COSTA MESA, CA., May 23, 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 the 2023 first quarter financial results.
Strong Revenue Growth and Continuous Execution of Operational Strategy
Financial and corporate highlights for the first quarter ended March 31, 2023 include the following:
- For the quarter ended March 31, 2023, our total revenue was $2,897,007 an increase of 373% compared to the same period in 2022. The first quarter of 2023 has already exceeded the total revenue generated throughout the entirety of 2022.
- For the quarter ended March 31, 2023, stockholder’s equity was $6,001,109 compared to $1,878,196 reported on December 31, 2022. This is a result of the offering related to the Nasdaq up-list as well as debt conversions and write-offs.
- During the quarter ending March 31, 2023, our gross profit was $160,569 compared to $514,192 for the same period in 2022. During the March 31, 2023 quarter, our revenue driver was from our NG trading operations as compared to March 31, 2022 where our revenues came from the completion of several Waste Heat Recovery systems, as well as engineering and manufacturing services. Despite highly volatile NG prices, CETY was able to grow our NG trading operations by robustly managing risks and simultaneously scaling sales. The company’s strategy to scale the NG trading operations has given CETY access to downstream NG users and sales opportunities in the Waste Heat Recovery segment. The Company expects higher revenue contribution from Waste Heat Recovery, Waste to Energy, and Engineering, Consulting, and Project Management Services in the coming quarters to drive gross margin growth.
- For the quarter ended March 31, 2023, net loss was $1,073,858. The net loss was influenced by, one-off higher expenses incurred from interest and financing fees, coupled with the marketing costs totaling approximately $900,000 which are associated with the Nasdaq up-listing. This had a significant impact on the net loss for the quarter ending March 31, 2023. In management’s opinion, these costs will not occur again in the foreseeable future and management believes that the Company will deliver positive results in the future.
Management Discussion and Corporate Strategy
CETY’s strategy centers on advancing it’s established Waste Heat Recovery business, while simultaneously penetrating the growing markets for Waste to Energy solutions and offering comprehensive clean energy engineering, consulting, and project management services.
The Company is also leveraging its NG trading and investment relationships to create opportunities to market and sell Waste Heat Recovery and Waste to Energy products in China and to provide engineering, consulting, and project management services.
As the clean energy sector continues to thrive, it gives CETY the opportunity to invest and expand its technological portfolio with sustainable energy acquisitions and combine complementary strengths, technologies, and resources. CETY’s goal is to take greater control over our renewable energy supply chain, create cost savings, and increase efficiency by making synergistic and vertically integrated acquisitions.
CETY has effectively implemented strategic repositioning by establishing four distinct business segments, enabling the company to achieve a broader, more resilient, and diversified revenue stream, thereby facilitating scalability the pursuit of emerging growth prospects.
CETY possesses a portfolio of over 30 request for proposals (RFPs) pertaining to Waste Heat Recovery products in both the United States and Europe, whereas the selling price of each Waste Heat Recovery system ranges from $250k to $450k. The increase in demand stems from the Inflation Reduction Act enacted by Congress in August 2022, which includes targeted provisions advantageous for leveraging CETY's Waste Heat Recovery solutions. CETY has also begun to cross-sell its Waste Heat Recovery solutions to China as its NG trading operations have created sales opportunities in that region. Based on this evidence, the Company believes this segment will deliver consistent and steady growth to its business model.
CETY’s pilot Waste to Energy plant in Vermont is capable of processing industrial and municipal organic waste into energy. It's HTAP system integrates all of CETY’s technologies and expertise into a single solution and it is progressing steadily with updates coming soon. Waste to Energy in the US has gained significant momentum as a sustainable solution for waste management and renewable energy production and some markets have incentivized its implementation. The Company’s system has the potential to be a disruptive technology by offering flexible solutions, modularity, and scalability unlike large, centralized processing facilities and aligns itself well with the principles of the circular economy.
CETY’s Project Development & Management Solutions provides its customers with expertise and experience in developing clean energy projects for municipality and industrial customers. CETY’s team has continuously conducted global site assessments for a Fortune 500 company over the last 12 months to collect and analyze data to identify energy efficiencies and improvements. The application will integrate CETY’s services and solutions into the microgrid at these sites, allowing for functions such as demand shave generation, onsite generation (genset), Energy Storage, Waste-Heat-Recovery to Power (ORC), Solar PV, Hydrogen Fuel Cell, and Waste to Hydrogen.
The strategy to create a market for Waste Heat Recovery and Waste to Energy products and solutions in China through NG trading is already materializing. As CETY HK scales its NG trading operations, it will continue to have greater access to downstream industrial users and more opportunities to cross-sell its products and solutions. The current opportunities lie in existing heavy industrial facilities such as steel and glass factories, as well as new installations in the distributed power assets.
On March 23, 2023, CETY achieved a significant milestone by meeting all the Nasdaq listing standards and commencing trading on the Nasdaq, despite economic instability and a persistently rising interest rate environment. This Nasdaq trading status greatly enhances CETY's reputation and positively impacts its global sales strategies, while also potentially improving the company's access to capital on favorable terms. The capital raised through the Nasdaq up-list offering strengthens CETY's balance sheet, empowering the company to pursue domestic expansion and global aspirations.
CETY will continue to execute its corporate strategy and build sustained and profitable growth in the Company and throughout the World, by providing end to end vertically integrated eco-friendly solutions and technologies, expand our global sales and marketing, production, research & development, as well as search for synergistic acquisition opportunities.
About Clean Energy Technologies
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 Cycle TM 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.
CETY's common stock is currently traded on the Nasdaq Capital Market under the symbol CETY. For more information, visit www.cetyinc.com or www.heatrecoverysolutions.com .
This summary should be read in conjunction with the Company’s 10-Q for the fiscal quarter ended March 31, 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.
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
