Q1 2026 Management Report

Alvio Labs — January 1 to March 31, 2026

Generated: March 17, 2026

Net Profit (Q1)

-€4,226.52

Loss recorded

Cash Balance

€116.00

-78.2% vs prior year

Monthly Burn Rate

€398

Based on Q1 OpEx

Cash Runway

< 1 Week

Critical

Executive Summary

Alvio Labs recorded a net loss of €4,226.52 for the first quarter of 2026. The primary driver of this loss was €3,032.07 in Cost of Goods Sold, which exceeded any recorded revenue for the period. Operating expenses totaled €1,194.45, representing a monthly burn rate of approximately €398. No sales income was recorded during Q1.

The company's cash position has deteriorated significantly year-over-year, declining from €532.14 to €116.00 (a 78.2% decrease). This decline is accompanied by a substantial increase in liabilities, which have grown from €14,949 to €36,056. The primary liability growth stems from director funding: Director's Current Account increased to €23,698 and Director's Loan Account to €12,550, suggesting reliance on director capital to fund ongoing operations.

At current burn rates, the remaining cash balance represents less than one week of operating runway. The business is not currently self-sustaining and requires either immediate revenue generation or additional capital injection. Net Assets stand at -€35,940, indicating the company is technically insolvent without continued director support.

Critical Alert

Cash reserves critically low. Immediate action required to secure funding or generate revenue.

Outstanding Receivables

€0.00

No outstanding customer invoices

Outstanding Payables

€0.00

All bills current

Profit & Loss Summary

Q1 2026
Revenue
Cost of Goods Sold (€3,032.07)
Gross Profit (€3,032.07)
Operating Expenses (€1,194.45)
— Consulting & Accounting €613.00
— Office: Software €271.65
— Research & Development €191.98
— Office Expenses €53.47
— Subscriptions €42.36
— Travel €20.00
— Bank Fees €1.99
Net Profit (€4,226.52)

Analyst Note

The consulting & accounting expense (€613) represents 51% of operating costs. With zero revenue recorded, this cost structure is unsustainable at current cash levels. Consider deferring non-essential professional fees or negotiating payment terms.

Operating Expense Breakdown

Largest Expense

Consulting & Accounting

€613.00

51.3% of OpEx

Total Monthly Avg

Operating Expenses

€398

per month

Balance Sheet Comparison

As of March 31, 2026 vs March 31, 2025

Total Assets

€116.00

↓ 78.2%

vs €532.14 in Q1 2025

Total Liabilities

€36,056

↑ 141%

vs €14,949 in Q1 2025

Net Assets

-€35,940

↑ 149%

vs -€14,417 in Q1 2025

Balance Sheet Analysis

Net Assets have deteriorated from -€14,417 to -€35,940, a 149% increase in deficit. The liability growth is primarily funded by director loans (€36,247 combined), indicating the business is dependent on director capital to continue operations. Current ratio is effectively zero given minimal cash reserves.

Receivables & Payables

As of March 31, 2026

Accounts Receivable

Money owed to you

€0.00

All invoices paid

Status

No outstanding customer invoices

Accounts Payable

Money you owe

€0.00

Below prior year (€405.90)

Status

All supplier bills paid

Required Actions

URGENT

Secure immediate funding or generate revenue

Current cash (€116) supports <1 week at current burn rate of €398/mo. Consider director loan increase, equity raise, or revenue-generating activities before end of March.

ACTION

Review professional service costs

Consulting & accounting (€613, 51% of OpEx) is significant given no revenue. Evaluate necessity of these services or negotiate deferred payment terms until cash position improves.

ACTION

Address negative equity position

Net assets of -€35,940 indicate insolvency. Consider formalizing director loans as equity conversion or additional capital injection to strengthen balance sheet.

MONITOR

Track monthly burn vs revenue

Establish weekly cash reporting. Target: reduce monthly burn to <€200 or generate revenue to cover expenses by Q2 end.

Report generated from Xero data on March 17, 2026

Alvio Labs | Confidential Management Report

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