Investment Thesis
Clean Energy Technologies is in acute financial distress with negative profitability across all metrics (gross margin -1.8%, operating margin -91.8%), severe cash burn of -849.3K annually, and critically depleted cash reserves of only 39.1K. The company operates an unsustainable business model losing money on every dollar of revenue while burning cash faster than it can generate it, creating existential solvency risk.
Strengths
- Moderate leverage with debt/equity ratio of 0.34x, reducing bankruptcy risk from overleveraging
- Positive stockholders equity of 7.0M provides some asset cushion
- Current ratio of 1.15x indicates minimal short-term liquidity (though insufficient given burn rate)
Risks
- Operating cash flow of -836.6K and free cash flow of -849.3K indicate unsustainable cash burn relative to 39.1K cash balance
- Negative gross margin of -1.8% and operating margin of -91.8% indicate fundamentally broken business unit economics
- Revenue declining 10.8% YoY combined with negative profitability creates death spiral dynamics with no path to breakeven
- Interest coverage ratio of -1.7x means operating income cannot service debt obligations
- Critically low cash reserves of 39.1K provide only weeks of runway at current burn rate
Key Metrics to Watch
- Cash & equivalents balance (survival metric)
- Operating cash flow trend (indicates when company runs out of cash)
- Revenue trend and gross margin recovery (must improve to positive)
- Whether company secures financing or strategic transaction to avoid liquidation
Financial Metrics
Revenue
783.7K
Net Income
-662.2K
EPS (Diluted)
$-0.05
Free Cash Flow
-849.3K
Total Assets
13.9M
Cash
39.1K
Profitability Ratios
Gross Margin
-1.8%
Operating Margin
-91.8%
Net Margin
-84.5%
ROE
-9.4%
ROA
-4.8%
FCF Margin
-108.4%
Balance Sheet & Liquidity
Current Ratio
1.15x
Quick Ratio
1.07x
Debt/Equity
0.34x
Debt/Assets
49.5%
Interest Coverage
-1.73x
Long-term Debt
2.4M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-07-28T06:00:59.710766 |
Data as of: 2026-03-31 |
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