What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-11-14 compared with 2022-08-22 · 361 added, 222 removed, 1142 unchanged (34% of the section changed)

4 unchanged sentences

30, 2022 (unaudited)

Statement Index

Consolidated Balance Sheets June 30, 2022 (unaudited) and December 31, 2021

Financial Statement

Consolidated Balance Sheets September 30, 2022 (unaudited) and December 31, 2021

Consolidated Statements of Operations (unaudited)

4 unchanged sentences

Balance Sheets

June 30, 2022

September 30, 2022

December 31, 2021

6 unchanged sentences

LWL Intangibles

Long Term Investment - Shuya

Long-term financing receivables - net

24 unchanged sentences

2,000,000,000 shares authorized;

966,675,946 and 943,569,149 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

1,482,977,289 and 943,569,149 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

Additional paid-in capital

7 unchanged sentences

Non-controlling interest

Total Stockholders’ (Deficit)

Total Stockholders’ Equity

( 1,721,712 )

3 unchanged sentences

Statements of Operations

the three and six months ended June 30, 2022 and 2021

the three and nine months ended September 30, 2022 and 2021

Cost of Goods Sold

7 unchanged sentences

Net Profit / (Loss) From Operations

( 1,140,331 )

Change in derivative liability

2 unchanged sentences

Net Profit / (Loss) Before Income Taxes

( 1,304,546 )

Income Tax Expense

Net Profit / (Loss)

( 1,322,861 )

Non-controlling interest

Net Profit / (Loss) attributable to Clean Energy Technologies, Inc.

( 1,341,920 )

Other Comprehensive Item

5 unchanged sentences

Basic and diluted weighted average number of common shares outstanding

weighted average number of common shares outstanding

1,022,795,657

weighted average number of common shares outstanding

Net Profit / (Loss) per common share basic and diluted

3 unchanged sentences

30, 2021 & 2022 (Unaudited)

Common Stock .001 Par

Preferred Stock

Common Stock to be issued

Additional Paid in

Non Controlling

Stock holders’ Deficit

December 31, 2020

$ 9,080,560 -

$ ( 17,651,482 ) -

$ ( 7,238,572 )

Shares issued for warrant conversion

7 unchanged sentences

$ ( 2,238,447 )

Shares issued for warrant conversion

1 unchanged sentence

Shares for Conversion

( 231,856 ) -

June 30, 2021

1 unchanged sentence

( 2,394,791 )

Shares issued for correction

Shares issued for inducement

September 30, 2021

( 16,812,704 )

Comprehensive

( 2,357,537 )

Preferred Stock

Common Stock to be

Stock holders’

December 31, 2020

1 unchanged sentence

$ ( 7,238,572 )

Shares issued for Reg A offering

Shares issued for S1

Subscription Receivable

Accumulated Comprehensive

March 31, 2022

Beginning balance, value

$ ( 17,651,482 )

Beginning balance

$ ( 7,238,572 )

Shares issued for warrant conversion

Shares issued for acccrued dividend

Conversion of Preferred Series D

Inducement Shares

Shares issued for correction

Shares for Conversion

Shares issued for Reg A offering

Shares issued for S1

Warrants issued Mast Hill fund

Subscription Receivable

Accumulated Comprehensive

June 30, 2022

Shares issued for cash

Shares issued for Reg A

Starting balance CETY HK

December 31, 2021

( 17,423,931 )

Ending balance

( 1,721,712 )

Ending balance, value

( 17,423,931 )

( 1,721,712 )

Comprehensive

Beginning balance value

( 1,721,712 )

issued for Reg A offering

issued for S1

Comprehensive

( 17,536,520 )

issued for Reg A offering

issued for S1

issued Mast Hill fund

Comprehensive

( 17,883,464 )

issued for Reg A offering

issued for MGW Note Conversion

issued Q3 Bridge Financing

Comprehensive

1,482,977,288

( 18,763,939 )

accompanying footnotes are an integral part of these consolidated financial statements

1 unchanged sentence

Statements of Cash Flows

the six months ended June 30 (Unaudited)

Cash Flows from Operating Activities:

Net Income / ( Loss )

the nine months ended September 30 (Unaudited)

from Operating Activities:

Net Income / (

$ ( 1,322,861 )

Adjustments to reconcile net loss to net cash used in operating activities:

Adjustments to reconcile net

loss to net cash used in operating activities:

Depreciation and amortization

1 unchanged sentence

Gain on debt settlement

Shares issued for inducement

Amortization of debt discount

Change in debt discount and Financing fees

Change in debt discount and

Financing fees

Change in derivative liability

1 unchanged sentence

Changes in assets and liabilities:

(Increase) decrease in right of use asset

(Increase) decrease in lease liability

(Increase) decrease in accounts receivable

(Increase) decrease in right

(Increase) decrease in lease

(Increase) decrease in accounts

( 1,113,760 )

(Increase) decrease in longterm

financing receivables

(Increase) decrease in inventory

(Increase) decrease in prepaid expenses

(Decrease) increase in accounts payable

Other (Decrease) increase in accrued expenses

Other (Decrease) increase in accrued expenses related party

Other (Decrease) increase in deferred revenue

Other (Decrease) increase in customer deposits

Net Cash Provided by (Used In) Operating Activities

(Increase) decrease in prepaid

(Decrease) increase in accounts

Other (Decrease) increase

in accrued expenses

Other (Decrease) increase

in accrued expenses related party

Other (Decrease) increase on equity method investment

(Decrease) increase in customer deposits

Cash Provided by (Used In) Operating Activities

( 1,929,678 )

( 1,964,231 )

Cash Flows from Investing Activities

from Investing Activities

Convertible Note Receivable

(Increase) decrease in Heze Hongyuan Natural Gas Co

Purchase property plant and equipment

Cash Flows Used In Investing Activities

Cash Flows from Financing Activities

decrease in Heze Hongyuan Natural Gas Co

(Increase) decrease in Shuya

Purchase property plant and

Flows Used In Investing Activities

( 1,388,734 )

from Financing Activities

Bank Overdraft / (Repayment)

2 unchanged sentences

Proceeds from notes payable

Proceeds from notes payable related party

Stock issued for cash

Cash Flows Provided By Financing Activities

Effect of exchange rate changes on cash

Net (Decrease) Increase in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Period

Cash and Cash Equivalents at End of Period

Supplemental Cashflow Information:

Proceeds from notes payable

related party

issued for cash

Flows Provided By Financing Activities

of exchange rate changes on cash

Net (Decrease) Increase in

Cash and Cash Equivalents

( 1,016,545 )

and Cash Equivalents at Beginning of Period

and Cash Equivalents at End of Period

Cashflow Information:

Interest Paid

Supplemental Non-Cash Disclosure

Non-Cash Disclosure

Discount on new notes

Shares issued for warrants issued

Shares issued for preferred conversions

Shares issued for debt conversion conversions

Shares to be issued for warrants

Shares issued for debt conversion

accompanying footnotes are an integral part of these consolidated financial statements

1 unchanged sentence

to Consolidated Financial Statements (Unaudited)

unaudited interim consolidated financial statements as of and for the six months ended June 30, 2022, reflect all adjustments which,

unaudited interim consolidated financial statements as of and for the nine months ended September 30, 2022, reflect all adjustments which,

in the opinion of management, are necessary to fairly state the Company’s financial position and the results of its operations

7 unchanged sentences

additional disclosure needed for a fair presentation may be determined in that context.

The results of operations for the six months

ended June 30, 2022 are not necessarily indicative of results for the entire year ending December 31, 2022.

The results of operations for the nine months

ended September 30, 2022 are not necessarily indicative of results for the entire year ending December 31, 2022.

summary of significant accounting policies of Clean Energy Technologies, Inc.

20 unchanged sentences

Clean Energy HRS (HRS), CETY Europe, and the legacy electronic manufacturing services (Electronic

Assembly) division and CETY Honk Kong.

Assembly) division and CETY Hong Kong.

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 deficit of $ 646,909 and

a working capital deficit of $ 3,208,372 as of June 30, 2022.

The company also had an accumulated deficit of $ 17,883,464 as of June 30,

The Company had a total stockholder equity of $ 166,173 and a working

capital deficit of $ 4,000,686 as of September 30, 2022.

The company also had an accumulated deficit of $ 18,763,939 as of September 30,

Therefore, there is substantial doubt about the ability of the Company to continue as a going concern.

54 unchanged sentences

amounts due, actual collections may differ from the estimated amounts.

As of June 30, 2022, and December 31, 2021, we had a reserve for

potentially un-collectable accounts receivable of $ 75,000 .

As of September 30, 2022, and December 31, 2021, we had a reserve

for potentially un-collectable accounts receivable of $ 75,000 .

Our policy for reserves for our long-term financing receivables is determined

on a contract-by-contract basis and considers the length of the financing arrangement.

As of June 30, 2022, and December 31, 2021, we

had a reserve for potentially un-collectable long-term financing receivables of $ 247,500 and $ 247,500 respectively.

(4) customers accounted for approximately 98 % of accounts receivable on June 30, 2022.

As of September 30, 2022, and December 31, 2021,

we had a reserve for potentially un-collectable long-term financing receivables of $ 247,500 and $ 247,500 respectively.

(4) customers accounted for approximately 98 % of accounts receivable on September 30, 2022.

Our trade accounts primarily represent unsecured

Historically, our bad debt write-offs related to these trade accounts have been insignificant.

of June 30, 2022, and December 31, 2021 we had a lease asset that was purchased from General Electric with a value of $ 1,309,527 , however

due the purchase price allocation, we recognized a value of $ 217,584 .

The lease is due to be commissioned in the first quarter of 2022

and will generate approximately $ 20,000 per month for 120 months .

of September 30, 2022, and December 31, 2021 we had a lease asset that was purchased from General Electric with a value of $ 1,309,527 ,

however due the purchase price allocation, we recognized a value of $ 217,584 .

