounts of $23 and $68)	1,349		1,336
Current portion of notes receivable	105		38
Inventories	2,847		2,566
Prepaid expenses and other current assets	202		107
Total current assets	5,346		5,119

Property, plant and equipment, net of accumulated depreciation	728		594

Notes receivable, net of current portion	338		323
Notes receivable from related parties	—		89
Real estate held for investment	224		341
Investment in joint venture	676		452
Other assets	212		174
Deferred tax asset	179		450
Total assets	$	7,703	$	7,542

Current liabilities:
Accounts payable	$	556	$	864
Accrued liabilities	640		549
Total current liabilities	1,196		1,413

Deferred income and other noncurrent obligations	57		79
Total liabilities	1,253		1,492

Shareholders’ equity:
Preferred stock, $.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	—		—
Common stock, $.001 par value; 10,000,000 shares authorized; 4,504,939 shares issued and outstanding	5		5
Capital surplus	5,791		5,788
Retained earnings	654		257
Total shareholders’ equity	6,450		6,050
Total liabilities and shareholders’ equity	$	7,703	$	7,542

Land and building		5-30 years
Leasehold improvements		3-19 years
Furniture and equipment		3-7 years
Vehicles and trailers		3-7 years

See accompanying notes to financial statements.

~~Notes Receivable~~ 15

~~Notes receivable consist primarily of amounts owed by individuals related to the sale of real estate and are generally secured by the real estate sold~~T.J.T., INC.

19STATEMENTS OF OPERATION

~~Deferred~~(Dollars in ~~Charges~~thousands ~~and~~except ~~Other~~per ~~Assets~~ share amounts)

Deferred charges and other assets consist primarily of contractual rights under a split-dollar life insurance agreement on the life of Terrence Sheldon. The Company owns the policy and pays the premium, and will recover all premiums paid by the Company in 2018, or upon the death of Mr. Sheldon, if earlier.

For the year ended September 30,	2004		2003			2002

Sales (net of returns and allowances):
Axles and tires	$	14,502	$	15,215		$	15,594
Accessories and siding	5,199		4,513			4,792
Total sales	19,701		19,728			20,386

Cost of goods sold
Axles and tires	11,312		12,332			12,690
Accessories and siding	3,569		3,149			3,382
Cost of goods sold	14,881		15,481			16,072

Gross profit	4,820		4,247			4,314

Selling, general and administrative expenses	4,669		4,259			4,709

Operating income (loss)	151		(12		)	(395		)

Interest income	58		51			43
Investment property income	170		68			116
Undistributed equity interest in joint venture income	224		63			—
Rental income	49		34			12
Other income	21		24			18

Income (loss) before taxes	673		228			(206		)

Income taxes (benefit)	276		96			(67		)

Income (loss) before cumulative effect of accounting change	397		132			(139		)

Cumulative effect of accounting change, net of income taxes	—		—			(748		)

Net income (loss)	$	397	$	132		$	(887	)

Net income (loss) per common share basic and diluted:
Continuing operations	$	0.09	$	0.03		$	(0.03	)
Cumulative effect of accounting change	—		—			(0.17		)

Net income (loss) per common share	$	0.09	$	0.03		$	(0.20	)

Weighted average shares outstanding	4,504,939		4,504,939			4,504,939

~~Goodwill~~ See accompanying notes to financial statements.

Goodwill consists of the excess of purchase price paid over net assets acquired. Goodwill is amortized over 15 years on the straight-line method and is presented net of amortization. The carrying amount of unamortized goodwill is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable. During Fiscal 2000 unamortized goodwill in the amount of $767,000 was written off. 16

(Dollars in thousands)	2001			2000			1999
Goodwill at October 1	$	867		$	1,771		$	1440
Purchased additions		—			—			458
Amortization		(77	)		(137	)		(127	)
Impairment loss		—			(767	)		—
Goodwill at September 30		790			867			1,771

T.J.T., INC.

~~The fiscal~~STATEMENTS ~~2000~~OF ~~impairment~~CASH loss of $847,000 consisted of $360,000 of goodwill, $11,000 of merger costs, and $21,000 of property, plant, and equipment related to the Woodland, California acquisition completed in fiscal 1997 and $407,000 of goodwill, $4,000 of merger costs, and $44,000 of property, plant, and equipment related to the Phoenix, Arizona acquisition completed in fiscal 1999. All goodwill attributable to the California and Arizona acquisitions has been impaired. The California and Arizona locations experienced increases in sales subsequent to acquisition with further increases in sales and operational performances expected by management until the rapid deterioration in the manufactured housing industry during fiscal 2000. Due to the deterioration in the industry the Company no longer expected to fully recover the book value assigned to the California and Arizona acquisitions as projected increases in sales and operational performance were sufficient to produce positive cash flow, but insufficient to also cover the amortization of goodwill, merger costs, and certain items of property, plant, and equipment. FLOWS

~~In July 2001, the Financial Accounting Standards Board~~ (~~FASB)~~Dollars ~~issued~~in ~~Statement of Financial Accounting Standards (SFAS~~thousands) No. 141, "Business Combinations" and No. 142, "Goodwill and Other Intangible Assets". SFAS 141 requires business combinations to be accounted for by the purchase method starting July 1, 2001. SFAS 142 requires intangible assets to be amortized over their useful life if determinable. Intangible assets with indeterminable lives (such as goodwill) are no longer subject to amortization, rather they are subject to impairment by applying a fair-value-based test. SFAS 142 must be adopted by the Company on October 1, 2002 unless the Company elects to early adopt the provisions on October 1, 2001. The Company has $790,000 of goodwill as of September 30, 2001 and is recognizing $77,000 of related amortization expense each year.

Implementation of SFAS 142 will cease the amortization of goodwill and instead require the Company to address whether goodwill is impaired using different rules than were acceptable during previous years. Under previous guidance positive cash flow was sufficient from the June 1998 Ken's Mobile Tire acquisition and the November 1996 Bradley Enterprises acquisition to suggest there was no impairment of the resulting goodwill. Under SFAS 142 the preferred impairment test is based upon the Company's market capitalization compared to net tangible assets. Under the guidance of the SFAS 142 preferred impairment test all goodwill will likely be impaired at the time of implementation of SFAS 142. The Company's Board of Directors voted to implement SFAS 142 effective October 1, 2001.

For the year ended September 30,	2004			2003			2002

Cash flows from operating activities:
Net income (loss)	$	397		$	132		$	(887	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	170			226			362
Cumulative effect of accounting change	—			—			748
Gain on sale of assets	(21		)	(32		)	(15		)
Gain loss on sale of property held for investment	(170		)	(62		)	(92		)
Undistributed equity earnings in joint venture	(224		)	(63		)	—
Stock-based compensation	3			—			—
Change in accounts receivables	(18		)	(116		)	246
Change in inventories	(281		)	(232		)	86
Change in prepaid expenses and other current assets	(95		)	(8		)	(19		)
Change in accounts payable	(308		)	209			(104		)
Change in taxes	271			146			19
Change in other assets and liabilities	58			106			(60		)
Net cash provided (used) by operating activities	(218		)	306			284

Cash flows from investing activities:
Purchases of property, plant and equipment	(304		)	(124		)	(73		)
Repayments received on notes receivable	188			89			110
Advances under notes receivable to related parties	(59		)	—			—
Proceeds from sale of assets	23			28			25
Investment in joint venture	—			(130		)	—
Land purchased for investment	(17		)	(17		)	(28		)
Proceeds from sale of land held for investment	158			153			120
Net cash provided (used) by investing activities	(11		)	(1		)	154

Net change in cash and cash equivalents	(229		)	305			438
Cash and cash equivalents at October 1	1,072			767			329

Cash and cash equivalents at September 30	$	843		$	1,072		$	767

Supplemental information:
Cash paid for interest	$	1		$	1		$	2
Income tax refunds received	—			50			34

Noncash transactions:
Sale of land by issuance of note receivable	$	35		$	120		$	74
Cumulative effect of accounting change	—			—			748
Prepaid operating lease	—			—			4
Reacquisition of investment property by cancellation of note receivable	—			—			40
Inventory contributed to joint venture	—			259			—
Deferred gain offset against outstanding note receivable upon payoff	18			—			—

20See accompanying notes to financial statements.

~~Deferred Credits~~ 17

~~Deferred credits consist of gains on the sale of land held for investment where the Company provided virtually 100 percent financing to the buyer~~T. The Company recognizes interest income and then a reduction of the principal balance to the extent of payments received on the related notes receivable until it has received 25 percent or more of the original principal balanceJ.T., ~~at which point the remaining deferred gain is recognized~~INC.

~~Securities~~STATEMENTS ~~Subscription~~OF ~~Agreement~~ CHANGES IN SHAREHOLDERS’ EQUITY

On(Dollars ~~January 31, 1995, the Company entered into a securities subscription agreement with a group of investors whereby the Company issued 400,000 shares of common stock~~ in exchange for an unsecured promissory note of $470,000 due September 30, 2000 and bearing interest at eight percent. During 1998 two of the investors paid a total of $17,625. Three members of the group qualified as related parties. Robert M. Rubin held greater than five percent of the outstanding stock, Stephen A. Weiss was a director of the Company until he resigned on June 15, 1997, and Arthur J. Berry is a director of the Company. Mr. Berry paid $58,750, plus interest, representing his portion of the note on March 20, 1997. Mr. Weiss' $70,500 portion of the note receivable was written off during 1999 due to the uncertainty of collection. Mr. Rubin's $293,750 portion of the note receivable was offset in fiscal 1999 against a payable due Mr. Rubin. thousands)

Income Taxes

	Preferred Stock			Common Stock
	Preferred Stock		Outstanding Shares	Common Stock		Outstanding Shares	Capital Surplus			Retained Earnings			Treasury Stock

Balance at September 30, 2001	$	—	—	$	5	4,504,939	$	6,181		$	1,012		$	(393	)

Net loss	—		—	—		—	—			(887		)	—

Balance at September 30, 2002	$	—	—	$	5	4,504,939	$	6,181		$	125		$	(393	)

Retired treasury stock							(393		)				393
Net income	—		—	—		—	—			132			—

Balance at September 30, 2003	$	—	—	$	5	4,504,939	$	5,788		$	257		—

Stock Based Compensation							3
Net Income	—		—	—		—	—			397			—

Balance at September 30, 2004	$	—	—	$	5	4,504,939	$	5,791		$	654		$	—

~~Income~~See ~~taxes~~accompanying ~~are~~notes ~~accounted for using the asset and liability method under which deferred income taxes are determined based on differences between the financial~~to ~~reporting~~financial ~~and tax basis of assets and liabilities~~statements. ~~Deferred income taxes are measured by applying enacted tax rates and laws to taxable years in which such differences are expected to reverse.~~

~~Earnings Per Share~~ 18

~~Earnings per share is computed by dividing net income applicable to common shareholders by the weighted average number of shares outstanding~~T. J.T., INC.

All warrantsNOTES andTO optionsFINANCIAL are antidilutive for each year presented. For fiscal 2001, 4,500,644 warrants and 340,000 stock options were excluded from the computation of diluted earnings per share as they were antidilutive. The warrants expired on December 21, 2000, and the stock options could potentially be dilutive to earnings per share in the future. STATEMENTS

~~Revenue~~September 30, ~~Recognition~~ 2004, 2003 and 2002

~~The~~NOTE ~~Company~~A ~~recognizes~~- ~~revenue~~SIGNIFICANT atACCOUNTING ~~the time delivery is made to the customer, or when used by the customer in the case of consigned inventory. No agreements exist requiring any performance by the Company subsequent to the sale.~~ POLICIES

ConcentrationBusiness of Credit Risk Activity

~~All~~The ~~trade~~Company ~~receivables~~is ~~are~~engaged ~~due~~in ~~from~~the ~~entities~~business ~~involved~~of repairing inand reconditioning axles and tires for the manufactured housing industry. The Company also sells skirting and ~~are~~other aftermarket ~~unsecured.~~accessories ~~The~~to ~~accounting~~manufactured ~~loss~~housing ~~incurred~~dealers, ifand ~~all~~vinyl ~~parties~~siding primarily ~~failed~~to ~~entirely~~the site-built housing market. The Company grants trade credit to customers in Idaho, Oregon, ~~perform~~California, onUtah, ~~their~~Washington, ~~obligation~~Montana, isColorado, ~~equal~~Wyoming, toArizona, ~~the~~Minnesota, ~~balance~~Nebraska, Nevada, ~~outstanding~~North ~~for~~Dakota, ~~trade~~and ~~accounts~~South ~~receivable.~~Dakota, substantially all of whom are manufactured housing factories, manufactured housing dealers, site-built home contractors or siding contractors.

~~Notes receivable~~The ~~related~~Company tooperates ~~sales~~in oftwo ~~real~~business segments: Axle ~~estate~~and ~~held~~Tire ~~for~~Reconditioning and ~~investment~~Accessories ~~are~~and ~~secured~~Siding ~~by real estate located near Emmett, Idaho~~Distribution. ~~Notes receivable related to the sale of the retail~~ ~~distribution~~These ~~location~~segments inhave ~~Bend,~~been ~~Oregon~~determined ~~is secured~~ by ~~inventory~~evaluating ~~and receivables and represents approximately $165,000 of~~ the ~~note~~Company’s ~~receivable balance at September 30, 2001. The accounting loss~~internal ~~incurred~~reporting ifstructure ~~all~~and ~~parties~~nature ~~failed~~of ~~entirely~~products offered.

21Major Suppliers and Customers

The Company had no single supplier of axles toand ~~perform~~tires onthat ~~their~~represented ~~obligation~~10 ispercent ~~equal~~or tomore ~~the~~of ~~balance~~total ~~outstanding~~purchases. The onCompany ~~the~~had ~~notes~~one ~~receivable~~supplier ~~less~~of ~~amounts~~accessory products, ~~realizable~~D-Mac, ~~from~~that ~~the~~supplied ~~foreclosure~~11 percent of total accessories purchases. The Company has certain major customers for reconditioned axles and ~~resale~~tires, all of which ~~the~~are ~~assets~~manufactured ~~securing~~housing ~~the~~producers. Three ~~notes~~companies ~~receivable.~~have purchases representing 10 percent or more of sales:

Fair Value of Financial Instruments

	2004	2003	2002
Company A	15	17	15
Company B	10	—	10
Company C	15	14	12

TheCash Company has a number of nonderivative financial instruments, none of which are held for trading purposes. The Company estimates that the fair value of the financial instruments at September 30, 2001 approximates the aggregate carrying values recorded on the balance sheet. The estimated fair values have been determined by the Company using available market information and appropriateCash valuation methodologies. Judgment is required in interpreting market data to develop the estimates of fair value and the estimates are not necessarily indicative of amounts the Company could realize in a current market exchange. Equivalents

~~Significant~~The ~~Estimates~~ Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Cash balances are invested in highly rated financial institutions and may at times exceed FDIC insured limits.

Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and reported revenues and expenses. Significant estimates used in preparing these financial statements include those assumed in determining the collectibility of receivables, and determining the lower of cost or market and obsolescence on inventories. It is reasonably possible that the significant estimates may change within the next year. Receivables

~~Recently~~The ~~Issued~~Company ~~Accounting~~performs ~~Standards~~ credit history checks and limited financial analysis before credit terms are offered to customers. Accounts receivable are generally unsecured. Bad debts are accounted for using the allowance method. Expense is recognized based on an estimate of uncollectible accounts. Trade receivables are reported in the balance sheet net of any chargeoffs and the allowance for doubtful accounts.

InNotes ~~July 2001,~~receivable ~~the~~consist primarily ~~Financial Accounting Standards Board (FASB) issued Statement~~ of ~~Financial~~amounts ~~Accounting~~owed ~~Standards (SFAS) No. 141, "Business Combinations" and No. 142, "Goodwill and Other Intangible Assets". SFAS 141 requires business combinations to be accounted for~~ by ~~the~~individuals ~~purchase method starting July 1, 2001. SFAS 142 requires intangible assets to be amortized over their useful life if determinable. Intangible assets with indeterminable lives (such~~ as ~~goodwill) are no longer subject to amortization, rather they are subject to impairment by applying~~ a ~~fair-value-based~~result ~~test.~~of ~~SFAS 142 must be adopted by~~ the ~~Company~~sale ~~on October 1, 2002 unless the Company elects to early adopt the provisions on October 1, 2001. The Company has $790,000~~ of ~~goodwill~~real ~~as of September 30, 2001~~ estate and isare ~~recognizing~~generally ~~$77,000~~secured ofby ~~related~~the ~~amortization~~real ~~expense~~estate ~~each year~~sold.

Implementation ofProperty, SFAS 142Plant will cease the amortization of goodwill and instead require the Company to address whether goodwill is impaired using different rules than were acceptable during previous years. Under previous guidance positive cash flow was sufficient from the June 1998 Ken's Mobile Tire acquisition and the November 1996 Bradley Enterprises acquisition to prohibit any impairment of the resulting goodwill. Under SFAS 142 the preferred impairment test is based upon the Company's market capitalization compared to net tangible assets. Under the guidance of the SFAS 142 preferred impairment test all goodwill will likely be impaired at the time of implementation of SFAS 142. The Company's Board of Directors voted to implement SFAS 142 effective October 1, 2001. Equipment

~~In June 2001~~Property, ~~the~~plant ~~Financial~~and equipment ~~Accounting~~is ~~Standards~~stated ~~Board~~at ~~(FASB) issued Statement of Financial Accounting Standards (SFAS) No~~cost. ~~143, "Accounting for Asset Retirement~~ ~~Obligations".~~Depreciation ~~SFAS 143 requires the fair value of a liability for an asset retirement obligation be recognized in the period in which it~~ is ~~incurred.~~calculated ~~Under~~using ~~current operations, adoption of SFAS 143 is not expected to have a material impact on~~ the ~~Company's~~straight-line ~~results~~method ofover ~~operations or financial position. SFAS 143 will be effective for~~ the ~~Company's fiscal year ending~~estimated ~~September 30,~~useful ~~2003,~~lives ~~although~~for ~~earlier~~financial ~~adoption~~reporting ~~is permitted~~purposes.

In August 2001, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets". SFAS 144 slightly changes and clarifies the accounting for long-lived assets. 19

22Useful lives for property, plant and equipment are as follows:

Under current operations, adoption of SFAS 144 is not expected to have a material impact on the Company's results of operations or financial position. SFAS 144 will be effective for the Company's fiscal year ending September 30, 2003, although earlier adoption is permitted.

Land and building		5-30 years
Leasehold improvements		3-19 years
Furniture and equipment		3-7 years
Vehicles and trailers		3-7 years

~~Reclassifications~~ Repairs and maintenance costs which do not extend the estimated useful lives of property, plant and equipment are charged to expense in the period incurred.

CertainDeferred amountsCharges haveand beenOther reclassified to conform with the 2001 presentation. Assets

23Deferred charges and other assets consist primarily of contractual rights under a split-dollar life insurance agreement on the life of Terrence Sheldon. The Company owns the policy and pays the premium, and will recover all premiums paid by the Company in 2018, or upon the death of Mr. Sheldon, if earlier.

NOTE B—INVENTORIES Goodwill

~~Inventories~~Goodwill ~~are~~previously ~~stated~~consisted atof the ~~lower~~excess of ~~cost~~purchase ~~(first-in~~price paid over net assets acquired. Effective October 1, ~~first-out~~2001, the Company implemented SFAS 142, and ~~average~~performed ~~cost~~the ~~methods)~~initial orgoodwill test. The impairment test involved estimating fair market values for tangible assets and liabilities and comparing the net tangible values to quoted market prices for the Company’s stock. As of October 1, 2001 the Company’s net tangible value was substantially in excess of quoted market prices for the Company’s stock and a cumulative effect of accounting change of $748,000 was recorded. The cumulative effect of accounting change consists of a $790,000 writedown of goodwill assigned to the Company’s axle and tire reconditioning segment, offset by a $42,000 tax benefit.

(Dollars in thousands)			2001		2000
		2002
Raw materials			$	1,365	$	1,337
Goodwill at October 1		$	790
Finished goods				1,314		2,479
Amortization		—
	Total		$	2,679	$	3,816
Impairment loss		—
Effect of accounting change (pre-tax)		(790		)
Goodwill at September 30		$	—

~~NOTE~~Stock ~~C—PROPERTY,~~Based ~~PLANT AND EQUIPMENT~~ Compensation

(Dollars in thousands)		2001		2000
Land and building		$	386	$	386
Leasehold improvements			370		369
Furniture and equipment			1,116		1,101
Vehicles and trailers			1,291		1,345
			3,163		3,201
Less accumulated depreciation			2,211		1,881
	Net property, plant and equipment	$	952	$	1,320

The Company has a stock option plan which allows officers, directors and key employees to receive non-qualified and incentive stock options. The Company awarded 20,000 stock options to directors during the quarter ended March 31, 2004 with exercise prices ranging between $.70 and $.80. During the quarter ended June 30, 2004, the Company granted 5,000 stock options with an exercise price of $.70 to a director. There were no options granted during the first and final quarters of fiscal 2004. All options granted will become vested at a rate of 20 percent each year for a period of five years from the grant date. As of September 30, 2004, 380,000 shares of stock were available for future option grants.

~~Depreciation~~As ~~expense~~of ~~was $442~~October 1,~~000,~~ ~~$566~~2003,~~000~~ ~~and~~the ~~$538~~Company adopted the fair value method of accounting for stock options contained in Statement of Financial Standards (“SFAS”) No. 123,~~000~~ Accounting for ~~2001~~Stock-Based Compensation. During the transition period, ~~2000~~the Company will be utilizing the prospective method under SFAS No. 148 Accounting for Stock-Based Compensation – Transition and Disclosures. Stock ~~1999~~options granted subsequent to October 1, ~~respectively.~~2003 will be expensed over the stock option vesting period based on fair value which will be determined using the Black-Scholes option-pricing method at the

~~NOTE D—LEASES~~ 20

~~The~~date the ~~Company~~options ~~leases~~are ~~vehicles, administrative office space, manufacturing facilities, building and warehouse space, and storage yard space~~granted. Stock-based compensation ~~The~~for ~~leases,~~the ~~which expire~~period ~~between~~ended ~~June~~September ~~2002 and December 2003~~30, ~~are~~2004 ~~classified~~was ~~as operating leases~~$3,000. The ~~leases~~net ~~have~~of ~~been~~tax ~~entered~~impact ~~into~~on ~~with~~the ~~related parties and unaffiliated entities. There are no significant~~financial ~~renewal~~statements orduring ~~purchase~~fiscal ~~options~~2004 orapproximated ~~escalation clauses~~$2,000.

