One company met our criteria from the one 10-K annual report filed with the SEC on 6 October 2026. To qualify, a company must have filed an annual 10-K report on the target date and have a prior-year 10-K available for a direct year-over-year comparison.
SEC What Changed Methodology
Each company is scored on how similar its current annual filing text is to the prior year. Scores run from 0 to 1 — a score of 1 means the language is essentially unchanged; a lower score means more has changed. We flag three sections that carry the most disclosure signal: Business, Risk Factors, and MD&A. Recent research suggests that lower scores indicate that a company has made significant changes to their filings, these changes are often buried in the filings. If a company was to report positive news, they would likely do so in the form of a press release or statement on their website. The large changers have often underperformed in the market, while the stable-language filers have earned positive abnormal returns.
Key Takeaways
- Cavitation Technologies, Inc. (High) — The key message is that Cavitation Technologies is now openly warning it may not have enough cash to keep operating through mid-2027.
Ranking Table
| Rank | Company | CIK | Full Filing Similarity | Business Similarity | Risk Factors Similarity | MD&A Similarity | Most Changed Section | Assessment |
|---|---|---|---|---|---|---|---|---|
| 1 | Cavitation Technologies, Inc. | 1376793 | 0.997 | 0.994 | 0.994 | 0.987 | MD&A | high |
Cavitation Technologies, Inc.
| Rank | 1 |
|---|---|
| Lowest similarity section | MD&A |
| Assessment | high |
| SEC filings | 2026 10-K HTML/iXBRL (SEC page, raw text) | 2025 10-K HTML/iXBRL (SEC page, raw text) |
Cavitation Technologies’ latest filing is materially weaker on liquidity and operating performance. Management now says it may not have enough cash to last through June 2027, while cash on hand dropped sharply and losses widened as revenue fell and prior-year one-time patent gains disappeared. The business section also shows a leaner operating footprint, with fewer employees and much lower R&D spending.
Main Changes
- MD&A now says the company "does not believe it has enough cash and access to cash to sustain operations through June, 2027," a sharper liquidity warning than the prior year.
- Cash fell to $17,000 from $249,000, with operating cash use of $755,000 only partly offset by $523,000 from financing activities, versus prior-year cash of $249,000 and $880,000 from the Desmet patent assignment.
- The company says net loss widened to $1.404 million from $113,000, driven by lower revenue, higher operating expenses, higher interest expense, and the absence of the prior-year patent assignment gain.
- In Business, the company reduced full-time employees to two from three and cut R&D spending to $11,000 from $95,000, while the royalty waiver for former executives was extended through June 30, 2026 from June 30, 2025.
Watch Items
- The explicit cash runway warning suggests the company may need near-term financing or a major operating turnaround to avoid curtailing operations.
- Lower headcount and sharply reduced R&D spending point to tighter cost control, but also raise questions about product development momentum.
- The financing mix shifted toward common stock units and debt, which may increase dilution and leverage if losses persist.
Important Filing Changes
General and administrative expenses General and administrative expenses increased by $349,000 or 49.0%. The Increase is primarily attributable to the following: · Payroll expenses increased by $121,000 due to the employment of a previous officer of the Company to assist with product development, · Stock based compensation increased by $201,000 due to stock purchase warrants granted to certain of the Company’s employees and consultants and common stock issued to consultants for services rendered, · Legal fees increased by $43,000 due to patent activity and the expenses incurred with the assignment of patents to Desmet. · Travel expenses decreased by $20,000 due to a reduction in travel by our officers during the current year. Research and development expenses Research and development expenses increased by $34,000.
