Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Dec. 22, 2014 | |
Document Information [Line Items] | ||
Entity Registrant Name | CEMTREX INC | |
Entity Central Index Key | 1435064 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | CTEI | |
Entity Common Stock, Shares Outstanding | 40,659,129 | |
Document Type | 10-K | |
Amendment Flag | TRUE | |
Document Period End Date | 30-Sep-14 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2014 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $6,691,169 | |
Amendment Description | The sole purpose of this amendment to Cemtrex, Inc.’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014, filed with the Securities and Exchange Commission on December 29, 2014 (the “Form 10-K”), is to include the Audit Report for the fiscal year ended September 30, 2013 and to include disclosures required by that auditor in order for them to release The Audit Report for the fiscal year ended September 30, 2014.In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, this Amendment also includes currently dated certifications from the Registrants’ Chief Executive Officer and Chief Financial Officer as required by Section 302 of the Sarbanes-Oxley Act of 2002.This Amendment does not reflect events after the filing of the Original Filing or modify or update those disclosures affected by subsequent events. Therefore, you should read this Amendment together with the other reports of the Registrants that update and supersede the information contained in this Amendment. |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Current assets | ||
Cash and equivalents | $146,095 | $66,963 |
Short-term investments | 559,815 | 0 |
Trade receivables, net | 4,038,340 | 641,264 |
Trade receivables - related party | 0 | 1,206,372 |
Inventory -net of allowance for inventory obsolescence | 6,270,327 | 159,348 |
Prepaid expenses and other assets | 531,262 | 432,131 |
Total current assets | 11,545,839 | 2,506,078 |
Property and equipment, net | 7,399,096 | 9,323 |
Goodwill | 845,000 | 0 |
Notes receivable - related party | 0 | 354,150 |
Other | 52,428 | 4,225 |
Total Assets | 19,842,363 | 2,873,776 |
Current liabilities | ||
Accounts payable | 2,721,705 | 571,485 |
Accrued expenses | 440,436 | 63,625 |
Accrued income taxes | 62,032 | 0 |
Current portion of long-term liabilities | 689,769 | 0 |
Total current liabilities | 3,913,942 | 635,110 |
Long-term liabilities | ||
Loans payable to bank | 6,549,139 | 0 |
Mortgage payable | 3,865,982 | 0 |
Notes payable to shareholder | 1,869,791 | 1,107,484 |
Total liabilities | 16,198,854 | 1,742,594 |
Commitments and contingencies | 0 | 0 |
Stockholders' equity (deficit) | ||
Preferred stock series A, $0.001 par value, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding, respectively | 1,000 | 1,000 |
Common stock, $0.001 par value, 60,000,000 shares authorized, 40,599,129 shares issued and outstanding | 40,599 | 40,599 |
Additional paid-in capital | 165,730 | 165,730 |
Retained earnings (accumulated deficit) | 3,592,739 | 923,853 |
Accumulated other comprehensive income (loss) | -156,559 | 0 |
Total stockholders' equity (deficit) | 3,643,509 | 1,131,182 |
Total liabilities and stockholders' equity (deficit) | $19,842,363 | $2,873,776 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Preferred Stock Series A, par value (in dollars per share) | $0.00 | $0.00 |
Preferred Stock Series A, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock Series A, shares issued | 1,000,000 | 1,000,000 |
Preferred Stock Series A, shares outstanding | 1,000,000 | 1,000,000 |
Common Stock, par value (in dollars per share) | $0.00 | $0.00 |
Common Stock, shares authorized | 60,000,000 | 60,000,000 |
Common Stock, shares issued | 40,599,129 | 40,599,129 |
Common Stock, shares outstanding | 40,599,129 | 40,599,129 |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Revenues | $47,653,114 | $2,873,659 |
Revenues - related party | 0 | 10,799,872 |
Total revenues | 47,653,114 | 13,673,531 |
Cost of revenues | 32,057,846 | 2,627,241 |
Cost of revenues - related party | 0 | 9,901,308 |
Total cost of revenues | 32,057,846 | 12,528,549 |
Gross profit | 15,595,268 | 1,144,982 |
Operating expenses | ||
General and administrative | 12,582,072 | 798,135 |
Total operating expenses | 12,582,072 | 798,135 |
Operating income (loss) | 3,013,196 | 346,847 |
Other income (expense) | ||
Other Income (expense) | 153,516 | 0 |
Interest Expense | -436,864 | -45,850 |
Total other income (expense) | -283,348 | -45,850 |
Net income (loss) before income taxes | 2,729,848 | 300,997 |
Provision for income taxes | 60,962 | 12,500 |
Net income (loss) | $2,668,886 | $288,497 |
Income (Loss) Per Share-Basic (in dollars per share) | $0.07 | $0.01 |
Income (Loss) Per Share-Diluted (in dollars per share) | $0.07 | $0.01 |
Weighted Average Number of Shares-Basic (in shares) | 40,599,129 | 40,599,129 |
Weighted Average Number of Shares-Diluted (in shares) | 40,599,129 | 40,599,129 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Series A Preferred Stock [Member] |
Balance at Sep. 30, 2012 | $842,685 | $40,599 | $165,730 | $635,356 | $0 | $1,000 |
Balance (in shares) at Sep. 30, 2012 | 40,599,129 | 1,000,000 | ||||
Net income | 288,497 | 288,497 | 0 | |||
Balance at Sep. 30, 2013 | 1,131,182 | 40,599 | 165,730 | 923,853 | 0 | 1,000 |
Balance (in shares) at Sep. 30, 2013 | 40,599,129 | 1,000,000 | ||||
Foreign currency translations | -156,559 | -156,559 | ||||
Net income | 2,668,886 | 2,668,886 | ||||
Balance at Sep. 30, 2014 | $3,643,509 | $40,599 | $165,730 | $3,592,739 | ($156,559) | $1,000 |
Balance (in shares) at Sep. 30, 2014 | 40,599,129 | 1,000,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $2,668,886 | $288,497 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 494,654 | 11,143 |
Changes in operating assets and liabilities: | ||
Trade receivables | -3,397,076 | -348,109 |
Due from related party | 1,560,522 | -851,586 |
Inventory | -6,110,979 | 37,496 |
Prepaid expenses and other assets | -99,131 | -36,278 |
Others | -48,203 | 0 |
Accounts payable | 2,150,220 | 250,776 |
Accrued expenses | 376,811 | 25,103 |
Income taxes payable | 62,032 | 0 |
Net cash provided by (used by) operating activities | -2,342,264 | -622,958 |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | -7,884,427 | 0 |
Purchase of investments | -1,404,815 | 0 |
Net cash used in investing activities | -9,289,242 | 0 |
Cash Flows from Financing Activities | ||
Proceeds from affiliated Loan | 605,748 | 631,026 |
Proceeds from bank loan | 11,104,890 | 0 |
Notes receivable - related party | 0 | -274,150 |
Net cash provided by (used by) financing activities | 11,710,638 | 356,876 |
Net increase (decrease) in cash | 79,132 | -266,082 |
Cash beginning of period | 66,963 | 333,045 |
Cash end of period | 146,095 | 66,963 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 333,613 | 0 |
Cash paid during the period for income taxes | $27,873 | $999 |
ORGANIZATION_AND_PLAN_OF_OPERA
ORGANIZATION AND PLAN OF OPERATIONS | 12 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature Of Operations [Text Block] | NOTE 1 – ORGANIZATION AND PLAN OF OPERATIONS |
Cemtrex Inc. ("Cemtrex" or the "Company") is a diversified international company offering a range of products, systems, and solutions in a wide variety of industries around the world to meet today’s technological challenges. Cemtrex, through its wholly owned subsidiaries provides electronic manufacturing services of custom engineered printed circuit board assemblies, emission monitors & instruments for industrial processes, and environmental control & air filtration systems for industries & utilities. | |
Cemtrex, through its Electronics Manufacturing Services (EMS) group, provides end to end electronic manufacturing services, which includes product design and sustaining engineering services, printed circuit board assembly and production, cabling and wire harnessing, systems integration, comprehensive testing services and completely assembled electronic products. Cemtrex, through its Environmental Products and Systems group, sells a complete line of air filtration and environmental control products to a wide variety of industrial and manufacturing industries worldwide. The Company through its Monitoring Instruments and Products (MIP) group manufactures sells, and services monitoring instruments, software and systems for measurement of emissions of Greenhouse gases, hazardous gases, particulate and other regulated pollutants used in emissions trading globally as well as for industrial processes. The Company also markets monitoring and analysis equipment for gas and liquid measurement for various downstream oil & gas applications as well as various industrial process applications. | |
Cemtrex, Inc. was incorporated as Diversified American Holding, Inc. on April 27, 1998. On December 16, 2004, the Company changed its name to Cemtrex, Inc. | |
On October 31, 2013, the Company completed the acquisition of the privately held ROB Group, a leader in electronics manufacturing solutions located in Neulingen, Germany. The ROB Group, founded in 1989, consisted of 4 distinct operating companies, forming a complete electronics design, manufacturing, assembly, and cabling solutions provider that serves the electronics and cabling needs of some of the largest companies in the world in the Medical, Automation, Industrial, and Renewable Energy industries. ROB Group also has a manufacturing facility in Sibiu, Romania. ROB Cemtrex GmbH now operates as a subsidiary of Cemtrex, Inc. (see NOTE 9). | |
BASIS_OF_PRESENTATION_AND_CRIT
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Significant Accounting Policies [Text Block] | NOTE 2 – BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES | |||||||
Basis of Presentation and Use of Estimates | ||||||||
The Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application. Critical accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition and results and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Company’s significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles. | ||||||||
Basis of Presentation | ||||||||
The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | ||||||||
Fiscal Year-End | ||||||||
The Company elected September 30 as its fiscal year-end date. | ||||||||
Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions | ||||||||
