Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Affiliate, Collateralized Security [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 001-37464 | |
Entity Registrant Name | CEMTREX, INC. | |
Entity Central Index Key | 0001435064 | |
Entity Tax Identification Number | 30-0399914 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 276 Greenpoint Ave | |
Entity Address, Address Line Two | Suite 208 | |
Entity Address, City or Town | Brooklyn | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11222 | |
City Area Code | 631 | |
Local Phone Number | 756-9116 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,782,194 | |
Common Stock [Member] | ||
Affiliate, Collateralized Security [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | CETX | |
Security Exchange Name | NASDAQ | |
Series 1 Preferred Stock [Member] | ||
Affiliate, Collateralized Security [Line Items] | ||
Title of 12(b) Security | Series 1 Preferred Stock | |
Trading Symbol | CETXP | |
Security Exchange Name | NASDAQ | |
Series 1 Warrants [Member] | ||
Affiliate, Collateralized Security [Line Items] | ||
Title of 12(b) Security | Series 1 Warrants | |
Trading Symbol | CETXW | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Current assets | ||
Cash and equivalents | $ 12,879,278 | $ 19,490,061 |
Restricted cash | 1,690,873 | 1,582,798 |
Short-term investments | 452,175 | 887,746 |
Trade receivables, net | 5,234,216 | 6,686,797 |
Trade receivables - related party | 1,505,789 | 1,432,209 |
Inventory –net of allowance for inventory obsolescence | 8,669,397 | 6,793,806 |
Prepaid expenses and other assets | 2,164,367 | 1,188,317 |
Total current assets | 32,596,095 | 38,061,734 |
Property and equipment, net | 7,236,755 | 6,961,751 |
Right-of-use assets | 3,098,523 | 2,728,380 |
Assets held for sale | 8,323,321 | 8,323,321 |
Goodwill | 5,886,096 | 4,370,894 |
Other | 1,094,429 | 744,207 |
Total Assets | 58,235,219 | 61,190,287 |
Current liabilities | ||
Accounts payable | 2,888,144 | 2,857,817 |
Short-term liabilities | 6,381,047 | 7,034,510 |
Lease liabilities - short-term | 840,016 | 721,036 |
Deposits from customers | 39,227 | 29,660 |
Accrued expenses | 2,476,812 | 2,392,487 |
Deferred revenue | 1,794,187 | 1,651,784 |
Accrued income taxes | 331 | 89,318 |
Total current liabilities | 14,419,764 | 14,776,612 |
Long-term liabilities | ||
Loans payable to bank | 1,046,504 | 1,871,201 |
Long-term lease liabilities | 2,261,148 | 2,027,406 |
Notes payable | 3,079,743 | 6,029,999 |
Mortgage payable | 2,282,409 | 2,355,542 |
Other long-term liabilities | 1,078,752 | 1,063,733 |
Paycheck Protection Program Loans | 2,871,161 | 2,169,437 |
Deferred Revenue - long-term | 449,563 | 467,329 |
Total long-term liabilities | 13,069,280 | 15,984,647 |
Total liabilities | 27,489,044 | 30,761,259 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Preferred stock value | ||
Common stock, $0.001 par value, 50,000,000 shares authorized, 18,711,463 shares issued and outstanding at June 30, 2021 and 17,622,539 shares issued and outstanding at September 30, 2020 | 18,711 | 17,623 |
Additional paid-in capital | 58,846,576 | 60,221,766 |
Retained earnings (accumulated deficit) | (30,660,550) | (32,520,084) |
Treasury stock at cost | (148,291) | (148,291) |
Accumulated other comprehensive income (loss) | 1,624,673 | 1,777,112 |
Total Cemtrex stockholders’ equity | 29,683,054 | 29,351,383 |
Non-controlling interest | 1,063,121 | 1,077,645 |
Total liabilities and shareholders’ equity | 58,235,219 | 61,190,287 |
Series 1 Preferred Stock [Member] | ||
Shareholders’ equity | ||
Preferred stock value | 1,885 | 2,157 |
Series A Preferred Stock [Member] | ||
Shareholders’ equity | ||
Preferred stock value | 1,000 | |
Total Cemtrex stockholders’ equity | 1,000 | |
Series C Preferred Stock [Member] | ||
Shareholders’ equity | ||
Preferred stock value | 50 | 100 |
Total Cemtrex stockholders’ equity | $ 50 | $ 100 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Sep. 30, 2020 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 1,935,151 | 3,256,784 |
Preferred stock, shares outstanding | 1,935,151 | 3,256,784 |
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 |
Preferred stock, shares issued | 1,885,151 | 2,156,784 |
Preferred stock, shares outstanding | 1,885,151 | 2,156,784 |
Preferred Stock, Liquidation Preference Per Share | $ 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 |
Series C Preferred Stock [Member] | ||
Preferred stock, shares authorized | 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 | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 10,326,431 | $ 8,440,867 | $ 28,422,892 | $ 32,774,797 |
Cost of revenues | 6,198,715 | 5,161,015 | 16,360,822 | 18,800,355 |
Gross profit | 4,127,716 | 3,279,852 | 12,062,070 | 13,974,442 |
Operating expenses | ||||
General and administrative | 5,670,019 | 5,347,718 | 16,337,200 | 15,380,199 |
Research and development | 757,966 | 331,936 | 2,033,688 | 1,113,455 |
Total operating expenses | 6,427,985 | 5,679,654 | 18,370,888 | 16,493,654 |
Operating income/(loss) | (2,300,269) | (2,399,802) | (6,308,818) | (2,519,212) |
Other income/(expense) | ||||
Other income/(expense) | 3,901,658 | 158,134 | 6,532,590 | 830,251 |
Settlement Agreement - Related Party | 3,674,165 | |||
Interest Expense | (433,009) | (1,982,101) | (1,891,026) | (3,812,921) |
Total other income/(expense), net | 3,468,649 | (1,823,967) | 8,315,729 | (2,982,670) |
Net loss before income taxes | 1,168,380 | (4,223,769) | 2,006,911 | (5,501,882) |
Income tax benefit/(expense) | (40,759) | (7,658) | (168,190) | (197,201) |
Net income/(loss) | 1,127,621 | (4,231,427) | 1,838,721 | (5,699,083) |
Less income in noncontrolling interest | 29,608 | (35,751) | (20,813) | 151,312 |
Net income/(loss) attributable to Cemtrex, Inc. shareholders | 1,098,013 | (4,195,676) | 1,859,534 | (5,850,395) |
Net income/(loss) | 1,127,621 | (4,231,427) | 1,838,721 | (5,699,083) |
Other comprehensive income/(loss) | ||||
Foreign currency translation gain/(loss) | (193,554) | 154,443 | (234,045) | 161,460 |
Defined benefit plan actuarial gain/(loss) | 87,895 | |||
Comprehensive income/(loss) | 934,067 | (4,076,984) | 1,692,571 | (5,537,623) |
Less comprehensive income/(loss) attributable to noncontrolling interest | (35,731) | 41,266 | 14,524 | (118,623) |
Comprehensive income/(loss) attributable to Cemtrex, Inc. shareholders | $ 969,798 | $ (4,118,250) | $ 1,678,047 | $ (5,419,000) |
Income/(loss) Per Share-Basic | $ 0.06 | $ (0.38) | $ 0.10 | $ (0.82) |
Income/(loss) Per Share-Diluted | $ 0.06 | $ (0.38) | $ 0.10 | $ (0.82) |
Weighted Average Number of Shares-Basic | 18,711,463 | 10,933,926 | 18,368,274 | 7,161,785 |
Weighted Average Number of Shares-Diluted | 18,711,463 | 10,933,926 | 18,368,274 | 7,161,785 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Series 1 Preferred Stock [Member] | Series A Preferred Stock [Member] | Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Total | Noncontrolling Interest [Member] |
Beginning balance, shares at Sep. 30, 2019 | 2,110,718 | 1,000,000 | 3,962,790 | |||||||
Beginning balance, value at Sep. 30, 2019 | $ 2,111 | $ 1,000 | $ 3,963 | $ 39,337,117 | $ (23,676,887) | $ 1,791,153 | $ 17,458,457 | $ 885,874 | ||
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 | |||||||||
Stock 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) | ||||||||
Ending balance, value at Dec. 31, 2019 | $ 2,217 | $ 1,000 | $ 100 | $ 4,424 | 39,973,394 | (23,732,505) | 2,373,309 | 18,621,939 | 1,062,356 | |
Ending balance, shares at Dec. 31, 2019 | 2,216,683 | 1,000,000 | 100,000 | 4,424,583 | ||||||
Beginning balance, shares at Sep. 30, 2019 | 2,110,718 | 1,000,000 | 3,962,790 | |||||||
Beginning balance, value at Sep. 30, 2019 | $ 2,111 | $ 1,000 | $ 3,963 | 39,337,117 | (23,676,887) | 1,791,153 | 17,458,457 | 885,874 | ||
Net income/(loss) attributable to noncontrolling interest | 151,312 | |||||||||
Net income (loss) | (5,850,395) | |||||||||
Ending balance, value at Jun. 30, 2020 | $ 2,217 | $ 1,000 | $ 100 | $ 16,264 | 58,476,304 | (29,527,282) | (190,483) | 1,778,823 | 30,556,943 | 1,004,497 |
Ending balance, shares at Jun. 30, 2020 | 2,216,683 | 1,000,000 | 100,000 | 16,263,715 | ||||||
Beginning balance, shares at Dec. 31, 2019 | 2,216,683 | 1,000,000 | 100,000 | 4,424,583 | ||||||
Beginning balance, value at Dec. 31, 2019 | $ 2,217 | $ 1,000 | $ 100 | $ 4,424 | 39,973,394 | (23,732,505) | 2,373,309 | 18,621,939 | 1,062,356 | |
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 | |||||||||
Stock 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) | ||||||||
Noncontrolling interest | (16,593) | |||||||||
Net income (loss) | (1,599,101) | (1,599,101) | ||||||||
Ending balance, value at Mar. 31, 2020 | $ 2,217 | $ 1,000 | $ 100 | $ 7,940 | 44,828,348 | (25,331,606) | (190,483) | 1,624,380 | 20,941,896 | 1,045,763 |
Ending balance, shares at Mar. 31, 2020 | 2,216,683 | 1,000,000 | 100,000 | 7,939,628 | ||||||
