Clean Energy Technology Announces Third Quarter 2021 Financial Results

Costa Mesa, UNITED STATES


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.

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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