LM Funding America, Inc. Reports Fourth Quarter And Full Year 2024 Financial Results

2025-03-31 07:16:09

(MENAFN- GlobeNewsWire - Nasdaq) - 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 .

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 .

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 . 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
...


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	)

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