What changed in this filing

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Item 1. Financial Statements

2022-08-15 compared with 2022-05-16 · 214 added, 187 removed, 658 unchanged (38% of the section changed)

36 unchanged sentences

Shareholders’ equity

Preferred stock , $ 0.001 par value, 10,000,000 shares authorized, Series 1, 3,000,000 shares authorized, 1,979,753 shares issued

and outstanding as of March 31, 2022 and 1,885,151 shares issued and outstanding as of September 30, 2021 (liquidation value of $ 10

Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at March 31, 2022 and September 30, 2021

Preferred stock , value

Common stock, $ 0.001 par value, 50,000,000 shares authorized, 24,673,210 shares issued and outstanding at March 31, 2022 and

20,782,194 shares issued and outstanding at September 30, 2021

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

Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at June 30, 2022 and September 30, 2021

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

Additional paid-in capital

10 unchanged sentences

Consolidated Statements of Operations and Comprehensive Income/(Loss)

March 31, 2022

March 31, 2021

March 31, 2022

March 31, 2021

For the three months ended

For the six months ended

March 31, 2022

March 31, 2021

March 31, 2022

March 31, 2021

For the nine months ended

June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Cost of revenues

14 unchanged sentences

( 1,891,026 )

( 1,458,017 )

Total other income/(expense), net

( 1,457,886 )

Net loss before income taxes

( 10,311,389 )

( 9,331,746 )

Income tax benefit/(expense)

1 unchanged sentence

( 10,063,448 )

( 9,331,746 )

Less loss in noncontrolling interest

10 unchanged sentences

( 10,404,459 )

( 9,471,877 )

Less comprehensive loss attributable to noncontrolling interest

9 unchanged sentences

Consolidated Statement of Stockholders’ Equity

Preferred Stock Series 1

Preferred Stock Series A

Stock Series 1

Preferred Stock Series C

2 unchanged sentences

Par Value $0.001

Comprehensive

22 unchanged sentences

( 51,107,260 )

Foreign currency translation gain/(loss)

Share-based compensation

Shares issued to pay notes payable

Dividends paid in Series 1 preferred shares

Income/(loss) attributable to noncontrolling interest

Balance at June 30, 2022

( 51,788,053 )

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5 unchanged sentences

Common Stock Par

Par Value $0.001

Comprehensive

Stockholders’

Balance at September 30, 2020, as restated

Balance at September

30, 2020, as restated

$ ( 34,100,067 )

18 unchanged sentences

( 3,674,165 )

Net income/(loss)

Balance at March 31, 2021

( 33,338,546 )

Foreign currency translation gain/(loss)

Dividends paid in Series 1 preferred shares

Share-based compensation

Shares granted to pay notes payable

Income in noncontrolling interest

Net income/ (loss)

Balance at June 30, 2021

( 32,240,533 )

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1 unchanged sentence

Consolidated Statements of Cash Flows

Cash Flows from Operating Activities

For the six months ended

For the nine months ended

Cash Flows from Operating Activities

1 unchanged sentence

$ ( 10,063,448 )

Adjustments to reconcile net loss to net cash provided/(used) by operating activities:

Adjustments to reconcile net income/(loss) to net cash used by operating activities

Depreciation and amortization

Loss on disposal of property and equipment

Amortization of right-of-use assets

Noncash lease expense

Change in allowance for doubtful accounts

6 unchanged sentences

( 2,234,478 )

( 2,407,841 )

Discharge of Paycheck Protection Program Loans

( 3,349,700 )

Settlement Agreement - Related Party

4 unchanged sentences

( 2,801,243 )

( 1,875,591 )

Prepaid expenses and other current assets

11 unchanged sentences

Purchase of property and equipment

( 1,003,121 )

( 1,113,658 )

Proceeds from sale of property and equipment

1 unchanged sentence

Investment in related party

( 1,075,428 )

Proceeds from sale of marketable securities

3 unchanged sentences

Net cash used by investing activities

( 5,654,515 )

Cash Flows from Financing Activities

2 unchanged sentences

( 1,176,763 )

( 2,145,257 )

Payments on capital lease liabilities

Payments on bank loans

2 unchanged sentences

Effect of currency translation

Defined benefit plan actuarial gain/(loss)

Net decrease in cash, cash equivalents, and restricted cash

82 unchanged sentences

for future equity (“SAFE”) in MasterpieceVR.

