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Vicon Industries, Inc. (Variable Interest Entity)
6 Months Ended
Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Vicon Industries, Inc. (Variable Interest Entity)

NOTE 4 – VICON INDUSTRIES, INC. (VARIABLE INTEREST ENTITY)

 

On March 23, 2018, in a private resale transaction, the Company purchased 7,284,824 shares of common stock and a warrant to purchase an additional 1,500,000 shares of common stock of Vicon Industries, Inc. (OTCMKTS: VCON), (“Vicon”), from former Vicon shareholder NIL Funding Corporation, pursuant to the terms of a Securities Purchase Agreement. The Company’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. The Company purchased the shares of common stock and warrant of Vicon Industries in exchange for 1,012,625 shares of The Company common stock. Following the closing of the transaction, Saagar Govil, The Company’s Chairman and Chief Executive Officer, and Aron Govil, The Company’s Executive Director, joined the Vicon Industries Board of Directors and Saagar Govil assumed the position of Chief Executive Officer of Vicon Industries.

 

Vicon is a variable interest entity of which the Company beneficially owned a minority 46.0% interest at March 31, 2019, and, for accounting purposes under FASB guidelines, is considered the primary beneficiary among the equity participants based on qualitative and quantitative criteria. Vicon was incorporated in 1967 and develops video management software and also designs, assembles and markets a wide range of video system components, comprised principally of cameras, network video servers/recorders, encoders and mass storage units, used in security, surveillance, safety, and control applications by a broad group of end users. A video system is typically a private (or hybrid public/private) network that can transmit and receive video, audio and data signals in accordance with the operational needs of the user. Vicon’s primary business focus is the design of network video systems that it produces and sells worldwide, primarily to authorized dealers, system integrators, government entities and security products distributors.