Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Feb. 17, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | CEMTREX INC | |
Entity Central Index Key | 0001435064 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,547,702 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets | ||
Cash and equivalents | $ 3,963,958 | $ 1,769,994 |
Restricted cash | 1,233,269 | 1,088,091 |
Short-term investments | 114,056 | 412,730 |
Accounts receivables, net | 6,651,359 | 6,458,984 |
Accounts receivables - related party | 597,109 | 227,019 |
Notes receivable - short-term | 1,713,371 | 1,713,371 |
Inventory - net of allowance for inventory obsolescence | 5,272,892 | 5,207,155 |
Prepaid expenses and other assets | 2,226,377 | 2,000,265 |
Total current assets | 21,772,391 | 18,877,609 |
Property and equipment, net | 16,566,566 | 16,776,552 |
Right-of-use assets | 1,142,279 | |
Goodwill | 4,370,894 | 4,370,894 |
Notes receivable - long-term | 1,586,918 | 1,586,918 |
Deferred tax asset | 2,282,867 | 2,282,867 |
Other | 991,654 | 497,857 |
Total Assets | 48,713,569 | 44,392,697 |
Current liabilities | ||
Accounts payable | 3,318,695 | 4,236,945 |
Short-term liabilities | 9,600,331 | 6,817,534 |
Lease liabilities - short-term | 476,808 | 22,718 |
Deposits from customers | 35,462 | 33,074 |
Accrued expenses | 2,715,205 | 2,673,646 |
Deferred revenue | 1,711,099 | 1,433,803 |
Accrued income taxes | 419,353 | 419,541 |
Total current liabilities | 18,276,953 | 15,637,261 |
Long-term liabilities | ||
Loans payable to bank, net of current portion | 2,005,405 | 2,240,526 |
Long-term lease liabilities, net of current portion | 665,471 | 20,061 |
Notes payable, net of current portion | 3,083,493 | 2,817,661 |
Other long-term liabilities | 1,177,590 | 1,221,549 |
Deferred Revenue - long-term | 476,221 | 489,535 |
Total long-term liabilities | 7,408,180 | 6,789,332 |
Total liabilities | 25,685,133 | 22,426,593 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock, $0.001 par value, 20,000,000 shares authorized, 4,424,583 shares issued and outstanding at December 31, 2019 and 3,962,790 shares issued and outstanding at September 30, 2019 | 4,424 | 3,963 |
Additional paid-in capital | 42,040,809 | 40,344,837 |
Accumulated deficit | (21,461,500) | (20,067,685) |
Accumulated other comprehensive income (loss) | 1,379,030 | 796,004 |
Cemtrex stockholders' equity | 21,966,080 | 21,080,230 |
Non-controlling interest | 1,062,356 | 885,874 |
Total liabilities and stockholders' equity | 48,713,569 | 44,392,697 |
Series 1 Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock value | 2,217 | 2,111 |
Series A Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock value | 1,000 | 1,000 |
Series C Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock value | $ 100 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2019 | Sep. 30, 2019 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 3,316,683 | 3,110,718 |
Preferred stock, shares outstanding | 3,316,683 | 3,110,718 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 4,424,583 | 3,962,790 |
Common stock, shares outstanding | 4,424,583 | 3,962,790 |
Series 1 Preferred Stock [Member] | ||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 2,216,683 | 2,110,718 |
Preferred stock, shares outstanding | 2,216,683 | 2,110,718 |
Preferred stock, liquidation value | $ 10 | $ 10 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 100,000 | 100,000 |
Preferred stock, shares outstanding | 100,000 | 100,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 12,220,083 | $ 5,717,589 |
Cost of revenues | 6,871,597 | 3,530,003 |
Gross profit | 5,348,486 | 2,187,586 |
Operating expenses | ||
General and administrative | 4,852,957 | 3,334,561 |
Research and development | 376,586 | 379,517 |
Total operating expenses | 5,229,543 | 3,714,078 |
Operating income/(loss) | 118,943 | (1,526,492) |
Other income (expense) | ||
Other Income (expense) | 224,325 | (10,560) |
Loss in equity interests | (342,776) | |
Interest expense | (482,522) | (115,266) |
Total other expense, net | (258,197) | (468,602) |
Net loss before income taxes | (139,254) | (1,995,094) |
Income tax benefit | 50 | |
Loss from continuing operations | (139,254) | (1,995,044) |
Loss from discontinued operations, net of tax | (181,254) | |
Net loss | (139,254) | (2,176,298) |
Less noncontrolling interest | (194,911) | |
Net Income/(loss) | (334,165) | (2,176,298) |
Preferred dividends paid | 1,059,650 | 957,780 |
Net loss available to Cemtrex, Inc. shareholders | (1,393,815) | (3,134,078) |
Other comprehensive income/(loss) | ||
Foreign currency translation gain/(loss) | 583,026 | (857,552) |
Other comprehensive loss attribitable to noncontrolling interest | (18,429) | |
Comprehensive income/(loss) | 564,597 | (857,552) |
Comprehensive loss | $ (829,218) | $ (3,991,630) |
Loss Per Share-Basic | ||
Continuing Operations | $ (0.34) | $ (1.80) |
Discontinued Operations | (0.11) | |
Loss Per Share-Diluted | ||
Continuing Operations | (0.34) | (1.80) |
Discontinued Operations | $ (0.11) | |
Weighted Average Number of Shares-Basic | 4,086,609 | 1,638,776 |
Weighted Average Number of Shares-Diluted | 4,086,609 | 1,638,776 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Series 1 Preferred Stock [Member] | Series A Preferred Stock [Member] | Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | Non-Controlling Interest [Member] |
Balance at Sep. 30, 2018 | $ 1,914 | $ 1,000 | $ 1,622 | $ 31,496,671 | $ 4,262,756 | $ (483,297) | $ 42,344,777 | ||
Balance, shares at Sep. 30, 2018 | 1,914,168 | 1,000,000 | 1,621,719 | ||||||
Foreign currency translations | (857,552) | (857,552) | |||||||
Share-based compensation | 36,108 | 36,108 | |||||||
Share-based compensation, shares | |||||||||
Stock issued in Subscription Rights Offering | $ 25 | 138,669 | 138,694 | ||||||
Stock issued in Subscription Rights Offering, shares | 25,126 | ||||||||
Stock issued to pay notes payable | $ 26 | 224,974 | 225,000 | ||||||
Stock issued to pay notes payable, shares | 26,342 | ||||||||
Dividends paid in Series 1 preferred shares | $ 96 | 957,684 | (957,780) | ||||||
Dividends paid in Series 1 preferred shares, shares | 95,778 | ||||||||
Comprehensive income | (857,552) | ||||||||
Net loss | (2,176,298) | (2,176,298) | |||||||
Balance at Dec. 31, 2018 | $ 2,010 | $ 1,000 | $ 1,673 | 32,854,106 | 1,128,678 | (1,340,849) | 32,646,618 | ||
Balance, shares at Dec. 31, 2018 | 2,009,946 | 1,000,000 | 1,673,187 | ||||||
Balance at Sep. 30, 2019 | $ 2,111 | $ 1,000 | $ 3,963 | 40,344,837 | (20,067,685) | 796,004 | 21,080,230 | 885,874 | |
Balance, shares at Sep. 30, 2019 | 2,110,718 | 1,000,000 | 3,962,790 | ||||||
Share-based compensation | $ 100 | 119,004 | 119,104 | ||||||
Share-based compensation, shares | 100,000 | ||||||||
Stock issued to pay notes payable | $ 105 | 130,147 | 130,252 | ||||||
Stock issued to pay notes payable, shares | 105,042 | ||||||||
Dividends paid in Series 1 preferred shares | $ 106 | 1,059,544 | (1,059,650) | ||||||
Dividends paid in Series 1 preferred shares, shares | 105,965 | ||||||||
Comprehensive income | 564,597 | 564,597 | |||||||
Shares issued to pay accounts payable | $ 18 | 27,565 | 27,583 | ||||||
Shares issued to pay accounts payable, shares | 18,358 | ||||||||
Shares sold in Securities Purchase Agreements | $ 338 | 359,712 | 360,050 | ||||||
Shares sold in Securities Purchase Agreements, shares | 338,393 | ||||||||
Noncontrolling interest | 18,429 | 18,429 | 176,482 | ||||||
Net loss | (334,165) | (334,165) | |||||||
Balance at Dec. 31, 2019 | $ 2,217 | $ 1,000 | $ 100 | $ 4,424 | $ 42,040,809 | $ (21,461,500) | $ 1,379,030 | $ 21,966,080 | $ 1,062,356 |
Balance, shares at Dec. 31, 2019 | 2,216,683 | 1,000,000 | 100,000 | 4,424,583 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net loss | $ (139,254) | $ (2,176,298) |
Net loss from discontinued operations | (181,254) | |
Net loss from continuing operations | (139,254) | (1,995,044) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 674,353 | 640,215 |
Gain/(loss) on disposal of property & equipment | 826 | |
Amortization of right-of-use assets | 162,713 | |
Change in allowance for inventory obsolescence | (19,569) | |
Change in allowance for doubtful accounts | 4,362 | |
Share-based compensation | 119,104 | 36,108 |
Interest expense paid in equity shares | 30,252 | |
Loss on equity interests | 342,776 | |
Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: | ||
Accounts receivable | (196,737) | 1,246,088 |
