Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 22, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-55656 | |
Entity Registrant Name | CLEAN ENERGY TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001329606 | |
Entity Tax Identification Number | 20-2675800 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 2990 Redhill Ave | |
Entity Address, City or Town | Costa Mesa | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92626 | |
City Area Code | (949) | |
Local Phone Number | 273-4990 | |
Title of 12(b) Security | Common | |
Trading Symbol | CETY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 38,553,891 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash | $ 2,858,829 | $ 149,272 |
Accounts Receivable, after Allowance for Credit Loss, Current, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] |
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 |
Current Liabilities: | ||
Accounts Payable, Current, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] |
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 |
Notes Payable, Current, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] |
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 |
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 |
Nonrelated Party [Member] | ||
Current Assets: | ||
Accounts receivable – Related Party | 1,359,698 | 1,368,567 |
Current Liabilities: | ||
Accounts payable – Related Party | 793,922 | 860,434 |
Related Party [Member] | ||
Current Assets: | ||
Accounts receivable – Related Party | 4,883 | 0 |
Advance to Supplier – Related Party | 458,014 | |
Due from – Related party | 736,736 | |
Current Liabilities: | ||
Accounts payable – Related Party | 138,347 | |
Related Party Notes Payable | $ 373,294 | $ 177,704 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Debt instrument unamortized discount current | $ 651,167 | $ 326,805 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 38,495,453 | 37,174,879 |
Common stock, shares outstanding | 38,495,453 | 37,174,879 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Sales | $ 2,897,007 | $ 775,266 |
Cost of Goods Sold | 2,736,438 | 261,074 |
Gross Profit | 160,569 | 514,192 |
General and Administrative | ||
General and Administrative expense | 88,891 | 92,935 |
Salaries | 218,237 | 191,217 |
Travel | 71,662 | 27,734 |
Professional Fees Legal & Accounting | 88,210 | 64,853 |
Facility lease and Maintenance | 122,779 | 88,962 |
Consulting Engineering | 167,683 | 25,803 |
Depreciation and Amortization | 5,949 | 7,519 |
Total Expenses | 763,412 | 499,023 |
Net Profit / (Loss) From Operations | (602,843) | 15,169 |
Other Income | 79,154 | (9,335) |
Change in derivative liability | 326,539 | 16,014 |
Interest and Financing fees | (837,391) | (132,470) |
Net Profit / (Loss) Before Income Taxes | (1,034,541) | (110,622) |
Income Tax Expense | (1,295) | (1,966) |
Net Profit / (Loss) | (1,035,835) | (112,588) |
Non-controlling interest | (38,023) | |
Net Profit / (Loss) attributable to Clean Energy Technologies, Inc. | (1,073,858) | (112,588) |
Other Comprehensive Item | ||
Foreign Currency Translation Gain | 9,613 | 4,562 |
Total Comprehensible Income / (Loss) | $ (1,064,246) | $ (108,026) |
Per Share Information: | ||
Basic and diluted weighted average number of common shares outstanding | $ 37,255,674 | $ 23,807,335 |
Net Profit / (Loss) per common share basic and diluted | $ (0.03) | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Deficit (Unaudited) - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Common Stock To Be Issued [Member] | Additional Paid-in Capital [Member] | Subscription Interest [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance, value at Dec. 31, 2021 | $ 23,589 | $ 15,697,688 | $ (17,423,931) | $ (19,059) | $ (1,721,712) | ||||
Balance, shares at Dec. 31, 2021 | 23,589,229 | ||||||||
Shares issued for Reg A offering | $ 376 | 1,202,424 | 1,202,800 | ||||||
Shares issued for Reg A offering, shares | 375,875 | ||||||||
Shares issued for S-1 Registration | $ 79 | 137,831 | 137,910 | ||||||
Shares issued for S1 Registration, shares | 78,897 | ||||||||
Subscription Receivable | (18,800) | (18,800) | |||||||
Accumulated Comprehensive | 4,562 | 4,562 | |||||||
Net Loss | (112,589) | (112,588) | |||||||
Balance, value at Mar. 31, 2022 | $ 24,044 | 17,037,943 | $ (18,800) | 4,562 | (17,536,520) | (19,059) | (507,830) | ||
Balance, shares at Mar. 31, 2022 | 24,044,000 | ||||||||
Balance, value at Dec. 31, 2022 | $ 37,175 | 19,278,229 | (160,673) | (17,276,536) | 1,878,196 | ||||
Balance, shares at Dec. 31, 2022 | 37,174,879 | ||||||||
Shares issued for S-1 Registration | $ 975 | 3,899,025 | 3,900,000 | ||||||
Shares issued for S1 Registration, shares | 975,000 | ||||||||
Accumulated Comprehensive | 9,613 | 9,613 | |||||||
Net Loss | (1,073,858) | 38,023 | (1,035,835) | ||||||
Warrants issued in conjunction for debt | 685,718 | 685,718 | |||||||
Shares issued for rounding | $ 4 | (4) | 0 | ||||||
Shares issued for rounding, shares | 3,745 | ||||||||
Shares for Pacific Pier and Firstfire conversion | $ 64 | (68) | (4) | ||||||
Shares for Pacific Pier and Firstfire conversion, shares | 64,225 | ||||||||
Shares issued for Universal Scope Conversion | $ 278 | 665,972 | 666,250 | ||||||
Shares issued for Universal Scope Conversion, shares | 277,604 | ||||||||
Non controlling interest ownership | 650,951 | 650,951 | |||||||
Balance, value at Mar. 31, 2023 | $ 38,495 | $ 23,775,096 | $ (151,060) | $ (18,350,395) | $ 688,974 | $ 6,001,109 | |||
Balance, shares at Mar. 31, 2023 | 38,495,453 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net Income / ( Loss ) | $ (1,035,835) | $ (112,588) |
Depreciation and amortization | 5,949 | 7,519 |
Amortization Debt Discount | 470,038 | |
Warrant issued to JH Darbie | 76,100 | |
Financing Fees | 67,111 | 6,554 |
Change in derivative liability | (326,539) | (16,014) |
Changes in assets and liabilities: | ||
(Increase) decrease in right of use asset | (211,129) | 52,449 |
(Increase) decrease in lease liability | 183,061 | (51,592) |
(Increase) decrease in accounts receivable | 219,999 | (426,406) |
Accrued Interest | 33,953 | |
Changes in prepayments | 273,455 | 26,407 |
Other Assets | 203,779 | |
(Increase) decrease in inventory | (205,617) | (173,871) |
(Decrease) increase in accounts payable | (590,606) | 61,729 |
Other (Decrease) increase in accrued expenses | (204,039) | (7,254) |
Other (Decrease) increase in accrued expenses related party | 28,527 | |
Other (Decrease) increase in customer deposits | 399,227 | 66,476 |
Net Cash Provided by (Used In) Operating Activities | (641,092) | (538,065) |
Cash Flows from Investing Activities | ||
Investment in Heze Hongyuan | (76,203) | (805,751) |
Loan Receivables Net Change Shuya Consolidation | 116,000 | |
Cash Flows Used In Investing Activities | 39,797 | (805,751) |
Cash Flows from Financing Activities | ||
Payment on lines of credit | (222,232) | (103,754) |
Proceeds from notes payable and lines of credit | 150,000 | |
Proceeds from notes payable | 1,073,020 | 0 |
Payments on notes payable | (748,492) | 0 |
Stock issued for cash | 3,145,244 | 1,321,911 |
Cash Flows Provided By Financing Activities | 3,247,540 | 1,368,157 |
Foreign Currency Transaction | 63,313 | 4,562 |
Net (Decrease) Increase in Cash and Cash Equivalents | 2,709,557 | 28,903 |
Cash and Cash Equivalents at Beginning of Period | 149,272 | 1,192,316 |
Cash and Cash Equivalents at End of Period | 2,858,829 | 1,221,219 |
Supplemental Cashflow Information: | ||
Interest Paid | 837,391 | $ 132,470 |
Supplemental Non-Cash Disclosure | ||
Discount on new note | 184,200 | |
Universal convertible note issuance | 666,038 | |
Warrants issued for debt | $ 609,617 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1 – GENERAL These unaudited interim consolidated financial statements as of and for the three months ended 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, 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 three months ended March 31, 2023 are not necessarily indicative of results for the entire year ending December 31, 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. Corporate History 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.” Our internet website address is www.cetyinc.com www.heatrecoverysolutions.com The Company has four reportable segments: Clean Energy HRS (HRS), CETY Europe, and the legacy electronic manufacturing services (Electronic Assembly) division and CETY HK. Going Concern 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 equity of $ 6,001,109 2,377,048 18,350,395 Plan of Operation Our mission is to be a leader in the zero-emission revolution by providing eco-friendly energy solutions, clean energy fuels, and alternative electric power for small to mid-sized projects across North America, Europe, and Asia. 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 projects for both municipal and industrial customers, as well as Engineering, Procurement, and Construction (EPC) companies. Our principal businesses Heat Recovery Solutions Waste to Energy Solutions Engineering, Consulting and Project Management Solutions CETY HK Clean Energy Technologies (H.K.) Limited (“CETY HK”) consists of two business ventures in mainland China:(i) our natural gas (“NG”) trading operations sourcing and suppling NG to industries and municipalities. NG is principally used for heavy truck refueling stations and urban or industrial users. We purchase large quantities of NG from large wholesale NG depots at fixed prices which are prepaid for in advance at a discount to market. We sell the 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, primarily located in the southwestern part of 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 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. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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. Estimates 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. Cash and Cash Equivalents 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 Accounts Receivable 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 March 31, 2023, and December 31, 2022, we had a reserve for potentially un-collectable accounts receivable of $ 95,000 247,500 247,500 Seven (7) customers accounted for approximately 98 Lease asset As of March 31, 2023, and December 31, 2022 we had a lease asset that was purchased from General Electric with a value of $ 1,309,527 217,584 20,000 . See note 3 for additional information. Inventory 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 March 31, 2023, and December 31, 2022, we had a reserve for potentially obsolete inventory of $ 897,808 Property and Equipment 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: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Furniture and fixtures 3 7 Equipment 7 10 Leasehold Improvements 7 Long –Lived Assets Our management assesses the recoverability of its long-lived assets by determining whether the depreciation and amortization of 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. Revenue Recognition The Company recognizes revenue under ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” Performance Obligations Satisfied Over Time FASB ASC 606-10-25-27 through 25-29, 25-36 through 25-37, 55-5 through 55-10 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). Performance Obligations Satisfied at a Point in Time FASB ASC 606-10-25-30 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. The entity has a present right to payment for the asset b. The customer has legal title to the asset c. The entity has transferred physical possession of the asset d. The customer has the significant risks and rewards of ownership of the asset e. The customer has accepted the asset A principal obtains control over any one of the following (ASC 606-10-55-37A): 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. 