Clean Energy Technologies (CETY) Announces 2021 Year-End Financial Results

Rhea-AI Summary

Clean Energy Technologies (CETY) announced its 2021 Year-End financial results, achieving a net profit of $278,429 compared to a net loss of $3,435,764 in 2020. The company raised approximately $4.78 million in a Regulation A equity offering in 2021 and an additional $1.2 million in 2022. Key developments include the establishment of new business units focused on waste-to-energy and consulting, alongside securing a $1.5 million sales order for waste heat generators. CETY has also laid groundwork for expansion into the Chinese LNG market.

Positive

• Achieved a net profit of $278,429 in 2021 compared to a net loss of $3,435,764 in 2020.
• Raised approximately $4.78 million in a Regulation A equity offering in 2021.
• Secured $1.5 million in sales orders for Clean Cycle Waste Heat Generators.

Negative

• Gross profit decreased to $610,407 from $751,068 in 2020 due to rising material and logistics costs.

COSTA MESA, Calif., April 18, 2022 (GLOBE NEWSWIRE) -- Clean Energy Technologies (OTCQB: CETY), ("CETY" or the "Company"), a clean energy company offering products and solutions in the renewable and energy efficiency markets announces 2021 Year-End financial results and operational highlights.

Who We Are

We develop renewable energy products and solutions and establish partnerships in renewable energy that make environmental and economic sense. Our mission is to be a segment leader in the Zero Emission Revolution by offering recyclable energy solutions, clean energy fuels and alternative electric power for small and mid-sized projects in North America, Europe, and Asia. We target sustainable energy solutions that are profitable for us, profitable for our customers and represent the future of global energy production.

Major Development in Financials and Expansion of Business

Financial and corporate highlights for the year ended December 31, 2021 and subsequently include the following:

• Ended the year with a net profit of of $278,429 in 2021 compared to a net loss of $3,435,764 in 2020.
  
  
• In 2021, we raised approximately $4.78 million in Regulation A equity offering. Subsequently, we raised an additional $1.2 million in 2022 through the same offering at $0.08.
  
  
• Created a new business unit – Waste to Energy Solutions. We convert waste products created in manufacturing, agriculture, wastewater treatment plants and other industries to electricity, renewable natural gas (“RNG”), hydrogen and BioChar which are sold or used by our customers.
  
  
• Created a new business unit – Engineering, Consulting and Project Management Solutions. We bring a wealth of experience in developing clean energy projects for municipal and industrial customers and Engineering, Procurement and Construction (EPC) companies so they can identify, design and incorporate clean energy solutions in their projects.
  
  
• Finalized agreement on $15M renewable energy processing facility to convert 10,000 tons per year of clean woody feedstock into an estimated 20,000 MWh electricity/year. In addition, the facility will produce 1,400 metric tons of BioChar and 26,000 MMBTU of heat per year. In addition, working on follow up projects in Massachusetts and California.
  
  
• Secured $1.5M of sales order for the installation of Clean Cycle Waste Heat Generators in the US and Europe and built a strong pipeline of opportunities for the Clean Cycle unit as a result of the recently introduced incentives both at the federal and state levels for heat to power generation.
  
  
• Acquisition of Leading Wave Limited (LWL), a liquified natural gas (LNG) trading company in China.
  
  
• Obtained a 15% equity stake in Heze Hongyuan Natural Gas (HHNG), a local pipeline operator in the Shandong Province.
  
  
• CETY Hong Kong established a frame work agreement for a future joint venture with the overseas investment arm of a large gas enterprise in China called Shenzhen Gas (Hong Kong) International Co. Ltd. (“Shenzhen Gas”). The joint venture plans to acquire municipal natural gas operators in China with funds provided by Shenzhen Gas.
  
  
• Improved our balance sheet and capital position to permit CETY to retain more resources and invest in more products and projects.
  

Kam Mahdi, CEO of Clean Energy Technologies stated, “Our revenue from waste heat recovcery solutions in 2021 was $1,014,707 compared to $930,882 in 2020 as we have been diminishing the legacy manufacturing business and shifting 100% of our focus to the clean energy technologies and solutions. Gross profit margin was decreased to $610,407 from $751,068 in 2020 due to an increase in material costs and logistics as a result of the pandemic and increase in the cost of our engineering consultants. For the year ended December 31, 2021, we had a net profit of $278,429 compared to a net loss of $3,435,764 for the same period in 2020. The increase in the net profit in 2021 was mainly due to the change in derivative liability associated with the payoff of convertible debt and lower interest expense from 2021 to 2020.

2021 was an eventful year for the company, We have made significant progress in improving our balance sheet and capital position to permit us to invest in more products and projects. In 2021, we raised approximately $4.78 million in a Regulation A equity offering.

We continue to take advantage of federal investment tax credits and state incentives that now include waste heat recovery as a recognized clean energy source making our Clean Cycle Generator and ORC systems more profitable to install. The acquisition of the LNG trading company and future acquisitions of municipal natural gas operators is going to create opportunities for us to sell our Waste Heat Recovery and Waste to Energy products in China and to provide engineering, consulting and project management services.

We also established new partnership to support selling more equipment and leveraging our existing marketing channels to sell our HTAP Waste to Energy products and solutions to industrial clients and government agencies”.

About Clean Energy Technologies

Headquartered in Costa Mesa, California, Clean Energy Technologies (CETY) is a leader in the zero emission revolution by offering recyclable energy solutions, clean energy fuels and alternative electric power for small and mid-sized projects in North America, Europe, and Asia. We deliver power from heat and biomass with zero emission and low cost. The Company's principal products are Waste Heat Recovery Solutions using our patented Clean Cycle^TM generator to create electricity. Waste to Energy Solutions converting waste products created in manufacturing, agriculture, wastewater treatment plants and other industries to electricity and BioChar. Engineering, Consulting and Project Management Solutions providing expertise and experience in developing clean energy projects for municipal and industrial customers and Engineering, Procurement and Construction (EPC) companies.

CETY's common stock is currently traded on the OTC Market under the symbol CETY. For more information, visit www.cetyinc.com or www.heatrecoverysolutions.com.

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FINANCIAL TABLES:

 Clean Energy Technologies, Inc.
Consolidated Balance Sheet

		December 31, 2021				December 31, 2020
Assets
Current Assets:
Cash		$	1,192,316			$	414,885
Accounts receivable - net			693,032				265,738
Lease receivable asset			217,584				217,584
Prepaid			40,380
Inventory			462,192				557,820
Total Current Assets			2,605,504				1,456,027
Property and Equipment - Net			33,016				53,432
Goodwill			747,976				747,976
LWL Intangibles			1,468,709				-
Long-term financing receivables - net			684,770				752,500
License			354,322				354,322
Patents			115,569				127,445
Right of use asset - long term			395,607				606,569
Other Assets			26,801				25,400
Total Non Current assets			3,793,754				2,667,644
Total Assets		$	6,432,274			$	4,123,671
Liabilities and Stockholders’ (Deficit)
Current Liabilities:
Accounts payable		$	606,814			$	1,544,544
Accrued Expenses			143,847				503,595
Customer Deposits			24,040				82,730
Warranty Liability			100,000				100,000
Deferred Revenue			33,000				33,000
Derivative Liability			256,683				2,008,802
Facility Lease Liability - current			213,474				249,132
Line of Credit			1,169,638				1,680,350
Notes payable - GE			2,498,076				2,442,154
Convertible Notes Payable (net of discount of $26,919 and $170,438 respectively)			1,193,341				541,426
Related Party Notes Payable			626,210				600,075
Total Current Liabilities			6,865,123				9,785,809
Long-Term Debt:
Related Party Notes Payable (net of discount of $0 and $0 Respectively			1,081,085				1,092,622
Notes payable - PPL			-				110,700
Facility Lease Liability - long term			207,778				373,112
Net Long-Term Debt			1,288,863				1,576,434
Total Liabilities			8,153,986				11,362,243
Commitments and contingencies		$	-			$	-
Stockholders’ (Deficit)
Preferred D stock, stated value $100 per share; 20,000 shares authorized; 7,500 shares and 7,500 shares issued and 0 and 4,500 outstanding as of December 31, 2020 and December 31, 2021, respectively			-				450,000
Common stock, $.001 par value; 2,000,000,000 shares authorized; 821,169,656 and 943,569,148 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively			943,569				821,171
Shares to be issued			-				61,179
Additional paid-in capital			14,777,708				9,080,560
Accumulated deficit			(17,423,930	)			(17,651,482	)
			(1,702,653	)			(7,238,572	)
Non-controlling interest			(19,059	)			-
Total Stockholders’ (Deficit)			(1,721,712	)			(7,238,572	)
Total Liabilities and Stockholders’ Deficit		$	6,432,274			$	4,123,671

The accompanying footnotes are an integral part of these consolidated financial statements

Clean Energy Technologies, Inc.
Consolidated Statement of Operations
December 31,

