Cadiz Inc. (CDZI): Business Model Canvas [Dec-2025 Updated]

You're looking at a fascinating pivot: Cadiz Inc. (CDZI) is shifting from a land company to a serious player in Southwestern US water infrastructure, and the numbers from late 2025 tell the whole story. They are sitting on 45,000 acres overlying a huge aquifer, backing up their plan to deliver reliable supply through projects like the Northern Pipeline, which they aim to finish by the end of 2026. With 85% of that pipeline capacity already contracted and recent ATEC system sales hitting $10.1 million year-to-date Q3 2025, the question is how they finance this massive buildout, especially with private investors lined up for up to $400 million in equity. Dive into the Canvas below to see exactly how Cadiz Inc. is structuring its value creation, from tribal partnerships to long-term, fixed-price water contracts.

Cadiz Inc. (CDZI) - Canvas Business Model: Key Partnerships

You're looking at the critical alliances Cadiz Inc. has locked in to move the Mojave Groundwater Bank and other ventures from planning to construction, which is the core of their near-term value proposition. These partnerships are about de-risking massive infrastructure spend through shared capital and guaranteed offtake.

The financing structure for the Mojave Water Infrastructure Company, LLC (MWI), the special-purpose entity for the groundwater bank, is heavily reliant on these key partners. The Lytton Rancheria of California has committed the first tranche of funding, which is a significant vote of confidence. This initial investment is structured as an unsecured convertible loan, which is set to convert into an equity interest in MWI upon the execution of project financing agreements expected in the fourth quarter of 2025.

Cadiz Inc. is also deep in the final stages of diligence with other private infrastructure investors. This group is targeted to provide a substantial portion of the remaining equity needed to fully fund construction, which is projected to start in 2026. This tiered approach, bringing in the Tribe first, was a deliberate move to maintain construction momentum despite potential delays elsewhere.

For water offtake, the Memorandum of Understanding (MOU) with EPCOR NR Holdings Inc. is crucial for securing demand for the Southern Pipeline. This MOU outlines an exclusive marketing agreement for a specific volume of conserved water destined for Arizona off-takers. EPCOR is also expected to contribute capital toward the Southern Pipeline construction itself, which is a nice alignment of interests.

To access municipal debt for the project, Cadiz is working with the Victor Valley Wastewater Reclamation Authority (VVWRA). VVWRA, whose members include the Cities of Victorville and Hesperia and the County of San Bernardino, voted in favor of forming a Joint Powers Authority (JPA) to facilitate this debt access. The formation of this new JPA was anticipated to be completed in the months following the May 2025 shareholder letter.

On the energy front, the partnership with RIC Energy targets a major new revenue stream at Cadiz Ranch. This collaboration is focused on developing what is planned to be California's largest green hydrogen production facility. Cadiz's role is to supply the necessary land and water resources, which is a key input for the solar-powered electrolysis process.

Here's a quick look at the hard numbers associated with these primary relationships as of late 2025:

Partner Entity	Nature of Partnership	Key Financial/Statistical Metric (as of late 2025)	Project/Asset Involved
Lytton Rancheria of California	Project Financing (First Tranche Equity)	Up to $51 million in unsecured loan proceeds	Mojave Groundwater Bank (via MWI)
Private Infrastructure Investors	Project Financing (Additional Equity)	Finalizing diligence for up to $400 million in equity capital	Mojave Groundwater Bank (via MWI)
EPCOR NR Holdings Inc.	Water Offtake / Pipeline Contribution (MOU)	Exclusive rights to market 25,000 AFY of water supply	Southern Pipeline / Mojave Groundwater Bank
Victor Valley Wastewater Reclamation Authority (VVWRA)	Municipal Debt Access Structure	VVWRA voted to form a Joint Powers Authority (JPA)	Project Construction Financing
RIC Energy	Green Hydrogen Development	Cadiz to supply up to 500 acre-feet of water per year	Hydrogen Production Facility
RIC Energy	Green Hydrogen Production Goal	Facility aims to produce up to 50 tons of hydrogen per day	Hydrogen Production Facility

The total equity capital being raised through MWI, which includes the Lytton investment, is targeted at approximately $450 million. The RIC Energy facility development is proceeding, with environmental permitting documents expected to be submitted in early 2026. The land component for the RIC Energy project involves up to 3,000 acres of Cadiz Ranch for solar power generation.

