XML 69 R21.htm IDEA: XBRL DOCUMENT

Long-Term Liabilities

12 Months Ended

Sep. 30, 2019

NOTE 15 – LONG-TERM LIABILITIES

Loans payable to bank

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 (4.29% as of September 30, 2019) and is payable on December 15, 2022. This loan carries loan covenants which the Company was in compliance with as of September 30, 2019.

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 plus 2.00% per annum (4.04% as of September 30, 2019) and is payable on December 15, 2020. This loan carries loan covenants which the Company was in compliance with as of September 30, 2019.

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 (4.04% as of September 30, 2019) and is payable on May 1, 2023. This loan carries loan covenants which the Company was in compliance with as of September 30, 2019.

Notes payable

On December 15, 2015, the Company issued promissory notes payable to the sellers of AIS for $1,500,000 to fund the purchase of AIS. These notes carry interest of 6% and are due September 2022.

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.

On June 17, 2019, Cemtrex Inc., issued a note payable to an independent third-party in the amount of $1,528,000. This note carries interest of 10% an matures on December 17, 2020.

On July 15, 2019, Cemtrex Inc., issued a note payable to an independent third-party in the amount of $1,725,000. This note carries interest of 8% an matures on January 15, 2021.

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

	2020		2021		2022		2023		Total

Fulton Bank - $5,250,000		719,863		749,519		782,269		427,758	$	2,679,409
Fulton Bank - $620,000		130,157		37,564		-		-	$	167,721
Fulton Bank - $400,000		78,613		82,141		85,792		75,483	$	322,029
Promisorry Note - AIS		17,185		17,185		17,269		-	$	51,639
Capital Lease Obligations		22,452		20,061		-		-	$	42,513
Notes Payable Cemtrex, Inc. ⁽¹⁾		-		2,783,207		-		-	$	2,783,207
TOTAL	$	968,270	$	3,689,677	$	885,330	$	503,241	$	6,046,518

(1) Net of unamortized original issue discounts of $544,778