Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2021 | Feb. 15, 2022 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 001-37464 | |
Entity Registrant Name | CEMTREX, INC. | |
Entity Central Index Key | 0001435064 | |
Entity Tax Identification Number | 30-0399914 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 276 Greenpoint Ave | |
Entity Address, Address Line Two | Suite 208 | |
Entity Address, City or Town | Brooklyn | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11222 | |
City Area Code | 631 | |
Local Phone Number | 756-9116 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,673,210 | |
Common Stock [Member] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | CETX | |
Security Exchange Name | NASDAQ | |
Series 1 Preferred Stock [Member] | ||
Title of 12(b) Security | Series 1 Preferred Stock | |
Trading Symbol | CETXP | |
Security Exchange Name | NASDAQ | |
Series 1 Warrants [Member] | ||
Title of 12(b) Security | Series 1 Warrants | |
Trading Symbol | CETXW | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Current assets | ||
Cash and equivalents | $ 10,338,978 | $ 15,426,976 |
Restricted cash | 1,633,452 | 1,759,347 |
Short-term investments | 14,960 | 14,981 |
Trade receivables, net | 5,547,749 | 7,810,896 |
Trade receivables - related party | 1,492,321 | 1,487,155 |
Inventory –net of allowance for inventory obsolescence | 7,085,698 | 5,657,287 |
Prepaid expenses and other assets | 2,727,511 | 2,585,652 |
Total current assets | 28,840,669 | 34,742,294 |
Property and equipment, net | 6,736,871 | 6,738,944 |
Right-of-use assets | 2,725,616 | 2,940,127 |
Goodwill | 7,821,283 | 7,821,283 |
Other | 697,624 | 697,240 |
Total Assets | 46,822,063 | 52,939,888 |
Current liabilities | ||
Accounts payable | 3,512,267 | 4,235,002 |
Short-term liabilities | 7,591,892 | 9,977,972 |
Lease liabilities - short-term | 789,346 | 830,791 |
Deposits from customers | 722,690 | 536,220 |
Accrued expenses | 1,478,746 | 1,621,053 |
Deferred revenue | 1,621,244 | 2,004,170 |
Accrued income taxes | 323,371 | 448,194 |
Total current liabilities | 16,039,556 | 19,653,402 |
Long-term liabilities | ||
Loans payable to bank | 486,262 | 767,279 |
Long-term lease liabilities | 1,936,270 | 2,017,408 |
Notes payable | 2,400,000 | 2,350,000 |
Mortgage payable | 2,232,812 | 2,257,785 |
Other long-term liabilities | 750,905 | 839,171 |
Paycheck Protection Program Loans | 60,700 | 1,032,200 |
Deferred Revenue - long-term | 497,771 | 467,967 |
Total long-term liabilities | 8,364,720 | 9,731,810 |
Total liabilities | 24,404,276 | 29,385,212 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock, $0.001 par value, 50,000,000 shares authorized, 23,673,210 shares issued and outstanding at December 31, 2021 and 20,782,194 shares issued and outstanding at September 30, 2021 | 23,673 | 20,782 |
Additional paid-in capital | 65,058,290 | 61,727,834 |
Retained earnings (accumulated deficit) | (46,386,013) | (41,908,062) |
Treasury stock at cost | (148,291) | (148,291) |
Accumulated other comprehensive income (loss) | 2,955,944 | 2,896,452 |
Total Cemtrex stockholders’ equity | 21,505,633 | 22,590,650 |
Non-controlling interest | 912,154 | 964,026 |
Total liabilities and shareholders’ equity | 46,822,063 | 52,939,888 |
Series 1 Preferred Stock [Member] | ||
Shareholders’ equity | ||
Preferred stock , Value | 1,980 | 1,885 |
Series C Preferred Stock [Member] | ||
Shareholders’ equity | ||
Preferred stock , Value | $ 50 | $ 50 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Sep. 30, 2021 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 2,029,753 | 1,935,151 |
Preferred stock, shares outstanding | 2,029,753 | 1,935,151 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 23,673,210 | 20,782,194 |
Common stock, shares outstanding | 23,673,210 | 20,782,194 |
Series 1 Preferred Stock [Member] | ||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 1,979,753 | 1,885,151 |
Preferred stock, shares outstanding | 1,979,753 | 1,885,151 |
Preferred Stock, Liquidation Preference Per Share | $ 10 | $ 10 |
Series C Preferred Stock [Member] | ||
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 10,672,489 | $ 8,836,076 |
Cost of revenues | 6,803,295 | 4,830,606 |
Gross profit | 3,869,194 | 4,005,470 |
Operating expenses | ||
General and administrative | 6,612,004 | 5,417,196 |
Research and development | 1,311,713 | 634,225 |
Total operating expenses | 7,923,717 | 6,051,421 |
Operating income/(loss) | (4,054,523) | (2,045,951) |
Other income/(expense) | ||
Other income/(expense) | 930,169 | 950,988 |
Interest Expense | (1,405,469) | (608,941) |
Total other income/(expense), net | (475,300) | 342,047 |
Net loss before income taxes | (4,529,823) | (1,703,904) |
Income tax benefit/(expense) | (28,954) | |
Net income/(loss) | (4,529,823) | (1,732,858) |
Less income/(loss) in noncontrolling interest | (51,872) | (40,247) |
Net income/(loss) attributable to Cemtrex, Inc. shareholders | (4,477,951) | (1,692,611) |
Other comprehensive income/(loss) | ||
Net income/(loss) | (4,529,823) | (1,732,858) |
Foreign currency translation gain/(loss) | 59,492 | 37,864 |
Comprehensive income/(loss) | (4,470,331) | (1,694,994) |
Less comprehensive income/(loss) attributable to noncontrolling interest | (51,872) | (40,247) |
Comprehensive income/(loss) attributable to Cemtrex, Inc. shareholders | $ (4,418,459) | $ (1,654,747) |
Income/(loss) Per Share-Basic | $ (0.19) | $ (0.09) |
Income/(loss) Per Share-Diluted | $ (0.19) | $ (0.09) |
Weighted Average Number of Shares-Basic | 23,097,141 | 17,842,664 |
Weighted Average Number of Shares-Diluted | 23,097,141 | 17,842,664 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member]Series 1 Preferred Stock [Member] | Preferred Stock [Member]Series A Preferred Stock [Member] | Preferred Stock [Member]Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Total | Noncontrolling Interest [Member] |
Beginning balance, value at Sep. 30, 2020 | $ 2,157 | $ 1,000 | $ 100 | $ 17,623 | $ 60,221,766 | $ (34,100,067) | $ (148,291) | $ 1,812,457 | $ 27,806,745 | $ 1,042,300 |
Beginning balance, shares at Sep. 30, 2020 | 2,156,784 | 1,000,000 | 100,000 | 17,622,539 | ||||||
Foreign currency translation gain/(loss) | 37,864 | 37,864 | ||||||||
Share-based compensation | 16,071 | 16,071 | ||||||||
Shares issued to pay notes payable | $ 345 | 407,507 | 407,852 | |||||||
Shares issued to pay notes payable, shares | 345,638 | |||||||||
Dividends paid in Series 1 preferred shares | $ 108 | (108) | ||||||||
Dividends paid in Series 1 preferred shares, shares | 108,169 | |||||||||
Income/(loss) attributable to noncontrolling interest | (40,247) | |||||||||
Net loss | (1,692,611) | (1,692,611) | ||||||||
Ending balance, value at Dec. 31, 2020 | $ 2,265 | $ 1,000 | $ 100 | $ 17,968 | 60,645,236 | (35,792,678) | (148,291) | 1,850,321 | 26,575,921 | 1,002,053 |
Ending balance, shares at Dec. 31, 2020 | 2,264,953 | 1,000,000 | 100,000 | 17,968,177 | ||||||
Beginning balance, value at Sep. 30, 2021 | $ 1,885 | $ 50 | $ 20,782 | 61,727,834 | (41,908,062) | (148,291) | 2,896,452 | 22,590,650 | 964,026 | |
Beginning balance, shares at Sep. 30, 2021 | 1,885,151 | 50,000 | 20,782,194 | |||||||
Foreign currency translation gain/(loss) | 59,492 | 59,492 | ||||||||
Share-based compensation | 45,371 | 45,371 | ||||||||
Shares issued to pay notes payable | $ 2,891 | 3,285,180 | 3,288,071 | |||||||
Shares issued to pay notes payable, shares | 2,891,016 | |||||||||
Dividends paid in Series 1 preferred shares | $ 95 | (95) | ||||||||
Dividends paid in Series 1 preferred shares, shares | 94,602 | |||||||||
Income/(loss) attributable to noncontrolling interest | (51,872) | |||||||||
Net loss | (4,477,951) | (4,477,951) | ||||||||
Ending balance, value at Dec. 31, 2021 | $ 1,980 | $ 50 | $ 23,673 | $ 65,058,290 | $ (46,386,013) | $ (148,291) | $ 2,955,944 | $ 21,505,633 | $ 912,154 | |
