Clean Energy Technologies, Inc. (CETY) - Form 8-K Summary
Business Context and Reporting Period
Clean Energy Technologies, Inc. filed this Current Report on Form 8-K on July 8, 2026, regarding events occurring on July 1, 2026. The Company, headquartered in Irvine, CA, is listed on The Nasdaq Stock Market LLC under the symbol CETY.
Key Financial Metrics and Transaction Details
The filing discloses a specific financing transaction rather than periodic financial results. Key metrics related to this transaction include:
- Instrument: Convertible Promissory Note.
- Principal Amount: $166,500.
- Purchase Price: $150,000.
- Net Proceeds to Company: $141,000 (after deducting $3,000 in legal fees and $6,000 in broker-dealer fees).
- Interest: One-time charge of 12% on the issuance date.
- Repayment Terms: 10 monthly payments of $18,648 beginning August 7, 2026.
- Maturity Date: May 1, 2027.
- Conversion Price: 85% of the lowest closing bid price during the ten trading days prior to the conversion date (subject to beneficial ownership limits).
Material Changes
The filing does not provide comparative financial data (e.g., revenue or profit changes) against prior periods. The material change is the creation of a new direct financial obligation and the receipt of working capital funding as of July 1, 2026.
Outlook, Risks, and Contingencies
Use of Proceeds: The Company intends to use the net proceeds for general working capital purposes.
Conversion Risks: The Note is convertible upon default. Conversion is restricted if it would result in the holder owning more than 4.99% of outstanding common stock, or more than 19.99% without shareholder approval per Nasdaq Rule 5635(d).
Fee Deduction: The holder may deduct $1,500 from the conversion amount for each conversion to cover fees.
Regulatory Status: The sale was made in reliance on Section 4(a)(2) of the Securities Act of 1933 as a private placement with no general solicitation.
Investor Verification Checklist
- Verify the Company's current cash position and ability to meet the first monthly payment of $18,648 due August 7, 2026.
- Review the full text of the Securities Purchase Agreement (Exhibit 10.1) and Promissory Note (Exhibit 10.2) for additional covenants or default triggers.
- Monitor the Company's stock price to assess the potential dilution impact if the Note is converted at 85% of the lowest closing bid price.
- Confirm whether the Company has sufficient liquidity to cover the 12% one-time interest charge and ongoing principal payments.