Clean Energy Technologies, Inc.

Previous wording

Summary of Operating Results the three months Ended March 31, 2025 Compared to the same period in 2024

Current wording

Summary of Operating Results the Six months Ended June 30, 2025 Compared to the same period in 2024

Previous wording

The financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and liquidation of liabilities in the normal course of business. The Company had a total stockholder’s equity of $2,951,159 and a working capital deficit of 3,320,603 as of March 31, 2025, The company also had an accumulated deficit of $27,731,745 as of March 31, 2025 and used 776,047 in net cash from operating activities for the three months ended March 31, 2025. Therefore, there is substantial doubt about the ability of the Company to continue as a going concern. There can be no assurance that the Company will achieve its goals and reach profitable operations and is still dependent upon its ability (1) to obtain sufficient debt and/or equity capital and/or (2) to generate positive cash flow from operations.

Current wording

The financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and liquidation of liabilities in the normal course of business. The Company had a total stockholder’s equity of $7,755,688 and a working capital of 2,267,817 as of June 30, 2025, The company also had an accumulated deficit of $28,820,537 as of June 30, 2025 and used 1,556,984 in net cash from operating activities for the six months ended June 30, 2025. Therefore, there is substantial doubt about the ability of the Company to continue as a going concern. There can be no assurance that the Company will achieve its goals and reach profitable operations and is still dependent upon its ability (1) to obtain sufficient debt and/or equity capital and/or (2) to generate positive cash flow from operations.

Previous wording

For the quarter ended March 31, 2025, our total revenue was $791,940 compared to $1,513,026 for the same period in 2024. Our total revenue for the first quarter of 2025 was lower compared to the same period in 2024, primarily due to minimal contributions from our China natural gas business.

Current wording

For the six months ended June 30, 2025, our total revenue was $1,028,215 compared to $1,709,151 for the same period in 2024. Our total revenue for the first half of 2025 was lower compared to the same period in 2024, primarily due to minimal contributions less than 3% from our China natural gas business.

Previous wording

For the quarter ended March 31, 2025, our gross profit was $728,553 compared to $253,005 for the same period in 2024. Gross profit margins improved due to greater contributions from CETY’s non-NG business in China, where our operations and technologies yield substantially higher margins compared to our NG segment.

Current wording

For the six months ended June 30, 2025, our gross profit was $952,210 compared to $429,035 for the same period in 2024. Gross profit margins improved due to greater contributions from CETY’s non-NG business in China, where our operations and technologies yield substantially higher margins compared to our NG segment.

Previous wording

For the three months ended March 31, 2025, our operating expense was $824,656 compared to $1,073,926 for the same period in 2024. The decrease in expenses was primarily driven by lower salary costs from our China operations and a reduction in professional fees for legal and accounting services, which were elevated in the prior period due to costs associated with our S-3 registration.

Current wording

For the six months ended June 30, 2025, our operating expense was $830,935 compared to $1,792,955 for the same period in 2024. The decrease in expenses was primarily driven by lower salary costs from our China operations and a reduction in for general and administration expenses, which were elevated in the prior period due to costs associated with our S-3 registration.

Previous wording

For the quarter ended March 31, 2025, we had a net loss of $331,182 compared to $1,419,400 for the same period in 2024. The improvement was largely attributable to reduced salary expenses in our China operations, lower legal and accounting costs, and stronger margins generated by our U.S.-based businesses.

Current wording

For the six months ended June 30, 2025, we had a net loss of $1,420,021 compared to $2,251,278 for the same period in 2024. The improvement was largely attributable to reduced salary expenses in our China operations, lower legal and accounting costs, and stronger margins generated by our U.S.-based businesses.

Previous wording

For the quarter ended March 31, 2025, stockholders’ equity increased by $12,657 to $2,951,159, compared to $2,938,502 as of December 31, 2024, primarily due to higher increase from net income

Current wording

For the quarter ended June 30, 2025, stockholders’ equity increased to $7,755,688, compared to $2,938,502 as of December 31, 2024, primarily due to higher increase from investments.

