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FAIR VALUE MEASUREMENTS | 12 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | NOTE 4 – FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy is applied to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the guidance for fair value measurements are described below: Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Our Level 1 assets include cash equivalents, banker’s acceptances, trading securities investments, and investment funds. The Company measures trading securities investments and investment funds at quoted market prices as they are traded in an active market with sufficient volume and frequency of transactions. Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified contractual term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. Level 3 assets and liabilities include cost method investments, goodwill, intangible assets, and property, plant, and equipment, which are measured at fair value using a discounted cash flow approach when they are impaired. Quantitative information for Level 3 assets and liabilities reviewed at each reporting period includes indicators of significant deterioration in the earnings performance, credit rating, asset quality, business prospects of the investee, and financial indicators of the investee’s ability to continue as a going concern. The Company’s fair value assets and liabilities for the years ended September 30, 2025, and 2024, are as follows. SCHEDULE OF FAIR VALUE OF LIABILITIES
|  | Quoted Prices |  | Significant |  |  |  |  |  |  |
|  | in Active |  | Other |  |  | Significant |  |  | Balance |
|  | Markets for |  | Observable |  |  | Unobservable |  |  | as of |
|  | Identical Assets |  | Inputs |  |  | Inputs |  |  | September 30, |
|  | (Level 1) |  | (Level 2) |  |  | (Level 3) |  |  | 2025 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Digital assets - SOL |  | 1,158,238 |  |  | - |  |  |  | - |  |  |  | 1,158,238 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Warrant liabilities |  | 833,854 |  |  | 7,901,343 |  |  |  | - |  |  |  | 8,735,197 |
|  | Quoted Prices |  | Significant |  |  |  |  |  |  |
|  | in Active |  | Other |  |  | Significant |  |  | Balance |
|  | Markets for |  | Observable |  |  | Unobservable |  |  | as of |
|  | Identical Assets |  | Inputs |  |  | Inputs |  |  | September 30, |
|  | (Level 1) |  | (Level 2) |  |  | (Level 3) |  |  | 2024 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Warrant liabilities |  | $ | 4,160,658 |  | $ | 1,038,778 |  |  | $ | - |  |  | $ | 5,199,436 |
Digital Assets – SOL On July 29, 2025, the Company invested $998,642 in Solana (SOL) and staked our holdings. SOL is a fungible crypto asset that meets the criteria for an intangible asset, resides on a distributed ledger, is secured by cryptography, and does not grant enforceable rights to underlying goods or services to its holder. The digital assets were measured at fair value after acquisition, with changes reported in net income. Staking earnings are recorded as revenue. Digital Asset staking allows holders of specific cryptocurrencies to earn rewards for helping to validate blocks of transaction data as it is submitted to the blockchain network. The staking process serves two key purposes:
| ● | Ensures the accuracy of new information as it is added to the blockchain.
| ● | Helps to secure the underlying blockchain network against the majority of the network taking over control, known as a 51% attack.
The staking process uses incentives and penalties governed by computer-based rules to encourage honest participation in the network. Stakers who act within the rules of the protocol receive rewards for their contributions, while those who act dishonestly can face penalties, such as losing their staked cryptocurrency through a process called slashing. Staking rewards are distributed as newly minted cryptocurrency units, oftentimes at a proportionate rate to the amount a person stakes. With some proof-of-stake blockchains, depositing more assets in a staking smart contract increases the chance of being selected to validate blocks. This mechanism is based on the assumption that those with more “skin in the game” are more likely to act within the best interests of the network because they have more to lose financially if their assets are slashed (confiscated by the network). However, to avoid favoring wealthier participants, some protocols incorporate randomness to ensure everyone, including those with smaller stakes, has a chance to earn rewards. Staking incentives, in the form of additional SOL, are recognized on the date received at the fair market value on that date. There are no lockups or restrictions on the Company’s digital asset holdings due to staking. Cemtrex Inc. and Subsidiaries The Company’s digital assets for the year ended September 30, 2025, is as follows. SCHEDULE OF DIGITAL ASSETS
|  | Units |  |  | Cost per Unit |  |  | Cost Basis |  |  | Fair Value |
Balance, September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
SOL |  |  | 5,549 |  |  | $ | 181.70 |  |  | $ | 1,008,229 |  |  | $ | 1,158,238 |
The following table is a summary of our digital assets for the year ended September 30, 2025.
|  | For the year |
|  | ended |
|  | September 30, 2025 |
Fair Value, September 30, 2024 |  | $ | - |
Cash purchase |  |  | 998,462 |
Receipt of SOL from staking |  |  | 12,522 |
Non-cash transaction fees |  |  | (2,755 | )
Unrealized gain |  |  | 150,009 |
Fair Value, September 30, 2025 |  | $ | 1,158,238 |
Warrant Liabilities The fair value of the Series B Warrants is estimated on the balance sheet date using the Black-Scholes model, which requires inputs based on certain subjective assumptions, including the fair value of the Company’s common shares, expected share price volatility, the expected term of the award, the risk-free interest rate for a period that approximates the expected term of the option, and the Company’s expected dividend yield. At September 30, 2025, and 2024, the following inputs were used in the Black-Scholes model. SCHEDULE OF FAIR VALUE INPUTS USED IN BLACK-SCHOLES MODEL
|  | September 30, 2025 |  | September 30, 2024 |
Expected term |  | 3.59 Years |  | 4.59 Years |
Risk-free interest rate |  | 3.61% |  | 3.60% |
Expected volatility |  | 178.98% |  | 134.00% |
Expected dividend yield |  | 0% |  | 0% |
A summary of the warrant liabilities activity for the years ended September 30, 2025, and 2024, is as follows. SCHEDULE OF WARRANT LIABILITIES ACTIVITY
|  | Series A Warrants |  |  | Series B Warrants |  |  | Prefunded Warrants |  |  | Total |
Warrant Liabilities at September 30, 2023 |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Warrants Issued |  |  | 11,242,940 |  |  |  | 2,942,711 |  |  |  | 3,105,170 |  |  |  | 17,290,821 |
Warrants Exercised |  |  | (1,060,113 | ) |  |  | - |  |  |  | (3,190,320 | ) |  |  | (4,250,433 | )
Fair market revaluation |  |  | (6,022,169 | ) |  |  | (1,903,933 | ) |  |  | 85,150 |  |  |  | (7,840,952 | )
Warrant Liabilities at September 30, 2024 |  | $ | 4,160,658 |  |  | $ | 1,038,778 |  |  | $ | - |  |  | $ | 5,199,436 |
Warrants Issued |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Warrants Exercised |  |  | (5,669,909 | ) |  |  | (1,727,742 | ) |  |  | - |  |  |  | (7,397,651 | )
Fair market revaluation |  |  | 2,343,105 |  |  |  | 8,590,307 |  |  |  | - |  |  |  | 10,933,412 |
Warrant Liabilities at September 30, 2025 |  | $ | 833,854 |  |  | $ | 7,901,343 |  |  | $ | - |  |  | $ | 8,735,197 |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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