OFA Group Reports 254.88% Revenue Increase to $716,885 Despite $8M Net Loss

OFA Group reported a significant increase in revenue for the fiscal year ended March 31, 2026, reaching $716,885, a 254.88% rise from $202,007 in the prior fiscal year. This growth was primarily driven by new design and fit-out contracts, particularly a major commercial project that was substantially completed by the end of the fiscal year. Despite the revenue surge, the company incurred a net loss of $8,022,816 for the year ended March 31, 2026, a substantial increase from the $714,680 net loss reported in the previous year. This widening loss is largely attributable to increased operating expenses, including significant investments in professional services, advertising and marketing, and salaries and wages, reflecting the company's expansion efforts and the establishment of its U.S. headquarters.

The company's financial performance saw substantial changes compared to the previous fiscal period. Cost of revenue increased by 387.79% to $553,040, largely due to higher subcontracting and material costs, which aligned with the increased revenue. Total operating expenses saw a dramatic rise of 954.64% to $8,182,363, driven by a $1,606,981 increase in depreciation and amortization related to new hardware and intangible assets, and a 2,244.06% increase in professional services, primarily for U.S. GAAP and SEC compliance. The company also experienced a significant increase in advertising and marketing expenses, up 2,480.34%, as part of its strategic expansion initiatives following its initial public offering.

Strategic developments for OFA Group during this period included significant advancements in its technology and digital asset initiatives. The company entered into a Co-Development Agreement for the OFA QikBIM system, an AI software for architectural design, and later acquired a 50% co-ownership interest in the related intellectual property for $17.5 million. Furthermore, OFA Group launched its digital asset strategy, including accepting cryptocurrency payments and establishing a digital asset treasury. The company also entered into Real World Asset Tokenization Service Agreements, positioning itself to provide blockchain-based tokenization infrastructure for real estate projects. Geographically, OFA Group initiated expansion into Japan, incorporating new subsidiaries and exploring regional revitalization projects.

Operationally, OFA Group's revenue is heavily influenced by the timing and completion of major projects, as evidenced by the substantial revenue increase in the fiscal year ended March 31, 2026, largely due to a single major commercial project. The company's backlog of ongoing projects stood at $548,692 in expected future revenue as of March 31, 2026. The company's workforce consisted of 11 full-time employees as of March 31, 2026, primarily located in Hong Kong. Looking ahead, OFA Group expects revenue to improve with business environment stabilization and a resumption of construction activities. The company is focused on diversifying its revenue streams through geographic expansion into the U.S. and Asia, sector diversification into healthcare and hospitality, and transitioning its AI tools to a subscription-based model. Management believes its current cash position, IPO proceeds, and access to committed equity financing will be sufficient to meet its working capital needs for the next 12 months.