10-Q: Clean Energy Technologies Reports Q1 2026 Results

Clean Energy Technologies, Inc. reported a net loss of $662,200 for the first quarter of 2026, with revenues increasing to $783,705.

Summary

• Clean Energy Technologies, Inc. reported a net loss of $662,200 for the three months ended March 31, 2026, compared to a net loss of $660,058 for the same period in 2025.
• Total revenue for the first quarter of 2026 was $783,705, an increase from $441,940 in the first quarter of 2025, primarily driven by higher revenue from the natural gas business in China.
• Gross profit for the quarter was a loss of $13,930, a decrease from a gross profit of $411,878 in the prior year's comparable period, attributed to a shift in revenue mix towards lower-margin natural gas sales and the absence of higher-margin clean energy system sales.
• Operating expenses decreased to $705,354 from $824,656 in the prior year, mainly due to lower salary and related personnel costs.
• The company's equity increased to $7,030,646 as of March 31, 2026, from $6,246,597 as of December 31, 2025, attributed to higher investments and interest income.
• The company is actively pursuing additional debt and equity financing to address its going concern status, alongside strategic partnerships and project-level financing.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the continued net loss, negative gross profit, and ongoing going concern issues, despite revenue growth.

Positives

• Total revenue increased by approximately 77% to $783,705 in Q1 2026 from $441,940 in Q1 2025.
• Operating expenses decreased by approximately 14.5% to $705,354 in Q1 2026 from $824,656 in Q1 2025.
• Total stockholders' equity increased to $7,030,646 as of March 31, 2026, from $6,246,597 as of December 31, 2025.

Negatives

• The company reported a net loss of $662,200 for the quarter ended March 31, 2026.
• Gross profit turned negative, resulting in a loss of $13,930 for the quarter, compared to a profit of $411,878 in the prior year.
• The company's Heat Recovery Solutions segment saw revenue drop significantly to $7,538 from $262,354 year-over-year.
• The CETY Renewables segment generated no revenue in the quarter, compared to $176,105 in the prior year, due to pending regulatory approvals.
• The company has substantial doubt about its ability to continue as a going concern, with an accumulated deficit of $35,962,199 as of March 31, 2026.

Risks

• The company is not in compliance with Nasdaq's minimum bid price requirement and annual shareholder meeting requirement, facing potential delisting.
• Failure to regain compliance with Nasdaq listing requirements could impair the company's ability to raise capital and may constitute an event of default under outstanding promissory notes.
• The company's common stock may be delisted from Nasdaq, which could reduce liquidity, market price, and the ability to raise equity financing.
• The company's ability to continue as a going concern is subject to obtaining additional debt and equity financing and generating positive cash flow from operations.

Future Outlook

The company anticipates stronger revenue contributions from its Waste-to-Energy, Heat Recovery, and EPC segments with higher margins. Demand for Heat Recovery solutions is accelerating, and the company is scaling its Engineering and project management operations. The company expects to continue executing its strategy to build sustained and profitable growth by providing integrated solutions, expanding global sales and marketing, production, and R&D, and seeking synergistic acquisition opportunities.

Management Comments

• Management believes the 4-segment strategy has created many operational synergies and cross-selling opportunities.
• The global commitment to renewable energy from governments worldwide is a main macro factor benefiting the company.
• A continuously improving global supply chain and lowering costs are potential catalysts for the company.

Industry Context

StockSavvy.ai notes that Clean Energy Technologies is navigating a dynamic clean energy sector, characterized by increasing global commitment to renewables and evolving legislative landscapes. The company's diversified strategy across Heat Recovery, Waste-to-Energy, EPC, and Natural Gas Trading aims to capitalize on these trends, though margin pressures and regulatory hurdles are evident.

Legal Proceedings

• The company is not currently involved in any legal proceedings that management believes will have a material adverse effect on its financial position or results of operations.

Related Party Transactions

• Accounts receivable from Vermont Renewable Gas (VRG) totaled $2,350,797 as of March 31, 2026.
• Amounts due from related parties included $159,563 from Shuya and $178,261 due from the CFO as a salary advance as of March 31, 2026.
• The company owed $63,950 to its CEO for working capital advances as of March 31, 2026.
• Noblebear Investment Holdings LLC, a related party, advanced $600,000, for which the company issued convertible promissory notes.

Stakeholder Impact

• Shareholders may experience dilution due to ongoing reliance on equity sales for funding.
• Potential delisting from Nasdaq could negatively impact share liquidity and the ability to raise capital.
• Creditors may be concerned about the company's going concern status and potential default events under promissory notes if delisting occurs.

Next Steps

• Regain compliance with Nasdaq listing requirements.
• Secure additional debt and equity financing.
• Obtain final approval from the Vermont Public Utility Commission for the Waste-to-Energy facility.
• Continue to scale Engineering and project management operations.
• Pursue strategic partnerships and joint ventures.

Key Dates

Recommendation

The company continues to face significant financial challenges, including a net loss, negative gross profit, and a persistent going concern issue. The ongoing Nasdaq compliance issues and the substantial amount of convertible debt and derivative liabilities present considerable risks. While revenue has increased, it is driven by lower-margin segments, and critical projects face regulatory delays. Without a clear path to profitability and improved financial stability, a sell recommendation is warranted.

Keywords

Clean Energy, Renewable Energy, Natural Gas Trading, Heat Recovery, Waste to Energy, EPC Services, Form 10-Q