Cavitation Technologies, Inc.

Cavitation Technologies, Inc. (CVAT) has divested its vegetable oil refining patents to Desmet for $880,000, while retaining licenses for other applications like water treatment and alcoholic beverage enhancement. This strategic shift means Desmet will likely handle Nano Reactor manufacturing, reducing future sales for CVAT. The company is now focusing on new ventures including water treatment in the Permian Basin and agriculture, a business venture with Alchemy Beverages, Inc., and developing new technologies like Hydro-Plasma and crypto-focused Xyra Corp. The company reported minimal revenue and a net loss for fiscal year 2026, with new revenue streams anticipated in fiscal year 2027.

Cavitation Technologies, Inc. announced it received a Letter of Intent (LOI) from European Guarantee Services S.à.r.l. for an all-cash acquisition of the company and its affiliates, valuing CVAT at $40-$42 million, or approximately $0.13 per share. EGS provided proof of funds, and the LOI includes a 60-day exclusivity period expiring August 1, 2026. This news comes as the company reported a significant decline in financial performance for the nine months ended March 31, 2026, with revenue dropping to $6,000 and a net loss of $(953,000), alongside a going concern warning.