You should track the closing of the MWI financing diligence in Q4 2025, as that is the trigger for construction commencement in 2026. Finance: draft 13-week cash view by Friday.

Cadiz Inc. (CDZI) - Canvas Business Model: Key Activities

You're looking at the core engine driving Cadiz Inc.'s value proposition right now, which is heavily weighted toward project execution and the rapidly growing water treatment segment. Honestly, the Key Activities are split between the long-term infrastructure build and the immediate, revenue-generating filtration business.

Developing the Mojave Groundwater Bank (MGB) infrastructure

This is the big one, the foundational asset Cadiz Inc. is building through its Mojave Water Infrastructure Company (MWI) subsidiary. The activity here is securing the massive capital required to move this from planning to operation. You need to see the commitment to get the shovel in the ground; that's the key activity right now.

The MGB project sits above one of the largest known freshwater aquifers in the U.S., estimated to hold between 30 and 50 million acre-feet of high-quality groundwater. Management estimates the total construction capital required for the MGB facilities could be around $800 million. A major step in unlocking this was executing a definitive agreement with the Lytton Rancheria of California for up to $51 million as the first tranche of financing, which is structured as a convertible loan into MWI equity. Cadiz Inc. is actively completing diligence with private infrastructure investors for up to an additional $400 million in equity capital for MWI.

MGB Financing/Development Metric	Amount/Status (As of Late 2025)
Estimated Total Construction Capital Required	Approximately $800 million
Lytton Rancheria First Tranche Investment	Up to $51 million
Target Total Equity Capital Raise via MWI	Up to approximately $450 million (combined with debt/grants)
Private Infrastructure Investor Diligence Target	Up to $400 million
Initial Proceeds Expected for Development Reimbursement	Approximately $15 million
Target Water Delivery Date	2027

Constructing the Northern Pipeline (target completion end of 2026)

The Northern Pipeline conversion is a critical near-term activity because securing capacity commitments allows Cadiz Inc. to pull in the third-party capital needed for construction. They've made real progress here, locking in most of the delivery volume.

The stated aggressive schedule targets completion of the Northern Pipeline construction by the end of 2026, with initial water delivery as early as 2026. The pipeline has a total capacity of 25,000 AFY. As of mid-2024, Cadiz Inc. had secured water purchase agreements for 85% of this capacity, amounting to 21,275 acre-feet per year (AFY) under take-or-pay contracts spanning 40 - 50 years. The expected net revenue from these secured agreements is approximately $850 per AF in 2024 dollars. Furthermore, the company secured 180 miles of steel pipe from the Keystone XL project, which helped avoid a 25% tariff increase.

The Southern Pipeline activity is also advancing, with a Memorandum of Understanding (MOU) executed for the purchase and sale of 25,000 AFY of water supply.

Manufacturing and selling ATEC water filtration systems

This segment is the current revenue engine, showing significant operational scaling. The key activity is ramping up production to meet demand for their groundwater treatment solutions, which is clearly working based on the latest numbers.

For the first nine months ending September 30, 2025, ATEC revenue reached $10.1 million, a substantial increase from $3.5 million over the same period in 2024. In Q3 2025 alone, revenue was $4.0 million, marking a 42% year-over-year increase from Q3 2024's $2.8 million. This volume growth is translating directly to better margins; Q3 2025 gross margin was approximately 50%, up from 32% in the prior year period. The segment shipped 308 filtration systems year-to-date 2025, more than double the volume from 2024. This operational success meant Q3 2025 was the second consecutive quarter of operating profit for ATEC.

Here's a quick look at the segment's financial performance:

• Year-to-date ATEC Revenue (9 months 2025): $10.1 million
• Q3 2025 Gross Margin: Approximately 50%
• Total Systems Shipped (YTD 2025): 308
• Acquisition Cost (2022): About $2 million

Securing project financing and government regulatory approvals

This activity runs parallel to MGB development, focusing on raising the necessary equity and debt while clearing regulatory hurdles. You've seen recent equity raises that provide near-term liquidity to bridge to the larger project financing.