The preparation of financial statements in conformity with 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 disclosure of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s). | ||||||||
Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were: | ||||||||
i. | Allowance for doubtful accounts : Management’s estimate of the allowance for doubtful accounts is based on historical sales, historical loss levels, and an analysis of the collectability of individual accounts; and general economic conditions that may affect a client’s ability to pay. The Company evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole; | |||||||
ii. | Inventory Obsolescence and Markdowns : The Company’s estimate of potentially excess and slow-moving inventories is based on evaluation of inventory levels and aging, review of inventory turns and historical sales experiences. The Company’s estimate of reserve for inventory shrinkage is based on the historical results of physical inventory cycle counts; | |||||||
iii. | Fair value of long-lived assets : Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: | |||||||
i. | significant under-performance or losses of assets relative to expected historical or projected future operating results; | |||||||
ii. | significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; | |||||||
iii. | significant negative industry or economic trends; | |||||||
iv. | increased competitive pressures; | |||||||
v. | a significant decline in the Company’s stock price for a sustained period of time; and | |||||||
vi. | regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. | |||||||
iv. | Valuation allowance for deferred tax assets: Management assumes that the realization of the Company’s net deferred tax assets resulting from its net operating loss (“NOL”) carry–forwards for Federal income tax purposes that may be offset against future taxable income was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry- forwards are offset by a full valuation allowance. Management made this assumption based on (a) the Company has incurred recurring losses, (b) general economic conditions, and (c) its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors. | |||||||
These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. | ||||||||
Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. | ||||||||
Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. | ||||||||
Actual results could differ from those estimates. | ||||||||
Principles of Consolidation | ||||||||
The Company applies the guidance of Topic 810 “Consolidation” of the FASB Accounting Standards Codification to determine whether and how to consolidate another entity. Pursuant to ASC Paragraph 810-10-15-10 all majority-owned subsidiaries—all entities in which a parent has a controlling financial interest—shall be consolidated except (1) when control does not rest with the parent, the majority owner; (2) if the parent is a broker-dealer within the scope of Topic 940 and control is likely to be temporary; (3) consolidation by an investment company within the scope of Topic 946 of a non-investment-company investee. Pursuant to ASC Paragraph 810-10-15-8 the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree. The Company consolidates all less-than-majority-owned subsidiaries, if any, in which the parent’s power to control exists. | ||||||||
The Company's consolidated subsidiaries and/or entities are as follows: | ||||||||
Name of consolidated | State or other jurisdiction of | Date of incorporation or | Attributable | |||||
subsidiary or entity | incorporation or organization | formation (date of acquisition, if applicable) | interest | |||||
Griffin Filters, LLC | New York | September 6,2005 (April 30,2007) | 100 | % | ||||
ROB Cemtrex GmbH | Germany | August 15, 2013 (October 31, 2013) | 100 | % | ||||
Cemtrex Ltd | Hong Kong | 4-Sep-13 | 100 | % | ||||
The consolidated financial statements include all accounts of the Company and its wholly-owned subsidiary as of the reporting period end dates and for the reporting periods then ended. | ||||||||
All inter-company balances and transactions have been eliminated. | ||||||||
Fair Value of Financial Instruments | ||||||||
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: | ||||||||
Level 1 - Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. | ||||||||
Level 2 - Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | ||||||||
Level 3 - Pricing inputs that are generally observable inputs and not corroborated by market data. | ||||||||
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. | ||||||||
The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. | ||||||||
The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses and accounts payable, approximate their fair values because of the short maturity of these instruments. | ||||||||
Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. | ||||||||
Fair Value of Non-Financial Assets or Liabilities Measured on a Recurring Basis | ||||||||
The Company’s non-financial assets include inventories. The Company identifies potentially excess and slow-moving inventories by evaluating turn rates, inventory levels and other factors. Excess quantities are identified through evaluation of inventory aging, review of inventory turns and historical sales experiences. The Company provides lower of cost or market reserves for such identified excess and slow- moving inventories. The Company establishes a reserve for inventory shrinkage, if any, based on the historical results of physical inventory cycle counts. | ||||||||
Carrying Value, Recoverability and Impairment of Long-Lived Assets | ||||||||
The Company has adopted paragraph 360-10-35-17 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | ||||||||
The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. When long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. | ||||||||
The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. | ||||||||
The key assumptions used in management’s estimates of projected cash flow deal largely with forecasts of sales levels, gross margins, and operating costs of the manufacturing facilities. These forecasts are typically based on historical trends and take into account recent developments as well as management’s plans and intentions. Any difficulty in manufacturing or sourcing raw materials on a cost effective basis would significantly impact the projected future cash flows of the Company’s manufacturing facilities and potentially lead to an impairment charge for long-lived assets. Other factors, such as increased competition or a decrease in the desirability of the Company’s products, could lead to lower projected sales levels, which would adversely impact cash flows. A significant change in cash flows in the future could result in an impairment of long lived assets. | ||||||||
The impairment charges, if any, is included in operating expenses in the accompanying statements of operations. | ||||||||
Cash Equivalents | ||||||||
The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. | ||||||||
Short-term Investments | ||||||||
The Company’s short-term investments consist of certificates of deposit with original maturities of greater than three months. They are bought and held principally for the purpose of selling them in the near-term and are classified as trading securities. Trading securities are recorded at fair value on the consolidated balance sheets in current assets, with the change in fair value during the year recorded in earnings. | ||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||||
Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. The Company follows paragraph 310-10-50-9 of the FASB Accounting Standards Codification to estimate the allowance for doubtful accounts. The Company performs on-going credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by the review of their current credit information; and determines the allowance for doubtful accounts based on historical write-off experience, customer specific facts and general economic conditions that may affect a client’s ability to pay. | ||||||||
Pursuant to paragraph 310-10-50-2 of the FASB Accounting Standards Codification account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company has adopted paragraph 310-10-50-6 of the FASB Accounting Standards Codification and determine when receivables are past due or delinquent based on how recently payments have been received. | ||||||||
Outstanding account balances are reviewed individually for collectability. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Bad debt expense is included in general and administrative expenses, if any. | ||||||||
The Company has $68,101 and $40,000 allowance for doubtful accounts at September 30, 2014 and 2013, respectively. | ||||||||
The Company does not have any off-balance-sheet credit exposure to its customers at September 30, 2014 or 2013. | ||||||||
Inventory and Cost of Goods Sold | ||||||||
Inventory Valuation | ||||||||
The Company values inventory, consisting of finished goods, at the lower of cost or market. Cost is determined on the first-in and first- out (“FIFO”) method. The Company reduces inventory for the diminution of value, resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference between the cost of the inventory and its estimated market value. Factors utilized in the determination of estimated market value include (i) current sales data and historical return rates, (ii) estimates of future demand, and (iii) competitive pricing pressures. | ||||||||
Inventory Obsolescence and Markdowns | ||||||||
The Company evaluates its current level of inventory considering historical sales and other factors and, based on this evaluation, classify inventory markdowns in the income statement as a component of cost of goods sold pursuant to Paragraph 420-10-S99 of the FASB Accounting Standards Codification to adjust inventory to net realizable value. These markdowns are estimates, which could vary significantly from actual requirements if future economic conditions, customer demand or competition differ from expectations. | ||||||||
There were $148,967 in inventory obsolescence at September 30, 2014 and 2013. | ||||||||
Property and Equipment | ||||||||
Property and equipment is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation of property and equipment is computed by the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the respective assets as follows: | ||||||||
