CRITICAL: Cash Position Alert
Bank balance of €116.00 provides approximately 3 days of runway at current monthly burn rate of €1,194. Immediate capital injection or revenue generation required.
Net Profit/Loss
Operating Expenses
Cash Position
Net Assets
Executive Summary
Alvio Labs delivered a challenging Q1 2026 with a net loss of €4,227, driven by continued investment in operating infrastructure without offsetting revenue. This follows Q4 2025's temporary profitability (€2,361 net profit), which was entirely attributable to a one-time grant income of €12,929. Excluding non-recurring grants, the underlying operational trend shows consistent cash consumption.
The most critical concern is the cash position of €116, representing less than 3 days of operating runway at the current monthly burn rate of €1,194. This is down from €532 at the end of Q1 2025—a 78% decline in liquid reserves over 12 months. The business is currently operating on director loan funding (€36,240 combined current and loan accounts).
Operating expenses increased 93% YoY (€617 to €1,194), reflecting investments in consulting services, software infrastructure, and R&D. While necessary for growth, these expenditures accelerate the depletion of already-constrained capital. Gross profit margins remain negative due to cost of goods sold recognition.
Quarterly Net Profit Trend
Operating Expense Breakdown
Critical Observations
Cash runway under 1 week
€116 cash / €1,194 monthly burn = 2.9 days. Without immediate action, operations will halt within days.
Director funding dependency
€36,240 owed to directors represents 99.7% of current liabilities. While this reduces third-party pressure, it creates founder repayment obligations and signals pre-revenue status.
YoY loss reduced 61%
Q1 2026 loss (€4,227) vs Q1 2025 (€10,967) shows improved cost control or reduced COGS, partially offsetting the severity of the cash position.
Income Statement Comparison
| Line Item | Q1 2026 | Q4 2025 | Q1 2025 | QoQ Δ | YoY Δ |
|---|---|---|---|---|---|
| Total Revenue | €0 | €12,929 | €0 | -100% | — |
| Less: Cost of Goods Sold | €3,032 | €5,000 | €10,350 | -39% | -71% |
| Gross Profit | €-3,032 | €-5,000 | €-10,350 | +39% | +71% |
| Operating Expenses | €1,194 | €5,569 | €617 | -79% | +93% |
| Net Profit (Loss) | €-4,227 | €2,361 | €-10,967 | -279% | +62% |
Analyst Note: Q4 2025 profitability was entirely due to €12,929 grant income. Excluding this, Q4 would have shown a €10,608 loss—consistent with the current trajectory. The 93% YoY increase in OpEx reflects consulting investments (€613 vs €406), software costs (€272 vs €3), and R&D expenditures (€192 vs €198).
OpEx by Category (Q1 2026)
Key Metrics
Balance Sheet Summary
Assets
Liabilities
Equity Breakdown
Balance Sheet Analysis
The business shows a deeply negative equity position of €35,940, indicating cumulative losses exceed capital contributions. The concentration of liabilities in director accounts (€36,240 of €36,056 total) represents a strategic choice to defer external debt, but creates significant founder liquidity exposure. Asset composition is 100% liquid (cash), providing minimal operational buffer.
Multi-Quarter P&L Trend
Cash Position Trend
Key Ratios
Critical: No liquid assets to cover current liabilities
Negative equity indicates insolvency risk
Required Actions
Secure immediate capital injection
With 3 days of runway, prioritize founder loan draw, investor bridge, or revenue-generating activity within 48 hours.
Accelerate revenue generation
Current OpEx of €1,194/month requires €1,200+ in monthly revenue to achieve cash flow breakeven.
Track weekly cash position
Implement daily cash reporting until runway extends beyond 60 days. Current threshold is inadequate.