Cavitation Technologies, Inc. (CTi) reported a net loss of $227,000 for the three months ended September 30, 2024, a decrease from a net loss of $251,000 in the same period of the previous year, reflecting a 9.6% improvement. The loss from operations also decreased to $226,000 from $250,000 year-over-year. Despite these reductions in losses, the company did not record any revenue during the quarter, consistent with the previous year.

As of September 30, 2024, CTi's cash and cash equivalents plummeted to $2,000 from $179,000 at the end of June 2024, contributing to a total current asset decline from $195,000 to $42,000 over the same period. Total liabilities increased to $784,000 from $728,000, resulting in a stockholders' deficit of $707,000, up from $480,000 in the prior quarter. The company reported a working capital deficiency of $614,000.

Operating expenses for the quarter were $226,000, a slight decrease from $250,000 in the prior year. This was attributed to a $28,000 reduction in research and development costs, which fell to $8,000 from $36,000. General and administrative expenses increased marginally by $4,000, primarily due to higher salaries and consulting fees.

CTi's strategic developments include the termination of a previous Technology License Agreement with Desmet Ballestra in February 2024, replaced by a new agreement that allows for a limited exclusive license for marketing and selling nano reactor systems. Under this new agreement, Desmet is set to provide monthly advances of $25,000, although no advances were received during the latest quarter. In contrast, the company received $304,000 in advances from Desmet in the same quarter of 2023.

The company has also entered into a Patent Assignment and License Back Agreement with Desmet for $880,000, which is expected to provide necessary capital for operations and business development. This agreement includes a reserved license for water processing and alcoholic beverage manufacturing, allowing CTi to retain rights to use its Nano Reactor® trademark.

Management believes that the company has sufficient cash to sustain operations through March 2025 and plans to increase revenues by licensing its technology globally. The company is also exploring additional debt and equity financing options to support its operations.