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CETY(CETY) - 2024 Q4 - Annual Report
CETYCETY(CETY)2025-04-14 10:29

Revenue Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of 2,424,659,asignificantdecreasefrom2,424,659, a significant decrease from 6,693,844 in 2023, reflecting a strategic shift and lower demand in certain segments [263]. - The revenue from CETY Renewables, the newly launched waste-to-energy business, increased to 1,064,757in2024from1,064,757 in 2024 from 429,999 in 2023, driven by progress in the VRG project [266]. - The revenue from the natural gas business dropped to 1,192,420in2024,downfrom1,192,420 in 2024, down from 5,719,170 in 2023, primarily due to lower demand in China and increased competition [267]. Profitability and Loss - Gross profit for the year ending December 31, 2024, increased to 846,555comparedto846,555 compared to 460,835 in 2023, despite a decline in revenue, indicating improved operational efficiencies [268]. - The gross profit from CETY Renewables rose to 829,784in2024,upfrom829,784 in 2024, up from 355,303 in 2023, highlighting the profitability of the higher-margin waste-to-energy segment [270]. - The company experienced a net loss of 4,416,319forthefiscalyear2024,animprovementfromthenetlossof4,416,319 for the fiscal year 2024, an improvement from the net loss of 5,782,666 in 2023, attributed to a shift in revenue mix [261]. - Net loss from operations increased to 3,112,847in2024comparedtoanetlossof3,112,847 in 2024 compared to a net loss of 2,925,984 in 2023, attributed to team expansion and revenue decline in the NG business [280]. Financial Position - As of December 31, 2024, the company had total stockholder's equity of 2,938,502andanaccumulateddeficitof2,938,502 and an accumulated deficit of 27,443,231, indicating ongoing financial challenges [260]. - The company will continue to rely on equity sales of common shares for funding, with potential dilution to existing stockholders [325]. - There are no significant off-balance sheet arrangements that could materially affect the company's financial condition [326]. Operational Efficiency - Selling, General and Administrative (SG&A) expenses increased to 797,518in2024from797,518 in 2024 from 679,004 in 2023, driven by investments in media, marketing, and IT infrastructure [272]. - Total salaries rose to 1,906,701in2024,upfrom1,906,701 in 2024, up from 1,570,909 in 2023, primarily due to the expansion of the CETY Renewables team and salary increases in China [273]. - Travel expenses decreased to 185,876in2024from185,876 in 2024 from 247,124 in 2023, reflecting reduced travel costs from the US and Europe [274]. - Facility lease expenses slightly decreased to 285,823in2024from285,823 in 2024 from 310,004 in 2023, due to renegotiations and improved space utilization [275]. - Interest and finance fees decreased to 1,199,042in2024from1,199,042 in 2024 from 2,137,649 in 2023, primarily due to reduced convertible notes and bridge financing fees [283]. - Cash flow used in operating activities improved to (3,560,951)in2024from(3,560,951) in 2024 from (4,783,077) in 2023 [285]. - The company recorded a gain of 8,135indebtsettlementfor2024,comparedtoalossof8,135 in debt settlement for 2024, compared to a loss of 1,124,654 in 2023 [282]. - Professional fees increased to 578,937in2024from578,937 in 2024 from 356,785 in 2023, mainly due to costs associated with a new auditor and SEC filings [279]. - Bad debt expense remained at 0forboth2024and2023,indicatingeffectivecreditmanagement[277].StrategicInitiatives−ThecompanyhasestablishedCETYCapitaltofundrenewableenergyprojects,enhancingitscapacitytosupportcleanenergyinitiatives[247].−ThestrategicdecisiontodiscontinueinvolvementintheShuyaoperationsreflectsafocusoncorecompetenciesinwaste−to−energyandheatrecoverysolutions[250].−Thecompanyaimstoexpanditshigher−marginrenewableenergyandwaste−to−energysolutionstodrivesustainableprofitabilitymovingforward[268].DeferredRevenueandCustomerDeposits−AsofDecember31,2024and2023,thecompanyhaddeferredrevenueof0 for both 2024 and 2023, indicating effective credit management [277]. Strategic Initiatives - The company has established CETY Capital to fund renewable energy projects, enhancing its capacity to support clean energy initiatives [247]. - The strategic decision to discontinue involvement in the Shuya operations reflects a focus on core competencies in waste-to-energy and heat recovery solutions [250]. - The company aims to expand its higher-margin renewable energy and waste-to-energy solutions to drive sustainable profitability moving forward [268]. Deferred Revenue and Customer Deposits - As of December 31, 2024 and 2023, the company had deferred revenue of 33,000, expected to be recognized in Q2 2025 [311]. - Outstanding customer deposits as of December 31, 2024 and 2023 were 30,061and30,061 and 165,236, respectively [312]. Accounting and Reporting - Effective January 1, 2023, the company consolidated Shuya as a variable interest entity (VIE) due to a Consistent Action Agreement among shareholders [318]. - The fair value of non-controlling interests on January 1, 2023, was recorded at 650,951,withtotalidentifiablenetassetsrecognizedat650,951, with total identifiable net assets recognized at 1,207,047 [322]. - The company believes that the impact of recently issued accounting standards will not materially affect its consolidated financial position or results of operations upon adoption [327]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [328].