XML 48 R32.htm IDEA: XBRL DOCUMENT
v3.25.4

INCOME TAXES | 12 Months Ended
--- | ---
Sep. 30, 2025
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 21 – INCOME TAXES As result of changes made by the Tax Cuts and Jobs Act of 2017, that became effective as of January 1, 2022, the company is now required to capitalize for tax purposes certain research and development expenses and amortize domestic expenses over a 5 year period and foreign expenses over a 15 year period, resulting in a deferred tax asset for the capitalized amounts. Cemtrex Inc. and Subsidiaries In accordance with ASC 740, Income Taxes, specifically related to uncertain tax positions, a Company is required to use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company believes its income tax filing positions and deductions will be sustained upon examination, and accordingly, no reserves or related accruals for interest and penalties have been recorded as of September 30, 2025. The Company is subject to taxation in the United States federal and state jurisdictions. The Company’s federal income tax and state income tax returns are subject to examination by tax authorities. The Company is not currently under examination by any tax authority. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modification to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and other provisions implemented through 2027. The Company does not anticipate the bill will have a material impact on the financial statements. At September 30, 2025, the Company had approximately $68,941,426 of federal, $84,017,242 of state, and $9,798,273 of foreign net operating loss carryforwards. The net operating loss carryforwards, if not utilized, will begin to expire in 2030 for federal purposes and in 2026 for state purposes. The company is currently reviewing net operating losses for Section 382 limitation purposes and will make any required adjustments to the net operating losses at the completion of the study. The following is a geographical breakdown of loss before the provision for income taxes. SCHEDULE OF (LOSS) INCOME BEFORE PROVISION FOR TAX
|  | Year ended September 30, |
|  | 2025 |  |  | 2024 |
Domestic |  | $ | (28,352,803 | ) |  | $ | (7,090,508 | )
Foreign |  |  | 1,038,715 |  |  |  | (385,841 | )
Loss before provision for income taxes |  | $ | (27,314,088 | ) |  | $ | (7,476,349 | )
The provision for income taxes consisted of the following. SCHEDULE OF PROVISION FOR INCOME TAXES
|  | September 30, 2025 |  |  | September 30, 2024 |
Current (benefit)/provision |  |  |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |
State |  |  | 609,496 |  |  |  | 165,093 |
Foreign |  |  | 125,384 |  |  |  | 37,187 |
Total current (benefit)/provision |  |  | 734,880 |  |  |  | 202,280 |
Deferred provision |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
State |  |  | - |  |  |  | - |
Foreign |  |  | - |  |  |  | - |
Total deferred provision |  | $ | - |  |  | $ | - |
Total (benefit)/provision for income taxes |  | $ | 734,880 |  |  | $ | 202,280 |
Cemtrex Inc. and Subsidiaries The following is a reconciliation of the effective income tax rate to the federal and state statutory rates. SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION
|  | For the Fiscal Year |  |  | For the Fiscal Year |
|  | Ended |  |  | Ended |
|  | September 30, 2025 |  |  | September 30, 2024 |
U.S. statutory rate |  |  | 21.00 | % |  |  | 21.00 | %
State taxes, net of federal |  |  | 5.03 | % |  |  | -1.74 | %
Foreign tax rate differential |  |  | -0.28 | % |  |  | -0.23 | %
Change in valuation allowance |  |  | -0.34 | % |  |  | -13.23 | %
Return to provision |  |  | 0.20 | % |  |  | -1.44 | %
State Rate Change |  |  | 0.21 | % |  |  | -0.50 | %
Other True Up Adjustments |  |  | -1.25 | % |  |  | 0.00 | %
Goodwill impairment |  |  | -0.00 | % |  |  | 0.00 | %
Write-Off of Related Party Note with Majority Owner |  |  | 0.00 | % |  |  | -1.49 | %
Issuance Costs - Equity Financing |  |  | 0.00 | % |  |  | -2.35 | %
Interest Expense |  |  | -0.98 | % |  |  | -2.80 | %
Change in Fair Value of Warrants |  |  | 10.59 | % |  |  | 1.64 | %
Loss on Excess Fair Value of Warrants |  |  | -14.62 | % |  |  | 0.00 | %
Other permanent differences |  |  | -1.06 | % |  |  | -1.56 | %
Effective Tax Rate |  |  | -2.69 | % |  |  | -2.70 | %
The components of our deferred tax assets and liabilities are summarized as follows. SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
|  | September 30, 2025 |  |  | September 30, 2024 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Net operating Loss carryforwards |  | $ | 22,289,821 |  |  | $ | 21,908,977 |
Inventory and other reserves |  |  | 365,475 |  |  |  | 1,363,737 |
Allowance for bad debt |  |  | 32,212 |  |  |  | 32,919 |
CECL Allowance |  |  | 43,877 |  |  |  | - |
Interest Expense Limitation |  |  | 4,473,727 |  |  |  | 4,751,442 |
Accruals |  |  | 507,663 |  |  |  | 439,996 |
Deferred Revenue |  |  | 127,838 |  |  |  | - |
Capitalized R&D |  |  | 1,086,108 |  |  |  | 852,417 |
Warranty reserve |  |  | 58,946 |  |  |  | 27,287 |
Lease Liability |  |  | 120,739 |  |  |  |  |
Other |  |  | 29,087 |  |  |  | 15,270 |
Total gross deferred taxes |  |  | 29,135,493 |  |  |  | 29,392,044 |
Valuation allowance |  |  | (28,220,042 | ) |  |  | (28,127,540 | )
Net deferred tax assets |  |  | 915,451 |  |  |  | 1,264,504 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Deferred revenue |  |  | - |  |  |  | (296,090 | )
Prepaid expenses |  |  | (39,705 | ) |  |  | - |
Goodwill amortization |  |  | (138,395 | ) |  |  | (132,685 | )
Depreciation |  |  | (17,751 | ) |  |  | (10,020 | )
Right of use assets |  |  | (114,738 | ) |  |  | - |
Other |  |  | (604,862 | ) |  |  | (825,710 | )
Total deferred tax liabilities |  |  | (915,451 | ) |  |  | (1,264,505 | )
Total deferred tax assets (liabilities) |  | $ | - |  |  | $ | - |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Cemtrex Inc. and Subsidiaries The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. Based upon the Company’s history of operating losses, the Company has concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized. Accordingly, the Company has provided a full valuation allowance for its deferred tax assets as of September 30, 2025, and 2024. Future utilization of the Company’s net operating loss and research and development credit carryforwards to offset future taxable income may be subject to an annual limitation, pursuant to IRC Sections 382 and 383, as a result of ownership changes that may have occurred or that could occur in the future. An ownership change occurs when a cumulative change in ownership of more than 50% occurs within a three-year period. The Company has not completed an IRC Section 382/383 analysis regarding the limitation of net operating loss and research and development credit carryforwards. When this analysis is finalized, the Company plans to update its unrecognized tax benefits accordingly.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration