CETY Clean Energy Technologies, Inc.

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Executive Summary

Clean Energy Technologies (CETY) filed a third amended 10-K/A (Amendment No. 3) restating financial statements for fiscal years 2024 and 2023 due to material errors in classification, valuation, and collectability of long-term receivables and contract assets, warrant accounting, and revenue recognition timing. The restatement increased the 2024 net loss by $134K and the accumulated deficit by $1.04M, with approximately $952K of cumulative impact relating to pre-2023 periods. The auditor, TAAD LLP, maintained its going-concern opinion. This follows a prior 8-K Item 4.02 non-reliance disclosure filed 29 days earlier.

Actionable Insight

Key Facts

• Three-time amended 10-K/A restating FY2024 and FY2023 financials for errors in receivables classification, revenue recognition, and warrant accounting
• Restatement adjustments: $619,779 reclassed to contract assets; ~$360K receivables write-off; ~$421K long-term financing receivables write-off; $398K present value adjustment
• Net loss for FY2024 increased by $133,977 to $4,550,296 after restatement; net loss for FY2023 increased by $48,595 to $5,611,128
• Accumulated deficit rose by $1,037,499 to $28,480,730 at Dec 31, 2024
• Working capital deficit of $3,478,090 and stockholders' equity of $1,897,145 at Dec 31, 2024
• Cash used in operating activities $3,560,951 for FY2024
• Auditor issued going-concern opinion with substantial doubt about ability to continue as a going concern
• Material weaknesses in internal controls over financial reporting remain, including lack of qualified accounting staff and inadequate segregation of duties
• Revenue declined 64% YoY from $6,693,844 (FY2023) to $2,424,659 (FY2024), driven by 79% drop in NG trading segment
• Prior 8-K (May 7, 2026) announced non-reliance on previously issued financial statements for periods from Jan 1, 2022 to Sep 30, 2025

Financial Impact

Restatement increased FY2024 net loss by $133,977 and accumulated deficit by $1.04M. Prior period adjustments of ~$952K relate to pre-2023 periods. Total revenue fell 64% YoY from $6.69M to $2.42M. Net loss of $4.55M vs $5.61M in prior year. Working capital deficit of $3.48M.

Risk Factors

• Restatement triggers high risk of securities class action and SEC investigation
• Revenue declined 64% YoY with core NG trading segment collapsing 79%
• Going-concern opinion with $3.48M working capital deficit and only $62K cash
• Nasdaq non-compliance: late 10-K/10-Q filings (notices dated April 17 and May 26, 2026) create delisting risk
• Massive convertible debt overhang ($3.09M convertible notes payable) creates severe dilution risk
• Material weaknesses in internal controls remain unremediated
• Reliance on expensive short-term cash advance loans with effective interest rates exceeding 100% APR

Market Snapshot

Documents Analyzed

This report is based on 9 SEC documents filed with EDGAR.

US Market Status