Accounts receivable - related party | (370,090) | 167,220 |
Inventory | (46,168) | (1,439,893) |
Prepaid expenses and other current assets | (226,112) | (414,116) |
Other assets | (493,797) | (71,921) |
Other liabilities | (43,959) | |
Accounts payable | (890,667) | 2,079,745 |
Deposits from customers | 2,388 | 277,577 |
Accrued expenses | 327,612 | 351,524 |
Deferred revenue | 263,982 | 6,042 |
Income taxes payable | (188) | 397 |
Net cash provided/(used) by operating activities - continuing operations | (840,949) | 1,226,718 |
Net cash provided by operating activities - discontinued operations | 4,575,628 | |
Net cash provided/(used) by operating activities | (840,949) | 5,802,346 |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (465,193) | (428,879) |
Proceeds from sale of marketable securities | 298,674 | |
Net cash used by investing activities - continuing operations | (166,519) | (428,879) |
Net cash used by investing activities - discontinued operations | (119,482) | |
Net cash provided by investing activities | (166,519) | (548,361) |
Cash Flows from Financing Activities | ||
Proceeds from notes payable | 2,990,000 | |
Payments on notes payable | (109,520) | (143,882) |
Payments on bank loans | (236,153) | (495,629) |
Proceeds from securities purchase agreements | 379,000 | 150,721 |
Expenses on securities purchase agreements | (18,950) | (12,027) |
Revolving line of credit | (16,872) | (1,101,340) |
Payments on lease liabilities | (205,492) | (5,595) |
Net cash provided/(used) by financing activities - continuing operations | 2,782,013 | (1,607,752) |
Net cash provided/(used) by financing activities - discontinued operations | (2,925,581) | |
Net cash provided/(used) by financing activities | 2,782,013 | (4,533,333) |
Effect of currency translation | 564,597 | (857,552) |
Net increase in cash | 1,774,545 | 720,652 |
Cash beginning of period | 2,858,085 | 2,315,935 |
Cash end of period | 5,197,227 | 2,179,035 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 176,218 | 166,547 |
Cash paid during the period for income taxes | 188 | 140,618 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Payment of convertible notes in common stock | 220,000 | |
Stock issued to pay accounts payable | 27,583 | |
Stock issued to pay notes payable | 130,252 | |
Dividends paid in equity shares | 1,059,650 | 915,080 |
Amortization of original issue discounts on notes payable | $ 133,833 |
Organization and Plan of Operat
Organization and Plan of Operations | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Plan of Operations | NOTE 1 – ORGANIZATION AND PLAN OF OPERATIONS Cemtrex was incorporated in 1998, in the state of Delaware and has evolved through strategic acquisitions and internal growth from a small environmental monitoring instruments company into a world leading multi-industry technology company. The Company drives innovation in a wide range of sectors, including smart technology, virtual and augmented realities, advanced electronic systems, industrial solutions, and intelligent security systems. Unless the context requires otherwise, all references to “we”, “our”, “us”, “Company”, “registrant”, “Cemtrex” or “management” refer to Cemtrex, Inc. and its subsidiaries. The Company continuously assesses the composition of its portfolio businesses to ensure it is aligned with its strategic objectives and positioned to maximize growth and return in the coming years. During fiscal 2019, the Company made a strategic decision to exit its Electronics Manufacturing group by selling all companies in that business segment on August 15, 2019. Accordingly, the Company has reported the results of the Electronics Manufacturing business as discontinued operations in the Consolidated Statements of Income and in the Consolidated Balance Sheets. These changes have been applied for all periods presented. During fiscal 2019, the Company also reached a strategic decision to exit the environmental products business which was part of Industrial Services group. Accordingly, the Company has reported the results of the environmental control products business as discontinued operations in the Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) and in the Condensed Consolidated Statements of Cash Flows. Now the Company has two business segments, consisting of (i) Advanced Technologies (AT) and (ii) Industrial Services (IS) Advanced Technologies (AT) Cemtrex’s Advanced Technologies segment delivers cutting-edge technologies in the IoT, Wearables and Smart Devices, such as the SmartDesk. Through the Company’s advanced engineering and product design, they deliver progressive design and development solutions to create impactful experiences for mobile, web, virtual and augmented reality, wearables and television as well as providing cutting edge, mission critical security and video surveillance. Through its Cemtrex VR division, the Company is developing a wide variety of applications for virtual and augmented reality markets. The AT business segment also includes the Company’s majority owned subsidiary, Vicon Industries, which provides end-to-end security solutions to meet the toughest corporate, industrial and governmental security challenges. Vicon’s products include browser-based Video monitoring systems and facial recognition systems, cameras, servers, and access control systems for every aspect of security and surveillance in industrial and commercial facilities, federal prisons, hospitals, universities, schools, and federal and state government offices. Industrial Services (IS) Cemtrex’s IS segment, offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. We install high precision equipment in a wide variety of industrial markets like automotive, printing & graphics, industrial automation, packaging, and chemicals among others. We are a leading provider of reliability-driven maintenance and contracting solutions for the machinery, packaging, printing, chemical, and other manufacturing markets. The focus is on customers seeking to achieve greater asset utilization and reliability to cut costs and increase production from existing assets, including small projects, sustaining capital, turnarounds, maintenance, specialty welding services, and high-quality scaffolding. |
Interim Statement Presentation
Interim Statement Presentation | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Interim Statement Presentation | NOTE 2 – INTERIM STATEMENT PRESENTATION Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended September 30, 2019 of Cemtrex Inc. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the Unites States (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X pursuant to the requirements of the U.S. Securities and Exchange Commission (‘SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements, the disclosure of contingent assets and liabilities in the condensed consolidated financial statements and the accompanying notes, and the reported amounts of revenues, expenses and cash flows during the periods presented. Actual amounts and results could differ from those estimates. The estimates and assumptions the Company makes are based on historical factors, current circumstances and the experience and judgment of the Company’s management. The Company evaluates its estimates and assumptions on an ongoing basis. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, Cemtrex Advanced Technologies Inc., Cemtrex Ltd., Cemtrex Technologies Pvt. Ltd., and Advanced Industrial Services, Inc. and the Company’s majority-owned subsidiary Vicon Industries, Inc. and its subsidiaries, Telesite USA, IQInVision, Vicon Industries Ltd., Vicon Deutschland GmbH, and Vicon Systems, Ltd. All inter-company balances and transactions have been eliminated in consolidation. Significant Accounting Policies and Recent Accounting Pronouncements Significant Accounting Policies Note 2 of the Notes to Consolidated Financial Statements, included in the annual report on Form 10-K for the year ended September 30, 2019, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Adopted Accounting Pronouncements Adoption of ASU 2016-02 (Topic 842) On October 1, 2019, the Company adopted ASU 2016-02 (Topic 842), “Leases”. ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. See Note 10 of these financial statements. Recently Issued Accounting Standards In August 2018, the FASB issued amended guidance, Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, to modify the disclosure requirements on fair value measurements based on the concepts in the FASB Concepts Statements, including the consideration of costs and benefits. The new standard is effective for the Company from October 1, 2020. The Company believes adoption will not have a material effect on the Company’s financial position. In December 2019, the FASB issued amended guidance, Simplifying the Accounting for Income Taxes, to remove certain exceptions to the general principles from ASC 740 - Income Taxes , Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period presentation. |
