Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Aug. 19, 2016 | Dec. 11, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | CEMTREX INC | ||
Entity Central Index Key | 1,435,064 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | CETX | ||
Entity Common Stock, Shares Outstanding | 9,410,947 | ||
Document Type | 10-K | ||
Amendment Flag | true | ||
Document Period End Date | Sep. 30, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 8,364,305 | ||
Amendment Description | Cemtrex, Inc. (“Cemtrex” or the “Company”) is filing this Amendment No. 1 on Form 10-K/A (this “Amendment No. 1”) to amend our Annual Report on Form 10-K for the year ended September 30, 2015, originally filed with the Securities and Exchange Commission (the “SEC”) on December 21, 2015 (the “Original Filing”), in response to comments received from the Staff of the SEC in their letter dated May 9, 2016.In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, this Amendment also includes currently dated certifications from the Registrants’ Chief Executive Officer and Chief Financial Officer as required by Section 302 of the Sarbanes-Oxley Act of 2002. This Amendment speaks only to the original filing date of the Original Filing and, except for those items discussed in this Explanatory Note, does not change any of the other disclosure contained in the Original Filing. This Amendment, together with the Original Filing, constitutes the Registrants’ Annual Report on Form 10-K for the fiscal year ended September 30, 2015. This Amendment does not reflect events after the filing of the Original Filing or modify or update those disclosures affected by subsequent events. Therefore, you should read this Amendment together with the other reports of the Registrants that update and supersede the information contained in this Amendment |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets | ||
Cash and equivalents | $ 1,486,737 | $ 146,095 |
Short-term investments | 0 | 559,815 |
Accounts receivable, net | 4,771,044 | 4,038,340 |
Inventory, net | 6,369,516 | 6,270,327 |
Prepaid expenses and other current assets | 893,792 | 531,262 |
Total current assets | 13,521,089 | 11,545,839 |
Property and equipment, net | 8,142,523 | 7,399,096 |
Goodwill | 845,000 | 845,000 |
Other assets | 35,630 | 52,428 |
Total Assets | 22,544,242 | 19,842,363 |
Current liabilities | ||
Accounts payable | 4,386,578 | 2,721,705 |
Accrued expenses | 309,130 | 440,436 |
Accrued income taxes | 73,746 | 62,032 |
Short-term note payable to bank | 2,129,711 | 2,355,264 |
Convertible notes payable | 1,274,000 | 0 |
Current portion of long-term liabilities | 654,020 | 689,769 |
Total current liabilities | 8,827,185 | 6,269,206 |
Long-term liabilities | ||
Loans payable to bank | 2,383,815 | 3,152,935 |
Mortgage payable | 4,088,618 | 4,906,922 |
Notes payable - related party | 119,055 | 1,869,791 |
Total liabilities | 15,418,673 | 16,198,854 |
Commitments and contingencies | ||
Shareholders' equity | ||
Preferred stock series A, $0.001 par value, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding, respectively | 1,000 | 1,000 |
Common stock, $0.001 par value, 20,000,000 shares authorized, 7,158,087 shares issued and outstanding at September 30, 2015 and 6,766,587 shares issued and outstanding at September 30, 2014 | 7,158 | 6,767 |
Additional paid-in capital | 1,020,444 | 199,562 |
Retained earnings | 6,430,855 | 3,592,739 |
Accumulated other comprehensive loss | (333,888) | (156,559) |
Total shareholders' equity | 7,125,569 | 3,643,509 |
Total liabilities and shareholders' equity | $ 22,544,242 | $ 19,842,363 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Sep. 30, 2015 | Sep. 30, 2014 |
Preferred Stock Series A, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock Series A, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock Series A, shares issued | 1,000,000 | 1,000,000 |
Preferred Stock Series A, shares outstanding | 1,000,000 | 1,000,000 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 20,000,000 | 20,000,000 |
Common Stock, shares issued | 7,158,087 | 6,766,587 |
Common Stock, shares outstanding | 7,158,087 | 6,766,587 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | $ 56,887,389 | $ 47,653,114 |
Cost of goods sold | ||
Cost of revenues | 40,564,819 | 32,057,846 |
Gross profit | 16,322,570 | 15,595,268 |
Operating expenses | ||
General and administrative expenses | 13,821,546 | 12,582,072 |
Total operating expenses | 13,821,546 | 12,582,072 |
Operating income | 2,501,024 | 3,013,196 |
Other income (expense) | ||
Other Income | 834,290 | 153,516 |
Interest Expense | (496,281) | (436,864) |
Total other income (expense) | 338,009 | (283,348) |
Net income before income taxes | 2,839,033 | 2,729,848 |
Provision for income taxes | 917 | 60,962 |
Net income | 2,838,116 | 2,668,886 |
Other comprehensive income/(loss) | ||
Foreign currency translation loss | (177,329) | (156,559) |
Comprehensive income | $ 2,660,787 | $ 2,512,327 |
Income Per Share-Basic (in dollars per share) | $ 0.41 | $ 0.39 |
Income Per Share-Diluted (in dollars per share) | $ 0.40 | $ 0.39 |
Weighted Average Number of Shares-Basic (in shares) | 6,843,666 | 6,766,587 |
Weighted Average Number of Shares-Diluted (in shares) | 7,058,562 | 6,766,587 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Series A Preferred Stock [Member] |
Balance at Sep. 30, 2013 | $ 1,131,182 | $ 6,767 | $ 199,562 | $ 923,853 | $ 0 | $ 1,000 |
Balance (in shares) at Sep. 30, 2013 | 6,766,587 | 1,000,000 | ||||
Foreign currency translations | (156,559) | (156,559) | ||||
Net income | 2,668,886 | 2,668,886 | ||||
Balance at Sep. 30, 2014 | 3,643,509 | $ 6,767 | 199,562 | 3,592,739 | (156,559) | $ 1,000 |
Balance (in shares) at Sep. 30, 2014 | 6,766,587 | 1,000,000 | ||||
Foreign currency translations | (177,329) | (177,329) | ||||
Stock issued for employee warrants | 44,267 | $ 16 | 44,251 | |||
Stock issued for employee warrants (in shares) | 16,264 | |||||
Stock issued for convertible debt | 764,016 | $ 371 | 763,645 | |||
Stock issued for convertible debt (in shares) | 371,069 | |||||
Stock issued for services | 12,990 | $ 4 | 12,986 | |||
Stock issued for services (in shares) | 4,167 | |||||
Net income | 2,838,116 | 2,838,116 | ||||
Balance at Sep. 30, 2015 | $ 7,125,569 | $ 7,158 | $ 1,020,444 | $ 6,430,855 | $ (333,888) | $ 1,000 |
Balance (in shares) at Sep. 30, 2015 | 7,158,087 | 1,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 2,838,116 | $ 2,668,886 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 772,434 | 494,654 |
Stock-based compensation | 57,257 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (732,704) | (3,397,076) |
Due from related party | 0 | 1,560,522 |
Inventory | (99,189) | (6,110,979) |
Prepaid expenses and other assets | (362,530) | (99,131) |
Others | 16,798 | (48,203) |
Accounts payable | 1,664,873 | 2,150,220 |
Accrued expenses | (131,306) | 376,811 |
Income taxes payable | 11,714 | 62,032 |
Net cash provided by (used by) operating activities | 4,035,463 | (2,342,264) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (1,515,861) | (2,698,895) |
Purchase of short-term investment | 0 | (559,815) |
Redemption of short-term investments | 559,815 | 0 |
Investment in subsidiary | 0 | (6,030,532) |
Net cash used by investing activities | (956,046) | (9,289,242) |
Cash Flows from Financing Activities | ||
Proceeds from affiliated Loan | 0 | 605,748 |
Payments on affiliated loan | (1,750,736) | 0 |
Proceeds from bank loans | 0 | 11,104,890 |
Payments on bank loans | (2,026,055) | 0 |
Proceeds from convertible notes | 2,038,016 | 0 |
Net cash provided by (used by) financing activities | (1,738,775) | 11,710,638 |
Net increase (decrease) in cash | 1,340,642 | 79,132 |
Cash beginning of period | 146,095 | 66,963 |
Cash end of period | 1,486,737 | 146,095 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 312,286 | 333,316 |
Cash paid during the period for income taxes | $ 5,032 | $ 27,873 |
ORGANIZATION AND PLAN OF OPERAT
ORGANIZATION AND PLAN OF OPERATIONS | 12 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature Of Operations [Text Block] | NOTE 1 ORGANIZATION AND PLAN OF OPERATIONS Cemtrex Inc. ("Cemtrex" or the "Company") is a leading diversified technology company offering a range of products, systems, and solutions in a wide variety of industries around the world to meet today’s industrial and manufacturing challenges. Cemtrex, through its wholly owned subsidiaries provides electronic manufacturing services of custom engineered advanced electronics system assemblies, emission monitors & instruments for industrial processes, and environmental control & air filtration systems for industries & utilities. Cemtrex, through its Electronics Manufacturing Services (EMS) group, provides end to end electronic manufacturing services, which includes product design and sustaining engineering services, printed circuit board assembly and production, cabling and wire harnessing, systems integration, comprehensive testing services and completely assembled electronic products. Cemtrex, through its Environmental Products and Systems (EPS) group, sells a complete line of air filtration and environmental control products to a wide variety of industrial and manufacturing industries worldwide. The Company also manufactures sells, and services monitoring instruments, software and systems for measurement of emissions of Greenhouse gases, hazardous gases, particulate and other regulated pollutants used in emissions trading globally as well as for industrial processes. The Company also markets monitoring and analysis equipment for gas and liquid measurement for various downstream oil & gas applications as well as various industrial process applications. Cemtrex, Inc. was incorporated as Diversified American Holding, Inc. on April 27, 1998 On October 31, 2013 ROB Group |
BASIS OF PRESENTATION AND CRITI
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES The Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application. Critical accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition and results and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Company’s significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles. The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company elected September 30 as its fiscal year-end date. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s). Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were: i. Allowance for doubtful accounts : Management’s estimate of the allowance for doubtful accounts is based on historical sales, historical loss levels, and an analysis of the collectability of individual accounts; and general economic conditions that may affect a client’s ability to pay. The Company evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole; ii. Inventory Obsolescence and Markdowns : The Company’s estimate of potentially excess and slow-moving inventories is based on evaluation of inventory levels and aging, review of inventory turns and historical sales experiences. The Company’s estimate of reserve for inventory shrinkage is based on the historical results of physical inventory cycle counts; iii. Fair value of long-lived assets : Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: i. significant under-performance or losses of assets relative to expected historical or projected future operating results; ii. significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; iii. significant negative industry or economic trends; iv. increased competitive pressures; v. a significant decline in the Company’s stock price for a sustained period of time; and vi. regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. iv. Valuation allowance for deferred tax assets: Management assumes that the realization of the Company’s net deferred tax assets resulting from its net operating loss (“NOL”) carryforwards for Federal income tax purposes that may be offset against future taxable income was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry- forwards are offset by a full valuation allowance. Management made this assumption based on (a) the Company has incurred recurring losses, (b) general economic conditions, and (c) its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors. These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. The Company applies the guidance of Topic 810 “Consolidation” of the FASB Accounting Standards Codification to determine whether and how to consolidate another entity. Pursuant to ASC Paragraph 810-10-15-10 all majority-owned subsidiariesall entities in which a parent has a controlling financial interestshall be consolidated except (1) when control does not rest with the parent, the majority owner; (2) if the parent is a broker-dealer within the scope of Topic 940 and control is likely to be temporary; (3) consolidation by an investment company within the scope of Topic 946 of a non-investment-company investee. Pursuant to ASC Paragraph 810-10-15-8 the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree. The Company consolidates all less-than-majority-owned subsidiaries, if any, in which the parent’s power to control exists. Name of consolidated State or other jurisdiction of Date of incorporation or Attributable subsidiary or entity incorporation or organization formation (date of acquisition, if applicable) interest Griffin Filters, LLC New York September 6,2005 (April 30,2007) 100 % ROB Cemtrex GmbH Germany August 15, 2013 (October 31, 2013) 100 % Cemtrex Ltd Hong Kong September 4, 2013 100 % ROB Systems, Srl. Romania November 1, 2013 100 % Cemtrex India (Pvt) Ltd. India April 10, 2009 100 % The consolidated financial statements include all accounts of the Company and its wholly-owned subsidiary as of the reporting period end dates and for the reporting periods then ended. All inter-company balances and transactions have been eliminated. The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 - Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 - Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses and accounts payable, approximate their fair values because of the short maturity of these instruments. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. Fair Value of Non-Financial Assets or Liabilities Measured on a Recurring Basis The Company’s non-financial assets include inventories. The Company identifies potentially excess and slow-moving inventories by evaluating turn rates, inventory levels and other factors. Excess quantities are identified through evaluation of inventory aging, review of inventory turns and historical sales experiences. The Company provides lower of cost or market reserves for such identified excess and slow- moving inventories. The Company establishes a reserve for inventory shrinkage, if any, based on the historical results of physical inventory cycle counts. The Company has adopted paragraph 360-10-35-17 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. When long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. The key assumptions used in management’s estimates of projected cash flow deal largely with forecasts of sales levels, gross margins, and operating costs of the manufacturing facilities. These forecasts are typically based on historical trends and take into account recent developments as well as management’s plans and intentions. Any difficulty in manufacturing or sourcing raw materials on a cost effective basis would significantly impact the projected future cash flows of the Company’s manufacturing facilities and potentially lead to an impairment charge for long-lived assets. Other factors, such as increased competition or a decrease in the desirability of the Company’s products, could lead to lower projected sales levels, which would adversely impact cash flows. A significant change in cash flows in the future could result in an impairment of long lived assets. The impairment charges, if any, is included in operating expenses in the accompanying statements of operations. The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The Company’s short-term investments consist of certificates of deposit with original maturities of greater than three months. They are bought and held principally for the purpose of selling them in the near-term and are classified as trading securities. Trading securities are recorded at fair value on the consolidated balance sheets in current assets, with the change in fair value during the year recorded in earnings. Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. The Company follows paragraph 310-10-50-9 of the FASB Accounting Standards Codification to estimate the allowance for doubtful accounts. The Company performs on-going credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by the review of their current credit information; and determines the allowance for doubtful accounts based on historical write-off experience, customer specific facts and general economic conditions that may affect a client’s ability to pay. Pursuant to paragraph 310-10-50-2 of the FASB Accounting Standards Codification account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company has adopted paragraph 310-10-50-6 of the FASB Accounting Standards Codification and determine when receivables are past due or delinquent based on how recently payments have been received. Outstanding account balances are reviewed individually for collectability. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Bad debt expense is included in general and administrative expenses, if any. The Company has $ 65,002 68,101 The Company does not have any off-balance-sheet credit exposure to its customers at September 30, 2015 or 2014. Inventory Valuation The Company values inventory, consisting of finished goods, at the lower of cost or market . Cost is determined on the first-in and first- out (“FIFO”) method. The Company reduces inventory for the diminution of value, resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference between the cost of the inventory and its estimated market value. Factors utilized in the determination of estimated market value include (i) current sales data and historical return rates, (ii) estimates of future demand, and (iii) competitive pricing pressures. Inventory Obsolescence and Markdowns The Company evaluates its current level of inventory considering historical sales and other factors and, based on this evaluation, classify inventory markdowns in the income statement as a component of cost of goods sold pursuant to Paragraph 420-10-S99 of the FASB Accounting Standards Codification to adjust inventory to net realizable value. These markdowns are estimates, which could vary significantly from actual requirements if future economic conditions, customer demand or competition differ from expectations. There was $ 148,967 Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. Lease agreements are evaluated to determine whether they are capital leases or operating leases in accordance with paragraph 840-10-25-1 of the FASB Accounting Standards Codification (“Paragraph 840-10-25-1”). Pursuant to Paragraph 840-10-25-1 A lessee and a lessor shall consider whether a lease meets any of the following four criteria as part of classifying the lease at its inception under the guidance in the Lessees Subsection of this Section (for the lessee) and the Lessors Subsection of this Section (for the lessor): a. Transfer of ownership. The lease transfers ownership of the property to the lessee by the end of the lease term . This criterion is met in situations in which the lease agreement provides for the transfer of title at or shortly after the end of the lease term in exchange for the payment of a nominal fee, for example, the minimum required by statutory regulation to transfer