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: ● 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 The following steps are applied to our legacy engineering and manufacturing division: ● 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 The following step is applied to our CETY HK business unit: ● CETY HK is primarily responsible for fulfilling the contract / promise to provide the specified good or service. 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 33,000 33,000 Also, from time to time we require upfront deposits from our customers based on the contract. As of March 31, 2023 and December 31, 2022, we had outstanding customer deposits of $ 284,112 80,475 Fair Value of Financial Instruments 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: ● 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 91.5 4.5 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 March 31, 2023 and December 31, 2022 reflect: SCHEDULE OF FAIR VALUE OF CONVERTIBLE NOTES DERIVATIVE LIABILITY Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability – March 31, 2023 $ – $ – $ 261,639 $ 261,639 Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability – December 31, 2022 $ – $ – $ 588,178 $ 588,178 Fair value of convertible notes derivative liability $ – $ – $ 588,178 $ 588,178 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 instruments. Foreign Currency Translation and Comprehensive Income (Loss) 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. Change from fair value or equity method to consolidation In July 2022, JHJ and other three shareholders agreed to form and make total capital contribution of RMB 20 2.81 20 100 0 29 49 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 0.55 10,750 5,000 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. Net Profit (Loss) per Common Share Basic profit / (loss) per share is computed on the basis of the weighted average number of common shares outstanding. At March 31, 2023, we had outstanding common shares of 38,495,453 37,255,674 23,807,336 2,149,991 617,000 Research and Development We had no Segment Disclosure FASB Codification Topic 280, Segment Reporting four 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. Selected Financial Data SCHEDULE OF SEGMENT REPORTING 2023 2022 for the three months ended March, 31 2023 2022 Net Sales Manufacturing and Engineering 0 32,280 Clean Energy HRS 5,194 441,193 CETY HK 2,886,065 267,966 CETY Europe 5,748 33,827 Total Sales 2,897,007 775,266 Segment income and reconciliation before tax Manufacturing and Engineering 0 23,986 Clean Energy HRS 90 400,487 CETY HK 155,441 60,733 CETY Europe 5,038 28,986 Total Segment income 160,569 514,193 Reconciling items General and Administrative expense 88,891 92,935 Salaries 218,237 191,217 Travel 71,662 27,734 Professional Fees 88,210 64,853 Facility lease and Maintenance 122,779 88,962 Consulting 167,683 25,803 Depreciation and Amortization 5,949 7,519 Change in derivative liability 326,539 16,014 Other Income 79,154 (9,335 ) Interest and Financing fees (837,391 ) (132,470 ) Net Loss before income tax (1,034,541 ) (110,622 ) Share-Based Compensation 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 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 March 31, 2023, and 2022 we had $ 0 Income Taxes 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, 2023 using a Federal Tax Rate of 21 Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition. 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 March 31, 2023, we had a net operating loss carry-forward of approximately $( 8,275,877 2,482,763 30 2,482,763 SCHEDULE OF DEFERRED TAX ASSET March 31, 2023 December 31, 2022 Deferred Tax Asset $ (2,482,763 ) (2,482,763 ) Valuation Allowance (2,482,763 ) (2,482,763 ) Deferred Tax Asset (Net) $ - $ - 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 $ 907,388 302,462,667 .001 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 10 0.12 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 Reclassification 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. Recently Issued Accounting Standards 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. Update 2021-01—Reference Rate Reform (Topic 848): 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 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, $ 549,225 204,556 |
ACCOUNTS AND NOTES RECEIVABLE
ACCOUNTS AND NOTES RECEIVABLE | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
ACCOUNTS AND NOTES RECEIVABLE | NOTE 3 – ACCOUNTS AND NOTES RECEIVABLE SCHEDULE OF ACCOUNTS AND NOTES RECEIVABLE March 31, 2023 December 31, 2022 Accounts Receivable $ 1,454,698 1,463,567 Accounts Receivable Related Party 4,883 0 Less reserve for uncollectable accounts (95,000 ) (95,000 ) Total $ 1,364,581 1,368,567 Our Accounts Receivable is pledged to Nations Interbanc, our line of credit. SCHEDULE OF LEASE RECEIVABLE ASSET March 31, 2023 December 31, 2022 Lease asset $ 217,584 $ 217,584 The Company is currently modifying the assets subject to lease to meet the provisions of the agreement, and as of 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. SCHEDULE OF DERECOGNITION OF UNDERLYING ASSETS OF FINANCING RECEIVABLE March 31, 2023 December 31, 2022 Long-term financing receivables $ 932,270 $ 932,270 Less Reserve for uncollectable accounts (247,500 ) (247,500 ) Long-term financing receivables - net $ 684,770 $ 684,770 On a 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 financing Receivable are pledged to Nations Interbanc, our line of credit. |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 4 – INVENTORY Inventories by major classification were comprised of the following at: SCHEDULE OF INVENTORIES March 31, 2023 December 31, 2022 Inventory $ 1,604,011 1,398,394 Less reserve for uncollectable accounts (897,808 ) (897,808 ) Total $ 706,203 500,586 Our Inventory is pledged to Nations Interbanc, our line of credit. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 5 – PROPERTY AND EQUIPMENT Property and equipment were comprised of the following at: SCHEDULE OF PROPERTY AND EQUIPMENT March 31, 2023 December 31, 2022 Property and Equipment $ 1,362,455 1,354,824 Leasehold Improvements 75,436 75,436 Accumulated Depreciation (1,418,424 ) (1,415,444 ) Net Fixed Assets $ 19,467 14,816 Our Depreciation Expense for the three months ended March 31, 2023 and 2022 was $ 5,949 7,519 Our Property Plant and Equipment is pledged to Nations Interbanc, our line of credit. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 6 – INTANGIBLE ASSETS Intangible assets were comprised of the following at: SCHEDULE OF INTANGIBLE ASSETS March 31, 2023 December 31, 2022 Goodwill $ 747,976 747,976 LWL Intangibles $ 1,483,179 1,468,709 License 354,322 354,322 Patents 190,789 190,789 Accumulated Amortization (90,064 ) (87,096 ) Net Fixed Assets $ 2,596,137 2,674,700 Our Amortization Expense for the three months ended March 31, 2023 and 2022 was $ 2,969 2,969 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. The following table presents the purchase price allocation: SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE ALLOCATION Consideration: Cash and cash equivalents $ 1,500,000 Total purchaser consideration $ 1,500,000 Assets acquired: Cash and cash equivalents $ 6,156 Prepayment $ 13,496 Other receivable $ 20,000 Trading Contracts $ 146,035 Shenzhen Gas Relationship $ 1,314,313 Total assets acquired $ 1,508,539 Liabilities assumed: Advance Receipts $ (8539 Taxes Payable $ 179 Net Assets Acquired: $ 1,500,000 If LWL reach USD 5 million in revenue or net profit of USD 1 million by December 31, 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 |
CONVERTIBLE NOTE RECEIVABLE
CONVERTIBLE NOTE RECEIVABLE | 3 Months Ended |
Mar. 31, 2023 | |
Convertible Note Receivable | |
CONVERTIBLE NOTE RECEIVABLE | NOTE 7 – CONVERTIBLE NOTE RECEIVABLE 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 5,000,000 0.78 12 15 90 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 8 – ACCRUED EXPENSES SCHEDULE OF ACCRUED EXPENSES March 31, 2023 December 31, 2022 Accrued Wages $ 194,375 $ - Accrued Taxes and other 44,975 119,030 Accrued Wages and Taxes $ 239,350 $ 119,030 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 9 – NOTES PAYABLE On November 11, 2013, we entered into an accounts receivable financing agreement with American Interbanc (now Nations Interbanc). Amounts outstanding under the agreement bear interest at the rate of 2.5 776,588 998,820 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 2.25 25,000 On September 11, 2015, our CE HRS subsidiary issued a promissory note in the initial principal amount $ 1,400,000 100,000 1,500,000 2.66 (a) $ 200,000 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 made on the 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 September 7, 2021, the company entered into a promissory note in the amount of $ 226,345 10 default interest rate of 22% per annum September 7, 2022 23,828 23,345 119,142 On September 28, 2021, the company entered into a promissory note in the amount of $ 142,720 10 default interest rate of 22% per annum September 28, 2022 15,003 14,720 On March 10, 2022, the company entered into a promissory note in the amount of $ 170,600 10 default interest rate of 22% per annum March 10, 2023 18,766 17,060 On June 30, 2022, the company entered into a promissory note in the amount of $ 252,928.44 10 default interest rate of 22% per annum June 30, 2023 27,822.13 25,293 139,111.30 On July 13, 2022, the company entered into a promissory note in the amount of $ 159,450 10 default interest rate of 22% per annum July 13, 2023 17,539.50 16,447.00 87,697.50 On October 25, 2022, the company entered into a promissory note in the amount of $ 114,850 10 default interest rate of 22% per annum October 25, 2023 12,633.50 11,850.00 78,151.50 On Dec 5,2022 the company entered into a promissory note in the amount of $ 191,526 10 default interest rate of 22% per annum December 5, 2023 21,067.80 19,760.00 147,474.60 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 10 default interest rate of 22% per annum March 6, 2024 13,500 14,465.50 135,005 Convertible notes On May 5, 2017, we entered into a nine-month convertible note payable for $ 78,000 12 61 15 116,600 14 st 159,894.95 On May 24, 2017, we entered into a nine-month convertible note payable for $ 32,000 12 58 15 95,685 14 th 163,979.95 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 $ 0.06 of 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 May 6, 2023 675,000.00 75,000.00 15 234,375 1.60 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 August 5, 2023 125,000.00 13,888.88 15 43,403 1.60 187,451.37 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 August 17, 2023 135,000.00 15,000.00 15 46,875 1.60 215,000 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 August 5, 2023 125,000.00 13,888.88 15 43,403 1.60 190,605.67 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 September 16, 2023 270,000.00 30,000.00 15 93,750 1.60 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 November 10, 2023 85,500 9,500 15 29,686 1.60 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 November 21, 2023 85,500 9,500 15 29,686 1.60 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 December 26, 2023 110,700 12,300 15 38,437 1.60 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 January 19, 2024 168,300 18,700 15 58,438 1.60 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 March 8, 2024 660,600 73,400 15 367,000 1.60 Total due to Convertible Notes SCHEDULE OF CONVERTIBLE NOTES March 31, 2023 December 31, 2022 Total convertible notes $ 3,043,363 3,156,528 Accrued Interest 326,067 262,331 Debt Discount (651,167 ) (326,804 ) Total $ 2,718,263 3,092,055 |
