Clean Energy Technologies Reports Third Quarter 2023 Financial Results and Provides Business Update

- For the nine months ended September 30, 2023, revenues of $11.7 million represent an increase of 339% compared to $2.6 million for the same period in 2022

COSTA MESA, CA., Nov. 28, 2023 (GLOBE NEWSWIRE) -- 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 third quarter 2023 unaudited financial results.

The company experienced sustained strong revenue growth, consistently surpassing quarterly expectations for the last three quarters.

Financial and corporate highlights for the nine months ended September 30^th, 2023, include the following:

• For the nine months ended September 30, 2023, CETY’s total revenue amounted to $11,701,118, a substantial increase from the $2,567,596 recorded during the same period in 2022, reflecting a remarkable revenue growth of 356%. This also represents a remarkable 339% growth over its total revenue in 2022. This impressive increase can be attributed to the success of the Vermont Renewable Gas Biomass project in Lyndon and the substantial growth in Natural Gas (NG) trading from CETY HK.
• For the nine months ended on September 30, 2023, CETY’s gross profit amounted to $1,427,629, as compared to $1,151,903 for the corresponding period in 2022. Gross margins have improved from 11% in Q2 2023 to 12.2% in Q3 2023. The fluctuations in natural gas (NG) prices during both the winter and summer seasons had an impact on our profit margins. Nevertheless, the sale of CETY’s waste-to-energy and waste-heat to power systems significantly bolstered our profit margins.
• For the nine months ended on September 30, 2023, CETY’s operating expenses totaled $2,709,963, compared to $1,724,727 for the corresponding period in 2022. This increase can be attributed to CETY’s expansion in 2023, along with additional costs related to marketing and business development, professional fees for legal and accounting services, increased expenses for investor relations, higher salaries for the new executives and directors, and additional consulting engineering expenses.
• For the nine months ended September 30, 2023, CETY incurred a net loss of $2,460,489, as compared to $1,322,861 for the corresponding period in 2022. This increase in net loss can be attributed to the rise in operating expenses stemming from its recent expansion, as well as interest and financing fees amounting to $1,707,690, which includes financing fees and debt discount calculations associated with the warrant. CETY is currently restructuring its debt to lower financing costs in the future.
• CETY has effectively converted $1.95 million of its note payable into equity, marking a significant milestone for the company and introducing a range of advantages. This conversion offers multiple key benefits: Firstly, it enables the note to be converted at a 20% discount to the market price, thereby closely aligning the investor's interests with the company's performance. Furthermore, the converted note no longer requires mandatory redemption in cash and cannot default, significantly reducing financial pressures. Additionally, the note will now receive a 15% dividend, replacing the previous 15% interest rate, until the preferred shares are converted or settled. Moreover, the converted securities will be subject to customary transfer restrictions. Finally, the company retains the option to settle the note using future capital raises at its own discretion. Overall, these elements collectively contribute to a highly favorable scenario for the company.

Management Discussion and Corporate Strategy