CEMTREX INC
For the period ended Sep 30, 2025. Filed Dec 29, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Dec 29, 2025
CETX$0.63-18.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-09-30; filed 2024-12-30.
0001493152-24-052491
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-09-30; filed 2025-12-29.
0001493152-25-029383
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 61 previous paragraphs and 68 current paragraphs.
36 unchanged; 21 reworded; 11 added; 3 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report
Critical Accounting Estimates
Current report
Income Taxes
Current report
The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities and the expected benefits of net operating loss carryforwards. The impact of changes in tax rates and laws on deferred taxes, if any, applied during the period in which temporary differences are expected to be settled, is reflected in the Company’s financial statements in the period of enactment. The measurement of deferred tax assets is reduced, if necessary, if, based on weight of the evidence, it is more likely than not that some, or all, of the deferred tax assets will not be realized. The Company had no material amounts recorded for uncertain tax positions, interest, or penalties in the accompanying financial statements.
Current report
Results of Operations - For the fiscal years ending September 30, 2025, and 2024
Current report
There was unallocated revenue under the Corporate segment of $9,767 for the year ended September 30, 2025. This revenue is related to the Company’s investment in digital assets during the fourth quarter of the year.
Current report
Gross profit on the Corporate revenue for the year ended September 30, 2025, was 9,767, or 100% of those revenues.
Current report
Income Tax Expense
Current report
Non-cash adjustments to net loss for the year ended September 30, 2025, were $29,970,888 as compared to $4,822,544 for the year ended September 30, 2025. For fiscal year 2025, the main drivers to this adjustment were depreciation and amortization, loss on the excess value of warrants, and the fair value change in warrant liabilities. For fiscal year 2024, the main drivers for this adjustment were depreciation and amortization, loss on the excess value of warrants, and related party write-offs.
Current report
Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt:
Current report
These transactions provided approximately $9.6 million in gross cash proceeds and reduced debt by $6.084 million, significantly improving short-term liquidity and supporting ongoing operations and potential acquisitions.
Removed paragraphs (3)
Previous report
Critical Accounting Policies and Estimates
Previous report
Business Combinations
Previous report
Income Tax Benefit/(Expense)
Reworded paragraphs (21)
Previous wording
There was $1,044,530 and $618,021 in inventory obsolescence reserve at September 30, 2024, and 2023, respectively.
Current wording
There was $1,034,798 and $1,044,530 in inventory obsolescence reserves at September 30, 2025, and 2024, respectively.
Previous wording
On October 1, 2018, the Company adopted ASU 2014-09,Revenue from Contracts with Customers (Topic 606), using the modified retrospective transition method. Under the guidance of the standard, revenue represents the amount received or receivable for goods and services supplied by the Company to its customers. Company recognizes revenue at the time a good or service is transferred to a customer and the customer obtains control of that good or receives the service performed. Most of the Company’s sales arrangements with customers in the Security segment are short-term in nature involving single performance obligations related to the delivery of goods or repair of equipment and generally provide for transfer of control at the time of shipment to the customer. The Company generally permits returns of product or repaired equipment due to defects; however, returns are historically insignificant. Billing terms vary by customer and product but generally do not exceed 90 days.
Current wording
The Company accounts for revenue in accordance with ASC 606,Revenue from Contracts with Customers (Topic “ASC 606”). Under the guidance of the standard, revenue represents the amount received or receivable for goods and services supplied by the Company to its customers. Company recognizes revenue at the time a good or service is transferred to a customer and the customer obtains control of that good or receives the service performed. Most of the Company’s sales arrangements with customers in the Security segment are short-term in nature involving single performance obligations related to the delivery of goods and generally provide for transfer of control at the time of shipment to the customer. Additionally, the Company issues additional licenses for its proprietary software. These licenses have terms of 1, 3, and 5 years. The Company records deferred revenue and recognizes the revenue over the period of the license. The transaction price is a negotiated price with each customer and is allocated to its performance obligations based on stand-alone selling price. The Company generally permits returns of product or repaired equipment due to defects; however, returns are historically insignificant. Billing terms vary by customer and product but generally do not exceed 90 days.
Previous wording
The Company records deferred revenue when receiving cash in advance of delivering services to the customer. The deferred revenue is reversed, and revenue is recognized when those services are delivered. The amounts were $1,955,635, $2,311,334, and $1,788,507 as of September 30, 2024, 2023, and 2022 respectively, recorded as Deferred revenue. Short-term deferred revenue of $1,297,616 is expected to be recognized over the next 12 months
Current wording
The Company records deferred revenue when receiving cash in advance of delivering services to the customer. The deferred revenue is reversed, and revenue is recognized when those services are delivered. The amounts were $1,866,014, $1,955,635, and $2,311,334, as of September 30, 2025, 2024, and 2023 respectively, recorded as Deferred revenue. Short-term deferred revenue of $1,383,036 is expected to be recognized over the next 12 months.
Previous wording
The Company records a liability when receiving cash in advance of delivering goods to the customer. The revenue is recognized, and the deposit is applied to the invoice for those goods when those goods are delivered. The company recorded Deposits from customers of $408,415, $57,434, and $73,144 as of September 30, 2024, 2023, and 2022 respectively. These amounts are short-term and are expected to be recognized over the next 12 months.
Current wording
The Company records a liability when receiving cash in advance of delivering goods to the customer. The revenue is recognized, and the deposit is applied to the invoice for those goods when those goods are delivered. The company recorded Deposits from customers of $158,344, $408,415, and $57,434, as of September 30, 2025, 2024, and 2023, respectively. These amounts are short-term and are expected to be recognized over the next 12 months.
Previous wording
For the year ended September 30, 2024, the Company recorded $530,475 of impairment for Goodwill in the Security Segment. For the year September 30, 2023, no impairment of the Company’s goodwill was recorded.
Current wording
For the year September 30, 2025, no impairment of the Company’s goodwill was recorded. For the year ended September 30, 2024, the Company recorded $530,475 of impairment for Goodwill in the Security Segment.
Previous wording
Our Security segment revenues for the year ended September 30, 2024, decreased by $2,337,571 or 7%, to $32,021,899 from $34,359,470 for the year ended September 30, 2023. This decrease is due to decreased demand for security technology products under our Vicon brand.
Current wording
Our Security segment revenues for the year ended September 30, 2025, increased by $6,376,893 or 20%, to $38,398,792 from $31,021,899 for the year ended September 30, 2024. This increase is due to a large sale valued at $10,375,000 for security technology products under our Vicon brand. This sale represents 27% of the revenue for this segment for the year ended September 30, 2025.
Previous wording
Our Industrial Services segment revenues for the year ended September 30, 2024, increased by $9,832,893 or 39%, to $34,841,985 from $25,009,092 for the year ended September 30, 2023. This increase is mainly due to an increased demand for the segment’s products and services and additional revenue related to the acquisition of Heisey Mechanical completed in the fourth quarter of fiscal year 2023.
Current wording
Our Industrial Services segment revenues for the year ended September 30, 2025, increased by $3,237,544 or 9%, to $38,079,529 from $34,841,985 for the year ended September 30, 2024. This increase is mainly due to an increased demand for the segment’s products and services.
Previous wording
Gross profit for the year ended September 30, 2024, was $27,478,204 or 41% of revenues as compared to gross profit of $25,685,826 or 43% of revenues for the year ended September 30, 2023.
Current wording
Gross profit for the year ended September 30, 2025, was $32,288,526 or 42% of revenues as compared to gross profit of $27,478,204 or 41% of revenues for the year ended September 30, 2024.
Previous wording
Gross profit in our Security segment was $16,167,339 or 50% of the segment’s revenues for the year ended September 30, 2024, as compared to gross profit of $17,106,300 or 50% of the segment’s revenues for the year ended September 30, 2023. Gross profit as a percentage of revenues remained consistent in the years ended September 30, 2024, compared to the year ended September 30, 2023.
Current wording
Gross profit in our Security segment was $19,085,754 or 50% of the segment’s revenues for the year ended September 30, 2025, as compared to gross profit of $16,167,339 or 50% of the segment’s revenues for the year ended September 30, 2024. Gross profit as a percentage of revenue remained consistent in the year ended September 30, 2025, compared to the year ended September 30, 2024.
Previous wording
Gross profit in our Industrial Services segment was $11,310,865 or 32% of the segment’s revenues for the year ended September 30, 2024, as compared to gross profit of $8,579,526 or 34% of the segment’s revenues for the year ended September 30, 2023. Gross profit as a percentage of revenues decreased in the year ended September 30, 2024, compared to the year ended September 30, 2023, and was primarily due to lower margins related to Heisey projects that were in operation at the time of the Heisey acquisition.
