- First-half 2023 revenues of $7.6 million, compared to $2.2 million for the same period in 2022, representing an increase of 205%
COSTA MESA, CA., Aug 15, 2023 — Clean Energy Technologies, Inc. (Nasdaq CETY) (“CETY” or the “Company”), a clean energy manufacturing and services company, offering eco-friendly green energy solutions, clean energy fuels, and alternative electric power for small and mid-sized projects in North America, Europe, and Asia today announced its 2023 second quarter financial results.
Continued Robust Revenue Growth Meeting Both Short-Term and Long-Term Goals
Financial and corporate highlights for the six months ended June 30th, 2023, include the following:
- For the six months ended June 30, 2023 our total revenue was $7.6 million compared to $2.5 million for the same period in 2022 which represents revenue growth of 205%. Total revenue in Q2 2023 was $4.7 million compared to $2.8 million in Q1 2023 which represents quarter over quarter revenue growth of 66%.
- For the six months ended June 30, 2023 our gross profit was $0.6 million compared to $1.1 million for the same period in 2022. Due to CETY’s waste to energy and engineering solutions contribution to the revenue in Q2 2023, gross profit margins have improved significantly from 5% in 2023 Q1 to 11% in Q2 2023.
- For the six months ended June 30, 2023 our operating expense was $1.6 million compared to $1.1 million for the same period in 2022. This increase is a result of CETY’s expansion in 2023 and additional costs associated with marketing and business development, professional fees for legal and accounting services, increase in salary expenses for the new officers and directors, and additional costs for engineering consultants.
- For the six months ended June 30, 2023 we had a net loss of $1.7 million due to an increase in interest and financing fees of $1.3 million, of which $0.7 million are non-cash debt discount calculations associated with the warrant issuances and additional operating expenses mentioned above. These non-cash debt calculations are unlikely to affect CETY’s cashflow and are a result of the Company’s commitment for accelerated growth. CETY also plans to lower its cost of capital by restructuring current debt.
- For the six months ended June 30, 2023 stockholder’s equity was $5.7 million compared to $1.8 million on December 31, 2022. This is a result of the offering related to the Nasdaq up-list as well as debt conversions and write-offs.
Management Discussion and Corporate Strategy
CETY pursued an aggressive growth strategy in Q2 2023 to scale up the business. The Company will continue to deploy financial resources to drive revenue growth in all business segments.
CETY has made significant progress in its waste to energy segment this quarter recording $412,682 of revenue, realizing a portion of the $10 million engineering, procurement, and construction (EPC) contract with Vermont Renewable Gas LLC (VRG) announced on July 12, 2023. The VRG project has reached many milestones related to interconnection, permits, etc. and is on track to be commissioned in the next 12 months. As additional milestones are met, CETY will be able to recognize additional revenue from the VRG $10 million EPC contract. Diverting waste from landfills to sustainable alternatives is a critical step in reducing environmental impact. There is strong federal support in the US for conversion of food/agricultural waste to gaseous fuels and electricity with a focus on reducing methane emissions; this is a timely opportunity. CETY has received many inquiries from waste management and waste energy companies regarding our high temperature fast pyrolysis system.
CETY delivered exceptional growth through its natural gas (NG) trading business and has realigned the trading operations from trading liquified natural gas (LNG) to compressed natural gas (CNG) and pipeline natural gas (PNG) as prices of LNG remain volatile. Going forward, CETY anticipates having more visible and stable NG trading margins as the Company signs long-term back-to-back contracts with suppliers and downstream users. More importantly, through NG trading, CETY has identified potential customers for cross-selling CETY’s waste heat recovery products and solutions.
CETY’s Heat Recovery Systems (HRS) is a project-based business unit. Revenue from this segment is recognized when the products and services are completed and delivered to the end customer. CETY is currently working on various opportunities in this business sector. In addition, CETY is evaluating multiple acquisition targets in the waste heat recovery segment to potentially enhance engineering capabilities, broaden product offering, and improve financial performance.
Finally, as CETY anticipates its continuous rapid growth path, the Company is undertaking a review of additional strategic options to further improve liquidity and minimize cash burn while exploring additional channels of funding in both private and public capital markets.
About Clean Energy Technologies
Headquartered in Costa Mesa, California, Clean Energy Technologies (CETY) is a rising 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. Clean Energy Technologies (H.K.) Limited (CETY HK), our wholly owned subsidiary manages our NG trading operations in China to source and supply Natural Gas to industries and municipalities located in China.
For information on CETY’s corporate structure refer to the Company’s 10K for the fiscal year ended December 31, 2022 located on the website of the Securities and Exchange Commission at www.sec.gov.
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:
Clean Energy Technologies, Inc.
2990 Redhill Avenue
Costa Mesa, CA 92626