Clean Energy Technology Announces Third Quarter 2021 Financial Results

Rhea-AI Summary

Clean Energy Technologies (CETY) announced its financial results for Q3 2021, reporting a net loss of $17,012, an improvement compared to a net loss of $518,889 in Q3 2020. Revenue from various segments showed mixed results, with total revenue for the nine months ending September 30, 2021, at $1,386,546, down from $2,220,371 year-over-year. The company acquired Leading Wave Limited, a Chinese LNG trading firm, and secured a $500K sales order for its Waste Heat Generator. Gross profits decreased to $519,683 from $681,236 in the same period last year, influenced by pandemic-related supply chain issues.

Positive

• Acquisition of Leading Wave Limited expands CETY's presence in the Chinese LNG market.
• Secured $500K sales order for a Clean Cycle Waste Heat Generator.
• Net profit for nine months was $819,716 compared to a net loss of $1,055,970 in 2020.

Negative

• Gross profits declined to $519,683 from $681,236 a year earlier, affected by supply chain delays.
• Revenue from Engineering and Manufacturing decreased significantly to $91,263 from $361,697 in the same period last year.

COSTA MESA, Calif., Nov. 17, 2021 (GLOBE NEWSWIRE) -- Clean Energy Technologies (OTCQB: CETY), ("Clean Energy" or the "Company"), a low carbon energy company focusing on products and solutions in the energy efficiency and environmental sustainability market, today announces financial results for the quarter ended September 30, 2021.

Financial and corporate highlights for the quarter ended September 30, 2021 and subsequently include the following:

• Acquisition of Leading Wave Limited (LWL), a liquified natural gas (LNG) trading company in China.
• Finalized agreement on $15M renewable energy processing facility to convert 10,000 tons per year of clean woody feedstock into an estimated 16,500 MWh electricity/year. In addition, the facility will produce 1,400 metric tons of BioChar and 26,000 MM BTU of heat per yer.
• Secured a $500K sales order for the installation of a Clean Cycle Waste Heat Generator at the Aries Linden Biosolids Gasification Facility.
• Retained CORE IR to assist the Company with investor relations, public relations and shareholder communications services.

Kam Mahdi, CEO of Clean Energy Technologies stated, “While the third quarter gross profit slowed year-over-year, the last quarter and even the beginning of the fourth quarter have been eventful for the Company. We have made significant progress in providing a renewable energy processing facility, and a sales order for our waste heat generator. However, more importantly, we recently expanded our global footprint to help drive additional revenue from an acquisition in China to provide liquified natural gas to it’s growing natural market. We also have renewed our dedication to improving communications with our stock holders, including the hiring of CORE IR, which is designed to improve our communications output and quality as we begin to prepare for a potential up-list to a major exchange.”

Financial Results for Quarter Ended September 30, 2021

Net Sales

The Company has five reportable segments: Clean Energy HRS (HRS), CETY Europe srl, CETY Renewables Ashfield, CETY Waste to Energy division and engineering & manufacturing services division. 

Segment breakdown

During the nine months ended September 30, 2021, revenue from Engineering and Manufacturing was $91,263 compared to $361,697 for the same period in 2020. The decrease was due to shift of focus on the heat recovery solution business and manufacturing.

In the nine months ended September 30, 2021, revenue from HRS was $602,607 compared to $823,928 for the same period in 2020. This decrease was mainly caused by delays in execution of orders and contracts as a result of the pandemic and supply chain delays.

In the nine months ended September 30, 2021, revenue from CETY Europe was $173,234 compared to $44,506 for the same period in 2020. This increase was mainly due to the overall increase in the service revenue and equipment sale.

Gross Profit

For the none months ended September 30, 2021, gross profits were $519,683 compared to $681,236 for the same period in 2020. Gross profits could vary from period to period and are affected by several factors, including, production and supply change efficiencies, material costs, and logistics.

Segment breakdown

During nine months ended September 30, 2021, our gross profit from Engineering and Manufacturing was $72,854 compared to $124,790 for the same period in 2020.

For the nine months ended September 30, 2021, gross profit from HRS was $312,118 compared to $518,695, for the same period in 2020. The decrease from the HRS segment was mainly due to no revenue in the first quarter of 2021 and supply chain delays and higher cost of materials.

During the nine months ended September 30, 2021, gross profit from CETY Europe was $134,712 compared to $37,481 for the same period in 2020. This increase was mainly due to the overall increase in the service revenue and equipment sales.

Net Income / Loss

In the third quarter ended September 30, 2021, net loss was $17,012 compared to net loss of $518.889 for the same period in 2020. This increase was primarily due to the gain on derivative liability in 2021.

In the nine months ended September 30, 2021, net profit was $819,716 compared to net loss of $1,055,970 for the same period in 2020. This increase was primarily due to the gain on derivative liability in 2021.

About Clean Energy Technologies

Headquartered in Costa Mesa, California, Clean Energy Technologies (CETY) a low carbon energy company delivers power from heat and biomass with zero emission and low cost. CETY designs, produces, and markets clean energy products & solutions focused on energy efficiency and renewable energy. The Company's principal product is the Clean Cycle™ magnetic bearing heat recovery generator, offered by CETY's subsidiary Clean Energy HRS, or Heat Recovery Solutions.

The Clean Cycle™ system captures waste heat from a variety of sources and turns it into electricity that can be used or sold back to the grid. CETY's proven, reliable technology allows municipal, commercial, and industrial users with heat sources, such as from biomass, industrial processes, or energy production, to boost their overall energy efficiency with no additional fuel, no pollutants, and little ongoing maintenance. 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.

# # #

FINANCIAL TABLES FOLLOW

Clean Energy Technologies, Inc.
Consolidated Balance Sheet

		(unaudited)
		September 30, 2021				December 31, 2020
Assets
Current Assets:
Cash		$	1,555,157			$	414,885
Accounts receivable - net			777,156				265,738
Lease receivable asset			217,584				217,584
Inventory			725,559				557,820
Total Current Assets			3,275,456				1,456,027
Property and Equipment - Net			38,120				53,432
Goodwill			747,976				747,976
Long term financing receivables - (net)			684,770				752,500
License			354,322				354,322
Patents			118,538				127,445
Right of use asset - long term			461,979				606,569
Other Assets			38,088				25,400
Total Non Current assets			2,443,793				2,667,644
Total Assets		$	5,719,249			$	4,123,671
Liabilities and Stockholders’ (Deficit)
Current Liabilities:
Accounts payable		$	871,316			$	1,544,545
Accrued Expenses			139,487				503,595
Customer Deposits			194,500				82,730
Warranty Liability			100,000				100,000
Deferred Revenue			33,000				33,000
Derivative Liability			274,178				2,008,802
Facility Lease Liability - current			208,651				249,132
Line of Credit			1,160,274				1,680,350
Notes payable - GE			2,484,096				2,442,154
Notes Payable			369,065				-
Convertible Notes Payable (net of discount of $0 and $170,438 respectively)			291,100				541,426
Related Party Notes Payable			597,594				600,075
Total Current Liabilities			6,723,261				9,785,809
Long-Term Debt:
Notes Payable PPL			-				110,700
Related Party Notes Payable			1,081,085				1,092,622
Facility Lease Liability - long term			272,440				373,112
Net Long-Term Debt			1,353,525				1,576,434
Total Liabilities			8,076,786				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 September 30, 2021 and December 31, 2020, respectively			-				450,000
Common stock, $.001 par value; 2,000,000,000 shares authorized; 923,893,327 and 821,169,656 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively			923,893				821,171
Shares to be issued			-				61,179
Additional paid-in capital			13,550,333				9,080,560
Accumulated deficit			(16,812,704	)			(17,651,482	)
			(2,338,478	)			(7,238,572	)
Non-controlling interest			(19,059	)			-
Total Stockholders’ (Deficit)			(2,357,537	)			(7,238,572	)
Total Liabilities and Stockholders’ Deficit		$	5,719,249			$	4,123,671

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

Clean Energy Technologies, Inc.
Consolidated Statement of Operations
for the three and nine months ended September 30,
(Unaudited)

