CEMTREX INC
For the period ended Mar 31, 2026. Filed May 15, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 15, 2026
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-Q
Period ended 2025-12-31; filed 2026-02-17.
0001493152-26-007122
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001493152-26-023803
Item 2. 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 41 previous paragraphs and 68 current paragraphs.
25 unchanged; 16 reworded; 23 added; 0 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 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 (23)
Current report
Aerospace and Defense
Current report
Cemtrex’s Aerospace and Defense segment operates under the brand Invocon, which offers designing, manufacturing, and supporting advanced instrumentation, wireless sensing, and telemetry systems deployed across satellites, launch vehicles, target missiles, and space-based platforms. Its technologies support numerous government and prime contractor programs, including multiple Space Shuttle and International Space Station systems, and the company maintains long-standing relationships across the Missile Defense Agency and leading aerospace and defense primes.
Current report
The Company’s Security segment revenues for the three months ended March 31, 2026, decreased by $11,204,595 or 66% to $5,776,557 from $16,981,152 for the three months ended March 31, 2025. This decrease is mainly due to a large sale valued at $10,375,000 for security technology products under our Vicon brand during the quarter ended March 31, 2025.
Current report
The Company’s newly established Aerospace and Defense segment generated revenues of $1,232,592 for the three months ended March 31, 2026
Current report
Gross profit in the Company’s newly established Aerospace and Defense segment was 520,815 or 42% of revenues for the three months ended March 31, 2026
Current report
Bargain Purchase Gain
Current report
As discussed in Note 1 of the Form 10-Q, the acquisition of Richland, LLC resulted in a bargain purchase gain of 2,068,047 based on the preliminary purchase price allocation. The purchase price allocation is still preliminary but has been developed based on an estimate of fair values of Richland’s identifiable tangible and intangible assets acquired and liabilities assumed as of February 5, 2026. The final allocation of the purchase price will be determined within one year from the closing date of the Invocon acquisition.
Current report
Other income for the three months ended March 31, 2026, was $3,467,711, as compared to $4,104,211 for the three months ended March 31, 2025. Other income for the three months ended March 31, 2026, was mainly driven by the bargain purchase gain mentioned above, gain on the exercise of warrant liabilities and the change in the fair value of warrant liabilities, offset by interest expense and the change in the fair value of the Company’s digital assets. Other income for the three months ended March 31, 2025, was mainly driven by the change in the fair value of warrant liabilities.
Current report
Revenues
Current report
The Company’s Security segment revenues for the six months ended March 31, 2026, decreased by $11,146,766 or 50% to $11,288,085 from $22,434,851 for the six months ended March 31, 2025. This decrease is mainly due to a large sale valued at $10,375,000 for security technology products under our Vicon brand during the quarter ended March 31, 2025.
Current report
The Company’s newly established Aerospace and Defense segment generated revenues of $1,232,592 for the six months ended March 31, 2026
Current report
Gross Profit
Current report
Gross Profit for the six months ended March 31, 2026, was $12,469,070 or 36% of revenues as compared to gross profit of $17,867,391 or 44% of revenues for the six months ended March 31, 2025.
Current report
Gross profit in our Security segment was $4,691,462 or 42% of the segment’s revenues for the six months ended March 31, 2026, as compared to gross profit of $11,643,615 or 52% of the segment’s revenues for the period ended March 31, 2025. Gross profit in our security segment decreased as a result of the large sale mentioned above, additionally gross profits have been impacted by tariffs and fuel surcharges on shipping. The Company is currently evaluating the potential impact of tariff refunds on future gross profit percentages.
Current report
Gross profit in our Industrial Services segment was $7,231,994 or 33% of the segment’s revenues for the six months ended March 31, 2026, as compared to gross profit of $6,223,776 or 34% of the segment’s revenues for the period ended March 31, 2025. Gross profit increased in the six months ended March 31, 2026, compared to the six months ended March 31, 2025, was mainly due to the acquisition of Richland, LLC which lowered outsourcing costs now provided by AIS – TN, formerly Richland LLC.
Current report
Gross profit in the Company’s newly established Aerospace and Defense segment was 520,815 or 42% of revenues for the six months ended March 31, 2026
Current report
General and Administrative Expenses
Current report
General and administrative expenses for the six months ended March 31, 2026, increased $2,534,943 or 18% to $16,398,974 from $13,864,031 for the six months ended March 31, 2025. The increase in general and administrative expenses is mainly related to the additional expenses related to the acquisition of Invocon and Richland.
