UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 For the transition period from ___________to ____________ Commission File Number 001-37464 CEMTREX, INC. (Exact name of registrant as specified in its charter) Delaware 30-0399914 (State or other jurisdiction of incorp ...

Brooklyn, NY, May 15, 2025 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, has reported its financial and operational results for the fiscal second quarter ended March 31, 2024. Key Highlights for Second Fiscal Quarter 2025 Revenue increased 59% to $27.3 million, compared to revenue in the prior year quarter of $17.2 million.Operating Income totaled $4.6 million, compared to an operating loss of $1 million in Q2 FY 2024.Net Income fo ...

Flagship Deployment of NEXT Platform Reinforces Vicon’s Growth Momentum in Fiscal 2025Hauppauge, NY, May 07, 2025 (GLOBE NEWSWIRE) -- - Vicon Industries, a subsidiary of Cemtrex Inc. (Nasdaq: CETX) and a leading provider of advanced security and surveillance solutions, today announced it has secured a significant new order valued at approximately $1 million from one of Saudi Arabia’s leading media and broadcasting organizations. The order includes the company’s latest innovation, the NEXT Modular Sensor Sys ...

Core Viewpoint - Cemtrex, Inc. has experienced significant financial challenges, particularly in its Security segment, leading to a notable decline in revenues and a substantial net loss for the fiscal first quarter of 2025 [2][4][10]. Financial Performance - For Q1 2025, Cemtrex reported revenues of $13.7 million, an 18.6% decrease from $16.9 million in the same quarter last year [2]. - The Security segment's revenues fell sharply by 40.5% to $5.5 million from $9.2 million year-over-year, while the Industrial Services segment saw a 7.5% increase to $8.3 million from $7.7 million [2]. - Gross profit declined 19.5% to $5.7 million, representing 41.5% of revenues, compared to 41.9% in the prior year [3]. - Operating expenses rose 2.1% to $7.9 million, driven by higher salaries and R&D investments [3]. - The company reported an operating loss of $2.3 million, widening from $0.7 million a year ago, and a net loss of $28.9 million, up from $1.3 million in the previous year [4]. Cash Flow and Balance Sheet - As of December 31, 2024, cash and cash equivalents totaled $5.5 million, slightly up from $5.4 million as of September 30, 2024 [5]. - Inventory increased significantly to $11.1 million from $6.9 million, indicating preparation for anticipated orders [5]. - Accounts payable decreased to $3.5 million from $4.5 million, while the revolving line of credit increased to $4.1 million from $3.1 million [6]. Management Commentary and Market Outlook - The CEO acknowledged challenges in the Security segment but highlighted a turnaround in January 2025, with record orders including a $10.4 million contract for a surveillance system [7]. - The company anticipates fiscal second-quarter sales to achieve year-over-year growth of 15-20% [7]. - The Industrial Services segment is expected to continue growing through project completions and new contracts [11]. Product Development - Vicon launched the NEXT Modular Camera System, integrating AI analytics, which is expected to enhance its competitive position in the security industry [8]. - An AI-driven gun detection feature was introduced for its cameras, aimed at improving public safety [8]. Strategic Changes - Cemtrex executed a 60:1 and a subsequent 35:1 reverse stock split to comply with Nasdaq's minimum bid price requirements [12]. - The company restructured its royalty agreement related to the divestiture of Cemtrex XR, eliminating a prior $820,000 minimum royalty obligation [12].

Core Insights - Vicon Industries, a subsidiary of Cemtrex Inc., has secured a new order valued at approximately $1.2 million for security solutions, including cameras and software licenses, for a Texas border protection application [1][2][3] - The order reflects customer confidence in Vicon's innovative security solutions and contributes to the company's growth momentum, with fulfillment expected in fiscal Q2 2025 [2][3] - The CEO of Cemtrex highlighted the increasing demand for advanced surveillance technology and the company's commitment to executing its growth strategy for fiscal 2025 [3] Company Overview - Cemtrex, Inc. operates in the Security and Industrial sectors, with Vicon Industries leading its Security segment, providing advanced video management software and integrated surveillance solutions [4] - The Industrial segment, through Advanced Industrial Services, offers rigging, millwrighting, process piping, and equipment installation services to manufacturers [4] - Cemtrex focuses on innovation, execution, and strategic growth to enhance safety, efficiency, and value for customers and shareholders [4]

Core Insights - Vicon Industries, a subsidiary of Cemtrex Inc., has secured a new order valued at approximately $1.2 million for security solutions, indicating strong customer confidence and demand in high-security environments [1][2][3] - The fulfillment of this order is expected in fiscal Q2 2025, contributing to Vicon's growth momentum and positioning the company to meet or exceed its growth targets for the year [2][3] - The company is experiencing increasing demand for its advanced surveillance technology, particularly in mission-critical security applications, which supports its growth strategy for fiscal 2025 [3] Company Overview - Cemtrex, Inc. operates in the Security and Industrial sectors, with Vicon Industries leading its Security segment by providing advanced video management software and integrated surveillance solutions [4] - The Industrial segment, through Advanced Industrial Services, offers expert services to manufacturers, emphasizing the company's diversified technology focus [4] - Cemtrex is committed to innovation and strategic growth, aiming to enhance safety, efficiency, and value for its customers and shareholders [4]

