Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2023 | Aug. 08, 2023 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
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 | 135 Fell Ct | |
Entity Address, City or Town | Hauppauge | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11788 | |
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 | 998,334 | |
Common Stock [Member] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | CETX | |
Security Exchange Name | NASDAQ | |
Series 1 Preferred Stock | ||
Title of 12(b) Security | Series 1 Preferred Stock | |
Trading Symbol | CETXP | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Current assets | ||
Cash and equivalents | $ 5,628,839 | $ 9,895,761 |
Restricted cash | 805,273 | 1,577,915 |
Short-term investments | 13,663 | 13,721 |
Inventory –net of allowance for inventory obsolescence | 8,719,740 | 8,487,817 |
Prepaid expenses and other assets | 3,089,416 | 2,421,644 |
Assets of discontinued operations | 3,971,693 | |
Total current assets | 26,343,074 | 31,767,767 |
Property and equipment, net | 6,180,771 | 5,280,442 |
Right-of-use assets | 2,213,341 | 2,641,198 |
Goodwill | 3,906,891 | 3,906,891 |
Other | 1,646,403 | 1,399,745 |
Total Assets | 41,743,676 | 45,757,628 |
Current liabilities | ||
Short-term liabilities, net of unamortized original issue discounts | 17,185,167 | 16,894,743 |
Lease liabilities - short-term | 716,896 | 754,495 |
Deposits from customers | 34,281 | 73,144 |
Accrued expenses | 3,536,097 | 2,271,188 |
Deferred revenue | 2,060,570 | 1,551,088 |
Accrued income taxes | 49,075 | 94,848 |
Liabilities of discontinued operations | 805,219 | |
Total current liabilities | 27,310,563 | 25,514,795 |
Long-term liabilities | ||
Loans payable to bank | 54,578 | 110,331 |
Long-term lease liabilities | 1,496,445 | 1,822,468 |
Notes payable | 1,379,743 | |
Mortgage payable | 2,110,020 | 2,160,169 |
Other long-term liabilities | 528,952 | 807,898 |
Paycheck Protection Program Loans | 60,695 | 97,120 |
Deferred Revenue - long-term | 623,007 | 607,309 |
Total long-term liabilities | 6,253,440 | 5,605,295 |
Total liabilities | 33,564,003 | 31,120,090 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Common stock, $0.001 par value, 50,000,000 shares authorized, 957,760 shares issued and outstanding at June 30, 2023 and 754,711 shares issued and outstanding at September 30, 2022 | 958 | 755 |
Additional paid-in capital | 68,302,617 | 66,641,698 |
Accumulated deficit | (62,947,549) | (54,929,020) |
Treasury stock, 64,100 shares of Series 1 Preferred Stock at June 30, 2023 and September 30, 2022 | (148,291) | (148,291) |
Accumulated other comprehensive income | 2,306,346 | 2,377,525 |
Total Cemtrex stockholders’ equity | 7,516,424 | 13,944,796 |
Non-controlling interest | 663,249 | 692,742 |
Total liabilities and shareholders’ equity | 41,743,676 | 45,757,628 |
Series 1 Preferred Stock [Member] | ||
Stockholders’ equity | ||
Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at June 30, 2023 and September 30, 2022 | 2,293 | 2,079 |
Series C Preferred Stock [Member] | ||
Stockholders’ equity | ||
Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at June 30, 2023 and September 30, 2022 | 50 | 50 |
Nonrelated Party [Member] | ||
Current assets | ||
Trade receivables, net | 7,507,755 | 5,399,216 |
Current liabilities | ||
Accounts payable | 3,725,105 | 3,050,937 |
Related Party [Member] | ||
Current assets | ||
Trade receivables, net | 578,388 | |
Royalties receivable - related party | 691,611 | |
Note receivable - related party | 761,585 | 761,585 |
Current liabilities | ||
Accounts payable | $ 3,372 | $ 19,133 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Sep. 30, 2022 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 2,343,016 | 2,129,122 |
Preferred stock, shares outstanding | 2,278,916 | 2,065,022 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 957,760 | 754,711 |
Common stock, shares outstanding | 957,760 | 754,711 |
Series 1 Preferred Stock [Member] | ||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 2,293,016 | 2,079,122 |
Preferred stock, shares outstanding | 2,228,916 | 2,015,022 |
Preferred stock, liquidation value per share | $ 10 | $ 10 |
Treasury stock, shares authorized | 64,100 | 64,100 |
Series C Preferred Stock [Member] | ||
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 14,730,140 | $ 12,108,904 | $ 42,773,779 | $ 33,268,316 |
Cost of revenues | 8,249,497 | 7,068,797 | 23,914,249 | 21,236,178 |
Gross profit | 6,480,643 | 5,040,107 | 18,859,530 | 12,032,138 |
Operating expenses | ||||
General and administrative | 5,376,960 | 5,381,529 | 16,456,602 | 16,095,373 |
Research and development | 1,049,909 | 1,189,875 | 3,895,717 | 3,660,883 |
Total operating expenses | 6,426,869 | 6,571,404 | 20,352,319 | 19,756,256 |
Operating income/(loss) | 53,774 | (1,531,297) | (1,492,789) | (7,724,118) |
Other income/(expense) | ||||
Other income | 34,652 | 2,315,500 | 394,073 | 3,336,560 |
Interest expense | (1,254,185) | (925,545) | (3,717,557) | (3,641,432) |
Total other (expense)/income, net | (1,219,533) | 1,389,955 | (3,323,484) | (304,872) |
Net loss before income taxes | (1,165,759) | (141,342) | (4,816,273) | (8,028,990) |
Income tax benefit/(expense) | (19,641) | 247,941 | (19,641) | 247,941 |
(Loss)/income from Continuing operations | (1,185,400) | 106,599 | (4,835,914) | (7,781,049) |
Income/(loss) from discontinued operations, net of tax | 13,281 | (838,301) | (3,212,108) | (2,282,399) |
Net loss | (1,172,119) | (731,702) | (8,048,022) | (10,063,448) |
Less loss in noncontrolling interest | (25,595) | (50,909) | (29,493) | (183,457) |
Net loss attributable to Cemtrex, Inc. shareholders | $ (1,146,524) | $ (680,793) | $ (8,018,529) | $ (9,879,991) |
Income (loss) per share - Basic & Diluted | ||||
Continuing Operations Income (loss) per share - basic | $ (1.29) | $ 0.21 | $ (5.83) | $ (10.94) |
Continuing Operations Income (loss) per share - diluted | (1.29) | 0.21 | (5.83) | (10.94) |
Discontinued Operations Income (loss) per share - basic | 0.01 | (1.14) | (3.89) | (3.29) |
Discontinued Operations Income (loss) per share - diluted | $ 0.01 | $ (1.14) | $ (3.89) | $ (3.29) |
Weighted Average Number of Shares - Basic | 897,897 | 736,506 | 824,689 | 694,758 |
Weighted Average Number of Shares - Diluted | 897,897 | 736,506 | 824,689 | 694,758 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other comprehensive loss | ||||
Net loss | $ (1,172,119) | $ (731,702) | $ (8,048,022) | $ (10,063,448) |
Foreign currency translation gain/(loss) | 22,470 | (200,880) | (71,179) | (341,011) |
Comprehensive loss | (1,149,649) | (932,582) | (8,119,201) | (10,404,459) |
Less comprehensive income attributable to noncontrolling interest | 25,595 | 50,909 | 29,493 | 183,457 |
Comprehensive loss attributable to Cemtrex, Inc. shareholders | $ (1,175,244) | $ (983,491) | $ (8,148,694) | $ (10,587,916) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] Series 1 Preferred Stock [Member] | Preferred Stock [Member] Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, Preferred [Member] | AOCI Attributable to Parent [Member] | Total | Noncontrolling Interest [Member] |
Balance at Sep. 30, 2021 | $ 1,885 | $ 50 | $ 594 | $ 61,748,022 | $ (41,908,062) | $ (148,291) | $ 2,896,452 | $ 22,590,650 | $ 964,026 |
Balance, shares at Sep. 30, 2021 | 1,885,151 | 50,000 | 593,777 | ||||||
Foreign currency translation gain/(loss) | 59,492 | 59,492 | |||||||
Share-based compensation | 45,371 | 45,371 | |||||||
Shares issued to pay notes payable | $ 83 | 3,287,988 | 3,288,071 | ||||||
Shares issued to pay notes payable, shares | 82,600 | ||||||||
Dividends paid in Series 1 preferred shares | $ 95 | (95) | |||||||
Dividends paid in Series 1 preferred shares, shares | 94,602 | ||||||||
Income/(loss) attributable to noncontrolling interest | (51,872) | ||||||||
Net loss | (4,477,951) | (4,477,951) | |||||||
Balance at Dec. 31, 2021 | $ 1,980 | $ 50 | $ 677 | 65,081,286 | (46,386,013) | (148,291) | 2,955,944 | 21,505,633 | 912,154 |
Balance, shares at Dec. 31, 2021 | 1,979,753 | 50,000 | 676,377 | ||||||
Balance at Sep. 30, 2021 | $ 1,885 | $ 50 | $ 594 | 61,748,022 | (41,908,062) | (148,291) | 2,896,452 | 22,590,650 | 964,026 |
Balance, shares at Sep. 30, 2021 | 1,885,151 | 50,000 | 593,777 | ||||||
Net loss | (9,879,991) | ||||||||
Balance at Jun. 30, 2022 | $ 2,079 | $ 50 | $ 751 | 66,547,597 | (51,788,053) | (148,291) | 2,555,441 | 17,169,574 | 780,569 |
Balance, shares at Jun. 30, 2022 | 2,079,122 | 50,000 | 750,380 | ||||||
Balance at Sep. 30, 2021 | $ 1,885 | $ 50 | $ 594 | 61,748,022 | (41,908,062) | (148,291) | 2,896,452 | 22,590,650 | 964,026 |
Balance, shares at Sep. 30, 2021 | 1,885,151 | 50,000 | 593,777 | ||||||
Net loss | 13,020,958 | ||||||||
Balance at Sep. 30, 2022 | $ 2,079 | $ 50 | $ 755 | 66,641,698 | (54,929,020) | (148,291) | 2,377,525 | 13,944,796 | 692,742 |
Balance, shares at Sep. 30, 2022 | 2,079,122 | 50,000 | 754,711 | ||||||
Balance at Dec. 31, 2021 | $ 1,980 | $ 50 | $ 677 | 65,081,286 | (46,386,013) | (148,291) | 2,955,944 | 21,505,633 | 912,154 |
Balance, shares at Dec. 31, 2021 | 1,979,753 | 50,000 | 676,377 | ||||||
Foreign currency translation gain/(loss) | (199,623) | (199,623) | |||||||
Share-based compensation | 27,046 | 27,046 | |||||||
Income/(loss) attributable to noncontrolling interest | (80,676) | ||||||||
Net loss | (4,721,247) | (4,721,247) | |||||||
Shares issued with note payable | $ 29 | 695,371 | 695,400 | ||||||
Shares issued with note payable, shares | 28,571 | ||||||||
Balance at Mar. 31, 2022 | $ 1,980 | $ 50 | $ 706 | 65,803,703 | (51,107,260) | (148,291) | 2,756,321 | 17,307,209 | 831,478 |
Balance, shares at Mar. 31, 2022 | 1,979,753 | 50,000 | 704,948 | ||||||
Foreign currency translation gain/(loss) | (200,880) | (200,880) | |||||||
Share-based compensation | 38,985 | 38,985 | |||||||
Shares issued to pay notes payable | $ 45 | 705,008 | 705,053 | ||||||
Dividends paid in Series 1 preferred shares | $ 99 | (99) | |||||||
Dividends paid in Series 1 preferred shares, shares | 99,369 | ||||||||
Income/(loss) attributable to noncontrolling interest | (50,909) | ||||||||
Net loss | (680,793) | (680,793) | |||||||
Shares issued with note payable, shares | 45,432 | ||||||||
Balance at Jun. 30, 2022 | $ 2,079 | $ 50 | $ 751 | 66,547,597 | (51,788,053) | (148,291) | 2,555,441 | 17,169,574 | 780,569 |
Balance, shares at Jun. 30, 2022 | 2,079,122 | 50,000 | 750,380 | ||||||
Balance at Sep. 30, 2022 | $ 2,079 | $ 50 | $ 755 | 66,641,698 | (54,929,020) | (148,291) | 2,377,525 | 13,944,796 | 692,742 |
Balance, shares at Sep. 30, 2022 | 2,079,122 | 50,000 | 754,711 | ||||||
Foreign currency translation gain/(loss) | 223,569 | 223,569 | |||||||
Share-based compensation | 39,842 | 39,842 | |||||||
Shares issued to pay notes payable | $ 39 | 232,106 | 232,145 | ||||||
Shares issued to pay notes payable, shares | 39,016 | ||||||||
Dividends paid in Series 1 preferred shares | $ 104 | (104) | |||||||
