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:   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 )