Clean Coal Technologies Inc.

During February 2021, the Company borrowed a total of $150,000 in two notes payable to an entity controlled and owned by a significant shareholder of the Company. The notes are unsecured, due on demand and accrued interest at 12% per annum. As of March 31, 2021, the balance on the notes was $150,000 and the Company incurred $2,106 in accrued but unpaid interest expense.

During the three months ended March 31, 2021, we recognized total other expense of $570,747 compared to $881,576 for the three months ended March 31, 2020. The majority of the $310,829 decrease is due to a $226,901 decrease in interest expense during the three months ended March 31, 2021 mainly due to lower amortization of debt discounts on convertible notes payable compared to the three months ended March 31, 2020. The Company also recognized a total of $600 and $55,000 in debt conversion and extension fees during the three months ended March 31, 2021 and 2020, respectively, and a $29,528 gain on change in fair value of share-settled debt during the three months ended March 31, 2021.

Net cash used in operating activities was $172,622 for the three months ended March 31, 2021, compared to $479,162 for the same period in 2020. The $306,540 decrease is mainly a result of the $296,946 decrease in net loss, a $131,539 decrease in gain on settlement of accounts payable, partially offset by a $239,114 decrease in non-cash expense adjustments such as debt discount amortization, lease asset amortization, debt conversion and extension fees and changes in fair value of share-settled debt and $117,169 decrease in accounts payable and accrued expenses during the three months ended March 31, 2021 compared to the 2020 period.

Net Cash Provided by Financing Activities. Net cash provided by financing activities during the three months ended March 31, 2021 totaled $168,600, compared to $389,900 during the three months ended March 31, 2020. During the three months ended March 31, 2021 and 2020, we received $0 and $535,000 in borrowings on convertible notes payable and $18,600 and $24,900 from the issuance of convertible notes payable to a related party, respectively. During the three months ended March 31, 2020, we repaid $150,000 in convertible note principal and paid $20,000 in debt issuance, we had no such repayments or expenditures during the 2021 period.

We secured a permanent location in Gillette, Wyoming for our test facility. The term of the lease is three years and calls for rent of $36,000, prepaid. In April, 2021 the company signed and executed an extension to the lease for the site at Fort Union, Wyoming for an additional three years to April 30, 2024. The rent of $36,000 was paid in advance by the company in April, 2021.