Estimated Useful Life | ||||||||
(Years) | ||||||||
Building | 30 | |||||||
Furniture and office equipment | 5 | |||||||
Computer software | 7 | |||||||
Machinery and equipment | 7 | |||||||
Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. | ||||||||
Leases | ||||||||
Lease agreements are evaluated to determine whether they are capital leases or operating leases in accordance with paragraph 840-10-25-1 of the FASB Accounting Standards Codification (“Paragraph 840-10-25-1”). Pursuant to Paragraph 840-10-25-1 A lessee and a lessor shall consider whether a lease meets any of the following four criteria as part of classifying the lease at its inception under the guidance in the Lessees Subsection of this Section (for the lessee) and the Lessors Subsection of this Section (for the lessor): a. Transfer of ownership. The lease transfers ownership of the property to the lessee by the end of the lease term. This criterion is met in situations in which the lease agreement provides for the transfer of title at or shortly after the end of the lease term in exchange for the payment of a nominal fee, for example, the minimum required by statutory regulation to transfer title. b. Bargain purchase option. The lease contains a bargain purchase option. c. Lease term. The lease term is equal to 75 percent or more of the estimated economic life of the leased property. d. Minimum lease payments. The present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. In accordance with paragraphs 840-10- 25-29 and 840-10-25-30, if at its inception a lease meets any of the four lease classification criteria in Paragraph 840-10-25-1, the lease shall be classified by the lessee as a capital lease; and if none of the four criteria in Paragraph 840-10-25-1 are met, the lease shall be classified by the lessee as an operating lease. Pursuant to Paragraph 840-10- 25-31 a lessee shall compute the present value of the minimum lease payments using the lessee's incremental borrowing rate unless both of the following conditions are met, in which circumstance the lessee shall use the implicit rate: a.) It is practicable for the lessee to learn the implicit rate computed by the lessor. b.) The implicit rate computed by the lessor is less than the lessee's incremental borrowing rate. Capital lease assets are depreciated on a straight line method, over the capital lease assets estimated useful lives consistent with the Company’s normal depreciation policy for tangible fixed assets. Interest charges are expensed over the period of the lease in relation to the carrying value of the capital lease obligation. | ||||||||
Operating leases primarily relate to the Company’s leases of office spaces. When the terms of an operating lease include tenant improvement allowances, periods of free rent, rent concessions, and/or rent escalation amounts, the Company establishes a deferred rent liability for the difference between the scheduled rent payment and the straight-line rent expense recognized, which is amortized over the underlying lease term on a straight-line basis as a reduction of rent expense. | ||||||||
The Company has adopted Subtopic 350-30 of the FASB Accounting Standards Codification for intangible assets other than goodwill. Under the requirements, the Company amortizes the acquisition costs of intangible assets other than goodwill on a straight-line basis over their estimated useful lives, the terms of the exclusive licenses and/or agreements, or the terms of legal lives of the intangible assets, whichever is shorter. Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts. | ||||||||
Related Parties | ||||||||
The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. | ||||||||
Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. | ||||||||
The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved b. description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. | ||||||||
Commitment and Contingencies | ||||||||
The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. | ||||||||
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. | ||||||||
Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. | ||||||||
Revenue Recognition | ||||||||
The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. | ||||||||
The Company derives its revenues from sales of its products, with revenues being generated upon the shipment of merchandise. Persuasive evidence of an arrangement is demonstrated via sales invoice or contract; the sales price to the customer is fixed upon acceptance of the signed purchase order or contract and there is no separate sales rebate, discount, or volume incentive. | ||||||||
Shipping and Handling Costs | ||||||||
The Company accounts for shipping and handling fees in accordance with paragraph 605-45-45-19 of the FASB Accounting Standards Codification. While amounts charged to customers for shipping products are included in revenues, the related costs are classified in cost of goods sold as incurred. | ||||||||
Income Tax Provision | ||||||||
The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Income and Comprehensive Income in the period that includes the enactment date. | ||||||||
The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty (50) percent likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. | ||||||||
The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying consolidated balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its consolidated balance sheets and provides valuation allowances as management deems necessary. | ||||||||
Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. | ||||||||
Uncertain Tax Positions | ||||||||
The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the fiscal year ended September 30, 2014 or 2013. | ||||||||
Net Income (Loss) per Common Share | ||||||||
Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants. | ||||||||
There were no potentially dilutive common shares outstanding for the fiscal year ended September 30, 2014 or 2013. | ||||||||
Foreign Currency Translation Gain and Comprehensive Income (Loss) | ||||||||
In countries in which the Company operates, and the functional currency is other than the U.S. dollar, assets and liabilities are translated using published exchange rates in effect at the consolidated balance sheet date. Revenues and expenses and cash flows are translated using an approximate weighted average exchange rate for the period. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the accompanying consolidated balance sheet. For the years ending September 30, 2014 and September 30, 2013, comprehensive income includes losses of $156,559 and $0, respectively, which were entirely from foreign currency translation. | ||||||||
Cash Flows Reporting | ||||||||
The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. | ||||||||
Subsequent Events | ||||||||
The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR. | ||||||||
Reclassifications | ||||||||
Certain reclassifications have been made to prior period amounts to conform to the current period presentation. | ||||||||
Recently Issued Accounting Pronouncements | ||||||||
Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists: An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. The amendments in this Update do not require new recurring disclosures. ASU Topic No. 2013 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | ||||||||
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)." ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition. | ||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is not permitted. . The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | ||||||||
In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation — Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) (ASU 2014-12). The guidance applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. For all entities, the amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The effective date is the same for both public business entities and all other entities. The Company is currently evaluating the impact of adopting ASU 2014-12 on the Company's results of operations or financial condition. | ||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern (ASU 2014-15). The guidance in ASU 2014-15 sets forth management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing financial statements for interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, as well as whether it is probable that management's plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | ||||||||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements. | ||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||
Fair Value Disclosures [Text Block] | NOTE 3 – FAIR VALUE MEASUREMENTS | |||||||||||||
The Company complies with the provisions of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”). Under ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. | ||||||||||||||
The following tables present information about the Company’s assets measured at fair value as of September 30, 2014 and September 30, 2013: | ||||||||||||||
Quoted Prices | Significant | |||||||||||||
in Active | Other | Significant | Balance | |||||||||||
Markets for | Observable | Unobservable | as of | |||||||||||
Identical Assets | Inputs | Inputs | September 30, | |||||||||||
(Level 1) | (Level 2) | (Level 3) | 2014 | |||||||||||
Assets | ||||||||||||||
Investment in certificates of deposit (included in short-term investments) | $ | 559,815 | $ | - | $ | - | $ | 559,815 | ||||||
$ | 559,815 | $ | - | $ | - | $ | 559,815 | |||||||
Quoted Prices | Significant | |||||||||||||
in Active | Other | Significant | Balance | |||||||||||
Markets for | Observable | Observable | as of | |||||||||||
Identical Assets | Inputs | Inputs | September 30, | |||||||||||
(Level 1) | (Level 2) | (Level 3) | 2013 | |||||||||||
Assets | ||||||||||||||
Investment in certificates of deposit (included in short-term investments) | $ | - | $ | - | $ | - | $ | - | ||||||
$ | - | $ | - | $ | - | $ | - | |||||||
TRADE_RECEIVABLES_NET
TRADE RECEIVABLES, NET | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4 – TRADE RECEIVABLES, NET | |||||||
Trade receivables, net consist of the following: | ||||||||
September 30, | September 30, | |||||||
2014 | 2013 | |||||||
Trade receivables | $ | 4,106,441 | $ | 681,264 | ||||
Allownce for doubful accounts | -68,101 | -40,000 | ||||||