The lease is due to be commissioned in the first quarter

of 2022 and will generate approximately $ 20,000 per month for 120 months .

See note 3 for additional information.

5 unchanged sentences

Any inventory write offs are charged to the reserve account.

As of June 30, 2022, and December 31, 2021, we had a reserve for

potentially obsolete inventory of $ 321,104 .

As of September 30, 2022, and December 31, 2021, we had a reserve

for potentially obsolete inventory of $ 321,104 .

and Equipment

44 unchanged sentences

principal obtains control over any one of the following (ASC 606-10-55-37A):

good or another asset from the other party which the entity then transfers to the customer.

Note that momentary control before transfer

to the customer may not qualify.

right to a service to be performed by the other party, which gives the entity the ability to direct that party to provide the service

to the customer on the entity’s behalf.

good or service from the other party that it then combines with other goods or services in providing the specified good or service

to the customer.

A good or another asset

from the other party which the entity then transfers to the customer.

Note that momentary control before transfer to the customer

may not qualify.

A right to a service to

be performed by the other party, which gives the entity the ability to direct that party to provide the service to the customer on

the entity’s behalf.

A good or service from

the other party that it then combines with other goods or services in providing the specified good or service to the customer.

the entity obtains control over one of the above before the good or service is transferred to a customer, the entity could be considered

7 unchanged sentences

following five steps are applied to achieve that core principle for our HRS and CETY Europe Divisions:

the contract with the customer

the performance obligations in the contract

the transaction price

the transaction price to the performance obligations in the contract

revenue when the company satisfies a performance obligation

Identify the contract with the customer

Identify the performance obligations in the contract

Determine the transaction price

Allocate the transaction price to the performance obligations

in the contract

Recognize revenue when the company satisfies a performance

following steps are applied to our legacy engineering and manufacturing division:

generate a quotation

receive purchase orders from our customers.

build the product to their specification

invoice at the time of shipment

terms are typically Net 30 days

We generate a quotation

We receive purchase orders from our customers.

We build the product to their specification

We invoice at the time of shipment

The terms are typically Net 30 days

following step is applied to our CETY HK business unit:

HK is primarily responsible for fulfilling the contract / promise to provide the specified good or service.

CETY HK is primarily responsible for fulfilling the

contract / promise to provide the specified good or service.

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, 2022 and December 31, 2021 we had $ 33,000 and 33,000 of deferred revenue, which is expected to

be recognized in the fourth quarter of year 2022.

As of September 30, 2022 and December 31, 2021 we had $ 33,000 and 33,000 of deferred revenue, which is expected

to be recognized in the fourth quarter of year 2022.

from time to time we require upfront deposits from our customers based on the contract.

As of June 30, 2022 and December 31, 2021, we

had outstanding customer deposits of $ 0 and $ 24,040 respectively.

As of September 30, 2022 and December 31, 2021,

we had outstanding customer deposits of $ 0 and $ 24,040 respectively.

Value of Financial Instruments

11 unchanged sentences

Company uses to measure fair value:

Quoted prices in active markets for identical assets or liabilities.

Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities;

quoted prices in markets

that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full

term of the related assets or liabilities.

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets

or liabilities.

The Company’s derivative liabilities have been valued as Level 3 instruments.

We value the derivative liability

using a lattice model, with a volatility of 84 % and using a risk free interest rate of 0.15 %

Quoted prices

in active markets for identical assets or liabilities.

Observable inputs

other than Level 1 prices such as quoted prices for similar assets or liabilities;

quoted prices in markets that are not active or

other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related

assets or liabilities.

Unobservable inputs

that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s

derivative liabilities have been valued as Level 3 instruments.

We value the derivative liability using a lattice model, with a volatility

of 84 % and using a risk free interest rate of 0.15 %

Company’s financial instruments consist of cash, prepaid expenses, inventory, accounts payable, convertible notes payable, advances

2 unchanged sentences

convertible notes payable and advances from related parties approximate their carrying amounts due to the short-term nature of these

carrying amounts of the Company’s financial instruments as of June 30, 2022 and December 31, 2021 reflect:

carrying amounts of the Company’s financial instruments as of September 30, 2022 and December 31, 2021 reflect:

SCHEDULE OF FAIR VALUE OF CONVERTIBLE NOTES DERIVATIVE LIABILITY

Fair value of convertible notes derivative liability – June 30, 2022

Fair value of convertible notes derivative liability – September 30, 2022

Fair value of convertible notes derivative liability – December 31, 2021

Fair value of convertible notes derivative liability

carrying amount of accounts payable and accrued expenses are considered to be representative of their respective fair values because

of the short-term nature of these financial inst ruments.

of the short-term nature of these financial instruments.

Currency Translation and Comprehensive Income (Loss)

12 unchanged sentences

in additional paid-in capital and distributions to stockholders.

Equity Method Investment

In July 2022, JHJ and other three shareholders agreed

to form and make total capital contribution of RMB 20 million ($ 2.81 million) with latest contribution due date in February 2066 into

Sichuan Hongzuo Shuya Energy Limited (“Shuya”), JHK owns 20 % of Shuya.