Foreign currency translation gain (loss) | 154,443 | 154,443 | ||||||||
Share-based compensation | 24,104 | 24,104 | ||||||||
Shares sold in Securities Purchase Agreements, net of offering costs | $ 5,459 | 10,095,311 | 10,100,770 | |||||||
Shares sold in Securities Purchase Agreements, net of offering costs, shares | 5,458,479 | |||||||||
Stock issued to pay notes payable | $ 2,595 | 3,298,811 | 3,301,406 | |||||||
Shares issued to pay notes payable, shares | 2,595,608 | |||||||||
Shares issued for services | $ 270 | 229,730 | 230,000 | |||||||
Shares issued for services, shares | 270,000 | |||||||||
Net income/(loss) attributable to noncontrolling interest | (35,751) | |||||||||
Noncontrolling interest | (41,266) | |||||||||
Net income (loss) | (4,195,676) | (4,195,676) | ||||||||
Ending balance, value at Jun. 30, 2020 | $ 2,217 | $ 1,000 | $ 100 | $ 16,264 | 58,476,304 | (29,527,282) | (190,483) | 1,778,823 | 30,556,943 | 1,004,497 |
Ending balance, shares at Jun. 30, 2020 | 2,216,683 | 1,000,000 | 100,000 | 16,263,715 | ||||||
Balance at September 30, 2020, as reported at Sep. 30, 2020 | $ 2,157 | $ 1,000 | $ 100 | $ 17,623 | 63,313,336 | (33,172,690) | (148,291) | 853,643 | 30,866,878 | 1,077,645 |
Beginning balance, shares at Sep. 30, 2020 | 2,156,784 | 1,000,000 | 100,000 | 17,622,539 | ||||||
Adjustment at Sep. 30, 2020 | (3,091,570) | 652,606 | 923,469 | (1,515,495) | ||||||
Beginning balance, value at Sep. 30, 2020 | $ 2,157 | $ 1,000 | $ 100 | $ 17,623 | 60,221,766 | (32,520,084) | (148,291) | 1,777,112 | 29,351,383 | 1,077,645 |
Beginning balance, restated shares at Sep. 30, 2020 | 2,156,784 | 1,000,000 | 100,000 | 17,622,539 | ||||||
Foreign currency translation gain (loss) | 37,864 | 37,864 | ||||||||
Share-based compensation | 16,071 | 16,071 | ||||||||
Share-based compensation, shares | ||||||||||
Stock issued to pay notes payable | $ 345 | 407,507 | 407,852 | |||||||
Shares issued to pay notes 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) | ||||||||
Ending balance, value at Dec. 31, 2020 | $ 2,265 | $ 1,000 | $ 100 | $ 17,968 | 60,645,236 | (34,212,695) | (148,291) | 1,814,976 | 28,120,559 | 1,047,015 |
Ending balance, shares at Dec. 31, 2020 | 2,264,953 | 1,000,000 | 100,000 | 17,968,177 | ||||||
Balance at September 30, 2020, as reported at Sep. 30, 2020 | $ 2,157 | $ 1,000 | $ 100 | $ 17,623 | 63,313,336 | (33,172,690) | (148,291) | 853,643 | 30,866,878 | 1,077,645 |
Beginning balance, shares at Sep. 30, 2020 | 2,156,784 | 1,000,000 | 100,000 | 17,622,539 | ||||||
Adjustment at Sep. 30, 2020 | (3,091,570) | 652,606 | 923,469 | (1,515,495) | ||||||
Beginning balance, value at Sep. 30, 2020 | $ 2,157 | $ 1,000 | $ 100 | $ 17,623 | 60,221,766 | (32,520,084) | (148,291) | 1,777,112 | 29,351,383 | 1,077,645 |
Beginning balance, restated shares at Sep. 30, 2020 | 2,156,784 | 1,000,000 | 100,000 | 17,622,539 | ||||||
Net income/(loss) attributable to noncontrolling interest | (20,813) | |||||||||
Net income (loss) | 1,859,534 | |||||||||
Ending balance, value at Jun. 30, 2021 | $ 1,885 | $ 50 | $ 18,711 | 58,846,576 | (30,660,550) | (148,291) | 1,624,673 | 29,683,054 | 1,063,121 | |
Ending balance, shares at Jun. 30, 2021 | 1,885,151 | 50,000 | 18,711,463 | |||||||
Beginning balance, shares at Dec. 31, 2020 | 2,264,953 | 1,000,000 | 100,000 | 17,968,177 | ||||||
Beginning balance, value at Dec. 31, 2020 | $ 2,265 | $ 1,000 | $ 100 | $ 17,968 | 60,645,236 | (34,212,695) | (148,291) | 1,814,976 | 28,120,559 | 1,047,015 |
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 | ||||||||
Stock issued to pay notes payable | $ 743 | 1,298,733 | 1,299,476 | |||||||
Shares issued to pay notes payable, shares | 743,286 | |||||||||
Income in noncontrolling interest | (19,625) | |||||||||
Shares and options surrendered in settelment agreement | $ (470) | $ (1,000) | $ (50) | (3,672,645) | (3,674,165) | |||||
Shares and options surrendered in settlement agreement, shares | (469,949) | (1,000,000) | (50,000) | |||||||
Net income (loss) | 2,454,132 | 2,454,132 | ||||||||
Ending balance, value 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 | |
Ending balance, shares at Mar. 31, 2021 | 1,795,004 | 50,000 | 18,711,463 | |||||||
Foreign currency translation gain (loss) | (199,677) | (199,677) | ||||||||
Share-based compensation | 45,587 | 45,587 | ||||||||
Shares granted to pay notes payable | 480,509 | 480,509 | ||||||||
Income in noncontrolling interest | 35,731 | |||||||||
Dividends paid in Series 1 preferred shares | $ 90 | (90) | ||||||||
Dividends paid in Series 1 preferred shares, shares | 90,147 | |||||||||
Net income/(loss) attributable to noncontrolling interest | 29,608 | |||||||||
Net income (loss) | 1,098,013 | 1,098,013 | ||||||||
Ending balance, value at Jun. 30, 2021 | $ 1,885 | $ 50 | $ 18,711 | $ 58,846,576 | $ (30,660,550) | $ (148,291) | $ 1,624,673 | $ 29,683,054 | $ 1,063,121 | |
Ending balance, shares at Jun. 30, 2021 | 1,885,151 | 50,000 | 18,711,463 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net income/(loss) | $ 1,838,721 | $ (5,699,083) |
Adjustments to reconcile net loss to net cash provided/(used) by operating activities: | ||
Depreciation and amortization | 972,186 | 1,343,207 |
Gain on disposal of property and equipment | 18,583 | 457 |
Amortization of right-of-use assets | 653,175 | 352,691 |
Change in allowance for doubtful accounts | (161,101) | 126 |
Share-based compansation | 110,904 | 167,312 |
Income tax expense/ (benefit) | 168,190 | (197,201) |
Interest expense paid in equity shares | 818,348 | 2,505,924 |
Accrued interest on notes payable | 64,748 | 308,748 |
Amortization of original issue discounts on notes payable | 575,000 | 757,278 |
Gain on marketable securities | (2,407,841) | (607,103) |
Settlement Agreement - Related Party | (3,674,165) | |
Discarge of Paycheck Protection Program Loans | (3,349,700) | |
Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: | ||
Accounts receivable | 1,613,682 | 1,654,383 |
Accounts receivable - related party | (78,594) | 5,510 |
Inventory | (1,875,591) | (1,384,453) |
Prepaid expenses and other curent asstets | (976,050) | (514,580) |
Other assets | 149,778 | (1,017,337) |
Other liabilities | 15,019 | (117,667) |
Accounts payable | 30,327 | (1,205,851) |
Operating lease liabilities | (650,535) | (296,892) |
Deposits from customers | 9,567 | 2,003 |
Accrued expenses | (78,851) | 383,230 |
Deferred revenue | 124,637 | (99,354) |
Income taxes payable | (88,987) | 272,925 |
Net cash used by operating activities | (6,178,550) | (3,385,727) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (1,113,658) | (4,541,537) |
Investment in Virtual Driver Interactive | (1,075,428) | |
Investment in MasterpieceVR | (500,000) | |
Investment in related party | (500,000) | |
Proceeds from sale of marketable securities | 9,134,159 | 22,720,132 |
Purchase of marketable securities | (6,290,747) | (23,479,038) |
Purchases of treasury stock | (190,483) | |
Note Receivable - Related party | ||
Net cash used by investing activities | 154,326 | (5,990,926) |
Cash Flows from Financing Activities | ||
Proceeds from notes payable | 4,485,000 | |
Payments on notes payable | (2,145,257) | (726,640) |
Proceeds on bank loans | 5,947,101 | |
Payments on bank loans | (957,186) | (224,196) |
Proceeds from Paycheck Protection Program Loans | 2,942,285 | |
Proceeds from securities purchase agreements | 12,462,648 | |
Payments on capital lease liabilities | (20,061) | (13,838) |
Expenses on securities purchase agreements | (840,728) | |
Revolving line of credit | (425,812) | |
Net cash provided/(used) by financing activities | (180,219) | 20,663,535 |
Effect of currency translation | (298,265) | 128,771 |
Net increase in cash, cash equivalents, and restricted cash | (6,204,443) | 11,286,882 |
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 | 14,570,151 | 14,273,738 |
Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash | ||
Cash and equivalents | 12,879,278 | 12,939,493 |
Restricted cash | 1,690,873 | 1,334,245 |
Total cash, cash equivalents, and restricted cash | 14,570,151 | 14,273,738 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 432,930 | 240,971 |
Cash paid during the period for income taxes | 88,987 | 75,724 |
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 | 428,538 | |
Stock issued to pay notes payable | $ 2,187,837 | $ 6,933,924 |
ORGANIZATION AND PLAN OF OPERAT
ORGANIZATION AND PLAN OF OPERATIONS | 9 Months Ended |
Jun. 30, 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. Now the Company has two 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 $ 1,339,774 175,428 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 $ 900,000 439,774 5 239,774 200,000 175,428 Strategic Investment On November 13, 2020, Cemtrex made a $ 500,000 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 | 9 Months Ended |
