{"url_path":"/sec/cety/10-k/2026/item-1","section_key":"item-1","section_title":"Item 1 Business**","topic":"sec","document":{"doc_type":"10-K/A","doc_date":"2026-06-05","source_url":"https://www.sec.gov/Archives/edgar/data/1329606/0001493152-26-027379-index.html","accession_number":"0001493152-26-027379","cik":"0001329606","ticker":"CETY","issuer_name":"Clean Energy Technologies, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1329606/0001493152-26-027379-index.html","primary_entity_key":"0001329606","primary_entity_name":"Clean Energy Technologies, Inc."},"word_count":7238,"has_tables":true,"body_markdown":"**Item\n1. Business**\n\n** **\n\n**General**\n\n \n\nThe\nCompany’s business and operating results are directly affected by changes in overall customer demand, operational costs and performance\nand leverage of our fixed cost and selling, general and administrative (“SG&A”) infrastructure.\n\n \n\nProduct\nsales fluctuate in response to several factors including many that are beyond the Company’s control, such as general economic conditions,\ninterest rates, government regulations, consumer spending, labor availability, and our customers’ production rates and inventory\nlevels. Product sales consist of demand from customers in many different markets with different levels of cyclicality and seasonality.\n\n \n\nOperating\nperformance is dependent on the Company’s ability to manage changes in input costs for items such as raw materials, labor, and\noverhead operating costs. Performance is also affected by manufacturing efficiencies, including items such as on time delivery, quality,\nscrap, and productivity. Market factors of supply and demand can impact operating costs.\n\n \n\n**Who\nWe Are**\n\n \n\nWe\ndevelop renewable energy products and solutions and establish partnerships in renewable energy that make environmental and economic sense.\nOur mission is to be a segment leader in the Zero Emission Revolution by offering turnkey energy solutions leveraging advanced technologies\nby delivering eco-friendly green energy solutions, clean energy fuels and alternative electric power for small and mid-sized projects\nin North America, Europe, and Asia. We target sustainable energy solutions that are profitable for us, profitable for our customers and\nrepresent the future of global energy production.\n\n \n\n**Our\nprincipal businesses**\n\n \n\n**Waste\nHeat Recovery Solutions** – we recycle wasted heat produced in manufacturing, waste to energy and power generation facilities\nusing our patented Clean CycleTM generator to create electricity which can be recycled or sold to the grid.\n\n \n\n**Waste\nto Energy Solutions** - we convert waste products created in manufacturing, agriculture, wastewater treatment plants and other industries\nto electricity, renewable natural gas (“RNG”), hydrogen and bio char which are sold or used by our customers.\n\n \n\n**Engineering,\nConsulting and Project Management Solutions** – We provide power generation, waste to energy, and heat recovery Engineering,\nProcurement and Construction (EPC) services to municipal and industrial customers and to design and incorporate clean energy solutions\nin their projects.\n\n \n\n**CETY\nHK**\n\n \n\nClean\nEnergy Technologies (H.K.) Limited (“CETY HK”) consists of two business ventures in mainland China: (i) our natural gas\n(“NG”) trading operations sourcing and suppling NG to industries and municipalities, operated through our PRC\nSubsidiaries and Shuya. The NG is principally used for heavy truck refueling stations and urban or industrial users. We purchase\nlarge quantities of NG from large wholesale NG depots at fixed prices which are prepaid for in advance at a discount to market. We\nsell the NG to our customers at prevailing daily spot prices for the duration of the contracts; and (ii) our planned joint venture\nwith a large state-owned gas enterprise in China called Shenzhen Gas (Hong Kong) International Co. Ltd. (“Shenzhen\nGas”), acquiring natural gas pipeline operator facilities, primarily located in the southwestern part of China. Our planned\njoint venture with Shenzhen Gas plans to acquire, with financing from Shenzhen Gas, natural gas pipeline operator facilities with\nthe goal of aggregating and selling the facilities to Shenzhen Gas in the future. According to our Framework Agreement with Shenzhen\nGas, we will be required to contribute $8 million to the joint venture which plans to raise in future rounds of financing. The terms\nof the joint venture are subject to the execution of definitive agreements. CETY HK has not commenced business with Shenzhen Gas due to macro-economic\nfactors such as falling NG prices and reduced industrial demand. CETY HK will wait until macro economic factors have improved before commencement\nof the Shenzhen Gas joint venture.\n\n \n\n6\n\n \n\n \n\n**Our\nBusiness Strategy**\n\n \n\nOur\nstrategy is focused on further developing our existing Waste Heat Recovery business while expanding into the rapidly growing markets\nfor Waste to Energy Solutions and power generation and integrated clean energy engineering, and project management services.\n\n \n\n*Our\nstrategy focuses on three main elements:*\n\n \n\n \n●\nExpanding\nour Waste Heat Recovery product line to include waste heat recovery ORC systems producing over 1 MW of power so we can qualify for\nmidsized and large heat recovery projects in the United States, Europe, and Asia.\n\n \n \n \n\n \n●\nEstablishing\na Waste to Energy business by selling our ablative thermal processing products based on proprietary HTAP technology and building\nsmall and mid-sized waste to energy power plants producing electricity and RNG for the grid and methane, hydrogen and biochar.\n\n \n \n \n\n \n●\nLeveraging\nour engineering, procurement and manufacturing experience to assist our customers with turnkey energy solutions leveraging advanced\ntechnologies.\n\n \n\nWe\nintend to implement this strategy through:\n\n \n\n \n○\nWe\nhave added a new ORC system manufactured by Exergy for Heat Recovery applications that will enable us to implement projects in the\nmarkets producing between 1 MW and 10 MW of electricity.\n\n \n \n \n\n \n○\nTo\nsupport the growing energy demands of data centers, we have added power generation capabilities to provide immediate and reliable\npower.