Dividends paid in Series 1 preferred shares, shares | 104,341 | ||||||||
Income/(loss) attributable to noncontrolling interest | (59,163) | ||||||||
Net loss | (6,277,211) | (6,277,211) | |||||||
Balance at Dec. 31, 2022 | $ 2,183 | $ 50 | $ 794 | 66,913,542 | (61,206,231) | (148,291) | 2,601,094 | 8,163,141 | 633,579 |
Balance, shares at Dec. 31, 2022 | 2,183,463 | 50,000 | 793,727 | ||||||
Balance at Sep. 30, 2022 | $ 2,079 | $ 50 | $ 755 | 66,641,698 | (54,929,020) | (148,291) | 2,377,525 | 13,944,796 | 692,742 |
Balance, shares at Sep. 30, 2022 | 2,079,122 | 50,000 | 754,711 | ||||||
Net loss | (8,018,529) | ||||||||
Shares issued to pay for services | $ 141,872 | ||||||||
Shares issued to pay for services, shares | 22,017 | ||||||||
Balance at Jun. 30, 2023 | $ 2,293 | $ 50 | $ 958 | 68,302,617 | (62,947,549) | (148,291) | 2,306,346 | $ 7,516,424 | 663,249 |
Balance, shares at Jun. 30, 2023 | 2,293,016 | 50,000 | 957,760 | ||||||
Balance at Dec. 31, 2022 | $ 2,183 | $ 50 | $ 794 | 66,913,542 | (61,206,231) | (148,291) | 2,601,094 | 8,163,141 | 633,579 |
Balance, shares at Dec. 31, 2022 | 2,183,463 | 50,000 | 793,727 | ||||||
Foreign currency translation gain/(loss) | (317,218) | (317,218) | |||||||
Share-based compensation | 26,735 | 26,735 | |||||||
Income/(loss) attributable to noncontrolling interest | 55,265 | ||||||||
Net loss | (594,794) | (594,794) | |||||||
Additional rounding shares issued for reverse stock split | $ 19 | (19) | |||||||
Additional rounding shares issued for reverse stock split, shares | 19,314 | ||||||||
Shares issued to pay for services | $ 15 | 102,485 | 102,500 | ||||||
Shares issued to pay for services, shares | 15,529 | ||||||||
Balance at Mar. 31, 2023 | $ 2,183 | $ 50 | $ 828 | 67,042,743 | (61,801,025) | (148,291) | 2,283,876 | 7,380,364 | 688,844 |
Balance, shares at Mar. 31, 2023 | 2,183,463 | 50,000 | 828,570 | ||||||
Foreign currency translation gain/(loss) | 22,470 | 22,470 | |||||||
Share-based compensation | 26,736 | 26,736 | |||||||
Shares issued to pay notes payable | $ 123 | 1,193,883 | 1,194,006 | ||||||
Shares issued to pay notes payable, shares | 122,702 | ||||||||
Dividends paid in Series 1 preferred shares | $ 110 | (110) | |||||||
Dividends paid in Series 1 preferred shares, shares | 109,553 | ||||||||
Income/(loss) attributable to noncontrolling interest | (25,595) | ||||||||
Net loss | (1,146,524) | (1,146,524) | |||||||
Shares issued to pay for services | $ 7 | 39,365 | 39,372 | ||||||
Shares issued to pay for services, shares | 6,488 | ||||||||
Balance at Jun. 30, 2023 | $ 2,293 | $ 50 | $ 958 | $ 68,302,617 | $ (62,947,549) | $ (148,291) | $ 2,306,346 | $ 7,516,424 | $ 663,249 |
Balance, shares at Jun. 30, 2023 | 2,293,016 | 50,000 | 957,760 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net loss | $ (8,048,022) | $ (10,063,448) |
Adjustments to reconcile net loss to net cash used by operating activities | ||
Depreciation and amortization | 698,269 | 1,038,138 |
Loss on disposal of property and equipment | 69,611 | 161,814 |
Noncash lease expense | 614,254 | 524,500 |
Bad debt expense (recovery) | (155) | (7,584) |
Share-based compensation | 93,313 | 111,402 |
Income tax expense/ (benefit) | (247,941) | |
Interest expense paid in equity shares | 276,151 | 1,627,046 |
Accrued interest on notes payable | 1,858,631 | 635,001 |
Amortization of original issue discounts on notes payable | 1,200,200 | 908,333 |
Gain/(loss) on marketable securities | 58 | (2,234,478) |
Discharge of Paycheck Protection Program Loans | (971,500) | |
Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: | ||
Trade receivables | (2,108,384) | 445,590 |
Trade receivables - related party | (578,388) | 14,641 |
Inventory | (231,923) | (2,565,778) |
Prepaid expenses and other current assets | (667,772) | 125,344 |
Other assets | (246,658) | (159,526) |
Accounts payable | 816,040 | 1,012,206 |
Accounts payable - related party | (15,761) | |
Operating lease liabilities | (550,019) | (456,042) |
Deposits from customers | (38,863) | (374,978) |
Accrued expenses | 1,264,909 | (444,238) |
Deferred revenue | 525,180 | 470,685 |
Income taxes payable | (45,773) | (59,588) |
Other liabilities | (278,946) | (159,526) |
Net cash used by operating activities - continuing operations | (5,394,048) | (10,669,927) |
Net cash provided by operating activities - discontinued operations | 2,474,863 | 41,562 |
Net cash used by operating activities | (2,919,185) | (10,628,365) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (761,470) | (727,955) |
Proceeds from sale of property and equipment | 26,205 | 51,262 |
Investment in MasterpieceVR | (500,000) | |
Proceeds from sale of marketable securities | 12,182,932 | |
Purchase of marketable securities | (10,214,044) | |
Net cash (used in)/provided by investing activities - continuing operations | (735,265) | 792,195 |
Net cash used by investing activities - discontinued operations | (39,388) | |
Net cash (used in)/provided by investing activities | (735,265) | 752,807 |
Cash Flows from Financing Activities | ||
Proceeds from notes payable | 8,000,000 | |
Payments on debt | (844,370) | (1,176,763) |
Payments on Paycheck Protection Program Loans | (20,154) | |
Payments on bank loans | (416,467) | (920,939) |
Net cash provided by financing activities - continuing operations | (1,280,991) | 5,902,298 |
Net cash used by financing activities - discontinued operations | ||
Net cash (used)/provided by financing activities | (1,280,991) | 5,902,298 |
Effect of currency translation | (104,123) | (397,840) |
Net decrease in cash, cash equivalents, and restricted cash | (4,935,441) | (3,973,260) |
Cash, cash equivalents, and restricted cash at beginning of period | 11,473,676 | 17,186,323 |
Cash, cash equivalents, and restricted cash at end of period | 6,434,112 | 12,815,223 |
Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash | ||
Cash and equivalents | 5,628,839 | 11,442,487 |
Less cash attributed to discontinued operations | (145,984) | |
Restricted cash | 805,273 | 1,518,720 |
Total cash, cash equivalents, and restricted cash | 6,434,112 | 12,815,223 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 382,575 | 483,665 |
Cash paid during the period for income taxes, net of refunds | 45,773 | 306,729 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Shares issued to pay for services | 141,872 | |
Shares issued to pay notes payable | 1,426,151 | 3,993,124 |
Purchase of property and equipment through vendor financing | 1,125,000 | |
Shares issued in connection with note payable | 700,400 | |
Investment in right of use asset | $ 186,397 | $ 317,187 |
ORGANIZATION AND PLAN OF OPERAT
ORGANIZATION AND PLAN OF OPERATIONS | 9 Months Ended |
Jun. 30, 2023 | |
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 company. Unless the context requires otherwise, all references to “we”, “our”, “us”, “Company”, “registrant”, “Cemtrex” or “management” refer to Cemtrex, Inc. and its subsidiaries. During the first quarter of fiscal year 2023, The Company reorganized its reporting segments to be in line with its current structure consisting of (i) Security (ii) Industrial Services and (iii) Cemtrex Corporate. Security Cemtrex’s Security segment operates under the brand of its majority owned subsidiary, Vicon Industries, Inc. (“Vicon”), 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 innovative, mission critical security and video surveillance solutions utilizing Artificial Intelligence (AI) based data algorithms. Industrial Services Cemtrex’s Industrial Services segment operates under the brand, Advanced Industrial Services (“AIS”), which offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. AIS installs high precision equipment in a wide variety of industrial markets like automotive, printing & graphics, industrial automation, packaging, and chemicals, among others. AIS is a leading provider of reliability-driven maintenance and contracting solutions for 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. Cemtrex Corporate Cemtrex’s Corporate segment is the holding company of our other two segments. Sale of former Cemtrex Brands On November 22, 2022, the Company entered into two Asset Purchase Agreements and one Simple Agreement for Future Equity (“SAFE”) with the Company’s CEO, Saagar Govil, to secure the sale of the subsidiaries Cemtrex Advanced Technologies, Inc, which include the brand SmartDesk, and Cemtrex XR, Inc., which include the brands Cemtrex XR, Virtual Driver Interactive, Bravo Strong, and good tech (formerly Cemtrex Labs), to Mr. Govil. On November 22, 2022, the Company completed the above disposition for the following consideration. ● Cemtrex XR, Inc. ○ $ 895,000 ■ $ 75,000 ■ 5 the Business to be paid 90 days after the end of each calendar year for the next three years; and should the total sum of royalties due be less than $ 820,000 820,000 ● Cemtrex Advanced Technologies, Inc. ○ $ 10,000 ○ 5 the Business to be paid 90 days after the end of each calendar year for the next 5 years ○ $ 1,600,000 subsequent fundraising or exit above $5M with a $10M cap. The Company’s Board of Directors, excluding Saagar Govil who abstained from all voting on these agreements, approved these actions and agreements. Common Stock Reverse Stock Split On January 25, 2023, the company completed a 35:1 reverse stock split Notice of Delisting, Extension of cure period, and Subsequent Compliance Series 1 Preferred Stock On July 29, 2022, the Company received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that, because the closing bid price for the Company’s Series 1 preferred stock listed on Nasdaq was below $ 1.00 1.00 On January 26, 2023, the Company received a notification letter from the Listing Qualifications Department of Nasdaq notifying the Company that, it had been granted an additional 180 days or until July 24, 2023, to regain compliance with the Minimum Bid Price Requirement based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Capital Market with the exception of the bid price requirement, and the Company’s written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary. On July 25, 2023, the Company received a Notice of Staff Determination from the Listing Qualifications Department of Nasdaq notifying the Company that its Series 1 Preferred Stock had not gained compliance and would be suspended from trading at the opening of business on August 3, 2023. The Company has requested a hearing regarding the delisting that has been scheduled for September 14, 2023, which will stay the suspension and filing of Form 25-NSE with the Securities and Exchange Commission. The Company intends to continue actively monitoring the bid price for its Series 1 preferred stock between now and the hearing date and will consider available options to resolve the deficiency and regain compliance with the Minimum Bid Price Requirement. Common Stock On January 24, 2022, the Company received a notification letter from the Listing Qualifications Department