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

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.

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  
                           


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