Total company revenue for the nine months ending September 30, 2025, was $11.2 million, representing a 131% year-over-year increase, largely due to ATEC. However, the consolidated entity reported a net loss of $7.1 million for Q3 2025, with cash used in operations of $12 million for the first nine months of 2025. To support development, Cadiz raised net proceeds of approximately $22.1 million in November 2024 and $18.3 million in March 2025 through registered direct offerings. On the regulatory front, the federal right of way process for the Northern Pipeline before the Bureau of Land Management is anticipated to wrap up in the next 8 weeks as of November 13, 2025.

Managing 45,000 acres of land and agricultural operations

While the primary focus is water infrastructure, the land management activity provides an asset base and minor revenue contribution. Cadiz Inc. owns 45,000 acres of land in California. The company has vested water rights to access 2.5 million acre-feet of groundwater, which supports about 10,000 acres of farming operations. For context, in fiscal year 2024, revenues included sales from the alfalfa crop alongside ATEC sales. You won't see a specific 2025 revenue line item for agriculture alone, as ATEC's growth drove the reported total revenue increase.

Finance: draft 13-week cash view by Friday.

Cadiz Inc. (CDZI) - Canvas Business Model: Key Resources

You're looking at the core assets Cadiz Inc. (CDZI) brings to the table, the stuff that makes their business model possible. Honestly, it's all about the ground they sit on and the water underneath it, plus the tech to move and clean it.

Land and Water Rights Foundation

The physical foundation for Cadiz Inc. (CDZI) is substantial, centered around their holdings in the Mojave Desert. They control 45,000 acres of land overlying a major aquifer. This land supports their primary resource: vested water rights totaling 2.5 million acre-feet of supply. The expected annual yield from the Cadiz Ranch aquifer is projected at 50,000 acre-feet over the next 50 years, contingent on environmental reviews.

Here's a quick look at the core resource base as of late 2025:

Resource Component	Metric/Amount	Date/Context
Land Acreage	45,000 acres	Owned in California
Vested Water Rights	2.5 million acre-feet	Total groundwater supply
Estimated Annual Yield	50,000 acre-feet	Over the next 50 years
Groundwater Storage Capacity	1 million acre-feet	Reported as of Q2 2025

Conveyance Infrastructure

Moving that water requires pipes, and Cadiz Inc. (CDZI) has secured significant mileage. They have 220 miles of existing underground pipeline assets for conveyance. Furthermore, they secured 180 miles of steel pipe from the Keystone XL project in Q1 2025, avoiding a potential 25% tariff increase.

The construction timelines for the conveyance system are set:

• Northern Pipeline completion target: end-2026.
• Southern Pipeline completion target: end-2027.

ATEC Water Systems Technology

The proprietary water filtration technology, ATEC Water Systems, is a growing revenue driver. For the nine months ending September 30, 2025, ATEC revenue hit $10.1 million, a significant jump from $3.5 million in the same period in 2024. The third quarter of 2025 alone saw ATEC revenue of $4.0 million, up from $2.8 million in Q3 2024.

The operational efficiency is reflected in the margins and volume:

Metric	Q3 2025 Value	Year-to-Date (9M 2025) Value
Revenue	$4.0 million	$10.1 million
Gross Margin	Approximately 50%	N/A
Filtration Systems Shipped	N/A	308 systems

The division doubled its production capacity with a new 20,000 sq ft facility as of early 2025.

Mojave Water Infrastructure Company (MWI) Financing Entity

Mojave Water Infrastructure Company (MWI) is the special-purpose entity Cadiz Inc. (CDZI) formed to finance, construct, and own the pipeline and storage assets. This structure is designed to bring in significant outside capital.

Financing milestones achieved or targeted for MWI/related entities include:

• Secured first tranche of construction financing from Lytton Rancheria of California: up to $51 million.
• Total equity capital being raised through MWI targeted up to approximately $450 million.
• A separate Letter of Agreement targeted up to $175 million from a lead investor into the related entity MGSC.
• Total expected equity capital from various investors, including Tribes, targeted up to $401 million.

As of September 30, 2025, Cadiz Inc.'s balance sheet showed Total Long-Term Debt, net of $60.3 million, with $40.4 million of that convertible into common shares, maturing June 30, 2027. Finance: draft 13-week cash view by Friday.

