LM Funding America, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results
- Fourth quarter and full-year 2024 total revenue of $2.0 million and $11.0 million, respectively.
- Fourth quarter and full-year 2024 CORE EBITDA of $3.3 million and $3.9 million, respectively.
- Held 165.8 Bitcoin on February 28, 2025 valued at approximately $14.4 million, as of March 26, 2025
TAMPA, Fla., March 31, 2025 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) ("LM Funding" or the "Company"), a Bitcoin mining and technology-based specialty finance company, today reported financial results for the three months and full year ended December 31, 2024.
Q4'24 Financial Highlights
All variances are compared with prior year unless stated otherwise:
-- Mined 21.7 Bitcoin at an average price of approximately $83,000,
generating total revenue of approximately $2.0 million. The
year-over-year decrease in revenue primarily reflects the effects of the
April 2024 Bitcoin Halving event and the transition of miners from
storage into the new Oklahoma mining site.
-- Net income attributable to LM Funding shareholders was approximately $2.0
million compared with a net loss of approximately $1.6 million. The
improvement in the net income was primarily driven by the new ASU Bitcoin
standards that require mark-to-market valuation adjustment for our
Bitcoin holdings.
-- Core EBITDA was approximately $3.3 million compared with $0.3 million1.
The improvements in Core EBITDA were primarily due to gains on the fair
value of Bitcoin in addition to lower digital mining costs and reduced
compensation.
-- At year end, cash was approximately $3.4 million. Digital assets were
$14.0 million based on 150.2 Bitcoin held at a price of approximately
$93,000 as of December 31, 2024.
-- Net book value of equity was approximately $35.3 million as of December
31, 2024 or $7.21 per share2.
-- As of February 28, 2025, held 165.8 Bitcoin valued at approximately $14.4
million as of March 26, 2025 (based on Bitcoin price of approximately
$87,000) or Bitcoin per share of $2.813.
________________________
(1 Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net income can be found below.)
(2,3 Based on shares outstanding of 5,133,412 as of December 31, 2024.)
Q4'24 Operational Highlights
-- 15 MW site acquisition: The Company further executed its transition from
an infrastructure-light strategy, mining at hosted facilities, to a fully
vertically integrated strategy with low-cost electricity underpinning its
operations. In addition to the low-cost energy, the strategy allows
controlled uptime, which LM Funding believes will lead to more efficient
mining and higher margins.
-- Mining fleet upgrade: In Q1 2025, the Company partnered with Luxor
Technology Corporation to install their proprietary LuxOS firmware on its
existing fleet, which could potentially boost the Company's mining
efficiency by 10-15%. This upgrade allows LM Funding to mine Bitcoin at a
higher profitability without any additional capex investment.
CEO Commentary
Bruce Rodgers, Chairman and CEO of LM Funding, commented, "Using the halving as our pivot point of opportunity, we transitioned from an infrastructure-light hosted mining strategy to a vertically integrated model--one where we manage the infrastructure ourselves, ensuring better margins and mitigating risks associated with third-party hosting arrangements. With our Oklahoma facility, we secured low-cost power for our miners and now we own and totally control our mining infrastructure and costs. This vertical integration significantly reduces our fleet-wide energy costs and improves our operations for enhanced uptime and mining efficiency. Looking forward, our strong balance sheet and lean operations position us to grow our mining revenue by seeking to acquire new mining sites with similar size, prices, and terms."
CFO Commentary
Richard Russell, CFO of LM Funding, stated, "Throughout our expansion last year, we remained disciplined in our spending. By actively maintaining a low-cost structure - from power sourcing and infrastructure investments to staffing and equipment - we were able to successfully navigate a challenging year for the industry and our first Bitcoin Halving event, which occurred in April 2024. This strategic cost control enabled us to achieve profitability in 2024 on a Core EBITDA basis, as well as grow our Bitcoin treasury, which is a significant piece of our long-term strategy. By retaining a portion of our Bitcoin mined, we not only capture potential upside for shareholders but also deepen our alignment with the broader Bitcoin industry."
Full Year 2024 Financial Highlights
All variances are compared with prior year unless stated otherwise:
-- Mined 170.6 Bitcoin at an average price of approximately $61,000,
generating total revenue of approximately $11.0 million. The
year-over-year decrease in revenue primarily reflects the effects of the
April 2024 Bitcoin halving event.
-- Net loss attributable to LM Funding shareholders for the year ended
December 31, 2024, was approximately $7.3 million compared with a net
loss of approximately $15.9 million in 2023.