Current report
Research and Development Expenses
Current report
Bargain Purchase Gain
Current report
As discussed in Note 1 of the Form 10-Q, the acquisition of Richland, LLC resulted in a bargain purchase gain of 2,068,047 based on the preliminary purchase price allocation. The purchase price allocation is still preliminary but has been developed based on an estimate of fair values of Richland’s identifiable tangible and intangible assets acquired and liabilities assumed as of February 5, 2026. The final allocation of the purchase price will be determined within one year from the closing date of the Invocon acquisition.
Current report
Other Income/Expense
Current report
Provision for Income Taxes
Reworded paragraphs (16)
Previous wording
Our Industrial Services segment revenues for the three months ended December 31, 2025, increased by $2,324,956 or 28%, to $10,611,156 from $8,286,200, for the three months ended December 31, 2024. This increase is mainly due to increased demand for the segment’s services.
Current wording
The Company’s Industrial Services segment revenues for the three months ended March 31, 2026, increased by $768,929 or 7%, to $11,038,046 from $10,269,117, for the three months ended March 31, 2025. This increase is mainly due to the revenues from the acquisition of Richland, LLC.
Previous wording
There was unallocated revenue under the Corporate segment of $10,627 for the three months ended December 31, 2025. This revenue is related to the Company’s investment in digital assets.
Current wording
There was unallocated revenue under the Corporate segment of $14,172 for the three months ended March 31, 2026. This revenue is related to the Company’s investment in digital assets.
Previous wording
Gross Profit for the three months ended December 31, 2025, was $5,621,866 or 35% of revenues as compared to gross profit of $5,701,936 or 41% of revenues for the three months ended December 31, 2024.
Current wording
Gross Profit for the three months ended March 31, 2026, was $6,847,204 or 38% of revenues as compared to gross profit of $12,165,455 or 45% of revenues for the three months ended March 31, 2025.
Previous wording
Gross profit in our Security segment was $2,160,678 or 39% of the segment’s revenues for the three months ended December 31, 2025, as compared to gross profit of $2,839,759 or 52% of the segment’s revenues for the period ended December 31, 2024. Gross profit in our security segment have been impacted by tariffs.
Current wording
Gross profit in our Security segment was $2,530,694 or 44% of the segment’s revenues for the three months ended March 31, 2026, as compared to gross profit of $8,803,856 or 52% of the segment’s revenues for the period ended March 31, 2025. Gross profit in our security segment decreased as a result of the large sale mentioned above, additionally gross profits have been impacted by tariffs and fuel surcharges on shipping. The Company is currently evaluating the potential impact of tariff refunds on future gross profit percentages.
Previous wording
Gross profit in our Industrial Services segment was $3,450,471 or 33% of the segment’s revenues for the three months ended December 31, 2025, as compared to gross profit of $2,862,177 or 35% of the segment’s revenues for the period ended December 31, 2024. Gross profit as a percentage of revenues decreased due to lower margins on projects in the three months ended December 31, 2025, compared to the three months ended December 31, 2024.
Current wording
Gross profit in our Industrial Services segment was $3,781,523 or 34% of the segment’s revenues for the three months ended March 31, 2026, as compared to gross profit of $3,361,599 or 33% of the segment’s revenues for the period ended March 31, 2025. Gross profit increased in the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was mainly due to the acquisition of Richland, LLC which lowered outsourcing costs now provided by AIS – TN, formerly Richland LLC.
Previous wording
General and administrative expenses for the three months ended December 31, 2025, increased $833,302 or 12% to $7,926,591 from $7,093,289 for the three months ended December 31, 2024. The increase in general and administrative expenses is mainly related to a one-time write off of obsolete demonstration equipment of $441,624, increased legal expenses related to the preliminary work on acquisitions, depreciation on recently acquired fixed assets, and travel related to trade show attendance.
Current wording
General and administrative expenses for the three months ended March 31, 2026, increased $1,701,641 or 25% to $8,472,383 from $6,770,742 for the three months ended March 31, 2025. The increase in general and administrative expenses is mainly related to the additional expenses related to the acquisition of Invocon and Richland.
Previous wording
Research and Development expenses for the three months ended December 31, 2025, were $501,435 compared to $890,083 for the three months ended December 31, 2024, a decrease of $388,648 or 44%. Research and Development expenses are related to the Security Segment’s development of next generation solutions associated with security and surveillance systems software.
Current wording
Research and Development expenses for the three months ended March 31, 2026, were $546,858 compared to $777,889 for the three months ended March 31, 2025, a decrease of $231,031 or 30%. Research and Development expenses are related to the Security segment’s development of next generation solutions associated with security and surveillance systems software and the Aerospace and Defense segment’s development and improvement of their products.
