WILMINGTON, Del., May 16, 2025 (GLOBE NEWSWIRE) -- Onfolio Holdings Inc. (NASDAQ: ONFO, ONFOW) (OTC: ONFOP) ("Onfolio" or the "Company"), a company that primarily acquires and manages a portfolio of digital marketing and online education businesses, announces financial results for the first quarter ended March 31st 2025.
Financial Highlights
-- First quarter revenue increased 77% to $2.81M vs. $1.58M in the prior
year period and increased 12.8% from $2.49M in Q4 of 2024
-- First quarter gross profit increased 70% to $1.7M vs. $1M in the prior
year period and increased 28% from $1.32M in Q4 of 2024
-- First quarter total operating expenses increased 71% to $2.49M vs. $1.45M
in the prior year period and increased 23% from $2.01M in Q4 of 2024
-- First quarter net loss increased 72% to $0.80M vs. $0.47M in the prior
year period and vs. a $0.14M gain in Q4 of 2024
-- Cash at 3/31/25 was $0.67M vs. $0.48M at 12/31/24
"We substantially increased our revenue and gross profit during the first quarter of 2025. Our cash used in operations decreased to $0.14M, reflecting improvements in both operational discipline and revenue contribution," said Onfolio Holdings CEO Dominic Wells.
"While our net loss increased from $0.47M in Q1 2024, to $0.80M in Q1 2025, $0.27M of this was stock-based-compensation, most of which was a one-time expense, as well as $0.17M in higher amortization expense compared to the prior year. Taking these non-cash increases into account, our net loss improved year-on-year. During the first quarter of 2025, we continued our effort to improve operations within our portfolio companies, which has resulted in reduced cost, better efficiency, a renewed focus on organic growth and the development of new services.
"During the first quarter of 2025, we also raised non-dilutive capital through the sale of our Series A Preferred Shares, which have consistently paid a 12% annual dividend for over four years. The additional capital was primarily used to strengthen our balance sheet and prepare for our next acquisition.
"We remain highly focused on continued organic growth within our core digital marketing and online education business units and are pursuing strategic acquisitions to strengthen those businesses.
"If we continue to execute well on our organic and strategic growth initiatives, we could achieve profitability during the second half of 2025," concluded Dominic 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. 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 and 10Q; 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
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Onfolio Holdings, Inc.
Consolidated Balance Sheets
March 31 December 31
2025 2024
----------- -----------
Assets
-----------------------------------
Current Assets:
Cash $ 666,115 $ 476,874
Accounts receivable, net 688,763 755,804
Inventory 47,027 65,876
Prepaids and other current assets 200,763 138,007
----------- -----------
Total Current Assets 1,602,668 1,436,561
Intangible assets 3,022,099 3,323,211
Goodwill 4,203,145 4,210,557
Fixed Assets 4,707 5,135
Due from related party 128,385 126,530
Investment in unconsolidated joint
ventures, cost method 213,007 213,007
Investment in unconsolidated joint
ventures, equity method 269,140 268,231
Other assets 3,495 9,465
----------- -----------
Total Assets $ 9,446,646 $ 9,592,697
=========== ===========
Liabilities and Stockholders Equity
-----------------------------------
Current Liabilities:
Accounts payable and other current
liabilities $ 1,018,752 $ 969,068
Dividends payable 105,468 100,797
Notes payable, current 526,010 702,634
Notes Payable - Related Party,
current - 400,000
Contingent consideration 308,943 981,591
Deferred revenue 654,971 589,913
----------- -----------
Total Current Liabilities 2,614,144 3,744,003
Notes payable 790,000 450,000
Notes payable - related parties 1,049,000 1,049,000
Due to joint ventures - long term - -
----------- -----------
Total Liabilities 4,453,144 5,243,003
----------- -----------
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,
165,260 and 134,460 issued and
outstanding at March 31, 2025 and
December 31, 2024 165 134
Common stock, $0.001 par value,
50,000,000 shares authorized,
5,127,395 issued and outstanding at
March 31, 2025 December 31, 2024 5,128 5,128
Additional paid-in capital 23,459,650 22,316,751
Accumulated other comprehensive
income 97,152 68,105
Accumulated deficit (19,976,595) (19,078,287)
----------- -----------
Total Onfolio Inc. stockholders
equity 3,585,500 3,311,831
Non-Controlling Interests 1,408,002 1,037,863
----------- -----------
Total Stockholders' Equity 4,993,502 4,349,694
----------- -----------
Total Liabilities and Stockholders'
Equity $ 9,446,646 $ 9,592,697
=========== ===========
The accompanying notes are an integral part of these
consolidated financial statements
Onfolio Holdings, Inc.
Consolidated Statements of Operations
For the Three Months Ended March 31,
2025 2024
----------------------- ---------------------
Revenue, services $ 1,796,595 $ 723,551
Revenue, product sales 1,015,348 863,351
--------------- --------------
Total Revenue 2,811,943 1,586,902
Cost of revenue, services 1,016,860 366,706
Cost of revenue, product
sales 87,963 215,860
--------------- --------------
Total cost of revenue 1,104,823 582,566
Gross profit 1,707,120 1,004,336
--------------- --------------
Operating expenses
Selling, general and
administrative 2,221,346 1,185,184
Professional fees 237,905 180,190
Acquisition costs 33,410 94,341
Impairment of goodwill
and intangible assets - -
--------------- --------------
Total operating expenses 2,492,661 1,459,715
--------------- --------------
Loss from operations (785,541) (455,379)
--------------- --------------
Other income (expense)
Equity method income
(loss) 909 (5,154)
Dividend income 2,250 -
Interest income (expense),
net (100,720) (17,720)
Other income 4,983 427
Gain on change in fair
value of contingent
consideration 54,173 -
Impairment of investments - -
Gain on sale of business - -
--------------- --------------
Total other income (38,405) (22,447)
--------------- --------------
Loss before income taxes (823,946) (477,826)
Income tax (provision)
benefit 17,518 -
Net loss (806,428) (477,826)
Net loss attributable to
noncontrolling interest 12,041 664
--------------- --------------
Net loss attributable to
Onfolio Holdings Inc. (794,387) (477,162)
Preferred Dividends (103,921) (81,645)
--------------- --------------
Net loss to common
shareholders $ (898,308) $ (558,807)
=============== ==============
Net loss per common
shareholder
Basic and diluted $ (0.18) $ (0.11)
=============== ==============
Weighted average shares
outstanding
Basic and diluted 5,127,395 5,107,395
=============== ==============
The accompanying notes are an integral part of these
consolidated financial statements
Onfolio Holdings, Inc.
