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LINES OF CREDIT AND LONG-TERM LIABILITIES
 12 Months Ended
Sep. 30, 2025
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, 2025, this loan had a balance of $3,176,096, with no remaining unamortized loan origination fees. There were $1,564,179 of available funds as of September 30, 2025.

 

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.

 

On May 29, 2025, the Company entered into a Standstill Agreement with Streeterville in which Streeterville agreed not to seek to redeem any portion of its two outstanding notes with the Company for a period of 60 days which expired on July 29, 2025 and in exchange, the Company agreed to pay to Streeterville the greater of $550,000 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. During the standstill period, the Company paid Streeterville $636,250 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, 2025. This loan is secured by the assets of the Company.

 

On November 21, 2024, the Company issued a note payable to Streeterville Capital, LLC in the amount of $580,000. This note carries interest of 8% and matures on May 21, 2026. After deduction of an original issue discount of $75,000 and legal fees of $5,000, the Company received $500,000 in cash. As of September 30, 2025, this note had unamortized original issue discount balance of $33,333.

 

 

Cemtrex Inc. and Subsidiaries

 

   Interest Rate  Maturity   September 30,2025   September 30, 2024 
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% (6.61% as of September 30, 2025, and 7.33% as of September 30, 2024).   1/31/2025    -    28,302 
                   
Fulton Bank - $312,000 fund equipment for AIS. The Company was in compliance with loan covenants as of September 30, 2025. This loan is secured by certain assets of the Company.  SOFR plus 2.37% (6.61% as of September 30, 2025, and 7.33% as of September 30, 2024).   9/30/2029    257,704    312,000 
                   
Fulton Bank mortgage $2,476,000. The Company was in compliance with loan covenants as of September 30, 2025. This loan is secured by the underlying asset.  SOFR plus 2.62% (6.86% on September 30, 2025, and 7.58% on September 30, 2024).   1/28/2040    2,034,048    2,113,337 
                   
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 (7.04% as of September 30, 2025, and 7.76% as of September 30, 2024).   9/30/2043    1,146,630    1,176,112 
                   
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 (7.04% as of September 30, 2025, and 7.76% as of September 30, 2024).   7/1/2030    1,613,677    1,881,621 
                   
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, 2025, and September 30, 2024.  8%  6/30/2025    -    244,766 
                   
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, 2025, and September 30, 2024.  8%  2/22/2027    7,871,777    12,195,789 
                   
Note payable - $580,000. Less original issue discount $75,000 and legal fees $5,000, net cash received $500,000. Unamortized original issue discount balance of $33,333 as of September 30, 2025.  8%  5/21/2026    621,773    - 
                   
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 
Less: Unamortized original issue discount           (33,333)    
Total debt          $13,512,276   $18,002,555 
Less: Current maturities           (8,925,497)   (4,732,377)
Long-term debt          $4,586,779   $13,270,178 

 

 

Cemtrex Inc. and Subsidiaries

 

Estimated maturities for the Company’s long-term debt over the next 5 years are as follows.

 

   2026   2027   2028   2029   2030   Thereafter   Total 
Fulton Bank - $312,000   58,086    62,126    66,426    71,066    -    -   $257,704 
Fulton Bank - $2.16 Mil   289,719    311,215    334,127    359,096    319,520    -   $1,613,677 
Fulton Bank - Mortgage #1   85,046    91,267    97,577    105,079    113,548    1,541,531   $2,034,048 
Fulton Bank - Mortgage #2   32,429    34,833    37,202    40,179    43,160    958,827   $1,146,630 
Notes Payable   8,460,217    -    -    -    -    -   $8,460,217 
TOTAL  $8,925,497   $499,441   $535,332   $575,420   $476,228   $2,500,358   $13,512,276