$ | 4,038,340 | $ | 641,264 | |||||
Trade receivables include amounts due for shipped products and services rendered. | ||||||||
Allowance for doubtful accounts include estimated losses resulting from the inability of our customers to make required payments. | ||||||||
INVENTORY_NET
INVENTORY, NET | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory Disclosure [Text Block] | NOTE 5 – INVENTORY, NET | |||||||
Inventory, net of reserves, consist of the following: | ||||||||
September 30, | September 30, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 3,449,501 | $ | 307,815 | ||||
Work in progress | 1,254,013 | 500 | ||||||
Finished goods | 1,715,780 | - | ||||||
6,419,294 | 308,315 | |||||||
Less: Allowance for inventory obsolencence | -148,967 | $ | -148,967 | |||||
Inventory –net of allowance for inventory obsolescence | $ | 6,270,327 | $ | 159,348 | ||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6 – PROPERTY AND EQUIPMENT | |||||||
Property and equipment are summarized as follows: | ||||||||
September 30, | September 30, | |||||||
2014 | 2013 | |||||||
Land | 1,065,500 | $ | - | |||||
Building | 4,387,880 | - | ||||||
Furniture and office equipment | 316,715 | 83,687 | ||||||
Computer software | 46,619 | 4,631 | ||||||
Machinery and equipment | 2,234,423 | 78,392 | ||||||
8,051,137 | 166,710 | |||||||
Less: Acumulated depreciation | -652,041 | -157,387 | ||||||
Property and equipment, net | 7,399,096 | $ | 9,323 | |||||
The Company completed the annual impairment test of property and equipment and determined that there was no impairment as the fair value of property and equipment, substantially exceeded their carrying values at September 30, 2013. | ||||||||
PREPAID_AND_OTHER_CURRENT_ASSE
PREPAID AND OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2014 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid, and Other Current Assets [Text Block] | NOTE 7 – PREPAID AND OTHER CURRENT ASSETS |
On September 30, 2014 and 2013 the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $531, 262 and $432,131, respectively. | |
LONGTERM_LIABILITIES
LONG-TERM LIABILITIES | 12 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | NOTE 8 – LONG-TERM LIABILITIES |
Loan payable to bank | |
On October 31, 2013, the company acquired a loan from Sparkasse Bank of Germany in the amount of €3,000,000 ($4,006,500, based upon exchange rate on October 31, 2013) in order to fund the purchase of ROB Cemtrex GmbH. $2,799,411 of the proceeds went to direct purchase of ROB Cemtrex GmbH and $1,207,089 funded beginning operations. This loan carries interest of 4.95% per annum and is payable on October 30, 2021. | |
On October 31, 2013, the company acquired a loan from Sparkasse Bank of Germany in the amount of €1,000,000 ($1,335,500, based upon exchange rate on October 31, 2013) in order to further fund the operations of ROB Cemtrex GmbH. This loan carries interest of 4.00% per annum and is payable on October 30, 2015. In February of 2014 and in May of 2014 the Company increased this credit line by €500,000 at each instance to a total of €2,000,000. | |
On March 1, 2014 the Company completed the purchase of the building that ROB Cemtrex GmbH occupies in Neulingen, Germany. The purchase was fully financed through Sparkasse Bank of Germany for €4,000,000 ($5,500,400 based upon the exchange rate on March 1, 2014). This mortgage carries interest of 3.00% and is payable over 17 years. | |
On May 28, 2014 the Company financed an upgrade of the information technology infrastructure for ROB Cemtrex GmbH. The purchase was fully financed through Sparkasse Bank of Germany for €200,000 ($272,840 based upon the exchange rate on May 28, 2014). This loan carries interest of 4.50% and is payable over 4 years. | |
Notes payable to Shareholder | |
Please see Note 10 – Related Party Transactions for details on loans payable to Ducon Technologies, Inc.. | |
BUSINESS_COMBINATION
BUSINESS COMBINATION | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Business Combination Disclosure [Text Block] | NOTE 9 – BUSINESS COMBINATION | |||||||
On October 31, 2013, the Company completed the acquisition of the privately held ROB Group, a leader in electronics manufacturing solutions located in Neulingen, Germany. The ROB Group, founded in 1989, consisted of 4 distinct operating companies, forming a complete electronics design, manufacturing, assembly, and cabling solutions provider that serves the electronics and cabling needs of some of the largest companies in the world in the Medical, Automation, Industrial, and Renewable Energy industries. ROB Group also has a manufacturing facility in Sibiu, Romania. ROB Cemtrex GmbH now operates as a subsidiary of Cemtrex, Inc.. | ||||||||
The operating results of ROB Cemtrex GmbH from October 31, 2013 to September 30, 2014 are included in the accompanying Consolidated Statement of Operations. The Consolidated Balance Sheet as of September 30, 2014 reflects the acquisition of ROB Cemtrex GmbH, effective October 31, 2013. The acquisition date fair value of the total consideration transferred was $5.936 million, which consisted of the following: | ||||||||
Loan from bank | 3,133,286 | |||||||
Loan from related party | 2,803,012 | |||||||
Total Purchase Price | $ | 5,936,298 | ||||||
In accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"), the total purchase consideration is allocated to the net tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of October 31, 2013 (the acquisition date). The purchase price was allocated based on the information currently available, and may be adjusted after obtaining more information regarding, among other things, asset valuations, liabilities assumed, and revisions of preliminary estimates. | ||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: | ||||||||
Inventories | $ | 4,941,350 | ||||||
Property and Equipment | 981,593 | |||||||
Other long-term assets | 13,355 | |||||||
Net assets acquired | $ | 5,936,298 | ||||||
The following unaudited supplemental proforma information presents the financial results of ROB group of companies as if the acquisition of ROB Cemtrex GmbH occurred on October 1, 2012: | ||||||||
For the Year Ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Revenue | $ | 47,653,114 | $ | 36,250,576 | ||||
Net income (loss) | 2,668,886 | $ | -372,337 | |||||
Basic and diluted earnings (loss) per share | $ | 0.07 | $ | -0.01 | ||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 10 – RELATED PARTY TRANSACTIONS |
The Company had sales to Ducon Technologies, Inc., a company owned by Aron Govil, the former Chairman and currently the Executive Director of the Company, totaling $0 and $10,799,872 for the years ended September 30, 2014 and 2013, respectively. The accounts receivable from Ducon Technologies, Inc. totaled $0 at September 30, 2014 and $1,206,372 at September 30, 2013. | |
The Company has prepaid Ducon Technologies, Inc. a related party in the amount of $0 and $432,131 for supplies at September 30, 2014 and September 30, 2013. | |
The Company has Notes payable to Ducon Technologies Inc., totaling $1,869,791 and $1,107,484 at September 30, 2014 and September 30, 2013, respectively. These notes are unsecured and carry 5% interest per annum. | |
On September 8th, 2009, the Company issued 1,000,000 Series A Preferred Shares and 2,500,000 common shares to Aron Govil, the former Chairman of the Company, in conjunction with the termination of a convertible note in the amount of $1,300,000 that was convertible into 30,000,000 non-assessable shares of common stock of the Company at $0.001 (par value) per share. | |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders Equity Note Disclosure [Text Block] | NOTE 11 – STOCKHOLDERS’ EQUITY |
Series A Preferred Stock | |
The Company is authorized to issue 10,000,000 shares of Series A Preferred Stock, $0.001 par value. As of September 30, 2014 and September 30, 2013, there were 1,000,000 shares issued and outstanding, respectively. | |
Each issued and outstanding Series A Preferred Share shall be entitled to the number of votes equal to the result of: (i) the number of shares of common stock of the Company issued and outstanding at the time of such vote multiplied by 1.01; divided by (ii) the total number of Series A Preferred Shares issued and outstanding at the time of such vote, at each meeting of shareholders of the Company with respect to any and all matters presented to the shareholders of the Company for their action or consideration, including the election of directors. Holders of Series A Preferred Shares shall vote together with the holders of Common Shares as a single class. | |
During the year ending September 30, 2014 and 2013, the Company did not issue any Series A Preferred Stock. | |
Common Stock | |
The Company is authorized to issue 60,000,000 shares of common stock, $0.001 par value. As of September 30, 2014 and September 30, 2013, there were 40,599,129 shares issued and outstanding, respectively. | |
During the year ending September 30, 2014 and 2013, the Company did not issue any Common Stock. | |
During the year ending September 30, 2014 the company issued stock options for 600,000 shares to three key executives of ROB Cemtrex GmbH. These options have a call price of $0.30 per share, vest over four years, and expire after six years. | |
COMMITMENTS_AND_CONTIGENCIES
COMMITMENTS AND CONTIGENCIES | 12 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12 – COMMITMENTS AND CONTIGENCIES |
The Company leases its principal office at Farmingdale, New York, 4,000 square feet of office and warehouse/shop space in a single story commercial structure on a month to month lease from Ducon Technologies Inc., at a monthly rental of $4,000. | |
The Company’s subsidiary Griffin Filters LLC leases approx. 5,000 sq. ft. of office and warehouse space in Liverpool, New York from a third party in a five year lease at a monthly rent of $2,200 expiring on March 31, 2018. | |
The Company’s subsidiary ROB Cemtrex GmbH owns and has a 17 year 3.00% interest mortgage on their building in Neulingen, Germany. Monthly mortgage payments are €25,000 through March 2031. | |
INCOME_TAX_PROVISION
INCOME TAX PROVISION | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure [Text Block] | NOTE 13 – INCOME TAX PROVISION | |||||||
