CETY's Cash Boosted by Financing, But Going Concern Doubts Linger

Ticker: CETY · Form: 10-Q · Filed: Nov 19, 2025 · CIK: 1329606

Sentiment: bearish

Topics: Clean Energy, Going Concern, Net Loss, Financing Activities, Working Capital, Accumulated Deficit, Waste to Energy, Heat Recovery

Related Tickers: CETY

TL;DR

CETY is burning cash and relying on dilutive financing to stay afloat, making it a highly speculative bet despite a gross profit bump.

AI Summary

Clean Energy Technologies, Inc. (CETY) reported a net loss of $3,522,342 for the nine months ended September 30, 2025, a slight improvement from the $3,550,669 net loss in the prior year period. Total income decreased to $1,801,769 for the nine months ended September 30, 2025, down from $1,944,333 in the same period of 2024. Gross profit, however, significantly increased to $1,135,315 from $641,575 year-over-year. The company's cash position improved substantially, with cash increasing to $826,786 as of September 30, 2025, from $62,101 at December 31, 2024. This was largely driven by $6,986,908 in cash flows from financing activities, including $4,399,999 from stock issued for cash. Despite these financing efforts, CETY continues to face substantial doubt about its ability to continue as a going concern, evidenced by a negative working capital of $1,523,862 and an accumulated deficit of $30,922,858 as of September 30, 2025, alongside continued negative operating cash flows of $6,218,085.

Why It Matters

For investors, CETY's significant increase in cash from financing activities, particularly $4.4 million from stock issuance, provides a temporary lifeline but also signals ongoing reliance on external capital. The persistent negative working capital of $1.5 million and accumulated deficit of $30.9 million highlight fundamental operational challenges and a high-risk profile. Employees and customers might face uncertainty given the 'going concern' warning, which could impact future projects and job security. In the competitive clean energy market, CETY's struggle to achieve profitability despite increased gross profit suggests difficulties in scaling operations and managing expenses, potentially making it vulnerable to larger, more financially stable competitors.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about the ability of the Company to continue as a going concern' due to an accumulated deficit of $30,922,858, negative working capital of $1,523,862, and continued negative cash flows from operating activities of $6,218,085 for the nine months ended September 30, 2025.

Analyst Insight

Investors should exercise extreme caution and consider CETY a high-risk, speculative investment. Monitor future financing activities closely for further dilution and look for concrete evidence of sustained positive operating cash flow and a reduction in the accumulated deficit before considering a long position.

Financial Highlights

debt To Equity
N/A
revenue
$1,801,769
operating Margin
N/A
total Assets
$14,798,895
total Debt
$7,703,762
net Income
-$3,522,342
eps
-$0.93
gross Margin
63.0%
cash Position
$826,786
revenue Growth
-7.3%

Key Numbers

Key Players & Entities

FAQ

What is Clean Energy Technologies, Inc.'s net loss for the nine months ended September 30, 2025?

Clean Energy Technologies, Inc. reported a net loss of $3,522,342 for the nine months ended September 30, 2025. This represents a slight improvement compared to the $3,550,669 net loss reported for the same period in 2024.

Did Clean Energy Technologies, Inc. improve its cash position?

Yes, Clean Energy Technologies, Inc. significantly improved its cash position. Cash and cash equivalents increased to $826,786 as of September 30, 2025, from $62,101 at the beginning of the period on December 31, 2024.

What is the primary reason for the increase in CETY's cash balance?

The primary reason for the increase in CETY's cash balance was $6,986,908 in cash flows provided by financing activities for the nine months ended September 30, 2025. This included $4,399,999 from stock issued for cash.

Does Clean Energy Technologies, Inc. have a 'going concern' warning?

Yes, the company explicitly states there is 'substantial doubt about the ability of the Company to continue as a going concern.' This is due to an accumulated deficit of $30,922,858 and negative working capital of $1,523,862 as of September 30, 2025.

How much cash did CETY use in its operating activities?

Clean Energy Technologies, Inc. used $6,218,085 in cash from its operating activities for the nine months ended September 30, 2025, indicating ongoing operational cash burn.

What was Clean Energy Technologies, Inc.'s gross profit for the nine months ended September 30, 2025?

The gross profit for Clean Energy Technologies, Inc. for the nine months ended September 30, 2025, was $1,135,315. This is a significant increase from the $641,575 reported for the same period in 2024.

What is CETY's accumulated deficit as of September 30, 2025?

As of September 30, 2025, Clean Energy Technologies, Inc. had an accumulated deficit of $30,922,858, reflecting significant historical losses.

What is the impact of the reverse stock split on CETY's shares?

The company's Board of Directors approved a 1-for-15 reverse stock split effective September 26, 2025. As of November 18, 2025, there were 5,183,021 shares of common stock issued and outstanding, reflecting this split.

What are Clean Energy Technologies, Inc.'s main business segments?

Clean Energy Technologies, Inc. has four reportable segments: Clean Energy HRS (Heat Recovery Solutions) & CETY Europe, CETY Renewables waste to energy, engineering, consulting & management services, and CETY HK NG trading.

What is the status of CETY HK's planned joint venture with Shenzhen Gas?

CETY HK has not commenced business with Shenzhen Gas due to macro-economic factors such as falling natural gas prices and reduced industrial demand. The joint venture terms are subject to the execution of definitive agreements, and CETY HK will wait for improved conditions.

