XML 41 R25.htm IDEA: XBRL DOCUMENT

CONTRACT ASSETS AND LIABILITES

12 Months Ended

Sep. 30, 2025

NOTE 14 - CONTRACT ASSETS AND LIABILITES

Project contracts typically provide for a schedule of billings on percentage of completion of specific tasks inherent in the fulfillment of the Company’s performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in the statements of operations can and usually does differ from amounts that can be billed to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceeds cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in the balance sheets under the caption “Contract assets.” Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized are reflected as a current liability in the balance sheets under the caption “Contract liabilities.” Conditional retainage represents the portion of the contract price withheld until the work is substantially complete for assurance of the Company’s obligations to complete the job.

The following is a summary of the Company’s uncompleted contracts.

	September 30, 2025			September 30, 2024
Costs incurred on uncompleted contracts	$	10,344,923		$	12,724,334
Estimated gross profit		4,025,531			3,006,692
		14,370,454			15,731,026
Applicable billings to date		(15,045,345	)		(16,000,023	)
Net billing in excess of costs	$	(674,891	)	$	(268,997	)

Cemtrex Inc. and Subsidiaries

For the years ended September 30, 2025, and 2024, the Company recognized revenue of $1,148,038 and $905,319, respectively, that was previously included in the beginning balance of contract liabilities.


	For year ended
	September 30, 2025			September 30, 2024
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts
Contract asset, beginning balance	$	985,207		$	1,739,201
Changes in revenue billed, contract price or cost estimates		(5,043	)		(753,994	)
Contract asset, net, ending balance	$	980,164		$	985,207
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
Contract liability, beginning balance		(1,254,204	)	$	(980,319	)
Changes in revenue billed, contract price or cost estimates		(400,851	)		(273,885	)
Contract liability, ending balance	$	(1,655,055	)	$	(1,254,204	)
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
Net billings in excess of costs, beginning balance	$	(268,997	)	$	758,882
Changes in revenue billed, contract price or cost estimates	$	(405,894	)		(1,027,879	)
Net billings in excess of costs, ending balance	$	(674,891	)	$	(268,997	)