Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2021 | Jun. 18, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | CEMTREX INC | |
Entity Central Index Key | 0001435064 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
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 Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,711,463 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Current assets | ||
Cash and equivalents | $ 15,573,734 | $ 19,490,061 |
Restricted cash | 1,706,926 | 1,582,798 |
Short-term investments | 522,612 | 887,746 |
Trade receivables, net | 5,403,292 | 6,686,797 |
Trade receivables - related party | 1,498,776 | 1,432,209 |
Inventory -net of allowance for inventory obsolescence | 7,358,808 | 6,793,806 |
Prepaid expenses and other assets | 1,820,031 | 1,188,317 |
Total current assets | 33,884,179 | 38,061,734 |
Property and equipment, net | 7,335,201 | 6,961,751 |
Right-of-use assets | 2,862,154 | 2,728,380 |
Assets held for sale | 8,323,321 | 8,323,321 |
Goodwill | 5,886,096 | 4,370,894 |
Other | 1,074,861 | 744,207 |
Total Assets | 59,365,812 | 61,190,287 |
Current liabilities | ||
Accounts payable | 2,314,545 | 2,857,817 |
Short-term liabilities | 6,595,935 | 7,034,510 |
Lease liabilities - short-term | 764,108 | 721,036 |
Deposits from customers | 96,468 | 29,660 |
Accrued expenses | 2,676,724 | 2,392,487 |
Deferred revenue | 1,473,041 | 1,651,784 |
Accrued income taxes | 553 | 89,318 |
Total current liabilities | 13,921,374 | 14,776,612 |
Long-term liabilities | ||
Loans payable to bank | 1,323,989 | 1,871,201 |
Long-term lease liabilities | 2,106,545 | 2,027,406 |
Notes payable | 3,154,743 | 6,029,999 |
Mortgage payable | 2,306,834 | 2,355,542 |
Other long-term liabilities | 1,075,171 | 1,063,733 |
Paycheck Protection Program Loans | 5,406,477 | 2,169,437 |
Deferred Revenue - long-term | 784,667 | 467,329 |
Total long-term liabilities | 16,158,426 | 15,984,647 |
Total liabilities | 30,079,800 | 30,761,259 |
Commitments and contingencies | ||
Shareholders' equity | ||
Preferred stock value | 1,795 | 2,157 |
Common stock, $0.001 par value, 50,000,000 shares authorized, 18,711,463 shares issued and outstanding at March 31, 2021 and 17,622,539 shares issued and outstanding at September 30, 2020 | 18,711 | 17,623 |
Additional paid-in capital | 58,320,570 | 60,221,766 |
Retained earnings (accumulated deficit) | (31,758,563) | (32,520,084) |
Treasury stock at cost | (148,291) | (148,291) |
Accumulated other comprehensive income (loss) | 1,824,350 | 1,777,112 |
Total Cemtrex stockholders' equity | 28,258,622 | 29,351,383 |
Non-controlling interest | 1,027,390 | 1,077,645 |
Total liabilities and shareholders' equity | 59,365,812 | 61,190,287 |
Series A and C Preferred Stock [Member] | ||
Shareholders' equity | ||
Preferred stock value | $ 50 | $ 100 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 30, 2020 | Oct. 03, 2019 |
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued | 1,845,004 | 3,364,953 | ||
Preferred stock, shares outstanding | 1,845,004 | 3,364,953 | ||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 | ||
Common stock, shares issued | 18,711,463 | 17,622,539 | ||
Common stock, shares outstanding | 18,711,463 | 17,622,539 | ||
Series 1 Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 | 4,000,000 | |
Preferred stock, shares issued | 1,795,004 | 2,156,784 | ||
Preferred stock, shares outstanding | 1,795,004 | 2,156,784 | ||
Preferred stock, liquidation value | $ 10 | $ 10 | ||
Series A Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
Preferred stock, shares issued | 0 | 1,000,000 | ||
Preferred stock, shares outstanding | 0 | 1,000,000 | ||
Preferred Stock Series C [Member] | ||||
Preferred stock, par value | $ 0.001 | |||
Preferred stock, shares authorized | 100,000 | 100,000 | 100,000 | |
Preferred stock, shares issued | 50,000 | 100,000 | ||
Preferred stock, shares outstanding | 50,000 | 100,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 9,260,385 | $ 12,113,847 | $ 18,096,461 | $ 24,333,930 |
Cost of revenues | 5,331,501 | 6,767,743 | 10,162,107 | 13,639,340 |
Gross profit | 3,928,884 | 5,346,104 | 7,934,354 | 10,694,590 |
Operating expenses | ||||
General and administrative | 5,249,985 | 5,458,071 | 10,667,181 | 10,032,481 |
Research and development | 641,497 | 404,933 | 1,275,722 | 781,519 |
Total operating expenses | 5,891,482 | 5,863,004 | 11,942,903 | 10,814,000 |
Operating income/(loss) | (1,962,598) | (516,900) | (4,008,549) | (119,410) |
Other income/(expense) | ||||
Other income/(expense) | 1,679,944 | 447,792 | 2,630,932 | 672,117 |
Settlement Agreement - Related Party | 3,674,165 | 3,674,165 | ||
Interest Expense | (849,076) | (1,348,298) | (1,458,017) | (1,830,820) |
Total other income/(expense), net | 4,505,033 | (900,506) | 4,847,080 | (1,158,703) |
Net loss before income taxes | 2,542,435 | (1,417,406) | 838,531 | (1,278,113) |
Income tax benefit/(expense) | (98,477) | (189,543) | (127,431) | (189,543) |
Net income/(loss) | 2,443,958 | (1,606,949) | 711,100 | (1,467,656) |
Less income in noncontrolling interest | (10,174) | (7,848) | (50,421) | 187,063 |
Net income/(loss) attributable to Cemtrex, Inc. shareholders | 2,454,132 | (1,599,101) | 761,521 | (1,654,719) |
Net income/(loss) | 2,443,958 | (1,606,949) | 711,100 | (1,467,656) |
Other comprehensive income/(loss) | ||||
Foreign currency translation gain/(loss) | (87,972) | (749,826) | (40,491) | (166,800) |
Defined benefit plan actuarial gain/(loss) | 87,895 | 87,895 | ||
Comprehensive income/(loss) | 2,443,881 | (2,356,775) | 758,504 | (1,634,456) |
Less comprehensive income/(loss) attributable to noncontrolling interest | 19,625 | (897) | 50,255 | (214,237) |
Comprehensive income/(loss) attributable to Cemtrex, Inc. shareholders | $ 2,424,256 | $ (2,355,878) | $ 708,249 | $ (1,420,219) |
Income/(loss) Per Share-Basic | $ 0.13 | $ (0.26) | $ 0.04 | $ (0.31) |
Income/(loss) Per Share-Diluted | $ 0.13 | $ (0.26) | $ 0.04 | $ (0.31) |
Weighted Average Number of Shares-Basic | 18,559,113 | 6,250,761 | 18,195,731 | 5,292,167 |
Weighted Average Number of Shares-Diluted | 18,629,064 | 6,250,761 | 18,200,974 | 5,292,167 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Series 1 Preferred Stock [Member] | Preferred Stock Series C [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock At Cost [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Series A Preferred Stock [Member] | Total | Noncontrolling Interest [Member] |
Balance at Sep. 30, 2019 | $ 2,111 | $ 3,963 | $ 39,339,862 | $ (23,679,587) | $ 1,791,153 | $ 1,000 | $ 17,458,502 | $ 885,874 | ||
Balance, shares at Sep. 30, 2019 | 2,110,718 | 3,962,790 | 1,000,000 | |||||||
Foreign currency translation gain/(loss) | 582,156 | 582,156 | ||||||||
Share-based compensation | $ 100 | 119,004 | 119,104 | |||||||
Share-based compensation, shares | 100,000 | |||||||||
Shares issued to pay accounts payable | $ 18 | 27,520 | 27,538 | |||||||
Shares issued to pay accounts payable, shares | 18,358 | |||||||||
Shares sold in Securities Purchase Agreements, net of offering costs | $ 338 | 359,712 | 360,050 | |||||||
Shares sold in Securities Purchase Agreements, net of offering costs, shares | 338,393 | |||||||||
Shares issued to pay notes payable | $ 105 | 130,147 | 130,252 | |||||||
Shares issued to pay notes payable, shares | 105,042 | |||||||||
Dividends paid in Series 1 preferred shares | $ 106 | (106) | ||||||||
Dividends paid in Series 1 preferred shares, shares | 105,965 | |||||||||
Net income/(loss) attributable to noncontrolling interest | 194,911 | |||||||||
Comprehensive income/(loss) attributable to noncontrolling interest | (18,429) | |||||||||
Net income (loss) | (55,618) | (55,618) | ||||||||
Balance at Dec. 31, 2019 | $ 2,217 | $ 100 | $ 4,424 | 39,976,139 | (23,735,205) | 2,373,309 | $ 1,000 | 18,621,984 | 1,062,356 | |
Balance, shares at Dec. 31, 2019 | 2,216,683 | 100,000 | 4,424,583 | 1,000,000 | ||||||
Balance at Sep. 30, 2019 | $ 2,111 | $ 3,963 | 39,339,862 | (23,679,587) | 1,791,153 | $ 1,000 | 17,458,502 | 885,874 | ||
Balance, shares at Sep. 30, 2019 | 2,110,718 | 3,962,790 | 1,000,000 | |||||||
Net income/(loss) attributable to noncontrolling interest | 187,063 | |||||||||
Net income (loss) | (1,654,719) | |||||||||
Balance at Mar. 31, 2020 | $ 2,217 | $ 100 | $ 7,940 | 44,831,093 | (25,334,306) | (190,483) | 1,624,380 | $ 1,000 | 20,941,941 | 1,045,763 |
Balance, shares at Mar. 31, 2020 | 2,216,683 | 100,000 | 7,939,628 | 1,000,000 | ||||||
Balance at Dec. 31, 2019 | $ 2,217 | $ 100 | $ 4,424 | 39,976,139 | (23,735,205) | 2,373,309 | $ 1,000 | 18,621,984 | 1,062,356 | |
Balance, shares at Dec. 31, 2019 | 2,216,683 | 100,000 | 4,424,583 | 1,000,000 | ||||||
Foreign currency translation gain/(loss) | (748,929) | (748,929) | ||||||||
Share-based compensation | 24,104 | 24,104 | ||||||||
Shares sold in Securities Purchase Agreements, net of offering costs | $ 847 | 1,160,253 | 1,161,100 | |||||||
Shares sold in Securities Purchase Agreements, net of offering costs, shares | 847,000 | |||||||||
Shares issued to pay notes payable | $ 2,519 | 3,499,747 | 3,502,266 | |||||||
Shares issued to pay notes payable, shares | 2,518,045 | |||||||||
Shares issued for services | $ 150 | 170,850 | 171,000 | |||||||
Shares issued for services, shares | 150,000 | |||||||||
Purchase of treasury stock | (190,483) | (190,483) | ||||||||
Net income/(loss) attributable to noncontrolling interest | (7,848) | (16,593) | ||||||||
Net income (loss) | (1,599,101) | (1,599,101) | ||||||||
Balance at Mar. 31, 2020 | $ 2,217 | $ 100 | $ 7,940 | 44,831,093 | (25,334,306) | (190,483) | 1,624,380 | $ 1,000 | 20,941,941 | 1,045,763 |
Balance, shares at Mar. 31, 2020 | 2,216,683 | 100,000 | 7,939,628 | 1,000,000 | ||||||
Balance at Sep. 28, 2020 | $ 2,157 | $ 100 | $ 17,623 | 63,313,336 | (33,172,690) | (148,291) | 853,643 | $ 1,000 | 28,269,693 | 1,077,645 |
Balance, shares at Sep. 28, 2020 | 2,156,784 | 100,000 | 17,622,539 | 1,000,000 | ||||||
Adjustment | (3,091,570) | 652,606 | 923,469 | |||||||
Balance at Sep. 30, 2020 | $ 2,157 | $ 100 | $ 17,623 | 60,221,766 | (32,520,084) | (148,291) | 1,777,112 | $ 1,000 | 29,351,383 | 1,077,645 |
Balance, shares at Sep. 30, 2020 | 2,156,784 | 100,000 | 17,622,539 | 1,000,000 | ||||||
Foreign currency translation gain/(loss) | 37,864 | 37,864 | ||||||||
Share-based compensation | 16,071 | 16,071 | ||||||||
Shares issued to pay accounts payable | $ 345 | 407,507 | 407,852 | |||||||
Shares issued to pay accounts payable, shares | 345,638 | |||||||||
Dividends paid in Series 1 preferred shares | $ 108 | (108) | ||||||||
Dividends paid in Series 1 preferred shares, shares | 108,169 | |||||||||
Net income/(loss) attributable to noncontrolling interest | (40,247) | |||||||||
Comprehensive income/(loss) attributable to noncontrolling interest | 9,617 | |||||||||
Net income (loss) | (1,692,611) | (1,692,611) | ||||||||
Balance at Dec. 31, 2020 | $ 2,265 | $ 100 | $ 17,968 | 60,645,236 | (34,212,695) | (148,291) | 1,814,976 | $ 1,000 | 28,120,559 | 1,047,015 |
Balance, shares at Dec. 31, 2020 | 2,264,953 | 100,000 | 17,968,177 | 1,000,000 | ||||||
Balance at Sep. 30, 2020 | $ 2,157 | $ 100 | $ 17,623 | 60,221,766 | (32,520,084) | (148,291) | 1,777,112 | $ 1,000 | 29,351,383 | 1,077,645 |
Balance, shares at Sep. 30, 2020 | 2,156,784 | 100,000 | 17,622,539 | 1,000,000 | ||||||
Net income/(loss) attributable to noncontrolling interest | (50,421) | |||||||||
Net income (loss) | 761,521 | |||||||||
Balance at Mar. 31, 2021 | $ 1,795 | $ 50 | $ 18,711 | 58,320,570 | (31,758,563) | (148,291) | 1,824,350 | 28,258,622 | 1,027,390 | |
Balance, shares at Mar. 31, 2021 | 1,795,004 | 50,000 | 18,711,463 | |||||||
Balance at Dec. 31, 2020 | $ 2,265 | $ 100 | $ 17,968 | 60,645,236 | (34,212,695) | (148,291) | 1,814,976 | $ 1,000 | 28,120,559 | 1,047,015 |
Balance, shares at Dec. 31, 2020 | 2,264,953 | 100,000 | 17,968,177 | 1,000,000 | ||||||
Foreign currency translation gain/(loss) | (78,521) | (78,521) | ||||||||
Defined benefit plan actuarial gain/(loss) | 87,895 | 87,895 | ||||||||
Share-based compensation | 49,246 | 49,246 | ||||||||
Shares issued to pay notes payable | $ 743 | 1,298,733 | 1,299,476 | |||||||
Shares issued to pay notes payable, shares | 743,286 | |||||||||
Shares and options surrendered in settlement agreement | $ (470) | $ (50) | (3,672,645) | $ (1,000) | (3,674,165) | |||||
Shares and options surrendered in settlement agreement, shares | (469,949) | (50,000) | (1,000,000) | |||||||
Net income/(loss) attributable to noncontrolling interest | (10,174) | (19,625) | ||||||||
Net income (loss) | 2,454,132 | 2,454,132 | ||||||||
Balance at Mar. 31, 2021 | $ 1,795 | $ 50 | $ 18,711 | $ 58,320,570 | $ (31,758,563) | $ (148,291) | $ 1,824,350 | $ 28,258,622 | $ 1,027,390 | |
Balance, shares at Mar. 31, 2021 | 1,795,004 | 50,000 | 18,711,463 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income/(loss) | $ 711,100 | $ (1,467,656) |
Adjustments to reconcile net loss to net cash provided/(used) by operating activities: | ||
Depreciation and amortization | 680,004 | 888,391 |
Gain on disposal of property and equipment | 9,219 | 311 |
Amortization of right-of-use assets | 438,539 | 281,758 |
Change in allowance for inventory obsolescence | (948,733) | (19,569) |
