Cavitation Technologies, Inc. (CTi) reported a revenue of $3,000 for the three months ended September 30, 2025, marking a significant increase from zero revenue in the same period last year. However, the company continues to face financial challenges, posting a net loss of $258,000, which is a 13.7% increase compared to a net loss of $227,000 in the prior year. The increase in loss is attributed primarily to higher general and administrative expenses and increased interest expenses related to the company's Economic Injury Disaster Loan (EIDL).
The company's total operating expenses rose to $252,000, up from $226,000 in the previous year, reflecting a 11.5% increase. General and administrative expenses accounted for the majority of this rise, increasing by $27,000, or 12.4%, largely due to increased travel and consulting costs. Research and development expenses slightly decreased to $7,000 from $8,000, indicating a continued focus on innovation despite financial constraints. As of September 30, 2025, CTi's accumulated deficit stood at $27.2 million, a slight increase from $26.96 million at the end of the previous fiscal period.
Operationally, CTi has made strategic moves to enhance its market position. The company has entered into a Patent Assignment and License Back Agreement with Desmet Belgium Group, which has provided $880,000 in cash to support ongoing operations. This agreement allows CTi to retain a royalty-free license to use its patented technology in water treatment and alcoholic beverage production, which are key areas for future revenue generation. The company is also pursuing new ventures, including water remediation projects in the Permian Basin and agricultural applications in Canada, which are expected to yield revenue in fiscal 2026.
CTi's cash position has significantly declined, with cash and cash equivalents dropping to $30,000 from $249,000 at the end of the previous quarter. The company has indicated that it may seek additional debt or equity financing to support its operations and business development plans. Management believes that it has sufficient cash to sustain operations through December 2025, but acknowledges the uncertainty surrounding its ability to continue as a going concern. The company is actively working on expanding its technology applications and partnerships, with expectations of generating revenue from new projects in the near future.
Looking ahead, CTi aims to leverage its patented technologies to penetrate the water treatment and alcoholic beverage markets more effectively. The company is optimistic about the potential of its Hydro-Plasma technology and its partnership with Alchemy Beverages, Inc. for the development of a smart home kitchen appliance. However, the company cautions that there are no guarantees regarding the success of these initiatives or the ability to secure necessary financing, which could impact its operational viability.
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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