Executive Summary / Key Takeaways

• Livento Group, Inc. (NUGN) is undergoing a significant strategic pivot, transforming from its historical roots into a diversified entity focused on artificial intelligence (AI) financial software (Elisee) and capital-intensive entertainment production (BOXO Productions).
• Recent Q2 2025 financials reveal a shift in revenue composition, with movie projects contributing a substantial $535,600 to "other income," while traditional software/services revenue saw a decline. The company reported a net loss of $530,209 for H1 2025, heavily influenced by amortization of intangible assets.
• Elisee, NUGN's proprietary AI software, is projected to grow its annual revenue from approximately $1.5 million to $2.5 million from 2025, indicating a strong growth trajectory for this segment.
• Despite positive operating cash flow in H1 2025 ($499,240), NUGN faces significant liquidity challenges, with cash resources of $189,577 deemed "inadequate to execute our growth plans," necessitating further investment.
• The company operates in highly competitive markets for both AI and content creation, requiring robust execution and capital to challenge established giants like NVIDIA (NVDA), Microsoft (MSFT), and Netflix (NFLX).

A Diversified Play in High-Growth Sectors

Livento Group, Inc. (NUGN) presents a compelling, albeit high-risk, investment narrative centered on its strategic pivot into two dynamic, high-growth sectors: artificial intelligence (AI) financial software and entertainment production. This dual-engine strategy aims to leverage technological innovation in AI while capitalizing on the creative and potentially high-margin opportunities within film and game development. The company's journey reflects a series of transformations, ultimately leading to its current diversified model, which seeks to mitigate risk and unlock new value streams.

The company's current strategic direction is a direct outcome of its complex history. Incorporated in 2013 as a jewelry wholesaler, it later merged with NuGene Inc., a skincare company leveraging stem cell technology. This venture, however, became inactive by 2017 due leading to a period of dormancy. The modern NUGN emerged in March 2022 through the acquisition of Livento Group, LLC, bringing with it the AI software capabilities and a renewed vision for diversification. This evolution underscores management's adaptability and willingness to pursue new opportunities in response to market demands and financial realities.

NUGN operates within industries characterized by rapid change and intense competition. In the AI software market, it contends with tech giants like Microsoft and specialized hardware providers such as NVIDIA. These competitors boast immense scale, deep R&D budgets, and established market positions, often leading in innovation speed and market share capture. Similarly, in entertainment, NUGN's BOXO Productions competes with industry behemoths like Netflix, which command vast content libraries and global distribution networks. NUGN's strategy in these landscapes is to carve out niche positions, leveraging its proprietary technology and agile approach.

Technological Edge: The Elisee AI Platform

At the heart of NUGN's technology strategy is Elisee, its proprietary AI-driven financial management software. Elisee is designed as an automated system capable of analyzing large quantities of market data, focusing on selected parameters, and predicting short-term future behavior within specific asset portfolios. Its core function is to identify assets with the highest potential based on predefined specifications and properties, offering predictive insights for investment management. This technology, under continuous development since 2018, represents a significant investment, with research expenses totaling $5.79 million.

The tangible benefits of Elisee are centered on its analytical and predictive capabilities, offering clients data processing and analytical services in the investment management sector. Management projects that Elisee, which currently generates approximately $1.5 million in annual revenue, is expected to produce $2.5 million annually from 2025 as upgraded versions are offered to more clients. This anticipated 66% growth in annual revenue from Elisee highlights its potential as a core earnings driver. The expected useful life of the AI Learning Program is 3 years, indicating a need for continuous innovation to maintain its competitive edge.

For investors, Elisee's proprietary nature and its focus on predictive analytics in investment management provide a crucial competitive moat. While larger players like Microsoft offer broad AI platforms, NUGN's specialization in financial data analysis could attract a dedicated client base seeking tailored solutions. This differentiation is vital in a competitive software market, allowing NUGN to potentially achieve higher average selling prices or secure more favorable contract terms by offering a specialized, high-value service. The ability to offer upgraded versions and expand its client base is critical for realizing the projected revenue growth and enhancing NUGN's market positioning.

The Entertainment Frontier: BOXO Productions

Beyond AI, NUGN has established a significant footprint in the entertainment industry through BOXO Productions Inc., investing in movie and game development projects. This segment focuses on acquiring intellectual rights to books, movies, and scripts, developing them into complete movie scripts, and then offering them to large distribution studios. BOXO's revenue model is designed for high margins, with a 40% margin on assets pre-sold to distributors and a 15% to 25% revenue share once projects enter cinemas or online streaming platforms.

BOXO Productions currently has 45 projects acquired, with two initial movies successfully entering distribution in 2024. Each movie or game asset typically requires 15 to 18 months to reach completion and has an expected useful life of 15 years. This long asset life cycle, combined with the potential for substantial revenue shares, positions BOXO as a significant future cash flow generator for NUGN. This diversification into entertainment provides a distinct growth vector, balancing the technology focus with creative content.

However, the entertainment industry is notoriously capital-intensive, with production projects frequently costing over $30 million. NUGN's ability to fund these projects relies heavily on external investors for each specific project, posing a significant risk. The success or failure of individual projects can materially impact BOXO's ability to raise funds for subsequent ventures, and delays in securing capital could negatively affect results. Furthermore, BOXO's reliance on personal relationships within its team, rather than formal agreements, introduces key-person risk, as the departure of consultants could adversely affect production capabilities. Despite these challenges, the segment's potential for high-margin revenue and its role in diversifying NUGN's income streams are critical to the investment thesis.

