WILMINGTON, Del., Aug. 15, 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 second quarter ended June 30, 2024.
Financial Highlights
- Second quarter revenue grew 32% to $1.73M vs. $1.31M in the prior year period and vs. $1.59M in 1Q24
- Second quarter gross profit grew 18% to $0.975M vs. $0.82M in the prior year period and vs. $1M in 1Q24
- Second quarter total operating expenses decreased 18% to $1.73M vs. $2.12M in the prior year period and vs. $1.67M in 1Q24
- Second quarter net loss to common shareholders decreased 36% to $0.86M vs. $1.34M in the prior year period and vs. $0.63M in 1Q24
- Cash at 6/30/24 was $0.31M vs. $0.98M at 12/31/23
"The second quarter of 2024 saw our revenue and gross profit improve again, while we continued to make efforts to further reduce cash burn. Our cash used in operations for the quarter was $332k, the lowest use of cash for operating activities since our IPO, compared to cash used in operations of $534k during the same period in 2023 and $400k in 1Q24," commented Onfolio Holdings CEO Dominic Wells.
"We also closed on one new acquisition in Q2, which was the June acquisition of DDS Rank. This was the first acquisition funded by our SPV, allowing us to acquire a profitable business while only use a minimal amount of our own cash. As the acquisition was made in June, its impact won't show up until Q3.
"We continue to maintain an active acquisition pipeline, which includes some of the businesses we've referenced previously, and we expect our recently adopted SPV model to be able to play a part in any of our future acquisitions"
"As well as our SPV enabling us to bring in new acquisitions, we also made further expense reductions in Q2 which will impact us from Q3 onwards. Our goal continues to be reducing expenses, growing revenue, and closing on new acquisitions. At the same time, we continue to have discussions with lenders about debt financing to increase our cash balance, extend our runway, and reach profitability. We believe the key for us is closing on the right financing at the right time.
"It is also worth noting that our internal modelling indicates that we may be able to reach profitability without further acquisitions, as we continue to make progress with margin improvements," 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 1.A "Risk Factors" in our most recent Form 10-K and Form 10-Q; 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 | |||||||
| (Unaudited) | |||||||
| June 30 | December 31 | ||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Current Assets: | |||||||
| Cash | 310,025 | 982,261 | |||||
| Accounts receivable, net | 264,877 | 90,070 | |||||
| Inventory | 84,586 | 92,637 | |||||
| Prepaids and other current assets | 164,629 | 111,097 | |||||
| Total Current Assets | 824,117 | 1,276,065 | |||||
| Intangible assets | 4,397,519 | 3,110,204 | |||||
| Goodwill | 3,095,969 | 1,167,194 | |||||
| Due from related party | 121,318 | 150,971 | |||||
| Investment in unconsolidated joint ventures, cost method | 203,007 | 154,007 | |||||
| Investment in unconsolidated joint ventures, equity method | 266,825 | 273,042 | |||||
| Total Assets | $ | 8,908,755 | $ | 6,131,483 | |||
| Liabilities and Stockholders Equity | |||||||
| Current Liabilities: | |||||||
| Accounts payable and other current liabilities | $ | 703,477 | $ | 493,816 | |||
| Dividends payable | 83,089 | 68,011 | |||||
| Notes payable, current | 128,707 | 17,323 | |||||
| Contingent consideration | 1,929,000 | 60,000 | |||||
| Deferred revenue | 172,010 | 149,965 | |||||
| Total Current Liabilities | 3,016,283 | 789,115 | |||||
| Notes payable | 890,000 | - | |||||
| Notes payable - related parties | 199,000 | - | |||||
| Due to joint ventures - long term | - | - | |||||