Risk Factors

Industry Context

The clean energy sector is characterized by rapid technological advancements, increasing global demand for sustainable solutions, and significant government incentives. However, it also faces intense competition, evolving regulatory landscapes, and the challenge of scaling production to meet demand profitably. Companies like CETY operate in a dynamic environment where innovation and efficient capital management are crucial for success.

Regulatory Implications

As a company in the clean energy sector, CETY may be subject to various environmental regulations, emissions standards, and renewable energy mandates. Compliance with these regulations is essential, and changes in policy or enforcement could impact operational costs and market opportunities. The company's financial disclosures also need to adhere to SEC reporting requirements.

What Investors Should Do

  1. Monitor cash burn and financing activities closely.
  2. Analyze the drivers of gross profit improvement.
  3. Assess the path to profitability.
  4. Evaluate the impact of the reverse stock split.

Key Dates

Glossary

Going Concern
An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. If there is substantial doubt about this, it must be disclosed. (CETY faces substantial doubt about its ability to continue as a going concern, indicating significant financial distress.)
Accumulated Deficit
The cumulative net losses of a company since its inception that have not been offset by net income or capital contributions. (CETY's large accumulated deficit of $30,922,858 highlights its history of unprofitability.)
Working Capital
The difference between a company's current assets and current liabilities. Positive working capital indicates the company can meet its short-term obligations. (CETY's negative working capital of $1,523,862 signals potential short-term liquidity issues.)
Operating Cash Flow
The cash generated or used by a company's normal business operations. (CETY's negative operating cash flow of $6,218,085 shows that its core business is consuming cash.)
Gross Profit
Revenue minus the cost of goods sold. It represents the profit a company makes after deducting the direct costs associated with producing its goods or services. (CETY's significant increase in gross profit to $1,135,315 suggests improved efficiency in its cost of goods sold or pricing power.)
Reverse Stock Split
A corporate action in which a company reduces the total number of its outstanding shares by consolidating existing shares into fewer, proportionally more valuable shares. (The mention of a 1-for-15 reverse split impacts the share count and potentially the perception of share value.)

Year-Over-Year Comparison

Compared to the prior year period, CETY reported a slightly reduced net loss of $3.52M versus $3.55M, and a decrease in total income from $1.94M to $1.80M. However, gross profit saw a substantial increase from $641K to $1.14M, indicating improved cost management or pricing. The most significant change is the dramatic improvement in cash position, from $62.1K to $826.7K, driven by substantial financing activities, including stock issuance. New risks related to derivative liabilities have emerged, while the ongoing concerns of negative working capital and accumulated deficit persist.

Filing Stats: 4,572 words · 18 min read · ~15 pages · Grade level 17.8 · Accepted 2025-11-19 15:43:15

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS 3 ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 44 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 54 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 54

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 55 ITEM 1A.

RISK FACTORS

RISK FACTORS 55 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 55 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 55 ITEM 4. MINE SAFETY DISCLOSURES 55 ITEM 5. OTHER INFORMATION 55 ITEM 6. EXHIBITS 56 2 Part I – Financial Information Item 1. Financial Statements Clean Energy Technologies, Inc. Consolidated

Financial Statements

Financial Statements (Expressed in US dollars) September 30, 2025 (unaudited) Financial Statement Index Consolidated Balance Sheets September 30, 2025 (unaudited) and December 31, 2024 4 Consolidated Statements of Operations (unaudited) 5 Consolidated Statements of Stockholders Deficit (unaudited) 6 Consolidated Statements of Cash Flows (unaudited) 8 Notes to the Consolidated Financial Statements (unaudited) 9 3 Clean Energy Technologies, Inc. Consolidated Balance Sheets (Unaudited) Unaudited Audited September 30,2025 31-Dec-24 Assets Current Assets Cash $ 826,786 $ 62,101 Accounts receivable - net 580,308 131,067 Accounts receivable - Related Party 2,356,829 1,947,131 Accounts receivable 2,356,829 1,947,131 Advance to supplier – Current 799,255 195,575 Deferred Offering Costs 22,750 22,750 Due from related party 113,124 112,000 Loan Receivables 394,851 230,464 Inventory, net 483,345 497,003 Investment to Guangyuan Shuxin New Energy Co. 234,916 - Other Assets 3,204,513 - Total Current Assets 9,016,677 3,198,091 Non-Current Assets Property & Equipment - Net 14,502 2,913 Goodwill 747,976 747,976 Investment LWL 1,468,709 1,468,709 Investment Heze Hongyuan Natural Gas Co. 760,649 741,700 Investment 760,649 741,700 Long Term Investment - Shuya 536,668 485,889 Investment to Guangyuan Shuxin New Energy Co. - 229,064 Long-term financing receivables - net 1,423,055 1,423,054 Advance to supplier - prepayment - 548,000 License 354,322 354,322 Patents 74,003 82,910 Right of use asset - long term 350,693 166,727 Deposits 51,641 56,125 Total Non-Current Assets 5,782,218 6,307,389 Total Assets $ 14,798,895 $ 9,505,480 Liabilities Current Liabilities Accounts Payable $ 1,692,046 $ 1,509,782 Accounts Payable - Related Party 702,467 ( 33 ) Accounts Payable 702,467 ( 33 ) Accrued Expenses 449,480 465,232 Customer Dep

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