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]

Group 1 - Cemtrex Inc. has regained compliance with Nasdaq's minimum stockholders' equity requirement, allowing its securities to continue being listed and traded on the Nasdaq Stock Market [1][3] - The company previously received a notification from Nasdaq on August 23, 2024, indicating that its stockholders' equity was below the required minimum [2] - As of December 30, 2024, Cemtrex's stockholders' equity was reported at $4,710,677, confirming compliance with Nasdaq's requirements [3] Group 2 - Cemtrex Inc. operates 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 and municipalities [5] - Advanced Industrial Services offers industrial contracting services across multiple markets, ensuring safe and efficient installation of production equipment [6]

Financial Performance - The company incurred substantial losses of $7.2 million and $9.2 million for fiscal years 2024 and 2023, respectively[144] - The company incurred substantial losses of $7,229,491 and $9,196,875 for fiscal years 2024 and 2023, respectively[68] - The company's gross profit was $27,478,204 and $25,685,826 for fiscal years 2024 and 2023, respectively[6] - The company's operating loss was $5,269,745 and $1,511,508 for fiscal years 2024 and 2023, respectively[6] - The company's net loss attributable to Cemtrex, Inc. stockholders was $7,229,491 and $9,196,875 for fiscal years 2024 and 2023, respectively[6] - The company's total operating expenses were $32,747,949 and $27,197,334 for fiscal years 2024 and 2023, respectively[6] - The company's revenues were $66,863,884 and $59,368,562 for fiscal years 2024 and 2023, respectively[6] - The company's cost of revenues was $39,385,680 and $33,682,736 for fiscal years 2024 and 2023, respectively[6] - The company's general and administrative expenses were $28,860,019 and $23,929,340 for fiscal years 2024 and 2023, respectively[6] - Net loss for the year ended September 30, 2024 was $7,635,505, compared to $9,233,438 in the previous year[8] - Comprehensive loss attributable to Cemtrex, Inc. stockholders was $7,356,900 for the year ended September 30, 2024, compared to $8,497,694 in the previous year[8] - Net loss for the year ended September 30, 2024, was $7,635,505, compared to $9,233,438 in 2023[16] - Net loss for 2024 was $(7,635,505), an improvement from $(9,233,438) in 2023[499] - The company's net loss improved to $(7,635,505) in 2024 from $(13,292,242) in 2022[499] - The company incurred net losses of $7.2 million in 2024, $9.2 million in 2023, and $13.0 million in 2022, with an accumulated deficit of $71.4 million as of September 30, 2024[196] Revenue Recognition - Revenue from fixed price contracts is recognized using the percentage-of-completion method[151] - Revenue from time and material price contracts is recognized based on costs incurred and projected markup[152] - The company's contracts generally contain one performance obligation, recognized as revenue over time[153] - Over time revenue recognition increased to 57% in 2024 from 48% in 2023[155] - Point-in-time revenue recognition decreased to 43% in 2024 from 52% in 2023[155] International Operations - International operations accounted for approximately 5.9% of net sales in 2024[140] - Foreign currency translation loss for the year ended September 30, 2024 was $127,409, compared to a gain of $699,181 in the previous year[8] Tax and Warranty Provisions - The company did not take any uncertain tax positions for the years ended September 30, 2024 and 2023[158] - The company may recognize tax benefits from uncertain tax positions only if more likely than not to be sustained[159] - The company provides for estimated costs of product warranties and processes[155] Credit and Inventory Reserves - The company's allowance for credit losses was $155,918 and $234,924 at September 30, 2024, and 2023, respectively[79] - The company's inventory obsolescence reserve was $1,044,530 and $618,021 at September 30, 2024, and 2023, respectively[84] - Inventory obsolescence reserve increased to $1,044,530 as of September 30, 2024, compared to $618,021 in 2023[404] Cash Flow and Financing - Net cash used by operating activities for 2024 was $3,949,360, an improvement from $4,724,305 in 2023[16] - Depreciation and amortization expenses increased to $1,328,741 in 2024 from $1,026,075 in 2023[16] - Goodwill impairment of $530,475 was recorded in 2024, compared to none in 2023[16] - Inventory increased by $1,893,759 in 2024, compared to an increase of $48,598 in 2023[16] - Net cash used by investing activities decreased to $1,257,393 in 2024 from $5,628,400 in 2023[16] - Proceeds from offerings in 2024 amounted to $10,035,292, with expenses of $995,333[16] - Total cash, cash equivalents, and restricted cash decreased to $5,420,392 in 2024 from $6,349,562 in 2023[19] - The company raised $9,039,959 in net proceeds through its May 2024 equity financing[36] - The company anticipates an additional $5 to $10 million when the Series B warrants are exercised[36] - The company raised approximately $9.0 million in net proceeds through May 2024 equity financing and anticipates an additional $5 to $10 million from Series B warrants[193] Stock and Equity - Paid-in additional capital increased to $73,262,536 as of September 30, 2024, up from $68,882,750 in the previous year[11] - Accumulated deficit increased to $71,355,386 as of September 30, 2024, up from $64,125,895 in the previous year[11] - Cemtrex stockholders' equity decreased to $4,710,677 as of September 30, 2024, down from $7,687,614 in the previous year[11] - Noncontrolling interest decreased to $250,165 as of September 30, 2024, down from $656,179 in the previous year[11] - Share-based compensation for the year ended September 30, 2024 was $30,235, compared to $106,839 in the previous year[11][13] - Treasury