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LINES OF CREDIT AND LONG-TERM LIABILITIES | 12 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
LINES OF CREDIT AND LONG-TERM LIABILITIES | NOTE 16 – LINES OF CREDIT AND LONG-TERM LIABILITIES Revolving line of credit On October 5, 2023, the Company obtained a revolving line of credit in the amount of $5,000,000 from Pathward, N.A. The interest rate will be a rate which is equal to three percentage points (3%) in excess of that rate shown in the Wall Street Journal as the prime rate (the “Effective Rate”) and matures twenty-four months from the closing date. This loan is secured by the Company’s eligible accounts receivable and eligible finished goods inventory. The Company’s ability to borrow against the line of credit is limited by the value of the eligible assets. As of September 30, 2024, the Company had enough eligible assets to access the full credit line. The Company was in compliance with all loan covenants as of September 30, 2024. The funds were used to pay the NIL Funding term loan and will fund operations of the Vicon entity. As of September 30, 2024, this loan had a balance of $3,125,011, with no remaining unamortized loan origination fees. There were $1,874,989 in available funds as of September 30, 2024. Standstill Agreement On August 31, 2023, the Company and Streeterville Capital, LLC (“Streeterville”) entered into a standstill agreement for the two notes held by Streeterville Capital, LLC. The terms of this agreement are the earlier of (a) the date that is ninety (90) days from the Effective Date, and (b) the date that the Company completes an equity offering on either Form S-1 or Form S-3 (the “Standstill Period”), Streeterville Capital, LLC will not seek to redeem any portion of the Notes, and (c) the Company agrees to prepay to Lender fifty percent (50%) of the net proceeds received by Borrower in connection with all equity financings until such time as Borrower has raised at least $5,000,000 in aggregate net proceeds. On April 30, 2024, the Company entered into a Standstill Agreement with Streeterville Capital, LLC (“Streeterville”) in which Streeterville agreed not to seek to redeem any portion of its two outstanding notes with the Company for a period of one year expiring on April 30, 2025, with $239,813 classified as short-term, and in exchange, the Company agreed to pay to Streeterville the greater of $4,000,000 or fifty percent (50%) of the net proceeds the Company receives from the sale of any of its common stock or preferred stock during the Standstill Period. To date, the Company has paid Streeterville $4,588,897 under this agreement. Loans Payable to Bank On September 5, 2024, the Company acquired a loan from Fulton Bank in the amount of $312,000 in order to fund new equipment for Advanced Industrial Services, Inc. This loan carries interest of SOFR plus 2.37% per annum. This loan carries loan covenants which the Company was in compliance with as of September 30, 2024. This loan is secured by the assets of the Company. On December 5, 2023, the Company acquired a loan from HDFC Bank in the amount of ₹2,352,700 ($28,219 on date of loan acquisition) in order to fund a vehicle for Cemtrex Technologies Pvt, Ltd., Inc. This loan carries interest of 8.7% per annum. This loan was paid in full prior to the maturity date on June 3, 2024. SCHEDULE OF LINES OF CREDIT AND LONG TERM LIABILITIES
|  |  |  |  |  |  | September 30, |  |  | September 30, |
|  | Interest Rate |  | Maturity |  |  | 2024 |  |  | 2023 |
Fulton Bank - $360,000 fund equipment for AIS. The Company was in compliance with loan covenants as of September 30, 2024. This loan is secured by certain assets of the Company. |  | SOFR plus 2.37% (7.33% as of September 30, 2024 and 7.68% as of September 30, 2023). |  |  | 1/31/2025 |  |  |  | 28,302 |  |  |  | 108,700 |
Fulton Bank - $360,000 fund equipment for AIS. The Company was in compliance with loan covenants as of September 30, 2024. This loan is secured by certain assets of the Company. |  | SOFR plus 2.37% (7.33% as of September 30, 2024 and 7.68% as of September 30, 2023). |  |  | 1/31/2025 |  |  |  | 28,302 |  |  |  | 108,700 |
Fulton Bank - $312,000 fund equipment for AIS. The Company was in compliance with loan covenants as of September 30, 2024. This loan is secured by certain assets of the Company. |  | SOFR plus 2.37% (7.33% as of September 30, 2024 and 7.68% as of September 30, 2023). |  |  | 9/30/2029 |  |  |  | 312,000 |  |  |  | - |
Fulton Bank mortgage $2,476,000. The Company was in compliance with loan covenants as of September 30, 2024. This loan is secured by the underlying asset. |  | SOFR plus 2.62% (7.58% on September 30, 2024 and (7.93% on September 30, 2023). |  |  | 1/28/2040 |  |  |  | 2,113,337 |  |  |  | 2,180,115 |
Fulton Bank (HEISEY) - $1,200,000 mortgage loan; requires monthly principal and interest payments through August 1, 2043 with a final payment of remaining principal on September 1, 2043; The loan is collateralized by 615 Florence Street and 740 Barber Street and guaranteed by AIS and Cemtrex. |  | SOFR plus 2.80% per annum (7.76% as of September 30, 2024 and 8.11% as of September 30, 2023). |  |  | 9/30/2043 |  |  |  | 1,176,112 |  |  |  | 1,200,000 |
Fulton Bank (HEISEY) - $2,160,000. promissory note related to purchase of Heisey; requires 84 monthly principal and interest payments; The note is collateralized by the Heisey assets and guaranteed by the Parent; matures in 2030. |  | SOFR plus 2.80% per annum (7.76% as of September 30, 2024 and 8.11% as of September 30, 2023). |  |  | 7/1/2030 |  |  |  | 1,881,621 |  |  |  | 2,122,565 |
Note payable - $5,755,000 - Less original issue discount $750,000 and legal fees $5,000, net cash received $5,000,000 Unamortized original issue discount balance of $0, as of September 30, 2024 and September 30, 2023. |  | 8% |  |  | 6/30/2025 |  |  |  | 244,766 |  |  |  | 4,596,589 |
Note payable - $9,205,000. Less original issue discount $1,200,000 and legal fees $5,000,net cash received $8,000,000. 28,572 shares of common stock valued at $700,400 recognized as additional original issue discount. Unamortized original issue discount balance of $0 as of September 30, 2024 and September 30, 2023. |  | 8% |  |  | 2/22/2026 |  |  |  | 12,195,789 |  |  |  | 11,243,233 |
Note Payable - $240,000 For the purchase of Heisey Mechanical, Ltd. |  | 6% |  |  | 7/1/2024 |  |  |  | - |  |  |  | 240,000 |
Term Loan Agreement with NIL Funding Corporation (“NIL”) - $5,600,000 The Company was in compliance with loan covenants as of September 30, 2023. |  | 11.50% |  |  | 12/31/2024 |  |  |  | - |  |  |  | 1,979,743 |
Paycheck Protection Program loan - $121,400 - The issuing bank determined that this loan qualifies for loan forgiveness; however the Company is awaiting final approval from the Small Business Administration. |  | 1% |  |  | 5/5/2025 |  |  |  | 50,628 |  |  |  | 91,114 |
Software License Agreement - $1,125,000, for the purchase of software source code for use in our Security segment products |  | N/A |  |  | 6/3/2024 |  |  |  | - |  |  |  | 675,000 |
Total debt |  |  |  |  |  |  |  | $ | 18,002,555 |  |  | $ | 24,437,059 |
Less: Current maturities |  |  |  |  |  |  |  |  | (4,732,377 | ) |  |  | (14,507,711 | )
Long-term debt |  |  |  |  |  |  |  | $ | 13,270,178 |  |  | $ | 9,929,348 |
Estimated maturities of the Company’s long-term debt over the next 5 years are as follows. SCHEDULE OF ESTIMATED MATURITIES OF LONG TERM DEBT
|  | 2025 |  |  | 2026 |  |  | 2027 |  |  | 2028 |  |  | 2029 |  |  | Thereafter |  |  | Total |
Fulton Bank - $360,000 |  |  | 28,302 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  | $ | 28,302 |
Fulton Bank - $360,000 |  |  | 28,302 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  | $ | 28,302 |
Fulton Bank - $312,000 |  |  | 53,671 |  |  |  | 57,643 |  |  |  | 62,210 |  |  |  | 67,114 |  |  |  | 71,362 |  |  |  | - |  |  | $ | 312,000 |
Fulton Bank - $2.16 Mil |  |  | 264,301 |  |  |  | 262,135 |  |  |  | 284,544 |  |  |  | 308,869 |  |  |  | 335,063 |  |  |  | 426,709 |  |  | $ | 1,881,621 |
Fulton Bank - Mortgage #1 |  |  | 72,410 |  |  |  | 73,009 |  |  |  | 85,701 |  |  |  | 92,430 |  |  |  | 100,563 |  |  |  | 1,689,224 |  |  | $ | 2,113,337 |
Fulton Bank - Mortgage #2 |  |  | 28,417 |  |  |  | 26,792 |  |  |  | 29,087 |  |  |  | 31,578 |  |  |  | 34,030 |  |  |  | 1,026,208 |  |  | $ | 1,176,112 |
PPP Loans |  |  | 40,511 |  |  |  | 10,117 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  | $ | 50,628 |
Notes Payable |  |  | 4,244,765 |  |  |  | 8,195,790 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  | $ | 12,440,555 |
TOTAL |  | $ | 4,732,377 |  |  | $ | 8,625,486 |  |  | $ | 461,542 |  |  | $ | 499,991 |  |  | $ | 541,018 |  |  | $ | 3,142,141 |  |  | $ | 18,002,555 |

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