Cemtrex Regains Compliance with NASDAQ Stockholders’ Equity Requirement

Rhea-AI Summary

Cemtrex (NASDAQ: CETX) has successfully regained compliance with Nasdaq's minimum stockholders' equity requirement under Listing Rule 5550(b)(1). The company, which specializes in advanced security technology and industrial services, received confirmation from Nasdaq's Listing Qualifications Department that it has met the necessary criteria to maintain its listing on the Nasdaq Capital Market.

This development follows a notification received on August 23, 2024, when Cemtrex was informed of its non-compliance. According to the company's Form 10-K filed on December 30, 2024, Cemtrex reported stockholders' equity of $4,710,677, which satisfies Nasdaq's minimum requirement. With this compliance achievement, Cemtrex has resolved all listing deficiencies with Nasdaq.

Positive

• Regained compliance with Nasdaq listing requirements
• Reported stockholders' equity of $4.71 million
• Resolved all Nasdaq listing deficiencies

Negative

• None.

Insights

Financial Compliance Analyst

Cemtrex's regaining of Nasdaq compliance represents a critical regulatory milestone with tangible market implications. The reported stockholders' equity of $4,710,677 exceeds Nasdaq's minimum requirement, effectively removing a significant delisting risk that had been looming since August 2024.

This development is particularly meaningful for a micro-cap company like Cemtrex, with a market capitalization of just $4.93 million. Maintaining Nasdaq listing status is important for several reasons: it ensures continued access to institutional investors, provides better trading liquidity and maintains market credibility. The removal of the listing deficiency eliminates a major overhang on the stock and could potentially attract institutional investors who were previously restricted from investing due to compliance concerns.

The timing of this compliance achievement, coming just after their 10-K filing, demonstrates effective capital management and strategic planning by the company's leadership. For existing shareholders, this represents a reduction in regulatory risk and maintains their ability to trade shares on a major exchange, which is particularly important for a small-cap security technology company operating in competitive markets.

Market Structure Specialist

The implications of maintaining Nasdaq listing extend beyond mere compliance. For a micro-cap company in the security technology sector, exchange listing status directly impacts market making dynamics and trading infrastructure. With continued Nasdaq listing, Cemtrex maintains access to a robust network of market makers, ensuring better price discovery and reduced bid-ask spreads compared to over-the-counter markets.

The stockholders' equity threshold compliance helps preserve the company's market structure integrity. This is especially vital given Cemtrex's dual share class structure (CETX and CETXP). The avoidance of a forced transition to OTC markets prevents potential liquidity fragmentation and maintains the current market quality metrics that institutional investors rely upon for trading decisions.

Brooklyn, NY, Jan. 06, 2025 (GLOBE NEWSWIRE) -- – Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, today announced that it has received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it has regained compliance with the minimum stockholders’ equity requirement under Nasdaq Listing Rule 5550(b)(1). The Company’s security will continue to be listed and traded on The Nasdaq Stock Market.

Cemtrex previously received a notification letter from the Nasdaq Listing Qualifications Department on August 23, 2024, notifying the Company that, because the stockholders’ equity for the Company was below the minimum required for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1).

Based on the Company’s Form 10-K filed on December 30, 2024, evidencing stockholders’ equity of $4,710,677, Nasdaq has determined that the Company complies with the Minimum Stockholder’s Equity Requirement and this matter is now closed. The Company now no longer has any deficiencies as it pertains to its listing on Nasdaq.

About Cemtrex

Cemtrex Inc. (CETX) is a company that owns two operating subsidiaries: Vicon Industries Inc and Advanced Industrial Services Inc.

Vicon Industries, a subsidiary of Cemtrex Inc., is a global leader in advanced security and surveillance technology to safeguard businesses, schools, municipalities, hospitals and cities. Since 1967, Vicon delivers mission-critical security surveillance systems, specializing in engineering complete security solutions that simplify deployment, operation and ongoing maintenance. Vicon provides security solutions for some of the largest municipalities and businesses in the U.S. and around the world, offering a wide range of cutting-edge and compliant security technologies, from AI-driven video analytics to fully integrated access control solutions. For more information visit www.vicon-security.com.

AIS – Advanced Industrial Services, a subsidiary of Cemtrex, Inc., is a premier provider of industrial contracting services including millwrighting, rigging, piping, electrical, welding. AIS Installs high precision equipment in a wide variety of industrial markets including automotive, printing & graphics, industrial automation, packaging, and chemicals. AIS owns and operates a modern fleet of custom designed specialty equipment to assure safe and quick installation of your production equipment. Our talented staff participates in recurring instructional training, provided to ensure that the most current industry methods are being utilized to provide an efficient and safe working environment. For more information visit www.ais-york.com.

For more information visit www.cemtrex.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the closing of the offering, gross proceeds from the offering, our new product offerings, expected use of proceeds, or any proposed fundraising activities. These forward-looking statements are based on management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. These risks and uncertainties are discussed under the heading “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law.

Investor Relations
Chris Tyson
Executive Vice President – MZ North America
Direct: 949-491-8235
CETX@mzgroup.us
www.mzgroup.us

FAQ

What was Cemtrex's (CETX) stockholders' equity as reported in December 2024?

According to Cemtrex's Form 10-K filed on December 30, 2024, the company reported stockholders' equity of $4,710,677.

When did CETX receive the initial Nasdaq non-compliance notice?

Cemtrex received the initial non-compliance notification from Nasdaq on August 23, 2024.

What Nasdaq listing requirement did CETX regain compliance with?

Cemtrex regained compliance with Nasdaq Listing Rule 5550(b)(1), which sets the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market.

Does CETX currently have any outstanding Nasdaq listing deficiencies?

No, according to the announcement, Cemtrex no longer has any deficiencies pertaining to its listing on Nasdaq.