What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-11-14 compared with 2022-08-22 · 129 added, 74 removed, 187 unchanged (52% of the section changed)

47 unchanged sentences

utilizing its products and clean energy solutions.

Capital retains 75% ownership interest in Ashfield Renewables Ag Development LLC, which has established CETY Renewables Ashfield LLC

a wholly owned low carbon energy company developing a biomass plant.

Capital retains 49% ownership interest in Vermont Renewable Gas LLC established to develop a biomass plant in Vermont utilizing CETY’s

High Temperature Ablative Pyrolysis system.

Energy Technologies (H.K.) Limited., a wholly owned subsidiary of Clean Energy Technologies Inc.

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Company has four reportable segments:

Clean Energy HRS (HRS), CETY Europe, CETY Renewables Ashfield, CETY HK and the legacy engineering

and manufacturing services division.

Clean Energy HRS (HRS) and CETY Europe, CETY Renewables, CETY HK and the legacy engineering and

manufacturing services division.

Company’s business and operating results are directly affected by changes in overall customer demand, operational costs and performance

62 unchanged sentences

of 2022, the Company had three reportable segments but added the CETY HK segment to reflect its recent new businesses in China.

of Operating Results the six months Ended June 30, 2022 Compared to the same period in 2021

of Operating Results the three months ended September 30, 2022 Compared to the same period in 2021

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, 2022 and used $1,233,918 in net cash from operating activities for the six months ended June 30, 2022.

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.

six months ended June 30, 2022;

we had a net loss of $459,531 compared to a net profit of $836,728 for the same period in 2021.

increase in the net profit in 2021 was mainly due to the increase in gain on derivative in 2021, The three months ended June 30, 2022;

our revenue was $1,747,701 compared to $155,884 for the same period in 2021.

For the six months ended June 30, 2022, our gross margin

The Company had a total stockholder’s 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, 2022 and used $1,016,545 in net cash from operating activities for the three months ended September 30, 2022.

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.

three months ended September 30, 2022;

we had a net loss of $540,986 compared to a net loss of $277,664 for the same period in 2021.

The increase in the net loss in 2022 was mainly due to the increase in professional fees including legal & accounting due to the

expenses associated with the IPO up listing to NASDAQ and lower sales in the quarter.

The three months ended September 30, 2022;

revenue was $44,629 compared to $575,545 for the same period in 2021.

For the three months ended September 30, 2022, our gross margin

was 58% compared to 52% for the same period in 2021.

For the six months ended June 30, 2022, our operating expense was $1,154,358 compared

to $1,081,209 for the same period in 2021.

For the three months ended June 30, 2022;

we had a loss from operations of $43,537 compared

to a net loss from operations of 495,733 for the same period in 2021.

For the three months ended September 30, 2022, our operating expense was $566,899

compared to $578,808 for the same period in 2021.

note 1 to the notes to the financial statements for a discussion on critical accounting policies

1 unchanged sentence

note 13 to the notes to the financial statements for a discussion on related party transaction

of the six month ended June 30, 2022, Compared to the six ended June 30, 2021

Results of the three

month ended September 30, 2022, Compared to the nine month ended September 30, 2021

Segment breakdown

The three months

ended September 30, 2022, our revenue from Engineering and Manufacturing was $71,298 compared to $50,040 for the same period in

The three months

ended September 30, 2022, our revenue from HRS was $307 compared to $513,400 for the same period in 2021.

This decrease was mainly

because of delay with the passing of inflation reduction act and the incentives associated with heat recovery solution and delays with

supply chain.

The three months ended September 30, 2022, our revenue

from CETY Europe was $10,125 compared to $12,105 for the same period in 2021.

The three months ended September 30, 2022, our revenue

from our wholly owned subsidiary CETY HK was $0.0 due to lack of availability of natural gas during the quarter compared to $0 for the

same period in 2021.This is a s a result of the acquisition of JHJ gas company made in November of 2021.

We started to generate revenue

from this entity in the 1 st quarter of 2022.

The three months ended

September 30 , 2022;

our gross profits were $25,913 compared

to $301,144 for the same period in 2021.

The decrease in gross profit was due to lower revenues.