The Company accounts for income taxes under the provisions of FASB ASC 740, “Income Taxes”, formerly referenced as SFAS No.109, “Accounting for Income Taxes”. Under the provisions of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between their financial statement carrying values and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||
Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. In the event that the Company changes its determination as to the amount of deferred tax assets that can be realized, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. | ||||||||
The provision for income taxes is as follows: | ||||||||
September 30, 2014 | September 30, 2013 | |||||||
Current taxes payable | ||||||||
Federal | $ | 14,048.00 | $ | 6,300.00 | ||||
State | 13,825.00 | 6,200.00 | ||||||
Foreign | 34,159.00 | - | ||||||
Deferred tax asset: | - | - | ||||||
Deferred tax valuation allowance | - | - | ||||||
Total | $ | 62,032.00 | $ | 12,500.00 | ||||
Reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: | ||||||||
For the Fiscal Year | For the Fiscal Year | |||||||
Ended | Ended | |||||||
September 30, 2014 | September 30, 2013 | |||||||
U.S. statutory rate | 34 | % | 34 | % | ||||
State income taxes (net of federal benefit) | 9 | 7 | ||||||
Permanent differences | -37.4 | -21.8 | ||||||
Benefit of net operating loss carry-forward | 0 | -15.6 | ||||||
Effective rate | 5.6 | % | 3.6 | % | ||||
At September 30, 2014 and 2013, the Company has no net operating loss carryovers. | ||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 14 – SUBSEQUENT EVENTS |
The Company issued convertible note to KBM Worldwide Inc., an unrelated third party, in the amount of $204,000 on October 31, 2014. The nine (9) month maturity note carries an interest rate of 8% per annum, and can be converted into Company’s common stock at a price equaling 65% of the market price only after six months from the date of issuance at the holder’s option. | |
In November 2014, 50,000 shares of common stock were issued to one executive of ROB Cemtrex, GmbH in connection with options granted to three executives to purchase 600,000 shares at $0.30 per share vesting twenty-five percent (25%) per year on the anniversary of the date of grant. | |
BASIS_OF_PRESENTATION_AND_CRIT1
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation | |||||||
The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | ||||||||
Fiscal Period, Policy [Policy Text Block] | Fiscal Year-End | |||||||
The Company elected September 30 as its fiscal year-end date. | ||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions | |||||||
The preparation of financial statements in conformity with 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 disclosure of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s). | ||||||||
Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were: | ||||||||
i. | Allowance for doubtful accounts : Management’s estimate of the allowance for doubtful accounts is based on historical sales, historical loss levels, and an analysis of the collectability of individual accounts; and general economic conditions that may affect a client’s ability to pay. The Company evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole; | |||||||
ii. | Inventory Obsolescence and Markdowns : The Company’s estimate of potentially excess and slow-moving inventories is based on evaluation of inventory levels and aging, review of inventory turns and historical sales experiences. The Company’s estimate of reserve for inventory shrinkage is based on the historical results of physical inventory cycle counts; | |||||||
iii. | Fair value of long-lived assets : Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: | |||||||
i. | significant under-performance or losses of assets relative to expected historical or projected future operating results; | |||||||
ii. | significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; | |||||||
iii. | significant negative industry or economic trends; | |||||||
iv. | increased competitive pressures; | |||||||
v. | a significant decline in the Company’s stock price for a sustained period of time; and | |||||||
vi. | regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. | |||||||
iv. | Valuation allowance for deferred tax assets: Management assumes that the realization of the Company’s net deferred tax assets resulting from its net operating loss (“NOL”) carry–forwards for Federal income tax purposes that may be offset against future taxable income was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry- forwards are offset by a full valuation allowance. Management made this assumption based on (a) the Company has incurred recurring losses, (b) general economic conditions, and (c) its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors. | |||||||
These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. | ||||||||
Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. | ||||||||
Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. | ||||||||
Actual results could differ from those estimates. | ||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation | |||||||
The Company applies the guidance of Topic 810 “Consolidation” of the FASB Accounting Standards Codification to determine whether and how to consolidate another entity. Pursuant to ASC Paragraph 810-10-15-10 all majority-owned subsidiaries—all entities in which a parent has a controlling financial interest—shall be consolidated except (1) when control does not rest with the parent, the majority owner; (2) if the parent is a broker-dealer within the scope of Topic 940 and control is likely to be temporary; (3) consolidation by an investment company within the scope of Topic 946 of a non-investment-company investee. Pursuant to ASC Paragraph 810-10-15-8 the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree. The Company consolidates all less-than-majority-owned subsidiaries, if any, in which the parent’s power to control exists. | ||||||||
The Company's consolidated subsidiaries and/or entities are as follows: | ||||||||
Name of consolidated | State or other jurisdiction of | Date of incorporation or | Attributable | |||||
subsidiary or entity | incorporation or organization | formation (date of acquisition, if applicable) | interest | |||||
Griffin Filters, LLC | New York | September 6,2005 (April 30,2007) | 100 | % | ||||
ROB Cemtrex GmbH | Germany | August 15, 2013 (October 31, 2013) | 100 | % | ||||
Cemtrex Ltd | Hong Kong | 4-Sep-13 | 100 | % | ||||
The consolidated financial statements include all accounts of the Company and its wholly-owned subsidiary as of the reporting period end dates and for the reporting periods then ended. | ||||||||
All inter-company balances and transactions have been eliminated. | ||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments | |||||||
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: | ||||||||
Level 1 - Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. | ||||||||
Level 2 - Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | ||||||||
Level 3 - Pricing inputs that are generally observable inputs and not corroborated by market data. | ||||||||
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. | ||||||||
The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. | ||||||||
The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses and accounts payable, approximate their fair values because of the short maturity of these instruments. | ||||||||
Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. | ||||||||
Fair Value Non Financial Assets And Liabilities Measured On Recurring Basis [Policy Text Block] | Fair Value of Non-Financial Assets or Liabilities Measured on a Recurring Basis | |||||||
The Company’s non-financial assets include inventories. The Company identifies potentially excess and slow-moving inventories by evaluating turn rates, inventory levels and other factors. Excess quantities are identified through evaluation of inventory aging, review of inventory turns and historical sales experiences. The Company provides lower of cost or market reserves for such identified excess and slow- moving inventories. The Company establishes a reserve for inventory shrinkage, if any, based on the historical results of physical inventory cycle counts. | ||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Carrying Value, Recoverability and Impairment of Long-Lived Assets | |||||||
The Company has adopted paragraph 360-10-35-17 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | ||||||||
The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. When long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. | ||||||||
The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. | ||||||||
The key assumptions used in management’s estimates of projected cash flow deal largely with forecasts of sales levels, gross margins, and operating costs of the manufacturing facilities. These forecasts are typically based on historical trends and take into account recent developments as well as management’s plans and intentions. Any difficulty in manufacturing or sourcing raw materials on a cost effective basis would significantly impact the projected future cash flows of the Company’s manufacturing facilities and potentially lead to an impairment charge for long-lived assets. Other factors, such as increased competition or a decrease in the desirability of the Company’s products, could lead to lower projected sales levels, which would adversely impact cash flows. A significant change in cash flows in the future could result in an impairment of long lived assets. | ||||||||
The impairment charges, if any, is included in operating expenses in the accompanying statements of operations. | ||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents | |||||||
The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. | ||||||||
Investment, Policy [Policy Text Block] | Short-term Investments | |||||||
The Company’s short-term investments consist of certificates of deposit with original maturities of greater than three months. They are bought and held principally for the purpose of selling them in the near-term and are classified as trading securities. Trading securities are recorded at fair value on the consolidated balance sheets in current assets, with the change in fair value during the year recorded in earnings. | ||||||||
Trade and Other Accounts Receivable, Unbilled Receivables, Policy [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts | |||||||
Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. The Company follows paragraph 310-10-50-9 of the FASB Accounting Standards Codification to estimate the allowance for doubtful accounts. The Company performs on-going credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by the review of their current credit information; and determines the allowance for doubtful accounts based on historical write-off experience, customer specific facts and general economic conditions that may affect a client’s ability to pay. | ||||||||
Pursuant to paragraph 310-10-50-2 of the FASB Accounting Standards Codification account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company has adopted paragraph 310-10-50-6 of the FASB Accounting Standards Codification and determine when receivables are past due or delinquent based on how recently payments have been received. | ||||||||
Outstanding account balances are reviewed individually for collectability. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Bad debt expense is included in general and administrative expenses, if any. | ||||||||
The Company has $68,101 and $40,000 allowance for doubtful accounts at September 30, 2014 and 2013, respectively. | ||||||||
The Company does not have any off-balance-sheet credit exposure to its customers at September 30, 2014 or 2013. | ||||||||
Cost of Sales, Policy [Policy Text Block] | Inventory and Cost of Goods Sold | |||||||
Inventory Valuation | ||||||||
The Company values inventory, consisting of finished goods, at the lower of cost or market. Cost is determined on the first-in and first- out (“FIFO”) method. The Company reduces inventory for the diminution of value, resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference between the cost of the inventory and its estimated market value. Factors utilized in the determination of estimated market value include (i) current sales data and historical return rates, (ii) estimates of future demand, and (iii) competitive pricing pressures. | ||||||||
Inventory Obsolescence and Markdowns | ||||||||
The Company evaluates its current level of inventory considering historical sales and other factors and, based on this evaluation, classify inventory markdowns in the income statement as a component of cost of goods sold pursuant to Paragraph 420-10-S99 of the FASB Accounting Standards Codification to adjust inventory to net realizable value. These markdowns are estimates, which could vary significantly from actual requirements if future economic conditions, customer demand or competition differ from expectations. | ||||||||
There were $148,967 in inventory obsolescence at September 30, 2014 and 2013. | ||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment | |||||||
Property and equipment is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation of property and equipment is computed by the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the respective assets as follows: | ||||||||
Estimated Useful Life | ||||||||
(Years) | ||||||||
Building | 30 | |||||||
Furniture and office equipment | 5 | |||||||
Computer software | 7 | |||||||
Machinery and equipment | 7 | |||||||
Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. | ||||||||
Loans and Leases Receivable, Lease Financing, Policy [Policy Text Block] | Leases | |||||||
Lease agreements are evaluated to determine whether they are capital leases or operating leases in accordance with paragraph 840-10-25-1 of the FASB Accounting Standards Codification (“Paragraph 840-10-25-1”). Pursuant to Paragraph 840-10-25-1 A lessee and a lessor shall consider whether a lease meets any of the following four criteria as part of classifying the lease at its inception under the guidance in the Lessees Subsection of this Section (for the lessee) and the Lessors Subsection of this Section (for the lessor): a. Transfer of ownership. The lease transfers ownership of the property to the lessee by the end of the lease term. This criterion is met in situations in which the lease agreement provides for the transfer of title at or shortly after the end of the lease term in exchange for the payment of a nominal fee, for example, the minimum required by statutory regulation to transfer title. b. Bargain purchase option. The lease contains a bargain purchase option. c. Lease term. The lease term is equal to 75 percent or more of the estimated economic life of the leased property. d. Minimum lease payments. The present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. In accordance with paragraphs 840-10- 25-29 and 840-10-25-30, if at its inception a lease meets any of the four lease classification criteria in Paragraph 840-10-25-1, the lease shall be classified by the lessee as a capital lease; and if none of the four criteria in Paragraph 840-10-25-1 are met, the lease shall be classified by the lessee as an operating lease. Pursuant to Paragraph 840-10- 25-31 a lessee shall compute the present value of the minimum lease payments using the lessee's incremental borrowing rate unless both of the following conditions are met, in which circumstance the lessee shall use the implicit rate: a.) It is practicable for the lessee to learn the implicit rate computed by the lessor. b.) The implicit rate computed by the lessor is less than the lessee's incremental borrowing rate. Capital lease assets are depreciated on a straight line method, over the capital lease assets estimated useful lives consistent with the Company’s normal depreciation policy for tangible fixed assets. Interest charges are expensed over the period of the lease in relation to the carrying value of the capital lease obligation. | ||||||||
Operating leases primarily relate to the Company’s leases of office spaces. When the terms of an operating lease include tenant improvement allowances, periods of free rent, rent concessions, and/or rent escalation amounts, the Company establishes a deferred rent liability for the difference between the scheduled rent payment and the straight-line rent expense recognized, which is amortized over the underlying lease term on a straight-line basis as a reduction of rent expense. | ||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | The Company has adopted Subtopic 350-30 of the FASB Accounting Standards Codification for intangible assets other than goodwill. Under the requirements, the Company amortizes the acquisition costs of intangible assets other than goodwill on a straight-line basis over their estimated useful lives, the terms of the exclusive licenses and/or agreements, or the terms of legal lives of the intangible assets, whichever is shorter. Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts. | |||||||
Related Parties [Policy Text Block] | Related Parties | |||||||
The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. | ||||||||
Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. | ||||||||
The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved b. description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. | ||||||||
Commitments and Contingencies, Policy [Policy Text Block] | Commitment and Contingencies | |||||||
The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. | ||||||||
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. | ||||||||
Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. | ||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | |||||||
The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. | ||||||||
The Company derives its revenues from sales of its products, with revenues being generated upon the shipment of merchandise. Persuasive evidence of an arrangement is demonstrated via sales invoice or contract; the sales price to the customer is fixed upon acceptance of the signed purchase order or contract and there is no separate sales rebate, discount, or volume incentive. | ||||||||
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs | |||||||
The Company accounts for shipping and handling fees in accordance with paragraph 605-45-45-19 of the FASB Accounting Standards Codification. While amounts charged to customers for shipping products are included in revenues, the related costs are classified in cost of goods sold as incurred. | ||||||||
Income Tax, Policy [Policy Text Block] | Income Tax Provision | |||||||
The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Income and Comprehensive Income in the period that includes the enactment date. | ||||||||
The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty (50) percent likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. | ||||||||
The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying consolidated balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its consolidated balance sheets and provides valuation allowances as management deems necessary. | ||||||||
Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. | ||||||||
Income Tax Uncertainties, Policy [Policy Text Block] | Uncertain Tax Positions | |||||||
The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the fiscal year ended September 30, 2014 or 2013. | ||||||||
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Common Share | |||||||
Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants. | ||||||||
There were no potentially dilutive common shares outstanding for the fiscal year ended September 30, 2014 or 2013. | ||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation Gain and Comprehensive Income (Loss) | |||||||
In countries in which the Company operates, and the functional currency is other than the U.S. dollar, assets and liabilities are translated using published exchange rates in effect at the consolidated balance sheet date. Revenues and expenses and cash flows are translated using an approximate weighted average exchange rate for the period. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the accompanying consolidated balance sheet. For the years ending September 30, 2014 and September 30, 2013, comprehensive income includes losses of $156,559 and $0, respectively, which were entirely from foreign currency translation. | ||||||||
Cash Flows Reporting [Policy Text Block] | Cash Flows Reporting | |||||||
The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. | ||||||||
Subsequent Events, Policy [Policy Text Block] | Subsequent Events | |||||||
The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR. | ||||||||
Reclassification, Policy [Policy Text Block] | Reclassifications | |||||||
