Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2023 | Feb. 09, 2024 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
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 | 1,055,636 | |
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 ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 2,835,216 | $ 5,329,910 |
Restricted cash | 1,181,516 | 1,019,652 |
Short-term investments | 13,307 | 13,663 |
Inventory, net | 7,938,617 | 8,739,219 |
Contract assets, net | 1,694,135 | 1,739,201 |
Prepaid expenses and other current assets | 1,347,298 | 2,098,359 |
Total current assets | 26,411,336 | 29,293,041 |
Property and equipment, net | 9,170,376 | 9,218,701 |
Right-of-use operating lease assets | 2,094,342 | 2,287,623 |
Goodwill | 4,381,891 | 4,381,891 |
Other | 1,990,601 | 1,836,009 |
Total Assets | 45,298,305 | 48,453,743 |
Current liabilities | ||
Sales tax payable | 10,713 | 35,829 |
Revolving line of credit | 3,357,324 | |
Current maturities of long-term liabilities | 15,717,081 | 14,507,711 |
Operating lease liabilities - short-term | 728,875 | 741,487 |
Deposits from customers | 83,613 | 57,434 |
Accrued expenses | 1,842,692 | 2,784,390 |
Contract liabilities | 988,725 | 980,319 |
Deferred revenue | 1,562,107 | 1,583,406 |
Accrued income taxes | 212,249 | 388,627 |
Total current liabilities | 28,696,123 | 27,344,118 |
Long-term liabilities | ||
Loans payable to bank | 1,852,620 | 1,909,739 |
Long-term operating lease liabilities | 1,426,684 | 1,607,202 |
Notes payable | 1,600,000 | 4,679,743 |
Mortgage payable | 3,267,355 | 3,289,303 |
Other long-term liabilities | 405,624 | 501,354 |
Paycheck Protection Program Loans | 40,443 | 50,563 |
Deferred Revenue - long-term | 694,245 | 727,928 |
Total long-term liabilities | 9,286,971 | 12,765,832 |
Total liabilities | 37,983,094 | 40,109,950 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Common stock, $0.001 par value, 50,000,000 shares authorized, 1,055,636 shares issued and outstanding at December 31, 2023 and 1,045,783 shares issued and outstanding at September 30, 2023 | 1,056 | 1,046 |
Additional paid-in capital | 68,929,137 | 68,881,705 |
Accumulated deficit | (65,333,389) | (64,125,895) |
Treasury stock, 64,100 shares of Series 1 Preferred Stock at December 31, 2023 and September 30, 2023 | (148,291) | (148,291) |
Accumulated other comprehensive income | 3,304,470 | 3,076,706 |
Total Cemtrex stockholders’ equity | 6,755,441 | 7,687,614 |
Non-controlling interest | 559,770 | 656,179 |
Total liabilities and stockholders’ equity | 45,298,305 | 48,453,743 |
Series 1 Preferred Stock [Member] | ||
Stockholders’ equity | ||
Preferred stock, value | 2,408 | 2,293 |
Series C Preferred Stock [Member] | ||
Stockholders’ equity | ||
Preferred stock, value | 50 | 50 |
Nonrelated Party [Member] | ||
Current assets | ||
Trade receivables, net | 9,904,555 | 9,209,695 |
Current liabilities | ||
Accounts payable | 4,124,014 | 6,196,406 |
Related Party [Member] | ||
Current assets | ||
Trade receivables, net | 1,496,692 | 1,143,342 |
Royalties receivable, net- related party | 488,174 | 674,893 |
Note receivable, net - related party | 761,585 | 761,585 |
Current liabilities | ||
Accounts payable | $ 68,730 | $ 68,509 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Sep. 30, 2023 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 2,458,053 | 2,343,016 |
Preferred stock, shares outstanding | 2,393,953 | 2,278,916 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Outstanding | 1,055,636 | 1,045,783 |
Treasury stock, shares authorized | 64,100 | 64,100 |
Series 1 Preferred Stock [Member] | ||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 2,408,053 | 2,293,016 |
Preferred stock, shares outstanding | 2,343,953 | 2,228,916 |
Preferred stock, liquidation value per share | $ 10 | $ 10 |
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 | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 16,878,166 | $ 11,970,242 |
Cost of revenues | 9,795,767 | 6,927,627 |
Gross profit | 7,082,399 | 5,042,615 |
Operating expenses | ||
General and administrative | 6,971,966 | 5,455,833 |
Research and development | 848,805 | 1,538,218 |
Total operating expenses | 7,820,771 | 6,994,051 |
Operating loss | (738,372) | (1,951,436) |
Other (expense)/income | ||
Other income/(expense), net | 78,411 | (17,083) |
Interest expense | (583,683) | (1,128,234) |
Total other (expense)/income, net | (505,272) | (1,145,317) |
Net loss before income taxes | (1,243,644) | (3,096,753) |
Income tax expense | (70,751) | |
Loss from Continuing operations | (1,314,395) | (3,096,753) |
Income/(loss) from discontinued operations, net of tax | 10,492 | (3,239,621) |
Net loss | (1,303,903) | (6,336,374) |
Less loss in noncontrolling interest | (96,409) | (59,163) |
Net loss attributable to Cemtrex, Inc. stockholders | $ (1,207,494) | $ (6,277,211) |
Income/(loss) per share - Basic & Diluted | ||
Continuing Operations Income Loss per share - Basic | $ (1.16) | $ (3.99) |
Continuing Operations Income Loss per share - Diluted | (1.16) | (3.99) |
Discontinued Operations Income Loss per share - Basic | 0.01 | (4.25) |
Discontinued Operations Income Loss per share - Diluted | $ 0.01 | $ (4.25) |
Weighted Average Number of Shares - Basic | 1,047,624 | 761,571 |
Weighted Average Number of Shares - Diluted | 1,047,624 | 761,571 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other comprehensive loss | ||
Net loss | $ (1,303,903) | $ (6,336,374) |
Foreign currency translation gain | 227,764 | 223,569 |
Comprehensive loss | (1,076,139) | (6,112,805) |
Less comprehensive income attributable to noncontrolling interest | (96,409) | (59,163) |
Comprehensive loss attributable to Cemtrex, Inc. stockholders | $ (979,730) | $ (6,053,642) |
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, 2022 | $ 2,079 | $ 50 | $ 755 | $ 66,641,696 | $ (54,929,020) | $ (148,291) | $ 2,377,525 | $ 13,944,794 | $ 692,742 |
Balance, shares at Sep. 30, 2022 | 2,079,122 | 50,000 | 754,711 | ||||||
Foreign currency translation gain | 223,569 | 223,569 | |||||||
Share-based compensation | 39,842 | 39,842 | |||||||
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) | |||||||
Shares issued to pay notes payable | $ 39 | 232,106 | 232,145 | ||||||
Shares issued to pay notes payable, shares | 39,016 | ||||||||
Balance at Dec. 31, 2022 | $ 2,183 | $ 50 | $ 794 | 66,913,540 | (61,206,231) | (148,291) | 2,601,094 | 8,163,139 | 633,579 |
Balance, shares at Dec. 31, 2022 | 2,183,463 | 50,000 | 793,727 | ||||||
Balance at Sep. 30, 2023 | $ 2,293 | $ 50 | $ 1,046 | 68,881,705 | (64,125,895) | (148,291) | 3,076,706 | 7,687,614 | 656,179 |
Balance, shares at Sep. 30, 2023 | 2,293,016 | 50,000 | 1,045,783 | ||||||
Foreign currency translation gain | 227,764 | 227,764 | |||||||
Share-based compensation | 7,557 | 7,557 | |||||||
Dividends paid in Series 1 preferred shares | $ 115 | (115) | |||||||
Dividends paid in Series 1 preferred shares, shares | 115,037 | ||||||||
Income/(loss) attributable to noncontrolling interest | (96,409) | ||||||||
Shares issued to pay for services | $ 10 | 39,990 | $ 40,000 | ||||||
Shares issued to pay for services, shares | 9,853 | 9,853 | |||||||
Net loss | (1,207,494) | $ (1,207,494) | |||||||
Balance at Dec. 31, 2023 | $ 2,408 | $ 50 | $ 1,056 | $ 68,929,137 | $ (65,333,389) | $ (148,291) | $ 3,304,470 | $ 6,755,441 | $ 559,770 |
Balance, shares at Dec. 31, 2023 | 2,408,053 | 50,000 | 1,055,636 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net loss | $ (1,303,903) | $ (6,336,374) |
Adjustments to reconcile net loss to net cash used by operating activities | ||
Depreciation and amortization | 368,301 | 530,830 |
Gain on disposal of property and equipment | (3,547) | |
Noncash lease expense | 193,281 | 197,198 |
Bad debt expense | 11,964 | 4,510 |
Share-based compensation | 7,557 | 39,842 |
Income tax expense | 70,751 | |
Interest expense paid in equity shares | 32,145 | |
Accounts payable paid in equity shares | 40,000 | |
Accrued interest on notes payable | 327,132 | 528,100 |
Non-cash royalty income | (13,282) | |
Amortization of original issue discounts on notes payable | 441,734 | |
Amortization of loan origination costs | 18,133 | |
Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: | ||
Trade receivables | (696,824) | (1,541,371) |
Trade receivables - related party | (163,349) | (383,710) |
Inventory | 800,602 | (116,942) |
Contract assets | 45,066 | (260,647) |
Prepaid expenses and other current assets | 636,906 | (410,327) |
Other assets | (54,592) | (146,356) |
Accounts payable | (2,072,392) | (327,945) |
Accounts payable - related party | 221 | (99) |
Sales tax payable | (25,116) | (2,387) |
Operating lease liabilities | (193,130) | (132,963) |
Deposits from customers | 26,179 | 416,523 |
Accrued expenses | (941,698) | 977,328 |
Contract liabilities | 8,406 | 1,037,897 |
Deferred revenue | (54,982) | (95,395) |
Income taxes payable | (78,574) | (94,848) |
Other liabilities | (95,730) | (225,506) |
Net cash used by operating activities - continuing operations | (3,139,073) | (5,872,310) |
