Eva Live Inc. (GOAI) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This summary covers the quarterly period ended June 30, 2026. Eva Live Inc. operates at the intersection of digital marketing and media monetization, utilizing an AI-driven platform (Eva Platform) for programmatic media buying and campaign optimization. The company is classified as a Smaller Reporting Company and an Emerging Growth Company. In June 2026, the company formed a wholly-owned subsidiary, Eva Defense Inc., to pursue acquisitions in drone and defense technology sectors, though it had no operating history as of the period end.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|
| Total Revenue | $4,204,390 | $8,107,621 | $7,820,232 |
| Net Income (Loss) | $(1,749,757) | $(10,313,833) | $4,620,795 |
| Operating Loss | $(862,213) | $(9,968,607) | $4,634,063 (Income) |
| Cash and Equivalents | $2,238,216 | $2,238,216 (End of Period) | $261,079 (End of Period) |
| Working Capital | $19,439,564 | $19,439,564 | $9,679,283 |
| Accumulated Deficit | $(30,656,195) | $(30,656,195) | $(20,342,362) |
| Shares Outstanding | 39,252,186 | 39,252,186 | 31,342,285 |
Material Changes vs. Prior Period
- Revenue Composition Shift: While total revenue increased slightly (3.7% YTD), the mix changed significantly. Digital advertising revenue declined, while new "AI-driven marketing services" (contracts with Jet.AI and Braiin Limited) generated $1.81 million in revenue YTD 2026, compared to zero in 2025.
- Expense Surge: General and Administrative (G&A) expenses increased 1,493.8% YTD to $11.3 million. This is primarily driven by a one-time, non-cash stock-based compensation charge of $7.6 million related to the CEO's option award vesting in Q1 2026. Excluding this charge, cash G&A expenses declined sequentially from Q1 to Q2.
- Media Traffic Costs: Media traffic purchase costs rose 173.7% YTD to $6.78 million, representing 84% of revenue (compared to 32% in 2025), significantly compressing gross margins.
- Debt Financing: The company issued a $7.56 million Senior Secured Convertible Promissory Note to Streeterville Capital, LLC in February 2026. This resulted in a $247,000 "Day-1" loss on issuance and the recognition of a $4.56 million derivative liability.
- Asset Structure: Accounts receivable increased to $17.5 million (net), with 88% of the balance aged over 90 days. The company also received $3.0 million in equity securities from Psquared Inc. in settlement of receivables.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern Warning: Management has concluded that conditions raise substantial doubt about the company's ability to continue as a going concern for one year following the report date. This is due to operating losses, negative operating cash flow ($5.2 million used YTD), and reliance on aged receivables and financing activities.
- Liquidity Plan: The company plans to fund operations through an At-The-Market (ATM) equity offering (limited by public float to ~$3.1 million remaining capacity), collection of aged receivables, and reduction of media traffic costs. Management does not believe these plans are probable of fully mitigating the going concern doubt.
- Derivative Liability Volatility: The company recognized a net gain of $1.39 million YTD on the change in fair value of the derivative liability associated with the Streeterville Note, though this was a loss of $345,542 in Q2 alone.
- Subsequent Events: Post-period, the company entered into a new $2.16 million convertible note with Streeterville Capital (July 2026) and executed multiple conversions of existing notes, increasing share count to ~39.75 million.
- Internal Controls: The company disclosed a material weakness in internal controls over financial reporting due to inadequate segregation of duties and limited personnel.
Investor Verification Checklist
- Receivables Collectability: Verify the collectability of the $15.4 million in accounts receivable aged over 90 days, which comprises the majority of working capital.
- Media Cost Normalization: Monitor if media traffic purchase costs revert to historical levels (~41-45% of revenue) as management projects, or if they remain elevated at ~84%.
- ATM Offering Capacity: Track the company's public float and stock price to determine the remaining capacity under the Form S-3 ATM offering, which is currently capped at approximately $3.1 million.
- Streeterville Note Redemption: Assess the risk of the contingent redemption right on the Streeterville Note if the stock price remains below the $1.04 floor price for ten consecutive trading days.
- Non-Cash Revenue: Evaluate the liquidity impact of revenue settled in non-cash equity securities (Jet.AI, Braiin, Psquared) versus cash collections.