Financial Analysis

NOTE 11 COMMITMENTS AND CONTINGENCIES Operating Rental Leases ASB ASU 2016-02 Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model but has been updated to align with certain changes to the lessee model and the new revenue recognition standard. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have adopted the above ASU as of January 1, 2019. The right of use asset and lease liability have been recorded at the present value of the future minimum lease payments, utilizing an average borrowing rate and the company is utilizing the transition relief and running off on current leases. As of May 1, 2017, our corporate headquarters were located at 2990 Redhill Unit A, Costa Mesa, CA. On March 10, 2017, the Company signed a lease agreement for an 18,200 -square foot CTU Industrial Building. Lease term is seven years and two months beginning July 1, 2017. This lease ended as of November 30, 2023. In October of 2018 we signed a sublease agreement with o …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10 NOTES PAYABLE On November 11, 2013, we entered into an accounts receivable financing agreement with American Interbanc (now Nations Interbanc). Amounts outstanding under the agreement bear interest at the rate of 2.5 % per month. It is secured by the assets of the Company. In addition, it is personally guaranteed by Kambiz Mahdi, our Chief Executive Officer. As of December 31, 2025, the outstanding balance was $ 614,574 compared to $ 662,804 at December 31, 2024. On April 1, 2021, we entered into an amendment to the purchase order financing agreement with DHN Capital, LLC dba Nations Interbanc. Nations Interbanc has lowered the accrued fees balance by $ 275,000.00 as well as the accrual rate to 2.25 % per 30 days. As a result, CETY has agreed to remit a minimum monthly payment of $ 50,000 by the final calendar day of each month. The balance of this debt as of December 31, 2025, is $ 614,574 . During the year, the Company entered into several sale of future receipts / merchant cash-advance arrangements with Reliance Financial FL LLC, as well as a subordinated business loan with Agile Lending, LLC and a purchase order financing facility with Nations Interbanc. Although certain Reliance contracts are legally structured as non-recourse sales of future business receipts, management concluded that these arrangements do not involve the transfer of discrete existing financial assets that would qualify for derecognition under ASC 860. Instead, the Company continues to generate …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 17 INCOME TAX CETY Europe CETY Europe is one of the Companys subsidiaries in Italy, and is subject to 24 % corporate income tax rate. Hong Kong CETY HK is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate for the first HKD 2 million of assessable profits is 8.25 % and assessable profits above HKD $ 2 million will continue to be subject to the rate of 16.5 % for corporations in Hong Kong, effective from the year of assessment 2023/2024. CETY HK did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. PRC Under the Enterprise Income Tax (EIT) Law of the PRC, domestic enterprises and Foreign Investment Enterprises (the FIE) are usually subject to a unified 25 % EIT rate while preferential tax rates, tax holidays, and even tax exemption may be granted on case-by-case basis. From January 1, 2022 to December 31, 2025, small and low-profit enterprises with annual taxable income exceeding RMB 1 million but not more than RMB 3 million, the actual income to be taxed will be at 5 % of annual taxable income, and the corporate income tax is paid at the rate of 5 %. The current PRC EIT Law imposes a 10 % withholding income tax for dividends distributed by foreign invested enterprises to their immediate holding companies outside the PRC …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards The Companys management reviewed all recently issued ASUs not yet adopted by the Company and does not believe the future adoptions of any such ASUs may be expected to cause a material impact on the Companys consolidated financial condition or the results of its operations. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 13 RELATED PARTY TRANSACTIONS On May 13, 2021, the Company formed CETY Capital LLC a wholly owned subsidiary of CETY. In addition, the company established VRG with our partner, Synergy Bioproducts Corporation (SBC) The purpose of the joint venture is the development of a pyrolysis plant established to convert wood feedstock into electricity and BioChar by using high temperature ablative fast pyrolysis reactor for which Clean Energy Technology, Inc. holds the license for. The VRG is in Lyndon, Vermont. Based upon the terms of the members agreement, CETY Capital LLC owns a 49 % interest and SBC owns a 51 % interest in VRG. On June 2, 2023, CETY Renewables executed a turnkey agreement with VRG for the design, construction, and delivery of an organics-to-energy plant. As a result of this agreement, CETY invoiced VRG $ 110,517 in 2024 and $ 484,955 in 2025, which have been recorded as related party revenue in the respective periods. CETY Renewables currently has $ 2,431,485 accounts receivable from Vermont Renewable Gas (VRG). The receivable relates to development, engineering, permitting, project management and other services performed under the turnkey agreement. As of December 31, 2025, the VRG project continued to advance through the permitting, engineering and development phases, including ongoing regulatory review and project milestones necessary for financing and construction. Management believes the revenue recognition criteria associated with these services continue …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 12 CAPITAL STOCK TRANSACTIONS On January 6, 2023, our board of directors and majority shareholders approved a reverse stock split. Effective upon the filing of our Certificate of Amendment of Articles of Incorporation with the Secretary of State of the State of Nevada, the shares of the Corporations Common Stock issued and outstanding immediately prior to the Effective Time of January 6, 2023, will be automatically reclassified as and combined into shares of Common Stock such that each (40) shares of Old Common Stock shall be reclassified as and combined into one (1) share of New Common Stock. All per share references to common stock have been retroactively represented throughout the financials. On September 26, 2025, the Company filed a Certificate of Change Pursuant to Nevada Revised Statutes Section 78.209 with the Secretary of State of the State of Nevada effecting a 1-for-15 reverse stock split of the Companys issued and outstanding common stock, with a corresponding reduction in authorized common stock from 2,000,000,000 shares to 133,333,333 shares. The Reverse Stock Split became effective in the market at the opening of trading on the Nasdaq Capital Market on October 6, 2025. The par value per share of $ 0.001 was not affected, and the number of authorized shares of preferred stock was not affected. All share and per-share information presented in this Note relating to periods on or after January 6, 2023 has been retroactively adjusted to reflect the Reverse Stoc …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 20 SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements were issued. The Company has determined that there are no other such events that warrant disclosure or recognition in the financial statements, except as noted below. On January 2, 2026, Pacific Pier converted $ 103,000 of the principal and $ 1,809 of interest of their note dated April 4, 2025 into 242,140 of our common shares. On January 16, 2026, the Company issued 131,187 shares of common stock to Pacific Pier pursuant to its conversion of $ 83,000 of the principal and $ 0 of interest owed under the convertible promissory note issued to Pacific Pier on April 22, 2025. On January 21, 2026, the Company issued 307,038 shares of common stock to First Fire pursuant to its conversion of $ 120,750 of the principal and $ 12,075 of interest owed under the convertible promissory note issued to Pacific Pier on July 18, 2025. On January 29, 2026, the Company issued 132,694 shares of common stock to Pacific Pier pursuant to its conversion of $ 85,000 of the principal and $ 0 of interest owed under the convertible promissory note issued to Pacific Pier on April 22, 2025. On January 12, 2026, the Company entered into a note purchase agreement (the Filled Purchase Agreement) with Filled Converge Limited, a limited liability company formed under the laws of the British Virgin Islands (Filled) and Li Xiaoguang (collectively the Sellers), pursuant to which the Company would acquire …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

NOTE 11 COMMITMENTS AND CONTINGENCIES Operating Rental Leases We have relocated our corporate office to 1340 Reynolds Avenue Unit 120, Irvine, CA 92614. On December 1, 2023, the Company signed a lease agreement for a 3000 -square foot of office space with Metro Creekside California, LLC. Lease term is thirty-eight months beginning December 1, 2023 and expiring on January 31, 2027. On October 16 of 2023, we signed a sublease agreement to relocate the HRS operations from Costa Mesa to Irvine, California for one year and 7 months commencing December 1, 2023 and ending September 30, 2025. We also signed a temporary storage lease and Due to the short termination clause, we are treating this as a month-to-month lease. On April 9, 2025, we entered a lease for our office in City of Irvine, California, on June 4, 2025, we amended this lease for additional area. The lease is for the period from July 1, 2025 through June 30, 2028 with monthly rent of $ 9,577 , with an annual increase of 4 % starting from the second year of the lease. On January 30, 2024, JHJ entered into a lease for the office in Chengdu City (Chengdu lease), China from January 30, 2024 to February 28, 2026 and has a monthly rent of RMB 28,200 including the VAT. The lease required a security deposit of RMB 77,120 (or $ 10,600 ). The Company received a one-month rent abatement, which was considered in calculating the present value of the lease payments to determine the ROU asset which is being amortized over the term of …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10 LINE OF CREDIT AND NOTES PAYABLE On November 11, 2013, we entered into an accounts receivable financing agreement with American Interbanc (now Nations Interbanc). Amounts outstanding under the agreement bear interest at the rate of 2.5 % annually. It is secured by the assets of the Company. In addition, it is personally guaranteed by Kambiz Mahdi, our Chief Executive Officer. As of March 31, 2026, the outstanding balance was $ 623,641 compared to $ 614,575 at December 31, 2025. On April 1, 2021, we entered into an amendment to the purchase order financing agreement with DHN Capital, LLC dba Nations Interbanc. Nations Interbanc has lowered the accrued fees balance by $ 275,000 as well as the accrual rate to 2.25 % per 30 days. As a result, CETY has agreed to remit a minimum monthly payment of $ 25,000 by the final calendar day of each month, The Company has not made the required monthly payments and is currently in default under the terms of the agreement. During the year 2024, 2025, and quarter ended March 31, 2026, the Company entered into several sale of future receipts / merchant cash-advance arrangements with Reliance Financial FL LLC, as well as a subordinated business loan with Agile Lending, LLC and a purchase order financing facility with Nations Interbanc. Although certain Reliance contracts are legally structured as non-recourse sales of future business receipts, management concluded that these arrangements do not involve the transfer of discrete existing fi …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The standard enhances income tax disclosures by requiring more detailed information regarding the effective tax rate reconciliation and income taxes paid. The Company adopted ASU 2023-09 effective January 1, 2025. The adoption of this standard did not have a material impact on the Companys consolidated financial statements or related disclosures. Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The standard requires public business entities to provide additional disaggregated information regarding certain expense captions presented in the income statement. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact that adoption of this standard will have on its consolidated financial statements and related disclosures. In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270), which enhances interim financial reporting disclosures by improving the consistency and transparency of …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 13 RELATED PARTY TRANSACTIONS On May 13, 2021, the Company formed CETY Capital LLC a wholly owned subsidiary of CETY. In addition, the company established VRG with our partner, Synergy Bioproducts Corporation (SBC) The purpose of the joint venture is the development of a pyrolysis plant established to convert wood feedstock into electricity and BioChar by using high temperature ablative fast pyrolysis reactor for which Clean Energy Technology, Inc. holds the license for. The VRG is in Lyndon, Vermont. Based upon the terms of the members agreement, CETY Capital LLC owns a 49 % interest and SBC owns a 51 % interest in VRG. On June 4, 2023, CETY Renewables executed a turnkey agreement with VRG for the design, construction, and delivery of an organics-to-energy plant. As a result of this agreement, HRS and CETY Renewables invoiced VRG $ 882,374 in 2023, $ 1,064,757 in 2024, and $ 406,666 in 2025 which have been recorded as related party revenue in the respective periods. CETY currently has $ 2,350,797 accounts receivable from Vermont Renewable Gas as of March 31, 2026, and December 31, 2025. As of March 31, 2026, amounts due from related parties totaled approximately $ 337,824 , consisting primarily of (i) approximately $ 159,563 due from Shuya, a former subsidiary disposed of during the fourth quarter of 2025, and (ii) $ 178,261 due from the Companys Chief Financial Officer as an advance of salary. As of March 31, 2026, the Company owed approximately $ 63,950 to its Chief E …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 12 CAPITAL STOCK TRANSACTIONS On January 6, 2023, our board of directors and majority shareholders approved a reverse stock split. Effective upon the filing of our Certificate of Amendment of Articles of Incorporation with the Secretary of State of the State of Nevada, the shares of the Corporations Common Stock issued and outstanding immediately prior to the Effective Time of January 6, 2023, will be automatically reclassified as and combined into shares of Common Stock such that each (40) shares of Old Common Stock shall be reclassified as and combined into one (1) share of New Common Stock. All per share references to common stock have been retroactively represented throughout the financials. On September 26, 2025, the Company filed a Certificate of Change Pursuant to Nevada Revised Statutes Section 78.209 with the Secretary of State of the State of Nevada effecting a 1-for-15 reverse stock split of the Companys issued and outstanding common stock, with a corresponding reduction in authorized common stock from 2,000,000,000 shares to 133,333,333 shares. The Reverse Stock Split became effective in the market at the opening of trading on the Nasdaq Capital Market on October 6, 2025. The par value per share of $ 0.001 was not affected, and the number of authorized shares of preferred stock was not affected. All share and per-share information presented in this Note relating to periods on or after January 6, 2023 has been retroactively adjusted to reflect the Reverse Stoc …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 18 SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements were issued. The Company has determined that there are no other such events that disclosure or recognition in the financial statements, except as noted below. Notes Payable Effective April 20, 2026, Clean Energy Technologies, Inc. (the Company) entered into a securities purchase agreement (the PPC SPA) with Pacific Pier Capital II, LP, a Delaware limited partnership (Pacific Pier), pursuant to which the Company sold, and Pacific Pier purchased, a convertible promissory note in the principal amount of $ 406,000 (the PPC Note) for a purchase price of $ 357,280 (the PPC Transaction), and one time fee of $ 48,720 . The PPC Transaction was funded by Pacific Pier and closed on April 20, 2026, and pursuant to the SPA, Pacific Piers legal expenses of $ 7,000 were paid from the gross purchase price, the Company received net funding of $ 350,280 , and the Note was issued to Pacific Pier. The PPC Note matures 12 months following the issue date set forth in the PPC Note (April 20, 2026), accrues interest of 12% per annum, and is convertible into shares of the Companys common stock at the election of the holder, at or following six months after the issue date, at a conversion price equal to 85% of the lowest daily volume-weighted average price on any trading day during the 10 trading days prior to the conversion date; provided, however, that the holder may not convert the PPC No …

SubsequentEventsTextBlock · excerpt; the full note is in the filing