The ~~future~~following ~~minimum~~table ~~payments~~illustrates bythe ~~fiscal~~effect ~~year~~on ~~under~~net ~~noncancellable~~income ~~operating~~(loss) ~~lease~~and ~~agreements~~net atincome (loss) ~~September 30,~~per ~~2001~~common ~~were:~~share as if the fair value method had been applied to all outstanding and unvested awards in each period:

(Dollars in thousands)
(In thousands, except per share amounts)		2004			2003		2002
2002			$	303
Net income (loss), as reported		$	397		$	132	$	(887	)
2003				109
Add: stock-based employee compensation expense included in net income, net of tax		2			—		—
2004				7
Deduct: stock-based compensation expense determined under fair value method for all awards, net of tax		8			9		12
2005				—
Pro forma net income (loss)		$	391		$	123	$	(899	)
2006				—
Earnings per share:
Thereafter				—
Basic – as reported		$	.09		$	.03	$	(.20	)
	Total		$	419
Basic – pro forma		$	.09		$	.03	$	(.20	)

Rental expenseDeferred and rent paid to related parties were: Gains

(Dollars in thousands)		2001		2000		1999
Rental expense		$	301	$	328	$	322
Rent paid to related parties:
	MBFI, Inc.		100		110		98
	Ulysses Mori		56		56		56
	T.J.T. Enterprises		32		32		33
	Sheldon-Homedale Family, L.P.		25		23		18

Deferred gains include gains on the sale of land held for investment where the Company provided virtually 100 percent financing to the buyer under an installment sale. The Company recognizes interest income and then a reduction of the principal balance to the extent of payments received on the related notes receivable until it has received 25 percent or more of the original principal balance, at which point the remaining deferred gain is recognized if the balance is deemed collectible.

24Income Taxes

~~MBFI, Inc. is~~Income ataxes ~~corporation~~are ~~owned~~accounted for byusing the ~~Bradley~~asset ~~family.~~and ~~Patricia~~liability I.method ~~Bradley,~~under awhich ~~Director~~deferred ofincome ~~the~~taxes ~~Company~~are determined ~~until~~based ~~her~~on ~~resignation~~differences inbetween ~~September,~~the ~~2000,~~financial reporting and ~~parent~~tax ~~of Darren Bradley,~~basis ~~a Director~~ of ~~the~~assets ~~Company~~and ~~until his resignation in May, 2001, owned, along with her spouse, Mark W~~liabilities. ~~Bradley, approximately 65 percent of MBFI, Inc. Mr. Mori is a Director of the~~ Deferred ~~Company.~~income ~~T.J.T.~~taxes ~~Enterprises~~are ismeasured aby ~~partnership~~applying ~~consisting~~enacted oftax ~~Terrence~~rates ~~Sheldon,~~and ~~President~~laws ~~and~~to ~~Chief~~taxable years ~~Executive~~in ~~Officer~~which ofsuch ~~the~~differences ~~Company,~~are ~~and~~expected ~~Jerry~~to Lreverse. Management ~~Radandt,~~has adetermined ~~former officer of the Company.~~that ~~Mr. Sheldon~~expected ~~and~~future ~~Mr. Radandt~~earnings ~~are~~will ~~equal~~be ~~partners~~sufficient infor ~~T.J.T.~~all ~~Enterprises.~~deferred ~~Sheldon-Homedale~~tax ~~Family,~~assets ~~L.P.~~to ~~(Homedale)~~be realizable isbefore atheir ~~partnership owned by the Sheldon family~~expiration. Accordingly, ~~Terrence~~no ~~Sheldon~~valuation ~~owns~~allowance ~~five percent~~has ~~and~~been isoffset aagainst ~~general~~deferred ~~partner of Homedale~~tax assets.

~~The~~Basic ~~Company~~earnings ~~has~~per ashare ~~revolving~~(EPS) ~~credit~~is ~~facility~~computed ~~secured~~based byon ~~receivables~~net income and ~~inventory~~the weighted ~~with~~average anumber ~~financial~~of ~~institution~~common ~~maturing~~shares onoutstanding. Diluted ~~October 31,~~EPS ~~2001.~~is ~~The~~similar ~~maximum amount~~to ~~available~~basic ~~under~~EPS except that the ~~line~~weighted average of ~~credit~~common isshares ~~$655,000.~~outstanding ~~The~~is ~~interest~~increased ~~rate~~to on include the ~~credit~~number ~~line~~of ispotential ~~the~~additional ~~prime~~common ~~rate~~shares ~~plus~~that ~~2 percent.~~would ~~During~~have ~~fiscal~~been outstanding ~~2001~~if the ~~Company~~dilutive ~~did~~options had been exercised. Although basic EPS was not ~~meet~~impacted ~~various~~by ~~restrictive~~the ~~covenants~~dilutive ~~attached~~options tofor ~~the~~each ~~revolving~~year ~~credit~~presented, ~~line~~130,000, 123,000, and ~~obtained~~88,000 ~~waivers~~of ~~for~~ the total ~~noncompliance.~~options Asoutstanding ofat September 30, ~~2001~~2004, ~~the~~2003, ~~Company~~and ~~was~~2002, respectively, were not included in ~~compliance~~the ~~with~~diluted earnings per share calculation because the ~~restrictive~~exercise ~~covenants.~~price of the options were greater than the average market price of the common shares.

~~NOTE F—SHAREHOLDERS' EQUITY~~ 21

~~Authorized~~Revenue stock of the Company consists of 10,000,000 shares of $.001 par value common stock and 5,000,000 shares of $.001 par value preferred stock. No shares of preferred stock have been issued. The Company previously issued 4,500,644 warrants to purchase the Company's common stock which expired December 21, 2000. Recognition

~~NOTE~~The ~~G—STOCK~~Company ~~OPTIONS~~ recognizes revenue at the time delivery is made to the customer, or when used by the customer in the case of consigned inventory. No agreements exist requiring any performance by the Company subsequent to the sale.

~~The~~Concentration ~~Company has two stock option plans which allow key employees and directors~~ of ~~the~~Credit Company to receive incentive and non-qualified stock options. Both plans provide for the options to be granted at market price and to expire ten years from the grant date. The plans allow up to 400,000 incentive, or nonqualified options to be issued to key employees and up to 200,000 nonqualified options to be issued to directors. Risk

		2001		2000			1999
Number of option shares
	Beginning of year		340,000		78,000			125,000
	Granted		—		275,000			68,000
	Became exercisable		81,500		15,000			15,600
	Expired		175,000		(13,000	)		(115,000	)
	Outstanding at end of year		165,000		340,000			78,000
	Exercisable at end of year		57,000		29,000			17,600
Weighted-average exercise prices
	Beginning of year	$	.84	$	1.15		$	4.07
	Granted at fair value		—		.75			1.03
	Expired		.81		1.02			4.24
	Outstanding at end of year		.86		.84			1.15
	Exercisable at end of year		.96		1.23			1.25
Range of exercise prices at September 30, 2001		$	.75-2.00
Remaining weighted-average contractual life of options outstanding at September 30, 2001			8.09 years

All trade receivables are due from entities involved in the housing industry and are unsecured. The accounting loss incurred if all parties failed entirely to perform on their obligation is equal to the balance outstanding for trade accounts receivable.

25Notes receivable related to sales of real estate held for investment are secured by real estate located in Idaho and Utah. Other portions of the notes receivable are secured by receivables. The accounting loss incurred if all parties failed entirely to perform on their obligation is equal to the balance outstanding on the notes receivable less amounts realizable from the foreclosure and resale of the assets securing the notes receivable.

The CompanyFair hasValue elected not to adopt the provisions of Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based Compensation" (FAS 123). Assumptions used to calculate the income statement impact of stock options granted as if the Company had adopted FAS 123 were as follows: Instruments

		2001	2000	1999
Weighted average:
	Risk-free interest rate	—	5.64%	4.77-5.41%
	Expected life	—	10 years	10 years
	Expected volatility	—	74.05%	40.94%
	Expected dividends	—	none	none

The Company has a number of nonderivative financial instruments, none of which are held for trading purposes. The recorded amounts of cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and accrued liabilities as presented in the financial statements approximate fair value because of the short-term nature of these instruments. The recorded amount of short and long-term borrowings approximates fair value as the interest rates approximate current competitive rates. The estimated fair values have been determined by the Company using available market information and appropriate valuation methodologies. Judgment is required in interpreting market data to develop the estimates of fair value and the estimates are not necessarily indicative of amounts the Company could realize in a current market exchange.

Using theseSignificant assumptions, expenses related to the granting of stock options as calculated under FAS 123 were not material to the Company's results of operations. Estimates

~~NOTE~~The ~~H—INCOME~~presentation ~~TAXES~~ of financial statements in conformity with the accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Listed below are the estimates and assumptions that management considers to be significant in the preparation of its financial statements. Significant estimates used in preparing these financial statements are as follows:

~~The Company accounts~~ Allowance for ~~income~~Doubtful ~~taxes~~Accounts as— ~~prescribed~~The byCompany ~~Statement~~estimates oflosses ~~Financial Accounting Standards No. 109, "Accounting~~ for ~~Income Taxes," which~~ ~~requires~~uncollectible ~~deferred~~accounts ~~income~~based ~~taxes~~on tothe beaging ~~accounted~~of ~~for using~~ the ~~liability~~accounts ~~method~~receivable and ~~allows~~an evaluation ~~recognition~~ of ~~operating~~the ~~loss~~likelihood ~~and~~of ~~tax~~success ~~credit~~in ~~carryforwards~~collecting asthe ~~deferred tax assets~~receivable.

Inventory Lower-of-Cost-or-Market – The Company assesses the estimated net ~~components~~realizable value of ~~income~~inventory ~~tax~~on ~~expense~~hand for the ~~years~~purposes ~~ended~~of ~~September 30~~costing ~~are~~at asthe ~~follows:~~lower of cost or market.

(Dollars in thousands)			2001			2000			1999
Current:
	Federal		$	—		$	(308	)	$	(16	)
	State			1			(2	)		(6	)
Deferred:
	Federal			(78	)		(319	)		(26	)
	State			(18	)		(130	)		(5	)
		Total	$	(95	)	$	(759	)	$	(53	)

Inventory Obsolescence Allowance – The Company evaluates the expected salability and usefulness of inventory on hand for purposes of determining the presence of obsolescence for old, defective, or outdated inventory.

~~Deferred taxes~~It ~~for~~is reasonably possible that the ~~years~~significant ~~ended~~estimates ~~September 30~~may ~~are~~change aswithin ~~follows:~~the next year.

Book to tax depreciation differences		$	(32	)	$	58		$	81
Book to tax goodwill amortization differences			(153	)		(190	)		—
Vacation liability			(33	)		(36	)		(37	)
Installment sales of land			(38	)		(21	)		(15	)
Net operating loss adjustment			(260	)		(231	)		—
	Total	$	(516	)	$	(420	)	$	29

26Reclassifications

~~The provision~~Certain ~~for~~2003 ~~income~~and ~~taxes varied from~~ 2002 amounts ~~computed~~have atbeen ~~the~~reclassified ~~federal~~to ~~statutory~~conform ~~rate~~with ~~for~~2004 ~~the years ended September 30 as follows:~~ presentation.

Provision at statutory rate		$	(115	)	$	(848	)	$	(88	)
Amortization of goodwill			27			33			33
State income taxes			(11	)		(87	)		(8	)
Other non-deductible expense			8			19			24
Impairment loss			—			126			—
Other			(4	)		(2	)		(14	)
	Total	$	(95	)	$	(759	)	$	(53	)

Recently Issued Accounting Standards

~~The~~In ~~net~~September 2004, ~~operating~~the ~~loss~~Emerging ~~carry~~Issues ~~forward~~Task atForce ~~September~~(EITF) reached a consensus on EITF Issue No. 3004-10, ~~2001~~Applying Paragraph 19 ~~for~~of ~~federal~~FAS 131 ~~tax~~in ~~purposes~~Determining Whether to Aggregate Operating Segments That Do Not Meet the Quantitative Thresholds. The consensus states that operating segments that do not meet the quantitative thresholds can be aggregated only if aggregation is consistent with the objective and basic principles of ~~approximately~~SFAS ~~$550~~No. 131,~~000~~ Disclosures about Segments of an Enterprise and ~~state~~Related ~~tax~~Information, ~~purposes~~the segments ofhave ~~approximately~~similar $1economic characteristics,~~150,000~~ ~~begins~~and tothe segments share a majority ~~expire~~of the aggregation criteria (a)-(e) listed in paragraph 17 of SFAS 131. The effective date of the ~~year~~consensus ~~2020~~in ~~and~~this ~~2014~~Issue is for fiscal years ending after October 13, ~~respectively~~2004. If the Financial Accounting Standards Board (FASB) ratifies EITF Issue No. 04-10, the Company does not anticipate a material impact on the financial statements.