title. b. Bargain purchase option . The lease contains a bargain purchase option. c. Lease term. The lease term is equal to 75 percent or more of the estimated economic life of the leased property. d. Minimum lease payments . The present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. In accordance with paragraphs 840-10- 25-29 and 840-10-25-30, if at its inception a lease meets any of the four lease classification criteria in Paragraph 840-10-25-1, the lease shall be classified by the lessee as a capital lease; and if none of the four criteria in Paragraph 840-10-25-1 are met, the lease shall be classified by the lessee as an operating lease. Pursuant to Paragraph 840-10- 25-31 a lessee shall compute the present value of the minimum lease payments using the lessee's incremental borrowing rate unless both of the following conditions are met, in which circumstance the lessee shall use the implicit rate: a.) It is practicable for the lessee to learn the implicit rate computed by the lessor. b.) The implicit rate computed by the lessor is less than the lessee's incremental borrowing rate. Capital lease assets are depreciated on a straight line method, over the capital lease assets estimated useful lives consistent with the Company’s normal depreciation policy for tangible fixed assets. Interest charges are expensed over the period of the lease in relation to the carrying value of the capital lease obligation. Operating leases primarily relate to the Company’s leases of office spaces. When the terms of an operating lease include tenant improvement allowances, periods of free rent, rent concessions, and/or rent escalation amounts, the Company establishes a deferred rent liability for the difference between the scheduled rent payment and the straight-line rent expense recognized, which is amortized over the underlying lease term on a straight-line basis as a reduction of rent expense. The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 8251015, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved b. description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. The Company derives its revenues from sales of its products, with revenues being generated upon the shipment of merchandise. Persuasive evidence of an arrangement is demonstrated via sales invoice or contract; the sales price to the customer is fixed upon acceptance of the signed purchase order or contract and there is no separate sales rebate, discount, or volume incentive. The Company accounts for shipping and handling fees in accordance with paragraph 605-45-45-19 of the FASB Accounting Standards Codification. While amounts charged to customers for shipping products are included in revenues, the related costs are classified in cost of goods sold as incurred. The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Income and Comprehensive Income in the period that includes the enactment date. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty (50) percent likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying consolidated balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its consolidated balance sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the fiscal year ended September 30, 2015 or 2014. Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. 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 (loss) per common share is computed by dividing net income (loss) 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. There were 67,569 In countries in which the Company operates, and the functional currency is other than the U.S. dollar, assets and liabilities are translated using published exchange rates in effect at the consolidated balance sheet date. Revenues and expenses and cash flows are translated using an approximate weighted average exchange rate for the period. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the accompanying consolidated balance sheet. For the years ending September 30, 2015 and September 30, 2014, comprehensive income includes losses of $ 177,329 156,559 The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. In April 2015, the FASB issued ASU No. 2015-03, Interest - “Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The guidance requires debt issu |
LIQUIDITY
LIQUIDITY | 12 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Substantial Doubt about Going Concern [Text Block] | NOTE 3 LIQUIDITY Our current strategic plan includes the expansion of the Company both organically and through acquisitions if market conditions and competitive conditions allow. Due to the long-term nature of investments in acquisitions and other financial needs to support organic growth, including working capital, we expect our long-term and working capital needs to periodically exceed the short-term fluctuations in cash flow from operations. Accordingly, we anticipate that we will likely raise additional external capital from the sale of common stock, preferred stock, and debt instruments as market conditions may allow in addition to cash flow from operations to fund our growth and working capital needs. To the extent that our internally-generated cash flow is insufficient to meet our needs, we are subject to uncertain and ever-changing debt and equity capital market conditions over which we have no control. The magnitude and the timing of the funds that we need to raise from external sources also cannot be easily predicted. In the event that we need to raise significant amounts of external capital at any time or over an extended period, we face a clear risk that we may need to do so under adverse capital market conditions with the result that persons who acquire our common stock may incur significant and immediate dilution should we raise capital from the sale of our common or preferred stock. Similarly, we may need to meet our external capital needs from the sale of secured or unsecured debt instruments at interest rates and with such other debt covenants and conditions as the market then requires. In all of these transactions we anticipate that we will likely need to raise significant amounts of additional external capital to support our growth. However, there can be no guarantee that we will be able to raise external capital on terms that are reasonable in light of current market conditions. In the event that we are not able to do so, persons who acquire our common stock may face significant and immediate dilution and other adverse consequences. Further, debt covenants contained in debt instruments that we issue may limit our financial and operating flexibility with consequent adverse impact on our common stock market price. There is no guarantee that cash flow from operations and/or debt and equity vehicles will provide sufficient capital to meet our expansion goals and working capital needs. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 4 FAIR VALUE MEASUREMENTS The Company complies with the provisions of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”). Under ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Quoted Prices Significant Significant Balance in Active Other Unobservable as of Markets for Observable Inputs September 30, Identical Assets Inputs (Level 3) 2015 (Level 1) (Level 2) Assets Investment in certificates of deposit (included in short-term investments) $ - $ - $ - $ - $ - $ - $ - $ - Quoted Prices Significant Significant Balance in Active Other Observable as of Markets for Observable Inputs September 30, Identical Assets Inputs (Level 3) 2014 (Level 1) (Level 2) Assets Investment in certificates of deposit (included in short-term investments) $ 559,815 $ - $ - $ 559,815 $ 559,815 $ - $ - $ 559,815 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 5 ACCOUNTS RECEIVABLE, NET September 30, September 30, 2015 2014 Accounts receivable $ 4,836,046 $ 4,106,441 Allowance for doubtful accounts (65,002) (68,101) $ 4,771,044 $ 4,038,340 Accounts receivable include amounts due for shipped products and services rendered. Allowance for doubtful accounts include estimated losses resulting from the inability of our customers to make required payments. |
INVENTORY, NET
INVENTORY, NET | 12 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 6 INVENTORY, NET September 30, September 30, 2015 2014 Raw materials $ 3,345,432 $ 3,449,501 Work in progress 1,306,906 1,254,013 Finished goods 1,866,145 1,715,780 6,518,483 6,419,294 Less: Allowance for inventory obsolescence (148,967) $ (148,967) Inventory net of allowance for inventory obsolescence $ 6,369,516 $ 6,270,327 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 7 PROPERTY AND EQUIPMENT September 30, September 30, 2015 2014 Land $ 1,194,979 $ 1,065,500 Building 3,938,544 4,387,880 Furniture and office equipment 576,741 316,715 Computer software 286,638 46,619 Machinery and equipment 3,663,526 2,234,423 9,660,428 8,051,137 Less: Accumulated depreciation (1,517,905) (652,041) Property and equipment, net $ 8,142,523 $ 7,399,096 The Company completed the annual impairment test of property and equipment and determined that there was no impairment as the fair value of property and equipment, substantially exceeded their carrying values at September 30, 2015. Depreciation and amortization of property and equipment totaled approximately $ 772,434 494,654 |
PREPAID AND OTHER CURRENT ASSET
PREPAID AND OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2015 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid, and Other Current Assets [Text Block] | NOTE 8 PREPAID AND OTHER CURRENT ASSETS On September 30, 2015 the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $ 120,296 773,496 531,262 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 12 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 9 CONVERTIBLE NOTES PAYABLE Date Amount Maturity period Interest rate Conversion price Conversion period March 26, 2015 $ 100,000 12 Months 10 % 70% of market 6 Months May 7, 2015 200,000 9 Months 8 % 65% of market 6 Months May 12, 2015 174,000 9 Months 8 % 65% of market 6 Months June 8, 2015 200,000 12 Months 10 % 70% of market 6 Months June 25, 2015 300,000 12 Months 8 % 65% of market 6 Months August 21, 2015 300,000 12 Months 10 % 75% of market 6 Months Total $ 1,274,000 The use of the proceeds from the notes issued is for growth capital and planned acquisitions. As per the terms of these convertible notes the Company has reserved 1,500,000 As of September 30, 2015, 371,069 658,000 |
LONG-TERM LIABILITIES
LONG-TERM LIABILITIES | 12 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | NOTE 10 LONG-TERM LIABILITIES Loan payable to bank On October 31, 2013, the company acquired a term loan from Sparkasse Bank of Germany in the amount of € 3,000,000 4,006,500 3,133,286 873,214 4.95 October 30, 2021 On October 31, 2013, the company acquired a working capital credit line from Sparkasse Bank of Germany in the amount of € 1,000,000 1,335,500 4.00 500,000 2,000,000 On March 1, 2014 the Company completed the purchase of the building that ROB Cemtrex GmbH occupies in Neulingen, Germany. The purchase was fully financed through Sparkasse Bank of Germany for € 4,000,000 5,500,400 3.00 On May 28, 2014 the Company financed an upgrade of the information technology infrastructure for ROB Cemtrex GmbH. The purchase was fully financed through a term loan Sparkasse Bank of Germany for € 200,000 272,840 4.50 Loan payable to Shareholder Please see Note 13 Related Party Transactions for details on loans payable to Ducon Technologies, Inc.. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 11 BUSINESS COMBINATION On October 31, 2013, the Company completed the acquisition of the privately held ROB Group, a leader in electronics manufacturing solutions located in Neulingen, Germany. The ROB Group, founded in 1989, consisted of 4 distinct operating companies, forming a complete electronics design, manufacturing, assembly, and cabling solutions provider that serves the electronics and cabling needs of some of the largest companies in the world in the Medical, Automation, Industrial, and Renewable Energy industries. ROB Group also has a manufacturing facility in Sibiu, Romania. ROB Cemtrex GmbH now operates as a subsidiary of Cemtrex, Inc.. The operating results of ROB Cemtrex GmbH from October 31, 2013 to September 30, 2014 are included in the accompanying Consolidated Statement of Operations. The Consolidated Balance Sheet as of September 30, 2014 reflects the acquisition of ROB Cemtrex GmbH, effective October 31, 2013. 5.936 Loan from bank 3,133,286 Loan from related party 2,803,012 Total Purchase Price $ 5,936,298 In accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"), the total purchase consideration is allocated to the net tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of October 31, 2013 (the acquisition date). The purchase price was allocated based on the information currently available, and may be adjusted after obtaining more information regarding, among other things, asset valuations, liabilities assumed, and revisions of preliminary estimates. Inventories $ 4,941,350 Property and Equipment 981,593 Other long-term assets 13,355 Net assets acquired $ 5,936,298 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 12 RELATED PARTY TRANSACTIONS The Company has Notes payable to Ducon Technologies Inc., totaling $ 119,055 1,869,791 5 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders Equity Note Disclosure [Text Block] | NOTE 13 SHAREHOLDERS’ EQUITY Series A Preferred Stock The Company is authorized to issue 10,000,000 0.001 1,000,000 During the year ending September 30, 2015 and 2014, the Company did not issue any Series A Preferred Stock. Common Stock On April 3, 2015, our Board of Directors approved a reverse split of our common stock, par value $0.001, at a ratio of one-for-six. This reverse stock split became effective on April 15, 2015 On June 25, 2015 the Company’s common stock commenced trading on the NASDAQ Capital Markets under the symbol “CETX”. The Company is authorized to issue 20,000,000 0.001 7,158,087 6,766,587 During the year ending September 30, 2015 the company issued 391,500 During the year ending September 30, 2014 the company issued stock options for 100,000 1.80 16,264 During the year ending September 30, 2015 the company issued 371,069 658,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 14 COMMITMENTS AND CONTINGENCIES The Company’s Environmental Products and Services Group leases (i) approx. 5,000 2,200 March 31, 2018 2000 4,133 1500 600 The Company through its Electronics Manufacturing Services Group owns a 70,000 17 3.00 25,000 10,000 8,000 May 31, 2019 |
INCOME TAX PROVISION
INCOME TAX PROVISION | 12 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 15 INCOME TAX PROVISION The Company accounts for income taxes under the provisions of FASB ASC 740, “Income Taxes”, formerly referenced as SFAS No.109, “Accounting for Income Taxes”. Under the provisions of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between their financial statement carrying values and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. In the event that the Company changes its determination as to the amount of deferred tax assets that can be realized, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. September 30, 2015 September 30, 2014 Current taxes payable Federal $ 5,594 $ 14,048 State 5,506 13,825 Foreign (10,183) 34,159 Deferred tax asset: - - Deferred tax valuation allowance - - Total $ 917 $ 62,032 For the Fiscal Year For the Fiscal Year Ended Ended September 30, 2015 September 30, 2014 U.S. statutory rate 34.00 % 34.00 % State income taxes (net of federal benefit) 9.00 9.00 Permanent differences (42.97) (37.40) Benefit of net operating loss carry-forward 0.00 0.00 Effective rate 0.03 % 5.60 % At September 30, 2015 and 2014, the Company has no net operating loss carryovers. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 16 SUBSEQUENT EVENTS On October 23, 2015, the Company issued a convertible note to an unrelated third party, in the amount of $ 515,000 5 converted into Company’s common stock at a conversion price equaling 75% of the market price after six months from the date of issuance at the holder’s option. On November 04, 2015, the Company issued a convertible note to another unrelated third party in the amount of $ 500,000 10 converted into Company’s common stock at a conversion price equaling 75% of the market price after six months from the date of issuance at the holder’s option. From October 1, 2015 to December 11, 2015, the company issued 369,265 574,000 On December 15, 2015 Company acquired Advanced Industrial Services Inc. and its affiliate subsidiary company based in York, Pennsylvania for purchase price of approximately $ 7,500,000 476,340 5,000,000 1,500,000 1,000,000 315,458 23 2.4 5.25 7 3.5 The loans carry annual interest rates of 30 day LIBOR plus 2.25 and 2.0 respectively. 3 |
BASIS OF PRESENTATION AND CRI23
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year-End The Company elected September 30 as its fiscal year-end date. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s). Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were: i. Allowance for doubtful accounts : Management’s estimate of the allowance for doubtful accounts is based on historical sales, historical loss levels, and an analysis of the collectability of individual accounts; and general economic conditions that may affect a client’s ability to pay. The Company evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole; ii. Inventory Obsolescence and Markdowns : The Company’s estimate of potentially excess and slow-moving inventories is based on evaluation of inventory levels and aging, review of inventory turns and historical sales experiences. The Company’s estimate of reserve for inventory shrinkage is based on the historical results of physical inventory cycle counts; iii. Fair value of long-lived assets : Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: i. significant under-performance or losses of assets relative to expected historical or projected future operating results; ii. significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; iii. significant negative industry or economic trends; iv. increased competitive pressures; v. a significant decline in the Company’s stock price for a sustained period of time; and vi. regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. iv. Valuation allowance for deferred tax assets: Management assumes that the realization of the Company’s net deferred tax assets resulting from its net operating loss (“NOL”) carryforwards for Federal income tax purposes that may be offset against future taxable income was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry- forwards are offset by a full valuation allowance. Management made this assumption based on (a) the Company has incurred recurring losses, (b) general economic conditions, and (c) its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors. These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The Company applies the guidance of Topic 810 “Consolidation” of the FASB Accounting Standards Codification to determine whether and how to consolidate another entity. Pursuant to ASC Paragraph 810-10-15-10 all majority-owned subsidiariesall entities in which a parent has a controlling financial interestshall be consolidated except (1) when control does not rest with the parent, the majority owner; (2) if the parent is a broker-dealer within the scope of Topic 940 and control is likely to be temporary; (3) consolidation by an investment company within the scope of Topic 946 of a non-investment-company investee. Pursuant to ASC Paragraph 810-10-15-8 the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree. The Company consolidates all less-than-majority-owned subsidiaries, if any, in which the parent’s power to control exists. Name of consolidated State or other jurisdiction of Date of incorporation or Attributable subsidiary or entity incorporation or organization formation (date of acquisition, if applicable) interest Griffin Filters, LLC New York September 6,2005 (April 30,2007) 100 % ROB Cemtrex GmbH Germany August 15, 2013 (October 31, 2013) 100 % Cemtrex Ltd Hong Kong September 4, 2013 100 % ROB Systems, Srl. Romania November 1, 2013 100 % Cemtrex India (Pvt) Ltd. India April 10, 2009 100 % The consolidated financial statements include all accounts of the Company and its wholly-owned subsidiary as of the reporting period end dates and for the reporting periods then ended. All inter-company balances and transactions have been eliminated. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 - Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 - Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses and accounts payable, approximate their fair values because of the short maturity of these instruments. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. Fair Value of Non-Financial Assets or Liabilities Measured on a Recurring Basis The Company’s non-financial assets include inventories. The Company identifies potentially excess and slow-moving inventories by evaluating turn rates, inventory levels and other factors. Excess quantities are identified through evaluation of inventory aging, review of inventory turns and historical sales experiences. The Company provides lower of cost or market reserves for such identified excess and slow- moving inventories. The Company establishes a reserve for inventory shrinkage, if any, based on the historical results of physical inventory cycle counts. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Carrying Value, Recoverability and Impairment of Long-Lived Assets The Company has adopted paragraph 360-10-35-17 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. When long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. The key assumptions used in management’s estimates of projected cash flow deal largely with forecasts of sales levels, gross margins, and operating costs of the manufacturing facilities. These forecasts are typically based on historical trends and take into account recent developments as well as management’s plans and intentions. Any difficulty in manufacturing or sourcing raw materials on a cost effective basis would significantly impact the projected future cash flows of the Company’s manufacturing facilities and potentially lead to an impairment charge for long-lived assets. Other factors, such as increased competition or a decrease in the desirability of the Company’s products, could lead to lower projected sales levels, which would adversely impact cash flows. A significant change in cash flows in the future could result in an impairment of long lived assets. The impairment charges, if any, is included in operating expenses in the accompanying statements of operations. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. |
Investment, Policy [Policy Text Block] | Short-term Investments The Company’s short-term investments consist of certificates of deposit with original maturities of greater than three months. They are bought and held principally for the purpose of selling them in the near-term and are classified as trading securities. Trading securities are recorded at fair value on the consolidated balance sheets in current assets, with the change in fair value during the year recorded in earnings. |
Trade and Other Accounts Receivable, Unbilled Receivables, Policy [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. The Company follows paragraph 310-10-50-9 of the FASB Accounting Standards Codification to estimate the allowance for doubtful accounts. The Company performs on-going credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by the review of their current credit information; and determines the allowance for doubtful accounts based on historical write-off experience, customer specific facts and general economic conditions that may affect a client’s ability to pay. Pursuant to paragraph 310-10-50-2 of the FASB Accounting Standards Codification account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company has adopted paragraph 310-10-50-6 of the FASB Accounting Standards Codification and determine when receivables are past due or delinquent based on how recently payments have been received. Outstanding account balances are reviewed individually for collectability. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Bad debt expense is included in general and administrative expenses, if any. The Company has $ 65,002 68,101 The Company does not have any off-balance-sheet credit exposure to its customers at September 30, 2015 or 2014. |
Cost of Sales, Policy [Policy Text Block] | Inventory and Cost of Goods Sold Inventory Valuation The Company values inventory, consisting of finished goods, at the lower of cost or market . Cost is determined on the first-in and first- out (“FIFO”) method. The Company reduces inventory for the diminution of value, resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference between the cost of the inventory and its estimated market value. Factors utilized in the determination of estimated market value include (i) current sales data and historical return rates, (ii) estimates of future demand, and (iii) competitive pricing pressures. Inventory Obsolescence and Markdowns The Company evaluates its current level of inventory considering historical sales and other factors and, based on this evaluation, classify inventory markdowns in the income statement as a component of cost of goods sold pursuant to Paragraph 420-10-S99 of the FASB Accounting Standards Codification to adjust inventory to net realizable value. These markdowns are estimates, which could vary significantly from actual requirements if future economic conditions, customer demand or competition differ from expectations. There was $ 148,967 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. |
Loans and Leases Receivable, Lease Financing, Policy [Policy Text Block] | Leases Lease agreements are evaluated to determine whether they are capital leases or operating leases in accordance with paragraph 840-10-25-1 of the FASB Accounting Standards Codification (“Paragraph 840-10-25-1”). Pursuant to Paragraph 840-10-25-1 A lessee and a lessor shall consider whether a lease meets any of the following four criteria as part of classifying the lease at its inception under the guidance in the Lessees Subsection of this Section (for the lessee) and the Lessors Subsection of this Section (for the lessor): a. Transfer of ownership. The lease transfers ownership of the property to the lessee by the end of the lease term . This criterion is met in situations in which the lease agreement provides for the transfer of title at or shortly after the end of the lease term in exchange for the payment of a nominal fee, for example, the minimum required by statutory regulation to transfer title. b. Bargain purchase option . The lease contains a bargain purchase option. c. Lease term. The lease term is equal to 75 percent or more of the estimated economic life of the leased property. d. Minimum lease payments . The present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. In accordance with paragraphs 840-10- 25-29 and 840-10-25-30, if at its inception a lease meets any of the four lease classification criteria in Paragraph 840-10-25-1, the lease shall be classified by the lessee as a capital lease; and if none of the four criteria in Paragraph 840-10-25-1 are met, the lease shall be classified by the lessee as an operating lease. Pursuant to Paragraph 840-10- 25-31 a lessee shall compute the present value of the minimum lease payments using the lessee's incremental borrowing rate unless both of the following conditions are met, in which circumstance the lessee shall use the implicit rate: a.) It is practicable for the lessee to learn the implicit rate computed by the lessor. b.) The implicit rate computed by the lessor is less than the lessee's incremental borrowing rate. Capital lease assets are depreciated on a straight line method, over the capital lease assets estimated useful lives consistent with the Company’s normal depreciation policy for tangible fixed assets. Interest charges are expensed over the period of the lease in relation to the carrying value of the capital lease obligation. Operating leases primarily relate to the Company’s leases of office spaces. When the terms of an operating lease include tenant improvement allowances, periods of free rent, rent concessions, and/or rent escalation amounts, the Company establishes a deferred rent liability for the difference between the scheduled rent payment and the straight-line rent expense recognized, which is amortized over the underlying lease term on a straight-line basis as a reduction of rent expense. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | The Company has adopted Subtopic 350-30 of the FASB Accounting Standards Codification for intangible assets other than goodwill. Under the requirements, the Company amortizes the acquisition costs of intangible assets other than goodwill on a straight-line basis over their estimated useful lives, the terms of the exclusive licenses and/or agreements, or the terms of legal lives of the intangible assets , whichever is shorter . Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts. |
