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BUSINESS COMBINATION | 12 Months Ended
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Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
BUSINESS COMBINATION | NOTE 22 – BUSINESS COMBINATION On July 1, 2023, the Company under AIS, completed the acquisition of a leading service contractor and steel fabricator that specializes in industrial and water treatment markets, Heisey Mechanical, Ltd. (“Heisey”) based in Columbia, Pennsylvania. The real estate of the business was purchased at fair market value on August 30, 2023, for $1,500,000 in a separate transaction. Heisey provides the water treatment industry with a variety of fabricated vessels and equipment including ASME pressure vessels, heat exchangers, mix tanks, reactors, and other specialized fabricated equipment. Additionally, the contracting team assists with installation and service of fabricated items. The company has over 33,000 square feet of manufacturing floor space in its facility and an experienced staff of fabricators, welders, and field mechanics. The purchase price allocation presented below compares the preliminary allocation which was developed based on an estimate of fair values of Heisey’s identifiable tangible and intangible assets acquired and liabilities assumed as of July 1, 2023, compared to the final allocation. The consideration transferred and allocation of Heisey’s tangible and intangible assets and liabilities, are as follows. SCHEDULE OF BUSINESS ACQUISITION OF TANGIBLE AND INTANGIBLE ASSETS AND LIABILITIES
|  | Preliminary |  |  | Final |
Consideration Transferred: |  |  |  |  |  |  |  |
Cash |  | $ | 393,291 |  |  | $ | 393,291 |
Seller’s note |  |  | 240,000 |  |  |  | 240,000 |
Financed amount |  |  | 2,160,000 |  |  |  | 2,160,000 |
Total consideration transferred |  | $ | 2,793,291 |  |  | $ | 2,793,291 |
Purchase Price Allocation: |  |  |  |  |  |  |  |
Inventory |  |  | 300,000 |  |  |  | 443,069 |
Contract assets |  |  | 667,259 |  |  |  | 667,259 |
Machinery and equipment |  |  | 1,625,000 |  |  |  | 1,625,000 |
Contract liabilities |  |  | (216,469 | ) |  |  | (216,469 | )
Accrued expenses |  |  | (57,499 | ) |  |  | (57,499 | )
Goodwill |  |  | 475,000 |  |  |  | 331,931 |
Total consideration transferred |  | $ | 2,793,291 |  |  | $ | 2,793,291 |
The unaudited pro forma summary below presents the results of operations as if the Heisey acquisition occurred on October 1, 2022. Proforma adjustments for the twelve months ended September 30, 2023, includes $127,800 of depreciation expense from acquired fixed assets, $127,883 of interest expense on the debt used in the acquisition. The pro forma summary uses estimates and assumptions based on information available at the time. Management believes the estimates and assumptions to be reasonable; however, actual results may have differed significantly from this unaudited pro forma financial information. The unaudited pro forma information does not reflect any cost savings, operating synergies or revenue enhancements that might have been achieved from combining the operations. SCHEDULE OF PRO FORMA FINANCIAL INFORMATION
|  | Unaudited |
|  | For the year ended |
|  | September 30, 2023 |
Revenues |  | $ | 66,274,838 |
Net loss |  |  | (9,173,748 | )
On August 30, 2023, the Company acquired a mortgage in the amount of $1,200,000 from Fulton Bank to finance the purchase of the properties formerly owned by Heisey Mechanical Ltd. The mortgage carries interest at the Secured Overnight Financing Rate (SOFR) plus 2.8% and matures on September 30, 2043.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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