\n\n \n \n \n\n \n○\nTaking\nadvantage of Inflation Reduction act of 2022 federal investment tax credits and state incentives that now include waste heat recover\nas a recognized clean energy source making our Clean Cycle Generator and ORC systems more profitable to install. On August 2022,\nCongress passed the Inflation Reduction act offering 30% Investment Tax Credit and technology neutral tax credits offering clean\nelectricity production credit and investment credit. CETY’s products directly benefit from these tax credits.\n\n \n \n \n\n \n○\nBenefiting\nfrom lack of energy capacity from the grid and higher energy costs which provide higher returns on our Power Generation, Waste Heat\nRecovery, and Waste to Energy products and projects.\n\n \n \n \n\n \n○\nImproving\nour balance sheet and capital position to permit us to invest in more products and projects.\n\n \n \n \n\n \n○\nWe\nare establishing a reliable network of global and domestic supply chain partners to drive scalability and cost efficiency in our\nsolutions.\n\n \n \n \n\n \n○\nLeveraging\nour existing marketing channels to sell HTAP Waste to Energy products to industrial companies and government agencies.\n\n \n \n \n\n \n○\nWe\nare collaborating with clean energy project development and finance companies to offer solutions that generate RNG, hydrogen, methane,\nand biochar from biomass, municipal waste, timber waste, and other organic materials.\n\n \n\n7\n\n \n\n \n\n**Business\nand Segment Information**\n\n \n\nWe\ndesign, produce and market clean energy products and integrated solutions focused on energy efficiency and renewable energy. Our aim\nis to become a leading provider of renewable and energy efficiency products and solutions by helping commercial companies and municipalities\nreduce energy waste and emissions, lower energy costs and generate incremental revenue by providing electricity, renewable natural gas\nand biochar to the grid.\n\n \n\nSegment\nInformation\n\n \n\nOur\nfour segments for accounting purposes are:\n\n \n\n**Clean\nEnergy HRS & CETY Europe** – Our Waste Heat Recovery Solutions, converting thermal energy to zero emission electricity.\n\n \n\n**CETY\nRenewables Waste to Energy Solutions** – Providing Waste to Energy technologies and solutions.\n\n \n\n**Engineering\nand Manufacturing Business** – providing customers with comprehensive design, manufacturing, and project management solutions.\n\n \n\n**CETY\nHK** – The parent company of our NG trading operations in China. Prior to the first quarter of 2022 the Company had three reportable\nsegments but added the CETY HK segment to reflect its recent new businesses in China.\n\n \n\nOur\nClean Energy Solutions Business\n\n \n\n*Waste\nHeat Recovery Solutions*\n\n \n\nWe\nprovide our customers with power plants that capture wasted heat energy and produce electricity using a unique Organic Rankine Cycle\n(ORC) system containing our Clean CycleTM generator. Our magnetic bearing Integrated Power Modules is at the heart of our\nClean CycleTM generator which can fit into a standard cargo container we call our Containerized System Module, producing 140KW\nper Clean Cycle generator and can be linked together for projects generating up to 1MW of power.\n\n \n\nOur\nrecent agreement with Enertime now permits us to install midsized and large ORC systems (between 1 MW and 10 MW) in the United States,\nallowing us to offer a full range of ORC systems to our customers. We believe this new capacity will enable us to expand our product\nofferings into larger scale waste recovery products in the United States. Enertime is a leader in producing ORC systems in Europe.\n\n \n\nORC\nwaste heat recycling systems use pressurized working fluids that have a lower boiling point than water which make them ideal to repurpose\nwaste heat into electricity. While most manufacturing processes do not produce enough heat to turn water into steam, there is enough\nheat to generate pressurized refrigerant in our ORC systems which is used to turn a turbine at high speeds to generate electricity.\n\n \n\nWe\ncan link up to 10 Clean Cycle Generators together which can generate up to 10 GWh of electricity per year from waste heat which we estimate\nwould reduce up to 5000 metric tons of CO2 production per year in an industrial heat recovery system or the annual equivalent of the\nCO2 emissions of approximately 2000 cars per year.\n\n \n\n8\n\n \n\n \n\nWe\nbelieve the most important component in any ORC system is the turbine generator because it converts the steam heat into electricity and\naccounts for approximately 60% of the cost of the system. The more efficiently the turbine generator works, the better the ORC power\nplant operates. The remaining components consisting of the low boiling point fluid, condensers, which cool the fluids, the feed pumps,\nwhich pressurize the fluids to reduce boiling points and the heat exchangers, which extract the heat from the heat sources. These are\nmore commoditized products and tend to perform at similar levels of efficiencies at similar price points.\n\n \n\nWe\nbelieve our Clean CycleTM generator is the most efficient turbine generator in it’s class and size available in the\nmarket for ORC systems generating up to 1 MW. We estimate that the Clean CycleTM generator has higher efficiency of approximately\n15% than our competitors and its magnetic design eliminates the use of oils and lubricants, significantly reducing down time, repairs\nand operating costs. Our Integrated Power Module is compact and fit into a standard cargo container that can be delivered on a turnkey\nbasis resulting in lower installation and implementation costs than on-site assembly.\n\n \n\nWe\nbelieve these features and benefits give us an important competitive advantage when building heat recovery power plants for our customers\nand provide us with the opportunity to compete with and obtain market share from the dominant industrial waste heat to power systems.\n\n \n\nOver\n121 Clean CycleTM generators have been deployed to date with 88 units used in biomass and waste to energy projects, 4 with\ndiesel electric generators, 3 with turbine electric generators and 26 in industrial electric production applications. We expect to raise\nadditional funds to expand our capacity to install 6-8 units per year which should approximately double our sales on a year-to-year basis.