Current wording
Gross profit in our Industrial Services segment was $13,193,005 or 35% of the segment’s revenues for the year ended September 30, 2025, as compared to gross profit of $11,310,865 or 32% of the segment’s revenues for the year ended September 30, 2024. Gross profit as a percentage of revenues increased in the year ended September 30, 2025, compared to the year ended September 30, 2024, and was primarily due to due to improved margins on projects during the year.
Previous wording
General and Administrative Expenses for the year ended September 30, 2024, increased by $4,930,679 or 21% to $28,860,019 from $23,929,340 for the year ended September 30, 2023. The increase in general and administrative expenses is mainly due to increases in salaries and wages, travel, and utilities as a result of the acquisition of Heisey completed in the fourth quarter of fiscal year 2023.
Current wording
General and Administrative Expenses for the year ended September 30, 2025, increased by $565,541 or 2% to $29,425,560 from $28,860,019 for the year ended September 30, 2024. The increase in general and administrative expenses is mainly due to increases in depreciation, insurance, rent and utilities, with insurance, rent and utilities being the result of the new office established in Springfield NJ, and fringe benefits due to increased premiums for employee benefit programs.
Previous wording
Research and Development expenses for the years ended September 30, 2024, and 2023 were $3,357,455 and $3,267,994, respectively. The increase in Research and Development expenses are primarily related to the Security Segment’s development of proprietary technology and next generation solutions associated with security and surveillance systems software.
Current wording
Research and Development expenses decreased by $1,004,315 or 30% to $2,353,140 from $3,357,455, for the years ended September 30, 2024, and 2024, respectively. The decrease in Research and Development expenses are primarily related to the Security Segment’s development of proprietary technology and next generation solutions associated with security and surveillance systems software which have now come to market.
Previous wording
For the year ended September 30, 2024, the Company recognized a goodwill impairment charge of $530,475 related to its Security Segment. Goodwill is tested annually for impairment or if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.
Current wording
For the year ended September 30, 2025, the Company recorded no goodwill impairment*.*For the year ended September 30, 2024, the Company recognized a goodwill impairment charge of $530,475 related to its Security Segment. Goodwill is tested annually for impairment or if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.
Previous wording
Other expense for the year ended September 30, 2024, was $2,206,604 as compared to $4,489,605 for the year ended 2023. Other expense for the year ended September 30, 2024, was mainly driven by interest expense on the Company’s debt, issuance costs of $995,333, related to the May 2024 Equity Financing, and loss on the excess fair value of certain prefunded warrants issued in May 2024, offset by the changes in the fair value of the Series A and Series B warrants outstanding at September 30, 2024. Other expense for the year ended September 30, 2023, was mainly driven by interest expense on the Company’s debt and included an employee retention credit of $416,502.
Current wording
Other expense for the year ended September 30, 2025, was $27,823,914 as compared to $2,206,604 for the year ended 2024. Other expense for the year ended September 30, 2025, was mainly driven by interest expense on the Company’s debt, loss on the excess fair value of the Company’s Series A and Series B Warrants exercised during the year, and by the changes in the fair value of the Series A and Series B warrants outstanding at September 30, 2025. Other expense for the year ended September 30, 2024, was mainly driven by interest expense on the Company’s debt, issuance costs of $995,333, related to the May 2024 Equity Financing, and loss on the excess fair value of certain prefunded warrants issued in May 2024, offset by the changes in the fair value of the Series A and Series B warrants outstanding at September 30, 2024.
Previous wording
During the fiscal year of 2024 we recorded an income tax expense of $202,280 compared to $394,272 for fiscal year 2023. The increase in the expense for income tax is mainly due to an increase in the net income of the Industrial Services segment compared to the prior year.
Current wording
During the fiscal year of 2025 we recorded an income tax expense of $734,880 compared to $202,280 for fiscal year 2024. The increase in the expense for income tax is mainly due to an increase in the net income of the Industrial Services segment compared to the prior year.
