Livento Group, Inc. SEC 10-K Report

Livento Group, Inc., a company that has recently transitioned from cosmeceutical skincare to focus on artificial intelligence and film production, has released its annual 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in its new business ventures.

Financial Highlights

• Revenue: $1.69 million. The decrease in revenue from the previous year is attributed to a shift in focus towards BOXO and Elisee projects due to market volatility.
• Gross Margin: $(1.25) million. The negative gross margin reflects higher costs of revenue compared to the revenue generated.
• Net Loss for the Year: $(596,394). The net loss was significantly reduced compared to the previous year, primarily due to a decrease in general and administrative expenses.
• Net Income Per Share: Not explicitly stated in the report.

Business Highlights

• Business Transformation: The company transitioned from a cosmeceutical skincare business to focus on artificial intelligence and film production, with the acquisition of Livento Group, LLC, which specializes in financial management software and movie production.
• Product Lines: The company operates through BOXO Productions, focusing on film and television production, and Elisee, an AI-driven financial management software. BOXO Productions plans to produce up to six movies and twelve television productions annually.
• Geographical Performance: The company has expanded its operations to include a residential real estate development project in Prague, Czech Republic, which has been completed with all units sold.
• New Product Launches: BOXO Productions initiated the production of three movies in 2022, including 'Carnival of Killers', 'Wash Me in the River', and 'Running Wild'. 'Wash Me in the River' was released in Q4 2022.
• Operational Focus: The company is concentrating on expanding BOXO Productions and Elisee, with BOXO focusing on content production for cinemas and streaming platforms, and Elisee providing AI-driven investment management solutions.
• Future Outlook: Management anticipates continued growth in the entertainment industry, driven by increased demand for streaming content. The company plans to leverage proceeds from real estate sales to fund BOXO's activities.
• Sales Units: The Prague real estate project involved the development and sale of 16 residential condominiums, all of which have signed purchase agreements.
• New Production Launches: BOXO Productions was formally established as a subsidiary in 2022 to manage the company's film and television production assets.
• Strategic Partnerships: BOXO Productions collaborates with top film producers and distributors, ensuring revenue through pre-sale agreements and box office shares.
• Technological Development: Elisee, the AI software, continues to evolve, offering predictive analytics for investment portfolios, with plans to expand its client base and capabilities.

Strategic Initiatives

• Strategic Focus: Livento Group, Inc. has strategically shifted its focus towards the BOXO and Elisee projects due to increased demand and market volatility. The company is undertaking more projects under BOXO, which requires significant investment, and is leveraging the Elisee platform for portfolio optimization services.
• Acquisition: The acquisition of Livento by Nugene International, Inc. in 2022 was a strategic move to secure investors and attention for BOXO's efforts.
• Capital Management: The company has engaged in various capital management activities, including issuing unregistered equity securities to raise funds and reward employees. It has also converted preferred shares to common shares to manage its equity structure. The company has a co-investment loan agreement with private investors amounting to $3,402,020 for movie production. Additionally, Livento Group has been actively managing its liabilities, with a focus on operational liabilities and co-investment agreements.
• Future Outlook: Livento Group plans to continue focusing on BOXO and Elisee projects, expecting capital generated from the disposal of real estate properties to provide necessary cash for these operations. The company anticipates increased revenues from the Elisee platform due to market volatility and plans to leverage its intellectual property investments in the movie industry for future growth. The company also aims to rely on increased net income and cash inflow, along with additional investments through private equity sales, to build the BOXO brand.

Challenges and Risks

• Operational Risks: The company has undergone significant changes in its business operations, transitioning from a focus on real estate to movie production and AI software development. This shift presents operational risks related to the successful execution of new business models and the ability to generate sustainable revenue streams from these ventures.
• Market Risks: The company's reliance on the success of BOXO Productions and the Elisee software for future growth introduces market risks, particularly in the competitive entertainment and technology sectors.
• Financial Challenges: The company faces financial challenges, including a net loss of $596,394 as of December 31, 2024, primarily due to high depreciation and stock-based compensations. The limited cash balance of $3,958 at the end of 2024 highlights liquidity risks, with the company relying on receivables and potential private equity sales to fund operations.
• Resource Allocation: The management's strategy to focus on BOXO and Elisee amid inflation and increased construction costs indicates a shift in resource allocation, which may impact the company's ability to manage its financial obligations effectively.
• Market Conditions: The company's exposure to market risks is evident in its reliance on the success of its movie production and AI software ventures, which are subject to fluctuations in consumer demand and technological advancements. The company's ability to adapt to these market conditions will be crucial in mitigating potential risks.

SEC Filing: Livento Group, Inc. [ NUGN ] - 10-K - Apr. 17, 2025