-- Core EBITDA income for the twelve months ended December 31, 2024 was
approximately $3.9 million, compared with a Core EBITDA loss of $0.2
million in 2023. The improvements in Core EBITDA were primarily due to
gains on the fair value of Bitcoin in addition to lower digital mining
costs and reduced compensation.
Investor Conference Call
LM Funding will host a conference call today, March 31, 2025, at 8:00 A.M. Eastern Time to discuss the Company's financial results for the quarter and full year ended December 31, 2024, as well as the Company's corporate progress and other developments. A copy of this earnings release and investor presentation are available on the Company's Investor Relations website at https://www.lmfunding.com/investors.
Conference Call Details
-- Date: March 31, 2025
-- Time: 8:00 AM EST
-- Participant Call Links:
-- Live Webcast: Link
-- Participant Call Registration: Link
About LM Funding America
LM Funding America, Inc. (Nasdaq: LMFA), operates as a Bitcoin mining and specialty finance company. The company was founded in 2008 and is based in Tampa, Florida. For more information, please visit https://www.lmfunding.com.
Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company's most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, the risks of operating in the cryptocurrency mining business, our limited operating history in the cryptocurrency mining business and our ability to grow that business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, our ability to identify and acquire additional mining sites, the ability to finance our site acquisitions and cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, changes in governmental regulations that affect our ability to collected sufficient amounts on defaulted consumer receivables, changes in the credit or capital markets, changes in interest rates, and negative press regarding the debt collection industry. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations.
For investor and media inquiries, please contact:
Investor Relations
Orange Group
Yujia Zhai
lmfundingIR@orangegroupadvisors.com
LM Funding America, Inc. and Subsidiaries Consolidated
Balance Sheets (unaudited)
December 31, December 31,
2024 2023
Assets
Cash $ 3,378,152 $ 2,401,831
Digital assets - current (Note 4) 9,021,927 3,416,256
Finance receivables 21,051 19,221
Marketable securities (Note 7) 27,050 17,860
Receivable from sale of Symbiont
assets (Note 7) 200,000 200,000
Prepaid expenses and other assets 827,237 4,067,212
Income tax receivable 31,187 31,187
Current assets 13,506,604 10,153,567
Fixed assets, net (Note 5) 18,376,948 24,519,610
Intangible assets, net (Note 5) 5,478,958 -
Deposits on mining equipment (Note
6) 467,172 20,837
Notes receivable from Seastar
Medical Holding Corporation (Note
7) - 1,440,498
Long-term investments - equity
securities (Note 7) 4,255 156,992
Investment in Seastar Medical
Holding Corporation (Note 7) 200,790 1,145,486
Digital assets - long-term (Note 4) 5,000,000 -
Operating lease - right of use
assets (Note 9) 938,641 189,009
Other assets 73,857 86,798
Long-term assets 30,540,621 27,559,230
Total assets $ 44,047,225 $ 37,712,797
=========== ===========
Liabilities and stockholders'
equity
Accounts payable and accrued
expenses 989,563 2,064,909
Note payable - short-term (Note 8) 386,312 567,586
Due to related parties (Note 11) 15,944 22,845
Current portion of lease liability
(Note 9) 170,967 110,384
Total current liabilities 1,562,786 2,765,724
Note payable - long-term (Note 8) 6,365,345 -
Lease liability - net of current
portion (Note 9) 776,535 85,775
Long-term liabilities 7,141,880 85,775
Total liabilities 8,704,666 2,851,499
Stockholders' equity (Note 12)
Preferred stock, par value $.001;
150,000,000 shares authorized; no
shares issued and outstanding as
of December 31, 2024 and December
31, 2023 - -
Common stock, par value $.001;
350,000,000 shares authorized;
5,133,412 shares issued and
outstanding as of December 31,
2024 and 2,492,964 as of December
31, 2023 4,602 2,493
Additional paid-in capital 102,685,470 95,145,376
Accumulated deficit (65,662,731) (58,961,461)
Total LM Funding America
stockholders' equity 37,027,341 36,186,408
Non-controlling interest (1,684,782) (1,325,110)
Total stockholders' equity 35,342,559 34,861,298
Total liabilities and
stockholders' equity $ 44,047,225 $ 37,712,797
