XML 33 R19.htm IDEA: XBRL DOCUMENT

Long-Term Liabilities

12 Months Ended

Sep. 30, 2018

NOTE 13 – LONG-TERM LIABILITIES

Loans payable to bank

On October 31, 2013, the Company acquired a loan from Sparkasse Bank of Germany in the amount of $4,006,500 (€3,000,000, based upon exchange rate on October 31, 2013) in order to fund the purchase of ROB Cemtrex GmbH. $2,799,411 of the proceeds went to direct purchase of ROB Cemtrex GmbH and $1,207,089 funded beginning operations. This loan carries interest of 4.95% per annum and is payable on October 30, 2021.

On December15, 2015, the Company acquired a loan from Fulton Bank in the amount of $5,250,000 in order to fund the purchase of Advanced Industrial Services, Inc. $5,000,000 of the proceeds went to direct purchase of AIS. This loan carries interest of LIBOR plus 2.25% per annum (4.51% as of September 30, 2018) and is payable on December 15, 2022

On December15, 2015, the Company acquired a loan from Fulton Bank in the amount of $620,000 in order to fund the operations of Advanced Industrial Services, Inc. This loan carries interest of LIBOR (4.26% as of September 30, 2018) plus 2.00% per annum and is payable on December 15, 2020.

On May 1, 2018, the Company acquired a loan from Fulton Bank in the amount of $400,000 in order to fund new equipment for Advanced Industrial Services, Inc. This loan carries interest of LIBOR plus 2.00% per annum (4.26% as of September 30, 2018) and is payable on May 1, 2023.

Mortgage payable

On March 1, 2014, the Company completed the purchase of the building that ROB Cemtrex GmbH occupies in Neulingen, Germany. The purchase was fully financed through Sparkasse Bank of Germany for $5,500,400 (€4,000,000 based upon the exchange rate on March 1, 2014). This mortgage carries interest of 3.00% and is payable over 17 years.

Notes payable

On December 15, 2015, the Company issued notes payable to the sellers of Advanced Industrial Services, Inc. for $1,500,000 to fund the purchase of AIS. These notes carry interest of 6% and are payable over 3 years.

Upon acquisition of AIS, the Company assumed a promissory note related to the purchase of shares from a former shareholder in 2011. The note requires ten annual payments of principal plus interest at treasury bill rates. The note matures in 2022.

Estimated maturities of our long-term debt over the next 5 years are as follows;

	2019		2020		2021		2022		2023		Thereafter		Total

Sparkasse Bank - €3,000,000 *	$	464,426	$	487,944	$	512,652	$	54,365	$	-	$	-	$	1,519,387
Fulton Bank - $5,250,000		693,292		718,141		749,519		782,269		427,758		-		3,370,979
Fulton Bank - $620,000		124,547		130,157		37,564		-		-		-		292,268
Fulton Bank - $400,000		74,880		78,613		82,141		85,792		59,553		-		380,979
Mortgage on Neulingen Building*		238,486		245,739		253,214		260,916		268,851		2,539,825		3,807,031
Notes payable - AIS		172,376		-		-		-		-		-		172,376
Promisorry Note - AIS		17,185		17,185		17,185		17,269		-		-		68,824
Capital Lease Obligations		22,718		23,104		20,977		-		-		-		66,799
Subsequent payment of notes payable in common stock														225,000
TOTAL	$	1,807,910	$	1,700,883	$	1,673,252	$	1,200,611	$	756,162	$	2,539,825	$	9,903,643

* based upon exchange rate on September 30, 2018