XML 40 R27.htm IDEA: XBRL DOCUMENT
v3.24.0.1

LINES OF CREDIT AND LONG-TERM LIABILITIES | 3 Months Ended
--- | ---
Dec. 31, 2023
Debt Disclosure [Abstract] |
LINES OF CREDIT AND LONG-TERM LIABILITIES | NOTE 20 – 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 December 31, 2023, the Company had enough eligible assets to access the full credit line. The Company was in compliance with all loan covenants as of December 31, 2023. The funds were used to pay the NIL Funding term loan and will fund operations of the Vicon entity. As of December 31, 2023, this loan had a balance of $3,357,324, with $54,400 of unamortized loan origination fees, which is included in “Prepaid expenses” on the accompanying Condensed Consolidated Balance Sheet. There were $1,642,676 in available funds as of December 31, 2023. Standstill Agreement On August 31, 2023, the Company and Streeterville Capital, LLC 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. The following table outlines the Company’s secured liabilities: SCHEDULE OF LINES OF CREDIT AND LIABILITIES
|  |  |  |  |  | December 31, |  |  | September 30, |
|  | Interest Rate |  | Maturity |  | 2023 |  |  | 2023 |
Fulton Bank - $360,000 fund equipment for AIS. The Company was in compliance with loan covenants as of December 31, 2023. This loan is secured by certain assets of the Company. |  | SOFR plus 2.37% (7.75% as of December 31, 2023 and 7.68% as of September 30, 2023). |  | 1/31/2025 |  |  | 89,125 |  |  |  | 108,700 |
Fulton Bank mortgage $2,476,000. The Company was in compliance with loan covenants as of December 31, 2023. This loan is secured by the underlying asset. |  | SOFR plus 2.62% (8.00% on December 31, 2023 and (7.93% on September 30, 2023). |  | 1/28/2040 |  |  | 2,163,687 |  |  |  | 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 (8.18% as of December 31, 2023 and 8.11% as of September 30, 2023). |  | 9/30/2043 |  |  | 1,194,480 |  |  |  | 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 (8.18% as of December 31, 2023 and 8.11% as of September 30, 2023). |  | 7/1/2030 |  |  | 2,063,927 |  |  |  | 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 December 31, 2023 and September 30, 2023. |  | 8% |  | 6/30/2024 |  |  | 4,691,520 |  |  |  | 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 December 31, 2023 and September 30, 2023. |  | 8% |  | 2/22/2025 |  |  | 11,475,435 |  |  |  | 11,243,233 |
Note Payable - $240,000 For the purchase of Heisey Mechanical, Ltd. |  | 6% |  | 7/1/2024 |  |  | 240,000 |  |  |  | 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 |  |  | 80,994 |  |  |  | 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 |  |  | 450,000 |  |  |  | 675,000 |
HDFC Bank Auto Loan - $28,331, for the purchase of automobile at India office. Monthly payments of ₹65,179 ($784.89 as translated as of December 31, 2023). Automobile is collateral for this loan. |  | 8.70% |  | 6/5/2027 |  |  | 28,331 |  |  |  | - |
Total secured liabilities |  |  |  |  |  | $ | 22,477,499 |  |  | $ | 24,437,059 |
Less: Current maturities |  |  |  |  |  |  | (15,717,081 | ) |  |  | (14,507,711 | )
Less: Unamortized original issue discount |  |  |  |  |  |  | - |  |  |  | - |
Secured liabilities, Long Term |  |  |  |  |  | $ | 6,760,418 |  |  | $ | 9,929,348 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration