CEMTREX, INC.

Climate Impact & Sustainability Data (2012, 2018)

Lower amount of bookings and projects executed during 2012.
Overall decrease in market demand during 2012.
Lower gross margin projects executed in fiscal year 2012.
Constant changes in governmental standards by which our products are evaluated.
Dependence on enforcement of existing emissions-related environmental regulations and further tightening of emission standards worldwide.
Potential for substantial costs enforcing proprietary information and defending against third-party patents.
Potential for product defects causing significant product liability, warranty, repair and support costs and damage to reputation.
Highly competitive markets with competitors having significantly greater resources.
Fluctuations in results due to regulatory, marketing and competitive factors.
Difficulty retaining and attracting qualified personnel.
General economic downturns.

Rigorous product testing.
Seeking indemnification from subcontractors for failures.
Marketing products as integrated custom engineered emission monitoring systems and environmental management solutions.
Maintaining adequate insurance coverage.
Upgrading products to keep up with changing market requirements.
Increased internal controls around the issuance and recording of common stock sales.

The compilation, dissemination, review and finalization of the information required to be presented in the Form 10-K report could not be completed within the prescribed time period without unreasonable effort or expense. This was due to a change in independent registered public accounting firms at the end of the fiscal year, resulting in a late start to audit planning and the audit itself.

Engaged Haynie & Company as the new independent registered public accounting firm.