Cavitation Technologies Inc (OTC: CVAT) is a fluid-processing technology company that develops and commercializes proprietary hydrodynamic cavitation systems for water treatment and remediation applications. Revenue comes primarily from system sales and, in FY2025, a one-time patent assignment. The company recorded $203,000 in product and service revenue and an $880,000 gain on the sale of vegetable oil refining patents to Desmet during the fiscal year ended June 30, 2025, resulting in a net loss of $113,000. Its core technology, the Nano Reactor and LPN system, targets produced and frac water treatment in oilfield applications, including customers in the Permian Basin, as well as agricultural water remediation, with an installation at Hacienda Farms (B&F Greenhouse Services, Inc.) in Canada as of 2024. The company held 16 issued U.S. patents and 11 international patents as of June 30, 2025, and employed three full-time staff. Headquarters are in Chatsworth, California.

Revenue model

Transactional revenue from Nano Reactor system sales, supplemented by a one-time patent assignment gain of $880,000 from Desmet in October 2024. Monthly advances of $25,000 from Desmet under a prior agreement (terminated October 2024) were structured as prepayments against future reactor sales.

Products and services

Nano Reactor hydrodynamic cavitation systems for produced and frac water treatment (LPN technology); agricultural water remediation systems targeting algae control, bacterial disinfection, and oxygen enhancement. As of October 2024, vegetable oil refining patents were assigned to Desmet; the company retains a worldwide, exclusive, royalty-free license to use those patents in water and wastewater processing.

Customers and end markets

Oilfield water treatment operators in the Permian Basin (one installation at a major water remediation company in Texas as of FY2025 filing); agricultural greenhouse operators (Hacienda Farms / B&F Greenhouse Services, Inc. in Canada, installation underway as of 2024). End markets: oilfield produced and frac water treatment, agricultural water remediation.

Value-chain role

Technology developer and system manufacturer. Holds and licenses patented hydrodynamic cavitation IP. Partners with Desmet Ballestra for commercialization in certain fields; assigned vegetable oil refining IP to Desmet in October 2024 while retaining a royalty-free license back for water processing applications.

Geographic exposure

Primary operations in Chatsworth, California (headquarters, approximately 5,000 sq ft facility). Customer installations in Texas (Permian Basin) and Canada (Ontario, Hacienda Farms). International patents held in 11 countries as of June 30, 2025.

Competitors

Local water treatment service providers, Multi-national water treatment corporations (unnamed in filing)

Source: SEC 10-K, filed 2025-09-29

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