stock purchases for the year ended September 30, 2024 amounted to $69,705[11] - Shares issued to pay for services during the year ended September 30, 2024 amounted to $169,000[11] - The company completed a 60:1 reverse stock split on October 2, 2024, and a 35:1 reverse stock split on November 26, 2024[23] - The company completed a 60:1 reverse stock split on October 2, 2024, and a 35:1 reverse stock split on November 26, 2024[55] - The company has 1,724,162 shares of common stock outstanding as of December 23, 2024[45] - The company’s common stock had an aggregate market value of $4,249,917 based on the average bid and asked price of $8,799 on March 28, 2024[44] - The company issued 123,167 shares of Series 1 Preferred Stock to pay dividends on October 7, 2024[398] - The company's equity compensation plans had 18 outstanding options with a weighted average exercise price of $105,258.92 as of September 30, 2024[393] Nasdaq Compliance and Delisting - The company received a Nasdaq notification on August 21, 2024, for not meeting the minimum stockholder's equity requirement of $2,500,000[28] - The company may be subject to delisting if it fails to evidence compliance with the stockholders' equity requirement by March 31, 2025[31] - The Company received a Nasdaq notification on July 29, 2022, for failing to meet the minimum bid price requirement of $1.00 for Series 1 Preferred Stock[56] - The Company's Series 1 Preferred Stock was delisted from NASDAQ on January 22, 2024, and is now quoted on OTC Markets under the symbol "CETXP"[57] - The Company received a Nasdaq notification on June 14, 2024, for failing to meet the minimum bid price requirement of $1.00 for common stock[58] - The Company received a Nasdaq notification on August 21, 2024, for failing to meet the minimum stockholder's equity requirement of $2,500,000[59] Corporate Governance - The Company's disclosure controls and procedures were effective as of September 30, 2024[452] - The Board of Directors held four meetings during the fiscal year ended September 30, 2024[469] - The Company is classified as a "Controlled Company" under NASDAQ Listing Rule 5615 and is not required to have a Compensation Committee[481] - Saagar Govil owns 153,153 shares of Series 1 Preferred Stock, representing 1.3% of the voting stock[513] - All directors and executive officers as a group own 203,189 shares, representing 73.1% of the voting stock[513] Related Party Transactions - The company recognized $665,520 of revenue from CXR, Inc. during fiscal year 2024[530] - Trade receivables due from CXR, Inc. amounted to $685,788 as of September 30, 2024[530] - The company's total assets included $456,611 in long-term royalties receivable from CXR, Inc. as of September 30, 2024[530] - The company discounted royalties due to $660,621 and recognized $53,126 in royalties for 2024[529] Segment Performance - Identifiable assets for Security segment decreased to $17,253,328 from $21,829,183[191] - Identifiable assets for Industrial Services segment increased to $24,576,055 from $23,781,349[191] - Total assets decreased to $44,115,458 from $48,453,743[191] Liquidity and Capital Resources - The company has $3,897,511 in cash as of September 30, 2024[36] - The company secured a line of credit for its Vicon brand with available capacity of $1,874,989 as of September 30, 2024[36] - The company’s working capital and current debt indicate substantial doubt regarding its ability to continue as a going concern[36] - The company has approximately $3.9 million in cash as of September 30, 2024[193] - The company secured a line of credit for its Vicon brand with $1.9 million available capacity and a $3.5 million line of credit for its AIS brand as of September 30, 2024[193] - The company’s ability to meet debt obligations depends on financial and operating performance, which is subject to external economic and competitive factors[200] - The company’s ability to secure sufficient credit arrangements is critical for continued operations, with no assurance of obtaining additional equity or debt financing[201] - The company’s substantial debt could adversely affect its ability to raise additional capital and meet obligations[198] - The company’s plans to meet capital demands for the next twelve months may prove inadequate, despite current safeguards[193] Product Development and Market Acceptance - The company’s Vicon brand is introducing new innovative products to grow revenues[36] - The company’s future operating results depend on successful research, development, and marketing of new products and services in the Security segment[210] - The company’s success is heavily dependent on the market acceptance of its technology, which impacts sales, profits, and cash flow[203] Accounting Adjustments - Short-term investments reclassified to Prepaid expenses and other current assets, resulting in a revised amount of $2,112,022[169] - Gain/(loss) on marketable securities reclassified to Prepaid expenses and other current assets, resulting in a revised amount of $(458,476)[169] - Non-cash royalty income correction resulted in a revised Trade receivables - related party amount of $(1,099,070)[171] - Shares issued to pay for services correction resulted in a revised Accounts payable amount of $3,145,469[171] - Trade receivables, net under ASC 326 adoption showed no impact, remaining at $234,924[176] - Contract assets, net increased by $8,696 due to ASC 326 adoption[176] - Royalties receivable, net - related party remained unchanged at $10,000 post ASC 326 adoption[176] Executive Compensation - Total compensation for the PEO in 2024 was $1,089,451, with $702,443 actually paid[499] Share Repurchase Program - The Company repurchased 71,951 shares of Series 1 Preferred Stock for $69,705 under the Share Repurchase Program approved on August 22, 2023[57]

