Workflow
Cemtrex(CETX) - 2025 Q1 - Quarterly Report
CETXCemtrex(CETX)2025-02-14 21:20

Revenue Performance - Security segment revenues decreased by 3,714,102or413,714,102 or 41% to 5,453,699 for the three months ended December 31, 2024, compared to 9,167,801forthesameperiodin2023duetounexpecteddelaysinorders[142].−IndustrialServicessegmentrevenuesincreasedby9,167,801 for the same period in 2023 due to unexpected delays in orders [142]. - Industrial Services segment revenues increased by 575,835 or 7% to 8,286,200forthethreemonthsendedDecember31,2024,comparedto8,286,200 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 5,701,936or415,701,936 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 41,278or541,278 or 5% to 890,083 for the three months ended December 31, 2024, compared to 848,805forthesameperiodin2023,relatedtothedevelopmentofnext−generationsecuritysolutions[148].−OtherexpenseforthethreemonthsendedDecember31,2024,was848,805 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 505,272forthesameperiodin2023,primarilyduetolossesonwarrants[149].WorkingCapitalandCashFlow−Workingcapitaldecreasedto505,272 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 8,103,457atSeptember30,2024,mainlyduetoincreasedcurrentmaturitiesoflong−termdebtandaccruedexpenses[153].−Cashusedbyoperatingactivitieswas8,103,457 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 3,139,073forthesameperiodin2023,reflectinganegativeoperatingcashflow[154].−Tradereceivablesdecreasedby3,139,073 for the same period in 2023, reflecting a negative operating cash flow [154]. - Trade receivables decreased by 1,956,874 or 18% to 9,202,802atDecember31,2024,from9,202,802 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 2,387,449forthethreemonthsendedDecember31,2024,comparedto2,387,449 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].