Net cash provided by operating activities - discontinued operations | 2,501,426 | |
Net cash used by operating activities | (3,139,073) | (3,370,884) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (290,666) | (571,658) |
Proceeds from sale of property and equipment | 3,547 | |
Proceeds from sale of marketable securities | 356 | |
Investment in MasterpieceVR | (100,000) | |
Net cash used by by investing activities - continuing operations | (390,310) | (568,111) |
Net cash provided by investing activities - discontinued operations | 207,329 | |
Net cash used by investing activities | (390,310) | (360,782) |
Cash Flows from Financing Activities | ||
Proceeds on revolving line of credit | 11,655,935 | |
Payments on revolving line of credit | (8,371,144) | |
Payments on debt | (2,204,743) | (294,370) |
Payments on Paycheck Protection Program Loans | (10,120) | |
Proceeds on bank loans | 28,331 | |
Payments on bank loans | (100,160) | (306,550) |
Net cash provided by/(used by) financing activities | 998,099 | (600,920) |
Effect of currency translation | 198,454 | 229,243 |
Net decrease in cash, cash equivalents, and restricted cash | (2,531,284) | (4,332,586) |
Less cash attributed to discontinued operations | (714,420) | |
Cash, cash equivalents, and restricted cash at beginning of period | 6,349,562 | 12,188,096 |
Cash, cash equivalents, and restricted cash at end of period | 4,016,732 | 7,370,333 |
Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash | ||
Cash and cash equivalents | 2,835,216 | 5,768,610 |
Restricted cash | 1,181,516 | 1,601,723 |
Total cash, cash equivalents, and restricted cash | 4,016,732 | 7,370,333 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 238,418 | 126,255 |
Cash paid during the period for income taxes, net of refunds | 176,378 | 94,848 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Shares issued to pay for services | 40,000 | |
Shares issued to pay notes payable | 232,145 | |
Financing of fixed asset purchase | 28,331 | |
Investment in right of use asset | $ 76,506 |
ORGANIZATION AND PLAN OF OPERAT
ORGANIZATION AND PLAN OF OPERATIONS | 3 Months Ended |
Dec. 31, 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. The Company’s reporting segments consist of Security and Industrial Services. 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. Acquisition of Heisey Mechanical On July 1, 2023, the Company under AIS, completed the acquisition of a leading service contractor and steel fabricator that specializes in industrial and water treatment markets, Heisey Mechanical, Ltd. (“Heisey”) based in Columbia, Pennsylvania for $ 2,400,000 393,291 1,500,000 Heisey provides the water treatment industry with a variety of fabricated vessels and equipment including ASME pressure vessels, heat exchangers, mix tanks, reactors, and other specialized fabricated equipment. Additionally, the contracting team assists with installation and service of fabricated items. The company has over 33,000 The purchase price allocation presented below is still preliminary but has been developed based on an estimate of fair values of Heisey’s identifiable tangible and intangible assets acquired and liabilities assumed as of July 1, 2023. The final allocation of the purchase price will be determined within one year from the closing date of the Heisey acquisition. The consideration transferred and preliminary allocation of Heisey’s tangible and intangible assets and liabilities, are as follows: SCHEDULE OF BUSINESS ACQUISITION OF TANGIBLE AND INTANGIBLE ASSETS AND LIABILITIES Consideration Transferred: Cash $ 393,291 Seller’s note 240,000 Financed amount 2,160,000 Total consideration transferred $ 2,793,291 Purchase Price Allocation: Inventory 300,000 Contract assets 667,259 Machinery and equipment 1,625,000 Contract liabilities (216,469 ) Accrued expenses (57,499 ) Goodwill 475,000 Total consideration transferred $ 2,793,291 The pro forma summary below presents the results of operations as if the Heisey acquisition occurred on October 1, 2022. Proforma adjustments for the three months ended December 31, 2022, includes $ 63,900 33,400 SCHEDULE OF PRO FORMA FINANCIAL INFORMATION Unaudited for the three months ended December 31, 2022 Revenues $ 13,173,838 Net loss (6,440,203 ) On August 30, 2023, the Company acquired a mortgage in the amount of $ 1,200,000 2.8 September 30, 2043 Nasdaq Notices for Listing Deficiencies 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 Subsequent to the balance sheet date, the Company has bought back 71,951 69,705 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 $ 9,196,875 13,020,958 1,314,395 28,696,123 2,284,787 While our working capital deficit 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. The Company has approximately $ 2.84 1,642,676 35:1 reverse stock split The condensed consolidated financial statements do not include any adjustments relating to this uncertainty. |
INTERIM STATEMENT PRESENTATION
INTERIM STATEMENT PRESENTATION | 3 Months Ended |
Dec. 31, 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, 2023, 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. 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, 2023, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Adopted Accounting Pronouncements 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. On October 1, 2023, the Company implemented this standard and there has been no material change to the financial statements. The Company estimates credit losses associated with our accounts receivable portfolio segment using an expected credit loss model, which utilizes an aging schedule methodology based on historical information and adjusted for asset-specific considerations, current economic conditions and reasonable and supportable forecasts. The Company will utilize the Probability-of-default method for financing receivables and loans. Expected credit losses are determined by multiplying the probability of default (i.e., the probability the asset will default within the given time frame) by the loss given default (the percentage of the asset not expected to be collected because of default). The Company considers sources of repayment associated with a financial asset when determining its credit losses, including collection against the collateral and certain embedded credit enhancements, such as guarantees or insurance. The allowance for credit losses were immaterial as of December 31, 2023. Recently Issued Accounting Pronouncements Not Yet Effective 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. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which enhances the disclosures required for operating segments in the Company’s annual and interim consolidated financial statements. ASU 2023-07 is effective for the Company for annual reporting for fiscal 2025 and for interim period reporting beginning in fiscal 2026 on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of our pending adoption of ASU 2023-07 on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires public entities to disclose consistent categories and greater disaggregation of information in the rate reconciliation and for income taxes paid. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is required to adopt this standard prospectively in fiscal year 2026 for the annual reporting period ending September 30, 2026. The Company is currently in the process of evaluating the impact of adoption on its Consolidated 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 | 3 Months Ended |
Dec. 31, 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, 13,282 4,427 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 ) As of December 31, 2023, and September 30, 2023, there were no assets or liabilities included within discontinued operations on the Company’s Condensed Consolidated Balance Sheets. 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 Income/(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 month periods ended December 31, 2023 and 2022, are as follows: SCHEDULE OF FINANCIAL STATEMENTS INCLUDED WITHIN DISCONTINUED OPERATIONS 2023 2022 For the three months ended December 31, 2023 2022 Total net sales $ - $ 649,061 Cost of sales - 228,086 Operating, selling, general and administrative expenses - 1,295,572 Other (income)/expenses - 3,195 Income (loss) from discontinued operations - (877,792 ) Amortization of discounted royalties 13,282 4,427 Loss on sale of discontinued operations - (2,455,341 ) Adjustment of benefit obligation - 89,085 Income tax provision 2,790 - Discontinued operations, net of tax $ 10,492 $ (3,239,621 ) |
REVENUE
REVENUE | 3 Months Ended |
Dec. 31, 2023 | |
Revenue | |
REVENUE | NOTE 4 – REVENUE The following table illustrates the approximate disaggregation of the Company’s revenue based off timing of revenue recognition for the three months ended December 31, 2023 and 2022: SCHEDULE OF DISAGGREGATION OF REVENUE RECOGNITION For the three months ended December 31, 2023 December 31, 2022 Over time 52 % 51 % Point-in-time 48 % 49 % |
LOSS PER COMMON SHARE