Change in allowance for doubtful accounts | (137,356) | (6,416) |
Share-based compansation | 65,318 | 143,208 |
Income tax expense/ (benefit) | 127,431 | 189,543 |
Interest expense paid in equity shares | 657,329 | 1,004,518 |
Accrued interest on notes payable | 41,833 | 291,384 |
Amortization of original issue discounts on notes payable | 475,000 | 317,667 |
Gain on marketable securities | (1,869,338) | (338,057) |
Settlement Agreement - Related Party | (3,674,165) | |
Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: | ||
Accounts receivable | 1,420,861 | (62,013) |
Accounts receivable - related party | (71,581) | (90) |
Inventory | 383,731 | (419,711) |
Prepaid expenses and other curent asstets | (631,714) | (297,176) |
Other assets | 169,346 | (834,561) |
Other liabilities | 11,438 | (90,121) |
Accounts payable | (543,272) | (854,616) |
Operating lease liabilities | (450,102) | (293,138) |
Deposits from customers | 66,808 | 9,166 |
Accrued expenses | 161,820 | (143,160) |
Deferred revenue | 138,595 | 227,172 |
Income taxes payable | (88,765) | 102,463 |
Net cash used by operating activities | (2,856,654) | (1,370,703) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (944,601) | (4,340,023) |
Investment in Virtual Driver Interactive | (900,000) | |
Investment in MasterpieceVR | (500,000) | |
Proceeds from sale of marketable securities | 7,080,375 | 13,083,547 |
Purchase of marketable securities | (4,845,903) | (12,347,199) |
Purchases of treasury stock | (190,483) | |
Note Receivable - Related party | ||
Net cash used by investing activities | (110,129) | (3,794,158) |
Cash Flows from Financing Activities | ||
Proceeds from notes payable | 2,990,000 | |
Payments on notes payable | (2,070,257) | (676,640) |
Proceeds on bank loans | 2,476,000 | |
Payments on bank loans | (655,276) | (133,414) |
Proceeds from Paycheck Protection Program Loans | 1,970,785 | |
Proceeds from securities purchase agreements | 1,580,100 | |
Expenses on securities purchase agreements | (58,950) | |
Revolving line of credit | 387,598 | |
Net cash provided/(used) by financing activities | (754,748) | 6,564,694 |
Effect of currency translation | (70,668) | (193,974) |
Net increase in cash, cash equivalents, and restricted cash | (3,721,531) | 1,399,833 |
Cash, cash equivalents, and restricted cash at beginning of period | 21,072,859 | 2,858,085 |
Cash, cash equivalents, and restricted cash at end of period | 17,280,660 | 4,063,944 |
Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash | ||
Cash and equivalents | 15,573,734 | 2,809,591 |
Restricted cash | 1,706,926 | 1,254,353 |
Total cash, cash equivalents, and restricted cash | 17,280,660 | 4,063,944 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 283,855 | 342,268 |
Cash paid during the period for income taxes | 88,765 | 188 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Investment in Virtual Driver Interactive | 439,774 | |
Stock issued to pay for products and/or services | 198,583 | |
Stock issued to pay notes payable | $ 1,707,327 | $ 3,632,518 |
Organization and Plan of Operat
Organization and Plan of Operations | 6 Months Ended |
Mar. 31, 2021 | |
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 into a leading multi-industry technology company. The Company has expanded in a wide range of sectors, including smart technologies, virtual and augmented realities, 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. The Company continuously assesses the composition of its portfolio businesses to ensure it is aligned with its strategic objectives and positioned to maximize growth and return in the coming years. During fiscal 2018, the Company made a strategic decision to exit its Electronics Manufacturing group by selling all companies in that business segment on August 15, 2019. Accordingly, the Company has reported the results of the Electronics Manufacturing business as discontinued operations in the Consolidated Statements of Operations and in the Consolidated Balance Sheets. These changes have been applied for all periods presented. During fiscal 2019, the Company also reached a strategic decision to exit the environmental products business, which was part of the Industrial Services Segment. Accordingly, the Company has reported the results of the environmental control products business as discontinued operations in the Consolidated Statements of Operations and in the Consolidated Balance Sheets. Now the Company has two business segments, consisting of (i) Advanced Technologies (AT) and (ii) Industrial Services (IS). Advanced Technologies (AT) Cemtrex’s Advanced Technologies segment delivers cutting-edge technologies in the Internet of Things (IoT) and Smart Devices, such as the SmartDesk. Through the Company’s advanced engineering and product design, the Company delivers Virtual Reality (VR) and Augmented Reality (AR) solutions that provide higher productivity, progressive design and impactful experiences for consumer products, and various commercial and industrial applications. The Company is in the process of developing its own virtual reality applications for commercialization over the next couple years. The AT business segment also includes the Company’s majority owned subsidiary, Vicon Industries, which provides end-to-end security solutions to meet the toughest corporate, industrial and governmental security challenges. Vicon’s products include browser-based video monitoring systems and analytics-based recognition systems, cameras, servers, and access control systems for every aspect of security and surveillance in industrial and commercial facilities, federal prisons, hospitals, universities, schools, and federal and state government offices. Vicon provides cutting edge, mission critical security and video surveillance solutions utilizing Artificial Intelligence (AI) based data algorithms. Industrial Services (IS) Cemtrex’s IS segment, offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. We install high precision equipment in a wide variety of industrial markets like automotive, printing & graphics, industrial automation, packaging, and chemicals, among others. We are a leading provider of reliability-driven maintenance and contracting solutions for the machinery, packaging, printing, chemical, and other manufacturing markets. The focus is on customers seeking to achieve greater asset utilization and reliability to cut costs and increase production from existing assets, including small projects, sustaining capital, turnarounds, maintenance, specialty welding services, and high-quality scaffolding. Acquisition of Virtual Driver Interactive On October 26, 2020, the company acquired Virtual Driver Interactive (“VDI”), a California based provider of innovative driver training simulation solutions for a purchase price of $1,339,774 plus contingent consideration. For over 10 years, VDI has been known for its effective and engaging driver training systems, designed for users of all ages and skill levels. The Company offers comprehensive training for new teen and novice drivers, along with advanced training for corporate fleets and truck drivers. VDI’s wide range of training courses and system options provide customers with highly portable, affordable and effective solutions, all while focusing on the dangers of distracted driving. Result for VDI will be reported under the AT segment. The Company paid $900,000 in cash and issued a Note payable in the amount of $439,774. This note carries interest of 5% and is payable in two installments of $239,774 plus accumulated interest on October 26, 2021, and $200,000 plus accumulated interest on October 26, 2022. Additionally, the Company paid contingent consideration of $175,428 in May 2021. There is no further contingent consideration specified in the purchase agreement. The Company has accounted for this acquisition as a business combination and is in the process of calculating the allocation of purchase price. All amounts paid have been included in goodwill in the accompanying condensed consolidated balance sheet. Strategic Investment On November 13, 2020, Cemtrex made a $500,000 investment via a simple agreement for future equity(“SAFE”) in MasterpieceVR. The SAFE provides that the Company will automatically receive shares of the entity based on the conversion rate of future equity rounds up to a valuation cap, as defined. MasterpieceVR is a software company that is developing software for content creation using virtual reality. The investment is included in other assets in the accompanying balance sheet and the Company accounts for this investment using the fair value method. No impairment has been recorded for the three and six months ended March 31, 2021. Potential Impacts of COVID-19 on our Business The current COVID-19 pandemic has impacted our business operations and the results of our operations in this fiscal year, primarily with delays in expected orders by many customers and new product development. Overall bookings level in both business segments have been impacted. In addition, due to delays in certain supply chain areas, the expected launch times of our new products and new versions of existing products have been delayed for several months. We are also starting to see the costs of certain components that are facing shortages, increase in price which may affect gross margins. The broader implications of COVID-19 on our results from operations going forward remains uncertain. The COVID-19 pandemic has the potential to cause adverse effects to our customers, suppliers or business partners in locations that have or will experience more pronounced disruptions, which could result in a reduction to future revenue and manufacturing output as well as delays in our new product development activities. The extent of the pandemic’s effect on our operational and financial performance will depend in large part on future developments, which cannot be reasonably estimated at this time. Future developments include the duration, scope and severity of the pandemic, the actions taken to contain or mitigate its impact both within and outside the jurisdictions where we operate, the impact on governmental programs and budgets, the development of treatments or vaccines, and the resumption of widespread economic activity. Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, we are unable to predict with any confidence the likely impact of the COVID-19 pandemic on our future operations. |
Interim Statement Presentation
Interim Statement Presentation | 6 Months Ended |
Mar. 31, 2021 | |
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, 2020, of Cemtrex Inc. The accompanying condensed consolidated balance sheet has been derived from the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended September 30, 2020, adjusted and restated as further discussed in Note 2 of these financial statements. Additionally, the Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss), the Condensed Consolidated Statement of Stockholders’ Equity, the Condensed Consolidated Statements of Cash Flows, and notes to the financial statements related to the results of the three and six month periods ended March 31, 2020, have been restated. 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, Cemtrex Advanced Technologies Inc., Cemtrex Ltd., Cemtrex Technologies Pvt. Ltd., Griffin Filters, LLC, Cemtrex XR Inc., and Advanced Industrial Services, Inc. and the Company’s majority owned subsidiary Vicon Industries, Inc. and its subsidiaries, Telesite USA, IQInVision, Vicon Industries Ltd., and Vicon Systems, Ltd. All inter-company balances and transactions have been eliminated in consolidation. Restatement of Financial Statements Background On February 23, 2021, Cemtrex’s Board of Directors determined that certain transactions between Cemtrex Inc. and First Commercial, a company owned by former Executive Director, former Controlling Shareholder and former CFO, Aron Govil, were incorrectly handled and accounted for. The total amount of disputed transfers was approximately $7,100,000 and occurred in fiscal year 2017 in the amount of $5,600,000 and in fiscal year 2018 in the amount of $1,500,000. Cemtrex did not find any other such transfers during this period or thereafter, upon further review of the Company’s records. Upon the Company’s investigation into this matter, the Company has determined that there were inaccuracies in the Company’s financial statements. The financials for the periods 2017 and 2018 were incorrect corresponding to the amounts that were incorrectly accounted for, and subsequent years were affected by the roll forward effects of these entries. The Company found unsupported advertising expenses in the amount of approximately $400,000 on Cemtrex Inc’s income statement for fiscal year 2018 and found that approximately $5,700,000 of intangible assets and $975,000 of research and development expenses, as translated at from Indian Rupee at the time, were recorded on Cemtrex India’s financial statements in fiscal year 2018 and could not be substantiated. The total amount of unsubstantiated transfers recorded by Cemtrex India and the unsupported advertising expense recorded by Cemtrex, Inc. sums to $7,100,000, corresponding