Core Insights - Cemtrex Inc.'s subsidiary, Vicon Industries, has partnered with Hailo to integrate the Hailo-15 System-on-a-Chip into Vicon's NEXT Modular Camera System, enhancing video intelligence capabilities [1][2] Company Overview - Cemtrex Inc. operates two subsidiaries: Vicon Industries and Advanced Industrial Services [8] - Vicon Industries is a leader in advanced security and surveillance technology, providing solutions for various sectors including businesses, schools, and municipalities since 1967 [9] Partnership Details - The collaboration with Hailo aims to pioneer advancements in the security industry by embedding high-performance AI technology into Vicon's NEXT camera system [2] - Vicon is among the first to market the Hailo-15, which offers edge-based AI processing capabilities that surpass traditional camera technologies [2] Product Features - The NEXT camera system includes advanced AI video enhancement, color forensics, smart object classification, and real-time analytics to improve threat detection and response [3] - The Hailo-15 chip provides enhanced video analytics, including object detection and behavioral analysis, while ensuring data privacy by processing information on the edge [4] Technological Advancements - NEXT features onboard technologies such as high-powered microphones and programmable signal lightbars for real-time audio warnings and situational awareness [4][5] - The integration of AI capabilities allows the camera to act as a proactive deterrent rather than just a reactive device, enhancing security operations [5] Market Availability - Vicon is currently taking orders for the NEXT solution, which is expected to start shipping in Q1 2025 [7]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 remained flat at $14.7 million compared to Q3 2023, with a significant increase in the Industrial Services segment offset by a decline in the Security segment [4][9] - Operating loss for Q3 2024 was $3.2 million, a decrease from operating income of $0.1 million in Q3 2023, primarily due to decreased gross profit in the Security segment and increased G&A expenses [5][10] - Net loss for Q3 2024 was $9.1 million, compared to a net loss of $1.2 million in Q3 2023 [10] Business Line Data and Key Metrics Changes - The Security segment revenues decreased by 31% to $6.2 million in Q3 2024, attributed to project delays and overall economic conditions [9] - The Industrial Services segment revenues increased by 49% to $8.5 million, driven by strong demand and additional revenue from the Heisey acquisition [9] Market Data and Key Metrics Changes - The company reported a decrease in inventories to $7.5 million as of June 30, 2024, down from $8.7 million on September 30, 2023, indicating improved operational efficiency [10] Company Strategy and Development Direction - The company aims to achieve positive operating income in the future and is focused on evaluating acquisition opportunities to enhance market reach and service capabilities [7][11] - Investments in sales and marketing resources in the Security segment are expected to drive future sales growth, alongside the launch of new technologies [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong revenue growth in the Security segment in fiscal year 2025, despite current project delays [6] - The company is well-positioned for growth following a $10 million upsized public offering, which also helped improve the balance sheet [7][11] Other Important Information - The operating loss for the nine-month period was $5 million, compared to $1.5 million a year ago, influenced by one-time expenses totaling approximately $2 million [5] Q&A Session Summary - There were no questions raised during the Q&A session, indicating a lack of immediate inquiries from analysts or participants [11][12]

