Onar Holding Corporation (OTCQB: ONAR), a leading marketing technology company and network of marketing agencies, today released its annual shareholder letter from CEO Claude Zdanow. The letter provides a comprehensive overview of the company's performance in 2024, strategic initiatives, and outlook for the future.
In the letter, Zdanow highlights financial performance, new strategic partnerships, and expansion into new markets. He also addresses the launch of the Company’s internal innovation hub, ONAR Labs, which is developing and testing cutting-edge solutions in AI, machine learning, and advanced analytics.
"Looking forward, we are optimistic about ONAR’s prospects and the significant opportunities ahead," writes Zdanow. "We will continue to pursue strategic acquisitions, innovative partnerships, and technological advancements, all designed to drive long-term sustainable growth and maximize shareholder value."
Key Highlights from the Letter
- Financial Performance: Achieved a reduction of approximately $250,000 in our Cost of Revenues year-over-year, underscoring our ongoing commitment to efficiency and profitability, and our total assets reached approximately $2.45 million—an increase of $1M year-over-year from 2023.
- Strategic Partnerships: Strengthened our competitive advantage through a notable alliance with iQSTEL, Inc. (OTCQX: IQST), aimed at mutual market expansion and technology collaboration.
- Operational Excellence: Storia secured significant client expansions, including a substantial six-figure increase in annual marketing spend from a major industrial client, while Of Kos achieved a remarkable Net Operating Income to Sales ratio of approximately 44%.
- Enhanced Staffing: Expanded ONAR’s workforce substantially, with 60% of our employees now operating across five continents, enhancing ONAR’s ability to serve global clients with local market expertise.
- Technological Innovation: Launched ONAR Labs, our dedicated innovation hub focused on pioneering next-generation marketing technologies to support our subsidiaries and clients with transformative tools and technologies.
- Future Developments: Plans to complete a strategic acquisition in H1 2025, subject to due diligence and regulatory approval, and began the establishment of an independent Board of Directors in the first quarter of 2025.
Get the Full Picture in ONAR’s Complete Shareholder Update
Dear Shareholders,
As we close another fiscal year, I am proud to report that ONAR Holding Corporation has made substantial progress across key strategic, operational, and financial dimensions. Guided by our vision to build a globally recognized, technology-driven marketing powerhouse, 2024 was a transformative year marked by significant milestones and performance.
Financial Performance
In 2024, ONAR delivered strong financial results that demonstrated the growth of the Company and its subsidiaries. This growth, driven by both organic initiatives and the reverse merger, reflects the successful execution of our long-term business strategy. Additionally, our operational discipline reduced approximately $250,000 in our Cost of Revenues year-over-year, underscoring our ongoing commitment to efficiency and profitability. However, ONAR did end the year with a net loss, driven largely by the costs associated with the reverse merger and the transformation of the business post merger. Despite operating with a working capital deficit, our proactive debt restructuring and capital raising efforts are strategically focused on enhancing liquidity and fueling planned acquisitions to drive growth through our roll-up strategy.
As of year-end 2024, our total assets reached approximately $2.45 million—an increase of $1M year-over-year from 2023—including a robust $967,000 in current assets, highlighting the tangible value and operational resources of the Company.
The successful issuance of approximately $2.1 million in notes payable during 2024, many of which are currently being converted to equity, underscores investor confidence in our growth initiatives and our ability to access capital markets. Management expects further conversion of its roughly $2.1 million in long-term notes payable secured to fund ONAR’s reverse merger in 2024, which further strengthens the Balance Sheet. ONAR management is in active conversations with existing and new investors regarding the Company’s next financing behind an acquisition being finalized and expected to close in Q2 of 2025.
Strategic Acquisitions and Partnerships
A cornerstone of our growth strategy is identifying and integrating high-potential acquisitions. In February 2025, we announced our intention to acquire a leading marketing technology company, which will merge with our subsidiary, Storia. This strategic acquisition is projected to double Storia’s current revenues and significantly enhance EBITDA margins through combined synergies, technology, and client relationships. We anticipate completing this transaction in H1 2025, subject to due diligence and regulatory approval.
We also strengthened our competitive advantage through strategic partnerships, including a notable alliance with iQSTEL, Inc. (OTCQX: IQST), aimed at mutual market expansion and technology collaboration. Such partnerships position ONAR uniquely within a rapidly evolving digital landscape, allowing us to deliver integrated, AI-driven marketing solutions at scale.
Operational Excellence and Global Reach
With the costs associated with becoming a public company now behind us, our consistent recurring revenue streams, generated through integrated marketing solutions and strategic partnerships, underpin our sustainable financial performance. ONAR’s subsidiaries continue to outperform, each reinforcing our reputation for excellence in their respective markets:
- Storia, our performance marketing subsidiary, secured significant client expansions, including a substantial six-figure increase in annual marketing spend from a major industrial client. Storia’s data-driven approach continues to deliver measurable results and improved ROI, affirming its position as an essential growth engine for ONAR.
- Our healthcare-focused marketing agency, Of Kos (formerly known as VMED Services), achieved a remarkable Net Operating Income to Sales ratio of approximately 44%, demonstrating exceptional operational efficiency and industry-leading profitability. This positions Of Kos prominently in the highly competitive healthcare marketing sector.
Globally, we expanded our workforce substantially, with 60% of our employees now operating across five continents. This international footprint enhances our ability to serve global clients with local market expertise, ensuring culturally relevant, impactful campaigns worldwide.
Additionally, our disciplined approach to cost management and operational improvements resulted in an 11% reduction in the cost of goods sold in 2024 compared to the previous year.
ONAR Labs: Innovation and Thought Leadership
In 2024, we proudly introduced ONAR Labs, our dedicated innovation hub focused on pioneering next-generation marketing technologies. ONAR Labs is our internal think tank, developing and testing cutting-edge AI, machine learning, and advanced analytics solutions. Its mission is to drive thought leadership, accelerate innovation, and support our subsidiaries and clients by deploying transformative tools and technologies. Early results from ONAR Labs initiatives have shown promising outcomes in predictive analytics, enhanced customer targeting, and increased operational efficiencies, further solidifying our competitive edge.
Diversified Service Offerings
Our diversified service portfolio delivers comprehensive solutions across Technology & Innovation (by ONAR Labs), Performance Digital Marketing (led by Storia), Healthcare Marketing (through Of Kos), and Experiential Marketing (via CHALK), strategically positioning us across multiple dynamic sectors.
Technology and Innovation
The successful completion of strategic acquisitions, including the reverse merger with HLDCO, LLC and its subsidiary Integrum Group LLC (now ONAR, LLC), significantly broadened Reliant Holdings’—and thereby ONAR Holding Corporation's—marketing technology capabilities. As a result, investments in technology remain fundamental to ONAR’s strategy. We continue to leverage AI and data analytics to optimize campaign performance, enhance customer targeting, and improve operational efficiencies. Our ongoing commitment to technological innovation ensures that ONAR remains at the forefront of the consistently progressing marketing landscape, driving client and shareholder value.
Sustainable Growth and Value Creation
ONAR’s platform for value creation is engineered to drive continuous operational improvements and scale our subsidiaries through a centralized corporate team, enhancing both efficiency and profitability. Our strategic focus on the middle-market segment offers substantial growth potential for ONAR by avoiding direct competition with larger multinational conglomerates in this underserved market. And with targeted mergers and acquisitions at the heart of our growth strategy, we are actively expanding our capabilities and market presence. This is powered by our experienced executive management team dedicated to purposeful expansion, operational excellence, and the integration of technological advancements across the organization.
Our corporate vision provides a clear long-term roadmap, prioritizing sustainable development, technological innovation, and operational optimization. This includes a commitment to leveraging the power of AI and advanced analytics to enhance our competitive edge and create new opportunities.
Our status as a public company also provides enhanced access to capital markets, a key advantage that will facilitate accelerated growth and enable us to pursue acquisitions at favorable multiples, ultimately aiming to deliver strong potential returns for our shareholders.
Strengthening Corporate Governance
In alignment with our commitment to best practices in corporate governance, we started the process to establish an independent Board of Directors in the first quarter of 2025. This board will provide strategic oversight, ensure accountability, and guide our growth ambitions, including our aspiration to achieve a Nasdaq listing.
Outlook for the Future
Our contract backlog stood at approximately $154,000 as of December 31, 2024, offering clear revenue visibility and stability for the year ahead. Looking forward, we are optimistic about ONAR’s prospects and the significant opportunities ahead. Our goal is clear: surpassing $100 million in annual revenue, enhancing profitability, and positioning ONAR prominently in the public markets.
ONAR is a leading marketing technology company and agency network, providing scalable solutions and strategic partnerships for growth-stage and middle-market companies. We will continue to pursue strategic acquisitions, innovative partnerships, and technological advancements, all designed to drive long-term sustainable growth and maximize shareholder value.
In closing, I would like to thank our employees for their unwavering dedication, our clients for their continued trust, and you, our shareholders, for your steadfast support. Together, we are building a vibrant, resilient, and future-ready organization.
Warm regards,
Claude Zdanow
About ONAR
ONAR (OTCQB: ONAR) a leading marketing technology company and marketing agency network, now publicly traded as Onar Holding Corporation. ONAR's mission is to provide unparalleled service through an integrated, AI-driven approach, leveraging its diverse brand family's strengths. Committed to honor, candor, and best-in-class results, ONAR aims to lead the industry by example, ensuring every client relationship is deeply rooted in trust and excellence.
ONAR has nearly 50 employees across five continents, and it is aggressively expanding its team to support the company’s growth and acquisition pipeline. Its agencies service over 45 clients across various industries:
- Performance Marketing & SEO: Our high-touch performance marketing agency, Storia, specializes in brand growth, data-driven excellence, and paid advertising.
- Full-Service Healthcare Marketing: Partnering with healthcare professionals, Of Kos provides the best possible patient experience and strives to revolutionize the standard of care.
- Experiential Marketing & Events: CHALK is an experiential marketing powerhouse of event architects who turn bold ideas into unforgettable reality, designing events that dare to defy the ordinary.
- Pioneering Technology Incubator: ONAR Labs is a team of data scientists, engineers, and industry experts who are identifying, developing, and commercializing innovative marketing technology solutions born from servicing our agency clients, battle-tested by our network to ensure real-world applicability and impact.
ONAR’s network of agencies focuses on servicing companies ranging from $50M to $1B+ in revenue, and ONAR is actively searching for agencies to acquire and become part of the network.
