The accompanying footnotes are an integral part of these consolidated financial statements

The accompanying footnotes are an integral part of these Consolidated financial statements

The accompanying footnotes are an integral part of these consolidated financial statements

These unaudited interim consolidated financial statements as of and for the ~~six~~three months ended ~~June 30, 2022,~~March 31, 2023, reflect all adjustments which, in the opinion of management, are necessary to fairly state the Company’s financial position and the results of its operations for the periods presented, in accordance with the accounting principles generally accepted in the United States of America. All adjustments are of a normal recurring nature.

These unaudited interim consolidated financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s fiscal year end December 31, ~~2021~~2022 report. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the ~~six~~three months ended ~~June 30, 2022~~March 31, 2023 are not necessarily indicative of results for the entire year ending December 31, ~~2022.~~2023.

The summary of significant accounting policies of Clean Energy Technologies, Inc. is presented to assist in the understanding of the Company’s financial statements. The financial statements and notes are representations of the Company’s management, who is responsible for their integrity and objectivity.

We were incorporated in California in July 1995 under the name Probe Manufacturing Industries, Inc. We redomiciled to Nevada in April 2005 under the name Probe Manufacturing, Inc. We manufactured electronics and provided services to original equipment manufacturers (OEMs) of industrial, automotive, semiconductor, medical, communication, military, and high technology products. On September 11, 2015 Clean Energy HRS, or “CE HRS”, our wholly owned subsidiary acquired the assets of Heat Recovery Solutions from General Electric International. In November 2015, we changed our name to Clean Energy Technologies, Inc.

Our principal executive offices are located at 2990 Redhill Avenue, Costa Mesa, CA 92626. Our telephone number is (949) 273-4990. Our common stock is listed on the ~~OTCQB~~Nasdaq Markets under the symbol “CETY.”

Our internet website address is www.cetyinc.com and our subsidiary’s web site is www.heatrecoverysolutions.com The information contained on our websites are not incorporated by reference into this document, and you should not consider any information contained on, or that can be accessed through, our website as part of this document.

The Company has four reportable segments: Clean Energy HRS (HRS), CETY Europe, and the legacy electronic manufacturing services (Electronic Assembly) division and CETY ~~Honk Kong.~~HK.

The 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~~equity of $~~646,909~~6,001,109 and a working capital ~~deficit~~ of $~~3,208,372~~2,377,048 as of ~~June 30, 2022.~~March 31, 2023. The company also had an accumulated deficit of $~~17,883,464~~18,350,395 as of ~~June 30, 2022.~~March 31, 2023. 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.

~~We develop renewable energy products and solutions and establish partnerships in renewable energy that make environmental and economic sense.~~ Our mission is to be a ~~segment~~ leader in the ~~Zero Emission Revolution~~zero-emission revolution by ~~offering recyclable~~providing eco-friendly energy solutions, clean energy fuels, and alternative electric power for small ~~and~~to mid-sized projects inacross North America, Europe, and Asia. ~~We target sustainable~~The company harnesses the power of heat and biomass to produce electricity with zero emissions and minimal cost. Additionally, the company offers Waste to Energy Solutions, converting waste materials from manufacturing, agriculture, and wastewater treatment plants into electricity and BioChar. Clean Energy Technologies also provides

Engineering, Consulting, and Project Management Solutions, leveraging its expertise to develop clean energy ~~solutions that are profitable~~projects for ~~us, profitable for our~~both municipal and industrial customers, as well as Engineering, Procurement, and ~~represent the future of global energy production.~~Construction (EPC) companies.

~~Waste~~ Heat Recovery Solutions – ~~we recycle wasted heat produced in manufacturing, waste to energy and power generation facilities using our~~Clean Energy Technologies patented Clean Cycle^TM ~~generator to create electricity which~~ Generator (CCG) is a heat recovery system that captures waste heat from various sources and converts it into electricity. This system can be ~~recycled or sold~~integrated into various industrial processes, helping to ~~the grid.~~reduce energy costs and carbon emissions.

Waste to Energy Solutions - ~~we convert~~Clean Energy Technologies’ waste to energy solutions involve converting organic waste materials, such as agricultural waste and food waste, into clean energy through its proprietary gasification technology that produce a range of products, ~~created in manufacturing, agriculture, wastewater treatment plants~~including electricity, heat, and ~~other industries to electricity, renewable natural gas (“RNG”), hydrogen and bio char which are sold or used by our customers.~~biochar.

Engineering, Consulting and Project Management Solutions – ~~We have expanded our legacy electronics~~Clean Energy Technologies offers engineering and manufacturing ~~business~~services to help clients bring their sustainable energy products to market. This includes design, prototyping, testing, and ~~plan to manufacture component parts for our Waste Heat Recovery~~production services. Clean Energy Technologies’ expertise in engineering and ~~Waste to Energy business and~~manufacturing enables it to provide ~~consulting services~~customized solutions to ~~municipal and industrial customers and Engineering, Procurement and Construction (EPC) companies so they can identify, design and incorporate clean energy solutions in their projects.~~meet clients’ specific needs.

Clean Energy Technologies (H.K.) Limited (“CETY HKHK”) consists of two business ventures in mainland China:(i) our ~~LNG~~natural gas (“NG”) trading operations sourcing and suppling ~~LNG~~NG to industries and municipalities. ~~The LNG~~NG is principally used for heavy truck refueling stations and urban or industrial ~~users in areas that do not have a connection to local LNG pipeline systems.~~users. We purchase large quantities of ~~LNG~~NG from large wholesale ~~LNG~~NG depots at fixed prices which are prepaid for in advance at a discount to market. We sell the ~~LNG~~NG to our customers at fixed prices or prevailing daily spot prices for the duration of the contracts; and (ii) our planned joint venture with a large state-owned gas enterprise in China called Shenzhen Gas (Hong Kong) International Co. Ltd. (“Shenzhen Gas”), acquiring natural gas pipeline operator facilities, ~~each~~ primarily located in the ~~southern~~southwestern part of ~~Sichuan Province and portions of Yunnan Province.~~China. Our planned joint venture with Shenzhen Gas plans to acquire, with financing from Shenzhen Gas, natural gas pipeline operator facilities with the goal of aggregating and selling the facilities to Shenzhen Gas in the future. According to our Framework Agreement with Shenzhen Gas, we will be required to contribute $8 million to the joint ~~venture.~~venture which plans to raise those funds in future rounds of financing. The terms of the joint venture are subject to the execution of definitive agreements.

NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The summary of significant accounting policies of Clean Energy Technologies, Inc. (formerly Probe Manufacturing, Inc.) is presented to assist in the understanding of the Company’s financial statements. The financial statements and notes are representations of the Company’s management, who is responsible for their integrity and objectivity.

The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates may be materially different from actual financial results. Significant estimates include the recoverability of long-lived assets, the collection of accounts receivable and valuation of inventory and reserves.

We maintain the majority of our cash accounts at JP Morgan Chase bank. The total cash balance is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000, (which we may exceed from time to time) per commercial bank. For purposes of the statement of cash flows we consider all cash and highly liquid investments with initial maturities of one year or less to be cash equivalents.

Our ability to collect receivables is affected by economic fluctuations in the geographic areas and industries served by us. Reserves for un-collectable amounts are provided, based on past experience and a specific analysis of the accounts. Although we expect to collect amounts due, actual collections may differ from the estimated amounts. As of ~~June 30, 2022,~~March 31, 2023, and December 31, ~~2021,~~2022, we had a reserve for potentially un-collectable accounts receivable of $~~75,000~~95,000. Our policy for reserves for our long-term financing receivables is determined on a contract-by-contract basis and considers the length of the financing arrangement. As of ~~June 30, 2022,~~March 31, 2023, and December 31, ~~2021,~~2022, we had a reserve for potentially un-collectable long-term financing receivables of $247,500 and $247,500 respectively.

~~Four (4)~~Seven (7) customers accounted for approximately 98% of accounts receivable on ~~June 30, 2022.~~March 31, 2023. Our trade accounts primarily represent unsecured receivables. Historically, our bad debt write-offs related to these trade accounts have been insignificant.

As of ~~June 30, 2022,~~March 31, 2023, and December 31, ~~2021~~2022 we had a lease asset that was purchased from General Electric with a value of $1,309,527, however due the purchase price allocation, we recognized a value of $217,584. The lease is due to be commissioned in the ~~first~~third quarter of ~~2022~~2023 and will generate approximately $20,000 per month for 120 months. See note 3 for additional information.

Inventories are valued at the lower of weighted average cost or market value. Our industry experiences changes in technology, changes in market value and availability of raw materials, as well as changing customer demand. We make provisions for estimated excess and obsolete inventories based on regular audits and cycle counts of our on-hand inventory levels and forecasted customer demands and at times additional provisions are made. Any inventory write offs are charged to the reserve account. As of ~~June 30, 2022,~~March 31, 2023, and December 31, ~~2021,~~2022, we had a reserve for potentially obsolete inventory of $~~321,104~~897,808.

Property and equipment are recorded at cost. Assets held under capital leases are recorded at lease inception at the lower of the present value of the minimum lease payments or the fair market value of the related assets. The cost of ordinary maintenance and repairs is charged to operations. Depreciation and amortization are computed on the straight-line method over the following estimated useful lives of the related assets:

Our management assesses the recoverability of its long-lived assets by determining whether the depreciation and amortization of ~~long lived~~long-lived assets over their remaining lives can be recovered through projected undiscounted future cash flows. The amount of long-lived asset impairment if any, is measured based on fair value and is charged to operations in the period in which long-lived assets impairment is determined by management. There can be no assurance however, that market conditions will not change or demand for our services will continue, which could result in impairment of long-lived assets in the future.

The Company recognizes revenue under ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASC 606”).

An entity transfers control of a good or service over time and satisfies a performance obligation and recognizes revenue over time if one of the following criteria is met:

a. The customer receives and consumes the benefits provided by the entity’s performance as the entity performs (as described in FASB ASC 606-10-55-5 through 55-6).

b. The entity’s performance creates or enhances an asset (for example, work in process) that the customer controls as the asset is created or enhanced (as described in FASB ASC 606-10-55-7).

c. The entity’s performance does not create an asset with an alternative use to the entity (see FASB ASC 606-10-25-28), and the entity has an enforceable right to payment for performance completed to date (as described in FASB ASC 606-10-25-29).

If a performance obligation is not satisfied over time, the performance obligation is satisfied at a point in time. To determine the point in time at which a customer obtains control of a promised asset and the entity satisfies a performance obligation, the entity should consider the guidance on control in FASB ASC 606-10-25-23 through 25-26. In addition, it should consider indicators of the transfer of control, which include, but are not limited to, the following:

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

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

The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer. In addition a) the company also does not have an alternative use for the asset if the customer were to cancel the contract, and b.) has a fully enforceable right to receive payment for work performed (i.e., customers are required to pay as various milestones and/or timeframes are met)

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

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

Also, from time to time our contracts state that the customer is not obligated to pay a final payment until the units are commissioned, i.e. a final payment of 10%. As of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 we had $33,000 and 33,000 of deferred revenue, which is expected to be recognized in the fourth quarter of year ~~2022.~~2023.

Also, from time to time we require upfront deposits from our customers based on the contract. As of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, we had outstanding customer deposits of $0284,112 and $~~24,040~~80,475 respectively.

The Financial Accounting Standards Board issued ASC (Accounting Standards Codification) 820-10 (SFAS No. 157), “Fair Value Measurements and Disclosures” for financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. FASB ASC 820-10 defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required by the standard that the Company uses to measure fair value:

The Company’s financial instruments consist of cash, prepaid expenses, inventory, accounts payable, convertible notes payable, advances from related parties, and derivative liabilities. The estimated fair value of cash, prepaid expenses, investments, accounts payable, convertible notes payable and advances from related parties approximate their carrying amounts due to the short-term nature of these instruments.

The carrying amounts of the Company’s financial instruments as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 reflect:

The carrying amount of accounts payable and accrued expenses are considered to be representative of their respective fair values because of the short-term nature of these financial ~~inst~~instruments.~~ruments.~~

We have no material components of other comprehensive income (loss) and accordingly, net loss is equal to comprehensive loss in all periods. The accounts of the Company’s Chinese entities are maintained in RMB. The accounts of the Chinese entities were translated into USD in accordance with FASB ASC Topic 830 “Foreign Currency Matters.” All assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at historical rates and the statements of operations and cash flows are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income (loss) in accordance with FASB ASC Topic 220, “Comprehensive Income.” Gains and losses resulting from foreign currency transactions are reflected in the statements of operations.

The Company follows FASB ASC Topic 220-10, “Comprehensive Income (loss).” Comprehensive income (loss) comprises net income (loss) and all changes to the statements of changes in stockholders’ equity, except those due to investments by stockholders, changes in additional paid-in capital and distributions to stockholders.

In July 2022, JHJ and other three shareholders agreed to form and make total capital contribution of RMB 20 million ($2.81 million) with latest contribution due date in February 2066 into Sichuan Hongzuo Shuya Energy Limited (“Shuya”), JHK owns 20% of Shuya. In August 2022, JHJ purchased 100% ownership of Sichuan Shunengwei Energy Technology Limited (“SSET”) for $0, who owns 29% of Shuya; Shunengwei is a holding company and did not have any operations nor made any capital contribution into Shuya as of the ownership purchase date by JHJ; right after the ownership purchase of SSET, JHJ ultimately owns 49% of Shuya.

Shuya was setup as the operating entity for pipeline natural gas (PNG) and compressed natural gas (CNG) trading business, while the other two shareholders of Shuaya have large supply relationships.

For the year ended December 31, 2022, the Company has determined that Shuya was not a VIE and has evaluated its consolidation analysis under the voting interest model. Because the Company does not own greater than 50% of the outstanding voting shares, either directly or indirectly, it has accounted for its investment in Shuya under the equity method of accounting. Under this method, the investor (“JHJ”) recognizes its share of the profits and losses of the investee (“Shuya”) in the periods when these profits and losses are also reflected in the accounts of the investee. Any profit or loss recognized by the investing entity appears in its income statement. Also, any recognized profit increases the investment recorded by the investing entity, while a recognized loss decreases the investment.

JHJ made a investment of RMB 3.91 million ($0.55 million) into Shuya during the 12 months ended December 31, 2022 recorded in accordance with ASC 323. Shuya had a net loss of approximately $10,750 during the year ending December 31, 2022, of which approximately $5,000 was allocated to the company, reducing the investment by that amount.

However, effective January 1, 2023, JHJ, SSEN and Chengdu Xiangyueheng Enterprise Management Co., Ltd (“Xiangyueheng), who is the 10% shareholder of Shuya, entered a Three-Parties Consistent Action Agreement, wherein these three shareholders (or three parties) will guarantee that the voting rights will be expressed in the same way at the shareholders’ meeting of Shuya to consolidate the controlling position of the three parties in Shuya. The three parties agree that within the validity period of this agreement, before the party intends to propose the motions to the shareholders or the board of directors on the major matters related to the voting rights of the shareholders or the board of directors, the three parties internally will discuss, negotiate and coordinate the motion topics for consistency; in the event of disagreement, the opinions of JHJ shall prevail.

As a result of Consistent Action Agreement, the Company re-analyzed and determined that Shuya is the variable interest entity (“VIE”) of JHJ because 1) the equity investors at risk, as a group, lack the characteristics of a controlling financial interest, and 2) Shuya is structured with disproportionate voting rights, and substantially all of the activities are conducted on behalf of an investor with disproportionately few voting rights. Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The Company concluded JHJ is deemed the primary beneficiary of the VIE. Accordingly, the Company consolidates Shuya effective on January 1, 2023.

Under 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. And the public business entities 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. However, Shuya was incorporated in July 2022, and the actual consolidation was effective on January 1, 2023, therefore, no comparative period adjustments are presented for the three months ended March 31, 2022 as they do not exist.

