XML 23 R10.htm IDEA: XBRL DOCUMENT

DISCONTINUED OPERATIONS

3 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 3 – DISCONTINUED OPERATIONS

On November 22, 2022, the Company entered into two Asset Purchase Agreements and one Simple Agreement for Future Equity (“SAFE”) with the Company’s CEO, Saagar Govil, to secure the sale of the subsidiaries Cemtrex Advanced Technologies, Inc, which include the brand SmartDesk, and Cemtrex XR, Inc., which include the brands Cemtrex XR, Virtual Driver Interactive, Bravo Strong, and good tech (formerly Cemtrex Labs), to Mr. Govil.

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 during the three-month periods ended December 31, 2023, and 2022, has recognized $13,282, and $4,427, respectively, 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 recorded during the three months ended December 31, 2022, included in Income/(loss) from discontinued operations, net of tax in the accompanying condensed consolidated statement of Operations:

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	)

As of December 31, 2023, and September 30, 2023, there were no assets or liabilities included within discontinued operations on the Company’s Condensed Consolidated Balance Sheets.

During the first quarter of fiscal 2023, Vicon completed the closure of its discontinued operating entity Vicon Systems, Ltd. located in Israel. The Company received funds related to benefit obligations 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.

Income/(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, 2023 and 2022, are as follows:

		2023				2022
		For the three months ended December 31,
		2023				2022

Total net sales		$	-			$	649,061
Cost of sales			-				228,086
Operating, selling, general and administrative expenses			-				1,295,572
Other (income)/expenses			-				3,195
Income (loss) from discontinued operations			-				(877,792	)
Amortization of discounted royalties			13,282				4,427
Loss on sale of discontinued operations			-				(2,455,341	)
Adjustment of benefit obligation			-				89,085
Income tax provision			2,790				-
Discontinued operations, net of tax		$	10,492			$	(3,239,621	)