In August 2022, JHJ purchased 100 % ownership of Sichuan

Shunengwei Energy Technology Limited (“SSET”) for $ 0 , who owns 29 % of Shuya;

Shunengwei is a holding company and did not have

any operations nor made any capital contribution into Shuya as of the ownership purchase date by JHJ;

Right after the ownership purchase

of SSET, JHJ ultimately owns 49 % of Shuya.

Shuya was setup 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.

The Company has determined

that Shuya is not a VIE and has evaluated its consolidation analysis under the voting interest model.

Because the Company does not own

greater than 50% of the outstanding voting shares, either directly or indirectly, it has accounted for its investment in Shuya

under the equity method of accounting .

Under this method, the investor (“JHJ”) recognizes its share of the profits and losses of the investee (“Shuya”)

in the periods when these profits and losses are also reflected in the accounts of the investee.

Any profit or loss recognized by the

investing entity appears in its income statement.

Also, any recognized profit increases the investment recorded by the investing entity,

while a recognized loss decreases the investment.

JHJ made a capital contribution of RMB 3.91 million ($ 0.55

million) into Shuya during the three months ended September 30, 2022.

Shuaya did not have any revenue yet but only incurred $ 27,836 operating

expenses as of September 30, 2022;

accordingly, JHJ recorded $ 13,640 investment loss from investment of Shuya for the three months ended

September 30 ,2022.

JHJ’s investment in Shuya was decreased to $ 536,994 as of September 30, 2022.

Profit (Loss) per Common Share

profit / (loss) per share is computed on the basis of the weighted average number of common shares outstanding.

At June 30, 2022, we

had outstanding common shares of 966,675,946 used in the calculation of basic earnings per share.

Basic Weighted average common shares

and equivalents for the three months ended June 30, 2022 and June 30, 2021 were 965,929,205 and 895,498,243 respectively.

30, 2022, we had convertible notes, convertible into approximately 564,920,304 of additional common shares, 14,375,000 common stock warrants.

Fully diluted weighted average common shares and equivalents were withheld from the calculation for the three months ended June 30, 2022

and June 30, 2021 as they were considered anti-dilutive.

At September 30, 2022,

we had outstanding common shares of 1,482,977,288 used in the calculation of basic earnings per share.

Basic Weighted average common

shares and equivalents for the three months ended September 30, 2022 and September 30, 2021 were 1,482,977,288 and 943,569,149 respectively.

As of September 30, 2022, we had convertible notes, convertible into approximately 84,016,076 of additional common shares, 23,472,222

common stock warrants.

Fully diluted weighted average common shares and equivalents were withheld from the calculation for the three

months ended September 30, 2022 and September 30, 2021 as they were considered anti-dilutive.

and Development

had no amounts of research and development R&D expense during the three & six months ended June 30, 2022 and 2021.

had no amounts of research and development R&D expense during the three & nine months ended September 30, 2022 and 2021.

Codification Topic 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an

enterprise’s reportable segments.

The Company has

four reportable segments:

Clean Energy HRS (HRS), CETY Europe and the legacy electronic manufacturing services division and CETY HK.

segments are determined based on several factors, including the nature of products and services, the nature of production processes,

customer base, delivery channels and similar economic characteristics.

Refer to note 1 for a description of the various product

categories manufactured under each of these segments.

The Company has four reportable segments:

Clean Energy HRS (HRS), CETY Europe and the legacy

electronic manufacturing services division and CETY HK.

The segments are determined based on several factors, including the nature of

products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics.

to note 1 for a description of the various product categories manufactured under each of these segments.

operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income.

4 unchanged sentences

SCHEDULE OF SEGMENT REPORTING

for the six months ended June 30

for the nine months ended

Manufacturing and Engineering

14 unchanged sentences

Net Loss before income tax

( 1,272,481 )

Company has adopted the use of Statement of Financial Accounting Standards No.

38 unchanged sentences

requisite service.

For the three months ended June 30, 2022 and 2021 we had $ 0 in share-based expense, due to the issuance of common

As of June 30, 2022, we had no further non-vested expense to be recognized.

For the three months ended September 30, 2022 and 2021 we had $ 0 in share-based expense, due to the issuance of common

As of September 30, 2022, we had no further non-vested expense to be recognized.

Income taxes are not currently due since we have had losses since inception of Clean Energy Technologies.

15 unchanged sentences

reporting purposes and the amounts used for income tax reporting purposes.

of June 30, 2022, we had a net operating loss carry-forward of approximately $( 9,067,587 ) and a deferred tax asset of $ 2,720,276 using

the statutory rate of 30%.

of September 30, 2022, we had a net operating loss carry-forward of approximately $( 10,108,327 ) and a deferred tax asset of $ 3,032,498

using the statutory rate of 30 %.

The deferred tax asset may be recognized in future periods, not to exceed 20 years.

However, due to the uncertainty

of future events we have booked valuation allowance of $( 2,720,276 ).

FASB ASC 740 prescribes recognition threshold and measurement attributes

for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

On June 30, 2022 the Company had not taken any tax positions that would require disclosure under FASB ASC 740.