of Nasdaq notifying the Company that, because the closing bid price for the Company’s common stock listed on Nasdaq was below $ 1.00 1.00 On July 26, 2022, the Company received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC Nasdaq notifying the Company that, it had been granted an additional 180 days or until January 23, 2023, to regain compliance with the Minimum Bid Price Requirement based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Capital Market with the exception of the bid price requirement, and the Company’s written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary. On January 26, 2023, the Company received a notification letter from the Listing Qualifications Department of Nasdaq notifying the Company that it has not regained compliance with Listing Rule 5550(a)(2) and accordingly would be delisted from the Capital Market. The Company then requested and had been granted a hearing to occur on March 16, 2023, appealing this determination to a Hearings Panel (the “Panel”), pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series. On February 8, 2023, the Company received a notification letter from the Listing Qualifications Department of Nasdaq notifying the Company that it has regained compliance with Listing Rule 5550(a)(2) and is in compliance with all applicable listing standards. The Company’s common stock will continue to be listed and traded on The Nasdaq Stock Market. Going Concern Considerations The accompanying condensed consolidated financial statements of the Company have been prepared assuming the Company will continue as a going concern and in accordance with generally accepted accounting principles in the United States of America. The going concern basis of presentation assumes that the Company will continue in operation one year after the date these financial statements are issued and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. Pursuant to the requirements of the ASC 205, management must evaluate whether there are conditions or events, considered in the aggregate, which raise substantial doubt about the Company’s ability to continue as a going concern for one year from the date these financial statements are issued. This evaluation does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented or are not within control of the Company as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company has incurred substantial losses of $ 13,020,958 7,807,995 4,835,914 17,185,167 967,489 While our working capital and current debt indicate a substantial doubt regarding the Company’s ability to continue as a going concern, the Company has historically, from time to time, satisfied and may continue to satisfy certain short-term liabilities through the issuance of common stock, thus reducing our cash requirement to meet our operating needs. Additionally, the Company has sold unprofitable brands, reducing the cash required to maintain those brands, reevaluated our pricing model on our Vicon brand to improve margins on those products, and has effected a 35:1 reverse stock split |
INTERIM STATEMENT PRESENTATION
INTERIM STATEMENT PRESENTATION | 9 Months Ended |
Jun. 30, 2023 | |
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, 2022, of Cemtrex, Inc. 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. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, Cemtrex Technologies Pvt. Ltd., Advanced Industrial Services, Inc., Advanced Industrial Leasing, Inc., and the Company’s majority owned subsidiary Vicon Industries, Inc. and its subsidiary, Vicon Industries Ltd. All inter-company balances and transactions have been eliminated in consolidation. 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, 2022, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Issued Accounting Standards In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“Update 2016-13”). Update 2016-13 replaced the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including but not limited to trade receivables. For public business entities, the new standard became effective for annual reporting periods beginning after December 15, 2022, including interim periods within that reporting period. The Company is currently evaluating the impact of this ASU on our financial statements. In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU No. 2021-08”). ASU No. 2021-08 will require companies to apply the definition of a performance obligation under ASC Topic 606 to recognize and measure contract assets and contract liabilities (i.e., deferred revenue) relating to contracts with customers that are acquired in a business combination. Under current U.S. GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. ASU No. 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of this ASU on our financial statements. On June 30, 2022, the FASB issued ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”), which (1) clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and (2) requires specific disclosures related to such an equity security. Under current guidance, stakeholders have observed diversity in practice related to whether contractual sale restrictions should be considered in the measurement of the fair value of equity securities that are subject to such restrictions. On the basis of interpretations of existing guidance and the current illustrative example in ASC 820-10-55-52 of a restriction on the sale of an equity instrument, some entities use a discount for contractual sale restrictions when measuring fair value, while others view the application of such a discount to be inconsistent with the principles of ASC 820. To reduce the diversity in practice and increase the comparability of reported financial information, ASU 2022-03 clarifies this guidance and amends the illustrative example. ASU No. 2022-03 is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of this ASU on our financial statements. The Company does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed consolidated financial statements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 3 – DISCONTINUED OPERATIONS On November 22, 2022, the Company entered into two Asset Purchase Agreements and one Simple Agreement for Future Equity (“SAFE”) with the Company’s CEO, Saagar Govil, to secure the sale of the subsidiaries Cemtrex Advanced Technologies, Inc, which include the brand SmartDesk, and Cemtrex XR, Inc., which include the brands Cemtrex XR, Virtual Driver Interactive, Bravo Strong, and good tech (formerly Cemtrex Labs), to Mr. Govil Due to the on-going losses and risk associated with the SmartDesk business the Company has valued the royalty and SAFE agreement associated with the SmartDesk sale at $ 0 Based on sales projections for Cemtrex XR, Inc., the Company does not believe that it will exceed the sales levels required to exceed the $ 820,000 ASC 310 – Receivables, 691,611 The following table summarizes the loss on the sale recorded during the three months ended December 31, 2022, included in Income/(loss) from discontinued operations, net of tax in the accompanying condensed consolidated statement of Operations: SUMMARY OF LOSS ON SALE Purchase Price $ 745,621 Less cash and cash equivalents transferred (699,423 ) Less liabilities assumed (10,924 ) Net purchase price $ 35,274 Assets Sold Accounts receivable, net $ 625,638 Inventory, net 980,730 Prepaid expenses and other assets 502,577 Property and equipment, net 837,808 Goodwill 598,392 Total Assets Sold 3,545,145 Liabilities Transferred Accounts payable 370,774 Short-term liabilities 364,775 Long-term liabilities 318,981 Total Liabilities Transferred 1,054,530 Net assets sold $ 2,490,615 Pretax loss on sale of Cemtrex Advanced Technologies, Inc, and Cemtrex XR, Inc.Companies $ (2,455,341 ) Assets and liabilities included within discontinued operations on the Company’s Condensed Consolidated Balance Sheets at June 30, 2023, and September 30, 2022, are as follows; SCHEDULE OF ASSETS AND LIABILITIES INCLUDED WITHIN DISCONTINUED OPERATIONS June 30, September 30, 2023 2022 Assets Current assets Cash and equivalents $ - $ 714,420 Trade receivables, net - 561,470 Inventory –net of allowance for inventory obsolescence - 1,043,865 Prepaid expenses and other assets - 153,461 Total current assets - 2,473,216 Property and equipment, net - 825,850 Other - 672,627 Total Assets $ - $ 3,971,693 Liabilities Current liabilities Accounts payable $ - $ 205,622 Short-term liabilities - 464,429 Deposits from customers - 125,032 Accrued expenses - 10,136 Total current liabilities - 805,219 Long-term liabilities Deferred revenue 6,273 Total long-term liabilities - 6,273 Total liabilities $ - $ 811,492 During the first quarter of fiscal 2023, Vicon completed the closure of its discontinued operating entity Vicon Systems, Ltd. located in Israel. The Company received funds related to benefit obligations of $ 96,095 7,010 89,085 Gain/(loss) from discontinued operations, net of tax and the loss on sale of discontinued operations, net of tax, of Cemtrex Advanced Technologies, Inc. and Cemtrex XR, Inc., sold during the first quarter of fiscal year 2023, which are presented in total as discontinued operations, net of tax in the Company’s Condensed Consolidated Statements of Operations for the three and nine month periods ended June 30, 2023 and 2022, are as follows: 2023 2022 2023 2022 Three months ended June 30, Nine months ended June 30, 2023 2022 2023 2022 Total net sales $ - $ 1,521,942 $ 649,061 $ 3,763,234 Cost of sales - 685,693 228,086 1,997,211 Operating, selling, general and administrative expenses 1,443 1,425,801 1,297,507 4,036,614 Other (income)/expenses - 248,749 3,195 11,808 Income (loss) from discontinued operations (1,443 ) (838,301 ) (879,727 ) (2,282,399 ) Amortization of discounted royalties 14,724 - 33,875 - Loss on sale of discontinued operations - - (2,455,341 ) - Adjustment of benefit obligation - - 89,085 - Income tax provision - - - - Discontinued operations, net of tax $ 13,281 $ (838,301 ) $ (3,212,108 ) $ (2,282,399 ) |
LOSS PER COMMON SHARE
