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Cavitation Technologies Inc (CVAT+2.47%). has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $76,000 from $192,000 in the same quarter the previous year. The decrease is attributed to fewer purchase orders fulfilled following the assignment of certain patents to Desmet.
Cost of revenue for the quarter was $13,000, representing 17% of sales, compared to 18% in the same quarter of the previous year. This reflects a proportional decrease in cost relative to the decrease in revenue.
The company reported a gross profit of $63,000 for the quarter, compared to $158,000 in the previous year, with the decline attributed to reduced sales.
A gain of $880,000 was recorded from the assignment of certain patents to Desmet, which significantly impacted the company's net income.
General and administrative expenses increased to $346,000 from $172,000, primarily due to stock compensation and increased legal fees.
Research and development expenses were $16,000 for the quarter, compared to no expenses in the previous year, reflecting ongoing project developments.
Net income for the quarter was $579,000, up from a net loss of $16,000 in the previous year. This increase is primarily due to the gain on the patent assignment.
Cash provided by investing activities was $880,000, while cash used in operating activities was $376,000.
Cavitation Technologies had cash of $681,000 as of December 31, 2024. The company acknowledges its dependence on its business plan and potential financing to meet future obligations.
The filing also details agreements with Desmet, including a patent assignment and license back agreement, which impacts future sales of Nano reactors.
Cavitation Technologies continues to focus on expanding its technology applications in water treatment and alcoholic beverages, highlighting its strategic partnerships and ongoing projects.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cavitation Technologies Inc quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.