~~NOTE~~In ~~I—COMMITMENTS~~ March 2004, the EITF reached a consensus on the remaining portions of EITF 03-01, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments with an effective date of June 15, 2004. EITF 03-01 provides new disclosure requirements for other-than-temporary impairments on debt and equity investments. Investors are required to disclose quantitative information about: (i) the aggregate amount of unrealized losses, and (ii) the aggregate related fair values of investments with unrealized losses, segregated into time periods during which the investment has been in an unrealized loss position of less than 12 months and greater than 12 months. In addition, investors are required to disclose the qualitative information that supports their conclusion that the impairments noted in the qualitative disclosure are not other-than temporary. The Company does not expect EITF 03-01 to have a material impact on the financial statements.

~~The~~In ~~Company~~March 2004, ~~has~~the ~~entered~~EITF ~~into~~reached ana ~~employment~~consensus ~~agreement~~on EITF ~~with~~Issue aNo. 03-6, ~~Senior~~Participating Securities ~~Vice~~and ~~President~~the ~~providing~~Two-Class ~~for~~Method under FASB Statement No. 128, Earnings per Share. EITF Issue No. 03-6 clarifies what constitutes a participating ~~minimum~~security ~~annual~~and ~~base~~provides ~~salary~~further guidance in applying the two-class method of ~~$150,000~~calculating ~~extending~~earnings ~~through~~per share. The consensuses reached by the Task ~~May~~Force on EITF Issue No. 03-6 were ratified by the FASB on March 31, 2004, ~~2002~~and are effective for reporting periods beginning after March 31, 2004. The Company currently has only one class of stock issued and does not expect EITF Issue No. 03-6 to materially impact the financial statements.

The FASB issued Statement of Financial Accounting Standards (SFAS) No. ~~Company~~148 isin ~~self~~December 2002. This Statement ~~insured~~amends FASB Statement No. 123, Accounting for Stock-Based Compensation, to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee ~~medical~~compensation. In ~~benefits~~addition, upthis Statement amends the disclosure requirements of Statement 123 to ~~$15~~require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results. Prior to fiscal 2004,~~000~~ ~~per~~the Company ~~occurrence~~accounted for its employee stock-based compensation using the intrinsic value method while meeting the disclosure requirements of Statement No. 148. Effective October 1, 2003, the Company adopted the fair value method of accounting for stock options in accordance with Statement No. 148. During the transition period, the Company will utilize the prospective method. Stock options granted subsequent to October 1, 2003 will be expensed over the stock options vesting period based on fair value which will be determined using the Black-Scholes option-pricing method at the date the options are granted.

~~NOTE~~On ~~J—RELATED~~March 31, ~~PARTY~~2004, ~~TRANSACTIONS~~ the FASB issued Revised Statement of Financial Accounting Standards-Share-Based Payment, effective for fiscal periods beginning after December 15, 2004. This Statement was published by the FASB on December 16, 2004 and supercedes SFAS 123, which allowed for footnote

The Company has extended loans to various related parties. The notes mature through 2009 and have interest rates of prime plus two percent. The totals of the notes and accrued interest receivable from the related parties were $185,819 and $237,012 at September 30, 2001 and 2000, respectively. Long-term portions of these notes are included in notes receivable and current portions of these notes are included as current assets in notes receivable. 23

~~The Company~~disclosure ~~sold a retail distribution location in Bend, Oregon on January 11, 1999 to Dianna L. Gordon, niece~~ of ~~Patricia~~this ~~Bradley a former director and executive officer of~~expense. The ~~the~~ Company, ~~and~~adopted ~~Richard~~Statement PNo. ~~Presley~~148 ~~dba~~in ~~Northwest~~2004 ~~Manufactured Housing Supply for a note bearing interest at Prime plus 2 percent. The sale included fixed assets~~ and, ~~inventory of $194~~therefore,~~795~~ ~~with the~~does ~~note~~not ~~being~~expect ~~secured~~this Statement byto ~~inventory~~have ~~and~~a ~~receivables.~~material ~~For~~impact ~~fiscal~~on ~~year 1999,~~ the ~~Bend~~financial ~~location had sales of $206,000 and an operating loss of $7,000~~statements.

~~The~~In ~~Company~~January 2003, ~~sold~~the ~~400~~FASB issued Interpretation No. 46,~~000~~ ~~shares~~Consolidation of Variable Interest Entities – an interpretation of ~~its~~ARB ~~common~~No. ~~stock~~51, which toprovides aguidance ~~private~~on ~~investor~~the ~~group~~identification inof ~~exchange~~and reporting for avariable interest ~~note~~entities. Interpretation ~~receivable~~No. of46 expands ~~$470,000~~the criteria for consideration in ~~January~~determining whether a variable interest entity should be consolidated. ~~1995~~ Interpretation No. ~~Three~~46 ~~members~~is ofeffective ~~the~~immediately ~~group~~for variable interest ~~qualified~~entities ascreated ~~related~~after ~~parties.~~January 31, ~~Robert~~2003, M.and ~~Rubin~~to ~~held~~variable ~~greater~~interest ~~than~~entities in ~~five~~which ~~percent~~an ofenterprise ~~the~~obtains ~~outstanding~~an ~~stock,~~interest ~~Stephen~~after Athat date. Interpretation ~~Weiss~~No. ~~was~~46 ais ~~director~~effective offor the Company in 2003 because the Company ~~until~~entered heinto ~~resigned~~a joint venture with West States Recycling, Inc. on June 159, ~~1997, and~~2003. ~~Arthur~~The J.Company ~~Berry~~has isa 50 percent interest in ownership and a ~~director~~40 ofpercent interest ~~the~~in ~~Company.~~future Mrnet profits or losses. ~~Berry~~ The ~~paid~~Interpretation ~~$58,750,~~requires ~~plus~~unconsolidated variable interest, ~~representing~~entities ~~his~~to be ~~portion~~consolidated ofby ~~the~~their ~~note~~primary ~~on March~~beneficiaries. ~~20,~~ The ~~1997.~~primary ~~Mr. Weiss'~~beneficiary ~~$70,500~~is ~~portion~~the ofparty that assumes the ~~note~~majority of the ~~receivable~~risk ~~was~~which ~~written~~includes, ~~off~~but ~~during~~is ~~1999~~not ~~due~~limited to, the ~~uncertainty~~entity’s ofexpected ~~collection~~losses. Therefore, Mrin accordance with Interpretation No. ~~Rubin's~~ ~~$293~~46,~~750~~ ~~portion~~the ofCompany will not consolidate the ~~note~~joint ~~receivable~~venture ~~was~~financial information ~~offset~~since inthe ~~fiscal~~primary ~~1999~~beneficiary ~~against~~is aWest ~~payable~~States ~~due Mr. Rubin.~~Recycling, Inc.

~~In October 1996,~~NOTE ~~the~~B ~~Company~~- made a personal loan to Jerry L. Radandt for $46,594 at an interest rate of 12.22%. During fiscal 2001 the loan was amended to an interest rate of prime plus two percent and secured by property, which was subsequently sold resulting in $30,000 of the loan being paid off. As of September 30, 2001, the loan had an outstanding principal balance of $20,869. Terrence Sheldon, President and Chief Executive Officer of the Company, and Jerry L. Radandt are equal partners in T.J.T. Enterprises. INVENTORIES

27Inventories are stated at the lower of cost (first-in, first-out and average cost methods) or market.

In December 2000, the Company sold a building with 8.4 acres to T.J. T. Enterprises for net proceeds of $58,576. The investment property had a book value of $12,420 and resulted in a $46,156 gain to the Company.

	2004		2003

Raw materials	$	1,373	$	1,284
Finished goods	1,474		1,282
Total	$	2,847	$	2,566

~~The Company~~NOTE ~~has~~C ~~purchased~~- ~~used axles and tires and freight services from J.R. Strunk~~PROPERTY, ~~brother~~PLANT ofAND ~~Douglas Strunk, a Director of the Company until his term ended in February 2000. J.R. Strunk was paid $31,468, and $319,845 for materials and services in 2000, 1999, respectively.~~ EQUIPMENT

The Company purchases piers and other materials used to set-up manufactured homes from SAC Industries, Inc. (SAC). SAC was owned by four individuals with each individual owning 25 percent. Ulysses B. Mori, a Director of the Company, was one of the individuals. During fiscal 1999 Mr. Mori transferred his interest in SAC to Mrs. Bradley, a director of the company until her resignation in September 2000 and parent of Darren Bradley, a director of the company until his resignation in May 2001. The Company purchased $558,044, $915,640, and $781,305 of materials from SAC in 2001, 2000, and 1999, respectively.

	2004		2003
Land and building	$	395	$	386
Leasehold improvements	291		399
Furniture and equipment	1,238		1,153
Vehicles and trailers	1,058		1,060
	2,982		2,998
Less accumulated depreciation	2,254		2,404
Net property, plant and equipment	$	728	$	594

~~NOTE~~Depreciation ~~K—EMPLOYEE~~expense ~~BENEFITS~~ was $170,000, $226,000, and $316,000 for 2004, 2003, and 2002, respectively.

~~The~~NOTE ~~Company~~D ~~has~~– aNOTES 401(k) plan through which the employer matches 50 percent of employees' contributions up to 6 percent of wages. Employees are eligible for participation in the 401(k) plan after completing one year of service. Employer contributions to the plan were $39,570, $51,631, and $72,647 in 2001, 2000 and 1999, respectively. RECEIVABLE

~~NOTE~~Notes ~~L—ACQUISITIONS~~ that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported in the balance sheet at outstanding principal adjusted for any related deferred income. Notes receivable consist primarily of amounts owed by individuals resulting from the sale of real estate and are generally secured by the real estate sold.

OnThe ~~January 1, 1999 the~~ Company ~~purchased~~made ~~Terry~~an ~~Ford~~advance to ~~d/b/~~a ~~Ford's~~related ~~Tires~~party ~~and Axles, located~~ in ~~Phoenix,~~exchange ~~Arizona~~ for ~~$275,000.~~a ~~The~~note ~~Company acquired cash of $24,000, accounts~~ receivable ofwhich ~~$84,000,~~is ~~inventory~~secured ofby ~~$317,000,~~real estate. Current and ~~equipment~~long-term ofportion ~~$102,000. The Company assumed liabilities~~ of ~~$710,000. Based on the purchase price of $275,000, goodwill of $458,000~~ ~~was~~notes ~~recorded.~~receivable ~~The~~reported ~~goodwill was written off~~ in ~~fiscal~~the ~~year 2000.~~ accompanying

The fiscal 2000 impairment loss of $847,000 consisted of $360,000 of goodwill, $11,000 of merger costs, and $21,000 of property, plant, and equipment related to the Woodland, California acquisition completed in fiscal 1997 and $407,000 of goodwill, $4,000 of merger costs, and $44,000 of property, plant, and equipment related to the Phoenix, Arizona acquisition completed in fiscal 1999. All goodwill attributable to the California and Arizona acquisitions has been impaired. The California and Arizona locations experienced increases in sales subsequent to acquisition with further increases in sales and operational performances expected by management until the rapid deterioration in the manufactured housing industry during fiscal 2000. Due to the deterioration in the industry the Company no longer expected to fully recover the book value assigned to the California and Arizona acquisitions as projected increases in sales and operational performance are sufficient to produce positive cash flow, but insufficient to also cover the amortization of goodwill, merger costs, and certain items of property, plant, and equipment. 24

~~NOTE~~financial ~~M—BUSINESS~~statements includes ~~SEGMENTS~~ amounts due from related parties totaling $94,000 and $120,000 as of September 30, 2004 and 2003, respectively (See Note K). Notes generally require minimum principal and interest repayments monthly, quarterly or annually, with any remaining amounts due upon maturity or resale of the underlying property. Interest accrues at rates ranging between eight and twelve percent per annum. Minimum principal repayments to be received in future years ending September 30 are as follows:

The Company operates in two business segments: Axles and Tire Reconditioning and Housing Accessories. These segments have been determined by evaluating the Company's internal reporting structure and nature of products offered.

