Cavitation Technologies, Inc. Provides 2025 Business Review and Strategic Outlook for 2026

Rhea-AI Summary

Cavitation Technologies (OTCQB: CVAT) reported 2025 milestones and a strategic outlook for 2026. Key developments include completion and pilot testing of Cavitation Non-Thermal Plasma™ (CNTP™) at 20 GPM, formation of subsidiary XYRA Corp., entry into immersion cooling and digital payments, and ABI audit/commercial plans.

XYRA targets an institutional raise at an approximate $15M valuation and may seek up to $100M in H2 2026; CTi plans continued R&D, university collaborations, and potential strategic alternatives for subsidiary holdings.

Positive

• Completed CNTP™ development and initial testing at 20 GPM
• Expanded applications into immersion cooling, crypto mining, and fintech via XYRA
• XYRA targeting institutional raise at approximate $15M valuation
• ABI audited and planning full-scale Barmuze production in 2026

Negative

• XYRA and ABI not currently reflected on CTi balance sheet
• Planned $100M additional XYRA financing in H2 2026 is conditional on market/execution
• CNTP™ currently limited to 20 GPM pilot throughput pending scale-up for commercial deployment

CHATSWORTH, Calif., Feb. 03, 2026 (GLOBE NEWSWIRE) -- Cavitation Technologies, Inc. ("CTi" or the "Company") (OTCQB: CVAT), a leading provider of advanced fluid processing and water treatment technologies, today announced a summary of its 2025 milestones, reflecting a pivotal year of expansion as the Company advanced its Cavitation Non-Thermal Plasma™ (CNTP™) technology from development into pilot installations, supported by several key partnerships with global leaders across industrial and water treatment applications. In addition, the Company expanded into the immersion technology market, while also expanding into digital payment infrastructure and crypto-related applications through its subsidiary, XYRA Corp.

It is becoming increasingly clear that traditional systems are no longer enough. Water is becoming the new gold, emerging as one of the most critical resources of the next industrial era, reshaping economies and global sustainability, and CTi remains focused on improving how fluids are managed across industries.

We don’t change the way companies operate, we make their operations more efficient. Sustainable. Innovative. Chemical-free.

Cavitation Non-Thermal Plasma™: From Development to Pilots

One of CTi’s most important milestones in 2025 was the completion and initial testing of its Cavitation Non-Thermal Plasma™ technology. This system combines hydrodynamic cavitation with non-thermal plasma to generate highly reactive conditions within water and other fluids, enabling contaminants to be broken down without the use of chemicals.

CNTP™ is currently operating at 20 gallons per minute (GPM) and is scalable to higher flow rates. The technology is engineered to:

• Eliminate bacteria and viruses
• Reduce total dissolved solids (TDS)
• Lower turbidity
• Support chemical-free treatment processes

The completion of CNTP™ has enabled the Company to pursue applications across industrial water and wastewater remediation, crypto mining, agriculture, desalination, pharmaceuticals, PFAS (forever chemicals) removal, and high-precision electronics.

Expansion Beyond Water: Formation of XYRA Corp.

Recognizing the broad potential of CNTP™ technology, CTi established XYRA Corp. in September 2025 as a wholly owned subsidiary focused on deploying Cavitation Non-Thermal Plasma™ into next-generation immersion cooling and digital payment infrastructure applications.

XYRA targets advanced fluid applications in:

• Crypto mining data centers, providing cooling and lowering conductivity
• Digital infrastructure and immersion cooling
• Energy-intensive industrial systems
• Emerging fintech, blockchain, and data-driven environments

Entry into Fintech, and Digital Cross-Border Transfers

As CTi expanded its engagement with digital payments infrastructure, it became clear that remittance, settlement, and financial rails represented a parallel bottleneck in the same ecosystems, still relying on slow, costly, and outdated infrastructure. This insight led to the strategic evolution of XYRA into an AI-driven, quantum-secure remittance network, leveraging modern infrastructure to support instant, low-cost, cross-border value transfer.

In December 2025, XYRA announced several strategic initiatives, including:

• Partnerships aimed at modernizing crypto-related infrastructure
• Exploration of fintech and cross-border remittance ecosystems, particularly in North & South America (Mexico – first milestone)
• First AI-driven quantum secure remittance & tokenization network
  

Global cross-border payments remain slow, expensive, and vulnerable, often taking days to settle and costing an average of 6.5% in fees. At the same time, the market opportunity continues to grow, with:

• $905 billion in global remittances in 2024 (projected to exceed $1 trillion by 2030)
• Over $122 trillion in cross-border B2B payments
• An estimated $16 trillion in tokenized assets by 2030
  

XYRA’s platform aims to reduce settlement times, lower costs, and introduce the first credit card issuance directly linked to remittance flows, while addressing future security risks posed by quantum computing, and bringing secure, affordable financial access to millions who remain underserved by banking systems.

