Critical Financial Indicators
Q1 Net Loss
Cash Position
Total Liabilities
Net Assets
Monthly Burn Rate
Cash Runway
OpEx Q1 Total
Executive Summary
Alvio Labs delivered a challenging Q1 2026 performance with a net loss of €4,226.52, representing an improvement from the prior year period's €10,966.85 loss. However, this masks significant structural concerns: the company's cash position has declined 78% from €532.14 to just €116.00 over 12 months, while liabilities have increased 141% to €36,056—primarily driven by director loans now totaling €36,247.62.
The business is technically insolvent with negative net assets of €35,940. The 41% rise in liabilities reflects director loans funding operations—not third-party debt—reducing repayment pressure but indicating the business is not yet self-sustaining. The 149% deterioration in retained earnings suggests cumulative losses are accelerating the equity deficit.
Immediate action required: At current burn rate of €398/month, the €116 cash balance represents less than 3 days of runway. Capital injection or revenue generation is critical before month-end.
Critical Observation
The company has entered a cash flow crisis. Despite reducing net losses by 61% QoQ, the cash burn from prior periods has depleted reserves below critical levels. The reliance on director loans (€36,247) now exceeds the entire liability base from March 2025 (€14,949)—indicating the founder is personally guaranteeing operations. Watch for dilution events or equity raises in Q2.
Cash Position YoY (€)
Cash decreased €416.14 (-78%) from prior year. Monthly burn: €398
Net Assets Position (€)
Net assets worsened -149%. Now at €35,940 deficit
Year-over-Year Comparison (Key Metrics)
| Metric | Mar 2025 | Mar 2026 | Change | Trend |
|---|---|---|---|---|
| Total Assets | €532.14 | €116.00 | -€416.14 | CRITICAL |
| Cash (Bank) | €532.14 | €116.00 | -78.2% | CRITICAL |
| Total Liabilities | €14,948.99 | €36,056.06 | +141.1% | WATCH |
| Director Loans (Combined) | €14,543.09 | €36,247.62 | +149.2% | WATCH |
| Net Assets | -€14,416.85 | -€35,940.06 | -149.3% | CRITICAL |
| Retained Earnings | -€3,450.00 | -€31,713.54 | -819.2% | CRITICAL |
P&L Structure (€)
Gross Loss
-€3,032.07
Net Loss
-€4,226.52
Operating Expense Breakdown
Top expense: Consulting & Accounting €613.00 (51.3%)
Full Profit & Loss Statement — Q1 2026
| Line Item | Amount (€) | % of OpEx | Category |
|---|---|---|---|
| Cost of Goods Sold | €3,032.07 | — | DIRECT |
| Gross Profit | -€3,032.07 | — | — |
| Operating Expenses | €1,194.45 | 100.0% | OVERHEAD |
| Consulting & Accounting | €613.00 | 51.3% | — |
| Office : Software Expenses | €271.65 | 22.8% | — |
| Research & Development | €191.98 | 16.1% | — |
| Subscriptions | €42.36 | 3.5% | — |
| Office Expenses | €53.47 | 4.5% | — |
| Travel - National | €20.00 | 1.7% | — |
| Bank Fees | €1.99 | 0.2% | — |
| NET PROFIT | -€4,226.52 | — | LOSS |
Analyst Note — Operating Leverage
Operating expenses of €1,194 represent a lean cost structure for an R&D-focused company. The 51% allocation to consulting/accounting suggests external professional services dependency— a common pattern in early-stage companies without in-house finance. Opportunity: Reducing consulting hours or bringing basic bookkeeping in-house could cut €200-300/month from burn rate, extending runway by 50%.
Balance Sheet Composition
Balance Sheet Detail — As at 31 March 2026
| Item | Mar 2026 (€) | Mar 2025 (€) | Change (€) |
|---|---|---|---|
| ASSETS | |||
| Revolut EUR Main | €116.00 | €532.14 | -€416.14 |
| Total Assets | €116.00 | €532.14 | -€416.14 |
| LIABILITIES | |||
| Accounts Payable | €0.00 | €405.90 | -€405.90 |
| Director's Current Account | €23,697.62 | €13,993.09 | +€9,704.53 |
| Director's Loan Account | €12,550.00 | €550.00 | +€12,000.00 |
| Sales Tax | -€191.56 | €0.00 | -€191.56 |
| Total Liabilities | €36,056.06 | €14,948.99 | +€21,107.07 |
| EQUITY | |||
| Current Year Earnings | -€4,226.52 | -€10,966.85 | +€6,740.33 |
| Retained Earnings | -€31,713.54 | -€3,450.00 | -€28,263.54 |
Solvency Analysis
The balance sheet shows negative equity of €35,940, technically constituting balance sheet insolvency. However, the liability structure is 100% related-party (director loans) rather than external debt. This converts a potential legal insolvency into a shareholder funding decision. The €12,000 increase in the formal "loan account" vs €9,705 in the "current account" suggests recent formalization of funding terms.
Liability Composition — Director Funding
YoY Liability Growth (€)
Director Financing Detail — Shubham Jain
€23,697.62
+€9,704.53 since Mar 2025 (+69.4%)
€12,550.00
+€12,000.00 since Mar 2025 (+2,181.8%)
Represents 100.5% of total liabilities
Related-Party Risk Assessment
Critical dependency identified: 100% of operating funding now comes from director loans. The 22x increase in formal loan account vs 1.7x in current account suggests a shift toward documented debt instruments—potentially in preparation for external financing or tax optimization. The business cannot continue operations without continued director support. Recommendation: Formalize loan terms, document interest rates (even if zero), and consider converting current account to equity to clean up balance sheet.
Required Actions — Priority Matrix
Address Cash Runway Crisis
3-day cash runway requires immediate capital injection of minimum €5,000-€10,000 or emergency revenue generation. Without action, operations cease within one week.
Timeline: Immediate | Owner: Director
Formalize Director Loan Terms
Document €36,247 in director loans with formal agreements, interest rates (market or zero), and repayment schedules. Required for audit compliance and external financing.
Timeline: 14 days | Owner: Director + Accountant
Reduce Consulting Costs
€613/month in consulting (51% of OpEx) is unsustainable. Negotiate fixed-scope engagements or transition select functions (bookkeeping, basic compliance) in-house.
Timeline: 30 days | Owner: Director
Develop Revenue Model
Current P&L shows COGS without corresponding revenue—indicating product development/inventory build. Define path to first revenue and unit economics.
Timeline: 60 days | Owner: Director + Advisors
Risk Register — Q1 2026
| Risk | Impact | Severity | Mitigation |
|---|---|---|---|
| Cash Exhaustion | Operations cease | CRITICAL | Emergency director funding |
| Solvency Concern | Legal/trading restrictions | HIGH | Director loan conversion to equity |
| Related-Party Dependency | Single point of failure | MEDIUM | Diversify funding, external raise |
| No Revenue Generation | Continued cash burn | MEDIUM | Accelerate GTM, early customer pilots |
Scenario Analysis — 90-Day Outlook
Scenario A: No Action
Day 3
Cash depletion, operations suspended
Scenario B: €5K Injection
Month 2.5
Extended runway, time for revenue action
Scenario C: €15K + Revenue
Sustainable
6+ months runway to reach profitability