Previous wording
Working capital was $8,103,457 at September 30, 2024, compared to $1,948,923 at September 30, 2023. This includes cash and cash equivalents and restricted cash of $5,420,392 at September 30, 2024, and $6,349,562 at September 30, 2023, respectively. The increase in working capital was primarily due to the decrease in the Company’s current maturities of long-term liabilities of $9,775,334, a result of the standstill agreement with the holder of $12,440,555 of notes payable and a decrease in the Company’s cash and cash equivalents of $1,432,399 and a decrease inventory of $1,750,690.
Current wording
Working capital was $5,184,339 at September 30, 2025, compared to $8,103,457 at September 30, 2024. This includes cash and cash equivalents and restricted cash of $6,347,041 at September 30, 2025, and $5,420,392 at September 30, 2024, respectively. The decrease in working capital was primarily due to the increase in the Company’s current maturities of long-term liabilities of $4,193,120, a result of the timing of the Company notes payable coming due and a decrease in the Company’s trade receivables from related parties of $280,295 and a decrease in inventory of $403,585.
Previous wording
Operating activities for continuing operations used $3,949,360 of cash for the year ended September 30, 2024, compared to using $4,724,305 of cash for the year ended September 30, 2023. Cash provided by operating activities for discontinued operations for the year ended September 30, 2023, was $2,491,581.
Current wording
Operating activities for continuing operations provided $159,315 of cash for the year ended September 30, 2025, compared to using $3,949,360 cash for the year ended September 30, 2024.
Previous wording
Trade receivables increased by $1,949,981 or 21% to $11,159,676 at September 30, 2024, from $9,209,695 at September 30, 2023. The increase in trade receivables is mainly due to increased revenues and receivables related to the business generated by the acquisition of Heisey.
Current wording
Trade receivables increased by $1,973,748 or 18% to $13,133,424 at September 30, 2025, from $11,159,676 at September 30, 2024. The increase in trade receivables is mainly due to increased revenues.
Previous wording
Investing activities for continuing operations used $1,257,393 of cash during the year ended September 30, 2024, compared to $5,628,400 used in the year ended September 30, 2023. Investing activities for fiscal year 2024 were mainly driven by the purchase of property and equipment. Investing activities for fiscal year 2023 were mainly driven by the purchase of property and equipment and the acquisition of Heisey Mechanical.
Current wording
Investing activities for continuing operations used $2,960,739 of cash during the year ended September 30, 2025, compared to $1,257,393 used in the year ended September 30, 2024. Investing activities for fiscal year 2025 were mainly driven by the purchase of property and equipment and investment in digital assets. Investing activities for fiscal year 2024 were mainly driven by the purchase of property and equipment.
Previous wording
Financing activities provided $4,398,599 of cash for the year ended September 30, 2024, as compared to $2,036,655 provided in the year ended September 30, 2023. In fiscal 2024 our financing activities were mainly comprised of proceeds from the Company’s equity public offering, payments on debt, and activity on the revolving line of credit. In fiscal 2023 our financing activities were mainly comprised of financing of the acquisition of Heisey and the building purchase
Current wording
Financing activities provided $4,075,261 of cash for the year ended September 30, 2025, as compared to $4,398,599 provided in the year ended September 30, 2024. In fiscal 2025 our financing activities were mainly comprised of proceeds from the Company’s equity public offering and notes payable, proceeds from warrant exercises, payments on debt, and activity on the revolving line of credit. In fiscal 2024 our financing activities were mainly comprised of proceeds from the Company’s equity public offerings, payments on debt, and activity on the revolving line of credit.
Previous wording
The Company has incurred substantial losses of $7,229,491 and $9,196,875 for fiscal years 2024 and 2023, respectively, and has debt obligations over the next fiscal year of $7,857,388 and working capital of $8,103,457, that raise substantial doubt with respect to the Company’s ability to continue as a going concern, as discussed in Item 1A of this Form 10-K.
Current wording
The Company has incurred substantial losses of $28,112,368 and $7,229,491 for fiscal years 2025 and 2024, respectively, and has debt obligations over the next fiscal year of $12,101,593 and working capital of $5,184,339, that raise substantial doubt with respect to the Company’s ability to continue as a going concern, as discussed in Item 1A of this Form 10-K.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The Company accounts for business combinations under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations” using the acquisition method of accounting, and accordingly, the assets and liabilities of the acquired business are recorded at their fair values at the date of acquisition. The excess of the purchase price over the estimated fair value is recorded as goodwill. All acquisition costs are expensed as incurred. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date.