\n\n \n\nThe\npatented technology used in Clean CycleTM generator was purchased from General Electric International, together with over\n100 installation sites, making us one of the leading provider of small-scale industrial waste heat to power systems. We have an exclusive\nlicense from Calnetix to use their magnetic turbine for heat waste recovery applications.\n\n \n\nOur\nIntegrated Power Module\nOur\nClean Cycle TM Generator\n\n \n\n9\n\n \n\n \n\n \n\nA\ncomplete ORC System with Integrated Power Module housed in a Containerized System Module (CSM)\n\n \n\n*Waste\nto Energy Solutions*\n\n \n\nWe\nare adding a new business line in our clean energy solutions segment consisting of Waste to Energy processing equipment, engineering\nservices and Waste to Energy processing power plant joint ventures where we expect to retain an ownership interest in the project.\n\n \n\nWaste-to-Energy\ntechnologies that process non-renewable waste can reduce environmental and health damages while generating sustainable energy. Waste-to-Energy\ntechnologies consist of waste treatment process that creates energy in the form of electricity, heat or fuels from a waste source. These\ntechnologies can be applied to several types of waste: from the biomass (e.g. woodchips) to semi-solid (e.g. thickened sludge from effluent\ntreatment plants) to liquid (e.g. domestic sewage) and gaseous (e.g. refinery gases) waste.\n\n \n\n**Waste\nto Energy Solutions can be used:**\n\n \n\n \n●\nIn\nany town, city or province with established waste management and collection.\n\n \n●\nWhere\nthere is a consistent supply of solid waste.\n\n \n●\nPlaces\nwhere treatment costs increase with shortages of space to store waste.\n\n \n●\nIn\nareas with high energy prices to allow for cost of recovery from waste.\n\n \n\n**Waste\nto Energy Solutions have many benefits:**\n\n \n\n \n●\nElectricity\nfrom Waste to Energy plants can be generated from small amounts up to 30 MW providing for a wide range of opportunities to sell it\nback to the grid.\n\n \n●\nThe\nsynthetic renewable fuel gas produced from waste can be used for various production recyclable energy such as hot water, thermo-oil\nor steam, renewable natural gas or hydrogen.\n\n \n●\nLandfill\nwaste is reduced and so is leachate and methane released from decomposing landfills.\n\n \n●\nWaste\nis a reliable source of energy and production is typically predictable and low cost whereas fossil fuel prices can fluctuate dramatically.\n\n \n\n10\n\n \n\n \n\n**But\nTraditional Incineration Methods Have Significant Downsides:**\n\n \n\n \n●\nAir\npollution can increase because scrubbing technologies are very expensive to install.\n\n \n●\nMany\nindustrial, agricultural, and mixed municipal solid wastes have high moisture content at source and direct incineration of such waste\nrequires burning fossil fuel.\n\n \n●\nto\nmaintain thermal conversion process.\n\n \n●\nCarbon\nis released into the air which would otherwise be stored in landfill.\n\n \n●\nAsh\nand flue gas cleaning residues from incineration can also cause poisonous leachate problems if not properly disposed of which is\ncostly and causes downstream environmental issues.\n\n \n●\nGenerating\nelectricity from incineration releases *more* CO2, SO2, NOx and mercury than natural gas.\n\n \n\n(Source:\nhttps://www.energyforgrowth.org/memo/waste-to-energy-one-solution-for-two-problems/)\n\n \n\nThe\nmost common form of waste to energy systems are based on incinerators which simply burn waste using air. The Thermal Treatment on Grate\nis the most widespread technology being used by large waste landfills to generate electricity and heat. These systems produce substantial\namounts of ash, heavy metals and carbon dioxide which need to be treated and disposed of to minimize its impact on the environment. They\nalso require substantial amounts of pre-treatments prior to burning.\n\n \n\nThe\nThermal on Grate incineration process, while wide-spread, is too expensive and complex for smaller and mid-sized waste to energy projects\ncreating, what we believe, a significant market opportunity in small and mid-sized waste processing applications to create not only electricity\nbut valuable renewable natural gas, bio diesel oil, hydrogen, methane, and biochar.\n\n \n\nOur\nsolution is a patented High Temperature Ablative Pyrolysis (HTAP) Biomass Reactor as viable commercial solution to the costs and environmental\nproblems posed by traditional incarnation methods. We have the exclusive license and right to sell the HTAP10 and HTAP5 and related products\nmanufactured by Enex which has a proven installed commercial base of customers using its waste to energy solutions. We believe this is\nan ideal solution to process waste for small to mid-sized waste to energy generation applications needed for processing industrial and\nmunicipality solid waste, agriculture waste, and forestry waste.\n\n \n\nPyrolysis\nsystems decompose waste without the use of oxygen under varying pressurized conditions and at temperatures ranging from 300 degrees Celsius\nand 1,300 degrees Celsius. The major advantage of pyrolysis is that it is a cost-effective technology and helps curb environmental pollution.\nPyrolysis systems are gradually replacing traditional incineration and gaining momentum in the waste to energy processing market addresses\nmany of the pre-treatment issues and, when using high temperature and high-pressure, substantially reduce or eliminates pollutant. (Source:\n“Life Cycle Assessment of Waste-to-Bioenergy Processes: a Review” Pooja Ghosh,... Arunaditya Sahay, in Bioreactors, 2020)\n\n \n\nPyrolysis\nsystems can produce hydrogen, renewable natural gas, bio-diesel oil, charcoal, and biochar which are used to power hydrogen, diesel,\nand natural gas engines or electrical turbines which can be sold and often are eligible for substantial tax and pricing benefits. When\ncompared with the conventional incineration plant that runs in the capacity of kilotons per day, the scale of the pyrolysis plant is\nmore flexible, and the output of pyrolysis can be integrated with other downstream technologies for product upgrading. (Source: Influential\nAspects in Waste Management Practices Karthik Rajendran