| Total Liabilities | 4,105,283 | 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, 92,260 issued and outstanding at June 30, 2024 and December 31, 2023 | 118 | 93 | |||||
| Common stock, $0.001 par value, 50,000,000 shares authorized, 5,107,395 issued and outstanding at June 30, 2024 and December 31, 2023 | 5,128 | 5,108 | |||||
| Additional paid-in capital | 21,847,663 | 21,107,311 | |||||
| Accumulated other comprehensive income | 159,119 | 182,465 | |||||
| Accumulated deficit | (17,529,038 | ) | (15,952,609 | ) | |||
| Total Onfolio Inc. stockholders equity | 4,482,990 | 5,342,368 | |||||
| Non-Controlling Interests | 320,482 | - | |||||
| Total Stockholders' Equity | 4,803,472 | 5,342,368 | |||||
| Total Liabilities and Stockholders' Equity | $ | 8,908,755 | $ | 6,131,483 | |||
| The accompanying notes are an integral part of these consolidated financial statements | |||||||
| Onfolio Holdings, Inc. | |||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||
| (Unaudited) | |||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue, services | $ | 993,166 | $ | 295,750 | $ | 1,716,717 | $ | 688,151 | |||||||
| Revenue, product sales | 733,433 | 1,014,293 | 1,596,784 | 1,973,626 | |||||||||||
| Total Revenue | 1,726,599 | 1,310,043 | 3,313,501 | 2,661,777 | |||||||||||
| Cost of revenue, services | 557,518 | 129,622 | 924,224 | 433,786 | |||||||||||
| Cost of revenue, product sales | 193,650 | 364,850 | 409,510 | 669,207 | |||||||||||
| Total cost of revenue | 751,168 | 494,472 | 1,333,734 | 1,102,993 | |||||||||||
| Gross profit | 975,431 | 815,571 | 1,979,767 | 1,558,784 | |||||||||||
| Operating expenses | |||||||||||||||
| Selling, general and administrative | 1,504,349 | 1,572,825 | 2,842,204 | 3,192,205 | |||||||||||
| Professional fees | 221,255 | 303,443 | 401,445 | 627,828 | |||||||||||
| Impairement of goodwill and intangible assets | - | 189,937 | - | 189,937 | |||||||||||
| Acquisition costs | 8,946 | 57,393 | 103,287 | 208,007 | |||||||||||
| Total operating expenses | 1,734,550 | 2,123,598 | 3,346,936 | 4,217,977 | |||||||||||
| Loss from operations | (759,119 | ) | (1,308,027 | ) | (1,367,169 | ) | (2,659,193 | ) | |||||||
| Other income (expense) | |||||||||||||||
| Equity method income | (1,063 | ) | 5,207 | (6,217 | ) | 12,095 | |||||||||
| Dividend income | - | 247 | - | 1,516 | |||||||||||
| Interest income (expense), net | (22,718 | ) | 2,626 | (40,438 | ) | 58,758 | |||||||||
| Other income | 1,163 | 5,822 | 1,590 | 8,624 | |||||||||||
| Impairment of investments | - | - | - | - | |||||||||||
| Loss on sale of asset | - | - | - | - | |||||||||||
| Total other income | (22,618 | ) | 13,902 | (45,065 | ) | 80,993 | |||||||||
| Loss before income taxes | (781,737 | ) | (1,294,125 | ) | (1,412,234 | ) | (2,578,200 | ) | |||||||
| Income tax (provision) benefit | - | - | - | - | |||||||||||
| Net loss | (781,737 | ) | (1,294,125 | ) | (1,412,234 | ) | (2,578,200 | ) | |||||||
| Net loss attributable to noncontrolling interest | 1,254 | - | 1,918 | - | |||||||||||
| Net loss attributable to Onfolio Holdings Inc. | (780,483 | ) | (1,294,125 | ) | (1,410,316 | ) | (2,578,200 | ) | |||||||
| Preferred Dividends | (84,468 | ) | (50,244 | ) | (166,113 | ) | (101,269 | ) | |||||||
| Net loss to common shareholders | $ | (864,951 | ) | $ | (1,344,369 | ) | $ | (1,576,429 | ) | $ | (2,679,469 | ) | |||
| Net loss per common shareholder | |||||||||||||||
| Basic and diluted | $ | (0.17 | ) | $ | (0.26 | ) | $ | (0.31 | ) | $ | (0.52 | ) | |||
| Weighted average shares outstanding | |||||||||||||||
| Basic and diluted | 5,109,373 | 5,110,195 | 5,108,384 | 5,110,195 | |||||||||||
| The accompanying notes are an integral part of these consolidated financial statements | |||||||||||||||
| Onfolio Holdings, Inc. | |||||||||||||||||||||||||||||||||
| Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||||||||||||
