Livento Group, Inc. (NUGN) 2024 10‑K Review: AI, Real Estate & Hollywood Ambitions

Every year, investors scour SEC filings for a glimpse into a company’s operations, growth prospects, and emerging risks. Livento Group, Inc. (OTC Pink: NUGN), formerly NuGene International, released its 10‑K for the year ended December 31, 2024, revealing an ambitious trifecta of businesses: a machine‑learning portfolio optimizer (“Elisee”), residential real‑estate development in the Czech Republic, and a film‑and‑television production arm under the BOXO Productions banner.

Warren.AI 💰 3.2 / 10

We’ve distilled the most salient points, key financial figures, and strategic considerations below to help you decide if Livento has the potential to deliver blockbuster returns—or if it’s headed for the cutting‑room floor.

1. Corporate Background & Business Model

Origins & pivot
NuGene began in 2007 as a niche skincare cosmeceutical using adipose‑derived stem cells, generating minimal revenues. After multiple pivots and a dormant period, Ms. Milan Hoffman revived the shell company in 2020 as Emergent, LLC — then sold control to David Stybr’s Livento Group, LLC in March 2022. Stybr injected his AI and real‑estate ventures into the public shell, renamed Livento Group, Inc.

Three operating pillars

1. Elisee AI Software
   • Services: Portfolio analysis on client‑specified asset indexes (DJIA, DAX, etc.)
   • Subscription: 12‑month SaaS contracts, billed quarterly, recognized ratably.
   • 2024 Revenue: $1.12 million (66% of total).
2. Residential Real Estate (Czech Republic)
   • 2020‑22: Developed a 15‑unit condominium project.
   • All 15 units contracted at $12 million gross sales; development cost ~ $3 million.
   • Booked gross profit ~$5 million (most realized by end of 2022).
   • One smaller project ($825k invested) under contract, no new dev planned.
3. BOXO Productions (Film & TV)
   • Formed June 2022; film‑financing business model: $300k‑$700k co‑investment per project.
   • Acquired 45 projects (all stages) in May 2023 via 391 million shares valued at $22.32 million.
   • 2022‑23: Produced three features (“Carnival of Killers,” “Running Wild,” “Wash Me in the River”).
   • Revenues recognized as projects are distributed and streaming rights sold.

Employees
Eleven team members: 3 AI devs, 2 admins, 3 core producers, 3 financial & management.

2. 2024 Financial Highlights

Top‑Line
• Total Revenue: $1.691 million (versus $2.006 million in 2023).
– Elisee: $1.122 million (66%).
– Film & Management Services: $569k (34%).

Cost of Revenue & Gross Margin
• Cost of Revenues: $2.936 million
– Amortization of Intangibles: $2.110 million.
– AI & Consulting fees: $826k.
• Gross Margin: – $1.245 million (– 74%).

Operating Expenses
• G&A Expenses: $912k
– Legal & accounting: $40k
– Contract labor & cloud fees: $59k
– Marketing & travel: $39k
– Uncategorized (film/legal prep): $501k
• Net Loss from Ops: – $2.157 million.

Other Income
• Other Income: $1.560 million (primarily non‑cash film asset transfers).
• Net Loss (2024): – $596k (vs. – $6.546 million in 2023 when stock‑based compensation spiked $4.08 million).

Balance Sheet
• Total Assets: $47.591 million
– Intangibles, net: $43.482 million
– Accounts Receivable: $3.004 million
• Liabilities: $4.181 million
– Co‑investment loans: $3.498 million
– AP & accruals: $0.683 million
• Stockholders’ Equity: $43.410 million
– Common stock: 830.44 million shares outstanding
– Additional Paid‑In Capital: $62.982 million
– Accumulated Deficit: – $19.705 million

Cash Flow
• 2024 Operating Cash Flow: – $156k
• 2024 Investing: – $351k (R&D & film prep capex)
• 2024 Financing: + $480k (equity raises, note proceeds)
• Year‑end Cash: $3,958

3. 10‑K Analysis & Key Takeaways

Strengths
• Elisee traction
– $1.1 million in 2024 SaaS revenue, repeatable quarter‑over‑quarter model.
– Diversified client base across funds/family offices.
• Real‑estate profitability
– Executed $5 million gross profit on 15‑unit Czech project.
– Strong local demand in Prague suburbs.
• Content demand
– Post‑COVID global film market hungry for new IP; BOXO has seasoned producers.
– 45 project pipeline (purchase of IP rights).

Weaknesses & Risks
• Structural losses
– 2024 net loss of $596k; persistent negative gross margin (– 74%) due to high amortization.
– Operating burn: film R&D is capital hungry with uncertain timing of cash inflows.
• Balance sheet leverage
– Incurs co‑investment loans ($3.5 million); requires sustained cash commitment from partners.
– High intangibles: $43.5 million on books — potential write‑downs if projects underperform.
• Dilution risk
– Frequent stock issuances to finance IP and R&D; 1.98 billion authorized, 0.83 billion issued.
– Overhang of shares may pressure penny‑stock pricing.
• Liquidity & control
– OTC Pink listing: limited trading volume, wider spreads, less institutional interest.
– CEO Stybr controls 51% voting power via Series A Preferred.

4. Investment Score: 3.2 / 10

Rationale
Livento sits at the intersection of high‑growth niches (AI & digital assets, real estate, content production). Its Elisee platform is generating core SaaS revenue, and the real‐estate leg has demonstrated clear profits. However, continuing losses, heavy non‑cash amortization, reliance on dilutive financing, and film‑biz uncertainties create steep hurdles to profitability and share‐price appreciation. OTC Pink status adds liquidity and transparency concerns.

Score: 3.2
Risks dominate in the near term, but a successful scale‑up of Elisee or a breakout film hit could transform the story. Investors should treat NUGN as a speculative, project‑by‑project play rather than a stable growth stock.

5. Risk Factors & Disclosure Controls

Key risks (Item 1A, abridged):
– Film production cost overruns and distribution delays.
– Market volatility for AI‑driven portfolio outcomes.
– Inadequate internal controls; material weaknesses in financial reporting.
– Low liquidity; high share dilution.
– Regulatory risk in real estate development abroad.

Auditor and controls (Item 9A):
– Material weaknesses: no formal documentation of internal controls; lack of segregation of duties; dormant audit committee.
– Management remedies: plan to hire finance officers, establish written policies, and appoint independent audit committee members.

6. Conclusion: A High‑Risk/High‑Reward Spec Play

Livento Group, Inc. is not your typical micro‑cap: it straddles three capital‑intensive industries with very different return profiles. The Elisee AI business shows early SaaS traction and recurring revenues, a positive signal. The Czech condo project validated the company’s real estate capabilities. But the film slate ($22 million of IP on the balance sheet) is a bet on blockbuster or bust, and the lack of operating profits and ongoing dilution will put pressure on shareholders.

Investor takeaways
• If you believe in niche AI portfolio tools and have the conviction that BOXO will deliver a hit film, this ticker could be an asymmetric gamble.
• For most investors, the stock’s structural losses, massive intangible write‑downs, and liquidity uncertainty mean a conservative allocation or wait‑and‑watch approach.

Next catalysts
– 2025 subscription renewals and new clients for Elisee.
– Distribution agreements and revenue recognition from the first three films.
– Finalized sales proceeds from the secondary real estate project.
– Appointment of independent audit committee; remediation of financial controls.

This blog post is not financial advice. Always conduct your own research, consult with a licensed advisor, and assess risks carefully before making any investment.