The SAFE provides that the Company will automatically receive shares of the entity

based on the conversion rate of future equity rounds up to a valuation cap, as defined.

MasterpieceVR is a software company that is developing

software for content creation using virtual reality.

The investment is included in other assets in the accompanying balance sheet and

the Company accounts for this investment and recorded at cost.

No impairment has been recorded for the period ended March 31, 2022.

The SAFE provides that the Company will automatically receive shares of the

entity based on the conversion rate of future equity rounds up to a valuation cap, as defined.

MasterpieceVR is a software company that

is developing software for content creation using virtual reality.

The investment is included in other assets in the accompanying balance

sheet and the Company accounts for this investment and recorded at cost.

No impairment has been recorded for the period ended June 30,

Impacts of COVID-19 on our Business

current COVID-19 pandemic has impacted our business operations and the results of our operations in the last fiscal year, primarily with

delays in expected orders by many customers and new product development, including newer versions of surveillance software since our

technical facility in Pune, India has been under lock down on multiple occasions.

Overall bookings level in the IS segment of our business

were down by more than 20%, however our AT segment had experienced relatively less slow down.

Bookings and revenue are starting to show

signs of recovery in this fiscal quarter compared to the same period last year.

However, due to delays in certain supply chain areas,

the expected launch times of our new products and new versions has resulted in delays of several months.

Additionally, increased prices

and the need to increase wages to retain talent may cause our gross margin percentages to shrink and our operational costs to rise.

COVID-19 pandemic impacted our business operations and the results of our operations during fiscal years 2020 and 2021, primarily with

delays in orders by many customers and new product development, including newer versions of surveillance software since our technical

facility in Pune, India had been under lock down on multiple occasions.

Overall bookings level in the IS segment of our business were

down by more than 20%, compared to fiscal 2019 levels, however our AT segment had experienced relatively less slow down.

revenue are recovering in this fiscal year compared to last year.

However, due to ongoing delays in certain supply chain areas, the expected

launch times of our new products and new versions has resulted in delays of several months.

These supply chain issues have also affected

the Company’s ability to obtain inventory for our current bookings, and the Company has implemented a buildup of inventory levels

to remain competitive and keep backlog orders at a minimum.

Additionally, increased costs and the need to increase wages to retain talent

may cause our gross margin percentages to shrink and our operational costs to rise.

In response to these increased costs, the Company

has implemented an ongoing review of our pricing to cover these additional costs while remaining competitive.

broader implications of COVID-19 on our results from operations going forward remains uncertain.

7 unchanged sentences

be reasonably estimated at this time.

Future developments include the duration, scope and severity of the pandemic, the emergence of

new virus variants that are more contagious or harmful than prior variants, the actions taken to contain or mitigate its impact both

within and outside the jurisdictions where we operate, the impact on governmental programs and budgets, the development of treatments

or vaccines, and the resumption of widespread economic activity.

Due to the inherent uncertainty of the unprecedented and rapidly evolving

situation, we are unable to predict with any confidence the likely impact of the COVID-19 pandemic on our future operations.

Future developments include the emergence of new virus variants that are more contagious or harmful

than prior variants, the actions taken to contain or mitigate its impact both within and outside the jurisdictions where we operate,

the impact on governmental programs and budgets, the development of treatments or vaccines, and the resumption of widespread economic

Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, we are unable to predict with any confidence

the likely impact of the COVID-19 pandemic on our future operations.

Going Concern

For the nine months

ended June 30, 2022, the Company has incurred net losses of $ 10,063,448 with working capital of $ 5,757,185 as of June 30, 2022.

in working capital over the past nine months is mainly due to the increase in the short-term portion of the Company’s liabilities,

$ 17,146,234 at June 30, 2022.

While our working capital

and current debt indicate a substantial doubt regarding the Company’s ability to continue as a going concern, the Company has historically,

from time to time, satisfied and may continue to satisfy certain short-term liabilities through the issuance of common stock, thus reducing

our cash requirement to meet our operating needs.

Based on this, the Company believes that our cash on hand and cash generated by operations

is sufficient to meet the capital demands of our current operations for at least the next twelve months.

