10-Q: Livento Group Q3 2025: AI & Film Investments Drive Cash Flow

Livento Group reports increased cash from operations and significant investments in AI and movie projects, despite a decline in traditional revenues and an overall net loss.

Summary

• Livento Group, Inc. filed its Quarterly Report on Form 10-Q for the period ended September 30, 2025.
• The company's current operations focus on financial management software (Elisee AI) and movie/game development (BOXO Productions Inc.).
• Cash at the end of the period significantly increased to $10,585 as of September 30, 2025, compared to $2,641 at September 30, 2024.
• Net cash provided by operating activities for the nine months ended September 30, 2025, was $551,741, a substantial increase from $151,334 in the prior year.
• Revenues for the three months ended September 30, 2025, were $329,423, down from $527,588 in the same period of 2024.
• Revenues for the nine months ended September 30, 2025, were $876,211, a decrease from $1,392,916 in the prior year.
• Gross profit for the three months ended September 30, 2025, was a loss of $442,498, compared to a loss of $240,155 in the prior year.
• Gross profit for the nine months ended September 30, 2025, was a loss of $1,280,554, compared to a loss of $729,377 in the prior year.
• Other income for the three months ended September 30, 2025, was $355,627, a significant increase from $56 in the prior year, primarily from movie project profits.
• Other income for the nine months ended September 30, 2025, was $891,227, down from $1,490,203 in the prior year.
• Net loss for the three months ended September 30, 2025, was $225,085, an improvement from a loss of $409,929 in the prior year.
• Net loss for the nine months ended September 30, 2025, was $755,294, a shift from a net profit of $408,436 in the prior year.
• Total assets decreased to $44,517,551 as of September 30, 2025, from $47,591,411 at December 31, 2024.
• Total liabilities decreased to $2,797,788 as of September 30, 2025, from $4,181,456 at December 31, 2024.
• Long-term investments increased to $1,581,092 as of September 30, 2025, from $687,568 at December 31, 2024.
• Intangible assets were $48,761,487 as of September 30, 2025, down from $49,866,140 at December 31, 2024.
• The Elisee AI machine learning program currently generates approximately $1.5 million per year and is expected to produce $2.5 million from 2026.
• Two out of 45 movie projects under BOXO Productions successfully entered distribution, with movie income booked under 'Other income'.

Sentiment

Score: 4

Explanation: The sentiment is moderately negative. While there's a significant increase in cash from operations and a decrease in total liabilities, core revenues are down, and the company shifted from a net profit to a substantial net loss for the nine-month period. Heavy investment in intangible assets (AI and movies) is ongoing, but profitability is not yet evident. The company faces significant risks related to capital raising, competition, and corporate governance structure.

Positives

• Cash at the end of the period increased significantly to $10,585 as of September 30, 2025, from $2,641 at September 30, 2024.
• Net cash provided by operating activities for the nine months ended September 30, 2025, substantially increased to $551,741 from $151,334 in the prior year.
• Total liabilities decreased to $2,797,788 as of September 30, 2025, from $4,181,456 at December 31, 2024, indicating improved financial health.
• Long-term investments increased to $1,581,092 as of September 30, 2025, from $687,568 at December 31, 2024, reflecting strategic asset growth.
• Other income for the three months ended September 30, 2025, saw a significant increase to $355,627 from $56 in the prior year, driven by movie project profits.
• The Elisee AI machine learning program is a stable source of income, currently generating approximately $1.5 million annually, with an expected increase to $2.5 million from 2026.
• Two out of 45 movie projects have successfully entered distribution, validating the BOXO Productions strategy.

Negatives

• Revenues for the three months ended September 30, 2025, decreased to $329,423 from $527,588 in the same period of 2024.
• Revenues for the nine months ended September 30, 2025, decreased to $876,211 from $1,392,916 in the prior year.
• Gross profit for both the three-month and nine-month periods ended September 30, 2025, showed larger losses compared to the prior year, indicating declining profitability from core services.
• The company reported a net loss of $755,294 for the nine months ended September 30, 2025, a significant reversal from a net profit of $408,436 in the prior year.
• Net cash used in investing activities increased to $810,482 for the nine months ended September 30, 2025, from $472,837 in the prior year, reflecting higher capital deployment without immediate corresponding revenue growth.
• Total equity decreased to $41,719,763 as of September 30, 2025, from $43,409,955 at December 31, 2024.

