International Land Alliance Reports $3.05 Million Net Income for Fiscal Year 2024

International Land Alliance, Inc. (ILAL) reported a significant financial turnaround for the fiscal year ending December 31, 2024, achieving a net income of $3.05 million compared to a net loss of $2.07 million in the previous year. This improvement was driven by a 15% increase in revenues, which rose to $8.09 million from $7.06 million in 2023. The company's gross profit also saw a notable increase, reaching $6.85 million, up from $6.13 million the prior year. The cost of revenue increased to $1.24 million, reflecting higher land and infrastructure costs associated with ongoing projects.

The company’s operational expenses decreased significantly, dropping to $2.73 million from $4.36 million in 2023. This reduction was primarily attributed to lower sales and marketing expenses, which fell to $866,607 from $1.22 million, as well as a decrease in general and administrative expenses. The company reported a substantial decrease in other expenses, which fell to $1.07 million from $3.85 million, largely due to a favorable change in the fair value of derivative liabilities and reduced interest expenses.

Strategically, ILAL completed the acquisition of the remaining 75% interest in Rancho Costa Verde Development, LLC (RCVD) for $13.5 million in January 2023, transitioning it from an equity-method investment to a wholly owned subsidiary. This acquisition is expected to enhance the company’s portfolio, which includes several residential and commercial projects in Baja California and Southern California. The company is actively marketing its properties to potential buyers in the U.S., Canada, and Europe, leveraging partnerships to enhance its marketing efforts.

As of December 31, 2024, ILAL reported total assets of $30.68 million, with liabilities amounting to $15.62 million, resulting in stockholders' equity of $14.45 million. The company’s cash position was $26,120, down from $140,247 in the previous year, indicating ongoing liquidity challenges. The working capital deficit stood at $11.6 million, raising concerns about the company’s ability to continue as a going concern without securing additional financing.

Looking ahead, ILAL anticipates generating increased revenues through the sale of residential plots and house construction. However, the company acknowledges that its future performance is contingent on successful marketing efforts and the overall demand for vacation homes in Mexico. Management is actively seeking additional capital to support its operations and development projects, which may involve equity or debt financing. The company remains optimistic about its growth potential, particularly as the real estate market in Baja California continues to recover and attract buyers.