with the total amount in question regarding First Commercial transfers during fiscal years 2017 and 2018. As part of the restatement investigation, it was determined that the Company did not follow GAAP in the treatment of its Series 1 Preferred dividends. The Company currently has a deficit in retained earnings and in accordance with guidance has reversed the accrual for dividends payable and placed the amount of the accrual back into retained earnings. Position and Adjusting Entries The Company has determined that these transactions are not material in the years that they occurred and conclude that prior financial reports can be relied upon. The Company’s determination is based on the following: The adjustments do not cause any changes to the previously reported cash and debt balances as of the end of each of the periods in FY 2019 and 2020. The adjustments also do not cause any changes to revenues in any of the prior periods. In addition, the Company expects to maintain compliance with its debt covenants based on a preliminary review of the covenants for all the impacted periods. The Company has also determined that the adjustments have little effect on the trend of earnings over the last three fiscal years. In 2017 the operations of the Company were vastly different with both the environmental and circuit board manufacturing segments accounting for approximately 75% of revenues. These businesses are now either sold or discontinued. The current reported 2017 financial statements of the Company do not give an accurate representation of the Company today because only 16% of the $120M business operations are still a part of current operations. The table below represents the balances of the affected accounts on the Condensed Consolidated Balance Sheets as of September 30, 2020, the Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) for the three and six months ended March 31, 2020, Condensed Consolidated Statement of Stockholders’ Equity, and the Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2020. Condensed Consolidated Balance Sheets Balance as reported on September 30, 2020 Adjustment of net value of intangible assets Cumulative effect of derecognition of expenses Loss on amounts transferred to First Commercial Restatement on Dividends Cumulative effect of currency translation Adjusted balance at September 30, 2020 Property and equipment, net $ 9,558,936 $ (2,597,185 ) $ 6,961,751 Series 1 preferred stock dividends payable $ 1,081,690 $ (1,081,690 ) $ - Additional paid-in capital $ 63,313,336 $ (3,091,570 ) $ 60,221,766 Retained earnings (accumulated deficit) $ (33,172,690 ) $ 3,579,346 $ (7,100,000 ) $ 4,173,260 $ (32,520,084 ) Accumulated other comprehensive income $ 853,643 $ 923,469 $ 1,777,112 Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) For the three months ended March 31, 2020 Previously reported Adjustments Adjusted Net Income income/(loss) attributable to Cemtrex, Inc. shareholders $ (1,886,648 ) $ 287,547 $ (1,599,101 ) Foreign currency translation gain/(loss) $ (750,696 ) $ 870 $ (749,826 ) Loss Per Share-Basic $ (0.30 ) $ 0.05 $ (0.26 ) Loss Per Share-Diluted $ (0.30 ) $ 0.05 $ (0.26 ) For the six months ended March 31, 2020 Previously reported Adjustments Adjusted Net loss available to Cemtrex, Inc. shareholders $ (2,203,469 ) $ 548,750 $ (1,654,719 ) Foreign currency translation gain $ (157,377 ) $ (9,423 ) $ (166,800 ) Loss Per Share-Basic $ (0.42 ) $ 0.10 $ (0.31 ) Loss Per Share-Diluted $ (0.42 ) $ 0.10 $ (0.31 ) Condensed Consolidated Statement of Stockholders’ Equity For the six months ended March 31, 2020 Previously reported Adjustments Adjusted Retained earnings (accumulated deficit) at September 30, 2019 $ (20,067,685 ) $ (3,611,902 ) $ (23,679,587 ) Net income/(loss) $ (2,203,469 ) $ 548,750 $ (1,654,719 ) Retained earnings (accumulated deficit) at March 31, 2020 $ (24,357,704 ) $ (976,602 ) $ (25,334,306 ) Accumulated other comprehensive income/(loss)at September 30, 2019 $ 796,004 $ 806,889 $ 1,602,893 Comprehensive income/(loss) $ 564,597 $ (870 ) $ 563,727 Accumulated other comprehensive income/(loss) at March 31, 2020 $ 1,379,030 $ 806,019 $ 2,185,049 Additional paid-in capital $ 46,895,763 $ (2,064,670 ) $ 44,831,093 Condensed Consolidated Statements of Cash Flows For the six months ended March 31, 2020 Previously reported Adjustments Adjusted Net loss $ (2,016,406 ) $ 548,750 $ (1,467,656 ) Depreciation and amortization $ 1,427,718 $ (539,327 ) $ 888,391 Net cash used by operating activities $ (1,380,126 ) $ 9,423 $ (1,370,703 ) Effect of currency translation $ (184,551 ) $ (9,423 ) $ (193,974 ) On February 26, 2021, the Company entered into a Settlement Agreement and Release with Aron Govil regarding these transactions. As part of the Settlement Agreement, Mr. Govil was required to pay the Company consideration of $7,100,000 (the “Settlement Amount”) by entering into the Agreement. The Settlement Amount was satisfied in a combination of Mr. Govil forfeiting certain Preferred Stock and outstanding options and executing a secured note in the amount of $1,533,280. The Independent Board of Directors in coordination with Management concluded the settlement represented fair value. In March 2021, Mr. Govil returned to the Company 1,000,000 shares of Series A Preferred Stock, 50,000 Shares of Series C Preferred Stock, 469,949 shares of Series 1 Preferred Stock, and forfeited all outstanding options to purchase shares of commons stock (collectively, the “Securities”). For the purposes of accounting recognition, the Company determined the fair value of the Series A, Series C, and Series 1 Preferred stock based on the closing trading value of the Series 1 Preferred Stock on the date of the agreement. The options surrendered were valued using the Black-Scholes option pricing model. The Company recognized the gain with respect to the surrendered Securities during this reporting period. The gain of $3,674,165 is reported as Settlement Agreement - Related Party on the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss). As discussed above, Mr. Govil also executed a secured promissory note (the “Note”) in the amount of $1,533,280. The Note matures and is due in full in two years and bears interest at 9% per annum and is secured by all of Mr. Govil’s assets. Mr. Govil also agreed to sign an affidavit confessing judgment in the event of a default on the Note. While the Company believes the note is fully collectible, in accordance with ASC 450-30, Gain Contingencies, the Company determined the gain will not be recognized until the note is paid. Accordingly, the note and associated gain is not presented on the Company’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss). 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, 2020, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Issued Accounting Standards In December 2019, the FASB issued amended guidance, Simplifying the Accounting for Income Taxes, to remove certain exceptions to the general principles from ASC 740 - Income Taxes , In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). The update provides optional guidance for a limited period to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020, through December 31, 2022. The Company adopted this guidance in the second quarter of 2020. The adoption of this guidance had no impact on the Company’s Condensed Consolidated Financial Statements or the related disclosures. |
Loss Per Common Share
Loss Per Common Share | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | NOTE 3 – LOSS PER COMMON SHARE Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants. For the three and six months ended March 31, 2021, and 2020, the following items were excluded from the computation of diluted net loss per common share as their effect is anti-dilutive: For the three months ended For the six months ended March 31, March 31, 2021 2020 2021 2020 Warrants to purchase shares 433,965 433,965 433,965 433,965 Options 880,049 1,050,000 944,757 1,050,000 |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 4 – SEGMENT INFORMATION The Company reports and evaluates financial information for two segments: Advanced Technologies (AT) segment, and the Industrial Services (IS) 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 IS segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers in USA in industries such as: manufacturing, steel, printing, construction, & petrochemical. The following tables summarize the Company’s segment information: For the three months ended For the six months ended March 31, March 31, 2021 2020 2021 2020 Revenues from external customers Advanced Technologies $ 5,487,414 $ 6,186,400 $ 10,160,283 $ 13,411,633 Industrial Services $ 3,772,971 5,927,447 7,936,178 10,922,297 Total revenues $ 9,260,385 $ 12,113,847 $ 18,096,461 $ 24,333,930 Gross profit Advanced Technologies $ 2,646,926 $ 3,331,799 $ 4,993,198 $ 6,874,586 Industrial Services 1,281,958 2,014,305 2,941,156 3,820,004 Total gross profit $ 3,928,884 $ 5,346,104 $ 7,934,354 $ 10,694,590 Operating loss Advanced Technologies $ (1,693,377 ) $ (630,814 ) $ (3,535,723 ) $ (91,275 ) Industrial Services (269,221 ) 113,914 (472,826 ) (28,135 ) Total operating loss $ (1,962,598 ) $ (516,900 ) $ (4,008,549 ) $ (119,410 ) Other income/(expense) Advanced Technologies $ 3,497,148 $ (850,329 ) $ 3,864,383 $ (1,072,396 ) Industrial Services 735,518 (50,177 ) 710,330 (86,307 ) Total other expense $ 4,232,666 $ (900,506 ) $ 4,574,713 $ (1,158,703 ) Depreciation and Amortization (restated) (restated) Advanced Technologies $ 89,746 $ 111,638 $ 205,578 $ 226,740 Industrial Services 229,680 371,524 474,426 661,651 Total depreciation and amortization $ 319,426 $ 483,162 $ 680,004 $ 888,391 March 31, September 30, 2020 2020 (restated) Identifiable Assets Advanced Technologies $ 32,297,470 $ 36,732,018 Industrial Services 18,025,093 15,590,448 Discontinued operations 8,867,821 8,867,821 Total Assets $ 59,190,384 $ 61,190,287 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 5 – FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy is applied to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the guidance for fair value measurements are described below: Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Our Level 1 assets include cash equivalents, banker’s acceptances, trading securities investments and investment funds. We measure trading securities investments and investment funds at quoted market prices as they are traded in an active market with sufficient volume and frequency of transactions. Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified contractual term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. Level 3 assets and liabilities include cost method investments. Quantitative information for Level 3 assets and liabilities reviewed at each reporting period includes indicators of significant deterioration in the earnings performance, credit rating, asset quality, business prospects of the investee, and financial indicators of the investee’s ability to continue as a going concern. The Company’s fair value assets at March 31, 2021 are as follows. Quoted Prices in Active Significant Markets for Other Significant Balance Identical Observable Unobservable as of (Level 1) (Level 2) (Level 3) 2021 Assets Investment in marketable securities (included in short-term investments) $ 522,612 $ - $ - $ 522,612 Investment in MasterpieceVR $ 500,000 $ 500,000 (included in Other assets) $ 522,612 $ - $ 500,000 $ 1,022,612 |
Restricted Cash
Restricted Cash | 6 Months Ended |
Mar. 31, 2021 | |
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 $1,549,511 as of March 31, 2021. Additionally, the Company has a standby letter of credit for deposit on a building lease and payable against. a money market account, the amount of the standby letter of credit is $157,415. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Accounts Receivable, Net | NOTE 7 – ACCOUNTS RECEIVABLE, NET Accounts receivables, net consist of the following: March 31, September 30, 2021 2020 Accounts receivable $ 5,606,784 $ 7,027,645 Allowance for doubtful accounts (203,492 ) (340,848 ) $ 5,403,292 $ 6,686,797 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 | 6 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory, Net | NOTE 8 – INVENTORY, NET Inventory, net, consist of the following: March 31, September 30, 2021 2020 Raw materials $ 4,170,573 $ 3,959,888 Work in progress 137,037 995,184 Finished goods 6,677,658 6,413,927 10,985,268 11,368,999 Less: Allowance for inventory obsolescence (3,626,460 ) (4,575,193 ) Inventory –net of allowance for inventory obsolescence $ 7,358,808 $ 6,793,806 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 9 – PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: March 31, September 30, 2021 2020 (restated) Land $ 790,373 $ 790,373 Building and leasehold improvements 3,950,430 3,875,796 Furniture and office equipment 677,643 621,790 Computers and software 269,851 264,940 Trade show display 89,330 89,330 Machinery and equipment 14,594,734 13,668,263 20,372,361 19,310,492 Less: Accumulated depreciation (13,037,160 ) (12,348,741 ) Property and equipment, net $ 7,335,201 $ 6,961,751 Depreciation expense for the three and six months ended March 31, 2021, and 2020 were $319,426 and $483,162, and $680,004 and $888,391, respectively. |
