Cavitation Technologies Q1 FY2027: $208K Loss, $94K Cash, Going Concern Reiterated
CVAT sits 48% above its 52-week low of $0.022.
Summary
Cavitation Technologies reported a $208,000 net loss on zero revenue for the September 2026 quarter, with $94,000 of cash and a reiterated going-concern warning. The company funded itself by selling 4,666,665 shares at $0.03 and drawing a new $74,000 bridge note while the $35 million BrightFlixx tender offer remains uncommenced.
Key Events · Earnings and Guidance · CVAT
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Zero Revenue, $208K Quarterly Loss
Revenue was $0 versus $3,000 a year earlier; net loss narrowed to $208,000 from $258,000 as operating expenses fell to $165,000 from $252,000.
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Going Concern Doubt Reiterated
Management states existing cash will not sustain operations for the twelve months following issuance, and the auditor raised substantial doubt on the June 30, 2026 statements. Stockholders' deficit widened to $739,000.
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$140K Raised at $0.03 Per Share
Five accredited investors bought 4,666,665 shares for $140,000 and forfeited 2,499,999 warrants struck at $0.045. A consultant received 500,000 shares worth $22,000.
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New $74K Bridge Note at 24% Interest
The July 13, 2026 note netted $65,000 after $9,000 of costs, matures May 15, 2027 and carries default terms that raise principal by 150% and allow conversion at 65% of the lowest closing bid.
Analysis · CVAT · Industrial Applications And Services
The quarter itself is tiny — zero revenue, a $208,000 net loss and $94,000 of cash — but the going-concern language is the point: management states existing cash will not sustain operations for the next twelve months, and the auditor raised the same doubt on the June 30, 2026 statements. The company is only still operating because it keeps selling stock and borrowing: $140,000 from 4,666,665 shares at $0.03 and $65,000 net from a new $74,000 bridge note carrying 24% stated interest. That bridge note is the sharpest term in the filing — on default the principal is increased by 150% and becomes convertible at 65% of the lowest closing bid over the prior ten days. Against that backdrop, the $35 million BrightFlixx tender offer is the only path to a real exit, and it has still not commenced; it needs 90% of shares tendered, CFIUS clearance and the concurrent Alchemy deal to close.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. 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 $0.03 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $10.3M. The 52-week trading range was $0.02 to $0.11. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.