Cavitation Technologies Reports 97% Revenue Decline and Increased Net Loss for Recent Periods

Cavitation Technologies, Inc. (CTi) reported significant declines in its financial performance for the three and nine months ended March 31, 2026, compared to the same periods in the previous fiscal year. Revenue for the three months was $3,000, a decrease of 97.5% from $122,000, while for the nine months, revenue fell to $6,000 from $198,000, marking a 97% decline. The company attributed this drop primarily to the absence of sales following the assignment of its vegetable oil refining patents to Desmet Ballestra in October 2024, which had previously generated substantial revenue.

The company's operating expenses also saw notable changes. General and administrative expenses decreased to $234,000 for the three months ended March 31, 2026, down from $283,000, largely due to a reduction in stock compensation and professional fees. However, total operating expenses for the nine months increased to $960,000 from $913,000, driven by higher consulting fees related to its new subsidiary, Xyra Corp. The net loss for the three months was $219,000, a slight improvement from a loss of $230,000 in the prior year, while the nine-month net loss widened to $953,000 from a net income of $122,000 in the previous year.

Operationally, CTi has made strategic moves to pivot its business focus. The company incorporated Xyra Corp. in August 2025, which is dedicated to exploring opportunities in the crypto technologies market, particularly through its patented Cavitation Non-Thermal Plasma™ systems. This subsidiary aims to address challenges in fluid management for crypto mining and high-density data centers. Additionally, CTi is pursuing new applications for its technology in water treatment and remediation, with ongoing trials in agricultural settings and partnerships aimed at enhancing water quality.

As of March 31, 2026, CTi reported a stockholders' deficit of $467,000, with cash reserves dwindling to $45,000. The company has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for additional financing to sustain operations. Management plans to leverage its licenses for water and wastewater processing and alcoholic beverage production to generate revenue. Furthermore, CTi has received a Letter of Intent from European Guarantee Services for a potential acquisition, valuing the company between $40 million and $42 million, which could provide a significant financial boost if finalized.

Looking ahead, CTi's management remains cautiously optimistic about its strategic initiatives, particularly in water treatment and the development of its Hydro-Plasma technology. However, the company acknowledges the uncertainty surrounding its ability to secure necessary funding and achieve profitable operations in the near future. The ongoing geopolitical tensions and inflationary pressures may also impact its operational costs and market conditions, further complicating its financial outlook.