PhD,. Jerry D. Murphy PhD, in Sustainable Resource Recovery and Zero Waste Approaches,\n2019) In addition, BioChar stores and reduces atmospheric CO2 and can be used as a soil conditioner, an organic component of animal feeds,\nconstruction materials, wastewater treatment and in textiles. (Source: https://www.bioenergyconsult.com/applications-of-biochar/)\n\n \n\nThe\nablative pyrolysis system is a waste to energy process that largely eliminates pre-treatment and the harmful pollutants and storage waste\nproduced when using standard incineration and other pyrolysis technologies. It uses high pressure to generate fast pyrolysis and is designed\nso that the heat transferred from a hot reactor wall softens the feedstock under pressure and permits larger feedstock particles to be\nprocessed without pre-treatment. These systems create high relative motion between the reactor wall and the feedstock. The process avoids\nthe need of inert gas and hence the processing equipment is small and the reaction system is more intense. (Source: http://biofuelsacademy.org/index.html%3Fp=608.html)\n\n \n\n11\n\n \n\n \n\nCETY\nhas licensed proprietary patented ablative pyrolysis system for commercial use that has been installed in 7 sites for use in waste to\nenergy creating applications processing including peat, coal, flax waste, sawdust and wood scrap, straw, buckwheat husks, and cardboard,\ntapes, films and paper machine sludge. The technology has been implemented over 1,500 onsite power generation projects in Russia working\nwith major energy production companies such as Gazprom, Rosneft, Lukoil and Rostelecom as well as completing several projects for customers\nin the European Union, Middle East and United States. Due to the conflict in the Ukraine, ENEX is redomiciling and relocating key personnel\nto Turkey where it will complete an existing project and is expected to wind down its operations. CETY will develop additional ablative\ntechnology and expects to manufacture units in the United States. Sales and European distribution will be run out of a CETY office that\nhas been established in Turkey.\n\n \n\nCETY\nhas global rights (except Russia and CIS countries) to design, build, manufacture, sell and operate renewable energy and waste recovery\nfacilities HTAP10 and HTAP5 systems and other products and technologies we expect to develop in the future.\n\n \n\nThe\npatented HTAP technology utilizes a higher temperature that uses a cleaner gas for the heating process and a more efficient biogas turbine.\nThe units can be customized to produce hydrogen, natural gas, diesel oil and bio char in varying quantities which can be sold or used\nto produce electricity. We believe that the key benefits of the HTAP Biomass Reactor are:\n\n \n\n \n●\nFlexibility\nin waste sourcing and mixing.\n\n \n●\nCustomized\noutputs of hydrogen, synthetic fuels, natural gas, methane, biochar, carbon black, or construction materials.\n\n \n●\nBetter\nwaste sourcing and mixing flexibility,\n\n \n●\nNear-zero\nemissions,\n\n \n●\nModular\ndesign,\n\n \n●\nZero\nliquid discharge,\n\n \n●\nZero\nsolid waste residue waste.\n\n \n●\nModular,\ncontainerize design reducing implementation costs\n\n \n●\nProven\ncommercial implementation.\n\n \n\nWe\nare targeting industrial and municipality solid waste, landfill waste, agriculture waste (straw, stems, plant biomass, manure, crop wastage),\nand forestry waste from tree cuttings and shredded products.\n\n \n\nWe\nare in the process of identifying projects domestically and internationally for the HTAP Biomass Reactor. We believe the first project\nwhere we expect to implement the HTAP10 technology with Vermont Renewable Gas to develop a biomass renewable energy processing facility.\nThe project is planned for a location in Lyndon, Vermont to convert forest and agriculture biomass waste products to renewably generated\nelectricity and BioChar fertilizer. We expect to annually deliver up to 18,000 MWh of renewable electricity and 1,500 tons of BioChar.\nThe Vermont Renewable Gas project is one of the many renewable energy processing facilities we plan to commission.\n\n \n\n12\n\n \n\n \n\n \n\nENEX\nHTAP 10 Waste to Energy Processing Plant.\n\n \n\nWe\nestablished a wholly owned subsidiary called CETY Capital that we expect will help us finance our customers renewable energy projects\nproducing low carbon energy. CETY Capital, when implemented, should add flexibility to the capacity CETY offers its customers and fund\nprojects utilizing its products and clean energy solutions. The in-house financing arm is expected to support our sales and build new\nrenewable energy facilities. To date we have conducted no material operations in this subsidiary.\n\n \n\n*Our\nClean Energy Initiatives in China*\n\n \n\nNatural gas is China’s\nfastest-growing primary fuel with demand quadrupling in the past decade. Developing the natural gas sector is a critical aspect China’s\neffort to reduce reliance on coal. According to the International Energy Agency, China is the world’s sixth-largest natural gas\nproducer, the third-largest consumer, and the second-largest importer. In 2050, the U.S. Energy Information Administration (EIA) expects\nChina to consume nearly three times as much natural gas as it did in 2018, which was 280.30 b/cm. China’s natural gas consumption\naccounted for 8.3% of its total energy mix in 2019. China anticipates boosting the share of natural gas as part of total energy consumption\nto 14% by 2030. Before COVID 19, China was expected to account for a third of global demand growth through 2022, thanks in part to the\ncountry’s “Blue Skies” policy and the strong drive to improve air quality. China’s relatively strong economic\nrecovery from the COVID 19 crisis will probably increase that share. Natural gas is imported either through pipelines or as liquefied\nnatural gas (LNG) on ships. https://www.axios.com/2018/06/26/china-largest-natural-gas-importer?utm_source=chatgpt.com\n\n \n\nLiquid\nNatural Gas in the Chinese energy market produces half as much carbon dioxide, less than a third as much nitrogen oxides, and 1 percent\nas much sulfur oxides at the power plant compared to the average air emissions from coal-fired generation. In addition to reduced air\nemissions, natural gas has other environmental benefits that make it a smart fuel choice. Natural gas-fired power plants use about 60\npercent less water than coal plants and 75 percent less water than nuclear power plants for the same electricity output. (Source: Conoco\nPhillips)\n\n \n\nIn\n2021, we acquired through our subsidiary, CETY Hong Kong, a liquefied natural gas trading operation called Jiangsu Huanya Jieneng (“JHJ”)\nwhich sources LNG from large LNG producers and distributors and sells it to non-state-owned industries and downstream customers in mainland\nChina.