SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 3 – SEGMENT AND GEOGRAPHIC INFORMATION

During the first quarter of fiscal year 2023, the Company reorganized its reporting segments to be in line with its current structure. The Company reports and evaluates financial information for three current segments: the Security segment, Industrial Services segment and the Corporate segment. The historical segment information has been recast to conform to the current segment structure. All intersegment transactions have been eliminated, 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 four operating segments 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.

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:

	Year ended September 30, 2023												Year ended September 30, 2022
	Security			Industrial Services			Corporate			Consolidated			Security			Industrial Services			Corporate			Consolidated
Revenues	$	34,359,470		$	25,009,092		$	-		$	59,368,562		$	23,820,764		$	21,206,016		$	-		$	45,026,780
Cost of revenues		17,253,170			16,429,566			-			33,682,736			13,597,060			14,863,792			-			28,460,852
Gross profit	$	17,106,300		$	8,579,526		$	-		$	25,685,826		$	10,223,704		$	6,342,224		$	-		$	16,565,928
Operating expenses
Sales, general, and administrative		14,422,950			4,755,998			3,724,317			22,903,265			12,150,249			5,008,695			4,023,513			21,182,457
Depreciation and amortization		254,392			719,404			52,279			1,026,075			906,272			704,246			141,580			1,752,098
Goodwill impairment		-			-			-			-			3,316,000			-			-			3,316,000
Research and development		3,267,994			-			-			3,267,994			4,444,488			-			-			4,444,488
Operating (loss)/income	$	(839,036	)	$	3,104,124		$	(3,776,596	)	$	(1,511,508	)	$	(10,593,305	)	$	629,283		$	(4,165,093	)	$	(14,129,115	)
Other income/(expense)	$	113,846		$	(166,369	)	$	(4,437,082	)	$	(4,489,605	)	$	686,413		$	(181,160	)	$	2,796,782		$	3,302,035

	September 30,		September 30,
	2023		2022
Identifiable Assets
Security	$	21,829,183	$	15,257,235
Industrial Services		23,781,349		16,658,984
Corporate		2,843,211		9,869,716
Discontinued operations		-		3,971,693
Total Assets	$	48,453,743	$	45,757,628

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,
	2023		2022
Revenues
United States	$	53,905,149	$	40,977,549
United Kingdom		3,301,682		3,989,223
India		2,161,731		60,008
	$	59,368,562	$	45,026,780

	September 30,		September 30,
	2023		2022
Long-lived Assets
United States	$	15,420,489	$	11,118,962
United Kingdom		328,819		397,968
India		138,907		311,601
	$	15,888,215	$	11,828,531