Cavitation Technologies Reports 98.5% Revenue Decline and Increased Losses for Fiscal Year Ending June 30, 2026

Cavitation Technologies, Inc. (CTi) reported a significant decline in financial performance for the fiscal year ending June 30, 2026, with revenues dropping to $3,000 from $203,000 in the previous year, marking a decrease of 98.5%. The company incurred a net loss of $1.4 million, a substantial increase from the $113,000 loss reported in the prior fiscal year. This downturn is attributed to the absence of reactor sales and a lack of revenue from licensing agreements, particularly following the assignment of vegetable oil refining patents to Desmet Ballestra in October 2024.

In terms of operational changes, CTi has undergone strategic shifts, including the termination of its previous licensing agreements with Desmet and the establishment of a new Patent Assignment and License Back Agreement. This agreement allows CTi to retain rights to utilize its patented technologies in water treatment and alcoholic beverage production, while Desmet will manufacture the Nano reactors independently. The company anticipates that this transition will reduce future reactor sales to Desmet but will enable CTi to focus on new markets, including water treatment in the Permian Basin and agricultural applications.

CTi's operational metrics reflect a challenging environment, with no significant customer growth or product adoption rates reported during the fiscal year. The company has maintained a minimal employee count, with only two full-time employees as of June 30, 2026. The lack of revenue generation from its ventures, including the partnership with Alchemy Beverages, Inc., has raised concerns about the company's ability to sustain operations. As of the end of the fiscal year, CTi reported a working capital deficit of $554,000 and a stockholders' deficit of $693,000.

Looking ahead, CTi's management has outlined plans to generate revenue through the commercialization of its new technologies and applications. However, the company acknowledges the need for additional funding to support its operations and growth initiatives. The management's ability to secure financing remains uncertain, and without it, the company may need to curtail its operations. The ongoing geopolitical tensions and inflationary pressures are also expected to impact the company's financial outlook.

In summary, Cavitation Technologies, Inc. is navigating a challenging financial landscape with a significant decline in revenue and increased losses. The company's strategic realignment and focus on new markets may provide opportunities for recovery, but the need for additional capital and the uncertain economic environment pose substantial risks to its future viability.