10-K: Livento Group Reports Fiscal Year 2024 Results, Focuses on BOXO Productions and AI Software

Livento Group's 2024 annual report highlights a shift towards movie production and AI software, with revenue of $1.69 million and a net loss of $596,394.

Summary

• Livento Group, Inc. reported its financial results for the fiscal year ended December 31, 2024.
• The company's revenue for 2024 was $1,691,241, with an additional $1,560,249 in other income.
• Elisee sales accounted for $1,122,000 of the total revenue, with the remainder coming from movie and management services.
• The cost of revenue was $2,936,419, including $2,110,275 in amortization of intangible assets and $826,144 in professional fees.
• The company experienced a net loss of $596,394 for the year.
• Livento Group is focusing on BOXO Productions and its AI software, Elisee.
• The company is transitioning away from real estate activities due to inflation and smaller profit margins.
• As of December 31, 2024, the company had $3,958 in cash and $1,282,138 in receivables.
• The company has eleven employees and consultants.
• The company issued a significant number of unregistered equity securities during 2023 and 2024.

Sentiment

Score: 4

Explanation: The document presents a mixed picture. While the company is focusing on growth areas and has some positive developments, the net loss, low cash balance, and internal control weaknesses raise concerns. The sentiment is cautiously negative.

Positives

• The company is focusing on high-growth areas like movie production and AI software.
• Elisee software continues to generate revenue.
• The company has direct contact with top Hollywood icons through its producer team.
• The company has receivables of $1,282,138 which are expected to be collected within the first 8 months of 2025.

Negatives

• The company reported a net loss of $596,394 for 2024.
• The company's cash balance is very low at $3,958 as of December 31, 2024.
• The company has a significant accumulated deficit of $19,704,578.
• The company's cost of revenue exceeds its revenue.
• The company has identified material weaknesses in its internal controls.
• The company has a legal proceeding running against it in California.

Risks

• The company's low cash balance raises concerns about its ability to fund operations.
• The accumulated deficit and net losses indicate financial instability.
• Material weaknesses in internal controls could lead to financial misstatements.
• Competition in the movie production and AI software markets is intense.
• The company's reliance on key personnel poses a risk if those individuals leave.
• The company's success depends on the performance of its movie projects and the adoption of its AI software.
• The company is dependent on the proceeds of the condominium sales to fund the activity and operations of BOXO.

Future Outlook

The company plans to focus on BOXO Productions and Elisee, using proceeds from condominium sales to fund these activities. They do not plan to continue in real estate activities.

Management Comments

• Management believes that the entertainment industry is experiencing structural changes due to COVID-19.
• Management believes that online streaming platforms continually require new content.
• Management believes each potential customers financial situation and investment needs are unique.
• Management anticipates that all delayed payments should be done received during Q2 2025.

Industry Context

The company is operating in the entertainment and AI software industries, both of which are experiencing rapid growth and change. The shift to online streaming and the increasing demand for AI-driven solutions are key trends influencing the company's strategy.

Comparison to Industry Standards

• It's difficult to directly compare Livento Group's financial performance to industry standards without knowing the specific segments it operates in and the size of comparable companies.
• However, in the film production industry, companies like Lionsgate and A24 serve as benchmarks for independent studios, while companies like Palantir and C3.ai are benchmarks in the AI software industry.
• The company's revenue of $1.69 million is significantly smaller than these larger players, and its net loss indicates a need for improved financial performance.
• The company's focus on niche markets and direct relationships with Hollywood talent could provide a competitive advantage.

Legal Proceedings

• There is one legal proceeding currently running, where the plaintiff has filed a civil lawsuit against the company in California alleging the company failed to pay the plaintiff for services rendered.

Related Party Transactions

• On 24th of March, 2022, Livento Group, LLC, a company controlled be Mr. Stybr, transferred 100% of its shares to Nugene International Inc in exchange of A class voting shares and C class shares, of net assets, this was an exchange of equity interests between entities under the control of the same parent.

Stakeholder Impact

• Shareholders may be concerned about the company's net loss and low cash balance.
• Employees may be affected by the company's shift in focus and potential cost-cutting measures.
• Customers of Elisee may benefit from continued development and improvement of the software.
• Suppliers and creditors may face increased scrutiny due to the company's financial challenges.

Next Steps

• The company will focus on developing and releasing new movies through BOXO Productions.
• The company will continue to develop and market its Elisee AI software.
• The company will seek additional funding through private equity sales.
• The company will work to remediate the identified material weaknesses in its internal controls.

Key Dates

Keywords

Livento Group, BOXO Productions, Elisee, AI software, movie production, financial results, annual report, revenue, net loss, intangible assets