Leases
Leases | 6 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | NOTE 10 – LEASES ASC 842, “Leases”, 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 either the effective date (the “effective date method”) or the beginning of the earliest period presented (the “comparative method”) using a modified retrospective approach. Under the effective date method, the Company’s comparative period reporting is unchanged. In contrast, under the comparative method, the Company’s date of initial application is the beginning of the earliest comparative period presented, and the Topic 842 transition guidance is then applied to all comparative periods presented. Further, under either transition method, the standard includes certain practical expedients intended to ease the burden of adoption. The Company adopted ASC 842 October 1, 2019, using the effective date method and elected certain practical expedients allowing the Company not to reassess: ● whether expired or existing contracts contain leases under the new definition of a lease; ● lease classification for expired or existing leases; and ● whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. The Company entered into a financing lease for a single vehicle in the Industrial services segment with a term of 3 years. The Company enters into operating leases for its facilities in New York, United Kingdom, and India, as well as for vehicles for use in our Industrial Services segment. The operating lease terms range from 2 to 7 years. The Company excluded the renewal option on its applicable facility leases from the calculation of its right-of-use assets and lease liabilities. Finance and operating lease liabilities consist of the following: March 31, 2021 September 30, 2020 Lease liabilities - current Finance leases $ 8,501 $ 20,061 Operating leases 755,607 700,975 764,108 721,036 Lease liabilities - net of current portion Finance leases $ - $ - Operating leases 2,106,545 2,027,406 $ 2,106,545 $ 2,027,406 A reconciliation of undiscounted cash flows to finance and operating lease liabilities recognized in the condensed consolidated balance sheet at March 31, 2021, is set forth below: Finance leases Operating Leases Total Years ending September 30, 2021 8,528 404,419 412,947 2022 - 799,784 799,784 2023 - 616,607 616,607 2024 - 480,881 480,881 2025 - 457,078 457,078 2026 & Thereafter - 573,198 573,198 Undiscounted lease payments 8,528 3,331,967 3,340,495 Amount representing interest (27 ) (469,815 ) (469,842 ) Discounted lease payments $ 8,501 $ 2,862,152 $ 2,870,653 Additional disclosures of lease data are set forth below: Six months ended March 31, 2021 March 31, 2020 Lease costs: Finance lease costs: Depreciation of finance lease assets $ 11,456 $ 11,456 Interest on lease liabilities 61 416 Operating lease costs: Amortization of right-of-use assets 438,539 275,822 Interest on lease liabilities 34,613 20,375 Total lease cost $ 484,669 $ 308,069 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 450,102 $ 11,872 Finance leases 20,034 398,580 $ 470,136 $ 410,452 Weighted-average remaining lease term - finance leases (months) 3 16 Weighted-average remaining lease term - operating leases (months) 72 28 Weighted-average discount rate - finance leases 3.63 % 3.63 % Weighted-average discount rate - operating leases 6.85 % 6.57 % The Company used the rate implicit in the lease, where known, or its incremental borrowing rate as the rate used to discount the future lease payments. |
Prepaid and Other Current Asset
Prepaid and Other Current Assets | 6 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid and Other Current Assets | NOTE 11 – PREPAID AND OTHER CURRENT ASSETS On March 31, 2021, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $1,040,370, other current assets of $779,661. On September 30, 2020, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $101,308, and other current assets of $1,087,009. |
Other Assets
Other Assets | 6 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 12 - OTHER ASSETS As of March 31, 2021, the Company had other assets of $1,074,861 which was comprised of rent security of $294,978, a strategic investment in MasterpieceVR of $500,000, and other assets of $280,074. As of September 30, 2020, the Company had other assets of $744,207 which was comprised of rent security deposits of $294,553 and other assets of $449,654. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 13 – RELATED PARTY TRANSACTIONS On August 31, 2019, the Company entered into an Asset Purchase Agreement for the sale of Griffin Filters, LLC to Ducon Technologies, Inc., which Aron Govil, the Company’s Founder and Former CFO, is President, for total consideration of $550,000. As of March 31, 2021, and September 30, 2020, there was $1,498,776 and $1,432,209 in receivables due from Ducon Technologies, Inc., respectively. At March 31, 2021, $500,000 of the balance due is for the sale of Griffin, which was due in February 2021, and the remaining balance are various receivables with various due dates within the next fiscal year. The Company is currently negotiating a payment agreement surrounding all these amounts due. Please see Note 2 for further transactions relating to Aron Govil. |
Lines of Credit and Long-Term L
Lines of Credit and Long-Term Liabilities | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Lines of Credit and Long-Term Liabilities | NOTE 14 – LINES OF CREDIT AND LONG-TERM LIABILITIES Lines of credit The Company currently has a line of credit with Fulton Bank for $3,500,000. The line carries an interest of LIBOR plus 2.00% per annum (2.19% as of March 31, 2021). At March 31, 2021 there was no outstanding balance on this line of credit. Loans payable to bank 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 (2.44% as of March 31, 2021) and is payable on December 15, 2022. This loan carries loan covenants which the Company was in compliance with as of March 31, 2021. 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 plus 2.00% per annum (2.19% as of March 31, 2021) and was fully paid 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 (2.19% as of March 31, 2021) and is payable on May 1, 2023. This loan carries loan covenants which the Company was in compliance with as of March 31, 2021. On January 28, 2020, the Company acquired a loan from Fulton Bank in the amount of $360,000 in order to fund new equipment for Advanced Industrial Services, Inc. This loan carries interest of LIBOR plus 2.25% per annum (2.44% as of March 31, 2021) and is payable on May 1, 2023. This loan carries loan covenants which the Company was in compliance with as of March 31, 2021. Notes payable On December 23, 2019, the Company, issued a note payable to an independent private lender in the amount of $1,725,000. This note carries interest of 8% and matures on June 23, 2021. After deduction of an original issue discount of $225,000 and legal fees of $5,000, the Company received $1,495,000 in cash. This note was satisfied on November 2, 2020. On April 24, 2020, the Company, issued a note payable to an independent private lender in the amount of $1,725,000. This note carries interest of 8% and matures on October 24, 2021. After deduction of an original issue discount of $225,000 and legal fees of $5,000, the Company received $1,495,000 in cash. This note was satisfied on January 21, 2021. On September 30, 2020, the Company, issued a note payable to an independent private lender in the amount of $4,605,000. This note carries interest of 8% and matures on March 30, 2022. After deduction of an original issue discount of 600,000 and legal fees of $5,000, the Company received $4,000,000 in cash. On March 3, 2020, Vicon, a subsidiary of the Company amended the $5,600,000 Term Loan Agreement with NIL Funding Corporation (“NIL”). Upon closing, $500,000 of outstanding borrowings were repaid to NIL, additionally, another $500,000 is to be paid in one year. The Agreement requires monthly payments of accrued interest that began on October 1, 2018. This note carries interest of 8.85% and matures on March 30, 2022. This note carries loan covenants which the Company is in compliance with as of March 31, 2021. Mortgage Payable On January 28, 2020, the Company’s subsidiary, Advanced Industrial Services, Inc., completed the purchase of two buildings for a total purchase price of $3,381,433. The Company paid $905,433 in cash and acquired a mortgage from Fulton Bank in the amount of $2,476,000. This mortgage carries interest of LIBOR plus 2.50% per annum (2.69% as of March 31, 2021) and is payable on January 28, 2040. This loan carries loan covenants similar to covenants on The Company’s other loans from Fulton Bank. As of March 31, 2021, the Company was in compliance with these covenants. Paycheck Protection Program Loans In April and May of 2020, the Company and its subsidiaries applied for and were granted $3,471,100 in Paycheck Protection Program loans under the CARES Act. These loans bear interest of 1% and mature in two years. The Company will apply for and fully expects these loans to be forgiven under the provisions of the CARES Act and any subsequent legislation that may be applicable. These loans are recorded under Paycheck Protection Program Loans on our Condensed Consolidated Balance Sheet as of September 30, 2020, net of the short-term portion of $710,046. In April and June of 2021 $3,156,700 and $193,000 of these loans were forgiven. On January 24, 2021, and April 17, 2021, subsidiaries of the company received additional $1,970,785 and $971,500, respectively, of Paycheck Protection Program funds as part of the second Paycheck Protection Program for which the subsidiary qualifies due to the decrease in revenues. These loans bear interest of 1% and mature in five years. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021, and September 30, 2020, there were 1,845,004 and 3,364,953 shares issued and outstanding, respectively. Series 1 Preferred Stock On March 30, 2020, the Company amended the Certificate of Designation (the “Amended Certificate of Designation”) for our Series 1 Preferred Stock (the “Series 1 Stock”). The Amended Certificate of Designation increased the number of authorized preferred shares under the designation for our Series 1 Preferred Stock from 3,000,000 shares to 4,000,000 shares. For the six months ended March 31, 2021, 108,169 shares of Series 1 Preferred Stock were issued to pay dividends to holders of Series 1 Preferred Stock. During the three-month period ended March 31, 2021, the Company retired 469,949 shares of Series 1 Preferred Stock surrendered by Aron Govil as part of the settlement agreement (see Note 2). As of March 31, 2021, and September 30, 2020, there were 1,795,004 and 2,156,784 shares of Series 1 Preferred Stock issued and outstanding, respectively. Series A Preferred stock During the three-month period ended March 31, 2021, the Company retired 1,000,000 shares of Series A Preferred Stock surrendered by Aron Govil as part of the settlement agreement (see Note 2). As of March 31, 2021, and September 30, 2020, there were zero and 1,000,000 shares of Series A Preferred Stock issued and outstanding, respectively. Series C Preferred Stock On October 3, 2019, pursuant to Article IV of our Articles of Incorporation, our Board of Directors voted to designate a class of preferred stock entitled Series C Preferred Stock, consisting of up to one hundred thousand (100,000) shares, par value $0.001. Under the Certificate of Designation, holders of Series C Preferred Stock are entitled to the number of votes equal to the result of (i) the total number of shares of Common Stock outstanding at the time of such vote multiplied by 10.01, and divided by (ii) the total number of shares of Series C Preferred Stock outstanding at the time of such vote, at each meeting of our shareholders with respect to any and all matters presented to our shareholders for their action or consideration, including the election of directors. During the three-month period ended March 31, 2021, the Company retired 50,000 shares of Series C Preferred Stock surrendered by Aron Govil as part of the settlement agreement (see Note 2). As of March 31, 2021, and September 30, 2020, there were 50,000 and 100,000 shares of Series C Preferred Stock issued and outstanding, respectively. Common Stock The Company is authorized to issue 50,000,000 shares of common stock, $0.001 par value. As of March 31, 2021, there were 18,711,463 shares issued and outstanding and at September 30, 2020, there were 17,622,539 shares issued and outstanding. During the six months ended March 31, 1,088,654 shares of the Company’s common stock have been issued to satisfy $550,000 of notes payable, $191,556 in accrued interest, and $465,772 of excess value of shares issued recorded as interest expense. Shares Surrendered in Settlement In March 2021, Mr. Govil returned to the Company 1,000,000 shares of Series A Preferred Stock, 50,000 Shares of Series C Preferred Stock, 469,949 shares of Series 1 Preferred Stock, and forfeited all outstanding options to purchase shares of commons stock (collectively, the “Securities”). For the purposes of accounting recognition, the Company determined the fair value of the Series A, Series C, and Series 1 Preferred stock based on the closing trading value of the Series 1 Preferred Stock on the date of the agreement. The options surrendered were valued using the Black-Scholes option pricing model. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | NOTE 16 – SHARE-BASED COMPENSATION For the six months ended March 31, 2021, and 2020, the Company recognized $65,317 and $143,208 of share-based compensation expense on its outstanding options, respectively. As of March 31, 2021, $443,964 of unrecognized share-based compensation expense is expected to be recognized over a period of five years. Future compensation amounts will be adjusted for any change in estimated forfeitures. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2021 | |