LOSS PER COMMON SHARE | 3 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER COMMON SHARE | NOTE 5 – 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 months ended December 31, 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 For the three months ended December 31, 2023 2022 Options 28,796 34,579 For the three months ended December 31, 2023 and 2022, loss per share basic and diluted for continuing operations are calculated as follows: SCHEDULE OF LOSS PER SHARE BASIC AND DILUTED FOR CONTINUING OPERATION 2023 2022 For the three months December 31, 2023 2022 Loss from Continuing operations $ (1,314,395 ) $ (3,096,753 ) Less loss in noncontrolling interest (96,409 ) (59,163 ) Preferred stock dividends - - Net loss applicable to common shareholders (1,217,986 ) (3,037,590 ) Weighted Average Number of Shares-Basic & Diluted 1,047,624 761,571 Loss per share - Basic & Diluted - Continuing Operations $ (1.16 ) $ (3.99 ) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 6 – SEGMENT INFORMATION The Company reports and evaluates financial information for two reportable segments: the Security segment and the Industrial Services segment. The following tables summarize the Company’s reportable segment information and corporate expenses: SCHEDULE OF SEGMENT INFORMATION Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Three months ended December 31, 2023 Three months ended December 31, 2022 Reportable Segments Reportable Segments Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Revenues $ 9,167,801 $ 7,710,365 $ - $ 16,878,166 $ 7,004,744 $ 4,965,498 $ - $ 11,970,242 Cost of revenues 4,650,854 5,144,913 - 9,795,767 3,601,054 3,326,573 - 6,927,627 Gross profit $ 4,516,947 $ 2,565,452 $ - $ 7,082,399 $ 3,403,690 $ 1,638,925 $ - $ 5,042,615 Operating expenses General, and administrative 4,327,628 1,529,263 746,774 6,603,665 2,749,429 1,188,865 986,709 4,925,003 Depreciation and amortization 128,152 240,149 - 368,301 331,155 167,521 32,154 530,830 Research and development 848,805 - - 848,805 1,538,218 - - 1,538,218 Operating (loss)/income $ (787,638 ) $ 796,040 $ (746,774 ) $ (738,372 ) $ (1,215,112 ) $ 282,539 $ (1,018,863 ) $ (1,951,436 ) Other income/(expense) $ (134,261 ) $ (108,144 ) $ (262,867 ) $ (505,272 ) $ (112,399 ) $ (31,560 ) $ (1,001,358 ) $ (1,145,317 ) |
RESTRICTED CASH
RESTRICTED CASH | 3 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 7 – RESTRICTED CASH A subsidiary of the Company participates in a consortium in order to self-insure group care coverage for its employees. The plan is administrated by Benecon Group and the Company makes monthly deposits in a trust account to cover medical claims and any administrative costs associated with the plan. These funds, as required by the plan are restricted in nature and amounted to $ 1,181,516 1,019,652 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 8 – 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 December 31, 2023, and September 30, 2023, are as follows. SCHEDULE OF FAIR VALUE OF ASSETS Quoted Prices Significant Significant Balance Assets Investment in marketable securities (included in short-term investments) $ 13,307 $ - $ - $ 13,307 $ 13,307 $ - $ - $ 13,307 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Significant Balance Assets Investment in marketable securities (included in short-term investments) $ 13,663 $ - $ - $ 13,663 $ 13,663 $ - $ - $ 13,663 |
TRADE RECEIVABLES, NET
TRADE RECEIVABLES, NET | 3 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
TRADE RECEIVABLES, NET | NOTE 9 – TRADE RECEIVABLES, NET Trade receivables, net consist of the following: SCHEDULE OF TRADE RECEIVABLES, NET December 31, 2023 September 30, 2023 Trade receivables $ 10,141,443 $ 9,444,619 Allowance for credit losses (236,888 ) (234,924 ) Accounts receivables, net, total $ 9,904,555 $ 9,209,695 Trade receivables include amounts due for shipped products and services rendered. Allowance for credit losses include estimated losses resulting from the inability of our customers to make the required payments. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses And Other Current Assets | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 10 – PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: SUMMARY OF PREPAID AND OTHER CURRENT ASSETS December 31, 2023 September 30, 2023 Prepaid expenses $ 386,334 $ 521,310 Prepaid inventory 559,075 1,084,051 Deferred costs 36,002 25,941 Loan origination costs 54,400 - Prepaid income taxes - 168,555 VAT and GST tax receivable 311,487 298,502 Prepaid expenses and other current assets total $ 1,347,298 $ 2,098,359 |
INVENTORY, NET
INVENTORY, NET | 3 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY, NET | NOTE 11 – INVENTORY, NET Inventory, net consisted of the following: SCHEDULE OF INVENTORY, NET December 31, 2023 September 30, 2023 Raw materials $ 857,117 $ 885,398 Work in progress 397,017 109,019 Finished goods 6,684,483 7,744,802 Inventory, net 7,938,617 8,739,219 The Company maintained an allowance for obsolete inventories of $ 502,528 618,021 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 12 – PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: SUMMARY OF PROPERTY AND EQUIPMENT December 31, 2023 September 30, 2023 Land $ 945,279 $ 945,279 Building and leasehold improvements 4,370,732 4,362,062 Furniture and office equipment 595,397 579,700 Computers and software 1,333,135 1,333,135 Machinery and equipment 12,744,304 12,488,639 Property and equipment, gross 19,988,847 19,708,815 Less: Accumulated depreciation (10,818,471 ) (10,490,114 ) Property and equipment, net $ 9,170,376 $ 9,218,701 Depreciation expense for the three months ended December 31, 2023, and 2022, was $ 368,301 530,830 |
GOODWILL
GOODWILL | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 13 – GOODWILL Changes in the carrying amount of goodwill, by segment, are as follows: SCHEDULE OF GOODWILL BY SEGMENT Security Industrial Services Corporate Consolidated Balance at September 30, 2023 $ 530,475 $ 3,851,416 $ - $ 4,381,891 Balance at December 31, 2023 $ 530,475 $ 3,851,416 $ - $ 4,381,891 As of December 31, 2023, and September 30, 2023, accumulated impairment losses of $ 3,316,000 |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | NOTE 14 – OTHER ASSETS On November 13, 2020, Cemtrex made a $ 500,000 500,000 100,000 No Other assets consisted of the following: SCHEDULE OF OTHER ASSETS December 31, 2023 September 30, 2023 Rental deposits $ 56,807 $ 198,641 Investment in Masterpiece VR 1,200,000 1,100,000 Other deposits 322,976 167,808 Demonstration equipment supplied to resellers 410,818 369,560 Other assets total $ 1,990,601 $ 1,836,009 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 15 – ACCRUED EXPENSES Accrued expenses consisted of the following: SCHEDULE OF ACCRUED EXPENSES December 31, 2023 September 30, 2023 Accrued expenses $ 477,094 $ 1,473,465 Accrued payroll 1,142,896 1,088,223 Accrued warranty 222,702 222,702 Accrued expenses total $ 1,842,692 $ 2,784,390 |
DEFERRED REVENUE
DEFERRED REVENUE | 3 Months Ended |
Dec. 31, 2023 | |
Deferred Revenue | |
DEFERRED REVENUE | NOTE 16 – DEFERRED REVENUE The Company’s deferred revenue as of and for the three months ended December 31, 2023, and 2022, were as follows: SCHEDULE OF DEFERRED REVENUE For the three months ended December 31, 2023 December 31, 2022 Deferred revenue at beginning of period $ 2,311,334 $ 1,824,534 Net additions: Deferred software revenues 659,970 427,418 Recognized as revenue: Deferred software revenues 714,952 558,931 Deferred revenue at end of period 2,256,352 1,693,021 Less: current portion 1,562,107 1,097,740 Long-term deferred revenue at end of period $ 694,245 $ 595,281 For the three months ended December 31, 2023 and 2022, the Company recognized revenue of $ 608,843 506,185 |
CONTRACT ASSETS AND LIABILITIES
CONTRACT ASSETS AND LIABILITIES | 3 Months Ended |
Dec. 31, 2023 | |
Contract Assets And Liabilities | |
