CETY Clean Energy Technologies, Inc.

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Executive Summary

Clean Energy Technologies, Inc. (CETY) filed this Amendment No. 1 on Form 10-Q/A to restate its consolidated financial statements for the quarterly period ended September 30, 2025, correcting historical accounting errors related to the classification, valuation, and collectability assessment of long-term receivables and contract assets, as well as warrant issuance and revenue recognition. The restatement reduced net assets by approximately $1.3 million and widened the net loss for the nine months by $191k, while the company continues to report a substantial accumulated deficit of $32.2M and negative operating cash flow, raising substantial doubt about its ability to continue as a going concern.

Actionable Insight

Key Facts

• The 10-Q/A restates financials for the nine months ended September 30, 2025, correcting errors in classification, valuation, and collectability of long-term receivables, contract assets, and warrant issuance.
• Total assets were reduced by $1.09M from the previously reported figure to $13.70M; accumulated deficit increased by $1.31M to $32.19M.
• Revenue for the nine months was reduced by $350k to $1.45M; net loss widened by $191k to $3.71M.
• The company had negative operating cash flow of $6.13M for the nine months and a working capital of only $960k.
• An 8-K (Item 4.02) filed on May 7, 2026 disclosed that prior financial statements from January 1, 2022 through September 30, 2025 should no longer be relied upon due to these accounting errors.
• The company has restated or is in the process of restating multiple prior periods, including amendments for fiscal years 2023 and 2024.

Financial Impact

The restatement reduced total assets by $1.09M, increased accumulated deficit by $1.31M, reduced nine-month revenue by $350k, widened net loss by $191k, and corrected a $1.42M misclassification of long-term financing receivables. The company's accumulated deficit stands at $32.19M.

Risk Factors

• Restatement of multiple prior periods (2022-2025) indicates material internal control deficiencies and potential SEC or litigation risks.
• Going concern uncertainty with negative operating cash flow of $6.13M and accumulated deficit of $32.19M.
• Persistent reliance on dilutive convertible debt and equity financings to fund operations, with $2.4M in convertible notes and $825k derivative liability as of September 30, 2025.

Market Snapshot

Documents Analyzed

This report is based on 11 SEC documents filed with EDGAR.

US Market Status