Derivative Liabilities
Derivative Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liabilities | Note 10 – Derivative Liabilities 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 of 91.5 4.5 1.00 SCHEDULE OF FAIR VALUE OF DERIVATIVE LIABILITY March 31, 2023 December 31, 2022 Derivative Liabilities on Convertible Loans: Outstanding Balance $ 261,639 $ 588,178 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 – COMMITMENTS AND CONTINGENCIES Operating Rental Leases 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 an 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 . SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS As of March 31, 2023 Year Lease Payment 2023 124,566 March 31, 2024 March 31, 2025 March 31, 2026 March 31, 2027 Total undiscounted cash flows Imputed Interest (3,630 ) Net Lease Liability $ 120,936 Our lease expense for the three months ended March 31, 2023 and 2022 was $ 122,779 88,962 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 0 ASB ASU 2016-02 “Leases (Topic 842)” – 5 Severance Benefits 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. |
CAPITAL STOCK TRANSACTIONS
CAPITAL STOCK TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
CAPITAL STOCK TRANSACTIONS | NOTE 12 – CAPITAL STOCK TRANSACTIONS 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 .001 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 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 10,000,000 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 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 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. Common Stock Transactions During the quarter ended March 31, 2022, we issued 78,897 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 375,875 .08 During April of 2022, we issued 3,072 153,324 34,500 On September 21, 2022, MGW I converted $ 1,548,904 322,688 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 234,375 On December 28, 2022 Mast Hill exercised their warrant in full on a cashless basis to purchase 100,446 On January 27,2023, we issued, 3,745 On August 17, 2022, we issued 46,875 150,000 1.60 120 33,114 On September 1, 2022, we issued 43,403 138,889 1.60 120 31,111 On December 27, 2021, we entered into a convertible note payable with Universal Scope Inc. for $ 650,000 2 2.40 277,604 On March 23, 2023 we sold 975,000 4.00 Common Stock Our Articles of Incorporation authorize us to issue 2,000,000,000 0.001 38,495,453 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. Preferred Stock Our Articles of Incorporation authorize us to issue 20,000,000 0.001 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 20,000 15,000 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 in financing in subscription for Series D Preferred Stock, or 7,500 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 divide at the rate of 17.5 In connection with the subscriptions for the Series D Preferred, we issued series F warrants to purchase an aggregate of 9,375 4.00 9,375 8.00 On August 21, 2014, a holder holding 5,000 13 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 In the first quarter of 2019, we signed agreements to issue 1000 .60 60,000 800 We also recorded a $ 60,000 On February 4, 2020, we issued 50,000 1.60 800 On July 23, 2020, we issued 75,000 1.60 1,200 On February 5, 2021, we issued 75,000 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 56,892 182,052 On February 9, 2021, we issued 50,000 .04 800 On March 12, 2021, we issued 92,340 3.20 1300 Warrants A summary of warrant activity for the periods is as follows: On May 6, 2022, we issued 234,375 warrant shares in connection with the issuance of the promissory note in the principal amount of $ 750,000 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 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 43,403 138,889 1.60 120 On August 17, 2022, we issued 46,875 150,000 1.60 120 33,114 On September 1, 2022, we issued 43,403 138,889 1.60 120 31,111 On September 16, 2022, we issued 93,750 300,000 1.60 120 On November 10, 2022, we issued 29,687 300,000 1.60 120 On November 21, 2022, we issued 29,687 95,000 1.60 120 On December 26, 2022, we issued 38,437 123,000 1.60 120 On January 19, 2023, we issued 58,438 187,000 1.60 120 On Feb 13, 2023, we issued 26,700 5.00 On March 8, 2023, we issued 367,000 734,000 1.60 120 SCHEDULE OF WARRANT ACTIVITY 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 Stock Options We currently have no outstanding stock options. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13 – RELATED PARTY TRANSACTIONS From August 2022 through October 2022, Hongzhuo Shuya (Shuya) a 49% owned subsidiary (also is our 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 4 years term to facilitate building of a natural gas recycling station to provide Shuya with CNG sales. Leishen owns 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 able to obtain large amounts of NG. As a result, Shuya also has a supplier relationship with Leishen. The 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 Leishen and the Company. During the quarter ended March 31, 2023, Shuya made $ 1.03 4,883 458,014 138,347 736,736 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 19,540 On November 2, 2016, we effected the repayment of the convertible note dated March 15, 2016 for an aggregate amount of $ 84,000 .20 10 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 10 February 13, 2020 0.12 532,383 939,500 20,000,000 50,000,000 34,644 On February 8, 2018, the Corporation entered a Convertible Promissory Note in the principal amount of $ 153,123 12 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) 0.12. 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 103,000 12 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 33,987 Subsequently on May 11th this note was amended and the maturity date was extended to October 8, 2023 625,000 On May 31, 2019, we entered into a subscription agreement pursuant to which the Company agreed to sell 4,200,000 1,999,200 .476 .001 In the fourth quarter of 2019 MGW Investment I Limited, advanced $ 167,975 80,000 th 87,975 On March 24, 2021, the Company transferred $ 500,000 On September 21, 2022, MGW I converted $ 1,548,904 12,907,534 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 6,180 |
WARRANTY LIABILITY
WARRANTY LIABILITY | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure Warranty Liability Abstract | |
WARRANTY LIABILITY | Note 14 - WARRANTY LIABILITY For the quarter ended March 31, 2023, and for the year ended December 31, 2022, there was no |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 3 Months Ended |
Mar. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | NOTE 15 – NON-CONTROLLING INTEREST On April 2, 2023, the Company formed CETY Capital LLC a wholly owned subsidiary of CETY. In addition, the company with established Vermont Renewable Gas LLC (“VRG”) C with our partner, Synergy Bioproducts Corporation (“SBC”) The purpose of the joint venture is the development of a pyrolysis plant established to convert wood feedstock into electricity and BioChar by using high temperature ablative fast pyrolysis reactor for which Clean Energy Technology, Inc. holds the license for. The VRG is located in Lyndon, Vermont. Based upon the terms of the members’ agreement, CETY Capital LLC owns a 49 51 In July 2022, JHJ and other three shareholders agreed to form and make total capital contribution of RMB 20 2.81 20 100 0 29 49 41 10 |
THE STATUTORY RESERVES
THE STATUTORY RESERVES | 3 Months Ended |
Mar. 31, 2023 | |
Statutory Reserves | |
THE STATUTORY RESERVES | NOTE 16 – THE STATUTORY RESERVES 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 50 Additionally, in accordance with the Company Laws of the PRC, a domestic enterprise is required to provide surplus reserve at least 10 50 As a result of these PRC laws and regulations that require annual appropriations of 10 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 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 – SUBSEQUENT EVENTS On April 3, 2023, Clean Energy Technologies, Inc. reached an agreement with Cybernaut Zfounder Ventures, LLC to pay off the outstanding convertible notes in amount equal to $ 324,000 200,000 On April 18, 2023, Mast Hill exercised the right to purchase 93,750 1.60 150,000 On January 19, 2023, we issued 58,438 187,000 1.60 120 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Estimates | Estimates 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents 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 |
Accounts Receivable | Accounts Receivable 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 March 31, 2023, and December 31, 2022, we had a reserve for potentially un-collectable accounts receivable of $ 95,000 247,500 247,500 Seven (7) customers accounted for approximately 98 |
Lease asset | Lease asset As of March 31, 2023, and December 31, 2022 we had a lease asset that was purchased from General Electric with a value of $ 1,309,527 217,584 20,000 . See note 3 for additional information. |
Inventory | Inventory 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 March 31, 2023, and December 31, 2022, we had a reserve for potentially obsolete inventory of $ 897,808 |
Property and Equipment | Property and Equipment 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: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Furniture and fixtures 3 7 Equipment 7 10 Leasehold Improvements 7 |