CONTRACT ASSETS AND LIABILITIES | NOTE 17 – CONTRACT ASSETS AND LIABILITIES Project contracts typically provide for a schedule of billings on percentage of completion of specific tasks inherent in the fulfillment of the Company’s performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in the statements of operations can and usually does differ from amounts that can be billed to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceeds cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in the balance sheets under the caption “Contract assets.” Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized are reflected as a current liability in the balance sheets under the caption “Contract liabilities.” Conditional retainage represents the portion of the contract price withheld until the work is substantially complete for assurance of the Company’s obligations to complete the job. The following is a summary of the Company’s uncompleted contracts: SCHEDULE OF CONTRACT ASSETS AND LIABILITIES December 31, 2023 December 31, 2022 Costs incurred on uncompleted contracts $ 11,900,894 $ 2,779,408 Estimated gross profit 3,020,654 1,145,663 14,921,548 3,925,071 Applicable billings to date (14,216,138 ) (4,811,777 ) Net billings in excess of costs, Ending balance $ 705,410 $ (886,706 ) December 31, 2023 September 30, 2023 Included in the accompanying balance sheet under the following captions Contract assets, net Costs in excess, net $ 1,593,142 $ 1,680,071 Conditional retainage, net 100,993 59,130 Total contract assets $ 1,694,135 $ 1,739,201 Contract liabilities Billings in excess (988,725 ) (980,319 ) Total contract liabilities $ (988,725 ) $ (980,319 ) December 31, 2022 September 30, 2022 Included in the accompanying balance sheet under the following captions Contract assets, net Costs in excess, net $ 521,172 $ 781,819 Total contract assets, net $ 521,172 $ 781,819 Contract liabilities Billings in excess (1,407,878 ) (369,890 ) Total contract liabilities $ (1,407,878 ) $ (369,890 ) For the three months ended December 31, 2023 and 2022, the Company recognized revenue of $ 791,161 352,847 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 18 – 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 the Company 761,585 5 July 31, 2024 As of December 31, 2023, and September 30, 2023, there was $ 3,811 3,806 As of December 31, 2023, and September 30, 2023, there was $ 638,207 637,208 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. Cemtrex XR, Inc. was purchased for $ 890,000 75,000 5 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, Mr. Govil shall be obligated to pay the difference between $820,000 and the royalties paid. The first Royalty payment is due by March 30, 2024. Cemtrex Advanced Technologies, Inc. was purchased for $10,000 in cash, 5% royalty of all revenues on the Business to be paid 90 days after the end of each calendar year for the next 5 years, and $1,600,000 in SAFE (common equity) at any subsequent fundraising or exit above $5,000,000 with a $10,000,000 cap. Subsequent to the sale of Cemtrex Advanced Technologies, Inc. the business has ceased operations. 5 As of December 31, 2023, there was $ 638,485 133,778 504,707 64,919 As of December 31, 2023, there were royalties receivable from the sale of Cemtrex, XR, Inc. of $ 708,174 , of which $ 220,000 |
LEASES
LEASES | 3 Months Ended |
Dec. 31, 2023 | |
Leases | |
LEASES | NOTE 19 – 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 2.75 years at December 31, 2023, and 3 years at September 30, 2023. Lease liabilities were $ 2,155,559 with $ 728,875 classified as short-term at December 31, 2023, and $ 2,348,689 with $ 741,487 , classified as short-term at September 30, 2023. The weighted average discount rate used to measure lease liabilities was approximately 5.6 % at December 31, 2023, and September 30, 2023. The Company used the rate implicit in the lease, where known, or its incremental borrowing rate as the rate used to discount the future lease payments. Cash used by operating leases were $ 193,130 132,963 The Company has elected 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 1,800 The Company’s security segment leases approximately 1,037 5,487 16,461 A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the condensed consolidated balance sheet at December 31, 2023, is set forth below: SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO OPERATING LEASE LIABILITIES Years ending September 30, Operating Leases 2024 624,469 2025 823,816 2026 621,892 2027 270,742 2028 & Thereafter 51,415 Undiscounted lease payments 2,392,334 Amount representing interest (236,775 ) Discounted lease payments $ 2,155,559 Lease costs for the three months ended December 31, 2023, and 2022 are set forth below: SCHEDULE OF LEASE COSTS 2023 2022 For the three months ended December 31, 2023 2022 Lease costs: Operating lease costs 193,432 261,433 Short-term lease costs 18,261 - Total lease cost $ 211,693 $ 261,433 |
LINES OF CREDIT AND LONG-TERM L
LINES OF CREDIT AND LONG-TERM LIABILITIES | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
LINES OF CREDIT AND LONG-TERM LIABILITIES | NOTE 20 – LINES OF CREDIT AND LONG-TERM LIABILITIES Revolving line of credit On October 5, 2023, the Company obtained a revolving line of credit in the amount of $ 5,000,000 3 3,357,324 54,400 1,642,676 Standstill Agreement On August 31, 2023, the Company and Streeterville Capital, LLC entered into a standstill agreement for the two notes held by Streeterville Capital, LLC. The terms of this agreement are the earlier of (a) the date that is ninety (90) days from the Effective Date, and (b) the date that the Company completes an equity offering on either Form S-1 or Form S-3 (the “Standstill Period”), Streeterville Capital, LLC will not seek to redeem any portion of the Notes, and (c) the Company agrees to prepay to Lender fifty percent (50%) of the net proceeds received by Borrower in connection with all equity financings until such time as Borrower has raised at least $ 5,000,000 The following table outlines the Company’s secured liabilities: SCHEDULE OF LINES OF CREDIT AND LIABILITIES December 31, September 30, Interest Rate Maturity 2023 2023 Fulton Bank - $ 360,000 SOFR plus 2.37 7.75 7.68 1/31/2025 89,125 108,700 Fulton Bank mortgage $ 2,476,000 SOFR plus 2.62 8.00 7.93 1/28/2040 2,163,687 2,180,115 Fulton Bank (HEISEY) - $ 1,200,000 SOFR plus 2.80 8.18 8.11 9/30/2043 1,194,480 1,200,000 Fulton Bank (HEISEY) - $ 2,160,000 SOFR plus 2.80 8.18 8.11 7/1/2030 2,063,927 2,122,565 Note payable - $ 5,755,000 750,000 5,000 5,000,000 0 8 6/30/2024 4,691,520 4,596,589 Note payable - $ 9,205,000 1,200,000 5,000 8,000,000 28,572 700,400 0 8 2/22/2025 11,475,435 11,243,233 Note Payable - $ 240,000 6 7/1/2024 240,000 240,000 Term Loan Agreement with NIL Funding Corporation (“NIL”) - $ 5,600,000 11.50 12/31/2024 - 1,979,743 Paycheck Protection Program loan - $ 121,400 1 5/5/2025 80,994 91,114 Software License Agreement - $ 1,125,000 N/A 6/3/2024 450,000 675,000 HDFC Bank Auto Loan - $ 28,331 65,179 784.89 8.70 6/5/2027 28,331 - Total secured liabilities $ 22,477,499 $ 24,437,059 Less: Current maturities (15,717,081 ) (14,507,711 ) Less: Unamortized original issue discount - - Secured liabilities, Long Term $ 6,760,418 $ 9,929,348 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 21 – STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 10,000,000 0.001 2,458,053 2,343,016 2,393,953 2,278,916 Series 1 Preferred Stock During the three months ended December 31, 2023, 115,037 As of December 31, 2023, and September 30, 2023, there were 2,408,053 2,293,016 2,343,953 2,228,916 Series C Preferred Stock As of December 31, 2023, and September 30, 2023, there were 50,000 Common Stock The Company is authorized to issue 50,000,000 0.001 1,055,636 1,045,783 During the three months ended December 31, 2023, 9,853 40,000 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 22 – SHARE-BASED COMPENSATION For the three months ended December 31, 2023, and 2022, the Company recognized $ 7,557 39,842 55,748 During the three months ended December 31, 2023, no options were granted, cancelled, or forfeited. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 23 – COMMITMENTS AND CONTINGENCIES The Company’s Industrial Services segment leases approximately 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 From time to time, the Company and its subsidiaries are involved in legal proceedings that are incidental to the operation of our business. The Company continues to defend vigorously against all claims. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including assessment of the merits of the particular claim, as well as current accruals and insurance coverage, the Corporation does not expect that such legal proceedings will have a material adverse impact on its condensed consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 24 – SUBSEQUENT EVENTS Delisting from NASDAQ Capital Market and Repurchase of Series 1 Preferred Stock Subsequent to the balance sheet date, the Company has bought back 71,951 69,705 The Company’s Series 1 Preferred Stock was suspended from the Nasdaq Capital Market on January 22, 2024. The Series 1 Preferred Stock is now quoted on the OTC Markets under the symbol “CETXP.” Nasdaq informed the Company that Nasdaq will complete the delisting by filing a Form 25 Notification of Delisting with the SEC following the lapse of applicable appeal periods. The Company does not intend to appeal the Panel’s decision. After the Form 25 is filed, the delisting will become effective 10 days later. The deregistration of the Company’s Series 1 Preferred Stock under Section 12(b) of the Exchange Act will be effective for 90 days, or such shorter period as the SEC may determine, after filing of the Form 25. Filing of Registration Statement on Form S-1 On January 17, 2024, the Company filed a preliminary Prospectus on Form S-1 to register shares of our common stock and common stock warrants for sale through a placement agent. |
INTERIM STATEMENT PRESENTATION
INTERIM STATEMENT PRESENTATION (Policies) | 3 Months Ended |
Dec. 31, 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, 2023, 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. |
