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Red Flags Detected

  • 50% Premium On Borrowed Amount (new) — The $130K difference between borrowed and repayment amounts suggests the company may have limited access to conventional financing.
  • Short-term Secured Loan Structure (new) — Resorting to high-cost, asset-backed short-term financing often indicates liquidity pressure or credit challenges.
NASDAQ: CETY Clean Energy Technologies, Inc. 8-K

Clean Energy Technologies borrows $260K, must repay $390K over 32 weeks in high-cost loan

Filed June 8, 2026 · Period ending May 27, 2026 · ~1 min read

3 key changes 2 high relevance 2 red flags 3 sections

Key Changes

  • high

    Company borrowed $260,000 from Agile Capital on May 27, 2026, but must repay $389,740 over 32 weeks—a 50% premium indicating extremely high financing costs that will strain near-term cash flow.

  • high

    Loan is secured and subordinated, meaning company pledged collateral and this debt ranks below senior obligations in repayment priority, increasing risk if financial distress occurs.

  • medium

    Weekly amortization payments begin immediately, creating ongoing cash flow obligations through approximately $260,000 January 2027 that could limit operational flexibility.

Summary

Clean Energy Technologies has taken on expensive short-term financing, borrowing $260,000 but committing to repay nearly $390,000 over just 32 weeks. The 50% premium represents an effective annual interest rate exceeding 100%, signaling either severe liquidity constraints or very limited access to traditional credit markets.

The loan is both secured (backed by company assets) and subordinated (junior to other debt), which typically indicates heightened lender risk concerns. For retail investors, this financing raises immediate questions about the company's cash position and ability to fund operations through normal channels. The weekly payment schedule—roughly $12,000 per week—will create constant pressure on cash flow through early 2027.

Watch the next quarterly report (10-Q) closely for revenue trends, cash burn rate, and whether the company seeks additional financing. If CETY cannot generate sufficient operating cash flow to meet these payments while funding the business, further dilutive equity raises or additional high-cost debt may follow.

Section-by-Section Diff

Event · Item 1.01 — Entry into a Material Definitive Agreement

~100 words

Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.

1 Added
Added Secured loan from Agile Capital high

Added in current filing · verify on EDGAR →

On May 27, 2026, Clean Energy Technologies, Inc. (the “Company”) borrowed approximately $260,000 from Agile Capital Funding, LLC (“Agile”) pursuant to a short-term secured cash advance loan.

The company entered into a short-term secured loan agreement with Agile Capital Funding on May 27, 2026, receiving approximately $260,000 in cash. This is a material financing transaction that provides immediate liquidity to the company.

Event · Item 2.03 — Creation of a Direct Financial Obligation

~45 words

Clean Energy Technologies created a direct financial obligation, with details incorporated by reference from Item 1.01.

1 Added
Added Direct financial obligation high

Added in current filing · verify on EDGAR →

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The disclosure provided above in Item 1.01 above is incorporated by reference into this Item 2.03.

The company disclosed the creation of a direct financial obligation or off-balance sheet arrangement. The specific terms and details are referenced in Item 1.01 of this filing, which is not included in the provided text. This indicates the company has entered into a new debt arrangement, credit facility, or similar financial commitment that creates a material obligation.

Event · Item 9.01 — Financial Statements and Exhibits

~100 words

Clean Energy Technologies entered into a subordinated business loan agreement with Agile Capital Funding on May 27, 2026.

1 Added
Added Subordinated loan agreement high

Added in current filing · verify on EDGAR →

Subordinated Business Loan and Security Agreement, dated May 27, 2026, entered into between the Company and Agile Capital Funding, LLC

The company has entered into a subordinated business loan and security agreement with Agile Capital Funding, LLC. This represents new debt financing, with the subordinated nature indicating it ranks below senior debt in repayment priority. The full terms, amount, interest rate, and maturity are contained in the attached exhibit.

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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 10, 2026 · How we verify