Family Office of America Reports Increased Operating Expenses and Net Loss in Q1 2025

Family Office of America, Inc. (formerly Qualis Innovations, Inc.) reported its financial results for the first quarter of 2025, revealing a significant increase in operating expenses and a net loss compared to the same period in 2024. The company recorded no revenue for the three months ended March 31, 2025, consistent with the previous year. Operating expenses surged to $103,321, up from $16,160 in the first quarter of 2024, primarily due to increased consulting fees and professional services as the company reorganizes its administrative infrastructure to support anticipated sales growth. The net loss for the quarter was $103,321, compared to a loss of $16,160 in the prior year.

As of March 31, 2025, Family Office of America reported total assets of $570,468, a substantial increase from $20,581 at the end of 2024. This growth was largely attributed to a significant rise in cash holdings, which reached $565,222, compared to just $13,586 at the end of the previous fiscal year. The company’s liabilities also increased, totaling $49,654, primarily due to accounts payable and accrued expenses. The stockholders' equity improved to $520,814, a notable recovery from a deficit of $23,440 at the end of 2024.

In terms of strategic developments, the company initiated a Regulation D offering on January 15, 2025, to sell up to 6,000,000 common shares at $0.10 per share. By the end of April 2025, Family Office had successfully sold 6,250,000 shares, raising $625,000. Additionally, the company granted 1,500,000 warrants to its Acting CEO and Director of Acquisitions, valued at $72,575, as part of its compensation strategy. These warrants are exercisable for five years at $0.10 per share.

Family Office of America is focused on expanding its operations within the CPA industry, which is projected to be worth $147.5 billion in 2023. The company aims to acquire CPA firms and provide comprehensive family office services, including wealth management and tax planning. The management has expressed confidence in the viability of its business strategy, although it acknowledges the need for additional capital to support ongoing operations and growth initiatives. The company’s accumulated deficit stood at $4,634,113 as of March 31, 2025, raising concerns about its ability to continue as a going concern without further financing.

Looking ahead, Family Office of America plans to continue its efforts to expand operations and generate revenue, although it faces significant challenges due to its current lack of operational history and the need for additional funding. The management is actively exploring options for raising capital, including potential public offerings or asset sales, to ensure the company can sustain its operations and implement its business plan effectively.