=========== ===========
LM Funding America, Inc. and Subsidiaries Consolidated
Statements of Operations (unaudited)
Three Months Ended
December 31, Years Ended December 31,
-------------------------- ------------------------------
2024 2023 2024 2023
Revenues:
Digital mining
revenues $ 1,814,169 $ 3,946,485 $ 10,432,605 $ 12,289,131
Specialty
finance
revenue 140,377 75,901 443,599 550,445
Rental revenue 30,678 33,028 123,444 144,514
Total revenues 1,985,224 4,055,414 10,999,648 12,984,090
---------- ---------- ----------- -----------
Operating costs and
expenses:
Digital mining
cost of
revenues
(exclusive of
depreciation
and
amortization
shown below) 1,248,083 2,668,770 6,990,856 9,406,940
Staff costs and
payroll 907,883 1,121,796 4,556,781 5,858,736
Depreciation and
amortization 658,757 1,495,614 7,774,161 4,983,480
Gain on fair
value of
Bitcoin, net (4,254,031) (383,497) (7,350,805) -
Impairment loss
on mining
equipment 191,317 261,191 1,379,375 -
Impairment loss
on mined
digital assets - 280,278 - 965,967
Realized gain on
sale of mined
digital assets - (999,717) - (2,070,508)
Professional
fees 434,251 634,535 2,057,165 1,863,038
Selling, general
and
administrative 234,366 168,632 817,041 851,806
Real estate
management and
disposal 70,483 19,105 159,913 146,716
Collection costs 4,647 12,342 41,043 29,875
Settlement costs
with
associations - - - 10,000
Loss on disposal
of assets 81,594 9,389 136,100 9,389
Other operating
costs 232,168 542,105 899,569 999,959
-----------
Total operating
costs and
expenses (190,482) 5,830,543 17,461,199 23,055,398
---------- ---------- ----------- -----------
Operating
income
(loss) 2,175,706 (1,775,129) (6,461,551) (10,071,308)
Unrealized gain
on marketable
securities 8,206 7,134 9,190 13,570
Impairment loss
on prepaid
machine
deposits - - (12,941) (36,691)
Impairment loss
on prepaid
hosting
deposits - (184,236) - (184,236)
Unrealized loss
on investment
and equity
securities (244,809) 546,563 (1,097,433) (9,771,050)
Impairment loss
on Symbiont
assets - - - (750,678)
Gain on fair
value of
purchased
Bitcoin, net (18,729) - 39,197 -
Credit loss on
Seastar note
receivable - 22,344 - -
Realized gain on
securities - 2,632 - 4,420
Realized gain on
sale of
purchased
digital assets - - - 1,917
Gain on
adjustment of
note receivable
allowance - - - 1,052,542
Other income -
coupon sales - - 4,490 639,472
Other income -
financing
revenue - - - 37,660
Interest expense (211,946) - (443,700) -
Interest income 182,620 38,705 307,316 249,586
Income (loss) before
income taxes 1,891,048 (1,341,987) (7,655,432) (18,814,796)
Income tax expense - (60,571) - (60,571)
Net income (loss) $ 1,891,048 $(1,402,558) $ (7,655,432) $(18,875,367)
Less: loss
attributable to
non-controlling
interest 74,760 (189,208) 340,056 2,931,113
Net income (loss)
attributable to LM
Funding America
Inc. $ 1,965,808 $(1,591,766) $ (7,315,376) $(15,944,254)
Less: deemed
dividends (Note
12) (5,090,619) - (6,794,924) -
Net loss
attributable to
common
shareholders $(3,124,811) $(1,591,766) $(14,110,300) $(15,944,254)
========== ========== =========== ===========
Basic loss per
common share (Note
1) $ (0.86) $ (0.67) $ (5.02) $ (6.98)
Diluted loss per
common share (Note
1) $ (0.86) $ (0.67) $ (5.02) $ (6.98)
Weighted average
number of common
shares outstanding
Basic 3,650,624 2,362,964 2,808,064 2,283,836
Diluted 3,650,624 2,362,964 2,808,064 2,283,836
LM Funding America, Inc. and Subsidiaries Consolidated
Statements of Cash Flows (unaudited)
Years Ended December 31,
------------------------------
2024 2023
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $ (7,655,432) $(18,875,367)
Adjustments to reconcile net loss
to net cash used in operating
activities
Depreciation and amortization 7,774,161 4,983,480
Noncash lease expense 109,842 98,536
Amortization of debt issue costs 35,435 -
Stock compensation 76,322 1,095,705
Stock option expense 443,220 1,843,731
Professional fees paid in common
shares 100,001 -
Accrued investment income (197,104) (159,692)
Digital assets other income (4,490) -
Gain on fair value of Bitcoin,
net (7,390,002) -
Impairment loss on mining
machines 1,379,375 -
Impairment loss on digital
assets - 965,967
Impairment loss on mining
machine deposits 12,941 36,691
Impairment loss on hosting
deposits - 184,236
Impairment loss on Symbiont
assets - 750,678