Financial Performance and Liquidity: A Transformative Phase

NUGN's financial performance for the three and six months ended June 30, 2025, reflects a company in a transformative phase, marked by shifting revenue dynamics and ongoing investments. For Q2 2025, total revenues reached $769,731. This figure was composed of $134,131 from Elisee sales, $100,000 from management services for Global Dot Logistics, and a significant $535,600 from movie projects, categorized as "Other Income."

This represents a notable shift compared to Q2 2024, where total revenues were $924,014, with "Revenues" (software/services) at $558,707 and "Other Income" (movies) at $365,307. While movie project income grew by 46.62% year-over-year in Q2 2025, the software/services revenue declined by 58.08%, indicating a rebalancing of income streams.

For the first half of 2025, total revenues were $1.08 million, a substantial decrease from $2.36 million in the first half of 2024. The company reported a net loss of $530,209 for H1 2025, a reversal from a net income of $818,364 in H1 2024. This loss was significantly impacted by amortization of intangible assets, which amounted to $500,983 in Q2 2025 and $1.01 million in H1 2025, alongside stock-based compensation. The gross profit remained negative, at -$356,909 for Q2 2025 and -$838,056 for H1 2025, underscoring that the cost of generating revenue, particularly amortization, currently outweighs direct income.

Despite the net losses, NUGN demonstrated positive operating cash flow in the recent period, with $508,252 for Q2 2025 and $499,240 for H1 2025.

This is a crucial indicator of operational health, suggesting that the core businesses are generating cash before accounting for non-cash expenses like amortization and significant investment activities. However, the company's liquidity remains a concern. As of June 30, 2025, cash resources stood at approximately $189,577, which management explicitly stated is "inadequate to execute our growth plans, but should allow us to operate at current levels."

This highlights a dependence on additional investment and the successful monetization of its Elisee software and movie projects. A recent financing agreement for $75,600, convertible into common shares at a discount, further illustrates this capital need.

NUGN's TTM financial ratios reflect the challenges of its current stage. Gross Profit Margin, Operating Profit Margin, Net Profit Margin, and EBITDA Margin are all significantly negative, primarily due to the substantial amortization of intangible assets and the investment phase of its projects. While the Current Ratio of 5.89 appears strong, the low cash balance indicates a need for careful working capital management. The company's P/E ratio is negative, as expected for a loss-making entity, and its P/S ratio of 4.06 suggests that the market is assigning some value to its future growth potential.

Outlook and Strategic Initiatives

Looking ahead, NUGN's management has provided concrete guidance for its AI segment, projecting Elisee's annual revenue to increase from approximately $1.5 million to $2.5 million from 2025. This 66% growth target is predicated on offering upgraded versions of the software to more clients, underscoring the importance of continuous technological development and market expansion. The company also anticipates increased income streams from Global Dot Logistics management services and BOXO movie projects once the FINRA Name Change process is completed, expecting new opportunities to arise from being a "fully FINRA approved company."

Management has expressed a desire to share success with shareholders, stating that while no dividends have been paid on common stock, this option will be discussed and approved once the company's situation allows. This forward-looking statement, while not a commitment, signals a long-term vision for shareholder returns.

Risks and Challenges

Investing in NUGN comes with a distinct set of risks inherent in its diversified, growth-oriented strategy. The capital-intensive nature of BOXO's movie production projects, often exceeding $30 million, requires continuous external funding, which is not assured. The reliance on personal relationships within the BOXO team, rather than formal agreements, introduces key personnel risk, as the departure of key consultants could severely impact production capabilities.

In the software domain, the highly competitive business software development market, populated by both large and small players, poses a threat. While NUGN believes its Elisee platform is unique, there is no guarantee that competitors will not develop or enhance similar features, eroding NUGN's competitive advantage. Cybersecurity risks are also pertinent, given that both movie projects and Elisee software are stored online, necessitating robust protection measures.

Financially, NUGN's limited cash resources and dependence on additional investment are significant concerns. The timing and occurrence of client payments for its services also affect cash flow, requiring close monitoring. Furthermore, the company's status as a "penny stock" on the Pink Sheets, coupled with its "emerging growth company" designation under the JOBS Act, may limit its attractiveness to a broader investor base and make it more challenging to raise capital. The concentration of voting power with CEO David Stybr, who holds 51% of the total shareholder vote through preferred stock, means minority stockholders will have limited influence on corporate actions. The costs associated with public company compliance also contribute to ongoing losses.

Conclusion

Livento Group, Inc. is charting an ambitious course, transforming into a dual-engine enterprise powered by AI financial software and entertainment production. The company's proprietary Elisee platform offers a compelling technological advantage with clear revenue growth projections, while BOXO Productions provides a diversified, high-margin revenue stream from content creation. This strategic pivot, born from a history of adaptation, positions NUGN in dynamic markets with significant upside potential.

However, the path to sustained profitability and market leadership is fraught with challenges. NUGN's current financial state, characterized by net losses and limited liquidity, underscores its reliance on successful execution of its growth plans and the ability to secure further investment. The intense competition from well-capitalized industry giants in both AI and entertainment demands exceptional innovation and operational efficiency. For discerning investors, NUGN represents a high-risk, high-reward opportunity, where the successful realization of its technological roadmap and entertainment ventures could unlock substantial value, provided it can effectively navigate its capital constraints and competitive pressures.