Basic profit / (loss) per share is computed on the basis of the weighted average number of common shares outstanding. At ~~June 30, 2022,~~March 31, 2023, we had outstanding common shares of ~~966,675,946~~38,495,453 used in the calculation of basic earnings per share. Basic Weighted average common shares and equivalents for the three months ended ~~June 30,~~March 31, 2023, and March 31, 2022 ~~and June 30, 2021~~ were ~~965,929,205~~37,255,674 and ~~895,498,243~~23,807,336 respectively. As of ~~June 30, 2022,~~March 31, 2023, we had convertible notes, convertible into approximately ~~564,920,304~~2,149,991 of additional common shares,~~14,375,000~~617,000 common stock warrants. Fully diluted weighted average common shares and equivalents were withheld from the calculation for the three months ended ~~June 30,~~March 31, 2023, and March 31, 2022 ~~and June 30, 2021~~ as they were considered anti-dilutive.

We had 0no amounts of research and development R&D expense during the three & ~~six~~three months ended ~~June 30, 2022~~March 31, 2023, and ~~2021.~~2022.

FASB Codification Topic 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has 4four reportable segments: Clean Energy HRS (HRS), CETY Europe, CETY HK and ~~the legacy electronic~~engineering & manufacturing services ~~division and CETY HK.~~division. The segments are determined based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics. Refer to note 1 for a description of the various product categories manufactured under each of these segments.

An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation, other charges (income), net and interest and other, net.

The Company has adopted the use of Statement of Financial Accounting Standards No. 123R, “Share-Based Payment” (SFAS No. 123R) (now contained in FASB Codification Topic 718, Compensation-Stock Compensation), which supersedes APB Opinion No. 25, “Accounting for Stock Issued to Employees,” and its related implementation guidance and eliminates the alternative to use Opinion 25’s intrinsic value method of accounting that was provided in Statement 123 as originally issued. This Statement requires an entity to measure the cost of employee services received in exchange for an award of an equity instruments, which includes grants of stock options and stock warrants, based on the fair value of the award, measured at the grant date (with limited exceptions). Under this standard, the fair value of each award is estimated on the grant date, using an option-pricing model that meets certain requirements. We use the Black-Scholes option-pricing model to estimate the fair value of our equity awards, including stock options and warrants. The Black-Scholes model meets the requirements of SFAS No. 123R; however, the fair values generated may not reflect their actual fair values, as it does not consider certain factors, such as vesting requirements, employee attrition and transferability limitations. The Black-Scholes model valuation is affected by our stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. We estimate the expected volatility and estimated life of our stock options at grant date based on historical volatility. For the “risk-free interest rate,” we use the Constant Maturity Treasury rate on 90-day government securities. The term is equal to the time until the option expires. The dividend yield is not applicable, as the Company has not paid any dividends, nor do we anticipate paying them in the foreseeable future. The fair value of our restricted stock is based on the market value of our free trading common stock, on the grant date calculated using a 20-trading-day average. At the time of grant, the share-based compensation expense is recognized in our financial statements based on awards that are ultimately expected to vest using historical employee attrition rates and the expense is reduced accordingly. It is also adjusted to account for the restricted and thinly traded nature of the shares. The expense is reviewed and adjusted in subsequent periods if actual attrition differs from those estimates.

We re-evaluate the assumptions used to value our share-based awards on a quarterly basis and, if changes warrant different assumptions, the share-based compensation expense could vary significantly from the amount expensed in the past. We may be required to adjust any remaining share-based compensation expense, based on any additions, cancellations or adjustments to the share-based awards. The expense is recognized over the period during which an employee is required to provide service in exchange for the award—the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. For the three months ended ~~June 30,~~March 31, 2023, and 2022 ~~and 2021~~ we had $0 in share-based expense, due to the issuance of common stock. As of ~~June 30, 2022,~~March 31, 2023, we had no further non-vested expense to be recognized.

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

On December 22, 2018 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the “Tax Act”) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (“Federal Tax Rate”) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the year ended December 31, ~~2022~~2023 using a Federal Tax Rate of 21% and an estimated state of California rate of 9%.

Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard required by ASC 740-10-25-5.

Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes.

As of ~~June 30, 2022,~~March 31, 2023, we had a net operating loss carry-forward of approximately $(~~9,067,587~~8,275,877) and a deferred tax asset of $~~2,720,276~~2,482,763 using the statutory rate of ~~30%~~30%. The deferred tax asset may be recognized in future periods, not to exceed 20 years. However, due to the uncertainty of future events we have booked a valuation allowance of $(~~2,720,276~~2,482,763). FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. On ~~June 30, 2022~~March 31, 2023 the Company ~~had~~did not ~~taken~~take any tax positions that would require disclosure under FASB ASC 740.

On February 13, 2018, Clean Energy Technologies, Inc., a Nevada corporation (the “Registrant” or “Corporation”) entered into a Common Stock Purchase Agreement (“Stock Purchase Agreement”) by and between MGW Investment I Limited (“MGWI”) and the Corporation. The Corporation received $907,388in exchange for the issuance of 302,462,667 restricted shares of the Corporation’s common stock, par value $.001 per share (the “Common Stock”).

On February ~~13,2018~~13, 2018, the Corporation and Confections Ventures Limited. (“CVL”) entered into a Convertible Note Purchase Agreement (the “Convertible Note Purchase Agreement,” together with the Stock Purchase Agreement and the transactions contemplated thereunder, the “Financing”) pursuant to which the Corporation issued to CVL a convertible promissory Note (the “CVL Note”) in the principal amount of $939,500 with an interest rate of 10% per annum interest rate and a maturity date of February 13, 2020. The CVL Note is convertible into shares of Common Stock at $~~0.003~~ 0.12per share, as adjusted as provided therein. This note was assigned to MGW Investments.

This resulted in a change in control, which limited the net operating to that date forward. We are subject to taxation in the U.S. and the states of California. Further, the Company currently has no open tax years’ subject to audit prior to December 31, 2015. The Company is current on its federal and state tax returns.

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported income, total assets, or stockholders’ equity as previously reported.

The Company is reviewing the effects of following recent updates. The Company has no expectation that any of these items will have a material effect upon the financial statements.

Update 2021-03—Intangibles—Goodwill and Other (Topic 350): Accounting Alternative For Evaluating Triggering Events.

The amendments in this Update are effective on a prospective basis for fiscal years beginning after December 15, 2019. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance as of March 30, 2021.

An entity may elect to apply the amendments in this Update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020.

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses [codified as Accounting Standards Codification Topic (ASC) 326]. ASC 326 adds to US generally accepted accounting principles (US GAAP) the current expected credit loss (CECL) model, a measurement model based on expected losses rather than incurred losses. Under this new guidance, an entity recognizes its estimate of expected credit losses as an allowance, which the FASB believes will result in more timely recognition of such losses. This will become effective in January 2023 and will have minimal impact on the company.

Update 2020-06—Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. We do not expect any material impact on our financials because of the adoption of this update.

Deferred stock issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be performed within one year. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. During the quarter ended March 31, 2023, $549,225 of deferred stock issuance costs were capitalized and will be recognized with the $204,556 of deferred stock issuance costs during the year ended December 31, 2022.

TheThe Company is currently modifying the assets subject to lease to meet the provisions of the agreement, and as of ~~June 30, 2022~~March 31, 2023 any collection on the lease payments was not yet considered probable, resulting in no derecognition of the underlying asset and no net lease investments recognized on the sales-type lease pursuant to ASC 842-30-25-3.

On a ~~contract by contract~~contract-by-contract basis or in response to certain situations or installation difficulties, the Company may elect to allow non-interest bearing repayments in excess of 1 year.

Our ~~long term~~long-term financing Receivable are pledged to Nations Interbanc, our line of credit.

Our Depreciation Expense for the three months ended ~~June 30,~~March 31, 2023 and 2022 ~~and 2021~~ was $~~4,550~~5,949 and $~~5,104~~7,519 respectively.

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

Our Amortization Expense for the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022 ~~and 2021~~ was $2,969 and2,969 respectively.

Based on the foregoing analysis of the facts surrounding the Company’s acquisition of LWL, it is the Company’s position that the Company is the acquirer of LWL, under the acquisition method of accounting.

As such, as of November 8, 2021 (the acquisition date), the Company recognized, separately from goodwill, the identifiable assets acquired and the liabilities assumed in the Business combination.

If LWL reach USD 5 million in revenue or net profit of USD 1 million by December 31, ~~2022,~~2023, then based on the performance contingency there will be issuance of 20,000,000 shares of CETY to the Seller. As of the date of the filing the performance contingencies have not been ~~met.~~met.

Effective January 10, 2022, JHJ (“note holder”) entered a convertible note agreement with Chengdu Rongjun Enterprise Consulting Co., Ltd (“Rongjun” or “the borrower”) with maturity on January 10, 2025. Under this convertible note, JHJ lent RMB 5,000,000 ($0.78 million) to Rongjun with annual interest rate of 12%, calculated from the Issuance Date until all outstanding interest and principal is paid in full. The Borrower may pre-pay principal or interest on this Note at any time prior to the maturity date, without penalty. JHJ has the right to convert this note directly or indirectly into shares or equity interest of Heze Hongyuan Natural Gas Co., Ltd (“Heze”) equal to 15% of Heze’s outstanding Equity Interest. Rongjun owns 90% of Heze. ~~During the three months ended, JHJ recorded $17,961~~ ~~interest income from this note.~~

~~The Company issued a short-term note payable to an individual, secured by the assets of the Company, dated September 6, 2013 in the amount of $50,000~~ ~~and fixed fee amount of $3,500. As of December 31, 2019, the outstanding balance was $36,500. On January 30, 2020 we issued~~ ~~1,700,000~~ ~~shares of our common stock at a purchase price of $.02~~ ~~per share, as settlement in full of a note payable of in the amount of $36,500~~ ~~with accrued interest of $19,721. As a result, we recognized a gain in the amount of $22,221~~ ~~in the 1~~^st~~quarter of 2021.~~

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.~~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 ~~June 30, 2022,~~March 31, 2023, the outstanding balance was $~~1,109,812.75~~776,588 compared to $~~1,169,638~~998,820 at December 31, ~~2021.~~2022.

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~~25,000 by the final calendar day of each month.

On September 11, 2015, our CE HRS subsidiary issued a promissory note in the initial principal amount $1,400,000 and assumed a pension liability of $100,000, for a total liability of $1,500,000, in connection with our acquisition of the heat recovery solutions, or HRS, assets of General Electric International, Inc., a Delaware corporation (“GEII”), including intellectual property, patents, trademarks, machinery, equipment, tooling and fixtures. The note bears interest at the rate of ~~2.66%~~2.66% per annum. The note is payable on the following schedule: (a) $200,000 in principal on December 31, 2015 and (b) thereafter, the remaining principal amount of $1,200,000, together with interest thereon, payable in equal quarterly instalments of principal and interest of $157,609, commencing on December 31, 2016 and continuing until December 31, 2019, at which time the remaining unpaid principal amount of this note and all accrued and unpaid interest thereon shall be due and payable in ~~full.~~full. CETY stopped making payments and informed GE that it had encountered difficulties because of the valuations of the assets that were acquired from GE. Given that the values of the assets were different than GE’s internal reports and as we discussed at the time of the transaction with GE’s management, we proposed a change in the amount the Company owes GE under the purchase agreement, but GE was non-responsive, and GE’s entire distributed power vertical has been divested.

~~We are currently in default~~Based on the California Statute of Limitations, the Nevada Statute of Limitations, and the New York Statute of Limitations it is the view of our legal counsel that the above referenced debt is no longer an enforceable obligation. under California law, Nevada law, and New York law, as it became past due no later than November 3, 2016, more than Six (6) years ago and last payment ofmade on the purchase price pursuant to our asset purchase agreement with General Electric due to our belief that we are entitled to a reduction in purchase price we paid due to the misunderstanding of the asset valuation.debt was on November 3, 2016, which is more than Six (6) years ago. The total gain recognized from this write off was $2,556,916.

~~On May 4, 2020 the company entered in to a payroll protection loan, with Comerica bank, guaranteed by the SBA due May 4, 2022 for $110,700, with an interest rate of~~ 1~~%. This note payment is due in full on~~ ~~May 4, 2022~~ ~~and also has the possibility of forgiveness. This note was forgiven on July 1, 2021.~~

~~On February 4 , 2021 the company entered in to a payroll protection loan, with Comerica bank, guaranteed by the SBA due February 4, 2023 for $89,200, with an interest rate of~~ 1~~%. This note payment is due in full on~~ ~~February 4, 2023~~ ~~and also has the possibility of forgiveness. As of the date of this filing this note has been forgiven. This note was forgiven on July 26, 2021.~~

On September 7, 2021, the company entered into a promissory note in the amount of $226,345, with and interest rate of 10% per annum and a default interest rate of 22% per ~~annum.~~annum. This note is due in full on September 7, 2022, and has mandatory monthly payments of $23,828. The note had an OID of $23,345 and recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This is note is convertible, but not until a contingent event of default has taken place, none of which have occurred as of the date of this filing. The balance on this note as of ~~June 30,~~March 31, 2022 was $~~23,828.44~~119,142. This note was paid off ~~as of July 5,~~in June 29, 2022.

On September 28, 2021, the company entered into a promissory note in the amount of $142,720, with and interest rate of 10% per annum and a default interest rate of 22% per ~~annum.~~annum. This note is due in full on September 28, 2022 and has mandatory monthly payments of $15,003. The note had an OID of $14,720 and recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This is note is convertible, but not until a contingent event of default has taken place, none of which have occurred as of the date of this filing. ~~The balance on this note as of June 30, 2022 was $30,006~~. This note was paid off as of July 13, 2022.

On March 10, 2022, the company entered into a promissory note in the amount of $170,600, with and interest rate of 10% per annum and a default interest rate of 22% per ~~annum.~~annum. This note is due in full on March 10, 2023 and has mandatory monthly payments of $18,766. The note had an OID of $17,060 and recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This is note is convertible, but not until a contingent event of default has taken place, none of which have occurred as of the date of this filing. This note was paid off as of Dec 6, 2022.

On June 30, 2022, the company entered into a promissory note in the amount of $252,928.44 with and interest rate of 10% per annum and a default interest rate of 22% per annum. This note is due in full on June 30, 2023 and has mandatory monthly payments of $27,822.13. The note had an OID of $25,293 and recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This note is convertible, but not until a contingent event of default has taken place, none of which have occurred as of the date of this filing. The balance on this note as of ~~June 30,~~December 31, 2022 was $~~170,060~~139,111.30 .. This note was paid off as of Feb 13, 2023.

On July 13, 2022, the company entered into a promissory note in the amount of $159,450 with and interest rate of 10% per annum and a default interest rate of 22% per annum. This note is due in full on July 13, 2023 and has mandatory monthly payments of $17,539.50. The note had an OID of $16,447.00 and recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This note is convertible, but not until a contingent event of default has taken place, none of which have occurred as of the date of this filing. The balance on this note as of December 31, 2022 was $87,697.50. This note was paid off as of March 7, 2023.

On October 25, 2022, the company entered into a promissory note in the amount of $114,850 with and interest rate of 10% per annum and a default interest rate of 22% per annum. This note is due in full on October 25, 2023 and has mandatory monthly payments of $12,633.50 The note had an OID of $11,850.00 and recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This note is convertible, but not until a contingent event of default has taken place, none of which have occurred as of the date of this filing. The balance on this note as of March 31, 2023 was $78,151.50.

On Dec 5,2022 the company entered into a promissory note in the amount of $191,526 with an interest rate of 10% per annum and a default interest rate of 22% per annum. This note is due in full on December 5, 2023 and has mandatory monthly payments of $21,067.80. The note had an OID of $19,760.00 and recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This note is convertible, but not until a contingent event of default has taken place, none of which have occurred as of the date of this filing. The balance on this note as of March 31, 2023, was $147,474.60.

On Feb 10,2023 the company entered into a promissory note in the amount of $258,521 with and interest rate of 10% per annum and a default interest rate of 22% per annum. This note is due in full on Feb 10, 2024, and has mandatory monthly payments of $28,437.30 The note had an OID of $27,698.87 and recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This note is convertible, but not until a contingent event of default has taken place, none of which has occurred as of the date of this filing. The balance on this note as of March 31, 2023, was $232,669.

On March 6,2023 the company entered into a promissory note in the amount of $135,005 with and interest rate of 10% per annum and a default interest rate of 22% per annum. This note is due in full on March 6, 2024, and has mandatory monthly payments of $13,500. The note had an OID of $14,465.50 and was recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This note is convertible, but not until a contingent event of default has taken place, none of which has occurred as of the date of this filing. The balance on this note as of March 31, 2023, was $135,005.

On May 5, 2017, we entered into a nine-month convertible note payable for $78,000, which accrues interest at the rate of 12% per annum. It is not convertible until three months after its issuance and has a conversion rate of sixty one percent (61%) of the lowest closing bid price (as reported by Bloomberg LP) of our common stock for the fifteen (15) Trading Days immediately preceding the date of conversion. On November 6, 2017, this note was assumed and paid in full at a premium for a total of $116,600by Cybernaut Zfounder Ventures. An amended term ~~were~~was added to the original note with the interest rate of 14%. This note matured on February 21^st of 2018and is currently in default. As of ~~June 30, 2022,~~March 31, 2023, the outstanding balance due was $~~91,600~~159,894.95. As of April 3, 2023, this note was settled and paid off.

On May 24, 2017, we entered into a nine-month convertible note payable for $32,000, which accrues interest at the rate of 12% per annum. It is not convertible until three months after its issuance and has a conversion rate of fifty-five eight percent (58%) of the lowest closing bid price (as reported by Bloomberg LP) of our common stock for the fifteen (15) Trading Days immediately preceding the date of conversion. On November 6, 2017, this note was assumed and paid in full at a premium for a total of $95,685, by Cybernaut Zfounder Ventures. An amended term was added to the original note with the interest rate of 14%. This note matured on February 26^th, 2018,and is currently in default. As of ~~June 30, 2022,~~March 31, 2023, the outstanding balance due was $~~95,685~~163,979.95

~~On October 30, 2019 we entered into a convertible note payable for $103,000, with a maturity date~~. As of ~~October 30, 2020, which accrues interest at the rate of~~ 12~~% per annum. It is convertible six months after its issuance and has a conversion rate of sixty-five percent (~~65~~%) of the average of the two lowest closing prices (as reported by Bloomberg LP) of our common stock for the fifteen (~~15~~) Trading Days immediately preceding the date of conversion. We also entered into a stock purchase agreement for the potential conversion into common stock. This note was paid in full on May 1, 2020.~~

~~On January 8, 2020 we entered into a convertible note payable for $103,000, with a maturity date of~~ ~~January 8, 2021, which accrues interest at the rate of~~ 12~~% per annum. It is convertible six months after its issuance and has a conversion rate of sixty-five percent (~~65~~%) of the average of the two lowest closing prices (as reported by Bloomberg LP) of our common stock for the fifteen (~~15) Trading Days immediately preceding the date of conversion. We also entered into a stock purchase agreement for the potential conversion into common stock. Subsequently The fair value of the convertible feature was $~~87,560, we recorded a debt discount of $87,560. On July 7, 2020~~April 3, 2023, this note was settled and paid ~~in full.~~

~~On February 19, 2020 we entered into a convertible note payable for $53,000, with a maturity date of~~ ~~February 19, 2021, which accrues interest at the rate of~~ 12~~% per annum. It is convertible six months after its issuance and has a conversion rate of sixty-five percent (~~65~~%) of the average of the two lowest closing prices (as reported by Bloomberg LP) of our common stock for the fifteen (~~15) Trading Days immediately preceding the date of conversion. We also entered into a stock purchase agreement for the potential conversion into common stock. On August 18, 2020 this note was paid in full.off.

On July 6, 2020, Clean Energy Technologies, Inc. (the “Company) entered into a securities purchase agreement (the “Securities Purchase Agreement”) with LGH Investments, LLC (the “Investor”), pursuant to which the Company issued to the Investor a convertible promissory note (the “Note”) in the original principal amount of $~~164,800, a Warrant (the “Warrant”) to purchase~~ ~~1,500,000~~ ~~shares of the Company’s common stock, par value $.001~~ ~~per share (the “Common Stock”) and one million (1,000,000) restricted shares of Common Stock (“Commitment fee Shares”). The Note carried an original issue discount of $4,800~~ ~~with interest of~~ 8~~% per annum payable at maturity. The Note matures 8 months from the issue date and is convertible at any time into the Common Stock at a conversion price equal to $0.02~~ ~~per share, subject to adjustment. The shares were valued on the date of issuance using the stock price on that day for a total value of $19,211. We also recognized a debt discount of $17,861. We amortized $3,234~~ ~~of the debt discount during the three months ended September 30, 2020. The unamortized debt discount as of September 30, 2020 was $14,267. This note was fully converted as of December 31, 2020. This note was converted into~~ ~~14,035,202~~ ~~shares of common stock, for a total of $171,229~~ ~~including principal of~~ ~~164,800~~ ~~plus a accrued interest of $6,429. Also on January 12, 2021 the company issued~~ ~~697,861shares of its common stock as redemptions of $27,914~~ ~~in cashless warrants.~~

~~On July 15, 2020 we entered into a convertible note payable for $128,000, with a maturity date of~~ ~~July 15, 2021, which accrues interest at the rate of~~ 12~~% per annum. It is convertible six months after its issuance and has a conversion rate of sixty-five percent (~~65~~%) of the average of the two lowest closing prices (as reported by Bloomberg LP) of our common stock for the fifteen (~~15) Trading Days immediately preceding the date of conversion. We also entered into a stock purchase agreement for the potential conversion into common stock. This note was paid in full on October 16, 2020.

On August 17, 2020, Clean Energy Technologies, Inc. (the “Company) entered into a securities purchase agreement (the “Securities Purchase Agreement”) with LGH Investments, LLC (the “Investor”), pursuant to which the Company issued to the Investor a convertible promissory note (the “Note”) in the original principal amount of $~~103,000, a Warrant (the “Warrant”) to purchase~~ ~~1,500,000~~ ~~shares of the Company’s common stock, par value $.001~~ ~~per share (the “Common Stock”) and one million (1,000,000) restricted shares of Common Stock (“Commitment fee Shares”). The Note carried an original issue discount of $3,000~~ ~~with interest of~~ 8~~% per annum payable at maturity. The Note matures 8 months from the issue date and is convertible at any time into the Common Stock at a conversion price equal to $0.02~~ ~~per share, subject to adjustment. The shares were valued on the date of issuance using the stock price on that day for a total value of $19,211. We also recognized a debt discount of $17,861. We amortized $14,627~~ ~~of the debt discount during the six months ended June 30, 2021. The unamortized debt discount as of June 30, 2022 was $~~0~~. This note was paid in full on January 8, 2021.~~

~~On September 10, 2020 we entered into a convertible note payable for $63,000, with a maturity date of~~ ~~July 15, 2021, which accrues interest at the rate of~~ 11~~% per annum. It is convertible six months after its issuance and has a conversion rate of sixty-five percent (~~65~~%) of the average of the two lowest closing prices (as reported by Bloomberg LP) of our common stock for the fifteen (~~15) Trading Days immediately preceding the date of conversion. We also entered into a stock purchase agreement for the potential conversion into common stock. This note was paid in full on January 15, 2021.

On October 14, 2020 Clean Energy Technologies, Inc. (the “Company) entered into a securities purchase agreement (the “Securities Purchase Agreement”) with Firstfire Global Opportunities Fund LLC, (the “Investor”), pursuant to which the Company issued to the Investor a convertible promissory note (the “Note”) in the original principal amount of $~~168,000, a Warrant (the “Warrant”) to purchase~~ ~~1,500,000~~ ~~shares of the Company’s common stock, par value $.001~~ ~~per share (the “Common Stock”) and~~ ~~1,250,000~~ ~~restricted shares of Common Stock (“Commitment fee Shares”). The Note carried an original issue discount of $8,000~~ ~~with interest of~~ 8~~% per annum payable at maturity. The Note matures 8 months from the issue date and is convertible at any time into the Common Stock at a conversion price equal to $0.02~~ ~~per share, subject to adjustment. The shares were valued on the date of issuance using the stock price on that day for a total value of $24,282. We also recognized a debt discount of $24,282. We amortized $19,093~~ ~~of the debt discount during the three months ended March 31, 2021. The unamortized debt discount as of March 31, 2022 was $~~0~~. On January 29, 2021 this note was paid in full. Also on January 12, 2021 the company issued~~ ~~697,861shares of its common stock as redemptions of $27,914~~ ~~in cashless warrants.~~

~~On November 10, 2020 we entered into a convertible note payable for $53,000, with a maturity date of~~ ~~November 10, 2021, which accrues interest at the rate of~~ 11~~% per annum. It is convertible six months after its issuance and has a conversion rate of sixty-five percent (~~65~~%) of the average of the two lowest closing prices (as reported by Bloomberg LP) of our common stock for the fifteen (~~15) Trading Days immediately preceding the date of conversion. We also entered into a stock purchase agreement for the potential conversion into common stock. On February 11, 2021 this note was paid in full.

~~On December 18, 2020 we entered into a convertible note payable for $83,500, with a maturity date of~~ ~~December 18, 2021, which accrues interest at the rate of~~ 11~~% per annum. It is convertible six months after its issuance and has a conversion rate of sixty-five percent (~~65~~%) of the average of the two lowest closing prices (as reported by Bloomberg LP) of our common stock for the fifteen (~~15) Trading Days immediately preceding the date of conversion. We also entered into a stock purchase agreement for the potential conversion into common stock. On March 11, 2021 this note was paid in full.

On December 27, 2021, we entered into a convertible note payable with Universal Scope Inc. for $650,000with a maturity date of June 21, 2022, which accrues interest at the rate of 2% per annum. It is convertible at any time after its issuance and has ~~fix~~a fixed conversion rate of $0.06of our common stock. This note was converted into 277,604 of our common shares on March 28, 2023.

On May 6, 2022, we entered into a Securities Purchase Agreement with Mast Hill, L.P. (Mast Hill”) pursuant to which the Company issued to Mast Hill a $750,000 Convertible Promissory Note, due May 6, 2023 (the “Note”) for a purchase price of $675,000.00 plus an original issue discount in the amount of $75,000.00, and an interest rate of fifteen percent (15%) per annum. Mast Hill Fund is entitled to purchase ~~9,375,000~~234,375 shares of ~~commons~~common stock per the warrant agreement at the exercise price of $~~0.04~~1.60. The Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Mast Hill as well as providing Mast Hill with registration rights.

On August 5, 2022, we entered into a Securities Purchase Agreement with Jefferson Street Capital, LLC (Jefferson) pursuant to which the Company issued to Jefferson a $138,888 Convertible Promissory Note, due August 5, 2023 (the “Note”) for a purchase price of $125,000.00 plus an original issue discount in the amount of $13,888.88, and an interest rate of fifteen percent (15%) per annum. Jefferson is entitled to purchase 43,403 shares of common stock per the warrant agreement at the exercise price of $1.60. The Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Jefferson as well as providing Jefferson with registration rights. This note was paid off as of March 9, 2023, $187,451.37

On August 17, 2022, we entered into a Securities Purchase Agreement with Firstfire Global Opportunities Fund LLC (“Firstfire”) pursuant to which the Company issued to Mast Hill a $150,000 Convertible Promissory Note, due August 17, 2023 (the “Note”) for a purchase price of $135,000.00 plus an original issue discount in the amount of $15,000.00, and an interest rate of fifteen percent (15%) per annum. Firstfire is entitled to purchase 46,875 shares of common stock per the warrant agreement at the exercise price of $1.60. The Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Firstfire as well as providing Firstfire with registration rights. This note was paid off as of March 9, 2023, $215,000

On September 1, 2022, we entered into a Securities Purchase Agreement with Pacific Pier Capital, LLC (Pacific) pursuant to which the Company issued to Pacific a $138,888 Convertible Promissory Note, due August 5, 2023 (the “Note”) for a purchase price of $125,000.00 plus an original issue discount in the amount of $13,888.88, and an interest rate of fifteen percent (15%) per annum. Pacific is entitled to purchase 43,403 shares of common stock per the warrant agreement at the exercise price of $1.60. The Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Pacific as well as providing Pacific with registration rights. This note was paid off as of March 9, 2023, $190,605.67

On September 16, 2022, we entered into a Securities Purchase Agreement with Mast Hill, L.P. (Mast Hill”) pursuant to which the Company issued to Mast Hill a $300,000 Convertible Promissory Note, due September 16, 2023 (the “Note”) for a purchase price of $270,000.00 plus an original issue discount in the amount of $30,000.00, and an interest rate of fifteen percent (15%) per annum. Mast Hill Fund is entitled to purchase 93,750 shares of common stock per the warrant agreement at the exercise price of $1.60. The Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Mast Hill as well as providing Mast Hill with registration rights. Mast Hill converted their warrant on April 18, 2023.

On November 10, 2022, we entered into a Securities Purchase Agreement with Mast Hill, L.P. (Mast Hill”) pursuant to which the Company issued to Mast Hill a $95,000 Convertible Promissory Note, due November 10, 2023 (the “Note”) for a purchase price of $85,500 plus an original issue discount in the amount of $9,500 and an interest rate of fifteen percent (15%) per annum. Mast Hill Fund is entitled to purchase 29,686 shares of common stock per the warrant agreement at the exercise price of $1.60. The Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Mast Hill as well as providing Mast Hill with registration rights.

On November 21, 2022, we entered into a Securities Purchase Agreement with Mast Hill, L.P. (Mast Hill”) pursuant to which the Company issued to Mast Hill a $95,000 Convertible Promissory Note, due November 21, 2023 (the “Note”) for a purchase price of $85,500 plus an original issue discount in the amount of $9,500, and an interest rate of fifteen percent (15%) per annum. Mast Hill Fund is entitled to purchase 29,686 shares of common stock per the warrant agreement at the exercise price of $1.60. The Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Mast Hill as well as providing Mast Hill with registration rights.

On December 26, 2022, we entered into a Securities Purchase Agreement with Mast Hill, L.P. (Mast Hill”) pursuant to which the Company issued to Mast Hill a $123,000 Convertible Promissory Note, due December 26, 2023 (the “Note”) for a purchase price of $110,700 plus an original issue discount in the amount of $12,300 and an interest rate of fifteen percent (15%) per annum. Mast Hill Fund is entitled to purchase 38,437 shares of common stock per the warrant agreement at the exercise price of $1.60. The Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Mast Hill as well as providing Mast Hill with registration rights.

On January 19, 2023, we entered into a Securities Purchase Agreement with Mast Hill, L.P. (Mast Hill”) pursuant to which the Company issued to Mast Hill a $187,000 Convertible Promissory Note, due January 19, 2024 (the “Note”) for a purchase price of $168,300 plus an original issue discount in the amount of $18,700 and an interest rate of fifteen percent (15%) per annum. Mast Hill Fund is entitled to purchase 58,438 shares of common stock per the warrant agreement at the exercise price of $1.60. The Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Mast Hill as well as providing Mast Hill with registration rights.

On March 8, 2023, we entered into a Securities Purchase Agreement with Mast Hill, L.P. (Mast Hill”) pursuant to which the Company issued to Mast Hill a $734,000 Convertible Promissory Note, due March 8, 2024 (the “Note”) for a purchase price of $660,600 plus an original issue discount in the amount of $73,400 and an interest rate of fifteen percent (15%) per annum. Mast Hill Fund is entitled to purchase 367,000 shares of common stock per the warrant agreement at the exercise price of $1.60. The Securities Purchase Agreement provides customary representations, warranties and covenants of the Company and Mast Hill as well as providing Mast Hill with registration rights.

As a result of the convertible notes, we recognized the embedded derivative liability on the date of note issuance. We also revalued the remaining derivative liability on the outstanding note balance on the date of the balance sheet. We value the derivative liability using a binomial lattice model with an expected volatility ~~range~~ of 70~~% to~~ 8491.5%, a risk-free interest rate range of ~~0.15~~4.5%, and an exercise price ~~range~~ of $~~.0245~~ ~~to $.0258~~ ~~and a stock price of $.033~~1.00. The remaining derivative liabilities were:

As of May 1, 2017, our corporate headquarters are located at 2990 Redhill Unit A, Costa Mesa, CA. On March 10, 2017, the Company signed a lease agreement for aan 18,200-square foot CTU Industrial Building. Lease term is seven years and two months beginning July 1, 2017. Future minimum lease payments for the years ending December 31, are: In October of 2018 we signed a sublease agreement with our facility in Italy with an indefinite term that may be terminated by either party with a 60-day notice for 1,000 Euro per month. Due to the short termination clause, we are treating this as a month-to-month ~~lease.~~lease.

