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CEMTREX INC

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Business Summary

Cemtrex, Inc. is a multi-industry technology company incorporated in Delaware in 1998, which has grown through strategic acquisitions and internal development . The company operates in various sectors, including smart technologies, virtual and augmented realities, industrial solutions, and intelligent security systems .

The company's core business model revolves around generating revenue from two primary segments: Security and Industrial Services, along with unallocated corporate revenue from digital asset investments . Revenue is recognized either at a point in time for goods delivered, or over time for services, particularly in industrial services contracts . The Security segment's principal customers are system integrators or channel partners who then sell products and solutions to end customers, including government agencies and commercial businesses . The Industrial Services segment primarily serves businesses in manufacturing, chemical, packaging, printing, electronics, automotive, construction, and metallurgical processing .

The Security segment operates under the Vicon Industries, Inc. brand, providing end-to-end security solutions. Its product offerings include browser-based video monitoring systems, analytics-based recognition systems, cameras, servers, and access control systems . These solutions are deployed in industrial and commercial facilities, federal prisons, hospitals, universities, schools, and government offices, leveraging Artificial Intelligence (AI) based data algorithms . For the fiscal year ended September 30, 2025, this segment generated revenues of $38,398,792 , an increase of $6,376,893 or 20% from the prior year, largely due to a single sale of security technology products valued at $10,375,000 , which represented 27% of the segment's revenue . Gross profit for the Security segment was $19,085,754 , or 50% of its revenues , consistent with the prior year.

The Industrial Services segment operates under the Advanced Industrial Services (AIS) brand, offering single-source expertise in rigging, millwrighting, in-plant maintenance, equipment erection, relocation, and disassembly . This segment focuses on customers seeking to enhance asset utilization and reliability to reduce costs and increase production from existing assets, providing services such as small projects, sustaining capital, turnarounds, maintenance, specialty welding, and high-quality scaffolding . For the fiscal year ended September 30, 2025, this segment reported revenues of $38,079,529 , an increase of $3,237,544 or 9% from the previous year, driven by increased demand for its products and services . Gross profit for the Industrial Services segment was $13,193,005 , or 35% of its revenues , an increase from 32% in the prior year due to improved margins on projects .

For the fiscal year ended September 30, 2025, total revenue was $76,488,088 , an increase from $66,863,884 in the prior year. Gross profit for the period was $32,288,526 , representing a gross margin of 42% , up from 41% in the prior year. The company reported an operating income of $509,826 , a significant improvement from an operating loss of $5,269,745 in the previous year. Net loss for the year was $28,292,520 , compared to a net loss of $7,635,505 in 2024. Net loss attributable to Cemtrex, Inc. stockholders was $28,112,368 , resulting in a diluted EPS from continuing operations of $(210.88) . As of September 30, 2025, cash and cash equivalents were $4,974,303 , and total current liabilities were $23,823,159 . Total debt, including current maturities, was approximately $13,512,276 . Working capital stood at $5,184,339 .

Year-over-year, total revenue increased by $9,624,204 [16, 17]. The Security segment's revenue grew by 20% , and the Industrial Services segment's revenue increased by 9% . Gross profit as a percentage of revenue remained consistent at 50% for the Security segment but increased from 32% to 35% for the Industrial Services segment [14, 15]. Operating income saw a substantial improvement, moving from a loss of $5,269,745 to an income of $509,826 . Net loss widened significantly from $7,635,505 to $28,292,520 , primarily due to a substantial increase in other expense, net, which was $27,823,914 in 2025 compared to $2,206,604 in 2024, driven by losses on warrant exercises and changes in fair value of warrant liabilities . Research and Development expenses decreased by $1,004,315 or 30% to $2,353,140 as the Security Segment's proprietary technology and next-generation solutions came to market .

During the reported period, the company completed several reverse stock splits: a 60:1 split on October 2, 2024, a 35:1 split on November 26, 2024, and a 15:1 split on September 29, 2025 . The company also addressed Nasdaq listing deficiencies related to minimum bid price and minimum stockholder's equity, regaining compliance on December 11, 2024, and June 4, 2025, respectively . In May 2024, the company completed an equity financing, issuing common units and pre-funded units for aggregate gross proceeds of $10,035,293 . Subsequent to the fiscal year-end, in December 2025, the company received $5,657,264 in gross proceeds from Series B Warrant exercises, issued 2,500,609 shares of common stock to satisfy $6,084,000 of outstanding debt, and raised an additional $4,000,000 in gross proceeds from two registered direct offerings . The company also invested $998,642 in Solana (SOL) digital assets in July 2025, recognizing $12,522 in staking revenue and an unrealized gain of $150,009 .

