ONFOW Onfolio Holdings Inc

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, 2023	92,260		$	93		5,107,395		$	5,108		$	21,107,311		$	(15,952,609	)		$	182,465			$	-			$	5,342,368
						-			-						-				-				-				-
Acquisition of Business	17,000			17		-			-			484,983			-				-				126,000				611,000
Sale of preferred stock for cash	400			-		-			-			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, 2024	109,660		$	110		5,107,395		$	5,108		$	21,620,181		$	(16,664,087	)		$	143,331			$	125,336			$	5,229,979
Balance, December 31, 2022	69,660			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, 2023	69,660		$	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