Cadiz Inc. (CDZI) - Canvas Business Model: Value Propositions

You're looking at the core value Cadiz Inc. (CDZI) brings to the table, especially as they move into the construction phase for their major projects in late 2025. This isn't just about selling water; it's about creating a resilient, long-term supply chain in a region facing chronic dryness. Here's the quick math on what they are offering to their customers and partners.

Reliable, New Water Supply for Drought-Prone Southwestern US

Cadiz Inc. (CDZI) anchors its value proposition on owning substantial physical assets that directly address water scarcity in the Southwestern US. You have to look at the scale of what they control right now.

The company's foundational assets include:

• Possession of 45,000 acres of land in California.
• Vested water rights permitting the extraction of 2.5 million acre-feet of groundwater supply.
• A network of 220 miles of existing underground pipeline assets.

The expected annual yield from the Cadiz Ranch aquifer is estimated at 50,000 acre-feet over the next 50 years, contingent on environmental reviews. This is the source of their new, reliable supply. Also, their Mojave Groundwater Bank project is expected to become the largest groundwater bank in the Southwest. This bank is designed to store up to 1 million acre-feet of water. That's a serious buffer against future dry years.

Large-Scale Water Storage Capacity

Storage is as critical as supply in the West, and Cadiz Inc. (CDZI) has built capacity into its model. The company reports a groundwater storage capacity of 1 million acre-feet within its portfolio. This capacity is being leveraged through the Mojave Groundwater Bank project, which will allow for the storage of imported water. The Northern Pipeline, which stretches approximately 220 miles northwest from Cadiz, has a total capacity of 25,000 AFY (Acre-Feet Per Year). Furthermore, the planned Southern Pipeline is designed to enable the storage of an additional one-million acre-feet of imported water.

Cost-Effective Water Treatment via ATEC Filtration Technology

The ATEC Water Systems subsidiary provides a value proposition centered on making contaminated groundwater usable, which is a growing necessity given regulatory tightening. This segment is showing strong operational leverage as of late 2025. For the first nine months of 2025, ATEC generated $10.1 million in revenue, more than doubling its $3.5 million revenue from the same period in 2024. Honestly, that growth is impressive.

Here's a snapshot of ATEC's recent performance:

Metric	Q3 2025 Value	Year-to-Date (9 Months) 2025 Value
Revenue	$4.0 million	$10.1 million
Systems Shipped	N/A	308 systems
Gross Margin	Approx. 50%	N/A

The technology, which uses patent-pending filter media processes, is described as the most cost-effective solution for removing contaminants like arsenic, iron, and manganese. ATEC systems have the capability to process up to 10 million gallons per day. Cadiz acquired ATEC's assets back in Q4 2022 for $2 million, and its recent operational profitability confirms the market value of this treatment capability.

Long-Term, Fixed-Price Water Supply Contracts

For customers, the certainty of supply is paramount, and Cadiz Inc. (CDZI) is locking in long-term commitments. The water supply agreements for the Northern Pipeline are structured as "take-or-pay" contracts spanning 40 - 50 years. For example, the agreement with Solstra Communities has a term of forty (40) years from the delivery commencement date. This duration offers significant stability to the purchasing water agencies.

Contracted capacity for the 25,000 AFY Northern Pipeline is currently at 85%, totaling 21,275 acre-feet per year under contract as of late 2025. The expected net revenue for this water, in 2024 dollars, is approximately $850 per AF, subject to annual adjustments pegged to an index like the CPI Water and Sewer Index. This indexing helps manage the fixed-price responsibility for Cadiz Inc. (CDZI) over the long haul.

Tribal-Led Infrastructure Model Promoting Water Equity

A key differentiator in the Mojave Groundwater Bank financing is the partnership with Native American tribes, which establishes a novel business model. Cadiz Inc. (CDZI) secured a definitive agreement with the Lytton Rancheria of California for up to $51 million in capital as the first tranche of financing for the Mojave Groundwater Bank. This $51 million loan is convertible into membership interests in Mojave Water Infrastructure Company, LLC (MWI). This investment is the initial phase of up to approximately $450 million in total equity capital being raised for the project. Initial proceeds of about $15 million are expected to reimburse Cadiz for prior development expenses. To be fair, this structure is intended to give Tribal leadership a seat at the table, potentially leading to majority control over the infrastructure tied to the bank. As a commitment fee, Cadiz will issue 600,000 shares of common stock, plus 25,000 shares for every $1 million funded.