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 month-to-month lease of 2,500 square feet of office space at a rate of $13,000 per month. The Company has recognized $78,000 of lease expense for this lease, for the six months ended March 31, 2021. The Company’s IS segment owns approximately 25,000 square feet of warehouse space in Manchester, PA and approximately 43,000 square feet of office and warehouse space in York, PA. The IS segment also leases approximately 15,500 square feet of warehouse space in Emigsville, PA from a third party in a three-year lease at a monthly rent of $4,555 expiring on August 31, 2022. The Company has paid $27,330 for this lease, for the six months ended March 31, 2021. 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 five year lease at a monthly rent of $6,453 (INR456,972) expiring on February 28, 2024, the Company has paid $38,718 for this lease, for the six months ended March 31, 2021, (ii) approximately 30,000 square feet of office and warehouse space in Hauppauge, New York from a third party in a seven-year lease at a monthly rent of $28,719 expiring on March 31, 2027, the Company paid $172,314 for this property, during the six months ended March 31, 2021 and (iii) approximately 9,400 square feet of office and warehouse space in Hampshire, England in a fifteen-year lease with at a monthly rent of $7,329 (£5,771) which expires on March 24, 2031 and contains provisions to terminate in 2026, the Company has paid $43,974 for this lease for the six months ended March 31, 2021. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 18 - 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. Paycheck Protection Program Loan On April 17, 2021, a subsidiary of the Company received an additional $971,500 of Paycheck Protection Program funds as part of the second Paycheck Protection Program for which the subsidiary qualifies due to the decrease in revenues. In April and June of 2021 $3,156,700 and $193,000 of our first round Paycheck Protection Program Loans were forgiven. Series 1 Preferred Stock Dividend On March 18, 2021, The Board of Directors of Cemtrex, Inc. passed a resolution that the company will pay its dividend on Series 1 Preferred Stock in additional shares of Series 1 Preferred Stock. The holders of the Series 1 Preferred Stock are entitled to receive dividends at the rate of 10% annually, based on the $10.00 per share Preference Amount, payable semiannually. The Company issued 90,147 shares of our Series 1 Preferred Stock on April 6, 2021, to the holders of record on close of business on March 31, 2021. |
Interim Statement Presentation
Interim Statement Presentation (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
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, 2020, of Cemtrex Inc. The accompanying condensed consolidated balance sheet has been derived from the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended September 30, 2020, adjusted and restated as further discussed in Note 2 of these financial statements. Additionally, the Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss), the Condensed Consolidated Statement of Stockholders’ Equity, the Condensed Consolidated Statements of Cash Flows, and notes to the financial statements related to the results of the three and six month periods ended March 31, 2020, have been restated. 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, Cemtrex Advanced Technologies Inc., Cemtrex Ltd., Cemtrex Technologies Pvt. Ltd., Griffin Filters, LLC, Cemtrex XR Inc., and Advanced Industrial Services, Inc. and the Company’s majority owned subsidiary Vicon Industries, Inc. and its subsidiaries, Telesite USA, IQInVision, Vicon Industries Ltd., and Vicon Systems, Ltd. All inter-company balances and transactions have been eliminated in consolidation. Restatement of Financial Statements Background On February 23, 2021, Cemtrex’s Board of Directors determined that certain transactions between Cemtrex Inc. and First Commercial, a company owned by former Executive Director, former Controlling Shareholder and former CFO, Aron Govil, were incorrectly handled and accounted for. The total amount of disputed transfers was approximately $7,100,000 and occurred in fiscal year 2017 in the amount of $5,600,000 and in fiscal year 2018 in the amount of $1,500,000. Cemtrex did not find any other such transfers during this period or thereafter, upon further review of the Company’s records. Upon the Company’s investigation into this matter, the Company has determined that there were inaccuracies in the Company’s financial statements. The financials for the periods 2017 and 2018 were incorrect corresponding to the amounts that were incorrectly accounted for, and subsequent years were affected by the roll forward effects of these entries. The Company found unsupported advertising expenses in the amount of approximately $400,000 on Cemtrex Inc’s income statement for fiscal year 2018 and found that approximately $5,700,000 of intangible assets and $975,000 of research and development expenses, as translated at from Indian Rupee at the time, were recorded on Cemtrex India’s financial statements in fiscal year 2018 and could not be substantiated. The total amount of unsubstantiated transfers recorded by Cemtrex India and the unsupported advertising expense recorded by Cemtrex, Inc. sums to $7,100,000, corresponding with the total amount in question regarding First Commercial transfers during fiscal years 2017 and 2018. As part of the restatement investigation, it was determined that the Company did not follow GAAP in the treatment of its Series 1 Preferred dividends. The Company currently has a deficit in retained earnings and in accordance with guidance has reversed the accrual for dividends payable and placed the amount of the accrual back into retained earnings. Position and Adjusting Entries The Company has determined that these transactions are not material in the years that they occurred and conclude that prior financial reports can be relied upon. The Company’s determination is based on the following: The adjustments do not cause any changes to the previously reported cash and debt balances as of the end of each of the periods in FY 2019 and 2020. The adjustments also do not cause any changes to revenues in any of the prior periods. In addition, the Company expects to maintain compliance with its debt covenants based on a preliminary review of the covenants for all the impacted periods. The Company has also determined that the adjustments have little effect on the trend of earnings over the last three fiscal years. In 2017 the operations of the Company were vastly different with both the environmental and circuit board manufacturing segments accounting for approximately 75% of revenues. These businesses are now either sold or discontinued. The current reported 2017 financial statements of the Company do not give an accurate representation of the Company today because only 16% of the $120M business operations are still a part of current operations. The table below represents the balances of the affected accounts on the Condensed Consolidated Balance Sheets as of September 30, 2020, the Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) for the three and six months ended March 31, 2020, Condensed Consolidated Statement of Stockholders’ Equity, and the Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2020. Condensed Consolidated Balance Sheets Balance as reported on September 30, 2020 Adjustment of net value of intangible assets Cumulative effect of derecognition of expenses Loss on amounts transferred to First Commercial Restatement on Dividends Cumulative effect of currency translation Adjusted balance at September 30, 2020 Property and equipment, net $ 9,558,936 $ (2,597,185 ) $ 6,961,751 Series 1 preferred stock dividends payable $ 1,081,690 $ (1,081,690 ) $ - Additional paid-in capital $ 63,313,336 $ (3,091,570 ) $ 60,221,766 Retained earnings (accumulated deficit) $ (33,172,690 ) $ 3,579,346 $ (7,100,000 ) $ 4,173,260 $ (32,520,084 ) Accumulated other comprehensive income $ 853,643 $ 923,469 $ 1,777,112 Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) For the three months ended March 31, 2020 Previously reported Adjustments Adjusted Net Income income/(loss) attributable to Cemtrex, Inc. shareholders $ (1,886,648 ) $ 287,547 $ (1,599,101 ) Foreign currency translation gain/(loss) $ (750,696 ) $ 870 $ (749,826 ) Loss Per Share-Basic $ (0.30 ) $ 0.05 $ (0.26 ) Loss Per Share-Diluted $ (0.30 ) $ 0.05 $ (0.26 ) For the six months ended March 31, 2020 Previously reported Adjustments Adjusted Net loss available to Cemtrex, Inc. shareholders $ (2,203,469 ) $ 548,750 $ (1,654,719 ) Foreign currency translation gain $ (157,377 ) $ (9,423 ) $ (166,800 ) Loss Per Share-Basic $ (0.42 ) $ 0.10 $ (0.31 ) Loss Per Share-Diluted $ (0.42 ) $ 0.10 $ (0.31 ) Condensed Consolidated Statement of Stockholders’ Equity For the six months ended March 31, 2020 Previously reported Adjustments Adjusted Retained earnings (accumulated deficit) at September 30, 2019 $ (20,067,685 ) $ (3,611,902 ) $ (23,679,587 ) Net income/(loss) $ (2,203,469 ) $ 548,750 $ (1,654,719 ) Retained earnings (accumulated deficit) at March 31, 2020 $ (24,357,704 ) $ (976,602 ) $ (25,334,306 ) Accumulated other comprehensive income/(loss)at September 30, 2019 $ 796,004 $ 806,889 $ 1,602,893 Comprehensive income/(loss) $ 564,597 $ (870 ) $ 563,727 Accumulated other comprehensive income/(loss) at March 31, 2020 $ 1,379,030 $ 806,019 $ 2,185,049 Additional paid-in capital $ 46,895,763 $ (2,064,670 ) $ 44,831,093 Condensed Consolidated Statements of Cash Flows For the six months ended March 31, 2020 Previously reported Adjustments Adjusted Net loss $ (2,016,406 ) $ 548,750 $ (1,467,656 ) Depreciation and amortization $ 1,427,718 $ (539,327 ) $ 888,391 Net cash used by operating activities $ (1,380,126 ) $ 9,423 $ (1,370,703 ) Effect of currency translation $ (184,551 ) $ (9,423 ) $ (193,974 ) On February 26, 2021, the Company entered into a Settlement Agreement and Release with Aron Govil regarding these transactions. As part of the Settlement Agreement, Mr. Govil was required to pay the Company consideration with a total value of $7,100,000 (the “Settlement Amount”) by entering into the Agreement. The Settlement Amount was paid in a combination of Mr. Govil forfeiting certain Preferred Stock and outstanding options and executing a secured note in the amount of $1,533,280. The Independent Board of Directors in coordination with Management concluded the settlement represented fair value and was conducted on “arm’s length” terms. In March 2021, Mr. Govil returned to the Company 1,000,000 shares of Series A Preferred Stock, 50,000 Shares of Series C Preferred Stock, 469,949 shares of Series 1 Preferred Stock, and forfeited all outstanding options to purchase shares of commons stock (collectively, the “Securities”). For the purposes of accounting recognition, the Company determined the fair value of the Series A, Series C, and Series 1 Preferred stock based on the closing trading value of the Series 1 Preferred Stock on the date of the agreement. The Company recognized the gain with respect to the surrendered Securities during this reporting period. The gain of $3,674,165 is reported as Settlement Agreement - Related Party on the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss). As discussed above, Mr. Govil also executed a secured promissory note (the “Note”) in the amount of $1,533,280. The Note matures and is due in full in two years and bears interest at 9% per annum and is secured by all of Mr. Govil’s assets. Mr. Govil also agreed to sign an affidavit confessing judgment in the event of a default on the Note. While the Company believes the note is fully collectible, in accordance with ASC 450-30, Gain Contingencies, the Company determined the gain will not be recognized until the note is paid. Accordingly, the note and associated gain is not presented on the Company’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss). |
Accounting Pronouncements | 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, 2020, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Issued Accounting Standards In December 2019, the FASB issued amended guidance, Simplifying the Accounting for Income Taxes, to remove certain exceptions to the general principles from ASC 740 - Income Taxes , In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). The update provides optional guidance for a limited period to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020, through December 31, 2022. The Company adopted this guidance in the second quarter of 2020. The adoption of this guidance had no impact on the Company’s Condensed Consolidated Financial Statements or the related disclosures. |
Interim Statement Presentatio_2
Interim Statement Presentation (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Condensed Consolidated Balance Sheets | Condensed Consolidated Balance Sheets Balance as reported on September 30, 2020 Adjustment of net value of intangible assets Cumulative effect of derecognition of expenses Loss on amounts transferred to First Commercial Restatement on Dividends Cumulative effect of currency translation Adjusted balance at September 30, 2020 Property and equipment, net $ 9,558,936 $ (2,597,185 ) $ 6,961,751 Series 1 preferred stock dividends payable $ 1,081,690 $ (1,081,690 ) $ - Additional paid-in capital $ 63,313,336 $ (3,091,570 ) $ 60,221,766 Retained earnings (accumulated deficit) $ (33,172,690 ) $ 3,579,346 $ (7,100,000 ) $ 4,173,260 $ (32,520,084 ) Accumulated other comprehensive income $ 853,643 $ 923,469 $ 1,777,112 |
Schedule of Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) | Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) For the three months ended March 31, 2020 Previously reported Adjustments Adjusted Net Income income/(loss) attributable to Cemtrex, Inc. shareholders $ (1,886,648 ) $ 287,547 $ (1,599,101 ) Foreign currency translation gain/(loss) $ (750,696 ) $ 870 $ (749,826 ) Loss Per Share-Basic $ (0.30 ) $ 0.05 $ (0.26 ) Loss Per Share-Diluted $ (0.30 ) $ 0.05 $ (0.26 ) For the six months ended March 31, 2020 Previously reported Adjustments Adjusted Net loss available to Cemtrex, Inc. shareholders $ (2,203,469 ) $ 548,750 $ (1,654,719 ) Foreign currency translation gain $ (157,377 ) $ (9,423 ) $ (166,800 ) Loss Per Share-Basic $ (0.42 ) $ 0.10 $ (0.31 ) Loss Per Share-Diluted $ (0.42 ) $ 0.10 $ (0.31 ) |
Schedule of Condensed Consolidated Statement of Stockholders' Equity | Condensed Consolidated Statement of Stockholders’ Equity For the six months ended March 31, 2020 Previously reported Adjustments Adjusted Retained earnings (accumulated deficit) at September 30, 2019 $ (20,067,685 ) $ (3,611,902 ) $ (23,679,587 ) Net income/(loss) $ (2,203,469 ) $ 548,750 $ (1,654,719 ) Retained earnings (accumulated deficit) at March 31, 2020 $ (24,357,704 ) $ (976,602 ) $ (25,334,306 ) Accumulated other comprehensive income/(loss)at September 30, 2019 $ 796,004 $ 806,889 $ 1,602,893 Comprehensive income/(loss) $ 564,597 $ (870 ) $ 563,727 Accumulated other comprehensive income/(loss) at March 31, 2020 $ 1,379,030 $ 806,019 $ 2,185,049 Additional paid-in capital $ 46,895,763 $ (2,064,670 ) $ 44,831,093 |
Schedule of Condensed Consolidated Statements of Cash Flows | Condensed Consolidated Statements of Cash Flows For the six months ended March 31, 2020 Previously reported Adjustments Adjusted Net loss $ (2,016,406 ) $ 548,750 $ (1,467,656 ) Depreciation and amortization $ 1,427,718 $ (539,327 ) $ 888,391 Net cash used by operating activities $ (1,380,126 ) $ 9,423 $ (1,370,703 ) Effect of currency translation $ (184,551 ) $ (9,423 ) $ (193,974 ) |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Excluded from Computation of Diluted Net Loss Per Common Share as Anti-dilutive | For the three and six months ended March 31, 2021, and 2020, the following items were excluded from the computation of diluted net loss per common share as their effect is anti-dilutive: For the three months ended For the six months ended March 31, March 31, 2021 2020 2021 2020 Warrants to purchase shares 433,965 433,965 433,965 433,965 Options 880,049 1,050,000 944,757 1,050,000 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following tables summarize the Company’s segment information: For the three months ended For the six months ended March 31, March 31, 2021 2020 2021 2020 Revenues from external customers Advanced Technologies $ 5,487,414 $ 6,186,400 $ 10,160,283 $ 13,411,633 Industrial Services $ 3,772,971 5,927,447 7,936,178 10,922,297 Total revenues $ 9,260,385 $ 12,113,847 $ 18,096,461 $ 24,333,930 Gross profit Advanced Technologies $ 2,646,926 $ 3,331,799 $ 4,993,198 $ 6,874,586 Industrial Services 1,281,958 2,014,305 2,941,156 3,820,004 Total gross profit $ 3,928,884 $ 5,346,104 $ 7,934,354 $ 10,694,590 Operating loss Advanced Technologies $ (1,693,377 ) $ (630,814 ) $ (3,535,723 ) $ (91,275 ) Industrial Services (269,221 ) 113,914 (472,826 ) (28,135 ) Total operating loss $ (1,962,598 ) $ (516,900 ) $ (4,008,549 ) $ (119,410 ) Other income/(expense) Advanced Technologies $ 3,497,148 $ (850,329 ) $ 3,864,383 $ (1,072,396 ) Industrial Services 735,518 (50,177 ) 710,330 (86,307 ) Total other expense $ 4,232,666 $ (900,506 ) $ 4,574,713 $ (1,158,703 ) Depreciation and Amortization (restated) (restated) Advanced Technologies $ 89,746 $ 111,638 $ 205,578 $ 226,740 Industrial Services 229,680 371,524 474,426 661,651 Total depreciation and amortization $ 319,426 $ 483,162 $ 680,004 $ 888,391 March 31, September 30, 2020 2020 (restated) Identifiable Assets Advanced Technologies $ 32,297,470 $ 36,732,018 Industrial Services 18,025,093 15,590,448 Discontinued operations 8,867,821 8,867,821 Total Assets $ 59,190,384 $ 61,190,287 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets | The Company’s fair value assets at March 31, 2021 are as follows. Quoted Prices in Active Significant Markets for Other Significant Balance Identical Observable Unobservable as of (Level 1) (Level 2) (Level 3) 2021 Assets Investment in marketable securities (included in short-term investments) $ 522,612 $ - $ - $ 522,612 Investment in MasterpieceVR $ 500,000 $ 500,000 (included in Other assets) $ 522,612 $ - $ 500,000 $ 1,022,612 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivables, net consist of the following: March 31, September 30, 2021 2020 Accounts receivable $ 5,606,784 $ 7,027,645 Allowance for doubtful accounts (203,492 ) (340,848 ) $ 5,403,292 $ 6,686,797 |
Inventory, Net (Tables)
Inventory, Net (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net | Inventory, net, consist of the following: March 31, September 30, 2021 2020 Raw materials $ 4,170,573 $ 3,959,888 Work in progress 137,037 995,184 Finished goods 6,677,658 6,413,927 10,985,268 11,368,999 Less: Allowance for inventory obsolescence (3,626,460 ) (4,575,193 ) Inventory –net of allowance for inventory obsolescence $ 7,358,808 $ 6,793,806 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment are summarized as follows: March 31, September 30, 2021 2020 (restated) Land $ 790,373 $ 790,373 Building and leasehold improvements 3,950,430 3,875,796 Furniture and office equipment 677,643 621,790 Computers and software 269,851 264,940 Trade show display 89,330 89,330 Machinery and equipment 14,594,734 13,668,263 20,372,361 19,310,492 Less: Accumulated depreciation (13,037,160 ) (12,348,741 ) Property and equipment, net $ 7,335,201 $ 6,961,751 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Finance and Operating Lease Liabilities | Finance and operating lease liabilities consist of the following: March 31, 2021 September 30, 2020 Lease liabilities - current Finance leases $ 8,501 $ 20,061 Operating leases 755,607 700,975 764,108 721,036 Lease liabilities - net of current portion Finance leases $ - $ - Operating leases 2,106,545 2,027,406 $ 2,106,545 $ 2,027,406 |
Schedule of Reconciliation of Undiscounted Cash Flows to Finance and Operating Lease Liabilities | A reconciliation of undiscounted cash flows to finance and operating lease liabilities recognized in the condensed consolidated balance sheet at March 31, 2021, is set forth below: Finance leases Operating Leases Total Years ending September 30, 2021 8,528 404,419 412,947 2022 - 799,784 799,784 2023 - 616,607 616,607 2024 - 480,881 480,881 2025 - 457,078 457,078 2026 & Thereafter - 573,198 573,198 Undiscounted lease payments 8,528 3,331,967 3,340,495 Amount representing interest (27 ) (469,815 ) (469,842 ) Discounted lease payments $ 8,501 $ 2,862,152 $ 2,870,653 |
Schedule of Lease Costs | Additional disclosures of lease data are set forth below: Six months ended March 31, 2021 March 31, 2020 Lease costs: Finance lease costs: Depreciation of finance lease assets $ 11,456 $ 11,456 Interest on lease liabilities 61 416 Operating lease costs: Amortization of right-of-use assets 438,539 275,822 Interest on lease liabilities 34,613 20,375 Total lease cost $ 484,669 $ 308,069 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 450,102 $ 11,872 Finance leases 20,034 398,580 $ 470,136 $ 410,452 Weighted-average remaining lease term - finance leases (months) 3 16 Weighted-average remaining lease term - operating leases (months) 72 28 Weighted-average discount rate - finance leases 3.63 % 3.63 % Weighted-average discount rate - operating leases 6.85 % 6.57 % |
Organization and Plan of Oper_2
Organization and Plan of Operations (Details Narrative) | Oct. 26, 2022USD ($) | Oct. 26, 2021USD ($) | Oct. 26, 2020USD ($) | Aug. 15, 2019Segments | May 31, 2021USD ($) | Mar. 31, 2021Segments | Nov. 13, 2020USD ($) |
Number of reportable segments | Segments | 2 | ||||||
Subsequent Event [Member] | |||||||
Purchase price of acquisition | $ 175,428 | ||||||
Forecast [Member] | Installment One [Member] | |||||||
Debt monthly payments | $ 239,774 | ||||||
Forecast [Member] | Installment Two [Member] | |||||||
Debt monthly payments | $ 200,000 | ||||||
Virtual Driver Interactive [Member] | |||||||
Purchase price of acquisition | $ 1,339,774 | ||||||
Cash payment to acquire | 900,000 | ||||||
Notes payable | $ 439,774 | ||||||
Interest rate | 5.00% | ||||||
Vicon Industries, Inc. [Member] | |||||||
Number of reportable segments | Segments | 2 | ||||||
MasterpieceVR [Member] | |||||||
Equity investment | $ 500,000 |
Interim Statement Presentatio_3
Interim Statement Presentation (Details Narrative) - USD ($) | Feb. 26, 2021 | Feb. 23, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2018 | Sep. 30, 2017 |
Research and development expenses | $ 641,497 | $ 404,933 | $ 1,275,722 | $ 781,519 | ||||
Settlement Agreement [Member] | ||||||||
One-time gain | $ 3,674,165 | |||||||
Settlement Agreement [Member] | Aron Govil [Member] | Preferred Stock And Outstanding Options [Member] | ||||||||
Receivable from related party | $ 1,533,280 | |||||||
Incorrectly Handled and Accounted [Member] | ||||||||
Advertising expenses | $ 400,000 | |||||||
Intangible asset | 5,700,000 | |||||||
Research and development expenses | 975,000 | |||||||
Error corrections and prior period adjustments, description | In 2017 the operations of the Company were vastly different with both the environmental and circuit board manufacturing segments accounting for approximately 75% of revenues. These businesses are now either sold or discontinued. The current reported 2017 financial statements of the Company do not give an accurate representation of the Company today because only 16% of the $120M business operations are still a part of current operations. | |||||||
Incorrectly Handled and Accounted [Member] | Settlement Agreement [Member] | ||||||||
Error corrections and prior period adjustments, description | As part of the Settlement Agreement, Mr. Govil was required to pay the Company consideration of $7,100,000 (the "Settlement Amount") by entering into the Agreement. The Settlement Amount was satisfied in a combination of Mr. Govil forfeiting certain Preferred Stock and outstanding options and executing a secured note in the amount of $1,533,280. The Independent Board of Directors in coordination with Management concluded the settlement represented fair value. | |||||||
Incorrectly Handled and Accounted [Member] | Settlement Agreement [Member] | Aron Govil [Member] | ||||||||
Error corrections and prior period adjustments, description | As discussed above, Mr. Govil also executed a secured promissory note (the "Note") in the amount of $1,533,280. The Note matures and is due in full in two years and bears interest at 9% per annum and is secured by all of Mr. Govil's assets. Mr. Govil also agreed to sign an affidavit confessing judgment in the event of a default on the Note. | |||||||
Receivable from related party | $ 7,100,000 | |||||||
Shares repurchased during period, value | $ 1,533,280 | |||||||
Incorrectly Handled and Accounted [Member] | Settlement Agreement [Member] | Aron Govil [Member] | Series A Preferred Stock [Member] | ||||||||
Shares repurchased during period | 1,000,000 | |||||||
Incorrectly Handled and Accounted [Member] | Settlement Agreement [Member] | Aron Govil [Member] | Preferred Stock Series C [Member] | ||||||||
Shares repurchased during period | 50,000 | |||||||
Incorrectly Handled and Accounted [Member] | Settlement Agreement [Member] | Aron Govil [Member] | Series 1 Preferred Stock [Member] | ||||||||
Shares repurchased during period | 469,949 | |||||||
Incorrectly Handled and Accounted [Member] | Disputes [Member] | ||||||||
Dispute amount | $ 7,100,000 | $ 1,500,000 | $ 5,600,000 |
Interim Statement Presentatio_4
