WILMINGTON, Del., May 15, 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 first quarter of 2023.

Recent Corporate Highlights

Completed the acquisition of Contentellect, a provider of software that allows small and midsize businesses to scale their content with blog writing and link building, in February 2023
Appointed:
- Ravi Jayagopal as CEO of WPFolio, a WordPress plugin development company
- Tanya Vaughn as CEO of Proofread Anywhere, an online provider of resources for those looking to become professional proofreaders

First Quarter 2023 Financial Highlights

First quarter 2023 revenue grew 250% year-over-year to $1.35 million vs. $0.39 million in the first quarter of 2022
First quarter 2023 gross profit grew 361% to $0.74 million (representing gross margin of 55.0%) vs. $0.16 million in the prior year period (representing gross margin of 41.8%)
First quarter 2023 total operating expenses increased 128% to $2.09 million vs. $0.92 million in the prior year period
First quarter 2023 net loss to common shareholders expanded to $1.34 million vs. $0.79 million in the prior year period
Cash at 3/31/23 was $4.66 million vs. $6.70 million at 12/31/22

"In the first quarter of 2023, we continued to integrate our three acquisitions from October 2022 – BWPS, Proofread Anywhere, and SEOButler Ltd – and continued with our Onfolio 2.0 strategy with the additional acquisition and early integration of Contentellect," commented Onfolio CEO, Dominic Wells. "Collectively, these acquisitions bring several favorable attributes that should help build a stronger foundation for the Company. As previously announced, we are deliberately moving away from smaller content websites and towards more service businesses, agencies, online education, and digital products that are less subject to changes in the Google search ranking algorithm. These businesses also bring higher revenues and a higher recurring revenue stream than many of our previous Onfolio 1.0 acquisitions and managed websites.

"Combined with our decision last fall to decentralize our organizational structure, we believe we are in a much stronger position to grow sustainably over the coming years, especially as we are always evaluating additional acquisitions that could accelerate our path to profitability. The recent appointments of Ravi Jayagopal as CEO of WPFolio and Tanya Vaughn as CEO of Proofread Anywhere should help us optimize these two subsidiaries that were acquired last October and are at the heart of our decentralization strategy.

"Total revenue in the first quarter of 2023 of $1.35 million grew approximately 20% sequentially, and we recognized sequentially higher revenue each month since December, culminating in March representing our highest monthly revenue total ever, thanks to primarily the four acquisitions we have made since our IPO. We recognized approximately $300,000 in expenses, such as acquisitions costs related to our fourth quarter 2022 acquisitions, higher than normal legal and professional fees, including some tied to our IPO, and one-time growth expenses for newly acquired businesses, in the first quarter that are not expected to recur moving forward. It is also worth noting that, beginning with the start of 2023, some expenses that were previously classified as SG&A expenses are now considered part of cost of goods sold.

"Cost advantages from our decentralization efforts at the corporate level, along with general costs control efforts, are beginning to show positive results. Moreover, we expect lower expenses throughout the remainder of 2023 and, along with expected increasing revenue, improving operating leverage. Ultimately, we anticipate further acquisitions will bring us to profitability," 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 under the caption "Risk Factors" included in our SEC filings 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:

CORE IR

investors@onfolio.com

516-222-2560

Note: Financial Statements to follow:

Onfolio Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)
	March 31			December 31
	2023			2022
Assets

Current Assets:
Cash	4,663,522			6,701,122
Accounts receivable, net	114,962			137,598
Inventory	90,301			105,129
Prepaids and other current assets	241,455			212,180
Total Current Assets	5,110,240			7,156,029

Intangible assets	4,556,071			3,864,618
Goodwill	4,219,501			4,209,126
Due from related party	127,854			111,720
Investment in unconsolidated joint ventures, cost method	154,007			154,007
Investment in unconsolidated joint ventures, equity method	278,837			280,326

Total Assets	$	14,446,510		$	15,775,826

Liabilities and Stockholders Equity

Current Liabilities:
Accounts payable and other current liabilities	$	342,678		$	550,454
Dividends payable	30,435			54,404
Acquisition notes payable	2,416,323			2,456,323
Notes payable	48,627			68,959
Due to related parties	-			-
Contingent consideration	60,000			60,000
Deferred revenue	185,238			113,251
Total Current Liabilities	3,083,301			3,303,391

