Cemtrex Inc (CETX)

[236T568]

Cemtrex Inc. (CETX) issues FALSE AND MISLEADING Financials and Press Release for the quarter ending March 31, 2017 and filed with the SEC:




1. Under Generally Accepted Accounting Principles SFAS No. 128, a company is REQUIRED to subtract preferred stock dividends declared in the period from Net Income to arrive at Net Income Available to Common Stockholders and in determining Earnings Per Share for that period.

http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1218220124421&acceptedDisclaimer=true


2. Cemtrex Inc. (CETX) issued and filed with the SEC its 10Q for the period ending March 31, 2017 on Thursday, May 11, 2017:

https://www.sec.gov/Archives/edgar/data/1435064/000149315217005013/form10-q.htm


3. CETX stated in the March 31, 2017 10Q that:

"Series 1 Preferred Stock

Dividends

Holders of the Series 1 Preferred will be entitled to receive cumulative cash dividends at the rate of 10% of the purchase price per year, payable semiannually on the last day of March and September in each year.

As of March 31, 2017, there were 1,735,858 shares of Series 1 Preferred Stock issued and outstanding.

As of March 31, 2017 $332,938 worth of dividends have been paid to holders of Series 1 Preferred Stock."


4. Therefore CETX was REQUIRED to subtract the $332,938 from the Comprehensive Income of $385,396 in determining Earnings Per Share (EPS) for the quarter ending March 31, 2017.


5. A review of the CETX March 31, 2017 10Q shows that CETX FAILED to adjust the Income for the Preferred Stock Dividends declared and paid during the quarter, resulting in an overstatement of the EPS for the quarter for CETX. In fact, the subtraction of the preferred stock dividends would have almost entirely wiped out most of the EPS for the quarter.


6. As shown in paragraphs 1 to 5 above, in an attempted to mislead current stockholders of CETX and potential investors of CETX, CETX issued FALSE AND MISLEADING FINANCIALS for the quarter ending March 31, 2017 by violating Generally Accepted Accounting Principles in the treatment of preferred stock dividends in arriving at the calculation of EPS for the quarter.


7. Additionally, CETX issued a FALSE AND MISLEADING press release on May 11, 2017 detailing the false EPS of the company for the quarter ending March 31, 2017:

https://globenewswire.com/news-release/2017/05/11/982478/0/en/Cemtrex-Reports-Fiscal-Year-2017-Second-Quarter-Results.html