Previous wording
During the three months ended December 31, 2025, and 2024, the Company had income tax expense from continuing operations of $266,326 and $120,538, respectively. The provision for income tax is estimated based upon the current income projections of the Company, the effective rate of the prior year, and the Company’s current ability to utilize net loss carryforwards. The Company’s effective tax rate for the three months ended December 31, 2025, and 2024, was (1.31%) and (0.42%) respectively.
Current wording
During the three months ended March 31, 2026, and 2025, the Company had income tax expense from continuing operations of $73,859 and $110,525, respectively. The provision for income tax is estimated based upon the current income projections of the Company, the effective rate of the prior year, and the Company’s current ability to utilize net loss carryforwards. The Company’s effective tax rate for the three months ended March 31, 2026, and 2025, was 5.7% and 1.27% respectively.
Previous wording
Our Security segment revenues for the three months ended December 31, 2025, increased by $57,829 or 1% to $5,511,528 from $5,453,699 for the three months ended December 31, 2024. This increase is mainly due to increased demand for the Company’s products.
Current wording
The Company’s Industrial Services segment revenues for the six months ended March 31, 2026, increased by $3,093,885 or 17%, to $21,649,202 from $18,555,317, for the six months ended March 31, 2025. This increase is mainly due to the revenues from the acquisition of Richland LLC.
Previous wording
Other expense for the three months ended December 31, 2025, was $17,515,652, as compared to expense of $26,265,257 for the three months ended December 31, 2024. Other expense for the three months ended December 31, 2025, was mainly driven by interest expense of $12,123,695 of which $11,798,283 represents the discount on shares issued to settle debt. Other expense for the three months ended December 31, 2024, was mainly driven by a loss on excess fair value of the warrants at exercise of $15,796,105.
Current wording
Other expense for the six months ended March 31, 2026, was $14,047,941, as compared to $22,161,046 for the six months ended March 31, 2025. Other expense for the six months ended March 31, 2026, was mainly driven by the bargain purchase gain mentioned above, loss on the exercise of warrant liabilities, interest expense, and the change in the fair value of the Company’s digital assets. Other expense for the six months ended March 31, 2025, was mainly driven by the loss on excess fair value and change in the fair value of warrant liabilities.
Previous wording
Working capital was $24,748,544 at December 31, 2025, compared to working capital of $5,184,339 at September 30, 2025. This includes cash and cash equivalents and restricted cash of $21,782,533 at December 31, 2025, and $6,347,041 at September 30, 2025. The increase in working capital was primarily due to cash raised in the equity offerings and Series B Warrant exercises and the payment of the Company’s debt through equity.
Current wording
Working capital was $13,706,571 at March 31, 2026, compared to working capital of $5,184,339 at September 30, 2025. This includes cash and cash equivalents and restricted cash of $7,910,118 at March 31, 2026, and $6,347,041 at September 30, 2025. The increase in working capital was primarily due to cash raised in the equity offerings and Series B Warrant exercises and the payment of the Company’s debt through equity.
Previous wording
Cash used by operating activities for the three months ended December 31, 2025, was $891,914 and $1,201,817 for the three months ended December 31, 2024. Our operating cash flow was mainly the result of our net loss, less the non-cash adjustments, combined with operating changes in inventory, contract assets, and accrued expenses.
Current wording
Cash used by operating activities for the six months ended March 31, 2026, was $5,310,446 compared to providing $1,600,532 for the six months ended March 31, 2025. Our operating cash flow was mainly the result of our net loss, less the non-cash adjustments, combined with operating changes in contract assets, prepaid expenses and other current assets, accounts payable, operating lease liabilities, accrued expenses, and deferred revenues.
Previous wording
Trade receivables decreased by $3,431,109 or 26% to $9,702,315 at December 31, 2025, from $13,133,424 at September 30, 2025. The decrease in trade receivables is attributable to a decrease in sales as compared to the fourth quarter of fiscal year2025.
Current wording
Trade receivables increased by $192,135 or 1% to $13,325,559 at March 31, 2026, from $13,133,424 at September 30, 2025. The modest increase in trade receivables is attributable to the acquisitions of Richland and Invocon.
Previous wording
Cash used by investing activities for the three months ended December 31, 2025, was $253,061 compared to $1,008,899 for the three months ended December 31, 2024. Investing activities for the three months ended December 31, 2025, were driven by the Company’s purchase of property and equipment and investment in marketable securities. Investing activities for the three months ended December 31, 2024, were driven by the Company’s purchase of property and equipment and investment in Masterpiece VR.
