Executive Summary
Cavitation Technologies (CVAT) reported a positive QQ3 2024 bottom line amid a very small revenue base. Revenue reached $519 thousand, up 750% year-over-year and 170% quarter-over-quarter, underscoring a meaningful top-line uptick from the previous quarters. Gross profit of $512 thousand delivered a robust gross margin of approximately 98.65%, driving an operating income of $333 thousand and net income of $331 thousand, with an EPS of $0.0012 for the quarter. The result suggests the company achieved meaningful operating leverage at the current run-rate, aided by a lean cost structure (R&D $9k, G&A $170k) and limited selling/marketing expenditure.
Key Performance Indicators
QoQ: 170.31% | YoY:750.82%
QoQ: 224.05% | YoY:924.00%
QoQ: 2 478.57% | YoY:249.33%
QoQ: 2 168.75% | YoY:230.31%
QoQ: 1 300.00% | YoY:233.33%
Key Insights
Revenue: $519k (YoY +750%, QoQ +170%); Gross Profit: $512k (Gross Margin ≈ 98.65%); Operating Income: $333k (Operating Margin ≈ 64.16%); Net Income: $331k (Net Margin ≈ 63.78%); EPS: $0.0012; Weighted Avg Shares: 284.29 million. Cash flow from operations: $176k; Free cash flow: $176k; Cash at period end: $183k. Balance sheet highlights: Total assets $275k; Total liabilities $1.13 million; Total stockholders’ equity -$0.855 million; Deferred revenue $382k; Short-term debt $70k; Long-term ...
Financial Highlights
Revenue: $519k (YoY +750%, QoQ +170%); Gross Profit: $512k (Gross Margin ≈ 98.65%); Operating Income: $333k (Operating Margin ≈ 64.16%); Net Income: $331k (Net Margin ≈ 63.78%); EPS: $0.0012; Weighted Avg Shares: 284.29 million. Cash flow from operations: $176k; Free cash flow: $176k; Cash at period end: $183k. Balance sheet highlights: Total assets $275k; Total liabilities $1.13 million; Total stockholders’ equity -$0.855 million; Deferred revenue $382k; Short-term debt $70k; Long-term debt $145k. Liquidity ratios: Current 0.21x, Quick 0.21x, Cash 0.186x. DSO 3.29 days; Payables days ~1,453 days; Cash conversion cycle (CCC) ≈ −1,450 days. Valuation/market multiples (as of QQ3 2024): P/S ≈ 7.78x; P/E ≈ 3.05x; Enterprise value multiple ≈ 12.22x. Earnings quality appears strong on this single-quarter basis but is anchored to a very small revenue base and a fragile balance sheet.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
519.00K |
750.82% |
170.31% |
| Gross Profit |
512.00K |
924.00% |
224.05% |
| Operating Income |
333.00K |
249.33% |
2 478.57% |
| Net Income |
331.00K |
230.31% |
2 168.75% |
| EPS |
0.00 |
233.33% |
1 300.00% |
Key Financial Ratios
operatingProfitMargin
64.2%
operatingCashFlowPerShare
$0
Management Commentary
Note: No earnings call transcript was provided in the data. As a result, management quotes or call-specific guidance are not available to corroborate the quantitative results. Readers should monitor communications from management for any forward-looking targets, licensing milestones, or capital strategy updates in subsequent filings or press releases.
Not available; no earnings call transcript provided in the data.
— N/A
Not available; no earnings call transcript provided in the data.
— N/A
Forward Guidance
There was no explicit quarterly or full-year guidance disclosed for QQ4 2024 in the provided materials. Given the quarter's lean cost structure and improving profitability on a tiny revenue base, upside hinges on sustainable revenue growth, license/commercial agreements, and monetization of the Nano Reactor/Nano Neutralization platforms across target end-markets (vegetable oils, renewable fuels, water treatment, etc.). Management commentary (if provided in future filings or calls) should be weighed against liquidity risk evidenced by the balance sheet (Total liabilities of $1.13 million vs. cash of $0.183 million). Key factors to monitor include: (i) any move to secure additional working capital or debt facilities without material equity dilution, (ii) evidence of recurring revenue streams or backlog, (iii) progress toward commercialization milestones for core technologies, and (iv) changes in deferred revenue balance that may signal customer prepayments or revenue recognition timing.