CORRECTION -- LM Funding America, Inc. Reports Financial Results and Provides Business Update for the Third Quarter of 2024
LM Funding America (NASDAQ: LMFA) reported Q3 2024 financial results, highlighting its cryptocurrency mining operations. The company held 142.3 Bitcoin valued at $12.4 million as of September 30, 2024. Digital mining revenue decreased to $1.1 million from $3.3 million year-over-year due to the April halving event and miner repositioning. The company reported a net loss of $4.8 million compared to $4.7 million in Q3 2023. Following the halving event, LMFA implemented a vertical integration strategy focusing on low-cost power locations. The company appointed Ryan Duran as president of US Digital Mining and Hosting Co to optimize operational efficiency.
LM Funding America (NASDAQ: LMFA) ha riportato i risultati finanziari del terzo trimestre 2024, mettendo in evidenza le sue operazioni di mining di criptovalute. L'azienda deteneva 142,3 Bitcoin, valutati 12,4 milioni di dollari al 30 settembre 2024. I ricavi da mining digitale sono diminuiti a 1,1 milioni di dollari rispetto ai 3,3 milioni dell'anno precedente a causa dell'evento di halving di aprile e del riposizionamento dei miner. L'azienda ha registrato una perdita netta di 4,8 milioni di dollari rispetto ai 4,7 milioni del terzo trimestre 2023. A seguito dell'evento di halving, LMFA ha implementato una strategia di integrazione verticale concentrandosi su location a basso costo energetico. L'azienda ha nominato Ryan Duran come presidente della US Digital Mining and Hosting Co per ottimizzare l'efficienza operativa.
LM Funding America (NASDAQ: LMFA) reportó los resultados financieros del tercer trimestre de 2024, destacando sus operaciones de minería de criptomonedas. La compañía tenía 142,3 Bitcoin valorados en 12,4 millones de dólares al 30 de septiembre de 2024. Los ingresos de la minería digital disminuyeron a 1,1 millones de dólares desde 3,3 millones del año anterior debido al evento de halving de abril y al reposicionamiento de los mineros. La compañía reportó una pérdida neta de 4,8 millones de dólares en comparación con los 4,7 millones del tercer trimestre de 2023. Después del evento de halving, LMFA implementó una estrategia de integración vertical centrada en ubicaciones de bajo costo energético. La compañía nombró a Ryan Duran como presidente de US Digital Mining and Hosting Co para optimizar la eficiencia operativa.
LM Funding America (NASDAQ: LMFA)는 2024년 3분기 재무 결과를 발표하며 암호화폐 채굴 활동을 강조하였습니다. 이 회사는 2024년 9월 30일 기준으로 1억 4230만 달러에 해당하는 142.3 비트코인을 보유하고 있었습니다. 디지털 채굴 수익은 1.1 백만 달러로, 작년 같은 기간의 3.3 백만 달러에서 감소하였으며, 이는 4월 반감기 이벤트와 채굴업체의 재배치 때문입니다. 이 회사는 2023년 3분기 470만 달러에 비해 480만 달러의 순손실을 기록했습니다. 반감기 이벤트 이후, LMFA는 저비용 전력 위치를 중심으로 한 수직 통합 전략을 시행했습니다. 이 회사는 운영 효율성을 최적화하기 위해 Ryan Duran을 미국 디지털 채굴 및 호스팅 회장으로 임명했습니다.
LM Funding America (NASDAQ: LMFA) a rapporté les résultats financiers du troisième trimestre 2024, mettant en avant ses opérations de minage de cryptomonnaies. L'entreprise détenait 142,3 Bitcoins d'une valeur de 12,4 millions de dollars au 30 septembre 2024. Les revenus du minage numérique ont chuté à 1,1 million de dollars, contre 3,3 millions l'année précédente, en raison de l'événement de halving d'avril et du repositionnement des mineurs. L'entreprise a enregistré une perte nette de 4,8 millions de dollars par rapport à 4,7 millions de dollars au troisième trimestre 2023. Suite à l'événement de halving, LMFA a mis en œuvre une stratégie d'intégration verticale centrée sur des emplacements à faible coût énergétique. L'entreprise a nommé Ryan Duran président de la US Digital Mining and Hosting Co afin d'optimiser l'efficacité opérationnelle.
