WILMINGTON, Del., Nov. 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 third quarter ended September 30, 2023.
Financial Highlights
Third quarter 2023 revenue grew 273% year-over-year to $1.31 million compared to $0.35 million in the third quarter of 2022
Third quarter 2023 gross profit grew 526% to $0.85 million (representing gross margin of 64.5%) vs. $0.14 million in the prior year period (representing gross margin of 38.4%)
Third quarter 2023 total operating expenses increased 397% to $5.59 million (including approximately $3.8 million in impairment charges related to intangible assets) vs. $1.12 million in the prior year period
Third quarter 2023 net loss to common shareholders expanded to $4.79 million vs. $1.31 million net loss in the prior year period
Cash at September 30, 2023 was $3.38 million vs. $6.70 million at December 31, 2022
“The third quarter was marked by sequentially flat revenue and operating expenses that were nearly $300,000 lower than in the second quarter, excluding the impairment charge of intangible assets recognized in the third quarter. Our business model assumes that our success lies in buying stable online businesses and growing them organically over time while demonstrating operating leverage and keeping operating expenses in check,” commented Onfolio CEO Dominic Wells. “Despite a few one-time items impacting prior quarter results and the impairment charge this quarter, we believe our ability to manage operating expenses is apparent. To this end, we recently announced additional cost-savings initiatives that should show results beginning in the fourth quarter. We are committed to becoming profitable, and managing expenses is an important component of that process.
“Of course, another key component of our corporate strategy is growing organically as well as through acquisitions of sustainable online businesses. We have a number of corporate initiatives under way that should help us deliver organic growth, including the roll out of some AI tools that can help a number of our portfolio companies.
“On the acquisition front, we recently announced the raise of over $1 million through the sale of preferred shares and promissory notes. We continue to seek additional funds under the preferred share program and are also exploring other avenues to raise non-dilutive capital. I want to emphasize the funds we are seeking are considered growth capital and will be used to make product or business acquisitions, not to meet payroll or the like. We see a number of opportunities in the market and are optimistic about having news to share on this front in the near future,” 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.