Related Parties [Policy Text Block] | Related Parties The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 8251015, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved b. description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and Contingencies, Policy [Policy Text Block] | Commitment and Contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. The Company derives its revenues from sales of its products, with revenues being generated upon the shipment of merchandise. Persuasive evidence of an arrangement is demonstrated via sales invoice or contract; the sales price to the customer is fixed upon acceptance of the signed purchase order or contract and there is no separate sales rebate, discount, or volume incentive. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs The Company accounts for shipping and handling fees in accordance with paragraph 605-45-45-19 of the FASB Accounting Standards Codification. While amounts charged to customers for shipping products are included in revenues, the related costs are classified in cost of goods sold as incurred. |
Income Tax, Policy [Policy Text Block] | Income Tax Provision The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Income and Comprehensive Income in the period that includes the enactment date. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty (50) percent likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying consolidated balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its consolidated balance sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. |
Income Tax Uncertainties, Policy [Policy Text Block] | Uncertain Tax Positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the fiscal year ended September 30, 2015 or 2014. |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Common Share Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. 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 (loss) per common share is computed by dividing net income (loss) 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. There were 67,569 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation Gain and Comprehensive Income (Loss) In countries in which the Company operates, and the functional currency is other than the U.S. dollar, assets and liabilities are translated using published exchange rates in effect at the consolidated balance sheet date. Revenues and expenses and cash flows are translated using an approximate weighted average exchange rate for the period. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the accompanying consolidated balance sheet. For the years ending September 30, 2015 and September 30, 2014, comprehensive income includes losses of $ 177,329 156,559 |
Cash Flows Reporting [Policy Text Block] | Cash Flows Reporting The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period presentation. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Interest - “Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The guidance requires debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation for debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcements at the June 2015 EITF Meeting. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of debt issuance costs over the term of the line-of-credit arrangement, whether or not there are any outstanding borrowings on the line-of-credit arrangement. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, and must be applied on a retrospective basis with early adoption permitted. The adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. In July 2015, the FASB issued ASU No. 2015-12, “Plan AccountingDefined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962) Health and Welfare Benefit Plans (Topic 965)”. There are three parts to the ASU that aim to simplify the accounting and presentation of plan accounting. Part I of this ASU requires fully benefit-responsive investment contracts to be measured at contract value instead of the current fair value measurement. Part II of this ASU requires investments (both participant-directed and nonparticipant-directed investments) of employee benefit plans be grouped only by general type, eliminating the need to disaggregate the investments in multiple ways. Part III of this ASU provides a similar measurement date practical expedient for employee benefit plans as available in ASU No. 2015-04, which allows employers to measure defined benefit plan assets on a month-end date that is nearest to the year’s fiscal year-end when the fiscal period does not coincide with a month-end. Parts I and II of the new guidance should be applied on a retrospective basis. Part III of the new guidance should be applied on a prospective basis. This ASU is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory,” which amends ASC 330, Inventory. This ASU simplifies the subsequent measurement of inventory by using only the lower of cost and net realizable value. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016, and must be applied on a retrospective basis with early adoption permitted. The adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): “Simplifying the Accounting for Measurement-Period Adjustments,” which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Under this ASU, acquirers must recognize measurement-period adjustments in the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. This guidance is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company does not anticipate the adoption of this standard will have a material impact on its Consolidated Financial Statements. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements. |
BASIS OF PRESENTATION AND CRI24
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Subsidiary of Limited Liability Company or Limited Partnership, Description [Table Text Block] | Name of consolidated State or other jurisdiction of Date of incorporation or Attributable subsidiary or entity incorporation or organization formation (date of acquisition, if applicable) interest Griffin Filters, LLC New York September 6,2005 (April 30,2007) 100 % ROB Cemtrex GmbH Germany August 15, 2013 (October 31, 2013) 100 % Cemtrex Ltd Hong Kong September 4, 2013 100 % ROB Systems, Srl. Romania November 1, 2013 100 % Cemtrex India (Pvt) Ltd. India April 10, 2009 100 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following tables present information about the Company’s assets measured at fair value as of September 30, 2015 and September 30, 2014: Quoted Prices Significant Significant Balance in Active Other Unobservable as of Markets for Observable Inputs September 30, Identical Assets Inputs (Level 3) 2015 (Level 1) (Level 2) Assets Investment in certificates of deposit (included in short-term investments) $ - $ - $ - $ - $ - $ - $ - $ - Quoted Prices Significant Significant Balance in Active Other Observable as of Markets for Observable Inputs September 30, Identical Assets Inputs (Level 3) 2014 (Level 1) (Level 2) Assets Investment in certificates of deposit (included in short-term investments) $ 559,815 $ - $ - $ 559,815 $ 559,815 $ - $ - $ 559,815 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable, net consists of the following: September 30, September 30, 2015 2014 Accounts receivable $ 4,836,046 $ 4,106,441 Allowance for doubtful accounts (65,002) (68,101) $ 4,771,044 $ 4,038,340 |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory, net of reserves, consist of the following: September 30, September 30, 2015 2014 Raw materials $ 3,345,432 $ 3,449,501 Work in progress 1,306,906 1,254,013 Finished goods 1,866,145 1,715,780 6,518,483 6,419,294 Less: Allowance for inventory obsolescence (148,967) $ (148,967) Inventory net of allowance for inventory obsolescence $ 6,369,516 $ 6,270,327 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are summarized as follows: September 30, September 30, 2015 2014 Land $ 1,194,979 $ 1,065,500 Building 3,938,544 4,387,880 Furniture and office equipment 576,741 316,715 Computer software 286,638 46,619 Machinery and equipment 3,663,526 2,234,423 9,660,428 8,051,137 Less: Accumulated depreciation (1,517,905) (652,041) Property and equipment, net $ 8,142,523 $ 7,399,096 |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Debt [Table Text Block] | As of September 30, 2015 the Company has the following unsecured convertible notes, issued on the dates listed, to various unrelated third parties outstanding. Date Amount Maturity period Interest rate Conversion price Conversion period March 26, 2015 $ 100,000 12 Months 10 % 70% of market 6 Months May 7, 2015 200,000 9 Months 8 % 65% of market 6 Months May 12, 2015 174,000 9 Months 8 % 65% of market 6 Months June 8, 2015 200,000 12 Months 10 % 70% of market 6 Months June 25, 2015 300,000 12 Months 8 % 65% of market 6 Months August 21, 2015 300,000 12 Months 10 % 75% of market 6 Months Total $ 1,274,000 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The acquisition date fair value of the total consideration transferred was $ 5.936 Loan from bank 3,133,286 Loan from related party 2,803,012 Total Purchase Price $ 5,936,298 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: Inventories $ 4,941,350 Property and Equipment 981,593 Other long-term assets 13,355 Net assets acquired $ 5,936,298 |
INCOME TAX PROVISION (Tables)
INCOME TAX PROVISION (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes is as follows: September 30, 2015 September 30, 2014 Current taxes payable Federal $ 5,594 $ 14,048 State 5,506 13,825 Foreign (10,183) 34,159 Deferred tax asset: - - Deferred tax valuation allowance - - Total $ 917 $ 62,032 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: For the Fiscal Year For the Fiscal Year Ended Ended September 30, 2015 September 30, 2014 U.S. statutory rate 34.00 % 34.00 % State income taxes (net of federal benefit) 9.00 9.00 Permanent differences (42.97) (37.40) Benefit of net operating loss carry-forward 0.00 0.00 Effective rate 0.03 % 5.60 % |
ORGANIZATION AND PLAN OF OPER32
ORGANIZATION AND PLAN OF OPERATIONS (Details Textual) | 1 Months Ended | 12 Months Ended |
Oct. 31, 2013 | Sep. 30, 2015 | |
Organization and Operations [Line Items] | ||
Business Acquisition, Name of Acquired Entity | ROB Group | |
Cemtrex Inc [Member] | ||
Organization and Operations [Line Items] | ||
