Livento Group's AI Pivot Fails to Stem Q3 Losses Amid Revenue Decline

TL;DR

**LIVG is bleeding cash with declining revenues and a growing accumulated deficit, making it a high-risk bet despite its AI pivot.**

AI Summary

Livento Group, Inc. (LIVG) reported a net loss of $225,085 for the three months ended September 30, 2025, a significant improvement from the $409,929 net loss in the same period of 2024. However, for the nine months ended September 30, 2025, the company posted a net loss of $755,294, a sharp decline from the net income of $408,436 in the prior year. Revenues decreased to $329,423 for the three-month period in 2025 from $527,588 in 2024, and for the nine-month period, revenues fell to $876,211 from $1,392,916. Total assets decreased from $47,591,411 as of December 31, 2024, to $44,517,551 as of September 30, 2025. The company's current operations are focused on financial management software based on artificial intelligence for investment entities, a shift from its historical cosmeceutical business which was discontinued by 2017. Cash at the end of the period was $10,585, up from $3,958 at the beginning of the nine-month period.

Why It Matters

Livento Group's substantial net loss of $755,294 for the nine months ended September 30, 2025, compared to a net income in the prior year, signals significant operational challenges for investors. The sharp decline in revenue from $1,392,916 to $876,211 indicates a struggle to monetize its AI financial management software, raising questions about its competitive viability against established fintech players. Employees might face uncertainty given the company's historical business shifts and current financial performance. Customers of their AI software may question the long-term stability and support for the product. The broader market will watch if this AI pivot can eventually deliver on its promise or if it will follow the path of its discontinued cosmeceutical venture.

Risk Assessment

Risk Level: high — The company reported a net loss of $755,294 for the nine months ended September 30, 2025, a significant deterioration from a net income of $408,436 in the prior year. Furthermore, the accumulated deficit increased to -$21,140,081 as of September 30, 2025, from -$19,704,578 at December 31, 2024, indicating persistent unprofitability and a weak financial position.

Analyst Insight

Investors should exercise extreme caution and consider avoiding LIVG given the consistent net losses, declining revenues, and increasing accumulated deficit. The company's shift to AI software has not yet translated into profitability, and its financial health appears precarious.

Financial Highlights

debt To Equity

0.07

revenue

$876,211

operating Margin

N/A

total Assets

$44,517,551

total Debt

$2,797,788

net Income

-$755,294

eps

N/A

gross Margin

-146.1%

cash Position

$10,585

revenue Growth

-37.1%

Key Numbers

• $755,294 — Net loss for nine months ended Sep 30, 2025 (Increased from a net income of $408,436 in the prior year, indicating significant financial deterioration.)
• $876,211 — Revenues for nine months ended Sep 30, 2025 (Decreased from $1,392,916 in the prior year, showing a substantial decline in sales.)
• $21,140,081 — Accumulated Deficit as of Sep 30, 2025 (Increased from $19,704,578 at December 31, 2024, highlighting persistent unprofitability.)
• $44,517,551 — Total Assets as of Sep 30, 2025 (Decreased from $47,591,411 at December 31, 2024, indicating a shrinking asset base.)
• $10,585 — Cash at end of period (Sep 30, 2025) (Low cash balance, despite an increase from $3,958 at the beginning of the nine-month period, remains a concern for liquidity.)
• 2,279,753,594 — Common Shares Outstanding as of Sep 30, 2025 (Significantly increased from 812,799,962 shares at January 1, 2025, indicating substantial dilution.)
• $2,156,765 — Total Cost of Goods Sold for nine months ended Sep 30, 2025 (Increased from $2,122,292 in the prior year, contributing to negative gross profit.)
• $1,280,554 — Gross Profit for nine months ended Sep 30, 2025 (Negative gross profit, worsening from -$729,377 in the prior year, indicating core business unprofitability.)

