10-Q - Cavitation Technologies, Inc. (0001376793) (Filer)
Thu, Nov 14, 4:43 PM (89 days ago)
Cavitation Technologies, Inc. (CTi) reported a net loss of $227,000 for the quarter ending September 30, 2024, a slight improvement from a loss of $251,000 in the same period last year. Notably, the company generated no revenue during both quarters, primarily due to the absence of shipments of its Nano Reactors to Desmet, its primary distributor. Operating expenses decreased by 9.6% year-over-year, driven by reduced research and development costs, which fell by 77.8% to $8,000. As of September 30, 2024, CTi's total assets decreased to $77,000 from $248,000, with cash and cash equivalents plummeting to $2,000. The company faces significant liquidity challenges, evidenced by a stockholders' deficit of $707,000 and a working capital deficiency of $614,000. Management has raised substantial doubt regarding the company's ability to continue as a going concern, although it plans to raise additional financing and pursue global licensing opportunities to boost revenues. The recent patent assignment agreement with Desmet for $880,000 may provide necessary capital, but future revenue generation remains uncertain, particularly following the expected reduction in sales to Desmet. Overall, CTi's financial health is precarious, with operational and market uncertainties complicating its outlook.