Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2019 | Aug. 16, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | CEMTREX INC | |
Entity Central Index Key | 0001435064 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,367,109 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2019 | Sep. 30, 2018 |
Current assets | ||
Cash and equivalents | $ 1,572,825 | $ 973,772 |
Short-term investments | 13,692 | |
Restricted Cash | 873,293 | 1,342,163 |
Accounts receivable, net | 16,127,399 | 13,945,655 |
Trade receivables - related party | 266,124 | 165,220 |
Inventory, net | 15,731,128 | 11,354,458 |
Prepaid expenses and other current assets | 4,480,826 | 4,132,996 |
Total current assets | 39,065,287 | 31,914,264 |
Property and equipment, net | 24,408,648 | 27,300,654 |
Goodwill | 5,303,743 | 3,322,818 |
Investment in Vicon | 1,699,271 | |
Other assets | 4,584,547 | 3,093,607 |
Total Assets | 73,362,225 | 67,330,614 |
Current liabilities | ||
Accounts payable | 9,887,828 | 7,068,005 |
Accounts payable to related party | 155,600 | |
Short-term liabilities | 14,008,278 | 10,913,703 |
Deposits from customers | 60,009 | 50,619 |
Accrued expenses | 4,313,371 | 2,333,938 |
Deferred revenue | 1,424,832 | 970,590 |
Accrued income taxes | 593,097 | 565,513 |
Total current liabilities | 30,443,015 | 21,902,368 |
Long-term liabilities | ||
Loans payable to bank, net of current portion | 3,165,954 | 4,206,468 |
Long-term capital lease, net of current portion | 25,269 | 44,081 |
Notes payable, net of current portion | 2,591,616 | 276,639 |
Mortgage payable, net of current portion | 3,266,859 | 3,568,545 |
Other long-term liabilities | 1,211,907 | |
Deferred tax liabilities | 1,194,272 | 2,051,847 |
Deferred Revenue - long-term | 489,062 | |
Total long-term liabilities | 11,944,939 | 10,147,580 |
Total liabilities | 42,387,954 | 32,049,948 |
Commitments and contingencies | ||
Shareholders' equity | ||
Common stock, $0.001 par value, 20,000,000 shares authorized, 2,594,239 shares issued and outstanding at June 30, 2019 and 1,621,719 shares issued and outstanding at September 30, 2018 | 2,594 | 1,622 |
Additional paid-in capital | 36,897,611 | 31,496,671 |
Retained earnings | (3,788,526) | 4,262,756 |
Accumulated other comprehensive income/(loss) | (1,681,985) | (483,297) |
Total shareholders' equity | 31,432,805 | 35,280,666 |
Non-controlling interest of Vicon | (458,534) | |
Total liabilities, mezzanie equity and shareholders' equity | 73,362,225 | 67,330,614 |
Series 1 Preferred Stock [Member] | ||
Shareholders' equity | ||
Preferred stock, value | 2,111 | 1,914 |
Series A Preferred Stock [Member] | ||
Shareholders' equity | ||
Preferred stock, value | 1,000 | 1,000 |
Total shareholders' equity | $ 1,000 | $ 1,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Sep. 30, 2018 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 3,110,718 | 2,914,168 |
Preferred stock, shares outstanding | 3,110,718 | 2,914,168 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 2,594,239 | 1,621,719 |
Common stock, shares outstanding | 2,594,239 | 1,621,719 |
Series 1 Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 2,110,718 | 1,914,168 |
Preferred stock, shares outstanding | 2,110,718 | 1,914,168 |
Preferred stock, liquidation value | $ 10 | $ 10 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Total revenues | $ 22,452,050 | $ 19,164,314 | $ 63,344,091 | $ 71,959,510 |
Cost of revenues | ||||
Total cost of revenues | 13,880,474 | 11,900,899 | 38,328,001 | 46,664,273 |
Gross profit | 8,571,576 | 7,263,415 | 25,016,090 | 25,295,237 |
Operating expenses | ||||
General and administrative | 8,749,545 | 6,248,113 | 28,941,719 | 23,041,623 |
Research and development | 285,853 | 2,246,085 | 1,136,981 | 2,453,183 |
Total operating expenses | 9,035,398 | 8,494,198 | 30,078,700 | 25,494,806 |
Operating income/(loss) | (463,822) | (1,230,783) | (5,062,610) | (199,569) |
Other income (expense) | ||||
Other Income (expense) | 225,964 | (197,880) | 342,891 | 600,833 |
Interest Expense | (2,387,408) | (375,543) | (3,185,942) | (948,371) |
Total other income (expense) | (2,161,444) | (573,423) | (2,843,051) | (347,538) |
Net income (loss) before income taxes and equity interest | (2,625,266) | (1,804,206) | (7,905,661) | (547,107) |
Income tax (expense)/benefit | 736,310 | (182) | 1,843,157 | (101,819) |
Earnings/(loss) in equity interests | (778,823) | (778,823) | ||
Net income (loss) before non-controlling interest | (1,888,956) | (2,583,211) | (6,405,280) | (1,427,749) |
Less net income/(loss) noncontrolling interest of Vicon | 36,662 | (319,493) | ||
Net income (loss) | (1,925,618) | (2,583,211) | (6,085,787) | (1,427,749) |
Preferred dividends paid | 1,007,720 | 915,080 | 1,965,500 | 915,080 |
Net income/(loss) available to common shareholders | (2,933,338) | (3,498,291) | (8,051,287) | (2,342,829) |
Other comprehensive income/(loss) | ||||
Foreign currency translation gain/(loss) | (169,928) | (622,068) | (1,198,688) | (848,792) |
Comprehensive income/(loss) available to common shareholders | $ (3,103,266) | $ (4,120,359) | $ (9,249,975) | $ (3,191,621) |
Income/(loss) Per Common Share-Basic | $ (1.59) | $ (2.41) | $ (3.86) | $ (1.78) |
Income/(loss) Per Common Share-Diluted | $ (1.59) | $ (2.41) | $ (3.86) | $ (1.78) |
Weighted Average Number of Common Shares-Basic | 1,844,895 | 1,449,517 | 2,087,195 | 1,317,793 |
Weighted Average Number of Common Shares-Diluted | 1,844,895 | 1,449,517 | 2,087,195 | 1,317,793 |
Advanced Technologies [Member] | ||||
Revenues | ||||
Total revenues | $ 6,528,484 | $ 300,338 | $ 13,924,097 | $ 931,009 |
Cost of revenues | ||||
Total cost of revenues | 4,000,146 | 236,799 | 8,092,284 | 385,911 |
Electronics Manufacturing [Member] | ||||
Revenues | ||||
Total revenues | 11,003,706 | 11,216,531 | 33,130,143 | 41,874,472 |
Cost of revenues | ||||
Total cost of revenues | 6,533,490 | 6,522,074 | 19,550,338 | 25,935,969 |
Industrial Technology [Member] | ||||
Revenues | ||||
Total revenues | 4,919,860 | 7,647,445 | 16,289,851 | 29,154,029 |
Cost of revenues | ||||
Total cost of revenues | $ 3,346,838 | $ 5,142,026 | $ 10,685,379 | $ 20,342,393 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Series 1 Preferred Stock [Member] | Series A Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-Controlling Interest of Vicon [Member] | Total |
Balance at Sep. 30, 2017 | $ 1,823 | $ 1,000 | $ 1,301 | $ 24,703,428 | $ 14,418,245 | $ (133,492) | $ 38,992,305 | |
Balance, shares at Sep. 30, 2017 | 1,822,660 | 1,000,000 | 1,300,555 | |||||
Foreign currency translations | 631,045 | 631,045 | ||||||
Stock issued for convertible debt | $ 12 | 219,988 | 220,000 | |||||
Stock issued for convertible debt, shares | 12,353 | |||||||
Stock issued for interest on convertible debt | $ 6 | 109,138 | 109,144 | |||||
Stock issued for interest on convertible debt, shares | 6,283 | |||||||
Net income (loss) | 731,991 | 731,991 | ||||||
Balance at Dec. 31, 2017 | $ 1,823 | $ 1,000 | $ 1,319 | 25,032,554 | 15,150,236 | 497,553 | 40,684,485 | |
Balance, shares at Dec. 31, 2017 | 1,822,660 | 1,000,000 | 1,319,191 | |||||
Balance at Sep. 30, 2017 | $ 1,823 | $ 1,000 | $ 1,301 | 24,703,428 | 14,418,245 | (133,492) | 38,992,305 | |
Balance, shares at Sep. 30, 2017 | 1,822,660 | 1,000,000 | 1,300,555 | |||||
Foreign currency translations | (848,792) | |||||||
Net income (loss) | (1,427,749) | |||||||
Balance at Jun. 30, 2018 | $ 1,914 | $ 1,000 | $ 1,460 | 29,086,312 | 12,075,416 | (982,284) | 40,183,818 | |
Balance, shares at Jun. 30, 2018 | 1,914,168 | 1,000,000 | 1,459,515 | |||||
Balance at Dec. 31, 2017 | $ 1,823 | $ 1,000 | $ 1,319 | 25,032,554 | 15,150,236 | 497,553 | 40,684,485 | |
Balance, shares at Dec. 31, 2017 | 1,822,660 | 1,000,000 | 1,319,191 | |||||
Foreign currency translations | (857,769) | (857,769) | ||||||
Stock issued for investment in Vicon | $ 127 | 2,913,803 | 2,913,930 | |||||
Stock issued for investment in Vicon, shares | 126,579 | |||||||
Net income (loss) | 423,471 | 423,471 | ||||||
Balance at Mar. 31, 2018 | $ 1,823 | $ 1,000 | $ 1,446 | 27,946,357 | 15,573,707 | (360,216) | 43,164,117 | |
Balance, shares at Mar. 31, 2018 | 1,822,660 | 1,000,000 | 1,445,770 | |||||
Foreign currency translations | (622,068) | (622,068) | ||||||
Stock issued for investment in Vicon | $ 1,013 | 2,912,917 | 2,913,930 | |||||
Stock issued for investment in Vicon, shares | 1,012,625 | |||||||
Stock issued to pay notes payable | $ 14 | 224,966 | 224,980 | |||||
Stock issued to pay notes payable, shares | 13,745 | |||||||
Dividends paid in Series 1 preferred shares | $ 91 | 914,989 | (915,080) | |||||
Dividends paid in Series 1 preferred shares, shares | 91,508 | |||||||
Net income (loss) | (2,583,211) | (2,583,211) | ||||||
Balance at Jun. 30, 2018 | $ 1,914 | $ 1,000 | $ 1,460 | 29,086,312 | 12,075,416 | (982,284) | 40,183,818 | |
Balance, shares at Jun. 30, 2018 | 1,914,168 | 1,000,000 | 1,459,515 | |||||
Balance at Sep. 30, 2018 | $ 1,914 | $ 1,000 | $ 1,622 | 31,496,671 | 4,262,756 | (483,297) | 35,280,666 | |
Balance, shares at Sep. 30, 2018 | 1,914,168 | 1,000,000 | 1,621,719 | |||||
Foreign currency translations | (857,552) | (857,552) | ||||||
Share-based compensation | 36,108 | 36,108 | ||||||
Stock issued in Subscription Rights Offering | $ 25 | 138,669 | 138,694 | |||||
Stock issued in Subscription Rights Offering, shares | 25,126 | |||||||
Stock issued to pay notes payable | $ 26 | 224,974 | 225,000 | |||||
Stock issued to pay notes payable, shares | 26,342 | |||||||
Dividends paid in Series 1 preferred shares | $ 96 | 957,684 | (957,780) | |||||
Dividends paid in Series 1 preferred shares, shares | 95,778 | |||||||
Net income (loss) | (2,176,298) | (2,176,298) | ||||||
Balance at Dec. 31, 2018 | $ 2,010 | $ 1,000 | $ 1,673 | 32,854,106 | 1,128,678 | (1,340,849) | 32,646,618 | |
Balance, shares at Dec. 31, 2018 | 2,009,946 | 1,000,000 | 1,673,187 | |||||
Balance at Sep. 30, 2018 | $ 1,914 | $ 1,000 | $ 1,622 | 31,496,671 | 4,262,756 | (483,297) | 35,280,666 | |
Balance, shares at Sep. 30, 2018 | 1,914,168 | 1,000,000 | 1,621,719 | |||||
Foreign currency translations | (1,198,688) | |||||||