Due to joint ventures - long term	-			-
Total Liabilities	3,083,301			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 March 31, 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 March 31, 2023 and December 31, 2022;	5,110			5,110
Additional paid-in capital	20,184,129			19,950,774
Accumulated other comprehensive income	89,490			96,971
Accumulated deficit	(8,915,590		)	(7,580,490		)
Total Stockholders' Equity	11,363,209			12,472,435

Total Liabilities and Stockholders' Equity	$	14,446,510		$	15,775,826

Onfolio Holdings, Inc.
Consolidated Statements of Operations
(Unaudited)

	For the Three Months Ended March 31,
	2023			2022

Revenue, services	$	392,401		$	117,987
Revenue, product sales	959,333			267,936
Total Revenue	1,351,734			385,923

Cost of revenue, services	273,313			128,339
Cost of revenue, product sales	335,208			96,431
Total cost of revenue	608,521			224,770

Gross profit	743,213			161,153

Operating expenses
Selling, general and administrative	1,696,380			797,490
Professional fees	247,385			43,432
Acquisition costs	150,614			77,161
Total operating expenses	2,094,379			918,083

Loss from operations	(1,351,166		)	(756,930		)

Other income (expense)
Equity method income	6,888			10,179
Dividend income	1,269			385
Interest income (expense), net	56,132			(2,400		)
Other income	2,802			-
Impairment of investments	-			-
Loss on sale of asset	-			-
Total other income	67,091			8,164

Loss before income taxes	(1,284,075		)	(748,766		)

Income tax (provision) benefit	-			-

Net loss	(1,284,075		)	(748,766		)

Preferred Dividends	(51,025		)	(43,120		)
Net loss to common shareholders	$	(1,335,100	)	$	(791,886	)

Net loss per common shareholder
Basic and diluted	$	(0.26	)	$	(0.34	)

Weighted average shares outstanding
Basic and diluted	5,110,196			2,354,049

Onfolio Holdings, Inc.
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2023 and 2022
(Unaudited)

	2023			2022
Cash Flows from Operating Activities
Net loss	$	(1,284,075	)	$	(748,766	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred tax expense (benefit)	-			-
Stock-based compensation expense	233,355			219,660
Equity method income	(6,888		)	(10,179		)
Dividends received from equity method investment	8,377			7,426
Impairment of Cost method investment	-			-
Loss on sale of asset	-			-
Amortization of intangible assets	170,996			-
Net change in:
Accounts receivable	22,636			(14,782		)
Inventory	14,828			1,328
Prepaids and other current assets	(29,275		)	(18,767		)
Accounts payable and other current liabilities	(207,776		)	39,262
Due to joint ventures	(16,134		)	(33,142		)
Deferred revenue	71,987			15,980
Due to related parties	-			(480		)

Net cash used in operating activities	(1,021,969		)	(542,460		)

Cash Flows from Investing Activities
Proceeds from sale of intangible assets	-			-
Purchase of intangible assets	-			-
Cash paid to acquire businesses	(850,000		)	-
Advances to related parties	-			-
Investments in joint ventures	-			(22,500		)
Net cash used in investing activities	(850,000		)	(22,500		)

Cash Flows from Financing Activities
Proceeds from sale of common stock	-			-
Proceeds from sale of Series A preferred stock	-			130,000
Payments of preferred dividends	(74,994		)	(2,968		)
Payment of contribution to joint venture note payable	-			(20,000		)
Payments on acquisition note payable	(40,000		)	-
Proceeds from notes payable	-			-
Payments on note payables	(20,332		)	(21,855		)

Net cash provided by financing activities	(135,326		)	85,177

Effect of foreign currency translation	(30,305		)	-

Net Change in Cash	(2,037,600.00		)	(479,783		)
Cash, Beginning of Period	6,701,122.00			1,710,318

Cash, End of Period	4,663,522.00			$	1,230,535

Cash Paid For:
Income Taxes	$	-		$	-
Interest	$	18,836		$	2,400

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