2005	$	105
2006	38
2007	3
2008	118
2009	78
Thereafter	101

Total	$	443

~~Prior to~~NOTE ~~fiscal~~E ~~2001~~- the Company invested in, and on a limited basis, developed real estate for sale. A consensus exists among management as well as the Board of Directors that further investments in investment property are not warranted as they are not sufficiently related to our core manufactured LEASES

28The Company leases vehicles, administrative office space, manufacturing facilities, building and warehouse space, and storage yard space. The leases, which expire between December 2004 and July 2012, are classified as operating leases. The leases have been entered into with related parties and unaffiliated entities.

~~housing~~The ~~related~~Company ~~business.~~entered ~~For~~into ~~fiscal~~a five ~~2001~~year ~~investment~~lease ~~property~~agreement isfor athe ~~passive~~Chehalis, ~~non-operating~~Washington ~~activity~~facility ~~with~~in a2003. The ~~half-time~~Company ~~employee~~has ~~responsible~~the ~~for~~option ~~liquidating~~to buy the property ~~remaining~~at ~~real~~any time during the lease period or upon expiration of the ~~estate~~lease. There are no other significant renewals or escalation clauses.

~~Axles and~~The ~~Tire~~future ~~Reconditioning:~~minimum ~~The~~payments by ~~Company~~fiscal ~~provides~~year ~~reconditioned~~under ~~axles~~non-cancelable ~~and~~operating ~~tires~~lease toagreements ~~manufactured~~at ~~housing~~September 30, 2004 ~~factories.~~ were:

Housing Accessories: The Company provides skirting, siding, and other aftermarket accessories to manufactured housing dealers and contractors.

2005	$	257
2006	165
2007	102
2008	78
2009	8
Thereafter	14
Total	$	624

(Dollars in thousands)	Axle & Tire Reconditioning			Housing Accessories			Investment Real Property			Total
2001
Operating revenue	$	15,277		$	5,942			—		$	21,219
Operating income (loss)		(383	)		(177	)		—			(560	)
Depreciation & Amortization		468			136			—			604
2000
Operating revenue	$	18,752		$	7,577		$	552		$	26,881
Operating income (loss)		(1,702	)		(815	)		92			(2,425	)
Depreciation & Amortization		605			180			9			794
1999
Operating revenue	$	26,166		$	8,441			35		$	34,642
Operating income (loss)		56			(192	)		(37	)		(173	)
Depreciation & Amortization		625			163			4			792

Rental expense and rent paid to related parties were:

The Company does not assign interest income, interest expense, other expenses or income taxes to operating segments. Identifiable assets and related capital expenditures are assigned to operating locations rather than operating segments, with depreciation allocated to the segments based upon usage.

	2004		2003		2002
Rental expense	$	219	$	283	$	320
Rent paid to related parties:
Ulysses Mori	—		—		38
T.J.T. Enterprises	34		31		33
Sheldon-Homedale Family, L.P.	30		25		25

~~NOTE N—IMPAIRMENT LOSS~~ 25

AtMr. ~~September 30~~Mori, ~~2000~~a ~~the~~Director of the Company, ~~evaluated~~owned ~~whether~~property anleased ~~impairment~~by ofthe ~~any~~Company ~~assets~~until ~~existed~~May ~~due~~of to2002. The ~~the~~Company ~~deterioration~~now inleases the ~~manufactured~~property ~~housing~~from ~~industry~~a ~~and~~non-related ~~continued operating losses~~party. T.J.T. ~~The~~Enterprises ~~evaluation~~is a ~~determined~~partnership ~~that~~consisting anof ~~impairment~~Terrence ~~does~~Sheldon, ~~exist~~President ~~with~~and ~~respect~~Chief toExecutive Officer of the ~~Phoenix~~Company, ~~Arizona~~ and ~~Woodland,~~Jerry ~~California~~L. ~~recycling~~Radandt, ~~facilities.~~a ~~The~~former ~~recognition~~officer of ~~this~~the ~~impairment~~Company. Mr. ~~was~~Sheldon inand ~~accordance~~Mr. ~~with~~Radandt ~~the~~are equal ~~provisions~~partners ofin ~~SFAS~~T.J.T. Enterprises. ~~121~~ Sheldon-Homedale Family, ~~Accounting~~L.P. ~~for~~(Homedale) ~~the~~is ~~Impairment~~a ofpartnership ~~Long-Lived~~owned ~~Assets~~by ~~and~~the Sheldon ~~for~~family. Terrence ~~Long-Lived~~Sheldon ~~Assets to Be~~owns ~~Disposed~~five ~~of,~~percent and ~~resulted~~is ina ~~assets~~general ~~being~~partner ~~written~~of ~~down to their estimated discounted cash flow~~Homedale.

~~The fiscal~~NOTE ~~2000~~F ~~impairment~~- ~~loss~~CREDIT of $847,000, included in the axle and tire reconditioning segment, consisted of $360,000 of goodwill, $11,000 of merger costs, and $21,000 of property, plant, and equipment related to the Woodland, California acquisition completed in fiscal 1997 and $407,000 of goodwill, $4,000 of merger costs, and $44,000 of property, plant, and equipment related to the Phoenix, Arizona acquisition completed in fiscal 1999. All goodwill attributable to the California and Arizona acquisitions has been impaired. The California and Arizona locations experienced increases in sales subsequent to acquisition with further increases in sales and operational performances expected by management until the rapid deterioration in the manufactured housing industry during fiscal 2000. Due to the deterioration in the industry the Company no longer expected to fully recover the book value assigned to the California and Arizona acquisitions as projected increases in sales and operational performance were sufficient to produce positive cash flow, but insufficient to also cover the amortization of goodwill, merger costs, and certain items of property, plant, and equipment. As a result of the impairment loss, the depreciation and amortization expense related to these assets will decrease in future periods. FACILITY

29On March 31, 2004, the Company renewed a $350,000 revolving credit facility that matures on March 31, 2005 and is secured by receivables and inventory. The interest rate on the credit line is the prime rate plus one percent. As of September 30, 2004, the Company has not borrowed on the line and is in compliance with all covenants.

NOTE ~~O—LEGAL~~G ~~PROCEEDINGS~~ – CUMULATIVE EFFECT OF ACCOUNTING CHANGE

OnThe ~~July 9, 2001, the~~ Company ~~instituted~~implemented ~~legal~~SFAS ~~action~~142, inGoodwill ~~the~~and ~~District~~Other ~~Court~~Intangible ~~of the Third Judicial District~~Assets, ~~State~~and ofperformed ~~Idaho, against Patricia I. Bradley,~~the ~~Darren~~initial M.goodwill ~~Bradley,~~impairment B.test ~~Kelly~~in ~~Bradley, Mark T~~2002. The ~~Wilson,~~impairment ~~Richard~~test L.involved ~~Morris,~~estimating ~~Mark~~fair W.market ~~Bradley,~~values ~~George~~for ~~Bayn and Mary Carter (the "Bradley Group") who are all~~tangible ~~former~~assets ~~employees~~ and~~/or~~ ~~shareholders~~liabilities ~~of the Company. The lawsuit seeks monetary damages~~ and ~~injunctive~~comparing ~~relief based upon~~ the ~~defendants'~~net ~~breach~~tangible ofvalues ~~covenants not~~ to ~~compete~~quoted ~~with the Company which were~~market ~~granted~~prices tofor the Company’s bystock. As ~~members~~ of ~~the Bradley Group in November~~October ~~1996~~1, 2001 ~~when~~ the Company’s ~~acquired~~net ~~Bradley~~tangible ~~Enterprises, Inc.~~value bywas ~~merger~~substantially ~~from~~in ~~the~~excess ~~Bradley~~of ~~Group. The lawsuit also seeks~~quoted ~~monetary~~market ~~damages~~prices ~~from~~for ~~Patricia~~the I.Company’s ~~Bradley,~~stock ~~Darren M. Bradley~~ and B.a ~~Kelly~~cumulative ~~Bradley~~effect ~~for~~of ~~breach~~accounting change of ~~their~~$748,000 ~~fiduciary~~was ~~duty~~recorded. The cumulative ~~while~~effect ~~they were members~~ of ~~the~~accounting ~~Board~~change ofconsists ~~Directors~~ of ~~the~~a ~~Company.~~$790,000 ~~The~~writedown ~~Bradley Group~~of ~~began~~goodwill ~~directly~~assigned ~~competing~~to ~~with~~ the Company ~~in June, 2001, and the Company'~~’s ~~business~~axle and ~~operations~~tire ~~have~~reconditioning segment, ~~and will be negatively impacted~~ offset by ~~competition~~a ~~from the Bradley Group~~$42,000 ~~primarily~~tax ~~in the states of Washington and Oregon~~benefit.

~~NOTE~~Net ~~P—SUBSEQUENT~~income ~~EVENTS~~ adjusted to exclude amortization expense and related tax benefit is as follows:

On October 19, 2001 the Company entered into two lease agreements with T.J.T. Enterprises covering sales and production facilities in Emmett, Idaho. The leases replace two leases which expired during fiscal year 2001 and have similar provisions except for, an annual 3% escalation, and an allowed termination of the leases with 90 days notice by either party, which are included in the new leases.

For the twelve months ended September 30,	2002

Reported net income	$	(887	)
Goodwill amortization	—
Tax benefit of goodwill amortization	—
Adjusted net income	$	(887	)

~~On October 24,~~There ~~2001~~would ~~the~~be ~~Company~~no ~~amended~~change ~~the~~in ~~credit~~earnings ~~line~~per share tohad ~~provide~~goodwill ~~for~~not abeen ~~$500,000~~amortized ~~limit~~during ~~and an expiration date of January 31,~~ 2002.

~~On November 12,~~NOTE ~~2001~~H ~~the~~- ~~Company's~~SHAREHOLDERS’ ~~Board of Directors voted to implement SFAS 142 effective October 1, 2001.~~ EQUITY

30Authorized stock of the Company consists of 10,000,000 shares of $.001 par value common stock and 5,000,000 shares of $.001 par value preferred stock. No shares of preferred stock have been issued.

~~INDEPENDENT AUDITORS' REPORT~~ 26

~~To the~~NOTE ~~Shareholders~~I ~~and~~– ~~Board~~STOCK ~~of Directors T.J.T., Inc. Emmett, Idaho~~ OPTIONS

~~We have~~The ~~audited~~Company ~~the~~has ~~accompanying~~two ~~balance~~stock ~~sheets~~option ofplans ~~T.J.T., Inc.,~~which allow askey employees and directors of ~~September 30,~~the ~~2001~~Company to receive incentive and non-qualified ~~2000~~stock options. The exercise price, term and ~~the~~other ~~related~~conditions ~~statements~~applicable ofto ~~income,~~each ~~cash~~option ~~flows,~~granted under ~~and~~the ~~changes~~Company’s inplans are generally determined by the Compensation ~~shareholders'~~Committee ~~equity~~of ~~for~~the Board of Directors at the ~~years~~time ~~ended~~of ~~September 30,~~the ~~2001,~~grant ~~2000~~of each option and may ~~1999.~~vary ~~These~~with ~~financial~~each ~~statements~~option ~~are~~granted. No ~~the~~options may ~~responsibility~~have ofa ~~the~~term ~~Company's~~longer ~~management~~than ten years. The ~~Our~~plans ~~responsibility~~allow isup to ~~express~~400,000 anincentive, or nonqualified options to be ~~opinion~~issued onto ~~these~~key ~~financial~~employees ~~statements~~and ~~based~~up onto ~~our~~200,000 ~~audits.~~nonqualified options to be issued to directors.