However, due to

the uncertainty of future events we have booked valuation allowance of $( 3,032,498 ).

FASB ASC 740 prescribes recognition threshold and

measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax

FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods,

disclosure and transition.

On September 30, 2022 the Company had not taken any tax positions that would require disclosure under FASB

SCHEDULE OF DEFERRED TAX ASSET

June 30, 2022

September 30, 2022

December 31, 2021

52 unchanged sentences

3 – ACCOUNTS AND NOTES RECEIVABLE

SCHEDULE OF ACCOUNTS AND NOTES RECEIVABLE

June 30, 2022

OF ACCOUNTS AND NOTES RECEIVABLE

September 30, 2022

December 31, 2021

3 unchanged sentences

SCHEDULE OF LEASE RECEIVABLE ASSET

June 30, 2022

September 30, 2022

December 31, 2021

Company is currently modifying the assets subject to lease to meet the provisions of the agreement, and as of June 30, 2022 any collection

on the lease payments was not yet considered probable, resulting in no derecognition of the underlying asset and no net lease investments

recognized on the sales-type lease pursuant to ASC 842-30-25-3.

Company is currently modifying the assets subject to lease to meet the provisions of the agreement, and as of September 30, 2022 any

collection on the lease payments was not yet considered probable, resulting in no derecognition of the underlying asset and no net lease

investments recognized on the sales-type lease pursuant to ASC 842-30-25-3.

SCHEDULE OF DERECOGNITION OF UNDERLYING ASSETS OF FINANCING RECEIVABLE

June 30, 2022

September 30, 2022

December 31, 2021

8 unchanged sentences

SCHEDULE OF INVENTORIES

June 30, 2022

September 30, 2022

December 31, 2021

Less reserve for uncollectable accounts

Inventory is pledged to Nations Interbanc, our line of credit.

2 unchanged sentences

SCHEDULE OF PROPERTY AND EQUIPMENT

June 30, 2022

September 30, 2022

December 31, 2021

5 unchanged sentences

Net Fixed Assets

Depreciation Expense for the three months ended June 30, 2022 and 2021 was $ 4,550 and $ 5,104 respectively.

Depreciation Expense for the three months ended September 30, 2022 and 2021 was $ 7,519 and $ 8,073 respectively.

Property Plant and Equipment is pledged to Nations Interbanc, our line of credit.

2 unchanged sentences

SCHEDULE OF INTANGIBLE ASSETS

June 30, 2022

September 30, 2022

December 31, 2021

2 unchanged sentences

Net Fixed Assets

Amortization Expense for the six months ended June 30, 2022 and 2021 was $ 2,969 and 2,969 respectively.

Amortization Expense for the nine months ended September 30, 2022 and 2021 was $ 22,557 and $ 24,219 respectively.

on the foregoing analysis of the facts surrounding the Company’s acquisition of LWL, it is the Company’s position that the

33 unchanged sentences

8 – ACCRUED EXPENSES

SCHEDULE OF ACCRUED EXPENSES

June 30, 2022

OF ACCRUED EXPENSES

September 30, 2022

December 31, 2021

32 unchanged sentences

SCHEDULE OF NOTES PAYABLE

June 30, 2022

September 30, 2022

December 31, 2021

43 unchanged sentences

The balance on this note as of June 30, 2022 was $ 170,060 .

May 5, 2017 we entered into a nine-month convertible note payable for $ 78,000 ,

which accrues interest at the rate of 12 %

It is not convertible until three months after its issuance and has a conversion rate of sixty one percent ( 61 %)

of the lowest closing bid price (as reported by Bloomberg LP) of our common stock for the fifteen ( 15 )

Trading Days immediately preceding the date of conversion.

On November 6, 2017 this note was assumed and paid in full at a premium for

a total of $ 116,600

by Cybernaut Zfounder Ventures.

An amended term

were added to the original note with the interest rate of 14 %.

This note matured on February

21 st of 2018 and is currently in default.

As of June 30, 2022, the outstanding balance due was $ 91,600 .

May 24, 2017 we entered into a nine-month convertible note payable for $ 32,000 ,

which accrues interest at the rate of 12 %

It is not convertible until three months after its issuance and has a conversion rate of fifty-five eight percent ( 58 %)

of the lowest closing bid price (as reported by Bloomberg LP) of our common stock for the fifteen ( 15 )

Trading Days immediately preceding the date of conversion.

On November 6, 2017 this note was assumed and paid in full at a premium for

a total of $ 95,685 ,

by Cybernaut Zfounder Ventures.

June 30, 2022 the company entered into a promissory note in the amount of $ 252,928.44 with and interest rate of 10 % per annum and a default

interest rate of 22% per annum.

This note is due in full on June 30, 2023 and has mandatory monthly payments of $ 27,822.13 .

had an OID of $ 25,293 and recorded as finance fee expense.

In the event of the default, at the option of the Investor, the note may be

converted into shares of common stock of the company.