Financial Performance - Revenues for the three months ended June 30, 2024, were $14,686,398, a slight decrease from $14,730,140 for the same period in 2023, representing a decline of approximately 0.3%[5] - Gross profit for the nine months ended June 30, 2024, was $19,898,962, compared to $18,859,530 for the same period in 2023, reflecting an increase of about 5.5%[5] - Operating loss for the three months ended June 30, 2024, was $(3,179,516), compared to an operating income of $53,774 for the same period in 2023[5] - Net loss attributable to Cemtrex, Inc. stockholders for the three months ended June 30, 2024, was $(8,981,026), compared to a net loss of $(1,146,524) for the same period in 2023[5] - The company reported a net loss before income taxes of $(9,082,009) for the three months ended June 30, 2024, compared to $(1,165,759) for the same period in 2023[5] - Total operating expenses for the nine months ended June 30, 2024, were $24,848,991, up from $20,352,319 for the same period in 2023, indicating an increase of approximately 22.3%[5] - Comprehensive loss attributable to Cemtrex, Inc. stockholders for the nine months ended June 30, 2024, was $(12,478,586), compared to $(8,148,694) for the same period in 2023[6] - For the nine months ended June 30, 2024, the net loss was $12,012,943 compared to a net loss of $8,048,022 for the same period in 2023, indicating a significant increase in losses[14] Assets and Liabilities - As of June 30, 2024, total current assets decreased to $26,405,347 from $29,293,041 as of September 30, 2023, representing a decline of approximately 9.8%[3] - Total liabilities rose to $43,474,220 as of June 30, 2024, compared to $40,109,950 as of September 30, 2023, indicating an increase of approximately 5.9%[3] - Long-term debt significantly increased to $16,893,184 from $9,929,348, reflecting a rise of approximately 70.5%[3] - The accumulated deficit grew to $(75,787,626) as of June 30, 2024, compared to $(64,125,895) as of September 30, 2023, marking an increase of about 18.2%[3] - Total stockholders' equity decreased to $47,956 from $7,687,614, a decline of approximately 99.4%[3] - The total assets decreased to $43,827,143 from $48,453,743, indicating a decline of approximately 9.3%[3] Cash Flow and Financing - Cash and cash equivalents increased to $6,468,197 from $5,329,910, showing a growth of about 21.4%[3] - Net cash used by operating activities for continuing operations was $2,076,477, an improvement from $5,394,048 in the prior year[14] - The company’s cash flows from investing activities resulted in a net cash outflow of $406,224, compared to $735,265 in the previous year[14] - The company’s cash flows from financing activities provided a net cash inflow of $3,867,544, contrasting with a net cash outflow of $1,280,991 in the prior year[14] - The company has secured a line of credit for its Vicon brand with available capacity of $2,269,675 as of June 30, 2024[28] - The company incurred cash paid for interest of $705,504 during the period, compared to $382,575 in the prior year[15] Segment Performance - The Company’s Security segment revenues decreased by $2,821,792 or 31% to $6,193,487 for the three months ended June 30, 2024, compared to $9,015,279 for the same period in 2023[81] - The Industrial Services segment revenues increased by $2,778,050 or 49% to $8,492,911 for the three months ended June 30, 2024, compared to $5,714,861 for the same period in 2023, driven by increased demand and the Heisey acquisition[81] - Security segment revenues for the nine months ended June 30, 2024, decreased by $2,487,701 or 10% to $23,446,220, attributed to project delays and weakening economic conditions[84] - Industrial Services segment revenues for the nine months ended June 30, 2024, increased by $8,438,081 or 50% to $25,277,939, driven by increased demand and the Heisey acquisition[84] Shareholder Information - The company has 17,437,456 shares of common stock outstanding as of August 9, 2024[1] - The weighted average number of shares for basic and diluted earnings per share was 31,346,628 for the three months ended June 30, 2024, compared to 897,897 for the same period in 2023[5] - The Company repurchased 71,951 shares for $69,705 under the Share Repurchase Program approved on August 22, 2023, with shares cancelled on April 8, 2024[25] - The Company raised approximately $10,035,293 in gross proceeds from a public offering that closed on May 3, 2024, selling 11,764,705 units[26] - The Company filed a Certificate of Amendment to increase authorized shares of common stock from 50,000,000 to 70,000,000 on August 2, 2024[24] Accounting and Compliance - The company has adopted the CECL model for measuring credit losses, effective October 1, 2023, with no material impact on financial statements[33] - The company is evaluating the impact of recently issued accounting standards, including ASU 2022-03 and ASU 2023-07, on its financial statements[36] - The Company received a notification from Nasdaq on January 26, 2023, granting an additional 180 days to regain compliance with the minimum bid price requirement, which was set to expire on July 24, 2023[23] - The Company announced a special meeting for Series 1 Preferred Stock shareholders on December 26, 2023, to approve a reverse stock split, but the meeting was adjourned due to insufficient votes[23] - The Company’s Series 1 Preferred Stock was delisted from NASDAQ on January 22, 2024, and is now quoted on the OTC Markets under the symbol "CETXP"[25] Research and Development - Research and development expenses for the three months ended June 30, 2024, were $1,049,909, a decrease from $2,664,688 for the same period in 2023[5] - Research and Development expenses for the nine months ended June 30, 2024, were $2,664,688, a decrease of $1,231,029 or 32% compared to the same period in 2023[86] Other Financial Metrics - The company reported a loss per share of $(1.36) for continuing operations, adjusted from a previously reported $(1.29) for the six months ended June 30, 2023[31] - The company reported a pretax loss on the sale of Cemtrex Advanced Technologies, Inc. and Cemtrex XR, Inc. of $(2,455,341)[38] - The company recognized $13,282 and $39,845 in amortization of discounted royalties for the three and nine months ended June 30, 2024, respectively[39] - The company has recognized share-based compensation expenses of $22,675 for the three months ended June 30, 2024, and $93,313 for the nine months ended June 30, 2024[74]

