MeritValue

Cavitation Technologies, Inc.

CVATdata completeness 88%17 fiscal years on file
The thesis, from the filings

Cavitation Technologies, Inc. earns about -112% on equity, but has diluted owners by 45% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$537,0001$1.62M2$413,0003$865,0003$203,0004
Net income−$649,0005−$619,0006−$2.04M7$439,0008−$113,0008
Operating cash flow−$250,0009−$484,00010−$423,00011$172,00012−$806,00012
Capital expenditure$128,00013————
Free cash flow (derived)−$378,0009————
Total debt—$150,00014$145,00015$269,00016$261,00016
Cash & equivalents$1.36M17$441,00018$18,00019$179,00020$249,00020
Diluted shares197.2M248.7M281.7M284.3M286.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$0
your share of equity
Profit it earned you last year
−$0
Free cash flow it threw off
—
Debt you’d be carrying
$0.01

10 shares is a claim on $0 of net worth that earned you −$0 last year, against $0.01 of debt.

iii. Is this a good business?
Moat signal · return on equity
-112% avg · 5y
FY21 —FY22 -60%FY23 —FY24 —FY25 -164%

It earned an average -112% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+45% shares · 5y

Share count is up 45% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 74% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K/A · period ending 2021-06-30 · accession 0001683168-23-000727 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0001683168-23-006921 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0001683168-24-006768 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2025-06-30 · accession 0001683168-25-007298 (Revenues)
  5. 10-K/A · period ending 2021-06-30 · accession 0001683168-23-000727 (NetIncomeLoss)
  6. 10-K · period ending 2022-06-30 · accession 0001683168-23-006921 (NetIncomeLoss)
  7. 10-K · period ending 2023-06-30 · accession 0001683168-24-006768 (NetIncomeLoss)
  8. 10-K · period ending 2024-06-30 · accession 0001683168-25-007298 (NetIncomeLoss)
  9. 10-K/A · period ending 2021-06-30 · accession 0001683168-23-000727 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0001683168-23-006921 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-06-30 · accession 0001683168-24-006768 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-06-30 · accession 0001683168-25-007298 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K/A · period ending 2021-06-30 · accession 0001683168-23-000727 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-06-30 · accession 0001683168-23-006921 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-06-30 · accession 0001683168-24-006768 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-06-30 · accession 0001683168-25-007298 (LongTermDebtNoncurrent)
  17. 10-K/A · period ending 2021-06-30 · accession 0001683168-23-000727 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-06-30 · accession 0001683168-23-006921 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-06-30 · accession 0001683168-24-006768 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-06-30 · accession 0001683168-25-007298 (CashAndCashEquivalentsAtCarryingValue)