LOSS PER COMMON SHARE | 9 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER COMMON SHARE | NOTE 4 – 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, 2023, and 2022, the following items were excluded from the computation of diluted net loss per common share as their effect is anti-dilutive: SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE EFFECT 2023 2022 2023 2022 For the three months ended For the nine months ended June 30, June 30, 2023 2022 2023 2022 Options 28,796 34,579 28,796 34,579 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 5 – SEGMENT INFORMATION During the first quarter of fiscal year 2023, the Company reorganized its reporting segments to be in line with its current structure. The Company reports and evaluates financial information for three current segments: the Security segment, Industrial Services segment and the Corporate segment. The following tables summarize the Company’s segment information: SCHEDULE OF SEGMENT INFORMATION Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Three months ended June 30, 2023 Nine months ended June 30, 2023 Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Revenues $ 9,015,279 $ 5,714,861 $ - $ 14,730,140 $ 25,933,921 $ 16,839,858 $ - $ 42,773,779 Cost of revenues 4,610,443 3,639,054 - 8,249,497 13,005,314 10,908,935 - 23,914,249 Gross profit $ 4,404,836 $ 2,075,807 $ - $ 6,480,643 $ 12,928,607 $ 5,930,923 $ - $ 18,859,530 Operating expenses Sales, general, and administrative 3,182,509 912,387 1,032,183 5,127,079 9,494,634 3,437,565 2,826,134 15,758,333 Depreciation and amortization 90,630 159,251 - 249,881 161,833 484,157 52,279 698,269 Research and development 1,049,909 - - 1,049,909 3,895,717 - - 3,895,717 Operating income/(loss) $ 81,788 $ 1,004,169 $ (1,032,183 ) $ 53,774 $ (623,577 ) $ 2,009,201 $ (2,878,413 ) $ (1,492,789 ) Other income/(expense) $ (282,857 ) $ (7,281 ) $ (929,395 ) $ (1,219,533 ) $ (58,065 ) $ (68,707 ) $ (3,196,712 ) $ (3,323,484 ) Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Three months ended June 30, 2022 Nine months ended June 30, 2022 Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Revenues $ 6,640,913 $ 5,467,991 $ - $ 12,108,904 $ 17,740,445 15,527,871 $ - $ 33,268,316 Cost of revenues 3,257,672 3,811,125 - 7,068,797 10,261,376 10,974,802 - 21,236,178 Gross profit $ 3,383,241 $ 1,656,866 $ - $ 5,040,107 $ 7,479,069 $ 4,553,069 $ - $ 12,032,138 Operating expenses Sales, general, and administrative 3,057,839 1,081,392 814,487 4,953,718 8,483,955 3,706,041 2,867,239 15,057,235 Depreciation and amortization 217,497 174,066 36,248 427,811 398,707 529,779 109,652 1,038,138 Research and development 1,189,875 - - 1,189,875 3,660,883 - - 3,660,883 Operating (loss)/income $ (1,081,970 ) $ 401,408 $ (850,735 ) $ (1,531,297 ) $ (5,064,476 ) $ 317,249 $ (2,976,891 ) $ (7,724,118 ) Other income/(expense) $ (83,355 ) $ (104,797 ) $ 1,578,107 $ 1,389,955 $ 741,330 $ (181,586 ) $ (864,616 ) $ (304,872 ) 2023 2022 June 30, September 30, 2023 2022 Identifiable Assets Security $ 20,631,185 $ 15,257,235 Industrial Services 17,302,398 16,658,984 Corporate 3,810,093 9,869,716 Discontinued operations - 3,971,693 Total Assets $ 41,743,676 $ 45,757,628 |
RESTRICTED CASH
RESTRICTED CASH | 9 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 6 – RESTRICTED CASH A subsidiary of the Company participates in a consortium in order to self-insure group care coverage for its employees. The plan is administrated by Benecon Group and the Company makes monthly deposits in a trust account to cover medical claims and any administrative costs associated with the plan. These funds, as required by the plan are restricted in nature and amounted to $ 805,237 1,577,915 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 7 – 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. The Company measures 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, 2023, and September 30, 2022, are as follows. SCHEDULE OF FAIR VALUE OF ASSETS (Level 1) (Level 2) (Level 3) 2023 Quoted Prices Significant in Active Other Significant Balance Markets for Observable Unobservable as of Identical Assets Inputs Inputs June 30, (Level 1) (Level 2) (Level 3) 2023 Assets Investment in marketable securities (included in short-term investments) $ 13,663 $ - $ - $ 13,663 Fair value assets $ 13,663 $ - $ - $ 13,663 (Level 1) (Level 2) (Level 3) 2022 Quoted Prices Significant in Active Other Significant Balance Markets for Observable Unobservable as of Identical Assets Inputs Inputs September 30, (Level 1) (Level 2) (Level 3) 2022 Assets Investment in marketable securities (included in short-term investments) $ 13,721 $ - $ - $ 13,721 Fair value assets $ 13,721 $ - $ - $ 13,721 |
TRADE RECEIVABLES, NET
TRADE RECEIVABLES, NET | 9 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
TRADE RECEIVABLES, NET | NOTE 8 – TRADE RECEIVABLES, NET Trade receivables, net consist of the following: SCHEDULE OF TRADE RECEIVABLES, NET June 30, September 30, 2023 2022 Trade receivables $ 7,757,039 $ 5,648,655 Allowance for doubtful accounts (249,284 ) (249,439 ) Accounts receivables, net, total $ 7,507,755 $ 5,399,216 Trade receivables include amounts due for shipped products and services rendered. Allowance for doubtful accounts includes estimated losses resulting from the inability of our customers to make the required payments. |
INVENTORY, NET
INVENTORY, NET | 9 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY, NET | NOTE 9 – INVENTORY, NET Inventory, net, consist of the following: SCHEDULE OF INVENTORY, NET June 30, September 30, 2023 2022 Raw materials $ 1,130,327 $ 1,375,933 Work in progress 95,773 120,026 Finished goods 8,099,426 8,080,235 Inventory, gross 9,325,526 9,576,194 Less: Allowance for inventory obsolescence (605,786 ) (1,088,377 ) Inventory –net of allowance for inventory obsolescence $ 8,719,740 $ 8,487,817 |
PREPAID AND OTHER CURRENT ASSET
PREPAID AND OTHER CURRENT ASSETS | 9 Months Ended |
Jun. 30, 2023 | |
Prepaid And Other Current Assets | |
PREPAID AND OTHER CURRENT ASSETS | NOTE 10 – PREPAID AND OTHER CURRENT ASSETS Prepaid and other current assets consisting of the following: SUMMARY OF PREPAID AND OTHER CURRENT ASSETS June 30, 2023 September 30, 2022 Prepaid expenses $ 344,300 $ 536,820 Prepaid inventory 1,427,013 220,553 Deferred costs 60,169 40,626 Prepaid income taxes 402,048 604,840 VAT & GST tax receivable 289,371 236,986 Contract assets 566,515 781,819 Prepaid expenses and other assets total $ 3,089,416 $ 2,421,644 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 11 – PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: SUMMARY OF PROPERTY AND EQUIPMENT June 30, September 30, 2023 2022 Land $ 790,373 $ 790,373 Building and leasehold improvements 2,915,918 2,906,953 Furniture and office equipment 574,645 546,548 Computers and software 1,333,135 365,892 Machinery and equipment 10,725,259 11,242,709 Property and equipment, gross 16,339,330 15,852,475 Less: Accumulated depreciation (10,158,559 ) (10,572,033 ) Property and equipment, net $ 6,180,771 $ 5,280,442 Depreciation expense for the three months ended June 30, 2023, and 2022, were $ 249,881 427,811 698,269 1,038,138 |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | NOTE 12 – OTHER ASSETS On November 13, 2020, Cemtrex made a $ 500,000 500,000 No Other assets consist of the following: SCHEDULE OF OTHER ASSETS June 30, 2023 September 30, 2022 Rental deposits $ 251,739 $ 204,388 Investment in Masterpiece VR 1,000,000 1,000,000 Other deposits 64,626 24,467 Demonstration equipment supplied to resellers 330,038 170,890 Other assets total $ 1,646,403 $ 1,399,745 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2023 | |
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, for total consideration of $ 550,000 Company negotiated a payment agreement surrounding the sale of Griffin Filters, LLC and other liabilities due to Cemtrex, Inc 761,585 5 July 31, 2024 As of June 30, 2023, and September 30, 2022, there was $ 3,372 19,133 Receivables of $ 708,512 On February 26, 2021, the Company entered into a Settlement Agreement and Release with Aron Govil regarding transactions Cemtrex’s Board of Directors determined were incorrectly handled and accounted for. Mr. Govil executed a secured promissory note (the “Note”) in the amount of $ 1,533,280 February 26, 2023 9 February 28, 2024 On November 22, 2022, the Company entered into two Asset Purchase Agreements and one Simple Agreement for Future Equity (“SAFE”) with the Company’s CEO, Saagar Govil, to secure the sale of the subsidiaries Cemtrex Advanced Technologies, Inc, and Cemtrex XR, Inc., which include the brands SmartDesk, Cemtrex XR, Virtual Driver Interactive, Bravo Strong, and good tech (formerly Cemtrex Labs), to Mr. Govil (see NOTE 1). As of June 30, 2023, there was $ 578,388 131,922 446,466 As of June 30, 2023, there were royalties receivable from the sale of Cemtrex, XR, Inc. of $ 691,611 |
LEASES
LEASES | 9 Months Ended |
Jun. 30, 2023 | |
Leases | |
LEASES | NOTE 14 – LEASES The Company is party to contracts where we lease property from others under contracts classified as operating leases. The Company primarily leases office and operating facilities, vehicles, and office equipment. The weighted average remaining term of our operating leases was approximately 3 3 2,213,341 716,896 2,576,963 754,495 5.64 5.66 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’s corporate segment leases approximately 100 600 A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the condensed consolidated balance sheet at June 30, 2023, is set forth below: SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO OPERATING LEASE LIABILITIES Years ending September 30, Operating Leases 2023 211,721 2024 786,889 2025 764,530 2026 684,449 2027 & Thereafter 289,528 Undiscounted lease payments 2,737,117 Amount representing interest (523,776 ) Discounted lease payments $ 2,213,341 Lease costs for the three and nine months ended June 30, 2023, and 2022 are set forth below.: SCHEDULE OF LEASE COSTS 2023 2022 2023 2022 For the three months ended For the nine months ended June 30, June 30, 2023 2022 2023 2022 Operating lease costs 193,843 223,595 678,489 592,958 Total lease cost $ 193,843 $ 223,595 $ 678,489 $ 592,958 |
LINES OF CREDIT AND LONG-TERM L
LINES OF CREDIT AND LONG-TERM LIABILITIES | 9 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
