What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-06-05 compared with 2025-06-09 · 52 added, 15 removed, 537 unchanged (11% of the section changed)

131 unchanged sentences

segments but added the CETY HK segment to reflect its recent new businesses in China.

of Operating Results for the year ended December 31, 2024, Compared to the year ended December 31, 2023

financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets

of Operating Results for the year ended December 31, 2024 (Restated), Compared to the year ended December 31, 2023 (Restated)

financial statements have been prepared on a basis, which contemplates continuity of operations, realization of assets

and liquidation of liabilities in the normal course of business.

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factors contributed to the overall financial performance for the period.

Following the close of the 2024 fiscal year, CETY’s equity saw a significant decrease, dropping from $4,444,038

to $2,938,502, as reflected in our quarterly financials.

This decline was primarily driven by ongoing investments in our waste-to-energy

business, the impact of lower-margin revenue from China, and continued financing costs.

Despite this, our strategic focus on higher-margin

opportunities positions us for stronger long-term growth and improved financial performance.

the close of the 2024 fiscal year, CETY’s equity saw a significant decrease, dropping from $4,208,460 to $1,897,145, as reflected

in our quarterly financials.

This decline was primarily driven by ongoing investments in our waste-to-energy business, the impact of

lower-margin revenue from China, and continued financing costs.

Despite this, our strategic focus on higher-margin opportunities positions

us for stronger long-term growth and improved financial performance.

The financial statements have been prepared assuming

the Company will continue as a going concern, which contemplates the realization of assets and settlement of liabilities in the normal

course of business.

As of December 31, 2024, the Company had stockholders’ equity of $1,897,145, a working capital deficit of $3,478,090,

and an accumulated deficit of $28,480,730.

The Company also reported net cash used in operating activities of $3,560,951 for the year

ended December 31, 2024.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern within

one year after the date the financial statements are issued.

During 2024 and continuing into 2025,

the Company’s financial condition and operating results were adversely impacted by several factors, including continued financing

and interest-related costs, delays associated with financing and registration effectiveness, lower-margin revenue contributions from

certain operations, ongoing investments in strategic waste-to-energy initiatives, and accounting adjustments and restatement-related

impacts associated with prior period activities and financial reporting reviews.

Management has implemented and continues to pursue

multiple initiatives intended to improve liquidity and operating performance.

These initiatives include restructuring certain existing

obligations, pursuing additional equity and strategic financing opportunities, reducing operating costs where appropriate, focusing on

higher-margin waste-to-energy and heat recovery opportunities, advancing strategic commercial projects, and pursuing operational efficiencies

across the organization.

Management is also actively evaluating strategic partnerships, project-level financing opportunities, and other

capital formation initiatives intended to support the Company’s long-term business objectives.

For the fiscal year ended December 31, 2024, the Company

reported a net loss of $4,550,296 compared to a net loss of $5,734,071 for the prior year period.

While management believes the actions

presently being taken provide a path toward improving liquidity and operating performance, such plans are subject to various risks and

uncertainties, and there can be no assurance that such efforts will be successful or sufficient to alleviate substantial doubt regarding

the Company’s ability to continue as a going concern.

Accordingly, the accompanying financial statements

do not include any adjustments that might result from the outcome of this uncertainty.

PARTY TRANSACTIONS

note 12 to the notes to the financial statements for a discussion on related party transaction

for the year ended December 31, 2024, compared to the year ended December 31, 2023.

for the year ended December 31, 2024 (Restated), compared to the year ended December 31, 2023 (Restated).

the year ending December 31, 2024, our total revenue was $2,424,659 compared to $6,693,844 for the same period in 2023.

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operational efficiencies and pricing adjustments.

For the year ended December 31, 2024, our gross profit from PMI amounted to $7,806, compared to $(16,199) for the

same period in 2023.

This segment is a recent addition to CETY’s portfolio, currently serving as a support for our ongoing internal

Nevertheless, it is anticipated to expand notably as CETY shifts its focus towards providing comprehensive end-to-end power

generation and integrated solutions.

General and Administrative (SG&A) Expenses

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date and expiration of the notes.

Change in FV of warrant liability

For the year ended December 31, 2024 and 2023, we

had $26,596 and nil gain on warrant liability related to Equity Line of Credit Agreement entered December 5, 2024.

on debt settlement and write off

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primarily attributable to the deconsolidation of Shuya, while the 2023 loss was due to the fair market valuation of preferred shares.

Interest Income

For the year ended December 31, 2024, interest income from Florya associated with long-term financing receivable

totaled $53,153 compared to $48,595 for the same period in 2024.

and Finance Fees

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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 $30,061 and $165,236, respectively.

As of December 31, 2024 (Restated) and

2023, we had outstanding customer deposits of $172,061 and $307,236, respectively.

from fair value or equity method to consolidation

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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, 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

January 1, 2024, and effective on the same date, JHJ, SSET and Xiangyueheng entered into the Agreement on the Termination of the Concerted

29 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-K/A

Item 7. Management’s Discussion and Analysis