This is note is convertible, but not until a contingent event of default has taken

place, none of which have occurred as of the date of this filing.

The balance on this note as of September 30, 2022 was $ 222,577.30

July 13, 2022 the company entered into a promissory note in the amount of $ 159,450 with and interest rate of 10 % per annum and a default

interest rate of 22% per annum.

This note is due in full on July 13, 2023 and has mandatory monthly payments of $ 17,539.50 .

had an OID of $ 16,447.00 and recorded as finance fee expense.

In the event of the default, at the option of the Investor, the note may

be converted into shares of common stock of the company.

This is note is convertible, but not until a contingent event of default has

taken place, none of which have occurred as of the date of this filing.

The balance on this note as of September 30, 2022 was $ 140,316

May 5, 2017 we entered into a nine-month convertible note payable for $ 78,000 , which accrues interest at the rate of 12 % per annum.

is not convertible until three months after its issuance and has a conversion rate of sixty one percent ( 61 %) of the lowest closing bid

price (as reported by Bloomberg LP) of our common stock for the fifteen ( 15 ) Trading Days immediately preceding the date of conversion.

On November 6, 2017 this note was assumed and paid in full at a premium for a total of $ 116,600 by Cybernaut Zfounder Ventures.

term were added to the original note with the interest rate of 14 %.

This note matured on February 21 st of 2018 and is currently

As of September 30, 2022, the outstanding balance due was $ 91,600 .

May 24, 2017 we entered into a nine-month convertible note payable for $ 32,000 , which accrues interest at the rate of 12 % per annum.

It is not convertible until three months after its issuance and has a conversion rate of fifty-five eight percent ( 58 %) of the lowest

closing bid price (as reported by Bloomberg LP) of our common stock for the fifteen ( 15 ) Trading Days immediately preceding the date

of conversion.

On November 6, 2017 this note was assumed and paid in full at a premium for a total of $ 95,685 , by Cybernaut Zfounder

An amended term was added to the original note with the interest rate of 14 %.

This note matured on February

26 th , 2018 and is currently in default.

As of June 30, 2022, the outstanding balance due was $ 95,685

This note matured on February 26 th ,

2018 and is currently in default.

As of September 30, 2022, the outstanding balance due was $ 95,685

October 30, 2019 we entered into a convertible note payable for $ 103,000 , with a maturity date of October 30, 2020 , which accrues interest

116 unchanged sentences

Mast Hill with registration rights.

August 5, 2022, we entered into a Securities Purchase Agreement with Jefferson Street Capital, LLC (Jefferson) pursuant to which the

Company issued to Jefferson a $ 138,888 Convertible Promissory Note, due August 5, 2023 (the “Note”) for a purchase price

of $ 125,000.00 plus an original issue discount in the amount of $ 13,888.88 , and an interest rate of fifteen percent ( 15 %) per annum.

Jefferson is entitled to purchase 1,736,111 shares of commons stock per the warrant agreement at the exercise price of $ 0.04 .

Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Jefferson as well as providing

Jefferson with registration rights.

August 17, 2022, we entered into a Securities Purchase Agreement with Firstfire Global Opportunities Fund LLC (“Firstfire”)

pursuant to which the Company issued to Mast Hill a $ 150,000 Convertible Promissory Note, due August 17, 2023 (the “Note”)

for a purchase price of $ 135,000.00 plus an original issue discount in the amount of $ 15,000.00 , and an interest rate of fifteen percent

( 15 %) per annum.

Firstfire is entitled to purchase 1,875,000 shares of commons stock per the warrant agreement at the exercise price

The Securities Purchase Agreement provides customary representations, warranties and

covenants of the Company and Firstfire as well as providing Firstfire with registration rights.

September 1, 2022, we entered into a Securities Purchase Agreement with Pacific Pier Capital, LLC (Pacific) pursuant to which the Company

issued to Pacific a $ 138,888 Convertible Promissory Note, due August 5, 2023 (the “Note”) for a purchase price of $ 125,000.00

plus an original issue discount in the amount of $ 13,888.88 , and an interest rate of fifteen percent ( 15 %) per annum.

Pacific is entitled

to purchase 1,736,111 shares of commons stock per the warrant agreement at the exercise price of $ 0.04 .

Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Pacific as well as providing

Pacific with registration rights.

September 16, 2022, we entered into a Securities Purchase Agreement with Mast Hill, L.P.

(Mast Hill”) pursuant to which the Company

issued to Mast Hill a $ 300,000 Convertible Promissory Note, due September 16, 2023 (the “Note”) for a purchase price of $ 270,000.00

plus an original issue discount in the amount of $ 30,000.00 , and an interest rate of fifteen percent ( 15 %) per annum.

Mast Hill Fund

is entitled to purchase 3,750,000 shares of commons stock per the warrant agreement at the exercise price of $ 0.04 .

Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Mast Hill as well as providing

Mast Hill with registration rights.

due to Convertible Notes

SCHEDULE OF CONVERTIBLE NOTES

June 30, 2022

September 30, 2022

December 31, 2021

11 unchanged sentences

SCHEDULE OF FAIR VALUE OF DERIVATIVE LIABILITY

June 30, 2022

September 30, 2022

December 31, 2021

12 unchanged sentences

termination clause, we are treating this as a month-to-month lease .

of June 30, 2022

of September 30, 2022

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

2 unchanged sentences

Net Lease Liability

lease expense for the six months ended June 30, 2022, and 2021 was $ 173,480 and $ 168,910 respectively.

lease expense for the nine months ended September 30, 2022, and 2021 was $ 260,262 and $ 254,708 respectively.

ASU 2016-02 “Leases (Topic 842)” – In February 2016, the FASB issued ASU 2016-02, which requires lessees to recognize

108 unchanged sentences

proceeds and expensed $ 34,500 in legal and financing fees as a result.

On September 21, 2022 MGW I converted $ 1,548,904 from

the outstanding balance of their convertible note into 516,301,343 shares of company’s common stock.

Articles of Incorporation authorize us to issue 2,000,000,000 shares of common stock, par value $ 0.001 per share.

As of June 30, 2022

As of Sept 30, 2022

there were 1,482,977,289 shares of common stock outstanding.

113 unchanged sentences

These warrants expire on February 23, 2022 .

May 6, 2022, we issued 9,375,000 of warrant shares in connection with the issuance of the promissory note in the principal amount of

$ 750,000.00 to Mast Hill Fund at the exercise price per share of 0.04 .

that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance

Date, then the Exercise Price shall equal 120% of the offering price per share of Common Stock.

May 6, 2022, we issued 9,375,000

of warrant shares in connection with the issuance

of the promissory note in the principal amount of $ 750,000.00

to Mast Hill Fund at the exercise price per share

However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after

the Issuance Date, then the Exercise Price shall equal 120 % of the offering price per share of Common Stock.

On August 5, 2022, we issued 1,736,111 of warrant

shares in connection with the issuance of the promissory note in the principal amount of $ 138,889 to Jefferson Street at the exercise

price per share of 0.04 .

However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty

(180) calendar days after the Issuance Date, then the Exercise Price shall equal 120 % of the offering price per share of Common Stock.

On August 17, 2022, we issued 1,875,000 of warrant

shares in connection with the issuance of the promissory note in the principal amount of $ 150,000 to First Fire at the exercise price

per share of 0.04 .

However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180)

calendar days after the Issuance Date, then the Exercise Price shall equal 120 % of the offering price per share of Common Stock.

On September 1, 2022, we issued 1,736,111 of warrant

shares in connection with the issuance of the promissory note in the principal amount of $ 138,889 to Pacific Pier at the exercise price

per share of 0.04 .

However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180)

calendar days after the Issuance Date, then the Exercise Price shall equal 120 % of the offering price per share of Common Stock.

On September 16, 2022, we issued 3,750,000 of warrant

shares in connection with the issuance of the promissory note in the principal amount of $ 300,000 to Mast Hill Fund at the exercise price

per share of 0.04 .

However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180)

calendar days after the Issuance Date, then the Exercise Price shall equal 120 % of the offering price per share of Common Stock.

OF WARRANT ACTIVITY

2 unchanged sentences

Outstanding December 31, 2021

Outstanding June 30, 2022

Outstanding September 30, 2022

currently have no outstanding stock options.

5 unchanged sentences

Company prior to joining the company.

The amount of parts purchases in the 1 st quarter of 2022 was $ 8,180 .

The amount of parts purchases in the 3 rdt quarter of 2022 was $ 9351 .

Our Board of Directors

32 unchanged sentences

limit until we have increased the Authorized shares to the Board approved limit of 2 billion shares.

This note converted into 1,385,764

of company’s common stock on September 21, 2022.

February 8, 2018 the Corporation entered a Convertible Promissory Note in the principal amount of $ 153,123 , due October 8, 2018, with

15 unchanged sentences

or a beneficial conversion feature .

This note was converted into 54,380,010 of company’s common stock on September 21, 2022.

May 11 th this note was amended and the maturity date was extended to October 8, 2023 , and the restriction on the conversion

of the note was removed if the holder of this note holds over 9.9% of the Company’s common stock.

June 24, 2021 MGW I converted $ 75,000 of the outstanding balance of this note into 25,000,000 shares of company’s common stock

On June 24, 2021 MGW I converted

$ 75,000 of the outstanding balance of this note into 25,000,000 shares of company’s common stock

May 31, 2019, we entered into a subscription agreement pursuant to which the Company agreed to sell 168,000,000 units (each a “Unit”

8 unchanged sentences

The outstanding balance on this

advance on June 30, 2022 is $ 167,975

advance on September 30, 2022 is $ 163,580 .

March 24, 2021, the Company transferred $ 500,000 to MGWI, an affiliate of the majority stockholder of the Company to hold in trust for

our investment in two planned ventures in China.

The two potential investments are still pending.

June 24, 2021 MGW I converted $ 75,000 from the outstanding balance of their convertible note into 25,000,000 shares of company’s

The investment was used for the acquisition of LWL.