| For the Three and Six Months Ended June 30, 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 | |||||||||||||||||||||||
| - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Acquisition of Business | 8,000 | 8 | - | - | 199,992 | - | - | 200,000 | 400,000 | ||||||||||||||||||||||||
| Stock-based compensation | - | - | - | - | 27,510 | - | - | - | 27,510 | ||||||||||||||||||||||||
| Common stock issued for exercise of options | - | - | 20,000 | 20 | (20 | ) | - | - | - | - | |||||||||||||||||||||||
| Preferred dividends | - | - | - | - | - | (84,468 | ) | - | - | (84,468 | ) | ||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | - | 15,788 | 15,788 | |||||||||||||||||||||||||
| Distribution to non-controlling interest | (3,600 | ) | (3,600 | ) | |||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | (780,483 | ) | - | (1,254 | ) | (781,737 | ) | |||||||||||||||||||||
| Balance, June 30, 2024 | 117,660 | $ | 118 | 5,127,395 | $ | 5,128 | $ | 21,847,663 | $ | (17,529,038 | ) | $ | 159,119 | $ | 320,482 | $ | 4,803,472 | ||||||||||||||||
| Balance, December 31, 2022 | 69,660 | 70 | 5,107,395 | 5,108 | 19,950,776 | (7,580,490 | ) | 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 | - | 11,363,209 | |||||||||||||||||||||||
| Stock-based compensation | - | - | - | - | 250,242 | - | - | - | 250,242 | ||||||||||||||||||||||||
| Preferred dividends | - | - | - | - | - | (50,244 | ) | - | - | (50,244 | ) | ||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | - | 20,067 | - | 20,067 | ||||||||||||||||||||||||
| Net loss | - | - | - | - | - | (1,294,125 | ) | - | - | (1,294,125 | ) | ||||||||||||||||||||||
| Balance, June 30, 2023 | 69,660 | $ | 70 | 5,107,395 | $ | 5,108 | $ | 20,434,373 | $ | (10,259,959 | ) | $ | 109,557 | $ | - | $ | 10,289,149 | ||||||||||||||||
| The accompanying notes are an integral part of these unaudited consolidated financial statements | |||||||||||||||||||||||||||||||||
| Onfolio Holdings, Inc. | |||||||
| Consolidated Statements of Cash Flows | |||||||
| For the Six Months Ended June 30, 2024 and 2023 | |||||||
| (Unaudited) | |||||||
| 2024 | 2023 | ||||||
| Cash Flows from Operating Activities | |||||||
| Net loss | $ | (1,412,234 | ) | $ | (2,578,200 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Stock-based compensation expense | 45,397 | 483,597 | |||||
| Equity method income | 6,217 | (12,095 | ) | ||||
| Dividends received from equity method investment | - | 15,266 | |||||
| Impairment of Cost method investment | - | - | |||||
| Loss on sale of asset | - | - | |||||
| Amortization of intangible assets | 555,802 | 361,108 | |||||
| Impairment of intangible assets | - | 189,937 | |||||
| Net change in: | |||||||
| Accounts receivable | (174,807 | ) | 31,241 | ||||
| Inventory | 8,051 | (12,854 | ) | ||||
| Prepaids and other current assets | (53,532 | ) | 47,791 | ||||
| Accounts payable and other current liabilities | 209,661 | (198,231 | ) | ||||
| Due to joint ventures | 29,653 | (17,806 | ) | ||||
| Deferred revenue | 22,045 | 134,071 | |||||
| Due to related parties | - | - | |||||
| Net cash used in operating activities | (763,747 | ) | (1,556,175 | ) | |||
| Cash Flows from Investing Activities | |||||||
| Proceeds from sale of intangible assets | - | - | |||||
| Cash paid to acquire businesses | (255,000 | ) | (850,000 | ) | |||
| Investments in joint ventures | (49,000 | ) | - | ||||
| Net cash used in investing activities | (304,000 | ) | (850,000 | ) | |||
| Cash Flows from Financing Activities | |||||||
| Proceeds from sale of Series A preferred stock | 10,000 | - | |||||
| Payments of preferred dividends | (151,035 | ) | (109,053 | ) | |||
| Payment of contribution to joint venture note payable | - | - | |||||
| Distributions to non-controlling interest holders | (3,600 | ) | |||||
| Proceeds from notes payable | 417,900 | (40,000 | ) | ||||
