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Short-Term Liabilities
6 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Short-Term Liabilities

NOTE 13 – SHORT-TERM LIABILITES

 

The Company’s subsidiaries have revolving lines of credit with various banks in order to fund operations. As of March 31, 2019, and September 30, 2018, the balances of these accounts were $2,028,974 and $2,639,542, respectively.

 

On February 12, 2018 the Company’s subsidiary ROB Cemtrex GmbH obtained a $3,680,079 (€3,000,000 based on the exchange rate at the time) secured loan with Deutsche Bank. This loan carries interest of EURIBOR (Euro Interbank Offer Rate) plus 1.25% per annum (1.133% as of December 31, 2018) and is payable on January 1, 2020. ROB Cemtrex GmbH has pledged its receivables to secure this loan. As of March 31, 2019, the loan had a balance of $3,443,353, based on the exchange rate at the time.

 

On November 15, 2017, the Company issued a note payable to an unrelated third party, for $2,300,000. This note carries interest of 8% and is due after 18 months. At September 30, 2018 1,475,000 of this note was outstanding with $225,000 classified as long-term. During the six months ended March 31, 2019, 1,152,912 shares of the Company’s common stock have been issued to satisfy $775,000 of this note. As of March 31, 2019, $700,000 of this note remains outstanding with $275,000 classified as long-term. Additionally, during the six months ended March 31, 2019, the Company recognized $163,890 of additional interest expense due to the value of stock given exceeded the note payable settled.

 

On May 11, 2018, the Company issued a note payable to an unrelated third party, for $1,725,000. This note carries interest of 8% and is due after 18 months.

 

On September 21, 2018, the Company’s variable interest entity, Vicon, 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 March 31, 2019, $5,350,000 of this note remains outstanding.

 

As of March 31, 2019, and September 30, 2018 there were $3,096,907 and $1,807,910 in current portion of long-term liabilities, respectively.