Any major increases in sales,

particularly in new products, may require substantial capital investment.

Failure to obtain sufficient capital could materially adversely

impact our growth potential.

Overall, there is no guarantee that cash flow from our existing or

future operations and any external capital that we may be able to raise will be sufficient to meet our expansion goals and working capital

The consolidated financial statements do not include any adjustments relating to this uncertainty.

2 – INTERIM STATEMENT PRESENTATION

52 unchanged sentences

that could occur from common shares issuable through contingent share arrangements, stock options and warrants.

For the three and six

months ended March 31, 2022, and 2021, the following items were excluded from the computation of diluted net loss per common share as

For the three and mine

months ended June 30, 2022, and 2021, the following items were excluded from the computation of diluted net loss per common share as

their effect is anti-dilutive:

1 unchanged sentence

For the three months ended

For the six months ended

For the nine months ended

Warrants to purchase shares

13 unchanged sentences

SCHEDULE OF SEGMENT INFORMATION

For the three

the three months ended

the nine months ended

Revenues from external customers

12 unchanged sentences

Industrial Services

( 1,122,874 )

Total operating loss

6 unchanged sentences

$ ( 135,094 )

$ ( 1,387,920 )

Industrial Services

Total other expense

$ ( 111,620 )

( 1,487,133 )

Total other expense

$ ( 316,680 )

Depreciation and Amortization

31 unchanged sentences

to continue as a going concern.

Company’s fair value assets at March 31, 2022 and September 30, 2021, are as follows.

Company’s fair value assets at June 30, 2022 and September 30, 2021, are as follows.

SCHEDULE OF FAIR VALUE OF ASSETS

3 unchanged sentences

(included in short-term investments)

Fair value assets

Quoted Prices

9 unchanged sentences

with the plan.

These funds, as required by the plan are restricted in nature and amounted to $ 1,502,490 at March 31, 2022 and $ 1,601,932

These funds, as required by the plan are restricted in nature and amounted to $ 1,518,720 at June 30, 2022 and $ 1,601,932

at September 30, 2021.

Additionally, the Company has a standby letter of credit for deposit on a building lease and payable against a

Additionally, the Company had a standby letter of credit for deposit on a building lease and payable against a

money market account.

The amount of the standby letter of credit is $ 157,415 as of March 31, 2022 and September 30, 2021.

7 – ACCOUNTS RECEIVABLE, NET

The amount of the standby letter of credit is $ 0 and $ 517,415 as of June 30, 2022 and September 30, 2021, respectively.

7 – TRADE RECEIVABLES, NET

receivables, net consist of the following:

1 unchanged sentence

September 30,

Accounts receivable

Trade receivables

Allowance for doubtful accounts

12 unchanged sentences

( 1,921,001 )

Inventory –net of allowance for inventory obsolescence

12 unchanged sentences

Property and equipment, net

expense for the three months ended March 31, 2022, and 2021 were $ 599,850 ,

respectively, and for the six months ended March 31, 2022, and 2021 were $ 862,683 ,

respectively.

expense for the three months ended June 30, 2022, and 2021 were $ 483,700 , and $ 292,182 , respectively, and for the nine months ended June

30, 2022, and 2021 were $ 1,346,383 , and $ 972,186 , respectively.

842, “Leases”, requires that a lessee recognize the assets and liabilities that arise from operating leases.

15 unchanged sentences

and elected certain practical expedients allowing the Company not to reassess:

expired or existing contracts contain leases under the new definition of a lease;

classification for expired or existing leases;

previously capitalized initial direct costs would qualify for capitalization under Topic 842.

whether expired or existing contracts contain leases under the new definition

lease classification for expired or existing leases;

whether previously capitalized initial direct costs would qualify for capitalization

under Topic 842.

Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or

Company entered into a financing lease for a single vehicle in the Industrial services segment with a term of 3 years.

The Company entered

into operating leases for its facilities in New York, United Kingdom, and India, as well as for vehicles for use in our Industrial Services

Company entered into operating leases for its facilities in New York, United Kingdom, and India, as well as for vehicles for use in our

Industrial Services segment.

The operating lease terms range from 1 to 7 years.

The Company excluded the renewal option on its applicable facility leases

from the calculation of its right-of-use assets and lease liabilities.

