Onfolio Holdings Inc. Announces Fourth Quarter and Year-End 2024 Financial Results and Provides Corporate Update
WILMINGTON, Del., April 16, 2025 (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 fourth quarter and full year ended December 31, 2024. The Company's Annual Report on Form 10-K was filed with the Securities and Exchange Commission on April 15, 2025 and is available on the SEC's website at www.sec.gov.Recent Corporate HighlightsRecorded $136,000 net income for Q4 2024Completed the acquisition of Eastern Standard, a digital web agency focused on branding, user experience, and optimization, in October 2024.Fourth Quarter and Year End 2024 Financial HighlightsFourth quarter revenue grew 96% to $2.49M vs. $1.27M in the prior year period and vs. $2.01M in 3Q24Fourth quarter gross profit grew 56% to $1.32M vs. $0.84M in the prior year period and vs. $1.20M in 3Q24Fourth quarter total operating expenses increased 20% to $2.01M vs. $1.67M in the prior year period and vs. $1.69M in 3Q24Fourth quarter net profit to common shareholders improved by over $1M to a $0.14M profit vs. a $0.9M loss in the prior year period and vs. a $0.57M loss in 3Q24Four quarter EPS improved by 102% to $0.01 vs -$0.37 in the prior year.Revenue grew 49% YOY to $7.82M in 2024 vs. $5.24M in 2023Gross profit grew 39% to $4.5M vs $3.24M in 2023Total operating expenses shrank 44% to $7.05M vs. $12.54M in 2023Net loss to common shareholders improved 77% to $2.15M vs $9.43M in 20232024 EPS grew 77% YOY to -$0.41 from -$1.84Cash at 12/31/24 was $0.48M vs. $0.98M at 12/31/23"The 4th Quarter 2024 saw us record a positive net income for the first time as a publicly traded company, even if it was small. Throughout 2024 we continued to make progress in all vital areas of our company. We grew our revenues, we acquired more companies, we reduced our expenses, and we strengthened our balance sheet with business divestments," commented Onfolio CEO Dominic Wells."We still have work to do, and believe 2025 will see us further build on the foundations we laid in 2024, particularly Q3 and Q4," Wells continued."Our goals for 2024 were to grow revenues, grow gross profits, reduce operating expenses, raise non-dilutive capital, regain Nasdaq compliance (ideally without a reverse stock-split), and reach profitability, or at least break-even.""Those were no small goals, yet they were crucial to achieve, and the team worked hard throughout the year to significantly meet all of those goals.”"We are a growth-minded organization with long-term views, and at times feel frustrated with where we are at any given time. It is important we look back at how far we have come, compare ourselves to where we were a year ago, and take the wins that we have.""As such, we consider 2024 to be a success, and we have not taken our foot off the pedal in 2025.”"We launched a new Reg D offering for our Series A Preferred Shares in February 2025.”“As we continue to raise more capital, we will be in a better position to make accretive acquisitions and eventually sustain profitability,” concluded Wells.About Onfolio HoldingsOnfolio 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 StatementsThe 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: [email protected] Onfolio Holdings, Inc.Consolidated Balance Sheets December 31 December 31 2024 2023 Assets Current Assets: Cash$476,874 $982,261 Accounts receivable, net 755,804 90,070 Inventory 65,876 92,637 Prepaids and other current assets 138,007 111,097 Total Current Assets 1,436,561 1,276,065 Intangible assets 3,323,211 1,675,480 Goodwill 4,210,557 1,596,673 Fixed Assets 5,135 - Due from related party 126,530 150,971 Investment in unconsolidated joint ventures, cost method 213,007 154,007 Investment in unconsolidated joint ventures, equity method 268,231 273,042 Other assets 9,465 - Total Assets$9,592,697 $5,126,238 Liabilities and Stockholders Equity Current Liabilities: Accounts payable and other current liabilities$969,068 $493,816 Dividends payable 100,797 68,011 Notes payable, current 702,634 17,323 Notes Payable - Related Party, current 850,000 - Contingent consideration 981,591 60,000 Deferred revenue 589,913 149,965 Total Current Liabilities 4,194,003 789,115 Notes payable 450,000 - Notes payable - related parties 599,000 - Due to joint ventures - long term - - Total Liabilities 5,243,003 789,115 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, 134,460 and 92,260 issued and outstanding at December 31, 2024 and 2023 134 93 Common stock, $0.001 par value, 50,000,000 shares authorized, 5,127,395 and 5,107,395 issued and outstanding at December 31, 2024 and 2023 5,128 5,108 Additional paid-in capital 22,316,751 21,107,311 Accumulated other comprehensive income 68,105 182,465 Accumulated deficit (19,078,287) (16,957,854)Total Onfolio Inc. stockholders equity 3,311,831 4,337,123 Non-Controlling Interests 1,037,863 - Total Stockholders' Equity 4,349,694 4,337,123 Total Liabilities and Stockholders' Equity$9,592,697 $5,126,238 The accompanying notes are an integral part of these consolidated financial statements Onfolio Holdings, Inc.Consolidated Statements of Operations For the Three Months Ended Dec 31, For the Years Ended Dec 31, 2024 2023 2024 2023 Revenue, services$2,024,308 $374,397 $4,660,069 $1,496,038 Revenue, product sales 512,496 890,501 3,202,008 3,743,948 Total Revenue 2,536,804 1,264,898 7,862,077 5,239,986 Cost of revenue, services 1,059,161 186,039 2,609,061 837,888 Cost of revenue, product sales 118,208 