Finance: draft 13-week cash view by Friday.

Cadiz Inc. (CDZI) - Canvas Business Model: Customer Relationships

You're looking at the core relationships Cadiz Inc. has built to secure its future cash flows and project financing, which is critical for a capital-intensive water infrastructure play. These aren't simple transactional sales; they are deep, multi-decade commitments and equity partnerships.

Direct, long-term contracts with public water entities (take-or-pay)

The foundation of the long-term revenue for the Mojave Groundwater Bank Project relies on securing capacity commitments from public water entities. These are structured as take-or-pay agreements, meaning the customer commits to paying for the water whether they take it or not, which is essential for securing construction financing.

• Secured water purchase agreements for 85% of the Northern Pipeline capacity as of August 2024.
• Cumulative contracted volume via the Northern Pipeline is 21,275 acre-feet per year (AFY).
• These agreements are structured to deliver an annual supply over 40 - 50 years.
• Expected net revenue upon construction completion is approximately $850 per AF in 2024 dollars, subject to annual adjustments.
• A Memorandum of Understanding (MOU) was executed for the purchase and sale of 25,000 AFY of water supply via the Southern Pipeline with EPCOR.

Strategic partnerships with Tribal Nations for co-ownership

Cadiz Inc. has established a novel relationship structure for its Mojave Water Infrastructure Company (MWI) by bringing in Tribal Nations as equity partners, which is a significant relationship differentiator for large infrastructure development.

• Secured the first tranche of construction financing through a partnership with the Lytton Rancheria of California.
• Lytton Rancheria's initial investment is $51 million, structured as an unsecured convertible loan.
• This investment converts into an ownership interest in MWI, the LLC financing, constructing, and owning the pipeline and storage assets.
• The $51 million represents the initial phase of up to $450 million in total equity capital being raised for the groundwater bank.
• Initial proceeds of about $15 million from this investment are expected to reimburse Cadiz for prior development expenses.

Direct sales and service for ATEC filtration systems

The ATEC Water Systems subsidiary engages in direct sales and service relationships, characterized by increasing order volume and improving margins as the technology gains traction in treating groundwater contamination.

Here's the quick math on ATEC's performance through the first nine months of 2025, which reflects the strength of these customer relationships:

Metric	9 Months Ended September 30, 2025	9 Months Ended September 30, 2024
Year-to-Date Revenue	$10.1 million	$3.5 million
Q3 2025 Revenue	$4.0 million	$2.8 million
Filtration Systems Shipped (YTD)	308 systems	Volume less than 154 systems (less than double 2024 volume)
Q3 2025 Gross Margin	Approximately 50%	32%

The subsidiary shipped systems for three new sales contracts totaling $1.6 million, with systems scheduled for delivery in 2025.

High-touch relationship management for large infrastructure investors

Managing relationships with large-scale private infrastructure investors is crucial for funding the multi-year construction of the Mojave Groundwater Bank (MWI). This involves intensive due diligence and structuring complex capital stacks.

• Cadiz Inc. entered final stages of diligence with private infrastructure investors for up to $400 million in equity capital in MWI.
• Completion of diligence and satisfaction of conditions for the initial closing of this tranche are expected in Q4 2025.
• The company raised net proceeds of approximately $18.3 million and $22.1 million from registered direct offerings in March 2025 and November 2024, respectively, to support near-term plans.

If onboarding takes 14+ days, churn risk rises, and for these infrastructure deals, that means delays in securing the remaining $400 million equity tranche.

Cadiz Inc. (CDZI) - Canvas Business Model: Channels

You're looking at how Cadiz Inc. (CDZI) gets its products and services to market as of late 2025. It's a mix of direct sales for their technology and large-scale, direct negotiations for their water assets.

Direct Sales Team for ATEC Water Filtration Systems

The ATEC Water Systems subsidiary uses a direct sales channel, evidenced by the volume of systems shipped and the revenue generated year-to-date 2025. This channel targets communities needing groundwater treatment solutions.