The Company excluded the renewal option on its applicable

facility leases from the calculation of its right-of-use assets and lease liabilities.

and operating lease liabilities consist of the following:

8 unchanged sentences

reconciliation of undiscounted cash flows to finance and operating lease liabilities recognized in the condensed consolidated balance

sheet at March 31, 2022, is set forth below:

sheet at June 30, 2022, is set forth below:

SCHEDULE OF RECONCILIATION OF UNDISCOUNTED CASH FLOWS TO FINANCE AND OPERATING LEASE LIABILITIES

8 unchanged sentences

SCHEDULE OF LEASE COSTS

Six months ended

March 31, 2022

March 31, 2021

Nine months ended

June 30, 2022

June 30, 2021

Finance lease costs:

2 unchanged sentences

Operating lease costs:

Amortization of right-of-use assets

Interest on lease liabilities

Total lease cost

Operating lease expense

Other information:

8 unchanged sentences

11 – PREPAID AND OTHER CURRENT ASSETS

March 31, 2022, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $ 630,165 ,

costs and estimated earnings in excess of billings on uncompleted contracts of $ 1,102,347 , and other current assets of $ 1,635,131 .

On September 30, 2021, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $ 298,707 ,

costs and estimated earnings in excess of billings on uncompleted contracts of $ 1,148,243 , and other current assets of $ 1,138,702 .

June 30, 2022, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $ 439,143 , costs and

estimated earnings in excess of billings on uncompleted contracts of $ 504,618 , and other current assets of $ 1,463,355 .

On September 30,

2021, the Company had prepaid and other current assets consisting of prepayments on inventory purchases of $ 298,707 , costs and estimated

earnings in excess of billings on uncompleted contracts of $ 1,148,243 , and other current assets of $ 1,138,702 .

12 – OTHER ASSETS

of March 31, 2022, the Company had other assets of $ 1,280,386

which was comprised of rent security of $ 90,791 ,

a strategic investment in MasterpieceVR of $ 1,000,000 ,

and other assets of $ 189,585 .

As of September 30, 2021, the Company had other assets of $ 697,240

which was comprised of rent security deposits of $ 84,362 ,

Investment in Masterpiece VR valued at $ 500,000 ,

and other assets of $ 112,878 .

of June 30, 2022, the Company had other assets of $ 1,356,766 which was comprised of rent security of $ 90,791 , a strategic investment

in MasterpieceVR of $ 1,000,000 , and other assets of $ 265,975 .

As of September 30, 2021, the Company had other assets of $ 697,240 which

was comprised of rent security deposits of $ 84,362 , Investment in Masterpiece VR valued at $ 500,000 , and other assets of $ 112,878 .

13 – RELATED PARTY TRANSACTIONS

August 31, 2019, the Company entered into an Asset Purchase Agreement for the sale of Griffin Filters, LLC to Ducon Technologies, Inc.,

which Aron Govil, the Company’s Founder and former CFO, is President, for total consideration of $ 550,000 .

As of March 31, 2022,

which Aron Govil, the Company’s Founder and former CFO, its President, for total consideration of $ 550,000 .

As of June 30, 2022,

and September 30, 2021, there was $ 1,472,514 and $ 1,487,155 in receivables due from Ducon Technologies, Inc., respectively.

31, 2022, $500,000 of the balance due is for the sale of Griffin, which was due in February 2021, and the remaining balance are various

receivables with various due dates within the next fiscal year.

The Company is currently negotiating a payment agreement surrounding

all these amounts due .

2022, $500,000 of the balance due is for the sale of Griffin, which was due in February 2021, and the remaining balance are various receivables

with various due dates within the next fiscal year.

The Company has negotiated a payment agreement surrounding the sale of Griffin Filters,

LLC and other liabilities due to Cemtrex, Inc.

totaling 761,585.

This agreement is in the form of a secured promissory note earning interest

at a rate of 5 % per annum and matures on July 31, 2024.

The remaining $ 710,929 represents the amount due from Ducon to Cemtrex Technologies

the Company’s subsidiary based in India and is still in negotiation.

February 23, 2021, Cemtrex’s Board of Directors determined that certain transactions between Cemtrex Inc.

49 unchanged sentences

Company currently has a line of credit with Fulton Bank for $ 3,500,000 .