242,527 708,139 1,159,267 Total cost of revenue 1,177,369 428,566 3,317,200 1,997,155 Gross profit 1,359,435 836,332 4,544,877 3,242,831 Operating expenses Selling, general and administrative 1,402,154 1,257,244 5,718,243 5,981,601 Professional fees 353,695 316,500 948,751 1,160,410 Acquisition costs 142,465 41,367 264,731 326,899 Impairement of goodwill and intangible assets 116,322 1,064,249 121,000 5,016,765 Total operating expenses 2,014,636 2,679,360 7,052,725 12,485,675 Loss from operations (655,201) (1,843,028) (2,507,848) (9,242,844) Other income (expense) Equity method income (loss) 748 (1,731) (4,812) 13,190 Dividend income 6,313 - 12,157 1,610 Interest income (expense), net (41,103) 6,052 (101,667) 75,041 Other income 3,249 - 6,183 2,937 Gain on change in fair value of contingent consideration 368,464 - 368,464 - Impairment of investments - - - - Gain on sale of business 453,581 - 453,581 - Total other income 791,252 4,321 733,906 92,778 Loss before income taxes 136,051 (1,838,707) (1,773,942) (9,150,066) Income tax (provision) benefit - - - - Net loss 136,051 (1,838,707) (1,773,942) (9,150,066) Net loss attributable to noncontrolling interest (2,224) - 7,737 - Net loss attributable to Onfolio Holdings Inc. 133,827 (1,838,707) (1,766,205) (9,150,066) Preferred Dividends (100,395) (54,231) (354,228) (227,298) Net loss to common shareholders$33,432 $(1,892,938) $(2,120,433) $(9,377,364) Net loss per common shareholder Basic and diluted$0.01 $(0.37) $(0.41) $(1.84) Weighted average shares outstanding Basic and diluted 5,127,395 5,110,195 5,117,941 5,107,395 The accompanying notes are an integral part of these consolidated financial statements Onfolio Holdings, Inc.Consolidated Statements of Stockholders' EquityFor the Years Ended December 31, 2024 and 2023 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, 202269,660 $70 5,107,395 $5,108 $19,950,776 $(7,580,490) $96,971 $- $12,472,435 - - - - - - Sale of preferred stock for cash22,600 23 - - 564,977 - - - 565,000 Stock-based compensation- - - - 591,558 - - - 591,558 Preferred dividends- - - - - (227,298) - - (227,298)Foreign currency translation- - - - - - 85,494 - 85,494 Net loss (restated)- - - - - (9,150,066) - (9,150,066) Balance, December 31, 2023 (as restated)92,260 93 5,107,395 5,108 21,107,311 (16,957,854) 182,465 - 4,337,123 - - - - - - Acquisition of Business41,400 41 - - 1,094,959 - - 1,066,000 2,161,000 Sale of preferred stock for cash800 - - - 20,000 - - - 20,000 Stock-based compensation- - - - 56,887 - - - 56,887 Partner Contributions 24,654 24,654 Common stock issued for exercise of options- - 20,000 20 12,940 - - - 12,960 Preferred dividends- - - - - (354,228) - - (354,228)Foreign currency translation- - - - - - - - Distribution to non-controlling interest (20,400) (20,400)Net loss- - - - - (1,766,205) - (7,737) (1,773,942) Balance, December 31, 2024134,460 $134 5,127,395 $5,128 $22,316,751 $(19,078,287) $182,465 $1,037,863 $4,464,054 The accompanying notes are an integral part of these consolidated financial statements Onfolio Holdings, Inc.Consolidated Statements of Cash FlowsFor the Years Ended December 31, 2024 and 2023 2024 2023 Cash Flows from Operating Activities Net loss$(1,773,942) $(9,150,066)Adjustments to reconcile net loss to net cash provided by operating activities: Stock-based compensation expense 56,887 591,558 Equity method loss (income) 4,812 (13,190)Dividends received from equity method investment - 20,474 Amortization of intangible assets 906,737 680,693 Impairment of intangible assets 121,000 5,016,765 Gain on sale of subsidiary (453,581) - Change in FV of contingent consideration (368,464) - Net change in: Accounts receivable (282,002) 47,528 Inventory 26,761 12,492 Prepaids and other current assets 4,891 101,083 Accounts payable and other current liabilities 477,247 (56,638)Due to joint ventures 24,441 (39,251)Deferred revenue 86,850 36,714 Due to related parties - - Net cash used in operating activities (1,168,363) (2,751,838) Cash Flows from Investing Activities Cash paid to acquire businesses (255,000) (850,000)Cash received for sale of subisiary 780,000 - Investments in joint ventures (59,000) - Investment in cryptocurrency (15,000) - Net cash used in investing activities 451,000 (850,000) Cash Flows from Financing Activities Proceeds from sale of Series A preferred stock 20,000 565,000 Proceeds from exercise of stock options 12,960 - Payments of preferred dividends (321,442) (213,691)Distributions to non-controlling interest holders (20,400) - Proceeds from notes payable 881,650 - Payments on note payables (386,339) (68,959)Payments on acquisition note payables - (2,439,000)Proceeds from notes payable - related parties 200,000 - Payments on note payables - related parties (1,000) - Payments on contigent consideration (59,093) - Net cash provided by financing activities 326,336 (2,156,650) Effect of foreign currency translation (114,360) 39,627 Net Change in Cash (505,387) (5,718,861)Cash, Beginning of Period 982,261 6,701,122 Cash, End of Period 476,874 $982,261 Cash Paid For: Income Taxes$- $- Interest$101,667 $68,938 Non-cash transactions: Notes payable issued for asset acquisitions$1,490,000 $- Preferred stock issued for acquisitions$1,035,000 $- Contingent consideration issued for acquisitions$986,000 $- Common stock options issued for acquisitions$60,000 $- Non-controlling interest issued for acquisitions$1,066,000 $- The accompanying notes are an integral part of these consolidated financial statements