Current wording
Cash used by investing activities for the six months ended March 31, 2026, was $13,972,452 compared to $1,436,452 for the three months ended March 31, 2025. Investing activities for the six months ended March 31, 2026, were driven by the Company’s purchase of property and equipment, investment in marketable securities, the acquisition of Richland and Invocon, and investment in digital assets. Investing activities for the six months ended March 31, 2025, were driven by the Company’s purchase of property and equipment and investment in Masterpiece VR.
Previous wording
Cash provided by financing activities for the three months ended December 31, 2025, was $17,305,299 compared to $2,387,449 for the three months ended December 31, 2024. Financing activities for the three months ended December 31, 2025, were primarily driven by the proceeds from equity offerings, proceeds of a note payable, and proceeds from the exercise of the Company’s Series B Warrants. Financing activities for the three months ended December 31, 2024, were primarily driven by the proceeds from the Company’s revolving line of credit, notes payable, and proceeds from the exercise of the Company’s Series B Warrants.
Current wording
Cash provided by financing activities for the six months ended March 31, 2026, was $20,871,752 compared to $1,032,254 for the six months ended March 31, 2025. Financing activities for the six months ended March 31, 2026, were primarily driven by the proceeds from equity offerings, proceeds of notes payable, and proceeds from the exercise of the Company’s Series B Warrants. Financing activities for the six months ended March 31, 2025, were primarily driven by the proceeds from the Company’s revolving line of credit, notes payable, and proceeds from the exercise of the Company’s Series B Warrants.
Previous wording
The Company’s working capital may not be sufficient to cover operating costs which indicates substantial doubt regarding the Company’s ability to continue as a going concern, the Company has historically, from time to time, satisfied and may continue to satisfy certain short-term liabilities through the issuance of common stock, thus reducing our cash requirement to meet our operating needs. The Company has $21,782,533 in cash and cash equivalents and restricted cash as of December 31, 2025. Additionally, the Company has (i) secured a line of credit for its Vicon brand to fund operations, which as of December 31, 2025, has available capacity of approximately $420,000, (ii) continually reevaluate our pricing model on our Vicon brand to improve margins on those products, (iii) raised $5,657,264 through the exercise of our Series B warrants during the quarter ended December 31, 2025 (iv) raised $6,000,000 in gross proceeds in equity offering during the quarter ended December 31, 2025, and an additional $4,000,000 in gross proceeds subsequent to December 31, 2025.
Current wording
The Company’s working capital may not be sufficient to cover operating costs which indicates substantial doubt regarding the Company’s ability to continue as a going concern, the Company has historically, from time to time, satisfied and may continue to satisfy certain short-term liabilities through the issuance of common stock, thus reducing our cash requirement to meet our operating needs. The Company has $7,910,118 in cash and cash equivalents and restricted cash as of March 31, 2026. Additionally, the Company has (i) secured a line of credit for its Vicon brand to fund operations, which as of March 31, 2026, has available capacity of approximately $1,100,000, (ii) continually reevaluate our pricing model on our Vicon brand to improve margins on those products, (iii) raised $5,675,332 through the exercise of our Series B warrants during the six months ended March 31, 2026 (iv) raised $10,000,000 in gross proceeds in equity offering during the six months ended March 31, 2026 (v) Invested approximately $5,000,000 of the Company’s surplus cash in various marketable securities to generate income on those investments.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Results of Operations – For the six months ended March 31, 2026, and 2025
Current report — wording carried from elsewhere
There was unallocated revenue under the Corporate segment of $24,799 for the six months ended March 31, 2026. This revenue is related to the Company’s investment in digital assets.
Current report — wording carried from elsewhere
Research and Development expenses for the six months ended March 31, 2026, were $1,048,293 compared to $1,667,972 for the six months ended March 31, 2025, a decrease of $619,697or 37%. Research and Development expenses are related to the Security segment’s development of next generation solutions associated with security and surveillance systems software and the Aerospace and Defense segment’s development and improvement of their products.
Current report — wording carried from elsewhere
During the six months ended March 31, 2026, and 2025, the Company had income tax expense from continuing operations of $340,185 and $231,063, respectively. The provision for income tax is estimated based upon the current income projections of the Company, the effective rate of the prior year, and the Company’s current ability to utilize net loss carryforwards. The Company’s effective tax rate for the six months ended March 31, 2026, and 2025, was (1.79%) and (1.17%) respectively.