Clean Energy Technologies (CETY) Announces 2021 Year-End Financial Results
COSTA MESA, Calif., April 18, 2022 (GLOBE NEWSWIRE) -- Clean Energy Technologies (OTCQB: CETY), ("CETY" or the "Company"), a clean energy company offering products and solutions in the renewable and energy efficiency markets announces 2021 Year-End financial results and operational highlights.
Who We Are
We develop renewable energy products and solutions and establish partnerships in renewable energy that make environmental and economic sense. Our mission is to be a segment 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 target sustainable energy solutions that are profitable for us, profitable for our customers and represent the future of global energy production.
Major Development in Financials and Expansion of Business
Financial and corporate highlights for the year ended December 31, 2021 and subsequently include the following:
Ended the year with a net profit of of $278,429 in 2021 compared to a net loss of $3,435,764 in 2020.
In 2021, we raised approximately $4.78 million in Regulation A equity offering. Subsequently, we raised an additional $1.2 million in 2022 through the same offering at $0.08.
Created a new business unit – Waste to Energy Solutions. We convert waste products created in manufacturing, agriculture, wastewater treatment plants and other industries to electricity, renewable natural gas (“RNG”), hydrogen and BioChar which are sold or used by our customers.
Created a new business unit – Engineering, Consulting and Project Management Solutions. We bring a wealth of experience in developing clean energy projects for municipal and industrial customers and Engineering, Procurement and Construction (EPC) companies so they can identify, design and incorporate clean energy solutions in their projects.
Finalized agreement on $15M renewable energy processing facility to convert 10,000 tons per year of clean woody feedstock into an estimated 20,000 MWh electricity/year. In addition, the facility will produce 1,400 metric tons of BioChar and 26,000 MMBTU of heat per year. In addition, working on follow up projects in Massachusetts and California.
Secured $1.5M of sales order for the installation of Clean Cycle Waste Heat Generators in the US and Europe and built a strong pipeline of opportunities for the Clean Cycle unit as a result of the recently introduced incentives both at the federal and state levels for heat to power generation.
Acquisition of Leading Wave Limited (LWL), a liquified natural gas (LNG) trading company in China.
Obtained a 15% equity stake in Heze Hongyuan Natural Gas (HHNG), a local pipeline operator in the Shandong Province.
CETY Hong Kong established a frame work agreement for a future joint venture with the overseas investment arm of a large gas enterprise in China called Shenzhen Gas (Hong Kong) International Co. Ltd. (“Shenzhen Gas”). The joint venture plans to acquire municipal natural gas operators in China with funds provided by Shenzhen Gas.
Improved our balance sheet and capital position to permit CETY to retain more resources and invest in more products and projects.
Kam Mahdi, CEO of Clean Energy Technologies stated, “Our revenue from waste heat recovcery solutions in 2021 was $1,014,707 compared to $930,882 in 2020 as we have been diminishing the legacy manufacturing business and shifting 100% of our focus to the clean energy technologies and solutions. Gross profit margin was decreased to $610,407 from $751,068 in 2020 due to an increase in material costs and logistics as a result of the pandemic and increase in the cost of our engineering consultants. For the year ended December 31, 2021, we had a net profit of $278,429 compared to a net loss of $3,435,764 for the same period in 2020. The increase in the net profit in 2021 was mainly due to the change in derivative liability associated with the payoff of convertible debt and lower interest expense from 2021 to 2020.
2021 was an eventful year for the company, We have made significant progress in improving our balance sheet and capital position to permit us to invest in more products and projects. In 2021, we raised approximately $4.78 million in a Regulation A equity offering.
We continue to take advantage of federal investment tax credits and state incentives that now include waste heat recovery as a recognized clean energy source making our Clean Cycle Generator and ORC systems more profitable to install. The acquisition of the LNG trading company and future acquisitions of municipal natural gas operators is going to create opportunities for us to sell our Waste Heat Recovery and Waste to Energy products in China and to provide engineering, consulting and project management services.
We also established new partnership to support selling more equipment and leveraging our existing marketing channels to sell our HTAP Waste to Energy products and solutions to industrial clients and government agencies”.
About Clean Energy Technologies
Headquartered in Costa Mesa, California, Clean Energy Technologies (CETY) is a 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 CycleTM 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.
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:
Clean Energy Technologies, Inc.