											2021				2020
Sales											$	1,300,439			$	1,406,005
Cost of Goods Sold												690,032				654,937
Gross Profit												610,407				751,068
General and Administrative
General and Administrative expense												488,177				480,812
Salaries												772,463				495,269
Travel												145,170				86,292
Professional Fees												155,241				111,318
Facility lease and Maintenance												346,454				363,643
Consulting												243,371				157,149
Bad Debt Expense												-				259,289
Depreciation and Amortization												32,292				32,912
Total Expenses												2,183,167				1,986,684
Net Profit / (Loss) From Operations												(1,572,760	)			(1,235,616	)
Change in derivative liability												1,752,119				(1,270,099	)
Gain / (Loss) on debt settlement and write down												868,502				399,181
Interest and Financing fees												(769,369	)			(1,329,230	)
Net Profit / (Loss) Before Income Taxes												278,492				(3,435,764	)
Income Tax Expense												-				-
Net Profit / (Loss)												278,492				(3,435,764	)
Non-controlling interest												(19,059	)			-
Net Profit / (Loss) attributable to Clean Energy Technologies, Inc.												297,551				(3,435,764	)
Per Share Information:
Basic weighted average number of common shares outstanding and dilluted												900,774,064				767,861,170
Net Profit / (Loss) per common share basic and dilluted											$	0.00			$	(0.00	)

Clean Energy Technologies, Inc.
Consolidated Statements of Cash Flows
for the years ended December 31,

		2021				2020
Cash Flows from Operating Activities:
Net Income / ( Loss )		$	278,492			$	(3,435,764	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			32,292				32,912
Bad debt expense			-				259,289
Gain on debt settlement			(868,502	)			(399,181	)
Shares issued for commitment fee			54,266				73,421
Change in debt discount and Financing fees			321,517				516,710
Change in derivative liability			(1,752,119	)			1,270,099
Changes in assets and liabilities:
(Increase) decrease in right of use asset			210,962				215,715
(Increase) decrease in lease liability			(200,993	)			(209,613	)
(Increase) decrease in accounts receivable			(359,593	)			10,731
(Increase) decrease in inventory		$	95,629				72,384
(Decrease) increase in accounts payable			(44,855	)			230,200
Other (Decrease) increase in accrued expenses			(379,239	)			55,666
Other (Decrease) increase in accrued expenses related party			118,286				118,286
Other (Decrease) increase in deferred revenue			-				(14,750	)
Other (Decrease) increase in customer deposits			(58,690	)			(226,500	)
Net Cash Provided by (Used In) Operating Activities			(2,552,547	)			(1,430,395	)
Cash Flows from Investing Activities
Investment in CETY HK			(1,500,000	)
Purchase property plant and equipment			-				-
Cash Flows Used In Investing Activities			(1,500,000	)			-
Cash Flows from Financing Activities
Bank Overdraft / (Repayment)			-				(1,480	)
Payment on notes payable and lines of credit			(906,112	)			(507,168	)
Payment on notes payable related party			0				(35,000	)
Proceeds from notes payable and lines of credit			975,000				1,150,502
Proceeds from notes payable related party			-				60,000
Stock issued for cash			4,761,090				1,171,020
Cash Flows Provided By Financing Activities			4,829,978				1,837,874
Net (Decrease) Increase in Cash and Cash Equivalents			777,431				407,479
Cash and Cash Equivalents at Beginning of Period			414,885				7,406
Cash and Cash Equivalents at End of Period		$	1,192,316			$	414,885
Supplemental Cashflow Information:
Interest Paid		$	187,207			$	200,671
Taxes Paid		$	-			$	-
Supplemental Non-Cash Disclosure
Discount on derivatives		$	-			$	413,113
Shares issued for preferred conversions		$	450,000			$	200,000
Shares issued for debt conversion conversions		$	423,011			$	198,800

The accompanying footnotes are an integral part of these consolidated financial statements

This summary should be read in conjunction with the Company’s 10-K for the fiscal year ended December 31, 2021 which contains, among other matters, risk factors and finaical footnotes as well as a discussions of our business, operations and financial matters located on the website of the Securities and Exchange Commission at www.sec.gov. 

DISCLAIMER

This news release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the company's analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.

Investor Relations Contact:
ir@cetyinc.com

Contact:

Clean Energy Technologies, Inc.

2990 Redhill Avenue

Costa Mesa, CA 92626

949.273.4990 main

949.273.4990 fax

www.cetyinc.com

FAQ

What were Clean Energy Technologies' financial results for 2021?

Clean Energy Technologies reported a net profit of $278,429 for 2021, a significant improvement from a net loss of $3,435,764 in 2020.

How much capital did CETY raise in 2021?

CETY raised approximately $4.78 million in a Regulation A equity offering in 2021.

What new business units did CETY establish?

CETY created new business units focused on Waste to Energy Solutions and Engineering, Consulting, and Project Management Solutions.

What is the company's outlook for 2022?

CETY aims to expand its market reach, particularly in China, and leverage new incentives for clean energy projects.

Did Clean Energy Technologies experience any challenges in 2021?

Yes, the gross profit margin decreased due to increased material costs and logistics challenges stemming from the pandemic.