Loss Per Common Share
Loss Per Common Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | NOTE 3 – LOSS PER COMMON SHARE Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants. For the three months ended December 31, 2019 2018 Basic weighted average shares outstanding 4,086,609 1,638,776 Dilutive effect of options - - Dilutive effect of convertible debt - - Diluted weighted average shares outstanding 4,086,609 1,638,776 For the three months ended December 31, 2019 and 2018, 1,483,965 and 513,076 shares of common stock, respectively, were excluded from the computation of diluted earnings per share because the effect of their inclusion would be anti-dilutive. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 4 – SEGMENT INFORMATION The Company reports and evaluates financial information for two segments: Advanced Technologies (AT) segment, and the Industrial Services (IS) segment. The AT segment develops smart devices and provides progressive design and development solutions to create impactful experiences for mobile, web, virtual and augmented reality, wearables and television as well as providing cutting edge, mission critical security and video surveillance. The IS segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers in USA in industries such as: chemical, steel, printing, construction, & petrochemical. The following tables summarize the Company’s segment information: For the three months ended December 31, 2019 2018 Revenues from external customers Advanced Technologies $ 7,225,233 $ 467,835 Industrial Services 4,994,850 5,249,754 Total revenues $ 12,220,083 $ 5,717,589 Gross profit Advanced Technologies 3,542,787 $ 275,470 Industrial Services 1,805,699 1,912,116 Total gross profit $ 5,348,486 $ 2,187,586 Operating (loss) income Advanced Technologies $ 19,932 $ (1,230,308 ) Industrial Services 99,011 (296,184 ) Total operating income/(loss) $ 118,943 $ (1,526,492 ) Other income (expense) Advanced Technologies $ (226,815 ) $ (391,564 ) Industrial Services (31,382 ) (77,038 ) Total other income (expense) $ (258,197 ) $ (468,602 ) Depreciation and Amortization Advanced Technologies $ 384,226 $ 536,194 Industrial Services 290,127 104,021 Total depreciation and amortization $ 674,353 $ 640,215 The Company generates revenue from product sales and services from its subsidiaries located in the United States, The United Kingdom, and India. Revenue information for the Company is as follows: December 31, December 31, Revenues 2019 2018 U.S. Operations $ 11,293,075 $ 5,717,589 Non-U.S. Operations 927,008 - $ 12,220,083 $ 5,717,589 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 5 – FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy is applied to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the guidance for fair value measurements are described below: Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Our Level 1 assets include cash equivalents, banker’s acceptances, trading securities investments and investment funds. We measure trading securities investments and investment funds at quoted market prices as they are traded in an active market with sufficient volume and frequency of transactions. Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified contractual term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. Level 3 assets and liabilities include cost method investments, goodwill, intangible assets, and property, plant and equipment, which are measured at fair value using a discounted cash flow approach when they are impaired. Quantitative information for Level 3 assets and liabilities reviewed at each reporting period includes indicators of significant deterioration in the earnings performance, credit rating, asset quality, business prospects of the investee, and financial indicators of the investee’s ability to continue as a going concern. The Company’s fair value assets for the years ended December 31, 2019 and 2018 are as follows; Quoted Prices Significant in Active Other Significant Balance Markets for Observable Unobservable as of Identical Assets Inputs Inputs December 30, (Level 1) (Level 2) (Level 3) 2019 Assets Investment in trading securities (included in short-term investments) $ 114,056 $ - $ - $ 114,056 $ 114,056 $ - $ - $ 114,056 Quoted Prices Significant in Active Other Significant Balance Markets for Observable Observable as of Identical Assets Inputs Inputs December 30, (Level 1) (Level 2) (Level 3) 2018 Assets Investment in trading securities (included in short-term investments) $ - $ - $ - $ - $ - $ - $ - $ - |
Restricted Cash
Restricted Cash | 3 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | NOTE 6 – RESTRICTED CASH A subsidiary of the Company participates in a consortium in order to self-insure group care coverage for its employees. The plan is administrated by Benecon Group and the Company makes monthly deposits in a trust account to cover medical claims and any administrative costs associated with the plan. These funds, as required by the plan are restricted in nature and amounted to $1,233,269 as of December 31, 2019. The Company also records a liability for claims that have been incurred but not recorded at the end of each year. The amount of the liability is determined by Benecon Group. The liability recorded in accrued expenses amounted to $118,889 as of December 31, 2019 and September 30, 2019. |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, Net | NOTE 7 – ACCOUNTS RECEIVABLE, NET Accounts receivables, net consist of the following: December 31, September 30, 2019 2019 Accounts receivable $ 7,261,772 $ 7,065,035 Allowance for doubtful accounts (610,413 ) (606,051 ) $ 6,651,359 $ 6,458,984 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 | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory, Net | NOTE 8 – INVENTORY, NET Inventory, net, consist of the following: December 31, September 30, 2019 2019 Raw materials $ 4,100,771 $ 4,917,700 Work in progress 1,040,499 543,857 Finished goods 4,050,265 3,683,810 9,191,535 9,145,367 Less: Allowance for inventory obsolescence (3,918,643 ) (3,938,212 ) Inventory –net of allowance for inventory obsolescence $ 5,272,892 $ 5,207,155 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 9 – PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: December 31, September 30, 2019 2019 Land $ - $ - Building and leasehold improvements 1,233,732 1,233,733 Furniture and office equipment 617,855 614,569 Computers and software 5,147,574 5,166,922 Trade show display 89,330 89,330 Machinery and equipment 23,459,569 23,463,953 30,548,060 30,568,507 Less: Accumulated depreciation (13,981,494 ) (13,791,955 ) Property and equipment, net $ 16,566,566 $ 16,776,552 Depreciation expense for the three months ended December 31, 2019 and 2018 were $674,353 and $640,215, respectively. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 10 – LEASES ASC 842, “Leases”, requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at either the effective date (the “effective date method”) or the beginning of the earliest period presented (the “comparative method”) using a modified retrospective approach. Under the effective date method, the Company’s comparative period reporting is unchanged. In contrast, under the comparative method, the Company’s date of initial application is the beginning of the earliest comparative period presented, and the Topic 842 transition guidance is then applied to all comparative periods presented. Further, under either transition method, the standard includes certain practical expedients intended to ease the burden of adoption. The Company adopted ASC 842 October 1, 2019 using the effective date method and elected certain practical expedients allowing the Company not to reassess: ● whether expired or existing contracts contain leases under the new definition of a lease; ● lease classification for expired or existing leases; and ● whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. The Company entered into a financing lease for a single vehicle in the Industrial services segment with a term of 3 years. The Company enters into operating leases for its facilities in New York, United Kingdom, and India, as well as for vehicles for use in our Industrial Services segment. The operating lease terms range from 2 to 5 years. The Company excluded the renewal option on its applicable facility leases from the calculation of its right-of-use assets and lease liabilities. Finance and operating lease liabilities consist of the following: December 31, September 30, 2019 2019 Lease liabilities - current Finance leases $ 22,452 $ 22,452 Operating leases 454,356 - 476,808 22,452 Lease liabilities - net of current portion Finance leases $ 14,532 $ 20,061 Operating leases 650,939 - $ 665,471 $ 20,061 A reconciliation of undiscounted cash flows to finance and operating lease liabilities recognized in the condensed consolidated balance sheet at December 31, 2019 is set forth below: Years ending September 30, Finance leases Operating Leases Total Remainder of 2020 $ 17,808 $ 342,498 $ 360,306 2021 19,787 385,573 405,360 2022 - 269,311 269,311 2023 - 158,957 158,957 2024 - 32,265 32,265 Undiscounted lease payments 37,595 1,188,604 1,226,199 Amount representing interest (611 ) (83,309 ) (83,920 ) Discounted lease payments $ 36,984 $ 1,105,295 $ 1,142,279 Additional disclosures of lease data are set forth below: Three months ended December 31, 2019 Lease costs: Finance lease costs: Amortization of right-of-use assets 5,728 Interest on lease liabilities 208 Operating lease costs: 156,777 Total lease cost 162,713 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating leases 5,936 Finance leases 199,290 205,226 Weighted-average remaining lease term - finance leases (months) 19 Weighted-average remaining lease term - operating leases (months) 36 Weighted-average discount rate - finance leases 6.95 % Weighted-average discount rate - operating leases 6.57 % The Company used the rate implicit in the lease, where known, or its incremental borrowing rate as the rate used to discount the future lease payments. |
Prepaid and Other Current Asset
Prepaid and Other Current Assets | 3 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid and Other Current Assets | NOTE 11 – PREPAID AND OTHER CURRENT ASSETS On December 31, 2019, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $23,809, other current assets of $2,202,568. On September 30, 2019, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $530,447, and other current assets of $1,469,818. |
Other Assets
Other Assets | 3 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 12 - OTHER ASSETS As of December 31, 2019, the Company had other assets of $991,654 which was comprised of rent security of $140,246, and other assets of $851,618. As of September 30, 2019, the Company had other assets of $497,857 which was comprised of rent security of $140,246, other assets of $357,611. |
Short-Term Liabilities
Short-Term Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-Term Liabilities | NOTE 13 – SHORT-TERM LIABILITIES The Company’s subsidiaries have revolving lines of credit with various banks in order to fund operations. As of December 31, 2019, the balance of these accounts were $408,940. On September 21, 2018, the Company’s subsidiary, Vicon Industries, entered into a $5,600,000 Term Loan Agreement with NIL Funding Corporation. This note carries interest of 8.95% and has a maturity date of March 30, 2020. As of December 31, 2019, $5,425,000 of this note remains outstanding. As of December 31, 2019, there were $3,766,391 in current portion of long-term liabilities. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14 – RELATED PARTY TRANSACTIONS On August 31, 2019, the Company entered into an Asset Purchase Agreement for the sale of Griffin Filters, LLC to Ducon Technologies, Inc., which Aron Govil, the Company’s CFO, is President, for total consideration of $550,000. As of December 31, 2019, and December 31, 2019, there was $597,109 and $227,019 in receivables due from Ducon Technologies, Inc., respectively. |
Long-Term Liabilities
Long-Term Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Liabilities | NOTE 15 – LONG-TERM LIABILITIES Notes payable On October 25, 2019, the Company, issued a note payable to an independent third-party in the amount of $1,725,000. This note carries interest of 8% and matures on April 25, 2021. After deduction of an original issue discount of $225,000 and legal fees of $5,000, the Company received $1,495,000 in cash. On December 23, 2019, the Company, issued a note payable to an independent third-party in the amount of $1,725,000. This note carries interest of 8% and matures on June 23, 2021. After deduction of an original issue discount of $225,000 and legal fees of $5,000, the Company received $1,495,000 in cash. Long-term lease liabilities On October 1, 2019, the Company adopted ASU 2016-02 (Topic 842), “Leases”. ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. As of December 31, 2019, the Company has lease liabilities of $1,225,588 of which $476,808 is classified as short-term. The Company has calculated that at September 30, 2019 it would have had an additional $1,351,317 with $289,235 classified as short-term. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 16 – STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 10,000,000 shares of Preferred Stock, $0.001 par value. As of December 31, 2019, and September 30, 2019, there were 3,316,683 and 3,110,718 shares issued and outstanding, respectively. Series 1 Preferred Stock For the three months ended December 31, 2019, 105,965 shares of Series 1 Preferred Stock were issued to pay $1,059,650 worth of dividends to holders of Series 1 Preferred Stock. As of December 31, 2019, and September 30, 2019, there were 2,216,683 and 2,110,718 shares of Series 1 Preferred Stock issued and outstanding, respectively. Series A Preferred stock During the three-month period ended December 31, 2019, the Company did not issue any Series A Preferred Stock. As of December 31, 2019, and September 30, 2019, there were 1,000,000 shares of Series A Preferred Stock issued and outstanding. Series C Preferred Stock On October 3, 2019, pursuant to Article IV of our Articles of Incorporation, our Board of Directors voted to designate a class of preferred stock entitled Series C Preferred Stock, consisting of up to one hundred thousand (100,000) shares, par value $0.001. Under the Certificate of Designation, holders of Series C Preferred Stock are entitled to the number of votes equal to the result of (i) the total number of shares of Common Stock outstanding at the time of such vote multiplied by 10.01, and divided by (ii) the total number of shares of Series C Preferred Stock outstanding at the time of such vote, at each meeting of our shareholders with respect to any and all matters presented to our shareholders for their action or consideration, including the election of directors. For the three months ended December 31, 2019, 100,000 shares of Series C Preferred Stock were issued to Aron Govil, Executive Director and CFO of the Company as part of his employment agreement. In order to determine the fair market value of these shares the Company used the closing price of its Series 1 preferred stock of $0.95 on October 3, 2019. As of December 31, 2019, there were 100,000 shares of Series C Preferred Stock issued and outstanding. Common Stock The Company is authorized to issue 20,000,000 shares of common stock, $0.001 par value. As of December 31, 2019, there were 4,424,583 shares issued and outstanding and at September 30, 2019, there were 3,962,790 shares issued and outstanding. During the three months ended December 31, 2019, 105,142 shares of the Company’s common stock have been issued to satisfy $100,000 of a note payable and $30,252 interest, 338,393 shares were issued in a Securities Subscription Agreement (See below), 18,358 shares were issued to satisfy $27,583 of accounts payable. During the three months ended December 31, 2019, the Company issued an aggregate of 123,400 shares of common stock in exchange for aggregate consideration of $157,835, which was used for working capital. Subscription Rights Offering On December 4, 2019, the “Company entered into a Subscription Agreement relating to the public offering of 338,393 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share, all of which were sold by the Company (the “Offering”) to an accredited investor. The Offering price of the Shares was $1.12 per share for gross proceeds of $379,000. After deducting offering expenses of $18,950 the Company received $360,050 in net proceeds. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | NOTE 17 – SHARE-BASED COMPENSATION For the three months ended December 31, 2019 and 2018, the Company recognized $119,104 and $36,108 of share-based compensation expense on its outstanding options, respectively. As of December 31, 2019, $400,838 of unrecognized share-based compensation expense is expected to be recognized over a period of four years. Future compensation amounts will be adjusted for any change in estimated forfeitures. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 18 – COMMITMENTS AND CONTINGENCIES The Company has moved its corporate activities to New York City with a lease of 2,500 square feet of office space at a rate of $13,000 per month that expires June 30, 2020. The Company has recognized $39,000 of lease expense for this lease, for the three months ended December 31, 2019. The Company’s IS segment leases (i) approximately 25,000 square feet of warehouse space in Manchester, PA from a third party in a seven year lease at a monthly rent of $7,300, this lease terminated on January 29, 2020, upon the purchase of this property (SEE NOTE 20), the Company has recognized $21.900 of lease expense for this lease, for the three months ended December 31, 2019, (ii) approximately 43,000 square feet of office and warehouse space in York, PA from a third party in a seven-year lease at a monthly rent of $21,825 this lease terminated on January 29, 2020, upon the purchase of this property (SEE NOTE 20), the Company has recognized $65,475 of lease expense for this lease, for the three months ended December 31, 2019. Additionally, the Company’s IS segment leases various vehicles with monthly lease payments ranging from $84 to $1,979 that terminate during 2019 through 2023. The Company has recognized $67,002 of lease expense for these leases for the three months ended December 31, 2019. The Company’s AT segment leases (i) approximately 6,700 square feet of office and warehouse space in Pune, India from a third party in an five year lease at a monthly rent of $6,453 (INR456,972) expiring on February 28, 2024, the Company has recognized $19,359 of lease expense for this lease, for the three months ended December 31, 2019, (ii) approximately 27,000 square feet of office and warehouse space in Hauppauge, New York from a third party in a five-year lease at a monthly rent of $25,480 expiring on April 30, 2020, the Company has recognized $76,440 of lease expense for this lease, for the three months ended December 31, 2019, and (iii) approximately 9,400 square feet of office and warehouse space in Hampshire, England in a fifteen-year lease with at a monthly rent of $7,329 (£5,771) which expires on March 24, 2031 and contains provisions to terminate in 2021 and 2026, the Company has recognized $21,988 of lease expense for this lease for the three months ended December 31, 2019. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | During fiscal 2019, the Company reached a strategic decision to exit the environmental products business, which was part of Industrial Services group. Additionally, the Company sold its Electronics Manufacturing segment. Accordingly, the Company has reported the results of the environmental control products business and the Electronics Manufacturing segment as discontinued operations in the Consolidated Statements of Operations and in the Consolidated Balance Sheets. December 31, September 30, 2019 2019 Assets Current assets Trade receivables - related party 55,600 55,600 Total current assets 55,600 55,600 Property and equipment, net 8,761,677 8,761,677 Total Assets $ 8,817,277 $ 8,817,277 Liabilities Current liabilities Accounts payable $ 263,832 $ 263,832 Total liabilities $ 263,832 $ 263,832 Income (loss) from discontinued operations, net of tax and the loss on sale of discontinued operations, net of tax, of the ROB Cemtrex Companies and the environmental products business which are presented in total as discontinued operations, net of tax in the Company’s Consolidated Statements of Operations for the three months ended December 31, 2019 and 2018, are as follows: Three months ended December 31, 2019 2018 Total net sales $ - $ 11,566,955 Cost of sales - 6,759,419 Operating, selling, general and administrative expenses - 4,905,613 Other expenses - 16,278 Income (loss) from discontinued operations - (114,355 ) Loss on sale of discontinued operations - - Income tax provision - 66,899 Discontinued operations, net of tax - (181,254 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 20 - SUBSEQUENT EVENTS Cemtrex has evaluated subsequent events up to the date the condensed consolidated financial statements were issued. Cemtrex concluded that the following subsequent events have occurred and require recognition or disclosure in the condensed consolidated financial statements. Subscription Agreement On January 23, 2020, the Company entered into a Subscription Agreement relating to the public offering of 500,000 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share, all of which were sold by the Company (the “Offering”) to an accredited investor. The Offering price of the Shares was $1.50 per share. After offering expenses and a 5% commission paid to the Company’s placement agent, the Company received net proceeds of approximately $705,000 from the Offering. Purchase of Properties On January 28, 2020, the Company’s subsidiary, Advanced Industrial Services, Inc., completed the purchase of two buildings for a total purchase price of $3,381,433. The Company paid $905,433 in cash and acquired a mortgage from Fulton Bank in the amount of $2,476,000. This mortgage carries interest of LIBOR plus 2.50% per annum and is payable on January 28, 2040. This loan carries loan covenants similar to covenants on The Company’s other loans from Fulton Bank. Purchase of Series 1 Preferred Shares. During January and February of 2020, the Company purchased 129,223 shares of its Series 1 Preferred Stock on the open market at an average price per share of $1.103, for an aggregate cost of approximately $142,592. The Company intends to retire these shares. |
Interim Statement Presentation
Interim Statement Presentation (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended September 30, 2019 of Cemtrex Inc. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the Unites States (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X pursuant to the requirements of the U.S. Securities and Exchange Commission (‘SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements, the disclosure of contingent assets and liabilities in the condensed consolidated financial statements and the accompanying notes, and the reported amounts of revenues, expenses and cash flows during the periods presented. Actual amounts and results could differ from those estimates. The estimates and assumptions the Company makes are based on historical factors, current circumstances and the experience and judgment of the Company’s management. The Company evaluates its estimates and assumptions on an ongoing basis. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, Cemtrex Advanced Technologies Inc., Cemtrex Ltd., Cemtrex Technologies Pvt. Ltd., and Advanced Industrial Services, Inc. and the Company’s majority-owned subsidiary Vicon Industries, Inc. and its subsidiaries, Telesite USA, IQInVision, Vicon Industries Ltd., Vicon Deutschland GmbH, and Vicon Systems, Ltd. All inter-company balances and transactions have been eliminated in consolidation. |