Previous wording

Management believes this 4-segment strategy has created many operational synergies and cross-selling opportunities across different markets. The growth in the non-China operations in the first quarter of 2025 vs. same period in 2024 was a result of this strategy. CETY believes that it will continue to deliver growth on these segments this year. The main macro factor benefiting us is the global commitment to push renewable energy to the forefront from governments across the world. Another catalyst that will potentially help our Company, is a continuously improving our global supply chain and lowering our cost.

Current wording

Management believes this 4-segment strategy has created many operational synergies and cross-selling opportunities across different markets. The growth in the non-China operations in the six months ended of 2025 vs. same period in 2024 was a result of this strategy. CETY believes that it will continue to deliver growth on these segments this year. The main macro factor benefiting us is the global commitment to push renewable energy to the forefront from governments across the world. Another catalyst that will potentially help our Company, is a continuously improving our global supply chain and lowering our cost.

Previous wording

Results of the three Ended March 31, 2025, Compared to the three ended March 31, 2024

Current wording

Results of the Six Months Ended June 30, 2025, Compared to the Six Months Ended June 30, 2024

Previous wording

For the quarter ended March 31, 2025, our total revenue was $791,940 compared to 1,513,026 for the same period in 2024. The lower revenue was contributed to primarily due to minimal contributions from our China natural gas business.

Current wording

For the six months ended June 30, 2025, our total revenue was $1,028,215 compared to 1,709,151 for the same period in 2024. The lower revenue was contributed to primarily due to minimal contributions from our China natural gas business.

Previous wording

For the three months ended March 31, 2025, our revenue from HRS was $612,354 compared to $72,488 for the same period in 2024. We have a large pipeline of opportunities in this segment and are working diligently to complete the engineering and design, enabling us to execute contractual agreements and close these opportunities. The sales cycle for these types of opportunities is long due to cost factors and the integration of the technology. We are also working with financial institutions to assist in financing the projects as customers are increasingly moving towards Independent Power Producer models.

Current wording

For the six months ended June 30, 2025, our revenue from HRS was $689,488 compared to $120,874 for the same period in 2024. We have a large pipeline of opportunities in this segment and are working diligently to complete the engineering and design, enabling us to execute contractual agreements and close these opportunities. The sales cycle for these types of opportunities is long due to cost factors and the integration of the technology. We are also working with financial institutions to assist in financing the projects as customers are increasingly moving towards Independent Power Producer models. There were also uncertainties surrounding the economy and the new, one big beautiful bill, as well as its potential impact on clean energy technologies.

Previous wording

For the three months ended March 31, 2025, revenue from the CETY Renewables segment was $176,105, compared to $211,568 for the same period in 2024. This segment is expected to remain relatively stable until construction activities commence later this year.

Current wording

For the six months ended June 30, 2025, our gross profit from CETY Renewables was For the six months ended June 30, 2025, revenue from the CETY Renewables segment was $331,597, compared to $ 359,307 for the same period in 2024. This segment is expected to remain relatively stable until construction activities commence later this year.

Previous wording

For the three months ended March 31, 2025, CETY reported no revenue from its Engineering and Manufacturing segments, compared to $9,342 for the same period in 2024. This segment is still in its early stages and much of the related activity is currently being integrated into the HRS and CETY Renewables segments. However, with a developing pipeline of opportunities, CETY expects to see gradual revenue growth from this segment over the coming quarters.

Current wording

For the six months ended June 30, 2025, CETY reported 0 revenue from its Engineering and Manufacturing segments, compared to $9,341 for the same period in 2024. This segment is still in its early stages and much of the related activity is currently being integrated into the HRS and CETY Renewables segments. However, with a developing pipeline of opportunities, CETY expects to see gradual revenue growth from this segment over the coming quarters.

Previous wording

For the three months ended March 31, 2025, revenue from our natural gas (NG) business was $3,481, a decrease from $1,219,629 for the same period in 2024. This decline is primarily due to macroeconomic factors and our strategic decision to reduce focus on lower-margin business activities.

Current wording

For the Six months ended June 30, 2025, revenue from our natural gas (NG) business was $7,130, a decrease from $1,219,629 for the same period in 2024. This decline is primarily due to macroeconomic factors and our strategic decision to reduce focus on lower-margin business activities.