Long –Lived Assets | Long –Lived Assets Our management assesses the recoverability of its long-lived assets by determining whether the depreciation and amortization of 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. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue under ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” Performance Obligations Satisfied Over Time FASB ASC 606-10-25-27 through 25-29, 25-36 through 25-37, 55-5 through 55-10 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). Performance Obligations Satisfied at a Point in Time FASB ASC 606-10-25-30 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. The entity has a present right to payment for the asset b. The customer has legal title to the asset c. The entity has transferred physical possession of the asset d. The customer has the significant risks and rewards of ownership of the asset e. The customer has accepted the asset A principal obtains control over any one of the following (ASC 606-10-55-37A): 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. 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: ● 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 The following steps are applied to our legacy engineering and manufacturing division: ● 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 The following step is applied to our CETY HK business unit: ● CETY HK is primarily responsible for fulfilling the contract / promise to provide the specified good or service. 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 33,000 33,000 Also, from time to time we require upfront deposits from our customers based on the contract. As of March 31, 2023 and December 31, 2022, we had outstanding customer deposits of $ 284,112 80,475 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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: ● 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 91.5 4.5 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 March 31, 2023 and December 31, 2022 reflect: SCHEDULE OF FAIR VALUE OF CONVERTIBLE NOTES DERIVATIVE LIABILITY Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability – March 31, 2023 $ – $ – $ 261,639 $ 261,639 Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability – December 31, 2022 $ – $ – $ 588,178 $ 588,178 Fair value of convertible notes derivative liability $ – $ – $ 588,178 $ 588,178 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 instruments. |
Foreign Currency Translation and Comprehensive Income (Loss) | Foreign Currency Translation and Comprehensive Income (Loss) 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. |
Change from fair value or equity method to consolidation | Change from fair value or equity method to consolidation In July 2022, JHJ and other three shareholders agreed to form and make total capital contribution of RMB 20 2.81 20 100 0 29 49 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 0.55 10,750 5,000 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. |
Net Profit (Loss) per Common Share | Net Profit (Loss) per Common Share Basic profit / (loss) per share is computed on the basis of the weighted average number of common shares outstanding. At March 31, 2023, we had outstanding common shares of 38,495,453 37,255,674 23,807,336 2,149,991 617,000 |
Research and Development | Research and Development We had no |
Segment Disclosure | Segment Disclosure FASB Codification Topic 280, Segment Reporting four 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. Selected Financial Data SCHEDULE OF SEGMENT REPORTING 2023 2022 for the three months ended March, 31 2023 2022 Net Sales Manufacturing and Engineering 0 32,280 Clean Energy HRS 5,194 441,193 CETY HK 2,886,065 267,966 CETY Europe 5,748 33,827 Total Sales 2,897,007 775,266 Segment income and reconciliation before tax Manufacturing and Engineering 0 23,986 Clean Energy HRS 90 400,487 CETY HK 155,441 60,733 CETY Europe 5,038 28,986 Total Segment income 160,569 514,193 Reconciling items General and Administrative expense 88,891 92,935 Salaries 218,237 191,217 Travel 71,662 27,734 Professional Fees 88,210 64,853 Facility lease and Maintenance 122,779 88,962 Consulting 167,683 25,803 Depreciation and Amortization 5,949 7,519 Change in derivative liability 326,539 16,014 Other Income 79,154 (9,335 ) Interest and Financing fees (837,391 ) (132,470 ) Net Loss before income tax (1,034,541 ) (110,622 ) |
Share-Based Compensation | Share-Based Compensation 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 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 March 31, 2023, and 2022 we had $ 0 |
Income Taxes | Income Taxes 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, 2023 using a Federal Tax Rate of 21 Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition. 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 March 31, 2023, we had a net operating loss carry-forward of approximately $( 8,275,877 2,482,763 30 2,482,763 SCHEDULE OF DEFERRED TAX ASSET March 31, 2023 December 31, 2022 Deferred Tax Asset $ (2,482,763 ) (2,482,763 ) Valuation Allowance (2,482,763 ) (2,482,763 ) Deferred Tax Asset (Net) $ - $ - 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 $ 907,388 302,462,667 .001 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 10 0.12 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 |
Reclassification | Reclassification 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. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards 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. Update 2021-01—Reference Rate Reform (Topic 848): 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 | Deferred Stock Issuance Costs 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, $ 549,225 204,556 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES | SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Furniture and fixtures 3 7 Equipment 7 10 Leasehold Improvements 7 |
SCHEDULE OF FAIR VALUE OF CONVERTIBLE NOTES DERIVATIVE LIABILITY | The carrying amounts of the Company’s financial instruments as of March 31, 2023 and December 31, 2022 reflect: SCHEDULE OF FAIR VALUE OF CONVERTIBLE NOTES DERIVATIVE LIABILITY Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability – March 31, 2023 $ – $ – $ 261,639 $ 261,639 Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability – December 31, 2022 $ – $ – $ 588,178 $ 588,178 Fair value of convertible notes derivative liability $ – $ – $ 588,178 $ 588,178 |
SCHEDULE OF SEGMENT REPORTING | Selected Financial Data SCHEDULE OF SEGMENT REPORTING 2023 2022 for the three months ended March, 31 2023 2022 Net Sales Manufacturing and Engineering 0 32,280 Clean Energy HRS 5,194 441,193 CETY HK 2,886,065 267,966 CETY Europe 5,748 33,827 Total Sales 2,897,007 775,266 Segment income and reconciliation before tax Manufacturing and Engineering 0 23,986 Clean Energy HRS 90 400,487 CETY HK 155,441 60,733 CETY Europe 5,038 28,986 Total Segment income 160,569 514,193 Reconciling items General and Administrative expense 88,891 92,935 Salaries 218,237 191,217 Travel 71,662 27,734 Professional Fees 88,210 64,853 Facility lease and Maintenance 122,779 88,962 Consulting 167,683 25,803 Depreciation and Amortization 5,949 7,519 Change in derivative liability 326,539 16,014 Other Income 79,154 (9,335 ) Interest and Financing fees (837,391 ) (132,470 ) Net Loss before income tax (1,034,541 ) (110,622 ) |
SCHEDULE OF DEFERRED TAX ASSET | SCHEDULE OF DEFERRED TAX ASSET March 31, 2023 December 31, 2022 Deferred Tax Asset $ (2,482,763 ) (2,482,763 ) Valuation Allowance (2,482,763 ) (2,482,763 ) Deferred Tax Asset (Net) $ - $ - |
ACCOUNTS AND NOTES RECEIVABLE (
ACCOUNTS AND NOTES RECEIVABLE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS AND NOTES RECEIVABLE | SCHEDULE OF ACCOUNTS AND NOTES RECEIVABLE March 31, 2023 December 31, 2022 Accounts Receivable $ 1,454,698 1,463,567 Accounts Receivable Related Party 4,883 0 Less reserve for uncollectable accounts (95,000 ) (95,000 ) Total $ 1,364,581 1,368,567 |
SCHEDULE OF LEASE RECEIVABLE ASSET | Our Accounts Receivable is pledged to Nations Interbanc, our line of credit. SCHEDULE OF LEASE RECEIVABLE ASSET March 31, 2023 December 31, 2022 Lease asset $ 217,584 $ 217,584 |
SCHEDULE OF DERECOGNITION OF UNDERLYING ASSETS OF FINANCING RECEIVABLE | SCHEDULE OF DERECOGNITION OF UNDERLYING ASSETS OF FINANCING RECEIVABLE March 31, 2023 December 31, 2022 Long-term financing receivables $ 932,270 $ 932,270 Less Reserve for uncollectable accounts (247,500 ) (247,500 ) Long-term financing receivables - net $ 684,770 $ 684,770 |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories by major classification were comprised of the following at: SCHEDULE OF INVENTORIES March 31, 2023 December 31, 2022 Inventory $ 1,604,011 1,398,394 Less reserve for uncollectable accounts (897,808 ) (897,808 ) Total $ 706,203 500,586 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment were comprised of the following at: SCHEDULE OF PROPERTY AND EQUIPMENT March 31, 2023 December 31, 2022 Property and Equipment $ 1,362,455 1,354,824 Leasehold Improvements 75,436 75,436 Accumulated Depreciation (1,418,424 ) (1,415,444 ) Net Fixed Assets $ 19,467 14,816 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets were comprised of the following at: SCHEDULE OF INTANGIBLE ASSETS March 31, 2023 December 31, 2022 Goodwill $ 747,976 747,976 LWL Intangibles $ 1,483,179 1,468,709 License 354,322 354,322 Patents 190,789 190,789 Accumulated Amortization (90,064 ) (87,096 ) Net Fixed Assets $ 2,596,137 2,674,700 |
SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE ALLOCATION | The following table presents the purchase price allocation: SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE ALLOCATION Consideration: Cash and cash equivalents $ 1,500,000 Total purchaser consideration $ 1,500,000 Assets acquired: Cash and cash equivalents $ 6,156 Prepayment $ 13,496 Other receivable $ 20,000 Trading Contracts $ 146,035 Shenzhen Gas Relationship $ 1,314,313 Total assets acquired $ 1,508,539 Liabilities assumed: Advance Receipts $ (8539 Taxes Payable $ 179 Net Assets Acquired: $ 1,500,000 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED EXPENSES | SCHEDULE OF ACCRUED EXPENSES March 31, 2023 December 31, 2022 Accrued Wages $ 194,375 $ - Accrued Taxes and other 44,975 119,030 Accrued Wages and Taxes $ 239,350 $ 119,030 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF CONVERTIBLE NOTES | Total due to Convertible Notes SCHEDULE OF CONVERTIBLE NOTES March 31, 2023 December 31, 2022 Total convertible notes $ 3,043,363 3,156,528 Accrued Interest 326,067 262,331 Debt Discount (651,167 ) (326,804 ) Total $ 2,718,263 3,092,055 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
SCHEDULE OF FAIR VALUE OF DERIVATIVE LIABILITY | SCHEDULE OF FAIR VALUE OF DERIVATIVE LIABILITY March 31, 2023 December 31, 2022 Derivative Liabilities on Convertible Loans: Outstanding Balance $ 261,639 $ 588,178 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS | SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS As of March 31, 2023 Year Lease Payment 2023 124,566 March 31, 2024 March 31, 2025 March 31, 2026 March 31, 2027 Total undiscounted cash flows Imputed Interest (3,630 ) Net Lease Liability $ 120,936 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 |