Segment breakdown

The three months

ended September 30, 2022, our gross profit from Engineering and Manufacturing was $46,876 compared to $43,216 for the same period

The three months

ended September 30, 2022, we had negative gross profit from HRS of $18,146 compared to $250,500 for the same period in 2021.

decrease from the HRS segment was mainly due to 0 revenue in the third quarter of 2022.

The three months

ended September 30, 2022, our gross profit from CETY Europe was $9,685 compared to $4,101 for the same period in 2021.

in gross profit was due higher service revenue.

The three months

ended September 30, 2022, our gross profit from our wholly owned subsidiary CETY HK was negative $12,158 compared to $0 for the

same period in 2021.

We had zero revenue from CETY HK in 2021.

Selling, General and Administrative (SG&A)

The three months ended September 30 ,

our SG&A expense was $83,162 compared to $188,817 for the same period in 2021.

The decrease was a result of separating

the subcontractor category from SG&A.

Salaries Expense

The three months ended September 30 ,

our Salaries expense was $197,036 compared to $228,565 for the same period in 2021.

Travel Expense

The three months ended September 30 ,

our travel expense was $38,990 compared to $26,381for the same period in 2021.

The increase in the quarter ending in September

30, 2022 was due to additional site assessment surveys of multiple facilities in Europe and global commissioning.

Professional fees Expense

The three months ended September 30 ,

our Professional fees expense was $135,441 compared to $41,174 for the same period in 2021.

The increase in legal fees was

due to higher expenses related to a proposed IPO and up listing to NASDAQ.

of the nine month ended September 30, 2022, Compared to the nine month ended September 30, 2021

Company has four reportable segments:

Clean Energy HRS (HRS), CETY Europe srl, Engineering and Manufacturing Business and CETY HK.

six months ended June 30, 2022, our revenue from Engineering

and Manufacturing was $61,018 compared to $41,223 for the same period in 2021.

six months ended June 30, 2022, our revenue from HRS

was $460,885 compared to $88,807 for the same period in 2021.

This increase was mainly because of more interest in heat recovery projects.

six months ended June 30, 2022, our revenue from CETY Europe was $38,012 compared to $161,128 for the same period in 2021.

This decrease

was a result of a sell of an equipment in 2021 vs.

just the service revenue.

six months ended June 30, 2022, our revenue from our wholly owned subsidiary CETY HK was $1,983,062 compared to $0 for the same period

This is a s a result of the acquisition of JHJ gas company made in Nivember of 2021.

We started to generate revenue from this

entity in the 1 st quarter of 2022.

six months ended June 30 , 2022;

our gross profits were $1,146,000 compared to $218,539 for

the same period in 2021.

The increase in gross profit was due to higher revenues.

six months ended June 30, 2022, our gross profit from

nine months ended September 30, 2022, our revenue from

Engineering and Manufacturing was $132,316 compared to $91,262 for the same period in 2021.

six months ended June 30, 2022, our gross profit from

nine months ended September 30, 2022, our revenue from

HRS was $461,292 compared to $602,207 for the same period in 2021.

This decrease was mainly because of delay with the passing of inflation

reduction act and the incentives associated with heat recovery solution.

nine months ended September 30, 2022, our revenue from CETY Europe was $48,138 compared to $173,234 for the same period in 2021.

decrease was a result of a sell of an equipment in 2021 vs.

just the service revenue.

nine months ended September 30, 2022, our revenue from our wholly owned subsidiary CETY HK was $1,925,950 compared to $0 for the same

period in 2021.

This is a s a result of the acquisition of JHJ gas company made in November of 2021.

We started to generate revenue from

this entity in the 1 st quarter of 2022.

nine months ended September 30 , 2022;

our gross profits were $1,151,903 compared to $519,683

for the same period in 2021.

The increase in gross profit was due to higher revenues.

nine months ended September 30, 2022, our gross profit

from Engineering and Manufacturing was $85,352 compared to $72,853 for the same period in 2021.

nine months ended September 30, 2022, our gross profit

from HRS was $427,219 compared to $312,118, for the same period in 2021.

The increase from the HRS segment was mainly due to higher revenue

in the first quarter of 2022.

six months ended June 30, 2022, our gross profit from

CETY Europe was $30,630 compared to $126,054 for the same period in 2021.

