LM Funding America, Inc. Reports Financial Results and Provides Business Update for the Third Quarter of 2024
LM Funding America 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. Revenue decreased to $1.3 million from $3.4 million year-over-year, primarily due to the April 2024 Bitcoin halving event. The company mined 18.5 Bitcoins in Q3 2024, generating approximately $1.1 million in revenue at an average Bitcoin price of $60,870. The net loss was $4.8 million compared to $4.7 million in Q3 2023. The company implemented a vertical integration strategy focusing on low-cost power sources and appointed Ryan Duran as president of US Digital Mining and Hosting Co
LM Funding America ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando 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 sono diminuiti a 1,3 milioni di dollari rispetto ai 3,4 milioni di dollari dell'anno precedente, principalmente a causa dell'evento di halving di Bitcoin avvenuto ad aprile 2024. L'azienda ha estratto 18,5 Bitcoin nel Q3 2024, generando circa 1,1 milioni di dollari di entrate a un prezzo medio di Bitcoin di 60.870 dollari. La perdita netta è stata di 4,8 milioni di dollari rispetto ai 4,7 milioni di dollari nel Q3 2023. L'azienda ha implementato una strategia di integrazione verticale concentrandosi su fonti di energia a basso costo e ha nominato Ryan Duran come presidente della US Digital Mining and Hosting Co.
LM Funding America informó los resultados financieros del tercer trimestre de 2024, destacando sus operaciones de minería de criptomonedas. La empresa poseía 142,3 Bitcoin valorados en 12,4 millones de dólares a partir del 30 de septiembre de 2024. Los ingresos disminuyeron a 1,3 millones de dólares desde 3,4 millones de dólares en comparación con el año anterior, principalmente debido al evento de halving de Bitcoin en abril de 2024. La empresa minó 18,5 Bitcoins en el tercer trimestre de 2024, generando aproximadamente 1,1 millones de dólares en ingresos a un precio promedio de Bitcoin de 60.870 dólares. La pérdida neta fue de 4,8 millones de dólares en comparación con 4,7 millones de dólares en el tercer trimestre de 2023. La empresa implementó una estrategia de integración vertical centrándose en fuentes de energía de bajo costo y nombró a Ryan Duran como presidente de US Digital Mining and Hosting Co.
LM Funding America는 2024년 3분기 재무 결과를 보고하며 암호화폐 채굴 사업을 강조했습니다. 이 회사는 2024년 9월 30일 현재 1240만 달러로 평가된 142.3 비트코인을 보유하고 있었습니다. 수익은 전년 대비 340만 달러에서 130만 달러로 감소했으며, 이는 주로 2024년 4월 비트코인 반감기 이벤트 때문입니다. 이 회사는 2024년 3분기에 18.5 비트코인을 채굴하여 평균 비트코인 가격 60,870 달러로 약 110만 달러의 수익을 창출했습니다. 순손실은 2023년 3분기 470만 달러와 비교하여 480만 달러였습니다. 이 회사는 저비용 전력원을 중심으로 수직 통합 전략을 구현했으며 Ryan Duran을 미국 디지털 채굴 및 호스팅 회사의 사장으로 임명했습니다.
LM Funding America a rapporté les résultats financiers du troisième trimestre 2024, mettant en avant ses opérations de minage de cryptomonnaies. L'entreprise détenait 142,3 Bitcoin d'une valeur de 12,4 millions de dollars au 30 septembre 2024. Les revenus ont diminué à 1,3 million de dollars contre 3,4 millions de dollars l'année précédente, principalement en raison de l'événement de halving de Bitcoin survenu en avril 2024. L'entreprise a miné 18,5 Bitcoins au troisième trimestre 2024, générant environ 1,1 million de dollars de revenus à un prix moyen de Bitcoin de 60 870 dollars. La perte nette était de 4,8 millions de dollars par rapport à 4,7 millions de dollars au troisième trimestre 2023. L'entreprise a mis en œuvre une stratégie d'intégration verticale axée sur des sources d'énergie à faible coût et a nommé Ryan Duran président de la US Digital Mining and Hosting Co.
LM Funding America hat die finanziellen Ergebnisse des dritten Quartals 2024 vorgestellt und dabei seine Kryptowährungs-Mining-Operationen hervorgehoben. Das Unternehmen hielt zum 30. September 2024 142,3 Bitcoin im Wert von 12,4 Millionen Dollar. Der Umsatz sank im Jahresvergleich von 3,4 Millionen Dollar auf 1,3 Millionen Dollar, hauptsächlich aufgrund des Bitcoin-Halving-Ereignisses im April 2024. Das Unternehmen hat im Q3 2024 18,5 Bitcoin abgebaut, was bei einem durchschnittlichen Bitcoin-Preis von 60.870 Dollar etwa 1,1 Millionen Dollar Umsatz generierte. Der Nettoverlust betrug 4,8 Millionen Dollar im Vergleich zu 4,7 Millionen Dollar im Q3 2023. Das Unternehmen hat eine Vertical-Integration-Strategie umgesetzt, die sich auf kostengünstige Energiequellen konzentriert, und Ryan Duran zum Präsidenten der US Digital Mining and Hosting Co. ernannt.
- Bitcoin holdings valued at $12.4 million based on recent price of $87,000
- Improved digital mining cost efficiency compared to previous year
- Secured lower-cost power sources ($0.3-0.5 cents per MW)
- Positive Core EBITDA of $0.6 million for nine months of 2024
- Strong liquidity with $14.9 million in cash and Bitcoin
- Revenue decreased by $2.1 million to $1.3 million in Q3 2024
- Net loss increased to $6.4 million including deemed dividends
- Core EBITDA loss of $1.6 million in Q3 2024 vs $0.6 million in Q3 2023
- Reduced Bitcoin mining volume due to halving event
- Digital mining revenue declined to $1.1 million from $3.3 million YoY
Insights
Q3 2024 results reveal significant challenges in LMFA's mining operations. Digital mining revenue dropped sharply to
The company's vertical integration strategy and focus on low-cost power (
The company's Bitcoin holdings of 142.3 BTC represent significant exposure to crypto market volatility. While current BTC prices around
The improved cost metrics in digital mining operations relative to revenue are encouraging, but total mining revenue decline indicates challenges in maintaining competitive advantage. The company's bet on BTC reaching
Conference Call to Be Held Today at 11:00 am ET
TAMPA, Fla., Nov. 13, 2024 (GLOBE NEWSWIRE) -- 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) | 3,308,428 | 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 | 10,625,440 | 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) | 5,675,372 | - | ||||||
| Operating lease - right of use assets (Note 7) | 109,380 | 189,009 | ||||||
| Other assets | 73,857 | 86,798 | ||||||
| Long-term assets | 25,910,427 | 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
How many Bitcoins did LMFA mine in Q3 2024?
What was LMFA's Bitcoin holdings value as of September 30, 2024?
What was LMFA's Q3 2024 revenue and net loss?
What strategic changes did LMFA implement after the April 2024 halving event?