Certain reclassifications have been made to prior period amounts to conform to the current period presentation. | ||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements | |||||||
Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists: An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. The amendments in this Update do not require new recurring disclosures. ASU Topic No. 2013 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | ||||||||
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)." ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition. | ||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is not permitted. . The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | ||||||||
In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation — Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) (ASU 2014-12). The guidance applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. For all entities, the amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The effective date is the same for both public business entities and all other entities. The Company is currently evaluating the impact of adopting ASU 2014-12 on the Company's results of operations or financial condition. | ||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern (ASU 2014-15). The guidance in ASU 2014-15 sets forth management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing financial statements for interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, as well as whether it is probable that management's plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | ||||||||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements. | ||||||||
BASIS_OF_PRESENTATION_AND_CRIT2
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Schedule of Subsidiary of Limited Liability Company or Limited Partnership, Description [Table Text Block] | The Company's consolidated subsidiaries and/or entities are as follows: | |||||||
Name of consolidated | State or other jurisdiction of | Date of incorporation or | Attributable | |||||
subsidiary or entity | incorporation or organization | formation (date of acquisition, if applicable) | interest | |||||
Griffin Filters, LLC | New York | September 6,2005 (April 30,2007) | 100 | % | ||||
ROB Cemtrex GmbH | Germany | August 15, 2013 (October 31, 2013) | 100 | % | ||||
Cemtrex Ltd | Hong Kong | 4-Sep-13 | 100 | % | ||||
Schedule Of Property Plant And Equipment Estimated Useful Life [Table Text Block] | Property and equipment is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation of property and equipment is computed by the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the respective assets as follows: | |||||||
Estimated Useful Life | ||||||||
(Years) | ||||||||
Building | 30 | |||||||
Furniture and office equipment | 5 | |||||||
Computer software | 7 | |||||||
Machinery and equipment | 7 | |||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following tables present information about the Company’s assets measured at fair value as of September 30, 2014 and September 30, 2013: | |||||||||||||
Quoted Prices | Significant | |||||||||||||
in Active | Other | Significant | Balance | |||||||||||
Markets for | Observable | Unobservable | as of | |||||||||||
Identical Assets | Inputs | Inputs | September 30, | |||||||||||
(Level 1) | (Level 2) | (Level 3) | 2014 | |||||||||||
Assets | ||||||||||||||
Investment in certificates of deposit (included in short-term investments) | $ | 559,815 | $ | - | $ | - | $ | 559,815 | ||||||
$ | 559,815 | $ | - | $ | - | $ | 559,815 | |||||||
Quoted Prices | Significant | |||||||||||||
in Active | Other | Significant | Balance | |||||||||||
Markets for | Observable | Observable | as of | |||||||||||
Identical Assets | Inputs | Inputs | September 30, | |||||||||||
(Level 1) | (Level 2) | (Level 3) | 2013 | |||||||||||
Assets | ||||||||||||||
Investment in certificates of deposit (included in short-term investments) | $ | - | $ | - | $ | - | $ | - | ||||||
$ | - | $ | - | $ | - | $ | - | |||||||
TRADE_RECEIVABLES_NET_Tables
TRADE RECEIVABLES, NET (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Trade receivables, net consist of the following: | |||||||
September 30, | September 30, | |||||||
2014 | 2013 | |||||||
Trade receivables | $ | 4,106,441 | $ | 681,264 | ||||
Allownce for doubful accounts | -68,101 | -40,000 | ||||||
$ | 4,038,340 | $ | 641,264 | |||||
INVENTORY_NET_Tables
INVENTORY, NET (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventory, net of reserves, consist of the following: | |||||||
September 30, | September 30, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 3,449,501 | $ | 307,815 | ||||
Work in progress | 1,254,013 | 500 | ||||||
Finished goods | 1,715,780 | - | ||||||
6,419,294 | 308,315 | |||||||
Less: Allowance for inventory obsolencence | -148,967 | $ | -148,967 | |||||
Inventory –net of allowance for inventory obsolescence | $ | 6,270,327 | $ | 159,348 | ||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | Property and equipment are summarized as follows: | |||||||
September 30, | September 30, | |||||||
2014 | 2013 | |||||||
Land | 1,065,500 | $ | - | |||||
Building | 4,387,880 | - | ||||||
Furniture and office equipment | 316,715 | 83,687 | ||||||
Computer software | 46,619 | 4,631 | ||||||
Machinery and equipment | 2,234,423 | 78,392 | ||||||
8,051,137 | 166,710 | |||||||
Less: Acumulated depreciation | -652,041 | -157,387 | ||||||
Property and equipment, net | 7,399,096 | $ | 9,323 | |||||
BUSINESS_COMBINATION_Tables
BUSINESS COMBINATION (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The acquisition date fair value of the total consideration transferred was $5.936 million, which consisted of the following: | |||||||
Loan from bank | 3,133,286 | |||||||
Loan from related party | 2,803,012 | |||||||
Total Purchase Price | $ | 5,936,298 | ||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: | |||||||
Inventories | $ | 4,941,350 | ||||||
Property and Equipment | 981,593 | |||||||
Other long-term assets | 13,355 | |||||||
Net assets acquired | $ | 5,936,298 | ||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited supplemental proforma information presents the financial results of ROB group of companies as if the acquisition of ROB Cemtrex GmbH occurred on October 1, 2012: | |||||||
For the Year Ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Revenue | $ | 47,653,114 | $ | 36,250,576 | ||||
Net income (loss) | 2,668,886 | $ | -372,337 | |||||
Basic and diluted earnings (loss) per share | $ | 0.07 | $ | -0.01 | ||||
INCOME_TAX_PROVISION_Tables
INCOME TAX PROVISION (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes is as follows: | |||||||
September 30, 2014 | September 30, 2013 | |||||||
Current taxes payable | ||||||||
Federal | $ | 14,048.00 | $ | 6,300.00 | ||||
State | 13,825.00 | 6,200.00 | ||||||
Foreign | 34,159.00 | - | ||||||
Deferred tax asset: | - | - | ||||||
Deferred tax valuation allowance | - | - | ||||||
Total | $ | 62,032.00 | $ | 12,500.00 | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: | |||||||
For the Fiscal Year | For the Fiscal Year | |||||||
Ended | Ended | |||||||
September 30, 2014 | September 30, 2013 | |||||||
U.S. statutory rate | 34 | % | 34 | % | ||||
State income taxes (net of federal benefit) | 9 | 7 | ||||||
Permanent differences | -37.4 | -21.8 | ||||||
Benefit of net operating loss carry-forward | 0 | -15.6 | ||||||
Effective rate | 5.6 | % | 3.6 | % | ||||
ORGANIZATION_AND_PLAN_OF_OPERA1
ORGANIZATION AND PLAN OF OPERATIONS (Details Textual) (Cemtrex Inc [Member]) | 12 Months Ended |
Sep. 30, 2014 | |
Cemtrex Inc [Member] | |
Organization and Operations [Line Items] | |
Entity Incorporation, Date Of Incorporation | 27-Apr-98 |
Business Acquisition, Name of Acquired Entity | 16-Dec-04 |
Date of acquisition | 31-Oct-13 |
BASIS_OF_PRESENTATION_AND_CRIT3
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Details) | 12 Months Ended |
Sep. 30, 2014 | |
Griffin Filters [Member] | |
Basis Of Presentation And Critical Accounting Policies [Line Items] | |
Name of consolidated subsidiary or entity | Griffin Filters, LLC |
Entity Incorporation, State Country Name | New York |
Date of incorporation or formation | 6-Sep-05 |
Date of acquisition | 30-Apr-07 |
Attributable interest | 100.00% |
ROB Cemtrex GmbH [Member] | |
Basis Of Presentation And Critical Accounting Policies [Line Items] | |
Name of consolidated subsidiary or entity | ROB Cemtrex GmbH |
Entity Incorporation, State Country Name | Germany |
Date of incorporation or formation | 15-Aug-13 |
Date of acquisition | 31-Oct-13 |
Attributable interest | 100.00% |
Cemtrex Ltd [Member] | |
Basis Of Presentation And Critical Accounting Policies [Line Items] | |
Name of consolidated subsidiary or entity | Cemtrex Ltd |
Entity Incorporation, State Country Name | Hong Kong |
Date of incorporation or formation | 4-Sep-13 |
Attributable interest | 100.00% |
BASIS_OF_PRESENTATION_AND_CRIT4
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Sep. 30, 2014 | |
Building [Member] | |
Basis Of Presentation And Critical Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Furniture and office equipment [Member] | |
Basis Of Presentation And Critical Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer software [Member] | |
Basis Of Presentation And Critical Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Machinery and Equipment [Member] | |
Basis Of Presentation And Critical Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
BASIS_OF_PRESENTATION_AND_CRIT5
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $68,101 | $40,000 |
Inventory Write-down | 148,967 | 148,967 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $156,559 | $0 |
Accounting Standards Update 2014-08 [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)." ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition. | |
Accounting Standards Update 2014-09 [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is not permitted. . The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | |
Accounting Standards Update 2014-12 [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) (ASU 2014-12). The guidance applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. For all entities, the amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The effective date is the same for both public business entities and all other entities. The Company is currently evaluating the impact of adopting ASU 2014-12 on the Company's results of operations or financial condition. | |