Jun. 30, 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 nine-month periods ended June 30, 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 5,600,000 1,500,000 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 5,700,000 975,000 7,100,000 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 nine months ended June 30, 2020, Condensed Consolidated Statement of Stockholders’ Equity, and the Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2020. Condensed Consolidated Balance Sheets SCHEDULE OF 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) SCHEDULE OF CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) For the three months ended June 30, 2020 Previously reported Adjustments Adjusted Net Income income/(loss) attributable to Cemtrex, Inc. shareholders $ (4,454,617 ) $ 258,941 $ (4,195,676 ) Foreign currency translation gain/(loss) $ 310,797 $ (156,354 ) $ 154,443 Loss Per Share-Basic $ (0.41 ) $ 0.02 $ (0.38 ) Loss Per Share-Diluted $ (0.41 ) $ 0.02 $ (0.38 ) For the nine months ended June 30, 2020 Previously reported Adjustments Adjusted Net loss available to Cemtrex, Inc. shareholders $ (6,658,086 ) $ 807,691 $ (5,850,395 ) Foreign currency translation gain $ 153,420 $ 8,040 $ 161,460 Loss Per Share-Basic $ (0.93 ) $ 0.11 $ (0.82 ) Loss Per Share-Diluted $ (0.93 ) $ 0.11 $ (0.82 ) Condensed Consolidated Statement of Stockholders’ Equity SCHEDULE OF CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY For the nine months ended June 30, 2020 Previously reported Adjustments Adjusted Retained earnings (accumulated deficit) at September 30, 2019 $ (20,067,685 ) $ (3,609,202 ) $ (23,676,887 ) Net income/(loss) $ (8,744,636 ) $ 2,894,241 $ (5,850,395 ) Retained earnings (accumulated deficit) at June 30, 2020 $ (28,812,321 ) $ (714,961 ) $ (29,527,282 ) Accumulated other comprehensive income/(loss)at September 30, 2019 $ 796,004 $ 995,149 $ 1,791,153 Comprehensive income/(loss) $ 153,420 $ 8,040 $ 161,460 Accumulated other comprehensive income/(loss) at June 30, 2020 $ 949,424 $ 829,399 $ 1,778,823 Additional paid-in capital $ 60,543,674 $ (2,067,370 ) $ 58,476,304 Condensed Consolidated Statements of Cash Flows SCHEDULE OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the nine months ended June 30, 2020 Previously reported Adjustments Adjusted Net loss $ (6,506,774 ) $ 807,691 $ (5,699,083 ) Depreciation and amortization $ 2,158,938 $ (815,731 ) $ 1,343,207 Net cash used by operating activities $ (3,377,687 ) $ (8,040 ) $ (3,385,727 ) Effect of currency translation $ 120,731 $ 8,040 $ 128,771 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 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 In March 2021, Mr. Govil returned to the Company 1,000,000 50,000 469,949 The Company recognized the gain with respect to the surrendered Securities during this reporting period. The gain of $ 3,674,165 As discussed above, Mr. Govil also executed a secured promissory note (the “Note”) in the amount of $ 1,533,280 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 | 9 Months Ended |
Jun. 30, 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 nine months ended June 30, 2021, and 2020, the following items were excluded from the computation of diluted net loss per common share as their effect is anti-dilutive: SCHEDULE OF EXCLUDED FROM COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE For the three months ended For the nine months ended June 30, June 30, 2021 2020 2021 2020 Warrants to purchase shares 433,965 433,965 433,965 433,965 Options 1,383,965 1,145,871 1,383,965 1,204,329 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 4 – SEGMENT INFORMATION The Company reports and evaluates financial information for two The following tables summarize the Company’s segment information: SCHEDULE OF SEGMENT INFORMATION For the three months ended For the nine months ended June 30, June 30, 2021 2020 2021 2020 Revenues from external customers Advanced Technologies $ 5,845,958 $ 4,977,424 $ 16,006,241 $ 18,389,057 Industrial Services $ 4,480,473 3,463,443 12,416,651 14,385,740 Total revenues $ 10,326,431 $ 8,440,867 $ 28,422,892 $ 32,774,797 Gross profit Advanced Technologies $ 2,693,677 $ 1,837,957 $ 7,686,875 $ 8,712,543 Industrial Services 1,434,039 1,441,895 4,375,195 5,261,899 Total gross profit $ 4,127,716 $ 3,279,852 $ 12,062,070 $ 13,974,442 Operating loss (restated) (restated) Advanced Technologies $ (1,650,221 ) $ (1,595,405 ) $ (5,185,944 ) $ (1,686,680 ) Industrial Services (650,048 ) (804,397 ) (1,122,874 ) (832,532 ) Total operating loss $ (2,300,269 ) $ (2,399,802 ) $ (6,308,818 ) $ (2,519,212 ) Other income/(expense) Advanced Technologies $ 4,955,782 $ (1,795,637 ) $ 5,666,112 $ (2,868,033 ) Industrial Services (1,487,133 ) (28,330 ) 2,649,617 (114,637 ) Total other expense $ 3,468,649 $ (1,823,967 ) $ 8,315,729 $ (2,982,670 ) Depreciation and Amortization (restated) (restated) Advanced Technologies $ 103,177 $ 114,151 $ 308,755 $ 212,088 Industrial Services 189,005 358,128 663,431 1,139,159 Total depreciation and amortization $ 292,182 $ 472,279 $ 972,186 $ 1,351,247 September 30, June 30, 2020 2020 (restated) Identifiable Assets Advanced Technologies $ 31,726,862 $ 36,732,018 Industrial Services 17,640,536 15,590,448 Discontinued operations 8,867,821 8,867,821 Total Assets $ 58,235,219 $ 61,190,287 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jun. 30, 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 June 30, 2021, are as follows. SCHEDULE OF FAIR VALUE OF ASSETS Quoted Prices in Active Significant Markets for Other Significant Balance Identical Observable Unobservable as of Assets Inputs Inputs June 30, (Level 1) (Level 2) (Level 3) 2021 Assets Investment in marketable securities (included in short-term investments) $ 452,175 $ - $ - $ 452,175 Investment in MasterpieceVR $ 500,000 $ 500,000 (included in Other assets) $ 452,175 $ - $ 500,000 $ 952,175 |
RESTRICTED CASH
RESTRICTED CASH | 9 Months Ended |
Jun. 30, 2021 | |
Restricted Cash | |
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 $ 1,533,458 157,415 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 9 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 7 – ACCOUNTS RECEIVABLE, NET Accounts receivables, net consist of the following: SCHEDULE OF ACCOUNTS RECEIVABLE, NET June 30, + September 30, 2021 2020 Accounts receivable $ 5,413,963 $ 7,027,645 Allowance for doubtful accounts (179,747 ) (340,848 ) Accounts receivables, net, total $ 5,234,216 $ 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 | 9 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY, NET | NOTE 8 – INVENTORY, NET Inventory, net, consist of the following: SCHEDULE OF INVENTORY, NET June 30, September 30, 2021 2020 Raw materials $ 2,309,734 $ 3,959,888 Work in progress 779,929 995,184 Finished goods 6,751,717 6,413,927 Inventory, gross 9,841,380 11,368,999 Less: Allowance for inventory obsolescence (1,171,983 ) (4,575,193 ) Inventory –net of allowance for inventory obsolescence $ 8,669,397 $ 6,793,806 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 9 – PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: SUMMARY OF PROPERTY AND EQUIPMENT June 30, September 30, 2021 2020 (restated) Land $ 790,373 $ 790,373 Building and leasehold improvements 3,962,225 3,875,796 Furniture and office equipment 687,055 621,790 Computers and software 346,051 264,940 Trade show display 89,330 89,330 Machinery and equipment 14,675,127 13,668,263 20,550,161 19,310,492 Less: Accumulated depreciation (13,313,406 ) (12,348,741 ) Property and equipment, net $ 7,236,755 $ 6,961,751 Depreciation expense for the three and nine months ended June 30, 2021, and 2020 were $ 292,182 972,186 472,279 1,351,247 |
LEASES
LEASES | 9 Months Ended |
Jun. 30, 2021 | |
Leases | |
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 2 7 Finance and operating lease liabilities consist of the following: SUMMARY OF FINANCE AND OPERATING LEASE LIABILITIES June 30, September 30, 2021 2020 Lease liabilities - current Finance leases $ - $ 20,061 Operating leases 840,016 700,975 840,016 721,036 Lease liabilities - net of current portion Finance leases $ - $ - Operating leases 2,261,148 2,027,406 $ 2,261,148 $ 2,027,406 A reconciliation of undiscounted cash flows to finance and operating lease liabilities recognized in the condensed consolidated balance sheet at June 30, 2021, is set forth below: SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO FINANCE AND OPERATING LEASE LIABILITIES Years ending September 30, Finance leases Operating Leases Total 2021 - 236,899 236,899 2022 - 895,590 895,590 2023 - 712,413 712,413 2024 - 576,687 576,687 2025 - 552,884 552,884 2026 & Thereafter - 621,099 621,099 Undiscounted lease payments - 3,595,572 3,595,572 Amount representing interest - (494,408 ) (494,408 ) Discounted lease payments $ - $ 3,101,164 $ 3,101,164 Additional disclosures of lease data are set forth below: SCHEDULE OF LEASE COSTS Nine months ended June 30, 2021 March 31, 2020 Lease costs: Finance lease costs: Depreciation of finance lease assets $ 17,184 $ 11,456 Interest on lease liabilities 88 416 Operating lease costs: Amortization of right-of-use assets 653,175 275,822 Interest on lease liabilities 56,927 20,375 Total lease cost $ 727,374 $ 308,069 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 650,535 $ 296,892 Finance leases 28,535 13,838 $ 679,070 $ 310,730 Weighted-average remaining lease term - finance leases (months) 3 13 Weighted-average remaining lease term - operating leases (months) 58 73 Weighted-average discount rate - finance leases 3.63 % 6.95 % Weighted-average discount rate - operating leases 6.85 % 6.98 % 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 | 9 Months Ended |