Key Players & Entities

• Livento Group, Inc. (company) — registrant
• David Stybr (person) — CEO and sole owner of Livento Group, LLC
• Milan I Hoffman (person) — former custodian of the Company via Emergent, LLC
• NuGene Inc. (company) — accounting acquirer in 2014 reverse merger
• Ali Kharazmi (person) — founder of NuGene and CEO of Livento Group, Inc. (formerly)
• Mohammed Kharazmi, M.D. (person) — founder of NuGene and Chairman of the Board of Livento Group, Inc. (formerly)
• Dena Kurland (person) — former Chief Executive Officer and Director of Bling Marketing, Inc.
• Emergent, LLC (company) — Nevada LLC that was appointed custodian of the Company
• Advanced Surgical Partners (company) — affiliated entity that generated revenue for NuGene
• Genetic Institute of Anti-Aging, Inc. (company) — affiliated entity that co-branded products with NuGene

FAQ

Risk Factors

• Deteriorating Profitability and Accumulated Deficit [high — financial]: The company reported a net loss of $755,294 for the nine months ended September 30, 2025, a significant reversal from a net income of $408,436 in the prior year. The accumulated deficit increased to $21,140,081 as of September 30, 2025, indicating persistent unprofitability and a substantial erosion of shareholder equity.
• Declining Revenue and Gross Profitability [high — financial]: Revenues for the nine-month period decreased to $876,211 from $1,392,916 in the prior year. Furthermore, the company incurred a negative gross profit of $1,280,554 for the nine months ended September 30, 2025, worsening from a negative $729,377 in the prior year, signaling core operational unprofitability.
• Severe Dilution of Common Stock [high — financial]: The number of common shares outstanding increased dramatically from 812,799,962 as of January 1, 2025, to 2,279,753,594 as of September 30, 2025. This represents a nearly threefold increase, indicating substantial dilution for existing shareholders.
• Low Cash Position [high — financial]: Despite an increase from the beginning of the period, the company's cash balance at September 30, 2025, was only $10,585. This extremely low cash position raises significant concerns about the company's ability to meet its short-term obligations and fund ongoing operations.
• Shrinking Asset Base [medium — financial]: Total assets decreased from $47,591,411 as of December 31, 2024, to $44,517,551 as of September 30, 2025. This reduction in assets, coupled with declining revenues and increasing losses, suggests a contraction in the company's overall financial standing.
• Discontinued Historical Business [medium — operational]: The company has shifted its operations from its historical cosmeceutical business, which was discontinued by 2017, to financial management software based on artificial intelligence. This strategic pivot introduces risks associated with market adoption, competition, and execution in a new industry.
• High Professional Fees and Amortization [medium — financial]: Cost of Goods Sold (COGS) includes significant amounts for 'Professional fees RTS' ($689,563 for nine months) and 'Amortization RTS' ($1,467,202 for nine months). These substantial costs, contributing to negative gross profit, warrant scrutiny regarding their necessity and efficiency.

Industry Context

Livento Group operates in the financial management software sector, specifically targeting investment entities with AI-based solutions. This is a highly competitive and rapidly evolving market, driven by technological advancements and increasing demand for data-driven insights. Key competitors range from established enterprise software providers to specialized fintech startups, all vying for market share through innovation and customer acquisition.

Regulatory Implications

As a publicly traded company, Livento Group is subject to SEC regulations and reporting requirements. The significant increase in common shares outstanding and the company's persistent losses could attract scrutiny from regulators and investors regarding financial stability and corporate governance. Compliance with evolving data privacy and AI ethics regulations within the financial sector will also be crucial.

What Investors Should Do

1. Monitor revenue trends closely to assess the traction of the new AI-based financial management software.
2. Evaluate the company's ability to manage its operating expenses and improve gross margins to achieve profitability.
3. Assess the impact of ongoing share dilution on shareholder value and future capital raising efforts.
4. Investigate the nature and recoverability of the significant intangible assets in light of the business model shift.
5. Consider the extremely low cash balance and its implications for operational continuity and funding needs.

Glossary

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income. It represents the total losses incurred since the company's inception. (Indicates the company's long-term unprofitability, with the deficit increasing to $21,140,081 as of September 30, 2025.)

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. (Livento Group reported a negative gross profit of $1,280,554 for the nine months ended September 30, 2025, highlighting core business unprofitability.)

Additional Paid in Capital

The amount of money a company receives from selling stock above its par or stated value. (While substantial ($62,572,904), it has decreased slightly, and its ability to offset the accumulated deficit is diminishing.)

