Mon, Sep 30, 8:53 PM (81 days ago)
Cavitation Technologies, Inc. reported a significant financial turnaround for the fiscal year ending June 30, 2024, achieving revenue of $1,363,000, up 230% from $413,000 in 2023. This increase was primarily driven by heightened reactor sales to Desmet Ballestra, alongside a $498,000 licensing fee recognized following the termination of an earlier agreement. The company posted a net income of $439,000, a substantial recovery from a net loss of $2,040,000 the prior year. Operating expenses decreased by 35.8% to $769,000, largely due to reduced general and administrative costs. However, research and development expenses rose significantly to $61,000, reflecting ongoing investments in new technologies. Despite the positive financial results, the company faces a working capital deficiency of $403,000 and a stockholders' deficit of $480,000, raising concerns about its ability to continue as a going concern. Strategically, the company is focusing on expanding its licensing agreements, particularly with Desmet, and exploring new markets for its patented technologies. However, risks include dependence on a single customer for revenue and challenges in expanding its market presence, especially in the oil and gas sector. The outlook remains cautious as management seeks additional funding to sustain operations.