Net income (loss) | (6,085,787) | |||||||
Balance at Jun. 30, 2019 | $ 2,111 | $ 1,000 | $ 2,594 | 36,897,611 | (3,788,526) | (1,681,985) | (458,534) | 31,432,805 |
Balance, shares at Jun. 30, 2019 | 2,110,718 | 1,000,000 | 2,594,239 | |||||
Balance at Dec. 31, 2018 | $ 2,010 | $ 1,000 | $ 1,673 | 32,854,106 | 1,128,678 | (1,340,849) | 32,646,618 | |
Balance, shares at Dec. 31, 2018 | 2,009,946 | 1,000,000 | 1,673,187 | |||||
Foreign currency translations | (171,208) | (171,208) | ||||||
Share-based compensation | 36,108 | 36,108 | ||||||
Stock issued to pay notes payable | $ 118 | 713,772 | 713,890 | |||||
Stock issued to pay notes payable, shares | 117,774 | |||||||
Shares issued in trust for ATM Offering | $ 27 | (27) | ||||||
Shares issued in trust for ATM Offering, shares | 27,953 | |||||||
Shares sold in ATM Offering | $ 35 | 203,644 | 203,679 | |||||
Shares sold in ATM Offering, shares | 34,547 | |||||||
Shares sold in Securities Purchase Agreement | $ 3 | 129,508 | 129,511 | |||||
Shares sold in Securities Purchase Agreement, shares | 2,500 | |||||||
Non-controlling interest of Vicon | (781,871) | (781,871) | ||||||
Net income (loss) | (1,983,867) | (1,983,867) | ||||||
Balance at Mar. 31, 2019 | $ 2,010 | $ 1,000 | $ 1,856 | 33,937,111 | (855,189) | (1,512,057) | (781,871) | 30,792,860 |
Balance, shares at Mar. 31, 2019 | 2,009,946 | 1,000,000 | 1,855,961 | |||||
Foreign currency translations | (169,928) | (169,928) | ||||||
Share-based compensation | 36,108 | 36,108 | ||||||
Stock issued to pay notes payable | $ 559 | 1,715,015 | 1,715,574 | |||||
Stock issued to pay notes payable, shares | 559,378 | |||||||
Series B Conversion | $ 176 | 331,949 | 332,125 | |||||
Series B Conversion, shares | 175,562 | |||||||
Reverse split rounding shares | $ 3 | 3 | ||||||
Reverse split rounding shares, shares | 3,338 | |||||||
Dividends paid in Series 1 preferred shares | $ 101 | 1,007,618 | (1,007,719) | |||||
Dividends paid in Series 1 preferred shares, shares | 100,772 | |||||||
Discount on Series B (deemed dividend) | (130,190) | (130,190) | ||||||
Non-controlling interest of Vicon | 323,337 | 323,337 | ||||||
Net income (loss) | (1,925,618) | (1,925,618) | ||||||
Balance at Jun. 30, 2019 | $ 2,111 | $ 1,000 | $ 2,594 | $ 36,897,611 | $ (3,788,526) | $ (1,681,985) | $ (458,534) | $ 31,432,805 |
Balance, shares at Jun. 30, 2019 | 2,110,718 | 1,000,000 | 2,594,239 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities | ||
Consolidated net income/(loss) | $ (6,405,280) | $ (1,427,749) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 4,271,421 | 2,583,645 |
Loss on sale/disposal of property and equipment | 465,029 | |
Change in allowance for inventory obsolescence | 599,847 | |
Change in allowance for doubtful accounts | 1,197 | |
Share-based compensation | 108,324 | |
Interest expense paid in equity shares | 1,253,516 | |
Interest expense on convertible debt | 109,144 | |
Loss on equity interests | 778,823 | |
Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: | ||
Accounts receivable | 1,949,261 | 3,749,753 |
Accounts receivable - related party | (100,904) | |
Inventory | 707,631 | 5,189,736 |
Prepaid expenses and other current asstets | 46,030 | (2,125,768) |
Other assets | (1,135,190) | 211,520 |
Other Liabilities | 354,332 | 173,187 |
Accounts payable | (853,030) | (242,695) |
Account Payables - RP | 155,600 | |
Deposits from customers | 9,390 | (1,063,437) |
Accrued expenses | 1,956,989 | (852,071) |
Deferred Revenue | 109,493 | |
Net cash provided by operating activities | 2,892,612 | 7,685,132 |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (1,659,480) | (12,845,859) |
Refund on fixed assets | 14,000 | |
Net cash used by investing activities | (1,645,480) | (12,845,859) |
Cash Flows from Financing Activities | ||
Proceeds from notes payable | 1,100,000 | 4,025,000 |
Payments on notes payable | (264,560) | (302,419) |
Proceeds from related party notes | ||
Payments on related party notes | (1,244,464) | |
Payments on bank loans | (1,531,629) | |
Proceeds from at-the-market offerings | 490,237 | |
Expenses on at-the-market offerings | (18,323) | |
Proceeds from the issuance of Series B Preferred Stock | 500,000 | (3,096,042) |
Expenses from the issuance of Series B Preferred Stock | (25,000) | |
Settlement of Series B Preferred Stock in Cash | (273,092) | |
Revolving line of credit | 122,918 | |
Payments on caplital lease obligations | (18,812) | |
Net cash provided/(used) by financing activities | 81,739 | (617,925) |
Effect of currency translation | (1,198,688) | |
Net increase (decrease) in cash | 1,328,871 | (5,778,652) |
Cash beginning of period | 2,315,935 | 11,974,752 |
Cash end of period | 2,446,118 | 6,196,100 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 715,722 | 259,317 |
Cash paid during the period for income taxes | 162,871 | 852,071 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Investment in Vicon Technologies | 300,000 | 2,913,930 |
Payment of convertible notes in common stock | 220,000 | |
Payment of interest on convertible notes in common stock | 1,253,516 | 109,144 |
Payment of short-term notes payable in common stock | 1,790,649 | 225,000 |
Dividends paid in equity shares | $ 1,965,500 | $ 915,080 |
Organization and Plan of Operat
Organization and Plan of Operations | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Plan of Operations | NOTE 1 – ORGANIZATION AND PLAN OF OPERATIONS Cemtrex was incorporated in 1998, in the state of Delaware and has evolved through strategic acquisitions and internal growth from a small environmental monitoring instruments company into a world leading multi-industry technology company. The Company drives innovation in a wide range of sectors, including smart technology, virtual and augmented realities, advanced electronic systems, industrial solutions, and intelligent security systems. Unless the context requires otherwise, all references to “we”, “our”, “us”, “Company”, “registrant”, “Cemtrex” or “management” refer to Cemtrex, Inc. and its subsidiaries. Advanced Technologies (AT) Cemtrex’s Advanced Technologies segment delivers cutting-edge technologies in the IoT, Wearables and Smart Devices, such as the SmartDesk. Through the Company’s advanced engineering and product design, they deliver progressive design and development solutions to create impactful experiences for mobile, web, virtual and augmented reality, wearables and television as well as providing cutting edge, mission critical security and video surveillance. Through its Cemtrex VR division, the Company is developing a wide variety of applications for virtual and augmented reality markets. Cemtrex has developed a cutting edge IoT product, the SmartDesk, over the last eighteen months to revolutionize the desktop PC market. The SmartDesk is custom engineered and manufactured by Cemtrex with over eighteen patents pending around the product. SmartDesk combines and reimagines the needs of the modern office workstation in a sleek, clutter-free design. The product includes 72 inches of touch display monitors, proprietary patent-pending touch and gesture control, digital phone and webcam, integrated document scanner, wireless smartphone charging, and a built-in keyboard / trackpad with an electric-powered, adjustable-height desk. The Company is marketing this product to both consumers and enterprises alike. The Company currently markets this product directly to consumers but is also bringing on value added resellers (VARs) to reach enterprise customers. Cemtrex has received pre-orders from large Fortune 500 organizations like Black & Decker and United airlines. The Company will start fulfilling most SmartDesk orders in its fiscal second quarter. The Company also offers white glove installation, extended warranties, and accessories to go along with the SmartDesk. Electronics Manufacturing (EM) Cemtrex’s Electronics Manufacturing (EM) segment 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 works with industry leading OEMs in their outsourcing of advanced manufacturing services by forming a long-term relationship as an electronics manufacturing partner. We work in close relationships with our customers throughout the entire electronic lifecycle of a product, from design, manufacturing, and distribution. The Company seeks to grow the business through the addition of new, high quality customers, the expansion of its share of business with existing customers and participating in the growth of existing customers. Using its manufacturing capabilities, the Company provides customers with advanced product assembly and system level integration combined with test services to meet the highest standards of quality. Through its agile manufacturing environment, we can deliver low and medium volume and mix services to our clients. Additionally, we design, develop, and manufacture various interconnects and cable assemblies that often are sold in conjunction with its PCBAs to enhance value for their customers. The Company also provides engineering services from new product introductions and prototyping, related testing equipment, to product redesigns. Industrial Technology (IT) Cemtrex’s Industrial Technology (IT) segment, offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Company believes its ability to attract and retain new customers comes from their ongoing commitment to understanding its customers’ business performance requirements and our expertise in meeting or exceeding these requirements and enhancing their competitive edge. We work closely with our customers from an operational and senior executive level to achieve a deep understanding of our customer’s goals, challenges, strategies, operations, and products to ultimately build a long-lasting successful relationship. Recent Developments The Company continues to experience weakness in new orders in its environmental instruments and control products markets both domestically and internationally. Revenues in that segment continue to be down as fewer number of projects are being decided and awarded due to relaxation of numerous environmental regulations under the current administration. Company has shifted its focus into