Previous wording

In the three months ending March 31, 2025, our gross profits totalled $728,553 marking a favorable increase compared to $253,005 recorded for the corresponding period in 2024. Gross profit margins improved due to greater contributions from CETY’s non-NG business in China, where our operations and technologies yield substantially higher margins compared to our NG segment.

Current wording

For the six months ended June 30, 2024, our gross profits totaled $952,210 marking a favorable increase compared to $429,035 recorded for the corresponding period in 2024. Gross profit margins improved due to greater contributions from CETY’s non-NG business in China, where our operations and technologies yield substantially higher margins compared to our NG segment.

Previous wording

For the three months ending March 31, 2025, our gross profit from Engineering and Manufacturing amounted to $0, compared to 7,806 for the same period in 2024. This segment is a recent addition to CETY’s portfolio, currently serving as a support for our ongoing internal projects. Nevertheless, it is anticipated to expand notably as CETY shifts its focus towards providing comprehensive end-to-end power generation and integrated solutions.

Current wording

For the six months ended June 30, 2025, our gross profit from Engineering and Manufacturing amounted to $0, compared to 7,806 for the same period in 2024. This segment is a recent addition to CETY’s portfolio, currently serving as a support for our ongoing internal projects. Nevertheless, it is anticipated to expand notably as CETY shifts its focus towards providing comprehensive end-to-end power generation and integrated solutions.

Previous wording

For the three months ended March 31, 2025, our gross profit from the HRS segment was $552,331, compared to $51,597 for the same period in 2024. This significant increase in gross profit was primarily driven by higher revenues, which included equipment sales and the sale of products with lower costs, along with engineering services.

Current wording

For the six months ended June 30, 2025, our gross profit from the HRS segment was $620,374, compared to $79,889 for the same period in 2024. This significant increase in gross profit was primarily driven by higher revenues, which included equipment sales and the sale of products with lower costs, along with engineering services.

Previous wording

For the three months ended March 31, 2025, our gross profit from our wholly owned subsidiary, JHJ, was $115, down from $9,852 for the same period in 2024. This decrease was primarily due to minimal business activity in China, which was partly a result of our strategic decision to reduce focus on lower-margin businesses in the region.

Current wording

For the six months ended June 30, 2025, our gross profit from our wholly owned subsidiary, JHJ, was $239, down from $9,853 for the same period in 2024. This decrease was primarily due to minimal business activity in China, which was partly a result of our strategic decision to reduce focus on lower-margin businesses in the region.

Previous wording

For the three months ended March 31, 2025, our salaries expense totalled $433,799, compared to $511,111 for the same period in 2024. The decrease was primarily due to reduced activity in our China natural gas business, while salary levels in other areas remained stable.

Current wording

For the six months ended June 30, 2025, our salaries expense totaled $873,268, compared to $966,843 for the same period in 2024. The decrease was primarily due to reduced activity in our China natural gas business, while salary levels in other areas remained stable.

Previous wording

For the three months ended March 31, 2025, our travel expenses were $32,377, compared to $29,652 for the same period in 2024. This slight increase reflects stable activity levels within our service and marketing operations.

Current wording

For the six months ended June 30, 2025, our travel expenses were $79,737, compared to $81,224 for the same period in 2024. This slight decrease reflects stable activity levels within our service and marketing operations.

Previous wording

For the quarter ended March 31, 2025, our professional fees totalled $66,213, compared to $199,053 for the same period in 2024. The decrease was primarily due to reduced legal and consulting activity, as the first quarter of 2024 included higher costs related to our S-3 registration process.

Current wording

For the six months ended June 30, 2025, our professional fees totalled $333,319, compared to $353,065 for the same period in 2024. The decrease was primarily due to reduced legal and consulting activity, as the Six months ended 2024 included higher costs related to our S-3 registration process.

Previous wording

For the three months ended March 31, 2025, our facility lease and maintenance expenses totalled $66,741, compared to $71,275 for the same period in 2024. This slight decrease reflects normal fluctuations, with no significant changes in underlying operations.

