Cavitation Technologies 10-K: Going Concern Warning, $1.4M Loss, and Material Weaknesses Amid $35M Tender Offer
CVAT sits 67% above its 52-week low of $0.022.
Summary
Cavitation Technologies' FY2026 10-K shows revenue of just $3,000, a $1.4 million net loss, and a going concern warning from its auditor. The pending $35 million tender offer is now the company's primary lifeline.
Key Events · Earnings and Guidance · CVAT
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Going Concern Warning
Auditor and management state substantial doubt about the company's ability to continue as a going concern. Management says it does not believe it has enough cash to sustain operations through June 2027.
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Revenue Collapse
FY2026 revenue was $3,000, down 98.5% from $203,000 in FY2025. The company generated no revenue from its Desmet, Enviro WaterTek, or Alchemy Beverages agreements.
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Net Loss Widens
Net loss was $1,404,000 for FY2026, compared to $113,000 in FY2025. The prior year included an $880,000 gain on patent assignment that did not recur.
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Material Weaknesses
Three material weaknesses in internal control over financial reporting: lack of in-house technical accounting personnel, ineffective segregation of duties, and no functioning independent audit committee.
Analysis · CVAT · Industrial Applications And Services
The audited FY2026 results reveal a company in severe distress: revenue collapsed to $3,000 from $203,000, the net loss widened to $1.4 million, and cash dwindled to $17,000. Both management and the auditor state substantial doubt about the company's ability to continue as a going concern, with management explicitly saying it does not believe it has enough cash to sustain operations through June 2027. Three material weaknesses in internal controls are disclosed, including no functioning independent audit committee. The $35 million tender offer from European Guarantee Services remains pending and subject to CFIUS review, but the financial deterioration disclosed here raises the stakes for shareholders — if the deal fails, the company faces potential insolvency. The bridge note carries a 150% default penalty and the convertible notes have variable conversion features, adding further risk.
How filings like this one have moved
In the 30 days to Oct 6, 2026, 42.7% of the 302 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.70%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CVAT was trading at $0.04 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $11.2M. The 52-week trading range was $0.02 to $0.11. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.