\n\n \n\nCETY\nalso plans to sell its waste heat recovery and waste to energy products in China as well as provide consulting services relating to the\nsame to projects in China.\n\n \n\nThe\nJHJ team has more than 10 years of experience in the natural gas and clean energy industry and has maintained relationships and partners\nwith many natural gas enterprises in China.\n\n \n\n13\n\n \n\n \n\n*CETY\nHK*\n\n \n\n**NG\nTrading Operations**\n\n \n\nJHJ’s\nprincipal service is to source and supply NG to industries and municipalities located in the southern part of Sichuan Province and portions\nof Yunnan Province. The NG is principally used for heavy truck refueling stations and urban or industrial users in areas that do not\nhave a connection to local NG pipeline systems. We purchase large quantities of NG from large wholesale NG depots at fixed prices\nwhich are prepaid for in advance at a discount to market. We sell the NG to our customers at prevailing daily spot prices for the duration\nof the contracts.\n\n \n\nEither\nour sources or customers arrange for delivery of the NG. Our profitability depends on our ability to purchase NG at volume discounts\nat the beginning of a season and sell it at a delivered price that is higher than the price we pay.\n\n \n\nJHJ\ntraders are experienced NG traders, familiar with the spot and future markets and have relationships with the major users of NG in\nthe areas that we serve. Our customers may be local or may be as far as 700km from each depot.\n\n \n\nWe\ncompete with other NG trading based on availability and price. We target our discount with our sources to partially hedge against falling\nspot prices and give us a gross profit targeted at substantially higher rate than our competitors which are approximately 20-30 percent\nmargins compared against what we believe are 1-5 percent margins by our competitors. So long as there are no major fluctuations in the\nspot market, we can offer more competitive prices due to the discounts we receive from the large volumes purchased and the prepayments\nfor the NG. JHJ has currently established a supply of approximately 8,000 tons of NG for distribution.\n\n \n\nWe\nare able to purchase NG at a significant discount from our suppliers because our prepayments offer suppliers more certainty with respect\nto the sales of their inventory, address their cash flow issues, and allow them to better plan for production. We believe our downstream\ncustomers get better prices from us because of our bulk buying power, ease of inventory management and cash flow.\n\n \n\nBoth\nour suppliers and customers can reduce costs by using JHJ as a centralized procurement center and establishing professional logistics\ndistribution based on stable supply and downstream demand.\n\n \n\nOur convertible note investment in Heze Hongyuan Natural Gas co. is subject to dilution by additional equity investment into HHNG by third parties. We do not expect the project to require additional\ninvestment from us, JHJ or HHNG. The project has constructed a portion of the pipelines in the Heze area that links the local industrial\nusers to the national gas pipeline. Certain parts of the pipeline construction has been delayed due to the permitting process. The project\nis expected to generate cash flow by the end of 2025. We do not expect to make further direct minority investments in other pipeline\noperators.\n\n \n\n14\n\n \n\n \n\n**Engineering,\nConsulting and Project Management Services**\n\n \n\nEngineering*.*Our global engineering team supports the design, build, installation, and maintenance of our solutions and supports our technology\ncustomers and innovative start-ups with a broad range of electrical, mechanical and software engineering services. CETY has assembled\na team of experts from around the globe to assist customers at any point in the design cycle. These services include design processes\nfrom electrical, software, mechanical and Industrial design. Utilization of CETY’s design services will provide our customers with\na complete end to end solution.\n\n \n\nSupply\nChain Management*.* CETY’s supply chain solution provides maximum flexibility and responsiveness through a collaborative\nand strategic approach with our customers. CETY can assume supply chain responsibility from component sourcing through delivery of finished\nproduct. CETY’s focus on the supply chain allows us to build internal and external systems and better our relationships with our\ncustomers, which allows us to capitalize on our expertise to align with our partners and customer’s objectives and integrate with\ntheir respective processes.\n\n \n\n**The\nMarket for Our Products.**\n\n \n\nWaste\nto Energy.\n\n \n\nThere\nare more than 2500 waste-to-energy plants in the world, including almost 500 in Europe. (Source: https://wteinternational.com/news/waste-to-energy-technologies-overview/).\nThe waste-to-energy (WTE) market is expected to register a CAGR of 7.35% during the forecast period of 2021 – 2026, reaching a\nmarket size of USD 69.94 billion by 2026, up from USD 43.66 billion in 2019. The COVID-19 pandemic affected the market negatively in\nthe form of supply chain disruptions and delays in project implementation. However, the market is expected to recover from 2021, owing\nto the increasing efforts to promote waste-to-energy plants by various countries across the world.\n\n \n\n15\n\n \n\n \n\nIncreasing\ngovernment regulations regarding the waste to energy in various countries is one of the major factors driving the growth of global waste\nto energy market. For instance, according to Federal Power Act 2019, this act gives federal authority over electric utilities in U.S.