LM Funding America (NASDAQ: LMFA) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht und dabei seine Kryptowährungs-Mining-Aktivitäten hervorgehoben. Das Unternehmen hielt am 30. September 2024 142,3 Bitcoin im Wert von 12,4 Millionen Dollar. Der Umsatz aus digitalem Mining sank von 3,3 Millionen Dollar im Vorjahr auf 1,1 Millionen Dollar, was auf das Halving-Ereignis im April und die Neupositionierung der Miner zurückzuführen ist. Das Unternehmen berichtete über einen Nettoverlust von 4,8 Millionen Dollar im Vergleich zu 4,7 Millionen Dollar im dritten Quartal 2023. Nach dem Halving-Ereignis implementierte LMFA eine vertikale Integrationsstrategie, die sich auf Standorte mit niedrigen Energiekosten konzentrierte. Das Unternehmen ernannte Ryan Duran zum Präsidenten von US Digital Mining and Hosting Co, um die betriebliche Effizienz zu optimieren.
- Bitcoin holdings valued at $12.4 million based on recent price of $87,000
- Improved digital mining cost efficiency compared to prior year quarter
- Secured lower-cost power sources ($0.3-0.5 cents per MW)
- Maintained strong liquidity with $14.9 million in cash and Bitcoin
- Digital mining revenue declined 67% to $1.1 million from $3.3 million YoY
- Net loss increased to $6.4 million including $1.7 million in deemed dividends
- Core EBITDA loss widened to $1.6 million from $0.6 million in Q3 2023
- Total revenue decreased by $2.1 million compared to same period last year
Insights
LM Funding's Q3 2024 results reveal significant challenges and strategic shifts. Digital mining revenue dropped to
However, the company's vertical integration strategy and focus on low-cost power sources (
Conference Call to Be Held Today at 11:00 am ET
TAMPA, Fla., Nov. 13, 2024 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by LM Funding America, Inc. (NASDAQ: LMFA), please note that the Balance Sheet table has been updated. The corrected release is as follows:
LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a cryptocurrency mining and technology-based specialty finance company, today provided a business update and reported financial results for the three and nine months ended September 30, 2024.
Financial highlights
- Held 142.3 Bitcoin on September 30, 2024, Valued at Approximately
$12.4 Million Based on Recent Bitcoin Price of$87,000 - Digital mining cost of revenues (exclusive of depreciation and amortization) as a percentage of digital mining revenues showed substantial improvement versus the prior year quarter.
CEO commentary
Bruce Rodgers, Chairman and CEO of LM Funding, remarked, "Following the April halving event, we initiated a vertical integration strategy, focusing on locations with low-cost power and strong expansion potential. We are committed to identifying cost-effective sites that will enable the Company to drive growth and increase shareholder value. Additionally, we are excited to see Bitcoin recently reach an all-time high above
Strategic Developments
- Vertical Integration Strategy: Following the halving event, the Company transitioned from an infrastructure-light approach to a vertical integration strategy. This shift, strategically coordinated with the expiration of hosting contracts, allowed the Company to secure lower-cost power sources (
$0.3 - 0.5 cents per MW) and relocate miners to more cost-effective operations and expansion opportunities. This resulted in substantial improvement in our digital mining cost of revenues (exclusive of depreciation and amortization) as a percentage of digital mining revenues as compared to the prior year quarter. - Leadership Appointment: Ryan Duran has been named president of the Company’s US Digital Mining and Hosting Co LLC, a subsidiary. Duran will play a pivotal role in shaping the strategic direction and optimizing operational efficiency, positioning LM Funding at the forefront of the rapidly evolving cryptocurrency mining industry.
Ryan Duran, President of USDM, stated, "I look forward to driving our vertical integration strategy as we acquire cost-effective sites to lower our operating costs."
Quarterly Operational Highlights – Three Months ended September 30, 2024
- Bitcoin Mining: Mined 18.5 Bitcoins in Q3 2024, generating approximately
$1.1 million in revenue at an average Bitcoin price of$60,870. - Bitcoin Holdings: As of September 30, 2024, the Company held 142.3 Bitcoins valued at approximately
$12.4 million based on a price of$87,000 on November 11, 2024. - Revenue Impact: Total revenue for the third quarter of 2024 was approximately
$1.3 million , a decrease of$2.1 million from the same period last year, primarily due to the anticipated effects of the April 2024 Bitcoin halving event and the transition of our mining machines to a new hosting site. - Net Loss: The net loss for the third quarter was
$4.8 million compared to a net loss of$4.7 million for the comparable quarter in 2023.