The line carries an interest of LIBOR plus 2.00 % per annum ( 2.783 %

as of March 31, 2022 and 2.075 % as of September 30, 2021).

At March 31, 2022 and September 30, 2021, there was no outstanding balance

on this line of credit.

The terms of this line of credit are subject to the bank’s review annually on February 1.

The line carried interest of LIBOR plus 2.00 % per annum ( 2.075 %

as of September 30, 2021).

On June 10, 2022, The Company and Fulton Bank agreed to an amendment of the line of credit to carry interest

at the Secured Overnight Financing Rate (“SOFR”) plus 2.37 % per annum ( 3.87 % as of June 30, 2022).

At June 30, 2022 and September

30, 2021, there was no outstanding balance on this line of credit.

The terms of this line of credit are subject to the bank’s review

annually on February 1.

payable to bank

2 unchanged sentences

$ 5,000,000 of the proceeds went to direct purchase of AIS.

This loan carries interest of LIBOR plus 2.25 % per

annum ( 3.033 % as of March 31, 2022 and 2.325 % as of September 30, 2021) and is payable on December 15, 2022 .

This loan carried interest of LIBOR plus 2.25 % per

annum ( 2.325 % as of September 30, 2021).

On June 10, 2022, The Company and Fulton Bank agreed to an amendment of the loan to carry interest

at SOFR plus 2.37 % per annum ( 3.87 % as of June 30, 2022).

This loan is payable on December 15, 2022.

This loan carries loan covenants

which the Company was in compliance with as of March 31, 2022.

The outstanding balance on this loan was $ 735,494 and $ 1,218,680 , on March

which the Company was in compliance with as of June 30, 2022.

The outstanding balance on this loan was $ 492,031 and $ 1,218,680 , on June

30, 2022, and September 30, 2021, respectively.

2 unchanged sentences

Services, Inc.

This loan carries interest of LIBOR plus 2.00 % per annum ( 2.783 % as of March 31, 2022 and 2.075 % as of September 30, 2021)

and is payable on May 1, 2023 .

This loan carries loan covenants which the Company was in compliance with as of March 31, 2022.

This loan carried interest of LIBOR plus 2.00 % per annum ( 2.075 % as of September 30, 2021).

On June 10, 2022, The Company

and Fulton Bank agreed to an amendment of the loan to carry interest at SOFR plus 2.37 % per annum ( 3.87 % as of June 30, 2022).

is payable on May 1, 2023.

This loan carries loan covenants which the Company was in compliance with as of June 30, 2022.

The outstanding

balance on this loan was $ 106,799 and $ 149,914 , on March 31, 2022, and September 30, 2021, respectively.

This loan is secured by the

assets of the Company

balance on this loan was $ 84,581 and $ 149,914 , on June 30, 2022, and September 30, 2021, respectively.

This loan is secured by the assets

of the Company

January 28, 2020, the Company acquired a loan from Fulton Bank in the amount of $ 360,000 in order to fund new equipment for Advanced

Industrial Services, Inc.

This loan carries interest of LIBOR plus 2.25 % per annum ( 3.033 % as of March 31, 2022 and 2.325 % as of September

30, 2021) and is payable on May 1, 2023 .

This loan carries loan covenants which the Company was in compliance with as of March 31, 2022.

The outstanding balance on this loan was $ 220,630 and $ 258,060 , on March 31, 2022, and September 30, 2021, respectively.

secured by the assets of the Company

This loan carried interest of LIBOR plus 2.25 % per annum ( 2.325 % as of September 30, 2021).

On June 10, 2022,

The Company and Fulton Bank agreed to an amendment of the loan to carry interest at SOFR plus 2.37 % per annum ( 3.87 % as of June 30, 2022).

This loan is payable on May 1, 2023.

This loan carries loan covenants which the Company was in compliance with as of June 30, 2022.

outstanding balance on this loan was $ 201,975 and $ 258,060 , on June 30, 2022, and September 30, 2021, respectively.

This loan is secured

by the assets of the Company

September 30, 2020, the Company, issued a note payable to an independent private lender in the amount of $ 4,605,000 .

This note carried interest of 8 %

and matured on March

After deduction of an original issue

discount of $ 600,000

and legal fees of $ 5,000 ,

the Company received $ 4,000,000

As of March 31, 2022, and September

30, 2021, this note had a balance of $ 0

and $ 2,256,448 ,

respectively.