Entity Incorporation, Date Of Incorporation | Apr. 27, 1998 | |
Date of acquisition | Oct. 31, 2013 |
BASIS OF PRESENTATION AND CRI33
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Details) | 1 Months Ended | 12 Months Ended |
Oct. 31, 2013 | Sep. 30, 2015 | |
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
Name of consolidated subsidiary or entity | ROB Group | |
Griffin Filters [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
Name of consolidated subsidiary or entity | Griffin Filters, LLC | |
Entity Incorporation, State Country Name | New York | |
Date of incorporation or formation | Sep. 6, 2005 | |
Date of acquisition | Apr. 30, 2007 | |
Attributable interest | 100.00% | |
ROB Cemtrex GmbH [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
Name of consolidated subsidiary or entity | ROB Cemtrex GmbH | |
Entity Incorporation, State Country Name | Germany | |
Date of incorporation or formation | Aug. 15, 2013 | |
Date of acquisition | Oct. 31, 2013 | |
Attributable interest | 100.00% | |
Cemtrex Ltd [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
Name of consolidated subsidiary or entity | Cemtrex Ltd | |
Entity Incorporation, State Country Name | Hong Kong | |
Date of incorporation or formation | Sep. 4, 2013 | |
Attributable interest | 100.00% | |
ROB Systems, Srl. [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
Name of consolidated subsidiary or entity | ROB Systems, Srl. | |
Entity Incorporation, State Country Name | Romania | |
Date of incorporation or formation | Nov. 1, 2013 | |
Attributable interest | 100.00% | |
Cemtrex India Pvt Ltd. [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
Name of consolidated subsidiary or entity | Cemtrex India (Pvt) Ltd. | |
Entity Incorporation, State Country Name | India | |
Date of incorporation or formation | Apr. 10, 2009 | |
Attributable interest | 100.00% |
BASIS OF PRESENTATION AND CRI34
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $ 65,002 | $ 68,101 |
Inventory Write-down | 148,967 | 148,967 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $ (177,329) | $ (156,559) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 67,569 | 0 |
Accounting Standards Update 2015-03 [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In April 2015, the FASB issued ASU No. 2015-03, Interest - “Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The guidance requires debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation for debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcements at the June 2015 EITF Meeting. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of debt issuance costs over the term of the line-of-credit arrangement, whether or not there are any outstanding borrowings on the line-of-credit arrangement. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, and must be applied on a retrospective basis with early adoption permitted. The adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. | |
Accounting Standards Update 2015-12 [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In July 2015, the FASB issued ASU No. 2015-12, “Plan Accounting—Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962) Health and Welfare Benefit Plans (Topic 965)”. There are three parts to the ASU that aim to simplify the accounting and presentation of plan accounting. Part I of this ASU requires fully benefit-responsive investment contracts to be measured at contract value instead of the current fair value measurement. Part II of this ASU requires investments (both participant-directed and nonparticipant-directed investments) of employee benefit plans be grouped only by general type, eliminating the need to disaggregate the investments in multiple ways. Part III of this ASU provides a similar measurement date practical expedient for employee benefit plans as available in ASU No. 2015-04, which allows employers to measure defined benefit plan assets on a month-end date that is nearest to the year’s fiscal year-end when the fiscal period does not coincide with a month-end. Parts I and II of the new guidance should be applied on a retrospective basis. Part III of the new guidance should be applied on a prospective basis. This ASU is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. | |
Accounting Standards Update 2015-11 [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory,” which amends ASC 330, Inventory. This ASU simplifies the subsequent measurement of inventory by using only the lower of cost and net realizable value. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016, and must be applied on a retrospective basis with early adoption permitted. The adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. | |
Accounting Standards Update 2015-16 [Member] | ||
Basis Of Presentation And Critical Accounting Policies [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): “Simplifying the Accounting for Measurement-Period Adjustments,” which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Under this ASU, acquirers must recognize measurement-period adjustments in the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. This guidance is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company does not anticipate the adoption of this standard will have a material impact on its Consolidated Financial Statements. |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | $ 0 | $ 559,815 |
Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 0 | 559,815 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 0 | 559,815 |
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 0 | 559,815 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Investments | $ 0 | $ 0 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 4,836,046 | $ 4,106,441 |
Allownce for doubtful accounts | (65,002) | (68,101) |
Accounts Receivables, Net, Total | $ 4,771,044 | $ 4,038,340 |
INVENTORY, NET (Details)
INVENTORY, NET (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 3,345,432 | $ 3,449,501 |
Work in progress | 1,306,906 | 1,254,013 |
Finished goods | 1,866,145 | 1,715,780 |
Inventory, Gross, Total | 6,518,483 | 6,419,294 |
Less: Allowance for inventory obsolescence | (148,967) | (148,967) |
Inventory -net of allowance for inventory obsolescence | $ 6,369,516 | $ 6,270,327 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 1,194,979 | $ 1,065,500 |
Building | 3,938,544 | 4,387,880 |
Furniture and office equipment | 576,741 | 316,715 |
Computer software | 286,638 | 46,619 |
Machinery and equipment | 3,663,526 | 2,234,423 |
Property, Plant and Equipment, Gross, Total | 9,660,428 | 8,051,137 |
Less: Accumulated depreciation | (1,517,905) | (652,041) |
Property and equipment, net | $ 8,142,523 | $ 7,399,096 |
PROPERTY AND EQUIPMENT (Detai39
PROPERTY AND EQUIPMENT (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation & Amortization | $ 772,434 | $ 494,654 |
PREPAID AND OTHER CURRENT ASS40
PREPAID AND OTHER CURRENT ASSETS (Details Textual) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Prepaid And Other Current Assets [Line Items] | ||
Prepaid Supplies | $ 120,296 | $ 531,262 |
Other Assets, Current | $ 773,496 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details) - Convertible Debt [Member] | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Convertible Debt | $ 1,274,000 |
Convertible Debt Issuance Date One [Member] | |
Debt Instrument, Issuance Date | Mar. 26, 2015 |
Debt Instrument, Term | 12 months |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% |
Debt Instrument, Convertible, Terms of Conversion Feature | 6 Months |
Convertible Debt | $ 100,000 |
Debt Conversion, Converted Instrument, Rate | 70.00% |
Convertible Debt Issuance Date Two [Member] | |
Debt Instrument, Issuance Date | May 7, 2015 |
Debt Instrument, Term | 9 months |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
Debt Instrument, Convertible, Terms of Conversion Feature | 6 Months |
Convertible Debt | $ 200,000 |
Debt Conversion, Converted Instrument, Rate | 65.00% |
Convertible Debt Issuance Date Three [Member] | |
Debt Instrument, Issuance Date | May 12, 2015 |
Debt Instrument, Term | 9 months |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
Debt Instrument, Convertible, Terms of Conversion Feature | 6 Months |
Convertible Debt | $ 174,000 |
Debt Conversion, Converted Instrument, Rate | 65.00% |
Convertible Debt Issuance Date Four [Member] | |
Debt Instrument, Issuance Date | Jun. 8, 2015 |
Debt Instrument, Term | 12 months |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% |
Debt Instrument, Convertible, Terms of Conversion Feature | 6 Months |
Convertible Debt | $ 200,000 |
Debt Conversion, Converted Instrument, Rate | 70.00% |
Convertible Debt Issuance Date Five [Member] | |
Debt Instrument, Issuance Date | Jun. 25, 2015 |
Debt Instrument, Term | 12 months |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
Debt Instrument, Convertible, Terms of Conversion Feature | 6 Months |
Convertible Debt | $ 300,000 |
Debt Conversion, Converted Instrument, Rate | 65.00% |
Convertible Debt Issuance Date Six [Member] | |
Debt Instrument, Issuance Date | Aug. 21, 2015 |
Debt Instrument, Term | 12 months |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% |
Debt Instrument, Convertible, Terms of Conversion Feature | 6 Months |
Convertible Debt | $ 300,000 |
Debt Conversion, Converted Instrument, Rate | 75.00% |
CONVERTIBLE NOTES PAYABLE (De42
CONVERTIBLE NOTES PAYABLE (Details Textual) | 12 Months Ended |
Sep. 30, 2015USD ($)shares | |
Short-term Debt [Line Items] | |
Shares Reserved For Debt Conversion | 1,500,000 |
Convertible Notes Payable [Member] | |
Short-term Debt [Line Items] | |
Extinguishment of Debt, Amount | $ | $ 658,000 |
Debt Conversion, Converted Instrument, Shares Issued | 371,069 |
LONG-TERM LIABILITIES (Details
LONG-TERM LIABILITIES (Details Textual) | 1 Months Ended | ||||||||
