Clean Energy Technologies Reports Significant Financial Challenges, Net Loss, and Restructuring Efforts

Clean Energy Technologies, Inc. (CETY) reported significant financial challenges for the nine months ended September 30, 2024, compared to the same period in 2023. Total revenue decreased sharply to $1.94 million from $5.28 million, primarily due to the deconsolidation of its Chinese subsidiary, Shuya. This change in revenue dynamics was reflected across various segments, with the natural gas trading segment experiencing a decline from $10.46 million to $1.19 million, and waste-to-energy revenue dropping from $779,720 to $231,679.

The company's gross profit also fell to $641,575 from $992,943, indicating a decline in profitability. Operating expenses increased to $3.19 million from $2.46 million, driven by higher salaries and professional fees, contributing to a net loss of $3.55 million, up from a loss of $2.46 million in the prior year. The accumulated deficit rose to $26.64 million, and stockholders’ equity decreased to $3.58 million from $5.87 million.

CETY's total assets decreased to $6.98 million from $10.93 million, with current liabilities rising significantly to $1.05 million, primarily due to an increase in convertible notes payable. The company reported a working capital deficit of $778,464 as of September 30, 2024, raising concerns about its ability to continue as a going concern.

Strategically, CETY underwent a significant restructuring, including the deconsolidation of Shuya effective January 1, 2024, which was previously classified as a variable interest entity. This decision was made following a termination agreement that resulted in CETY holding less than 50% of the voting rights in Shuya. The deconsolidation did not result in a gain or loss, as the fair value of the retained equity interest approximated its carrying value.

CETY also focused on its core business segments, which include Clean Energy Heat Recovery Solutions, Waste to Energy Solutions, Engineering and Manufacturing Services, and Natural Gas Trading. The company is actively pursuing opportunities in the U.S. and Europe, particularly in heat recovery, while continuing to develop its waste-to-energy projects, including a pilot plant in Vermont.

Despite these challenges, CETY has maintained its commitment to eco-friendly energy solutions and is exploring market opportunities to enhance its revenue streams moving forward.