Quarterly Financial Highlights - Three Months ended September 30, 2024
- Revenue: Digital mining revenue decreased to
$1.1 million in Q3 2024 from$3.3 million in Q3 2023, despite an increase in Bitcoin prices, due to reduced mined volume arising from the April halving event and the repositioning of miners during the quarter. - Operating Expenses: Operating expenses decreased to
$5.7 million from$6.6 million year-on-year, due primarily to a decrease in digital mining costs in Bitcoin fair value offset in part by an increase in depreciation and amortization costs. Digital mining cost of revenues (exclusive of depreciation and amortization) as a percentage of digital mining revenues showed substantial improvement versus the prior year quarter. - Net Loss: LM Funding reported a net loss attributable to shareholders of approximately
$6.4 million , factoring in$1.7 million of deemed dividends resulting from warrant repricing and a$0.3 million unrealized loss on securities, compared to a$4.4 million loss in the prior year. - Core EBITDA: Core EBITDA loss was
$1.6 million in Q3 2024 from$0.6 million in Q3 2023, although positive Core EBITDA for nine months of 2024 increased to$0.6 million due to expanded Bitcoin operations. (Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net loss can be found below).
CFO commentary
Richard Russell, CFO of LM Funding, stated, "We closed the quarter with approximately
Investor Conference Call
LM Funding will host a conference call today, November 13, 2024, at 11:00 A.M. Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 2024, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 424451. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2917/51557 or on the investor relations section of the company’s website, https://www.lmfunding.com/investors/news-events/ir-calendar.
A webcast replay will be available on the investor relations section of the company’s website at https://www.lmfunding.com/investors/news-events/ir-calendar through November 13, 2025. A telephone replay of the call will be available approximately one hour following the call, through November 27, 2024, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 51557.
About LM Funding America
LM Funding America, Inc., (Nasdaq: LMFA) and its subsidiaries are a cryptocurrency mining business that commenced Bitcoin mining operations in September 2022. The Company also operates a technology-based specialty finance company that provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois, by funding a certain portion of the Associations' rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments.
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, uncertainty created by the risks of operating in the cryptocurrency mining business, uncertainty in the cryptocurrency mining business in general, problems with hosting vendors in the mining business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, the ability to finance our planned cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, the potential need for additional capital in the future, changes in governmental regulations that affect our ability to collect sufficient amounts on defaulted consumer receivables, changes in the credit or capital markets, changes in interest rates, negative press regarding the debt collection industry, and the risk of pandemics such as the COVID-10 pandemic. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations.
Contact:
Crescendo Communications, LLC
Tel: (212) 671-1020
Email: LMFA@crescendo-ir.com
(tables follow) |
LM Funding America, Inc. and Subsidiaries Consolidated Balance Sheets | |||||||||
September 30, | December 31, | ||||||||
2024 (Unaudited) | 2023 | ||||||||
Assets | |||||||||
Cash | $ | 5,913,215 | $ | 2,401,831 | |||||
Digital assets - current (Note 2) | 3,983,800 | 3,416,256 | |||||||
Finance receivables | 25,410 | 19,221 | |||||||
Marketable securities (Note 5) | 18,844 | 17,860 | |||||||
Receivable from sale of Symbiont assets (Note 5) | 200,000 | 200,000 | |||||||