Business Outlook

The company explicitly states that it does not provide formal guidance for revenue, margin, or EPS for the upcoming period.

A significant growth area for Cemtrex is through strategic acquisitions, with a focus on complementary businesses, products, and technologies . The company entered into a Share Purchase Agreement on November 13, 2025, to acquire 100% of Invocon, Inc., a Texas-based systems-engineering firm specializing in mission-critical instrumentation, wireless sensing systems, and flight hardware for aerospace, defense, and civil structure monitoring applications, for a purchase price of $7,060,000 . This transaction is expected to close around January 1, 2026 , and upon closing, the company plans to establish a new reporting segment, Aerospace & Defense, with Invocon as its cornerstone . This acquisition is intended to expand the company's product and service offerings and enter new markets .

Another growth vector is the continued development and market introduction of new and improved products and services within its Security segment . The company's Research and Development efforts are focused on proprietary technology and next-generation solutions for security and surveillance systems software . The decrease in R&D expenses by $1,004,315 or 30% in the last fiscal year is attributed to these solutions having come to market , suggesting a transition from development to commercialization. The company also continually reevaluates its pricing model for the Vicon brand to improve margins and introduces new innovative products to grow revenues .

Operationally, the company aims to improve margins on its Vicon brand products through pricing model reevaluation . The Industrial Services segment saw an increase in gross profit as a percentage of revenues from 32% to 35% [14, 15] due to improved margins on projects, indicating a focus on project profitability. The company also plans to attract and retain talent for its Industrial Services segment to ensure continued successful operation .

Regarding capital allocation, the company intends to use cash proceeds from recent financing activities to complete potential acquisitions . Specifically, the $7,000,000 cash received from the Promissory Note issued on November 7, 2025, is intended for potential acquisitions . The company also raised approximately $9.6 million in gross cash proceeds from warrant exercises and equity offerings subsequent to September 30, 2025, which will support ongoing operations and potential acquisitions . The company has a share repurchase program for up to 2,200,000 shares of its Series 1 Preferred Stock, which began on September 1, 2023, and ends on August 31, 2026 .

The company explicitly flagged several structural headwinds and execution risks. Its ability to continue as a going concern is in substantial doubt due to incurred losses of $28,112,368 and $7,229,491 for fiscal years 2025 and 2024, respectively, and debt obligations of $12,101,593 over the next fiscal year, against working capital of $5,184,339 . There is no guarantee that cash flow from existing or future operations and external capital will be sufficient to meet working capital needs . The company also faces risks related to its substantial debt of approximately $16.8 million as of September 30, 2025, which could limit its ability to raise additional capital or meet obligations . The volatility in currency exchange rates may adversely affect financial condition, results of operations, and cash flows, particularly given that international operations accounted for approximately 6.8% of net sales in 2025 .

Risk Factors

The company faces material risks including adverse macroeconomic conditions such as slow growth, recession, high unemployment, inflation, tighter credit, and higher interest rates, which can negatively impact demand for products and services, and affect suppliers and financial stability . Political events, trade disputes, war, terrorism, natural disasters, and public health issues can disrupt international commerce and supply chains, with restrictions on international trade potentially requiring costly operational changes . The company's operations are subject to various complex international laws and rules, including the Foreign Corrupt Practices Act and GDPR, with compliance difficulties potentially arising from new acquisitions . A substantial doubt exists about the company's ability to continue as a going concern due to significant net losses of $28,112,368 in 2025 and $7,229,491 in 2024, and current debt obligations of $12,101,593 exceeding working capital of $5,184,339 . The company has substantial debt of approximately $16.8 million as of September 30, 2025, which could limit future financing and ability to meet obligations . Investments in digital assets, primarily Solana (SOL), are subject to extreme price volatility, regulatory uncertainty, technological vulnerabilities, and liquidity constraints, with a significant decline in SOL's price potentially leading to substantial losses or impairment charges . The company is dependent on the continued market acceptance of its technology, facing intense competitive challenges, rapid technological changes, and pricing pressure from competitors, which could lead to reduced sales and profits . Cybersecurity threats, including service interruptions, data corruption, and hacking attacks, pose a risk to operations, reputation, and financial results, with the company currently lacking specific insurance coverage for such incidents . The company's operating results are sensitive to raw material and resale product availability, quality, and cost, with potential disruptions from natural disasters, trade tariffs, or supplier difficulties . Legal uncertainties include potential civil or criminal penalties for violating SEC settlement terms , and the company may not have sufficient financial resources to defend its intellectual property rights or against infringement claims . Product liability lawsuits could result in substantial liabilities and limit commercialization of products . The company's common stock may experience extreme price and volume fluctuations, and future sales and issuances of common stock or rights to purchase common stock could result in additional dilution .

