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Equity Investment in Vicon Industries, Inc.
 12 Months Ended
Sep. 30, 2018
Schedule of Investments [Abstract]  
Equity Investment in Vicon Industries, Inc.

NOTE 10 – EQUITY INVESTMENT IN VICON INDUSTRIES, INC.

 

On March 23, 2018, in a private resale transaction, Cemtrex purchased 7,284,824 shares of common stock and a warrant to purchase an additional 1,500,000 shares of common stock of Vicon, valued at $2,913,930, from former Vicon shareholder NIL Funding Corporation, pursuant to the terms of a Securities Purchase Agreement. Cemtrex’s purchase of the Vicon Industries common stock and warrant resulted in its beneficial ownership of approximately 46% of the outstanding shares of common stock of Vicon. Cemtrex purchased the shares of common stock and warrant of Vicon in exchange for 1,012,625 shares of Cemtrex common stock. Following the closing of the transaction, the Company’s Chief Executive Officer and the Company’s Executive Director joined Vicon Industries Board of Directors. The Company’s Chief Executive Officer became Vicon’s Chief Executive Officer. The Company has determined that the equity investment method to account for Vicon was appropriate because it does not have a majority voting interest and the Company does not have control of Vicon’s Board of Directors.

  

The carrying value of the assets and liabilities of Vicon as of September 30, 2018:

 

    As of  
    September 30, 2018  
Current assets   $ 11,782,290  
Non-current assets     1,154,286  
Total assets   $ 12,936,576  
         
Current liabilities   $ 5,416,541  
Non-current liabilities     7,545,683  
Total liabilities   $ 12,962,224  
         
Shareholders’ equity   $ (25,648 )
Total liabilities and shareholders’ equity   $ 12,936,576  

 

    For the twelve  
    months ended  
    September 30, 2018  
Revenues   $ 27,733,367  
Net loss   $ (5,409,146 )

 

As of September 30, 2018, the carrying value of the Company’s investment in Vicon was $1,699,271.