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 30th, 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
CETY continued its aggressive growth strategy in Q3 2023 and has achieved a significant milestone in its waste to energy segment.
Vermont Renewable Gas LLC (VRG), an affiliate of CETY, successfully secured a 20-year Power Purchasing Agreement (PPA) with VEPP, Inc., a not-for-profit corporation that administers two of Vermont's Renewable Energy Programs under contract with the Vermont Public Utility Commission. The PPA is valued at $53 million. The project has entered its final permitting stage and is expected to begin construction in Q1 2024, allowing CETY to continuously recognize revenue from the $10 million EPC contract already in place with VRG.
As temperatures fall, the natural gas (NG) trading business is entering its high season and CETY expects increased margins from fulfilling potential upstream shortfalls. CETY has also stepped up its cross-selling efforts in China and identified opportunities to deploy our waste to energy technology.
HRS has finalized an agreement with RPG Energy Group Inc. ("RPG") and Stanley Black & Decker ("SBD") to design, build, and install a Clean Cycle waste heat recovery system at SBD's Martin Energy facility. CETY and RPG are well-positioned to deploy this cutting-edge thermal waste conversion technology, which will benefit Stanley Black & Decker's facility and its environmental and sustainable goals. CETY will also work to identify additional opportunities to expand the application of this solution across Stanley Black & Decker's operations.
CETY's Clean Cycle ORC will bring environmental and sustainable benefits to Stanley Black & Decker's facility. This joint venture with RPG and Stanley Black & Decker will significantly enhance the scalability of CETY's heat recovery solutions. Additionally, the investment tax credit also offers customers increased incentive to implement waste heat generators and other forms of energy recovery solutions. This is a great opportunity to capitalize on, and the company is excited to see future plants replicate this model.
About Clean Energy Technologies, Inc. (CETY)
Headquartered in Costa Mesa, California, Clean Energy Technologies (CETY) is a rising 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. Our NG trading operations in China is to source and supply Natural Gas to industries and municipalities located in China.
For more information, visit www.cetyinc.com .
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This summary should be read in conjunction with the Company's 10-Q for the fiscal quarter ended June 30, 2023 which contains, among other matters, risk factors and financial 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.
Safe Harbor Statement
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. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of CETY's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements can be identified by words such as: "anticipate," "plan," "expect," "estimate," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Any forward-looking statement made by the Company in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Clean Energy Technologies, Inc.
Investor and Investment Media inquiries:
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Source: Clean Energy Technologies, Inc.