Consolidated Statements of Stockholders' Equity
For the Three Months Ended March 31, 2025 and 2024
Preferred Stock, Common Stock, Accumulated
$0.001 Par value $0.001 Par Value Additional Accumulated Other Non Stockholders'
------------------ -----------------
Paid-In Comprehensive Controlling
Shares Amount Shares Amount Capital Deficit Income Interest Equity
-------- -------- --------- ------ ----------- ------------- --------------- ----------- -----------------
Balance, December
31, 2024 134,460 $ 134 5,127,395 $5,128 $22,316,751 $(19,078,287) $ 68,105 $1,037,863 $ 4,349,694
- - - - - -
Sale of preferred
stock for cash 28,000 28 - - 699,972 - - - 700,000
Preferred stock
and common stock
options issued
for payment of
contingent
consideration 2,800 3 - - 169,997 - - - 170,000
Stock-based
compensation - - - - 272,930 - - - 272,930
Payment of note
payble by NCI 400,000 400,000
Preferred
dividends - - - - - (103,921) - - (103,921)
Foreign currency
translation - - - - - - 29,047 - 29,047
Distribution to
non-controlling
interest (17,820) (17,820)
Net loss - - - - - (794,387) - (12,041) (806,428)
------- ---- --------- ----- ---------- ----------- --- --------- --------- ----------
Balance, March 31,
2025 165,260 165 5,127,395 5,128 23,459,650 (19,976,595) 97,152 1,408,002 4,993,502
Balance, December
31, 2023 92,260 93 5,107,395 5,108 21,107,311 (16,957,854) 182,465 - 4,337,123
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
Preferred
dividends - - - - - (81,645) - - (81,645)
Foreign currency
translation - - - - - - (39,134) (39,134)
Distribution to
non-controlling
interest - - - - - - - - -
Net loss - - - - - (477,826) - (664) (478,490)
------- ---- --------- ----- ---------- ----------- --- --------- --------- ----------
Balance, March 31,
2024 109,660 $ 110 5,107,395 $5,108 $21,620,181 $(17,517,325) $ 143,331 $ 125,336 $ 4,376,741
======= ==== ========= ===== ========== =========== === ========= ========= ==========
The accompanying notes are an integral part of these
consolidated financial statements
Onfolio Holdings, Inc.
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2025 and 2024
2025 2024
Cash Flows from Operating Activities
Net loss $(806,428) $(477,826)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Stock-based compensation expense 272,930 17,887
Equity method loss (income) (909) 5,154
Dividends received from equity method
investment - -
Amortization of intangible assets 301,112 125,219
Depreciation expense 428
Impairment of intangible assets - -
Change in FV of contingent consideration (54,173) -
Net change in:
Accounts receivable 67,041 (33,681)
Inventory 18,849 117
Prepaids and other current assets (56,786) (81,328)
Accounts payable and other current
liabilities 49,684 (33,390)
Due to joint ventures (1,855) 3,557
Deferred revenue 65,058 34,284
Due to related parties - 9,000
Net cash used in operating activities (145,049) (431,007)
-------- --------
Cash Flows from Investing Activities
Cash paid to acquire businesses - (240,000)
Investments in unconsolidated entities - (10,000)
Investment in cryptocurrency - -
-------- --------
Net cash used in investing activities - (250,000)
-------- --------
Cash Flows from Financing Activities
Proceeds from sale of Series A preferred
stock 700,000 10,000
Proceeds from exercise of stock options - -
Payments of preferred dividends (99,250) (70,122)
Distributions to non-controlling interest
holders (17,820) -
Proceeds from notes payable - 350,000
Payments on note payables (176,624) (25,743)
Payments on acquisition note payables - -
Proceeds from notes payable - related
parties - -
Payments on note payables - related
parties - -
Payments on contingent consideration (108,475) -
Net cash provided by financing
activities 297,831 264,135
-------- --------
Effect of foreign currency translation 36,459 (35,612)
-------- --------
Net Change in Cash 189,241 (452,484)
Cash, Beginning of Period 476,874 982,261
-------- --------
Cash, End of Period 666,115 $ 529,777
======== ========
Cash Paid For:
Income Taxes $ - $ -
======== ========
Interest $ 100,720 $ 18,360
======== ========
Non-cash transactions:
Preferred dividends accrued $ 103,921 $ 81,645
======== ========
Notes payable issued for asset
acquisitions $ - $ 440,000
======== ========
Preferred stock issued for acquisitions $ - $ 425,000
======== ========
Settlement of contingent consideration $ 510,000 $ -
======== ========
Non-controlling interest issued for
settlement of note payable $ 400,000 $ -
======== ========
The accompanying notes are an integral part of these
consolidated financial statements
(END) Dow Jones Newswires
May 16, 2025 09:00 ET (13:00 GMT)
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