Ending balance, shares at Dec. 31, 2021 | 1,979,753 | 50,000 | 23,673,210 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income/(loss) | $ (4,529,823) | $ (1,732,858) |
Adjustments to reconcile net loss to net cash provided/(used) by operating activities: | ||
Depreciation and amortization | 262,833 | 360,578 |
(Gain)/loss on disposal of property and equipment | (27,170) | 4,050 |
Amortization of right-of-use assets | 214,511 | 186,777 |
Change in allowance for doubtful accounts | 94,588 | (3,979) |
Share-based compensation | 45,371 | 16,069 |
Income tax expense/ (benefit) | (28,954) | |
Interest expense paid in equity shares | 821,592 | 87,099 |
Accrued interest on notes payable | 132,162 | 126,390 |
Amortization of original issue discounts on notes payable | 325,000 | 250,000 |
Gain/loss on marketable securities | (21) | 942,923 |
Discharge of Paycheck Protection Program Loans | (971,500) | |
Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: | ||
Accounts receivable | (2,168,559) | (2,213,132) |
Accounts receivable - related party | 5,166 | 243,006 |
Inventory | 1,428,411 | 632,610 |
Prepaid expenses and other current assets | 141,859 | (273,705) |
Other assets | 384 | (141,058) |
Other liabilities | (88,266) | 7,856 |
Accounts payable | (722,735) | (702,285) |
Operating lease liabilities | (122,583) | (192,534) |
Deposits from customers | 186,470 | 3,539 |
Accrued expenses | (142,307) | (38,891) |
Deferred revenue | (353,122) | (156,166) |
Income taxes payable | (124,823) | (74,099) |
Net cash used by operating activities | (4,352,702) | (1,086,152) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (301,327) | (14,807) |
Proceeds from sale of property and equipment | 9,661 | 9,586 |
Investment in MasterpieceVR | (900,000) | |
Investment in related party | (500,000) | |
Proceeds from sale of marketable securities | 4,307,594 | |
Purchase of marketable securities | (3,569,760) | |
Net cash used by investing activities | (291,666) | (667,387) |
Cash Flows from Financing Activities | ||
Payments on notes payable | (326,763) | (1,275,000) |
Payments on bank loans | (305,990) | (354,708) |
Net cash used by financing activities | (632,753) | (1,629,708) |
Effect of currency translation | (63,228) | 24,116 |
Net decrease in cash, cash equivalents, and restricted cash | (5,277,121) | (3,383,247) |
Cash, cash equivalents, and restricted cash at beginning of period | 17,186,323 | 21,072,859 |
Cash, cash equivalents, and restricted cash at end of period | 11,972,430 | 17,665,496 |
Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash | ||
Cash and equivalents | 10,338,978 | 15,866,068 |
Restricted cash | 1,633,452 | 1,799,428 |
Total cash, cash equivalents, and restricted cash | 11,972,430 | 17,665,496 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 126,715 | 145,452 |
Cash paid during the period for income taxes | 124,823 | 74,099 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Investment in Virtual Driver Interactive | 439,774 | |
Stock issued to pay notes payable | $ 3,288,071 | $ 407,854 |
ORGANIZATION AND PLAN OF OPERAT
ORGANIZATION AND PLAN OF OPERATIONS | 3 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PLAN OF OPERATIONS | NOTE 1 – ORGANIZATION AND PLAN OF OPERATIONS Cemtrex was incorporated in 1998, in the state of Delaware and has evolved through strategic acquisitions and internal growth into a leading multi-industry technology company. The Company has expanded in a wide range of sectors, including smart technologies, virtual and augmented realities, industrial solutions, and intelligent security systems. Unless the context requires otherwise, all references to “we”, “our”, “us”, “Company”, “registrant”, “Cemtrex” or “management” refer to Cemtrex, Inc. and its subsidiaries. The Company has two Advanced Technologies (AT) Cemtrex’s Advanced Technologies segment operates several brands that deliver cutting-edge software and hardware technologies: - Vicon Industries – - SmartDesk – - Cemtrex XR (“CXR”) - Virtual Driver Interactive (“VDI”) - Bravo Strong - good tech (formerly Cemtrex Labs) Industrial Services (IS) Cemtrex’s IS segment operates through a brand, Advanced Industrial Services (“AIS”), that offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. We install high precision equipment in a wide variety of industrial markets like automotive, printing & graphics, industrial automation, packaging, and chemicals among others. We are a leading provider of reliability-driven maintenance and contracting solutions for the machinery, packaging, printing, chemical, and other manufacturing markets. The focus is on customers seeking to achieve greater asset utilization and reliability to cut costs and increase production from existing assets, including small projects, sustaining capital, turnarounds, maintenance, specialty welding services, and high-quality scaffolding. Acquisition of Virtual Driver Interactive On October 26, 2020, the company acquired Virtual Driver Interactive (“VDI”), a California based provider of innovative driver training simulation solutions for a purchase price of $ 1,339,774 175,428 For over 10 years, VDI has been known for its effective and engaging driver training systems, designed for users of all ages and skill levels. The Company offers comprehensive training for new teen and novice drivers, along with advanced training for corporate fleets and truck drivers. VDI’s wide range of training courses and system options provide customers with highly portable, affordable and effective solutions, all while focusing on the dangers of distracted driving. Results for VDI will be reported under the AT segment. The Company paid $ 900,000 in cash and issued a note 439,774 . This note carries interest of 5 % and is payable in two installments of $ 239,774 plus accumulated interest on October 26, 2021, and $ 200,000 plus accumulated interest on October 26, 2022. Additionally, the Company paid contingent consideration of $ 175,428 in May 2021. There is no further contingent consideration specified in the purchase agreement. The Company has accounted for this acquisition as a business combination and has allocated the purchase price as follows, $ 876,820 to proprietary software, $ 39,992 to inventory, and $ 598,391 to goodwill. Strategic Investment On November 13, 2020, Cemtrex made a $ 500,000 investment via a simple agreement for future equity(“SAFE”) in MasterpieceVR. The SAFE provides that the Company will automatically receive shares of the entity based on the conversion rate of future equity rounds up to a valuation cap, as defined. MasterpieceVR is a software company that is developing software for content creation using virtual reality. The investment is included in other assets in the accompanying balance sheet and the Company accounts for this investment and recorded at cost. No impairment has been recorded for the period December 31, Potential Impacts of COVID-19 on our Business The current COVID-19 pandemic has impacted our business operations and the results of our operations in the last fiscal year, primarily with delays in expected orders by many customers and new product development, including newer versions of surveillance software since our technical facility in Pune, India has been under lock down on multiple occasions. Overall bookings level in the IS segment of our business were down by more than 20%, however our AT segment had experienced relatively less slow down. Bookings and revenue are starting to show signs of recovery in this fiscal quarter compared to the same period last year. However, due to delays in certain supply chain areas, the expected launch times of our new products and new versions has resulted in delays of several months. Additionally, increased prices and the need to increase wages to The broader implications of COVID-19 on our results from operations going forward remains uncertain. The COVID-19 pandemic and the resulting supply chain issues and inflation has the potential to cause adverse effects to our customers, suppliers or business partners in locations that have or will experience more pronounced disruptions, which could result in a reduction to future revenue and manufacturing output as well as delays in our new product development activities. However, opportunities in the video surveillance field have been growing for Vicon products. The extent of the pandemics effect on our operational and financial performance will depend in large part on future developments, which cannot be reasonably estimated at this time. Future developments include the duration, scope and severity of the pandemic, the emergence of new virus variants that are more contagious or harmful than prior variants, the actions taken to contain or mitigate its impact both within and outside the jurisdictions where we operate, the impact on governmental programs and budgets, the development of treatments or vaccines, and the resumption of widespread economic activity. Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, we are unable to predict with any confidence the likely impact of the COVID-19 pandemic on our future operations. |
INTERIM STATEMENT PRESENTATION
INTERIM STATEMENT PRESENTATION | 3 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
INTERIM STATEMENT PRESENTATION | NOTE 2 – INTERIM STATEMENT PRESENTATION Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended September 30, 2021, 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 The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, Cemtrex Advanced Technologies Inc., Cemtrex Technologies Pvt. Ltd., Cemtrex XR Inc., and Advanced Industrial Services, Inc. and the Company’s majority owned subsidiary Vicon Industries, Inc. and its subsidiary, Vicon 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, 2021, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Issued Accounting Standards ASU 2016-13 Measurement of Credit Losses on Financial Instrument is effective for fiscal years beginning after December 15, 2022. This is not expected to apply to the Company as financial instruments giving rise to credit risk are not utilized by the Company. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). The new ASU addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. This amendment is effective for all entities, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this new guidance will have on its financial statements The Company does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. |
LOSS PER COMMON SHARE
LOSS PER COMMON SHARE | 3 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
LOSS PER COMMON SHARE | NOTE 3 – LOSS PER COMMON SHARE Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants. For the three months ended December 31, 2021, and 2020, the following items were excluded from the computation of diluted net loss per common share as their effect is anti-dilutive: SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE EFFECT 2021 2020 For the three months ended December 31, 2021 2020 Warrants to purchase shares 433,965 433,965 Options 950,000 945,833 Net loss per common share anti-dilutive effect 950,000 945,833 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 4 – SEGMENT INFORMATION The Company reports and evaluates financial information for two The following tables summarize the Company’s segment information: SCHEDULE OF SEGMENT INFORMATION 2021 2020 For the three months ended December 31, 2021 2020 Revenues from external customers Advanced Technologies $ 5,618,517 $ 4,672,869 Industrial Services 5,053,972 4,163,207 Total revenues $ 10,672,489 $ 8,836,076 Gross profit Advanced Technologies $ 2,439,009 $ 2,346,272 Industrial Services 1,430,185 1,659,198 Total gross profit $ 3,869,194 $ 4,005,470 Operating loss Advanced Technologies $ (3,894,624 ) $ (1,842,346 ) Industrial Services (159,899 ) (203,605 ) Total operating loss $ (4,054,523 ) $ (2,045,951 ) Other income/(expense) Advanced Technologies $ (424,252 ) $ 367,235 Industrial Services (51,048 ) (25,188 ) Total other expense $ (475,300 ) $ 342,047 Depreciation and Amortization Advanced Technologies $ 83,610 $ 115,832 Industrial Services 179,223 244,746 Total depreciation and amortization $ 262,833 $ 360,578 December 31, September 30, 2021 2021 Identifiable Assets Advanced Technologies $ 29,506,121 $ 33,850,496 Industrial Services 17,315,942 19,089,392 Total Assets $ 46,822,063 $ 52,939,888 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 5 – FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy is applied to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the guidance for fair value measurements are described below: Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Our Level 1 assets include cash equivalents, banker’s acceptances, trading securities investments and investment funds. We measure trading securities investments and investment funds at quoted market prices as they are traded in an active market with sufficient volume and frequency of transactions. Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified contractual term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. Level 3 assets and liabilities include cost method investments. Quantitative information for Level 3 assets and liabilities reviewed at each reporting period includes indicators of significant deterioration in the earnings performance, credit rating, asset quality, business prospects of the investee, and financial indicators of the investee’s ability to continue as a going concern. The Company’s fair value assets at December 31, 2021 and September 30, 2021, SCHEDULE OF FAIR VALUE OF ASSETS Quoted Prices Significant in Active Other Significant Balance Markets for Observable Unobservable as of Identical Assets Inputs Inputs December 31, (Level 1) (Level 2) (Level 3) 2021 Assets Investment in marketable securities (included in short-term investments) $ 14,960 $ - $ - $ 14,960 $ 14,960 $ - $ - $ 14,960 Quoted Prices Significant in Active Other Significant Balance Markets for Observable Unobservable as of Identical Assets Inputs Inputs September, 30 (Level 1) (Level 2) (Level 3) 2021 Assets Investment in marketable securities (included in short-term investments) $ 14,981 $ $ $ 14,981 $ 14,981 $ - $ - $ 14,981 |
RESTRICTED CASH
RESTRICTED CASH | 3 Months Ended |
Dec. 31, 2021 | |
Restricted Cash | |
RESTRICTED CASH | NOTE 6 – RESTRICTED CASH A subsidiary of the Company participates in a consortium in order to self-insure group care coverage for its employees. The plan is administrated by Benecon Group and the Company makes monthly deposits in a trust account to cover medical claims and any administrative costs associated with the plan. These funds, as required by the plan are restricted in nature and amounted to $ 1,476,037 at and $ 1,601,932 a account. The 157,415 as of December 31, 2021 and Sepetmber 30, 2021 . |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 3 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 7 – ACCOUNTS RECEIVABLE, NET Accounts receivables, net consist of the following: SCHEDULE OF ACCOUNTS RECEIVABLE, NET December 31, September 30, 2021 2021 Accounts receivable $ 5,821,329 $ 7,989,888 Allowance for doubtful accounts (273,580 ) (178,992 ) Accounts receivables, net, total $ 5,547,749 $ 7,810,896 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, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY, NET | NOTE 8 – INVENTORY, NET Inventory, net, consist of the following: SCHEDULE OF INVENTORY, NET December 31, September 30, 2021 2021 Raw materials $ 2,109,452 $ 1,957,410 Work in progress 947,091 429,871 Finished goods 5,848,146 5,191,007 Inventory, gross 8,904,689 7,578,288 Less: Allowance for inventory obsolescence (1,818,991 ) (1,921,001 ) Inventory –net of allowance for inventory obsolescence $ 7,085,698 $ 5,657,287 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 9 – PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: SUMMARY OF PROPERTY AND EQUIPMENT December 31, September 30, 2021 2021 Land $ 790,373 $ 790,373 Building and leasehold improvements 2,907,109 2,892,900 Furniture and office equipment 515,873 501,885 Computers and software 1,313,816 1,105,681 Machinery and equipment 12,918,350 12,984,959 Property and equipment, gross 18,445,521 18,275,798 Less: Accumulated depreciation (11,708,650 ) (11,536,854 ) Property and equipment, net $ 6,736,871 $ 6,738,944 Depreciation expense for the three months ended December 31, 2021, and 2020 were $ 262,833 360,578 |
LEASES
LEASES | 3 Months Ended |
Dec. 31, 2021 | |
Leases | |
LEASES | NOTE 10 – LEASES ASC 842, “Leases”, requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at either the effective date (the “effective date method”) or the beginning of the earliest period presented (the “comparative method”) using a modified retrospective approach. Under the effective date method, the Company’s comparative period reporting is unchanged. In contrast, under the comparative method, the Company’s date of initial application is the beginning of the earliest comparative period presented, and the Topic 842 transition guidance is then applied to all comparative periods presented. Further, under either transition method, the standard includes certain practical expedients intended to ease the burden of adoption. The Company adopted ASC 842 October 1, 2019, using the effective date method and elected certain practical ● whether expired or existing contracts contain leases under the new definition of a lease; ● lease classification for expired or existing leases; and ● whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less. The Company entered into a financing lease for a single vehicle in the Industrial services segment with a term of 3 2 7 Finance and operating lease liabilities consist of the following: SUMMARY OF FINANCE AND OPERATING LEASE LIABILITIES December 31, September 30, 2021 2021 Lease liabilities - current Finance leases $ - $ - Operating leases 789,346 830,791 Lease liabilities - current 789,346 830,791 Lease liabilities - net of current portion Finance leases $ - $ - Operating leases 1,936,270 2,017,408 Lease liabilities - net of current portion $ 1,936,270 $ 2,017,408 A reconciliation of undiscounted cash flows to finance and operating lease liabilities recognized in the condensed consolidated balance sheet at December 31, 2021, is set forth below: SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO FINANCE AND OPERATING LEASE LIABILITIES Years ending September 30, Finance leases Operating Leases Total 2022 - 685,022 685,022 2023 - 704,934 704,934 2024 - 580,667 580,667 2025 - 557,870 557,870 2026 & Thereafter - 661,696 661,696 Undiscounted lease payments - 3,190,189 3,190,189 Amount representing interest - (464,573 ) (464,573 ) Discounted lease payments $ - $ 2,725,616 $ 2,725,616 Additional disclosures of lease data are set forth below: SCHEDULE OF LEASE COSTS Three months ended December 31, 2021 December 31, 2020 Lease costs: Finance lease costs: Depreciation of finance lease assets $ - $ 5,728 Interest on lease liabilities - 27 Operating lease costs: Amortization of right-of-use assets 214,511 186,777 Interest on lease liabilities 24,341 16,636 Total lease cost $ 238,852 $ 209,168 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 122,583 $ 178,228 Finance leases - 14,306 $ 122,583 $ 192,534 Weighted-average remaining lease term - finance leases (months) 0 7 Weighted-average remaining lease term - operating leases (months) 52 48 Weighted-average discount rate - finance leases 3.63 % 3.63 % Weighted-average discount rate - operating leases 6.85 % 6.64 % 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, 2021 | |
Prepaid And Other Current Assets | |
PREPAID AND OTHER CURRENT ASSETS | NOTE 11 – PREPAID AND OTHER CURRENT ASSETS On December 31, 2021, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $ 467,093 , and 2,260,418 . On September 30, 2021, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $ 298,707 , and other current assets of $ 2,286,945 . |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | NOTE 12 – OTHER ASSETS As of December 31, 2021, the Company had other assets of $ 697,624 96,320 500,000 101,304 697,240 84,362 500,000 112,878 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13 – RELATED PARTY TRANSACTIONS On August 31, 2019, the Company entered into an Asset Purchase Agreement for the sale of Griffin Filters, LLC to Ducon Technologies, Inc., which Aron Govil, the Company’s Founder and former 550,000 . As of December 31, 2021, and September 30, 2021, there was $ 1,492,321 and $ 1,487,155 in receivables due from Ducon Technologies, Inc., respectively. At December 31, 2021, $500,000 of the balance due is for the sale of Griffin, which was due in February 2021, and the remaining balance are various receivables with various due dates within the next fiscal year. The Company is currently negotiating a payment agreement surrounding all these amounts due. On February 23, 2021, Cemtrex’s Board of Directors determined that certain transactions between Cemtrex Inc. and First Commercial, a company owned by former Executive Director, former Controlling Shareholder and former CFO, Aron Govil, were incorrectly handled and accounted for. The total amount of disputed transfers was approximately $ 7,100,000 5,600,000 1,500,000 Upon the Company’s investigation into this matter, the Company has determined that there were inaccuracies in the Company’s financial statements. The financials for the periods 2017 and 2018 were incorrect corresponding to the amounts that were incorrectly accounted for, and subsequent years were affected by the roll forward effects of these entries. The Company found unsupported advertising expenses in the amount of approximately $ 400,000 5,700,000 975,000 7,100,000 On February 26, 2021, the Company entered into a Settlement Agreement and Release with Aron Govil regarding these transactions. As part of the Settlement Agreement, Mr. Govil was required to pay the Company consideration with a total value of $ 7,100,000 1,533,280 In March 2021, Mr. Govil returned to the Company 1,000,000 50,000 469,949 The Company recognized the gain with respect to the surrendered Securities during this reporting period. The gain of $ 3,674,165 is reported as Settlement Agreement – As discussed above, Mr. Govil also executed a secured promissory note (the “Note”) in the amount of $ 1,533,280 two years 9% |
LINES OF CREDIT AND LONG-TERM L
LINES OF CREDIT AND LONG-TERM LIABILITIES | 3 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LINES OF CREDIT AND LONG-TERM LIABILITIES | NOTE 14 – LINES OF CREDIT AND LONG-TERM LIABILITIES Lines of credit The Company currently has a line of credit with Fulton Bank for $ 3,500,000 . The line carries an interest of LIBOR plus 2.00% per annum ( 2.078% as of December 31, 2021 and 2.075% At December 31, 2021 and September 30, 2021, there was no outstanding balance on this line of credit. The terms of this line of credit are subject to the bank’s review annually on February 1. Loans payable to bank On December 15, 2015, the Company acquired a loan from Fulton Bank in the amount of $ 5,250,000 5,000,000 2.25% 2.328% 2.325% December 15, 2022 977,808 1,218,680 On May 1, 2018, the Company acquired a loan from Fulton Bank in the amount of $ 400,000 2.00% 2.078% 2.075% May 1, 2023 133,008 149,914 On January 28, 2020, the Company acquired a loan from Fulton Bank in the amount of $ 360,000 2.25% 2.328% 2.325% May 1, 2023 234,821 258,060 Notes payable On September 30, 2020, the Company, issued a note payable to an independent private lender in the amount of $ 4,605,000 . This note carries interest of 8% and matures on March 30, 2022 . After deduction of an original issue discount of 600,000 and legal fees of $ 5,000 , the Company received $ 4,000,000 in cash. As of December 31, 2021, and September 30, 2021, this note had a balance of $ 0 and $ 2,256,448 , respectively. As of December 31, 2021, and September 30, 2021, this note had unamortized original issue discount balance of $ 0 200,000 On September 30, 2021, the Company, issued a note payable to an independent private lender in the amount of $ 5,755,000 . This note carries interest of 8% and matures on March 30, 2023 . After deduction of an original issue discount of 750,000 and legal fees of $ 5,000 , the Company received $ 5,000,000 in cash. As of December 31, 2021, and September 30, 2021, this note had a balance of $ 5,248,855 and $ 5,005,000 , respectively. As of December 31, 2021, and September 30, 2021, this note had unamortized original issue discount balance of $ 625,000 750,000 On March 3, 2020, Vicon, a subsidiary of the Company, 5,600,000 Term Loan Agreement with NIL Funding Corporation (“NIL”). Upon closing, $ 500,000 of outstanding borrowings were repaid to NIL. 8.85% and matures on March 30, 2022 . This note carries loan covenants which the Company is in compliance with as of December 31, 2021. As of December 31, 2021, and September 30, 2021, this note had a balance of $ 3,529,743 and $ 3,604,743 , respectively. Mortgage Payable On January 28, 2020, the Company’s subsidiary, Advanced Industrial Services, Inc., completed the purchase of two buildings for a total purchase price of $ 3,381,433 . 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 ( 2.578% as of December 31, 2021 and 2.575% as of September 30, 2021) and is payable on January 28, 2040 . This loan carries loan covenants similar to covenants on the 2,314,141 and $ 2,339,114 , respectively. Paycheck Protection Program Loans In April and May of 2020, and January and April of 2021, the Company and its subsidiaries applied for and were granted $ 6,413,385 in Paycheck Protection Program loans under the CARES Act. These loans bear interest of 2 % and mature in two years. The Company has applied for and received loan forgiveness under the provisions of the CARES Act for $ 6,291,985 . The remaining loan of $ 121,400 is recorded under Paycheck Protection Program Loans on our Condensed Consolidated Balance Sheet as of December 31, 2021, net of the short-term portion of $ 60,700 . The issuing bank determined |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 15 – STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 10,000,000 0.001 2,029,753 1,935,151 Series 1 Preferred Stock During the three months ended December 31, 2021, 94,602 shares of Series 1 Preferred Stock were issued to pay dividends to holders of Series 1 Preferred Stock. As of December 31, 2021, and September 30, 2021, there were 1,979,753 1,885,151 Series C Preferred Stock On October 3, 2019, pursuant to Article IV of our Articles of Incorporation, our Board of Directors voted to designate a class of preferred stock entitled Series C Preferred Stock, consisting of up to one hundred thousand ( 100,000 0.001 Under the Certificate of Designation, holders of Series C Preferred Stock are entitled to the number of votes equal to the result of (i) the total number of shares of Common Stock outstanding at the time of such vote multiplied by 10.01, and divided by (ii) the total number of shares of Series C Preferred Stock outstanding at the time of such vote, at each meeting of our shareholders with respect to any and all matters presented to our shareholders for their action or consideration, including the election of directors. As of December 31, 2021, and September 30, 2021, there were 50,000 Common Stock The Company is authorized to issue 50,000,000 0.001 23,673,210 20,782,194 During the three months ended December 31, 2021, 2,981,016 2,112,500 353,978 821,593 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 16 – SHARE-BASED COMPENSATION For the three months ended December 31, 2021, and 2020, the Company recognized $ 45,371 16,071 314,043 four years |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 17 – COMMITMENTS AND CONTINGENCIES The Company has its corporate headquarters in New York City with a month-to-month lease of 2,500 13,000 The Company’s IS segment owns approximately 25,000 43,000 15,500 4,555 August 31, 2022 The Company’s AT segment leases (i) approximately 6,700 6,453 456,972 February 28, 2024 30,000 seven 28,719 March 31, 2027 9,400 7,329 5,771 March 24, 2031 terminate in 2026 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 18 – SUBSEQUENT EVENTS Cemtrex has evaluated subsequent events up to the date the condensed consolidated financial statements were issued. Cemtrex concluded that the following subsequent events have occurred and require recognition or disclosure in the condensed consolidated financial statements. On January 28, 2022, Christopher C. Moore was dismissed from his position as Chief Financial Officer and Paul J. Wyckoff was appointed Cemtrex’s Interim Chief Financial Officer. On February 2, 2022, the Company invested an additional $ 500,000 |
INTERIM STATEMENT PRESENTATION
INTERIM STATEMENT PRESENTATION (Policies) | 3 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended September 30, 2021, 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 The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, Cemtrex Advanced Technologies Inc., Cemtrex Technologies Pvt. Ltd., Cemtrex XR Inc., and Advanced Industrial Services, Inc. and the Company’s majority owned subsidiary Vicon Industries, Inc. and its subsidiary, Vicon |
Accounting Pronouncements | Accounting Pronouncements Significant Accounting Policies Note 2 of the Notes to Consolidated Financial Statements, included in the annual report on Form 10-K for the year ended September 30, 2021, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements. Recently Issued Accounting Standards ASU 2016-13 Measurement of Credit Losses on Financial Instrument is effective for fiscal years beginning after December 15, 2022. This is not expected to apply to the Company as financial instruments giving rise to credit risk are not utilized by the Company. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). The new ASU addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. This amendment is effective for all entities, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this new guidance will have on its financial statements The Company does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. |
LOSS PER COMMON SHARE (Tables)
LOSS PER COMMON SHARE (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE EFFECT | SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE EFFECT 2021 2020 For the three months ended December 31, 2021 2020 Warrants to purchase shares 433,965 433,965 Options 950,000 945,833 Net loss per common share anti-dilutive effect 950,000 945,833 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT INFORMATION | The following tables summarize the Company’s segment information: SCHEDULE OF SEGMENT INFORMATION 2021 2020 For the three months ended December 31, 2021 2020 Revenues from external customers Advanced Technologies $ 5,618,517 $ 4,672,869 Industrial Services 5,053,972 4,163,207 Total revenues $ 10,672,489 $ 8,836,076 Gross profit Advanced Technologies $ 2,439,009 $ 2,346,272 Industrial Services 1,430,185 1,659,198 Total gross profit $ 3,869,194 $ 4,005,470 Operating loss Advanced Technologies $ (3,894,624 ) $ (1,842,346 ) Industrial Services (159,899 ) (203,605 ) Total operating loss $ (4,054,523 ) $ (2,045,951 ) Other income/(expense) Advanced Technologies $ (424,252 ) $ 367,235 Industrial Services (51,048 ) (25,188 ) Total other expense $ (475,300 ) $ 342,047 Depreciation and Amortization Advanced Technologies $ 83,610 $ 115,832 Industrial Services 179,223 244,746 Total depreciation and amortization $ 262,833 $ 360,578 December 31, September 30, 2021 2021 Identifiable Assets Advanced Technologies $ 29,506,121 $ 33,850,496 Industrial Services 17,315,942 19,089,392 Total Assets $ 46,822,063 $ 52,939,888 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUE OF ASSETS | The Company’s fair value assets at December 31, 2021 and September 30, 2021, SCHEDULE OF FAIR VALUE OF ASSETS Quoted Prices Significant in Active Other Significant Balance Markets for Observable Unobservable as of Identical Assets Inputs Inputs December 31, (Level 1) (Level 2) (Level 3) 2021 Assets Investment in marketable securities (included in short-term investments) $ 14,960 $ - $ - $ 14,960 $ 14,960 $ - $ - $ 14,960 Quoted Prices Significant in Active Other Significant Balance Markets for Observable Unobservable as of Identical Assets Inputs Inputs September, 30 (Level 1) (Level 2) (Level 3) 2021 Assets Investment in marketable securities (included in short-term investments) $ 14,981 $ $ $ 14,981 $ 14,981 $ - $ - $ 14,981 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE, NET | Accounts receivables, net consist of the following: SCHEDULE OF ACCOUNTS RECEIVABLE, NET December 31, September 30, 2021 2021 Accounts receivable $ 5,821,329 $ 7,989,888 Allowance for doubtful accounts (273,580 ) (178,992 ) Accounts receivables, net, total $ 5,547,749 $ 7,810,896 |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY, NET | Inventory, net, consist of the following: SCHEDULE OF INVENTORY, NET December 31, September 30, 2021 2021 Raw materials $ 2,109,452 $ 1,957,410 Work in progress 947,091 429,871 Finished goods 5,848,146 5,191,007 Inventory, gross 8,904,689 7,578,288 Less: Allowance for inventory obsolescence (1,818,991 ) (1,921,001 ) Inventory –net of allowance for inventory obsolescence $ 7,085,698 $ 5,657,287 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
SUMMARY OF PROPERTY AND EQUIPMENT | Property and equipment are summarized as follows: SUMMARY OF PROPERTY AND EQUIPMENT December 31, September 30, 2021 2021 Land $ 790,373 $ 790,373 Building and leasehold improvements 2,907,109 2,892,900 Furniture and office equipment 515,873 501,885 Computers and software 1,313,816 1,105,681 Machinery and equipment 12,918,350 12,984,959 Property and equipment, gross 18,445,521 18,275,798 Less: Accumulated depreciation (11,708,650 ) (11,536,854 ) Property and equipment, net $ 6,736,871 $ 6,738,944 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Leases | |
SUMMARY OF FINANCE AND OPERATING LEASE LIABILITIES | Finance and operating lease liabilities consist of the following: SUMMARY OF FINANCE AND OPERATING LEASE LIABILITIES December 31, September 30, 2021 2021 Lease liabilities - current Finance leases $ - $ - Operating leases 789,346 830,791 Lease liabilities - current 789,346 830,791 Lease liabilities - net of current portion Finance leases $ - $ - Operating leases 1,936,270 2,017,408 Lease liabilities - net of current portion $ 1,936,270 $ 2,017,408 |
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, 2021, is set forth below: SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO FINANCE AND OPERATING LEASE LIABILITIES Years ending September 30, Finance leases Operating Leases Total 2022 - 685,022 685,022 2023 - 704,934 704,934 2024 - 580,667 580,667 2025 - 557,870 557,870 2026 & Thereafter - 661,696 661,696 Undiscounted lease payments - 3,190,189 3,190,189 Amount representing interest - (464,573 ) (464,573 ) Discounted lease payments $ - $ 2,725,616 $ 2,725,616 |
SCHEDULE OF LEASE COSTS | Additional disclosures of lease data are set forth below: SCHEDULE OF LEASE COSTS Three months ended December 31, 2021 December 31, 2020 Lease costs: Finance lease costs: Depreciation of finance lease assets $ - $ 5,728 Interest on lease liabilities - 27 Operating lease costs: Amortization of right-of-use assets 214,511 186,777 Interest on lease liabilities 24,341 16,636 Total lease cost $ 238,852 $ 209,168 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 122,583 $ 178,228 Finance leases - 14,306 $ 122,583 $ 192,534 Weighted-average remaining lease term - finance leases (months) 0 7 Weighted-average remaining lease term - operating leases (months) 52 48 Weighted-average discount rate - finance leases 3.63 % 3.63 % Weighted-average discount rate - operating leases 6.85 % 6.64 % |
ORGANIZATION AND PLAN OF OPER_2
ORGANIZATION AND PLAN OF OPERATIONS (Details Narrative) | Oct. 26, 2022USD ($) | Oct. 26, 2021USD ($) | Oct. 26, 2020USD ($) | Dec. 31, 2021Segments | May 31, 2021USD ($) | Nov. 13, 2020USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||
Number of reportable segments | Segments | 2 | |||||
Contingent consideration | $ 175,428 | |||||
MasterpieceVR [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Equity Method Investment, Underlying Equity in Net Assets | $ 500,000 | |||||
Installment One [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Debt Instrument, Periodic Payment | $ 239,774 | |||||
Installment Two [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Debt Instrument, Periodic Payment | $ 200,000 | |||||
Virtual Driver Interactive [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Purchase price of acquisition | $ 1,339,774 | |||||
Contingent consideration | 175,428 | |||||
Payments to Acquire Businesses, Gross | 900,000 | |||||
Notes Payable | $ 439,774 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||
Virtual Driver Interactive [Member] | Proprietary Software [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Purchase price of acquisition | $ 876,820 | |||||
Virtual Driver Interactive [Member] | Inventory [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Purchase price of acquisition | 39,992 | |||||
Virtual Driver Interactive [Member] | Goodwill [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Purchase price of acquisition | $ 598,391 |
SCHEDULE OF COMPUTATION OF DILU
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER COMMON SHARE AS ANTI-DILUTIVE EFFECT (Details) - shares | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net loss per common share anti-dilutive effect | 433,965 | 433,965 |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net loss per common share anti-dilutive effect | 950,000 | 945,833 |
SCHEDULE OF SEGMENT INFORMATION
SCHEDULE OF SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 10,672,489 | $ 8,836,076 | |
Total gross profit | 3,869,194 | 4,005,470 | |
Total operating loss | (4,054,523) | (2,045,951) | |
Total other expense | (475,300) | 342,047 | |
Total depreciation and amortization | 262,833 | 360,578 | |
Total Assets | 46,822,063 | $ 52,939,888 | |
Advanced Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 5,618,517 | 4,672,869 | |
Total gross profit | 2,439,009 | 2,346,272 | |
Total operating loss | (3,894,624) | (1,842,346) | |
Total other expense | (424,252) | 367,235 | |
Total depreciation and amortization | 83,610 | 115,832 | |
Total Assets | 29,506,121 | 33,850,496 | |
Industrial Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 5,053,972 | 4,163,207 | |
Total gross profit | 1,430,185 | 1,659,198 | |
Total operating loss | (159,899) | (203,605) | |
Total other expense | (51,048) | (25,188) | |
Total depreciation and amortization | 179,223 | $ 244,746 | |
Total Assets | $ 17,315,942 | $ 19,089,392 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 3 Months Ended |
Dec. 31, 2021Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SCHEDULE OF FAIR VALUE OF ASSET
SCHEDULE OF FAIR VALUE OF ASSETS (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | $ 14,960 | $ 14,981 |
Marketable Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 14,960 | 14,981 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 14,960 | 14,981 |
Fair Value, Inputs, Level 1 [Member] | Marketable Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 14,960 | 14,981 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | ||
Fair Value, Inputs, Level 2 [Member] | Marketable Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | ||
