COSTA MESA, Calif., May 3, 2016 /PRNewswire/ -- Clean Energy Technologies, Inc. (OTC: CETY), a cleantech company offering heat recovery solutions, today provided 2015 financial results and issued 1st quarter 2016 revenue guidance.
Highlights for the year ended December 31, 2015 include:
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.
About Clean Energy Technologies, Inc.
Clean Energy Technologies, Inc., designs, builds and markets clean energy products focused on energy efficiency and environmentally sustainable technologies. The Company's principal product is the Clean CycleTM generator, offered by Heat Recovery Solutions, or HRS. The Heat Recovery Solutions system captures waste heat from a variety of sources and turns it into electricity that users can use or sell back to the grid. CETY's proven cutting-edge technology allows any commercial or industrial heat generators to boost their overall energy efficiency with no fuel, no pollutants and virtually no maintenance. The Company's engineering and manufacturing resources, support our heat recovery solutions business, as well as continuing to support other Clean Energy emerging growth companies with their technologies. CETY is positioned to become a worldwide leader in ever expanding energy efficiency market. Headquartered in Costa Mesa, California, the Company's common stock is currently traded on the OTC Market under the symbol CETY. For more information regarding CETY, please visit www.cetyinc.com.
This release contains certain forward-looking statements (under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions; as well as, including whether the Company will be able to successfully integrate the heat recovery solutions business assets into the Company's existing operations, develop and acquire energy-efficiency and other environmentally sustainable technologies or companies, implement energy-efficient or environmentally sustainable products worldwide, or further develop products, financing options and other creative implementations to allow the Company to align its products with its customers' needs for cost-effective, energy-efficient solutions, and whether its HRS acquisition or future acquisitions and their integration will be beneficial to the Company or its stockholders. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: uncertainties relating to changes in general economic and market conditions; uncertainties relating to technology performance; uncertainties relating to market acceptance and adoption of the Company's products and competitive products; uncertainties and liabilities relating to the acquisition of business assets, technologies or companies; and other risk factors as outlined in the Company's periodic reports, as filed with the U.S. Securities and Exchange Commission. In addition, description of anyone's past success, either financial or strategic, is no guarantee of success. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events.
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SOURCE Clean Energy Technologies, Inc.