Current portion of notes receivable from Tech Infrastructure JV I LLC (Note 5) | 711,840 | - | |||||||
Prepaid expenses and other assets | 416,516 | 4,067,212 | |||||||
Income tax receivable | 31,187 | 31,187 | |||||||
Current assets | 11,300,812 | 10,153,567 | |||||||
Fixed assets, net (Note 3) | 17,311,254 | 24,519,610 | |||||||
Deposits on mining equipment (Note 4) | 20,847 | 20,837 | |||||||
Notes receivable from Seastar Medical Holding Corporation (Note 5) | - | 1,440,498 | |||||||
Notes receivable from Tech Infrastructure JV I LLC - net of current portion (Note 5) | 2,269,863 | - | |||||||
Long-term investments - equity securities (Note 5) | 8,944 | 156,992 | |||||||
Investment in Seastar Medical Holding Corporation (Note 5) | 440,910 | 1,145,486 | |||||||
Digital assets - long-term (Note 2) | 5,000,000 | - | |||||||
Operating lease - right of use assets (Note 7) | 109,380 | 189,009 | |||||||
Other assets | 73,857 | 86,798 | |||||||
Long-term assets | 25,235,055 | 27,559,230 | |||||||
Total assets | $ | 36,535,867 | $ | 37,712,797 | |||||
Liabilities and stockholders' equity | |||||||||
Accounts payable and accrued expenses | 1,400,228 | 2,064,909 | |||||||
Note payable - short-term (Note 6) | 1,520,564 | 567,586 | |||||||
Due to related parties (Note 10) | 64,386 | 22,845 | |||||||
Current portion of lease liability (Note 7) | 109,931 | 110,384 | |||||||
Total current liabilities | 3,095,109 | 2,765,724 | |||||||
Note payable - long-term (Note 6) | 4,844,084 | - | |||||||
Lease liability - net of current portion (Note 7) | 4,924 | 85,775 | |||||||
Long-term liabilities | 4,849,008 | 85,775 | |||||||
Total liabilities | 7,944,117 | 2,851,499 | |||||||
Stockholders' equity (Note 8) | |||||||||
Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of September 30, 2024 and December 31, 2023 | - | - | |||||||
Common stock, par value $.001; 350,000,000 shares authorized; 2,956,042 shares issued and outstanding as of September 30, 2024 and 2,492,964 as of December 31, 2023 | 2,822 | 2,493 | |||||||
Additional paid-in capital | 97,827,489 | 95,145,376 | |||||||
Accumulated deficit | (67,628,539 | ) | (58,961,461 | ) | |||||
Total LM Funding America stockholders' equity | 30,201,772 | 36,186,408 | |||||||
Non-controlling interest | (1,610,022 | ) | (1,325,110 | ) | |||||
Total stockholders' equity | 28,591,750 | 34,861,298 | |||||||
Total liabilities and stockholders' equity | $ | 36,535,867 | $ | 37,712,797 | |||||
LM Funding America, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenues: | ||||||||||||||||
Digital mining revenues | $ | 1,127,455 | $ | 3,283,473 | $ | 8,618,436 | $ | 8,342,646 | ||||||||
Specialty finance revenue | 97,558 | 101,535 | 303,222 | 474,544 | ||||||||||||
Rental revenue | 30,460 | 34,500 | 92,766 | 111,486 | ||||||||||||
Total revenues | 1,255,473 | 3,419,508 | 9,014,424 | 8,928,676 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||
Digital mining cost of revenues (exclusive of depreciation and amortization shown below) | 730,716 | 2,708,473 | 5,742,773 | 6,737,971 | ||||||||||||
Staff costs and payroll | 1,567,984 | 1,340,665 | 3,648,898 | 4,736,940 | ||||||||||||
Depreciation and amortization | 2,349,634 | 1,516,873 | 7,115,404 | 3,487,866 | ||||||||||||
Gain on fair value of Bitcoin, net | (104,744 | ) | - | (3,096,774 | ) | - | ||||||||||
Impairment loss on mining equipment | - | - | 1,188,058 | - | ||||||||||||
Impairment loss on mined digital assets | - | 383,497 | - | 822,650 | ||||||||||||
Realized gain on sale of mined digital assets | - | (261,191 | ) | - | (1,331,982 | ) | ||||||||||
Professional fees | 628,686 | 419,173 | 1,622,914 | 1,228,503 | ||||||||||||
Selling, general and administrative | 209,088 | 201,151 | 582,675 | 683,174 | ||||||||||||
Real estate management and disposal | 31,144 | 26,453 | 89,430 | 127,611 | ||||||||||||
Collection costs | 15,054 | 8,098 | 36,396 | 17,533 | ||||||||||||
Specialty finance revenue | ||||||||||||||||
Settlement costs with associations | - | - | - | 10,000 | ||||||||||||
Loss on disposal of assets | 12,449 | - | 54,506 | |||||||||||||
