10-Q: Livento Group Reports Q2 2026 Financials, Net Loss Continues

Livento Group, Inc. filed its Q2 2026 Form 10-Q, reporting revenues of $287,234 and a net loss of $63,624 for the quarter, with accumulated deficit widening.

Summary

• Livento Group, Inc. reported revenues of $287,234 for the three months ended June 30, 2026, an increase from $234,131 in the same period of 2025.
• The company incurred a net loss of $63,624 for the three months ended June 30, 2026, compared to a net income of $147,331 in the prior year's quarter.
• For the six months ended June 30, 2026, revenues were $412,019, a decrease from $546,788 in the same period of 2025.
• The net loss for the six months ended June 30, 2026, was $442,793, compared to a net loss of $530,209 in the prior year's period.
• Total assets as of June 30, 2026, were $47,330,266, with intangible assets representing a significant portion at $48,961,487.
• Total liabilities were $3,502,371, and total equity was $43,827,895, with a substantial accumulated deficit of $32,397,971 as of June 30, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to continued net losses, significant accumulated deficit, and reliance on future capital raises, despite some revenue growth in specific segments.

Positives

• Revenues for the three months ended June 30, 2026, increased to $287,234 from $234,131 in the same period of 2025.
• The company generated $367,920 in Other Income during the three months ended June 30, 2026, contributing to offsetting the net loss.
• Cash and cash equivalents increased to $22,128 as of June 30, 2026, from $5,628 as of December 31, 2025.
• The company has no active legal proceedings as of the filing date.

Negatives

• The company reported a net loss of $63,624 for the three months ended June 30, 2026, and a net loss of $442,793 for the six months ended June 30, 2026.
• The accumulated deficit increased to $32,397,971 as of June 30, 2026, from $31,955,178 as of December 31, 2025.
• Revenues for the six months ended June 30, 2026, decreased to $412,019 from $546,788 in the same period of 2025.
• Gross profit was negative for both the three-month ($328,088) and six-month ($813,324) periods ended June 30, 2026.
• Intangible assets, primarily related to the A&I machine learning program and movie projects, represent a significant portion of total assets but are subject to amortization.

Risks

• The company has limited resources and may not be able to raise additional capital as needed to fund operations and planned investment levels.
• The company operated at a net loss of $442,793 for the six months ended June 30, 2026, and its cash resources of $22,128 are inadequate to execute growth plans.
• Cybersecurity risks exist for movie projects and Elisee software stored online.
• Financial liabilities could lead to cash flow problems if clients experience financial difficulties.
• BOXO's movie production requires substantial capital, frequently over $30 million per project, and relies on investor funding.
• BOXO relies on personal relationships rather than written agreements for its production team, posing a risk of 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 holding super-voting preferred stock.

Future Outlook

The company expects to generate revenue from its Elisee software, management services for Global Dot Logistics, and movie projects under BOXO Productions. There is an expectation that movie project income will increase once the FINRA Name Change process is completed, potentially opening new opportunities. The A&I machine learning program is expected to produce $2.5 million in revenue by 2025 with an upgraded version.

Management Comments

• Management believes the AI Learning Program currently generates approximately $1.5 million per year and expects this to increase to $2.5 million by 2025 with an upgraded version.
• Management believes the A&I machine learning program segment will provide meaningful revenue, but offers no assurance.
• Management seeks to minimize the risk of client financial difficulties through close monitoring and client relationships.
• Management believes that the success or failure of each BOXO project can impact its ability to raise funds for the next project timely.
• Management plans to discuss and approve dividend payments to shareholders when the company's situation allows.

Industry Context

StockSavvy.ai notes that Livento Group operates in the AI/software development and entertainment (movie production) sectors. The AI software market is characterized by rapid technological change and competition, while the movie industry is capital-intensive and reliant on investor funding and distribution deals. The company's strategy appears to be diversifying revenue streams across these distinct but potentially synergistic areas.

Comparison to Industry Standards

• The company's gross profit margins are negative for both the three-month and six-month periods ended June 30, 2026, which is significantly below industry standards for software and entertainment companies.
• The company's reliance on future capital raises and its current limited cash reserves ($22,128) are concerning compared to industry benchmarks for companies seeking to fund capital-intensive projects like movie production (often exceeding $30 million per project).
• The company's reported amortization of intangible assets ($580,827 for Q2 2026, $1,225,343 for YTD 2026) is substantial relative to its revenues, indicating significant investment in intellectual property, which is common in tech and media, but the current revenue levels do not support these costs.
• The company's net loss per share is reported as zero, which is unusual and likely due to the anti-dilutive effect of the net loss, a common occurrence for early-stage or struggling companies but not a positive indicator.

Corporate Governance

Legal Proceedings

• The company currently has no active legal proceedings.

Stakeholder Impact

• Shareholders: Control is concentrated with the CEO, potentially limiting their influence on corporate actions and future value realization. The company plans to pay dividends when financially able.
• Creditors: Several financing agreements with conversion features could dilute existing shareholders.
• Employees/Consultants: BOXO relies on personal relationships for its production team, posing a risk of key personnel departure.
• Investors: The company's financial performance, continued losses, and reliance on capital raises present significant risks, and the stock is considered a penny stock, potentially limiting liquidity and investor access.

Next Steps

• Complete FINRA Name Change process to potentially unlock new opportunities and sign new agreements.
• Offer an upgraded version of the A&I machine learning program to more clients to increase revenue.
• Continue to develop movie and game assets, aiming for completion within 15-18 months per project.
• Seek to meet listing standards for OTCQB or a higher exchange.
• Continue to monitor and manage client receivables to mitigate cash flow risks.

Key Dates

Recommendation

The company continues to report significant net losses and a widening accumulated deficit. Despite some revenue growth in specific segments, the overall financial performance is deteriorating, with negative gross profit margins. The reliance on future capital raises and the inherent risks associated with its business segments (AI software development, movie production) coupled with the concentrated ownership structure and penny stock status, present substantial risks to investors. The current financial trajectory does not support a positive outlook without significant external funding and a turnaround in profitability.

Keywords

Livento Group, Form 10-Q, Financial Statements, Revenues, Net Loss, Accumulated Deficit, Intangible Assets, AI Machine Learning