Significant Accounting Policies and Recent Accounting Pronouncements | Significant Accounting Policies and Recent Accounting Pronouncements Significant Accounting Policies Note 2 of the Notes to Consolidated Financial Statements, included in the annual report on Form 10-K for the year ended September 30, 2019, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Adopted Accounting Pronouncements Adoption of ASU 2016-02 (Topic 842) On October 1, 2019, the Company adopted ASU 2016-02 (Topic 842), “Leases”. ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. See Note 10 of these financial statements. Recently Issued Accounting Standards In August 2018, the FASB issued amended guidance, Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, to modify the disclosure requirements on fair value measurements based on the concepts in the FASB Concepts Statements, including the consideration of costs and benefits. The new standard is effective for the Company from October 1, 2020. The Company believes adoption will not have a material effect on the Company’s financial position. In December 2019, the FASB issued amended guidance, Simplifying the Accounting for Income Taxes, to remove certain exceptions to the general principles from ASC 740 - Income Taxes , Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period presentation. |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Diluted net income per common share is computed by dividing net income by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants. For the three months ended December 31, 2019 2018 Basic weighted average shares outstanding 4,086,609 1,638,776 Dilutive effect of options - - Dilutive effect of convertible debt - - Diluted weighted average shares outstanding 4,086,609 1,638,776 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following tables summarize the Company’s segment information: For the three months ended December 31, 2019 2018 Revenues from external customers Advanced Technologies $ 7,225,233 $ 467,835 Industrial Services 4,994,850 5,249,754 Total revenues $ 12,220,083 $ 5,717,589 Gross profit Advanced Technologies 3,542,787 $ 275,470 Industrial Services 1,805,699 1,912,116 Total gross profit $ 5,348,486 $ 2,187,586 Operating (loss) income Advanced Technologies $ 19,932 $ (1,230,308 ) Industrial Services 99,011 (296,184 ) Total operating income/(loss) $ 118,943 $ (1,526,492 ) Other income (expense) Advanced Technologies $ (226,815 ) $ (391,564 ) Industrial Services (31,382 ) (77,038 ) Total other income (expense) $ (258,197 ) $ (468,602 ) Depreciation and Amortization Advanced Technologies $ 384,226 $ 536,194 Industrial Services 290,127 104,021 Total depreciation and amortization $ 674,353 $ 640,215 |
Schedule of Revenue from Product Sales and Services from its Subsidiaries | Revenue information for the Company is as follows: December 31, December 31, Revenues 2019 2018 U.S. Operations $ 11,293,075 $ 5,717,589 Non-U.S. Operations 927,008 - $ 12,220,083 $ 5,717,589 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets | The Company’s fair value assets for the years ended December 31, 2019 and 2018 are as follows; Quoted Prices Significant in Active Other Significant Balance Markets for Observable Unobservable as of Identical Assets Inputs Inputs December 30, (Level 1) (Level 2) (Level 3) 2019 Assets Investment in trading securities (included in short-term investments) $ 114,056 $ - $ - $ 114,056 $ 114,056 $ - $ - $ 114,056 Quoted Prices Significant in Active Other Significant Balance Markets for Observable Observable as of Identical Assets Inputs Inputs December 30, (Level 1) (Level 2) (Level 3) 2018 Assets Investment in trading securities (included in short-term investments) $ - $ - $ - $ - $ - $ - $ - $ - |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivables, net consist of the following: December 31, September 30, 2019 2019 Accounts receivable $ 7,261,772 $ 7,065,035 Allowance for doubtful accounts (610,413 ) (606,051 ) $ 6,651,359 $ 6,458,984 |
Inventory, Net (Tables)
Inventory, Net (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net | Inventory, net, consist of the following: December 31, September 30, 2019 2019 Raw materials $ 4,100,771 $ 4,917,700 Work in progress 1,040,499 543,857 Finished goods 4,050,265 3,683,810 9,191,535 9,145,367 Less: Allowance for inventory obsolescence (3,918,643 ) (3,938,212 ) Inventory –net of allowance for inventory obsolescence $ 5,272,892 $ 5,207,155 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment are summarized as follows: December 31, September 30, 2019 2019 Land $ - $ - Building and leasehold improvements 1,233,732 1,233,733 Furniture and office equipment 617,855 614,569 Computers and software 5,147,574 5,166,922 Trade show display 89,330 89,330 Machinery and equipment 23,459,569 23,463,953 30,548,060 30,568,507 Less: Accumulated depreciation (13,981,494 ) (13,791,955 ) Property and equipment, net $ 16,566,566 $ 16,776,552 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Finance and Operating Lease Liabilities | Finance and operating lease liabilities consist of the following: December 31, September 30, 2019 2019 Lease liabilities - current Finance leases $ 22,452 $ 22,452 Operating leases 454,356 - 476,808 22,452 Lease liabilities - net of current portion Finance leases $ 14,532 $ 20,061 Operating leases 650,939 - $ 665,471 $ 20,061 |
Schedule of Reconciliation of Undiscounted Cash Flows to Finance and Operating Lease Liabilities | A reconciliation of undiscounted cash flows to finance and operating lease liabilities recognized in the condensed consolidated balance sheet at December 31, 2019 is set forth below: Years ending September 30, Finance leases Operating Leases Total Remainder of 2020 $ 17,808 $ 342,498 $ 360,306 2021 19,787 385,573 405,360 2022 - 269,311 269,311 2023 - 158,957 158,957 2024 - 32,265 32,265 Undiscounted lease payments 37,595 1,188,604 1,226,199 Amount representing interest (611 ) (83,309 ) (83,920 ) Discounted lease payments $ 36,984 $ 1,105,295 $ 1,142,279 |
Schedule of Lease Costs | Additional disclosures of lease data are set forth below: Three months ended December 31, 2019 Lease costs: Finance lease costs: Amortization of right-of-use assets 5,728 Interest on lease liabilities 208 Operating lease costs: 156,777 Total lease cost 162,713 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating leases 5,936 Finance leases 199,290 205,226 Weighted-average remaining lease term - finance leases (months) 19 Weighted-average remaining lease term - operating leases (months) 36 Weighted-average discount rate - finance leases 6.95 % Weighted-average discount rate - operating leases 6.57 % |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | December 31, September 30, 2019 2019 Assets Current assets Trade receivables - related party 55,600 55,600 Total current assets 55,600 55,600 Property and equipment, net 8,761,677 8,761,677 Total Assets $ 8,817,277 $ 8,817,277 Liabilities Current liabilities Accounts payable $ 263,832 $ 263,832 Total liabilities $ 263,832 $ 263,832 Income (loss) from discontinued operations, net of tax and the loss on sale of discontinued operations, net of tax, of the ROB Cemtrex Companies and the environmental products business which are presented in total as discontinued operations, net of tax in the Company’s Consolidated Statements of Operations for the three months ended December 31, 2019 and 2018, are as follows: Three months ended December 31, 2019 2018 Total net sales $ - $ 11,566,955 Cost of sales - 6,759,419 Operating, selling, general and administrative expenses - 4,905,613 Other expenses - 16,278 Income (loss) from discontinued operations - (114,355 ) Loss on sale of discontinued operations - - Income tax provision - 66,899 Discontinued operations, net of tax - (181,254 ) |
Loss Per Common Share (Details
Loss Per Common Share (Details Narrative) - shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Anti dilutive common stock excluded from the computation of diluted earnings per share | 1,483,965 | 513,076 |
Loss Per Common Share - Schedul
Loss Per Common Share - Schedule of Weighted Average Number of Shares (Details) - shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Basic weighted average shares outstanding | 4,086,609 | 1,638,776 |
Dilutive effect of options | ||
Dilutive effect of convertible debt | ||
Diluted weighted average shares outstanding | 4,086,609 | 1,638,776 |
Segment Information (Details Na
Segment Information (Details Narrative) | 3 Months Ended |
Dec. 31, 2019Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenues | $ 12,220,083 | $ 5,717,589 |
Total gross profit | 5,348,486 | 2,187,586 |
Total operating income/(loss) | 118,943 | (1,526,492) |
Total other income (expense) | (258,197) | (468,602) |
Total depreciation and amortization | 674,353 | 640,215 |
Advanced Technologies [Member] | ||
Total revenues | 7,225,233 | 467,835 |
Total gross profit | 3,542,787 | 275,470 |
Total operating income/(loss) | 19,932 | (1,230,308) |
Total other income (expense) | (226,815) | (391,564) |
Total depreciation and amortization | 384,226 | 536,194 |
Industrial Services [Member] | ||
Total revenues | 4,994,850 | 5,249,754 |
Total gross profit | 1,805,699 | 1,912,116 |