LINES OF CREDIT AND LONG-TERM LIABILITIES | NOTE 15 – LINES OF CREDIT AND LONG-TERM LIABILITIES On January 12, 2023, the Company entered into a standstill agreement with Streeterville Capital, LLC. The lender has agreed to refrain and forbear temporarily from making redemptions under the notes for a period ending on April 12, 2023. In addition, the company has agreed to an increase of the outstanding balance of the note issued on September 30, 2021, for the original amount of $ 5,755,000 148,000 9,205,000 303,422 451,422 On February 15, 2023, the Company and Fulton Bank agreed to an amendment to the Master Agreement Regarding Financial Covenants and Financial Deliverables dated September 22, 2020. On March 3, 2023, the Company and NIL Funding agreed at an amendment to the term loan agreement dated September 18, 2018. This agreement amends the maturity date to December 31, 2024 11.5 10,000 100,000 100,000 On May 3, 2023, the Company and Streeterville Capital, LLC. agreed to an amendment to the note issued on September 30, 2021, for the original amount of $ 5,755,000 5 252,912 On April 3, 2023, The Company and SeKureID Solutions Corp., entered into a software license agreement, where the company obtained the right to use source code for its security products in exchange for $ 1,125,000 75,000 900,000 The following table outlines the Company’s lines of credit and secured liabilities. SCHEDULE OF LINES OF CREDIT AND LIABILITIES June 30, September 30, Interest Rate Maturity 2023 2022 Fulton Bank line of credit $ 3,500,000 Secured Overnight Financing Rate (“SOFR”) plus 2.37 7.46 5.35 N/A $ - $ - Fulton Bank loan $ 5,250,000 5,000,000 SOFR plus 2.37 7.46 5.35 12-15-2022 - 247,284 Fulton Bank loan $ 400,000 SOFR plus 2.37 7.46 5.35 05-01-2023 - 63,280 Fulton Bank - $ 360,000 SOFR plus 2.37 7.46 5.35 01-31-2025 128,086 183,839 Fulton Bank mortgage $ 2,476,000 SOFR plus 2.62 7.71 5.6 01-28-2040 2,195,515 2,245,664 Note payable - $ 439,774 5 % 10-26-2022 - 219,370 Note payable - $ 5,755,000 750,000 5,000 5,000,000 0 250,000 8 % 06-30-2024 4,899,908 4,943,929 Note payable - $ 9,205,000 1,200,000 5,000 8,000,000 28,572 700,400 105,578 1,064,778 8 % 08-23-2023 10,491,283 9,738,632 Term Loan Agreement with NIL Funding Corporation (“NIL”) - $ 5,600,000 11.50 % 12-31-2024 2,179,743 2,804,743 Paycheck Protection Program loan - $ 121,400 1 % 05-05-2025 101,246 121,400 Software License Agreement - $ 1,125,000 N/A 06-03-2024 900,000 - Total lines of credit and secured liabilities $ 20,895,781 $ 20,568,141 Less: Current maturities (17,185,167 ) (16,894,743 ) Less: Unamortized original issue discount (105,578 ) (1,305,778 ) Lines of credit and secured liabilities, Long Term $ 3,605,036 $ 2,367,620 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 16 – STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 10,000,000 0.001 2,343,016 2,129,122 2,278,916 2,065,022 Series 1 Preferred Stock During the nine months ended June 30, 2023, 213,894 As of June 30, 2023, and September 30, 2022, there were 2,293,016 2,079,122 2,228,916 2,015,022 Series C Preferred Stock As of June 30, 2023, and September 30, 2022, there were 50,000 Common Stock The Company is authorized to issue 50,000,000 0.001 957,760 754,711 On January 25, 2023, the Company completed a 35:1 reverse stock split 19,314 During the nine months ended June 30, 2023, 161,718 487,716 662,284 276,151 During the nine months ended June 30, 2023, 22,017 141,872 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 17 – SHARE-BASED COMPENSATION For the nine months ended June 30, 2023, and 2022, the Company recognized $ 93,313 111,402 76,831 During the nine months ended June 30, 2023, options to purchase 2,931 13.65 2,858 40.95 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18 – COMMITMENTS AND CONTINGENCIES The Company’s Industrial Services segment owns approximately 25,000 43,000 15,500 4,555 August 31, 2025 The Company’s Security segment leases (i) approximately 6,700 6,453 456,972 February 28, 2024 30,000 28,719 March 31, 2027 9,400 7,329 5,771 March 24, 2031 terminate in 2026 280 1,504 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 19 – SUBSEQUENT EVENTS Heisey Mechanical Acquisition On July 1, 2023, the Company completed the acquisition of a service contractor and steel fabricator that specializes in industrial and water treatment markets, Heisey Mechanical, Ltd. (“Heisey”) based in Columbia, Pennsylvania to expand the Company’s Industrial Services segment. The total consideration given by Cemtrex to the shareholder of Heisey for full control, was approximately $ 2,400,000 2,160,000 240,000 2,160,000 25,000 1,500,000 Notice of Delisting On July 25, 2023, the Company received a Notice of Staff Determination from the Listing Qualifications Department of Nasdaq notifying the Company that its Series 1 Preferred Stock had not gained compliance and would be suspended from trading at the opening of business on August 3, 2023. The Company has requested a hearing regarding the delisting that has been scheduled for September 15, 2023, which will stay the suspension and filing of Form 25-NSE with the Securities and Exchange Commission. Equity shares issued On July 31, 2023, the Company issued an aggregate of 32,488 200,000 25,792 On July 6, 2023, the Company issued an aggregate of 1,686 7,500 On August 4, 2023, the Company issued an aggregate of 6,400 45,625 |
INTERIM STATEMENT PRESENTATION
INTERIM STATEMENT PRESENTATION (Policies) | 9 Months Ended |
Jun. 30, 2023 | |
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, 2022, of Cemtrex, Inc. 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. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, Cemtrex Technologies Pvt. Ltd., Advanced Industrial Services, Inc., Advanced Industrial Leasing, Inc., and the Company’s majority owned subsidiary Vicon Industries, Inc. and its subsidiary, Vicon Industries Ltd. All inter-company balances and transactions have been eliminated in consolidation. |
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, 2022, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Issued Accounting Standards In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“Update 2016-13”). Update 2016-13 replaced the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including but not limited to trade receivables. For public business entities, the new standard became effective for annual reporting periods beginning after December 15, 2022, including interim periods within that reporting period. The Company is currently evaluating the impact of this ASU on our financial statements. In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU No. 2021-08”). ASU No. 2021-08 will require companies to apply the definition of a performance obligation under ASC Topic 606 to recognize and measure contract assets and contract liabilities (i.e., deferred revenue) relating to contracts with customers that are acquired in a business combination. Under current U.S. GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. ASU No. 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of this ASU on our financial statements. On June 30, 2022, the FASB issued ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”), which (1) clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and (2) requires specific disclosures related to such an equity security. Under current guidance, stakeholders have observed diversity in practice related to whether contractual sale restrictions should be considered in the measurement of the fair value of equity securities that are subject to such restrictions. On the basis of interpretations of existing guidance and the current illustrative example in ASC 820-10-55-52 of a restriction on the sale of an equity instrument, some entities use a discount for contractual sale restrictions when measuring fair value, while others view the application of such a discount to be inconsistent with the principles of ASC 820. To reduce the diversity in practice and increase the comparability of reported financial information, ASU 2022-03 clarifies this guidance and amends the illustrative example. ASU No. 2022-03 is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of this ASU on our financial statements. The Company does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed consolidated financial statements. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SUMMARY OF LOSS ON SALE | The following table summarizes the loss on the sale recorded during the three months ended December 31, 2022, included in Income/(loss) from discontinued operations, net of tax in the accompanying condensed consolidated statement of Operations: SUMMARY OF LOSS ON SALE Purchase Price $ 745,621 Less cash and cash equivalents transferred (699,423 ) Less liabilities assumed (10,924 ) Net purchase price $ 35,274 Assets Sold Accounts receivable, net $ 625,638 Inventory, net 980,730 Prepaid expenses and other assets 502,577 Property and equipment, net 837,808 Goodwill 598,392 Total Assets Sold 3,545,145 Liabilities Transferred Accounts payable 370,774 Short-term liabilities 364,775 Long-term liabilities 318,981 Total Liabilities Transferred 1,054,530 Net assets sold $ 2,490,615 Pretax loss on sale of Cemtrex Advanced Technologies, Inc, and Cemtrex XR, Inc.Companies $ (2,455,341 ) |
SCHEDULE OF ASSETS AND LIABILITIES INCLUDED WITHIN DISCONTINUED OPERATIONS | Assets and liabilities included within discontinued operations on the Company’s Condensed Consolidated Balance Sheets at June 30, 2023, and September 30, 2022, are as follows; SCHEDULE OF ASSETS AND LIABILITIES INCLUDED WITHIN DISCONTINUED OPERATIONS June 30, September 30, 2023 2022 Assets Current assets Cash and equivalents $ - $ 714,420 Trade receivables, net - 561,470 Inventory –net of allowance for inventory obsolescence - 1,043,865 Prepaid expenses and other assets - 153,461 Total current assets - 2,473,216 Property and equipment, net - 825,850 Other - 672,627 Total Assets $ - $ 3,971,693 Liabilities Current liabilities Accounts payable $ - $ 205,622 Short-term liabilities - 464,429 Deposits from customers - 125,032 Accrued expenses - 10,136 Total current liabilities - 805,219 Long-term liabilities Deferred revenue 6,273 Total long-term liabilities - 6,273 Total liabilities $ - $ 811,492 During the first quarter of fiscal 2023, Vicon completed the closure of its discontinued operating entity Vicon Systems, Ltd. located in Israel. The Company received funds related to benefit obligations of $ 96,095 7,010 89,085 Gain/(loss) from discontinued operations, net of tax and the loss on sale of discontinued operations, net of tax, of Cemtrex Advanced Technologies, Inc. and Cemtrex XR, Inc., sold during the first quarter of fiscal year 2023, which are presented in total as discontinued operations, net of tax in the Company’s Condensed Consolidated Statements of Operations for the three and nine month periods ended June 30, 2023 and 2022, are as follows: 2023 2022 2023 2022 Three months ended June 30, Nine months ended June 30, 2023 2022 2023 2022 Total net sales $ - $ 1,521,942 $ 649,061 $ 3,763,234 Cost of sales - 685,693 228,086 1,997,211 Operating, selling, general and administrative expenses 1,443 1,425,801 1,297,507 4,036,614 Other (income)/expenses - 248,749 3,195 11,808 Income (loss) from discontinued operations (1,443 ) (838,301 ) (879,727 ) (2,282,399 ) Amortization of discounted royalties 14,724 - 33,875 - Loss on sale of discontinued operations - - (2,455,341 ) - Adjustment of benefit obligation - - 89,085 - Income tax provision - - - - Discontinued operations, net of tax $ 13,281 $ (838,301 ) $ (3,212,108 ) $ (2,282,399 ) |
LOSS PER COMMON SHARE (Tables)
