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DISCONTINUED OPERATIONS | 3 Months Ended
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Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | NOTE 3 – DISCONTINUED OPERATIONS Due to the on-going losses and risk associated with the SmartDesk business the Company has valued the royalty and SAFE agreement associated with the SmartDesk sale at $0 and considers such consideration to be a gain contingency. Based on sales projections for Cemtrex XR, Inc., the Company does not believe that it will exceed the sales levels required to exceed the $820,000 royalties due and has not accounted for any additional royalties at this time. In accordance with ASC 310 – Receivables, the Company has discounted the royalties due and has recognized $660,621 of royalties due and will amortize the remaining amount over the period the royalties are due. The following table summarizes the loss on the sale: SUMMARY OF LOSS ON SALE
Purchase Price |  | $ | 745,621 |
Less cash and cash equivalents transferred |  |  | (699,423 | )
Less Liabilities assumed |  |  | (10,924 | )
Net purchase price |  | $ | 35,274 |
Assets Sold |  |  |  |
Accounts receivable, net |  | $ | 625,638 |
Inventory, net |  |  | 980,730 |
Prepaid expenses and other assets |  |  | 502,577 |
Property and equipment, net |  |  | 837,808 |
Goodwill |  |  | 598,392 |
Total Assets Sold |  |  | 3,545,145 |
Liabilities Transferred |  |  |  |
Accounts payable |  |  | 370,774 |
Short-term liabilities |  |  | 364,775 |
Long-term liabilities |  |  | 318,981 |
Total Liabilities Transferred |  |  | 1,054,530 |
Net assets sold |  | $ | 2,490,615 |
Pretax loss on sale of Cemtrex Advanced Technologies, Inc, and Cemtrex XR, Inc.Companies |  | $ | (2,455,341 | )
Assets and liabilities included within discontinued operations on the Company’s Condensed Consolidated Balance Sheets at December 31, 2022 and September 30, 2022 are as follows; SCHEDULE OF ASSETS AND LIABILITIES INCLUDED WITHIN DISCONTINUED OPERATIONS
|  | December 31, |  |  | September 30, |
|  | 2022 |  |  | 2022 |
Assets |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |
Cash and equivalents |  | $ | - |  |  | $ | 714,420 |
Trade receivables, net |  |  | - |  |  |  | 561,470 |
Inventory –net of allowance for inventory obsolescence |  |  | - |  |  |  | 1,043,865 |
Prepaid expenses and other assets |  |  | - |  |  |  | 153,461 |
Total current assets |  |  | - |  |  |  | 2,473,216 |
Property and equipment, net |  |  | - |  |  |  | 825,850 |
Other |  |  | - |  |  |  | 672,627 |
Total Assets |  | $ | - |  |  | $ | 3,971,693 |
Liabilities |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |
Accounts payable |  | $ | - |  |  | $ | 205,622 |
Short-term liabilities |  |  | - |  |  |  | 464,429 |
Deposits from customers |  |  | - |  |  |  | 125,032 |
Accrued expenses |  |  | - |  |  |  | 10,136 |
Total current liabilities |  |  | - |  |  |  | 805,219 |
Long-term liabilities |  |  |  |  |  |  |  |
Deferred revenue |  |  |  |  |  |  | 6,273 |
Total long-term liabilities |  |  | - |  |  |  | 6,273 |
Total liabilities |  | $ | - |  |  | $ | 811,492 |
Loss from discontinued operations, net of tax and the loss on sale of discontinued operations, net of tax, of Cemtrex Advanced Technologies, Inc. and Cemtrex XR, Inc., sold during the first quarter of fiscal year 2023, which are presented in total as discontinued operations, net of tax in the Company’s Condensed Consolidated Statements of Operations for the three-month periods ended December 31, 2022 and 2021, are as follows:
|  | 2022 |  |  | 2021 |
|  | Three months ended December 31, |
|  | 2022 |  |  | 2021 |
Total net sales |  | $ | 649,061 |  |  | $ | 1,259,904 |
Cost of sales |  |  | 228,086 |  |  |  | 612,150 |
Operating, selling, general and administrative expenses |  |  | 1,295,572 |  |  |  | 1,402,961 |
Other expenses |  |  | 3,195 |  |  |  | 3,034 |
Income (loss) from discontinued operations |  |  | (877,792 | ) |  |  | (758,241 | )
Amortization of discounted royalties |  |  | 4,427 |  |  |  | - |
Loss on sale of discontinued operations |  |  | (2,455,341 | ) |  |  | - |
Income tax provision |  |  | - |  |  |  | - |
Discontinued operations, net of tax |  |  | (3,328,706 | ) |  |  | (758,241 | )
During the quarter ended December 31, 2022, Vicon completed the closure of its discontinued operating entity Vicon Systems, Ltd. located in Israel. The Company received funds of $96,095, which at the time of operational closure were not guaranteed to be retrievable. The company paid $7,010 in consulting fees for assistance in retrieving these funds. The net amount of $89,085 is recognized on the Company’s Condensed Consolidated Income Statement as part of the Loss on Discontinued Operations.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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