\nAlso the acts like Public Utility Regulatory Policy Act (PURPA) and Energy Policy Act are applied by the government to increase the waste\nto energy and decrease the CO2 emission by fossil fuels. In addition, escalating investments in R&D by different countries\nis also fostering the growth of global waste to energy market. (Source : https://www.epa.gov/laws-regulations/summary-energy-policy-act)\n\n \n\nAlternative\nthermal technologies like pyrolysis, gasification and plasma arc gasification are expected to lower carbon emissions and witness the\ngrowth in demand. Moreover, a shift in trend towards replacing conventional energy generating from fossil fuels with renewable energy\nto ensure energy security and reduce carbon emissions are potential factors to drive industry growth. The global waste to energy market\nsize was valued at $35.1 billion in 2019, and is projected to reach $50.1 billion by 2027, growing at a CAGR of 4.6% from 2020 to 2027.\nhttps://www.alliedmarketresearch.com/waste-to-energy-market\n\n \n\nWaste\nHeat Recovery\n\n \n\nA\nstudy by Market Research Future in October of 2021 forecasted the waste heat recover market would be worth USD 114 billion by 2028 registering\na CAGR of 9.2 per year from a baseline of USD 59.44 billion in 2020. The primary economic driver in the waste heat recovery market are\n“rising energy use, economic development, and rising electricity prices. The use of energy in many sectors to manufacture products\nis steadily growing. The need for energy has increased in industrialized regions as industrialization has occurred. Companies are developing\nnumerous strategies to transform waste heat into energy as the demand for energy grows. As a result, it is fueling the growth of the\nWaste Heat Recovery market. The government has taken various initiatives and enacted rules to save energy, which has promoted the usage\nof Waste Heat Recovery technologies. Due to environmental concerns, the government is taking steps to save energy; as a result, the Waste\nHeat Recovery sector is booming. Energy-efficient technology has become critical for industries looking to save money.” (Source:\nhttps://www.yahoo.com/now/waste-heat-recovery-market-worth-095200052.html)\n\n \n\nIn\n2020 North America constituted the largest share of the market accounting for approximately 33% of the global total but countries in\nAsia and the Asia Pacific constitute the fasting growing geographic sectors due to rapid industrial expansion.\n\n \n\nWaste\nheat recovery systems in the United States now qualify for beneficial investment tax credits of up to 26% on the investment driving additional\ncompanies to install ORC industrial waste heat to power units. Owners of waste energy recovery property can claim a 26% ITC if construction\nof such property begins during 2021 or 2022, and a 22% ITC if construction begins during 2023, provided in each case that the property\nis placed in service by the end of 2025. (Source: https://enervex.com/insights/new-26-federal-investment-tax-credit-promotes-waste-heat-recovery-technology?utm_source=chatgpt.com)\n\n \n\nA\nRenewable Portfolio Standard (RPS) is a state incentive program that requires a certain percentage of electricity sold by utilities in\nthe state to come from renewable resources. It diversifies the energy portfolio of the state while encouraging economic development.\nBy establishing an RPS a state creates a market for Renewable Energy Credits (RECs). Each utility must obtain and retire a certain number\nof RECs annually. Several states including Colorado, Wisconsin, Illinois and California among others have now list waste heat to power\nas an eligible resource in their RPS program.\n\n \n\n16\n\n \n\n \n\nLNG\nTrading and Joint Venture\n\n \n\nSince\n2012, the National Development and Reform Commission has stressed that “natural gas vehicles, including urban buses, taxis, logistics\ndistribution vehicles, trucks and other natural gas-fueled transportation vehicles” are the most important users of natural gas\nand require a consistent supply chain. As a result, regions and provinces in the PRC have accelerated the construction of a network of\nLNG refueling stations and encouraged the expansion of fleets of delivery vehicles. Due to China’s “carbon peak, carbon neutral”\ngoal commitment, China’s environmental protection policies are gradually being tightened resulting in increased utilization rates\nof natural gas as a clean energy alternative is getting higher and higher. (Source China 13th Renewable Energy Development\nFive Year Plan https://www.iea.org/policies/6277-china-13th-renewable-energy-development-five-year-plan-2016-2020)\n\n \n\nBy\n2027, analysts forecast spot trade in NG will be $20 billion, more than double its 2020 value. Last year, China’s imports soared\nby 18% to a record 79 million tons, overtaking Japan as the world’s largest NG buyer. China’s economic recovery from the\nCOVID-19 pandemic was one factor, but the other was a pipeline reform that allowed more firms to become importers. (Source: Reuters U.S.\nsupplies give China muscle to become major force in global NG trade https://www.reuters.com/business/energy/us-supplies-give-china-muscle-become-major-force-global-lng-trade-2022-02-11/)\n\n \n\nAligning\nwith many policy goals, natural gas will remain a growth engine for energy supply in the 14th FYP period. The policy direction on air\npollution reduction, carbon emission control, and gas supply and midstream infrastructure development indicates continued support for\nhigher penetration of gas in the growing energy mix. On the other hand, the focus on supply security and cost reduction from market reforms\nindicate an expectation of decelerating gas demand growth in the 14th FYP period compared with that in the previous five years. In the\ncurrent IHS Markit outlook, China’s gas demand will grow 6% compound annual average during 2021-25—compared with the 11%\ngrowth in the previous five year—to reach 429 Bcm in 2025. (Source S& P Global. China’s Five Yar Plan’s Review\nand Expectation: Natural Gas Tick the Box for Many Policy Goals. https://global.chinadaily.com.cn/a/202203/23/WS623a8e24a310fd2b29e52c21.html)\n\n \n\nWe\nbelieve that Southwest China is rich in natural gas resources providing us with a stable source of supply and is an important major natural\ngas producing area in the country. We estimate that there are 16 LNG production plants with a capacity of more than 300,000 cubic meters\nper day in Southwest China, with a total design capacity of 11.7 million cubic meters per day. We believe the supply is mainly to satisfy\nLNG refueling stations and LNG vehicles which are among our primary downstream customers.