Onfolio Holdings Inc. Announces Second Quarter 2023 Financial Results and Provides Corporate Update

Onfolio Holdings Inc. Announces Second Quarter 2023 Financial Results and Provides Corporate Update

WILMINGTON, Del., Aug. 14, 2023 (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, 2023.

Second Quarter 2023 Financial Highlights

  • Second quarter 2023 revenue grew 266% year-over-year to $1.31 million compared to $0.36 million in the second quarter of 2022
  • Second quarter 2023 gross profit grew 445% to $0.82 million (representing gross margin of 62.3%) vs. $0.15 million in the prior year period (representing gross margin of 41.8%)
  • Second quarter 2023 total operating expenses increased 56% to $2.12 million vs. $1.36 million in the prior year period
  • Second quarter 2023 net loss to common shareholders expanded to $1.29 million vs. net $1.26 million net loss in the prior year period
  • Cash at June 30, 2023 was $4.05 million vs. $6.70 million at December 31, 2022

“We made significant progress in reducing our sequential cash burn in the second quarter by 35%, as cash burn improved from approximately $940,000 in the first quarter, excluding one-time costs related to the Contentellect acquisition, to approximately $600,000 in the second quarter,” commented Onfolio CEO Dominic Wells. “There were cross-trends in some line items on the income statement that may mask this trend, along with a $189,000 impairment charge for a write-down in some of our smaller assets, but this is the main takeaway from our second quarter financial performance. This is consistent with comments from the first quarter regarding some one-time items and carryover expenses from 2022 being absent in subsequent quarters.

“Revenue stabilized sequentially and was rather flat, but we believe some of the AI tools we are developing will be incremental to our revenue base. Additionally, we believe previously announced new leadership at WPFolio and Proofread Anywhere will help us optimize revenue performance from these cornerstone acquisitions last fall.

“We continue to explore options for growth capital to make additional acquisitions. Meanwhile, we will continue to focus on reducing our cash burn and optimizing our organic revenue opportunities. We also continue to develop AI tools that we believe could have a significant impact on business development opportunities as well as help us further optimize our revenue opportunities and effectively manage expenses,” concluded Mr. Wells.

About Onfolio Holdings

Onfolio acquires and manages a diversified portfolio of online businesses across a broad range of verticals, each with a niche content focus and brand identity. Onfolio acquires business that meet its investment criteria, being that such businesses operate in sectors with long-term growth opportunities, have positive and stable cash flows, face minimal threats of technological or competitive obsolescence and can be managed by our existing team or have strong management teams largely in place. The Company excels at finding acquisition opportunities where the seller has not fully optimized their business, and Onfolio’s experience and skillset allows it 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 other risks to which our Company is subject, and various 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
 June 30
 December 31
Current Assets: 
Cash and cash equivalents 4,052,355   6,701,122  
Accounts receivable, net 106,357   137,598  
Inventory 117,983   105,129  
Prepaids and other current assets 164,389   212,180  
Total Current Assets 4,441,084   7,156,029  
Intangible assets 4,185,362   3,864,618  
Goodwill 4,243,718   4,209,126  
Due from related party 129,526   111,720  
Investment in unconsolidated joint ventures, cost method 154,007   154,007  
Investment in unconsolidated joint ventures, equity method 277,155   280,326  
Total Assets$13,430,852  $15,775,826  
Liabilities and Stockholder’s Equity 
Current Liabilities: 
Accounts payable and other current liabilities$352,223  $550,454  
Dividends payable 46,620   54,404  
Acquisition notes payable 2,416,323   2,456,323  
Notes payable 19,215   68,959  
Contingent consideration 60,000   60,000  
Deferred revenue 247,322   113,251  
Total Current Liabilities 3,141,703   3,303,391  
Total Liabilities 3,141,703   3,303,391  
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, 69,660 issued and
outstanding at June 30, 2023 and December 31, 2022;
 70   70  
Common stock, $0.001 par value, 50,000,000 shares authorized, 5,110,195 issued and outstanding at
June 30, 2023 and December 31, 2022;
 5,110   5,110  
Additional paid-in capital 20,434,371   19,950,774  
Accumulated other comprehensive income 109,557   96,971  
Accumulated deficit (10,259,959)  (7,580,490) 
Total Stockholders' Equity 10,289,149   12,472,435  
Total Liabilities and Stockholders' Equity$13,430,852  $15,775,826  

Onfolio Holdings, Inc.
Consolidated Statements of Operations
 For the Three Months Ended
June 30,
 For the Six Months Ended
June 30,
 2023 2022 2023 2022 
Revenue, services$295,750  $68,143  $688,151  $186,130  
Revenue, product sales 1,014,293   289,679   1,973,626   557,615  
Total Revenue 1,310,043   357,822   2,661,777   743,745  
Cost of revenue, services 129,622   55,416   433,786   183,755  
Cost of revenue, product sales 364,850   152,697   669,207   249,127  
Total cost of revenue 494,472   208,113   1,102,993   432,882  
Gross profit 815,571   149,710   1,558,784   310,863  
Operating expenses       
Selling, general and administrative 1,572,825   1,035,463   3,192,205   1,769,753  
Professional fees 303,443   161,751   627,828   268,383  
Impairment of intangible assets 189,937   -   189,937   -  
Acquisition costs 57,393   163,307   208,007   240,468  
Total operating expenses 2,123,598   1,360,521   4,217,977   2,278,604  
Loss from operations (1,308,027)  (1,210,811)  (2,659,193)  (1,967,741) 
Other income (expense)       
Equity method income 5,207   6,309   12,095   16,488  
Dividend income 247   1,333   1,516   1,718  
Interest income (expense), net 2,626   1,144   58,758   (1,256) 
Other income 5,822   1,354   8,624   1,354  
Impairment of investments -   (29,557)  -   (29,557) 
Loss on sale of asset -   (34,306)  -   (34,306) 
Total other income  13,902   (53,723)  80,993   (45,559) 
Loss before income taxes (1,294,125)  (1,264,534)  (2,578,200)  (2,013,300) 
Income tax (provision) benefit -   -   -   -  
Net loss (1,294,125)  (1,264,534)  (2,578,200)  (2,013,300) 
Preferred Dividends (50,244)  (45,728)  (101,269)  (88,848) 
Net loss to common shareholders$(1,344,369) $(1,310,262) $(2,679,469) $(2,102,148) 
Net loss per common shareholder       
Basic and diluted$(0.26) $(0.56) $(0.52) $(0.89) 
Weighted average shares outstanding       
Basic and diluted 5,110,195   2,355,045   5,110,195   2,354,560  

Onfolio Holdings, Inc.
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2023 and 2022
 2023 2022 
Cash Flows from Operating Activities   
Net loss$(2,578,200) $(2,013,300) 
Adjustments to reconcile net loss to net cash provided by operating
Stock-based compensation expense 483,597   459,845  
Equity method income (12,095)  (16,488) 
Dividends received from equity method investment 15,266   17,607  
Loss on sale of asset -   34,306  
Amortization of intangible assets 361,108   -  
Impairment of intangible assets 189,937   -  
Net change in:   
Accounts receivable 31,241   (23,026) 
Inventory (12,854)  (9,797) 
Prepaids and other current assets 47,791   (51,635) 
Accounts payable and other current liabilities (198,231)  72,638  
Due to joint ventures (17,806)  (31,796) 
Deferred revenue 134,071   3,980  
Due to related parties -   (480) 
        Net cash used in operating activities (1,556,175)  (1,558,146) 
Cash Flows from Investing Activities   
Proceeds from sale of intangible assets -   45,694  
Cash paid to acquire business (850,000)  -  
Investments in joint ventures -   (22,500) 
        Net cash used in investing activities (850,000)  23,194  
Cash Flows from Financing Activities   
Proceeds from sale of Series A preferred stock -   316,500  
Payments of preferred dividends (109,053)  (44,995) 
Payment of contribution to joint venture note payable -   (35,000) 
Payments on acquisition note payable (40,000)  -  
Proceeds from notes payable -   44,000  
Payments on note payables (49,744)  (31,151) 
        Net cash provided by financing activities (198,797)  249,354  
Effect of foreign currency translation (43,795)  -  
Net Change in Cash (2,648,767)  (1,285,598) 
Cash, Beginning of Period 6,701,122   1,710,318  
Cash, End of Period 4,052,355  $424,720  
Cash Paid For:   
Income Taxes$-  $-  
Interest$18,836  $1,256