Onfolio Holdings Inc. Announces First Quarter 2024 Financial Results and Provides Corporate Update


WILMINGTON, Del., May 21, 2024 (GLOBE NEWSWIRE) -- Onfolio Holdings Inc. (NASDAQ: ONFO, ONFOW) ("Onfolio" or the "Company"), a holding company that acquires and manages a diversified portfolio of online businesses across a broad range of verticals, announces financial results for the first quarter ended March 31st 2024.

Financial Highlights

  • First quarter revenue grew 17% to $1.59M vs. $1.35M in the prior year period and vs. $1.27M in 4Q23
  • First quarter gross profit grew 35% to $1.00M vs. $0.74M in the prior year period and vs. $0.84M in 4Q23
  • First quarter total operating expenses decreased 23% to $1.61M vs. $2.09M in the prior year period and vs. $1.67M in 4Q23
  • First quarter net loss decreased 51% to $0.63M vs. $1.28M in the prior year period and vs. $0.9M in 4Q23
  • Cash at 3/31/24 was $0.53M vs. $0.98M at 12/31/23

“The first quarter of 2024 saw our revenue improve, gross margins improve, and net loss decrease significantly. Our cash used in operations for the quarter was $431,007, the lowest use of cash for operating activities since our IPO, compared to cash used in operations of $1,021,969 during the three months ended March 31, 2023,” commented Onfolio Holdings CEO Dominic Wells.

“The year-on-year improvements are most noticeable in the net loss, which roughly halved in 2024 vs 2023 from $1,284,075 during the three months ended March 31, 2023 decreasing to a net loss of $630,497 for the three months ended March 31, 2024. This was also a quarter-on-quarter improvement down from $833,462 in the three months ended December 31, 2023.

“Based upon our historical financial statements, the first quarter is often the weakest performing quarter of the year, so we are eager to see the results for the remainder of the year.

“A significant factor in our improvement is the decrease in costs that we implemented, which we have been discussing for several quarters. Additionally, the acquisition of RevenueZen in January 2024 has been a valuable addition to our portfolio. From both qualitative and quantitative perspectives, it has shown promising results.

“These operational improvements are significant and facilitate our path to overall profitability. As we pursue additional cash flowing acquisitions, our enhanced operational efficiency will continue to contribute positively while maintaining our focus on accretive acquisitions.

Path To Profitability

“In the earnings release for our 10-K, dated April 2. 2024, we discussed launching a private raise for “Onfolio Agency SPV” – a joint venture with retail investors that would essentially allow ONFO to acquire companies without putting any cash into the deals ourselves.

“We have negotiated several acquisitions which we hope to close in the coming weeks where Onfolio will acquire 60-90% of various profitable marketing companies, while using outside investor capital to fund the cash component of the acquisitions. If we close on these acquisitions as anticipated, we expect to add additional profits to our bottom line and bridge the gap to profitability in the near term.

“Based on the deals currently in our pipeline, we believe that if Onfolio Agency SPV raises approximately $1M to $1.5M and we close on these acquisitions, then Onfolio Holdings could reach profitability in the near term. To date, Onfolio Agency SPV has raised approximately $1M.

“This gives us optimism that we can become profitable within the coming months, as acquisitions start to complete,” concluded Wells.

About Onfolio Holdings

Onfolio Holdings acquires controlling interests in and actively manage small online businesses that we believe (i) operate in sectors with long-term growth opportunities, (ii) have positive and stable cash flows, (iii) face minimal threats of technological or competitive obsolescence and (iv) can be managed by our existing team or have strong management teams largely in place. Through the acquisition and growth of a diversified group of online businesses with these characteristics, we believe we offer investors in our shares an opportunity to diversify their own portfolio risk. Our company excels at finding acquisition opportunities where the seller has not fully optimized their business, and our experience and skillset allows us to add increased value to these existing businesses. Visit www.onfolio.com for more information.