\n\n \n\nWe\nestimate that by the end of 2022, a total of about 240 LNG refueling stations were operating in South Western China, including about\n170 in Sichuan, about 30 in Yunnan, and about 40 in Guizhou; the daily consumption of LNG refueling stations that have been put into\noperation in Yunguichuan is about 7,200 tons per day, which is basically the same as the upstream output, reaching a “balance of\nproduction and sales”.\n\n \n\nIn\norder to help achieve the goal of “carbon peaking and carbon neutrality”, accelerate the clean and low-carbon transformation\nof transportation energy, the Sichuan Provincial Development and Reform Commission and Sichuan Provincial Energy Administration issued\nthe “Sichuan Province Natural Gas Vehicle Refueling Station Layout Plan (2021-2025)”, which proposed that by 2025, Sichuan\nwill build 500 new refueling stations (including 141 stations in the expressway service area), including 15 CNG refueling stations,\n401 LNG refueling stations, 8 L-CNG refueling stations, and 76 CNG/LNG joint refueling stations.\n\n \n\nBased\non the development plan for LNG refueling stations in the southwest region we believe that the downstream demand for LNG by our customers\nwill maintain a steady growth rate over the next five years.\n\n \n\n17\n\n \n\n \n\n**Sales\nand Marketing**\n\n \n\nWe\nutilize both a direct sales force and global distribution group with expertise in heat recovery solutions and clean energy markets.\n\n \n\nCETY\nmaintains an online presence through our web portal and social media. We also have established cross-sale agreements with synergistic\ntechnology providers promoting our solutions to our respective customers. We utilize email campaigns to keep the marketplace abreast\nof the recent developments with our solutions. We work with the municipalities to identify incentive programs that could utilize our\nsolutions.\n\n \n\nOur\napplication engineers assist in converting the opportunities into projects. We provide technical support to our Clean Cycle TM\ngenerator clients and recently introduced waste to energy plants through providing maintenance and product support.\n\n \n\nOur\nmarket focus is segmented by the engine heat recovery, waste to energy plants, engineering & procurement, and renewable energy trade,\nWastewater treatment plants and boiler applications with excess heat.\n\n \n\nOur\nexperienced team of LNG traders identify producers and customers for the LNG trading business as well as originate acquisition opportunities\nfor our Shenzhen Gas joint venture.\n\n \n\n**Suppliers**\n\n \n\nOur\nheat recovery solutions systems are manufactured primarily from components available from multiple suppliers and to a lesser extend from\ncustom fabricated components available from various sources. We purchase our components from suppliers based on price and availability.\nOur significant suppliers in the Waste Heat Recovery business include Powerhouse, Concise Instrument, and Grainger.\n\n \n\nOur\nwaste to energy components are sourced globally including the US with the exception of the core components originally sourced in Russia\nand being transitioned to Turkey and US. We are in the process of establishing an inhouse center of competence and technology development\nbased out of Turkey to source these components in Europe and US with the ability to deploy the product globally. Although future impacts\ncannot be predicted the company does not foresee any negative impact from the Russia and Ukraine conflict.\n\n \n\nThe\nnatural gas in China is obtained from various local production plants in Southeast China based on price and quality. Deliveries of the\nNG are made through third party trucking companies. We purchase large quantities of NG from large wholesale NG depots at fixed prices\nwhich are discounted and prepaid for in advance at a discount to market.\n\n \n\n**Competition**\n\n \n\nORMAT,\nExergy, TAS and Turboden are the leaders in ORC system power plants with more than 75% of installed capacity and plants, Exergy and TAS\nare following with around 13% and 6% of the market respectively while Turboden has recently penetrated the geothermal market with about\n2% of the installed capacity.\n\n \n\nThe\nWaste to Energy Market is dominated by Hitachi Zosen Inova AG, Suez, Veolia, Ramboll Group A/S, Covanta Holding Corporation, China Everbright\nInternational Ltd., Abu Dhabi National Energy Company PJSC, Babcock & Wilcox Enterprises lnc., Whaleboater Technologies lnc., Xcel\nEnergy lnc. (Source: https://www.polarismarketresearch.com/industry-analysis/waste-to-energy-market)\n\n \n\nWe\nalso compete with numerous companies that are smaller than the major companies who are focused on the smaller to medium sized installations\nin Waste Heat Recovery and Waste to Energy. We believe our waste to energy products are more efficient for use in small and medium sized\noperations than our competitors and provide us with a competitive advantage on that basis.\n\n \n\nIn\nChina, our NG trading operations compete with large state-owned LNG producers and importers such as Sinopec and many smaller local energy\ntrading companies in the PRC. We compete based on price and consistency of services.\n\n \n\n18\n\n \n\n \n\n**Company\nInformation**\n\n \n\nWe\nwere incorporated in California in July 1995 under the name Probe Manufacturing Industries, Inc. We redomiciled to Nevada in April 2005\nunder the name Probe Manufacturing, Inc. We manufactured electronics and provided services to original equipment manufacturers (OEMs)\nof industrial, automotive, semiconductor, medical, communication, military, and high technology products. On September 11, 2015, Clean\nEnergy HRS, or “CE HRS”, our wholly owned subsidiary, acquired the assets of Heat Recovery Solutions from General Electric\nInternational. In November 2015, we changed our name to Clean Energy Technologies, Inc.\n\n \n\nOur\nprincipal executive offices are located at 1340 Reynolds Avenue Unit 120, Irvine, California, 92614. Our telephone number is (949) 273-4990.\nOur common stock is listed on the Nasdaq Capital Market under the symbol “CETY.”\n\n \n\nOur\ninternet website address is www.cetyinc.com, and our subsidiary’s website is www.heatrecoverysolutions.com. The information\ncontained on our websites are not incorporated by reference into this document, and you should not consider any information contained\non, or that can be accessed through, our website as part of this document.\n\n \n\nThe\nCompany has four reportable segments: Clean Energy HRS (HRS), CETY Europe, the legacy electronic manufacturing services (Electronic Assembly)\ndivision, and CETY Hong Kong.\n\n \n\n**Patents**\n\n \n\nWe hold 16 patents in 6 countries and 28 pending applications in 8 countries, which were acquired from General Electric International\nrelating to our magnetic turbine technology. \n\n \n\n**Intellectual\nProperty**\n\n \n\nAs\npart of our asset acquisition from General Electric International, we acquired an exclusive, irrevocable, sublicensable, limited transferable,\nroyalty free, fully paid, worldwide perpetual license to develop, improve and commercialize Calnetix’s magnetic turbine in any\nOrganic Rankine Cycle based application where heat is sourced from a reciprocating combustion engine of any type, except marine vessels,\nany gas or steam turbine systems for electrical power generation applications or any type of biomass boiler system.\n\n \n\nWe\nhave an intellectual property rights purchase and transfer agreement with ENEX for its pyrolysis system.\n\n \n\n**Facilities**\n\n \n\nWe\nare headquartered in Irvine, California, and we have a 3,000 sq-ft office in Irvine. Our Heat Recovery Solutions business unit\noperates from a 6,000 sq-ft state-of-the-art facility in Irvine, California. We have in-house electro-mechanical assembly and\ntesting capabilities. Our products are compliant with American Society of Mechanical Engineers and are UL and CE approved. We also\nhave a 1,000 sq-ft sales and service center located in Treviso, Italy. We also have a 2000 sq-ft R&D center in Antalya, Turkey.\nOur Asian headquarters is located in Hong Kong and our 3000 sq-ft Engineering consultancy and Natural Gas Trading company is located\nin Chengdu, China.\n\n \n\n**Employees**\n\n \n\nWe\npresently have approximately 33 total employees, including operational, engineering, accounting and marketing personnel. We utilize\nan extensive number of consultants as well and have never experienced work stoppages, and we are not a party to any collective\nbargaining agreement. We have 20 employees in JHJ & SHJ in China.\n\n \n\n19\n\n \n\n \n\n**Government\nRegulation**\n\n \n\nOur\noperations are subject to certain foreign, federal, state and local regulatory requirements relating to environmental, waste management,\nand health and safety matters. We believe we operate in substantial compliance with all applicable requirements. However, material costs\nand liabilities may arise from these requirements or from new, modified or more stringent requirements. Material cost may rise due to\nadditional manufacturing cost of raw or made parts with the application of new regulations. Our liabilities may also increase due to\nadditional regulations imposed by foreign, federal, state and local regulatory requirements relating to environmental, waste management,\nand health and safety matters. In addition, our past, current and future operations and those of businesses we acquire, may give rise\nto claims of exposure by employees or the public or to other claims or liabilities relating to environmental, waste management or health\nand safety concerns.\n\n \n\nOur\nmarkets can be positively or negatively impacted by the effects of governmental and regulatory matters. We are affected not only by energy\npolicy, laws, regulations and incentives of governments in the markets into which we sell, but also by rules, regulations and costs imposed\nby utilities. Utility companies or governmental entities could place barriers on the installation of our product or the interconnection\nof the product with the electric grid. Further, utility companies may charge additional fees to customers who install on-site power generation,\nthereby reducing the electricity they take from the utility, or for having the capacity to use power from the grid for back-up or standby\npurposes. These types of restrictions, fees or charges could hamper the ability to install or effectively use our products or increase\nthe cost to our potential customers for using our systems in the future. This could make our systems less desirable, thereby adversely\naffecting our revenue and profitability potential. In addition, utility rate reductions can make our products less competitive which\nwould have a material adverse effect on our future operations. These costs, incentives and rules are not always the same as those faced\nby technologies with which we compete. However, rules, regulations, laws and incentives could also provide an advantage to our Heat Recovery\nSolutions as compared with competing technologies if we are able to achieve required compliance at a lower cost when our Clean Cycle\nTM generators are commercialized. Additionally, reduced emissions and higher fuel efficiency could help our future customers\ncombat the effects of global warming. Accordingly, we may benefit from increased government regulations that impose tighter emission\nand fuel efficiency standards.\n\n \n\nDue\nto our operations in China, we are subject to additional regulations that apply to companies doing business in mainland China. See “*Disclosures\nRelating to Our Chinese Operations*” for more information.\n\n \n\n**Research\nand Development**\n\n \n\nWe\nhad no expenses in Research and Development costs during the years ended December 31, 2024 and 2023.\n\n \n\n**WHERE\nYOU CAN GET ADDITIONAL INFORMATION**\n\n \n\nWe\nfile annual, quarterly and current reports, proxy statements and other information with the SEC. You may read and copy our reports or\nother filings made with the SEC at the SEC’s Public Reference Room, located at 100 F Street, N.E., Washington, DC 20549. You can\nobtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. You can also access these reports\nand other filings electronically on the SEC’s web site, www.sec.gov."}