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:

investors@onfolio.com

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

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