LOSS PER COMMON SHARE (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE EFFECT | SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE EFFECT 2023 2022 2023 2022 For the three months ended For the nine months ended June 30, June 30, 2023 2022 2023 2022 Options 28,796 34,579 28,796 34,579 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT INFORMATION | The following tables summarize the Company’s segment information: SCHEDULE OF SEGMENT INFORMATION Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Three months ended June 30, 2023 Nine months ended June 30, 2023 Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Revenues $ 9,015,279 $ 5,714,861 $ - $ 14,730,140 $ 25,933,921 $ 16,839,858 $ - $ 42,773,779 Cost of revenues 4,610,443 3,639,054 - 8,249,497 13,005,314 10,908,935 - 23,914,249 Gross profit $ 4,404,836 $ 2,075,807 $ - $ 6,480,643 $ 12,928,607 $ 5,930,923 $ - $ 18,859,530 Operating expenses Sales, general, and administrative 3,182,509 912,387 1,032,183 5,127,079 9,494,634 3,437,565 2,826,134 15,758,333 Depreciation and amortization 90,630 159,251 - 249,881 161,833 484,157 52,279 698,269 Research and development 1,049,909 - - 1,049,909 3,895,717 - - 3,895,717 Operating income/(loss) $ 81,788 $ 1,004,169 $ (1,032,183 ) $ 53,774 $ (623,577 ) $ 2,009,201 $ (2,878,413 ) $ (1,492,789 ) Other income/(expense) $ (282,857 ) $ (7,281 ) $ (929,395 ) $ (1,219,533 ) $ (58,065 ) $ (68,707 ) $ (3,196,712 ) $ (3,323,484 ) Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Three months ended June 30, 2022 Nine months ended June 30, 2022 Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Revenues $ 6,640,913 $ 5,467,991 $ - $ 12,108,904 $ 17,740,445 15,527,871 $ - $ 33,268,316 Cost of revenues 3,257,672 3,811,125 - 7,068,797 10,261,376 10,974,802 - 21,236,178 Gross profit $ 3,383,241 $ 1,656,866 $ - $ 5,040,107 $ 7,479,069 $ 4,553,069 $ - $ 12,032,138 Operating expenses Sales, general, and administrative 3,057,839 1,081,392 814,487 4,953,718 8,483,955 3,706,041 2,867,239 15,057,235 Depreciation and amortization 217,497 174,066 36,248 427,811 398,707 529,779 109,652 1,038,138 Research and development 1,189,875 - - 1,189,875 3,660,883 - - 3,660,883 Operating (loss)/income $ (1,081,970 ) $ 401,408 $ (850,735 ) $ (1,531,297 ) $ (5,064,476 ) $ 317,249 $ (2,976,891 ) $ (7,724,118 ) Other income/(expense) $ (83,355 ) $ (104,797 ) $ 1,578,107 $ 1,389,955 $ 741,330 $ (181,586 ) $ (864,616 ) $ (304,872 ) 2023 2022 June 30, September 30, 2023 2022 Identifiable Assets Security $ 20,631,185 $ 15,257,235 Industrial Services 17,302,398 16,658,984 Corporate 3,810,093 9,869,716 Discontinued operations - 3,971,693 Total Assets $ 41,743,676 $ 45,757,628 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUE OF ASSETS | The Company’s fair value assets at June 30, 2023, and September 30, 2022, are as follows. SCHEDULE OF FAIR VALUE OF ASSETS (Level 1) (Level 2) (Level 3) 2023 Quoted Prices Significant in Active Other Significant Balance Markets for Observable Unobservable as of Identical Assets Inputs Inputs June 30, (Level 1) (Level 2) (Level 3) 2023 Assets Investment in marketable securities (included in short-term investments) $ 13,663 $ - $ - $ 13,663 Fair value assets $ 13,663 $ - $ - $ 13,663 (Level 1) (Level 2) (Level 3) 2022 Quoted Prices Significant in Active Other Significant Balance Markets for Observable Unobservable as of Identical Assets Inputs Inputs September 30, (Level 1) (Level 2) (Level 3) 2022 Assets Investment in marketable securities (included in short-term investments) $ 13,721 $ - $ - $ 13,721 Fair value assets $ 13,721 $ - $ - $ 13,721 |
TRADE RECEIVABLES, NET (Tables)
TRADE RECEIVABLES, NET (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
SCHEDULE OF TRADE RECEIVABLES, NET | Trade receivables, net consist of the following: SCHEDULE OF TRADE RECEIVABLES, NET June 30, September 30, 2023 2022 Trade receivables $ 7,757,039 $ 5,648,655 Allowance for doubtful accounts (249,284 ) (249,439 ) Accounts receivables, net, total $ 7,507,755 $ 5,399,216 |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY, NET | Inventory, net, consist of the following: SCHEDULE OF INVENTORY, NET June 30, September 30, 2023 2022 Raw materials $ 1,130,327 $ 1,375,933 Work in progress 95,773 120,026 Finished goods 8,099,426 8,080,235 Inventory, gross 9,325,526 9,576,194 Less: Allowance for inventory obsolescence (605,786 ) (1,088,377 ) Inventory –net of allowance for inventory obsolescence $ 8,719,740 $ 8,487,817 |
PREPAID AND OTHER CURRENT ASS_2
PREPAID AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Prepaid And Other Current Assets | |
SUMMARY OF PREPAID AND OTHER CURRENT ASSETS | Prepaid and other current assets consisting of the following: SUMMARY OF PREPAID AND OTHER CURRENT ASSETS June 30, 2023 September 30, 2022 Prepaid expenses $ 344,300 $ 536,820 Prepaid inventory 1,427,013 220,553 Deferred costs 60,169 40,626 Prepaid income taxes 402,048 604,840 VAT & GST tax receivable 289,371 236,986 Contract assets 566,515 781,819 Prepaid expenses and other assets total $ 3,089,416 $ 2,421,644 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 Land $ 790,373 $ 790,373 Building and leasehold improvements 2,915,918 2,906,953 Furniture and office equipment 574,645 546,548 Computers and software 1,333,135 365,892 Machinery and equipment 10,725,259 11,242,709 Property and equipment, gross 16,339,330 15,852,475 Less: Accumulated depreciation (10,158,559 ) (10,572,033 ) Property and equipment, net $ 6,180,771 $ 5,280,442 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF OTHER ASSETS | Other assets consist of the following: SCHEDULE OF OTHER ASSETS June 30, 2023 September 30, 2022 Rental deposits $ 251,739 $ 204,388 Investment in Masterpiece VR 1,000,000 1,000,000 Other deposits 64,626 24,467 Demonstration equipment supplied to resellers 330,038 170,890 Other assets total $ 1,646,403 $ 1,399,745 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Leases | |
SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO OPERATING LEASE LIABILITIES | A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the condensed consolidated balance sheet at June 30, 2023, is set forth below: SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO OPERATING LEASE LIABILITIES Years ending September 30, Operating Leases 2023 211,721 2024 786,889 2025 764,530 2026 684,449 2027 & Thereafter 289,528 Undiscounted lease payments 2,737,117 Amount representing interest (523,776 ) Discounted lease payments $ 2,213,341 |
SCHEDULE OF LEASE COSTS | Lease costs for the three and nine months ended June 30, 2023, and 2022 are set forth below.: SCHEDULE OF LEASE COSTS 2023 2022 2023 2022 For the three months ended For the nine months ended June 30, June 30, 2023 2022 2023 2022 Operating lease costs 193,843 223,595 678,489 592,958 Total lease cost $ 193,843 $ 223,595 $ 678,489 $ 592,958 |
LINES OF CREDIT AND LONG-TERM_2
LINES OF CREDIT AND LONG-TERM LIABILITIES (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LINES OF CREDIT AND LIABILITIES | The following table outlines the Company’s lines of credit and secured liabilities. SCHEDULE OF LINES OF CREDIT AND LIABILITIES June 30, September 30, Interest Rate Maturity 2023 2022 Fulton Bank line of credit $ 3,500,000 Secured Overnight Financing Rate (“SOFR”) plus 2.37 7.46 5.35 N/A $ - $ - Fulton Bank loan $ 5,250,000 5,000,000 SOFR plus 2.37 7.46 5.35 12-15-2022 - 247,284 Fulton Bank loan $ 400,000 SOFR plus 2.37 7.46 5.35 05-01-2023 - 63,280 Fulton Bank - $ 360,000 SOFR plus 2.37 7.46 5.35 01-31-2025 128,086 183,839 Fulton Bank mortgage $ 2,476,000 SOFR plus 2.62 7.71 5.6 01-28-2040 2,195,515 2,245,664 Note payable - $ 439,774 5 % 10-26-2022 - 219,370 Note payable - $ 5,755,000 750,000 5,000 5,000,000 0 250,000 8 % 06-30-2024 4,899,908 4,943,929 Note payable - $ 9,205,000 1,200,000 5,000 8,000,000 28,572 700,400 105,578 1,064,778 8 % 08-23-2023 10,491,283 9,738,632 Term Loan Agreement with NIL Funding Corporation (“NIL”) - $ 5,600,000 11.50 % 12-31-2024 2,179,743 2,804,743 Paycheck Protection Program loan - $ 121,400 1 % 05-05-2025 101,246 121,400 Software License Agreement - $ 1,125,000 N/A 06-03-2024 900,000 - Total lines of credit and secured liabilities $ 20,895,781 $ 20,568,141 Less: Current maturities (17,185,167 ) (16,894,743 ) Less: Unamortized original issue discount (105,578 ) (1,305,778 ) Lines of credit and secured liabilities, Long Term $ 3,605,036 $ 2,367,620 |
ORGANIZATION AND PLAN OF OPER_2
ORGANIZATION AND PLAN OF OPERATIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Jan. 25, 2023 | Nov. 22, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 29, 2022 | Jan. 24, 2022 | |
Reverse stock split | 35:1 reverse stock split | 35:1 reverse stock split | ||||||||||||
Net loss | $ (1,146,524) | $ (594,794) | $ (6,277,211) | $ (680,793) | $ (4,721,247) | $ (4,477,951) | $ (8,018,529) | $ (9,879,991) | $ 13,020,958 | $ 7,807,995 | ||||
Loss from continuing operations | 4,835,914 | |||||||||||||
Debt obligations | 17,185,167 | 17,185,167 | ||||||||||||
Working capital | $ 967,489 | $ 967,489 | ||||||||||||
Common Stock [Member] | ||||||||||||||
Reverse stock split | 35:1 reverse stock split | |||||||||||||
Minimum share bid price | $ 1 | |||||||||||||
Common Stock [Member] | Minimum [Member] | ||||||||||||||
Minimum share bid price | $ 1 | |||||||||||||
Preferred Stock [Member] | ||||||||||||||
Minimum share bid price | $ 1 | |||||||||||||
Preferred Stock [Member] | Minimum [Member] | ||||||||||||||
Minimum share bid price | $ 1 | |||||||||||||
Cemtrex XR Inc [Member] | ||||||||||||||
Consideration transferred | $ 895,000 | |||||||||||||
Cash payable | $ 75,000 | |||||||||||||
Royalty percentage | 5% | |||||||||||||
Royalty description | the Business to be paid 90 days after the end of each calendar year for the next three years; and should the total sum of royalties due be less than $820,000 at the end of the three-year period, Purchaser shall be obligated to pay the difference between $820,000 and the royalties paid. | |||||||||||||
Royalties paid | $ 820,000 | |||||||||||||
Cemtrex Advanced Technologies Inc [Member] | ||||||||||||||
Cash payable | $ 10,000 | |||||||||||||
Royalty percentage | 5% | |||||||||||||
Royalty description | the Business to be paid 90 days after the end of each calendar year for the next 5 years | |||||||||||||
Common equity | $ 1,600,000 | |||||||||||||
Common equity, description | subsequent fundraising or exit above $5M with a $10M cap. |
SUMMARY OF LOSS ON SALE (Detail
SUMMARY OF LOSS ON SALE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Purchase Price | $ 96,095 | $ 96,095 | ||||
Assets Sold | ||||||
Accounts receivable, net | $ 561,470 | |||||
Total Assets Sold | 3,971,693 | |||||
Liabilities Transferred | ||||||
Short-term liabilities | 805,219 | |||||
Long-term liabilities | 6,273 | |||||
Total Liabilities Transferred | $ 811,492 | |||||
Pretax loss on sale of Cemtrex Advanced Technologies, Inc, and Cemtrex XR, Inc.Companies | $ (2,455,341) | |||||
Discontinued Operations, Disposed of by Sale [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Purchase Price | $ 745,621 | |||||
Less cash and cash equivalents transferred | (699,423) | |||||
Less liabilities assumed | (10,924) | |||||
Net purchase price | 35,274 | |||||
Assets Sold | ||||||
Accounts receivable, net | 625,638 | |||||
Inventory, net | 980,730 | |||||
Prepaid expenses and other assets | 502,577 | |||||
Property and equipment, net | 837,808 | |||||
Goodwill | 598,392 | |||||
Total Assets Sold | 3,545,145 | |||||
Liabilities Transferred | ||||||
Accounts payable | 370,774 | |||||
Short-term liabilities | 364,775 | |||||
Long-term liabilities | 318,981 | |||||
Total Liabilities Transferred | 1,054,530 | |||||
Net assets sold | 2,490,615 | |||||
Pretax loss on sale of Cemtrex Advanced Technologies, Inc, and Cemtrex XR, Inc.Companies | $ (2,455,341) |