Jun. 30, 2021 | |
Prepaid And Other Current Assets | |
PREPAID AND OTHER CURRENT ASSETS | NOTE 11 – PREPAID AND OTHER CURRENT ASSETS On June 30, 2021, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $ 397,056 1,767,311 101,308 1,087,009 |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | NOTE 12 - OTHER ASSETS As of June 30, 2021, the Company had other assets of $ 1,094,429 248,160 500,000 346,269 744,207 294,553 449,654 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 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 1,515,820 1,432,209 At June 30, 2021, $ 500,000 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 | 9 Months Ended |
Jun. 30, 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 2.00 2.09 Loans payable to bank On December15, 2015, the Company acquired a loan from Fulton Bank in the amount of $ 5,250,000 5,000,000 2.25 2.34 December 15, 2022 On December15, 2015, the Company acquired a loan from Fulton Bank in the amount of $ 620,000 2.00 2.09 December 15, 2020 On May 1, 2018, the Company acquired a loan from Fulton Bank in the amount of $ 400,000 2.00 2.09 May 1, 2023 On January 28, 2020, the Company acquired a loan from Fulton Bank in the amount of $ 360,000 2.25 2.44 May 1, 2023 Notes payable On December 23, 2019, the Company, issued a note payable to an independent private lender in the amount of $ 1,725,000 8 June 23, 2021 225,000 5,000 1,495,000 On April 24, 2020, the Company, issued a note payable to an independent private lender in the amount of $ 1,725,000 8 October 24, 2021 225,000 5,00 1,495,000 On September 30, 2020, the Company, issued a note payable to an independent private lender in the amount of $ 4,605,000 8 March 30, 2022 600,000 5,000 4,000,000 On March 3, 2020, Vicon, a subsidiary of the Company amended the $ 5,600,000 500,000 500,000 8.85 March 30, 2022 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 $ 3,381,433 905,433 2,476,000 2.50 2.59 January 28, 2040 Paycheck Protection Program Loans In April and May of 2020, the Company and its subsidiaries applied for and were granted $ 3,471,100 1 710,046 3,156,700 193,000 On January 24, 2021, and April 17, 2021, subsidiaries of the company received additional $ 1,970,785 971,500 1 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 15 – STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 10,000,000 0.001 1,935,151 3,256,784 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 4,000,000 For the nine months ended June 30, 2021, 198,316 During the nine-month period ended June 30, 2021, the Company retired 469,949 As of June 30, 2021, and September 30, 2020, there were 1,885,151 2,156,784 Series A Preferred stock During the nine-month period ended June 30, 2021, the Company retired 1,000,000 As of June 30, 2021, and September 30, 2020, there were zero 1,000,000 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 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 nine-month period ended June 30, 2021, the Company retired 50,000 As of June 30, 2021, and September 30, 2020, there were 50,000 100,000 Common Stock The Company is authorized to issue 50,000,000 0.001 18,711,463 17,622,539 During the nine months ended June 30, 1,088,924 550,000 191,556 465,772 318,218 400,000 80,509 Shares Surrendered in Settlement In March 2021, Mr. Govil returned to the Company 1,000,000 50,000 469,949 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 16 – SHARE-BASED COMPENSATION For the nine months ended June 30, 2021, and 2020, the Company recognized $ 110,904 67,212 401,690 five |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 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 13,000 117,000 The Company’s IS segment owns approximately 25,000 43,000 15,500 three 4,555 August 31, 2022 40,995 The Company’s AT segment leases (i) approximately 6,700 five 6,453 456,972 February 28, 2024 58,077 30,000 seven 28,719 March 31, 2027 258,471 9,400 fifteen 7,329 5,771 March 24, 2031 terminate in 2026 65,961 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 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. In July of 2021, the Company issued 2,070,731 2,837,814 |
INTERIM STATEMENT PRESENTATION
INTERIM STATEMENT PRESENTATION (Policies) | 9 Months Ended |
Jun. 30, 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 nine-month periods ended June 30, 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 5,600,000 1,500,000 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 5,700,000 975,000 7,100,000 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 nine months ended June 30, 2020, Condensed Consolidated Statement of Stockholders’ Equity, and the Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2020. Condensed Consolidated Balance Sheets SCHEDULE OF 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) SCHEDULE OF CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) For the three months ended June 30, 2020 Previously reported Adjustments Adjusted Net Income income/(loss) attributable to Cemtrex, Inc. shareholders $ (4,454,617 ) $ 258,941 $ (4,195,676 ) Foreign currency translation gain/(loss) $ 310,797 $ (156,354 ) $ 154,443 Loss Per Share-Basic $ (0.41 ) $ 0.02 $ (0.38 ) Loss Per Share-Diluted $ (0.41 ) $ 0.02 $ (0.38 ) For the nine months ended June 30, 2020 Previously reported Adjustments Adjusted Net loss available to Cemtrex, Inc. shareholders $ (6,658,086 ) $ 807,691 $ (5,850,395 ) Foreign currency translation gain $ 153,420 $ 8,040 $ 161,460 Loss Per Share-Basic $ (0.93 ) $ 0.11 $ (0.82 ) Loss Per Share-Diluted $ (0.93 ) $ 0.11 $ (0.82 ) Condensed Consolidated Statement of Stockholders’ Equity SCHEDULE OF CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY For the nine months ended June 30, 2020 Previously reported Adjustments Adjusted Retained earnings (accumulated deficit) at September 30, 2019 $ (20,067,685 ) $ (3,609,202 ) $ (23,676,887 ) Net income/(loss) $ (8,744,636 ) $ 2,894,241 $ (5,850,395 ) Retained earnings (accumulated deficit) at June 30, 2020 $ (28,812,321 ) $ (714,961 ) $ (29,527,282 ) Accumulated other comprehensive income/(loss)at September 30, 2019 $ 796,004 $ 995,149 $ 1,791,153 Comprehensive income/(loss) $ 153,420 $ 8,040 $ 161,460 Accumulated other comprehensive income/(loss) at June 30, 2020 $ 949,424 $ 829,399 $ 1,778,823 Additional paid-in capital $ 60,543,674 $ (2,067,370 ) $ 58,476,304 Condensed Consolidated Statements of Cash Flows SCHEDULE OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the nine months ended June 30, 2020 Previously reported Adjustments Adjusted Net loss $ (6,506,774 ) $ 807,691 $ (5,699,083 ) Depreciation and amortization $ 2,158,938 $ (815,731 ) $ 1,343,207 Net cash used by operating activities $ (3,377,687 ) $ (8,040 ) $ (3,385,727 ) Effect of currency translation $ 120,731 $ 8,040 $ 128,771 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 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 In March 2021, Mr. Govil returned to the Company 1,000,000 50,000 469,949 The Company recognized the gain with respect to the surrendered Securities during this reporting period. The gain of $ 3,674,165 As discussed above, Mr. Govil also executed a secured promissory note (the “Note”) in the amount of $ 1,533,280 |
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) | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF CONDENSED CONSOLIDATED BALANCE SHEETS | Condensed Consolidated Balance Sheets SCHEDULE OF 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) SCHEDULE OF CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) For the three months ended June 30, 2020 Previously reported Adjustments Adjusted Net Income income/(loss) attributable to Cemtrex, Inc. shareholders $ (4,454,617 ) $ 258,941 $ (4,195,676 ) Foreign currency translation gain/(loss) $ 310,797 $ (156,354 ) $ 154,443 Loss Per Share-Basic $ (0.41 ) $ 0.02 $ (0.38 ) Loss Per Share-Diluted $ (0.41 ) $ 0.02 $ (0.38 ) For the nine months ended June 30, 2020 Previously reported Adjustments Adjusted Net loss available to Cemtrex, Inc. shareholders $ (6,658,086 ) $ 807,691 $ (5,850,395 ) Foreign currency translation gain $ 153,420 $ 8,040 $ 161,460 Loss Per Share-Basic $ (0.93 ) $ 0.11 $ (0.82 ) Loss Per Share-Diluted $ (0.93 ) $ 0.11 $ (0.82 ) |
SCHEDULE OF CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY | Condensed Consolidated Statement of Stockholders’ Equity SCHEDULE OF CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY For the nine months ended June 30, 2020 Previously reported Adjustments Adjusted Retained earnings (accumulated deficit) at September 30, 2019 $ (20,067,685 ) $ (3,609,202 ) $ (23,676,887 ) Net income/(loss) $ (8,744,636 ) $ 2,894,241 $ (5,850,395 ) Retained earnings (accumulated deficit) at June 30, 2020 $ (28,812,321 ) $ (714,961 ) $ (29,527,282 ) Accumulated other comprehensive income/(loss)at September 30, 2019 $ 796,004 $ 995,149 $ 1,791,153 Comprehensive income/(loss) $ 153,420 $ 8,040 $ 161,460 Accumulated other comprehensive income/(loss) at June 30, 2020 $ 949,424 $ 829,399 $ 1,778,823 Additional paid-in capital $ 60,543,674 $ (2,067,370 ) $ 58,476,304 |
SCHEDULE OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | Condensed Consolidated Statements of Cash Flows SCHEDULE OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the nine months ended June 30, 2020 Previously reported Adjustments Adjusted Net loss $ (6,506,774 ) $ 807,691 $ (5,699,083 ) Depreciation and amortization $ 2,158,938 $ (815,731 ) $ 1,343,207 Net cash used by operating activities $ (3,377,687 ) $ (8,040 ) $ (3,385,727 ) Effect of currency translation $ 120,731 $ 8,040 $ 128,771 |
LOSS PER COMMON SHARE (Tables)
LOSS PER COMMON SHARE (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF EXCLUDED FROM COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE | SCHEDULE OF EXCLUDED FROM COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE For the three months ended For the nine months ended June 30, June 30, 2021 2020 2021 2020 Warrants to purchase shares 433,965 433,965 433,965 433,965 Options 1,383,965 1,145,871 1,383,965 1,204,329 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT INFORMATION | The following tables summarize the Company’s segment information: SCHEDULE OF SEGMENT INFORMATION For the three months ended For the nine months ended June 30, June 30, 2021 2020 2021 2020 Revenues from external customers Advanced Technologies $ 5,845,958 $ 4,977,424 $ 16,006,241 $ 18,389,057 Industrial Services $ 4,480,473 3,463,443 12,416,651 14,385,740 Total revenues $ 10,326,431 $ 8,440,867 $ 28,422,892 $ 32,774,797 Gross profit Advanced Technologies $ 2,693,677 $ 1,837,957 $ 7,686,875 $ 8,712,543 Industrial Services 1,434,039 1,441,895 4,375,195 5,261,899 Total gross profit $ 4,127,716 $ 3,279,852 $ 12,062,070 $ 13,974,442 Operating loss (restated) (restated) Advanced Technologies $ (1,650,221 ) $ (1,595,405 ) $ (5,185,944 ) $ (1,686,680 ) Industrial Services (650,048 ) (804,397 ) (1,122,874 ) (832,532 ) Total operating loss $ (2,300,269 ) $ (2,399,802 ) $ (6,308,818 ) $ (2,519,212 ) Other income/(expense) Advanced Technologies $ 4,955,782 $ (1,795,637 ) $ 5,666,112 $ (2,868,033 ) Industrial Services (1,487,133 ) (28,330 ) 2,649,617 (114,637 ) Total other expense $ 3,468,649 $ (1,823,967 ) $ 8,315,729 $ (2,982,670 ) Depreciation and Amortization (restated) (restated) Advanced Technologies $ 103,177 $ 114,151 $ 308,755 $ 212,088 Industrial Services 189,005 358,128 663,431 1,139,159 Total depreciation and amortization $ 292,182 $ 472,279 $ 972,186 $ 1,351,247 September 30, June 30, 2020 2020 (restated) Identifiable Assets Advanced Technologies $ 31,726,862 $ 36,732,018 Industrial Services 17,640,536 15,590,448 Discontinued operations 8,867,821 8,867,821 Total Assets $ 58,235,219 $ 61,190,287 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUE OF ASSETS | The Company’s fair value assets at June 30, 2021, are as follows. SCHEDULE OF FAIR VALUE OF ASSETS Quoted Prices in Active Significant Markets for Other Significant Balance Identical Observable Unobservable as of Assets Inputs Inputs June 30, (Level 1) (Level 2) (Level 3) 2021 Assets Investment in marketable securities (included in short-term investments) $ 452,175 $ - $ - $ 452,175 Investment in MasterpieceVR $ 500,000 $ 500,000 (included in Other assets) $ 452,175 $ - $ 500,000 $ 952,175 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE, NET | Accounts receivables, net consist of the following: SCHEDULE OF ACCOUNTS RECEIVABLE, NET June 30, + September 30, 2021 2020 Accounts receivable $ 5,413,963 $ 7,027,645 Allowance for doubtful accounts (179,747 ) (340,848 ) Accounts receivables, net, total $ 5,234,216 $ 6,686,797 |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY, NET | Inventory, net, consist of the following: SCHEDULE OF INVENTORY, NET June 30, September 30, 2021 2020 Raw materials $ 2,309,734 $ 3,959,888 Work in progress 779,929 995,184 Finished goods 6,751,717 6,413,927 Inventory, gross 9,841,380 11,368,999 Less: Allowance for inventory obsolescence (1,171,983 ) (4,575,193 ) Inventory –net of allowance for inventory obsolescence $ 8,669,397 $ 6,793,806 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
SUMMARY OF PROPERTY AND EQUIPMENT | Property and equipment are summarized as follows: SUMMARY OF PROPERTY AND EQUIPMENT June 30, September 30, 2021 2020 (restated) Land $ 790,373 $ 790,373 Building and leasehold improvements 3,962,225 3,875,796 Furniture and office equipment 687,055 621,790 Computers and software 346,051 264,940 Trade show display 89,330 89,330 Machinery and equipment 14,675,127 13,668,263 20,550,161 19,310,492 Less: Accumulated depreciation (13,313,406 ) (12,348,741 ) Property and equipment, net $ 7,236,755 $ 6,961,751 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Leases | |
SUMMARY OF FINANCE AND OPERATING LEASE LIABILITIES | Finance and operating lease liabilities consist of the following: SUMMARY OF FINANCE AND OPERATING LEASE LIABILITIES June 30, September 30, 2021 2020 Lease liabilities - current Finance leases $ - $ 20,061 Operating leases 840,016 700,975 840,016 721,036 Lease liabilities - net of current portion Finance leases $ - $ - Operating leases 2,261,148 2,027,406 $ 2,261,148 $ 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 June 30, 2021, is set forth below: SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO FINANCE AND OPERATING LEASE LIABILITIES Years ending September 30, Finance leases Operating Leases Total 2021 - 236,899 236,899 2022 - 895,590 895,590 2023 - 712,413 712,413 2024 - 576,687 576,687 2025 - 552,884 552,884 2026 & Thereafter - 621,099 621,099 Undiscounted lease payments - 3,595,572 3,595,572 Amount representing interest - (494,408 ) (494,408 ) Discounted lease payments $ - $ 3,101,164 $ 3,101,164 |
SCHEDULE OF LEASE COSTS | Additional disclosures of lease data are set forth below: SCHEDULE OF LEASE COSTS Nine months ended June 30, 2021 March 31, 2020 Lease costs: Finance lease costs: Depreciation of finance lease assets $ 17,184 $ 11,456 Interest on lease liabilities 88 416 Operating lease costs: Amortization of right-of-use assets 653,175 275,822 Interest on lease liabilities 56,927 20,375 Total lease cost $ 727,374 $ 308,069 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 650,535 $ 296,892 Finance leases 28,535 13,838 $ 679,070 $ 310,730 Weighted-average remaining lease term - finance leases (months) 3 13 Weighted-average remaining lease term - operating leases (months) 58 73 Weighted-average discount rate - finance leases 3.63 % 6.95 % Weighted-average discount rate - operating leases 6.85 % 6.98 % |
ORGANIZATION AND PLAN OF OPER_2
ORGANIZATION AND PLAN OF OPERATIONS (Details Narrative) | Oct. 26, 2022USD ($) | Oct. 26, 2021USD ($) | Oct. 26, 2020USD ($) | Aug. 15, 2019Segments | Jun. 30, 2021Segments | May 31, 2021USD ($) | Nov. 13, 2020USD ($) |
Entity Listings [Line Items] | |||||||
Number of reportable segments | Segments | 2 | ||||||
Contingent consideration | $ 175,428 | ||||||
Forecast [Member] | Installment One [Member] | |||||||
Entity Listings [Line Items] | |||||||
Debt monthly payments | $ 239,774 | ||||||
Forecast [Member] | Installment Two [Member] | |||||||
Entity Listings [Line Items] | |||||||
Debt monthly payments | $ 200,000 | ||||||
Virtual Driver Interactive [Member] | |||||||
Entity Listings [Line Items] | |||||||
Purchase price of acquisition | $ 1,339,774 | ||||||
Contingent consideration | 175,428 | ||||||
Cash payment to acquire | 900,000 | ||||||
Notes payable | $ 439,774 | ||||||
Interest rate | 500.00% | ||||||
Vicon Industries, Inc. [Member] | |||||||
Entity Listings [Line Items] | |||||||
Number of reportable segments | Segments | 2 | ||||||
MasterpieceVR [Member] | |||||||
Entity Listings [Line Items] | |||||||
Equity investment | $ 500,000 |
SCHEDULE OF CONDENSED CONSOLIDA
SCHEDULE OF CONDENSED CONSOLIDATED BALANCE SHEETS (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 |
Reclassification [Line Items] | ||||
Property and equipment, net | $ 7,236,755 | $ 6,961,751 | ||
Series 1 preferred stock dividends payable | ||||
Additional paid-in capital | 58,846,576 | 60,221,766 | ||
Retained earnings (accumulated deficit) | (30,660,550) | (32,520,084) | $ (29,527,282) | $ (23,676,887) |
Accumulated other comprehensive income | $ 1,624,673 | 1,777,112 | 1,778,823 | 1,791,153 |
Adjustment of Net Value of Intangible Assets [Member] | ||||