September 21, 2022 MGW I converted $ 1,548,904 from the outstanding balance of their convertible note into 516,301,343 shares of company’s

common stock.

14 - WARRANTY

the quarter ended June 30, 2022, and for the year ended December 31, 2021 there was no change in our warranty liability.

the quarter ended September 30, 2022, and for the year ended December 31, 2021 there was no change in our warranty liability.

our warranty liability based on past experiences and estimated replacement cost of material and labor to replace the critical turbine

5 unchanged sentences

Ashfield AG (“AG”).

The purpose of the joint venture is the development of a pyrolysis plant established to convert woody

feedstock into electricity and BioChar by using high temperature ablative fast pyrolysis reactor for which Clean Energy Technology, Inc.

The purpose of the joint venture was for the development of a pyrolysis plant established to convert

woody feedstock into electricity and BioChar by using high temperature ablative fast pyrolysis reactor for which Clean Energy Technology,

holds the license for.

The CRA is located in Ashfield, Massachusetts.

Based upon the terms of the members’ agreement, the CETY

Capital LLC owns a 75 % interest and AG owns a 25 % interest in Ashfield Renewables Ag Development LLC.

The agreement with CETY Renewables

Ashfield has been terminated and we are in the process of negotiating a new agreement.

consolidated financial statements reflect 100% of the assets and liabilities of CRA and report the current non-controlling interest of

The full results of CRA operations are reflected in the statement of income with the elimination of the non-controlling interest

Based upon the terms of the members’ agreement, the

CETY Capital LLC owned a 75 % interest and AG owned a 25 % interest in Ashfield Renewables Ag Development LLC.

The agreement with CETY

Renewables Ashfield has been terminated.

consolidated financial statements have deconsolidated the CRA business unit.

The Liabilities of CRA has been transferred to Vermont Renewable

Gas LLC (“VRG”), a newly formed entity.

CETY retains 49% equity in VRG.

16 – THE STATUTORY RESERVES

43 unchanged sentences

17 – SUBSEQUENT EVENTS

June 30, 2022 the company entered into a promissory note in the amount of $ 252,928.44 with and interest rate of 10 % per annum and a default

interest rate of 22% per annum.

This note is due in full on June 30, 2023 and has mandatory monthly payments of $ 27,822.13 .

had an OID of $ 25,293 and recorded as finance fee expense.

In the event of the default, at the option of the Investor, the note may be

converted into shares of common stock of the company.

This is note is convertible, but not until a contingent event of default has taken

place, none of which have occurred as of the date of this filing.

The balance on this note as of June 30, 2022 was $ 252,928.44 .

July 13, 2022 the company entered into a promissory note in the amount of $ 159,450 with and interest rate of 10 % per annum and a default

October 25, 2022 the company entered into a promissory note in the amount of $ 114,850 with and interest rate of 10 % per annum and a default

interest rate of 22% per annum.

This note is due in full on July 13, 2023 and has mandatory monthly payments of $ 17,539.50 .

This note is due in full on October 25, 2023 and has mandatory monthly payments of $ 12,633.50 .

had an OID of $ 11,850.00 and recorded as finance fee expense.

3 unchanged sentences

taken place, none of which have occurred as of the date of this filing.

August 12, 2022, Clean Energy Technology, Inc., a Nevada corporation (the “Company”), entered into a Securities Purchase

Agreement with Jefferson Street Capital, LLC (“Jefferson”) pursuant to which the Company issued to Jefferson a $ 138,888.88

Convertible Promissory Note, due August 5, 2023 (the “Note”) for a purchase price of $ 125,000.00 plus an original issue discount

in the amount of $ 13,888.88 , and an interest rate of fifteen percent ( 15 %) per annum.

The Company issued Jefferson a five year warrant

(“Warrant”) to purchase 1,736,111 shares of Common Stock in connections with the transactions described above.

August 17, 2022, Clean Energy Technology, Inc., a Nevada corporation (the “Company”), entered into a Securities Purchase

Agreement with First Fire Global Opportunities Fund, LLC (“Firstfire”) pursuant to which the Company issued to Firstfire

a $ 150,000.00 Convertible Promissory Note, due August 17, 2023 (the “Note”) for a purchase price of $ 135,000.00 plus an original

The balance on this note as of September 30, 2022 was $ 114,850 .

On November 11, 2022, we

entered into a Securities Purchase Agreement with Mast Hill, L.P.

(Mast Hill”) pursuant to which the Company issued to Mast Hill

a $ 95,000 Convertible Promissory Note, due November 11, 2023 (the “Note”) for a purchase price of $ 85,500.00 plus an original

issue discount in the amount of $ 9,500.00 , and an interest rate of fifteen percent ( 15 % ) per annum.

The Company issued Firstfire a five-year

warrant (“Warrant”) to purchase 1,875,000 shares of Common Stock in connections with the transactions described above.

Mast Hill Fund is entitled to purchase

, 1,187,500 shares of commons stock per the warrant agreement at the exercise price of $ 0.04 .

Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Mast Hill as well as providing

Mast Hill with registration rights.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements