Forge Innovation Development Corp. reported its financial results for the first quarter of 2025, revealing total revenue of $175,200, a 29% increase from $136,219 in the same period of 2024. This growth was attributed to an increase in the number of rental units leased during March 2025. Despite the rise in revenue, the company incurred a net loss of $222,109, a significant reduction from the net loss of $680,209 reported in the first quarter of 2024. The decrease in losses was primarily due to a reduction in share-based compensation expenses, which fell from $494,028 to zero in the current quarter.
In terms of operational metrics, Forge's total assets decreased slightly to $8.16 million as of March 31, 2025, down from $8.22 million at the end of 2024. Current assets increased to $221,364, driven by higher accounts receivable and prepaid expenses. However, total liabilities also rose to $6.62 million, compared to $6.46 million at the end of the previous year, largely due to increased accounts payable and accrued liabilities. The company's equity decreased to $1.54 million, reflecting an accumulated deficit of $3.88 million.
Strategically, Forge continues to focus on its real estate development initiatives, having acquired a 51% interest in Legend International Investment, LP, which owns the Mission Marketplace shopping center in Jurupa Valley, California. This acquisition, completed in March 2023, was valued at approximately $1.38 million and is expected to enhance the company's portfolio. The company has also established a wholly owned subsidiary, Forge Network Inc., although it has not yet generated income from this venture.
Looking ahead, Forge Innovation Development Corp. faces challenges related to its ongoing financial performance and the need for additional funding to support its operations. The company reported a negative working capital of $1.35 million as of March 31, 2025, compared to $1.17 million at the end of 2024. Management has expressed concerns about the company's ability to continue as a going concern, emphasizing the need to improve profitability and cash flow generation. The company is actively pursuing strategies to address these issues, although there is no assurance that these efforts will be successful.