Clean Energy Technologies (NASDAQ: CETY) flags errors, to restate 2022–2025 results
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Clean Energy Technologies, Inc. disclosed that its accounting for certain long-term receivables, contract assets, revenue recognition and related interest income under U.S. GAAP was incorrect for periods between January 1, 2022 and September 30, 2025. As a result, all financial statements and related communications for these periods should no longer be relied upon. The company plans to file amended annual reports for 2023 and 2024 and amended quarterly reports for the first three quarters of 2025 to restate its financial statements. The board and audit committee members discussed these matters with the company’s independent registered public accounting firm.
Positive
- None.
Negative
- Non-reliance and restatement of multi-year financials: The company concluded its accounting was incorrect for long-term receivables, contract assets, and revenue timing from January 1, 2022 through September 30, 2025, and that all financial statements and related communications for these periods should no longer be relied upon.
Insights
Company warns investors not to rely on over three years of past financials.
Clean Energy Technologies determined its accounting was incorrect for long-term receivables, contract assets, and the timing of revenue and related interest income under U.S. GAAP from January 1, 2022 through September 30, 2025.
All financial statements and related communications for these periods are deemed unreliable, which is a serious disclosure event. The company states the issues relate primarily to historical balance sheet items and do not affect current operations or underlying business activities.
The company plans Form 10-K/A restatements for years ended December 31, 2023 and December 31, 2024, plus Form 10-Q/A restatements for the first three quarters of 2025. The board and audit committee have discussed the situation with the independent auditor, and investors will need those amended filings to understand the revised financial profile.
8-K Event Classification
Item 4.02 — Non-Reliance on Previously Issued Financial Statements or a Related Audit Report
1 item
Item 4.02
Non-Reliance on Previously Issued Financial Statements or a Related Audit Report
Governance
Previously issued financial statements should no longer be relied upon due to errors or restatements.
Key Figures
Impacted period: January 1, 2022 – September 30, 2025
Annual restatements: Years ended December 31, 2023 and 2024
Quarterly restatements: March 31, 2025; June 30, 2025; September 30, 2025
+1 more
4 metrics
Impacted period
January 1, 2022 – September 30, 2025
Span of financial statements deemed unreliable
Annual restatements
Years ended December 31, 2023 and 2024
Form 10-K/A restated financial statements planned
Quarterly restatements
March 31, 2025; June 30, 2025; September 30, 2025
Form 10-Q/A restated financial statements planned
Item cited
Item 4.02
Non-Reliance on Previously Issued Financial Statements
Key Terms
Non-Reliance on Previously Issued Financial Statements, long-term receivables, contract assets, revenue recognition, +2 more
6 terms
Non-Reliance on Previously Issued Financial Statements regulatory
"Item 4.02 Non-Reliance on Previously Issued Financial Statements or Related Audit Report or Completed Interim Report."
long-term receivables financial
"classification, valuation, and collectability assessment of certain long-term receivables and contract assets"
contract assets financial
"classification, valuation, and collectability assessment of certain long-term receivables and contract assets"
Contract assets are amounts a company has earned by doing work or delivering goods under a customer agreement but has not yet billed or collected because certain contract conditions remain. Think of it as completed work sitting in a company’s toolbox waiting for an invoice trigger. For investors, growing contract assets signal future cash and revenue potential but also raise questions about timing, cash collection risk and the real strength of reported sales.
revenue recognition financial
"as well as the timing of revenue recognition and related interest income under U.S. GAAP, was incorrect."
Revenue recognition is the accounting rule that determines when a company records a sale as income on its financial statements, which may differ from when cash actually arrives. It matters to investors because the timing and method used can change reported profits and growth, so understanding it is like knowing whether a scoreboard counts goals as soon as they’re scored or only after they’re confirmed — the timing affects comparisons, forecasts, and valuation.
U.S. GAAP financial
"timing of revenue recognition and related interest income under U.S. GAAP, was incorrect."
U.S. GAAP is a set of rules and standards that companies in the United States follow to prepare their financial reports. It helps ensure that financial information is consistent and clear, so investors and others can compare and understand a company's financial health easily.
independent registered public accounting firm regulatory
"have discussed the matters disclosed in this Item 4.02 with the Company’s independent registered public accounting firm, TAAD, LLP."
An independent registered public accounting firm is an outside accounting company officially registered with the government regulator to examine and report on a public company's financial records and controls. Investors treat its reports like an impartial inspector’s certificate — they add credibility to financial statements, help spot errors or misleading claims, and reduce the risk that shareholders are relying on unchecked or biased numbers.
FAQ
What did Clean Energy Technologies (CETY) disclose in this 8-K filing?
Clean Energy Technologies disclosed that its accounting for certain long-term receivables, contract assets, revenue recognition, and related interest income was incorrect. As a result, all financial statements and related communications for periods from January 1, 2022 through September 30, 2025 should no longer be relied upon.
Which Clean Energy Technologies financial periods are affected by the non-reliance notice?
The company identified issues affecting all fiscal periods between January 1, 2022 and September 30, 2025. Financial statements, earnings releases, investor presentations, and similar communications describing results during these periods are no longer reliable and will be superseded by future restated filings.
How will Clean Energy Technologies (CETY) correct the impacted financial statements?
Clean Energy Technologies plans to file an amended Form 10-K/A with restated financial statements for the years ended December 31, 2023 and December 31, 2024, and amended Forms 10-Q/A with restated financial statements for the quarters ended March 31, June 30, and September 30, 2025, reflecting corrected accounting treatment.
Do the accounting issues affect Clean Energy Technologies’ current operations?
The company stated it believes the issues relate primarily to historical balance sheet items. It also indicated they do not impact its current operations or underlying business activities, suggesting day-to-day business performance is not directly affected by the identified accounting corrections.
What areas of accounting were problematic for Clean Energy Technologies (CETY)?
The company reported incorrect treatment in the historical classification, valuation, and collectability assessment of certain long-term receivables and contract assets, as well as the timing of revenue recognition and related interest income under U.S. GAAP. These issues together triggered the non-reliance conclusion and planned restatements.
Did Clean Energy Technologies involve its auditor in addressing these accounting issues?
Yes. The CEO, CFO, and audit committee chair discussed the identified matters with TAAD, LLP, the company’s independent registered public accounting firm. This involvement indicates the auditor is engaged as management prepares the required amended annual and quarterly reports with restated financial statements.