Fair Value, Inputs, Level 3 [Member] | Marketable Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets |
RESTRICTED CASH (Details Narrat
RESTRICTED CASH (Details Narrative) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Restricted Cash | ||
Restricted Cash, Current | $ 1,476,037 | $ 1,601,932 |
Accrued Liabilities | $ 157,415 | $ 157,415 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Receivables [Abstract] | ||
Accounts receivable | $ 5,821,329 | $ 7,989,888 |
Allowance for doubtful accounts | (273,580) | (178,992) |
Accounts receivables, net, total | $ 5,547,749 | $ 7,810,896 |
SCHEDULE OF INVENTORY, NET (Det
SCHEDULE OF INVENTORY, NET (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,109,452 | $ 1,957,410 |
Work in progress | 947,091 | 429,871 |
Finished goods | 5,848,146 | 5,191,007 |
Inventory, gross | 8,904,689 | 7,578,288 |
Less: Allowance for inventory obsolescence | (1,818,991) | (1,921,001) |
Inventory –net of allowance for inventory obsolescence | $ 7,085,698 | $ 5,657,287 |
SUMMARY OF PROPERTY AND EQUIPME
SUMMARY OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 18,445,521 | $ 18,275,798 |
Less: Accumulated depreciation | (11,708,650) | (11,536,854) |
Property and equipment, net | 6,736,871 | 6,738,944 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 790,373 | 790,373 |
Building And Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,907,109 | 2,892,900 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 515,873 | 501,885 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,313,816 | 1,105,681 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 12,918,350 | $ 12,984,959 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 262,833 | $ 360,578 |
SUMMARY OF FINANCE AND OPERATIN
SUMMARY OF FINANCE AND OPERATING LEASE LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Leases | ||
Lease liabilities - current, Finance leases | ||
Lease liabilities - current, Operating leases | 789,346 | 830,791 |
Lease liabilities - current | 789,346 | 830,791 |
Lease liabilities - net of current portion, Finance leases | ||
Lease liabilities - net of current portion, Operating leases | 1,936,270 | 2,017,408 |
Lease liabilities - net of current portion | $ 1,936,270 | $ 2,017,408 |
SCHEDULE OF RECONCILIATION OF U
SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO FINANCE AND OPERATING LEASE LIABILITIES (Details) | Dec. 31, 2021USD ($) |
Leases | |
Finance leases, 2022 | |
Operating Leases, 2022 | 685,022 |
Total, 2022 | 685,022 |
Finance leases, 2023 | |
Operating Leases, 2023 | 704,934 |
Total, 2023 | 704,934 |
Finance leases, 2024 | |
Operating Leases, 2024 | 580,667 |
Total, 2024 | 580,667 |
Finance leases, 2025 | |
Operating Leases, 2025 | 557,870 |
Total, 2025 | 557,870 |
Finance leases, 2026 & Thereafter | |
Operating Leases, 2026 & Thereafter | 661,696 |
Total, 2026 & Thereafter | 661,696 |
Finance leases, Undiscounted lease payments | |
Operating Leases, Undiscounted lease payments | 3,190,189 |
Total, Undiscounted lease payments | 3,190,189 |
Finance leases, Amount representing interest | |
Operating Leases, Amount representing interest | (464,573) |
Total, Amount representing interest | (464,573) |
Finance leases, Discounted lease payments | |
Operating Leases, Discounted lease payments | 2,725,616 |
Total, Discounted lease payments | $ 2,725,616 |
SCHEDULE OF LEASE COSTS (Detail
SCHEDULE OF LEASE COSTS (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Finance lease costs: Depreciation of finance lease assets | $ 5,728 | |
Finance lease costs: Interest on lease liabilities | 27 | |
Operating lease costs: Amortization of right-of-use assets | 214,511 | 186,777 |
Operating lease costs: Interest on lease liabilities | 24,341 | 16,636 |
Total lease cost | 238,852 | 209,168 |
Cash paid for amounts included in the measurement of lease liabilities: Operating leases | 122,583 | 178,228 |
Cash paid for amounts included in the measurement of lease liabilities: Finance leases | 14,306 | |
Cash paid for amounts included in the measurement of lease liabilities: Total | $ 122,583 | $ 192,534 |
Weighted-average remaining lease term - finance leases (months) | 0 months | 7 months |
Weighted-average remaining lease term - operating leases (months) | 52 months | 48 months |
Weighted-average discount rate - finance leases | 3.63% | 3.63% |
Weighted-average discount rate - operating leases | 6.85% | 6.64% |
LEASES (Details Narrative)
LEASES (Details Narrative) | 3 Months Ended |
Dec. 31, 2021 | |
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 | 7 years |
Industrial Services [Member] | |
Finance lease term | 3 years |
PREPAID AND OTHER CURRENT ASS_2
PREPAID AND OTHER CURRENT ASSETS (Details Narrative) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Prepaid And Other Current Assets | ||
Prepaid Supplies | $ 467,093 | $ 298,707 |
Other Assets, Current | $ 2,260,418 | $ 2,286,945 |
OTHER ASSETS (Details Narrative
OTHER ASSETS (Details Narrative) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Net Investment Income [Line Items] | ||
Other assets | $ 697,624 | $ 697,240 |
Rent security | 96,320 | 84,362 |
Other assets excluding rent security | 101,304 | 112,878 |
MasterpieceVR [Member] | ||
Net Investment Income [Line Items] | ||
Other investments | $ 500,000 | $ 500,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Mar. 31, 2021 | Feb. 23, 2021 | Aug. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2021 | Feb. 26, 2021 |
Related Party Transaction [Line Items] | |||||||||
Accounts Receivable, Related Parties, Current | $ 1,492,321 | $ 1,487,155 | |||||||
Research and development expenses | $ 1,311,713 | $ 634,225 | |||||||
Incorrectly Handled And Accounted [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Advertising expense | $ 400,000 | ||||||||
Intangible assets | 5,700,000 | ||||||||
Research and development expenses | 975,000 | ||||||||
Unsubstantiated transfers and advertising expense | 7,100,000 | $ 7,100,000 | |||||||
Disputes [Member] | Incorrectly Handled And Accounted [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Dispute amount | $ 7,100,000 | $ 1,500,000 | $ 5,600,000 | ||||||
Griffin Filters LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related Party Transaction, Description of Transaction | At December 31, 2021, $500,000 of the balance due is for the sale of Griffin, which was due in February 2021, and the remaining balance are various receivables with various due dates within the next fiscal year. The Company is currently negotiating a payment agreement surrounding all these amounts due. | ||||||||
Asset Purchase Agreement [Member] | Griffin Filters LLC [Member] | Ducon Technologies Inc [Member] | Aron Govil [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Business Combination, Consideration Transferred | $ 550,000 | ||||||||
Settlement Agreement [Member] | Aron Govil [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Due from related parties | $ 7,100,000 | ||||||||
Secured debt | $ 1,533,280 | ||||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | $ 3,674,165 | ||||||||
Settlement Agreement [Member] | Aron Govil [Member] | Secured Promissory Note [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument, principal amount | $ 1,533,280 | ||||||||
Debt instrument term | 2 years | ||||||||
Debt interest rate | 9.00% | ||||||||
Settlement Agreement [Member] | Aron Govil [Member] | Series A Preferred Stock [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Stock repurchased during the period | 1,000,000 | ||||||||
Settlement Agreement [Member] | Aron Govil [Member] | Series C Preferred Stock [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Stock repurchased during the period | 50,000 | ||||||||
Settlement Agreement [Member] | Aron Govil [Member] | Series 1 Preferred Stock [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Stock repurchased during the period | 469,949 |
LINES OF CREDIT AND LONG-TERM_2