Our lease expense for the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022 ~~and 2021~~ was $~~173,480~~122,779 and $~~168,910~~88,962 respectively.

Effective August 5, 2022, Shuya entered a 48 months lease for a natural gas recycle station from Leishen (the 41% shareholder of Shuya), including the operating right and use right of all the assets and equipment in the station. The annual rent is approximately $76,100, to be paid each year in advance. Effective August 5, 2022, Shuya entered another 48 months lease for leasing a sewage treatment land from Leishen for the purpose of operating the natural gas recycling station. The annual rent is approximately $19,540, to be paid each year in advance.

The following is a schedule, by year of lease payment for Shuya as of March 31, 2023.

For the 12 months ending	Lease Payment
March 31, 2024		86,774
March 31, 2025		86,774
March 31, 2026		86,774
March 31, 2027		28,925
Total undiscounted cash flows		289,247
Imputed Interest		(45,477	)
Present value of lease liabilities	$	243,770

Our lease expense of Shuya for the three months ended March 31, 2023 and 2022 was $86,774 and $0 respectively.

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 a 5% average borrowing rate and the company is utilizing the transition relief and “running off” on current leases.

Mr. Mahdi will receive a severance benefit consisting of a single lump sum cash payment equal the salary that Mr. Mahdi would have been entitled to receive through the remainder or the Employment Period or One (1) year, whichever is greater.

On April 21, 2005, our Board of Directors and shareholders approved the re-domicile of the Company in the State of Nevada, in connection with which we increased the number of our authorized common shares to 200,000,000 and designated a par value of $.001 per share.

On May 25, 2006, our Board of Directors and shareholders approved an amendment to our Articles of Incorporation to authorize a new series of preferred stock, designated as Series C, and consisting of 15,000 authorized shares.

On June 30, 2017, our Board of Directors and shareholders approved an increase in the number of our authorized common shares to 400,000,000 and in the number of our authorized preferred shares to 10,000,000. The amendment effecting the increase in our authorized capital was filed and effective on July 5, 2017.

On August 28, 2018, our Board of Directors and shareholders approved an increase in the number of our authorized common shares to 800,000,000. The amendment effecting the increase in our authorized capital was filed and effective on August 23, 2018.

On June 10, 2019, our Board of Directors and shareholders approved an increase in the number of our authorized common shares to 2,000,000,000. The amendment effecting the increase in our authorized capital was effective on September 27, ~~2019~~2019.

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 Corporation’s 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 July 23, 2020~~2022, we issued ~~3,000,000~~ ~~shares of our common stock at a price of $.04~~ ~~per share, in exchange for the conversion of~~ ~~1,200~~ ~~shares of our Series D Preferred Stock.~~

On August 17, 2020, Clean Energy Technologies, Inc. (the “Company) entered into a securities purchase agreement (the “Securities Purchase Agreement”) with LGH Investments, LLC (the “Investor”), pursuant to which the Company issued to the Investor a convertible promissory note (the “Note”) in the original principal amount of $~~103,000, a Warrant (the “Warrant”) to purchase~~ ~~1,500,000~~ ~~shares of the Company’s common stock, par value $.001~~ ~~per share (the “Common Stock”) and one million (1,000,000) restricted shares of Common Stock (“Commitment fee Shares”). The Note carried an original issue discount of $3,000~~ ~~with interest of~~ 8~~% per annum payable at maturity. The Note matures 8 months from the issue date and is convertible at any time into the Common Stock at a conversion price equal to $0.02~~ ~~per share, subject to adjustment. The shares were valued on the date of issuance using the stock price on that day for a total value of $19,211. We also recognized a debt discount of $17,861. We amortized $14,627~~ ~~of the debt discount during the six months ended June 30, 2021. The unamortized debt discount as of March 31, 2022 was $~~0~~. This note was paid in full on January 8, 2021. Also on February 5, 2021 the company issued~~ ~~1,100,000~~ ~~shares of its common stock as redemptions of $44,000~~ ~~in cashless warrants.~~

~~On February 5, 2021 we issued~~ ~~3,000,000~~ ~~shares of our common stock at a price of $.08~~ ~~per share, in exchange for the conversion of~~ ~~1,200~~ ~~shares of our Series D Preferred Stock.~~

~~On February 9, 2021 we issued~~ ~~2,275,662~~ ~~shares of our common stock share, in exchange for the conversion of $182,052~~ ~~of accrued dividend for the series D Preferred Stock.~~

~~On February 9, 2021 we issued~~ ~~2,000,000~~ ~~shares of our common stock at a price of $.04~~ ~~per share, in exchange for the conversion of~~ ~~800~~ ~~shares of our Series D Preferred Stock.~~

~~On February 23, 2021 we issued~~ ~~3,754,720~~ ~~of common stock at a purchase price of $.014~~ ~~per share and~~ ~~3,754,720~~ ~~of warrant at purchase price of~~ ~~0.04~~ ~~for an aggregate price of $52,566~~ ~~to an accredited investor in a private sale. An additional~~ ~~36,283~~ ~~shares were issued as a result of a correction made to the original transaction.~~

~~On March 5, 2021 we issued~~ ~~8,333,333~~ ~~of common stock at a purchase price of $.06~~ ~~per share for an aggregate price of $500,000~~ ~~to an accredited investor in a private sale.~~

~~On March 10, 2021 we issued~~ ~~32,125,000~~ ~~units of common stock at a purchase price of $.08~~ ~~per share for an aggregate price of $2,570,000~~ ~~to an accredited investor in a private sale.~~

~~On March 12, 2021 we issued~~ ~~1,625,000~~ ~~shares and~~ ~~2,068,588~~ ~~of our common stock at a price of $.08~~ ~~per share, in exchange for the conversion of~~ ~~650~~ ~~shares of our Series D Preferred Stock and~~ ~~165,487~~ ~~of accrued dividend for the series D preferred stock.~~

~~On September 2, 2021, Clean Energy Technology, Inc., a Nevada corporation (~~the “Company”), entered into an Equity Financing Agreement (“Equity Financing Agreement”) and Registration Rights Agreement (“Registration Rights Agreement”) with GHS Investments LLC, a Nevada limited liability company (“GHS”). Under the terms of the Equity Financing Agreement, GHS agreed to provide the Company with up to $~~4,000,000~~ ~~upon effectiveness of a registration statement on Form S-1 (the “Registration Statement”) filed with the U.S. Securities and Exchange Commission (the “Commission”) As a result we issued~~ ~~1,142,459~~ ~~Shares of common stock as an commitment fee, which was valued and expense in the amount of $47,699. On October 14, 2021, this Form S-1 became effective.~~78,897

~~On September 13, 2021 we issued~~ ~~1,100,630~~ ~~shares of common stock for a correction of a previous issuance error.~~

~~During the year ended December 31, 2021, we issued~~ ~~9,842,072~~shares of common stock, under S-1 registration statement with GHS for a total of $~~294,016~~134,755 in net proceeds and expensed $~~96,334~~45,498 in legal and financing fees as a result.

On ~~December 31, 2021~~February 21, 2022, we issued ~~9,833,750~~375,875 shares of our common stock under our Reg A offering at $.08 per share. These shares are unrestricted and free trading.

During ~~the quarter ended March 31, 2022, we issued~~ ~~3,155,865~~ ~~shares of common stock, under S-1 registration statement with GHS for a total of $134,755~~ ~~in net proceeds and expensed $45,498~~ ~~in legal and financing fees as a result.~~

~~On February 21, 2022, we issued~~ ~~15,035,000~~ ~~shares of our common stock under our Reg A offering at $.08~~ ~~per share. These shares are unrestricted and free trading.~~

~~During the~~ April of 2022, we issued ~~4,915,644~~3,072 shares of common stock, under S-1 registration statement with GHS for a total of $153,324 in net proceeds and expensed $34,500 in legal and financing fees as a result.

On September 21, 2022, MGW I converted $1,548,904 from the outstanding balance of their convertible note into 322,688 shares of company’s common stock.

On May 6, 2022, the Company entered into a Securities Purchase Agreement and a warrant agreement with Mast Hill, L.P. (Mast Hill”) pursuant to which the Company issued to Mast Hill the Company issued Mast Hill a five-year warrant to purchase 234,375 shares of common stock in connections with the transactions.

On December 28, 2022 Mast Hill exercised their warrant in full on a cashless basis to purchase 100,446 shares of Common Stock.

On January 27,2023, we issued,3,745 shares of our common stock due to rounding post the reverse stock split.

On August 17, 2022, we issued 46,875 warrant shares in connection with the issuance of the promissory note in the principal amount of $150,000 to First Fire at the exercise price per share of $1.60. However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal 120% of the offering price per share of Common Stock. On March 1, 2023, First Fire exercised the warrant in full on a cashless basis to purchase 33,114 shares of common stock.

On September 1, 2022, we issued 43,403 warrant shares in connection with the issuance of the promissory note in the principal amount of $138,889 to Pacific Pier at the exercise price per share of $1.60. However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal 120% of the offering price per share of Common Stock. On March 1, 2023, Pacific Pier exercised the warrant in full on a cashless basis to purchase 31,111 shares of common stock.

On December 27, 2021, we entered into a convertible note payable with Universal Scope Inc. for $650,000 with a maturity date of June 21, 2022, which accrues interest at the rate of 2% per annum. It is convertible at any time after its issuance and has a fixed conversion rate of $2.40 of our common stock. This note was converted into 277,604 of our common shares on March 28, 2023.

On March 23, 2023 we sold 975,000 shares of our common stock in an underwritten offering to R.F. Lafferty & CO and Phillip US. The initial public offering price per share is $4.00 per share.

Our Articles of Incorporation authorize us to issue 2,000,000,000 shares of common stock, par value $0.001 per share. As of ~~June 30, 2022~~March 31, 2023 there were ~~966,675,946~~38,495,453 shares of common stock outstanding. All outstanding shares of common stock are, and the common stock to be issued will be, fully paid and non-assessable. Each share of our common stock has identical rights and privileges in every respect. The holders of our common stock are entitled to vote upon all matters submitted to a vote of our shareholders and are entitled to one vote for each share of common stock held. There are no cumulative voting rights.

The holders of our common stock are entitled to share equally in dividends and other distributions that our Board of Directors may declare from time to time out of funds legally available for that purpose, if any, after the satisfaction of any prior rights and preferences of any outstanding preferred stock. If we liquidate, dissolve or wind up, the holders of common stock shares will be entitled to share ratably in the distribution of all of our assets remaining available for distribution after satisfaction of all our liabilities and our obligations to holders of our outstanding preferred stock.

Our Articles of Incorporation authorize us to issue 20,000,000 shares of preferred stock, par value $0.001 per share. Our Board of Directors has the authority to issue additional shares of preferred stock in one or more series, and fix for each series, the designation of and number of shares to be included in each such series. Our Board of Directors is also authorized to set the powers, privileges, preferences, and relative participating, optional or other rights, if any, of the shares of each such series and the qualifications, limitations or restrictions of the shares of each such series.

Unless our Board of Directors provides otherwise, the shares of all series of preferred stock will rank on parity with respect to the payment of dividends and to the distribution of assets upon liquidation. Any issuance by us of shares of our preferred stock may have the effect of delaying, deferring or preventing a change of our control or an unsolicited acquisition proposal. The issuance of preferred stock also could decrease the amount of earnings and assets available for distribution to the holders of common stock or could adversely affect the rights and powers, including voting rights, of the holders of common stock.

We previously authorized 440 shares of Series A Convertible Preferred Stock, 20,000 shares of Series B Convertible Preferred Stock, and 15,000 shares Series C Convertible Preferred Stock. As of August 20, 2006, all series A, B, and C preferred had been converted into common stock.

Effective August 7, 2013, our Board of Directors designated a series of our preferred stock as Series D Preferred Stock, authorizing 15,000 shares. Our Series D Preferred Stock offering terms authorized us to raise up to $1,000,000 with an over-allotment of $500,000 in multiple closings over the course of six months. We received an aggregate of $~~750,000~~$750,000 in financing in subscription for Series D Preferred Stock, or 7,500 ~~shares.~~shares.

The following are primary terms of the Series D Preferred Stock. The Series D Preferred holders were initially entitled to be paid a special monthly ~~divided~~divide at the rate of 17.5% per annum. Initially, the Series D Preferred Stock was also entitled to be paid special dividends in the event cash dividends were not paid when scheduled. If the Company does not pay the dividend within five (5) business days from the end of the calendar month for which the payment of such dividend tois owed, the Company will pay the investor a special dividend of an additional 3.5%. Any unpaid or accrued special dividends will be paid upon a liquidation or redemption. For any other dividends or distributions, the Series D Preferred Stock participates with common stock on an as-converted basis. The Series D Preferred holders may elect to convert the Series D Preferred Stock, in their sole discretion, at any time after a ~~one year~~one-year (1) year holding period, by sending the Company a notice to convert. The conversion rate is equal to the greater of ~~$0.08~~$3.20 or a 20% discount to the average of the three (3) lowest closing market prices of the common stock during the ten (10) trading day period prior to conversion. The Series D Preferred Stock is redeemable from funds legally available for distribution at the option of the individual holders of the Series D Preferred Stock commencing any time after the one (1) year period from the offering closing at a price equal to the initial purchase price plus all accrued but unpaid dividends, provided, that if the Company gave notice to the investors that it was not in a financial position to redeem the Series D Preferred, the Company and the Series D Preferred holders are obligated to negotiate in good faith for an extension of the redemption ~~period.~~period. The Company timely notified the investors that it was not in a financial position to redeem the Series D Preferred and the Company and the investors have engaged in ongoing negotiations to determine an appropriate extension period. The Company may elect to redeem the Series D Preferred Stock any time at a price equal to the initial purchase price plus all accrued but unpaid dividends, subject to the investors’ right to convert, by providing written notice about its intent to redeem. Each investor has the right to convert the Series D Preferred Stock at least ten (10) days prior to such redemption by the Company.

In connection with the subscriptions for the Series D Preferred, we issued series F warrants to purchase an aggregate of ~~375,000~~9,375 shares of our common stock at $~~.10~~4.00 per share and series G warrants to purchase an aggregate of ~~375,000~~9,375 shares of our common stock at $~~.20~~8.00 per share.

On August 21, 2014, a holder holding 5,000 shares of Preferred Series D Preferred agreed to lower the dividend rate to 13% on its Series D Preferred. In September 2015, all holders of Series D Preferred signed and delivered estoppel agreements, whereby the holders agreed, among other things, that the Series D Preferred was not in default and to reduce (effective as of December 31, 2015) the dividend rate on the Series D Preferred Stock to six percent per annum and to terminate the 3.5% penalty in respect of unpaid dividends accruing on or after such ~~date.~~date.

In the first quarter of 2019, we signed agreements to issue ~~4,000,000~~1000 shares of common stock valued at $~~.015~~.60 for a total value of $60,000 for the conversion of 800 preferred series D shares, , which were subsequently issued.

We also recorded a $60,000 commitment fee in exchange for the ~~“stand off”~~“standoff” and estoppel agreement and discounted conversion terms to account for the difference in the fair value which we offset to retained earnings.

On February 4, 2020, we issued ~~2,000,000~~50,000 shares of our common stock at a price of $~~.04~~1.60 per share, in exchange for the conversion of 800 shares of our Series D Preferred Stock.

On July 23, 2020, we issued ~~3,000,000~~75,000 shares of our common stock at a price of $~~.04~~1.60 per share, in exchange for the conversion of 1,200 shares of our Series D Preferred Stock.

On February 5, 2021, we issued ~~3,000,000~~75,000 shares of our common stock at a price of $.08per share, in exchange for the conversion of 1,200shares of our Series D Preferred Stock.

On February 9, 2021, we issued ~~2,275,662~~56,892 shares of our common stock share, in exchange for the conversion of $182,052 of accrued dividend for the series D Preferred Stock.

