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 June 30, 2022

☐	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.)

276 Greenpoint Ave, Suite 208, Brooklyn, NY		11222
(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 August 12, 2022, the issuer had 26,413,296 shares of common stock issued and outstanding.

Table of Contents

CEMTREX, INC. AND SUBSIDIARIES

INDEX

		Page

PART I. FINANCIAL INFORMATION		3

Item 1. Financial Statements		3

	Condensed Consolidated Balance Sheets as of June 30, 2022 (Unaudited) and September 30, 2021	3

	Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) for the three and nine months ended June 30, 2022 and June 30, 2021 (Unaudited)	4

	Condensed Consolidated Statement of Stockholders’ Equity for the nine months ended June 30, 2022 (Unaudited)	5

	Condensed Consolidated Statement of Stockholders’ Equity for the nine months ended June 30, 2021 (Unaudited)	6

	Condensed Consolidated Statements of Cash Flow for the nine months ended June 30, 2022 and June 30, 2021 (Unaudited)	7

	Notes to Unaudited Condensed Consolidated Financial Statements	9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		21

Item 4. Controls and Procedures		26

PART II. OTHER INFORMATION		27

Item 1. Legal Proceedings		27

Item 1A Risk Factors		27

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		27

Item 6. Exhibits		28

SIGNATURES		29

Part I. Financial Information

Item 1. Financial Statements

Cemtrex, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

	(Unaudited)
	June 30,			September 30,
	2022			2021
Assets
Current assets
Cash and equivalents	$	11,442,487		$	15,426,976
Restricted cash		1,518,720			1,759,347
Short-term investments		280,571			14,981
Trade receivables, net		7,564,382			7,810,896
Trade receivables - related party		1,472,514			1,487,155
Inventory –net of allowance for inventory obsolescence		8,458,530			5,657,287
Prepaid expenses and other assets		2,407,116			2,585,652
Total current assets		33,144,320			34,742,294

Property and equipment, net		6,239,239			6,738,944
Right-of-use assets		2,641,960			2,940,127
Goodwill		7,821,283			7,821,283
Other		1,356,766			697,240
Total Assets	$	51,203,568		$	52,939,888


Liabilities & Stockholders’ Equity (Deficit)
Current liabilities
Accounts payable	$	5,401,538		$	4,235,002
Short-term liabilities		17,146,234			9,977,972
Lease liabilities - short-term		819,488			830,791
Deposits from customers		113,106			536,220
Accrued expenses		1,176,787			1,621,053
Deferred revenue		2,594,517			2,004,170
Accrued income taxes		141,465			448,194
Total current liabilities		27,393,135			19,653,402

Long-term liabilities
Loans payable to bank		141,239			767,279
Long-term lease liabilities		1,799,002			2,017,408
Notes payable		228,893			2,350,000
Mortgage payable		2,184,404			2,257,785
Other long-term liabilities		825,629			839,171
Paycheck Protection Program Loans		97,120			1,032,200
Deferred Revenue - long-term		584,003			467,967
Total long-term liabilities		5,860,290			9,731,810

Total liabilities		33,253,425			29,385,212

Commitments and contingencies		-			-

Shareholders’ equity
Preferred stock , $0.001 par value, 10,000,000 shares authorized, Series 1, 3,000,000 shares authorized, 2,079,122 shares issued and 2,015,022 shares outstanding as of June 30, 2022 and 1,885,151 shares issued and 1,821,051 shares outstanding as of September 30, 2021 (liquidation value of $10 per share)		2,079			1,885
Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at June 30, 2022 and September 30, 2021		50			50
Common stock, $0.001 par value, 50,000,000 shares authorized, 26,263,296 shares issued and outstanding at June 30, 2022 and 20,782,194 shares issued and outstanding at September 30, 2021		26,263			20,782
Additional paid-in capital		66,522,085			61,727,834
Retained earnings (accumulated deficit)		(51,788,053	)		(41,908,062	)
Treasury stock at cost		(148,291	)		(148,291	)
Accumulated other comprehensive income (loss)		2,555,441			2,896,452
Total Cemtrex stockholders’ equity		17,169,574			22,590,650
Non-controlling interest		780,569			964,026
Total liabilities and shareholders’ equity	$

SEC Form 10-Q filed by Cemtrex Inc.