~~We conducted~~Option ~~our~~activity ~~audits~~under ~~in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform~~ the ~~audit~~Company’s ~~to obtain reasonable assurance about~~stock ~~whether~~option ~~the~~plans ~~financial~~is ~~statements~~summarized are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as ~~well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.~~ follows:

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of T.J.T., Inc., as of September 30, 2001 and 2000, and the results of its operations and its cash flows for the years ended September 30, 2001, 2000 and 1999 in conformity with U.S. generally accepted accounting principles.

	2004		2003		2002
Number of option shares
Beginning of year	230,000		160,000		165,000
Granted	25,000		70,000		5,000
Expired	—		—		10,000
Cancelled	35,000		—		—
Outstanding at end of year	220,000		230,000		160,000
Exercisable at end of year	158,000		139,000		88,000

Weighted-average exercise prices
Beginning of year	$	.68	$	.83	$	.86
Granted at fair value	.74		.34		.40
Expired	—		—		1.05
Cancelled	.92		—		—
Outstanding at end of year	.65		.68		.83
Exercisable at end of year	.72		.80		.88

~~/s/~~The ~~BALUKOFF,~~following ~~LINDSTROM~~table &summarizes ~~CO.,~~information ~~P.A.~~about ~~Boise,~~options ~~Idaho~~outstanding ~~November~~as of 13September 30, ~~2001~~2004:

		Outstanding Options			Exercisable Options
Range of exercise prices	Number of shares	Weighted average remaining contractual life (in years)	Weighted average exercise price		Number of shares	Weighted average exercise price

$ .28 - $ .44	50,000	8.14	$	.28	20,000	$	.28
$ .45 - $ .70	30,000	8.81	.56		10,000	.54
$ .75 - $1.05	140,000	5.63	.80		128,000	.81
	220,000	6.63	$	.65	158,000	$	.72

The Company elected to adopt the provisions of Statement of Financial Accounting Standards No. 123, Accounting ~~ITEM~~for 9Stock-Based Compensation (FAS 123) effective October 1, 2003. ~~CHANGES~~ Assumptions INused ~~AND~~to ~~DISAGREEMENTS~~calculate ~~WITH~~the income ~~ACCOUNTANTS~~statement ONimpact ~~ACCOUNTING~~of ~~AND~~stock ~~FINANCIAL~~options ~~DISCLOSURE~~ granted are as follows:

None.

	2004		2003		2002
Weighted average:
Risk-free interest rate	5.00	%	5.00	%	5.00	%
Expected life	10 years		10 years		10 years
Expected volatility	78.80	%	70.69	%	79.55	%
Expected dividends	none		none		none

~~PART III~~ 27

NOTE ~~ITEM~~J ~~10. DIRECTORS~~- ~~AND~~INCOME ~~EXECUTIVE OFFICERS OF THE REGISTRANT~~ TAXES

~~Directors~~The Company accounts for income taxes as prescribed by Statement of ~~the~~Financial ~~Company~~Accounting ~~and~~Standards ~~executive~~No. 109, ~~officers~~Accounting ~~are~~for ~~included~~Income inTaxes, which requires deferred income taxes to be accounted for using the ~~Company's~~liability ~~definitive~~method and ~~proxy~~allows ~~statement~~recognition ~~under~~of ~~Proposal~~operating 1loss ~~which~~and istax ~~incorporated~~credit ~~herein~~carryforwards byas deferred ~~reference.~~tax assets.

~~Section 16~~The components of income tax benefit (aexpense) ~~Beneficial~~from ~~Ownership~~continuing operations ~~Reporting~~for ~~Compliance~~ the years ended September 30 are as follows:

Section 16(a) of the Securities Exchange Act of 1934 requires the Company's executive officers, directors, and persons owning more than 10% of a registered class of the Company's equity securities to file reports of ownership and changes in ownership with the Securities and Exchange Commission ("SEC"). Executive officers, directors, and greater than 10% stockholders are required by SEC regulations to furnish the Company with copies of all Section 16(a) forms they file. Based solely on its review of such forms and written representations from certain reporting persons that they have complied with the relevant filing requirements, the Company believes that all filing requirements applicable to its executive officers, directors, and greater than 10% stockholders were complied with as of September 30, 2001.

(Dollars in thousands)	2004			2003		2002
Current:
Federal	$		—	$	—	$	(86	)
State	4			4		1
Deferred:
Federal	217			88		22
State	55			4		(4		)
Total	$	276		$	96	$	(67	)

Deferred taxes ~~ITEM~~for ~~11. EXECUTIVE~~the ~~COMPENSATION~~ years ended September 30 are as follows:

Compensation of Directors is included in the Company's definitive proxy statement under Director Compensation which is incorporated herein by reference.

Book to tax depreciation differences	$		(19	)	$	83	$	(70	)
Book to tax goodwill amortization differences	149				166		(182		)
Vacation liability	35				34		(28		)
Installment sales of land	15				29		(31		)
Investment in limited liability company	(82			)	—		—
Net operating loss carryforward	81				138		(228		)
Total	$	179			$	450	$	(539	)

~~All cash~~The ~~compensation~~provision ~~paid~~for byincome ~~TJT,~~taxes asvaried ~~well~~from asamounts ~~certain~~computed ~~other~~at ~~compensation~~the federal ~~paid~~statutory orrate ~~accrued,~~for ~~during~~ the ~~last three fiscal~~ years toended ~~the~~September 30 ~~persons serving~~ as ~~Chief Executive Officer and other Executives earning over $100,000 is shown below.~~ follows:

Provision at statutory rate	$		229		$	78	$	(70	)
State income taxes	39				5		(3		)
Non-deductible expense	9				9		10
Other	(1			)	4		(4		)
Total	$	276			$	96	$	(67	)

~~Summary~~The ~~Compensation~~net ~~Table~~ operating loss carry forward at September 30, 2004 for federal tax purpose of approximately $38,000 and state tax purposes of approximately $907,000 begins to expire in the years 2020 and 2006, respectively.

						Long Term Compensation
	Annual Compensation(1)
Name and Principal Position				Other Annual Compensation(2)		Stock Options Granted
	Year	Salary
Terrence J. Sheldon President, Chief Executive Officer, and Director	2001 2000 1999	$$$	120,000 131,538 172,019	$$$	16,435 15,435 16,088	— — —
Patricia I. Bradley Executive Vice President, and Director	2001 2000 1999	$$$	— 30,223 169,553	$	— — 3,452	— — —
Ulysses B. Mori(3),(4) Manager of New Business Development and Director	2001 2000 1999	$$$	93,784 104,355 142,708	$	— — 3,115	— — —
Rickie K. Treadwell(4),(5) Arizona General Manager and Director	2001 2000 1999	$$$	150,000 150,000 150,000	$$$	4,500 4,500 4,500	— — —

~~Involvement~~NOTE inK ~~Certain~~- ~~Legal~~RELATED ~~Proceedings.~~ PARTY TRANSACTIONS

OnThe ~~July 9, 2001, the~~ Company ~~instituted~~has ~~legal action in the District Court of the Third Judicial District, State of Idaho, against Patricia I. Bradley,~~extended ~~Darren~~loans M.to ~~Bradley,~~various B.related ~~Kelly Bradley, Mark T~~parties. ~~Wilson, Richard L. Morris, Mark W. Bradley, George Bayn and Mary Carter (the "Bradley Group") who are all former employees and/or shareholders of the~~ Total ~~Company.~~principal ~~The lawsuit seeks monetary damages~~ and ~~injunctive~~accrued ~~relief~~interest ~~based~~receivables upon the defendants' breach of covenants not to compete with the Company which were granted to the Company by members of the Bradley Group in November 1996 when the Company acquired Bradley Enterprises, Inc. by merger from ~~the~~related ~~Bradley~~parties ~~Group. The lawsuit also seeks monetary damages from Patricia I. Bradley, Darren M. Bradley and B. Kelly Bradley for breach of their fiduciary duty while they~~ were ~~members of the Board of Directors of the Company. The Bradley Group began directly competing with the Company~~as ~~in June, 2001, and the Company's business and operations have, and will be negatively impacted by competition from the Bradley Group, primarily in the states of Washington and Oregon.~~ follows:

On November 15, 2001, the Federal District Court for the State of Idaho concluded an evidentiary hearing related to a preliminary injunction sought by the Company against the Bradley Group. The Company is awaiting a decision on that hearing. Trial of the case has been set to commence March 4, 2002.

	2004		2003

Current notes receivable	$	94	$	31
Long-term notes receivable	—		89
Total	$	94	$	120

33In October 1996, the Company made a personal loan to Jerry L. Radandt for $46,594 at an interest rate of 12.22 percent. During fiscal 2001 the loan was amended to an interest rate of prime plus two percent and secured by property, which was subsequently sold resulting in $30,000 of the loan being paid off. The outstanding principal loan balance, which is included in the totals specified above, is $3,187 and $9,992 for September 30, 2004 and 2003, respectively. Terrence Sheldon, President and Chief Executive Officer of the Company, and Jerry L. Radandt are equal partners in T.J.T. Enterprises.

In March 2004, the Company made a loan to Leo Radandt for $35,000 at an interest rate of 10 percent. A second loan was made in March 2004 for ~~ITEM~~$10,000 12at an interest rate of 10 percent for the first month and five percent for every month thereafter. ~~SECURITY~~ In ~~OWNERSHIP~~August 2004, a OFthird ~~CERTAIN~~loan ~~BENEFICIAL~~was ~~OWNERS~~made ~~AND~~to ~~MANAGEMENT~~ Leo Radandt for $41,850 at an interest rate of 10 percent. These three notes are secured by property with a fair market value of approximately $110,000 and will mature in March 2005. A fourth note was made in August 2004 for $6,990 at an interest rate of eight percent and is secured by personal property and will mature in August 2005. The outstanding principal loan balance for all four notes on September 30, 2004 was $86,042. Leo Radandt is the son of Jerry L. Radandt, who is an equal partner with Terrence Sheldon, the President and Chief Executive Office of the Company, in T.J.T. Enterprises. In addition, Leo Radandt is an outside supplier of tires and axles to the Company. The Company purchased approximately $866,000 of materials from Wholesale Tire and Axle, which is owned by Leo Radandt, during fiscal 2004.

~~Item~~As 12more isfully ~~included~~described in ~~the~~Note N, the Company's ~~definitive~~is ~~proxy~~a ~~statement~~50 ~~under~~percent ~~the~~partner ~~caption~~in ~~"Security~~a ~~Ownership~~joint ofventure, ~~Certain~~NewCo ~~Beneficial~~Tire ~~Owners~~& Axle, L.L.C., with West States Recycling, Inc. The Company has a 40 percent interest in net profits and ~~Management"~~losses. In ~~which~~addition, isthe Company leases trucks and ~~incorporated~~equipment ~~herein~~to bythe ~~reference~~joint venture. Rental income recognized from NewCo during 2004 and 2003 was $26,000 and $16,000, respectively.

~~For~~The ~~purposes~~Company ofpurchases ~~calculating~~piers and ~~the~~other ~~aggregate~~materials ~~market~~used ~~value~~to ofset-up ~~the~~manufactured ~~voting~~homes ~~stock~~from ~~held~~D-Mac, LLC, which is owned by ~~non-affiliates~~two asindividuals ~~set~~with ~~forth~~each onindividual ~~the~~owning ~~cover~~50 ~~page~~percent. ofRobert ~~this~~B. ~~Form 10-K~~Siegel, elected Director of the Company ~~has~~in ~~assumed~~February 2002, ~~that~~is ~~affiliates~~one ~~are~~of ~~those~~the individuals. The ~~persons~~Company ~~identified~~purchased approximately in$606,000 ~~the~~and ~~portion~~$448,500 of ~~the~~materials ~~definitive~~from ~~proxy~~D-Mac ~~statement~~in ~~identified~~2004 ~~above.~~and ~~Securities Subscription Agreement~~ 2003, respectively.