Total operating income/(loss) | 99,011 | (296,184) |
Total other income (expense) | (31,382) | (77,038) |
Total depreciation and amortization | $ 290,127 | $ 104,021 |
Segment Information - Schedul_2
Segment Information - Schedule of Revenue from Product Sales and Services from its Subsidiaries (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 12,220,083 | $ 5,717,589 |
United States [Member] | ||
Revenues | 11,293,075 | 5,717,589 |
Non-United States [Member] | ||
Revenues | $ 927,008 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Investment in trading securities | $ 114,056 | |
Short-term Investments [Member] | ||
Investment in trading securities | 114,056 | |
Quoted Prices in Active Markets for Identical Assets [Member] | ||
Investment in trading securities | 114,056 | |
Quoted Prices in Active Markets for Identical Assets [Member] | Short-term Investments [Member] | ||
Investment in trading securities | 114,056 | |
Significant Other Observable Inputs [Member] | ||
Investment in trading securities | ||
Significant Other Observable Inputs [Member] | Short-term Investments [Member] | ||
Investment in trading securities | ||
Significant Unobservable Inputs [Member] | ||
Investment in trading securities | ||
Significant Unobservable Inputs [Member] | Short-term Investments [Member] | ||
Investment in trading securities |
Restricted Cash (Details Narrat
Restricted Cash (Details Narrative) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $ 1,233,269 | $ 1,088,091 |
Accrued expenses | $ 118,889 | $ 118,889 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 7,261,772 | $ 7,065,035 |
Allowance for doubtful accounts | (610,413) | (606,051) |
Accounts receivables, net | $ 6,651,359 | $ 6,458,984 |
Inventory, Net - Schedule of In
Inventory, Net - Schedule of Inventory, Net (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,100,771 | $ 4,917,700 |
Work in progress | 1,040,499 | 543,857 |
Finished goods | 4,050,265 | 3,683,810 |
Inventory, gross | 9,191,535 | 9,145,367 |
Less: Allowance for inventory obsolescence | (3,918,643) | (3,938,212) |
Inventory -net of allowance for inventory obsolescence | $ 5,272,892 | $ 5,207,155 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 674,353 | $ 640,215 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Property and equipment, gross | $ 30,548,060 | $ 30,568,507 |
Less: Accumulated depreciation | (13,981,494) | (13,791,955) |
Property and equipment, net | 16,566,566 | 16,776,552 |
Land [Member] | ||
Property and equipment, gross | ||
Building and Leasehold Improvements [Member] | ||
Property and equipment, gross | 1,233,732 | 1,233,733 |
Furniture and Office Equipment [Member] | ||
Property and equipment, gross | 617,855 | 614,569 |
Computers and Software [Member] | ||
Property and equipment, gross | 5,147,574 | 5,166,922 |
Trade Show Display [Member] | ||
Property and equipment, gross | 89,330 | 89,330 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | $ 23,459,569 | $ 23,463,953 |
Leases (Details Narrative)
Leases (Details Narrative) | 3 Months Ended |
Dec. 31, 2019 | |
Lease description | The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. |
Minimum [Member] | |
Operating lease term | 2 years |
Maximum [Member] | |
Operating lease term | 5 years |
Industrial Services [Member] | |
Finance lease term | 3 years |
Leases - Summary of Finance and
Leases - Summary of Finance and Operating Lease Liabilities (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Leases [Abstract] | ||
Lease liabilities - current, Finance leases | $ 22,452 | $ 22,452 |
Lease liabilities - current, Operating leases | 454,356 | |
Lease liabilities - current | 476,808 | 22,718 |
Lease liabilities - net of current portion, Finance leases | 14,532 | 20,061 |
Lease liabilities - net of current portion, Operating leases | 650,939 | |
Lease liabilities - net of current portion | $ 665,471 | $ 20,061 |
Leases - Schedule of Reconcilia
Leases - Schedule of Reconciliation of Undiscounted Cash Flows to Finance and Operating Lease Liabilities (Details) | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Finance leases, Remainder of 2020 | $ 17,808 |
Finance leases, 2021 | 19,787 |
Finance leases, 2022 | |
Finance leases, 2023 | |
Finance leases, 2024 | |
Finance leases, Undiscounted lease payments | 37,595 |
Finance leases, Amount representing interest | (611) |
Finance leases, Discounted lease payments | 36,984 |
Operating Leases, Remainder of 2020 | 342,498 |
Operating Leases, 2021 | 385,573 |
Operating Leases, 2022 | 269,311 |
Operating Leases, 2023 | 158,957 |
Operating Leases, 2024 | 32,265 |
Operating Leases, Undiscounted lease payments | 1,188,604 |
Operating Leases, Amount representing interest | (83,309) |
Operating Leases, Discounted lease payments | 1,105,295 |
Total, Remainder of 2020 | 360,306 |
Total, 2021 | 405,360 |
Total, 2022 | 269,311 |
Total, 2023 | 158,957 |
Total, 2024 | 32,265 |
Total, Undiscounted lease payments | 1,226,199 |
Total, Amount representing interest | (83,920) |
Total, Discounted lease payments | $ 1,142,279 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Finance lease costs: Amortization of right-of-use assets | $ 5,728 |
Finance lease costs: Interest on lease liabilities | 208 |
Operating lease costs: | 156,777 |
Total lease cost | 162,713 |
Cash paid for amounts included in the measurement of lease liabilities: Operating leases | 5,936 |
Cash paid for amounts included in the measurement of lease liabilities: Finance leases | 199,290 |
Cash paid for amounts included in the measurement of lease liabilities: Total | $ 205,226 |
Weighted-average remaining lease term - finance leases (months) | 19 months |
Weighted-average remaining lease term - operating leases (months) | 36 months |
Weighted-average discount rate - finance leases | 6.95% |
Weighted-average discount rate - operating leases | 6.57% |
Prepaid and Other Current Ass_2
Prepaid and Other Current Assets (Details Narrative) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepayments on inventory purchases | $ 23,809 | $ 530,447 |
Other assets, current | $ 2,202,568 | $ 1,469,818 |
Other Assets (Details Narrative
Other Assets (Details Narrative) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets | $ 991,654 | $ 497,857 |
Rent security | 140,246 | 140,246 |
Other assets excluding rent security | $ 851,618 | $ 357,611 |
Short-Term Liabilities (Details
Short-Term Liabilities (Details Narrative) - USD ($) | Dec. 31, 2019 | Sep. 21, 2018 |
Line of credit | $ 408,940 | |
Long-term liabilities, current portion | 3,766,391 | |
Loan Agreement [Member] | Vicon Industries, Inc. [Member] | NIL Funding Corporation [Member] | ||
Debt instrument, face amount | $ 5,600,000 | |
Debt instrument, interest rate | 8.95% | |
Note payable | $ 5,425,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Aug. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Trade receivables related parties | $ 597,109 | $ 227,019 | ||
Ducon Technologies, Inc [Member] | ||||
Trade receivables related parties | $ 597,109 | $ 227,019 | ||
Asset Purchase Agreement [Member] | Griffin Filters, LLC [Member] | Ducon Technologies, Inc [Member] | Aron Govil [Member] | ||||
Consideration amount | $ 550,000 |
Long-Term Liabilities (Details
Long-Term Liabilities (Details Narrative) - USD ($) | Dec. 23, 2019 | Oct. 25, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 |
Proceeds from notes payable | $ 2,990,000 | ||||
Lease liabilities | 1,225,588 | $ 1,351,317 | |||
Short term lease payments | $ 476,808 | $ 289,235 | |||
Independent Third Party [Member] | |||||
Note payable | $ 1,725,000 | $ 1,725,000 | |||
Debt instrument, interest rate | 8.00% | 8.00% | |||
Debt instrument, maturity date | Jun. 23, 2021 | Apr. 25, 2021 | |||
Original issue discount | $ 225,000 | $ 225,000 | |||
Legal fees | 5,000 | 5,000 | |||
Proceeds from notes payable | $ 1,495,000 | $ 1,495,000 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Dec. 04, 2019 | Oct. 03, 2019 | Dec. 31, 2019 | Sep. 30, 2019 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Preferred stock, shares issued | 3,316,683 | 3,110,718 | ||
Preferred stock, shares outstanding | 3,316,683 | 3,110,718 | ||
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 | 4,424,583 | 3,962,790 | ||
Common stock, shares, outstanding | 4,424,583 | 3,962,790 | ||
Accounts payable | $ 3,318,695 | $ 4,236,945 | ||
Common Stock [Member] | ||||
Number of common stock shares issued | 123,400 | |||