Reclassification [Line Items] | ||||
Property and equipment, net | (2,597,185) | |||
Restatement on Dividends [Member] | ||||
Reclassification [Line Items] | ||||
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 Derecognition of Expenses [Member] | ||||
Reclassification [Line Items] | ||||
Retained earnings (accumulated deficit) | 3,579,346 | |||
Loss on Amounts Transferred to First Commercial [Member] | ||||
Reclassification [Line Items] | ||||
Retained earnings (accumulated deficit) | (7,100,000) | |||
Cumulative Effect of Currency Translation [Member] | ||||
Reclassification [Line Items] | ||||
Accumulated other comprehensive income | 923,469 | |||
Previously Reported [Member] | ||||
Reclassification [Line Items] | ||||
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) | (28,812,321) | (20,067,685) | |
Accumulated other comprehensive income | $ 853,643 | $ 949,424 | $ 796,004 |
SCHEDULE OF CONDENSED CONSOLI_2
SCHEDULE OF CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification [Line Items] | ||||||||
Net loss available to Cemtrex, Inc. shareholders | $ 1,098,013 | $ 2,454,132 | $ (1,692,611) | $ (4,195,676) | $ (1,599,101) | $ (55,618) | $ 1,859,534 | $ (5,850,395) |
Foreign currency translation gain/(loss) | $ (193,554) | $ 154,443 | $ (234,045) | $ 161,460 | ||||
Loss Per Share-Basic | $ 0.06 | $ (0.38) | $ 0.10 | $ (0.82) | ||||
Loss Per Share-Diluted | $ 0.06 | $ (0.38) | $ 0.10 | $ (0.82) | ||||
Previously Reported [Member] | ||||||||
Reclassification [Line Items] | ||||||||
Net loss available to Cemtrex, Inc. shareholders | $ (4,454,617) | $ (6,658,086) | ||||||
Foreign currency translation gain/(loss) | $ 310,797 | $ 153,420 | ||||||
Loss Per Share-Basic | $ (0.41) | $ (0.93) | ||||||
Loss Per Share-Diluted | $ (0.41) | $ (0.93) | ||||||
Revision of Prior Period, Adjustment [Member] | ||||||||
Reclassification [Line Items] | ||||||||
Net loss available to Cemtrex, Inc. shareholders | $ 258,941 | $ 807,691 | ||||||
Foreign currency translation gain/(loss) | $ (156,354) | $ 8,040 | ||||||
Loss Per Share-Basic | $ 0.02 | $ 0.11 | ||||||
Loss Per Share-Diluted | $ 0.02 | $ 0.11 |
SCHEDULE OF CONDENSED CONSOLI_3
SCHEDULE OF CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification [Line Items] | ||||
Retained earnings (accumulated deficit) at September 30, 2019 | $ (32,520,084) | $ (23,676,887) | ||
Net income/(loss) | (5,850,395) | |||
Retained earnings (accumulated deficit) at March 31, 2020 | $ (30,660,550) | $ (29,527,282) | (30,660,550) | (29,527,282) |
Accumulated other comprehensive income/(loss)at September 30, 2019 | 1,777,112 | 1,791,153 | ||
Comprehensive income/(loss) | (193,554) | 154,443 | (234,045) | 161,460 |
Accumulated other comprehensive income/(loss) at March 31, 2020 | $ 1,624,673 | 1,778,823 | 1,624,673 | 1,778,823 |
Additional paid-in capital | 58,476,304 | |||
Previously Reported [Member] | ||||
Reclassification [Line Items] | ||||
Retained earnings (accumulated deficit) at September 30, 2019 | (33,172,690) | (20,067,685) | ||
Net income/(loss) | (8,744,636) | |||
Retained earnings (accumulated deficit) at March 31, 2020 | (28,812,321) | (28,812,321) | ||
Accumulated other comprehensive income/(loss)at September 30, 2019 | $ 853,643 | 796,004 | ||
Comprehensive income/(loss) | 310,797 | 153,420 | ||
Accumulated other comprehensive income/(loss) at March 31, 2020 | 949,424 | 949,424 | ||
Additional paid-in capital | 60,543,674 | |||
Revision of Prior Period, Adjustment [Member] | ||||
Reclassification [Line Items] | ||||
Retained earnings (accumulated deficit) at September 30, 2019 | (3,609,202) | |||
Net income/(loss) | 2,894,241 | |||
Retained earnings (accumulated deficit) at March 31, 2020 | (714,961) | (714,961) | ||
Accumulated other comprehensive income/(loss)at September 30, 2019 | 995,149 | |||
Comprehensive income/(loss) | (156,354) | 8,040 | ||
Accumulated other comprehensive income/(loss) at March 31, 2020 | $ 829,399 | 829,399 | ||
Additional paid-in capital | $ (2,067,370) |
SCHEDULE OF CONDENSED CONSOLI_4
SCHEDULE OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification [Line Items] | ||||
Net loss | $ 1,127,621 | $ (4,231,427) | $ 1,838,721 | $ (5,699,083) |
Depreciation and amortization | 972,186 | 1,343,207 | ||
Net cash used by operating activities | (6,178,550) | (3,385,727) | ||
Effect of currency translation | $ (298,265) | 128,771 | ||
Previously Reported [Member] | ||||
Reclassification [Line Items] | ||||
Net loss | (6,506,774) | |||
Depreciation and amortization | 2,158,938 | |||
Net cash used by operating activities | (3,377,687) | |||
Effect of currency translation | 120,731 | |||
Revision of Prior Period, Adjustment [Member] | ||||
Reclassification [Line Items] | ||||
Net loss | 807,691 | |||
Depreciation and amortization | (815,731) | |||
Net cash used by operating activities | (8,040) | |||
Effect of currency translation | $ 8,040 |
INTERIM STATEMENT PRESENTATIO_3
INTERIM STATEMENT PRESENTATION (Details Narrative) - USD ($) | Feb. 26, 2021 | Feb. 23, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2018 | Sep. 30, 2017 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Research and development expenses | $ 757,966 | $ 331,936 | $ 2,033,688 | $ 1,113,455 | ||||||
Settlement Agreement [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
One-time gain | $ 3,674,165 | |||||||||
Settlement Agreement [Member] | Aron Govil [Member] | Preferred Stock And Outstanding Options [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Receivable from related party | 1,533,280 | |||||||||
Incorrectly Handled and Accounted [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
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 Restatement [Line Items] | ||||||||||
Error corrections and prior period adjustments, description | 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 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 Restatement [Line Items] | ||||||||||
Receivable from related party | $ 7,100,000 | |||||||||
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 | |||||||||
Shares repurchased during period, value | $ 1,533,280 | |||||||||
Incorrectly Handled and Accounted [Member] | Settlement Agreement [Member] | Aron Govil [Member] | Series A Preferred Stock [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Shares repurchased during period | 1,000,000 | 1,000,000 | ||||||||
Incorrectly Handled and Accounted [Member] | Settlement Agreement [Member] | Aron Govil [Member] | Series C Preferred Stock [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Shares repurchased during period | 50,000 | 50,000 | ||||||||
Incorrectly Handled and Accounted [Member] | Settlement Agreement [Member] | Aron Govil [Member] | Series 1 Preferred Stock [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Shares repurchased during period | 469,949 | 469,949 | ||||||||
Incorrectly Handled and Accounted [Member] | Disputes [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Dispute amount | $ 7,100,000 | $ 1,500,000 | $ 5,600,000 |
SCHEDULE OF EXCLUDED FROM COMPU
SCHEDULE OF EXCLUDED FROM COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Computation of diluted net loss per common share as anti-dilutive | 433,965 | 433,965 | 433,965 | 433,965 |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Computation of diluted net loss per common share as anti-dilutive | 1,383,965 | 1,145,871 | 1,383,965 | 1,204,329 |
SCHEDULE OF SEGMENT INFORMATION
SCHEDULE OF SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 10,326,431 | $ 8,440,867 | $ 28,422,892 | $ 32,774,797 | |
Total gross profit | 4,127,716 | 3,279,852 | 12,062,070 | 13,974,442 | |
Total operating loss | (2,300,269) | (2,399,802) | (6,308,818) | (2,519,212) | |
Total other expense | 3,468,649 | (1,823,967) | 8,315,729 | (2,982,670) | |
Total depreciation and amortization | 292,182 | 472,279 | 972,186 | 1,351,247 | |
Total Assets | 58,235,219 | 58,235,219 | 58,235,219 | 58,235,219 | $ 61,190,287 |
Discontinued Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Assets | 8,867,821 | 8,867,821 | 8,867,821 | ||
Advanced Technologies [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 5,845,958 | 4,977,424 | 16,006,241 | 18,389,057 | |
Total gross profit | 2,693,677 | 1,837,957 | 7,686,875 | 8,712,543 | |
Total operating loss | (1,650,221) | (1,595,405) | (5,185,944) | (1,686,680) | |
Total other expense | 4,955,782 | (1,795,637) | 5,666,112 | (2,868,033) | |
Total depreciation and amortization | 103,177 | 114,151 | 308,755 | 212,088 | |
Total Assets | 31,726,862 | 31,726,862 | 36,732,018 | ||
Industrial Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 4,480,473 | 3,463,443 | 12,416,651 | 14,385,740 | |
Total gross profit | 1,434,039 | 1,441,895 | 4,375,195 | 5,261,899 | |
Total operating loss | (650,048) | (804,397) | (1,122,874) | (832,532) | |
Total other expense | (1,487,133) | (28,330) | 2,649,617 | (114,637) | |
Total depreciation and amortization | $ 189,005 | 358,128 | $ 663,431 | 1,139,159 | |
Total Assets | $ 17,640,536 | $ 17,640,536 | $ 15,590,448 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 9 Months Ended |
Jun. 30, 2021Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SCHEDULE OF FAIR VALUE OF ASSET
SCHEDULE OF FAIR VALUE OF ASSETS (Details) | Jun. 30, 2021USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value assets | $ 952,175 |
Marketable Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value assets | 452,175 |
MasterpieceVR [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value assets | 500,000 |
Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value assets | 452,175 |
Fair Value, Inputs, Level 1 [Member] | Marketable Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value assets | 452,175 |
Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value assets | |
Fair Value, Inputs, Level 2 [Member] | Marketable Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value assets | |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value assets | 500,000 |
Fair Value, Inputs, Level 3 [Member] | Marketable Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value assets | |
Fair Value, Inputs, Level 3 [Member] | MasterpieceVR [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value assets | $ 500,000 |
RESTRICTED CASH (Details Narrat
RESTRICTED CASH (Details Narrative) | Jun. 30, 2021USD ($) |
Restricted Cash | |
Restricted cash | $ 1,533,458 |
Accrued expenses | $ 157,415 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Receivables [Abstract] | ||
Accounts receivable | $ 5,413,963 | $ 7,027,645 |
Allowance for doubtful accounts | (179,747) | (340,848) |
Accounts receivables, net, total | $ 5,234,216 | $ 6,686,797 |
SCHEDULE OF INVENTORY, NET (Det
SCHEDULE OF INVENTORY, NET (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,309,734 | $ 3,959,888 |
Work in progress | 779,929 | 995,184 |
Finished goods | 6,751,717 | 6,413,927 |
Inventory, gross | 9,841,380 | 11,368,999 |
Less: Allowance for inventory obsolescence | (1,171,983) | (4,575,193) |
Inventory –net of allowance for inventory obsolescence | $ 8,669,397 | $ 6,793,806 |
SUMMARY OF PROPERTY AND EQUIPME
SUMMARY OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 20,550,161 | $ 19,310,492 |
Less: Accumulated depreciation | (13,313,406) | (12,348,741) |
Property and equipment, net | 7,236,755 | 6,961,751 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 790,373 | 790,373 |
Building and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,962,225 | 3,875,796 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 687,055 | 621,790 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 346,051 | 264,940 |
Trade Show Display [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 89,330 | 89,330 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,675,127 | $ 13,668,263 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 292,182 | $ 472,279 | $ 972,186 | $ 1,351,247 |
SUMMARY OF FINANCE AND OPERATIN
SUMMARY OF FINANCE AND OPERATING LEASE LIABILITIES (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items] | ||
Lease liabilities - current | $ 840,016 | $ 721,036 |
Lease liabilities - net of current portion | 2,261,148 | 2,027,406 |
Other Liabilities [Member] | ||
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items] | ||
Lease liabilities - current, Finance leases | 20,061 | |
Lease liabilities - current, Operating leases | 840,016 | 700,975 |
Lease liabilities - current | 840,016 | 721,036 |
Lease liabilities - net of current portion, Finance leases | ||
Lease liabilities - net of current portion, Operating leases | 2,261,148 | 2,027,406 |
Lease liabilities - net of current portion | $ 2,261,148 | $ 2,027,406 |
SCHEDULE OF RECONCILIATION OF U
SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO FINANCE AND OPERATING LEASE LIABILITIES (Details) | Jun. 30, 2021USD ($) |
Leases | |
Finance leases, 2021 | |
Operating Leases, 2021 | 236,899 |
Total, 2021 | 236,899 |
Finance leases, 2022 | |
Operating Leases, 2022 | 895,590 |
Total, 2022 | 895,590 |
Finance leases, 2023 | |
Operating Leases, 2023 | 712,413 |
Total, 2023 | 712,413 |
Finance leases, 2024 | |
Operating Leases, 2024 | 576,687 |
Total, 2024 | 576,687 |
Finance leases, 2025 | |
Operating Leases, 2025 | 552,884 |
Total, 2025 | 552,884 |
Finance leases, 2026 & thereafter | |
Operating Leases, 2026 & thereafter | 621,099 |
Total, 2026 & thereafter | 621,099 |
Finance leases, Undiscounted lease payments | |
Operating Leases, Undiscounted lease payments | 3,595,572 |
Total, Undiscounted lease payments | 3,595,572 |
Finance leases, Amount representing interest | |
Operating Leases, Amount representing interest | (494,408) |
Total, Amount representing interest | (494,408) |
Finance leases, Discounted lease payments | |
Operating Leases, Discounted lease payments | 3,101,164 |
Total, Discounted lease payments | $ 3,101,164 |
SCHEDULE OF LEASE COSTS (Detail
SCHEDULE OF LEASE COSTS (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases | ||
Finance lease costs: Depreciation of finance lease assets | $ 17,184 | $ 11,456 |
Finance lease costs: Interest on lease liabilities | 88 | 416 |
Operating lease costs: Amortization of right-of-use assets | 653,175 | 275,822 |
Operating lease costs: Interest on lease liabilities | 56,927 | 20,375 |
Total lease cost | 727,374 | 308,069 |
Cash paid for amounts included in the measurement of lease liabilities: Operating leases | 650,535 | 296,892 |
Cash paid for amounts included in the measurement of lease liabilities: Finance leases | 28,535 | 13,838 |
Cash paid for amounts included in the measurement of lease liabilities: Total | $ 679,070 | $ 310,730 |
Weighted-average remaining lease term - finance leases (months) | 3 months | 13 months |
Weighted-average remaining lease term - operating leases (months) | 58 months | 73 months |
Weighted-average discount rate - finance leases | 3.63% | 695.00% |
Weighted-average discount rate - operating leases | 6.85% | 6.98% |
LEASES (Details Narrative)
LEASES (Details Narrative) | 9 Months Ended |
Jun. 30, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |
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] | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |
Operating lease term | 2 years |
Maximum [Member] | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |
Operating lease term | 7 years |
Industrial Services [Member] | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |
Finance lease term | 3 years |
PREPAID AND OTHER CURRENT ASS_2
PREPAID AND OTHER CURRENT ASSETS (Details Narrative) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Prepaid And Other Current Assets | ||
Prepayments on inventory purchases | $ 397,056 | $ 101,308 |
Other assets, current | $ 1,767,311 | $ 1,087,009 |
OTHER ASSETS (Details Narrative
OTHER ASSETS (Details Narrative) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets | $ 1,094,429 | $ 744,207 |
Rent security deposits | 248,160 | 294,553 |
Investment | 500,000 | |
Other assets excluding rent security | $ 346,269 | $ 449,654 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Aug. 31, 2019 | Jun. 30, 2021 | Sep. 30, 2020 |
Related Party Transaction [Line Items] | |||
Trade receivables related parties | $ 1,505,789 | $ 1,432,209 | |
Ducon Technologies Inc., [Member] | |||
Related Party Transaction [Line Items] | |||
Trade receivables related parties | 1,515,820 | $ 1,432,209 | |
Griffin Filters, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Trade receivables related parties | $ 500,000 | ||
Description of remaining balance due | At June 30, 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] | |||
Related Party Transaction [Line Items] | |||
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 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 17, 2021 | Jan. 24, 2021 | May 31, 2020 |
Line of Credit Facility [Line Items] | ||||||||||||||
Proceeds from notes payable | $ 4,485,000 | |||||||||||||
Repayment of notes payable | 2,145,257 | $ 726,640 | ||||||||||||
Long term liabilities | $ 15,984,647 | $ 13,069,280 | $ 13,069,280 | |||||||||||
Term Loan Agreement [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt instrument, interest rate | 8.85% | |||||||||||||
Debt instrument, maturity date | Mar. 30, 2022 | |||||||||||||
Note payable | $ 5,600,000 | |||||||||||||
Repayment of notes payable | 500,000 | |||||||||||||
Term Loan Agreement [Member] | One Year [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Repayment of notes payable | $ 500,000 | |||||||||||||
Paycheck Protection Program [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt instrument, interest rate | 1.00% | 1.00% | ||||||||||||
Loan granted on paycheck protection | $ 3,471,100 | |||||||||||||
Other long-term liabilities | $ 710,046 | |||||||||||||
Debt forgiveness | $ 193,000 | $ 3,156,700 | ||||||||||||
Loans payable | $ 971,500 | $ 1,970,785 | ||||||||||||
Independent Third-party [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