May 31, 2014EUR (€) | Mar. 30, 2014USD ($) | Oct. 31, 2013USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | May 31, 2014USD ($) | May 31, 2014EUR (€) | Mar. 30, 2014EUR (€) | Oct. 31, 2013EUR (€) | |
Debt Instrument [Line Items] | |||||||||
Loans Payable to Bank, Noncurrent | $ 2,383,815 | $ 3,152,935 | |||||||
Loan payable to bank One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans Payable to Bank, Noncurrent | $ 4,006,500 | € 3,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.95% | 4.95% | |||||||
Debt Instrument, Maturity Date | Oct. 30, 2021 | ||||||||
Loan payable to bank One [Member] | ROB Cemtrex GmbH Acquisition [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans Payable to Bank, Noncurrent | $ 3,133,286 | ||||||||
Loan payable to bank One [Member] | ROB Cemtrex GmbH Funded Operations [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans Payable to Bank, Noncurrent | 873,214 | ||||||||
Loan payable to bank Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans Payable to Bank, Noncurrent | $ 1,335,500 | € 1,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | |||||||
Increased Line Of Credit Facility | € | € 500,000 | ||||||||
Line of Credit Facility, Increase (Decrease), Net | € | € 2,000,000 | ||||||||
Loan Payable To Bank Three [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Participating Mortgage Loans, Mortgage Obligations, Amount | $ 5,500,400 | € 4,000,000 | |||||||
Mortgage Loans on Real Estate, Interest Rate | 3.00% | ||||||||
Mortgage Loans on Real Estate, Periodic Payment Terms | 17 years | ||||||||
Loan Payable To Bank Four [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Participating Mortgage Loans, Mortgage Obligations, Amount | $ 272,840 | € 200,000 | |||||||
Mortgage Loans on Real Estate, Interest Rate | 4.50% | ||||||||
Mortgage Loans on Real Estate, Periodic Payment Terms | 4 years |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) | 1 Months Ended |
Oct. 31, 2013USD ($) | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | $ 5,936,298 |
Loan From Bank [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | 3,133,286 |
Loan From Related Party [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | $ 2,803,012 |
BUSINESS COMBINATION (Details 1
BUSINESS COMBINATION (Details 1) - ROB Cemtrex GmbH [Member] | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | |
Inventories | $ 4,941,350 |
Property and Equipment | 981,593 |
Other long-term assets | 13,355 |
Net assets acquired | $ 5,936,298 |
BUSINESS COMBINATION (Details T
BUSINESS COMBINATION (Details Textual) | 1 Months Ended |
Oct. 31, 2013USD ($) | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | $ 5,936,298 |
ROB Cemtrex GmbH [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | $ 5,936,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Related Party Transaction [Line Items] | ||
Notes Payable, Related Parties, Noncurrent | $ 119,055 | $ 1,869,791 |
Ducon Technologies, Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Notes Payable, Related Parties, Noncurrent | $ 119,055 | $ 1,869,791 |
SHAREHOLDERS' EQUITY (Details T
SHAREHOLDERS' EQUITY (Details Textual) - USD ($) | Apr. 03, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Schedule of Equity Method Investments [Line Items] | |||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, Par Or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 | |
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 | |
Preferred Stock, Voting Rights | Each issued and outstanding Series A Preferred Share shall be entitled to the number of votes equal to the result of: (i) the number of shares of common stock of the Company issued and outstanding at the time of such vote multiplied by 1.01; divided by (ii) the total number of Series A Preferred Shares issued and outstanding at the time of such vote, at each meeting of shareholders of the Company with respect to any and all matters presented to the shareholders of the Company for their action or consideration, including the election of directors. Holders of Series A Preferred Shares shall vote together with the holders of Common Shares as a single class. | ||
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 | |
Common Stock, Par Or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Common Stock, Shares, Issued | 7,158,087 | 6,766,587 | |
Common Stock, Shares, Outstanding | 7,158,087 | 6,766,587 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 391,500 | ||
Stockholders' Equity, Reverse Stock Split | On April 3, 2015, our Board of Directors approved a reverse split of our common stock, par value $0.001, at a ratio of one-for-six. This reverse stock split became effective on April 15, 2015 | ||
Convertible Notes Payable [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Debt Conversion, Converted Instrument, Shares Issued | 371,069 | ||
Extinguishment of Debt, Amount | $ 658,000 | ||
ROB Cemtrex GmbH [Member] | Executive Officer [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 16,264 | 100,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.80 | ||
Series A Preferred Stock [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Preferred Stock, Shares Authorized | 10,000,000 | ||
Preferred Stock, Par Or Stated Value Per Share | $ 0.001 | ||
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 | |
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Textual) - 12 months ended Sep. 30, 2015 | USD ($)ft² | EUR (€)ft² |
Environmental Products and Services Group [Member] | Office and Warehouse Space [Member] | ||
Commitments And Contingencies Disclosure [Line Item] | ||
Area of Land | 5,000 | 5,000 |
Lease Expiration Date | Mar. 31, 2018 | Mar. 31, 2018 |
Lease And Rental Expense Per Month | $ | $ 2,200 | |
Environmental Products and Services Group [Member] | Office One [Member] | ||
Commitments And Contingencies Disclosure [Line Item] | ||
Area of Land | 2,000 | 2,000 |
Lease And Rental Expense Per Month | $ | $ 4,133 | |
Environmental Products and Services Group [Member] | Office Two [Member] | ||
Commitments And Contingencies Disclosure [Line Item] | ||
Area of Land | 1,500 | 1,500 |
Lease And Rental Expense Per Month | $ | $ 600 | |
Electronics Manufacturing Services Group [Member] | Mortgage [Member] | ||
Commitments And Contingencies Disclosure [Line Item] | ||
Area of Land | 70,000 | 70,000 |
Lease Term | 17 years | 17 years |
Mortgage Loans on Real Estate, Interest Rate | 3.00% | 3.00% |
Mortgage Loans on Real Estate Periodic Payments | € | € 25,000 | |
Electronics Manufacturing Services Group [Member] | Manufacturing Facility [Member] | ||
Commitments And Contingencies Disclosure [Line Item] | ||
Area of Land | 10,000 | 10,000 |
Lease Expiration Date | May 31, 2019 | May 31, 2019 |
Lease And Rental Expense Per Month | € | € 8,000 |
INCOME TAX PROVISION (Details)
INCOME TAX PROVISION (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Current taxes payable | ||
Federal | $ 5,594 | $ 14,048 |
State | 5,506 | 13,825 |
Foreign | (10,183) | 34,159 |
Deferred tax asset: | 0 | 0 |
Deferred tax valuation allowance | 0 | 0 |
Total | $ 917 | $ 60,962 |
INCOME TAX PROVISION (Details 1
INCOME TAX PROVISION (Details 1) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Line Items] | ||
U.S. statutory rate | 34.00% | 34.00% |
State income taxes (net of federal benefit) | 9.00% | 9.00% |
Permanent differences | (42.97%) | (37.40%) |
Benefit of net operating loss carry-forward | 0.00% | 0.00% |
Effective rate | 0.03% | 5.60% |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) | Dec. 15, 2015 | Nov. 30, 2015 | Oct. 23, 2015 | Oct. 31, 2013 | Dec. 11, 2015 | Sep. 30, 2015 |
Subsequent Event [Line Items] | ||||||
Business Combination, Consideration Transferred, Total | $ 5,936,298 | |||||
Convertible Note [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt Conversion, Converted Instrument, Shares Issued | 371,069 | |||||
Extinguishment of Debt, Amount | $ 658,000 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Face Amount | $ 500,000 | |||||
Debt Conversion, Description | converted into Companys common stock at a conversion price equaling 75% of the market price after six months from the date of issuance at the holders option. | |||||
Subsequent Event [Member] | Self Amortizing Term Loan [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Long-term Line of Credit | $ 5,250,000 | |||||
Debt Instrument, Term | 7 years | |||||
Debt Instrument, Interest Rate Terms | The loans carry annual interest rates of 30 day LIBOR plus 2.25 and 2.0 respectively. | |||||
Working Capital Line Of Credit | $ 3,500,000 | |||||
Subsequent Event [Member] | Sellers Note [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Term | 3 years | |||||
Subsequent Event [Member] | Advanced Industrial Services Inc And Affiliate Subsidiary [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Business Combination, Consideration Transferred, Total | $ 7,500,000 | |||||
Payments to Acquire Businesses, Gross | 5,000,000 | |||||
Business Combination, Consideration Transferred, Liabilities Incurred | 1,500,000 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,000,000 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 315,458 | |||||
Business Acquisition, Pro Forma Revenue | $ 23,000,000 | |||||
Business Combination Annual Normalized Earnings Before Income Tax Depreciation And Amortization | 2,400,000 | |||||
Business Acquisition, Transaction Costs | $ 476,340 | |||||
Subsequent Event [Member] | Convertible Note [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Face Amount | $ 515,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 5.00% | ||||
Debt Conversion, Description | converted into Companys common stock at a conversion price equaling 75% of the market price after six months from the date of issuance at the holders option. | |||||
Debt Conversion, Converted Instrument, Shares Issued | 369,265 | |||||
Extinguishment of Debt, Amount | $ 574,000 |