Revenue Performance - Security segment revenues decreased by $3,714,102 or 41% to $5,453,699 for the three months ended December 31, 2024, compared to $9,167,801 for the same period in 2023 due to unexpected delays in orders [142]. - Industrial Services segment revenues increased by $575,835 or 7% to $8,286,200 for the three months ended December 31, 2024, compared to $7,710,365 for the same period in 2023, driven by increased demand [143]. Profitability - Gross profit for the three months ended December 31, 2024, was $5,701,936 or 41% of revenues, down from $7,082,399 or 42% of revenues for the same period in 2023 [144]. Expenses - Research and Development expenses increased by $41,278 or 5% to $890,083 for the three months ended December 31, 2024, compared to $848,805 for the same period in 2023, related to the development of next-generation security solutions [148]. - Other expense for the three months ended December 31, 2024, was $26,265,257, significantly higher than $505,272 for the same period in 2023, primarily due to losses on warrants [149]. Working Capital and Cash Flow - Working capital decreased to $4,130,393 at December 31, 2024, from $8,103,457 at September 30, 2024, mainly due to increased current maturities of long-term debt and accrued expenses [153]. - Cash used by operating activities was $1,201,817 for the three months ended December 31, 2024, compared to $3,139,073 for the same period in 2023, reflecting a negative operating cash flow [154]. - Trade receivables decreased by $1,956,874 or 18% to $9,202,802 at December 31, 2024, from $11,159,676 at September 30, 2024, attributed to decreased sales in the Security segment [155]. Financing Activities - Cash provided by financing activities increased to $2,387,449 for the three months ended December 31, 2024, compared to $998,099 for the same period in 2023, driven by proceeds from the revolving line of credit and warrant exercises [157]. - The Company has secured a line of credit for its Vicon brand with available capacity of $903,102 as of December 31, 2024, to support operations [158].

Core Insights - Cemtrex Inc. reported a significant net loss of $28.5 million for the first fiscal quarter of 2025, primarily due to non-cash expenses related to warrants and a decrease in revenue from its security segment [3][14][25] - The company experienced a 19% decrease in total revenue, amounting to $13.7 million, compared to $16.9 million in the same quarter of the previous year [8][9][10] Financial Performance - Operating loss for the first fiscal quarter of 2025 was $2.3 million, compared to an operating loss of $0.7 million in the prior year [3][13] - Gross profit decreased to $5.7 million, representing 41% of revenues, down from $7.1 million or 42% of revenues in the previous year [11][25] - Total operating expenses increased to $8.0 million from $7.8 million year-over-year, driven by higher salaries, general and administrative expenses, and R&D costs [12][25] Segment Performance - Vicon Industries, the security segment, saw a 41% revenue decline to $5.5 million due to weaker industry demand and project delays [4][10][17] - Advanced Industrial Services (AIS) reported a 7% revenue increase to $8.3 million, benefiting from strategic acquisitions and growing market demand [6][10][17] - Vicon launched the NEXT™ Modular Camera System, integrating advanced AI analytics, which is expected to enhance sales in the upcoming quarters [5][8][17] Future Outlook - The company anticipates a rebound in Vicon's sales, with expectations to achieve year-over-year growth of 15%-20% in the second fiscal quarter [4][7] - AIS is positioned for continued growth with multiple projects set for completion in 2025 and a strong pipeline of orders [6][7]

Core Viewpoint - Zacks Investment Research has initiated coverage of Cemtrex, Inc. (CETX) with a "Neutral" recommendation, reflecting a mixed outlook for the company amid its advancements in AI-driven security technology and industrial services despite industry challenges [1] Company Overview - Cemtrex, headquartered in Hauppauge, NY, operates in two primary business segments: Security and Industrial Services, providing advanced security solutions and industrial contracting services through its subsidiaries, Vicon Industries, Inc. and Advanced Industrial Services (AIS) [2] Financial Performance - Cemtrex reported a 12.6% year-over-year revenue increase to $66.9 million in fiscal 2024, driven by a 39.3% growth in the AIS segment to $34.8 million, significantly aided by the Heisey Mechanical acquisition [3] - The company's debt increased to $13.3 million from $9.9 million a year earlier, with total liabilities now at 88.8% of total assets, raising concerns about financial flexibility [4] - Interest expenses are significant at $2.2 million [4] Growth Drivers - Key factors for future growth include a focus on AI-powered security solutions, highlighted by a $10.4 million contract for expanding a state correctional facility's surveillance system [5] - The AIS segment has a backlog of large-scale infrastructure projects, including a $6.7 million wastewater treatment contract and a $4.7 million energy upgrade, which supports revenue visibility into fiscal 2025 [5] Competitive Landscape - Both segments operate in highly competitive industries, facing pricing pressures and bidding dynamics that affect margins [6] - AIS's reliance on industrial and infrastructure projects exposes it to economic cyclicality, potentially impacting future revenue stability [6] Operational Challenges - Operating expenses rose 20.4%, outpacing revenue growth and pressuring margins, with gross margin contracting to 41% from 43% due to higher acquisition-related costs [6] Market Positioning - Cemtrex's stock has underperformed compared to industry peers and the broader market over the past year, trading at distressed levels without a clear path to profitability and financial stability [7] - The company's modest market capitalization is noted at $4.7 million, indicating potential undervaluation relative to peers [8]

Core Points - Cemtrex Inc. has regained compliance with Nasdaq's minimum stockholders' equity requirement, allowing its shares to continue trading on the Nasdaq Stock Market [1][3] - The company previously received a notification regarding non-compliance on August 23, 2024, due to stockholders' equity falling below the required threshold [2] - As of December 30, 2024, Cemtrex reported stockholders' equity of $4,710,677, which satisfied Nasdaq's requirements [3] Company Overview - Cemtrex Inc. operates through two subsidiaries: Vicon Industries Inc. and Advanced Industrial Services Inc. [4] - Vicon Industries specializes in advanced security and surveillance technology, providing solutions for various sectors including businesses, schools, and municipalities [5] - Advanced Industrial Services offers industrial contracting services such as millwrighting, rigging, and electrical work, serving multiple industrial markets [6]