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

About this update from Onfolio Holdings Inc.

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: [email protected] 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 Source: Onfolio Holdings Inc.

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