On February 9, 2021, we issued ~~2,000,000~~50,000 shares of our common stock at a price of $.04 per share, in exchange for the conversion of 800 shares of our Series D Preferred Stock.

On March 12, 2021, we issued ~~3,693,588~~92,340 shares of our common stock together with accrued preferred dividend at a price of $~~.08~~3.20 per share, in exchange for the conversion of 1300 shares of our Series D Preferred Stock and accrued preferred dividend.

On August 17, 2020, Clean Energy Technologies, Inc. (the “Company) entered into a securities purchase agreement (the “Securities Purchase Agreement”) with LGH Investments, LLC (the “Investor”), pursuant to which the Company issued to the Investor a convertible promissory note (the “Note”) in the original principal amount of $~~103,000, a Warrant (the “Warrant”) to purchase~~ ~~1,500,000~~ ~~shares of the Company’s common stock, par value $.001~~ ~~per share (the “Common Stock”) and one million (1,000,000) restricted shares of Common Stock (“Commitment fee Shares”). The Note carried an original issue discount of $3,000~~ ~~with interest of~~ 8~~% per annum payable at maturity. The Note matures 8 months from the issue date and is convertible at any time into the Common Stock at a conversion price equal to $0.02~~ ~~per share, subject to adjustment. On February 1, 2021 the cashless warrants were converted into~~ ~~1,100,000~~ ~~shares of our common stock.~~

On May 6, 2022, we issued ~~9,375,000~~234,375 of warrant shares in connection with the issuance of the promissory note in the principal amount of $~~750,000.00~~750,000 to Mast Hill Fund at the exercise price per share of $~~0.04~~1.60.

However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal ~~120%~~120% of the offering price per share of Common Stock. On December 28, 2022, Mast Hill exercised the warrant in full on a cashless basis to purchase 100,446 shares of Common Stock.

On August 5, 2022, we issued 43,403 warrant shares in connection with the issuance of the promissory note in the principal amount of $138,889 to Jefferson Street at the exercise price per share of $1.60. However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal 120% of the offering price per share of Common Stock.

On September 16, 2022, we issued 93,750 warrant shares in connection with the issuance of the promissory note in the principal amount of $300,000 to Mast Hill Fund at the exercise price per share of $1.60. However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal 120% of the offering price per share of Common Stock.

On November 10, 2022, we issued 29,687 warrant shares in connection with the issuance of the promissory note in the principal amount of $300,000 to Mast Hill Fund at the exercise price per share of $1.60. However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal 120% of the offering price per share of Common Stock.

On November 21, 2022, we issued 29,687 warrant shares in connection with the issuance of the promissory note in the principal amount of $95,000 to Mast Hill Fund at the exercise price per share of $1.60. However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal 120% of the offering price per share of Common Stock.

On December 26, 2022, we issued 38,437 warrant shares in connection with the issuance of the promissory note in the principal amount of $123,000 to Mast Hill Fund at the exercise price per share of $1.60. However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal 120% of the offering price per share of Common Stock.

On January 19, 2023, we issued 58,438 warrant shares in connection with the issuance of the promissory note in the principal amount of $187,000 to Mast Hill Fund at the exercise price per share of $1.60. However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal 120% of the offering price per share of Common Stock. Mast Hill exercised this not in full on May 10, 2023.

On Feb 13, 2023, we issued 26,700 warrant shares to J.H. Darbie & Co., Inc. according to finder agreement we entered into date April, 2022 at the exercise price of $5.00.

On March 8, 2023, we issued 367,000 warrant shares in connection with the issuance of the promissory note in the principal amount of $734,000 to Mast Hill Fund at the exercise price per share of $1.60. However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal 120% of the offering price per share of Common Stock.

~~Kambiz Mahdi,~~From August 2022 through October 2022, Hongzhuo Shuya (Shuya) a 49% owned subsidiary (also is our ~~Chief Executive Officer,~~consolidated VIE) of CETY HK limited engaged in the trading of pipeline gas and CNG processing and sales provided Sichuan Leishen Hongzhuo Energy Development Co., Ltd (Leishen) with approximately total of $740,000 loan with a 4 years term to facilitate building of a natural gas recycling station to provide Shuya with CNG sales. Leishen owns ~~Billet Electronics, which~~41% of Shuya and as an entity can obtain the permits and licenses to build and operate the NG Recycling Station to produce CNG. At the end of the 4 year term of the loan, Leishen has the option to either move the NG Recycling Station and all permits to Shuya, or repay the loan.

Additionally, Leishen has relationships with the supply side of the NG business and is ~~distributor~~able to obtain large amounts of ~~electronic components. From time to time, we purchase parts from Billet Electronics. In addition, Billet was~~NG. As a result, Shuya also has a supplier ~~of parts and had dealings~~relationship with ~~current and former customers of the Company prior to joining the company.~~Leishen. The ~~amount of parts purchases in the 1~~^st ~~quarter of 2022 was $8,180~~.price obtained from Leishen will be better than any unrelated party as their markup is below market. Our Board of Directors has approved the transactions between ~~Billet Electronics~~Leishen and the Company. During the quarter ended March 31, 2023, Shuya made $1.03 million purchase from Leishen. As of March 31, 2023, we had account receivable from Leishen $4,883, advance to supplier of Leishen of $458,014, accounts payable to Leishen of $138,347. In addition, we lent $736,736 to Leishen as of March 31, 2023 for Leishen to construct a CNG refueling station on behalf of Shuya, the loan term is four years. When the CNG refueling station is ready for operation, Shuya will lease the CNG refueling station from Leishen at a favorabvle price equivalent to the depreciation amount of the station; when the assets are eligible for transfer, Leishen will transfer the assets of CNG refueling station to Shuya at the net asset value.

Effective August 5, 2022, Shuya entered a 48 months lease for a natural gas recycle station from Leishen, including the operating right and use right of all the assets and equipment in the station. The annual rent is approximately $76,100, to be paid each year in advance. Effective August 5, 2022, Shuya entered another 48 months lease for leasing a sewage treatment land from Leishen for the purpose of operating the natural gas recycling station. The annual rent is approximately $19,540, to be paid each year in advance.

On November 2, 2016, we effected the repayment of the convertible note dated March 15, 2016 for an aggregate amount of $84,000. Concurrently, we entered into an Escrow Funding Agreement with Red Dot Investment, Inc., a California corporation (“Reddot”), pursuant to which Reddot deposited funds into escrow to fund the repayment and we assigned to Reddot our right to acquire the convertible note and Reddot acquired the convertible note. Concurrently, we and Reddot amended the convertible note (a) to have a fixed conversion price of $~~.005~~.20 per share, subject to potential further adjustment in the event of certain Common Stock issuances, (b) to have a fixed interest rate of ten percent (10%) per annum with respect to both the redemption amount and including a financing fee and any costs, expenses, or other fees relating to the convertible note or its enforcement and collection, and any other expense for or on our account (in each case with a minimum 10% yield in the event of payoff or conversion within the first year), such amounts to constitute additional principal under the convertible note, as amended, and (c) as otherwise provided in the Escrow Funding Agreement. The March 2016 convertible note, as so amended, is referred to as the “Master Note.”

Concurrently with the foregoing note repayments, we entered into a Credit Agreement and Promissory Note (the “Credit Agreement”) with Megawell USA Technology Investment Fund I LLC, a Wyoming limited liability company in formation (“MW I”), pursuant to which MW I deposited funds into escrow to fund the repayment of the convertible notes and we assigned to MW I our right to acquire the convertible notes and otherwise agreed that MW I would be subrogated to the rights of each note holder to the extent a note was repaid with funds advanced by MW I. Concurrently, MW I acquired the Master Note and we agreed that all amounts advanced by MG I to or for our benefit would be governed by the terms of the Master Note, including the payment of a financing fees, interest, minimum interest, and convertibility. Reddot is MW I’s agent for purposes of administration of the Credit Agreement and the Master Note and advances thereunder.

On February 13, 2018, the Corporation and Confections Ventures Limited. (“CVL”) entered into a Convertible Note Purchase Agreement (the “Convertible Note Purchase Agreement,” together with the Stock Purchase Agreement and the transactions contemplated thereunder, the “Financing”) pursuant to which the Corporation issued to CVL a convertible promissory Note (the “CVL Note”) in the principal amount of $939,500 with an interest rate of 10% per annum interest rate and a maturity date of February 13, 2020. The CVL Note is convertible into shares of Common Stock at $~~0.003~~0.12 per share, as adjusted as provided therein. As a result, we recognized a beneficial conversion feature of $532,383, which is amortized over the life of the note. This note was assigned to MGW Investments and they agreed not to convert the $939,500 note ~~in to~~into shares in excess of the ~~800,000,000~~20,000,000 Authorized limit until we have increased the Authorized shares to the Board approved limit of ~~2 billion~~50,000,000 shares. This note converted into 34,644 of company’s common stock on September 21, 2022.

On February 8, 2018, the Corporation entered a Convertible Promissory Note in the principal amount of $153,123, due October 8, 2018, with an interest rate of 12% per annum payable to MGWI (the “MGWI Note”). The MGWI Note is convertible into shares of the Corporation’s common stock at the lower of: (i) a 40% discount to the lowest trading price during the previous twenty (20) trading days to the date of a Conversion Notice; or (ii) ~~0.003.~~0.12. As a result of the closing of the transactions contemplated by the Stock Purchase Agreement and Convertible Note Purchase Agreement, the MGWI Note must be redeemed by the Corporation in an amount that will permit CVL and MGWI and their affiliates to hold 65% of the issued and outstanding Common Stock of the Corporation on a fully diluted ~~basis.~~basis. The proceeds from the MGWI Note were used to redeem the convertible note of the Corporation to JSJ Investments, Inc. in the principal amount of $103,000 with an interest rate of 12% per annum, due April 25, 2018. At December 31, 2019 the holder of this note beneficially owned 70% of the company and this note is not convertible if the holder holds more than 9.99%, as a result, we did not recognize a derivative liability or a beneficial conversion ~~feature.~~feature. This note was converted into 33,987 of company’s common stock on September 21, 2022.

Subsequently on May 11^th11th this note was amended and the maturity date was extended to October 8, 2023, and the restriction on the conversion of the note was removed if the holder of this note holds over 9.9% of the Company’s common stock.On June 24, 2021, MGW I converted $~~75,000~~$75,000 of the outstanding balance of this note into ~~25,000,000~~625,000 shares of company’s common stock.

On May 31, 2019, we entered into a subscription agreement pursuant to which the Company agreed to sell ~~168,000,000~~4,200,000 units (each a “Unit” and together the “Units”) to MGW Investment I Limited MGWI for an aggregate purchase price of $1,999,200, or $~~.0119~~.476 per Unit, with each unit consisting of one share of common stock, par value $.001 per share (the “Common Stock”) and a warrant (the “Warrant”) to purchase one share of common stock. The Common Stock will be issued to MGWI at such time as the Company increases the number of shares of its authorized Common Stock. The Warrant is exercisable at ~~$.04~~$1.60 per share of Common Stock and expires one year from the date of the Agreement.

In the fourth quarter of 2019 MGW Investment I Limited, advanced $167,975, with no terms or interest rate. MGW Investment limited forgave $80,000 of this amount in the 4^th quarter of 2022. The outstanding balance on this advance on ~~June 30,~~December 31, 2022, is $~~167,975~~87,975.

On March 24, 2021, the Company transferred $500,000 to MGWI, an affiliate of the majority stockholder of the Company to hold in trust for our investment in two planned ventures in China. The ~~two potential investments are still pending.~~investment was used for the acquisition of LWL.

On ~~June 24, 2021~~September 21, 2022, MGW I converted $~~75,000~~1,548,904 from the outstanding balance of their convertible note into ~~25,000,000~~12,907,534 shares of company’s common stock.

Kambiz Mahdi, our Chief Executive Officer, owns Billet Electronics, which is a distributor of electronic components. From time to time, we purchase parts from Billet Electronics. In addition, Billet was a supplier of parts and had dealings with current and former customers of the Company prior to joining the company. The number of parts purchases in the 1^st quarter of 2023 was $6,180. Our Board of Directors has approved the transactions between Billet Electronics and the Company.

For the quarter ended ~~June 30, 2022,~~March 31, 2023, and for the year ended December 31, ~~2021~~2022, there was 0no change in our warranty liability. We estimate our warranty liability based on past experiences and estimated replacement cost of material and labor to replace the critical turbine in the units that are still under warranty.

On ~~June 24, 2021~~April 2, 2023, the Company formed CETY Capital LLC a wholly owned subsidiary of CETY. In addition, the company with established ~~CETY Renewables Ashfield~~Vermont Renewable Gas LLC (“~~CRA”~~VRG”) ~~a wholly owned subsidiary of Ashfield Renewables Ag Development LLC(“ARA”)~~C with our partner, ~~Ashfield AG~~Synergy Bioproducts Corporation (“~~AG”~~SBC”). The purpose of the joint venture is the development of a pyrolysis plant established to convert ~~woody~~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 ~~CRA~~VRG is located in ~~Ashfield, Massachusetts.~~Lyndon, Vermont. Based upon the terms of the members’ agreement, ~~the~~ CETY Capital LLC owns a 7549% interest and AGSBC owns a 2551% interest in ~~Ashfield Renewables Ag Development~~Vermont Renewable Gas LLC. ~~The agreement with CETY Renewables Ashfield has been terminated and we are in the process of negotiating a new agreement.~~

~~The~~In July 2022, JHJ and other three shareholders agreed to form and make total capital contribution of RMB 20 million ($2.81 million) with latest contribution due date in February 2066 into Sichuan Hongzuo Shuya Energy Limited (“Shuya”), JHK owns 20% of Shuya. In August 2022, JHJ purchased 100% ownership of Sichuan Shunengwei Energy Technology Limited (“SSET”) for $0, who owns 29% of Shuya; Shunengwei is a holding company and did not have any operations nor made any capital contribution into Shuya as of the ownership purchase date by JHJ; right after the ownership purchase of SSET, JHJ ultimately owns 49% of Shuya. As a result of Consistent Action Agreement entered on December 31, 2022, the Company re-analyzed and determined that Shuya is the variable interest entity (“VIE”) of JHJ, and the Company consolidates Shuya into its consolidated financial statements ~~reflect 100% of the assets and liabilities of CRA and report the current~~effective on January 1, 2023. The non-controlling interest of ~~AG. The full results of CRA operations are reflected in~~Shuya representes the ~~statement of income with the elimination of the non-controlling interest identified.~~41% equity ownership that is owned by Leishen, and 10% equity ownership owned by another shareholder.

The Company’s ability to pay dividends primarily depends on it receiving funds from its subsidiaries. PRC laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of the subsidiary’s retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with US GAAP differ from those reflected in the statutory financial statements of the Company’s PRC subsidiaries.

In accordance with the PRC Regulations on Enterprises with Foreign Investment and their articles of association, a foreign-invested enterprise (“FIE”) established in the PRC is required to provide statutory reserves, which are appropriated from net profit as reported in the FIE’s PRC statutory accounts. An FIE is required to allocate at least 10% of its annual after-tax profit to the surplus reserve until such reserve reaches 50% of its respective registered capital based on the FIE’s PRC statutory accounts. Appropriations to other funds are at the discretion of the BOD for all FIEs. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Additionally, shareholders of an FIE are required to contribute capital to satisfy the registered capital requirement of the FIE. Until such a contribution of capital is satisfied, the FIE is not allowed to repatriate profits to its shareholders, unless otherwise approved by the State Administration of Foreign Exchange.

Additionally, in accordance with the Company Laws of the PRC, a domestic enterprise is required to provide surplus reserve at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to have a discretionary surplus reserve, at the discretion of the BOD, from the profits determined in accordance with the enterprise’s PRC statutory accounts. Appropriation to such reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Technology was established as domestic enterprises and therefore ~~are~~is subject to the above-mentioned restrictions on distributable profits.

As a result of these PRC laws and regulations that require annual appropriations of 10% of after-tax income to be set aside prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company as a dividend.

