Clean Energy Technology Announces Third Quarter 2021 Financial Results
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
[email protected]
[email protected]
Media Contact:
Jules Abraham
CORE IR
917-885-7378
[email protected]