Interim Statement Presentation - Schedule of Condensed Consolidated Balance Sheets (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Property and equipment, net | $ 7,335,201 | $ 6,961,751 | ||
Series 1 preferred stock dividends payable | ||||
Additional paid-in capital | 58,320,570 | 60,221,766 | ||
Retained earnings (accumulated deficit) | (31,758,563) | (32,520,084) | $ (25,334,306) | $ (23,679,587) |
Accumulated other comprehensive income | $ 1,824,350 | 1,777,112 | 2,185,049 | 1,602,893 |
Adjustment of Net Value of Intangible Assets [Member] | ||||
Property and equipment, net | (2,597,185) | |||
Cumulative Effect of Derecognition of Expenses [Member] | ||||
Retained earnings (accumulated deficit) | 3,579,346 | |||
Loss on Amounts Transferred to First Commercial [Member] | ||||
Retained earnings (accumulated deficit) | (7,100,000) | |||
Restatement on Dividends [Member] | ||||
Series 1 preferred stock dividends payable | (1,081,690) | |||
Additional paid-in capital | (3,091,570) | |||
Retained earnings (accumulated deficit) | 4,173,260 | |||
Cumulative Effect of Currency Translation [Member] | ||||
Accumulated other comprehensive income | 923,469 | |||
Previously Reported [Member] | ||||
Property and equipment, net | 9,558,936 | |||
Series 1 preferred stock dividends payable | 1,081,690 | |||
Additional paid-in capital | 63,313,336 | |||
Retained earnings (accumulated deficit) | (33,172,690) | (24,357,704) | (20,067,685) | |
Accumulated other comprehensive income | $ 853,643 | $ 1,379,030 | $ 796,004 |
Interim Statement Presentatio_5
Interim Statement Presentation - Schedule of Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net loss available to Cemtrex, Inc. shareholders | $ 2,454,132 | $ (1,692,611) | $ (1,599,101) | $ (55,618) | $ 761,521 | $ (1,654,719) |
Foreign currency translation gain/(loss) | $ (87,972) | $ (749,826) | $ (40,491) | $ (166,800) | ||
Loss Per Share-Basic | $ 0.13 | $ (0.26) | $ 0.04 | $ (0.31) | ||
Loss Per Share-Diluted | $ 0.13 | $ (0.26) | $ 0.04 | $ (0.31) | ||
Previously Reported [Member] | ||||||
Net loss available to Cemtrex, Inc. shareholders | $ (1,886,648) | $ (2,203,469) | ||||
Foreign currency translation gain/(loss) | $ (750,696) | $ (157,377) | ||||
Loss Per Share-Basic | $ (0.30) | $ (0.42) | ||||
Loss Per Share-Diluted | $ (0.30) | $ (0.42) | ||||
Adjustment [Member] [Member] | ||||||
Net loss available to Cemtrex, Inc. shareholders | $ 287,547 | $ 548,750 | ||||
Foreign currency translation gain/(loss) | $ 870 | $ (9,423) | ||||
Loss Per Share-Basic | $ 0.05 | $ 0.10 | ||||
Loss Per Share-Diluted | $ 0.05 | $ 0.10 |
Interim Statement Presentatio_6
Interim Statement Presentation - Schedule of Condensed Consolidated Statement of Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Retained earnings (accumulated deficit) at September 30, 2019 | $ (32,520,084) | $ (23,679,587) | $ (32,520,084) | $ (23,679,587) | ||
Net income/(loss) | $ 2,454,132 | (1,692,611) | $ (1,599,101) | (55,618) | 761,521 | (1,654,719) |
Retained earnings (accumulated deficit) at March 31, 2020 | (31,758,563) | (25,334,306) | (31,758,563) | (25,334,306) | ||
Accumulated other comprehensive income/(loss)at September 30, 2019 | 1,777,112 | 1,602,893 | 1,777,112 | 1,602,893 | ||
Comprehensive income/(loss) | (19,625) | 897 | (50,255) | 214,237 | ||
Accumulated other comprehensive income/(loss) at March 31, 2020 | $ 1,824,350 | 2,185,049 | 1,824,350 | 2,185,049 | ||
Additional paid-in capital | 44,831,093 | |||||
Previously Reported [Member] | ||||||
Retained earnings (accumulated deficit) at September 30, 2019 | (33,172,690) | (20,067,685) | (33,172,690) | (20,067,685) | ||
Net income/(loss) | (1,886,648) | (2,203,469) | ||||
Retained earnings (accumulated deficit) at March 31, 2020 | (24,357,704) | (24,357,704) | ||||
Accumulated other comprehensive income/(loss)at September 30, 2019 | $ 853,643 | 796,004 | $ 853,643 | 796,004 | ||
Comprehensive income/(loss) | 564,597 | |||||
Accumulated other comprehensive income/(loss) at March 31, 2020 | 1,379,030 | 1,379,030 | ||||
Additional paid-in capital | 46,895,763 | |||||
Adjustment [Member] [Member] | ||||||
Retained earnings (accumulated deficit) at September 30, 2019 | (3,611,902) | (3,611,902) | ||||
Net income/(loss) | 287,547 | 548,750 | ||||
Retained earnings (accumulated deficit) at March 31, 2020 | (976,602) | (976,602) | ||||
Accumulated other comprehensive income/(loss)at September 30, 2019 | $ 806,889 | 806,889 | ||||
Comprehensive income/(loss) | (870) | |||||
Accumulated other comprehensive income/(loss) at March 31, 2020 | $ 806,019 | 806,019 | ||||
Additional paid-in capital | $ (2,064,670) |
Interim Statement Presentatio_7
Interim Statement Presentation - Schedule of Condensed Consolidated Statements of Cash Flows (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net loss | $ 2,443,958 | $ (1,606,949) | $ 711,100 | $ (1,467,656) |
Depreciation and amortization | $ 319,426 | $ 483,162 | 680,004 | 888,391 |
Net cash used by operating activities | (2,856,654) | (1,370,703) | ||
Effect of currency translation | $ (70,668) | (193,974) | ||
Previously Reported [Member] | ||||
Net loss | (2,016,406) | |||
Depreciation and amortization | 1,427,718 | |||
Net cash used by operating activities | (1,380,126) | |||
Effect of currency translation | (184,551) | |||
Adjustment [Member] [Member] | ||||
Net loss | 548,750 | |||
Depreciation and amortization | (539,327) | |||
Net cash used by operating activities | 9,423 | |||
Effect of currency translation | $ (9,423) |
Loss Per Common Share - Schedul
Loss Per Common Share - Schedule of Excluded from Computation of Diluted Net Loss Per Common Share as Anti-dilutive (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Warrants to Purchase Shares [Member] | ||||
Computation of diluted net loss per common share as anti-dilutive | 433,965 | 433,965 | 433,965 | 433,965 |
Options [Member] | ||||
Computation of diluted net loss per common share as anti-dilutive | 880,049 | 1,050,000 | 944,757 | 1,050,000 |
Segment Information (Details Na
Segment Information (Details Narrative) | 6 Months Ended |
Mar. 31, 2021Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Total revenues | $ 9,260,385 | $ 12,113,847 | $ 18,096,461 | $ 24,333,930 | |
Total gross profit | 3,928,884 | 5,346,104 | 7,934,354 | 10,694,590 | |
Total operating loss | (1,962,598) | (516,900) | (4,008,549) | (119,410) | |
Total other expense | 4,505,033 | (900,506) | 4,847,080 | (1,158,703) | |
Total depreciation and amortization | 319,426 | 483,162 | 680,004 | 888,391 | |
Total Assets | 59,365,812 | 59,190,384 | 59,365,812 | 59,190,384 | $ 61,190,287 |
Discontinued Operations [Member] | |||||
Total Assets | 8,867,821 | 8,867,821 | 8,867,821 | ||
Advanced Technologies [Member] | |||||
Total revenues | 5,487,414 | 6,186,400 | 10,160,283 | 13,411,633 | |
Total gross profit | 2,646,926 | 3,331,799 | 4,993,198 | 6,874,586 | |
Total operating loss | (1,693,377) | (630,814) | (3,535,723) | (91,275) | |
Total other expense | 3,497,148 | (850,329) | 3,864,383 | (1,072,396) | |
Total depreciation and amortization | 89,746 | 111,638 | 205,578 | 226,740 | |
Total Assets | 32,297,470 | 32,297,470 | 36,732,018 | ||
Industrial Services [Member] | |||||
Total revenues | 3,772,971 | 5,927,447 | 7,936,178 | 10,922,297 | |
Total gross profit | 1,281,958 | 2,014,305 | 2,941,156 | 3,820,004 | |
Total operating loss | (269,221) | 113,914 | (472,826) | (28,135) | |
Total other expense | 735,518 | (50,177) | 710,330 | (86,307) | |
Total depreciation and amortization | $ 229,680 | 371,524 | $ 474,426 | 661,651 | |
Total Assets | $ 18,025,093 | $ 18,025,093 | $ 15,590,448 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Assets (Details) | Mar. 31, 2021USD ($) |
Fair value assets | $ 1,022,612 |
Marketable Securities [Member] | |
Fair value assets | 522,612 |
MasterpieceVR [Member] | |
Fair value assets | 500,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Fair value assets | 522,612 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Marketable Securities [Member] | |
Fair value assets | 522,612 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | MasterpieceVR [Member] | |
Fair value assets | |
Significant Other Observable Inputs (Level 2) [Member] | |
Fair value assets | |
Significant Other Observable Inputs (Level 2) [Member] | Marketable Securities [Member] | |
Fair value assets | |
Significant Other Observable Inputs (Level 2) [Member] | MasterpieceVR [Member] | |
Fair value assets | |
Significant Unobservable Inputs (Level 3) [Member] | |
Fair value assets | 500,000 |
Significant Unobservable Inputs (Level 3) [Member] | Marketable Securities [Member] | |
Fair value assets | |
Significant Unobservable Inputs (Level 3) [Member] | MasterpieceVR [Member] | |
Fair value assets | $ 500,000 |
Restricted Cash (Details Narrat
Restricted Cash (Details Narrative) | Mar. 31, 2021USD ($) |
Cash and Cash Equivalents [Abstract] | |
Restricted cash | $ 1,549,511 |
Accrued expenses | $ 157,415 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Receivables [Abstract] | ||
Accounts receivable | $ 5,606,784 | $ 7,027,645 |
Allowance for doubtful accounts | (203,492) | (340,848) |
Accounts receivables, net, total | $ 5,403,292 | $ 6,686,797 |
Inventory, Net - Schedule of In
Inventory, Net - Schedule of Inventory, Net (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,170,573 | $ 3,959,888 |
Work in progress | 137,037 | 995,184 |
Finished goods | 6,677,658 | 6,413,927 |
Inventory, gross | 10,985,268 | 11,368,999 |
Less: Allowance for inventory obsolescence | (3,626,460) | (4,575,193) |
Inventory - net of allowance for inventory obsolescence | $ 7,358,808 | $ 6,793,806 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 319,426 | $ 483,162 | $ 680,004 | $ 888,391 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Property and equipment, gross | $ 20,372,361 | $ 19,310,492 |
Less: Accumulated depreciation | (13,037,160) | (12,348,741) |
Property and equipment, net | 7,335,201 | 6,961,751 |
Land [Member] | ||
Property and equipment, gross | 790,373 | 790,373 |
Building and Leasehold Improvements [Member] | ||
Property and equipment, gross | 3,950,430 | 3,875,796 |
Furniture and Office Equipment [Member] | ||
Property and equipment, gross | 677,643 | 621,790 |
Computers and Software [Member] | ||
Property and equipment, gross | 269,851 | 264,940 |
Trade Show Display [Member] | ||
Property and equipment, gross | 89,330 | 89,330 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | $ 14,594,734 | $ 13,668,263 |
Leases (Details Narrative)
Leases (Details Narrative) | 6 Months Ended |
Mar. 31, 2021 | |
Lease description | The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. |
Minimum [Member] | |
Operating lease term | 2 years |
Maximum [Member] | |
Operating lease term | 7 years |
Industrial Services [Member] | |
Finance lease term | 3 years |
Leases - Summary of Finance and
Leases - Summary of Finance and Operating Lease Liabilities (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Lease liabilities - current | $ 764,108 | $ 721,036 |
Lease liabilities - net of current portion | 2,106,545 | 2,027,406 |
Other Liabilities [Member] | ||
Lease liabilities - current, Finance leases | 8,501 | 20,061 |
Lease liabilities - current, Operating leases | 755,607 | 700,975 |
Lease liabilities - current | 764,108 | 721,036 |
Lease liabilities - net of current portion, Finance leases | ||
Lease liabilities - net of current portion, Operating leases | 2,106,545 | 2,027,406 |
Lease liabilities - net of current portion | $ 2,106,545 | $ 2,027,406 |
Leases - Schedule of Reconcilia
Leases - Schedule of Reconciliation of Undiscounted Cash Flows to Finance and Operating Lease Liabilities (Details) | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
Finance leases, 2021 | $ 8,528 |
Finance leases, 2022 | |
Finance leases, 2023 | |
Finance leases, 2024 | |
Finance leases, 2025 | |
Finance leases, 2026 & thereafter | |
Finance leases, Undiscounted lease payments | 8,528 |
Finance leases, Amount representing interest | (27) |
Finance leases, Discounted lease payments | 8,501 |
Operating Leases, 2021 | 404,419 |
Operating Leases, 2022 | 799,784 |
Operating Leases, 2023 | 616,607 |
Operating Leases, 2024 | 480,881 |
Operating Leases, 2025 | 457,078 |
Operating Leases, 2026 & thereafter | 573,198 |
Operating Leases, Undiscounted lease payments | 3,331,967 |
Operating Leases, Amount representing interest | (469,815) |
Operating Leases, Discounted lease payments | 2,862,152 |
Total, 2021 | 412,947 |
Total, 2022 | 799,784 |
Total, 2023 | 616,607 |
Total, 2024 | 480,881 |
Total, 2025 | 457,078 |
Total, 2026 & thereafter | 573,198 |
Total, Undiscounted lease payments | 3,340,495 |
Total, Amount representing interest | (469,842) |
Total, Discounted lease payments | $ 2,870,653 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Finance lease costs: Depreciation of finance lease assets | $ 11,456 | $ 11,456 |
Finance lease costs: Interest on lease liabilities | 61 | 416 |
Operating lease costs: Amortization of right-of-use assets | 438,539 | 275,822 |
Operating lease costs: Interest on lease liabilities | 34,613 | 20,375 |
Total lease cost | 484,669 | 308,069 |
Cash paid for amounts included in the measurement of lease liabilities: Operating leases | 450,102 | 11,872 |