Unrealized gain on marketable
securities (9,190) (13,570)
Realized gain on securities - (4,420)
Unrealized loss on investment
and equity securities 1,097,433 9,771,050
Loss on disposal of fixed assets 136,100 9,389
Allowance for loss on debt
security - -
Proceeds from securities - 744,036
Realized gain on sale of digital
assets - (2,072,425)
Reversal of allowance loss on
debt security - (1,052,542)
Investments in marketable
securities - (739,616)
Change in operating assets and
liabilities:
Prepaid expenses and other
assets 3,781,133 189,407
Hosting deposits (12,941) (36,691)
Repayments to related party (6,901) (52,643)
Accounts payable and accrued
expenses (1,075,346) 177,478
Mining of digital assets (10,432,605) (12,289,131)
Proceeds from sale of digital
assets -- 10,874,701
Lease liability payments (108,131) (95,948)
Income tax receivable -- 262,279
Net cash used in operating
activities (11,946,179) (3,404,681)
----------- -----------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Net collections of finance
receivables - original product 1,059 (6,428)
Net collections of finance
receivables - special product (2,889) 14,009
Capital expenditures (1,732,472) (1,625,284)
Proceeds from sale of fixed
assets 78,806 -
Acquisition of Tech
Infrastructure JV I LLC assets (3,642,870) -
Investment in note receivable (3,587,195) (125,000)
Collection of note receivable - 2,651,943
Collection of note receivable -
related party 1,449,066 -
Investment in digital assets (485,500) (35,157)
Proceeds from sale of digital
assets 8,309,104 27,815
Proceeds from the sale of tether 11,928 -
Symbiont asset acquisition - 1,800,000
Financing activities for
Symbiont asset acquisition - (402,361)
Distribution to members (19,616) -
Net cash provided by investing
activities 379,421 2,299,537
----------- -----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from borrowings 6,329,910 -
Insurance financing repayments (709,491) (624,481)
Exercise of warrants 4,748,971
Exercise of options 25,000 -
Proceeds from equity offering 2,148,689 -
Issue costs for the issuance of
common stock -- (106,550)
Net cash provided by (used in)
financing activities 12,543,079 (731,031)
----------- -----------
NET INCREASE (DECREASE) IN CASH $ 976,321 $ (1,836,175)
=========== ===========
CASH - BEGINNING OF PERIOD 2,401,831 4,238,006
CASH - END OF PERIOD $ 3,378,152 $ 2,401,831
NON-GAAP CORE EBITDA RECONCILIATION
Our reported results are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We also disclose Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA") and Core Earnings before Interest, Tax, Depreciation and Amortization ("Core EBITDA") which adjusts for unrealized loss on investment and equity securities, impairment loss on mined digital assets, impairment of long-lived assets, impairment of prepaid hosting deposits, contract termination costs and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners.
The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:
Three Months Ended
December 31, Years Ended December 31,
------------------------ -----------------------------
2024 2023 2024 2023
Net loss $1,891,048 $(1,402,558) $(7,655,432) $(18,875,367)
Income tax
expense - 60,571 - 60,571
Interest
expense 211,946 - 443,700 -
Depreciation
and
amortization 658,757 1,495,614 7,774,161 4,983,480
--------- ---------- ---------- -----------
Income (loss) before
interest, taxes &
depreciation $2,761,751 $ 153,627 $ 562,429 $(13,831,316)
Unrealized loss
on investment
and equity
securities 244,809 (546,563) 1,097,433 9,771,050
Gain on
adjustment of
note
receivable
allowance - - - (1,052,542)
Impairment loss
on mined
digital
assets - 143,317 - 965,967
Impairment loss
on prepaid
machine
deposits 12,941 - 12,941 36,691
Impairment loss
on prepaid
hosting
deposits - 184,236 - 184,236
Costs
associated
with
At-the-Market
Equity
program - - 119,050 -
Contract
termination
costs - - 250,001 -
Impairment loss
on Symbiont
assets - - - 750,678
Impairment loss
on mining
equipment 191,317 - 1,379,375 -
Stock
compensation
and option
expense 110,805 410,584 519,542 2,939,436
Core income (loss)
before interest,
taxes &
depreciation $3,321,623 $ 345,201 $ 3,940,771 $ (235,800)
========= ========== ========== ===========
(END) Dow Jones Newswires
March 31, 2025 07:00 ET (11:00 GMT)
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