LINES OF CREDIT AND LONG-TERM LIABILITIES (Details Narrative) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 03, 2020 | Jan. 28, 2020 | May 02, 2018 | May 01, 2018 | Dec. 15, 2015 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2021 | May 31, 2020 |
Debt Instrument [Line Items] | |||||||||||
Repayments of Notes Payable | $ 326,763 | $ 1,275,000 | |||||||||
Liabilities, Noncurrent | $ 9,731,810 | 8,364,720 | |||||||||
Repayments of Lines of Credit | 6,291,985 | ||||||||||
Short-term Debt | 9,977,972 | 7,591,892 | |||||||||
Advanced Industrial Services, Inc [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term Line of Credit | 2,339,114 | 2,314,141 | |||||||||
[custom:PurchasePrice-0] | $ 3,381,433 | ||||||||||
Liabilities, Noncurrent | 905,433 | ||||||||||
Term Loan Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.85% | ||||||||||
Maturity date | Mar. 30, 2022 | ||||||||||
Notes Payable | 3,604,743 | $ 5,600,000 | 3,529,743 | ||||||||
Repayments of Notes Payable | $ 500,000 | ||||||||||
Paycheck Protection Program [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ||||||||||
[custom:LoanGrantedOnPaycheckProtection-0] | $ 6,413,385 | ||||||||||
Repayments of Lines of Credit | 121,400 | ||||||||||
Short-term Debt | 60,700 | ||||||||||
Independent Third-party [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||||
Maturity date | Mar. 30, 2022 | ||||||||||
Unamortized dicount | 200,000 | $ 600,000 | 0 | ||||||||
Legal Fees | 5,000 | ||||||||||
Proceeds from Notes Payable | 4,000,000 | ||||||||||
Notes Payable | $ 2,256,448 | 0 | |||||||||
Independent Third-party [Member] | Notes Payable [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 4,605,000 | ||||||||||
Independent Third Party Two [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||||
Maturity date | Mar. 30, 2023 | ||||||||||
Unamortized dicount | $ 750,000 | 625,000 | |||||||||
Legal Fees | 5,000 | ||||||||||
Proceeds from Notes Payable | 5,000,000 | ||||||||||
Notes Payable | 5,005,000 | 5,248,855 | |||||||||
Independent Third Party Two [Member] | Notes Payable [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | 5,755,000 | ||||||||||
Advanced Industrial Services, Inc [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Periodic Payment, Principal | $ 5,000,000 | ||||||||||
Long-term Line of Credit | $ 1,218,680 | $ 977,808 | |||||||||
Fulton Bank [Member] | Advanced Industrial Services, Inc [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Liabilities, Noncurrent | $ 2,476,000 | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Advanced Industrial Services, Inc [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.575% | 2.50% | 2.578% | ||||||||
Maturity date | Jan. 28, 2040 | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Advanced Industrial Services, Inc [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.325% | 2.328% | |||||||||
Maturity date | Dec. 15, 2022 | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | New Advanced Industrial Services Inc [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.078% | ||||||||||
Fulton Bank [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 3,500,000 | ||||||||||
Loans Payable to Bank, Current | $ 5,250,000 | ||||||||||
Fulton Bank [Member] | Notes Payable Due On May One Two Thousand Twenty Three One [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loans Payable to Bank, Current | $ 360,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.325% | 2.328% | |||||||||
Maturity date | May 1, 2023 | ||||||||||
Long-term Line of Credit | $ 258,060 | $ 234,821 | |||||||||
Fulton Bank [Member] | New Advanced Industrial Services Inc [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Periodic Payment, Principal | $ 400,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.075% | ||||||||||
Maturity date | May 1, 2023 | ||||||||||
Long-term Line of Credit | $ 149,914 | $ 133,008 | |||||||||
Fulton Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Interest Rate at Period End | 2.075% | 2.00% | 2.078% | ||||||||
Fulton Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Notes Payable Due On May One Two Thousand Twenty Three One [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | Oct. 03, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 |
Class of Stock [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 outstanding | 2,029,753 | 1,935,151 | ||
Preferred stock, shares issued | 2,029,753 | 1,935,151 | ||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||
Common Stock, Shares, Outstanding | 23,673,210 | 20,782,194 | ||
Common Stock, Shares, Issued | 23,673,210 | 20,782,194 | ||
Accrued interest on notes payable | $ 132,162 | $ 126,390 | ||
Interest Expense | $ 1,405,469 | $ 608,941 | ||
Notes Payable [Member] | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 2,981,016 | |||
Interest Payable | $ 2,112,500 | |||
Accrued interest on notes payable | 353,978 | |||
Interest Expense | $ 821,593 | |||
Series 1 Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 3,000,000 | 3,000,000 | ||
Preferred stock, shares outstanding | 1,979,753 | 1,885,151 | ||
Preferred stock, shares issued | 1,979,753 | 1,885,151 | ||
Stock Dividends, Shares | 94,602 | |||
Series C Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 100,000 | 100,000 | 100,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |||
Preferred stock, shares outstanding | 50,000 | 50,000 | ||
Preferred stock, shares issued | 50,000 | 50,000 | ||
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. |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based Payment Arrangement, Expense | $ 45,371 | $ 16,071 | |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 314,043 | ||
Recognized period | 4 years |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 3 Months Ended | 15 Months Ended | |
Dec. 31, 2021USD ($)ft² | Dec. 31, 2021INR (₨)ft² | Dec. 31, 2021GBP (£)ft² | |
Product Liability Contingency [Line Items] | |||
Area of Land | 2,500 | 2,500 | 2,500 |
Payments for Rent | $ | $ 13,000 | ||
Lessee, Operating 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. | 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. | |
I S Segment [Member] | Manchester [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of Land | 25,000 | 25,000 | 25,000 |
I S Segment [Member] | York [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of Land | 43,000 | 43,000 | 43,000 |
I S Segment [Member] | Emigsville [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of Land | 15,500 | 15,500 | 15,500 |
Payments for Rent | $ | $ 4,555 | ||
Lease expiration date | Aug. 31, 2022 | Aug. 31, 2022 | |
Advanced Technologies [Member] | |||
Product Liability Contingency [Line Items] | |||
Lease expiration date | Mar. 24, 2031 | Mar. 24, 2031 | |
Advanced Technologies [Member] | Pune [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of Land | 6,700 | 6,700 | 6,700 |
Payments for Rent | $ 6,453 | ₨ 456,972 | |
Lease expiration date | Feb. 28, 2024 | Feb. 28, 2024 | |
Advanced Technologies [Member] | Hauppauge [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of Land | 30,000 | 30,000 | 30,000 |
Payments for Rent | $ | $ 28,719 | ||
Lease expiration date | Mar. 31, 2027 | Mar. 31, 2027 | |
Lessee, Operating Lease, Term of Contract | 7 years | 7 years | 7 years |
Advanced Technologies [Member] | Hampshire [Member] | |||
Product Liability Contingency [Line Items] | |||
Area of Land | 9,400 | 9,400 | 9,400 |
Payments for Rent | $ 7,329 | £ 5,771 | |
Lessee, Operating Lease, Description | terminate in 2026 | terminate in 2026 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Feb. 02, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Subsequent Event [Line Items] | |||
Short-term Investments | $ 14,960 | $ 14,981 | |
MasterpieceVR [Member] | Simple Agreement For Future Equity [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Short-term Investments | $ 500,000 |