Eva Live Inc

Eva Live Inc. operates at the intersection of digital marketing and media monetization, leveraging its proprietary Eva Platform, which is based on Artificial Intelligence (AI), to match advertising campaigns to specific ad spots. The company's system creates conversion mapping tables to analyze trends with optimized historical conversion rates, aiming to increase and improve these rates. It utilizes "big data" and automated tools to analyze this data, feeding relevant information into its decision logic to optimize brand awareness and direct response campaigns with fixed conversion points. The company's typical customers are advertising agencies (SIC7319) and businesses across various industries, including media companies, financial institutions, and retail entities, primarily from North America, specifically the US and Canada.

The core business model of Eva Live Inc. is centered on generating revenue through its Eva Platform by providing digital advertising services, including programmatic media buying, AI-driven campaign optimization, and media traffic arbitrage across major advertising networks. The company currently operates on a principal-based model, where it takes the principal position in contracts, buying media (advertising inventory) directly from media sellers and repackaging it for sale to clients. It recognizes the total Ad Spend of the client as its revenue. The company also performs other advertising and branding work, such as developing landing pages, websites, widget designs, and banner designs. While an agency-based model is also described, where the company would act as an agent and charge a platform fee, it currently derives all its revenues from the principal-based model.

The company's primary product is the Eva Platform, an automated and intelligent advertiser campaign management platform that uses AI to match advertising campaigns to specific ad spots one at a time. This platform is designed to optimize brand campaigns for awareness and direct response campaigns with a fixed conversion point. Additionally, the company owns the Eva XML Platform, which buys traffic from various sources and sells it to landing pages displaying advertising via XML feeds. This platform manages the entire ad buying/selling process by integrating with major ad service providers like Google, Microsoft, Taboola, Revcontent, Gemini, and Facebook, enabling the creation of thousands of ads with a single button push and managing spending to maximize arbitrage revenue.

For the fiscal year ended December 31, 2025, Eva Live Inc. reported total revenue of $17,037,328 ¹, a significant increase from $9,330,971 ² in the fiscal year ended December 31, 2024. The company achieved a net income of $8,127,313 ³ in 2025, a substantial improvement from a net loss of $3,753,268 ⁴ in 2024. Operating expenses for 2025 were $8,817,071 ⁵, compared to $13,055,886 ⁶ in 2024. Basic and diluted EPS for 2025 was $0.26 ⁷, contrasting with a net loss per common share of $(0.12) ⁸ in 2024. As of December 31, 2025, the company had cash of $202,524 ⁹ and total liabilities of $6,621,660 ¹⁰. The accumulated deficit improved to $20,342,362 ¹¹ in 2025 from $28,469,675 ¹² in 2024.

The company experienced an 82.59% ¹³ increase in revenue, rising by $7,706,357 ¹⁴ from 2024 to 2025, primarily due to increased client spending and an expansion in active clients from 15 ¹⁵ in 2024 to 17 ¹⁶ in 2025. Net income saw an improvement of $11,880,581 ¹⁷. General and administrative expenses decreased by $5,686,683 ¹⁸, or 75.97% ¹⁹, from $7,484,914 ²⁰ in 2024 to $1,798,231 ²¹ in 2025, largely due to lower share-based compensation and reduced financing-related costs. Media traffic expenses increased by $1,349,473 ²², or 24.22% ²³, to $6,920,445 ²⁴ in 2025 from $5,570,972 ²⁵ in 2024, driven by higher revenue-generating activity, but decreased as a percentage of revenue from 59.70% ²⁶ to 40.62% ²⁷. Amortization and depreciation expense was $98,395 ²⁸ in 2025, up from $0 ²⁹ in 2024, attributed to the amortization of original issue discount and deferred financing costs, as well as depreciation on fixed assets.

During the fiscal year ended December 31, 2025, the company completed the initial integration of AI into its platform. It also effected a 1-for-4 reverse stock split on February 4, 2025. The company entered into several promissory note agreements with 1800 Diagonal Lending LLC and Boot Capital LLC, raising approximately $900,000 ³⁰ in aggregate net cash proceeds through the issuance of eight promissory notes with an aggregate principal of $1,078,140 ³¹. Additionally, on December 10, 2025, a convertible promissory note in the principal amount of $110,000 ³² was issued to an individual lender for $100,000 ³³ in funding. The company also appointed Rizvan Jamal and Ali Shadman as independent directors in May and June 2025, respectively, and Imran Firoz as interim Chief Financial Officer on September 22, 2025.

Eva Live Inc. intends to continue innovating in AI and machine learning technology to improve the Eva Platform and augment its features and functionalities. The company views big data as a critical competitive advantage and plans to continue investing resources in growing its data offerings, both from third-party providers and its proprietary data. Future growth is expected to depend on the timely development and successful distribution of its AdTech solutions by signing larger deals in the United States and globally. The company also aims to increase its software development capabilities to create disruptive and next-generation machine learning and artificial intelligence-driven technologies to expand and retain its customer base. Furthermore, Eva Live Inc. plans to improve the share of current clients' advertising budgets and ad spends as more clients allocate a larger percentage of their budgets to programmatic channels, and to grow its customer base through accretive acquisitions, opportunistic investments, and beneficial partnerships.

