Luvu Brands, Inc.

Luvu Brands is a near-cash-out micro-cap with essentially zero cash, a loss year, and high leverage.

Strengths

• Vertically integrated Atlanta manufacturing and modest direct-to-consumer growth (+16%)
• Recognized niche brands (Liberator, Jaxx, Avana)

Risks

• Cash of only $5,000 and ~0-quarter runway (1.4th pct) — acute liquidity distress
• Net loss, negative operating/FCF margins, and high leverage (D/E 80th pct) amid tariff and Chinese price competition

Notable findings

• Net lossNet loss (net margin -1.8%)
• Cash burnNegative free cash flow (-0.5M)
• Customer concentration~25% of revenue from one customer/distributor — Excluding depreciation expense, total operating expenses for the year ended June 30, 2025, were 25% of net sales, or $6,114,497, compared to 24% of net sales, or $5,940,238, for the year ended June 30