Current wording

For the six months ended June 30, 2025, our facility lease and maintenance expenses totalled $133,399, compared to $150,883 for the same period in 2024. This slight decrease reflects normal fluctuations, with no significant changes in underlying operations.

Previous wording

For the three months ended March 31, 2025, our depreciation and amortization expense was $2,969, unchanged from the same period in 2024. There were no significant changes, as the majority of our equipment has already been fully depreciated.

Current wording

For the six months ended June 30, 2025, our depreciation and amortization expense was $5,938, compared to $5,938 for the same period in 2024. There were no significant changes, as the majority of our equipment has already been fully depreciated.

Previous wording

For the three months ended March 31, 2025, interest and finance fees totalled $339,821, compared to $295,193 for the same period in 2024. The increase was primarily due to two larger interim financings secured to bridge the company through the finalization of funding for the Vermont Renewable Project, aimed at addressing approximately $1.7 million in accounts receivable, and to support the completion of the S-3 registration.

Current wording

For the six months ended June 30, 2025, interest and finance fees totalled $843,859, compared to $424,743 for the same period in 2024. The increase was primarily due to two larger interim financings secured to bridge the company through the finalization of funding for the Vermont Renewable Project, aimed at addressing approximately $1.7 million in accounts receivable, and to support the completion of the S-3 registration.

Previous wording

For the three months ended March 31, 2025, our net loss was $331,231, compared to a net loss of $1,419,400 for the same period in 2024. This significant decrease is primarily attributable to higher-margin revenue from the HRS segment—driven by equipment and technical sales—as well as stable contributions from CETY Renewables in support of the Vermont Renewable Gas Project. Additionally, reduced activity in the lower-margin China NG business contributed to improved overall financial performance.

Current wording

For the six months ended June 30, 2025, our net loss was $1,420,021, compared to a net loss of $2,251,278 for the same period in 2024. This significant decrease is primarily attributable to higher-margin revenue from the HRS segment—driven by equipment and technical sales—as well as stable contributions from CETY Renewables in support of the Vermont Renewable Gas Project. Additionally, reduced activity in the lower-margin China NG business contributed to improved overall financial performance.

Previous wording

Also, from time to time our contracts state that the customer is not obligated to pay a final payment until the units are commissioned, i.e. a final payment of 10%. As of December 31, 2024 and 2023 we had $33,000 and 33,000 of deferred revenue, which is expected to be recognized in the second quarter of year 2025.

Current wording

Also, from time to time our contracts state that the customer is not obligated to pay a final payment until the units are commissioned, i.e. a final payment of 10%. As of June 30, 2025 and December 31, 2024 we had $33,000 and 33,000 of deferred revenue, which is expected to be recognized in the fourth quarter of year 2025.

Previous wording

Also from time to time we require upfront deposits from our customers based on the contract. As of December 31, 2024 and 2023, we had outstanding customer deposits of $128,134 and $30,061 respectively.

Current wording

Also from time to time we require upfront deposits from our customers based on the contract. As of June 30, 2025, and December 31, 2024, we had outstanding customer deposits of $82,510 and $30,061 respectively.

Previous wording

Shuya was set up as the operating entity for pipeline natural gas (PNG) and compressed natural gas (CNG) trading business, while the other two shareholders of Shuaya have large supply relationships.

Current wording

Shuya was set up as the operating entity for pipeline natural gas (PNG) and compressed natural gas (CNG) trading business, while the other two shareholders of Shuya have large supply relationships.

Previous wording

Under ASC-805-10-50-2, initial consolidation of an investee previously reported using fair value or the equity method should be accounted for prospectively as of the date the entity obtained a controlling financial interest. Therefore, the Company should provide pro forma information as if the consolidation had occurred as of the beginning of each of the current and prior comparative reporting period per

Current wording

Under ASC-805-10-50-2, initial consolidation of an investee previously reported using fair value or the equity method should be accounted for prospectively as of the date the entity obtained a controlling financial interest. Therefore, the Company should provide pro forma information as if the consolidation had occurred as of the beginning of each of the current and prior comparative reporting period per ASC 805-10-50-2(h) and Rule 3-05 of Regulation S-X.