smart devices and virtual reality applications, and its Electronics Manufacturing business, and hence the Company will continue to reduce its presence in the environmental instruments and control products markets in the coming year. Reverse Stock Split On May 28, 2019, the Company filed the Charter Amendment with the Delaware Secretary of State to effect a 1-for-8 reverse split of the outstanding shares of the Company’s common stock (the “Reverse Stock Split”). As a result, every eight outstanding shares of the Company’s common stock combined automatically into one share of common stock. Each stockholder’s percentage ownership in the Company and proportional voting power remains unchanged after the Reverse Stock Split, except for minor changes and adjustments resulting from the treatment of fractional shares. On June 13, 2019, the Reverse Stock Split became effective and that trading in its common stock on the NASDAQ Capital Markets Exchange on a split-adjusted basis began on the morning of June 13, 2019. All share amounts and per share amounts have been adjusted to reflect the reverse stock split in the prior periods presented. Vicon Industries, Inc. On March 23, 2018, in a private resale transaction, Cemtrex purchased 7,284,824 shares of common stock and a warrant to purchase an additional 1,500,000 shares of common stock of Vicon Industries, Inc. (OTCMKTS: VCON), (“Vicon”), from former Vicon shareholder NIL Funding Corporation, pursuant to the terms of a Securities Purchase Agreement. Cemtrex’s purchase of the Vicon Industries common stock and warrant resulted in its beneficial ownership of approximately 46% of the outstanding shares of common stock of Vicon. Cemtrex purchased the shares of common stock and warrant of Vicon Industries in exchange for 1,012,625 shares of Cemtrex common stock. Following the closing of the transaction, Saagar Govil, Cemtrex’s Chairman and Chief Executive Officer, and Aron Govil, Cemtrex’s Executive Director, joined the Vicon Industries Board of Directors and Saagar Govil assumed the position of Chief Executive Officer of Vicon Industries. Following the resignation of all other Board members by January 2019, the Company had elected to account for Vicon using the consolidation method. On May 13, 2019, the Company acquired 15,000,000 shares of Vicon common stock in exchange for $300,000 in consideration. The Company now owns approximately 70% of Vicon’s outstanding shares of common stock. The company accounts for Vicon using the consolidation method of accounting. |
Interim Statement Presentation
Interim Statement Presentation | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Interim Statement Presentation | NOTE 2 – INTERIM STATEMENT PRESENTATION Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended September 30, 2018 (“2018 Annual Report”) of Cemtrex Inc. (“Cemtrex” or the “Company”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the Unites States (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X pursuant to the requirements of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements, the disclosure of contingent assets and liabilities in the condensed consolidated financial statements and the accompanying notes, and the reported amounts of revenues, expenses and cash flows during the periods presented. Actual amounts and results could differ from those estimates. The estimates and assumptions the Company makes are based on historical factors, current circumstances and the experience and judgment of the Company’s management. The Company evaluates its estimates and assumptions on an ongoing basis. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries (Griffin Filters LLC, MIP Cemtrex Inc., Cemtrex Advanced Technologies Inc., Cemtrex Ltd., Cemtrex Technologies Pvt. Ltd., ROB Cemtrex GmbH, ROB Systems Srl, ROB Cemtrex Assets UG, ROB Cemtrex Logistics GmbH, and Advanced Industrial Services, Inc. and Vicon Industries, Inc. and its subsidiaries, Telesite USA, IQInVision, Vicon Industries Ltd., Vicon Deutschland GmbH, and Vicon Systems, Ltd. All inter-company balances and transactions have been eliminated in consolidation. Significant Accounting Policies and Recent Accounting Pronouncements Significant Accounting Policies Note 2 of the Notes to Consolidated Financial Statements, included in the annual report on Form 10-K for the year ended September 30, 2018, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Adopted Accounting Pronouncements Adoption of ASC 606 Effective October 1, 2018, the Company adopted ASC 606 using the modified retrospective approach for all of its contracts. Following the adoption of ASC 606, the Company continues to recognize revenue at a point-in-time when control of goods transfers to the customer. This is consistent with the Company’s previous revenue recognition accounting policy under which the Company recognized revenue when title and risk of loss pass to the customer and collectability was reasonably assured. ASC 606 did not impact the Company’s presentation of revenue on a gross or net basis. The Company recognizes contract revenue from the sales of services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly. In addition, there was no impact of adoption on the statement of operations or balance sheet as of June 30, 2018 or for the nine months then ended. The Company expects the impact of adopting the new revenue standard to be immaterial to net income on an ongoing basis. Revenue Recognition The Company recognizes revenue from sales of services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly at the point in time when the performance obligations in the contract are met, which is when the customer obtains control of such products and typically occurs upon delivery depending on the terms of the underlying contracts. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. In some instances, the Company enters into contracts with customers that contain multiple performance obligations to deliver volumes of co-products over a contractual period of less than 12 months. The Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices and recognizes the related revenue as control of each individual product is transferred to the customer in satisfaction of the corresponding performance obligation. Recently Issued Accounting Standards In February 2016, The FASB issued ASU 2016-02 (Topic 842), “Leases”. ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company will adopt this standard starting October 1, 2019. The Company does not believe adoption will have a material effect on its financial position. Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period presentation. |
Loss Per Common Share
Loss Per Common Share | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | NOTE 3 – LOSS PER COMMON SHARE Basic income/(loss) per common share is computed as income/(loss) applicable to common stockholders divided by the weighted-average number of common shares outstanding for the period. Diluted income/(loss) per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted to common stock. The following table represents common stock equivalents that were excluded from the computation of diluted loss per share for the three and nine months ended June 30, 2019 and 2018, because the effect of their inclusion would be anti-dilutive. For the three and nine months ended June 30, (unaudited) 2019 2018 Options 79,111 79,687 Warrants 433,965 433,965 513,076 513,652 |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 4 – SEGMENT INFORMATION The Company reports and evaluates financial information for three segments: Advanced Technologies (AT) segment, the Electronics Manufacturing (EM) segment and the Industrial Technology (IT) segment. The AT segment develops smart devices and provides progressive design and development solutions to create impactful experiences for mobile, web, virtual and augmented reality, wearables and television as well as providing cutting edge, mission critical security and video surveillance. The EM segment 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. This segment also sells software development services for mobile, web, virtual reality, and PC applications. The IT segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers in USA. The segment also sells a complete line of air filtration and environmental control instruments & products to a wide variety of customers in industries such as: chemical, cement, steel, food, construction, mining, & petrochemical worldwide. The following tables summarize the Company’s segment information: For the three months ended For the nine months ended June 30, June 30, 2019 2018 2019 2018 Revenues from external customers Advanced Technologies 6,528,484 300,338 $ 13,924,097 $ 931,009 Electronics Manufacturing 11,003,706 11,216,531 33,130,143 41,874,472 Industrial Technology 4,919,860 7,647,445 16,289,851 29,154,029 Total revenues 22,452,050 19,164,314 $ 63,344,091 $ 71,959,510 Gross profit Advanced Technologies 2,528,338 63,539 $ 5,831,813 $ 545,098 Electronics Manufacturing 4,470,216 4,694,457 13,579,805 15,938,503 Industrial Technology 1,573,022 2,505,419 5,604,472 8,811,636 Total gross profit 8,571,576 7,263,415 $ 25,016,090 $ 25,295,237 Operating (loss) income Advanced Technologies (391,053 ) (1,344,211 ) $ (4,058,782 ) $ (1,154,348 ) Electronics Manufacturing 91,175 370,696 (69,703 ) 644,845 Industrial Technology (163,944 ) (257,268 ) (934,125 ) 309,934 Total operating (loss) income (463,822 ) (1,230,783 ) $ (5,062,610 ) $ (199,569 ) Other income (expense) Advanced Technologies (351,466 ) 18 $ (545,851 ) $ 8,061 Electronics Manufacturing 11,983 (310,296 ) (33,989 ) (39,127 ) Industrial Technology (1,821,961 ) (263,145 ) (2,263,211 ) (316,472 ) Total other income (expense) (2,161,444 ) (573,423 ) $ (2,843,051 ) $ (347,538 ) Depreciation and Amortization Advanced Technologies 245,248 - $ 1,112,240 $ - Electronics Manufacturing 705,611 425,904 1,529,309 1,300,828 Industrial Technology 548,200 473,029 1,492,414 1,282,817 Total depreciation and amortization 1,499,059 898,933 $ 4,133,963 $ 2,583,645 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 5 – 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 Company had no assets reportable under ASC 820 at June 30, 2019 and 2018. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | NOTE 6 – RESTRICTED CASH A subsidiary of the Company participates in a consortium in order to self-insure group care coverage for its employees. The plan is administrated by Benecon Group and the Company makes monthly deposits in a trust account to cover medical claims and any administrative costs associated with the plan. These funds, as required by the plan are restricted in nature and amounted to $873,293 as of June 30, 2019. The Company also records a liability for claims that have been incurred but not recorded at the end of each year. The amount of the liability is determined by Benecon Group. The liability recorded in accrued expenses amounted to $110,858 as of June 30, 2019 and $104,987 at September 30, 2018. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, Net | NOTE 7 – ACCOUNTS RECEIVABLE, NET Trade receivables, net consist of the following: June 30, September 30, 2019 2018 Accounts receivable $ 16,426,107 $ 14,244,363 Allowance for doubtful accounts (298,708 ) (298,708 ) $ 16,127,399 $ 13,945,655 Accounts receivable 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 | 9 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory, Net | NOTE 8 – INVENTORY, NET Inventory, net, consist of the following: June 30, September 30, 2019 2018 Raw materials $ 9,135,022 $ 8,654,497 Work in progress 1,952,284 1,412,828 Finished goods 5,629,301 2,298,081 16,716,607 12,365,406 Less: Allowance for inventory obsolescence (985,479 ) (1,010,948 ) Inventory –net of allowance for inventory obsolescence $ 15,731,128 $ 11,354,458 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 9 – PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: June 30, September 30, 2019 2018 Land $ 1,241,720 $ 1,063,715 Building 5,192,036 5,321,926 Furniture and office equipment 2,655,049 2,685,315 Computers and software 7,119,285 6,762,046 Trade show display 89,330 - Machinery and equipment 28,344,259 22,102,390 44,641,679 37,935,392 Less: Accumulated depreciation (20,233,031 ) (10,634,738 ) Property and equipment, net $ 24,408,648 $ 27,300,654 Depreciation expense for the three and nine months ended June 30, 2019 and 2018 were $1,636,517 and $861,815 and $4,248,075 and $2,583,465, respectively. |
Prepaid and Other Current Asset
Prepaid and Other Current Assets | 9 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid and Other Current Assets | NOTE 10 – PREPAID AND OTHER CURRENT ASSETS On June 30, 2019, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $935,782, other current assets of $1,553,690 and other receivables of $1,991,354. On September 30, 2018, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $1,026,441, other current assets of $1,115,201 and other receivables of $1,991,354. |
Other Assets
Other Assets | 9 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 11 - OTHER ASSETS As of June 30, 2019, the Company had other assets of $4,584,547 which was comprised of rent security of $74,125, deferred tax assets of $3,361,529, and other assets of $1,148,893. As of September 30, 2018, the Company had other assets of $3,093,607 which was comprised of rent security of $126,078, and deferred tax assets of $2,967,529. |
Short-Term Liabilities
Short-Term Liabilities | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Short-Term Liabilities | NOTE 12 – SHORT-TERM LIABILITES The Company’s subsidiaries have revolving lines of credit with various banks in order to fund operations. As of June 30, 2019, the balance of these accounts were $2,762,460. On February 12, 2018 the Company’s subsidiary ROB Cemtrex GmbH obtained a $3,680,079 (€3,000,000 based on the exchange rate at the time) secured loan with Deutsche Bank. This loan carries interest of EURIBOR ( Euro Interbank Offer Rate) On May 11, 2018, the Company issued a note payable to an unrelated third party, for $1,725,000. This note carries interest of 8% and is due after 18 months. During the nine months ended June 30, 2019, 205,039 shares of the Company’s common stock have been issued to satisfy $373,763 of this note. As of June 30, 2019, $1,553,994 of this note remains outstanding including $202,757 in accrued interest and fees. Subsequent to June 30, 2019 $745,352 of this loan was paid with the Company’s Common Stock and reclassified as long-term. On September 21, 2018, the Company’s subsidiary, Vicon, entered into a $5,600,000 Term Loan Agreement with NIL Funding Corporation. This note carries interest of 8.95% and has a maturity date of March 30, 2020. As of June 30, 2019, $5,500,000 of this note remains outstanding. As of June 30, 2019, there were $1,644,020 in current portion of long-term liabilities. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 13 – RELATED PARTY TRANSACTIONS As of December 31, 2018, the Company has completed the move of its corporate headquarters New York City. Prior to December 31, 2018, the Company leased its principal office at Farmingdale, New York, 8,000 square feet of office and warehouse/assembly space on a month to month lease in a building owned by an officer of the Company, at a monthly rental of $10,000. For the three months ended June 30, 2019 and 2018 rent expense under this lease was $0 and $30,000, respectively. For the nine months ended June 30, 2019 and 2018 rent expense under this lease was $30,000 and $90,000, respectively. As of June 30, 2019, and September 30, 2019, the Company had receivables from a related company owned by an officer of the Company of $266,124 and $165,220, respectively and payables of $155,600 and $0, respectively. |
Long-Term Liabilities
Long-Term Liabilities | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Liabilities | NOTE 14 – LONG-TERM LIABILITIES Loans payable to bank On October 31, 2013, the Company acquired a loan from Sparkasse Bank of Germany in the amount of $4,006,500 (€3,000,000, 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. As of June 30, 2019, the loan had a balance of $1,139,355, based on the exchange rate at June 30, 2019, with $472,352 classified as short-term. On December15, 2015, the Company acquired a loan from Fulton Bank in the amount of $5,250,000 in order to fund the purchase of Advanced Industrial Services, Inc. $5,000,000 of the proceeds went to direct purchase of AIS. This loan carries interest of LIBOR plus 2.25% per annum (4.45% as of June 30, 2019) and is payable on December 15, 2022 On December15, 2015, the Company acquired a loan from Fulton Bank in the amount of $620,000 in order to fund the operations of Advanced Industrial Services, Inc. This loan carries interest of LIBOR (4.20% as of June 30, 2019) plus 2.00% per annum and is payable on December 15, 2020. On May 1, 2018, the Company acquired a loan from Fulton Bank in the amount of $400,000 in order to fund new equipment for Advanced Industrial Services, Inc. This loan carries interest of LIBOR plus 2.00% per annum (4.20% as of June 30, 2019) and is payable on May 1, 2023. 324,924 Mortgage payable 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 $5,500,400 (€4,000,000 based upon the exchange rate on March 1, 2014). This mortgage carries interest of 3.00% and is payable over 17 years. Notes payable Upon acquisition of AIS, the Company assumed a promissory note related to the purchase of shares from a former shareholder in 2011. The note requires ten annual payments of principal plus interest at treasury bill rates. The note matures in 2022. On November 15, 2017, the Company issued a note payable to an unrelated third party, for $2,300,000. This note carries interest of 8% and is due after 18 months. At September 30, 2018 1,475,000 of this note was outstanding with $225,000 classified as long-term. During the nine months ended June 30, 2019, 498,452 shares of the Company’s common stock have been issued to satisfy $1,450,000 of this note. As of June 30, 2019, $278,282 of this note remains outstanding including $253,282 in accrued interest and fees. Subsequent to June 30, 2019 the balance of this loan was paid with the Company’s Common stock and reclassified as long-term. On June 17, 2019, the Company issued a note payable to an unrelated third party, for $1,528,000. This note carries interest of 10% and is due after 18 months. As of June 30, 2019, $1,533,527 of this note remains outstanding including $5,527 in accrued interest. Subsequent to June 30, 2019 $745,352 of a short-term note was paid with the Company’s Common Stock and reclassified as long-term. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 15 – STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 10,000,000 shares of Preferred Stock, $0.001 par value. As of December 31, 2018, and September 30, 2018, there were 3,110,718 and 2,914,168 shares issued and outstanding, respectively. Series 1 Preferred Stock For the nine months ended June 30, 2019, 196,550 shares of Series 1 Preferred Stock were issued to pay $1,965,500 worth of dividends to holders of Series 1 Preferred Stock. As of June 30, 2019, and September 30, 2018, there were 2,110,718 and 1,914,168 shares of Series 1 Preferred Stock issued and outstanding, respectively. Series A Preferred stock During the nine-month periods ended June 30, 2019 and 2018, the Company did not issue any Series A Preferred Stock. As of June 30, 2019, and September 30, 2018, there were 1,000,000 shares of Series A Preferred Stock issued and outstanding. Series B Preferred Stock On March 22, 2019, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an unaffiliated institutional investor (the “Investor”), pursuant to which the Company agreed to issue to the Investor 2,500 shares of common stock, a warrant to purchase 25,000 shares of common stock and 2,100 shares of Series B Preferred Stock, stated value $500 per share. The Series B Preferred Stock has a maturity date of one year from the issuance date and the Company has agreed to pay dividends on the outstanding shares of Series B Preferred at the rate equal to 7.5% per annum (increasing by 10% upon the occurrence of each trigger (or default) event). Dividends are