The decrease in gross profit was due to revenue generated from

the sale of a clean cycle waste heat recovery system.

six months ended June 30, 2022, our gross profit from

our wholly owned subsidiary CETY HK was $663,249 compared to $0 for the same period in 2021.

nine months ended September 30, 2022, our gross profit

from CETY Europe was $40,315 compared to $134,712 for the same period in 2021.

The decrease in gross profit was due to revenue generated

from the sale of a clean cycle waste heat recovery system.

nine months ended September 30, 2022, our gross profit

from our wholly owned subsidiary CETY HK was $631,082 compared to $0 for the same period in 2021.

We had zero revenue from CETY HK in

General and Administrative (SG&A) Expenses

six months ended June 30 , 2022;

our SG&A expense was $201,303 compared to $340,521 for

the same period in 2021.

nine months ended September 30 , 2022;

our SG&A expense was $284,025 compared to $529,335,

for the same period in 2021.

The decrease was a result of separating the subcontractor category from SG&A and lower cost of repair.

six months ended June 30 , 2022;

our Salaries expense was $390,892 compared to $433,069 for

the same period in 2021.

The decrease in the quarter ending in June 30, 2022 was due to less number of employees.

six months ended June 30 , 2022;

our travel expense was $87,398 compared to $40,354 for the

same period in 2021.

This was due to additional site assessment surveys of multiple facilities in Europe.

six months ended June 30 , 2022;

our Professional fees expense was $224,195 compared to $82,209

nine months ended September 30 , 2022;

our Salaries expense was $587,928 compared to $661,634

for the same period in 2021.

The increase in legal fees was due to higher expenses related to a proposed IPO and up listing to NASDAQ.

The decrease in the quarter ending in September 30, 2022 was due to less number of employees.

nine months ended September 30 , 2022;

our travel expense was $126,388 compared to $66,735

for the same period in 2021.

The increase in the quarter ending in September 30, 2022 was due to additional site assessment surveys of

multiple facilities in Europe and global commissioning.

nine months ended September 30 , 2022;

our Professional fees expense was $359,636 compared

to $123,383 for the same period in 2021.

The increase in legal fees was due to higher expenses related to a proposed IPO and up listing

Lease and Maintenance Expense

six months ended June 30 , 2022;

nine months ended September 30 , 2022;

our Facility Lease and maintenance expense was $260,262

1 unchanged sentence

and Amortization Expense

six months ended June 30 , 2022, our depreciation and amortization expense was $15,038 compared

to $16,146 for the same period in 2021, which remained relatively unchanged.

nine months ended September 30 , 2022, our depreciation and amortization expense was $22,557

compared to $24,219 for the same period in 2021, which remained relatively unchanged.

in Derivative Liability

six months ended June 30, 2022;

we had a gain on derivative liability of $13,399 compared to a gain of $1,745,369 for the same period

nine months ended September 30, 2022;

we had a gain on derivative liability of $12,980, compared to a gain of $1,734,624 for the same

period in 2021.

The gain in derivative liability was due to paying off several convertible notes in the six months ended June 30, 2021.

on debt settlement

six months ended June 30, 2022, we recognized a gain on debt settlement in the amount of $2,920 compared to $368,098 for the six months

ended June 30, 2021.

nine months ended September 30, 2022, we recognized a gain on debt settlement in the amount of $2920 compared to $828,666 for the nine

months ended September 30, 2021.

and Finance Fees

six months ended June 30, 2022 interest and finance fees were $416,275 compared to $414,069 for the same period in 2021.

which remained

relatively unchanged

nine months ended September 30, 2022 interest and finance fees were $747,451 compared to $603,240 for the same period in 2021.

Income / Loss

six months ended June 30, 2022;

nine months ended September 30, 2022;

our loss was $1,338,010

4 unchanged sentences

Consolidated Statements of Cash Flows

the six months ended June 30, 2022

the nine months ended September 30, 2022

Net Cash provided / (Used) In Operating Activities

4 unchanged sentences

Net (Decrease) Increase in Cash and Cash Equivalents

$ (1,016,545 )

February 21, 2022 the Company completed public and private financing of an aggregate of $1,202,800.

33 unchanged sentences

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 2. Management’s Discussion and Analysis