Core Insights - Cemtrex, Inc. reported a revenue increase of 13% for the fiscal year 2024, totaling $66.9 million, driven by strong demand for Advanced Industrial Services (AIS) products and services, despite a decline in security technology revenue from the Vicon brand [15][23][36] - The company experienced an operating loss of $5.3 million for the full year 2024, compared to a loss of $1.5 million in 2023, primarily due to increased general and administrative expenses [3][15][42] - AIS segment revenue surged by 39% to $34.8 million, attributed to strategic acquisitions and growing market demand, while Vicon's revenue decreased by 7% to $32.0 million [15][41][40] Financial Performance - Fourth quarter revenue for 2024 increased by 9% to $18.1 million, compared to $16.6 million in the fourth quarter of 2023 [7][23] - Gross profit for the year was $27.5 million, representing 41% of revenues, a slight decrease from 43% in the previous year [24] - The net loss for the full year 2024 was $7.7 million, an improvement from a net loss of $9.2 million in 2023, with a net income of $4.4 million in Q4 2024 compared to a net loss of $1.2 million in Q4 2023 [25][15] Segment Highlights - AIS achieved record revenue growth of 39% in fiscal 2024, with significant contracts awarded, including a $6.7 million project in the wastewater infrastructure market [16][40] - Vicon launched the NEXT Modular Camera System, integrating advanced AI analytics, and secured a $10.4 million order for expanding a surveillance system [20][22][36] - The security segment's revenue for the year decreased by 7% due to weaker industry demand, while AIS's growth was bolstered by strategic acquisitions [41][15] Balance Sheet Overview - As of September 30, 2024, total assets were $44.1 million, down from $48.5 million in 2023, with current assets decreasing to $26.7 million [4][43] - Cash and cash equivalents, along with restricted cash, totaled $5.4 million, a decrease from $6.3 million in the previous year [43][6] - Total liabilities were reported at $39.2 million, slightly down from $40.1 million in 2023 [30]

Core Insights - Cemtrex Inc.'s subsidiary Vicon Industries received a record order of $10.4 million for a state government corrections facility, marking the largest single order in Vicon's 57-year history [1][2][3] - The order will enhance the Valerus surveillance security system with additional hardware and is expected to be fulfilled in the second fiscal quarter of 2025 [2][4] - The demand for Vicon's advanced surveillance technology is increasing, driven by the need for reliable video surveillance and access control solutions in a dynamic environment [3][4] Company Overview - Cemtrex Inc. operates through two subsidiaries: Vicon Industries Inc. and Advanced Industrial Services Inc. [5] - Vicon Industries specializes in advanced security and surveillance technology, providing comprehensive security solutions for various sectors including corrections, schools, and municipalities [6] Market Potential - The video surveillance market is projected to grow to $88.71 billion by 2030, indicating significant growth potential for Vicon [4] - The increasing demand for security solutions across various sectors is expected to drive orders and revenue momentum for the company [4]

Core Insights - Cemtrex Inc.'s subsidiary Vicon Industries received a record order of $10.4 million for a state government corrections facility, marking the largest order in Vicon's 57-year history [1][2] - The order will enhance the Valerus surveillance security system with additional hardware and is expected to be fulfilled in the second fiscal quarter of 2025 [1][2] - The demand for Vicon's advanced surveillance technology is increasing, driven by the need for reliable video surveillance and access control solutions in a dynamic environment [3][4] Company Overview - Cemtrex Inc. operates through two subsidiaries: Vicon Industries Inc. and Advanced Industrial Services Inc. [5] - Vicon Industries specializes in advanced security and surveillance technology, providing mission-critical systems for various sectors including businesses, schools, and municipalities [6] Market Potential - The video surveillance market is projected to grow to $88.71 billion by 2030, indicating significant growth potential for Vicon [4] - Increasing demand for security solutions across sectors such as corrections, school districts, and border protection is expected to drive orders and revenue momentum for the company [4]

Core Points - Cemtrex Inc. has regained compliance with the minimum bid price requirement for continued listing on the Nasdaq Stock Market [1][2] - The company previously received a notification on June 14, 2024, regarding non-compliance due to a closing bid price below $1 per share [2] - A 1-for-35 reverse stock split was executed on November 26, 2024, allowing the company to meet the listing 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 and municipalities [5] - Advanced Industrial Services offers industrial contracting services, including millwrighting, rigging, and electrical work, across multiple industrial markets [6]