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Cemtrex Inc. (CETX-6.98%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in Security segment revenues to $5,453,699 from $9,167,801 in the same quarter the previous year. This decrease is attributed to unexpected delays in orders for security technology products.
Industrial Services segment revenues increased to $8,286,200 from $7,710,365, driven by increased demand for services.
Gross profit for the quarter was $5,701,936, representing 41% of revenues, compared to 42% in the same quarter of the previous year. The decrease in gross profit percentage is due to changes in product mix and project margins.
General and administrative expenses increased slightly to $7,093,289 from $6,971,966, mainly due to increased fringe benefits, legal expenses, rent, and travel.
Research and development expenses were $890,083, up from $848,805, related to the development of next-generation security and surveillance systems.
The company reported a net loss of $28,934,519 for the quarter, compared to a net loss of $1,303,903 in the previous year. The significant increase in net loss is primarily due to losses on warrant liabilities.
Cash used by operating activities was $1,201,817, while cash used in investing activities was $1,008,899, primarily for property and equipment purchases and investments.
Cash provided by financing activities was $2,387,449, driven by proceeds from the revolving line of credit, a note payable, and warrant exercises.
Cemtrex had a working capital of $4,130,393 as of December 31, 2024. The company acknowledges substantial doubt regarding its ability to continue as a going concern due to current debt obligations and working capital constraints.
The filing also details a Standstill Agreement with Streeterville Capital, LLC, and a revised contract with the company's CEO, Saagar Govil, regarding the sale of subsidiaries.
Cemtrex continues to focus on its Security and Industrial Services segments, with plans for growth through increased marketing, strategic partnerships, and potential acquisitions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cemtrex Inc. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.