Financial Data and Key Metrics Changes - The operating loss for the second quarter was $1 million compared to operating income of $0.4 million a year ago [3] - The net loss for the second quarter of 2024 was $1.6 million compared to a net loss of $0.6 million in the second quarter of 2023 [18] - Total operating expenses for the three months ended March 31, 2024, were $8 million compared to $7 million in the prior year's quarter [18] - Cash, cash equivalents, and restricted cash totaled $4.1 million at March 31, 2024, down from $6.3 million at September 30, 2023 [18] Business Line Data and Key Metrics Changes - Revenue for the Security segment decreased by 18% to $8.1 million due to delays in certain projects [15] - The Industrial Services segment revenues increased by 47% to $9.1 million, driven by increased demand and the Heisey acquisition [6][16] - Gross profit for the second quarter was $6.9 million or 40% of revenues, down from $7.3 million or 46% of revenues for the same quarter last year [6] Market Data and Key Metrics Changes - The company secured significant orders in the Industrial Services segment, including a $1.6 million order for relocation projects and a $0.5 million order for equipment removal [24] - The company anticipates that the Industrial Services segment could achieve more than 30% annual growth in fiscal year 2024 [16] Company Strategy and Development Direction - The company continues to invest in sales and marketing resources in the Security segment to drive sales growth [4] - There is a focus on exploring acquisition opportunities to enhance market reach and service capabilities [8] - The company aims to achieve positive operating income for the full fiscal year 2024 while maintaining tight cost controls [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive operating income for the full year and highlighted the importance of diligent balance sheet management [8][27] - The company is well-positioned to build on its momentum and expects to drive further growth through new technologies and improvements to its core software platform [4][27] Other Important Information - The company launched Anavio, a new cloud security platform, which aims to enhance user access control and situational awareness [23] - Inventories decreased to $7.4 million at March 31, 2024, from $8.7 million at September 30, 2023 [26] Q&A Session Summary - The conference call concluded with an invitation for participants to reach out to the investor relations firm for any unanswered questions [20]