In addition, according to Administrative Measures for the Collection and Utilization of Enterprise Work Safety Funds issued by the PRC Ministry of Finance and the State Administration of Work Safety, for the companies with dangerous goods production or storage, the company is required to make a special reserve for the use of enhancing and improving its safe production conditions. Under PRC GAAP, the reserve is recorded as selling expense; however, under US GAAP, since the expense has not been incurred and the Company will record cost of sales for safety related expenses when it is actually happened or incurred, this special reserve was recorded as an appropriation of its after-tax income. The reserve is calculated at a rate of 15% of total sales.

On ~~June 30, 2022~~April 3, 2023, Clean Energy Technologies, Inc. reached an agreement with Cybernaut Zfounder Ventures, LLC to pay off the ~~company entered into~~outstanding convertible notes in amount equal to $324,000 that were in default for a ~~promissory note in the~~settlement amount of $~~252,928.44~~ ~~with and interest rate of~~ 10~~% per annum and a~~ ~~default interest rate of 22%~~ ~~per annum. This note is due in full on~~ ~~June 30, 2023~~ ~~and has mandatory monthly payments of $27,822.13. The note had an OID of $25,293~~ and recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This is note is convertible, but not until a contingent event of default has taken place, none of which have occurred as of the date of this filing. The balance on this note as of June 30, 2022 was $~~252,928.44~~200,000.

On ~~July 13, 2022~~April 18, 2023, Mast Hill exercised the ~~company entered into a~~right to purchase 93,750 of the shares of Common Stock (“Warrant Shares”) of Clean Energy Technologies, Inc., because of the Common Stock Purchase Warrant (the “Warrant”) issued on September 16, 2022. The exercise price is $1.60 per share. The total purchase price was $150,000.

On January 19, 2023, we issued 58,438 warrant shares in connection with the issuance of the promissory note in the principal amount of $~~159,450~~187,000 ~~with and interest rate~~to Mast Hill Fund at the exercise price per share of $101.60. However, that if the Company consummates an Uplist Offering on or before the date that is one hundred eighty (180) calendar days after the Issuance Date, then the Exercise Price shall equal 120% of the offering price per ~~annum and a~~ ~~default interest rate~~share of ~~22%~~ ~~per annum. This~~Common Stock. Mast Hill exercised this note ~~is due~~ in full on ~~July 13, 2023~~ ~~and has mandatory monthly payments of $17,539.50. The note had an OID of $16,447.00~~ and recorded as finance fee expense. In the event of the default, at the option of the Investor, the note may be converted into shares of common stock of the company. This is note is convertible, but not until a contingent event of default has taken place, none of which have occurred as of the date of this filing.

On August 12, 2022, Clean Energy Technology, Inc., a Nevada corporation (the “Company”), entered into a Securities Purchase Agreement with Jefferson Street Capital, LLC (“Jefferson”) pursuant to which the Company issued to Jefferson a $~~138,888.88~~ ~~Convertible Promissory Note, due August 5, 2023 (the “Note”) for a purchase price of $125,000.00~~ ~~plus an original issue discount in the amount of $13,888.88, and an interest rate of fifteen percent (~~15~~%) per annum. The Company issued Jefferson a five year warrant (“Warrant”) to purchase~~ ~~1,736,111shares of Common Stock in connections with the transactions described above.~~May 10, 2023.

On August 17, 2022, Clean Energy Technology, Inc., a Nevada corporation (the “Company”), entered into a Securities Purchase Agreement with First Fire Global Opportunities Fund, LLC (“Firstfire”) pursuant to which the Company issued to Firstfire a $~~150,000.00~~ ~~Convertible Promissory Note, due August 17, 2023 (the “Note”) for a purchase price of $135,000.00~~ ~~plus an original issue discount in the amount of $15,000.00, and an interest rate of fifteen percent (~~15~~%) per annum. The Company issued Firstfire a five-year warrant (“Warrant”) to purchase~~ ~~1,875,000~~ ~~shares of Common Stock in connections with the transactions described above.~~

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements. You can identify forward-looking statements ~~by the use of~~using the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms. These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements. Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

We were incorporated in California in July 1995 under the name Probe Manufacturing Industries, Inc. We redomiciled to Nevada in April 2005 under the name Probe Manufacturing, Inc. We manufactured electronics and provided services to original equipment manufacturers (OEMs) of industrial, automotive, semiconductor, medical, communication, military, and high technology products. On September 11, 2015, Clean Energy HRS, or “CE HRS”, our wholly owned subsidiary acquired the assets of Heat Recovery Solutions from General Electric International. In November 2015, we changed our name to Clean Energy Technologies, Inc.

Our principal executive offices are located at 2990 Redhill Avenue, Costa Mesa, CA 92626. Our telephone number is (949) 273-4990. Our common stock is listed on the NASDAQ Markets under the symbol “CETY.”

The Company has four reportable segments: Clean Energy HRS (HRS), CETY Europe, the legacy electronic manufacturing services (Electronic Assembly) division and CETY HK.

We specialize in renewable energy & energy efficiency systems design, manufacturing and project implementation. We were incorporated in California in July 1995 under the name Probe Manufacturing Industries, Inc. We redomiciled to Nevada in April 2005 under the name Probe Manufacturing, Inc. We provided engineering and manufacturing electronics services to original equipment manufacturers (OEMs) of clean energy, industrial, automotive, semiconductor, medical, communication, military, and high technology products.

With the vision to combat climate change and creating a better, cleaner and environmentally sustainable future, we formed Clean Energy HRS, LLC a wholly owned subsidiary of Clean Energy Technologies, Inc. and acquired the assets of Heat Recovery Solutions from General Electric International on September 11, 2015. In November 2015, we changed our name to Clean Energy Technologies, Inc. Our principal executive offices are located at 2990 Redhill Avenue, Costa Mesa, CA 92626. We have ~~12 full time~~14 full-time employees. All employees and ~~overhead~~overheads are shared between Clean Energy Technologies, Inc. (which still provides the contract electronic manufacturing services) and Clean Energy HRS, LLC.

Clean Energy Technologies, Inc. established a new company, CETY Europe, SRL (CETY Europe) as a wholly owned subsidiary. CETY Europe is a Sales and Service Center in Silea (Treviso), Italy established in 2017. The service center became operational in November 2018. Their offices are located at Alzaia Sul Sile, 26D, 31057 Silea (TV) and ~~the~~they have 1 full time employee.

Clean Energy Technologies, Inc. established a wholly owned subsidiary called CETY Capital, a financing arm of CETY to fund captive renewable energy projects producing low carbon energy. CETY Capital will add flexibility to the capacity CETY offers its customers and fund projects utilizing its products and clean energy solutions.

CETY Capital retains ~~75%~~49% ownership interest in ~~Ashfield Renewables Ag Development~~Vermont Renewable Gas LLC ~~which has~~ established ~~CETY Renewables Ashfield LLC a wholly owned low carbon energy company developing~~to develop a biomass ~~plant.~~plant in Vermont utilizing CETY’s High Temperature Ablative Pyrolysis system.

Clean Energy Technologies (H.K.) Limited., a wholly owned subsidiary of Clean Energy Technologies Inc. acquired 100% ownership of Leading Wave Limited a liquid natural gas trading company in China.

The Company has four reportable segments: Clean Energy HRS (HRS), and CETY Europe, CETY Renewables, ~~Ashfield,~~ CETY HK and the legacy engineering and manufacturing services division.

The Company’s business and operating results are directly affected by changes in overall customer demand, operational costs and performance and leverage of our fixed cost and selling, general and administrative (“SG&A”) infrastructure.

Product sales fluctuate in response to several factors including many that are beyond the Company’s control, such as general economic conditions, interest rates, government regulations, consumer spending, labor availability, and our customers’ production rates and inventory levels. Product sales consist of demand from customers in many different markets with different levels of cyclicality and seasonality.

Operating performance is dependent on the Company’s ability to manage changes in input costs for items such as raw materials, labor, and overhead operating costs. Performance is also affected by manufacturing efficiencies, including items such as on time delivery, quality, scrap, and productivity. Market factors of supply and demand can impact operating ~~costs~~costs.

In December 2019, a novel strain of coronavirus (COVID-19) was reported in Wuhan, China and has spread throughout the United States and the rest of the world. The World Health Organization has declared the outbreak to constitute a “Public Health Emergency of International Concern.” This contagious disease outbreak, which has not been contained, and is disrupting supply chains and affecting production and sales across a range of industries in United States and other companies as a result of quarantines, facility closures, and travel and logistics restrictions in connection with the outbreak, as well as the worldwide adverse effect to workforces, economies and financial markets, leading to a global economic downturn. Therefore, the Company expects this matter to negatively impact its operating results. However, the related financial impact and duration cannot be reasonably estimated at this time.

We develop renewable energy products and solutions and establish partnerships in renewable energy that make environmental and economic sense. Our mission is to be a segment leader in the Zero Emission Revolution by offering recyclable energy solutions, clean energy fuels and alternative electric power for small and mid-sized projects in North America, Europe, and Asia. We target sustainable energy solutions that are profitable for us, profitable for our customers and represent the future of global energy production.

Waste Heat Recovery Solutions – we recycle wasted heat produced in manufacturing, waste to energy and power generation facilities using our patented Clean Cycle^TM generator to create electricity which can be recycled or sold to the grid.

Waste to Energy Solutions - we convert waste products created in manufacturing, agriculture, wastewater treatment plants and other industries to electricity, renewable natural gas (“RNG”), hydrogen and ~~bio char~~biochar which are sold or used by our customers.

Engineering, Consulting and Project Management Solutions – we bring a wealth of experience in developing clean energy projects for municipal and industrial customers and Engineering, Procurement and Construction (EPC) companies so they can identify, design and incorporate clean energy solutions in their projects.

Clean Energy Technologies (H.K.) Limited (“CETY HK”) consists of two business ventures in mainland China:(i) our ~~liquefied~~ natural gas (“~~LNG”~~NG”) trading operations sourcing and suppling ~~LNG~~NG to industries and municipalities. ~~The LNG~~Natural Gas is principally used for heavy truck refueling stations and urban or industrial ~~users in areas that do not have a connection to local LNG pipeline systems.~~users. We purchase large quantities of ~~LNG~~NG from large wholesale ~~LNG~~NG depots at fixed prices which are prepaid for in advance at a discount to the market. We sell the ~~LNG~~NG to our customers at fixed prices or prevailing daily spot prices for the duration of the contracts; and (ii) our planned joint venture with a large state-owned gas enterprise in China called Shenzhen Gas (Hong Kong) International Co. Ltd. (“Shenzhen Gas”), acquiring natural gas pipeline operator facilities, ~~each~~ primarily located in the ~~southern~~southwestern part of ~~Sichuan Province and portions of Yunnan Province.~~China. Our planned joint venture with Shenzhen Gas plans to acquire, with financing from Shenzhen Gas, natural gas pipeline operator facilities with the goal of aggregating and selling the facilities to Shenzhen Gas in the future. According to our Framework Agreement with Shenzhen Gas, we will be required to contribute $8 million to the joint ~~venture.~~venture which plans to raise in future rounds of financing. The terms of the joint venture are subject to the execution of definitive agreements.

We design, produce and market clean energy products and integrated solutions focused on energy efficiency and renewable energy. Our aim is to become a leading provider of renewable and energy efficiency products and solutions by helping commercial companies and municipalities reduce energy waste and emissions, lower energy costs and generate incremental revenue by providing electricity, renewable natural gas and biochar to the grid.

Clean Energy Solutions - our Waste Heat Recovery Solutions, Waste to Energy Solutions, China LNG initiatives and Engineering and Consulting Services which are the core offerings of our business.

CETY Europe – our subsidiary established in Italy for the purposes of servicing our customers in the EU that we are required to report as a separate accounting entity.

Electronic Manufacturing Business - our legacy electronics manufacturing business that do not contribute significantly to our revenues or business plan that we are required to report as a separate accounting entity.

Which is the parent company of our ~~LNG~~NG trading operations in China, ~~that source and supply LNG and~~as well as our planned joint venture to acquire ~~LNG~~NG distribution systems depots and transmission systems. Prior to the first quarter of 2022, the Company had three reportable segments but added the CETY HK segment to reflect its recent new businesses in China.

Summary of Operating Results the ~~six~~three months Ended ~~June 30, 2022~~March 31, 2023 Compared to the same period in ~~2021~~2022

The 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~~equity of ~~$646,909~~$6,001,109 and a working capital ~~deficit~~ of ~~$3,208,372~~$2,377,048 as of ~~June 30, 2022~~March 31, 2023, The company also had an accumulated deficit of ~~$17,883,464~~$18,350,395 as of ~~June 30, 2022~~March 31, 2023 and used ~~$1,233,918~~$641,092 in net cash from operating activities for the ~~six~~three months ended ~~June 30, 2022.~~March 31, 2023. 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.

For the quarter ended March 31, 2023, our total revenue was $2,897,007 compared to $775,266 for the same period in 2022, which represents revenue growth of 373%. Our first quarter 2023 total revenue has already exceeded the total revenue of the entire year of 2022.

For the quarter ended March 31, 2023, our gross profit was $160,569 compared to $514,192 for the same period in 2022. Despite highly volatile natural gas (NG) prices, CETY was able to protect downside risks while scaling up the NG trading operations.

~~The six~~For the three months ended ~~June 30, 2022;~~March 31, 2023, our operating expense was $763,412 compared to $499,023 for the same period in 2022.

For the quarter ended March 31, 2023, we had a net loss of ~~$459,531~~$1,073,858 compared to ~~a net profit of $836,728~~$112,588 for the same period in ~~2021.~~2022 due to increased interest and financing fees and marketing campaign expenses attributed to CETY’s Nasdaq up-listing efforts.

For the quarter ended March 31, 2023, stockholder’s equity was $6,001,109 compared to $1,878,196 in December 31, 2022. This is a result of the offering related to the Nasdaq up-list as well as debt conversions and write-offs.

CETY has successfully repositioned itself and created 4 different business segments to create a larger, more stable, and more diversified revenue stream that could scale up. The ~~increase~~4 segments are Clean Energy HRS (Heat Recovery), Waste-to-Energy (Pyrolysis Plant), Engineering Procurement and Consulting (EPC), and CETY HK (NG trading and acquisitions). First quarter revenue was mainly contributed by NG trading. The revenue in this segment is expected to continue to scale up which will help establish CETY as a player in the ~~net profit~~China market and allows cross-selling of CETY products and solutions. CETY expects larger revenue contribution from Waste-to-Energy, Heat Recovery, and EPC in ~~2021~~the latter of this year which are higher gross margin segments. Our pilot Waste-to-Energy plant in Vermont which integrates all of CETY’s technologies and expertise into a single solution, is progressing steadily with updates coming soon. There is a growing market for Heat Recovery in the U.S. and Europe, and CETY HK has begun cross-selling Heat Recovery products in China. CETY is also gearing up for the EPC segment to implement holistic self-generation solutions globally.

Management believes this 4 segment strategy has created many operational synergies and cross-selling opportunities across different markets. The breakneck revenue growth that was ~~mainly~~demonstrated this quarter is a direct result of this strategy as we have exceeded the revenues of the entire year of 2022. CETY believes that it will continue to deliver growth on all segments this year due to our belief that there is an optimistic industry macro backdrop. The main macro factor benefiting us is the ~~increase~~global commitment to push renewable energy to the forefront from governments across the world. This is evidenced by the Paris Agreement and COP26. The Inflation Reduction Act passed by Congress in ~~gain~~August 2022 had specific provisions that can take advantage of CETY’s products and solutions. Another catalyst that will potentially help our Company, is a continuously improving global supply chain as U.S. and European markets have begun to return normal levels post COVID and China has reopened its borders. The European energy crisis has given rise to the opportunity for CETY to sell more of its products and solutions as customers are in search of self-generation capabilities in renewable energy. And lastly, as China ends its draconian COVID lockdown policies, CETY was able to resume its growing business in that region.

CETY reached a momentous milestone in its corporate history on ~~derivative in 2021, The three months ended June 30, 2022;~~March 23, 2023, when the company was able to meet all the Nasdaq listing standards and began trading on Nasdaq. Nasdaq trading status increases CETY’s reputation greatly and benefits CETY’s sales plans globally. This also improves the company’s ability to access capital with better terms.