		three months								nine months
		2021				2020				2021				2020
Sales		$	575,545			$	215,318			$	866,703			$	1,230,131
Cost of Goods Sold			274,401				112,288				374,020				548,895
Gross Profit			301,144				103,030				519,683				681,236
General and Administrative
General and Administrative expense			188,817				143,490				529,335				394,791
Salaries			228,565				183,972				661,634				569,734
Travel			26,381				27,045				66,735				67,861
Professional Fees			41,174				52,034				123,383				129,385
Facility lease and Maintenance			85,798				86,667				254,708				280,303
Depreciation and Amortization			8,073				9,443				24,219				28,329
Total Expenses			578,809				502,651				1,660,015				1,470,403
Net Profit / (Loss) From Operations			(277,664	)			(399,621	)			(1,140,331	)			(789,167	)
Change in derivative liability			(10,745	)			88,836				1,734,624				208,195
Gain / (Loss) on debt settlement’ and write down			460,568				191,833				828,666				431,698
Interest and Financing fees			(189,171	)			(393,937	)			(603,240	)			(906,696	)
Net Profit / (Loss) Before Income Taxes			(17,012	)			(512,889	)			819,719				(1,055,970	)
Income Tax Expense			-				-				-				-
Net Profit / (Loss)			(17,012	)			(512,889	)			819,719				(1,055,970	)
Net (income) loss attributable to the non-controlling interests			19,059				-				19,059				-
							-								-
Net income (loss) attributable to Clean Energy Technologies, Inc.		$	2,047			$	(512,889	)		$	838,778			$	(1,055,970	)
Per Share Information:
Basic weighted average number of common shares outstanding			922,225,702				768,031,046				891,312,514				762,841,333
Net Profit / (Loss) per common share basic		$	(0.00	)		$	(0.00	)		$	0.00			$	(0.00	)
Per Share Information:
Diluted weighted average number of common shares outstanding			922,225,702				768,031,046				1,357,635,219				762,841,333
Net Profit / (Loss) per common share diluted		$	(0.00	)		$	(0.00	)		$	0.00			$	(0.00	)

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

Clean Energy Technologies, Inc.
Consolidated Statements of Cash Flows
for the nine months ended September 30, 2021
(Unaudited)

		2021				2020
Cash Flows from Operating Activities:
Net Income / ( Loss )		$	819,719			$	(1,055,970	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			24,219				28,329
Gain on debt settlement			(828,666	)			(431,698	)
Shares issued for inducement			54,266				48,421
Change in debt discount and Financing fees			730,826				442,560
Change in derivative liability			(1,734,624	)			(208,195	)
Changes in assets and liabilities:
(Increase) decrease in right of use asset			144,588				155,244
(Increase) decrease in lease liability			(141,153	)			(149,142	)
(Increase) decrease in accounts receivable			(511,418	)			47,058
(Increase) decrease in longterm financing receivables			67,730				-
(Increase) decrease in inventory			(167,739	)			79,344
(Decrease) increase in accounts payable			(673,236	)			60,234
Other (Decrease) increase in accrued expenses			141,969				214,815
Other (Decrease) increase in accrued expenses related party			(2,482	)			23,889
Other (Decrease) increase in deferred revenue			-				(14,750	)
Other (Decrease) increase in customer deposits			111,770				(226,500	)
Net Cash Provided by (Used In) Operating Activities			(1,964,231	)			(986,361	)
Cash Flows from Investing Activities
Purchase property plant and equipment			-				-
Cash Flows Used In Investing Activities			-				-
Cash Flows from Financing Activities
Bank Overdraft / (Repayment)			-				(1,480	)
Payment on notes payable and lines of credit			(894,208	)			(156,000	)
Proceeds from notes payable			414,200				818,541
Proceeds from notes payable related party			-				-
Stock issued for cash			3,584,511				345,524
Cash Flows Provided By Financing Activities			3,104,503				1,006,585
Net (Decrease) Increase in Cash and Cash Equivalents			1,140,272				20,224
Cash and Cash Equivalents at Beginning of Period			414,885				7,406
Cash and Cash Equivalents at End of Period		$	1,555,157			$	27,630
Supplemental Cashflow Information:
Interest Paid		$	145,230			$	142,184
Taxes Paid		$	-			$	-
Supplemental Non-Cash Disclosure
Shares issued for warrant conversion		$	-			$	-
Discount on derivatives		$	-			$	134,961
Shares issued for preferred conversions		$	450,000			$	80,000
Shares issued for debt conversion conversions		$	75,473			$	-
Shares issued for debt conversion conversions		$	347,538			$	34,000

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

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:
CORE IR
516-222-2560
investors@brooklynitx.com
ir@cetyinc.com

Media Contact:
Jules Abraham
CORE IR
917-885-7378
julesa@coreir.com

FAQ

What were Clean Energy Technologies' financial results for Q3 2021?

Clean Energy Technologies reported a net loss of $17,012 for Q3 2021, improving from a loss of $518,889 in Q3 2020.

How much revenue did Clean Energy Technologies generate in the nine months ended September 30, 2021?

The company reported total revenue of $1,386,546 for the nine months ended September 30, 2021, down from $2,220,371 in the same period in 2020.

What is the significance of the acquisition of Leading Wave Limited for CETY?

The acquisition of Leading Wave Limited enhances CETY's footprint in the growing Chinese liquefied natural gas market.

Did Clean Energy Technologies improve its net income in 2021?

Yes, CETY recorded a net profit of $819,716 for the nine months ended September 30, 2021, compared to a net loss of $1,055,970 for the same period in 2020.