Significant Accounting Policies | 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, 2023, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements 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. On October 1, 2023, the Company implemented this standard and there has been no material change to the financial statements. The Company estimates credit losses associated with our accounts receivable portfolio segment using an expected credit loss model, which utilizes an aging schedule methodology based on historical information and adjusted for asset-specific considerations, current economic conditions and reasonable and supportable forecasts. The Company will utilize the Probability-of-default method for financing receivables and loans. Expected credit losses are determined by multiplying the probability of default (i.e., the probability the asset will default within the given time frame) by the loss given default (the percentage of the asset not expected to be collected because of default). The Company considers sources of repayment associated with a financial asset when determining its credit losses, including collection against the collateral and certain embedded credit enhancements, such as guarantees or insurance. The allowance for credit losses were immaterial as of December 31, 2023. |
Recently Issued Accounting Pronouncements Not Yet Effective | Recently Issued Accounting Pronouncements Not Yet Effective 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. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which enhances the disclosures required for operating segments in the Company’s annual and interim consolidated financial statements. ASU 2023-07 is effective for the Company for annual reporting for fiscal 2025 and for interim period reporting beginning in fiscal 2026 on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of our pending adoption of ASU 2023-07 on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires public entities to disclose consistent categories and greater disaggregation of information in the rate reconciliation and for income taxes paid. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is required to adopt this standard prospectively in fiscal year 2026 for the annual reporting period ending September 30, 2026. The Company is currently in the process of evaluating the impact of adoption on its Consolidated 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. |
ORGANIZATION AND PLAN OF OPER_2
ORGANIZATION AND PLAN OF OPERATIONS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF BUSINESS ACQUISITION OF TANGIBLE AND INTANGIBLE ASSETS AND LIABILITIES | The consideration transferred and preliminary allocation of Heisey’s tangible and intangible assets and liabilities, are as follows: SCHEDULE OF BUSINESS ACQUISITION OF TANGIBLE AND INTANGIBLE ASSETS AND LIABILITIES Consideration Transferred: Cash $ 393,291 Seller’s note 240,000 Financed amount 2,160,000 Total consideration transferred $ 2,793,291 Purchase Price Allocation: Inventory 300,000 Contract assets 667,259 Machinery and equipment 1,625,000 Contract liabilities (216,469 ) Accrued expenses (57,499 ) Goodwill 475,000 Total consideration transferred $ 2,793,291 |
SCHEDULE OF PRO FORMA FINANCIAL INFORMATION | SCHEDULE OF PRO FORMA FINANCIAL INFORMATION Unaudited for the three months ended December 31, 2022 Revenues $ 13,173,838 Net loss (6,440,203 ) |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Dec. 31, 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 FINANCIAL STATEMENTS INCLUDED WITHIN DISCONTINUED OPERATIONS | SCHEDULE OF FINANCIAL STATEMENTS INCLUDED WITHIN DISCONTINUED OPERATIONS 2023 2022 For the three months ended December 31, 2023 2022 Total net sales $ - $ 649,061 Cost of sales - 228,086 Operating, selling, general and administrative expenses - 1,295,572 Other (income)/expenses - 3,195 Income (loss) from discontinued operations - (877,792 ) Amortization of discounted royalties 13,282 4,427 Loss on sale of discontinued operations - (2,455,341 ) Adjustment of benefit obligation - 89,085 Income tax provision 2,790 - Discontinued operations, net of tax $ 10,492 $ (3,239,621 ) |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Revenue | |
SCHEDULE OF DISAGGREGATION OF REVENUE RECOGNITION | The following table illustrates the approximate disaggregation of the Company’s revenue based off timing of revenue recognition for the three months ended December 31, 2023 and 2022: SCHEDULE OF DISAGGREGATION OF REVENUE RECOGNITION For the three months ended December 31, 2023 December 31, 2022 Over time 52 % 51 % Point-in-time 48 % 49 % |
LOSS PER COMMON SHARE (Tables)
LOSS PER COMMON SHARE (Tables) | 3 Months Ended |
Dec. 31, 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 For the three months ended December 31, 2023 2022 Options 28,796 34,579 |
SCHEDULE OF LOSS PER SHARE BASIC AND DILUTED FOR CONTINUING OPERATION | For the three months ended December 31, 2023 and 2022, loss per share basic and diluted for continuing operations are calculated as follows: SCHEDULE OF LOSS PER SHARE BASIC AND DILUTED FOR CONTINUING OPERATION 2023 2022 For the three months December 31, 2023 2022 Loss from Continuing operations $ (1,314,395 ) $ (3,096,753 ) Less loss in noncontrolling interest (96,409 ) (59,163 ) Preferred stock dividends - - Net loss applicable to common shareholders (1,217,986 ) (3,037,590 ) Weighted Average Number of Shares-Basic & Diluted 1,047,624 761,571 Loss per share - Basic & Diluted - Continuing Operations $ (1.16 ) $ (3.99 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT INFORMATION | The following tables summarize the Company’s reportable segment information and corporate expenses: SCHEDULE OF SEGMENT INFORMATION Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Three months ended December 31, 2023 Three months ended December 31, 2022 Reportable Segments Reportable Segments Security Industrial Services Corporate Consolidated Security Industrial Services Corporate Consolidated Revenues $ 9,167,801 $ 7,710,365 $ - $ 16,878,166 $ 7,004,744 $ 4,965,498 $ - $ 11,970,242 Cost of revenues 4,650,854 5,144,913 - 9,795,767 3,601,054 3,326,573 - 6,927,627 Gross profit $ 4,516,947 $ 2,565,452 $ - $ 7,082,399 $ 3,403,690 $ 1,638,925 $ - $ 5,042,615 Operating expenses General, and administrative 4,327,628 1,529,263 746,774 6,603,665 2,749,429 1,188,865 986,709 4,925,003 Depreciation and amortization 128,152 240,149 - 368,301 331,155 167,521 32,154 530,830 Research and development 848,805 - - 848,805 1,538,218 - - 1,538,218 Operating (loss)/income $ (787,638 ) $ 796,040 $ (746,774 ) $ (738,372 ) $ (1,215,112 ) $ 282,539 $ (1,018,863 ) $ (1,951,436 ) Other income/(expense) $ (134,261 ) $ (108,144 ) $ (262,867 ) $ (505,272 ) $ (112,399 ) $ (31,560 ) $ (1,001,358 ) $ (1,145,317 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUE OF ASSETS | The Company’s fair value assets at December 31, 2023, and September 30, 2023, are as follows. SCHEDULE OF FAIR VALUE OF ASSETS Quoted Prices Significant Significant Balance Assets Investment in marketable securities (included in short-term investments) $ 13,307 $ - $ - $ 13,307 $ 13,307 $ - $ - $ 13,307 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Significant Balance Assets Investment in marketable securities (included in short-term investments) $ 13,663 $ - $ - $ 13,663 $ 13,663 $ - $ - $ 13,663 |
TRADE RECEIVABLES, NET (Tables)
TRADE RECEIVABLES, NET (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
SCHEDULE OF TRADE RECEIVABLES, NET | Trade receivables, net consist of the following: SCHEDULE OF TRADE RECEIVABLES, NET December 31, 2023 September 30, 2023 Trade receivables $ 10,141,443 $ 9,444,619 Allowance for credit losses (236,888 ) (234,924 ) Accounts receivables, net, total $ 9,904,555 $ 9,209,695 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses And Other Current Assets | |
SUMMARY OF PREPAID AND OTHER CURRENT ASSETS | Prepaid expenses and other current assets consist of the following: SUMMARY OF PREPAID AND OTHER CURRENT ASSETS December 31, 2023 September 30, 2023 Prepaid expenses $ 386,334 $ 521,310 Prepaid inventory 559,075 1,084,051 Deferred costs 36,002 25,941 Loan origination costs 54,400 - Prepaid income taxes - 168,555 VAT and GST tax receivable 311,487 298,502 Prepaid expenses and other current assets total $ 1,347,298 $ 2,098,359 |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY, NET | Inventory, net consisted of the following: SCHEDULE OF INVENTORY, NET December 31, 2023 September 30, 2023 Raw materials $ 857,117 $ 885,398 Work in progress 397,017 109,019 Finished goods 6,684,483 7,744,802 Inventory, net 7,938,617 8,739,219 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SUMMARY OF PROPERTY AND EQUIPMENT | Property and equipment are summarized as follows: SUMMARY OF PROPERTY AND EQUIPMENT December 31, 2023 September 30, 2023 Land $ 945,279 $ 945,279 Building and leasehold improvements 4,370,732 4,362,062 Furniture and office equipment 595,397 579,700 Computers and software 1,333,135 1,333,135 Machinery and equipment 12,744,304 12,488,639 Property and equipment, gross 19,988,847 19,708,815 Less: Accumulated depreciation (10,818,471 ) (10,490,114 ) Property and equipment, net $ 9,170,376 $ 9,218,701 |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF GOODWILL BY SEGMENT | Changes in the carrying amount of goodwill, by segment, are as follows: SCHEDULE OF GOODWILL BY SEGMENT Security Industrial Services Corporate Consolidated Balance at September 30, 2023 $ 530,475 $ 3,851,416 $ - $ 4,381,891 Balance at December 31, 2023 $ 530,475 $ 3,851,416 $ - $ 4,381,891 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF OTHER ASSETS | Other assets consisted of the following: SCHEDULE OF OTHER ASSETS December 31, 2023 September 30, 2023 Rental deposits $ 56,807 $ 198,641 Investment in Masterpiece VR 1,200,000 1,100,000 Other deposits 322,976 167,808 Demonstration equipment supplied to resellers 410,818 369,560 Other assets total $ 1,990,601 $ 1,836,009 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED EXPENSES | Accrued expenses consisted of the following: SCHEDULE OF ACCRUED EXPENSES December 31, 2023 September 30, 2023 Accrued expenses $ 477,094 $ 1,473,465 Accrued payroll 1,142,896 1,088,223 Accrued warranty 222,702 222,702 Accrued expenses total $ 1,842,692 $ 2,784,390 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Deferred Revenue | |
SCHEDULE OF DEFERRED REVENUE | The Company’s deferred revenue as of and for the three months ended December 31, 2023, and 2022, were as follows: SCHEDULE OF DEFERRED REVENUE For the three months ended December 31, 2023 December 31, 2022 Deferred revenue at beginning of period $ 2,311,334 $ 1,824,534 Net additions: Deferred software revenues 659,970 427,418 Recognized as revenue: Deferred software revenues 714,952 558,931 Deferred revenue at end of period 2,256,352 1,693,021 Less: current portion 1,562,107 1,097,740 Long-term deferred revenue at end of period $ 694,245 $ 595,281 |
CONTRACT ASSETS AND LIABILITI_2
CONTRACT ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Contract Assets And Liabilities | |
SCHEDULE OF CONTRACT ASSETS AND LIABILITIES | The following is a summary of the Company’s uncompleted contracts: SCHEDULE OF CONTRACT ASSETS AND LIABILITIES December 31, 2023 December 31, 2022 Costs incurred on uncompleted contracts $ 11,900,894 $ 2,779,408 Estimated gross profit 3,020,654 1,145,663 14,921,548 3,925,071 Applicable billings to date (14,216,138 ) (4,811,777 ) Net billings in excess of costs, Ending balance $ 705,410 $ (886,706 ) December 31, 2023 September 30, 2023 Included in the accompanying balance sheet under the following captions Contract assets, net Costs in excess, net $ 1,593,142 $ 1,680,071 Conditional retainage, net 100,993 59,130 Total contract assets $ 1,694,135 $ 1,739,201 Contract liabilities Billings in excess (988,725 ) (980,319 ) Total contract liabilities $ (988,725 ) $ (980,319 ) December 31, 2022 September 30, 2022 Included in the accompanying balance sheet under the following captions Contract assets, net Costs in excess, net $ 521,172 $ 781,819 Total contract assets, net $ 521,172 $ 781,819 Contract liabilities Billings in excess (1,407,878 ) (369,890 ) Total contract liabilities $ (1,407,878 ) $ (369,890 ) |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Dec. 31, 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 December 31, 2023, is set forth below: SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO OPERATING LEASE LIABILITIES Years ending September 30, Operating Leases 2024 624,469 2025 823,816 2026 621,892 2027 270,742 2028 & Thereafter 51,415 Undiscounted lease payments 2,392,334 Amount representing interest (236,775 ) Discounted lease payments $ 2,155,559 |
SCHEDULE OF LEASE COSTS | Lease costs for the three months ended December 31, 2023, and 2022 are set forth below: SCHEDULE OF LEASE COSTS 2023 2022 For the three months ended December 31, 2023 2022 Lease costs: Operating lease costs 193,432 261,433 Short-term lease costs 18,261 - Total lease cost $ 211,693 $ 261,433 |
LINES OF CREDIT AND LONG-TERM_2
LINES OF CREDIT AND LONG-TERM LIABILITIES (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LINES OF CREDIT AND LIABILITIES | The following table outlines the Company’s secured liabilities: SCHEDULE OF LINES OF CREDIT AND LIABILITIES December 31, September 30, Interest Rate Maturity 2023 2023 Fulton Bank - $ 360,000 SOFR plus 2.37 7.75 7.68 1/31/2025 89,125 108,700 Fulton Bank mortgage $ 2,476,000 SOFR plus 2.62 8.00 7.93 1/28/2040 2,163,687 2,180,115 Fulton Bank (HEISEY) - $ 1,200,000 SOFR plus 2.80 8.18 8.11 9/30/2043 1,194,480 1,200,000 Fulton Bank (HEISEY) - $ 2,160,000 SOFR plus 2.80 8.18 8.11 7/1/2030 2,063,927 2,122,565 Note payable - $ 5,755,000 750,000 5,000 5,000,000 0 8 6/30/2024 4,691,520 4,596,589 Note payable - $ 9,205,000 1,200,000 5,000 8,000,000 28,572 700,400 0 8 2/22/2025 11,475,435 11,243,233 Note Payable - $ 240,000 6 7/1/2024 240,000 240,000 Term Loan Agreement with NIL Funding Corporation (“NIL”) - $ 5,600,000 11.50 12/31/2024 - 1,979,743 Paycheck Protection Program loan - $ 121,400 1 5/5/2025 80,994 91,114 Software License Agreement - $ 1,125,000 N/A 6/3/2024 450,000 675,000 HDFC Bank Auto Loan - $ 28,331 65,179 784.89 8.70 6/5/2027 28,331 - Total secured liabilities $ 22,477,499 $ 24,437,059 Less: Current maturities (15,717,081 ) (14,507,711 ) Less: Unamortized original issue discount - - Secured liabilities, Long Term $ 6,760,418 $ 9,929,348 |
SCHEDULE OF BUSINESS ACQUISITIO
SCHEDULE OF BUSINESS ACQUISITION OF TANGIBLE AND INTANGIBLE ASSETS AND LIABILITIES (Details) - USD ($) | 3 Months Ended | ||
Jul. 01, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Goodwill | $ 4,381,891 | $ 4,381,891 | |
Heisey Mechanical Ltd [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash | $ 2,400,000 | 393,291 | |
Seller's note | 240,000 | ||
Financed amount | 2,160,000 | ||
Total consideration transferred | 2,793,291 | ||
Inventory | 300,000 | ||
Contract assets | 667,259 | ||
Machinery and equipment | 1,625,000 | ||
Contract liabilities | (216,469) | ||
Accrued expenses | (57,499) | ||
Goodwill | 475,000 | ||
Total consideration transferred | $ 2,793,291 |
SCHEDULE OF PRO FORMA FINANCIAL
SCHEDULE OF PRO FORMA FINANCIAL INFORMATION (Details) | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenues | $ 13,173,838 |
Net loss | $ (6,440,203) |
ORGANIZATION AND PLAN OF OPER_3
ORGANIZATION AND PLAN OF OPERATIONS (Details Narrative) | 3 Months Ended | ||||||
Aug. 30, 2023 USD ($) | Jul. 01, 2023 USD ($) ft² | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Feb. 12, 2024 USD ($) shares | Sep. 30, 2023 USD ($) | Jul. 29, 2022 $ / shares | |
Net loss | $ 9,196,875 | $ 13,020,958 | |||||
Loss from Continuing operations | 1,314,395 | ||||||
Liabilities, current | 28,696,123 | $ 27,344,118 | |||||
Working capital | 2,284,787 | ||||||
Cash | 2,835,216 | $ 5,329,910 | |||||
Available fund | $ 1,642,676 | ||||||
Reverse stock split | 35:1 reverse stock split | ||||||
Subsequent Event [Member] | |||||||
Share repurchase program | shares | 71,951 | ||||||
Share repurchase program, value | $ 69,705 | ||||||
Preferred Stock [Member] | |||||||
Minimum share bid price | $ / shares | $ 1 | ||||||
Preferred Stock [Member] | Minimum [Member] | |||||||
Minimum share bid price | $ / shares | $ 1 | ||||||
Heisey Mechanical Ltd [Member] | |||||||
Outstanding adjustments | $ 2,400,000 | $ 393,291 | |||||
Adjustments for contract assets and liabilities | $ 393,291 | ||||||
Real estate purchased | $ 1,500,000 | ||||||
Area of Land | ft² | 33,000 | ||||||
Depreciation expense from acquired fixed assets | 63,900 | ||||||
Interest expense on debt used in acquisition | $ 33,400 | ||||||
Heisey Mechanical Ltd [Member] | Fulton Bank [Member] | |||||||
Interest expense | $ 1,200,000 | ||||||
Heisey Mechanical Ltd [Member] | Fulton Bank [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Percentage of financing rate | 2.80% | ||||||
Debt maturity date | Sep. 30, 2043 |
SUMMARY OF LOSS ON SALE (Detail
SUMMARY OF LOSS ON SALE (Details) | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Purchase Price | $ 96,095 |
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 FINANCIAL STATEMENT
SCHEDULE OF FINANCIAL STATEMENTS INCLUDED WITHIN DISCONTINUED OPERATIONS (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Total net sales | $ 649,061 | |
Cost of sales | 228,086 | |
Operating, selling, general and administrative expenses | 1,295,572 | |
Other (income)/expenses | 3,195 | |
Income (loss) from discontinued operations | (877,792) | |
Amortization of discounted royalties | 13,282 | 4,427 |
Loss on sale of discontinued operations | (2,455,341) | |
Adjustment of benefit obligation | 89,085 | |
Income tax provision | 2,790 | |
Discontinued operations, net of tax | $ 10,492 | $ (3,239,621) |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Nov. 22, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
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 | ||
Cemtrex XR Inc [Member] | Accounting Standards Update 2020-08 [Member] | |||
Royalties paid | $ 13,282 | $ 4,427 |
SCHEDULE OF DISAGGREGATION OF R
SCHEDULE OF DISAGGREGATION OF REVENUE RECOGNITION (Details) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||
Over time | 52% | 51% |
Point-in-time | 48% | 49% |
SCHEDULE OF COMPUTATION OF DILU
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE EFFECT (Details) - shares | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options | 28,796 | 34,579 |
SCHEDULE OF LOSS PER SHARE BASI
SCHEDULE OF LOSS PER SHARE BASIC AND DILUTED FOR CONTINUING OPERATION (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Loss from Continuing operations | $ (1,314,395) | $ (3,096,753) |
Less loss in noncontrolling interest | (96,409) | (59,163) |
Preferred stock dividends | ||
Net loss applicable to common shareholders | $ (1,217,986) | $ (3,037,590) |
Weighted Average Number of Shares Outstanding, Diluted | 1,047,624 | 761,571 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ (1.16) | $ (3.99) |
SCHEDULE OF SEGMENT INFORMATION
SCHEDULE OF SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 16,878,166 | $ 11,970,242 |
Cost of revenues | 9,795,767 | 6,927,627 |
Gross profit | 7,082,399 | 5,042,615 |
Operating expenses | ||
General, and administrative | 6,603,665 | 4,925,003 |
Depreciation and amortization | 368,301 | 530,830 |
Research and development | 848,805 | 1,538,218 |
Operating (loss)/income | (738,372) | (1,951,436) |
Other income/(expense) | (505,272) | (1,145,317) |
Security [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 9,167,801 | 7,004,744 |
Cost of revenues | 4,650,854 | 3,601,054 |
Gross profit | 4,516,947 | 3,403,690 |
Operating expenses | ||
General, and administrative | 4,327,628 | 2,749,429 |
Depreciation and amortization | 128,152 | 331,155 |
Research and development | 848,805 | 1,538,218 |
Operating (loss)/income | (787,638) | (1,215,112) |
Other income/(expense) | (134,261) | (112,399) |
Industrial Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 7,710,365 | 4,965,498 |
Cost of revenues | 5,144,913 | 3,326,573 |
Gross profit | 2,565,452 | 1,638,925 |
Operating expenses | ||
General, and administrative | 1,529,263 | 1,188,865 |
Depreciation and amortization | 240,149 | 167,521 |
Research and development | ||
Operating (loss)/income | 796,040 | 282,539 |
Other income/(expense) | (108,144) | (31,560) |
Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | ||
Cost of revenues | ||
Gross profit | ||
Operating expenses | ||
General, and administrative | 746,774 | 986,709 |
Depreciation and amortization | 32,154 | |
Research and development | ||
Operating (loss)/income | (746,774) | (1,018,863) |
Other income/(expense) | $ (262,867) | $ (1,001,358) |
RESTRICTED CASH (Details Narrat
RESTRICTED CASH (Details Narrative) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $ 1,181,516 | $ 1,019,652 |
SCHEDULE OF FAIR VALUE OF ASSET
SCHEDULE OF FAIR VALUE OF ASSETS (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | $ 13,307 | $ 13,663 |
Marketable Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 13,307 | 13,663 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 13,307 | 13,663 |
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 | 13,307 | 13,663 |
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 ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Receivables [Abstract] | ||
Trade receivables | $ 10,141,443 | $ 9,444,619 |
Allowance for credit losses | (236,888) | (234,924) |
Accounts receivables, net, total | $ 9,904,555 | $ 9,209,695 |
SUMMARY OF PREPAID AND OTHER CU
SUMMARY OF PREPAID AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Prepaid Expenses And Other Current Assets | ||
Prepaid expenses | $ 386,334 | $ 521,310 |
Prepaid inventory | 559,075 | 1,084,051 |
Deferred costs | 36,002 | 25,941 |
Loan origination costs | 54,400 | |
Prepaid income taxes | 168,555 | |
VAT and GST tax receivable | 311,487 | 298,502 |
Prepaid expenses and other current assets total | $ 1,347,298 | $ 2,098,359 |
SCHEDULE OF INVENTORY, NET (Det
SCHEDULE OF INVENTORY, NET (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 857,117 | $ 885,398 |
Work in progress | 397,017 | 109,019 |
Finished goods | 6,684,483 | 7,744,802 |
Inventory, net | $ 7,938,617 | $ 8,739,219 |
INVENTORY, NET (Details Narrati
INVENTORY, NET (Details Narrative) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Inventory Adjustments | $ 502,528 | $ 618,021 |
SUMMARY OF PROPERTY AND EQUIPME
SUMMARY OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 19,988,847 | $ 19,708,815 |
Less: Accumulated depreciation | (10,818,471) | (10,490,114) |
Property and equipment, net | 9,170,376 | 9,218,701 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 945,279 | 945,279 |
Building and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,370,732 | 4,362,062 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 595,397 | 579,700 |
Computers And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,333,135 | 1,333,135 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 12,744,304 | $ 12,488,639 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Depreciation, Depletion and Amortization | $ 368,301 | $ 530,830 |
General and Administrative Expense [Member] | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Depreciation, Depletion and Amortization | $ 368,301 | $ 530,830 |
SCHEDULE OF GOODWILL BY SEGMENT
SCHEDULE OF GOODWILL BY SEGMENT (Details) | Dec. 31, 2023 USD ($) |
Indefinite-Lived Intangible Assets [Line Items] | |
Balance beginning | $ 4,381,891 |
Balance ending | 4,381,891 |
Security [Member] | |
Indefinite-Lived Intangible Assets [Line Items] | |
Balance beginning | 530,475 |
Balance ending | 530,475 |
Industrial Services [Member] | |
Indefinite-Lived Intangible Assets [Line Items] | |
Balance beginning | 3,851,416 |
Balance ending | 3,851,416 |
Corporate Segment [Member] | |
Indefinite-Lived Intangible Assets [Line Items] | |
Balance beginning | |
Balance ending |
GOODWILL (Details Narrative)
GOODWILL (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Sep. 30, 2023 | |
Security [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated impairment losses | $ 3,316,000 | $ 3,316,000 |
SCHEDULE OF OTHER ASSETS (Detai
SCHEDULE OF OTHER ASSETS (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Rental deposits | $ 56,807 | $ 198,641 |
Investment in Masterpiece VR | 1,200,000 | 1,100,000 |
Other deposits | 322,976 | 167,808 |
Demonstration equipment supplied to resellers | 410,818 | 369,560 |
Other assets total | $ 1,990,601 | $ 1,836,009 |
OTHER ASSETS (Details Narrative
OTHER ASSETS (Details Narrative) - USD ($) | 3 Months Ended | ||||
Dec. 31, 2023 | Oct. 05, 2023 | Jul. 18, 2023 | Jan. 19, 2022 | Nov. 13, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Investment | $ 100,000 | $ 100,000 | $ 500,000 | $ 500,000 | |
Impairment expense | $ 0 |
SCHEDULE OF ACCRUED EXPENSES (D
SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 477,094 | $ 1,473,465 |
Accrued payroll | 1,142,896 | 1,088,223 |
Accrued warranty | 222,702 | 222,702 |
Accrued expenses total | $ 1,842,692 | $ 2,784,390 |
SCHEDULE OF DEFERRED REVENUE (D
SCHEDULE OF DEFERRED REVENUE (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Deferred Revenue | |||
Deferred revenue at beginning of period | $ 2,311,334 | $ 1,824,534 | |
Deferred software revenues, Additions | 659,970 | 427,418 | |
Deferred revenues revenues, Recognized | 714,952 | 558,931 | |
Deferred revenue at end of period | 2,256,352 | 1,693,021 | |
Less: current portion | 1,562,107 | 1,097,740 | $ 1,583,406 |
Long-term deferred revenue at end of period | $ 694,245 | $ 595,281 | $ 727,928 |
DEFERRED REVENUE (Details Narra
DEFERRED REVENUE (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Revenue | ||
Deferred revenue | $ 608,843 | $ 506,185 |
SCHEDULE OF CONTRACT ASSETS AND
SCHEDULE OF CONTRACT ASSETS AND LIABILITIES (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Contract Assets And Liabilities | ||||
Costs incurred on uncompleted contracts | $ 11,900,894 | $ 2,779,408 | ||
Estimated gross profit | 3,020,654 | 1,145,663 | ||
Costs incurred on uncompleted contracts estimated net | 14,921,548 | 3,925,071 | ||
Applicable billings to date | (14,216,138) | (4,811,777) | ||
netNet billings in excess of costs, Ending balance | 705,410 | (886,706) | ||
Costs in excess, net | 1,593,142 | 521,172 | $ 1,680,071 | $ 781,819 |
Conditional retainage, net | 100,993 | 59,130 | ||
Total contract assets, net | 1,694,135 | 521,172 | 1,739,201 | 781,819 |
Billings in excess | (988,725) | (1,407,878) | (980,319) | (369,890) |
Total contract liabilities | $ (988,725) | $ (1,407,878) | $ (980,319) | $ (369,890) |
CONTRACT ASSETS AND LIABILITI_3
CONTRACT ASSETS AND LIABILITIES (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract Assets And Liabilities | ||
Revenue recognized | $ 791,161 | $ 352,847 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | |||||
Nov. 22, 2022 | Jul. 31, 2022 | Aug. 31, 2019 | Dec. 31, 2023 | Oct. 05, 2023 | Sep. 30, 2023 | |
Related Party Transaction [Line Items] | ||||||
Related party, Interest rate | 3% | |||||
Trade receivables | $ 9,904,555 | $ 9,209,695 | ||||
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 the Company | |||||
Related Party [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Trade receivables | 638,485 | |||||
Other receivables, current | 133,778 | |||||
Accounts payable | 64,919 | |||||
Trade receivable, related party | 1,496,692 | 1,143,342 | ||||
Cemtrex Technologies Pvt Ltd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Other receivables, current | 504,707 | |||||
Cemtrex XR Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from Royalties Received | 708,174 | |||||
Trade receivable, related party | 220,000 | |||||
Asset Purchase Agreement [Member] | Ducon Technologies Inc [Member] | Griffin Filters LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties, current | 3,811 | 3,806 | ||||
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 instrument maturity date | Jul. 31, 2024 | |||||
Due from related parties, current | $ 638,207 | $ 637,208 | ||||
Asset Purchase Agreement [Member] | Ducon to Cemtrix Technology [Member] | Related Party [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties, current | $ 761,585 | |||||
Asset Purchase Agreements [Member] | Saagar Govil [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, description | 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, Mr. Govil shall be obligated to pay the difference between $820,000 and the royalties paid. The first Royalty payment is due by March 30, 2024. Cemtrex Advanced Technologies, Inc. was purchased for $10,000 in cash, 5% royalty of all revenues on the Business to be paid 90 days after the end of each calendar year for the next 5 years, and $1,600,000 in SAFE (common equity) at any subsequent fundraising or exit above $5,000,000 with a $10,000,000 cap. Subsequent to the sale of Cemtrex Advanced Technologies, Inc. the business has ceased operations. | |||||
Purchases from related party | $ 890,000 | |||||
Cash from related party | $ 75,000 | |||||
Royalty percentage | 5% |
SCHEDULE OF RECONCILIATION OF U
SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO OPERATING LEASE LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Leases | ||
2024 | $ 624,469 | |
2025 | 823,816 | |
2026 | 621,892 | |
2027 | 270,742 | |
2028 & Thereafter | 51,415 | |
Undiscounted lease payments | 2,392,334 | |
Amount representing interest | (236,775) | |
Discounted lease payments | $ 2,155,559 | $ 2,348,689 |
SCHEDULE OF LEASE COSTS (Detail
SCHEDULE OF LEASE COSTS (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases | ||
Operating lease costs | $ 193,432 | $ 261,433 |
Short-term lease costs | 18,261 | |
Total lease cost | $ 211,693 | $ 261,433 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 3 Months Ended | ||
Dec. 31, 2023 USD ($) ft² | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Lessee, Operating Lease, Term of Contract | 2 years 9 months | 3 years | |
Operating Lease, Liability | $ 2,155,559 | $ 2,348,689 | |
Operating Lease, Liability, Current | 728,875 | $ 741,487 | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.60% | ||
Increase (Decrease) in Operating Lease Liability | $ 193,130 | $ 132,963 | |
Brooklyn [Member] | |||
Area of Land | ft² | 100 | ||
Payments for rent | $ 600 | ||
Operating Lease, Expense | $ 1,800 | ||
Clovis [Member] | |||
Area of Land | ft² | 1,037 | ||
Payments for rent | $ 5,487 | ||
Operating Lease, Expense | $ 16,461 |
SCHEDULE OF LINES OF CREDIT AND
SCHEDULE OF LINES OF CREDIT AND LIABILITIES (Details) (Parenthetical) - USD ($) | 3 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Oct. 05, 2023 | Sep. 30, 2023 | |
Line of Credit Facility [Line Items] | ||||
Interest rate | 3% | |||
Notes payable - discount | $ 441,734 | |||
Notes payable - Unamortized discount | ||||
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 | 0 | ||
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 | $ 0 | $ 0 | ||
Common stock, shares | 28,572 | |||
Common stock, value | $ 700,400 | |||
Notes Payable [Member] | Heisey Mechanical Ltd [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 6% | |||
Notes payable | $ 240,000 | |||
Term Loan Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 11.50% | |||
Loans payable | $ 5,600,000 | |||
PPP 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 | |||
HDFC Bank Auto Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 8.70% | |||
Loans payable | $ 784.89 | |||
Notes payable | 28,331 | |||
Monthly payments | 65,179 | |||
Fulton Bank One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loans payable to bank | $ 360,000 | |||
Interest rate basis spread | 2.37% | |||
Interest rate | 7.75% | 7.68% | ||
Fulton Bank Two [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loans payable to bank | $ 2,476,000 | |||
Interest rate basis spread | 2.62% | |||
Interest rate | 8% | 7.93% | ||
Fulton Bank Mortgage Payable HEISEY [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loans payable to bank | $ 1,200,000 | |||
Interest rate basis spread | 2.80% | |||
Interest rate | 8.18% | 8.11% | ||
Fulton Bank Promissory Payable HEISEY [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loans payable to bank | $ 2,160,000 | |||
Interest rate basis spread | 2.80% | |||
Interest rate | 8.18% | 8.11% |
SCHEDULE OF LINES OF CREDIT A_2
SCHEDULE OF LINES OF CREDIT AND LIABILITIES (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Line of Credit Facility [Line Items] | ||
Total secured liabilities | $ 22,477,499 | $ 24,437,059 |
Current maturities | (15,717,081) | (14,507,711) |
Unamortized original issue discount | ||
Secured liabilities, Long Term | $ 6,760,418 | 9,929,348 |
Fulton Bank One [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Jan. 31, 2025 | |
Total secured liabilities | $ 89,125 | 108,700 |
Fulton Bank Two [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Jan. 28, 2040 | |
Total secured liabilities | $ 2,163,687 | 2,180,115 |
Fulton Bank Mortgage Payable HEISEY [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Sep. 30, 2043 | |
Total secured liabilities | $ 1,194,480 | 1,200,000 |
Fulton Bank Promissory Payable HEISEY [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Jul. 01, 2030 | |
Total secured liabilities | $ 2,063,927 | 2,122,565 |
Notes Payable One [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Jun. 30, 2024 | |
Total secured liabilities | $ 4,691,520 | 4,596,589 |
Notes Payable Two [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Feb. 22, 2025 | |
Total secured liabilities | $ 11,475,435 | 11,243,233 |
Notes Payable [Member] | Heisey Mechanical Ltd [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Jul. 01, 2024 | |
Total secured liabilities | $ 240,000 | 240,000 |
Term Loan Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Dec. 31, 2024 | |
Total secured liabilities | 1,979,743 | |
PPP Loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | May 05, 2025 | |
Total secured liabilities | $ 80,994 | 91,114 |
Software License Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Jun. 03, 2024 | |
Total secured liabilities | $ 450,000 | 675,000 |
HDFC Bank Auto Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Jun. 05, 2027 | |
Total secured liabilities | $ 28,331 |
LINES OF CREDIT AND LONG-TERM_3
LINES OF CREDIT AND LONG-TERM LIABILITIES (Details Narrative) - USD ($) | Dec. 31, 2023 | Oct. 05, 2023 | Sep. 30, 2023 | Aug. 31, 2023 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revolving line of credit | $ 1,642,676 | $ 5,000,000 | ||
Interest rate | 3% | |||
Revolving lline of credit | 3,357,324 | |||
Loan origination costs | $ 54,400 | |||
Standstill Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revolving lline of credit | $ 5,000,000 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 2,458,053 | 2,343,016 |
Preferred stock, shares outstanding | 2,393,953 | 2,278,916 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 1,055,636 | 1,045,783 |
Common stock, shares outstanding | 1,055,636 | 1,045,783 |
Common stock shares, issued for service | 9,853 | |
Common stock value, issued for service | $ 40,000 | |
Series 1 Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 2,408,053 | 2,293,016 |
Preferred stock, shares outstanding | 2,343,953 | 2,228,916 |
Preferred stock dividends shares | 115,037 | |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 7,557 | $ 39,842 |
Unrecognized compensation cost | $ 55,748 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - 3 months ended Dec. 31, 2023 | USD ($) ft² | INR (₨) ft² | GBP (£) ft² |
Industrial Services Segment [Member] | Emigsville [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of land | 15,500 | 15,500 | 15,500 |
Payments for rent | $ | $ 4,555 | ||
Lease expiration date | 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 |
Payments for rent | $ 6,453 | ₨ 456,972 | |
Lease expiration date | 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 |
Payments for rent | $ | $ 28,719 | ||
Lease expiration date | 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 |
Payments for rent | $ 7,329 | £ 5,771 | |
Lease expiration date | Mar. 24, 2031 | Mar. 24, 2031 | Mar. 24, 2031 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] | Feb. 12, 2024 USD ($) shares |
Subsequent Event [Line Items] | |
Share repurchase program | shares | 71,951 |
Share repurchase program, value | $ | $ 69,705 |