RESTATEMENT

9 Months Ended

Sep. 30, 2025

Accounting Changes and Error Corrections [Abstract]

NOTE 17 – RESTATEMENT

During the preparation of this quarterly report, the Company determined that it had not appropriately accounted for certain historical transactions under US GAAP. In accordance with Staff Accounting Bulletin (“SAB”) 99, Materiality, and SAB 108, Considering the Effects of Prior Period Misstatements when Quantifying Misstatements in Current Period Financial Statements, the Company evaluated the materiality of the errors from qualitative and quantitative perspectives, individually and in aggregate, and concluded that the errors were material to the Consolidated Balance Sheet as of September 30, 2025. The Company has restated the impacted financial statements for the period, and presented the effects of the restatement adjustments to the financial statements below.

For the three months ended September 30, 2025, the restatement resulted in an increase of $14,694 in accrued interest income associated with long-term financing receivables, a revaluation of fair value of warrant attached with credit line entered in December 2024 of $14,270 decrease with corresponding in warrant liability, an decrease of $41,894 in debt discount with corresponding decrease of $18,357 in interest expense and decrease in additional paid-in capital of $60,251 to adjust the fair value of warrant. For the three months ended September 30, 2024, the restatement resulted in an increase of $13,434 in accrued interest income associated with long-term financing receivables.

For the nine months ended September 30, 2025, the restatement resulted in a decrease of $350,000 in accounts receivable with a corresponding reduction in sales revenue, a reduction in cost of sales of $33,325 with a corresponding increase in inventory, an increase of $43,112 in accrued interest income associated with long-term financing receivables, a revaluation of fair value of warrant attached with credit line entered in December 2024 of $378 with corresponding increase in warrant liability, and a decrease in debt discount of $8,902 with corresponding increase interest expense of $3,518 and a decrease in additional paid-in capital of $5,384 to adjust the fair value of warrant. For the nine months ended September 30, 2024, the restatement resulted in an increase of $39,415 in accrued interest income associated with long-term financing receivables.

The following table presents the effects of the restatement to the accompanying consolidated balance sheet at September 30, 2025:

	As Previously Reported			Restated			Net Adjustment

Accounts receivable - net	$	580,308		$	107,630		$	(472,678	)
Deferred offering costs		22,750			127,494			104,744
Inventory, net		483,345			516,670			33,325
Long-term financing receivables - net		1,423,055			-			(1,423,055	)
Contract assets		-			662,891			662,891

Total Assets		14,798,895			13,704,122			(1,094,773	)

Customer Deposits		197,220			339,220			142,000
Warrant Liability		-			78,526			78,526
Convertible Notes Payable		2,390,564			2,399,466			8,902

Total Liabilities		7,703,762			7,933,190			229,428

Additional paid-in capital		38,131,960			38,159,348			(9,242	)
Accumulated deficit		(30,922,858	)		(32,187,587	)		(1,314,959	)

Total Stockholders’ Equity		7,095,133			5,770,932			(1,324,201	)

Total Liabilities and Stockholders’ Equity	$	14,798,895		$	13,704,122		$	(1,094,773	)

The following table presents the effects of the restatement to the accompanying consolidated statement of operations and comprehensive loss for the three months ended September 30, 2025:

	As Previously Reported			Restated			Net Adjustment

Change in FV of warrant liability	$	-		$	(14,270	)	$	(14,270	)
Interest Income		-			14,694			14,694
Interest and Financing fees		(1,555,334	)		(1,536,977	)		18,357

Net Loss before income taxes		(2,102,321	)		(1,996,680	)		105,641

Net loss attributable to Clean Energy Technologies, Inc.		(2,102,321	)		(1,996,680	)		105,641
Total Comprehensible Loss	$	(2,062,659	)	$	(1,957,018	)	$	105,641

The following table presents the effects of the restatement to the accompanying consolidated statement of operations and comprehensive loss for the nine months ended September 30, 2025:

	As Previously Reported			Restated			Net Adjustment

Sales	$	1,392,071		$	1,042,071		$	(350,000	)
Cost of Goods Sold		666,454			633,129			(33,325	)
Net Loss from Operation		(2,165,737	)		(2,482,412	)		(316,675	)

Change in FV of warrant liability		-			(378	)		(378	)
Interest Income		-			43,112			43,112
Interest and Financing fees		(2,399,193	)		(2,402,711	)		(3,518	)

Net Loss before income taxes		(3,522,293	)		(3,712,892	)		(190,599	)

Net loss attributable to Clean Energy Technologies, Inc.		(3,522,342	)		(3,712,941	)		(190,599	)
Total Comprehensible Loss	$	(3,444,257	)	$	(3,634,856	)	$	(190,599	)

The following table presents the effects of the restatement to the accompanying consolidated statement of operations and comprehensive loss for the three months ended September 30, 2024:

	As Previously Reported			Restated			Net Adjustment

Interest Income	$	-		$	13,434		$	13,434

Net Loss before income taxes		(1,299,391	)		(1,285,957	)		13,434

Net loss attributable to Clean Energy Technologies, Inc.		(1,299,391	)		(1,285,957	)		13,434
Total Comprehensible Loss	$	(1,217,313	)	$	(1,203,879	)	$	13,434

The following table presents the effects of the restatement to the accompanying consolidated statement of operations and comprehensive loss for the nine months ended September 30, 2024:

	As Previously Reported			Restated			Net Adjustment

Interest Income	$	-		$	39,415		$	39,415

Net Loss before income taxes		(3,550,669	)		(3,511,254	)		39,415

Net loss attributable to Clean Energy Technologies, Inc.		(3,550,669	)		(3,511,254	)		39,415
Total Comprehensible Loss	$	(3,527,995	)	$	(3,488,580	)	$	39,415

The following table presents the effects of the restatement to the accompanying consolidated statement of cash flows for the nine months ended September 30, 2025:

	As Previously Reported			Restated			Net Adjustment

Net Income / (Loss)	$	(3,522,342	)	$	(3,712,941	)	$	(190,599	)
Amortization of debt discount		1,395,168			1,398,686			3,518
Change in FV of warrant liability		-			378			378
(Increase) decrease in accounts receivable		(449,241	)		(99,241	)		350,000
(Increase) decrease in contract asset		-			(43,112	)		(43,112	)
(Increase) decrease in inventory		371,300			337,975			33,325

Net Cash Used In Operating Activities	$	(6,218,085	)	$	(6,131,225	)	$	86,860

The following table presents the effects of the restatement to the accompanying consolidated statement of cash flows for the nine months ended September 30, 2024:

	As Previously Reported			Restated			Net Adjustment

Net Income / (Loss)	$	(3,550,669	)	$	(3,511,254	)	$	39,415
(Increase) decrease in contract asset		-			(39,415	)		(39,415	)

Net Cash Used In Operating Activities	$	(2,788,608	)	$	(2,788,608	)	$	-