Intangible Assets

Non-physical assets that have value, such as patents, copyrights, and goodwill. In this case, it significantly contributes to total assets. (Represents a large portion of assets ($48,761,487), but has decreased from the prior year, and its recoverability is tied to the success of the new business model.)

Non-Controlling Interest

The portion of equity of a subsidiary that is not attributable to the parent company. (A small, consistent amount ($11,020) that does not appear to be a significant factor in the company's overall financial performance.)

Year-Over-Year Comparison

Compared to the prior year, Livento Group has experienced a significant downturn in financial performance. Revenues for the nine months ended September 30, 2025, fell by 37.1% to $876,211 from $1,392,916. The company swung from a net income of $408,436 to a net loss of $755,294. Gross profit turned negative, worsening from -$729,377 to -$1,280,554. Total assets also decreased, and the number of outstanding shares has more than doubled, indicating severe dilution.

Filing Documents

• form10-q.htm (10-Q) — 619KB
• ex21-1.htm (EX-21.1) — 5KB
• ex31-1.htm (EX-31.1) — 17KB
• ex32-1.htm (EX-32.1) — 7KB
• 0001493152-25-018563.txt ( ) — 3023KB
• nugn-20250930.xsd (EX-101.SCH) — 21KB
• nugn-20250930_cal.xml (EX-101.CAL) — 49KB
• nugn-20250930_def.xml (EX-101.DEF) — 76KB
• nugn-20250930_lab.xml (EX-101.LAB) — 214KB
• nugn-20250930_pre.xml (EX-101.PRE) — 147KB
• form10-q_htm.xml (XML) — 322KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to________ Commission File Number: 000-56457 Livento Group, Inc. (Exact name of registrant as specified in its charter) Nevada 46-3999052 (State of incorporation) (I.R.S. Employer Identification No.) 17 +1(980) 432-8241 (Address of principal executive offices) (Registrant's telephone number, including area code) NA (Former name, former address and former fiscal year, if changed since last report) Securities registered under Section 12(b) of the Act: Title of each class registered: None Name of each exchange on which registered: None Securities registered under Section 12(g) of the Act: Title of each class registered: Common Stock, par value $ 0.0001 Name of each exchange on which registered: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. for such shorter period that the registrant was required to submit and post such files). Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large, accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer Accelerated filer non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as September 30, 2025: 2,279,753,594 PART I—FINANCIAL INFORMATION Item 1. Financial Statements LIVENTO GROUP, INC., AND SUBSIDIARIES Condensed Consolidated Balance Sheet (Unaudited) As of Sep 30, 2025 As of December 31, 2024 ASSETS Current Assets Checking/Savings - - Cash 120,221.00 3,958 Total Checking/Savings $ 120,221.00 $ 3,958 Accounts Receivable 1,450,987 3,003,702 Other Current Assets Other Accounts Receivable 267,982 414,380 Inventories 0 0 Total Other Current Assets $ 267,982 $ 414,380 Total Current Assets $ 1,839,190 $ 3,422,040 Long Term Assets Long Term Investments 1,581,092 687,568 Property & Equipment 48,765 25,820 Goodwill 0 0 Intangible Assets 48,761,487 49,866,140 Other Assets 0 0 Deferred Long Term Asset Charges 0 0 Accumulated Amortization & Depreciation - 7,712,983 - 6,410,158 Total Fixed Assets $ 42,678,361 $ 44,169,371 TOTAL ASSETS $ 44,517,551 $ 47,591,411 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 124,089 455,989 Credit Cards 0 0 Other Current Liabilities Other Payables 87,622.00 227,063 Derivative Liabilities 0 0 Notes Payable 0 0 Payroll Liabilities 0 0 Related Parties Payable 0 0 Total Other Current Liabilities 87,622 227,063 Total Current Liabilities $ 211,711 $ 683,053 Long-Term Liabilities Co-Investments 2,586,077 3,472,020 Long-Term Business Loans 0 26,383 Total Long-Term Liabilities $ 2,586,077 $ 3,498,403 Total Liabilities $ 2,797,788 $ 4,181,456 Equity Additional Paid in Capital 62,572,904 62,981,525 Capital Stock 0 0 Common Stock 227,975 83,044 Common Stock to Issue after AGM 0 0 Dividends Paid 0 0 Opening Balance

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