Cavitation Technologies, Inc. Provides Corporate Update
CHATSWORTH, CA, Nov. 02, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Cavitation Technologies, Inc. ("CTi" or the "Company") (OTCQB: CVAT), a leading ESG driven company, which designs and manufactures innovative flow-through nano-technology systems for fluid processing applications worldwide, is pleased to provide a corporate shareholder update.
Cavitation Technologies, Inc. (CTi) is a “Clean-Tech” company developing and marketing new cutting-edge technologies to lessen the environmental impact of large-scale industrial liquid-processing industries such as water treatment, vegetable oil refining, renewable fuels, and alcoholic beverages. We’ve developed proprietary technologies such as Nano Neutralization® and cavitation systems comprising the Nano Reactor®, all which at its core offer the following:
Reduced operational costs;
Alleviates environmental impact;
Easy integration into existing operations.
Neil Voloshin, CTi’s CEO, has commented, “Our mission is to improve the environment while helping clients reduce operating costs and increase yield in liquid process applications. Our Company is continuously working with our strategic partners to expand applications of our technology in various industries.”
Please click on the link below to see a brief explanation on how the Company’s technology works. https://youtu.be/H4UWUYkNMVw
Management has always taken a conservative approach to managing the Company’s resources in order to conserve cash to protect shareholder value. As reported on our recently filed annual report, the Company strengthened its balance sheet over the course of the last year, transforming a $411 thousand shareholder deficit in 2021 to a positive shareholder equity balance of more than $1 million for the fiscal year ended June 30, 2022. In addition, we have a clean capital structure with very little debt, and management is very focused on growing the Company without significantly diluting its shareholders. In addition, the Company tripled its revenue in the last year from $558,000 in 2021 to $1,665,000 in 2022. Based on the state of the Company today, revenues should continue to grow substantially in 2023 and it is the Company’s goal to be cash flow positive in the next twelve months.
Desmet Ballestra Group N.V.
The Desmet Ballestra Group is a strategic partner of Cavitation Technologies, Inc. (CTi) since 2010 and licensee of the company's vegetable oil refining technology.
In October 2021 we signed our fourth three-year renewal - license agreement with our strategic partner Desmet Ballestra Group, covering vegetable oil refining processes and biodiesel production. The Agreement provides Desmet an exclusive license and right to develop, design and supply Cavitation's NANO Neutralization® System which incorporates Nano Reactor® devices and newly designed Low-Pressure Nano (LPN) on a global basis in fats and oleo chemical applications. The agreement provides for a $500,000 annual licensing fee and is set to expire on October 1, 2024.
Desmet was acquired by Alfa-Laval
Enviro Watertek LLC
CTi has entered into a joint venture with Delaware Water Company, LLC in 2019 (https://www.envirowatertek.com). DWC is an established and innovative provider of water resources to the Permian Basin oil and gas industry. This JV aims to provide oil and gas producers a low-cost, more environmentally friendly approach to addressing brackish-produced water, while at the same time reducing the industry’s reliance on scarce freshwater resources. CTi’s patented technology in collaboration with processes developed by its joint venture partner results in high throughput, portable, and chemical-free loop systems that treat water and allow for its recycling to be produced back into the fracking of additional wells.
In July 2021 the Company completed financing of approximately $1,500,000, and this funding allowed CTi to enhance and accelerate the commercialization of its produced water treatment technology in the Permian Basin and to increase Cavitation's pro-rata participation in that commercialization.
Fracking industry has seen a significant growth over the past ten years, reaching daily water consumption volume of over 58 million barrels per day. Our newly designed Low Pressure Nano Reactor (LPN™) was specifically developed to be integrated into the produced water treatment system along with our proprietary chemical formulations and has depicted measurable and quantifiable advantages over industry standard processes and equipment.
The Company is looking to expand its operations in water remediation in Texas, New Mexico and California, utilizing a business model of recurring revenue stream based on processing of produced and frac water volumes and utilization.
Alchemy Beverages, Inc.
