Eva Live Inc. (GOAI) - 10-K Summary for Fiscal Year Ended December 31, 2025
Business Context and Reporting Period
Company: Eva Live Inc. (GOAI)
Reporting Period: Fiscal Year Ended December 31, 2025
Business Model: Digital marketing and media monetization utilizing the AI-driven "Eva Platform" and "Eva XML Platform" to match advertising campaigns to ad spots. The company operates on a principal-based model, recognizing total ad spend as revenue.
Listing Status: Successfully uplisted to the Nasdaq Capital Market on January 28, 2026.
Corporate History: Formed via a reverse merger with EvaMedia Corp. in 2021. The transaction was reclassified as a reverse capitalization in 2024, eliminating previously recorded goodwill.
Key Financial Metrics
| Metric | 2025 (Audited) | 2024 (Audited) |
|---|---|---|
| Total Revenue | $17,037,328 | $9,330,971 |
| Net Income (Loss) | $8,127,313 | $(3,753,268) |
| Operating Expenses | $8,817,071 | $13,055,886 |
| Cash and Equivalents | $202,524 | $76,356 |
| Working Capital | $9,679,283 (Surplus) | $1,560,391 (Surplus) |
| Accounts Receivable (Net) | $16,006,624 | $4,023,578 |
| Notes Payable (Principal) | $985,330 | $400,000 |
| Accumulated Deficit | $(20,342,362) | $(28,469,675) |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 82.59% year-over-year, driven by increased client spending and an expansion in active clients (17 in 2025 vs. 16 in 2024).
- Profitability Turnaround: The company moved from a net loss of $3.75M in 2024 to a net income of $8.13M in 2025. This was primarily due to revenue growth and a significant reduction in General and Administrative (G&A) expenses (down 75.97% to $1.8M), largely attributed to lower share-based compensation and financing costs.
- Accounts Receivable Surge: Net accounts receivable increased by $11.98M to $16.0M. Approximately 79% of receivables were aged over 90 days as of year-end, though management recorded no allowance for credit losses based on customer creditworthiness.
- Debt Financing: The company issued multiple high-cost promissory notes in 2025. Effective interest costs ranged from 21% to 39.56% due to original issue discounts (OID) and transaction fees.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern: Despite 2025 profitability, auditors (Lao Professionals) expressed substantial doubt about the company's ability to continue as a going concern due to the accumulated deficit of $20.3M and the heavy concentration of assets in aged receivables. Management plans to rely on receivable collections and additional financing.
- Subsequent Financing: On February 23, 2026, the company entered a secured convertible note agreement with Streeterville Capital, LLC for $7.56M principal (gross proceeds ~$7.0M). This note is secured by substantially all company assets.
- Customer Concentration: The top three customers represented over 61% of revenue in 2025. The top four customers represented 82% of receivables. Loss of these clients poses a significant risk.
- Debt Terms: Outstanding notes with 1800 Diagonal and Boot Capital contain aggressive terms, including conversion rights upon default at a 35% discount to market and default interest rates of 22% per annum. Several notes were converted to equity in January 2026.
- Internal Controls: Management disclosed material weaknesses in internal controls over financial reporting, citing inadequate segregation of duties due to limited personnel.
Investor Verification Checklist
- Receivable Collectability: Verify the status of the $16M in accounts receivable, specifically the portion aged over 90 days, to assess the quality of the 2025 net income.
- Debt Conversion Risk: Review the terms of the outstanding promissory notes (Diagonal #4, #5, #6, #7 and Boot #3, #4) to understand potential dilution if default events occur.
- Streeterville Note Security: Confirm the impact of the February 2026 secured note on the company's asset base and operational flexibility.
- Customer Retention: Monitor the retention of the top three customers, which drive the majority of revenue.
- Internal Control Remediation: Assess the timeline and effectiveness of plans to remediate material weaknesses in financial reporting controls.