Here are the numbers for the ATEC channel through the first nine months of 2025:

Metric	Value (9 Months Ended Sept 30, 2025)
Filtration Systems Shipped (YTD)	308 systems
Year-to-Date Revenue (YTD)	$10.1 million
Q3 2025 Revenue	$4.0 million
Q3 2025 Gross Margin	Approximately 50%

The systems manufactured by ATEC utilize 42' and 48' wide filters, capable of processing up to 10 million gallons per day to remove contaminants like arsenic, iron, and manganese for communities serving close to 100,000 people reliant on groundwater.

Direct Negotiation of Water Purchase Agreements with Utilities

For the major water supply and storage projects, Cadiz Inc. negotiates directly with large public and private utilities. This involves securing long-term commitments for the water supply from the Mojave Groundwater Bank and conveyance via the pipeline assets.

Key agreements and volumes negotiated directly include:

• Executed Memorandum of Understanding (MOU) with EPCOR NR Holdings Inc. on August 1, 2025.
• EPCOR MOU targets exclusive marketing rights for 25,000 AFY of conserved water.
• Definitive agreement with EPCOR is expected by early 2026.
• Agreements executed in 2024 with multiple public water systems for 21,275 acre-feet per year of water supply.
• The 2024 agreements represent approximately 85% of the Northern Pipeline's capacity.

This direct negotiation channel also includes the binding exclusivity and confidentiality provisions within the MOU, even though the project development terms are non-binding as of the August 1, 2025, signing.

Mojave Water Infrastructure Company (MWI) for Project Financing

Project financing for the Mojave Groundwater Bank is channeled through Mojave Water Infrastructure Company (MWI), a special-purpose entity. This involves securing large equity capital tranches from strategic investors.

Financing milestones channeled through MWI as of late 2025 include:

• Executed definitive agreement with Lytton Rancheria of California on October 28, 2025.
• Lytton's investment is the first tranche, providing up to $51 million in capital via an unsecured convertible loan.
• Lytton's investment converts into an ownership interest in MWI.
• Total equity capital being raised through MWI is up to approximately $450 million.
• Cadiz Inc. is in final stages of diligence with private infrastructure investors for up to an additional $400 million in equity capital in MWI.
• A March 2025 Letter of Agreement mentioned a lead investor to invest up to $175 million in the related Mojave Groundwater Storage Company, LLC (MGSC).

The total company long-term debt, net, as of September 30, 2025, stood at $60.3 million.

Federal and State Regulatory Channels for Permit Approvals

Advancing the major infrastructure projects requires navigating federal and state regulatory bodies, which act as necessary gatekeepers for project operation and expansion. These channels dictate the timeline for water conveyance.

Recent regulatory channel activity includes:

• Approval of an Addendum to the Northern pipeline permit by the Fenner Valley Water Authority (FVWA) in September 2025.
• The Addendum will be added to the record before the Bureau of Land Management (BLM) for the federal right of way process.
• Federal right of way process for the Northern Pipeline is anticipated to wrap up in the next 8 weeks (from November 13, 2025).
• Executed an MOU with the U.S. Bureau of Reclamation / Department of Interior to support Mojave Groundwater Bank development.

The full environmental review for the Cadiz Water Conservation and Storage Project was completed in 2012, with a final ruling from the California Court of Appeal in 2016.

Cadiz Inc. (CDZI) - Canvas Business Model: Customer Segments

You're looking at the customer base for Cadiz Inc. (CDZI) as of late 2025, and it's clearly segmented across traditional water utility needs and emerging clean energy demands. The company is positioning itself as a critical infrastructure provider in a water-stressed region, so understanding who buys what is key to tracking their revenue trajectory.

The core water business serves established entities, but the growth story is increasingly tied to new industrial co-location partners. Honestly, the numbers show a clear split between their existing water rights customers and the future-facing energy/data center plays.

Public and private water systems in California and the Southwest

These customers are the traditional backbone, seeking reliable supply to offset volatility in state and federal allocations. Cadiz Inc. holds significant assets to back these commitments, including a total water supply of 2.5 million acre-feet and 1 million acre-feet of groundwater storage capacity. You should note the specific commitments made for the Mojave Groundwater Bank, which is a major focus for near-term delivery.

