International Land Alliance Reports 89% Revenue Decline and Net Loss in Q1 2025

International Land Alliance, Inc. reported a significant decline in financial performance for the first quarter of 2025, with net revenues of $548,624, a decrease of approximately 89% from $5,088,874 in the same period of 2024. The company also recorded a net loss of $958,806, compared to a net income of $3,650,150 in the prior year. This downturn is attributed to reduced sales activity and a lack of collections from house construction at the Plaza Bajamar project, which had previously contributed to revenue.

The company's operating expenses rose to $1,112,103 for the three months ended March 31, 2025, up from $652,059 in the same period last year. This increase was primarily driven by a substantial rise in general and administrative expenses, which climbed to $924,593, largely due to increased stock-based compensation. In contrast, sales and marketing expenses saw a slight decrease, reflecting reduced marketing efforts as the company focused on raising additional capital.

In terms of operational developments, International Land Alliance continues to manage several real estate projects, including the Oasis Park Resort and Rancho Costa Verde Development (RCVD). The company completed the acquisition of the remaining 75% interest in RCVD in January 2023, which is now a wholly owned subsidiary. This acquisition was financed through a combination of a secured convertible promissory note, common stock, and warrants, totaling approximately $13.5 million. The company has also been actively working on marketing initiatives to attract potential home buyers across various regions.

As of March 31, 2025, the company reported total assets of $30.76 million, slightly up from $30.68 million at the end of 2024. However, the current liabilities exceeded current assets by approximately $11.6 million, raising concerns about the company's liquidity and ability to continue as a going concern. The company is exploring options to raise additional capital through debt and equity financing to support its operations and development projects. Management anticipates that improved market conditions and successful marketing efforts could lead to increased revenues in the coming months, although substantial doubt remains regarding the company's financial stability.