SCHEDULE OF ASSETS AND LIABILIT
SCHEDULE OF ASSETS AND LIABILITIES INCLUDED WITHIN DISCONTINUED OPERATIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Current assets | |||||
Cash and equivalents | $ 714,420 | ||||
Trade receivables, net | 561,470 | ||||
Inventory –net of allowance for inventory obsolescence | 1,043,865 | ||||
Prepaid expenses and other assets | 153,461 | ||||
Total current assets | 2,473,216 | ||||
Property and equipment, net | 825,850 | ||||
Other | 672,627 | ||||
Total Assets Sold | 3,971,693 | ||||
Current liabilities | |||||
Accounts payable | 205,622 | ||||
Short-term liabilities | 464,429 | ||||
Deposits from customers | 125,032 | ||||
Accrued expenses | 10,136 | ||||
Total current liabilities | 805,219 | ||||
Deferred revenue | 6,273 | ||||
Total long-term liabilities | 6,273 | ||||
Total Liabilities Transferred | $ 811,492 | ||||
Total net sales | $ 1,521,942 | 649,061 | $ 3,763,234 | ||
Cost of sales | 685,693 | 228,086 | 1,997,211 | ||
Operating, selling, general and administrative expenses | 1,443 | 1,425,801 | 1,297,507 | 4,036,614 | |
Other (income)/expenses | 248,749 | 3,195 | 11,808 | ||
Income (loss) from discontinued operations | (1,443) | (838,301) | (879,727) | (2,282,399) | |
Amortization of discounted royalties | 14,724 | 33,875 | |||
Loss on sale of discontinued operations | (2,455,341) | ||||
Adjustment of benefit obligation | 89,085 | ||||
Income tax provision | |||||
Discontinued operations, net of tax | $ 13,281 | $ (838,301) | $ (3,212,108) | $ (2,282,399) |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) - USD ($) | 9 Months Ended | |
Nov. 22, 2022 | Jun. 30, 2023 | |
Discontinued operations funds received | $ 96,095 | |
Discontinued operations consulting fees | 7,010 | |
Loss on discontinued operations | 89,085 | |
Smart Desk [Member] | Safe Agreement [Member] | ||
Royalty expense | $ 0 | |
Cemtrex XR Inc [Member] | ||
Increase in royalty payment | 820,000 | |
Royalties paid | $ 820,000 | |
Cemtrex XR Inc [Member] | Accounting Standards Update 2020-08 [Member] | ||
Royalties paid | $ 691,611 |
SCHEDULE OF COMPUTATION OF DILU
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE EFFECT (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options | 28,796 | 34,579 | 28,796 | 34,579 |
SCHEDULE OF SEGMENT INFORMATION
SCHEDULE OF SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 14,730,140 | $ 12,108,904 | $ 42,773,779 | $ 33,268,316 | |
Cost of revenues | 8,249,497 | 7,068,797 | 23,914,249 | 21,236,178 | |
Gross profit | 6,480,643 | 5,040,107 | 18,859,530 | 12,032,138 | |
Operating expenses | |||||
Sales, general, and administrative | 5,127,079 | 4,953,718 | 15,758,333 | 15,057,235 | |
Depreciation and amortization | 249,881 | 427,811 | 698,269 | 1,038,138 | |
Research and development | 1,049,909 | 1,189,875 | 3,895,717 | 3,660,883 | |
Operating income/(loss) | 53,774 | (1,531,297) | (1,492,789) | (7,724,118) | |
Other income/(expense) | (1,219,533) | 1,389,955 | (3,323,484) | (304,872) | |
Total Assets | 41,743,676 | 41,743,676 | $ 45,757,628 | ||
Discontinued Operations [Member] | |||||
Operating expenses | |||||
Total Assets | 3,971,693 | ||||
Security [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,015,279 | 6,640,913 | 25,933,921 | 17,740,445 | |
Cost of revenues | 4,610,443 | 3,257,672 | 13,005,314 | 10,261,376 | |
Gross profit | 4,404,836 | 3,383,241 | 12,928,607 | 7,479,069 | |
Operating expenses | |||||
Sales, general, and administrative | 3,182,509 | 3,057,839 | 9,494,634 | 8,483,955 | |
Depreciation and amortization | 90,630 | 217,497 | 161,833 | 398,707 | |
Research and development | 1,049,909 | 1,189,875 | 3,895,717 | 3,660,883 | |
Operating income/(loss) | 81,788 | (1,081,970) | (623,577) | (5,064,476) | |
Other income/(expense) | (282,857) | (83,355) | (58,065) | 741,330 | |
Total Assets | 20,631,185 | 20,631,185 | 15,257,235 | ||
Industrial Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,714,861 | 5,467,991 | 16,839,858 | 15,527,871 | |
Cost of revenues | 3,639,054 | 3,811,125 | 10,908,935 | 10,974,802 | |
Gross profit | 2,075,807 | 1,656,866 | 5,930,923 | 4,553,069 | |
Operating expenses | |||||
Sales, general, and administrative | 912,387 | 1,081,392 | 3,437,565 | 3,706,041 | |
Depreciation and amortization | 159,251 | 174,066 | 484,157 | 529,779 | |
Research and development | |||||
Operating income/(loss) | 1,004,169 | 401,408 | 2,009,201 | 317,249 | |
Other income/(expense) | (7,281) | (104,797) | (68,707) | (181,586) | |
Total Assets | 17,302,398 | 17,302,398 | 16,658,984 | ||
Corporate Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | |||||
Cost of revenues | |||||
Gross profit | |||||
Operating expenses | |||||
Sales, general, and administrative | 1,032,183 | 814,487 | 2,826,134 | 2,867,239 | |
Depreciation and amortization | 36,248 | 52,279 | 109,652 | ||
Research and development | |||||
Operating income/(loss) | (1,032,183) | (850,735) | (2,878,413) | (2,976,891) | |
Other income/(expense) | (929,395) | $ 1,578,107 | (3,196,712) | $ (864,616) | |
Total Assets | $ 3,810,093 | $ 3,810,093 | $ 9,869,716 |
RESTRICTED CASH (Details Narrat
RESTRICTED CASH (Details Narrative) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $ 805,237 | $ 1,577,915 |
SCHEDULE OF FAIR VALUE OF ASSET
SCHEDULE OF FAIR VALUE OF ASSETS (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | $ 13,663 | $ 13,721 |
Marketable Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 13,663 | 13,721 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 13,663 | 13,721 |
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 | 13,663 | 13,721 |
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 | ||
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 |
SCHEDULE OF TRADE RECEIVABLES,
SCHEDULE OF TRADE RECEIVABLES, NET (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Receivables [Abstract] | ||
Trade receivables | $ 7,757,039 | $ 5,648,655 |
Allowance for doubtful accounts | (249,284) | (249,439) |
Accounts receivables, net, total | $ 7,507,755 | $ 5,399,216 |
SCHEDULE OF INVENTORY, NET (Det
SCHEDULE OF INVENTORY, NET (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,130,327 | $ 1,375,933 |
Work in progress | 95,773 | 120,026 |
Finished goods | 8,099,426 | 8,080,235 |
Inventory, gross | 9,325,526 | 9,576,194 |
Less: Allowance for inventory obsolescence | (605,786) | (1,088,377) |
Inventory –net of allowance for inventory obsolescence | $ 8,719,740 | $ 8,487,817 |
SUMMARY OF PREPAID AND OTHER CU
SUMMARY OF PREPAID AND OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Prepaid And Other Current Assets | ||
Prepaid expenses | $ 344,300 | $ 536,820 |
Prepaid inventory | 1,427,013 | 220,553 |
Deferred costs | 60,169 | 40,626 |
Prepaid income taxes | 402,048 | 604,840 |
VAT & GST tax receivable | 289,371 | 236,986 |
Contract assets | 566,515 | 781,819 |
Prepaid expenses and other assets total | $ 3,089,416 | $ 2,421,644 |
SUMMARY OF PROPERTY AND EQUIPME
SUMMARY OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,339,330 | $ 15,852,475 |
Less: Accumulated depreciation | (10,158,559) | (10,572,033) |
Property and equipment, net | 6,180,771 | 5,280,442 |
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 | 2,915,918 | 2,906,953 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 574,645 | 546,548 |
Computers And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,333,135 | 365,892 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 10,725,259 | $ 11,242,709 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Member] | ||||
Impairment Effects on Earnings Per Share [Line Items] | ||||
Depreciation | $ 249,881 | $ 427,811 | $ 698,269 | $ 1,038,138 |
SCHEDULE OF OTHER ASSETS (Detai
SCHEDULE OF OTHER ASSETS (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Rental deposits | $ 251,739 | $ 204,388 |
Investment in Masterpiece VR | 1,000,000 | 1,000,000 |
Other deposits | 64,626 | 24,467 |
Demonstration equipment supplied to resellers | 330,038 | 170,890 |
Other assets total | $ 1,646,403 | $ 1,399,745 |
OTHER ASSETS (Details Narrative
OTHER ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2023 | Jan. 19, 2022 | Nov. 13, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Investment | $ 500,000 | $ 500,000 | ||
Impairment expense | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 9 Months Ended | |||||
Apr. 27, 2023 | Jul. 31, 2022 | Feb. 26, 2021 | Aug. 31, 2019 | Jun. 30, 2023 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||||||
Costs to related party | $ 131,922 | |||||
Proceeds from royalties received | 691,611 | |||||
Griffin Filters LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction description | Company negotiated a payment agreement surrounding the sale of Griffin Filters, LLC and other liabilities due to Cemtrex, Inc | |||||
Related Party [Member] | Service [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Other receivables, current | 446,466 | |||||
Related Party [Member] | Trade Accounts Receivable [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Other receivables, current | 578,388 | |||||
Asset Purchase Agreement [Member] | Ducon Technologies Inc [Member] | Griffin Filters LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties, current | 3,372 | $ 19,133 | ||||
Asset Purchase Agreement [Member] | Ducon Technologies Inc [Member] | Griffin Filters LLC [Member] | Chief Financial Officer [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Total consideration | $ 550,000 | |||||
Asset Purchase Agreement [Member] | Ducon to Cemtrix Technology [Member] | Griffin Filters LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party, Interest rate | 5% | |||||
Debt maturity date | Jul. 31, 2024 | |||||
Other receivables, current | $ 708,512 | |||||
Asset Purchase Agreement [Member] | Ducon to Cemtrix Technology [Member] | Related Party [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties, current | $ 761,585 | |||||
Settlement Agreement [Member] | Chief Financial Officer [Member] | Secured Promissory Note [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt maturity date | Feb. 28, 2024 | Feb. 26, 2023 | ||||
Debt instrument, principal amount | $ 1,533,280 | |||||
Debt interest rate | 9% |
SCHEDULE OF RECONCILIATION OF U
SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO OPERATING LEASE LIABILITIES (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Leases | ||
2023 | $ 211,721 | |
2024 | 786,889 | |
2025 | 764,530 | |
2026 | 684,449 | |
2027 & Thereafter | 289,528 | |
Undiscounted lease payments | 2,737,117 | |
Amount representing interest | (523,776) | |
Discounted lease payments | $ 2,213,341 | $ 2,576,963 |
SCHEDULE OF LEASE COSTS (Detail
SCHEDULE OF LEASE COSTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases | ||||
Operating lease costs | $ 193,843 | $ 223,595 | $ 678,489 | $ 592,958 |
Total lease cost | $ 193,843 | $ 223,595 | $ 678,489 | $ 592,958 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 9 Months Ended | ||