Cash paid for amounts included in the measurement of lease liabilities: Finance leases | 20,034 | 398,580 |
Cash paid for amounts included in the measurement of lease liabilities: Total | $ 470,136 | $ 410,452 |
Weighted-average remaining lease term - finance leases (months) | 3 months | 16 months |
Weighted-average remaining lease term - operating leases (months) | 72 months | 28 months |
Weighted-average discount rate - finance leases | 3.63% | 3.63% |
Weighted-average discount rate - operating leases | 6.85% | 6.57% |
Prepaid and Other Current Ass_2
Prepaid and Other Current Assets (Details Narrative) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepayments on inventory purchases | $ 1,040,370 | $ 101,308 |
Other assets, current | $ 779,661 | $ 1,087,009 |
Other Assets (Details Narrative
Other Assets (Details Narrative) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets | $ 1,074,861 | $ 744,207 |
Investment | 500,000 | |
Rent security deposits | 294,978 | 294,553 |
Other assets excluding rent security | $ 280,074 | $ 449,654 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Aug. 31, 2019 | Mar. 31, 2021 | Sep. 30, 2020 |
Trade receivables related parties | $ 1,498,776 | $ 1,432,209 | |
Ducon Technologies, Inc [Member] | |||
Trade receivables related parties | 1,498,776 | $ 1,432,209 | |
Griffin Filters, LLC [Member] | |||
Trade receivables related parties | $ 500,000 | ||
Description of remaining balance due | At March 31, 2021, $500,000 of the balance due is for the sale of Griffin, which was due in February 2021, and the remaining balance are various receivables with various due dates within the next fiscal year. | ||
Asset Purchase Agreement [Member] | Griffin Filters, LLC [Member] | Ducon Technologies, Inc [Member] | Aron Govil [Member] | |||
Consideration amount | $ 550,000 |
Lines of Credit and Long-Term_2
Lines of Credit and Long-Term Liabilities (Details Narrative) - USD ($) | Sep. 30, 2020 | Apr. 24, 2020 | Mar. 03, 2020 | Jan. 28, 2020 | Dec. 23, 2019 | May 01, 2018 | Dec. 15, 2015 | Jun. 30, 2021 | Apr. 30, 2021 | May 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Apr. 17, 2021 | Jan. 24, 2021 |
Proceeds from notes payable | $ 2,990,000 | |||||||||||||
Repayment of notes payable | 2,070,257 | $ 676,640 | ||||||||||||
Long term liabilities | $ 15,984,647 | $ 16,158,426 | ||||||||||||
Loan Agreement [Member] | ||||||||||||||
Debt instrument, interest rate | 8.85% | |||||||||||||
Debt instrument, maturity date | Mar. 30, 2022 | |||||||||||||
Note payable | $ 5,600,000 | |||||||||||||
Repayment of notes payable | 500,000 | |||||||||||||
Loan Agreement [Member] | One Year [Member] | ||||||||||||||
Repayment of notes payable | $ 500,000 | |||||||||||||
Paycheck Protection Program [Member] | ||||||||||||||
Debt instrument, interest rate | 1.00% | |||||||||||||
Loan granted on paycheck protection | $ 3,471,100 | |||||||||||||
Debt term | 2 years | |||||||||||||
Other long-term liabilities | $ 710,046 | |||||||||||||
Debt forgiveness | $ 193,000 | $ 3,156,700 | ||||||||||||
Loans payable | $ 1,970,785 | |||||||||||||
Paycheck Protection Program [Member] | Subsequent Event [Member] | ||||||||||||||
Loans payable | $ 971,500 | |||||||||||||
Independent Third Party [Member] | ||||||||||||||
Debt instrument, interest rate | 8.00% | 8.00% | 8.00% | |||||||||||
Debt instrument, maturity date | Mar. 30, 2022 | Oct. 24, 2021 | Jun. 23, 2021 | |||||||||||
Note payable | $ 4,605,000 | $ 1,725,000 | $ 1,725,000 | |||||||||||
Original issue discount | 600,000 | 225,000 | 225,000 | |||||||||||
Legal fees | 5,000 | 5,000 | 5,000 | |||||||||||
Proceeds from notes payable | $ 4,000,000 | $ 1,495,000 | $ 1,495,000 | |||||||||||
Advanced Industrial Services, Inc [Member] | ||||||||||||||
Purchase price | $ 3,381,433 | |||||||||||||
Long term liabilities | 905,433 | |||||||||||||
Advanced Industrial Services, Inc [Member] | Fulton Bank [Member] | ||||||||||||||
Long term liabilities | 2,476,000 | |||||||||||||
Notes Payable Due on May 1, 2023 [Member] | Fulton Bank [Member] | ||||||||||||||
Loans payable to bank | $ 360,000 | $ 400,000 | ||||||||||||
Debt instrument, interest rate | 2.19% | |||||||||||||
Notes Payable Due on May 1, 2023 [Member] | Fulton Bank [Member] | ||||||||||||||
Debt instrument, interest rate | 2.44% | |||||||||||||
Advanced Industrial Services, Inc [Member] | ||||||||||||||
Payments to acquire businesses and interest in affiliates | $ 5,000,000 | |||||||||||||
Advanced Industrial Services, Inc [Member] | Notes Payable Due on May 1, 2023 [Member] | ||||||||||||||
Debt instrument, maturity date | May 1, 2023 | May 1, 2023 | ||||||||||||
London Interbank Offered Rate [Member] | Advanced Industrial Services, Inc [Member] | ||||||||||||||
Debt instrument, interest rate | 2.50% | 2.69% | ||||||||||||
Debt instrument, maturity date | Jan. 28, 2040 | |||||||||||||
London Interbank Offered Rate [Member] | Notes Payable Due on May 1, 2023 [Member] | Fulton Bank [Member] | ||||||||||||||
Debt instrument, variable interest rate | 2.25% | 2.00% | ||||||||||||
London Interbank Offered Rate [Member] | Advanced Industrial Services, Inc [Member] | ||||||||||||||
Debt instrument, variable interest rate | 2.25% | |||||||||||||
Fulton Bank [Member] | ||||||||||||||
Line of credit | $ 3,500,000 | |||||||||||||
Loans payable to bank | $ 5,250,000 | |||||||||||||
Debt instrument, interest rate | 2.44% | |||||||||||||
Debt instrument, maturity date | Dec. 15, 2022 | |||||||||||||
Fulton Bank [Member] | Notes Payable Due on December 15, 2020 [Member] | ||||||||||||||
Loans payable to bank | $ 620,000 | |||||||||||||
Debt instrument, interest rate | 2.19% | |||||||||||||
Debt instrument, maturity date | Dec. 15, 2020 | |||||||||||||
Fulton Bank [Member] | London Interbank Offered Rate [Member] | Notes Payable Due on December 15, 2020 [Member] | ||||||||||||||
Debt instrument, variable interest rate | 2.00% | |||||||||||||
Fulton Bank One [Member] | London Interbank Offered Rate [Member] | ||||||||||||||
Line of credit facility, interest rate | 2.00% | 2.19% |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Oct. 03, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | Mar. 30, 2020 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares issued | 1,845,004 | 1,845,004 | 3,364,953 | ||||
Preferred stock, shares outstanding | 1,845,004 | 1,845,004 | 3,364,953 | ||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Common stock, shares, issued | 18,711,463 | 18,711,463 | 17,622,539 | ||||
Common stock, shares, outstanding | 18,711,463 | 18,711,463 | 17,622,539 | ||||
Interest expense | $ 849,076 | $ 1,348,298 | $ 1,458,017 | $ 1,830,820 | |||
Notes Payable [Member] | |||||||
Accrued interest | $ 191,556 | 191,556 | |||||
Interest expense | $ 465,772 | ||||||
Notes Payable [Member] | Common Stock [Member] | |||||||
Number of stock shares issued | 1,088,654 | ||||||
Stock issued during the period retired | 50,000 | ||||||
Number of common shares value | $ 550,000 | ||||||
Series 1 Preferred Stock [Member] | |||||||
Preferred stock, shares authorized | 3,000,000 | ||||||
Series 1 Preferred Stock [Member] | |||||||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 | 3,000,000 | 4,000,000 | |||
Preferred stock, shares issued | 1,795,004 | 1,795,004 | 2,156,784 | ||||
Preferred stock, shares outstanding | 1,795,004 | 1,795,004 | 2,156,784 | ||||
Shares of preferred stock for dividends | 108,169 | ||||||
Series 1 Preferred Stock [Member] | Loan Agreement [Member] | |||||||
Number of stock shares issued | 469,949 | ||||||
Series 1 Preferred Stock [Member] | Settlement Agreement [Member] | Incorrectly Handled and Accounted [Member] | Aron Govil [Member] | |||||||
Shares repurchased during period | 469,949 | ||||||
Series A Preferred Stock [Member] | |||||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Preferred stock, shares issued | 0 | 0 | 1,000,000 | ||||
Preferred stock, shares outstanding | 0 | 0 | 1,000,000 | ||||
Stock issued during the period retired | 1,000,000 | ||||||
Series A Preferred Stock [Member] | Settlement Agreement [Member] | Incorrectly Handled and Accounted [Member] | Aron Govil [Member] | |||||||
Shares repurchased during period | 1,000,000 | ||||||
Preferred Stock Series C [Member] | |||||||
Preferred stock, shares authorized | 100,000 | 100,000 | 100,000 | 100,000 | |||
Preferred stock, par value | $ 0.001 | ||||||
Preferred stock, shares issued | 50,000 | 50,000 | 100,000 | ||||
Preferred stock, shares outstanding | 50,000 | 50,000 | 100,000 | ||||
Preferred stock, voting rights | Under the Certificate of Designation, holders of Series C Preferred Stock are entitled to the number of votes equal to the result of (i) the total number of shares of Common Stock outstanding at the time of such vote multiplied by 10.01, and divided by (ii) the total number of shares of Series C Preferred Stock outstanding at the time of such vote, at each meeting of our shareholders with respect to any and all matters presented to our shareholders for their action or consideration, including the election of directors. | ||||||
Preferred Stock Series C [Member] | Settlement Agreement [Member] | Incorrectly Handled and Accounted [Member] | Aron Govil [Member] | |||||||
Shares repurchased during period | 50,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Narrative) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 65,317 | $ 143,208 |
Unrecognized compensation cost | $ 443,964 | |
Unrecognized compensation expense, expected to be recognized period | 5 years |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 6 Months Ended | |||
Mar. 31, 2021USD ($)ft² | Mar. 31, 2021INR (₨)ft² | Mar. 31, 2021GBP (£)ft² | Mar. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||||
Lease expense | $ 34,613 | $ 20,375 | ||
Operating lease termination description | The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. | The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. | The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. | |
New York [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Area of land | ft² | 2,500 | 2,500 | 2,500 | |
Monthly lease rent payment | $ 13,000 | |||
Lease expense | $ 78,000 | |||
Manchester PA [Member] | IS Segment [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Area of land | ft² | 25,000 | 25,000 | 25,000 | |
York, PA [Member] | IS Segment [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Area of land | ft² | 43,000 | 43,000 | 43,000 | |
Emigsville, PA [Member] | IS Segment [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Area of land | ft² | 15,500 | 15,500 | 15,500 | |
Monthly lease rent payment | $ 4,555 | |||
Lease expense | $ 27,330 | |||
Lease expiration date | Aug. 31, 2022 | Aug. 31, 2022 | Aug. 31, 2022 | |
Lease term | 3 years | 3 years | 3 years | |
Pune, India [Member] | Advanced Technologies [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Area of land | ft² | 6,700 | 6,700 | 6,700 | |
Monthly lease rent payment | $ 6,453 | |||
Lease expense | $ 38,718 | |||
Lease expiration date | Feb. 28, 2024 | Feb. 28, 2024 | Feb. 28, 2024 | |
Lease term | 5 years | 5 years | 5 years | |
Pune, India [Member] | Advanced Technologies [Member] | INR [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Monthly lease rent payment | ₨ | ₨ 456,972 | |||
Hauppauge, New York [Member] | Advanced Technologies [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Area of land | ft² | 30,000 | 30,000 | 30,000 | |
Monthly lease rent payment | $ 28,719 | |||
Lease expense | $ 172,314 | |||
Lease expiration date | Mar. 31, 2027 | Mar. 31, 2027 | Mar. 31, 2027 | |
Lease term | 7 years | 7 years | 7 years | |
Hampshire, England [Member] | Advanced Technologies [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Area of land | ft² | 9,400 | 9,400 | 9,400 | |
Monthly lease rent payment | $ 7,329 | |||
Lease expense | $ 43,974 | |||
Lease expiration date | Mar. 24, 2031 | Mar. 24, 2031 | Mar. 24, 2031 | |
Lease term | 15 years | 15 years | 15 years | |
Operating lease termination description | Terminate in 2026. | Terminate in 2026. | Terminate in 2026. | |
Hampshire, England [Member] | Advanced Technologies [Member] | GBP [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Monthly lease rent payment | £ | £ 5,771 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Mar. 18, 2021 | Jun. 30, 2021 | Apr. 30, 2021 | Apr. 17, 2021 | Apr. 06, 2021 | Mar. 31, 2021 | Sep. 30, 2020 |
Paycheck protection program loan | $ 5,406,477 | $ 2,169,437 | |||||
Preferred stock, shares issued | 1,845,004 | 3,364,953 | |||||
Series 1 Preferred Stock [Member] | |||||||
Preferred stock preference amount | $ 10 | $ 10 | |||||
Preferred stock, shares issued | 1,795,004 | 2,156,784 | |||||
Board of Directors [Member] | Series 1 Preferred Stock [Member] | |||||||
Dividend rate | 10.00% | ||||||
Preferred stock preference amount | $ 10 | ||||||
Holders [Member] | Series 1 Preferred Stock [Member] | |||||||
Preferred stock, shares issued | 90,147 | ||||||
Subsequent Event [Member] | |||||||
Paycheck protection program loan | $ 971,500 | ||||||
Subsequent Event [Member] | First Round [Member] | |||||||
Paycheck protection program loan forgiven | $ 193,000 | $ 3,156,700 |