Forward-Looking Statements

The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may" "will," "should," "plans," "explores," "expects," "anticipates," "continues," "estimates," "projects," "intends," and similar expressions. Examples of forward-looking statements include, among others, statements we make regarding expected operating results, such as revenue growth and earnings, and strategy for growth and financial results.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, those events and factors described by us in Item 1A "Risk Factors" in our most recent Form 10-K; other risks to which our company is subject; other factors beyond the company's control. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

For investor inquiries:
investors@onfolio.com

 

Onfolio Holdings, Inc.
Consolidated Balance Sheets
 
 March 31 December 31
  2024   2023 
Assets(Unaudited)  
    
Current Assets:   
Cash and cash equivalents$529,777  $982,261 
Accounts receivable, net 123,751   90,070 
Inventory 92,520   92,637 
Prepaids and other current assets 192,425   111,097 
Total Current Assets 938,473   1,276,065 
    
Intangible assets, net 4,060,049   3,110,204 
Goodwill 3,095,937   1,167,194 
Due from related party 147,414   150,971 
Investment in unconsolidated entities, cost method 164,007   154,007 
Investment in unconsolidated joint ventures, equity method 267,888   273,042 
    
Total Assets$8,673,768  $6,131,483 
    
Liabilities and Stockholder’s Equity   
    
Current Liabilities:   
Accounts payable and other current liabilities$460,426  $493,816 
Dividends payable 79,534   68,011 
Notes payable 791,580   17,323 
Contingent consideration 1,929,000   60,000 
Deferred revenue 184,249   149,965 
Total Current Liabilities 2,753,789   789,115 
    
Notes Payable 690,000   - 
Total Liabilities 3,443,789   789,115 
    
Commitments and Contingencies   
    
Stockholders' Equity:   
Preferred stock, $0.001 per value, 5,000,000 shares authorized   
Series A Preferred stock, $0.001 par value, 1,000,000 shares authorized, 109,260 and 92,260 issued and outstanding at March 31, 2024 and December 31, 2023, respectively; 110   93 
Common stock, $0.001 par value, 50,000,000 shares authorized, 5,107,395 issued and outstanding at March 31, 2024 and December 31, 2023 5,108   5,108 
Additional paid-in capital 21,620,181   21,107,311 
Accumulated other comprehensive income 143,331   182,465 
Accumulated deficit (16,664,087)  (15,952,609)
Total Onfolio Inc. stockholders’ equity 5,104,643   5,342,368 
Non-controlling interest 125,336   - 
Total Stockholders' Equity 5,229,979   5,342,368 
    
Total Liabilities and Stockholders' Equity$8,673,768  $6,131,483 
    
The accompanying notes are an integral part of these unaudited consolidated financial statements


Onfolio Holdings, Inc.
Consolidated Statements of Operations
(Unaudited)
     
  For the Three Months Ended March 31,
  2024 2023
     
Revenue, services $723,551  $392,401 
Revenue, product sales  863,351   959,333 
Total Revenue  1,586,902   1,351,734 
         
Cost of revenue, services  366,706   273,313 
Cost of revenue, product sales  215,860   335,208 
Total cost of revenue  582,566   608,521 
         
Gross profit  1,004,336   743,213 
         
Operating expenses        
Selling, general and administrative  1,337,855   1,696,380 
Professional fees  180,190   247,385 
Acquisition costs  94,341   150,614 
Total operating expenses  1,612,386   2,094,379 
         
Loss from operations  (608,050)  (1,351,166)
         
Other income (expense)        
Equity method income (loss)  (5,154)  6,888 
Dividend income  -   1,269 
Interest income (expense), net  (17,720)  56,132 
Other income  427   2,802 
Total other income  (22,447)  67,091 
         
Loss before income taxes  (630,497)  (1,284,075)
         
Income tax (provision) benefit  -   - 
         
Net loss  (630,497)  (1,284,075)
Net loss attributable to noncontrolling interest  664   - 
Net loss attributable to Onfolio Holdings Inc.  (629,833)  (1,284,075)
         
Preferred Dividends  (81,645)  (51,025)
Net loss to common shareholders  (711,478)  (1,335,100)
         
         
Foreign currency translation loss  (39,134)  (7,481)
Total comprehensive loss $(750,612) $(1,342,581)
         
Net loss per common shareholder        
Basic and diluted $(0.14) $(0.26)
         
