Cavitation Technologies, Inc.

What they do

CTi designs and patents environmentally friendly fluid-processing systems built around its Nano Reactor and low-pressure non-reactor (LPN) components. Historically, its main commercial application was the CTi Nano Neutralization System for edible vegetable oil refining, used at soybean, rapeseed, canola and palm refineries and licensed globally to Desmet Belgium Group. It reports it has shipped over 200 systems domestically and internationally, but in October 2024 it assigned its vegetable-oil-refining patents to Desmet and retained a royalty-free license only in water/wastewater and beverage fields.

Revenue drivers

• Nano Reactor / Nano Neutralization System (legacy) — Equipment sales to vegetable oil refiners and gross profit share from Desmet licensing generated all prior revenue; the 2024 patent assignment to Desmet means Desmet will manufacture its own reactors and Company reactor sales to Desmet are expected to significantly decline.
• Water treatment and remediation (Permian Basin) — Through an Enviro Watertek joint venture from 2020-2022, CTi says it demonstrated commercial viability with approximately 3 million barrels treated; a system is now installed at a Texas water remediation company for over six months with more testing required.
• Alchemy Beverages / beverage and spirits enhancement — CTi holds a royalty-free license in alcoholic beverage manufacture and marketing, and has miniaturized its non-reactors for consumer products such as spirits, wines, vitamin/mineral/CBD-infused drinking water.
• Xyra Corp. and new technologies — A wholly owned subsidiary, Xyra Corp., is described as a recent licensing channel, and management lists hydro-plasma among planned new technology revenue efforts; no revenue contribution is quantified.

Recent performance

Revenue fell to $203,000 in fiscal 2025 from $1.4 million in fiscal 2024, and quarterly revenue was minimal at $5,000 (June 2025), $3,000 (September 2025), $0 (December 2025) and $3,000 (March 2026). The Company reported a fiscal 2025 net loss of $113,000 versus net income of $439,000 in fiscal 2024. Operating cash flow was negative $806,000 in fiscal 2025, reversing positive $172,000 in fiscal 2024. At March 31, 2026, total assets were $66,000, total liabilities $533,000, shareholder equity was negative $467,000, and cash was $45,000.

Strategy

After assigning its vegetable oil refining patents to Desmet for $880,000 in October 2024, CTi retained royalty-free rights in water/wastewater processing and beverage fields and says it will keep a large portfolio of patents outside vegetable oil refining. Management's stated revenue priorities are water treatment and remediation in the Permian Basin, agricultural water remediation/disinfection, its venture with Alchemy Beverages, and new technologies such as hydro-plasma. It also expects commercial sales of its LPN in multiple fluid-processing industries in fiscal 2026 and is pushing miniaturized non-reactors into consumer beverage and water products.

Risks

• No meaningful revenue — Latest quarterly revenue was $3,000 and the December 2025 quarter had none, leaving the business dependent on capital rather than operations.
• Negative equity and thin liquidity — At March 31, 2026 total assets were $66,000 against liabilities of $533,000, with shareholder equity of negative $467,000 and only $45,000 of cash.
• Loss of the core vegetable oil refining business — The October 2024 Desmet patent assignment means Desmet will manufacture Nano reactors itself and already low Company sales to Desmet are expected to significantly decrease.
• Early-stage water and beverage ventures — The Permian Basin system has been installed for over six months and still requires more testing, and the prior Enviro Watertek joint venture could not expand after significant oil & gas industry shifts.

Outlook

Management says it expects commercial LPN sales in fiscal 2026 and is pursuing water treatment customers primarily in the Permian Basin, agricultural water applications, the Alchemy Beverages venture and hydro-plasma technology. It states it retained an extensive patent portfolio outside vegetable oil refining and expects to continue operating with remaining capital from the $880,000 Desmet transaction. The filings disclose a material agreement in August 2026 but the excerpt does not describe its terms.