As of March 31, 2022, and September 31, 2021, this note had unamortized original issue discount balance of $ 0

and $ 200,000 ,

This note carried

interest of 8 % and matured on March 30, 2022 .

After deduction of an original issue discount of $ 600,000 and legal fees of $ 5,000 , the

Company received $ 4,000,000 in cash.

As of June 30, 2022, and September 30, 2021, this note had a balance of $ 0 and $ 2,256,448 , respectively.

As of June 30, 2022, and September 31, 2021, this note had unamortized original issue discount balance of $ 0 and $ 200,000 , respectively

September 30, 2021, the Company, issued a note payable to an independent private lender in the amount of $ 5,755,000 .

This note carries interest of 8 %

and matures on March

After deduction of an original issue

discount of $ 750,000

and legal fees of $ 5,000 ,

the Company received $ 5,000,000

As of March 31, 2022, and September

30, 2021, this note had a balance of $ 5,992,502

and $ 5,005,000 ,

This note carries

interest of 8 % and matures on March 30, 2023 .

After deduction of an original issue discount of $ 750,000 and legal fees of $ 5,000 , the

Company received $ 5,000,000 in cash.

As of June 30, 2022, and September 30, 2021, this note had a balance of $ 5,306,176 and $ 5,005,000 ,

respectively.

As of March 31, 2022, and September 31, 2021, this note had unamortized original issue discount balance of $ 500,000

and $ 750,000 ,

As of June 30, 2022, and September 31, 2021, this note had unamortized original issue discount balance of $ 375,000 and

$ 750,000 , respectively.

February 22, 2022, the Company, issued a note payable to an independent private lender in the amount of $ 9,205,000 .

This note carries interest of 8 %

and matures on August

After deduction of an original issue

discount of $ 1,200,000

and legal fees of $ 5,000 ,

the Company received $ 8,000,000

Additionally, the Company issued 1,000,000

shares of its common stock to the lender.

fair market value of the stock of $ 700,400

was recognized as interest expense on the Company’s

Condensed Consolidated Statement of Operations and Comprehensive Income/(Loss).

As of March 31, 2022, this note had a balance of $ 9,280,989 .

As of March 31, 2022, this note had unamortized original issue discount balance of $ 1,066,667 .

This note carries

interest of 8 % and matures on August 22, 2023 .

After deduction of an original issue discount of $ 1,200,000 and legal fees of $ 5,000 ,

the Company received $ 8,000,000 in cash.

Additionally, the Company issued 1,000,000 shares of its common stock to the lender.

market value of the stock of $ 700,400 was recognized as interest expense on the Company’s Condensed Consolidated Statement of Operations

and Comprehensive Income/(Loss).

As of June 30, 2022, this note had a balance of $ 9,470,561 .

As of June 30, 2022, this note had unamortized

original issue discount balance of $ 866,667 .

March 30, 2022, Vicon, a subsidiary of the Company, amended the $ 5,600,000 Term Loan Agreement with NIL Funding Corporation (“NIL”).

4 unchanged sentences

This note carries loan covenants which the

Company is in compliance with as of March 31, 2022.

As of March 31, 2022, and September 30, 2021, this note had a balance of $ 2,954,743

Company is in compliance with as of June 30, 2022.

As of June 30, 2022, and September 30, 2021, this note had a balance of $ 2,897,743

and $ 3,604,743 , respectively.

2 unchanged sentences

The Company paid $ 905,433 in cash and acquired a mortgage from Fulton Bank in the amount of $ 2,476,000 .

This mortgage carries interest of LIBOR plus 2.50 % per annum ( 3.283 % as of March 31, 2022 and 2.575 % as of September 30, 2021) and is

payable on January 28, 2040 .

This loan carries loan covenants similar to covenants on the Company’s other loans from Fulton Bank.

As of March 31, 2022, the Company was in compliance with these covenants.

As of March 31, 2022, and September 30, 2021, this mortgage

This mortgage carried interest of LIBOR plus 2.50 % per annum ( 2.575 % as of September 30, 2021).

On June 10, 2022, The Company and Fulton

Bank agreed to an amendment of the mortgage to carry interest at SOFR plus 2.62 % per annum ( 4.12 % as of June 30, 2022 ).