Other operating costs | 229,784 | 246,735 | 667,401 | 704,589 | ||||||||||||
Total operating costs and expenses | 5,669,795 | 6,589,927 | 17,651,681 | 17,224,855 | ||||||||||||
Operating loss | (4,414,322 | ) | (3,170,419 | ) | (8,637,257 | ) | (8,296,179 | ) | ||||||||
Unrealized gain (loss) on marketable securities | (3,296 | ) | 2,058 | 984 | 6,436 | |||||||||||
Impairment loss on prepaid machine deposits | (12,941 | ) | - | (12,941 | ) | (36,691 | ) | |||||||||
Unrealized loss on investment and equity securities | (346,866 | ) | (778,078 | ) | (852,624 | ) | (10,317,613 | ) | ||||||||
Impairment loss on Symbiont assets | - | (750,678 | ) | - | (750,678 | ) | ||||||||||
Gain on fair value of purchased Bitcoin, net | - | - | 57,926 | - | ||||||||||||
Realized gain on securities | 1,788 | 1,788 | ||||||||||||||
Realized gain on sale of purchased digital assets | - | - | - | 1,917 | ||||||||||||
Credit loss on Seastar Medical Holding Corporation notes receivable | - | (22,344 | ) | - | (22,344 | ) | ||||||||||
Gain on adjustment of note receivable allowance | - | - | - | 1,052,543 | ||||||||||||
Other income - coupon sales | - | 10,160 | 4,490 | 639,472 | ||||||||||||
Other income - financing revenue | - | - | - | 37,660 | ||||||||||||
Interest expense | (124,035 | ) | - | (231,754 | ) | - | ||||||||||
Interest income | 98,343 | 39,657 | 124,696 | 210,881 | ||||||||||||
Loss before income taxes | (4,803,117 | ) | (4,667,856 | ) | (9,546,480 | ) | (17,472,808 | ) | ||||||||
Income tax expense | - | - | - | - | ||||||||||||
Net loss | $ | (4,803,117 | ) | $ | (4,667,856 | ) | $ | (9,546,480 | ) | $ | (17,472,808 | ) | ||||
Less: warrant repricing (Note 8) | (1,704,305 | ) | - | (1,704,305 | ) | - | ||||||||||
Less: loss attributable to non-controlling interest | 105,043 | 250,880 | 265,296 | 3,120,321 | ||||||||||||
Net loss attributable to LM Funding America Inc. | $ | (6,402,379 | ) | $ | (4,416,976 | ) | $ | (10,985,489 | ) | $ | (14,352,487 | ) | ||||
Basic loss per common share (Note 1) | $ | (2.41 | ) | $ | (1.97 | ) | $ | (4.35 | ) | $ | (6.51 | ) | ||||
Diluted loss per common share (Note 1) | $ | (2.41 | ) | $ | (1.97 | ) | $ | (4.35 | ) | $ | (6.51 | ) | ||||
Weighted average number of common shares outstanding | ||||||||||||||||
Basic | 2,659,974 | 2,246,745 | 2,525,160 | 2,206,187 | ||||||||||||
Diluted | 2,659,974 | 2,246,745 | 2,525,160 | 2,206,187 | ||||||||||||
LM Funding America, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Nine Months Ended September 30, | ||||||||
2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (9,546,480 | ) | $ | (17,472,808 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
Depreciation and amortization | 7,115,404 | 3,487,866 | ||||||
Noncash lease expense | 79,629 | 70,545 | ||||||
Stock compensation | 76,322 | 917,057 | ||||||
Stock option expense | 332,415 | 1,611,795 | ||||||
Professional fees paid in common shares | 100,001 | - | ||||||
Accrued investment income | (123,076 | ) | (130,990 | ) | ||||
Digital assets other income | (4,490 | ) | - | |||||
Gain on fair value of Bitcoin, net | (3,154,700 | ) | - | |||||
Impairment loss on mining machines | 1,188,058 | - | ||||||
Impairment loss on digital assets | - | 822,650 | ||||||
Impairment loss on hosting deposits | 12,941 | 36,691 | ||||||
Impairment loss on Symbiont assets | - | 750,678 | ||||||
Unrealized gain on marketable securities | (984 | ) | (6,436 | ) | ||||
Realized gain on securities | - | (1,788 | ) | |||||
Unrealized loss on investment and equity securities | 852,624 | 10,317,613 | ||||||
Loss on disposal of fixed assets | 54,506 | - | ||||||
Proceeds from securities | - | 554,036 | ||||||
Realized gain on sale of digital assets | - | (1,333,899 | ) | |||||
Credit loss on Seastar Medical Holding Corporation notes receivable | - | 22,344 | ||||||
Reversal of allowance loss on debt security | - | (1,052,543 | ) | |||||
Investments in marketable securities | - | (739,616 | ) | |||||
Change in operating assets and liabilities: | ||||||||