Number of common shares value | $ 157,835 | |||
Notes Payable [Member] | ||||
Number of common stock shares issued | 105,142 | |||
Number of common shares value | $ 100,000 | |||
Interest payable | $ 30,252 | |||
Securities Subscription Agreement [Member] | ||||
Number of common stock shares issued | 338,393 | |||
Number of shares issued to satisfy accounts payable | 18,358 | |||
Accounts payable | $ 27,583 | |||
Accredited Investor [Member] | Subscription Agreement [Member] | Public Offering [Member] | ||||
Number of common stock shares issued | 338,393 | |||
Stock price per share | $ 1.12 | |||
Common stock, par or stated value per share | $ 0.001 | |||
Gross proceeds from public offering | $ 379,000 | |||
Offering expenses | 18,950 | |||
Proceeds from public offering | $ 360,050 | |||
Series 1 Preferred Stock [Member] | ||||
Preferred stock, shares issued | 2,216,683 | 2,110,718 | ||
Preferred stock, shares outstanding | 2,216,683 | 2,110,718 | ||
Shares of preferred stock for dividends | 105,965 | |||
Dividends paid to preferred shareholders | $ 1,059,650 | |||
Stock price per share | $ 0.95 | |||
Series A Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Preferred stock, shares issued | 1,000,000 | 1,000,000 | ||
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 | ||
Number of common stock shares issued | ||||
Series C Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 100,000 | 100,000 | 100,000 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares issued | 100,000 | 100,000 | ||
Preferred stock, shares outstanding | 100,000 | 100,000 | ||
Preferred stock, voting rights | Under the Certificate of Designation, holders of Series C Preferred Stock are entitled to the number of votes equal to the result of (i) the total number of shares of Common Stock outstanding at the time of such vote multiplied by 10.01, and divided by (ii) the total number of shares of Series C Preferred Stock outstanding at the time of such vote, at each meeting of our shareholders with respect to any and all matters presented to our shareholders for their action or consideration, including the election of directors. | |||
Series C Preferred Stock [Member] | Executive Director and CFO [Member] | Employment Agreement [Member] | ||||
Number of common stock shares issued | 100,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 119,104 | $ 36,108 |
Unrecognized compensation cost | $ 400,838 | |
Unrecognized compensation expense, expected to be recognized period | 4 years |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - 3 months ended Dec. 31, 2019 | USD ($)ft² | EUR (€)ft² | INR (₨)ft² |
Commitments and Contingencies Disclosure [Line Items] | |||
Area of land | ft² | 2,500 | 2,500 | 2,500 |
Monthly lease rent payment | $ 13,000 | ||
Lease expiration date | Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2020 |
Lease expense | $ 39,000 | ||
Operating lease termination description | The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. | The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. | The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. |
Minimum [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Lease term | 2 years | 2 years | 2 years |
Maximum [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Lease term | 5 years | 5 years | 5 years |
IS Segment [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Lease expense | $ 67,002 | ||
Operating lease termination description | Terminate during 2019 through 2023. | Terminate during 2019 through 2023. | Terminate during 2019 through 2023. |
IS Segment [Member] | Minimum [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Monthly lease rent payment | $ 84 | ||
IS Segment [Member] | Maximum [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Monthly lease rent payment | $ 1,979 | ||
IS Segment [Member] | Manchester PA [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Area of land | ft² | 25,000 | 25,000 | 25,000 |
Monthly lease rent payment | $ 7,300 | ||
Lease expiration date | Jan. 29, 2020 | Jan. 29, 2020 | Jan. 29, 2020 |
Lease expense | $ 21,900 | ||
Lease term | 7 years | 7 years | 7 years |
IS Segment [Member] | York, PA [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Area of land | ft² | 43,000 | 43,000 | 43,000 |
Monthly lease rent payment | $ 21,825 | ||
Lease expiration date | Jan. 29, 2020 | Jan. 29, 2020 | Jan. 29, 2020 |
Lease expense | $ 65,475 | ||
Lease term | 7 years | 7 years | 7 years |
Advanced Technologies [Member] | Pune, India [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Area of land | ft² | 6,700 | 6,700 | 6,700 |
Monthly lease rent payment | $ 6,453 | ||
Lease expiration date | Feb. 28, 2024 | Feb. 28, 2024 | Feb. 28, 2024 |
Lease expense | $ 19,359 | ||
Lease term | 5 years | 5 years | 5 years |
Advanced Technologies [Member] | Pune, India [Member] | INR [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Monthly lease rent payment | ₨ | ₨ 456,972 | ||
Advanced Technologies [Member] | Hauppauge, New York [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Area of land | ft² | 27,000 | 27,000 | 27,000 |
Monthly lease rent payment | $ 25,480 | ||
Lease expiration date | Apr. 30, 2020 | Apr. 30, 2020 | Apr. 30, 2020 |
Lease expense | $ 76,440 | ||
Lease term | 5 years | 5 years | 5 years |
Advanced Technologies [Member] | Hampshire, England [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Area of land | ft² | 9,400 | 9,400 | 9,400 |
Monthly lease rent payment | $ 7,329 | ||
Lease expiration date | Mar. 24, 2031 | Mar. 24, 2031 | Mar. 24, 2031 |
Lease expense | $ 21,988 | ||
Lease term | 15 years | 15 years | 15 years |
Operating lease termination description | Terminate in 2021 and 2026. | Terminate in 2021 and 2026. | Terminate in 2021 and 2026. |
Advanced Technologies [Member] | Hampshire, England [Member] | EUR [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Monthly lease rent payment | € | € 5,771 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Disposal Groups, Including Discontinued Operations (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Trade receivables - related party | $ 55,600 | $ 55,600 | |
Total current assets | 55,600 | 55,600 | |
Property and equipment, net | 8,761,677 | 8,761,677 | |
Total Assets | 8,817,277 | 8,817,277 | |
Accounts payable | 263,832 | 263,832 | |
Total liabilities | 263,832 | $ 263,832 | |
Total net sales | $ 11,566,955 | ||
Cost of sales | 6,759,419 | ||
Operating, selling, general and administrative expenses | 4,905,613 | ||
Other expenses | 16,278 | ||
Income (loss) from discontinued operations | (114,355) | ||
Loss on sale of discontinued operations | |||
Income tax provision | 66,899 | ||
Discontinued operations, net of tax | $ (181,254) |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Jan. 28, 2020 | Jan. 23, 2020 | Dec. 04, 2019 | Feb. 29, 2020 | Dec. 31, 2019 | Oct. 03, 2019 | Sep. 30, 2019 |
Common stock, par or stated value per share | $ 0.001 | $ 0.001 | |||||
Series 1 Preferred Stock [Member] | |||||||
Shares per share | $ 0.95 | ||||||
Subscription Agreement [Member] | Public Offering [Member] | Accredited Investor [Member] | |||||||
Number of common stock shares issued | 338,393 | ||||||
Common stock, par or stated value per share | $ 0.001 | ||||||
Shares per share | $ 1.12 | ||||||
Proceeds from public offering | $ 360,050 | ||||||
Subsequent Event [Member] | Series 1 Preferred Stock [Member] | |||||||
Shares per share | $ 1.103 | ||||||
Shares purchased | 129,223 | ||||||
Shares purchased, value | $ 142,592 | ||||||
Subsequent Event [Member] | Advanced Industrial Services, Inc [Member] | Two Buildings [Member] | |||||||
Purchase price | $ 3,381,433 | ||||||
Payments to purchase building | 905,433 | ||||||
Subsequent Event [Member] | Advanced Industrial Services, Inc [Member] | Two Buildings [Member] | Fulton Bank [Member] | |||||||
Acquired mortage | $ 2,476,000 | ||||||
Maturity date | Jan. 28, 2040 | ||||||
Subsequent Event [Member] | Advanced Industrial Services, Inc [Member] | Two Buildings [Member] | Fulton Bank [Member] | LIBOR [Member] | |||||||
Interest rate | 2.50% | ||||||
Subsequent Event [Member] | Subscription Agreement [Member] | Public Offering [Member] | Accredited Investor [Member] | |||||||
Number of common stock shares issued | 500,000 | ||||||
Common stock, par or stated value per share | $ 0.001 | ||||||
Shares per share | $ 1.50 | ||||||
Commission paid to placement agent, percentage | 5.00% | ||||||
Proceeds from public offering | $ 705,000 |