Actual results and the timing of certain events could differ materially from those anticipated in these forward-looking statements. 10 Tender Offer On August 14, 2026, we entered into a definitive tender offer agreement (the “Agreement”) with European Guarantee Services S.à.r.l. (“Purchaser”), pursuant to which the Purchaser agreed to acquire or seek to acquire all of the outstanding shares of our common stock (the “CTI Shares”) for a total purchase price of $35 million in cash (less certain indebtedness and our accrued liabilities) (the “Net Price”). Under the Agreement, the Purchaser will commence an offer to purchase the CTI Shares (the “Offer”) within 10 business days after the TO has met the regulatory requirements of the SEC and will remain open during an offer period of at least 60 business days to give shareholders an opportunity to review this Agreement, the Offer and the offer documents.
Under both the Reserved License and the Grant-Back License, the Company will have a worldwide, exclusive, transferable, and royalty-free license and right to design, build, use, export, improve, sell, and market Nano Reactor® devices, as well as Nano Reactor® systems and products that incorporate or utilize Nano Reactor® devices, limited to uses and applications within one or more of the Licensed Fields. As a result of this agreement, the Company expects that Desmet will start to manufacture the Nano reactors by itself and sale of Nano reactors to Desmet by the Company will significantly be reduced in future periods. We will continue to own and operate a large portfolio of patents and intellectual property rights in applications not related to vegetable oil refining.
10 Tender Offer On August 14, 2026, we entered into a definitive tender offer agreement (the “Agreement”) with European Guarantee Services S.à.r.l. (“Purchaser”), pursuant to which the Purchaser agreed to acquire or seek to acquire all of the outstanding shares of our common stock (the “CTI Shares”) for a total purchase price of $35 million in cash (less certain indebtedness and our accrued liabilities) (the “Net Price”). Under the Agreement, the Purchaser will commence an offer to purchase the CTI Shares (the “Offer”) within 10 business days after the TO has met the regulatory requirements of the SEC and will remain open during an offer period of at least 60 business days to give shareholders an opportunity to review this Agreement, the Offer and the offer documents. Under the Agreement, the Offer will contain an Initial Offer Price per Share determined by dividing the Net Price by the total number of CTI Shares outstanding as of the date of the Agreement.
BUSINESS Cavitation Technologies, Inc. (referred to herein, unless otherwise indicated, as “the Company,” “CTi,” “we,” “us,” and “our”) is a Nevada corporation originally incorporated under the name Bio Energy, Inc. We are a process and product development firm that has developed, patented, and commercialized environmentally friendly technology-based systems that are designed to serve large, growing, global markets such as vegetable oil refining, renewable fuels, water treatment, wines and spirits enhancement, algae oil extraction, water-oil emulsions and crude oil yield improvement. Our systems are designed to process industrial liquids at a reduced processing time, lower operating cost, improved yield while operating in environmentally friendly manner.
BUSINESS Cavitation Technologies, Inc. (referred to herein, unless otherwise indicated, as “the Company,” “CTi,” “we,” “us,” and “our”) is a Nevada corporation originally incorporated under the name Bio Energy, Inc. We are a process and product development firm that has developed, patented, and commercialized environmentally friendly technology-based systems that are designed to serve large, growing, global markets such as renewable fuels, water treatment, wines and spirits enhancement, algae oil extraction, water-oil emulsions and crude oil yield improvement. Our systems are designed to process industrial liquids at a reduced processing time, lower operating cost, improved yield while operating in an environmentally friendly manner.
Why SEC Filing Changes Matter
Research by Cohen et al. (Lazy Prices, 2020) — using the complete history of SEC filings from 1995 to 2014 — shows that when firms make active changes to their annual disclosures, those changes convey an important signal about future operations and returns. A portfolio that shorted "changers" and bought "non-changers" earned over 22% per year in annual alpha historically. Changes to the Risk Factors section, Business description, and language referring to the executive team were especially informative. Critically, these returns accrued gradually as information was later revealed through news and earnings — not at the time of filing — suggesting many investors remain inattentive to these simple, public signals. This snapshot is a starting point for deeper investigation, not a buy or sell recommendation.
For more like this, see the full SEC What Changed archive, browse more equity research reports, or subscribe to Quantitative Research Notes for new filing-change alerts as soon as they publish.
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