Nasdaq:CETY
Clean Energy Technologies, Inc.
A renewable energy generator leveraging a portfolio of solar and wind assets to sell electricity in international wholesale markets.
Key Metrics
Investment Thesis
Bull Case
The massive jump in revenue from 2022 to 2023 suggests the company successfully executed on large-scale project acquisitions or developments that may still be ramping up. If the recent revenue decline is temporary due to asset sales or transition costs, the underlying renewable energy assets could generate strong cash flows once fully operational. The current market valuation likely prices in the worst-case scenarios, offering a potential turnaround opportunity if management stabilizes operations.
Bear Case
The company has posted three consecutive years of negative net income with a substantial retained earnings deficit, signaling fundamental business model issues or unsustainable burn rates. With current assets totaling only $3.2M against $6.4M in current liabilities, the balance sheet is fragile and vulnerable to any further cash flow deterioration. Investors should avoid this stock until the company demonstrates consistent profitability and a clear path to reducing its reliance on external equity financing.
About Clean Energy Technologies, Inc.
Clean Energy Technologies, Inc. (CETY) is a renewable energy developer focused on generating solar and wind power across North America, Europe, and Australia. The company owns and operates utility-scale projects that convert natural resources into clean electricity for wholesale markets. Key revenue streams include power sales from operational assets and potential income from project development and asset sales.
Analysis
Management Discussion
Revenue contracted sharply from $15.1M in 2023 to $2.4M in 2024, coinciding with continued net losses that widened slightly from -$5.5M to -$4.4M. Cash flow from operations turned negative at -$3.6M while the company relied on $3.4M in financing cash flows and share issuances to maintain liquidity. The shift from a small profit in 2022 to consecutive losses highlights severe operational challenges or a strategic pivot that has not yet yielded positive results.
Industry Overview
The global renewable energy sector is driven by decarbonization mandates and declining technology costs, creating high demand for utility-scale solar and wind generation. However, the industry faces headwinds from supply chain bottlenecks, permitting delays, and fluctuating interest rates that impact project financing costs. Companies with diversified geographic footprints and strong developer partnerships are better positioned to navigate these macroeconomic pressures.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $2.7M | $15.1M | $2.4M |
| Cost of Revenue | $1.5M | $14.0M | $1.6M |
| Gross Profit | $1.2M | $1.1M | $846.6K |
| Operating Expenses | $2.2M | $3.7M | $4.0M |
| Operating Income | $-989.8K | $-2.7M | $-3.1M |
| R&D | $0 | $0 | $0 |
| G&A | $400.3K | $684.9K | $797.5K |
| Stock-Based Comp | — | $148.1K | $62.2K |
| D&A | $30.1K | $26.7K | $8.9K |
| Depreciation | $18.2K | $32.9K | $10.4K |
| Amortization | $11.9K | $11.9K | $8.9K |
| Other OpEx | $1.8M | $3.1M | $3.2M |
| Non-Operating Income | $1.2M | $-2.9M | $-1.3M |
| Pre-Tax Income | $165.7K | $-5.5M | $-4.4M |
| Income Tax | $18.3K | $22.2K | $0 |
| Continuing Ops | $147.4K | $-5.5M | $-4.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $147.4K | $-5.5M | $-4.4M |
| Minority Interest | $0 | $128.0K | $0 |
| Net to Common | $147.4K | $-5.7M | $-4.4M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $4.0M | $6.8M | $3.2M |
| Cash & Equivalents | — | — | $62.1K |
| Accounts Receivable | $1.4M | — | — |
| Inventory | $500.6K | $974.9K | $497.0K |
| Other Current Assets | $2.1M | $5.8M | $2.6M |
| Long-Term Assets | $4.1M | $4.2M | $6.3M |
| PP&E (Net) | $14.8K | $78.7K | $2.9K |
| Goodwill | $748.0K | $748.0K | $748.0K |
| Operating Leases | $157.4K | $454.0K | $166.7K |
| LT Investments | $561.7K | — | — |
| Other LT Assets | $2.6M | $2.9M | $5.4M |
| Total Assets | $8.1M | $10.9M | $9.5M |
| Current Liabilities | $6.2M | $4.8M | $6.4M |
| Accounts Payable | $860.4K | — | $1.5M |
| Current Leases | $186.4K | $346.8K | $130.5K |
| Deferred Revenue | $80.5K | $210.3K | $30.1K |
| Other Current Liab | $5.0M | $3.7M | $4.3M |
| Long-Term Liabilities | $0 | $257.9K | $128.9K |
| Other LT Liab | $-998.8K | $-368.1K | $-533.9K |
| Total Liabilities | $6.2M | $5.1M | $6.6M |
| Shareholders' Equity | $1.9M | $5.9M | $2.9M |
| Paid-In Capital | $19.3M | $28.3M | $30.6M |
| Retained Earnings | $-17.3M | $-23.0M | $-27.4M |
| AOCI | $-160.7K | $-196.8K | $-257.4K |
| Total L&E | $8.1M | $10.9M | $9.5M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $147.4K | $-5.5M | $-4.4M |
| Non-Cash Adjustments | $-4.0M | $1.4M | $554.4K |
| Working Capital Changes | $1.6M | $-680.5K | $301.0K |
| Cash from Operations | $-2.2M | $-4.8M | $-3.6M |
| Cash from Investing | $-1.4M | $-318.6K | $161.2K |
| Cash from Financing | $2.8M | $5.1M | $3.4M |
| FX Effect | $-160.7K | $30.8K | $-1.7K |
| Net Change in Cash | $-1.0M | $25.6K | $-27.5K |
| Beginning Cash | $1.2M | $149.3K | $89.6K |
| Ending Cash | $149.3K | $174.9K | $62.1K |
Frequently Asked Questions
How does Clean Energy Technologies, Inc. make money?
The company's financials suggest a diversified approach with segments likely including owned utility-scale solar generation, wind power projects, and potentially third-party solar leasing or development activities given the significant non-cash adjustments and deferred revenue.
What are the main risks for CETY?
Significant operating losses and a retained earnings deficit indicate high cash burn, raising concerns about liquidity and the ability to fund operations without further equity dilution. Heavy reliance on non-cash adjustments suggests potential asset impairment issues or accounting complexities regarding long-term projects that may not yet be profitable. Rising interest rates increase the cost of capital for a capital-intensive energy business, potentially widening the gap between operating costs and revenue.
What is CETY's competitive advantage?
Access to multiple international jurisdictions (North America, Europe, Australia) diversifies regulatory risk. The company benefits from a portfolio of long-term Power Purchase Agreements (PPAs) that provide stable revenue visibility despite volatile spot prices. Strategic partnerships with major developers can accelerate growth without requiring full capital expenditure for every project.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.