The company budgets at least $500,000 ³⁴ for sales and marketing campaigns in the next twelve months. Management believes that cash on hand may not be sufficient to meet working capital and corporate development needs for twelve months following December 31, 2025, and anticipates raising additional capital through private equity or public markets to accomplish its growth plan over twelve to twenty-four months.

Regarding its operational outlook, the company's operating expenses declined as a percentage of revenue in 2025, reflecting improved operating leverage. Media traffic expenses, while increasing in absolute terms, decreased as a percentage of revenue, indicating improved gross margin performance. The company will begin recognizing stock-based compensation expense for the CEO's 20,000,000 ³⁵ stock options in fiscal 2026 upon initial vesting, with 20% ³⁶ of the options (4,000,000 shares) vesting on January 1, 2026.

In terms of capital allocation, the company raised approximately $900,000 ³⁷ in aggregate net cash proceeds from debt financing activities during the fiscal year ended December 31, 2025, through the issuance of eight promissory notes. Subsequent to December 31, 2025, on February 23, 2026, the company entered into a Securities Purchase Agreement for a secured convertible note with Streeterville Capital, LLC, with an original principal amount of $7,560,000 ³⁸, receiving gross proceeds of $6,970,000 ³⁹ on February 26, 2026. This note bears interest at 8% ⁴⁰ per annum and matures twenty-four months after closing. The investor also has the right to purchase up to $4,320,000.00 ⁴¹ in additional notes over twenty-four months. The company also became obligated to issue 250,000 ⁴² shares of Common Stock to Maxim Group LLC upon its Nasdaq listing, valued at $1,905,000 ⁴³ based on a closing price of $7.62 ⁴⁴ per share on the listing date.

The company explicitly flagged several structural headwinds and execution risks. Its financial health is highly dependent on a limited number of customers, with the top three customers representing over 61.05% ⁴⁵ of revenue for the fiscal year ending December 31, 2025. Any significant reduction in spending or cessation of business by these customers could materially impact revenue and financial health. The company also faces intense competition in a fragmented industry from well-established and smaller public and private companies, which may reduce prices and create competitive disadvantages in obtaining resources. The capital intensity of developing and maintaining competitive AI capabilities is substantial, and larger competitors with greater financial resources are better positioned to make these investments. The integration of AI also introduces new governance and brand safety risks, with over 70% ⁴⁶ of marketers encountering AI-related incidents in 2025, yet fewer than 35% ⁴⁷ planning to increase investment in AI governance.

The company faces several material risks, including a substantial dependence on a limited number of customers, with the top three customers accounting for over 61.05% ⁴⁸ of revenue for the fiscal year ended December 31, 2025, and 82% ⁴⁹ of receivables as of December 31, 2025, making it vulnerable to significant revenue fluctuations, pricing pressures, and payment risks if these customers reduce spending or cease business. There is substantial doubt about the company's ability to continue as a "going concern" due to an accumulated deficit of $20,342,362 ⁵⁰ as of December 31, 2025, and the need for additional financing, which may not be available on acceptable terms. The digital marketing industry is highly competitive and fragmented, with dominant DSP platforms like Google's Display & Video 360, Amazon DSP, and The Trade Desk collectively controlling approximately 86% ⁵¹ of the market share, posing significant competitive challenges for smaller providers. The capital intensity of developing and maintaining AI capabilities, coupled with the emergence of AI-native competitors, further exacerbates competitive pressures. Regulatory scrutiny, such as the DOJ antitrust case against Google, could reshape the industry, but also presents uncertainties. Operational risks include the potential for increased volatility of revenues and earnings due to a limited number of products and services, challenges in managing growth, and the risk of undetected errors or bugs in its software solutions. The company also has no patents or trademarks on its proprietary technology, and its intellectual property protection relies on confidentiality agreements, which may not be sufficient.

Management's message to shareholders emphasizes the company's vision to build a leading digital media platform that delivers measurable business outcomes through its AI-based Eva Platform. They highlight the platform's ability to optimize advertising campaigns, leverage "big data," and create conversion mapping tables to increase conversion rates. The company's strategic priorities for the period ahead include continuing to innovate in AI and machine learning technology to enhance the Eva Platform's features, investing resources in growing its data offerings, and ramping up paid customers through digital and traditional marketing strategies. Management also aims to enhance and promote its core proprietary Eva Platform and Eva XML Platform, increase software development capabilities for disruptive AI-driven technologies, improve the share of current clients' advertising budgets, and grow the customer base through accretive acquisitions, opportunistic investments, and beneficial partnerships. The company explicitly states its budget of at least $500,000 ⁵² for sales and marketing campaigns in the next twelve months and acknowledges the need for additional capital through funding from existing or new investors, further cost reductions, and strategic adjustments to improve operational cash flow.