| Payments on note payables | (56,516 | ) | (49,744 | ) | |||
| Proceeds from notes payable - related parties | 200,000 | ||||||
| Payments on note payables - related parties | (1,000 | ) | |||||
| Net cash provided by financing activities | 415,749 | (198,797 | ) | ||||
| Effect of foreign currency translation | (20,238 | ) | (30,305 | ) | |||
| Net Change in Cash | (672,236 | ) | (2,635,277 | ) | |||
| Cash, Beginning of Period | 982,261 | 6,701,122 | |||||
| Cash, End of Period | 310,025 | $ | 4,065,845 | ||||
| Cash Paid For: | |||||||
| Income Taxes | $ | - | $ | - | |||
| Interest | $ | 41,700 | $ | 18,836 | |||
| Non-cash transactions: | |||||||
| Notes payable issued for asset acquisitions | $ | 640,000 | $ | - | |||
| Preferred stock issued for acquisitions | $ | 625,000 | $ | - | |||
| Contingent consideration issued for acquisitions | $ | 1,869,000 | $ | - | |||
| Common stock options issued for acquisitions | $ | 60,000 | $ | - | |||
| Non-controlling interest issued for acquisitions | $ | 126,000 | $ | - | |||
| Shares issued for conversion of options | $ | 20 | $ | - | |||
| The accompanying notes are an integral part of these consolidated financial statements | |||||||
| Onfolio | ||||||||||
| Weighted Average Common Stock Outstanding | ||||||||||
| 6/30/2024 | ||||||||||
| Year to Date FY 2024 | Quarter to Date FY 2023 | |||||||||
| Total | Total | |||||||||
| Issued Date | # Shares | Shares | # Days | Average # Shs | Issued Date | # Shares | Shares | # Days | Average # Shs | |
| 12/31/2023 | 5,107,395 | 5,107,395 | 173 | 883,579,335 | 3/31/2024 | 5,107,395 | 5,107,395 | 82 | 418,806,390 | |
| 6/21/2024 | 20,000 | 5,127,395 | 9 | 46,146,555 | 6/21/2024 | 20,000 | 5,127,395 | 9 | 46,146,555 | |
| 6/30/24 | 6/30/24 | |||||||||
| Total | 5,127,395 | 182 | 929,725,890 | Total | 5,127,395 | 91 | 464,952,945 | |||
| Pre acquisition | |||||||||||||||||
| Onfolio | Total Proforma | Total Proforma | |||||||||||||||
| DDS | YTD Q2 24 Consolidated | before adjustments | After Adjustments | Previous YTD | Three months | ||||||||||||
| DDS | Other | ||||||||||||||||
| Revenue | 141,398 | 3,313,501 | 3,454,899 | 3,454,899 | 1,586,902 | 1,867,997 | |||||||||||
| COGS | 1,333,734 | 1,333,734 | 1,333,734 | 582,566 | 751,168 | ||||||||||||
| Gross Profit | 141,398 | 1,979,767 | 2,121,165 | - | 2,121,165 | 860,917 | 1,260,248 | ||||||||||
| Operating Expenses | |||||||||||||||||
| SG&A | 75,473 | 2,842,204 | 2,917,677 | 112,248 | 3,029,925 | 1,393,979 | 1,635,946 | ||||||||||
| Impairment | - | - | - | - | |||||||||||||
| Professional Fees | 401,445 | 401,445 | 401,445 | 180,190 | 221,255 | ||||||||||||
| Acquisition costs | 103,287 | 103,287 | (103,287 | ) | - | - | - | ||||||||||
| Total Operating | 75,473 | 3,346,936 | 3,422,409 | 112,248 | (103,287 | ) | 3,431,370 | 2,121,446 | 1,309,924 | ||||||||
| Operating Income/loss | 65,925 | (1,367,169 | ) | (1,301,244 | ) | (112,248 | ) | 103,287 | (1,310,205 | ) | (1,260,530 | ) | (49,676 | ) | |||
| Total other income | (45,065 | ) | (45,065 | ) | (7,000 | ) | (52,065 | ) | (25,947 | ) | (26,118 | ) | |||||
| Loss before income taxes | 65,925 | (1,412,234 | ) | (1,346,309 | ) | (119,248 | ) | 103,287 | (1,362,270 | ) | (1,213,353 | ) | (148,917 | ) | |||
| Income tax (provision) benefit | - | - | - | - | - | ||||||||||||
| Net Income (loss) | 65,925 | (1,412,234 | ) | (1,346,309 | ) | (119,248 | ) | 103,287 | (1,362,270 | ) | (1,213,353 | ) | (148,917 | ) | |||
| Preferred dividends | (166,113 | ) | (166,113 | ) | (166,113 | ) | (51,025 | ) | (115,088 | ) | |||||||
| net loss available to common | (1,578,347 | ) | (1,512,422 | ) | (119,248 | ) | 103,287 | (1,528,383 | ) | (1,264,378 | ) | (264,005 | ) | ||||
| Net Loss per share | (0.30 | ) | (0.30 | ) | (0.05 | ) | |||||||||||
| WASO | 5,110,195 | 5,110,195 | 5,110,195 | ||||||||||||||