CAPITAL STOCK TRANSACTIONS (Tab
CAPITAL STOCK TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
SCHEDULE OF WARRANT ACTIVITY | SCHEDULE OF WARRANT ACTIVITY 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 |
GENERAL (Details Narrative)
GENERAL (Details Narrative) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Stock holder equity, total | $ 6,001,109 | $ 1,878,196 | $ (507,830) | $ (1,721,712) |
Working capital deficit | 2,377,048 | |||
Retained earnings (Accumulated Deficit) | $ 18,350,395 | $ 17,276,536 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES (Details) | Mar. 31, 2023 |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 7 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 7 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 10 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 7 years |
SCHEDULE OF FAIR VALUE OF CONVE
SCHEDULE OF FAIR VALUE OF CONVERTIBLE NOTES DERIVATIVE LIABILITY (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Platform Operator, Crypto-Asset [Line Items] | ||
Fair value of convertible notes derivative liability | $ 261,639 | $ 588,178 |
Fair Value, Inputs, Level 1 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Fair value of convertible notes derivative liability | ||
Fair Value, Inputs, Level 2 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Fair value of convertible notes derivative liability | ||
Fair Value, Inputs, Level 3 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Fair value of convertible notes derivative liability | $ 261,639 | $ 588,178 |
SCHEDULE OF SEGMENT REPORTING (
SCHEDULE OF SEGMENT REPORTING (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Product Information [Line Items] | ||
Total Sales | $ 2,897,007 | $ 775,266 |
Total Segment income | 160,569 | 514,193 |
General and Administrative expense | 88,891 | 92,935 |
Salaries | 218,237 | 191,217 |
Travel | 71,662 | 27,734 |
Professional Fees | 88,210 | 64,853 |
Facility lease and Maintenance | 122,779 | 88,962 |
Consulting | 167,683 | 25,803 |
Depreciation and Amortization | 5,949 | 7,519 |
Change in derivative liability | 326,539 | 16,014 |
Other Income | 79,154 | (9,335) |
Interest and Financing fees | (837,391) | (132,470) |
Net Loss before income tax | (1,034,541) | (110,622) |
Manufacturing Amd Engineering [Member] | ||
Product Information [Line Items] | ||
Total Sales | 0 | 32,280 |
Total Segment income | 0 | 23,986 |
Clean Energy H R S [Member] | ||
Product Information [Line Items] | ||
Total Sales | 5,194 | 441,193 |
Total Segment income | 90 | 400,487 |
Clean Energy Technologies H K Limited [Member] | ||
Product Information [Line Items] | ||
Total Sales | 2,886,065 | 267,966 |
Total Segment income | 155,441 | 60,733 |
Cety Europe [Member] | ||
Product Information [Line Items] | ||
Total Sales | 5,748 | 33,827 |
Total Segment income | $ 5,038 | $ 28,986 |
SCHEDULE OF DEFERRED TAX ASSET
SCHEDULE OF DEFERRED TAX ASSET (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Deferred Tax Asset | $ (2,482,763) | $ (2,482,763) |
Valuation Allowance | (2,482,763) | (2,482,763) |
Deferred Tax Asset (Net) |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ / shares in Units, ¥ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Feb. 13, 2018 USD ($) $ / shares shares | Jul. 31, 2022 USD ($) | Jul. 31, 2022 CNY (¥) | Mar. 31, 2023 USD ($) Integer $ / shares shares | Mar. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 CNY (¥) | Aug. 31, 2022 USD ($) | May 06, 2022 USD ($) | Apr. 21, 2005 $ / shares | |
Product Information [Line Items] | ||||||||||
Cash FDIC insured amount | $ 250,000 | |||||||||
Allowance for doubt full accounts receivable | 95,000 | $ 95,000 | ||||||||
Allowance for long term financing receivables | 247,500 | 247,500 | ||||||||
Purchase of lease receivable asset | 1,309,527 | $ 1,309,527 | ||||||||
Obsolete inventory reserve | $ 897,808 | 897,808 | ||||||||
Final payment percentage | 10% | |||||||||
Deferred revenue | $ 33,000 | 33,000 | ||||||||
Customer deposits | 284,112 | 80,475 | ||||||||
Equity method investments | $ 0 | |||||||||
Net loss | $ (1,073,858) | $ (112,588) | ||||||||
Weighted average number of common shares outstanding | shares | 38,495,453 | |||||||||
Weighted average common shares and equivalents | shares | 37,255,674 | 23,807,336 | ||||||||
Stock issued during period shares conversion of units | shares | 2,149,991 | |||||||||
Number of share common stock warrants convertible | shares | 617,000 | |||||||||
Research and development expense | $ 0 | $ 0 | ||||||||
Number of reportable segments | Integer | 4 | |||||||||
Employee benefits and share based compensation | $ 0 | $ 0 | ||||||||
Income tax examination description | 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, 2023 using a Federal Tax Rate of 21% and an estimated state of California rate of 9% | |||||||||
Federal corporate income tax rate | 21% | |||||||||
Net operating loss carry-forward | $ 8,275,877 | |||||||||
Deferred tax assets, gross | 2,482,763 | 2,482,763 | ||||||||
Valuation allowance | $ 2,482,763 | $ 2,482,763 | ||||||||
Common stock, shares par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Debt principal amount | $ 750,000 | |||||||||
Deferred stock issuance costs, additional paid in capital | $ 549,225 | $ 204,556 | ||||||||
Domestic Tax Authority [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Federal corporate income tax rate | 30% | |||||||||
Sichuan Hongzuo Shuya Energy Limited [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Percentage of equity ownership | 20% | 20% | 49% | |||||||
JHJ [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Proceeds from capital contribution | 550,000 | ¥ 3,910 | ||||||||
Percentage of equity ownership | 100% | |||||||||
Net loss | 10,750 | |||||||||
Allocation of investment | 5,000 | |||||||||
Sichuan Shunengwei Energy Technology Limited [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Percentage of equity ownership | 29% | |||||||||
Other Three Shareholders [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Proceeds from capital contribution | $ 2,810,000 | ¥ 20,000 | ||||||||
Measurement Input, Price Volatility [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Derivative liability measurement input | 91.5 | |||||||||
Measurement Input, Risk Free Interest Rate [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Derivative liability measurement input | 4.5 | |||||||||
120 Months [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Lease due amount | $ 20,000 | |||||||||
Nations Interbanc [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Recognized value | $ 217,584 | $ 217,584 | ||||||||
MGW Investment I Limited [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Debt maturity date | Oct. 08, 2023 | |||||||||
MGW Investment I Limited [Member] | Stock Purchase Agreement [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Proceeds from issuance of common stock | $ 907,388 | |||||||||
Number of restricted shares issuance | shares | 302,462,667 | |||||||||
Common stock, shares par value | $ / shares | $ 0.001 | |||||||||
Corporation and Confections Ventures Limited [Member] | Convertible Note Purchase Agreement [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Debt principal amount | $ 939,500 | |||||||||
Debt interest rate | 10% | |||||||||
Debt conversion price per share | $ / shares | $ 0.12 | |||||||||
Debt maturity date | Dec. 31, 2015 | |||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Accounts receivable, rate | 98% |
SCHEDULE OF ACCOUNTS AND NOTES
SCHEDULE OF ACCOUNTS AND NOTES RECEIVABLE (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Accounts Receivable | $ 1,454,698 | $ 1,463,567 |
Less reserve for uncollectable accounts | (95,000) | (95,000) |
Total | 1,364,581 | 1,368,567 |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts Receivable Related Party | $ 4,883 | $ 0 |
SCHEDULE OF LEASE RECEIVABLE AS
SCHEDULE OF LEASE RECEIVABLE ASSET (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Nations Interbanc [Member] | ||
Lease asset | $ 217,584 | $ 217,584 |
SCHEDULE OF DERECOGNITION OF UN
SCHEDULE OF DERECOGNITION OF UNDERLYING ASSETS OF FINANCING RECEIVABLE (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Long-term financing receivables | $ 932,270 | $ 932,270 |
Less Reserve for uncollectable accounts | (247,500) | (247,500) |
Long-term financing receivables - net | $ 684,770 | $ 684,770 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory | $ 1,604,011 | $ 1,398,394 |
Less reserve for uncollectable accounts | (897,808) | (897,808) |
Total | $ 706,203 | $ 500,586 |
SCHEDULE OF PROPERTY AND EQUI_2
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Property and Equipment | $ 1,362,455 | $ 1,354,824 |
Leasehold Improvements | 75,436 | 75,436 |
Accumulated Depreciation | (1,418,424) | (1,415,444) |
Net Fixed Assets | $ 19,467 | $ 14,816 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 5,949 | $ 7,519 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 747,976 | $ 747,976 |
LWL Intangibles | 1,483,179 | 1,468,709 |
License | 354,322 | 354,322 |
Patents | 190,789 | 190,789 |
Accumulated Amortization | (90,064) | (87,096) |
Net Fixed Assets | $ 2,596,137 | $ 2,674,700 |
SCHEDULE OF BUSINESS ACQUISITIO
SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE ALLOCATION (Details) - LWL [Member] | Nov. 08, 2021 USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Cash and cash equivalents | $ 1,500,000 |
Total purchaser consideration | 1,500,000 |
Cash and cash equivalents | 6,156 |
Prepayment | 13,496 |
Other receivable | 20,000 |
Trading Contracts | 146,035 |
Shenzhen Gas Relationship | 1,314,313 |
Total assets acquired | 1,508,539 |
Advance Receipts | (8,539) |
Taxes Payable | 179 |
Net Assets Acquired: | $ 1,500,000 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Amortization expense | $ 2,969 | $ 2,969 |
LWL [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Condition of shares issuance description | If LWL reach USD 5 million in revenue or net profit of USD 1 million by December 31, 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 |
CONVERTIBLE NOTE RECEIVABLE (De
CONVERTIBLE NOTE RECEIVABLE (Details Narrative) | Jan. 10, 2022 USD ($) | May 06, 2022 USD ($) | Jan. 10, 2022 CNY (¥) |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Debt instrument face amount | $ 750,000 | ||
Heze Hongyuan Natural Gas Co Ltd [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Equity ownership percentage | 90% | 90% | |
Heze Hongyuan Natural Gas Co Ltd [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Equity interest percentage | 15% | 15% | |
Convertible Debt Securities [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Maturity date | January 10, 2025 | ||
Debt instrument face amount | $ 780,000 | ¥ 5,000,000 | |
Interest rate | 12% | 12% |
SCHEDULE OF ACCRUED EXPENSES (D
SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued Wages | $ 194,375 | |
Accrued Taxes and other | 44,975 | 119,030 |
Accrued Wages and Taxes | $ 239,350 | $ 119,030 |
SCHEDULE OF CONVERTIBLE NOTES (
SCHEDULE OF CONVERTIBLE NOTES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Total convertible notes | $ 3,043,363 | $ 3,156,528 |
Accrued Interest | 326,067 | 262,331 |
Debt Discount | (651,167) | (326,804) |
Total | $ 2,718,263 | $ 3,092,055 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Mar. 28, 2023 shares | Mar. 08, 2023 USD ($) $ / shares shares | Mar. 06, 2023 USD ($) | Feb. 10, 2023 USD ($) | Jan. 19, 2023 USD ($) $ / shares shares | Dec. 26, 2022 USD ($) $ / shares shares | Dec. 05, 2022 USD ($) | Nov. 21, 2022 USD ($) $ / shares shares | Nov. 10, 2022 USD ($) $ / shares shares | Oct. 25, 2022 USD ($) | Sep. 16, 2022 USD ($) $ / shares shares | Sep. 02, 2022 | Aug. 17, 2022 USD ($) $ / shares shares | Aug. 05, 2022 USD ($) $ / shares shares | Jul. 13, 2022 USD ($) | Jun. 30, 2022 USD ($) | May 06, 2022 USD ($) $ / shares shares | Mar. 10, 2022 USD ($) | Dec. 27, 2021 USD ($) $ / shares | Sep. 28, 2021 USD ($) | Sep. 07, 2021 USD ($) | Apr. 02, 2021 USD ($) | May 24, 2017 USD ($) d | May 05, 2017 USD ($) d | Sep. 11, 2015 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Apr. 18, 2023 $ / shares | Mar. 09, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 01, 2022 USD ($) $ / shares shares | Aug. 16, 2022 shares | Aug. 06, 2022 $ / shares shares | Nov. 06, 2017 USD ($) | Dec. 31, 2015 USD ($) | Nov. 11, 2013 | |
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt principal amount | $ 750,000 | |||||||||||||||||||||||||||||||||||
Total gain recognized | $ 2,556,916 | |||||||||||||||||||||||||||||||||||
Repayments of notes payable | 748,492 | $ 0 | ||||||||||||||||||||||||||||||||||
Professional fees | 88,210 | 64,853 | ||||||||||||||||||||||||||||||||||
Warrants to purchase | shares | 234,375 | |||||||||||||||||||||||||||||||||||
Promissory Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 10% | 10% | 10% | 10% | 10% | 10% | 10% | |||||||||||||||||||||||||||||
Debt principal amount | $ 734,000 | $ 187,000 | $ 123,000 | $ 95,000 | $ 300,000 | $ 300,000 | $ 150,000 | $ 138,889 | $ 138,889 | |||||||||||||||||||||||||||
Notes paidoff | $ 135,005 | $ 258,521 | $ 191,526 | $ 114,850 | $ 159,450 | $ 252,928.44 | $ 226,345 | $ 119,142 | ||||||||||||||||||||||||||||
Debt instrument, debt default, description of notice of default | default interest rate of 22% per annum | default interest rate of 22% per annum | default interest rate of 22% per annum | default interest rate of 22% per annum | default interest rate of 22% per annum | default interest rate of 22% per annum | default interest rate of 22% per annum | |||||||||||||||||||||||||||||
Debt maturity date | Mar. 06, 2024 | Feb. 10, 2024 | Dec. 05, 2023 | Oct. 25, 2023 | Jul. 13, 2023 | Jun. 30, 2023 | Sep. 07, 2022 | |||||||||||||||||||||||||||||
Repayments of notes payable | $ 13,500 | $ 28,437.30 | $ 21,067.80 | $ 12,633.50 | $ 17,539.50 | $ 27,822.13 | $ 23,828 | |||||||||||||||||||||||||||||
Professional fees | $ 14,465.50 | $ 27,698.87 | $ 19,760 | $ 11,850 | $ 16,447 | $ 25,293 | $ 23,345 | |||||||||||||||||||||||||||||
Warrants to purchase | shares | 367,000 | 58,438 | 38,437 | 29,687 | 29,687 | 46,875 | 43,403 | 93,750 | 43,403 | |||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | |||||||||||||||||||||||||||
One Promissory Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 10% | |||||||||||||||||||||||||||||||||||
Notes paidoff | $ 142,720 | |||||||||||||||||||||||||||||||||||
Debt instrument, debt default, description of notice of default | default interest rate of 22% per annum | |||||||||||||||||||||||||||||||||||
Debt maturity date | Sep. 28, 2022 | |||||||||||||||||||||||||||||||||||
Repayments of notes payable | $ 15,003 | |||||||||||||||||||||||||||||||||||
Professional fees | $ 14,720 | |||||||||||||||||||||||||||||||||||
Two Promissory Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 10% | |||||||||||||||||||||||||||||||||||
Notes paidoff | $ 170,600 | |||||||||||||||||||||||||||||||||||
Debt instrument, debt default, description of notice of default | default interest rate of 22% per annum | |||||||||||||||||||||||||||||||||||
Debt maturity date | Mar. 10, 2023 | |||||||||||||||||||||||||||||||||||
Repayments of notes payable | $ 18,766 | |||||||||||||||||||||||||||||||||||
Professional fees | $ 17,060 | |||||||||||||||||||||||||||||||||||
Promissory Note One [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Notes paidoff | $ 139,111.30 | |||||||||||||||||||||||||||||||||||
Promissory Note Two [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Notes paidoff | 87,697.50 | |||||||||||||||||||||||||||||||||||
Promissory Note Three [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Notes paidoff | 78,151.50 | |||||||||||||||||||||||||||||||||||
Promissory Note Four [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Notes paidoff | 147,474.60 | |||||||||||||||||||||||||||||||||||
Promissory Note Five [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Notes paidoff | 232,669 | |||||||||||||||||||||||||||||||||||
Promissory Note Six [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Notes paidoff | 135,005 | |||||||||||||||||||||||||||||||||||
Nine-Month Convertible Note Payable [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 12% | |||||||||||||||||||||||||||||||||||
Convertible note payable | $ 78,000 | |||||||||||||||||||||||||||||||||||
Conversion rate | 61% | |||||||||||||||||||||||||||||||||||
Debt trading days | d | 15 | |||||||||||||||||||||||||||||||||||
Nine Month Convertible Note Payable Two [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 12% | |||||||||||||||||||||||||||||||||||
Convertible note payable | $ 32,000 | |||||||||||||||||||||||||||||||||||
Conversion rate | 58% | |||||||||||||||||||||||||||||||||||
Debt trading days | d | 15 | |||||||||||||||||||||||||||||||||||
Convertible Note Payable One [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Notes paidoff | $ 187,451.37 | |||||||||||||||||||||||||||||||||||
Convertible Note Payable Two [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Notes paidoff | 215,000 | |||||||||||||||||||||||||||||||||||
Convertible Note Payable Three [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Notes paidoff | $ 190,605.67 | |||||||||||||||||||||||||||||||||||
Heat Recovery Solutions [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 2.66% | |||||||||||||||||||||||||||||||||||
Short-term note payable | $ 200,000 | |||||||||||||||||||||||||||||||||||
Debt principal amount | $ 1,400,000 | |||||||||||||||||||||||||||||||||||
Pension liability | 100,000 | |||||||||||||||||||||||||||||||||||
Total liability in connection with acquisition. | $ 1,500,000 | |||||||||||||||||||||||||||||||||||
Debt payment description | (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 | |||||||||||||||||||||||||||||||||||
Cybernaut Zfounder Ventures [Member] | Nine-Month Convertible Note Payable One [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 14% | |||||||||||||||||||||||||||||||||||
Annual principal payment | $ 116,600 | |||||||||||||||||||||||||||||||||||
Cybernaut Zfounder Ventures [Member] | Nine-Month Convertible Note Payable One [Member] | May Five Two Thousand Seventeen [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Annual principal payment | 159,894.95 | |||||||||||||||||||||||||||||||||||
Cybernaut Zfounder Ventures [Member] | Nine Month Convertible Note Payable Two [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 14% | |||||||||||||||||||||||||||||||||||
Annual principal payment | 163,979.95 | $ 95,685 | ||||||||||||||||||||||||||||||||||
Universal Scope Inc [Member] | Convertible Note Payable [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 2% | |||||||||||||||||||||||||||||||||||
Debt maturity date | Jun. 21, 2022 | |||||||||||||||||||||||||||||||||||
Convertible note payable | $ 650,000 | |||||||||||||||||||||||||||||||||||
Debt instrument convertible conversion price 1 | $ / shares | $ 0.06 | |||||||||||||||||||||||||||||||||||
Universal Scope Inc [Member] | Convertible Note Payable [Member] | Common Stock [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt instrument convertible conversion price 1 | $ / shares | $ 2.40 | |||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 277,604 | |||||||||||||||||||||||||||||||||||
Master HillL .P [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 15% | |||||||||||||||||||||||||||||||||||
Debt maturity date | Jan. 19, 2024 | |||||||||||||||||||||||||||||||||||
Debt unamortized debt discount | $ 18,700 | |||||||||||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 1.60 | |||||||||||||||||||||||||||||||||||
Debt converted in stock, amount | $ 187,000 | |||||||||||||||||||||||||||||||||||
Debt conversion, original debt, amount | $ 168,300 | |||||||||||||||||||||||||||||||||||
Number of warrant to purchase common stock | shares | 58,438 | |||||||||||||||||||||||||||||||||||
Accounts Receivable Financing Agreement [Member] | American Interbanc [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 2.50% | |||||||||||||||||||||||||||||||||||
Short-term note payable | $ 776,588 | $ 998,820 | ||||||||||||||||||||||||||||||||||
Financing Agreement [Member] | DHN Capital LLC [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Accrued fees | $ 275,000 | |||||||||||||||||||||||||||||||||||
Accrual rate | 2.25% | |||||||||||||||||||||||||||||||||||
Financing Agreement [Member] | DHN Capital LLC [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Minimum monthly payment | $ 25,000 | |||||||||||||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Master HillL .P [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 1.60 | |||||||||||||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Master HillL .P [Member] | Convertible Note Payable [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 15% | 15% | 15% | 15% | 15% | 15% | ||||||||||||||||||||||||||||||
Debt principal amount | $ 734,000 | $ 123,000 | $ 95,000 | $ 95,000 | $ 300,000 | $ 750,000 | ||||||||||||||||||||||||||||||
Debt maturity date | Mar. 08, 2024 | Dec. 26, 2023 | Nov. 21, 2023 | Nov. 10, 2023 | Sep. 16, 2023 | May 06, 2023 | ||||||||||||||||||||||||||||||
Purchase price | $ 660,600 | $ 110,700 | $ 85,500 | $ 85,500 | $ 270,000 | $ 675,000 | ||||||||||||||||||||||||||||||
Debt unamortized debt discount | $ 73,400 | $ 12,300 | $ 9,500 | $ 9,500 | $ 30,000 | $ 75,000 | ||||||||||||||||||||||||||||||
Warrants to purchase | shares | 367,000 | 38,437 | 29,686 | 29,686 | 93,750 | 234,375 | ||||||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | ||||||||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Jefferson Street Capital LLC [Member] | Convertible Note Payable [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 15% | |||||||||||||||||||||||||||||||||||
Debt principal amount | $ 138,888 | |||||||||||||||||||||||||||||||||||
Debt maturity date | Aug. 05, 2023 | |||||||||||||||||||||||||||||||||||
Purchase price | $ 125,000 | |||||||||||||||||||||||||||||||||||