Management Priorities

Management's overall tone emphasizes a strategic focus on utilizing resources to build brands and businesses in high-growth markets characterized by innovation and technological shifts, aiming to create exceptional value for customers, shareholders, and employees over the long term . They seek to build or acquire businesses with attractive gross margins, strong customer retention opportunities, and low capital intensity, adopting a long-term approach with strategies spanning five years or longer . Management highlights its commitment to understanding customer business performance requirements and leveraging expertise to provide cutting-edge technology solutions, working closely with customers from operational to senior executive levels . The company plans to continue seeking and executing strategic acquisitions, expanding products and services, and entering new markets, believing that the diversity of its offerings provides multiple income sources and a competitive advantage . Management explicitly states that 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 of $12,101,593 over the next fiscal year, with working capital of $5,184,339 , which raises substantial doubt about its ability to continue as a going concern . Despite this, management believes its plans, including securing lines of credit, reevaluating pricing models, introducing new products, and raising capital through equity financings, would be sufficient to meet capital demands for at least the next twelve months, though there is no guarantee of success . Key strategic priorities include the acquisition of Invocon, Inc. for $7,060,000 to establish a new Aerospace & Defense segment , and leveraging recent financing activities, which provided approximately $9.6 million in gross cash proceeds and reduced debt by $6.084 million , to improve liquidity and fund potential future acquisitions .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Overview
  2. [2] Item 3, Segment and Geographic Information — Operating segments
  3. [3] Item 2, Basis of Presentation and Significant Accounting Policies — Revenue Recognition
  4. [4] Item 1, Business — Customers
  5. [5] Item 1, Business — Customers
  6. [6] Item 1, Business — Security
  7. [7] Item 7, MD&A — Revenues
  8. [8] Item 2, Basis of Presentation and Significant Accounting Policies — Concentrations and cash and credit risks
  9. [9] Item 7, MD&A — Gross Profit
  10. [10] Item 7, MD&A — Gross Profit
  11. [11] Item 1, Business — Industrial Services
  12. [12] Item 7, MD&A — Revenues
  13. [13] Item 7, MD&A — Gross Profit
  14. [14] Item 7, MD&A — Gross Profit
  15. [15] Item 7, MD&A — Gross Profit
  16. [16] Item 7, MD&A — Revenues
  17. [17] Item 7, MD&A — Revenues
  18. [18] Item 7, MD&A — Gross Profit
  19. [19] Item 7, MD&A — Gross Profit
  20. [20] Item 7, MD&A — Gross Profit
  21. [21] Item 7, MD&A — Operating income/(loss)
  22. [22] Item 7, MD&A — Operating income/(loss)
  23. [23] Item 7, MD&A — Net loss
  24. [24] Item 7, MD&A — Net loss
  25. [25] Item 7, MD&A — Net loss attributable to Cemtrex, Inc. stockholders
  26. [26] Item 2, Basis of Presentation and Significant Accounting Policies — Loss per share - Basic & Diluted - Continuing Operations
  27. [27] Item 8, Consolidated Balance Sheets — Cash and cash equivalents
  28. [28] Item 8, Consolidated Balance Sheets — Total current liabilities
  29. [29] Item 16, Lines of Credit and Long-Term Liabilities — Total debt
  30. [30] Item 7, MD&A — Liquidity and Capital Resources
  31. [31] Item 7, MD&A — Other expense, net
  32. [32] Item 7, MD&A — Other expense, net
  33. [33] Item 7, MD&A — Other expense, net
  34. [34] Item 7, MD&A — Research and Development Expenses
  35. [35] Item 7, MD&A — Research and Development Expenses
  36. [36] Item 7, MD&A — Research and Development Expenses
  37. [37] Item 1, Business — Recent Developments
  38. [38] Item 1, Business — Nasdaq Notices for Listing Deficiencies
  39. [39] Item 1, Business — May 2024 Equity Financing
  40. [40] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
  41. [41] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
  42. [42] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
  43. [43] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
  44. [44] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
  45. [45] Item 2, Basis of Presentation and Significant Accounting Policies — Recently Adopted Accounting Pronouncements
  46. [46] Item 2, Basis of Presentation and Significant Accounting Policies — Recently Adopted Accounting Pronouncements
  47. [47] Item 2, Basis of Presentation and Significant Accounting Policies — Recently Adopted Accounting Pronouncements
  48. [48] Item 1, Business — Business Strategy
  49. [49] Item 1, Business — Share Purchase to Acquire Invocon, Inc.
  50. [50] Item 1, Business — Share Purchase to Acquire Invocon, Inc.
  51. [51] Item 1, Business — Business Strategy
  52. [52] Item 1A, Risk Factors — Our future operating results depend in part on continued successful research, development and marketing of new and improved products and services through our Security segment, and there can be no assurance that we will successfully introduce new products and services into the market.
  53. [53] Item 1, Going Concern Considerations
  54. [54] Item 1A, Risk Factors — Our future operating results depends in part on the continued successful operation of our Industrial Services segment, and there can be no assurance that we will be successful in this business.
  55. [55] Item 1, Business — Issuance of Note payable
  56. [56] Item 1, Business — Issuance of Note payable
  57. [57] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
  58. [58] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
  59. [59] Item 18, Stockholders' Equity — Series 1 Preferred Stock
  60. [60] Item 18, Stockholders' Equity — Series 1 Preferred Stock
  61. [61] Item 1, Going Concern Considerations
  62. [62] Item 1, Going Concern Considerations
  63. [63] Item 1, Going Concern Considerations
  64. [64] Item 1, Going Concern Considerations
  65. [65] Item 1, Going Concern Considerations
  66. [66] Item 1A, Risk Factors — We have substantial debt which could adversely affect our ability to raise additional capital to fund operations and prevent us from meeting our obligations under outstanding indebtedness.
  67. [67] Item 1A, Risk Factors — We have substantial debt which could adversely affect our ability to raise additional capital to fund operations and prevent us from meeting our obligations under outstanding indebtedness.
  68. [68] Item 1A, Risk Factors — Volatility in currency exchange rates may adversely affect our financial condition, results of operations and cash flows.
  69. [69] Item 1A, Risk Factors — Our operations and performance depend significantly on global and regional economic conditions and adverse economic conditions can materially adversely affect our business, results of operations and financial condition.
  70. [70] Item 1A, Risk Factors — Our business can be impacted by political events, trade and other international disputes, war, terrorism, natural disasters, public health issues, industrial accidents, and other business interruptions.
  71. [71] Item 1A, Risk Factors — Our international operations subject us to many different and complex laws and rules, and we may face difficulty in compliance.
  72. [72] Item 1A, Risk Factors — The value of our digital asset holdings is highly volatile and may decline significantly.
  73. [73] Item 1A, Risk Factors — We are substantially dependent upon the success and continued market acceptance of our technology, the absence of which may significantly reduce our sales, profits and cash flow and adversely impact our financial condition.
  74. [74] Item 1A, Risk Factors — We are increasingly dependent on information technology, and if we are unable to protect against service interruptions, data corruption, cyber-based attacks, or network security breaches our operations could be disrupted, and we could incur significant costs and reputational harm as a result.
  75. [75] Item 1A, Risk Factors — Our operating results are sensitive to raw material and resale product availability, quality, and cost
  76. [76] Item 1A, Risk Factors — We could be subject to additional civil penalties or face criminal penalties and sanctions if we violate the terms of settlement with the SEC.
  77. [77] Item 1A, Risk Factors — We may not have sufficient financial resources to defend our intellectual property rights or otherwise successfully defend against claims that we have infringed on a third party’s intellectual property and, as a result, it may adversely affect our business, financial condition, and results of operations.
  78. [78] Item 1A, Risk Factors — Product liability lawsuits against us could cause us to incur substantial liabilities and to limit commercialization of our product or any future products that we may develop.
  79. [79] Item 1A, Risk Factors — Our securities may experience extreme price and volume fluctuations, which could lead to costly litigation for us and make an investment in us less appealing.
  80. [80] Item 1, Business — Business Strategy
  81. [81] Item 1, Business — Business Strategy
  82. [82] Item 1, Business — Business Strategy
  83. [83] Item 1, Business — Business Strategy
  84. [84] Item 1, Going Concern Considerations

Analysis on 5/20/2026