Consolidated Balance Sheet
December 31, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash | $ | 1,192,316 | $ | 414,885 | ||||
Accounts receivable - net | 693,032 | 265,738 | ||||||
Lease receivable asset | 217,584 | 217,584 | ||||||
Prepaid | 40,380 | |||||||
Inventory | 462,192 | 557,820 | ||||||
Total Current Assets | 2,605,504 | 1,456,027 | ||||||
Property and Equipment - Net | 33,016 | 53,432 | ||||||
Goodwill | 747,976 | 747,976 | ||||||
LWL Intangibles | 1,468,709 | - | ||||||
Long-term financing receivables - net | 684,770 | 752,500 | ||||||
License | 354,322 | 354,322 | ||||||
Patents | 115,569 | 127,445 | ||||||
Right of use asset - long term | 395,607 | 606,569 | ||||||
Other Assets | 26,801 | 25,400 | ||||||
Total Non Current assets | 3,793,754 | 2,667,644 | ||||||
Total Assets | $ | 6,432,274 | $ | 4,123,671 | ||||
Liabilities and Stockholders’ (Deficit) | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 606,814 | $ | 1,544,544 | ||||
Accrued Expenses | 143,847 | 503,595 | ||||||
Customer Deposits | 24,040 | 82,730 | ||||||
Warranty Liability | 100,000 | 100,000 | ||||||
Deferred Revenue | 33,000 | 33,000 | ||||||
Derivative Liability | 256,683 | 2,008,802 | ||||||
Facility Lease Liability - current | 213,474 | 249,132 | ||||||
Line of Credit | 1,169,638 | 1,680,350 | ||||||
Notes payable - GE | 2,498,076 | 2,442,154 | ||||||
Convertible Notes Payable (net of discount of $26,919 and $170,438 respectively) | 1,193,341 | 541,426 | ||||||
Related Party Notes Payable | 626,210 | 600,075 | ||||||
Total Current Liabilities | 6,865,123 | 9,785,809 | ||||||
Long-Term Debt: | ||||||||
Related Party Notes Payable (net of discount of $0 and $0 Respectively | 1,081,085 | 1,092,622 | ||||||
Notes payable - PPL | - | 110,700 | ||||||
Facility Lease Liability - long term | 207,778 | 373,112 | ||||||
Net Long-Term Debt | 1,288,863 | 1,576,434 | ||||||
Total Liabilities | 8,153,986 | 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 December 31, 2020 and December 31, 2021, respectively | - | 450,000 | ||||||
Common stock, $.001 par value; 2,000,000,000 shares authorized; 821,169,656 and 943,569,148 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 943,569 | 821,171 | ||||||
Shares to be issued | - | 61,179 | ||||||
Additional paid-in capital | 14,777,708 | 9,080,560 | ||||||
Accumulated deficit | (17,423,930 | ) | (17,651,482 | ) | ||||
(1,702,653 | ) | (7,238,572 | ) | |||||
Non-controlling interest | (19,059 | ) | - | |||||
Total Stockholders’ (Deficit) | (1,721,712 | ) | (7,238,572 | ) | ||||
Total Liabilities and Stockholders’ Deficit | $ | 6,432,274 | $ | 4,123,671 | ||||
The accompanying footnotes are an integral part of these consolidated financial statements
Clean Energy Technologies, Inc.
Consolidated Statement of Operations
December 31,
2021 | 2020 | ||||||||||||||||
Sales | $ | 1,300,439 | $ | 1,406,005 | |||||||||||||
Cost of Goods Sold | 690,032 | 654,937 | |||||||||||||||
Gross Profit | 610,407 | 751,068 | |||||||||||||||
General and Administrative | |||||||||||||||||
General and Administrative expense | 488,177 | 480,812 | |||||||||||||||
Salaries | 772,463 | 495,269 | |||||||||||||||
Travel | 145,170 | 86,292 | |||||||||||||||
Professional Fees | 155,241 | 111,318 | |||||||||||||||
Facility lease and Maintenance | 346,454 | 363,643 | |||||||||||||||
Consulting | 243,371 | 157,149 | |||||||||||||||
Bad Debt Expense | - | 259,289 | |||||||||||||||
Depreciation and Amortization | 32,292 | 32,912 | |||||||||||||||
Total Expenses | 2,183,167 | 1,986,684 | |||||||||||||||
Net Profit / (Loss) From Operations | (1,572,760 | ) | (1,235,616 | ) | |||||||||||||
Change in derivative liability | 1,752,119 | (1,270,099 | ) | ||||||||||||||
Gain / (Loss) on debt settlement and write down | 868,502 | 399,181 | |||||||||||||||
Interest and Financing fees | (769,369 | ) | (1,329,230 | ) | |||||||||||||
Net Profit / (Loss) Before Income Taxes | 278,492 | (3,435,764 | ) | ||||||||||||||
Income Tax Expense | - | - | |||||||||||||||
Net Profit / (Loss) | 278,492 | (3,435,764 | ) | ||||||||||||||
Non-controlling interest | (19,059 | ) | - | ||||||||||||||
Net Profit / (Loss) attributable to Clean Energy Technologies, Inc. | 297,551 | (3,435,764 | ) | ||||||||||||||
Per Share Information: | |||||||||||||||||
Basic weighted average number of common shares outstanding and dilluted | 900,774,064 | 767,861,170 | |||||||||||||||
Net Profit / (Loss) per common share basic and dilluted | $ | 0.00 | $ | (0.00 | ) | ||||||||||||
Clean Energy Technologies, Inc.
Consolidated Statements of Cash Flows
for the years ended December 31,
2021 | 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net Income / ( Loss ) | $ | 278,492 | $ | (3,435,764 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 32,292 | 32,912 | ||||||
Bad debt expense | - | 259,289 | ||||||
Gain on debt settlement | (868,502 | ) | (399,181 | ) | ||||
Shares issued for commitment fee | 54,266 | 73,421 | ||||||
Change in debt discount and Financing fees | 321,517 | 516,710 | ||||||
Change in derivative liability | (1,752,119 | ) | 1,270,099 | |||||
Changes in assets and liabilities: | ||||||||
(Increase) decrease in right of use asset | 210,962 | 215,715 | ||||||
(Increase) decrease in lease liability | (200,993 | ) | (209,613 | ) | ||||
(Increase) decrease in accounts receivable | (359,593 | ) | 10,731 | |||||
(Increase) decrease in inventory | $ | 95,629 | 72,384 | |||||
(Decrease) increase in accounts payable | (44,855 | ) | 230,200 | |||||
Other (Decrease) increase in accrued expenses | (379,239 | ) | 55,666 | |||||
Other (Decrease) increase in accrued expenses related party | 118,286 | 118,286 | ||||||
Other (Decrease) increase in deferred revenue | - | (14,750 | ) | |||||
Other (Decrease) increase in customer deposits | (58,690 | ) | (226,500 | ) | ||||
Net Cash Provided by (Used In) Operating Activities | (2,552,547 | ) | (1,430,395 | ) | ||||
Cash Flows from Investing Activities | ||||||||
Investment in CETY HK | (1,500,000 | ) | ||||||
Purchase property plant and equipment | - | - | ||||||
Cash Flows Used In Investing Activities | (1,500,000 | ) | - | |||||
Cash Flows from Financing Activities | ||||||||
Bank Overdraft / (Repayment) | - | (1,480 | ) | |||||
Payment on notes payable and lines of credit | (906,112 | ) | (507,168 | ) | ||||
Payment on notes payable related party | 0 | (35,000 | ) | |||||
Proceeds from notes payable and lines of credit | 975,000 | 1,150,502 | ||||||
Proceeds from notes payable related party | - | 60,000 | ||||||
Stock issued for cash | 4,761,090 | 1,171,020 | ||||||
Cash Flows Provided By Financing Activities | 4,829,978 | 1,837,874 | ||||||
Net (Decrease) Increase in Cash and Cash Equivalents | 777,431 | 407,479 | ||||||
Cash and Cash Equivalents at Beginning of Period | 414,885 | 7,406 | ||||||
Cash and Cash Equivalents at End of Period | $ | 1,192,316 | $ | 414,885 | ||||
Supplemental Cashflow Information: | ||||||||
Interest Paid | $ | 187,207 | $ | 200,671 | ||||
Taxes Paid | $ | - | $ | - | ||||
Supplemental Non-Cash Disclosure | ||||||||
Discount on derivatives | $ | - | $ | 413,113 | ||||
Shares issued for preferred conversions | $ | 450,000 | $ | 200,000 | ||||
Shares issued for debt conversion conversions | $ | 423,011 | $ | 198,800 | ||||
The accompanying footnotes are an integral part of these consolidated financial statements
This summary should be read in conjunction with the Company’s 10-K for the fiscal year ended December 31, 2021 which contains, among other matters, risk factors and finaical footnotes as well as a discussions of our business, operations and financial matters located on the website of the Securities and Exchange Commission at www.sec.gov.
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:
ir@cetyinc.com
Contact:
Clean Energy Technologies, Inc.
2990 Redhill Avenue
Costa Mesa, CA 92626
949.273.4990 main
949.273.4990 fax
