CETX

New in FY2025

• Our international operations accounted for approximately 6.8% of our net sales in 2025.
• The Company has incurred substantial losses of $28.3 million and $7.6 million for fiscal years 2025 and 2024, respectively, and working capital of $5.2 million as at the end of fiscal 2025, that raise substantial doubt with respect to the Company’s ability to continue as a going concern.
• The Company has approximately $5.0 million in cash as of September 30, 2025.
• Additionally, the Company has (i) secured a line of credit for its Vicon brand to fund operations, which as of September 30, 2025, has available capacity of $1.6 million, and a line of credit for its AIS brand with a $3.5 million capacity that has not been drawn upon, (ii) continually reevaluate our pricing model on our Vicon brand to improve margins on those products and introducing new innovative products to grow revenues, (iii) raised approximately $12.5 million in net proceeds through our May 2024 equity financing, raised an additional $5.7 million subsequent to the balance sheet date and anticipate an additional $2.4 million when the remaining Series B warrants are exercised, (iv) raised approximately $1.2 million in net proceeds from our May 2025 equity offering and an additional $4.0 million in December 2025, and (v) has effected a 60:1, 35:1, and a 15:1 reverse stock splits on our common stock to remain trading on the Nasdaq Capital Markets, and improve our ability to potentially raise capital through equity offerings that we may use to satisfy debt.
• We have incurred net losses, including net losses attributable to Cemtrex, Inc. shareholders of $28.1 million in 2025, $7.2 million in 2024, $9.2 million in 2023, and $13.0 million in 2022.
• We have an accumulated deficit of $99.4 million as of September 30, 2025.
• As of September 30, 2025, our total indebtedness was approximately $16.8 million, including notes payable of $8.5 million, revolving line of credit of $3.2 million, mortgage payable of $3.2 million, and bank loans of $1.9 million.
• By comparison, as of September 30, 2024, our total indebtedness was approximately $21.05 million, including notes payable of $12.4 million, revolving line of credit of $3.1 million, mortgage payable of $3.3 million, bank loans of $2.2 million, and $0.05 million of PPP loans.
• For 2025 and 2024 approximately $12.1 million and $7.9 million, respectively, of such debt is classified as current.
• Risks Related to Our Investment in Digital Assets The value of our digital asset holdings is highly volatile and may decline significantly.
• We have invested in digital assets, primarily Solana (SOL), which we hold and stake for potential yield.
• These holdings are subject to significant risks, including extreme price volatility, regulatory uncertainty, technological vulnerabilities, and liquidity constraints.
• Any material decline in value or impairment could adversely affect our financial condition, results of operations, and stock price.
• Digital assets, including SOL, have experienced extreme price volatility.
• The market price of SOL is influenced by factors beyond our control, such as market sentiment, speculative trading, adoption rates, and global economic conditions.
• A significant decline in SOL’s price could result in substantial losses or impairment charges, negatively impacting our balance sheet, liquidity, and financial results.
• Historical volatility in cryptocurrency markets has led to rapid and severe price drops, and there is no assurance that our holdings will appreciate or maintain value.
• Our digital assets are subject to risks associated with staking and the Solana network.
• We stake our SOL holdings to earn rewards, exposing us to additional risks, including slashing penalties for validator misconduct, network downtime, or illiquidity during unstaking periods.
• The Solana network has historically experienced outages and congestion, which could disrupt staking operations, reduce rewards, or temporarily prevent access to our assets.
• Concentration among validators on Solana may also heighten centralization risks, making the network vulnerable to attacks or failures.
• Regulatory developments could adversely affect our digital asset holdings.
• Cryptocurrencies, including SOL, face evolving and uncertain regulation in the U.S. and globally.
• Changes in laws, SEC classifications (e.g., as securities), tax treatment, or enforcement actions could restrict trading, staking, custody, or require registration/compliance we cannot meet.
• Adverse rulings (e.g., ongoing SEC scrutiny of Solana-related products) could impair liquidity, trigger forced sales at unfavorable prices, or result in losses.
• International restrictions could further limit market access.
• We face cybersecurity, custody, and theft risks with our digital assets.
• Digital assets are vulnerable to hacking, theft, fraud, or loss due to private key compromises or platform breaches.
• While we use secure custody methods, no system is foolproof.
• A cybersecurity incident could result in partial or total loss of holdings, with limited or no recovery options (unlike traditional assets with insurance).
• Network-level attacks on Solana could also indirectly affect our assets.
• Valuation, accounting, and liquidity risks associated with digital assets could impact our financial reporting.
• Under ASU 2023-08, we measure SOL at fair value with changes in net income, increasing earnings volatility.
• Fair value relies on exchange prices, which may be manipulated or illiquid.
• Limited trading venues or counterparty failures could hinder sales at desired prices/times, affecting liquidity needs.
• Our digital asset strategy may distract management or fail to deliver expected benefits.
• Allocating resources to managing/staking digital assets diverts attention from core operations.
• If the strategy underperforms or markets decline, it could harm shareholder value without offsetting benefits.
• These risks are in addition to general cryptocurrency market risks.
• Our holdings are not core to operations but could materially impact finances if risks materialize.

