v3.26.1
LINES OF CREDIT AND LONG-TERM LIABILITIES
 9 Months Ended
Jun. 30, 2026
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”) matures twenty-four months from the closing date, and if not specifically terminated, renews for one-year periods. 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 June 30, 2026, the Company had enough eligible assets to access approximately $3,015,000 of the credit line. The Company was in compliance with all loan covenants as of June 30, 2026. As of June 30, 2026, and September 30, 2025, this loan had a balance of $2,392,830, and $3,176,096, respectively.

 

Notes payable

 

On November 7, 2025, the Company issued a note payable to Streeterville Capital, LLC in the amount of $7,025,000. This note carries interest between November 7, 2025, and December 31, 2025, of SOFR (3.87% as of December 31, 2025), after December 31, 2025, 8%, This Note matures eighteen (18) months from the issuance date with redemptions beginning at six (6) months from the issuance date. After deduction of legal fees of $25,000, the Company received $7,000,000 in cash. Additionally, this note contains an additional interest provision that if this note is outstanding on January 1, 2026, a one-time additional interest fee of $1,050,000 which is being amortized over the remaining life of the loan, as of June 30, 2026, there is $656,250 of unamortized interest. As of June 30, 2026, this note had a balance of $7,996,765.

 

On February 5, 2026, the company issued a promissory note to Fulton Bank in the amount of $600,000 for the purchase of Richland Industries, LLC. This note carries interest of 6.09% requires 60 monthly payments of interest and principal and matures on February 1, 2031. As of June 30, 2026, the note had a balance of $564,902.

 

On February 5, 2026, the Company acquired a mortgage in the amount of $3,920,000 from Fulton Bank to finance the purchase of the property formerly owned by Richland Industries, LLC. The mortgage carries interest at the Secured Overnight Financing Rate (SOFR) plus 2.75% and matures on February 1, 2046. As of June 30, 2026, this loan had a balance of $3,888,800.

 

 

The following table outlines the Company’s secured liabilities:

 

   Interest Rate   Maturity  June 30,
2026		   September 30,
2025		 
Fulton Bank - $312,000 fund equipment for AIS. This loan is secured by certain assets of the Company.  SOFR plus 2.37% (6.05% as of June 30, 2026 and 6.61% as of September 30, 2025).   9/30/2029   214,165    257,704 
Fulton Bank - $312,000 fund equipment for AIS. This loan is secured by certain assets of the Company.  SOFR plus 2.37% (6.05% as of June 30, 2026 and 6.61% as of September 30, 2025).   9/30/2029   214,165    257,704 
                  
Fulton Bank mortgage $2,476,000. This loan is secured by the underlying asset.  SOFR plus 2.62% (6.30% on June 30, 2026 and 6.86% on September 30, 2025).    1/28/2040   1,967,176    2,034,048 
                  
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 (6.48% as of June 30, 2026 and 7.04% as of September 30, 2025).   9/30/2043   1,121,269    1,146,630 
                  
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 Cemtrex; matures in 2030.  SOFR plus 2.80% per annum (6.48% as of June 30, 2026 and 7.04% as of September 30, 2025).   7/1/2030   1,396,148    1,613,677 
                  
Fulton Bank (AIS - TN) - $3,920,000 mortgage loan; requires monthly principal and interest payments through January 1, 2046 with a final payment of remaining principal on February 1, 2046; The loan is collateralized by 1905 Mines Rd. and guaranteed by AIS and Cemtrex.  SOFR plus 2.75% per annum (6.43% as of June 30, 2026).   2/1/2046   3,888,800      
                  
Fulton Bank (AIS - TN) - $600,000. promissory note related to purchase of AIS - TN; requires 60 monthly principal and interest payments; The note is collateralized by the AIS - TN assets and guaranteed by AIS and Cemtrex; matures in 2031.  6.09%  2/1/2031   564,902      
                  
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   140,892    7,871,777 
                  
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 
                  
Note payable - $7,025,000. Less legal fees $25,000,net cash received $7,000,000. A $1,050,000 additional interest provision was recorded on January 1, 2026  Between November 7, 2025 and December 31, 2025, SOFR (3.87% as of December 31, 2025), after December 31, 2025, 8%   5/6/2027   7,996,765    - 
                  
Less: Unamortized original issue discount          (656,250)   (33,333)
Total debt         $16,633,867   $13,512,276 
Less: Current maturities          (8,055,879)   (8,925,497)
Long-term debt         $8,577,988   $4,586,779