Earnings release
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Onfolio Holdings Inc. Announces First Quarter 2025 Financial Results andProvides Corporate Update May 16, 2025 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 digitalmarketing and online education businesses, announces financial results for the first quarter ended March 31st2025. 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 andincreased 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 Q4of 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 inoperations 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 comparedto the prior year. Taking these non-cash increases into account, our net loss improved year-on-year. During thefirst quarter of 2025, we continued our effort to improve operations within our portfolio companies, which hasresulted in reduced cost, better efficiency, a renewed focus on organic growth and the development of newservices. "During the first quarter of 2025, we also raised non-dilutive capital through the sale of our Series A PreferredShares, which have consistently paid a 12% annual dividend for over four years. The additional capital was primarilyused 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 educationbusiness 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 duringthe 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 minimalthreats of technological or competitive obsolescence and (iv) can be managed by our existing team or have strongmanagement teams largely in place. Through the acquisition and growth of a diversified group of online businesseswith these characteristics, we believe we offer investors in our shares an opportunity to diversify their own portfoliorisk. Visitwww.onfolio.comfor more information. Forward-Looking Statements The information posted in this release may contain forward-looking statements within the meaning of the PrivateSecurities 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 similarexpressions. Examples of forward-looking statements include, among others, statements we make regardingexpected 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 arebased only on our current beliefs, expectations and assumptions regarding the future of our business, future plansand strategies, projections, anticipated events and trends, the economy and other future conditions. Becauseforward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes incircumstances that are difficult to predict and many of which are outside of our control. Our actual results andfinancial condition may differ materially from those indicated in the forward-looking statements. Therefore, you
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should not rely on any of these forward-looking statements. Important factors that could cause our actual resultsand financial condition to differ materially from those indicated in the forward-looking statements include, amongothers, the following: general economic and business conditions, effects of continued geopolitical unrest andregional conflicts, competition, changes in technology and methods of marketing, delays in completing newcustomer offerings, changes in customer order patterns, changes in customer offering mix, continued success intechnological advances and delivering technological innovations, delays due to issues with outsourced serviceproviders, those events and factors described by us in Item 1A "Risk Factors" in our most recent Form 10-K and10Q; 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 andspeaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-lookingstatement, 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 March 31 December31 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, costmethod 213,007 213,007 Investment in unconsolidated joint ventures, equitymethod 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, 5,000,000shares authorized Series A Preferred stock, $0.001 par value,1,000,000 shares authorized, 165,260 and 134,460issued and outstanding at March 31, 2025 andDecember 31, 2024 165 134
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Common stock, $0.001 par value, 50,000,000shares authorized, 5,127,395 issued andoutstanding 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 financialstatements Onfolio Holdings, Inc. Consolidated Statements of Operations For the Three MonthsEnded March 31, 2025 2024 Revenue, services $1,796,595$723,551 Revenue, product sales 1,015,348 863,351 Total Revenue 2,811,9431,586,902 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 1,707,1201,004,336 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 contingentconsideration 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
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The accompanying notes are an integral part of these consolidated financialstatements Onfolio Holdings, Inc. Consolidated Statements of Stockholders' Equity For the Three Months Ended March 31, 2025 and 2024 Preferred Stock,$0.001 Par value Common Stock,$0.001 Par Value Additional AccumulatedAccumulatedOther Non Stockholders' SharesAmount SharesAmount Paid-InCapital Deficit ComprehensiveIncome ControllingInterest Equity Balance,December31, 2024 134,460$1345,127,395$5,128$22,316,751$(19,078,287)$ 68,105 $1,037,863$4,349,694 - - - - - - Sale ofpreferredstock forcash 28,000 28 - - 699,972 - - - 700,000 Preferredstock andcommonstock optionsissued forpayment ofcontingentconsideration 2,800 3 - - 169,997 - - - 170,000 Stock-basedcompensation - - - - 272,930 - - - 272,930 Payment ofnote paybleby NCI 400,000 400,000 Preferreddividends - - - - - (103,921) - - (103,921) Foreigncurrencytranslation - - - - - - 29,047 - 29,047 Distributionto non-controllinginterest (17,820) (17,820) Net loss - - - - - (794,387) - (12,041) (806,428) Balance,March 31,2025 165,260 1655,127,3955,12823,459,650(19,976,595) 97,152 1,408,002 4,993,502 Balance,December31, 2023 92,260 935,107,3955,108 21,107,311(16,957,854) 182,465 - 4,337,123 Acquisition ofBusiness 17,000 17 - - 484,983 - - 126,000 611,000 Sale ofpreferredstock forcash 400 - - - 10,000 - - - 10,000 Stock-basedcompensation - - - - 17,887 - - - 17,887 Preferreddividends - - - - - (81,645) - - (81,645) Foreigncurrencytranslation - - - - - - (39,134) (39,134) Distributionto non-controllinginterest - - - - - - - - - Net loss - - - - - (477,826) - (664) (478,490)
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Balance,March 31,2024 109,660$1105,107,395$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 providedby 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:
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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 notepayable $400,000$ - The accompanying notes are an integral part of these consolidated financialstatements