10-Q: Livento Group Q1 2026 Financials Show Revenue Dip, Net Loss

Livento Group, Inc. reported a net loss of $379,169 for the first quarter of 2026, with revenues decreasing compared to the prior year period.

Summary

• Livento Group, Inc. reported a net loss of $379,169 for the first quarter ended March 31, 2026, a decrease from the net loss of $677,540 for the same period in 2025.
• Total revenues for the first quarter of 2026 were $124,785, plus $244,192 in movie margin income for projects entering production, a decrease from $312,657 in revenues for the first quarter of 2025.
• Cost of goods sold decreased to $610,021 in Q1 2026 from $793,804 in Q1 2025.
• Gross profit was a loss of $485,236 in Q1 2026, compared to a loss of $481,147 in Q1 2025.
• Total expenses decreased to $138,125 in Q1 2026 from $196,393 in Q1 2025.
• The company's cash and cash equivalents were $15,738 as of March 31, 2026, down from $24,665 as of March 31, 2025.
• Total assets increased to $47,657,271 as of March 31, 2026, from $46,215,247 as of March 31, 2025.
• Total liabilities decreased to $3,772,825 as of March 31, 2026, from $3,873,177 as of March 31, 2025.
• Total equity increased to $43,884,446 as of March 31, 2026, from $42,342,070 as of March 31, 2025.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative filing due to declining revenues, continued gross losses, and significant risks related to capital raising and operational execution, despite some improvements in net loss and liability reduction.

Positives

• Total equity increased to $43,884,446 as of March 31, 2026, indicating a stronger balance sheet.
• Total liabilities decreased to $3,772,825 as of March 31, 2026, reducing the company's debt burden.
• Operating activities provided positive cash flow of $114,087 for the period ended March 31, 2026, an improvement from negative cash flow of $9,012 in the prior year period.
• The company has no active legal proceedings as of March 31, 2026.

Negatives

• Net loss for the quarter was $379,169, although this is an improvement from the prior year's loss of $677,540.
• Revenues decreased to $124,785 in Q1 2026 from $312,657 in Q1 2025, excluding movie margin income.
• Gross profit remains negative at $(485,236) for Q1 2026.
• Cash and cash equivalents decreased to $15,738 as of March 31, 2026, from $24,665 as of March 31, 2025.
• Intangible assets represent a significant portion of total assets ($49,367,474 as of March 31, 2026).

Risks

• The company has limited resources and may not be able to raise additional capital as needed to fund operations and planned increased investment levels.
• Cybersecurity risks exist for movie projects and Elisee software stored online.
• Financial liabilities are affected by the timing of client payments, potentially leading to cash flow problems.
• BOXO's movie production requires substantial capital and continued participation from many parties, with projects frequently costing over $30 million.
• Reliance on personal relationships rather than written agreements within BOXO could lead to key consultants leaving.
• The software development market is highly competitive and fragmented.
• Minority stockholders will likely not have a meaningful vote in corporate actions due to control by officers and directors through super-voting preferred stock.
• Reporting requirements under the Exchange Act and compliance with Sarbanes-Oxley Act are costly and may increase substantially, potentially impacting the ability to continue as a going concern.
• There is no assurance that the company's common stock will be listed on the OTCQB or any other stock exchange.
• The company's common stock is likely to be considered a penny stock, making it more difficult for investors to sell shares due to suitability requirements.
• The company has the right to issue shares of preferred stock, which could adversely affect common stock holders.
• The company is an emerging growth company and may take advantage of reduced disclosure requirements, which could make its common stock less attractive to investors.

Future Outlook

The company's AI machine learning program is expected to generate $2.5 million in revenue from 2023 onwards with an upgraded version offered to more clients. Movie projects have an expected value for 15 years and generate revenue share from distributors and cinemas/online streamers. The company expects its Elisee software to be a stable source of income.

Management Comments

• Elisee is constantly serving to clients in Europe and USA and we see stable source of income.
• Our margins will reflect our efficiency in our services, the desirability of our services and our ability to grow revenue in order to scale our operations.
• Our relationships with our suppliers will also be important in procuring materials at better pricing.
• We have limited resources, and we may not be able to raise additional capital as it is needed to fund our operations and planned increased investment levels.
• Our management seeks to minimize this risk through close monitoring and relationship with our clients.
• Management believes that the success or failure of each project can impact BOXOs ability to raise funds for the next project timely.
• We would be delighted to share success in our projects with our shareholders.

Industry Context

StockSavvy.ai notes that Livento Group operates in the AI software development and entertainment (movie production) sectors. The AI software market is highly competitive, and the company's Elisee platform aims to provide data processing and analytical services for investment entities. The movie production segment, through BOXO Productions, is capital-intensive and relies on investor funding and key personnel relationships. The company's strategy involves leveraging AI for financial management software and investing in movie and game development projects.

Comparison to Industry Standards

• The company's gross profit margin remains negative, which is not in line with industry standards for profitable software or entertainment companies.
• BOXO's movie production projects costing over $30 million are substantial, aligning with the high capital requirements typical for major film productions.
• The company's reliance on personal relationships for its BOXO team, rather than formal agreements, is a deviation from standard industry practice which emphasizes contractual obligations for key personnel.
• The company's AI machine learning program is expected to generate $1.5 million annually, with a projected increase to $2.5 million, which would need to be benchmarked against similar AI analytics platforms in the financial sector to assess competitiveness.

Corporate Governance

Legal Proceedings

• A civil lawsuit has been filed against the company in California alleging failure to pay for services rendered. The company contends no services of value were provided and is defending the matter.

Stakeholder Impact

• Shareholders: Control is concentrated with the CEO, potentially limiting their influence on corporate decisions. The company plans to pay dividends in the future when financially able.
• Employees: The company relies on personal relationships for its BOXO team, which could lead to instability if key consultants leave.
• Creditors: The company's ability to pay liabilities depends on timely payments from clients, posing a risk to creditors if clients face financial difficulties.

Next Steps

• Continue to offer upgraded versions of the Elisee AI Learning Program to more clients.
• Develop movie scripts and offer them to distribution studios for production.
• Seek to meet listing standards for OTCQB or a higher exchange.
• Continue to monitor and manage client receivables to minimize cash flow problems.
• Continue to defend against the civil lawsuit alleging failure to pay for services rendered.

Key Dates

Recommendation

While the company shows some positive signs like reduced liabilities and improved cash flow from operations, the continued gross losses, declining revenues, and significant risks associated with capital raising and market competitiveness warrant a cautious approach. A 'hold' recommendation reflects the potential for recovery if strategic initiatives gain traction, balanced against the substantial uncertainties.

Keywords

Livento Group, 10-Q, Quarterly Report, Financial Statements, Revenue, Net Loss, Elisee, BOXO Productions, AI Software, Movie Projects, SEC Filing