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 | 5,000 | |||||||||||
Proceeds from notes payable | $ 4,000,000 | $ 1,495,000 | $ 1,495,000 | |||||||||||
Advanced Industrial Services, Inc [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Purchase price | $ 3,381,433 | |||||||||||||
Long term liabilities | 905,433 | |||||||||||||
Advanced Industrial Services, Inc [Member] | Fulton Bank [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Long term liabilities | 2,476,000 | |||||||||||||
Notes Payable Due on May 1, 2023 [Member] | Fulton Bank [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Loans payable to bank | $ 360,000 | $ 400,000 | ||||||||||||
Debt instrument, interest rate | 2.09% | 2.09% | ||||||||||||
Notes Payable Due on May 1, 2023 [Member] | Fulton Bank [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt instrument, interest rate | 2.44% | 2.44% | ||||||||||||
Advanced Industrial Services, Inc [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Payments to acquire businesses and interest in affiliates | $ 5,000,000 | |||||||||||||
Advanced Industrial Services, Inc [Member] | Notes Payable Due on May 1, 2023 [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt instrument, maturity date | May 1, 2023 | May 1, 2023 | ||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Advanced Industrial Services, Inc [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt instrument, interest rate | 2.50% | 2.59% | 2.59% | |||||||||||
Debt instrument, maturity date | Jan. 28, 2040 | |||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Notes Payable Due on May 1, 2023 [Member] | Fulton Bank [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt instrument, variable interest rate | 2.25% | 2.00% | ||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Advanced Industrial Services, Inc [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt instrument, variable interest rate | 2.25% | |||||||||||||
Fulton Bank [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of credit | $ 3,500,000 | |||||||||||||
Loans payable to bank | $ 5,250,000 | |||||||||||||
Debt instrument, interest rate | 2.34% | 2.34% | ||||||||||||
Debt instrument, maturity date | Dec. 15, 2022 | |||||||||||||
Fulton Bank [Member] | Notes Payable Due on December 15, 2020 [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Loans payable to bank | $ 620,000 | |||||||||||||
Debt instrument, interest rate | 2.09% | 2.09% | ||||||||||||
Debt instrument, maturity date | Dec. 15, 2020 | |||||||||||||
Fulton Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Notes Payable Due on December 15, 2020 [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt instrument, variable interest rate | 2.00% | |||||||||||||
Fulton Bank One [Member]. | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of credit facility, interest rate | 2.00% | 2.09% | 2.09% |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | Oct. 03, 2019 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Mar. 30, 2020 |
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Preferred stock, shares issued | 1,935,151 | 1,935,151 | 1,935,151 | 3,256,784 | ||||||
Preferred stock, shares outstanding | 1,935,151 | 1,935,151 | 1,935,151 | 3,256,784 | ||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common stock, shares, issued | 18,711,463 | 18,711,463 | 18,711,463 | 17,622,539 | ||||||
Common stock, shares, outstanding | 18,711,463 | 18,711,463 | 18,711,463 | 17,622,539 | ||||||
Interest expense | $ 433,009 | $ 1,982,101 | $ 1,891,026 | $ 3,812,921 | ||||||
Notes Payable [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Accrued interest | $ 191,556 | $ 191,556 | 191,556 | |||||||
Interest expense | $ 80,509 | $ 465,772 | ||||||||
Notes Payable [Member] | Common Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of stock shares issued | 318,218 | 1,088,924 | ||||||||
Stock issued during the period retired | 50,000 | |||||||||
Number of common shares value | $ 400,000 | $ 550,000 | ||||||||
Series 1 Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | ||||||
Preferred stock, shares issued | 1,885,151 | 1,885,151 | 1,885,151 | 2,156,784 | ||||||
Preferred stock, shares outstanding | 1,885,151 | 1,885,151 | 1,885,151 | 2,156,784 | ||||||
Shares of preferred stock for dividends | 198,316 | |||||||||
Series 1 Preferred Stock [Member] | Term Loan Agreement [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of stock shares issued | 469,949 | |||||||||
Series 1 Preferred Stock [Member] | Settlement Agreement [Member] | Incorrectly Handled and Accounted [Member] | Aron Govil [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares repurchased during period | 469,949 | 469,949 | ||||||||
Series 1 Preferred Stock [Member] | Minimum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | 3,000,000 | |||||||||
Series 1 Preferred Stock [Member] | Maximum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | 4,000,000 | |||||||||
Series A Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||
Preferred stock, shares issued | 0 | 0 | 0 | 1,000,000 | ||||||
Preferred stock, shares outstanding | 0 | 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] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares repurchased during period | 1,000,000 | 1,000,000 | ||||||||
Series C Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | |||||
Preferred stock, par value | $ 0.001 | |||||||||
Preferred stock, shares issued | 50,000 | 50,000 | 50,000 | 100,000 | ||||||
Preferred stock, shares outstanding | 50,000 | 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 | |||||||||
Series C Preferred Stock [Member] | Settlement Agreement [Member] | Incorrectly Handled and Accounted [Member] | Aron Govil [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares repurchased during period | 50,000 | 50,000 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 110,904 | $ 67,212 |
Unrecognized compensation cost | $ 401,690 | |
Unrecognized compensation expense, expected to be recognized period | 5 years |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 9 Months Ended | |||
Jun. 30, 2021USD ($)ft² | Jun. 30, 2021INR (₨)ft² | Jun. 30, 2021GBP (£)ft² | Jun. 30, 2020USD ($) | |
Product Liability Contingency [Line Items] | ||||
Lease expense | $ 56,927 | $ 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 | ||||
Product Liability Contingency [Line Items] | ||||
Area of land | ft² | 2,500 | 2,500 | 2,500 | |
Monthly lease rent payment | $ 13,000 | |||
Lease expense | $ 117,000 | |||
Manchester PA [Member]. | IS Segment [Member]. | ||||
Product Liability Contingency [Line Items] | ||||
Area of land | ft² | 25,000 | 25,000 | 25,000 | |
York, PA [Member]. | IS Segment [Member]. | ||||
Product Liability Contingency [Line Items] | ||||
Area of land | ft² | 43,000 | 43,000 | 43,000 | |
Emigsville, PA [Member] | IS Segment [Member]. | ||||
Product Liability Contingency [Line Items] | ||||
Area of land | ft² | 15,500 | 15,500 | 15,500 | |
Monthly lease rent payment | $ 4,555 | |||
Lease expense | $ 40,995 | |||
Lease term | 3 years | 3 years | 3 years | |
Lease expiration date | Aug. 31, 2022 | Aug. 31, 2022 | Aug. 31, 2022 | |
Pune, India [Member]. | Advanced Technologies [Member] | ||||
Product Liability Contingency [Line Items] | ||||
Area of land | ft² | 6,700 | 6,700 | 6,700 | |
Monthly lease rent payment | $ 6,453 | |||
Lease expense | $ 58,077 | |||
Lease term | 5 years | 5 years | 5 years | |
Lease expiration date | Feb. 28, 2024 | Feb. 28, 2024 | Feb. 28, 2024 | |
Pune, India [Member]. | Advanced Technologies [Member] | INR [Member] | ||||
Product Liability Contingency [Line Items] | ||||
Monthly lease rent payment | ₨ | ₨ 456,972 | |||
Hauppauge, New York [Member]. | Advanced Technologies [Member] | ||||
Product Liability Contingency [Line Items] | ||||
Area of land | ft² | 30,000 | 30,000 | 30,000 | |
Monthly lease rent payment | $ 28,719 | |||
Lease expense | $ 258,471 | |||
Lease term | 7 years | 7 years | 7 years | |
Lease expiration date | Mar. 31, 2027 | Mar. 31, 2027 | Mar. 31, 2027 | |
Hampshire, England [Member] | Advanced Technologies [Member] | ||||
Product Liability Contingency [Line Items] | ||||
Area of land | ft² | 9,400 | 9,400 | 9,400 | |
Monthly lease rent payment | $ 7,329 | |||
Lease expense | $ 65,961 | |||
Lease term | 15 years | 15 years | 15 years | |
Lease expiration date | Mar. 24, 2031 | Mar. 24, 2031 | Mar. 24, 2031 | |
Operating lease termination description | terminate in 2026 | terminate in 2026 | terminate in 2026 | |
Hampshire, England [Member] | Advanced Technologies [Member] | GBP [Member] | ||||
Product Liability Contingency [Line Items] | ||||
Monthly lease rent payment | £ | £ 5,771 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] | 1 Months Ended |
Jul. 31, 2021USD ($) | |
Subsequent Event [Line Items] | |
Stock Issued During Period, Value, New Issues | $ 2,070,731 |
Debt Conversion, Original Debt, Amount | $ 2,837,814 |