and 9 more.

Gone since FY2024

• Our international operations accounted for approximately 5.9% of our net sales in 2024.
• The Company has incurred substantial losses of $7.2 million and $9.2 million for fiscal years 2024 and 2023, respectively, and working capital of $8.1 million as at the end of fiscal 2024, that raise substantial doubt with respect to the Company’s ability to continue as a going concern.
• The Company has approximately $3.9 million in cash as of September 30, 2024.
• Additionally, the Company has (i) secured a line of credit for its Vicon brand to fund operations, which as of September 30, 2024, has available capacity of $1.9 million, and a line of credit for its AIS brand with a $3.5 million capacity that has not been drawn upon, (ii) continually reevaluate our pricing model on our Vicon brand to improve margins on those products and introducing new innovative products to grow revenues, (iii) raised approximately $9.0 million in net proceeds through our May 2024 equity financing and anticipate an additional $5 to $10 million when the Series B warrants are exercised, and (iv) subsequent to the balance sheet date has effected a 60:1 and a 35:1 reverse stock split on our common stock to remain trading on the Nasdaq Capital Markets, and improve our ability to potentially raise capital through equity offerings that we may use to satisfy debt.
• We have incurred net losses, including net losses attributable to Cemtrex, Inc. shareholders of $7.2 million in 2024, $9.2 million in 2023, and $13.0 million in 2022.
• We have an accumulated deficit of $71.4 million as of September 30, 2024.
• As of September 30, 2024, our total indebtedness was approximately $21.05 million, including notes payable of $12.4 million, revolving line of credit of $3.1 million, mortgage payable of $3.3 million, bank loans of $2.2 million, and $0.05 million of PPP loans.
• By comparison, as September 30, 2023, our total indebtedness was approximately $24.4 million, including notes payable of $18.1 million, mortgage payable of $3.4 million, vendor financed purchase of $0.7 million, bank loans of $1.3 million, and $0.9 million of PPP loans.
• For 2024 and 2023 approximately $7.9 million and $14.5 million, respectively, of such debt is classified as current.
• Our operating results are sensitive to raw material and resale product availability, quality, and cost We seek to have many sources of supply for each of our major requirements in order to avoid significant dependence on any one or a few suppliers.
• Based on its evaluation, our management concluded that as of September 30, 2024, that our internal control over financial reporting were effective.
• As of December 2024, approximately 82,722 and 3,318,556 Series A Warrants and Series B Warrants, respectively, remain outstanding and the Series A Warrants have a current exercise price of $3.1488 and the Series B Warrants have a current exercise price of $3.1488.
• As of September 30, 2024, we had total consolidated liabilities of approximately $39.2 million and 2,456,827 shares issued and 2,392,727 shares of Series 1 preferred stock outstanding.
• The aggregate number of shares of our Common Stock that may be issued pursuant to stock awards under our 2020 Equity Compensation Plan as of September 30, 2024, is 28 shares.