Vision for 2026

“Looking ahead to 2026, CTi plans to deepen strategic partnerships and pursue additional opportunities aligned with growing global demand for efficient, sustainable, and chemical-free solutions,” said Neil Voloshin, CEO of Cavitation Technologies, Inc.

The Company is expanding across several core application areas. In water treatment, CTi continues to strengthen and broaden its CNTP™ technology, while dedicating increased focus to produced and frac water applications through its Nano-Reactor systems. In parallel, CTi is increasing investment in research and development, supported by multiple university collaborations, with the objective of advancing CNTP™ toward commercial deployment in 2026.

XYRA Corp., CTi’s wholly owned subsidiary, is currently pursuing an institutional capital raise at an approximate valuation of $15 million. During the second half of 2026, XYRA anticipates pursuing additional financing of up to $100 million, subject to market conditions and execution milestones. XYRA’s business model is centered on rapid expansion within cross-border remittances and digital financial access. XYRA anticipates entering its initial revenue phase in the second half of 2026.

Separately, CTi has completed an audit of Alchemy Beverages, Inc. (ABI), which is currently raising capital to support the commercial launch of Barmuze, a smart kitchen appliance designed to enhance the quality and taste profile of spirits. ABI anticipates entering full-scale production of Barmuze in 2026.

CTi currently owns 100% of XYRA Corp. and approximately 20% of ABI, which also includes certain royalty and licensing interests. At present, neither XYRA Corp. nor ABI are reflected on CTi’s balance sheet. As both businesses continue to advance and mature, CTi may evaluate strategic alternatives such as spinning off ABI and XYRA shares to enhance CTi’s shareholder value.

About XYRA Corp.

XYRA Corp. is a Wyoming-based subsidiary of Cavitation Technologies, Inc., focused on identifying and capitalizing on opportunities within the crypto and digital technologies markets. The company holds an exclusive license for CTI’s patented Cavitation Non-Thermal Plasma™ (CNTP) technology for submerged fluid cooling applications, positioning it to serve both the cryptocurrency mining and data center immersion cooling industries. Powered by artificial intelligence and quantum-secure architecture, XYRA is building a platform that unifies fintech and remittances under one intelligent, compliant infrastructure, delivering real-time settlements, post-quantum encryption, and automated compliance for the global digital economy.

About Cavitation Technologies, Inc.

Founded in 2007, Cavitation Technologies, Inc. (OTCQB: CVAT), is a leading ESG company that designs and manufactures innovative flow-through nano-technology systems for fluid processing applications worldwide. The technology is designed for fluid processing across multiple industries: water treatment and remediation, agriculture, pharmaceuticals, oil & gas, edible oil refining, renewable fuels, alcoholic beverages enhancement, PFAS removal, and now, high-performance computing and digital asset infrastructure.

Our core products are Nano Reactor® systems, with scalable capacities ranging from 10 to 500 gallons per minute (GPM), and our latest advancement, Cavitation Non-Thermal Plasma™ technology, which currently operates at 20 GPM and is scalable to a larger flow. These systems effectively eliminate bacteria and viruses, reduce TDS levels, lower turbidity, and offer the removal of PFAS in multiple water remediation applications.

CTi holds over 40 patents issued domestically and internationally.

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Forward-Looking Statement
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. These forward-looking statements are based largely on the Company's expectations and are subject to many 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 install 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 transpire or prove to be accurate. The information in this release is provided only as of the release date, 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.

FAQ

What is Cavitation Technologies' CNTP™ pilot capacity and commercial timeline for CVAT?

CNTP™ is operating at 20 gallons per minute (GPM) in pilot tests. According to the company, R&D and university collaborations aim to advance CNTP™ toward commercial deployment during 2026, contingent on scale-up and validation milestones.

What does XYRA Corp.'s financing plan mean for CVAT shareholders (CVAT)?

XYRA is pursuing an institutional raise at an approximate $15M valuation and may seek up to $100M in H2 2026. According to the company, proceeds are intended to fund remittance platform roll-out and immersion cooling expansion, subject to market conditions.

How will XYRA's remittance network affect CTi's business strategy for CVAT?

XYRA expands CTi into digital payments and tokenization with a focus on instant, low-cost cross-border transfers. According to the company, the subsidiary plans AI-driven, quantum-secure remittance capabilities targeting North and South America, starting with Mexico as a milestone.

What is CTi's ownership stake in XYRA and ABI and how are they reported for CVAT?

CTi currently owns 100% of XYRA and approximately 20% of ABI. According to the company, neither XYRA nor ABI are presently reflected on CTi's balance sheet, though strategic alternatives, including spinoffs, may be evaluated.

When does CTi expect revenue from XYRA and what are the stated conditions for that forecast?

XYRA anticipates entering its initial revenue phase in the second half of 2026. According to the company, timing depends on execution milestones and market conditions, and planned additional financing may be pursued to support expansion.