XML 27 R12.htm IDEA: XBRL DOCUMENT v3.24.4
SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 3 – SEGMENT AND GEOGRAPHIC INFORMATION

 

The Company’s reporting segments consist of Security and Industrial Services. Additionally, the Company’s operational structure also reports unallocated corporate expenses. All intersegment transactions have been eliminated and values are presented net of eliminations.

 

Operating segments

 

The Company determines its reporting units in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 280, Segment Reporting. The Company evaluates a reporting unit by first identifying its operating segments under ASC 280. The Company operates as two operating segments and unallocated corporate expenses which is reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker is responsible for the allocation of resources and assessing the performance of the operating segment and has been identified as Saagar Govil, the CEO of the Company.

 

Unallocated corporate expenses mainly relate to payroll and benefits for corporate officers, investor relation expenses, accounting expenses related audit and taxes, legal expenses related to corporate matters, consulting expenses related to accounting and corporate matters, and interest expense on notes payable.

 

Security

 

Cemtrex’s Security segment operates under the Vicon brand that deliver cutting-edge software and hardware technologies:

 

Vicon Industries, a majority owned subsidiary, provides end-to-end security solutions to meet the toughest corporate, industrial and governmental security challenges. Vicon’s products include browser-based video monitoring systems and analytics-based recognition systems, cameras, servers, and access control systems for every aspect of security and surveillance in industrial and commercial facilities, federal prisons, hospitals, universities, schools, and federal and state government offices. Vicon provides cutting edge, mission critical security and video surveillance solutions utilizing Artificial Intelligence (AI) based data algorithms.

 

 

Industrial Services

 

Cemtrex’s Industrial Services segment operates through the brand, Advanced Industrial Services (“AIS”), that offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. We install high precision equipment in a wide variety of industrial markets like automotive, printing and graphics, industrial automation, packaging, and chemicals among others. We are a leading provider of reliability-driven maintenance and contracting solutions for the machinery, packaging, printing, chemical, and other manufacturing markets. The focus is on customers seeking to achieve greater asset utilization and reliability to cut costs and increase production from existing assets, including small projects, sustaining capital, turnarounds, maintenance, specialty welding services, and high-quality scaffolding.

 

The following tables summarize the Company’s segment information.

 

   Security   Industrial Services   Corporate   Consolidated   Security   Industrial Services   Corporate   Consolidated 
   For the year ended September 30, 2024   For the year ended September 30, 2023  
   Reportable Segments             Reportable Segments         
   Security   Industrial Services   Corporate   Consolidated   Security   Industrial Services   Corporate   Consolidated 
Revenues  $32,021,899   $34,841,985   $-   $66,863,884   $34,359,470   $25,009,092   $-   $59,368,562 
Cost of revenues   15,854,560    23,531,120    -    39,385,680    17,253,170    16,429,566    -    33,682,736 
Gross profit  $16,167,339   $11,310,865   $-   $27,478,204   $17,106,300   $8,579,526   $-   $25,685,826 
Operating expenses                                        
General, and administrative   16,073,558    7,074,828    4,436,787    27,585,173    14,422,950    4,755,998    3,724,317    22,903,265 
Depreciation and amortization   329,294    945,552    -    1,274,846    254,392    719,404    52,279    1,026,075 
Research and development   3,357,455    -    -    3,357,455    3,267,994    -    -    3,267,994 
Goodwill Impairment   530,475    -    -    530,475    -    -    -    - 
Operating (loss)/income  $(4,123,443)  $3,290,485   $(4,436,787)  $(5,269,745)  $(839,036)  $3,104,124   $(3,776,596)  $(1,511,508)
                                         
Other (expense)/income  $(492,330)  $(295,157)  $(1,419,117)  $(2,206,604)  $113,846   $(166,369)  $(4,437,082)  $(4,489,605)

 

   September 30,   September 30, 
   2024   2023 
Identifiable Assets          
Security  $17,253,328   $21,829,183 
Industrial Services   24,576,055    23,781,349 
Corporate   2,286,075    2,843,211 
Total Assets  $44,115,458   $48,453,743 

 

The Company generates revenue from product sales and services from its subsidiaries located in the United States, the United Kingdom, and India. Revenue and long-lived asset information for the Company is as follows.

 

   For the year ended 
   September 30,   September 30, 
Revenues  2024   2023 
United States  $62,921,388   $53,905,149 
United Kingdom   3,251,130    3,301,682 
India   691,366    2,161,731 
   $66,863,884   $59,368,562 

 

   September 30,   September 30, 
Long-lived Assets  2023   2023 
United States  $14,253,674   $15,420,489 
United Kingdom   218,346    328,819 
India   303,283    138,907 
   $14,775,303   $15,888,215