Revenue Performance - Security segment revenues decreased by $1,828,966 or 18% to $8,084,932 for the three months ended March 31, 2024, compared to $9,913,898 for the same period in 2023 due to project delays [98]. - Industrial Services segment revenues increased by $2,915,164 or 47% to $9,074,663 for the three months ended March 31, 2024, driven by increased demand and the Heisey acquisition [98]. - Revenues from the Security segment increased by $334,091 or 2% to $17,252,733 for the six months ended March 31, 2024, compared to $16,918,642 for the same period in 2023 [141]. - Revenues from the Industrial Services segment surged by $5,660,031 or 51%, reaching $16,785,028 for the six months ended March 31, 2024, up from $11,124,997 in the prior year [141]. Profitability and Expenses - Gross profit for the three months ended March 31, 2024, was $6,939,416 or 40% of revenues, down from $7,338,481 or 46% for the same period in 2023 [99]. - General and administrative expenses increased by $1,701,890 or 32% to $7,020,157 for the three months ended March 31, 2024, primarily due to higher sales and marketing activities [100]. - Research and Development expenses decreased by $663,941 or 41% to $951,400 for the three months ended March 31, 2024, compared to $1,615,341 for the same period in 2023 [101]. - The Company reported a decrease in other expenses for the six months ended March 31, 2024, totaling $953,311, down from $2,103,951 for the same period in 2023 [129]. - The Company had an income tax expense from continuing operations of $170,755 for the six months ended March 31, 2024, compared to $0 in the same period of 2023 [129]. Cash Flow and Working Capital - Working capital increased to $10,300,384 at March 31, 2024, from $1,948,923 at September 30, 2023, primarily due to a standstill agreement on two notes [103]. - Cash used by operating activities for continuing operations was $2,752,236 for the six months ended March 31, 2024, compared to $5,383,060 for the same period in 2023 [103]. - The Company has $2,916,120 in cash and cash equivalents as of March 31, 2024, and secured a line of credit with available capacity of $980,766 [131]. Shareholder Activities - The Company repurchased 71,951 shares for $69,705 under the Share Repurchase Program during the six months ended March 31, 2024 [116]. - The Underwriter received a 7.0% underwriting discount on the public offering price for the Units, along with a non-accountable expense allowance of 0.5% of the gross proceeds [120]. - The Company raised approximately $10,035,000 in gross proceeds from an underwritten public offering, selling a total of 11,764,705 Units and 11,210,000 Pre-Funded Units [120]. Compliance and Reporting - The Chief Executive Officer and Interim Chief Financial Officer have certified compliance with the Sarbanes-Oxley Act of 2002 [152]. - The company filed its Annual Report on Form 10-K with the SEC on December 28, 2023, which includes risk factors [148]. - There have been no changes in internal control over financial reporting that materially affected the company during the six months ended March 31, 2024 [145]. - The management does not expect that disclosure controls and procedures will prevent all errors and fraud, indicating inherent limitations in control systems [146]. Agreements and Future Outlook - The Company anticipates that its long-term objectives will require sufficient cash to fund marketing, sales, and strategic acquisitions, which may not be fully met by current resources [131]. - The Company has various amendments and agreements filed, including a Term Loan Agreement amendment dated March 3, 2023 [150]. - The company has entered into multiple Securities Purchase Agreements, with the latest dated April 30, 2024 [150]. - The Company has granted the Underwriter a right of first refusal for certain financing transactions for a period of 15 months following the closing of the Offering [121]. - The company has engaged in asset purchase agreements, including one dated June 7, 2023 [150]. - The company has filed Inline XBRL documents as part of its reporting requirements [150]. - The company has a Lock-Up Agreement and Underwriting Agreement filed on April 30, 2024 [150].

Hauppauge, NY, May 09, 2024 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ:CETX, CETXP))), an advanced security technology and industrial services company, will hold a conference call on Tuesday, May 14, 2024 at 5:00 p.m. Eastern time to discuss its results for the fiscal second quarter ended March 31, 2024. A press release detailing these results will be issued prior to the call. Cemtrex Chief Executive Officer Saagar Govil and Chief Financial Officer Paul Wyckoff will host the conference call, followed by a q ...

Hauppauge, NY, May 03, 2024 (GLOBE NEWSWIRE) --  – Cemtrex, Inc. (NASDAQ:CETX) (the "Company"), an advanced security technology and industrial services company, today announced the closing of a firm commitment underwritten public offering with gross proceeds to the Company of approximately $10 million, before deducting underwriting discounts and other estimated expenses payable by the Company. The offering was upsized from $9 million. The base offering consisted of 11,764,705 Common Units or Pre-Funded Unit ...

Hauppauge, NY, April 09, 2024 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ:CETX, CETXP))), an advanced security technology and industrial services company, today announced that its subsidiary, Vicon Industries, is set to showcase its new AI-powered unified cloud solution at ISC West 2024, which will be held April 9-12, 2024 at the Venetian Expo, Las Vegas, and with be exhibiting at booth #26049. The International Security Conference & Exposition – also known as ISC West – is the leading comprehensive & conver ...

Hauppauge, NY, March 11, 2024 (GLOBE NEWSWIRE) --  - Cemtrex Inc. (NASDAQ:CETX, CETXP))), an advanced security technology and industrial services company, today announced it has received $2.1 million in new orders through its Advanced Industrial Services ("AIS") subsidiary underscoring the Company's strong market position and optimistic growth outlook. These orders, including a $1.6 million order for two relocation projects from a leading printing and graphics company, and a $0.5 million order to remove exi ...

Hauppauge, NY, March 06, 2024 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ:CETX, CETXP))), an advanced security technology and industrial services company, today announced that its subsidiary, Vicon, is expected to commence the beta release of its innovative Artificial Intelligence (AI) gun detection feature in the second calendar quarter of 2024, marking a significant milestone in public safety and security technology. This groundbreaking feature is designed to function on edge devices, offering a low-cost, ...