Financial Performance - For the nine months ended September 30, 2024, the company reported a net loss of $1,909,993, a significant improvement from a net loss of $7,311,359 in the same period of 2023, marking a reduction of approximately 74%[112]. - Revenue for the three months ended September 30, 2024, increased by $698,461, or 53%, totaling $2,011,772 compared to $1,313,311 in Q3 2023, driven by acquisitions[125]. - Total revenue for the nine months ended September 30, 2024, was $5,325,273, a 34% increase from $3,975,088 in the same period of 2023, primarily due to the RevenueZen and DDS Rank acquisitions[131]. - Total revenue for the nine months ended September 30, 2024, was $2,139,831, an increase of $571,242 or 36% compared to the prior year[132]. - The company achieved a quarterly revenue increase of 16.5% quarter-over-quarter in Q3 2024, reflecting ongoing organic growth and operational improvements[113]. Operational Efficiency - The company’s cash used in operations decreased to $696,715 for the nine months ended September 30, 2024, down from $2,160,796 in the same period of 2023, indicating improved operational efficiency[111]. - General and administrative expenses decreased by $58,267, or 4%, during Q3 2024 compared to Q3 2023, primarily due to reduced advertising and marketing costs[127]. - General and Administrative expenses decreased by $408,268, or 9%, mainly due to a reduction in advertising and marketing costs of $332,000[134]. - Professional fees decreased by $248,854, or 29%, due to lower legal and accounting costs associated with compliance requirements[136]. Costs and Margins - Cost of revenue increased by $340,501, or 73%, to $806,097 for the three months ended September 30, 2024, largely due to recent acquisitions[126]. - Cost of revenue increased by $571,242, or 36%, primarily due to a recent acquisition, despite a decrease in digital product sales[132]. - The company’s gross profit margins slightly decreased in the current period compared to the prior period, influenced by increased costs associated with service fulfillment and content creation[126]. Acquisitions and Future Growth - The acquisition of Eastern Standard, completed in October 2024 for $2,160,000, is expected to contribute positively to consolidated results starting Q4 2024[119]. - The company continues to maintain a strong acquisition pipeline and is actively pursuing further accretive acquisitions to enhance growth[115]. - The company incurred $122,266 in acquisition costs during the nine months ended September 30, 2024, down from $285,532 in the prior year[136]. - The company has entered into asset purchase agreements with contingent earn-out payments totaling up to $1,929,000 based on performance criteria[150]. Cash Flow and Financial Position - Net cash used in operating activities was $696,715 for the nine months ended September 30, 2024, a decrease from $2,160,796 in the prior year[140]. - Cash flows provided by financing activities were $480,218 for the nine months ended September 30, 2024, compared to cash used of $269,522 in the prior year[141]. - As of September 30, 2024, cash and cash equivalents totaled $363,244, primarily from capital raised during the IPO[138]. Going Concern - Management has expressed substantial doubt about the company's ability to continue as a going concern due to recurring losses and negative cash flows[139].
Onfolio (ONFO) - 2024 Q3 - Quarterly Report