Debt unamortized debt discount | $ 13,888.88 | |||||||||||||||||||||||||||||||||||
Warrants to purchase | shares | 43,403 | |||||||||||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 1.60 | |||||||||||||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Firstfire Global Opportunities Fund LLC [Member] | Convertible Note Payable [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 15% | |||||||||||||||||||||||||||||||||||
Debt principal amount | $ 150,000 | |||||||||||||||||||||||||||||||||||
Debt maturity date | Aug. 17, 2023 | |||||||||||||||||||||||||||||||||||
Purchase price | $ 135,000 | |||||||||||||||||||||||||||||||||||
Debt unamortized debt discount | $ 15,000 | |||||||||||||||||||||||||||||||||||
Warrants to purchase | shares | 46,875 | |||||||||||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 1.60 | |||||||||||||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Pacific Pier Capital LLC [Member] | Convertible Note Payable [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 15% | |||||||||||||||||||||||||||||||||||
Debt principal amount | $ 138,888 | |||||||||||||||||||||||||||||||||||
Debt maturity date | Aug. 05, 2023 | |||||||||||||||||||||||||||||||||||
Purchase price | 125,000 | |||||||||||||||||||||||||||||||||||
Debt unamortized debt discount | $ 13,888.88 | |||||||||||||||||||||||||||||||||||
Warrants to purchase | shares | 43,403 | |||||||||||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 1.60 |
SCHEDULE OF FAIR VALUE OF DERIV
SCHEDULE OF FAIR VALUE OF DERIVATIVE LIABILITY (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Outstanding Balance | $ 261,639 | $ 588,178 |
Derivative Liabilities (Details
Derivative Liabilities (Details Narrative) | Mar. 31, 2023 |
Measurement Input, Price Volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 91.5 |
Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 4.5 |
Measurement Input, Exercise Price [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 1 |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) | Mar. 31, 2023 USD ($) |
2023 | $ 124,566 |
Imputed Interest | (3,630) |
Present value of lease liabilities | 120,936 |
Sichuan Hongzuo Shuya Energy Limited [Member] | |
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 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 1 Months Ended | 3 Months Ended | ||||
Aug. 05, 2022 | Jan. 02, 2019 | Oct. 31, 2018 | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | May 01, 2017 ft² | |
Lessee operating lease description | 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. | |||||
Operating lease expense | $ 122,779 | $ 88,962 | ||||
Accounting Standards Update 2016-02 [Member] | ||||||
Average borrowing rate percentage | 500% | |||||
Sichuan Hongzuo Shuya Energy Limited [Member] | ||||||
Operating lease expense | $ 86,774 | $ 0 | ||||
Sublease Agreement [Member] | ||||||
Lessee operating lease description | 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 | |||||
Industrial Property [Member] | ||||||
Area of Land | ft² | 18,200 |
SCHEDULE OF WARRANT ACTIVITY (D
SCHEDULE OF WARRANT ACTIVITY (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Equity [Abstract] | |
Warrants beginning balance | 325,243 |
Warrants weighted average exercise price beginning balance | $ / shares | $ 1.60 |
Warrants exercisable - common share equivalents beginning balance | 325,243 |
Warrants weighted average exercise price beginning balance | $ / shares | $ 1.60 |
Warrants - common Share equivalents, Issued | 425,438 |
Warrants weighted average exercise price additions | $ / shares | $ 1.60 |
Warrants exercisable - common share equivalents, Additions | 425,438 |
Warrants weighted average exercise price additions | $ / shares | $ 1.60 |
Warrants - common Share equivalents, Issued | 26,701 |
Warrants weighted average exercise price additions | $ / shares | $ 5 |
Warrants exercisable - common share equivalents, additions | 26,701 |
Warrants weighted average exercise price additions | $ / shares | $ 5 |
Warrants - Common Share Equivalents, Exercised | (90,278) |
Warrants weighted average exercise price exercised | $ / shares | $ 1.60 |
Warrants exercisable - common share equivalents, exercised | (90,278) |
Warrants weighted average exercise price exercised | $ / shares | $ 1.60 |
Warrants ending balance | 687,104 |
Warrants weighted average exercise price ending balance | $ / shares | $ 3.73 |
Warrants exercisable - common share equivalents, ending balance | 687,104 |
CAPITAL STOCK TRANSACTIONS (Det
CAPITAL STOCK TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Mar. 28, 2023 | Mar. 01, 2023 | Dec. 28, 2022 | Sep. 21, 2022 | May 06, 2022 | Feb. 21, 2022 | Mar. 12, 2021 | Feb. 09, 2021 | Feb. 05, 2021 | Jul. 23, 2020 | Feb. 04, 2020 | Aug. 21, 2014 | Aug. 07, 2013 | Mar. 31, 2023 | Apr. 30, 2022 | Sep. 30, 2015 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2019 | Jun. 30, 2019 | Mar. 23, 2023 | Mar. 08, 2023 | Mar. 06, 2023 | Feb. 13, 2023 | Feb. 10, 2023 | Jan. 27, 2023 | Jan. 19, 2023 | Dec. 31, 2022 | Dec. 26, 2022 | Dec. 05, 2022 | Nov. 21, 2022 | Nov. 10, 2022 | Oct. 25, 2022 | Sep. 16, 2022 | Sep. 01, 2022 | Aug. 17, 2022 | Aug. 16, 2022 | Aug. 06, 2022 | Jul. 13, 2022 | Jun. 30, 2022 | Dec. 27, 2021 | Sep. 07, 2021 | Jun. 10, 2019 | Aug. 28, 2018 | Jun. 30, 2017 | May 25, 2006 | Apr. 21, 2005 | |
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Common stock, shares par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||||||||||||||||||||||||
Legal fees | $ 34,500 | $ 45,498 | |||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | 375,875 | ||||||||||||||||||||||||||||||||||||||||||||||
Shares issued price per share | $ 0.08 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | $ (4) | ||||||||||||||||||||||||||||||||||||||||||||||
Shares issued | 3,745 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of warrant issued | 234,375 | ||||||||||||||||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 750,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Conversion of stock shares | 277,604 | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock, shares outstanding | 38,495,453 | 38,495,453 | 38,495,453 | 37,174,879 | |||||||||||||||||||||||||||||||||||||||||||
Number of stock issued shares, value | $ 1,202,800 | ||||||||||||||||||||||||||||||||||||||||||||||
IPO [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued price per share | $ 4 | ||||||||||||||||||||||||||||||||||||||||||||||
Promissory Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Number of warrant issued | 367,000 | 58,438 | 38,437 | 29,687 | 29,687 | 43,403 | 46,875 | 93,750 | 43,403 | ||||||||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 138,889 | $ 734,000 | $ 187,000 | $ 123,000 | $ 95,000 | $ 300,000 | $ 300,000 | $ 138,889 | $ 150,000 | ||||||||||||||||||||||||||||||||||||||
Warrant exercise price | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | ||||||||||||||||||||||||||||||||||||||
Percentage of exercise price of warrant | 12,000% | 120% | 120% | 120% | 120% | 120% | 120% | 120% | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 10% | 10% | 10% | 10% | 10% | 10% | 10% | ||||||||||||||||||||||||||||||||||||||||
MGW Investment I Limited [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | $ 1,548,904 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | 322,688 | ||||||||||||||||||||||||||||||||||||||||||||||
Mast Hill [Member] | Securities Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | 100,446 | 234,375 | |||||||||||||||||||||||||||||||||||||||||||||
First Fire [Member] | Securities Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | 33,114 | 33,114 | |||||||||||||||||||||||||||||||||||||||||||||
Pacific Pier [Member] | Securities Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | 31,111 | 31,111 | |||||||||||||||||||||||||||||||||||||||||||||
Universal Scope Inc [Member] | Convertible Note Payable [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Convertible note payable | $ 650,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 2% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion price per share | $ 0.06 | ||||||||||||||||||||||||||||||||||||||||||||||
RF Lafferty Co And Phillip US [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued | 975,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Mast Hill Fund [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued price per share | $ 1.60 | ||||||||||||||||||||||||||||||||||||||||||||||
Percentage of exercise price of warrant | 120% | ||||||||||||||||||||||||||||||||||||||||||||||
J H Darbie Co [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Number of warrant issued | 26,700 | ||||||||||||||||||||||||||||||||||||||||||||||
Warrant exercise price | $ 5 | ||||||||||||||||||||||||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Number of stock issued shares | 3,072 | 78,897 | |||||||||||||||||||||||||||||||||||||||||||||
Number of stock issued value | $ 153,324 | $ 134,755 | |||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | 50,000 | 375,875 | |||||||||||||||||||||||||||||||||||||||||||||
Shares issued price per share | $ 1.60 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | $ 64 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | 64,225 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of stock issued shares, value | $ 376 | ||||||||||||||||||||||||||||||||||||||||||||||
Common Stock [Member] | Universal Scope Inc [Member] | Convertible Note Payable [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion price per share | $ 2.40 | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares par value | $ 0.001 | $ 0.001 | |||||||||||||||||||||||||||||||||||||||||||||
Series F Warrants [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Number of warrant issued | 9,375 | 9,375 | |||||||||||||||||||||||||||||||||||||||||||||
Warrant exercise price | $ 4 | $ 4 | |||||||||||||||||||||||||||||||||||||||||||||
Series G Warrants [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Number of warrant issued | 9,375 | 9,375 | |||||||||||||||||||||||||||||||||||||||||||||
Warrant exercise price | $ 8 | $ 8 | |||||||||||||||||||||||||||||||||||||||||||||
Series A Convertible Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 440 | 440 | |||||||||||||||||||||||||||||||||||||||||||||
Series B Convertible Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 20,000 | 20,000 | |||||||||||||||||||||||||||||||||||||||||||||
Series C Convertible Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 15,000 | 15,000 | |||||||||||||||||||||||||||||||||||||||||||||