In 2003, Arthur J. Berry, a Director of the Company became principal shareholder, owning 80 percent, of Kit ~~ITEM~~Homebuilders 13West, L. ~~CERTAIN~~L.C., ~~RELATIONSHIPS~~a ~~AND~~producer ~~RELATED~~of ~~TRANSACTIONS~~ HUD Code manufactured homes. Kit Homebuilders West, L.L.C. purchased approximately $452,000 and $216,000 of products from the Company at competitive market prices during 2004 and 2003, respectively. Subsequently, in October 2004, Arthur J. Berry sold the majority of his interest in Kit Homebuilders West, L.L.C. to a non-related third party.

~~Item~~NOTE 13L is- ~~included~~EMPLOYEE ~~in Note J and D to the financial statements.~~ BENEFITS

The Company has a 401(k) plan through which the employer matches 50 percent of employees’ contributions ~~ITEM~~up 14to six percent of wages. ~~EXHIBITS~~ Employees are eligible for participation in the 401(k) plan after completing one year of service. Employer contributions to the plan were $30,743, ~~STATEMENT~~$33,371, ~~SCHEDULES~~and ~~AND~~$40,022 ~~REPORTS~~in ON2004, ~~FORM~~2003, ~~8-K~~ and 2002, respectively.

Independent Auditors' Report Balance Sheets—September 30, 2001 and 2000 Statements of Income—September 30, 2001, 2000 and 1999 Statements of Cash Flows—September 30, 2001, 2000 and 1999 Statements of Changes in Shareholders' Equity—October 1, 1998, September 30, 1999, 2000 and 2001 29

~~Other schedules~~The ~~are~~Company ~~omitted~~had ~~because~~accrued approximately ~~they~~$30,000 ~~are~~for incurred but not ~~required~~reported oritems ~~because~~in ~~the~~2003 ~~information~~and is2002 associated ~~included~~with inself-insured employee medical benefits. As of October 1, 2003, the ~~financial~~Company ~~statements~~was no orlonger ~~notes~~self-insured ~~thereto~~for employee medical benefits. The Company’s employees are now insured through a traditional medical care plan. The Company will continue to self-insure for employee dental benefits with no plans to accrue for incurred but not reported items as these amounts are insignificant.

~~3.1 Articles of~~NOTE ~~Incorporation~~M of– ~~T.J.T., Inc.,~~BUSINESS a Washington corporation; as amended November 9, 1995, incorporated by reference to Exhibit 3.1 to the Registrant's Form SB-2 Registration Statement dated October 20, 1995, as amended December 6, 1995 (Commission File No. 33-98404). SEGMENTS

~~3.2 Bylaws of~~The ~~T.J.T., Inc.,~~Company aoperates ~~Washington~~in ~~corporation;~~two asbusiness ~~amended~~segments: Axles ~~May 12,~~and ~~1998,~~Tire ~~incorporated~~Reconditioning byand ~~reference~~Accessories and toSiding ~~Exhibit 3~~Distribution.2 These ~~to the Registrant's Form~~segments ~~SB-2~~have ~~Registration~~been ~~Statement~~determined ~~dated~~by ~~October 20,~~evaluating ~~1995,~~the asCompany’s ~~amended~~internal ~~December 6,~~reporting ~~1995~~structure and ~~(Commission~~nature ~~File~~of ~~No. 33-98404).~~products offered.

~~4.1 Specimen Common~~Axles ~~Stock~~and ~~Certificate;~~Tire ~~incorporated by reference to Exhibit~~Reconditioning: ~~4.1~~ The toCompany ~~the~~provides ~~Registrant's~~reconditioned ~~Form~~axles ~~SB-2~~and ~~Registration~~tires ~~Statement~~to ~~dated~~manufactured ~~October 20,~~housing ~~1995, as amended December 6, 1995 (Commission File No~~factories. ~~33-98404).~~

~~4.2 Specimen Redeemable~~Accessories ~~Common~~and ~~Stock~~Siding ~~Purchase Warrant; incorporated by reference to Exhibit~~Distribution: ~~4.2~~ The toCompany ~~the~~provides ~~Registrant's Form SB-2 Registration Statement dated October 20~~skirting, ~~1995~~siding, asand ~~amended~~other ~~December 6,~~aftermarket ~~1995~~accessories to ~~(Commission~~manufactured ~~File~~housing ~~No. 33-98404).~~dealers and contractors.

4.3 Form of Underwriter's Warrant Agreement; incorporated by reference to Exhibit 4.3 to the Registrant's Form SB-2 Registration Statement dated October 20, 1995, as amended December 6, 1995 (Commission File No. 33-98404).

	Axle & Tire Reconditioning			Accessories and Siding			Total
2004
Operating revenue	$	14,502		$	5,199		$	19,701
Operating income (loss)	320			(169		)	151
Depreciation & Amortization	126			44			170
Capital expenditures	256			48			304

2003
Operating revenue	$	15,215		$	4,513		$	19,728
Operating income (loss)	71			(83		)	(12		)
Depreciation & Amortization	161			65			226
Capital expenditures	106			18			124

2002
Operating revenue	$	15,594		$	4,792		$	20,386
Operating income (loss)	(4		)	(391		)	(395		)
Depreciation & Amortization	277			85			362
Capital expenditures	61			12			73

~~4.4 Form of~~The ~~Warrant~~Company ~~Agreement~~does ~~issued~~not toassign ~~1995~~interest ~~Private~~income, interest ~~Placement~~expense, ~~Investors~~other inexpenses ~~October 1995;~~or ~~incorporated~~income bytaxes ~~reference~~ to ~~Exhibit 4~~operating segments.4 Identifiable toassets ~~the~~and ~~Registrant's~~related capital ~~Form~~expenditures ~~SB-2~~are ~~Registration~~assigned ~~Statement~~to ~~dated~~operating ~~October 20,~~locations ~~1995~~rather than operating segments, aswith ~~amended~~depreciation ~~December 6,~~allocated ~~1995~~to ~~(Commission~~the ~~File~~segments ~~No. 33-98404).~~based upon usage.

3430

~~4.5 Form~~NOTE ofN ~~Registration~~– ~~Rights~~JOINT Agreement issued in connection with 1995 Private placement; incorporated by reference to Exhibit 4.5 to the Registrant's Form SB-2 Registration Statement dated October 20, 1995, as amended December 6, 1995 (Commission File No. 33-98404). VENTURE

~~10.1 Amendment~~The Company has a 50 percent ownership tointerest ~~1994~~in ~~Stock~~a ~~Option~~joint ~~Plan~~venture, ~~dated~~NewCo ~~February 22,~~Tire ~~2000~~& Axle, ~~incorporated~~L.L.C. by(NewCo), ~~reference~~which was formed to engage in the ~~Registrant's~~manufactured ~~Form 14A~~housing ~~dated~~axle ~~January 28~~and tire recycling business in Arizona, ~~2000~~New ~~(Commission~~Mexico, ~~File~~Kansas Noand parts of southern California. ~~33-98404);~~ Under ~~1994~~the ~~Stock~~joint ~~Option~~venture ~~Plan;~~agreement, ~~incorporated~~the Company bycontributed ~~reference~~cash and inventory amounting to ~~Exhibit 10~~$389,000 for its initial investment in 2003.4 Further capital contributions to ~~the~~NewCo ~~Registrant's~~are ~~Form~~limited ~~SB-2~~to ~~Registration~~an ~~Statement~~additional ~~dated October~~ $20,000 ~~1995,~~in asaggregate ~~amended~~unless both ~~December 6,~~parties ~~1995~~agree ~~(Commission~~to ~~File~~the Noadditional contributions and are willing to contribute 50 percent of the required capital. ~~33-98404)~~ The Company has a 40 percent interest in net profits or losses. The investment in the joint venture is accounted for using the equity method of accounting, under which the Company’s initial investment is adjusted for its proportionate share of net profits and losses and distributed earnings, if any. NewCo has not made any distributions of profits during 2003 or 2004 to the joint venture members.

~~10.2 Amendment to~~Concurrent ~~1997~~with ~~Directors~~the ~~Stock~~formation ~~Option~~of ~~Plan,~~the ~~dated~~joint ~~February 22~~venture, the ~~2000,~~Company ~~incorporated~~leases bytrucks ~~reference~~and equipment to ~~the~~NewCo. ~~Registrant's~~Gross ~~Form 14A~~rental ~~dated~~income ~~January 28~~recognized from the NewCo leases was approximately $26,000 ~~2000~~and ~~(Commission~~$16,000 ~~File~~in No2004 and 2003, respectively. ~~33-98404);~~ The ~~1997~~following information ~~Directors~~summarizes ~~Stock~~the ~~Option~~activity ~~Plan.~~of the joint venture:

10.3 Indemnity Agreement, dated November 24, 1999, between Joe Light and the Registrant.

(In thousands)	2004		2003

Total and current assets	$	1,637	$	1,239
Total and current liabilities	186		310
Net assets	1,451		929
Revenues	9,176		2,749
Cost of sales	7,074		2,536
Net income	560		159
Company’s interest	224		63
Equity in net assets	$	676	$	452

~~10.4 Lease dated January 1, 2000 between Sheldon Homedale Family L.P. as lessors, and the Registrant as lessee, related to facilities in Emmett, Idaho.~~ 31

~~10.41* Lease~~REPORT OF ~~dated~~INDEPENDENT ~~October 19,~~REGISTERED ~~2001 between T.J.T. Enterprises LLC as lessors, and the Registrant as lessee, related to facilities in Emmett,~~PUBLIC ~~Idaho.~~ACCOUNTING FIRM

~~10.42* Lease dated~~To ~~October 19,~~the ~~2001~~Shareholders ~~between T.J.T. Enterprises LLC as lessors,~~ and ~~the~~Board ~~Registrant~~of ~~as lessee, related to facilities in Emmett, Idaho.~~ Directors

23T.~~1* Consent of~~J.T., ~~Independent Public Auditors~~ Inc.

35Emmett, Idaho

We have audited the accompanying balance sheet of T.J.T., Inc. as of September 30, 2004, and the related statements of ~~SIGNATURES~~ operations, shareholders’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

InWe conducted our audit in accordance with ~~Section 13~~the standards orof 15the Public Company Accounting Oversight Board (dUnited States). Those ofstandards require that we plan and perform the ~~Exchange~~audit ~~Act,~~to obtain reasonable assurance about whether the ~~Registrant~~financial ~~caused~~statements ~~this~~are ~~report~~free toof material bemisstatement. An ~~signed~~audit includes examining, on ~~its~~a ~~behalf~~test bybasis, evidence supporting the ~~undersigned,~~amounts ~~thereunto~~and disclosures in the financial ~~duly~~statements. An ~~authorized~~audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

	T.J.T., INC. Registrant
Date: December 21, 2001	By:	/s/ TERRENCE J. SHELDON Terrence J. Sheldon, President and Chief Executive Officer
Date: December 21, 2001	By:	/s/ LARRY B. PRESCOTT Larry B. Prescott, Senior Vice President, Treasurer and Chief Financial Officer
Date: December 21, 2001	By:	/s/ MICHAEL J. GILBERG Michael J. Gilberg, Vice President and Controller

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of T.J.T., Inc. at September 30, 2004, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States.