• Agreements secured in 2024 for 21,275 acre-feet per year via the Northern Pipeline.
• Executed Memorandum of Understanding (MOU) with EPCOR for 25,000 AFY via the Southern Pipeline.
• The State Water Project (SWP), a major competitor/context, started its 2025 water year with an initial allocation forecast of only 5% of requested supplies.

The ATEC Water Systems subsidiary directly serves this segment with filtration technology, which is showing strong operational traction in 2025.

Government agencies and municipalities needing water supply

While often overlapping with the public water systems above, this segment also includes direct engagement with government-backed infrastructure needs, often related to the development and permitting of the Mojave Groundwater Bank itself. The scale of the need is evident when you consider the SWP serves 29 public water agencies that supply water to 27 million Californians. Cadiz Inc.'s project is designed to provide a localized, drought-resilient resource.

The ATEC segment provides concrete, recent financial data that reflects adoption by these agencies:

Metric	9 Months Ended Sept 30, 2025	Q3 2025
ATEC Year-to-Date Revenue	$10.1 million	$4.0 million
ATEC Filtration Systems Shipped (YTD)	308 systems	N/A
ATEC Q3 Revenue YoY Growth	N/A	42%

Commercial businesses seeking co-location (hydrogen, data centers)

This is where Cadiz Inc. is looking to unlock significant new, recurring revenue streams from its land assets at Cadiz Ranch. The company has reserved 400 acres for potential commercial development, including a data center. A key indicator of this segment's potential value is the recent MOU with Hoku Energy.

• Hoku MOU projects expected annual revenue (lease/water sales) between $7 million and $10 million per year.
• The Hoku project could include green hydrogen production facilities and integrated digital infrastructure like data centers.
• Cadiz is also partnering with RIC Energy to build what is planned to be California's largest green hydrogen facility.

Underserved and disadvantaged communities in the Mojave River Basin

This segment is central to the public-private partnership narrative of the Mojave Groundwater Bank. The goal is to keep local water local and provide supplies where existing state infrastructure is most volatile. The sheer scale of the capital required underscores the commitment to this infrastructure buildout, which is expected to start construction in 2025 with water delivery targeted for 2027.

• The Mojave Groundwater Bank project is an estimated $800 million undertaking.
• The project is estimated to benefit upwards of 400,000 people annually in areas like the Inland Empire and Coachella Valley once complete.
• Initial project funding included a $51 million investment tranche from the Lytton Rancheria of California.

Finance: review Q4 2025 cash burn against the $12 million cash used in operations for the first nine months of 2025.

Cadiz Inc. (CDZI) - Canvas Business Model: Cost Structure

You're looking at the hard costs Cadiz Inc. faces to keep the lights on and push those major infrastructure projects forward. Honestly, the cost structure reflects a company in a heavy development and build-out phase, meaning high fixed costs before the big water revenue kicks in.

General and Administrative (G&A) and Project Development Overhead

A significant portion of Cadiz Inc.'s spending goes toward overhead supporting the massive Mojave Groundwater Bank and pipeline development. While the specific figure of $8.107 million for Q1 2025 wasn't confirmed in the latest filings, the ongoing nature of this expense is clear from the consolidated results. For the third quarter ending September 30, 2025, the company reported an operating loss of $4.9 million, which captures these high overhead costs, including G&A, before factoring in segment results. This loss shows the current drag from non-revenue-generating development activities.

The primary expenses Cadiz Inc. noted include:

• Ongoing overhead costs for water supply, storage, and conveyance asset development.
• Farming expenses at Cadiz Ranch.
• Costs associated with regulatory and permitting processes, which translate into substantial legal and consulting fees.

Capital Expenditures for Infrastructure

The biggest cost component, though often financed outside the main operating structure, is the capital expenditure required for the core water assets. The company estimates it will cost approximately $800 million to construct all required facilities to complete the Mojave Groundwater Bank. This includes building out the wellfield infrastructure and completing the pipelines. To fund this, Cadiz Inc. has structured a new entity, Mojave Water Infrastructure Company, LLC (MWI), and secured initial funding tranches. For example, the first tranche of construction financing from the Lytton Rancheria of California was $51 million.