Weighted average shares outstanding        
Basic and diluted  5,107,395   5,110,196 
         
The accompanying notes are an integral part of these unaudited consolidated financial statements    


  
Consolidated Statements of Stockholders' Equity 
For the Three Months Ended March 31, 2024 and 2023 
(Unaudited) 
  
                   
 Preferred Stock, $0.001 Par value Common Stock, $0.001 Par Value Additional Accumulated Accumulated Other Non Stockholders' 
 Shares Amount Shares Amount Paid-In Capital Deficit Comprehensive Income Controlling Interest Equity 
                   
Balance, December 31, 202392,260 $93 5,107,395 $5,108 $21,107,311 $(15,952,609) $182,465  $-  $5,342,368  
                   
     -  -    -   -   -   -  
Acquisition of Business17,000  17 -  -  484,983  -   -   126,000   611,000  
Sale of preferred stock for cash400  - -  -  10,000  -   -   -   10,000  
Stock-based compensation-  - -  -  17,887  -   -   -   17,887  
Warrants issued for acquisition-  - -  -    -   -   -   -  
Preferred dividends-  - -  -  -  (81,645)  -   -   (81,645) 
Foreign currency translation-  - -  -  -  -   (39,134)  -   (39,134) 
Net loss-  - -  -  -  (629,833)  -   (664)  (630,497) 
                   
Balance, March 31, 2024109,660 $110 5,107,395 $5,108 $21,620,181 $(16,664,087) $143,331  $125,336  $5,229,979  
                   
Balance, December 31, 202269,660  70 5,107,395  5,108  19,950,776  (7,580,490)  96,971   96,971   12,472,435  
Stock-based compensation-  - -  -  233,355  -   -   -   233,355  
Preferred dividends-  - -  -  -  (51,025)  -   -   (51,025) 
Foreign currency translation-  - -  -  -  -   (7,481)  -   (7,481) 
Net loss-  - -  -  -  (1,284,075)  -   -   (1,284,075) 
                   
Balance, March 31, 202369,660 $70 5,107,395 $5,108 $20,184,131 $(8,915,590) $89,490  $96,971  $11,363,209  
                   
                   
The accompanying notes are an integral part of these unaudited consolidated financial statements 
                   

 

Onfolio Holdings, Inc.
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2024 and 2023
(Unaudited)
    
  2024   2023 
Cash Flows from Operating Activities   
Net loss$(630,497) $(1,284,075)
Adjustments to reconcile net loss to net cash provided by operating activities:   
Stock-based compensation expense 17,887   233,355 
Equity method income (loss) 5,154   (6,888)
Dividends received from equity method investment -   8,377 
Amortization of intangible assets 277,890   170,996 
Net change in:   
Accounts receivable (33,681)  22,636 
Inventory 117   14,828 
Prepaids and other current assets (81,328)  (29,275)
Accounts payable and other current liabilities (33,390)  (207,776)
Due to joint ventures 3,557   (16,134)
Deferred revenue 34,284   71,987 
Due to related parties 9,000   - 
    
Net cash used in operating activities (431,007)  (1,021,969)
    
Cash Flows from Investing Activities   
Cash paid to acquire business (240,000)  (850,000)
Investment in unconsolidated entities (10,000)  - 
Net cash used in investing activities (250,000)  (850,000)
    
Cash Flows from Financing Activities   
Proceeds from sale of Series A preferred stock 10,000   - 
Payments of preferred dividends (70,122)  (74,994)
Proceeds from notes payable 350,000   (40,000)
Payments on note payables (25,743)  (20,332)
    
Net cash provided by financing activities 264,135   (135,326)
    
Effect of foreign currency translation (35,612)  (30,305)
    
Net Change in Cash (452,484)  (2,037,600)
Cash, Beginning of Period 982,261   6,701,122 
    
Cash, End of Period$529,777  $4,663,522 
    
Cash Paid For:   
Income Taxes$-  $- 
Interest$18,360  $18,836 
    
Supplemental Non-cash Disclosures   
Promissory note issued for acquisition$440,000  $- 
Preferred stock issued for acquisition$425,000  $- 
 
The accompanying notes are an integral part of these consolidated financial statements


 



Mot-clé