Prepaid expenses and other assets | 3,650,696 | (123,221 | ) | |||||
Hosting deposits | - | (54,691 | ) | |||||
Advances (repayments) to related party | 41,541 | (31,090 | ) | |||||
Accounts payable and accrued expenses | (664,681 | ) | 682,405 | |||||
Mining of digital assets | (8,618,436 | ) | (8,352,805 | ) | ||||
Proceeds from sale of digital assets | - | 7,487,058 | ||||||
Lease liability payments | (81,304 | ) | (70,563 | ) | ||||
Net cash used in operating activities | (8,690,014 | ) | (2,609,712 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Net collections of finance receivables - original product | (4,618 | ) | (8,765 | ) | ||||
Net collections of finance receivables - special product | (1,571 | ) | 14,009 | |||||
Capital expenditures | (1,228,428 | ) | (1,913,303 | ) | ||||
Proceeds from sale of fixed assets | 78,806 | - | ||||||
Investment in Tech Infrastructure JV I LLC note receivable | (2,867,195 | ) | - | |||||
Investment in note receivable | - | (100,000 | ) | |||||
Collection of notes receivable | 1,449,066 | 1,761,727 | ||||||
Investment in digital assets | - | (35,157 | ) | |||||
Proceeds from sale of digital assets | 6,821,185 | 43,678 | ||||||
Proceeds from the sale of tether | 3,003 | - | ||||||
Symbiont asset acquisition | - | (402,359 | ) | |||||
Distribution to members | (19,616 | ) | - | |||||
Net cash from (used in) investing activities | 4,230,632 | (640,170 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from borrowings | 6,344,084 | - | ||||||
Insurance financing repayments | (547,022 | ) | (499,453 | ) | ||||
Insurance financing | - | 86,886 | ||||||
Exercise of options | 25,000 | - | ||||||
Proceeds from equity offering | 2,333,112 | - | ||||||
Issue costs for equity offering | (184,408 | ) | (106,550 | ) | ||||
Net cash from (used in) financing activities | 7,970,766 | (519,117 | ) | |||||
NET DECREASE IN CASH | 3,511,384 | (3,768,999 | ) | |||||
CASH - BEGINNING OF PERIOD | 2,401,831 | 4,238,006 | ||||||
CASH - END OF PERIOD | $ | 5,913,215 | 469,007 | |||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES | ||||||||
ROU assets and operating lease obligation recognized | $ | - | $ | 21,887 | ||||
Reclassification of mining equipment deposit to fixed assets, net | $ | - | $ | 1,177,226 | ||||
Change in accounting principle (see Note 1) | $ | 614,106 | $ | - | ||||
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION | ||||||||
Cash paid for taxes | $ | - | $ | - | ||||
Cash paid for interest | $ | 222,697 | $ | - | ||||
NON-GAAP FINANCIAL INFORMATION (unaudited)
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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
Net loss | $ | (4,803,117 | ) | $ | (4,667,856 | ) | $ | (9,546,480 | ) | $ | (17,472,808 | ) | |||||
Interest expense | 124,035 | - | 231,754 | - | |||||||||||||
Depreciation and amortization | 2,349,634 | 1,516,873 | 7,115,404 | 3,487,866 | |||||||||||||
Income (loss) before interest, taxes & depreciation | $ | (2,329,448 | ) | $ | (3,150,983 | ) | $ | (2,199,322 | ) | $ | (13,984,942 | ) | |||||
Unrealized loss on investment and equity securities | 346,866 | 778,078 | 852,624 | 10,317,613 | |||||||||||||
Gain on adjustment of note receivable allowance | - | - | - | (1,052,543 | ) | ||||||||||||
Impairment loss on mined digital assets | - | 383,497 | - | 822,650 | |||||||||||||
Impairment loss on prepaid hosting deposits | - | - | - | 36,691 | |||||||||||||
Costs associated with At-the-Market Equity program | - | - | 119,050 | - | |||||||||||||
Contract termination costs | 250,001 | - | 250,001 | - | |||||||||||||
Impairment loss on Symbiont assets | - | 750,678 | - | 750,678 | |||||||||||||
Impairment loss on mining equipment | - | - | 1,188,058 | - | |||||||||||||
Stock compensation and option expense | 110,806 | 621,827 | 408,737 | 2,528,852 | |||||||||||||
Core income (loss) before interest, taxes & depreciation | $ | (1,621,775 | ) | $ | (616,903 | ) | $ | 619,148 | $ | (581,001 | ) | ||||||
FAQ
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What was LMFA's net loss in Q3 2024?