Cavitation Technologies, Inc. (OTC: CVAT)

Cavitation Technologies, Inc. is a Nevada‑based process and product development firm that has created, patented, and commercialized environmentally friendly technology‑based systems for large, growing global markets. Its core technology revolves around the patented Nano Reactor® and LPN™ devices, which use hydrodynamic cavitation to process industrial liquids more efficiently. The company’s systems are designed to reduce processing time, lower operating costs, improve yield, and minimize chemical use across applications such as vegetable oil refining, renewable fuels, water treatment, wines and spirits enhancement, algae oil extraction, water‑oil emulsions, and crude oil yield improvement. To date, Cavitation Technologies, Inc. has shipped over 200 of its systems domestically and internationally, with early pilots conducted at a 200‑metric‑ton‑per‑day soy‑oil refinery in South Carolina and a larger 450‑metric‑ton‑per‑day facility that has remained operational since 2011. The firm continues to develop new applications while managing its intellectual property portfolio.

Revenue is generated principally through the sale of Nano Reactor®‑based Nano Neutralization® Systems to vegetable oil refiners via its long‑standing partner Desmet, which markets and installs the equipment worldwide. Under a series of licensing agreements with Desmet, the company has received monthly advance payments—initially $50,000 per month, later adjusted to $40,000 and then $25,000—applied against future sales or royalty streams. In October 2024, Cavitation Technologies, Inc. assigned certain patents related to vegetable oil refining to Desmet for an $880,000 cash payment, providing immediate working capital. Although the company has not yet realized material income from its water‑treatment joint venture Enviro WaterTek LLC, its agricultural water‑remediation pilot with Hacienda Farms, or its licensing arrangement with Alchemy Beverages, Inc., it anticipates future revenue from these initiatives as well as from the emerging Hydro‑Plasma technology. Historically, the bulk of the firm’s revenue has stemmed from reactor sales to Desmet, supplemented by periodic licensing fees and advance payments.

Cavitation Technologies, Inc. views itself as a niche innovator in the hydrodynamic cavitation space, competing against both local service providers and large multinational corporations that offer conventional chemical‑intensive water‑treatment and oil‑refining solutions. The company asserts that its LPN™ technology is conceptually new and has not been introduced by rivals, giving it a distinct edge in chemical‑free operation, rapid integration (within 24 hours), compact footprint, low energy consumption, and the ability to reuse or safely dispose of treated water. These advantages are reinforced by an intellectual property base that, as of June 2025, comprises 16 issued U. S. patents and 11 issued international patents covering applications in vegetable oil refining, biodiesel production, industrial water treatment, hydrocarbon upgrading, and alcoholic‑beverage enhancement, with additional patent‑pending developments such as Hydro‑Plasma. The firm also notes that its products have not required significant environmental‑compliance expenditures to date.

The company’s customer base includes Desmet, which serves as the global distributor for its Nano Reactor® systems; vegetable‑oil refineries such as the Carolina Soya plant in South Carolina and another unnamed facility processing approximately 450 metric tons per day of soy oil; agricultural operators like Hacienda Farms in Canada, where its LPN™ unit is undergoing trials for algae and bacteria control; and undisclosed water‑remediation companies in Texas that have installed its systems for testing. Cavitation Technologies, Inc. also collaborates with Alchemy Beverages, Inc. on licensing and potential royalty arrangements for beverage‑enhancement applications, and it continues to pursue additional opportunities in the Permian Basin water‑treatment market, agricultural greenhouse sector, and industrial water‑recycling projects. Overall, the firm serves refiners, water‑treatment providers, agricultural producers, and beverage manufacturers seeking efficient, environmentally friendly processing solutions.