payable on the date the shares of Series B Preferred are converted or on maturity. The dividends must be paid in cash or, in certain circumstances, may be paid in shares of Common Stock. As of June 30, 2019, 1,050 shares of Series B Preferred Stock, 2,500 shares of Common Stock, and a Series B warrant to purchase 25,000 shares of common stock were issued for gross proceeds of $500,000. After deducting offering expenses of $25,000 the Company received $475,000 in net proceeds. During the three months ended June 30, 2019, the Company issued 1,384,485 (175,562 as adjusted for the reverse stock split) shares of common stock to convert 700 shares of Series B Preferred Stock and recognized $130,190 on the amortized deemed dividend. On June 10, 2019, the Company settled its litigation with the Investor to cancel all outstanding Series B Preferred Stock and Series B Warrants for the sum of $1,000,000, As of June 30, 2019, no shares of Series B Preferred Stock are issued or outstanding. The sum of $666,667 has been recognized as other loss and associated legal costs have been expensed in this quarter. Common Stock The Company is authorized to issue 20,000,000 shares of common stock, $0.001 par value. As of June 30, 2019, there were 2,594,239 shares issued and outstanding and at September 30, 2018, there were 1,621,719 shares issued and outstanding. During the nine months ended June 30, 2019, 703,494 shares of the Company’s common stock have been issued to satisfy $1,823,673 of a short-term note payable and interest, 25,126 shares were issued in a Subscription Rights Offering (See below), 27,953 shares were issued and held in trust and 34,547 were issued upon sale in an At-the-Market Offering Agreement(See below), and 2,500 were issued in a Securities Purchase Agreement (See above), 175,562 were issued upon the conversion of Series B Preferred Stock(see above), and 3,338 shares were issued to found up partial shares in the reverse stock split (see Note 1). Subscription Rights Offering On November 26, 2018, Cemtrex, Inc. (the “Company”) commenced a rights offering to its stockholders (“Rights Offering”). Pursuant to the Rights Offering, the Company has distributed, at no charge to holders of record of the Company’s common stock and series 1 warrants as of November 19, 2018 (the “Record Date”), non-transferable subscription rights to purchase up to an aggregate of $2,700,000 worth of shares of common stock, at a purchase price equal to the lesser of (i) $1.06 per share (in which case 2,547,170 shares may be sold), or (ii) 95% of the volume weighted average price of the Company’s common stock for the five trading day period through and including December 19, 2018, which is the initial expiration date of the Rights Offering, all as set forth in the Prospectus Supplement filed on November 21, 2018 with the Securities and Exchange Commission (the “Prospectus Supplement”). On December 19, 2018 the price was set at $0.75 per share and the expiration date was extended to December 21, 2018. Each stockholder of record on the Record Date received one right for each one share of common stock held by the stockholder, and each series 1 warrant holder of record on the Record Date received one right for every ten shares for which their warrant is exercisable. Each right entitles the holder to purchase one share of the Company’s common stock, subject to proration. In connection with the Rights Offering, the Company entered into a Dealer-Manager Agreement (the “Agreement”) with Advisory Group Equity Services, Ltd. Doing business as RHK Capital (“RHK”). As of June 30, 2019, 201,002 (25,126, as adjusted for the reverse stock split) shares of common stock were issued for gross proceeds of $150,721. After deducting offering expenses of $12,027 the Company received $138,694 in net proceeds. At-the-Market Offering Agreement On January 28, 2019,the “Company entered into an At-the-Market Offering Agreement (the “Agreement”) with Advisory Group Equity Services, Ltd. Doing business as RHK Capital (the “Manager”), pursuant to which the Manager will act as the Company’s sales agent with respect to the issuance and sale of up to $2,000,000 of the Company’s shares of common stock, par value $0.001 per share (the “Shares”), from time to time in an at-the-market public offering (the “Offering”). Sales of the Shares, through the Manager, will be made directly on The NASDAQ Capital Market, on any other existing trading market for our common stock or to or through a market maker. The Manager may also sell the Shares in privately negotiated transactions, provided that the Manager receives our prior written approval for any sales in privately negotiated transactions. The Company will pay the Manager a commission equal to 3.0% of the gross proceeds from the sale of the Shares pursuant to the Sales Agreement. As of June 30, 2019, 223,628 (27,953 as adjusted for the reverse stock split) shares of common stock were issued and are held in trust. During the nine months ended June 30, 2019, 276,372 (34,547 as adjusted for the reverse stock split) were issued for gross proceeds of $209,974. After deducting offering expenses of $6,296 the Company received $203,679 in net proceeds. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | NOTE 16 – SHARE-BASED COMPENSATION For the three months ended June 30, 2019 and 2018, the Company recognized $39,983 and zero of share-based compensation expense on its outstanding options, respectively. For the nine months ended June 30, 2019 and 2018, the Company recognized $112,200 and zero of share-based compensation expense on its outstanding options, respectively. As of June 30, 2018, $76,375 of unrecognized share-based compensation expense is expected to be recognized over a period of two years. Future compensation amounts will be adjusted for any change in estimated forfeitures. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 17 – COMMITMENTS AND CONTINGENCIES The Company has moved its corporate activities to New York City with a lease of 1,000 square feet of office space at a rate of $13,000 per month that expires June 30, 2020. The Company’s IT segment leases (i) approx. 5,000 square feet of office and warehouse space in Liverpool, New York from a third party on a month to month lease at a monthly rent of $2,200, (ii) approximately 25,000 square feet of warehouse space in Manchester, PA from a third party in a seven year lease at a monthly rent of $7,300 expiring on December 13, 2022, (iii) approximately 43,000 square feet of office and warehouse space in York, PA from a third party in a seven year lease at a monthly rent of $21,825 expiring on December 13, 2022, (iv) approximately 15,500 square feet of warehouse space in Emigsville, PA from a third party in a one year lease at a monthly rent of $4,555 expiring on August 31, 2019. The Company’s EM segment owns a 70,000 square-foot manufacturing building in Neulingen. The EM segment also leases (i) a 10,000 square foot manufacturing facility in Sibiu, Romania from a third party in a ten-year lease at a monthly rent of $9,363 (€8,000) expiring on May 31, 2029. The Company’s AT segment leases (i) approximately 6,700 square feet of office and warehouse space in Pune, India from a third party in an eighteen-month lease at a monthly rent of $6,265 (INR454,365) expiring on September 6, 2019, (ii) approximately 27,000 square feet of office and warehouse space in Hauppauge, New York from a third party in a five-year lease at a monthly rent of $25,480 expiring on April 30, 2020, (iii) approximately 9,400 square feet of office and warehouse space in Southampton, England in a fifteen-year lease with at a monthly rent of $87,745 (£69,250) which expires on March 24, 2031 and contains provisions to terminate in 2021 and 2026. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 19 - SUBSEQUENT EVENTS Cemtrex has evaluated subsequent events up to the date the condensed consolidated financial statements were issued. Cemtrex concluded that the following subsequent events have occurred and require recognition or disclosure in the condensed consolidated financial statements. On July 1, 2019, the Company entered into a Securities Purchase Agreement relating to the public offering of 224,215 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share, all of which were sold by the Company (the “Offering”) to an accredited investor. The Offering price of the Shares was $2.23 per share. After offering expenses and a 5% commission paid to the Company’s placement agent, the Company received net proceeds of approximately $467,500 from the Offering. In July and August of 2019, the Company issued 548,655 shares of Common Stock to satisfy $1,023,634 worth of notes payable and accrued interest. On August 15, 2019 the Company closed on the sale of its subsidiaries ROB Cemtrex GmbH, ROB Systems Srl, ROB Cemtrex Assets UG, ROB Cemtrex Logistics GmbH for €6,367,199. |
Interim Statement Presentation
Interim Statement Presentation (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended September 30, 2018 (“2018 Annual Report”) of Cemtrex Inc. (“Cemtrex” or the “Company”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the Unites States (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X pursuant to the requirements of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements, the disclosure of contingent assets and liabilities in the condensed consolidated financial statements and the accompanying notes, and the reported amounts of revenues, expenses and cash flows during the periods presented. Actual amounts and results could differ from those estimates. The estimates and assumptions the Company makes are based on historical factors, current circumstances and the experience and judgment of the Company’s management. The Company evaluates its estimates and assumptions on an ongoing basis. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries (Griffin Filters LLC, MIP Cemtrex Inc., Cemtrex Advanced Technologies Inc., Cemtrex Ltd., Cemtrex Technologies Pvt. Ltd., ROB Cemtrex GmbH, ROB Systems Srl, ROB Cemtrex Assets UG, ROB Cemtrex Logistics GmbH, and Advanced Industrial Services, Inc. and Vicon Industries, Inc. and its subsidiaries, Telesite USA, IQInVision, Vicon Industries Ltd., Vicon Deutschland GmbH, and Vicon Systems, Ltd. All inter-company balances and transactions have been eliminated in consolidation. |