CETY expects to and will continue to execute its corporate strategy to build sustained and profitable growth by providing end to end fully integrated solutions and technologies, expand our ~~revenue was $1,747,701 compared to $155,884~~global sales and marketing, production, research & development, as well as search for the same period in 2021. For the six months ended June 30, 2022, our gross margin was 45% compared to 75% 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.synergistic acquisition opportunities.

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

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

Results of the ~~six month ended June 30, 2022,~~three Ended March 31, 2023, Compared to the ~~six~~three ended ~~June 30, 2021~~March 31, 2022

For the quarter ended March 31, 2023, our total revenue was $2,897,007 compared to $775,266 for the same period in 2022. The Company has four reportable segments: Clean Energy HRS (HRS), CETY Europe ~~srl, Engineering~~ and ~~Manufacturing Business~~the legacy engineering & manufacturing services division, and CETY HK.

The ~~six~~three months ended ~~June 30, 2022,~~ March 31, 2023, our revenue from Engineering and Manufacturing was ~~$61,018~~$0 compared to ~~$41,223~~$32,280 for the same period in ~~2021.~~2022. Our engineering team is in transition to establish the innovation center in Europe and has executed a master services agreement with RPG to support its fortune 500 customers with its sustainability goals. Additionally, our engineering team will be commencing work on the Vermont project starting in the second quarter of 2023.

The ~~six~~three months ended ~~June 30, 2022,~~ March 31, 2023, our revenue from HRS was ~~$460,885~~$5,194 compared to ~~$88,807~~$441,193 for the same period in ~~2021. This increase was mainly because~~2022. We are in the process of ~~more interest in heat recovery projects.~~securing long lead materials to complete several units over the next 6 months and be able to recognize revenue by the end of the year.

The ~~six~~three months ended ~~June 30, 2022,~~March 31, 2023, our revenue from CETY Europe was ~~$38,012~~$5,748 compared to ~~$161,128~~$33,827 for the same period in ~~2021. This decrease was a result of a sell of an equipment in 2021 vs. just the service revenue.~~2022.

The ~~six~~three months ended ~~June 30, 2022,~~March 31, 2023, our revenue from our wholly owned subsidiary ~~CETY HK~~JHJ was ~~$1,983,062~~$2,886,065 compared to $0$267,966 for the same period in 2021. ~~This is a s~~The increase was as a result of the ~~acquisition~~ability to secure larger amounts of ~~JHJ gas company made in Nivember of 2021. We started to generate revenue from this entity in the 1~~^st ~~quarter of 2022.~~gas.

The ~~six~~three months ended ~~June 30, 2022;~~March 31, 2023; our gross profits were ~~$1,146,000~~$160,628 compared to ~~$218,539~~$514,192 for the same period in ~~2021.~~2022. The ~~increase~~decrease in gross profit was due to ~~higher revenues.~~lower margins from the NG business and lower revenue from the HRS and Engineering services.

The ~~six~~three months ended ~~June 30, 2022,~~ March 31, 2023, our gross profit from Engineering and Manufacturing was ~~$38,475~~$0 compared to ~~$29,683~~$23,986 for the same period in ~~2021.~~2022.

The ~~six~~three months ended ~~June 30, 2022,~~ March 31, 2023, our gross profit from HRS was ~~$413,646~~$90 compared to ~~$62,802,~~$400,487, for the same period in ~~2021. The increase~~2022. We only had service revenue from ~~the~~ HRS segment ~~was mainly due to higher revenue~~ in the first quarter of ~~2022.~~2023.

The ~~six~~three months ended ~~June 30, 2022,~~ March 31, 2023, our gross profit from CETY Europe was ~~$30,630~~$5,097 compared to ~~$126,054~~$28,986 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.~~2022.

The ~~six~~three months ended ~~June 30, 2022,~~ March 31, 2023, our gross profit from our wholly owned subsidiary ~~CETY HK~~JHJ was ~~$663,249~~$155,441 compared to $0$60,733 for the same period in ~~2021. We had zero revenue from CETY HK in 2021.~~2022.

The ~~six~~three months ended ~~June 30, 2022;~~March 31, 2023; our SG&A expense was ~~$201,303~~$88,891 compared to ~~$340,521~~$92,935 for the same period in ~~2021. The decrease was a result of separating the subcontractor category from SG&A and lower cost of repair.~~2022.

The ~~six~~three months ended ~~June 30, 2022;~~March 31, 2023; our Salaries expense was ~~$390,892~~$218,237 compared to ~~$433,069~~$191,217 for the same period in ~~2021.~~2022. The ~~decrease~~increase in the quarter ending in ~~June 30, 2022~~March 31, 2023 was due to ~~less number of employees.~~new hires.

The ~~six~~three months ended ~~June 30, 2022;~~March 31, 2023; our travel expense was ~~$87,398~~$71,662 compared to ~~$40,354~~$27,734 for the same period in ~~2021. This~~2022. The increase was due to ~~additional~~travel expenses related to Europe for the MSA development and increased site ~~assessment surveys of multiple facilities~~visits due to an increase in ~~Europe.~~the sales opportunities and commissioning.

The ~~six~~three months ended ~~June 30, 2022;~~March 31, 2023; our Professional fees expense was ~~$224,195~~$88,210 compared to ~~$82,209~~$64,853 for the same period in ~~2021.~~2022. The increase in legal fees was due to ~~higher expenses~~more contract and agreement-related work and additional accounting work related to ~~a proposed IPO and up listing to NASDAQ.~~new foreign entities.

The ~~six~~three months ended ~~June 30, 2022;~~March 31, 2023; our Facility Lease and maintenance expense was ~~$173,480~~$122,779 compared to ~~$168,910~~$88,962 for the same period in ~~2021.~~2022.

The ~~six~~three months ended ~~June 30, 2022,~~March 31, 2023, our depreciation and amortization expense was ~~$15,038~~$5,949 compared to ~~$16,146~~$7,519 for the same period in ~~2021,~~2022, which remained relatively unchanged.

The ~~six~~three months ended ~~June 30, 2022;~~March 31, 2023; we had a gain on derivative liability of ~~$13,399~~$326,539 compared to a gain of ~~$1,745,369~~$16,014 for the same period in ~~2021.~~2022. The gain in derivative liability was ~~due to paying off~~from a favorable derivative calculations from several convertible notes in the ~~six~~three months ended ~~June 30, 2021.~~March 31, 2023.

~~The 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.~~

The ~~six~~three months ended ~~June 30, 2022~~March 31, 2023, interest and finance fees were ~~$416,275~~$837,391 compared to ~~$414,069~~$132,470 for the same period in ~~2021. which remained relatively unchanged~~2022. The increase was due to several new notes to assist with the uplist to Nasdaq.

The ~~six~~three months ended ~~June 30, 2022;~~ March 31, 2023; our loss was ~~$440,864~~$1,073,858 compared to ~~net profit~~loss of ~~$836,728~~$112,588 for the same period in ~~2021. The higher profits~~2022. This increase was primarily due to ~~the gain on derivative liability in 2021.~~financing fees.

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

Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management’s estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

We will continue to rely on equity sales of our common shares ~~in order~~ to continue to fund our business operations. ~~Issuances~~Issuance of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned acquisitions and exploration activities.

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our consolidated financial position or results of operations upon adoption.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management carried out an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”). Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective as of ~~June 30, 2022,~~March 31, 2023, due to the material weaknesses resulting from the Board of Directors not currently having any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K, and controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Please refer to our Annual Report on Form 10-K as filed with the SEC on April ~~15,~~17, 2022, for a complete discussion relating to the foregoing evaluation of Disclosures and Procedures.

Our management has also evaluated our internal control over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.

From time to time, the Company is involved in litigation incidental to the conduct of its business. The Company is presently not involved in any legal proceedings which in the opinion of management are likely to have a material adverse effect on the Company’s consolidated financial position or results of operations.

There have been no material changes in the Company’s risk factors from those previously disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

~~On January 21, 2020, our Registration Statement on Form 1-A was qualified with~~

During the ~~Securities and Exchange Commission, under which~~quarter ended March 31, 2022, we ~~may offer up to 300,000,000 shares of our common stock at a purchase price of $.03 per share. As of the date hereof, 4,523,333~~issued 78,896 shares of common stock, ~~have been issued thereunder.~~

~~On January 30, 2020 we issued 1,700,000 shares~~under S-1 registration statement with GHS for a total of ~~our common stock at~~$134,755 in net proceeds and expensed $45,498 in legal and financing fees as a purchase price of $.02 per share, as settlement in full of a note payable of in the amount of $36,500 with accrued interest of 19,721. As a result we recognized a gain in the amount of $22,221 in the 1^st ~~quarter of 2020.~~

~~On February 4, 2020 we issued 2,000,000 shares of our common stock at a price of $.04 per share, in exchange for the conversion of 800 shares of our Series D Preferred Stock.~~

~~On July 23, 2020 we issued 3,000,000 shares of our common stock at a price of $.04 per share, in exchange for the conversion of 1,200 shares of our Series D Preferred Stock.~~

~~On February 5, 2021 we issued 3,000,000 shares of our common stock at a price of $.08 per share, in exchange for the conversion of 1,200 shares of our Series D Preferred Stock.~~

~~On February 9, 2021 we issued 2,275,662 shares of our common stock share, in exchange for the conversion of $182,052 of accrued dividend for the series D Preferred Stock.~~

On March 12, 2021 we issued 1,625,000 shares and 2,068,588 of our common stock at a price of $.08 per share, in exchange for the conversion of 650 shares of our Series D Preferred Stock and 165,487 of accrued dividend for the series D preferred stock.

~~On June 28, 2021 MGW I converted $75,000 from the outstanding balance of their convertible note into 25,000,000 shares of company’s common stock.~~

~~On September 2, 2021 the company issued 1,142,459 as inducement shares. To GHS Investment for the equity line of credit at $0.0475 per share.~~

~~On September 13, 2021 the company issued 1,100,630 as issuance correction. To GHS Investment for the equity line of credit at $0.0475 per share.~~

~~On December 31,2021 the company issued 9,833,750 at a purchase price of $0.08 pre the 1A subscription agreement.~~result.

On February 21, 2022, we issued ~~15,035,000~~375,875 shares of our common stock under our Reg A offering at ~~$.08~~$3.20 per share. These shares are unrestricted and free trading.

During April of 2022, we issued 122,891 shares of common stock, under S-1 registration statement with GHS for a total of $153,324 in net proceeds and expensed $34,500 in legal and financing fees as a result.

On September 21, 2022, MGW I converted $1,548,904 from the outstanding balance of their convertible note into 12,907,534 shares of company’s common stock.

On December 28, 2022, Mast Hill exercised their warrant in full on a cashless basis to purchase 100,446 shares of Common Stock.

These securities were issued pursuant to Section 4(2) of the Securities Act and/or Rule 506 promulgated thereunder. The holders represented their intention to acquire the securities for investment only and not with a view towards distribution. The investors were given adequate information about us to make an informed investment decision. We did not engage in any general solicitation or advertising. We directed our transfer agent to issue the stock certificates with the appropriate restrictive legend affixed to the restricted stock.

We are currently in default on the payment of $1,200,000, to the balance of the purchase price pursuant to our asset purchase agreement with General Electric International, due to a combination of our inability to raise sufficient capital as expected and our belief that we are entitled to a reduction in purchase price we paid.None.

~~We are also in default of $187,285 payments of principal and interest on our notes payable to Cybernaut Zfounder Ventures.~~

The exhibit listed on the Exhibit Index (following the signatures section of this quarterly report dated ~~June 30, 2022~~March 31, 2023 on Form 10-Q are included, or incorporated by reference, in this ~~six~~three months ended ~~June 30, 2022~~March 31, 2023 Report on Form 10-Q.

*Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Costa Mesa, State of California on the 22 15^th day ~~of August, 2022~~May, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging Growth Company ☐

			Page
PART I. FINANCIAL INFORMATION

ITEM 1.	CONSOLIDATED FINANCIAL STATEMENTS		3

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	26

~~ITEM 3.~~	~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~	30

ITEM 4.3.	~~CONTROLS~~QUANTITATIVE AND ~~PROCEDURES~~QUALITATIVE DISCLOSURES ABOUT MARKET RISK		3036

ITEM 4.	CONTROLS AND PROCEDURES		36

PART II. OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS		3036

ITEM 1A.	RISK FACTORS	30	36

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		3036

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES		3137

ITEM 4.	MINE SAFETY DISCLOSURES		3137

ITEM 5.	OTHER INFORMATION		3137

ITEM 6.	EXHIBITS		3137

Financial Statement Index

Consolidated Balance Sheets ~~June 30, 2022~~March 31, 2023 (unaudited) and December 31, ~~2021~~2022	4

Consolidated Statements of Operations (unaudited)	5

Consolidated Statements of Stockholders Deficit (unaudited)	6

Consolidated Statements of Cash Flows (unaudited)	7

Notes to the Consolidated Financial Statements (unaudited)	8

	Unaudited			Audited
	June 30, 2022			December 31, 2021
Assets
Current Assets:
Cash	$	968,919		$	1,192,316
Accounts receivable - net		1,783,533			693,032
Lease receivable asset		217,584			217,584
Prepaid		13,140			40,380
Heze Hongyuan Natural Gas Co		785,828
Inventory		487,875			462,192
Total Current Assets		4,256,879			2,605,504
Property and Equipment - Net		23,916			33,016

Goodwill		747,976			747,976
LWL Intangibles		1,468,709			1,468,709
Long-term financing receivables - net		684,770			684,770
License		354,322			354,322
Patents		109,631			115,569
Right of use asset - long term		276,731			395,607
Other Assets		28,082			26,801
Total Non Current assets		3,670,221			3,793,754
Total Assets	$	7,951,016		$	6,432,274

Liabilities and Stockholders’ (Deficit)
Current Liabilities:
Accounts payable	$	625,585		$	606,814
Accrued Expenses		141,563			143,847
Customer Deposits		0			24,040
Warranty Liability		100,000			100,000
Deferred Revenue		33,000			33,000
Derivative Liability		270,082			256,683
Facility Lease Liability - current		252,504			213,474
Line of Credit		1,109,813			1,169,638
Notes payable - GE		2,526,036			2,498,076
Convertible Notes Payable (net of discount of $217,936 and $26,919 respectively)		1,683,315			1,193,341
Related Party Notes Payable		723,353			626,210
Total Current Liabilities		7,465,251			6,865,123
Long-Term Debt:
Related Party Notes Payable (net of discount of $0 and $0 Respectively		1,081,085			1,081,085
Facility Lease Liability - long term		51,588			207,778
Net Long-Term Debt		1,132,673			1,288,863
Total Liabilities		8,597,924			8,153,986

Commitments and contingencies	$	-			-

Stockholders’ (Deficit)
Common stock, $.001 par value; 2,000,000,000 shares authorized; 966,675,946 and 943,569,149 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		966,676			943,569
Additional paid-in capital		16,416,842			14,777,708
Subscription Receivables		(18,800	)		-
Accumulated Other Comprehensible Income		(109,104	)
Accumulated deficit		(17,883,464	)		(17,423,930	)
Total Stockholders’ (Deficit)		(627,850	)		(1,702,653	)

Non-controlling interest		(19,059	)		(19,059	)
Total Stockholders’ (Deficit)		(646,909	)		(1,721,712	)
Total Liabilities and Stockholders’ Deficit	$	7,951,016		$	6,432,274

	Unaudited			Audited
	March 31, 2023			December 31, 2022
Assets
Current Assets:
Cash	$	2,858,829		$	149,272
Accounts receivable - net		1,359,698			1,368,567
Accounts receivable – Related Party		4,883			-
Lease receivable asset		217,584			217,584
Advance to Supplier - Prepayment		1,044,621			597,816
Advance to Supplier – Related Party		458,014
Deferred Offering Costs		0			204,556
Investment Heze Honguan Natural Gas Co.		911,959			835,756
Due from – Related party		736,736
Loan Receivables					116,000
Inventory		706,203			500,586
Total Current Assets		8,298,528			3,990,137
Property and Equipment - Net		19,467			14,816

Goodwill		747,976			747,976
LWL Intangibles		1,483,179			1,468,709
Long Term Investment - Shuya		0			561,656
Long-term financing receivables - net		684,770			684,770
License		354,322			354,322
Patents		100,724			103,693
Right of use asset - long term		368,488			157,359
Other Assets		31,669			30,892
Total Non Current assets		3,771,128			4,109,377
Total Assets	$	12,089,122			8,114,330

Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	793,922			860,434
Accounts payable – Related Party		138,347
Accrued Expenses		239,350			119,030
Customer Deposits		284,112			80,475
Warranty Liability		100,000			100,000
Deferred Revenue		33,000			33,000
Derivative Liability		261,639			588,178
Facility Lease Liability - current		202,965			186,436
Line of Credit		776,588			998,820
Convertible Notes Payable (net of discount of 651,167 and $326,805 respectively)		2,718,263			3,092,055
Related Party Notes Payable		373,294			177,704
Total Current Liabilities		5,921,480			6,236,132
Long-Term Liability:
Facility Lease Liability - long term		166,532
Net Long-Term Liability		166,532
Total Liabilities		6,088,012			6,236,132

Commitments and contingencies	$	-			-

Stockholders’ Equity
Common stock, $.001 par value; 2,000,000,000 shares authorized; 38,495,453 and 37,174,879 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively		38,495			37,175
Shares to be issued
Addition paid-in capital		23,775,096			19,278,230
Accumulated Other Comprehensible Income		(151,060	)		(160,673	)
Accumulated deficit		(18,350,395	)		(17,276,536	)
Total Stock Holders Equity attributable to CETY		5,312,136			1,878,196
Non-controlling interest		688,974
Total Stockholders’ Equity		6,001,109			1,878,196
Total Liabilities and Stockholders’ Equity	$	12,089,122			8,114,328

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common		CETY		~~OTCQB~~Nasdaq


	2022 Three Months			2021 Three Months			2022 Six Months			2021 Six Months			2023			2022
Sales	$	1,747,701			155,884		$	2,522,968		$	291,158		$	2,897,007			775,266
Cost of Goods Sold		1,135,904			49,356			1,396,978			72,619			2,736,438			261,074
Gross Profit		611,797			106,528			1,125,990			218,539			160,569			514,192

General and Administrative
General and Administrative expense		108,368			211,673			201,303			340,521			88,891			92,935
Salaries		199,675			225,104			390,892			433,069			218,237			191,217
Travel		59,664			25,339			87,398			40,354			71,662			27,734
Professional Fees Legal & Accounting		159,342			49,373			224,195			82,209			88,210			64,853
Facility lease and Maintenance		84,519			82,699			173,480			168,910			122,779			88,962
Subcontractors		36,248						62,051			-
Consulting Engineering														167,683			25,803
Depreciation and Amortization		7,519			8,073			15,038			16,146			5,949			7,519
Total Expenses		655,335			602,261			1,154,358			1,081,209			763,412			499,023
Net Profit / (Loss) From Operations		(43,537	)		(495,733	)		(28,368	)		(862,670	)		(602,843	)		15,169

Other Income														79,154			(9,335	)
Change in derivative liability		(29,414	)		(3,804	)		(13,399	)		1,745,369			326,539			16,014
Gain / (Loss) on debt settlement and write down		2,920			368,098			2,920			368,098
Other Income		23,593						14,258
Interest and Financing fees		(283,804	)		(100,417	)		(416,275	)		(414,069	)		(837,391	)		(132,470	)
Net Profit / (Loss) Before Income Taxes		(330,242	)		(231,856	)		(440,864	)		836,728			(1,034,541	)		(110,622	)
Income Tax Expense		(16,701	)					(18,667	)					(1,295	)		(1,966	)
Net Profit / (Loss)		(346,943	)		(231,856	)		(459,531	)		836,728			(1,035,835	)		(112,588	)

Non-controlling interest														(38,023	)

Net Profit / (Loss) attributable to Clean Energy Technologies, Inc.		(346,943	)		(231,856	)		(459,531	)		836,728			(1,073,858	)		(112,588	)

Other Comprehensive Item
Foreign Currency Translation Gain		(113,666	)					(109,104	)		-			9,613			4562
Total Comprehensible Income / (Loss)	$	(460,609	)		(231,856	)	$	(568,635	)	$	836,728		$	(1,064,246	)		(108,026	)

Per Share Information:

Basic and diluted weighted average number of common shares outstanding		965,929,205			895,498,243			959,148,981			853,322,779			37,255,674			23,807,335
Diluted weighted average number of common shares outstanding		965,929,205			895,498,243			959,148,981			1,339,978,304
Net Profit / (Loss) per common share basic and diluted	$	(0.00	)		(0.00	)	$	(0.00	)	$	0.00		$	(0.03	)		(0.00	)

Description	Shares		Amount		Shares			Amount			Amount			Capital					Deficit				Totals
	Common Stock .001 Par				Preferred Stock						Common Stock to be issued			Additional Paid in					Accumulated				Stock holders’ Deficit
Description	Shares		Amount		Shares			Amount			Amount			Capital					Deficit				Totals
December 31, 2020		821,169,656	$	821,171		4,500		$	450,000		$	61,179		$	9,080,560		-	-	$	(17,651,482	)	-	$	(7,238,572	)

Shares issued for warrant conversion		1,797,861		1,798		-			-			-			(1,798	)				-				(0	)
Shares issued for Reg A offering		16,666,667		16,667											483,333									500,000
Shares issued for acccrued dividend		4,344,250		4,344		-			-			-			343,194					-				347,538
Conversion of Preferred Series D		6,625,000		6,625		(4,500	)		(450,000	)		-			443,375									-
Inducement shares		1,250,000		1,250								(25,000	)		23,750									-
Shares issued for cash		44,213,053		44,213		-			-			(36,179	)		3,075,969									3,084,003
																								-
Net Loss		-				-						-					-	-		1,068,584		-		1,068,584
March 31, 2021		896,066,487	$	896,068		-		$	-		$	-		$	13,448,384		-	-	$	(16,582,898	)	-	$	(2,238,447	)
Shares issued for warrant conversion		547,468		547											(547	)								-
Shares issued for cash		36,283		36		-			-															36
Shares for conversion		25,000,000		25,000											50,473									75,473
Net Loss		-				-						-					-	-		(231,856	)	-		(231,856	)
June 30, 2021		921,650,238	$	921,651		-		$	-		$	-		$	13,498,310		-	-	$	(16,814,754	)	-	$	(2,394,794	)


	Common Stock .001 Par				Preferred Stock				Common Stock to be issued		Additional Paid in		Subscription			Accumulated Comprehensive		Accumulated			Non Controlling			Stock holders’ Deficit/equity
Description	Shares		Amount		Shares		Amount		Amount		Capital		Interest			Income		Deficit			interest			Totals
December 31, 2021		23,589,229		23,589		-		-		-		15,697,688		-			-		(17,423,931	)		(19,059	)		(1,721,712	)
Shares issued for Reg A offering		375,875		376								1,202,424													1,202,800
Shares issued for S1		78,897		79								137,831													137,910
																									-
Subscription Receivable														(18,800	)										(18,800	)
Accumulated Comprehensive																	4,562								4,562
Net Loss								-		-									(112,589	)		-			(112,588	)
March 31, 2022		24,044,000		24,044		-		-		-		17,037,943		(18,800	)		4,562		(17,536,520	)		(19,059	)		(507,830	)

												-			-
	Common Stock .001 Par				Preferred Stock				Common Stock to be issued		Additional Paid in			Accumulated Comprehensive			Accumulated			Non Controlling		Stock holders’ Deficit/equity
Description	Shares		Amount		Shares		Amount		Amount		Capital			Income			Deficit			interest		Totals
December 31, 2022		37,174,879		37,175		-		-		-		19,278,229			(160,673	)		(17,276,536	)		-		1,878,196
Balance, value		37,174,879		37,175		-		-		-		19,278,229			(160,673	)		(17,276,536	)		-		1,878,196

Warrants issued in conjunction for debt				-		-		-		-		685,718						-			-		685,718
Shares issued for S-1 Registration		975,000		975		-		-		-		3,899,025						-			-		3,900,000
Offering Cost												(753,781	)										(753,781	)
Shares issued for rounding		3,745		4		-		-		-		(4	)					-			-		0
Shares for Pacific Pier and Firstfire conversion		64,225		64		-		-		-		(68	)					-			-		(4	)
Shares issued for Universal Scope Conversion		277,604		278		-		-		-		665,972						-			-		666,250
Accumulated Comprehensive						-		-		-		-			9,613			-			-		9,613
Non controlling interest ownership																					650,951		650,951
Net Loss						-		-		-		-						(1,073,858	)		38,023		(1,035,835	)
March 31, 2023		38,495,453		38,495		-		-		-		23,775,096			(151,060	)		(18,350,395	)		688,974		6,001,109
Balance, value		38,495,453		38,495		-		-		-		23,775,096			(151,060	)		(18,350,395	)		688,974		6,001,109

	2022			2021
Cash Flows from Operating Activities:
Net Income / ( Loss )	$	(459,531	)	$	836,728
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		15,038			16,146
Financing Fees		82,850			0
Gain on debt settlement		(2,920	)		(368,098	)
Amortization of debt discount		52,279
Change in debt discount and Financing fees		0			412,407
Change in derivative liability		13,399			(1,745,369	)
Changes in assets and liabilities:
(Increase) decrease in right of use asset		118,876			100,544
(Increase) decrease in lease liability		(117,161	)		(97,965	)
(Increase) decrease in accounts receivable		(1,090,501	)		(33,020	)
(Increase) decrease in inventory		(25,683	)		(168,421	)
(Increase) decrease in prepaid expenses		25,959			-
(Decrease) increase in accounts payable		54,697			(322,518	)
Other (Decrease) increase in accrued expenses		25,676			(364,718	)
Other (Decrease) increase in accrued expenses related party		97,143			255,082
Other (Decrease) increase in deferred revenue		0			-
Other (Decrease) increase in customer deposits		(24,040	)		30,000
Net Cash Provided by (Used In) Operating Activities		(1,233,918	)		(1,449,202	)

Cash Flows from Investing Activities
Convertible Note Receivable
(Increase) decrease in Heze Hongyuan Natural Gas Co		(785,828	)		-
Purchase property plant and equipment
Cash Flows Used In Investing Activities		(785,828	)		-

Cash Flows from Financing Activities
Bank Overdraft / (Repayment)
Payment on line of credit		(59,825	)		(598,127	)
Payment on notes payable		(272,616	)		-
Proceeds from notes payable		762,750			90,771
Proceeds from notes payable related party
Stock issued for cash		1,475,145			3,584,511
Cash Flows Provided By Financing Activities		1,905,454			3,077,155

Effect of exchange rate changes on cash		(109,104	)		-

Net (Decrease) Increase in Cash and Cash Equivalents		(223,397	)		1,627,953
Cash and Cash Equivalents at Beginning of Period		1,192,316			414,885
Cash and Cash Equivalents at End of Period	$	968,919		$	2,042,838

Supplemental Cashflow Information:
Interest Paid	$	36,048		$	101,027
Taxes Paid	$	-		$	-

Supplemental Non-Cash Disclosure
Discount on new notes	$	75,000		$	-
Shares issued for warrants issued	$	168,296		$	-
Shares issued for preferred conversions	$	-		$	-
Shares issued for debt conversion conversions	$	-		$	-

Furniture and fixtures			3 to 7 years
Equipment			7 to 10 years
Leasehold Improvements			7 years

		a.	A good or another asset from the other party which the entity then transfers to the customer. Note that momentary control before transfer to the customer may not qualify.
		b.	A right to a service to be performed by the other party, which gives the entity the ability to direct that party to provide the service to the customer on the entity’s behalf.
		c.	A good or service from the other party that it then combines with other goods or services in providing the specified good or service to the customer.

	●	Identify the contract with the customer

	●	Identify the performance obligations in the contract

	●	Determine the transaction price

	●	Allocate the transaction price to the performance obligations in the contract

	●	Recognize revenue when the company satisfies a performance obligation

	●	We generate a quotation

	●	We receive purchase orders from our customers.

	●	We build the product to their specification

	●	We invoice at the time of shipment

	●	The terms are typically Net 30 days

	●	Level 1: Quoted prices in active markets for identical assets or liabilities.

	●	Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

	●	Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s derivative liabilities have been valued as Level 3 instruments. We value the derivative liability using a lattice model, with a volatility of 8491.5% and using a risk free interest rate of ~~0.15~~4.5%

	Level 1		Level 2		Level 3		Total

Fair value of convertible notes derivative liability – June 30, 2022	$	–	$	–	$	270,082	$	270,082

Consideration:
Cash and cash equivalents	$	1,500,000		$	1,500,000

Total purchaser consideration	$	1,500,000		$	1,500,000

Assets acquired:
Cash and cash equivalents	$	6,156		$	6,156
Prepayment	$	13,496		$	13,496
Other receivable	$	20,000		$	20,000
Trading Contracts	$	146,035		$	146,035
Shenzhen Gas Relationship	$	1,314,313		$	1,314,313
Total assets acquired	$	1,508,539		$	1,508,539

Liabilities assumed:
Advance Receipts	$	(8,539	)	$	(8539
Taxes Payable	$	179		$	179
Net Assets Acquired:	$	1,500,000		$	1,500,000

	June 30, 2022		December 31, 2021
Accrued Wages	$	69,007	$	22,950
Accrued Interest and other		72,556		120,897
Accrued Interest and other	$	141,563	$	143,847


	June 30, 2022		December 31, 2021
Note payable GE	$	1,200,000	$	1,200,000
Accrued transition services		972,233		972,233
Accrued Interest		353,803		325,843
Total	$	2,526,036	$	2,498,076


Year	Lease Payment
2022		120,942
2023		191,903
Imputed Interest		(14,047	)
Net Lease Liability	$	298,798

	Warrants - Common Share Equivalents		Weighted Average Exercise price		Warrants exercisable - Common Share Equivalents		Weighted Average Exercise price
Outstanding December 31, 2021		8,754,720	$	0.04		8,754,720	$	0.04
Expired		3,754,720				3,754,720		0.04
Exercised
Issued		9,375,000
Outstanding June 30, 2022		14,375,000	$	0.04		5,000,000	$	0.04

	Warrants - Common Share Equivalents			Weighted Average Exercise price		Warrants exercisable - Common Share Equivalents			Weighted Average Exercise price
Outstanding December 31, 2022		325,243		$	1.60		325,243		$	1.60
Expired
Additions		425,438			1.60		425,438			1.60
Additions		26,701			5.00		26,701			5.00
Exercised		(90,278	)		1.60		(90,278	)		1.60
Outstanding March 31, 2023		687,104		$	3.73		687,104		$	3.73

EXHIBIT NUMBER	DESCRIPTION
31.01	Certification of Principal Executive Officer Pursuant to Rule 13a-14	Filed herewith.
31.02	Certification of Principal Financial Officer Pursuant to Rule 13a-14	Filed herewith.
32.01	Certification of CEO Pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith.
32.02	Certification of CFO Pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith.
101.INS*	Inline XBRL Instance Document	Furnished herewith.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document	Furnished herewith.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document	Furnished herewith.
101.LAB*	Inline XBRL Taxonomy Extension Labels Linkbase Document	Furnished herewith.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document	Furnished herewith.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document	Furnished herewith.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

Clean Energy Technologies, Inc.
REGISTRANT

	/s/ Kambiz Mahdi
By:	Kambiz Mahdi
	Chief Executive Officer

Date:	~~Date: August~~May 22, ~~2022~~2023, Update all dates to signing to signing date

	/s/ Calvin Pang
By:	Calvin Pang
	Chief Financial Officer

Date:	~~Date: August~~May 22, ~~2022~~2023

	/s/ Mr. Ted Hsu
By:	Ted Hsu
	Director

Date:	May 22, 2023, Update all dates to signing to signing date

	/s/ Ms. Lauren Morrison
By:	Lauren Morrison
	Director

Date:	May 22, 2023

	/s/ Mr. Matthew Graham Smith
By:	Matthew Graham Smith
	Director

Date:	May 22, 2023, Update all dates to signing to signing date

Signature		Title

	/s/ Kambiz Mahdi	Chief Executive Officer and Director
By:	Kambiz Mahdi	(Principal executive officer)

Date:	~~Date: August~~May 22, ~~2022~~2023