Series D Convertible Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | 800 | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend description | 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 | The Series D Preferred holders were initially entitled to be paid a special monthly 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 is 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 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 (1) year holding period, by sending the Company a notice to convert. The conversion rate is equal to the greater of $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 | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, dividend percentage | 13% | 17.50% | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock shares outstanding | 5,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Series D Convertible Preferred Stock [Member] | Common Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | 56,892 | 75,000 | 75,000 | 1,000 | |||||||||||||||||||||||||||||||||||||||||||
Shares issued price per share | $ 0.08 | $ 1.60 | $ 0.60 | ||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | $ 182,052 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | 1,200 | 1,200 | 800 | ||||||||||||||||||||||||||||||||||||||||||||
Number of stock issued shares, value | $ 60,000 | $ 60,000 | |||||||||||||||||||||||||||||||||||||||||||||
Series D Convertible Preferred Stock One [Member] | Common Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | 50,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Shares issued price per share | $ 0.04 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | 800 | ||||||||||||||||||||||||||||||||||||||||||||||
Series D Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | 92,340 | ||||||||||||||||||||||||||||||||||||||||||||||
Shares issued price per share | $ 3.20 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of shares conversion of convertible notes | 1,300 | ||||||||||||||||||||||||||||||||||||||||||||||
Board of Directors and Shareholders [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock, shares authorized | 2,000,000,000 | 800,000,000 | 400,000,000 | 200,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Board of Directors and Shareholders [Member] | Series C Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 15,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Board of Directors [Member] | Series D Convertible Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock shares designated description | 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 $750,000 in financing in subscription for Series D Preferred Stock, or 7,500 shares |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 28, 2023 | Sep. 21, 2022 | Jun. 24, 2021 | May 31, 2019 | Feb. 13, 2018 | Feb. 08, 2018 | Nov. 02, 2016 | Mar. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2022 | Dec. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2019 | Aug. 05, 2022 | Mar. 24, 2021 | Jan. 13, 2018 | Apr. 21, 2005 | |
Related Party Transaction [Line Items] | |||||||||||||||||
Advance to supplier related party | $ 458,014 | ||||||||||||||||
Due from to Related Party | 736,736 | ||||||||||||||||
Advance Rent | $ 19,540 | ||||||||||||||||
Debt instrument, principal amount | $ 3,043,363 | $ 3,156,528 | $ 3,156,528 | ||||||||||||||
Conversion of stock shares | 277,604 | ||||||||||||||||
Common stock, shares par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||
Chief Executive Officer [Member] | Kambiz Mahdi [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Payments to Acquire Productive Assets | $ 6,180 | ||||||||||||||||
JSJ Investments Inc [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Debt interest rate | 12% | ||||||||||||||||
Debt instrument, principal amount | $ 103,000 | ||||||||||||||||
MGW Investment I Limited [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Debt instrument, maturity date | Oct. 08, 2023 | ||||||||||||||||
Debt converted in stock, amount | $ 1,548,904 | ||||||||||||||||
Debt instrument, conversion feature | on May 11th 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 of the outstanding balance of this note into 625,000 shares of company’s common stock | ||||||||||||||||
Debt converted in stock, shares | 12,907,534 | 625,000 | |||||||||||||||
Outstanding balance advance amount | $ 80,000 | $ 167,975 | $ 87,975 | ||||||||||||||
Convertible Note Purchase Agreement [Member] | Corporation and Confections Ventures Limited [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Debt conversion price per share | $ 0.12 | ||||||||||||||||
Debt interest rate | 10% | ||||||||||||||||
Debt instrument, maturity date | Dec. 31, 2015 | ||||||||||||||||
Subscription Agreement [Member] | MGW Investment I Limited [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of shares sold | 4,200,000 | ||||||||||||||||
Number of shares sold, value | $ 1,999,200 | ||||||||||||||||
Sale of stock price per share | $ 0.476 | ||||||||||||||||
Common stock, shares par value | $ 0.001 | ||||||||||||||||
Convertible Notes [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Repayments of convertible debt | $ 84,000 | ||||||||||||||||
Debt conversion price per share | $ 0.20 | ||||||||||||||||
Debt interest rate | 10% | ||||||||||||||||
CVL Note [Member] | Common Stock [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Conversion of stock shares | 34,644 | ||||||||||||||||
CVL Note [Member] | Convertible Note Purchase Agreement [Member] | Corporation and Confections Ventures Limited [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Debt conversion price per share | $ 0.12 | ||||||||||||||||
Debt interest rate | 10% | ||||||||||||||||
Debt instrument, principal amount | $ 939,500 | ||||||||||||||||
Debt instrument, maturity date | Feb. 13, 2020 | ||||||||||||||||
Debt instrument, beneficial conversion feature | $ 532,383 | ||||||||||||||||
CVL Note [Member] | Convertible Note Purchase Agreement [Member] | Mgw Investments [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Debt converted in stock, amount | $ 939,500 | ||||||||||||||||
Excess authorized shares | 20,000,000 | ||||||||||||||||
CVL Note [Member] | Convertible Note Purchase Agreement [Member] | Mgw Investments [Member] | Maximum [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Excess authorized shares | 50,000,000 | ||||||||||||||||
MGWI Note [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Debt interest rate | 12% | ||||||||||||||||
Debt instrument, principal amount | $ 153,123 | ||||||||||||||||
Debt instrument, conversion feature | 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) 0.12. 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 | 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 | |||||||||||||||
MGWI Note [Member] | Common Stock [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Conversion of stock shares | 33,987 | ||||||||||||||||
Related Party [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Accounts receivables net current | $ 4,883 | $ 0 | $ 0 | ||||||||||||||
Advance to supplier related party | 458,014 | ||||||||||||||||
Accounts payable related party | 138,347 | ||||||||||||||||
Due from to Related Party | 736,736 | ||||||||||||||||
Related Party [Member] | MGW Investment I Limited [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Due from to Related Party | $ 500,000 | ||||||||||||||||
Sichuan Leishen Hongzhuo Enegry Development [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction, Amounts of Transaction | $ 740,000 | ||||||||||||||||
Related Party Transaction, Description of Transaction | 4 years term to facilitate building of a natural gas recycling station to provide Shuya with CNG sales. Leishen owns 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 | ||||||||||||||||
Advance Rent | $ 76,100 | ||||||||||||||||
Leishen [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party transaction | $ 1,030,000 |
WARRANTY LIABILITY (Details Nar
WARRANTY LIABILITY (Details Narrative) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Disclosure Warranty Liability Abstract | ||
Warrant liability | $ 0 | $ 0 |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details Narrative) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2022 USD ($) | Jul. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Apr. 02, 2023 | Mar. 31, 2023 | Aug. 31, 2022 USD ($) | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Equity method investments | $ 0 | ||||||
Sichuan Hongzuo Shuya Energy Limited [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Percentage of equity ownership | 20% | 20% | 49% | ||||
JHJ [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Proceeds from capital contribution | $ 550,000 | ¥ 3,910 | |||||
Percentage of equity ownership | 100% | ||||||
Sichuan Shunengwei Energy Technology Limited [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Percentage of equity ownership | 29% | ||||||
Other Three Shareholders [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Proceeds from capital contribution | $ 2,810,000 | ¥ 20,000 | |||||
CETY Capital LLC [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Interest ownership percentage | 49% | ||||||
AG [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Interest ownership percentage | 51% | ||||||
Sichuan Shunengwei Energy Technology Limited [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Interest ownership percentage | 41% | ||||||
Shareholder [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Interest ownership percentage | 10% |
THE STATUTORY RESERVES (Details
THE STATUTORY RESERVES (Details Narrative) | 3 Months Ended |
Mar. 31, 2023 | |
Statutory Reserves | |
Minimum annual after tax profit | 10% |
Surplus reserve percentage | 50% |
Minimum reserve surplus percentage | 10% |
After tax profit percentage | 50% |
After tax income percentage | 10% |
Percentage of total sales | 15% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Apr. 18, 2023 | Apr. 03, 2023 | Mar. 08, 2023 | Jan. 19, 2023 | Dec. 26, 2022 | Nov. 21, 2022 | Nov. 10, 2022 | Sep. 16, 2022 | Sep. 01, 2022 | Aug. 17, 2022 | Aug. 16, 2022 | Aug. 06, 2022 | May 06, 2022 |
Subsequent Event [Line Items] | |||||||||||||
Number of warrant issued | 234,375 | ||||||||||||
Promissory note principal amount | $ 750,000 | ||||||||||||
Promissory Note [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of warrant issued | 367,000 | 58,438 | 38,437 | 29,687 | 29,687 | 43,403 | 46,875 | 93,750 | 43,403 | ||||
Warrant exercise price | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.60 | ||||
Promissory note principal amount | $ 734,000 | $ 187,000 | $ 123,000 | $ 95,000 | $ 300,000 | $ 300,000 | $ 138,889 | $ 150,000 | $ 138,889 | ||||
Percentage of exercise price of warrant | 12,000% | 120% | 120% | 120% | 120% | 120% | 120% | 120% | |||||
Master HillL .P [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Warrant exercise price | $ 1.60 | ||||||||||||
Master HillL .P [Member] | Securities Purchase Agreement [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Warrant exercise price | $ 1.60 | ||||||||||||
Subsequent Event [Member] | Cybernaut Zfounder Ventures [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Annual Principal Payment | $ 324,000 | ||||||||||||
Settlement amount | $ 200,000 | ||||||||||||
Subsequent Event [Member] | Mast Hill [Member] | Securities Purchase Agreement [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of warrant issued | 93,750 | ||||||||||||
Promissory note principal amount | $ 150,000 |