OTC:LIVG
Livento Group, Inc.
A diversified investment holding entity with $47.6M in total assets facing persistent operational losses and negative operating cash flow.
Key Metrics
Investment Thesis
Bull Case
Investors might consider LIVG as a deep-value opportunity given its low liability structure and substantial underlying asset value relative to its market capitalization. The company's ability to raise capital via financing activities provides flexibility for restructuring operations or acquiring undervalued assets without immediate cash pressure. Potential buyers could aim to restructure the existing $43.5M in operating intangibles to unlock hidden value.
Bear Case
The stock carries high risk due to three consecutive years of net losses and a shrinking revenue base that has declined by 15% since 2022. Negative operating cash flow and a massive retained earnings deficit indicate ongoing operational inefficiencies that have not been resolved despite significant asset holdings. Investors should be wary of the company's inability to turn profitable without external capital infusion or major strategic changes.
About Livento Group, Inc.
Livento Group, Inc. (LIVG) operates as a diversified investment holding company with significant long-term assets and operating intangibles valued at $43.5 million. The firm generates revenue through various strategic investments and business operations while managing a substantial paid-in capital base of $63.0 million. Recent financial reports indicate the company is navigating cash flow challenges, resulting in net losses for the last three years.
Analysis
Management Discussion
Management has successfully maintained a positive cash flow from financing activities of $480,261 through share issuances totaling $410,261, yet the company continues to burn cash with operating cash flows and net income both reporting losses. Despite holding significant long-term assets and intangibles, the inability to generate positive operational earnings has widened the retained earnings deficit significantly over the past three years.
Industry Overview
Livento operates within the broader investment holding and asset management sectors where value is often derived from undervalued portfolios rather than traditional service revenue. The industry is characterized by high volatility in asset valuations and a reliance on capital markets for liquidity and growth opportunities. Companies in this space often face pressure to monetize long-term assets or generate consistent cash flows to avoid dilution.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $2.0M | $2.0M | $1.7M |
| Cost of Revenue | $2.1M | $2.9M | $2.9M |
| Gross Profit | $-105.1K | $-934.8K | $-1.2M |
| Operating Expenses | $482.3K | $5.6M | $911.6K |
| Operating Income | $-587.4K | $-6.5M | $-2.2M |
| G&A | $358.2K | $5.4M | $911.6K |
| Other OpEx | $124.1K | $215.1K | $0 |
| Non-Operating Income | $0 | $0 | $0 |
| Pre-Tax Income | $-587.4K | $-6.5M | $-2.2M |
| Income Tax | $-100.3K | $26.7K | $-1.6M |
| Continuing Ops | $-487.2K | $-6.6M | $-596.4K |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-487.2K | $-6.6M | $-596.4K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-487.2K | $-6.6M | $-596.4K |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $635.5K | $1.1M | $3.4M |
| Cash & Equivalents | $24.2K | $30.6K | $4.0K |
| Accounts Receivable | $489.9K | $682.1K | $3.0M |
| Other Current Assets | $121.5K | $355.0K | $414.4K |
| Long-Term Assets | $22.7M | $45.8M | $44.2M |
| Intangibles | $12.7M | $45.1M | $43.5M |
| LT Investments | $10.0M | $654.3K | $687.6K |
| Other LT Assets | $1 | $0 | $0 |
| Total Assets | $23.3M | $46.9M | $47.6M |
| Current Liabilities | $3.2M | $409.6K | $683.1K |
| Accounts Payable | $139.5K | $323.9K | $456.0K |
| Other Current Liab | $3.1M | $85.7K | $227.1K |
| Long-Term Liabilities | $1 | $3.4M | $3.5M |
| Total Liabilities | $3.2M | $3.8M | $4.2M |
| Shareholders' Equity | $20.1M | $43.0M | $43.4M |
| Paid-In Capital | $32.5M | $61.9M | $63.0M |
| Retained Earnings | $-12.5M | $-18.9M | $-19.7M |
| Total L&E | $23.3M | $46.9M | $47.6M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-487.2K | $-6.6M | $-596.4K |
| Non-Cash Adjustments | $697.6K | $5.4M | $-2.2M |
| Working Capital Changes | $311.6K | $693.6K | $2.6M |
| Cash from Operations | $522.1K | $-433.1K | $-155.9K |
| Capital Expenditures | — | $0 | $0 |
| Cash from Investing | $-4.4M | $-1.4M | $-351.0K |
| Cash from Financing | $3.4M | $1.9M | $480.3K |
| FX Effect | $1 | $0 | $0 |
| Net Change in Cash | $-460.0K | $6.5K | $-26.7K |
| Beginning Cash | $484.2K | $24.2K | $30.6K |
| Ending Cash | $24.2K | $30.6K | $4.0K |
Frequently Asked Questions
How does Livento Group, Inc. make money?
The company's revenue streams are derived primarily from its extensive portfolio of long-term assets valued at $44.2 million and a significant block of operating intangible assets totaling $43.5 million, supported by a robust paid-in capital structure.
What are the main risks for LIVG?
1. Persistent profitability issues evidenced by a net profit deficit of -$596,394 and negative operating cash flow of -$155,903. 2. Revenue contraction trend with income dropping from $2.0M in 2022/2023 to $1.7M in 2024. 3. Accumulating retained earnings deficit of -$19.7M which may require future dilution or asset sales to cover.
What is LIVG's competitive advantage?
1. Substantial asset base with $47.6M in total assets providing potential for future monetization or strategic pivots. 2. Strong equity cushion relative to liabilities with shareholders' equity standing at $43.4M against only $4.2M in total liabilities. 3. Significant paid-in capital of $63.0M suggests strong initial funding or investor confidence in the underlying asset value.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.