Clean Energy Technologies, Inc. (CETY) Reports 2015 Results and Provides 1st Quarter 2016 Guidance
Clean Energy Technologies, Inc., a cleantech company offering heat recovery solutions,recently provided 2015 financial results and issued 1st quarter 2016 revenue guidance.
On September 11, 2015 Clean Energy HRS LLC (“CE HRS”), a wholly owned subsidiary of CETY, entered into an Asset Purchase Agreement with General Electric International, Inc. (“GEII”), pursuant to which the Company acquired GEII’s Heat Recovery Solutions (“HRS”) assets, including intellectual property, patents, trademarks, machinery, equipment, tooling and fixtures. The HRS assets will be used by the Company to manufacture and commercialize Organic Rankine Cycle (“ORC”)-based heat recovery power systems. GEII had the assets, including inventory, leases, fixed assets and patents on their books at approximately $10M. For more information please refer to our 2015 10K filings.
The Company re-located to integrate the HRS assets with the Company’s existing business at our new HRS facility in Costa Mesa, California.
During the second and third quarter of 2015, we were primarily focused on completing the acquisition and integrating the HRS assets into our Company. All the while we were diligently working on obtaining additional clients for our HRS assets, which ultimately led to us receiving our orders in the fourth quarter which has led to approximately $1.2 Millions of revenue and approximately $150K of EBITDA and approximately $50K of profitability in the 1st quarter of 2016.
During the second quarter of 2016 we intend to move into a more efficient facility.
“Given the international concerns regarding global warming and pollution and the need to more efficiently utilize fossil fuels, this is a global business with a growing market for our Clean Cycle turbine generators that can enable companies to generate greater amounts of energy from the same supply of fossil fuels and also reduce the amount of harmful emissions. This is evident by our Marshall Island two unit installations that should be commissioned in the second quarter of 2016 and produce 15 Million kWh of power over 10 years,” said Kam Mahdi, Chief Executive Officer of CETY.
The results for the year ended December 31, 2015 reflect revenue of $2,355,012 compared to $3,533,502 for the same period in 2014. For the year ended December 31, 2015, our cost of goods sold was 72% compared to 78% for the same period in 2014, mainly due to the decreased material cost as a percent of sales. For the twelve months ended December 31, 2015, our gross margin was 27% compared to 21% for the same period in 2014.
For the year ended December 31, 2015, we had a net loss of $2,569,936 compared to a net loss of $1,235,194 for the same period in 2014. The increase in the net loss in 2015 was mainly due to the acquisition of the Clean Cycle Heat Recovery System. We had net losses from our facility in Utah of $125,489. In addition, we recognized an impairment of the goodwill from the Utah’s acquisition in the amount of $420,673.