Cavitation Technologies, Inc. (CTi) reported significant financial challenges in its latest 10-Q filing for the period ending December 31, 2025. The company recorded no revenue for the three months ended December 31, 2025, a stark decline from $76,000 in the same period the previous year. For the six months ending December 31, 2025, revenue was reported at $3,000, down 96.1% from $76,000 in the prior year. The absence of revenue generation is attributed to the assignment of certain patents related to vegetable oil refining to Desmet Ballestra, which has led to a substantial decrease in sales of the company's Nano Reactor® systems.
The financial performance of CTi also reflected a net loss of $476,000 for the three months ended December 31, 2025, compared to a net income of $579,000 in the same period of 2024. For the six-month period, the net loss increased to $734,000 from a profit of $352,000 in the previous year. This deterioration in profitability is primarily due to the lack of revenue from product sales and a significant increase in general and administrative expenses, which rose by 35.8% to $470,000 for the quarter. The company also reported a stockholders' deficit of $248,000 as of December 31, 2025, compared to a surplus of $69,000 at the end of June 2025.
Operationally, CTi has made strategic moves to pivot its business focus. In August 2025, the company established a wholly owned subsidiary, Xyra Corp., which is aimed at exploring opportunities in the crypto technologies market. Xyra holds an exclusive license for CTi's patented Cavitation Non-Thermal Plasma™ systems, initially developed for cooling in crypto mining and data centers. This strategic shift is part of CTi's broader plan to leverage its technology in various sectors, including water treatment and the production of alcoholic beverages, through partnerships with companies like Alchemy Beverages, Inc.
Despite these strategic developments, the company faces significant operational challenges. As of December 31, 2025, CTi had cash and cash equivalents of only $31,000, raising concerns about its ability to sustain operations. The company has indicated that it may seek additional debt or equity financing to support its business plan, which includes expanding its technology applications in water and wastewater processing and enhancing alcoholic beverage production. However, there are no assurances that such financing will be available or sufficient to meet its operational needs.
Looking ahead, CTi's management remains cautiously optimistic about its future. The company plans to focus on generating revenue through its licensed technologies and partnerships, particularly in water treatment and agricultural applications. However, the ongoing financial losses and the need for additional funding present substantial risks to its business continuity. The company has acknowledged that its ability to continue as a going concern is contingent upon successfully implementing its business strategy and securing necessary financing.
About Cavitation Technologies, Inc.
Cavitation Technologies, Inc. develops patented, environmentally friendly systems utilizing nano and hydrodynamic cavitation for industrial liquid processing. Its core applications include vegetable oil refining, water treatment, algae oil extraction, and beverage enhancement. The company licenses its proprietary technology globally, primarily through partnerships, aiming to improve yields, reduce costs, and promote sustainable practices across large markets such as food, biofuel, and water industries.
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