Jun. 30, 2023 USD ($) ft² | Sep. 30, 2022 USD ($) | Jun. 30, 2022 | |
Leases | |||
Operating lease term | 3 years | 3 years | |
Lease liabilities | $ 2,213,341 | $ 2,576,963 | |
Lease liabilities - short term | $ 716,896 | $ 754,495 | |
Weighted average discount rate lease | 5.64% | 5.66% | |
Area of Land | ft² | 100 | ||
Payments for rent | $ 600 |
SCHEDULE OF LINES OF CREDIT AND
SCHEDULE OF LINES OF CREDIT AND LIABILITIES (Details) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Line of Credit Facility [Line Items] | ||||
Notes payable - discount | $ 1,200,200 | $ 908,333 | ||
Proceeds from notes payable | $ 8,000,000 | |||
Notes payable - Unamortized discount | $ 105,578 | $ 1,305,778 | ||
Common stock, value | $ 695,400 | |||
Notes Payable [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 5% | |||
Notes payable | $ 439,774 | |||
Notes Payable One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 8% | |||
Notes payable | $ 5,755,000 | |||
Notes payable - discount | 750,000 | |||
Notes payable - leagal fees | 5,000 | |||
Proceeds from notes payable | 5,000,000 | |||
Notes payable - Unamortized discount | $ 0 | 250,000 | ||
Notes Payable Two [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 8% | |||
Notes payable | $ 9,205,000 | |||
Notes payable - discount | 1,200,000 | |||
Notes payable - leagal fees | 5,000 | |||
Proceeds from notes payable | 8,000,000 | |||
Notes payable - Unamortized discount | $ 105,578 | $ 1,064,778 | ||
Common stock, shares | 28,572 | |||
Common stock, value | $ 700,400 | |||
Term Loans [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 11.50% | |||
Loans payable | $ 5,600,000 | |||
P P P Loans [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 1% | |||
Loans payable | $ 121,400 | |||
Software License Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loans payable | 1,125,000 | |||
Fulton Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loans payable to bank | $ 3,500,000 | |||
Interest rate basis spread | 2.37% | |||
Interest rate | 7.46% | 5.35% | ||
Fulton Bank One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loans payable to bank | $ 5,250,000 | |||
Interest rate basis spread | 2.37% | |||
Interest rate | 7.46% | 5.35% | ||
Proceeds from debt | $ 5,000,000 | |||
Fulton Bank Two [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loans payable to bank | $ 400,000 | |||
Interest rate basis spread | 2.37% | |||
Interest rate | 7.46% | 5.35% | ||
Fulton Bank Three [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loans payable to bank | $ 360,000 | |||
Interest rate basis spread | 237% | |||
Interest rate | 7.46% | 5.35% | ||
Fulton Bank Mortgage Payable [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loans payable to bank | $ 2,476,000 | |||
Interest rate basis spread | 2.62% | |||
Interest rate | 7.71% | 5.60% |
SCHEDULE OF LINES OF CREDIT A_2
SCHEDULE OF LINES OF CREDIT AND LIABILITIES (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2022 | |
Line of Credit Facility [Line Items] | ||
Total Notes payable | $ 20,895,781 | $ 20,568,141 |
Current maturities | (17,185,167) | (16,894,743) |
Unamortized original issue discount | (105,578) | (1,305,778) |
Notes Payable, Long Term | 3,605,036 | 2,367,620 |
Software License Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | $ 900,000 | |
Maturity date | Jun. 03, 2024 | |
Fulton Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | ||
Fulton Bank One [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | 247,284 | |
Maturity date | Dec. 15, 2022 | |
Fulton Bank Two [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | 63,280 | |
Maturity date | May 01, 2023 | |
Fulton Bank Three [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | $ 128,086 | 183,839 |
Maturity date | Jan. 31, 2025 | |
Fulton Bank Mortgage Payable [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | $ 2,195,515 | 2,245,664 |
Maturity date | Jan. 28, 2040 | |
Notes Payable [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | 219,370 | |
Maturity date | Oct. 26, 2022 | |
Notes Payable One [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | $ 4,899,908 | 4,943,929 |
Maturity date | Jun. 30, 2024 | |
Notes Payable Two [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | $ 10,491,283 | 9,738,632 |
Maturity date | Aug. 23, 2023 | |
Term Loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | $ 2,179,743 | 2,804,743 |
Maturity date | Dec. 31, 2024 | |
P P P Loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Notes payable | $ 101,246 | $ 121,400 |
Maturity date | May 05, 2025 |
LINES OF CREDIT AND LONG-TERM_3
LINES OF CREDIT AND LONG-TERM LIABILITIES (Details Narrative) - USD ($) | 9 Months Ended | |||||||
Mar. 29, 2024 | May 03, 2023 | Apr. 03, 2023 | Mar. 29, 2023 | Mar. 03, 2023 | Jan. 12, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | |
Line of Credit Facility [Line Items] | ||||||||
Long term debt | $ 20,895,781 | $ 20,568,141 | ||||||
NIL Funding [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maturity date | Dec. 31, 2024 | |||||||
Exchange Fee | 11.50% | |||||||
Fees | $ 10,000 | |||||||
Additional principal payment | $ 100,000 | |||||||
NIL Funding [Member] | Forecast [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Additional principal payment | $ 100,000 | |||||||
Software License Agreement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maturity date | Jun. 03, 2024 | |||||||
Additional principal payment | $ 1,125,000 | |||||||
Debt instrument periodic payment | $ 75,000 | |||||||
Long term debt | $ 900,000 | |||||||
Streeterville Capital LLC [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Original amount | $ 5,755,000 | |||||||
Increase in original amount | $ 252,912 | |||||||
Interest expense | $ 451,422 | |||||||
Exchange Fee | 5% | |||||||
Streeterville Capital LLC [Member] | September Thirty Two Thousand Twenty One Note [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Original amount | 5,755,000 | |||||||
Increase in original amount | 148,000 | |||||||
Streeterville Capital LLC [Member] | February Twenty Two Two Thousand Twenty Two Note [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Original amount | 9,205,000 | |||||||
Increase in original amount | $ 303,422 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Feb. 02, 2023 | Jan. 25, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | |
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, shares issued | 2,343,016 | 2,343,016 | 2,129,122 | |||
Preferred stock, shares outstanding | 2,278,916 | 2,278,916 | 2,065,022 | |||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||
Common stock, shares issued | 957,760 | 957,760 | 754,711 | |||
Common stock, shares outstanding | 957,760 | 957,760 | 754,711 | |||
Stockholders equity reverse stock split, descriptions | 35:1 reverse stock split | 35:1 reverse stock split | ||||
Stock issued, shares | 19,314 | |||||
Common stock shares, issued for service | 22,017 | |||||
Common stock value, issued for service | $ 39,372 | $ 102,500 | $ 141,872 | |||
Notes Payable to Banks [Member] | ||||||
Class of Stock [Line Items] | ||||||
Notes payable amount | 487,716 | 487,716 | ||||
Accrued interest | $ 662,284 | 662,284 | ||||
Stock issued, value | $ 276,151 | |||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stockholders equity reverse stock split, descriptions | 35:1 reverse stock split | |||||
Stock issued, shares | 161,718 | |||||
Common stock shares, issued for service | 6,488 | 15,529 | ||||
Common stock value, issued for service | $ 7 | $ 15 | ||||
Series 1 Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 | 3,000,000 | |||
Preferred stock, shares issued | 2,293,016 | 2,293,016 | 2,079,122 | |||
Preferred stock, shares outstanding | 2,228,916 | 2,228,916 | 2,015,022 | |||
Preferred stock dividends shares | 213,894 | |||||
Series C Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized | 100,000 | 100,000 | 100,000 | |||
Preferred stock, shares issued | 50,000 | 50,000 | 50,000 | |||
Preferred stock, shares outstanding | 50,000 | 50,000 | 50,000 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 93,313 | $ 111,402 |
Unrecognized compensation cost | $ 76,831 | |
Options to purchase | 2,931 | |
Exercise price | $ 13.65 | |
Options to forfeited | 2,858 | |
Exercise price cancelled | $ 40.95 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - 9 months ended Jun. 30, 2023 | USD ($) ft² | INR (₨) ft² | GBP (£) ft² |
Product Liability Contingency [Line Items] | |||
Area of land | 100 | 100 | 100 |
Monthly rent | $ | $ 600 | ||
Industrial Services Segment [Member] | Manchester [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of land | 25,000 | 25,000 | 25,000 |
Industrial Services Segment [Member] | York [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of land | 43,000 | 43,000 | 43,000 |
Industrial Services Segment [Member] | Emigsville [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of land | 15,500 | 15,500 | 15,500 |
Monthly rent | $ | $ 4,555 | ||
Lease expiration date1 | Aug. 31, 2025 | Aug. 31, 2025 | Aug. 31, 2025 |
Security Segment [Member] | Pune [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of land | 6,700 | 6,700 | 6,700 |
Monthly rent | $ 6,453 | ₨ 456,972 | |
Lease expiration date1 | Feb. 28, 2024 | Feb. 28, 2024 | Feb. 28, 2024 |
Security Segment [Member] | Hauppauge [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of land | 30,000 | 30,000 | 30,000 |
Monthly rent | $ | $ 28,719 | ||
Lease expiration date1 | Mar. 31, 2027 | Mar. 31, 2027 | Mar. 31, 2027 |
Security Segment [Member] | Hampshire [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of land | 9,400 | 9,400 | 9,400 |
Monthly rent | $ 7,329 | £ 5,771 | |
Lease expiration date1 | Mar. 24, 2031 | Mar. 24, 2031 | Mar. 24, 2031 |
Lessee operating lease, description | terminate in 2026 | terminate in 2026 | terminate in 2026 |
Security Segment [Member] | Clovis CA [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of land | 280 | 280 | 280 |
Monthly rent | $ | $ 1,504 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Aug. 04, 2023 | Jul. 31, 2023 | Jul. 06, 2023 | Jul. 01, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 22,017 | ||||||||
Interest expense | $ 1,254,185 | $ 925,545 | $ 3,717,557 | $ 3,641,432 | |||||
Common stock, share value | $ 39,372 | $ 102,500 | $ 141,872 | ||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Acquisition consideration | $ 2,400,000 | ||||||||
Acquisition consideration, cash | 2,160,000 | ||||||||
Acquisition consideration, seller's note | 240,000 | ||||||||
Business combination consideration transferred liabilities incurred | 2,160,000 | ||||||||
Acquisition costs | 25,000 | ||||||||
Real estate to be purchased | $ 1,500,000 | ||||||||
Subsequent Event [Member] | Notes Payable And Accrued Interest [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 6,400 | 32,488 | 1,686 | ||||||
Repayments of notes payable | $ 200,000 | ||||||||
Interest expense | $ 25,792 | ||||||||
Common stock, share value | $ 45,625 | $ 7,500 |