Investment Thesis
Livento Group exhibits a fundamentally broken business model with negative gross margins of -146%, indicating the company loses money on every dollar of revenue. Combined with 15.4% YoY revenue decline from a minimal $876.2K base and critical cash depletion to $120.2K, the company faces severe distress despite maintaining balance sheet equity.
Strengths
- Zero debt (0.00x debt/equity) eliminates financial leverage risk and bankruptcy scenarios
- Strong stockholders' equity of $41.7M provides balance sheet cushion for interim survival
- Positive operating cash flow of $551.7K demonstrates some near-term liquidity generation
Risks
- Catastrophic negative gross margin of -146% indicates structural business model failure that cannot be fixed incrementally
- Revenue declining 15.4% YoY from minimal base of $876.2K with widening operating losses signals loss of market relevance
- Critical cash position of $120.2K against operating losses creates severe near-term solvency risk and runway constraint
Key Metrics to Watch
- Gross margin path to profitability and structural business model sustainability
- Monthly cash burn rate and cash runway to negative equity
- Revenue growth inflection and customer retention metrics
Financial Metrics
Revenue
876.2K
Net Income
-755.3K
EPS (Diluted)
$0.00
Free Cash Flow
551.7K
Total Assets
44.5M
Cash
120.2K
Profitability Ratios
Gross Margin
-146.1%
Operating Margin
-187.9%
Net Margin
-86.2%
ROE
-1.8%
ROA
-1.7%
FCF Margin
63.0%
Balance Sheet & Liquidity
Current Ratio
8.69x
Quick Ratio
8.69x
Debt/Equity
0.00x
Debt/Assets
6.3%
Interest Coverage
-245.57x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-12T16:03:24.829219 |
Data as of: 2025-09-30 |
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