Significant Accounting Policies and Recent Accounting Pronouncements | Significant Accounting Policies and Recent Accounting Pronouncements Significant Accounting Policies Note 2 of the Notes to Consolidated Financial Statements, included in the annual report on Form 10-K for the year ended September 30, 2018, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Adopted Accounting Pronouncements Adoption of ASC 606 Effective October 1, 2018, the Company adopted ASC 606 using the modified retrospective approach for all of its contracts. Following the adoption of ASC 606, the Company continues to recognize revenue at a point-in-time when control of goods transfers to the customer. This is consistent with the Company’s previous revenue recognition accounting policy under which the Company recognized revenue when title and risk of loss pass to the customer and collectability was reasonably assured. ASC 606 did not impact the Company’s presentation of revenue on a gross or net basis. The Company recognizes contract revenue from the sales of services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly. In addition, there was no impact of adoption on the statement of operations or balance sheet as of June 30, 2018 or for the nine months then ended. The Company expects the impact of adopting the new revenue standard to be immaterial to net income on an ongoing basis. Revenue Recognition The Company recognizes revenue from sales of services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly at the point in time when the performance obligations in the contract are met, which is when the customer obtains control of such products and typically occurs upon delivery depending on the terms of the underlying contracts. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. In some instances, the Company enters into contracts with customers that contain multiple performance obligations to deliver volumes of co-products over a contractual period of less than 12 months. The Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices and recognizes the related revenue as control of each individual product is transferred to the customer in satisfaction of the corresponding performance obligation. Recently Issued Accounting Standards In February 2016, The FASB issued ASU 2016-02 (Topic 842), “Leases”. ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company will adopt this standard starting October 1, 2019. The Company does not believe adoption will have a material effect on its financial position. Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period presentation. |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Common Stock Equivalents Excluded from Computation of Diluted Loss Per Share | The following table represents common stock equivalents that were excluded from the computation of diluted loss per share for the three and nine months ended June 30, 2019 and 2018, because the effect of their inclusion would be anti-dilutive. For the three and nine months ended June 30, (unaudited) 2019 2018 Options 79,111 79,687 Warrants 433,965 433,965 513,076 513,652 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following tables summarize the Company’s segment information: For the three months ended For the nine months ended June 30, June 30, 2019 2018 2019 2018 Revenues from external customers Advanced Technologies 6,528,484 300,338 $ 13,924,097 $ 931,009 Electronics Manufacturing 11,003,706 11,216,531 33,130,143 41,874,472 Industrial Technology 4,919,860 7,647,445 16,289,851 29,154,029 Total revenues 22,452,050 19,164,314 $ 63,344,091 $ 71,959,510 Gross profit Advanced Technologies 2,528,338 63,539 $ 5,831,813 $ 545,098 Electronics Manufacturing 4,470,216 4,694,457 13,579,805 15,938,503 Industrial Technology 1,573,022 2,505,419 5,604,472 8,811,636 Total gross profit 8,571,576 7,263,415 $ 25,016,090 $ 25,295,237 Operating (loss) income Advanced Technologies (391,053 ) (1,344,211 ) $ (4,058,782 ) $ (1,154,348 ) Electronics Manufacturing 91,175 370,696 (69,703 ) 644,845 Industrial Technology (163,944 ) (257,268 ) (934,125 ) 309,934 Total operating (loss) income (463,822 ) (1,230,783 ) $ (5,062,610 ) $ (199,569 ) Other income (expense) Advanced Technologies (351,466 ) 18 $ (545,851 ) $ 8,061 Electronics Manufacturing 11,983 (310,296 ) (33,989 ) (39,127 ) Industrial Technology (1,821,961 ) (263,145 ) (2,263,211 ) (316,472 ) Total other income (expense) (2,161,444 ) (573,423 ) $ (2,843,051 ) $ (347,538 ) Depreciation and Amortization Advanced Technologies 245,248 - $ 1,112,240 $ - Electronics Manufacturing 705,611 425,904 1,529,309 1,300,828 Industrial Technology 548,200 473,029 1,492,414 1,282,817 Total depreciation and amortization 1,499,059 898,933 $ 4,133,963 $ 2,583,645 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivables, Net | Trade receivables, net consist of the following: June 30, September 30, 2019 2018 Accounts receivable $ 16,426,107 $ 14,244,363 Allowance for doubtful accounts (298,708 ) (298,708 ) $ 16,127,399 $ 13,945,655 |
Inventory, Net (Tables)
Inventory, Net (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net | Inventory, net, consist of the following: June 30, September 30, 2019 2018 Raw materials $ 9,135,022 $ 8,654,497 Work in progress 1,952,284 1,412,828 Finished goods 5,629,301 2,298,081 16,716,607 12,365,406 Less: Allowance for inventory obsolescence (985,479 ) (1,010,948 ) Inventory –net of allowance for inventory obsolescence $ 15,731,128 $ 11,354,458 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment are summarized as follows: June 30, September 30, 2019 2018 Land $ 1,241,720 $ 1,063,715 Building 5,192,036 5,321,926 Furniture and office equipment 2,655,049 2,685,315 Computers and software 7,119,285 6,762,046 Trade show display 89,330 - Machinery and equipment 28,344,259 22,102,390 44,641,679 37,935,392 Less: Accumulated depreciation (20,233,031 ) (10,634,738 ) Property and equipment, net $ 24,408,648 $ 27,300,654 |
Organization and Plan of Oper_2
Organization and Plan of Operations (Details Narrative) - Vicon Industries, Inc. [Member] - USD ($) | May 13, 2019 | Mar. 23, 2018 |
Reverse split | 1-for-8 reverse split | |
Number of common stock shares purchased | 7,284,824 | |
Warrants to purchase common stock | 1,500,000 | |
Ownership percentage | 70.00% | 46.00% |
Number of share exchanged during period | 1,012,625 | |
Number of shares issued for acquisition | 15,000,000 | |
Number of shares issued for acquisition, value | $ 300,000 |
Loss Per Common Share - Schedul
Loss Per Common Share - Schedule of Common Stock Equivalents Excluded From Computation of Diluted Loss Per Share (Details) - shares | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Common stock equivalents that were excluded from the computation of diluted loss per share | 513,076 | 513,652 |
Options [Member] | ||
Common stock equivalents that were excluded from the computation of diluted loss per share | 79,111 | 79,687 |
Warrant [Member] | ||
Common stock equivalents that were excluded from the computation of diluted loss per share | 433,965 | 433,965 |
Segment Information (Details Na
Segment Information (Details Narrative) | 9 Months Ended |
Jun. 30, 2019Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | $ 22,452,050 | $ 19,164,314 | $ 63,344,091 | $ 71,959,510 |
Gross profit | 8,571,576 | 7,263,415 | 25,016,090 | 25,295,237 |
Operating (loss) income | (463,822) | (1,230,783) | (5,062,610) | (199,569) |
Other income (expense) | (2,161,444) | (573,423) | (2,843,051) | (347,538) |
Depreciation and Amortization | 1,499,059 | 898,933 | 4,271,421 | 2,583,645 |
Advanced Technologies [Member] | ||||
Revenues | 6,528,484 | 300,338 | 13,924,097 | 931,009 |
Gross profit | 2,528,338 | 63,539 | 5,831,813 | 545,098 |
Operating (loss) income | (391,053) | (1,344,211) | (4,058,782) | (1,154,348) |
Other income (expense) | (351,466) | 18 | (545,851) | 8,061 |
Depreciation and Amortization | 245,248 | 1,112,240 | ||
Electronics Manufacturing [Member] | ||||
Revenues | 11,003,706 | 11,216,531 | 33,130,143 | 41,874,472 |
Gross profit | 4,470,216 | 4,694,457 | 13,579,805 | 15,938,503 |
Operating (loss) income | 91,175 | 370,696 | (69,703) | 644,845 |
Other income (expense) | 11,983 | (310,296) | (33,989) | (39,127) |
Depreciation and Amortization | 705,611 | 425,904 | 1,529,309 | 1,300,828 |
Industrial Technology [Member] | ||||
Revenues | 4,919,860 | 7,647,445 | 16,289,851 | 29,154,029 |
Gross profit | 1,573,022 | 2,505,419 | 5,604,472 | 8,811,636 |
Operating (loss) income | (163,944) | (257,268) | (934,125) | 309,934 |
Other income (expense) | (1,821,961) | (263,145) | (2,263,211) | (316,472) |
Depreciation and Amortization | $ 548,200 | $ 473,029 | $ 1,492,414 | $ 1,282,817 |
Restricted Cash (Details Narrat
Restricted Cash (Details Narrative) - USD ($) | Jun. 30, 2019 | Sep. 30, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $ 873,293 | $ 1,342,163 |
Accrued expenses | $ 110,858 | $ 104,987 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivables, Net (Details) - USD ($) | Jun. 30, 2019 | Sep. 30, 2018 |
Receivables [Abstract] | ||
Accounts receivable | $ 16,426,107 | $ 14,244,363 |
Allowance for doubtful accounts | (298,708) | (298,708) |
Accounts receivables, net, total | $ 16,127,399 | $ 13,945,655 |
Inventory, Net - Schedule of In
Inventory, Net - Schedule of Inventory, Net (Details) - USD ($) | Jun. 30, 2019 | Sep. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 9,135,022 | $ 8,654,497 |
Work in progress | 1,952,284 | 1,412,828 |
Finished goods | 5,629,301 | 2,298,081 |
Inventory, gross | 16,716,607 | 12,365,406 |
Less: Allowance for inventory obsolescence | (985,479) | (1,010,948) |
Inventory - net of allowance for inventory obsolescence | $ 15,731,128 | $ 11,354,458 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 1,636,517 | $ 861,815 | $ 4,248,075 | $ 2,583,465 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) | Jun. 30, 2019 | Sep. 30, 2018 |