Accounting Standards Update 2014-15 [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern (ASU 2014-15). The guidance in ASU 2014-15 sets forth management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing financial statements for interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, as well as whether it is probable that management's plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | $559,815 | $0 |
Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 559,815 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 559,815 | 0 |
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 559,815 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | $0 | $0 |
TRADE_RECEIVABLES_NET_Details
TRADE RECEIVABLES, NET (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $4,106,441 | $681,264 |
Allownce for doubful accounts | -68,101 | -40,000 |
Accounts Receivable, Net, Total | $4,038,340 | $641,264 |
INVENTORY_NET_Details
INVENTORY, NET (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Inventory [Line Items] | ||
Raw materials | $3,449,501 | $307,815 |
Work in progress | 1,254,013 | 500 |
Finished goods | 1,715,780 | 0 |
Inventory, Gross, Total | 6,419,294 | 308,315 |
Less: Allowance for inventory obsolencence | -148,967 | -148,967 |
Inventory -net of allowance for inventory obsolescence | $6,270,327 | $159,348 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Line Items] | ||
Land | $1,065,500 | $0 |
Building | 4,387,880 | 0 |
Furniture and office equipment | 316,715 | 83,687 |
Computer software | 46,619 | 4,631 |
Machinery and equipment | 2,234,423 | 78,392 |
Property, Plant and Equipment, Gross, Total | 8,051,137 | 166,710 |
Less: Acumulated depreciation | -652,041 | -157,387 |
Property and equipment, net | $7,399,096 | $9,323 |
PREPAID_AND_OTHER_CURRENT_ASSE1
PREPAID AND OTHER CURRENT ASSETS (Details Textual) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Prepaid And Other Current Assets [Line Items] | ||
Prepaid Expense and Other Assets, Current | $531,262 | $432,131 |
LONGTERM_LIABILITIES_Details_T
LONG-TERM LIABILITIES (Details Textual) | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | 28-May-14 | 28-May-14 |
USD ($) | USD ($) | Loan payable to bank One [Member] | Loan payable to bank One [Member] | Loan payable to bank One [Member] | Loan payable to bank One [Member] | Loan payable to bank Two [Member] | Loan payable to bank Two [Member] | Loan payable to bank Two [Member] | Loan Payable To Bank Three [Member] | Loan Payable To Bank Three [Member] | Loan Payable To Bank Four [Member] | Loan Payable To Bank Four [Member] | |
USD ($) | EUR (€) | ROB Cemtrex GmbH Acquisition [Member] | ROB Cemtrex GmbH Funded Operations [Member] | USD ($) | EUR (€) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | |||
USD ($) | USD ($) | ||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Loans Payable to Bank, Noncurrent | $6,549,139 | $0 | $4,006,500 | € 3,000,000 | $2,799,411 | $1,207,089 | $1,335,500 | € 1,000,000 | $5,500,400 | € 4,000,000 | $272,840 | € 200,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.95% | 4.95% | 4.00% | 4.00% | 3.00% | 3.00% | 4.50% | 4.50% | |||||
Debt Instrument, Maturity Date | 30-Oct-21 | 30-Oct-21 | 30-Oct-15 | 30-Oct-15 | 28-May-14 | 28-May-14 | |||||||
Debt Instrument, Term | 17 years | 17 years | 4 years | 4 years | |||||||||
Increased Line Of Credit Facility At Each Instances | 500,000 | ||||||||||||
Line of Credit Facility, Increase (Decrease), Net | € 2,000,000 |
BUSINESS_COMBINATION_Details
BUSINESS COMBINATION (Details) (USD $) | 12 Months Ended |
Sep. 30, 2014 | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | $5,936,298 |
Loan From Bank [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | 3,133,286 |
Loan From Related Party [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | $2,803,012 |
BUSINESS_COMBINATION_Details_1
BUSINESS COMBINATION (Details 1) (ROB Cemtrex GmbH [Member], USD $) | Sep. 30, 2014 |
ROB Cemtrex GmbH [Member] | |
Business Acquisition [Line Items] | |
Inventories | $4,941,350 |
Property and Equipment | 981,593 |
Other long-term assets | 13,355 |
Net assets acquired | $5,936,298 |
BUSINESS_COMBINATION_Details_2
BUSINESS COMBINATION (Details 2) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Business Acquisition [Line Items] | ||
Revenue | $47,653,114 | $36,250,576 |
Net income (loss) | $2,668,886 | ($372,337) |
Basic and diluted earnings (loss) per share | $0.07 | ($0.01) |
BUSINESS_COMBINATION_Details_T
BUSINESS COMBINATION (Details Textual) (USD $) | 12 Months Ended |
Sep. 30, 2014 | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | $5,936,298 |
ROB Cemtrex GmbH [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | $5,936,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2009 | Sep. 30, 2014 | Sep. 30, 2013 | |
Related Party Transaction [Line Items] | |||
Due from Related Parties, Current | $0 | $1,206,372 | |
Due from Related Parties, Noncurrent | 0 | 354,150 | |
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | |
Common Stock [Member] | |||
Related Party Transaction [Line Items] | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,500,000 | ||
Debt Conversion, Converted Instrument, Shares Issued | 30,000,000 | ||
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | $0.00 |
Series A Preferred Stock [Member] | |||
Related Party Transaction [Line Items] | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,000,000 | ||
Unsecured Notes Payable [Member] | |||
Related Party Transaction [Line Items] | |||
Debt Conversion, Original Debt, Amount | 1,300,000 | ||
Unsecured Notes Payable [Member] | Board of Directors Chairman [Member] | |||
Related Party Transaction [Line Items] | |||
Due from Related Parties, Noncurrent | 1,869,791 | 1,107,484 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Ducon Technologies, Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue, Net | 0 | 10,799,872 | |
Due from Related Parties, Current | 0 | 1,206,372 | |
Due from Related Parties, Noncurrent | $0 | $432,131 |
STOCKHOLDERS_EQUITY_Details_Te
STOCKHOLDERS' EQUITY (Details Textual) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2009 | |
Schedule of Equity Method Investments [Line Items] | |||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | |
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 | |
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 | |
Preferred Stock, Voting Rights | Each issued and outstanding Series A Preferred Share shall be entitled to the number of votes equal to the result of: (i) the number of shares of common stock of the Company issued and outstanding at the time of such vote multiplied by 1.01; divided by (ii) the total number of Series A Preferred Shares issued and outstanding at the time of such vote, at each meeting of shareholders of the Company with respect to any and all matters presented to the shareholders of the Company for their action or consideration, including the election of directors. Holders of Series A Preferred Shares shall vote together with the holders of Common Shares as a single class | ||
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 | |
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | |
Common Stock, Shares, Issued | 40,599,129 | 40,599,129 | |
Common Stock, Shares, Outstanding | 40,599,129 | 40,599,129 | |
ROB Cemtrex GmbH [Member] | Executive Officer [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 600,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $0.30 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 6 years | ||
Common Stock [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 | |
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | $0.00 |
Common Stock, Shares, Issued | 40,599,129 | 40,599,129 | |
Common Stock, Shares, Outstanding | 40,599,129 | 40,599,129 | |
Series A Preferred Stock [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | |
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 | |
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 |
COMMITMENTS_AND_CONTIGENCIES_D
COMMITMENTS AND CONTIGENCIES (Details Textual) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | Griffin Filters [Member] | ROB Cemtrex GmbH [Member] | |
sqft | USD ($) | EUR (€) | |
sqft | |||
Commitments And Contingencies Disclosure [Line Item] | |||
Area of Land | 4,000 | 5,000 | |
Operating Leases, Rent Expense | $4,000 | $2,200 | |
Lease Term | 5 years | 17 years | |
Lease Expiration Date | 31-Mar-18 | ||
Mortgage Loans on Real Estate, Interest Rate | 3.00% | ||
Mortgage Loans on Real Estate Periodic Payments | € 25,000 |
INCOME_TAX_PROVISION_Details
INCOME TAX PROVISION (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Current taxes payable | ||
Federal | $14,048 | $6,300 |
State | 13,825 | 6,200 |
Foreign | 34,159 | 0 |
Deferred tax asset: | 0 | 0 |
Deferred tax valuation allowance | 0 | 0 |
Total | $60,962 | $12,500 |
INCOME_TAX_PROVISION_Details_1
INCOME TAX PROVISION (Details 1) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Line Items] | ||
U.S. statutory rate | 34.00% | 34.00% |
State income taxes (net of federal benefit) | 9.00% | 7.00% |
Permanent differences | -37.40% | -21.80% |
Benefit of net operating loss carry-forward | 0.00% | -15.60% |
Effective rate | 5.60% | 3.60% |
INCOME_TAX_PROVISION_Details_T
INCOME TAX PROVISION (Details Textual) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Line Items] | ||
Operating Loss Carryforwards | $0 | $0 |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (Subsequent Event [Member], USD $) | 1 Months Ended | |
Nov. 30, 2014 | Oct. 31, 2014 | |
One Executive [Member] | ||
Subsequent Event [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 50,000 | |
Three Executive [Member] | ||
Subsequent Event [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 600,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 0.3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |
KBM Worldwide Inc [Member] | ||
Subsequent Event [Line Items] | ||
Debt Instrument, Face Amount | $204,000 | |
Debt Instrument, Issuance Date | 31-Oct-14 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |
Debt Conversion, Description | converted into Companys common stock at a price equaling 65%of the market price only after six months from the date of issuance at the holders option |