36Moss Adams LLP

~~In accordance with the Exchange Act~~Seattle, ~~this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.~~ Washington

Date: December 21, 2001	By:	/s/ TERRENCE J. SHELDON Terrence J. Sheldon, President, Chief Executive Officer, and Chairman of the Board of Directors
Date: December 21, 2001	By:	/s/ ULYSSES B. MORI Ulysses B. Mori, Senior Vice President and Corporate Sales Manager and Director
Date: December 21, 2001	By:	/s/ RICKIE K. TREADWELL Rickie K. Treadwell, Senior Vice President and Senior Vice President, General Manager of the Company's Phoenix Arizona facility and Director
Date: December 21, 2001	By:	/s/ LARRY B. PRESCOTT Larry B. Prescott, Senior Vice President, Treasurer, Chief Financial Officer and Director
Date: December 21, 2001	By:	/s/ ARTHUR J. BERRY Arthur J. Berry, Director
Date: December 21, 2001	By:	/s/ JOE LIGHT Joe Light, Director
Date: December 21, 2001	By:	/s/ LARRY KLING Larry Kling, Director

October 22, 2004

3732

~~INVESTOR~~REPORT ~~INFORMATION~~ OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

~~Corporate~~To ~~Headquarters~~ the Shareholders and Board of Directors

T.J.T., Inc. ~~843 North Washington P.O. Box 278 Emmett, Idaho 83617~~

~~Stock~~Emmett, ~~Exchange Listing~~ Idaho

We have audited the accompanying balance sheet as of September 30, 2003 and the related statements of operation, changes in shareholders’ equity and cash flows of T.J.T., Inc.'s ~~common~~for ~~stock~~the isyear ended ~~traded~~September 30, on2003 ~~the~~and ~~OTC~~2002. These ~~Bulletin~~consolidated ~~Board~~financial ~~under~~statements are the ~~symbol~~responsibility ~~AXLE~~of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

~~Public~~We ~~Information~~ conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

~~Financial~~In ~~analysts~~our opinion, ~~stockbrokers~~the financial statements referred to above present fairly, ~~interested~~in ~~investors~~all material respects, the financial position of T.J.T. Inc. as of September 30, 2003 and ~~others~~the ~~can~~results ~~obtain~~of ~~additional~~its ~~information~~operations byand ~~contacting:~~cash flows for the years ended September 30, 2003 and 2002, in conformity with U.S. generally accepted accounting principles.

~~Larry B.~~Eide ~~Prescott Chief~~Bailly ~~Financial~~LLP ~~Officer~~ (~~208) 365~~formerly Balukoff, Lindstrom & Co., P.A.-~~5321~~ joined Eide Bailly November 1, 2004)

~~Transfer~~Boise, ~~Agent~~ Idaho

~~Corporate Stock Transfer 3200 Cherry Creek Drive South Suite 430 Denver~~November 18, ~~Colorado 80209 (303) 282-4800~~ 2003

~~Annual Meeting~~ 33

~~The annual~~ITEM ~~shareholders~~9. ~~meeting~~CHANGES ofIN ~~T.J.T., Inc.~~AND ~~will~~DISAGREEMENTS beWITH ~~held:~~ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

~~Tuesday,~~On ~~February 19~~May 11, ~~2002 10:00 a.m.~~2004, ~~Mountain~~TJT, ~~Standard~~Inc.’s ~~Time Owyhee~~Audit ~~Plaza~~Committee engaged Moss Adams LLP as independent ~~Boise~~auditor, ~~Idaho~~replacing Balukoff Lindstrom & Co.

~~Proxy~~Balukoff ~~material~~Lindstrom ~~will~~& beCo.’s ~~mailed~~reports toon ~~shareholders~~TJT, ofInc.’s ~~record~~financial ~~prior~~statements tofor the ~~meeting~~past two years did not contain an adverse opinion or disclaimer of opinion. The reports were not qualified or modified as to uncertainty, audit scope, or accounting principles.

~~Independent~~During TJT, ~~Public~~Inc.’s ~~Accountants~~ two most recent fiscal years and through the date of Balukoff Lindstrom & Co.’s dismissal, there were no disagreements with Balukoff Lindstrom & Co. on any other matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to Balukoff Lindstrom & Co’s satisfaction, would have caused Balukoff Lindstrom & Co. to make reference to the subject matter in connection with its report of the financial statements for such year; and there were no reportable events as defined in Item 304(a)(1)(v) of Regulation S-K.

~~Balukoff Lindstrom &~~ITEM Co9A., ~~P.A. Boise,~~CONTROLS ~~Idaho~~AND PROCEDURES

~~Legal~~(a) Evaluation ~~Counsel~~ of Disclosure Controls and Procedures

~~Moffatt,~~Based on their evaluation as of a date within ~~Thomas,~~90 ~~Barrett,~~days ~~Rock &~~of ~~Fields~~the filing date of this Annual Report on Form 10-K, ~~Chtd.~~the Company’s ~~Boise~~principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934 (the “Exchange Act”) are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, ~~Idaho~~summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

38(b) Changes in Internal Controls

~~QuickLinks~~There were no significant changes in the Company’s internal controls or in other factors that could significantly affect the controls subsequent to the date of their evaluation. There were no significant deficiencies or material weaknesses, and therefore there were no corrective actions taken.

PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

Information about directors and executive officers of the Company will be included in the Company’s definitive Proxy Statement which is incorporated herein by reference. In addition, information on Section 16(a) reporting requirements may be found under “Compliance with Section 16(a) of the Exchange Act” which is incorporated herein by reference in the Company’s definitive Proxy Statement.

ITEM 11. EXECUTIVE COMPENSATION

Compensation of Directors will be included in the Company’s definitive Proxy Statement under “Director Compensation” which is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Item 12 will be included in the Company’s definitive proxy statement under the caption “Security Ownership of Certain Beneficial Owners and Management” which is incorporated herein by reference.

For purposes of calculating the aggregate market value of the voting stock held by non-affiliates as set forth on the cover page of this Form 10-K, the Company has assumed that affiliates are those persons identified in the portion of the definitive Proxy Statement identified above and treasury stock held by the Company.

Item 13 is included in Note K and N to the financial statements.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Item 14 will be included in the Company’s definitive proxy statement, which is incorporated by reference.

PART IV

ITEM 15. EXHIBITS, STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a) Financial Statements, Schedules and Exhibits

1. Financial statements and report of Moss Adams L.L.P. and Eide Bailly LLP (f.k.a. Balukoff, Lindstrom & Co. P.A.—joined Eide Bailly LLP November 1, 2004)

(a)	Report of Independent Registered Public Accounting Firm –
	Moss Adams L.L.P. for T. J.T., Inc.
	Independent Auditors’ Report – Balukoff, Lindstrom & Co., P.A.
	Balance Sheets – September 30, 2004 and 2003
	Statements of Operation – September 30, 2004, 2003 and 2002
	Statements of Cash Flows – September 30, 2004, 2003 and 2002
	Statements of Changes in Shareholders’ Equity – September 30, 2002, 2003, and 2004

(b)	NewCo Tire and Axle, L.L.C.
	Balance Sheets – October 31, 2004 and 2003
	Statements of Operation – October 31, 2004 and 2003
	Statement of Cash Flows – October 31, 2004 and 2003
	Notes to the Financial Statements – October 31, 2004 and 2003
	(To be filed by Amendment to 10-K no later than January 31, 2005)

2. Financial statement schedules

Other schedules are omitted because they are not required or because the information is included in the financial statements or notes thereto

3. Exhibits

3.1 Articles of Incorporation of T.J.T., Inc., a Washington corporation; as amended November 9, 1995, incorporated by reference to Exhibit 3.1 to the Registrant’s Form SB-2 Registration Statement dated October 20, 1995, as amended December 6, 1995 (Commission File No. 33-98404).

3.2 Bylaws of T.J.T., Inc., a Washington corporation; as amended November 11, 2003 and attached hereto as Exhibit 3.2, as amended May 12, 1998, incorporated by reference to Exhibit 3.2 to the Registrant’s Form SB-2 Registration Statement dated October 20, 1995, as amended December 6, 1995 (Commission File No. 33-98404).

4.1 Specimen Common Stock Certificate; incorporated by reference to Exhibit 4.1 to the Registrant’s Form SB-2 Registration Statement dated October 20, 1995, as amended December 6, 1995 (Commission File No. 33-98404).

4.2 Specimen Redeemable Common Stock Purchase Warrant; incorporated by reference to Exhibit 4.2 to the Registrant’s Form SB-2 Registration Statement dated October 20, 1995, as amended December 6, 1995 (Commission File No. 33-98404).

4.3 Form of Underwriter’s Warrant Agreement; incorporated by reference to Exhibit 4.3 to the Registrant’s Form SB-2 Registration Statement dated October 20, 1995, as amended December 6, 1995 (Commission File No. 33-98404).

4.4 Form of Warrant Agreement issued to 1995 Private Placement Investors in October 1995; incorporated by reference to Exhibit 4.4 to the Registrant’s Form SB-2 Registration Statement dated October 20, 1995, as amended December 6, 1995 (Commission File No. 33-98404).

4.5 Form of Registration Rights Agreement issued in connection with 1995 Private placement; incorporated by reference to Exhibit 4.5 to the Registrant’s Form SB-2 Registration Statement dated October 20, 1995, as amended December 6, 1995 (Commission File No. 33-98404).

23.1* Consent of Independent Public Auditors - 2004

23.2* Consent of Independent Public Auditors - 2003 & 2002

31.1* Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2* Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1* Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2* Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

* Filed herewith

(b) Reports on Form 8-K. The Company issued a Form 8-K on December 3, 2004. The purpose for the filing was to furnish the press release dated December 3, 2004 announcing our financial results for the three and twelve months ended September 30, 2004.

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			T.J.T., INC.
			Registrant

Date:	December 29, 2004	By:	/s/ Terrence J. Sheldon
			Terrence J. Sheldon, President and Chief Executive Officer

Date:	December 29, 2004	By:	/s/ Larry B. Prescott
			Larry B. Prescott, Senior Vice President, Treasurer and Chief Financial Officer

Date:	December 29, 2004	By:	/s/ Cindy M. Truchot
			Cindy M. Truchot, Vice President and Controller

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Date:	December 29, 2004	By:	/s/ Terrence J. Sheldon
			Terrence J. Sheldon, President, Chief Executive Officer, and Chairman of the Board of Directors

Date:	December 29, 2004	By:	/s/Ulysses B. Mori
			Ulysses B. Mori, Senior Vice President and Corporate Sales Manager and Director

Date:	December 29, 2004	By:	/s/Larry B. Prescott
			Larry B. Prescott, Senior Vice President, Treasurer, Chief Financial Officer and Director

Date:	December 29, 2004	By:	/s/Arthur J. Berry
			Arthur J. Berry, Director

Date:	December 29, 2004	By:	/s/Jerome B. Light
			Jerome B. Light, Director

Date:	December 29, 2004	By:	/s/Larry E. Kling
			Larry E. Kling, Director

Date:	December 29, 2004	By:	/s/Susan M. Allison
			Susan M. Allison, Director


Date:	December 29, 2004	By:	/s/Robert B. Siegel
			Robert B. Siegel, Director

INVESTOR INFORMATION

Corporate Headquarters

T.J.T., Inc.

843 North Washington

P.O. Box 278

Emmett, Idaho 83617

Stock Exchange Listing

T.J.T., Inc.’s common stock is traded on the OTC Bulletin Board under the symbol AXLE.

Public Information

Financial analysts, stockbrokers, interested investors and others can obtain additional information by contacting:

Larry B. Prescott

Chief Financial Officer

(208) 365-5321

Transfer Agent

Corporate Stock Transfer

3200 Cherry Creek Drive South

Suite 430

Denver, Colorado 80209

(303) 282-4800

Annual Meeting

The annual shareholders meeting of T.J.T., Inc. will be held:

Tuesday, February 22, 2005

10:00 a.m., Mountain Standard Time

Owyhee Plaza

Boise, Idaho

Proxy material will be mailed to shareholders of record prior to the meeting.

Independent Public Accountants

Moss Adams LLP

Seattle, WA 98154-1199

Legal Counsel

Moffatt, Thomas, Barrett, Rock & Fields, Chtd.

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