Eva Live Inc. (GOAI) - Q3 2025 10-Q Summary
Business Context and Reporting Period
This filing covers the quarterly period ended September 30, 2025. Eva Live Inc. operates an AI-driven digital marketing and media monetization platform (Eva Platform) that matches advertising campaigns with ad spots. The company utilizes a principal-based revenue model, purchasing media inventory and reselling it to clients, primarily advertising agencies in North America. The company is classified as a smaller reporting company and an emerging growth company.
Key Financial Metrics
| Metric | Q3 2025 (3 Months) | Q3 2024 (3 Months) | YTD 2025 (9 Months) | YTD 2024 (9 Months) |
|---|---|---|---|---|
| Total Revenue | $4,913,318 | $1,982,252 | $12,733,550 | $6,407,818 |
| Net Income (Loss) | $1,824,316 | $(4,951,202) | $6,445,111 | $(5,114,854) |
| Operating Income (Loss) | $1,862,325 | $(4,935,327) | $6,496,388 | $(5,092,500) |
| Cash and Equivalents | $349,282 | $849,263 (End of Q3 2024) | $349,282 | $849,263 |
| Working Capital | $7,996,828 | $(205,802) (Deficit) | $7,996,828 | $(205,802) |
| Notes Payable | $996,520 | $400,000 | $996,520 | $400,000 |
| Accounts Receivable (Net) | $12,800,952 | $4,023,578 | $12,800,952 | $4,023,578 |
Margins: The company reported a net margin of approximately 37% for Q3 2025 and 51% for the nine months ended September 30, 2025. This is a significant improvement from the losses reported in the prior year periods.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 148% quarter-over-quarter (Q3 2025 vs. Q3 2024) and 99% year-to-date, driven by larger contract sizes and improved platform performance.
- Profitability Turnaround: The company transitioned from a net loss of $4.95M in Q3 2024 to a net income of $1.82M in Q3 2025. This shift is largely attributed to a reduction in General and Administrative (G&A) expenses, which dropped from $5.96M in Q3 2024 to $0.53M in Q3 2025. The prior year's G&A included $5.56M in stock-based compensation for services, which was not present in the current period.
- Accounts Receivable: Net accounts receivable surged to $12.8M (up from $4.0M in 2024), resulting in a Days Sales Outstanding (DSO) of approximately 90 days. Management attributes this to longer collection cycles with new enterprise clients.
- Debt Financing: Notes payable increased to $996,520 from $400,000. The company entered into multiple promissory notes (Diagonal and Boot Notes) in 2025 with interest rates ranging from 12% to 13% and original issue discounts (OID).
Guidance, Outlook, and Risks
- Going Concern: Despite recent profitability, the company maintains a "Going Concern" warning. Auditors have expressed substantial doubt about the company's ability to continue operations due to a history of accumulated deficits ($22.0M) and reliance on future capital. Management plans to raise additional capital through equity or debt to fund operations for the next 12-24 months.
- Public Offering: The company filed an S-1/A registration statement to offer up to 1,212,121 Units (common stock + warrants) with Maxim Group LLC as underwriter. The goal is to raise up to $5 million to fund platform development, marketing, and working capital.
- Customer Concentration: The top three customers accounted for 88% of receivables as of September 30, 2025. The company's financial health is highly dependent on these clients.
- Internal Controls: Management disclosed that disclosure controls and procedures were not effective as of September 30, 2025, due to material weaknesses including inadequate segregation of duties and insufficient written policies.
- Debt Covenants: Several notes contain conversion features that become exercisable upon default, potentially causing significant dilution. As of the filing date, no default has occurred.
Investor Verification Checklist
- Cash Flow Quality: Verify the collection of the $12.8M in accounts receivable, as operating cash flow was negative ($265k) for the nine months ended September 30, 2025, despite positive net income.
- Debt Service: Confirm the company's ability to meet monthly payment obligations on the new promissory notes (approx. $13k-$33k/month) without triggering default conversion clauses.
- Revenue Sustainability: Assess the risk of revenue concentration given that 88% of receivables are tied to the top three customers.
- Capital Raise Execution: Monitor the status of the S-1/A public offering to determine if the projected $5M in proceeds will be realized to address the going concern warning.
- Internal Control Remediation: Review future filings for progress on remediation of the material weaknesses in internal controls over financial reporting.