Risks

• Limited resources and potential inability to raise additional capital needed to fund operations and planned increased investment levels.
• The company operated at a net loss of $1,081,767 for the period ended September 30, 2025, and cash resources of $2,641 on September 30, 2025, which are inadequate to execute growth plans.
• Cybersecurity threats to online movie projects and Elisee software, despite current protection measures.
• Potential cash flow problems if clients face financial difficulties, impacting the ability to pay liabilities.
• BOXO's movie production projects are capital intensive, frequently costing over $30 million, and rely heavily on external investor funds.
• The success or failure of individual movie projects can significantly impact BOXO's ability to raise funds for future projects.
• Reliance on personal relationships rather than formal agreements for the BOXO team, posing a risk of key consultants leaving and adversely affecting movie production.
• The software development market is highly competitive and fragmented, with no assurance that the company's unique platform will remain commercially viable or that competitors won't develop superior features.
• Minority stockholders are unlikely to have a meaningful vote in corporate actions due to the CEO, David Stybr, owning 51% of the shareholder voting power through super-voting preferred stock.
• High costs associated with reporting requirements under the Exchange Act and compliance with the Sarbanes-Oxley Act of 2002, potentially affecting the ability to continue as a going concern.
• Uncertainty regarding the listing of common stock on OTCQB or any other stock exchange, currently traded on the Pink Sheets.
• The common stock is likely considered a 'penny stock,' which may make it more difficult for investors to sell shares due to suitability requirements.
• As an emerging growth company under the JOBS Act, reduced disclosure requirements may make the common stock less attractive to investors and capital raising more challenging.
• The company has the right to issue shares of preferred stock with rights, preferences, and privileges that may adversely affect common stock holders.

Future Outlook

The company expects its Elisee AI machine learning program to increase revenue generation from approximately $1.5 million per year to $2.5 million from 2026. It is also shifting its focus from management services to movie projects, with an expectation of 40% margin revenue once pre-sold to a distributor and a 15-25% revenue share from cinema/online streamer distribution. The company plans to pay dividends on its Common Stock in the future once the financial situation allows.

Management Comments

• Management believes that the AI segment of operations will provide meaningful revenue, but can give no assurance that this will happen.
• Management believes that the success or failure of each movie project can impact BOXO's ability to raise funds for the next project timely.
• Management seeks to minimize financial liability risks through close monitoring and relationship with clients.
• We would be delighted to share success in our projects with our shareholders (regarding future dividends).

Industry Context

Livento Group operates in two distinct, yet technology-driven, industries: AI-powered financial management software and movie/game development. The AI software market is highly competitive and fragmented, requiring continuous innovation to maintain a competitive edge. The movie production industry is capital-intensive and project-based, with significant reliance on investor funding and distribution deals. The company's strategy to diversify across these sectors, leveraging AI for data analysis and investing in entertainment content, positions it within growing digital and creative economies, but also exposes it to the inherent risks and competitive pressures of both.

Comparison to Industry Standards

• NA The filing does not provide specific comparable companies, projects, or results to assess against global benchmarks. It mentions that 'Our services sell for margins comparable with others in industries similar to ours,' but provides no specific data for comparison.

Corporate Governance

Legal Proceedings

• The company currently has no active legal proceedings.

Related Party Transactions

• Historically, NuGene generated revenues from an affiliate, Advanced Surgical Partners (ASP), owned by the CEO and Chairman, Messrs. Ali and Mohammed Kharazmi, for providing Plasma Rich Platelet and Stem Cell injections. The company expected to minimize these sales and services to ASP in early 2015 as it transitioned to commercializing cosmeceutical product lines.

Stakeholder Impact

• Shareholders: Face significant dilution risk due to the large number of common shares outstanding (2.28 billion) and the potential for future capital raises. Minority shareholders have limited voting power due to the CEO's super-voting preferred stock. The stock is considered a 'penny stock,' which may affect liquidity and marketability.
• Investors: High speculative risk due to net losses, reliance on external capital for capital-intensive projects (movies), and competitive markets for AI software. The company's 'emerging growth company' status may also deter some investors.
• Employees/Consultants: The BOXO team relies on personal relationships rather than formal agreements, posing a risk of key consultants leaving, which could impact project continuity and success.
• Customers (Elisee): Clients have oneor two-year contracts, but the loss of major clients could significantly decrease revenues and impede future growth.
• Creditors: The company's ability to pay liabilities could be affected by client financial difficulties and the need for additional capital.

Next Steps

• Continue development and upgrades for the Elisee AI machine learning program, aiming for $2.5 million in annual revenue from 2026.
• Further develop movie and game projects under BOXO Productions, with an expected completion time of 15-18 months per asset.
• Seek to pre-sell movie assets to distributors and secure revenue shares from cinemas and online streamers.
• Evaluate the impact of new accounting standards updates (ASC 606, ASU 2018-07, ASU 2017-01, ASU 2016-02).

Key Dates

Recommendation

Livento Group presents a mixed financial picture. While cash from operations has significantly improved and liabilities have decreased, core revenues are declining, and the company reported a substantial net loss for the nine-month period. The strategic shift towards AI software and movie production represents high-growth, high-risk ventures requiring significant capital. The company's future success hinges on the successful commercialization of these intangible assets and its ability to secure further funding. Given the substantial risks, including capital intensity, competitive markets, and concentrated ownership, a 'hold' recommendation is appropriate for investors who are already exposed and willing to tolerate high risk for potential long-term upside from the AI and entertainment segments, but new investors should exercise extreme caution due to the speculative nature and current unprofitability.

Keywords

AI, Machine Learning, Movie Production, Entertainment, Financial Software, SEC Filing, 10-Q, Livento Group, BOXO Productions, Elisee, Cosmeceuticals, Stem Cells