Property and equipment, gross | $ 44,641,679 | $ 37,935,392 |
Less: Accumulated depreciation | (20,233,031) | (10,634,738) |
Property and equipment, net | 24,408,648 | 27,300,654 |
Land [Member] | ||
Property and equipment, gross | 1,241,720 | 1,063,715 |
Building [Member] | ||
Property and equipment, gross | 5,192,036 | 5,321,926 |
Furniture and Office Equipment [Member] | ||
Property and equipment, gross | 2,655,049 | 2,685,315 |
Computers and Software [Member] | ||
Property and equipment, gross | 7,119,285 | 6,762,046 |
Trade Show Display [Member] | ||
Property and equipment, gross | 89,330 | |
Machinery and Equipment [Member] | ||
Property and equipment, gross | $ 28,344,259 | $ 22,102,390 |
Prepaid and Other Current Ass_2
Prepaid and Other Current Assets (Details Narrative) - USD ($) | Jun. 30, 2019 | Sep. 30, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepayments on inventory purchases | $ 935,782 | $ 1,026,441 |
Other assets, current | 1,553,690 | 1,115,201 |
Other receivables | $ 1,991,354 | $ 1,991,354 |
Other Assets (Details Narrative
Other Assets (Details Narrative) - USD ($) | Jun. 30, 2019 | Sep. 30, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets | $ 4,584,547 | $ 3,093,607 |
Rent security | 74,125 | 126,078 |
Deferred tax assets | 3,361,529 | $ 2,967,529 |
Other assets | $ 1,148,893 |
Short-Term Liabilities (Details
Short-Term Liabilities (Details Narrative) | Sep. 21, 2018USD ($) | May 11, 2018USD ($) | Feb. 12, 2018USD ($) | Nov. 15, 2017USD ($) | Aug. 19, 2019USD ($)shares | Jul. 31, 2019shares | Jun. 30, 2019USD ($)shares | Sep. 30, 2018USD ($) | Jun. 30, 2018 | Feb. 12, 2018EUR (€) |
Revolving lines of credit | $ 2,762,460 | |||||||||
Current portion of long-term liabilities | 1,644,020 | |||||||||
Subsequent Event [Member] | ||||||||||
Number of shares issued, shares | shares | 548,655 | 548,655 | ||||||||
Unrelated Third Party [Member] | ||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | ||||||||
Debt due description | due after 18 months | due after 18 months | ||||||||
Note payable | $ 1,725,000 | $ 2,300,000 | 278,282 | $ 1,475,000 | ||||||
Accrued interest and fees | $ 253,282 | |||||||||
Number of shares issued, shares | shares | 498,452 | |||||||||
Number of shares issued, value | $ 1,450,000 | |||||||||
Unrelated Third Party [Member] | Notes Payable [Member] | ||||||||||
Note payable | 1,553,994 | |||||||||
Accrued interest and fees | $ 202,757 | |||||||||
Number of shares issued, shares | shares | 205,039 | |||||||||
Number of shares issued, value | $ 373,763 | |||||||||
Unrelated Third Party [Member] | Notes Payable [Member] | Subsequent Event [Member] | ||||||||||
Reclassified to long term liability notes payable | $ 745,352 | |||||||||
NIL Funding Corporation [Member] | Term Loan Agreement [Member] | Vicon Industries, Inc. [Member] | ||||||||||
Debt instrument, interest rate, stated percentage | 8.95% | |||||||||
Loan balance | 5,500,000 | |||||||||
Note payable | $ 5,600,000 | |||||||||
Maturity date | Mar. 30, 2020 | |||||||||
ROB Cemtrex GmbH [Member] | ||||||||||
Secured debt | $ 3,680,079 | |||||||||
Debt instrument, interest rate, stated percentage | 1.033% | |||||||||
Debt due description | Payable on January 1, 2020 | |||||||||
Loan balance | $ 3,293,156 | |||||||||
ROB Cemtrex GmbH [Member] | EURIBOR [Member] | ||||||||||
Debt instrument, interest rate, stated percentage | 1.25% | 1.25% | ||||||||
ROB Cemtrex GmbH [Member] | EUR [Member] | ||||||||||
Secured debt | € | € 3,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Dec. 30, 2018USD ($)ft² | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) |
Monthly rental | $ 0 | $ 30,000 | $ 30,000 | $ 60,000 | ||
Due from related parties | 266,124 | 266,124 | $ 165,220 | |||
Due to related parties | $ 155,600 | $ 155,600 | ||||
Aron Govil [Member] | ||||||
Area of office leases | ft² | 8,000 | |||||
Monthly rental | $ 10,000 |
Long-Term Liabilities (Details
Long-Term Liabilities (Details Narrative) | May 11, 2018USD ($) | May 01, 2018USD ($) | Nov. 15, 2017USD ($) | Dec. 15, 2015USD ($) | Dec. 15, 2015USD ($) | Mar. 01, 2014USD ($) | Oct. 31, 2013USD ($) | Aug. 19, 2019USD ($)shares | Jul. 31, 2019shares | Jun. 30, 2019USD ($)shares | Jun. 17, 2019USD ($) | Sep. 30, 2018USD ($) | May 01, 2018EUR (€) | Oct. 31, 2013EUR (€) |
Short term debt | $ 14,008,278 | $ 10,913,703 | ||||||||||||
Notes payable | 2,591,616 | 276,639 | ||||||||||||
Subsequent Event [Member] | ||||||||||||||
Number of shares issued, shares | shares | 548,655 | 548,655 | ||||||||||||
ROB Cemtrex GmbH [Member] | ||||||||||||||
Payments to acquire businesses and interest in affiliates | $ 2,799,411 | |||||||||||||
Business acquisition funded beginning operations | 1,207,089 | |||||||||||||
Unrelated Third Party [Member] | ||||||||||||||
Debt instrument interest rate | 8.00% | 8.00% | ||||||||||||
Long term liabilities | 225,000 | |||||||||||||
Notes payable | 1,533,527 | |||||||||||||
Interest payable | 5,527 | |||||||||||||
Note payable | $ 1,725,000 | $ 2,300,000 | $ 278,282 | $ 1,475,000 | ||||||||||
Debt due description | due after 18 months | due after 18 months | ||||||||||||
Number of shares issued, shares | shares | 498,452 | |||||||||||||
Number of shares issued, value | $ 1,450,000 | |||||||||||||
Accrued interest and fees | 253,282 | |||||||||||||
Notes Payable Due on October 30, 2021 [Member] | Sparkasse Bank of Germany [Member] | ||||||||||||||
Loans payable to bank | $ 4,006,500 | |||||||||||||
Debt instrument interest rate | 4.95% | 4.95% | ||||||||||||
Debt instrument maturity date | Oct. 30, 2021 | |||||||||||||
Long term liabilities | 1,139,355 | |||||||||||||
Short term debt | 472,352 | |||||||||||||
Notes Payable Due on October 30, 2021 [Member] | Sparkasse Bank of Germany [Member] | EUR [Member] | ||||||||||||||
Loans payable to bank | € | € 3,000,000 | |||||||||||||
Notes Payable Due on December 15, 2022 [Member] | Advanced Industrial Services, Inc [Member] | ||||||||||||||
Payments to acquire businesses and interest in affiliates | $ 5,000,000 | |||||||||||||
Notes Payable Due on December 15, 2022 [Member] | Fulton Bank [Member] | ||||||||||||||
Loans payable to bank | $ 5,250,000 | $ 5,250,000 | ||||||||||||
Debt instrument interest rate | 4.45% | 4.45% | ||||||||||||
Debt instrument maturity date | Dec. 15, 2022 | |||||||||||||
Long term liabilities | 2,792,590 | |||||||||||||
Short term debt | 610,882 | |||||||||||||
Notes Payable Due on December 15, 2022 [Member] | Fulton Bank [Member] | LIBOR [Member] | ||||||||||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||||||||||
Notes Payable Due on December 15, 2020 [Member] | Advanced Industrial Services, Inc [Member] | ||||||||||||||
Debt instrument maturity date | Dec. 15, 2020 | |||||||||||||
Notes Payable Due on December 15, 2020 [Member] | Fulton Bank [Member] | ||||||||||||||
Loans payable to bank | $ 620,000 | $ 620,000 | ||||||||||||
Business acquisition funded beginning operations | $ 620,000 | |||||||||||||
Debt instrument interest rate | 4.20% | 4.20% | ||||||||||||
Long term liabilities | 198,857 | |||||||||||||
Short term debt | 128,754 | |||||||||||||
Notes Payable Due on December 15, 2020 [Member] | Fulton Bank [Member] | LIBOR [Member] | ||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||||||
Notes Payable Due on May 1, 2023 [Member] | Advanced Industrial Services, Inc [Member] | ||||||||||||||
Debt instrument maturity date | May 1, 2023 | |||||||||||||
Notes Payable Due on May 1, 2023 [Member] | Fulton Bank [Member] | ||||||||||||||
Loans payable to bank | $ 400,000 | |||||||||||||
Debt instrument interest rate | 4.20% | 4.20% | ||||||||||||
Long term liabilities | 324,924 | |||||||||||||
Short term debt | 77,784 | |||||||||||||
Notes Payable Due on May 1, 2023 [Member] | Fulton Bank [Member] | LIBOR [Member] | ||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||||||
Mortgage Payable [Member] | ROB Cemtrex GmbH [Member] | ||||||||||||||
Long term liabilities | 3,505,905 | |||||||||||||
Short term debt | 239,046 | |||||||||||||
Participating mortgage loans, mortgage obligations, amount | $ 5,500,400 | |||||||||||||
Mortgage loans , periodic payment terms | P17Y | |||||||||||||
Mortgage loans , interest rate | 3.00% | |||||||||||||
Mortgage Payable [Member] | EUR [Member] | ROB Cemtrex GmbH [Member] | ||||||||||||||
Participating mortgage loans, mortgage obligations, amount | € | € 4,000,000 | |||||||||||||
Notes Payable [Member] | Advanced Industrial Services, Inc [Member] | ||||||||||||||
Long term liabilities | 126,939 | |||||||||||||
Short term debt | $ 92,484 | |||||||||||||
Debt maturity, description | Upon acquisition of AIS, the Company assumed a promissory note related to the purchase of shares from a former shareholder in 2011. The note requires ten annual payments of principal plus interest at treasury bill rates. The note matures in 2022. | |||||||||||||
Notes Payable [Member] | Unrelated Third Party [Member] | ||||||||||||||
Debt instrument interest rate | 10.00% | |||||||||||||
Notes payable | $ 1,528,000 | |||||||||||||
Notes Payable [Member] | Unrelated Third Party [Member] | Subsequent Event [Member] | ||||||||||||||
Reclassified to long term liability notes payable | $ 745,352 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) | Jun. 10, 2019USD ($) | Mar. 22, 2019$ / sharesshares | Mar. 22, 2019$ / sharesshares | Jan. 28, 2019$ / sharesshares | Dec. 19, 2018$ / shares | Nov. 26, 2018USD ($)d$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Sep. 30, 2018$ / sharesshares |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||||
Preferred stock, par or stated value per share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued | 3,110,718 | 3,110,718 | 2,914,168 | |||||||
Preferred stock, shares outstanding | 3,110,718 | 3,110,718 | 2,914,168 | |||||||
Proceeds from issuance of offering | $ | $ 490,237 | |||||||||
Common stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | |||||||
Common stock, par or stated value per share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Common stock, shares, issued | 2,594,239 | 2,594,239 | 1,621,719 | |||||||
Common stock, shares, outstanding | 2,594,239 | 2,594,239 | 1,621,719 | |||||||