Here's a look at the debt structure that carries associated interest costs:

Financial Metric	Amount as of September 30, 2025
Total Long-Term Debt, net	$60.3 million
Convertible Portion of Long-Term Debt	$40.4 million
Estimated Six-Month Interest Expense (Contextual)	~$4.0 million

Cost of Goods Sold (COGS) and ATEC Performance

The ATEC Water Systems segment operates with a much different cost profile, focused on manufacturing and sales. This segment has shown significant operational efficiency improvements. For the third quarter of 2025, the gross margin for ATEC filtration systems reached approximately 50%, a notable increase from 32% in the prior year. This margin reflects better production efficiencies and scale as year-to-date ATEC revenue hit $10.1 million for the first nine months of 2025.

The cost structure breakdown for the consolidated company, based on Q3 2025 results, looks like this:

• Total Company Revenue (Q3 2025): $4.1 million
• Net Loss (Q3 2025): $7.1 million
• Net Loss (Nine Months Ended Sept 30, 2025): $24.4 million

Interest expense on the $60.3 million in long-term debt is a fixed cost Cadiz Inc. must service, separate from the operating loss calculation for segments. The company's primary expenses are explicitly stated as including this interest expense, ongoing overhead (G&A), and farming costs.

Finance: draft 13-week cash view by Friday.

Cadiz Inc. (CDZI) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers driving Cadiz Inc.'s revenue generation right now, late in 2025. It's a mix of immediate sales from their technology division and the long-term value locked into their water infrastructure assets. Honestly, the near-term cash flow is heavily supported by recent capital activity, which is key to bridging the gap until the big water contracts kick in.

The most immediate, tangible revenue stream comes from the ATEC Water Systems subsidiary. This segment is showing solid growth, shipping more than double the filtration systems in the first nine months of 2025 compared to all of 2024. For the first nine months of 2025 (YTD Q3 2025), ATEC revenue hit a concrete $10.1 million. That's up significantly from $3.5 million in the same period in 2024. To be fair, Q3 2025 revenue alone was $4.0 million, marking the second consecutive quarter of operating profit for ATEC.

The core, long-term revenue is anchored in the water supply contracts for the Mojave Groundwater Bank Project. The Northern Pipeline, which has a total capacity of 25,000 AFY (Acre-Feet per Year), is now substantially committed. Cadiz Inc. announced securing water purchase agreements for 85% of that capacity. These are structured as long-term, take-or-pay contracts, meaning the revenue stream is designed for stability over 40 to 50 years once deliveries begin, targeted as early as 2026.

To help you see the financial scaffolding supporting the current development, here's a quick look at the recent capital and expected cost recovery figures:

Revenue/Funding Source	Amount	Timing/Context
ATEC Water Systems YTD Revenue	$10.1 million	Year-to-Date through Q3 2025
Q1 2025 Equity Raise (Gross Proceeds)	$20 million	Closed in Q1 2025
Expected Development Expense Reimbursement	$15 million to $20 million	Expected at close of project financing
Lytton Rancheria Investment (Tranche 1)	$51 million	Initial phase of project funding/loan
Expected Payment for NPL Assets (from LLC)	$25 million	Expected payment to Cadiz Inc. from the new LLC
Expected Payment for Water Storage Rights (from LLC)	$51 million	In exchange for 51% of cash flows from storage/banking

You should also note the expected reimbursement for development costs. Cadiz Inc. anticipates being reimbursed for approximately $15 million to $20 million in capital costs and development expenses when the project financing closes. This is closely related to the project finance structure, which involves the transfer of assets to the new LLC, Mojave Water Infrastructure Company (MWI). Specifically, the Company expects payments of $25 million for Northern Pipeline (NPL) assets and $51 million in exchange for 51% of the cash flows from water storage and banking operations.

Finally, there is potential upside from non-water assets at Cadiz Ranch. Management has pointed to:

• Potential revenue from co-located hydrogen production facilities.
• Potential revenue from data center leases.

What this estimate hides, though, is that the long-term water revenue is contingent on the final closing of the MWI project financing, which was expected in Q4 2025. Finance: draft 13-week cash view by Friday.