CTi and Alchemy Beverages, Inc (ABI) have entered into an exclusive global licensing, marketing and distribution rights of our patented technologies for the processing of alcoholic beverages. We have agreed to assist in the installation and maintenance of the Miniature Low Pressure Nano-Reactors (MLPN) to ABI and, whereas CTi has an ownership of approximately 20% of ABi shares and will receive royalty payments ranging from 1% to 3% on all net revenues, as defined in our license agreement for the life of the applicable patents. In addition, we will receive leasing, consulting, and manufacturing fees as defined in the licensing agreement. During our fiscal 2021 and 2022, we have received approval for several patent applications, protecting our technology and processing rights, expanding our broad portfolio of patents. ABi is currently completing another round of equity financing and we anticipate seeing revenues in fiscal year 2023.
ABi has developed a small table top home appliance unit Barmuze® utilizing MLPN, allowing consumers to experience a new way of enjoying wines and spirits, utilizing CTi’s patented technologies to molecularly restructure alcohol, convert harsh acids to pleasant tasting esters, and reduce levels of certain impurities commonly present in alcohol.
On June 29, 2018, we agreed to license Cameo Vodka to Alchemy Beverages Inc. Additionally, ABI has the exclusive global marketing and distribution rights of our patented technologies for developing various brands of alcoholic beverages.
Partnership International, Inc. (PI https://partnership-international.com/), is working with CTi in advancing their “H2O Cav-Unit” using Cavitation-Electrocoagulation technology to remediate water supply from brackish water resources. Towards this goal, PI/CTi carries out a Water Remediation Pilot and Feasibility Study in South Africa to be funded through United States Trade and Development Agency (“USTDA”), which is valued at $1.7 million dollars that aims to identify solutions to the decreased water supply and increased wastewater that is challenging Africa and other climate-vulnerable areas in need of desalinated water supply.
The project is sponsored by the University of Cape Town’s (UCT) Future Water Institute through its research site based at the Water Hub, Franschhoek, in the Western Cape of South Africa. The project team consists of Partnership International, Inc. (PI) and CVAT, along with local-subcontractor Alveo Water (Alveo) and University of Cape Town’s (UCT) Future Water Institute in Cape Town.
The City of Cape Town is reviewing privately operated plants because they are struggling with sewage treatment and new building development demands that require capacity for treatment. It could be a very significant project for Cape Town and Stellenbosch Municipalities.The proposed CVAT Water Remediation Pilot Feasibility Study and Implementation Plan will provide US-made replicable models for sustainable water management/distribution that address adverse water-related risks.
Addition of Management and Board
March 2022- an Agreement with Sustainable Development Partners, LLC ("SD Partners")
September 2021- Dr. R. Gerald Bailey has joined the Company's board of directors.
August 2022 - Peter N. Christos joins the Board of Directors, Jonathan Severn to join Advisory Board
October 2022 - the Appointment of James W. Creamer III as the Company's Chief Financial Officer
About Cavitation Technologies, Inc.
Founded in 2007, the company designs and manufactures innovative flow-through devices and systems, as well as develops processing technologies for use in edible oil refining, renewable fuel production, water treatment, and alcoholic beverage enhancement. https://www.cvatinfo.com/
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This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by terminology such as ''may,'' ''should,'' ''potential,'' ''continue,'' ''expects,'' ''anticipates,'' ''intends,'' ''plans,'' ''believes,'' ''estimates,'' and similar expressions, and include statements such as, We believe the addition of our technology in these sectors presents economic value to the company while also providing maximized returns for shareholders. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties, certain of which are beyond the Company's control. Actual results could differ materially from these forward-looking statements as a result of a variety of factors including, among others, our ability to perform the installation as anticipated, the state of the economy, the competitive environment and other factors described in our most recent Form 10-K and our other filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. In light of these risks and uncertainties there can be no assurances that the forward-looking statements contained in this press release will in fact transpire or prove to be accurate. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Cavitation Technologies, Inc.