At-the-Market Offering Agreement [Member] | ||||||||||
Number of stock shares issued | 34,547 | |||||||||
Securities Purchase Agreement [Member] | ||||||||||
Number of stock shares issued | 2,500 | |||||||||
Subscription Rights Offering [Member] | ||||||||||
Sales of stock, price per share | $ / shares | $ 0.75 | $ 1.06 | ||||||||
Sales of stock, shares | 2,547,170 | |||||||||
Weighted average price, percentage | 95.00% | |||||||||
Debt instrument trading days | d | 5 | |||||||||
Debt instrument expire date | Dec. 21, 2018 | |||||||||
Subscription Rights Offering [Member] | Maximum [Member] | ||||||||||
Proceeds from issuance of offering | $ | $ 2,700,000 | |||||||||
Short-Term Note Payable [Member] | Advisory Group Equity Services, Ltd [Member] | ||||||||||
Number of stock shares issued | 201,002 | |||||||||
Number of stock shares issued, value | $ | $ 150,721 | |||||||||
Offering expenses | $ | $ 12,027 | 12,027 | ||||||||
Net proceeds from issuance of offering | $ | $ 138,694 | |||||||||
Short-Term Note Payable [Member] | Advisory Group Equity Services, Ltd [Member] | RHK Capital [Member] | ||||||||||
Number of stock shares issued | 276,372 | |||||||||
Proceeds from issuance of offering | $ | $ 209,974 | |||||||||
Common stock, par or stated value per share | $ / shares | $ 0.001 | |||||||||
Common stock, shares, issued | 2,000,000 | 223,628 | 223,628 | |||||||
Offering expenses | $ | $ 6,296 | $ 6,296 | ||||||||
Net proceeds from issuance of offering | $ | $ 203,679 | |||||||||
Percentage of commission of gross proceeds | 3.00% | |||||||||
Short-Term Note Payable [Member] | Advisory Group Equity Services, Ltd [Member] | Before Reverse Stock Split [Member] | ||||||||||
Number of stock shares issued | 25,125 | |||||||||
Short-Term Note Payable [Member] | Advisory Group Equity Services, Ltd [Member] | Before Reverse Stock Split [Member] | RHK Capital [Member] | ||||||||||
Number of stock shares issued | 34,547 | |||||||||
Common stock, shares, issued | 27,953 | 27,953 | ||||||||
Subscription Rights Offering [Member] | ||||||||||
Number of stock shares issued | 25,126 | |||||||||
Held in Trust [Member] | ||||||||||
Number of stock shares issued | 27,953 | |||||||||
Issued upon Conversion of Series B Preferred Stock [Member] | ||||||||||
Number of stock shares issued | 175,562 | |||||||||
Issued to Found up Partial Shares [Member] | ||||||||||
Number of stock shares issued | 3,338 | |||||||||
Short-Term Note Payable [Member] | ||||||||||
Number of stock shares issued | 703,494 | |||||||||
Number of stock shares issued, value | $ | $ 1,823,673 | |||||||||
Series 1 Preferred Stock [Member] | ||||||||||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 | 3,000,000 | |||||||
Preferred stock, par or stated value per share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued | 2,110,718 | 2,110,718 | 1,914,168 | |||||||
Preferred stock, shares outstanding | 2,110,718 | 2,110,718 | 1,914,168 | |||||||
Shares of preferred stock for dividends | 196,550 | |||||||||
Dividends paid to preferred shareholders | $ | $ 1,965,500 | |||||||||
Series A Preferred Stock [Member] | ||||||||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | |||||||
Preferred stock, par or stated value per share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued | 1,000,000 | 1,000,000 | 1,000,000 | |||||||
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 | 1,000,000 | |||||||
Series B Preferred Stock [Member] | ||||||||||
Preferred stock, shares issued | ||||||||||
Preferred stock, shares outstanding | ||||||||||
Number of stock shares issued | 2,500 | 1,384,485 | ||||||||
Warrants to purchase common stock | 25,000 | 25,000 | ||||||||
Conversion of stock, shares issued | 2,100 | |||||||||
Shares issued, price per share | $ / shares | $ 500 | $ 500 | ||||||||
Conversion of stock, shares converted | 700 | |||||||||
Amortized deemed dividend | $ | $ 130,190 | |||||||||
Number of shares repurchased during period, value | $ | $ 1,000,000 | |||||||||
Legal costs | $ | $ 666,667 | |||||||||
Series B Preferred Stock [Member] | Before Reverse Stock Split [Member] | ||||||||||
Number of stock shares issued | 175,562 | |||||||||
Series B Preferred Stock [Member] | Unaffiliated Institutional Investor [Member] | ||||||||||
Number of stock shares issued | 1,050 | |||||||||
Warrants to purchase common stock | 2,500 | 2,500 | ||||||||
Conversion of stock, shares issued | 25,000 | |||||||||
Mezzaine equity, maturity term | 1 year | |||||||||
Payment of dividend percentage | 7.50% | |||||||||
Increase in percentage based on occurrence of events | 10.00% | |||||||||
Gross proceeds from issuance of shares | $ | $ 500,000 | |||||||||
Stock offering expenses | $ | 25,000 | |||||||||
Proceeds from issuance of offering | $ | $ 475,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Share-based compensation expense | $ 39,983 | $ 0 | $ 112,200 | $ 0 |
Unrecognized compensation cost | $ 76,375 | $ 76,375 | ||
Unrecognized compensation expense, expected to be recognized period | 2 years |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2019USD ($)ft² | Jun. 30, 2019EUR (€)ft² | Jun. 30, 2019USD ($)ft² | Jun. 30, 2019EUR (€)ft² | Jun. 30, 2019INR (₨)ft² | |
Commitments and Contingencies Disclosure [Line Items] | |||||
Area of land | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
Lease and rental expense per month | $ | $ 130,000 | ||||
Lease expiration date | Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | ||
Industrial Technology [Member] | Office and Warehouse Space [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Area of land | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
Lease and rental expense per month | $ | $ 2,200 | ||||
Industrial Technology [Member] | Warehouse One [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Area of land | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 |
Lease and rental expense per month | $ | $ 7,300 | ||||
Lease expiration date | Dec. 13, 2022 | Dec. 13, 2022 | Dec. 13, 2022 | ||
Lease term | 7 years | 7 years | 7 years | 7 years | 7 years |
Industrial Technology [Member] | Office and Warehouse Space One [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Area of land | 43,000 | 43,000 | 43,000 | 43,000 | 43,000 |
Lease and rental expense per month | $ | $ 21,825 | ||||
Lease expiration date | Dec. 13, 2022 | Dec. 13, 2022 | Dec. 13, 2022 | ||
Lease term | 7 years | 7 years | 7 years | 7 years | 7 years |
Industrial Technology [Member] | Warehouse Two [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Area of land | 15,500 | 15,500 | 15,500 | 15,500 | 15,500 |
Lease and rental expense per month | $ | $ 4,555 | ||||
Lease expiration date | Aug. 31, 2019 | Aug. 31, 2019 | Aug. 31, 2019 | ||
Lease term | 1 year | 1 year | 1 year | 1 year | 1 year |
Electronics Manufacturing Services Group [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Area of land | 70,000 | 70,000 | 70,000 | 70,000 | 70,000 |
Electronics Manufacturing [Member] | Manufacturing Facility [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Area of land | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 |
Lease and rental expense per month | $ | $ 9,363 | ||||
Lease expiration date | May 31, 2029 | May 31, 2029 | May 31, 2029 | ||
Lease term | 10 years | 10 years | 10 years | 10 years | 10 years |
Electronics Manufacturing [Member] | Manufacturing Facility [Member] | EUR [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Lease and rental expense per month | € | € 8,000 | ||||
Advanced Technologies [Member] | Office and Warehouse Space [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Area of land | 6,700 | 6,700 | 6,700 | 6,700 | 6,700 |
Lease and rental expense per month | $ | $ 6,265 | ||||
Lease expiration date | Sep. 6, 2019 | Sep. 6, 2019 | Sep. 6, 2019 | ||
Advanced Technologies [Member] | Office and Warehouse Space [Member] | INR [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Lease and rental expense per month | ₨ | ₨ 454,365 | ||||
Advanced Technologies [Member] | Office and Warehouse Space One [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Area of land | 27,000 | 27,000 | 27,000 | 27,000 | 27,000 |
Lease and rental expense per month | $ | $ 25,480 | ||||
Lease expiration date | Apr. 30, 2020 | Apr. 30, 2020 | |||
Lease term | 5 years | 5 years | 5 years | 5 years | 5 years |
Advanced Technologies [Member] | Office and Warehouse Space Two [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Area of land | 9,400 | 9,400 | 9,400 | 9,400 | 9,400 |
Lease and rental expense per month | $ | $ 87,745 | ||||
Lease expiration date | Mar. 24, 2031 | Mar. 24, 2031 | |||
Lease term | 15 years | 15 years | 15 years | 15 years | 15 years |
Advanced Technologies [Member] | Office and Warehouse Space Two [Member] | EUR [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Lease and rental expense per month | € | € 69,250 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Aug. 15, 2019EUR (€) | Jul. 02, 2019USD ($)$ / sharesshares | Aug. 19, 2019USD ($)shares | Jul. 31, 2019USD ($)shares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Sep. 30, 2018$ / shares |
Common stock, par or stated value per share | $ / shares | $ 0.001 | $ 0.001 | |||||
Proceeds from issuance of offering | $ | $ 490,237 | ||||||
Securities Purchase Agreement [Member] | |||||||
Number of common stock shares issued | shares | 2,500 | ||||||
Subsequent Event [Member] | |||||||
Number of common stock shares issued | shares | 548,655 | 548,655 | |||||
Notes payable | $ | $ 1,023,634 | $ 1,023,634 | |||||
Subsequent Event [Member] | ROB Cemtrex GmbH, ROB Systems Srl, ROB Cemtrex Assets UG, ROB Cemtrex Logistics GmbH [Member] | |||||||
Sale of stock | € | € 6,367,199 | ||||||
Subsequent Event [Member] | Securities Purchase Agreement [Member] | |||||||
Number of common stock shares issued | shares | 224,215 | ||||||
Common stock, par or stated value per share | $ / shares | $ 0.001 | ||||||
Shares issued, price per share | $ / shares | $ 2.23 | ||||||
Percentage of commission paid to placement agent | 5.00% | ||||||
Proceeds from issuance of offering | $ | $ 467,500 |