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, 2023

☐	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

incorporation or organization)

(I.R.S. Employer

Identification No.)

135 Fell Ct. Hauppauge, NY		11788
(Address of principal executive offices)		(Zip Code)

631-756-9116

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock	CETX	Nasdaq Capital Market
Series 1 Preferred Stock	CETXP	Nasdaq Capital Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒

Yes

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒

Yes

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐

Yes

☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

As of May 8, 2023, the issuer had 885,536 shares of common stock issued and outstanding.

Table of Contents

CEMTREX, INC. AND SUBSIDIARIES

INDEX

		Page

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

	Condensed Consolidated Balance Sheets as of March 31, 2023 (Unaudited) and September 30, 2022	3

	Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2023 and 2022 (Unaudited)	4

	Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended March 31, 2023 and 2022 (Unaudited)	5

	Condensed Consolidated Statement of Stockholders’ Equity for the three and six months ended March 31, 2023 (Unaudited)	6

	Condensed Consolidated Statement of Stockholders’ Equity for the three and six months ended March 31, 2022 (Unaudited)	7

	Condensed Consolidated Statements of Cash Flow for the six months ended March 31, 2023 and 2022 (Unaudited)	8

	Notes to Unaudited Condensed Consolidated Financial Statements	10

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		24

Item 4. Controls and Procedures		29

PART II. OTHER INFORMATION

Item 1. Legal Proceedings		30

Item 1A Risk Factors		30

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		30

Item 3. Defaults Upon Senior Securities		30

Item 4. Mine Safety Disclosures		30

Item 5. Other Information		30

Item 6. Exhibits		31

SIGNATURES		32

Part I. Financial Information

Item 1. Financial Statements

Cemtrex, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

	(Unaudited)
	March 31,			September 30,
	2023			2022
Assets
Current assets
Cash and equivalents	$	6,634,037		$	9,895,761
Restricted cash		645,297			1,577,915
Short-term investments		13,663			13,721
Trade receivables, net		7,271,488			5,399,216
Trade receivables - related party		408,464			-
Trade receivables, net		408,464			-
Inventory –net of allowance for inventory obsolescence		8,561,026			8,487,817
Prepaid expenses and other assets		2,588,400			2,421,644
Assets of discontinued operations		-			3,971,693
Total current assets		26,122,375			31,767,767

Property and equipment, net		5,052,796			5,280,442
Right-of-use assets		2,297,293			2,641,198
Royalties receivable - related party		678,330			-
Note receivable - related party		761,585			761,585
Goodwill		3,906,891			3,906,891
Other		1,584,910			1,399,745
Total Assets	$	40,404,180		$	45,757,628

Liabilities & Stockholders’ Equity
Current liabilities
Accounts payable	$	3,307,521		$	3,050,937
Accounts payable - related party		3,368			19,133
Accounts payable
Short-term liabilities		16,441,488			16,894,743
Lease liabilities - short-term		732,680			754,495
Deposits from customers		74,762			73,144
Accrued expenses		3,062,806			2,271,188
Deferred revenue		2,058,661			1,551,088
Accrued income taxes		57,150			94,848
Liabilities of discontinued operations		-			805,219
Total current liabilities		25,738,436			25,514,795
Long-term liabilities
Loans payable to bank		73,407			110,331
Long-term lease liabilities		1,564,613			1,822,468
Notes payable		1,604,743			-
Mortgage payable		2,125,864			2,160,169
Other long-term liabilities		575,900			807,898
Paycheck Protection Program Loans		70,816			97,120
Deferred Revenue - long-term		581,193			607,309
Total long-term liabilities		6,596,536			5,605,295
Total liabilities		32,334,972			31,120,090

Commitments and contingencies		-			-

Shareholders’ equity
Preferred stock , $0.001 par value, 10,000,000 shares authorized, Series 1, 3,000,000 shares authorized, 2,183,463 shares issued and 2,119,363 shares outstanding as of March 31, 2023 and 2,079,122 shares issued and 2,015,022 shares outstanding as of September 30, 2022 (liquidation value of $10 per share)		2,183			2,079
Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at March 31 31, 2023 and September 30, 2022		50			50
Common stock, $0.001 par value, 50,000,000 shares authorized, 828,570 shares issued and outstanding at March 31, 2023 and 754,711 shares issued and outstanding at September 30, 2022		828			755
Additional paid-in capital		67,042,743			66,641,698
Accumulated deficit		(61,801,025	)		(54,929,020	)
Treasury stock, 64,100 shares of Series 1 Preferred Stock at March 31, 2023 and September 30, 2022		(148,291	)		(148,291	)
Accumulated other comprehensive income

SEC Form 10-Q filed by Cemtrex Inc.