This mortgage

is payable on January 28, 2040 .

This loan carries loan covenants similar to covenants on the Company’s other loans from Fulton

As of June 30, 2022, the Company was in compliance with these covenants.

As of June 30, 2022, and September 30, 2021, this mortgage

had a balance of $ 2,265,733 and $ 2,339,114 , respectively.

7 unchanged sentences

a maturity date of May 5, 2025 and payments starting in June of 2022 and is recorded under Paycheck Protection Program Loans on our Condensed

Consolidated Balance Sheet as of March 31, 2022, net of the short-term portion of $ 18,210 .

Consolidated Balance Sheet as of June 30, 2022, net of the short-term portion of $ 24,280 .

The issuing bank determined that this loan

2 unchanged sentences

Company is authorized to issue 10,000,000 shares of Preferred Stock, $ 0.001 par value.

As of March 31, 2022, and September 30, 2021,

there were 2,029,753 and 1,935,151 shares issued and outstanding, respectively.

As of June 30, 2022, and September 30, 2021, there

were 2,129,122 and 1,935,151 shares issued and outstanding, respectively.

1 Preferred Stock

the six months ended March 31, 2022, 94,602 shares of Series 1 Preferred Stock were issued to pay dividends to holders of Series 1 Preferred

of March 31, 2022, and September 30, 2021, there were 1,979,753 and 1,885,151 shares of Series 1 Preferred Stock issued and outstanding,

the nine months ended June 30, 2022, 193,971 shares of Series 1 Preferred Stock were issued to pay dividends to holders of Series 1 Preferred

of June 30, 2022, and September 30, 2021, there were 2,079,122 and 1,885,151 shares of Series 1 Preferred Stock issued and outstanding,

respectively.

7 unchanged sentences

to our shareholders for their action or consideration, including the election of directors.

of March 31, 2022, and September 30, 2021, there were 50,000 shares of Series C Preferred Stock issued and outstanding.

of June 30, 2022, and September 30, 2021, there were 50,000 shares of Series C Preferred Stock issued and outstanding.

Company is authorized to issue 50,000,000 shares of common stock, $ 0.001 par value.

As of March 31, 2022, there were 24,673,210 shares

As of June 30, 2022, there were 26,263,296 shares

issued and outstanding and at September 30, 2021, there were 20,782,194 shares issued and outstanding.

the six months ended March 31, 2022, 2,891,016 shares of the Company’s common stock have been issued to satisfy $ 2,112,500 of notes

the nine months ended June 30, 2022, 4,481,102 shares of the Company’s common stock have been issued to satisfy $ 2,712,500 of notes

payable, $ 353,978 in accrued interest, and $ 926,646 of excess value of shares issued recorded as interest expense.

2 unchanged sentences

16 – SHARE-BASED COMPENSATION

the six months ended March 31, 2022, and 2021, the Company recognized $ 72,417 and $ 65,317 of share-based compensation expense on its

the nine months ended June 30, 2022, and 2021, the Company recognized $ 111,402 and $ 110,904 of share-based compensation expense on its

outstanding options, respectively.

As of March 31, 2022, $ 174,318 of unrecognized share-based compensation expense is expected to be

recognized over a period of four years .

As of June 30, 2022, $ 269,142 of unrecognized share-based compensation expense is expected to be recognized

over a period of four years.

Future compensation amounts will be adjusted for any change in estimated forfeitures.

12 unchanged sentences

has evaluated subsequent events up to the date the condensed consolidated financial statements were issued.

Cemtrex concluded that the

following subsequent events have occurred and require recognition or disclosure in the condensed consolidated financial statements.

April and May of 2022, the Company issued an aggregate of 1,590,086 shares of common stock to settle $ 600,000 of notes payable, and $ 105,053

of excess value of shares issued recorded as interest expense.

April 7, 2022, 99,369 shares of Series 1 Preferred Stock were issued to pay dividends to holders of Series 1 Preferred Stock.

of the Series 1 Preferred Stock are entitled to receive dividends at the rate of 10 % annually, based on the $ 10.00 per share Preference

Amount, payable semiannually.

Cemtrex has concluded that

there were no subsequent events that occurred and require recognition or disclosure in the condensed consolidated financial statements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements