Mined 91.7 Bitcoins in the First Quarter of
2023 at an Average Market Revenue Value of $22,800 per Bitcoin
Reports Working Capital of $4.6 Million and LM Funding Stockholders' Equity
of $44.0 Million
($3.36 per share) as of March 31, 2023
Conference Call to Be Held Today at
11:00 am ET
TAMPA,
Fla., May 15, 2023 /PRNewswire/ -- 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 quarter
ended March 31, 2023.
Operational Highlights
- Approximately 3,700 Bitcoin mining machines in
operation as of March 31, 2023.
- Approximately 5,000 Bitcoin mining machines
operating today providing approximately 520 PH/s of mining capacity
after adding 1,300 machines in April, 2023.
- Signed an agreement with GIGA Energy May
8, 2023, adding 1,080 additional machines for an approximate
total of 627 PH/s by May 31,
2023.
Bruce Rodgers, Chairman and CEO
of LM Funding, commented, "We are pleased with the strides LM
Funding has taken during the first quarter of 2023 as we continue
to steadily transition our Company towards Bitcoin
mining. We started the year with approximately 2,700 fully
operational mining machines and added approximately 2,300 more
during the first four months of 2023, bringing our total to
approximately 5,000 machines, with a mining capacity of around 520
PH/s, actively mining Bitcoin today. Throughout the
quarter, we mined nearly 91.7 Bitcoins at an average value of about
$22,800 per Bitcoin,
compared to the current price of Bitcoin, which has
been ranging between $27,000 and
$30,000 over the past two
months."
"We continue to strategically acquire additional mining
machines, and since the conclusion of the first quarter, have
acquired 101 S19 XP machines through a Bitmain raffle, costing
$0.3 million. Our goal is to continue
to acquire and energize more energy efficient mining machines in
the forthcoming quarters as we approach the next
Bitcoin halving, anticipated to occur sometime in
2024."
Richard Russell, Chief Financial
Officer of LM Funding commented, "In addition to our revenue
growth, our balance sheet remains solid. As of March 31, 2023, we had $3.4 million in cash, approximately 84 Bitcoins
valued at $1.8 million or
$21,400 per Bitcoin,
working capital of $4.6 million, and
LM Funding stockholders' equity of $44.0
million, or $3.36 per share.
In light of our strong capital position, we have confidence in our
ability to deliver on our growth strategy, which we believe will
generate significant value for our shareholders in the long
term."
Financial Highlights
- Total revenue for the quarter ended March 31, 2023, was approximately $2.3 million, an increase of $2.1 million, or more than 1,100%, from
$0.2 million for the 2022 first
quarter. The increase was primarily due to digital mining revenue
of $2.1 million in connection with
the commencement of our Bitcoin mining operations in
September 2022 compared to no digital
mining revenue in the same quarter last year.
- Net loss attributable to LM Funding shareholders for the first
quarter ended March 31, 2023, was
approximately $5.4 million, which
included a $5.8 million non-cash,
unrealized loss on investment and equity securities, compared to a
net loss of approximately $5.8
million for the first quarter of 2022, which included a
$1.0 million unrealized loss on
investment and equity securities.
- Core EBITDA loss for the quarter ended March 31, 2023, improved to a loss of
$(0.3 million), compared to Core
EBITDA loss of $(1.7 million) in the
2022 comparable quarter, primarily due to our successful digital
strategy. Core EBITDA is a non-GAAP financial measure, and a
reconciliation of Core EBITDA to net loss is set forth below in
this press release.
- Cash of approximately $3.4
million, digital assets of $1.8
million, and working capital of $4.6
million as of March 31,
2023.
- Total LM Funding stockholders' equity of $44.0 million and net equity per share of
$3.36 as of March 31, 2023. (Calculated as LMFA stockholders'
equity divided by 13,091,883 shares outstanding as of March 31, 2023)
Investor Conference Call
LM Funding will host a conference call today, May 15, 2023, at 11:00
A.M. Eastern Time to discuss the Company's financial results
for the first quarter ended March 31,
2023, as well as the Company's corporate progress and other
developments.
The conference call will be available via telephone by dialing
toll-free +1 877-545-0523 for U.S. callers or +1 973-528-0016 for
international callers and entering access code 621273. A webcast of
the call may be accessed at
https://www.webcaster4.com/Webcast/Page/2917/48367 or on the
investor relations section of the Company's website,
https://ir.lmfunding.com/.
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
May 15, 2024. A telephone replay of
the call will be available approximately one hour following the
call, through May 29, 2023, 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
48367.
About LM Funding America
LM Funding America, Inc. (Nasdaq: LMFA), together with its
subsidiaries, is 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 guaranties 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 COVID-19 pandemic, the risks of entering
into and 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 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.
Contact:
Crescendo Communications, LLC
Tel: (212) 671-1020
Email: LMFA@crescendo-ir.com
LM Funding America,
Inc. and Subsidiaries Consolidated Balance Sheets
(unaudited)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
Cash
|
|
$
3,428,906
|
|
$
4,238,006
|
Digital Assets (Note
2)
|
|
1,751,914
|
|
888,026
|
Finance
receivables
|
|
22,107
|
|
26,802
|
Marketable securities
(Note 5)
|
|
10,080
|
|
4,290
|
Notes receivable from
Seastar Medical Holding Corporation (Note 5)
|
|
-
|
|
3,807,749
|
Prepaid expenses and
other assets
|
|
1,196,849
|
|
1,233,322
|
Income tax
receivable
|
|
293,466
|
|
293,466
|
Current
assets
|
|
6,703,322
|
|
10,491,661
|
|
|
|
|
|
Fixed assets, net (Note
3)
|
|
26,708,914
|
|
27,192,317
|
Deposits on mining
equipment (Note 4)
|
|
1,357,341
|
|
525,219
|
Hosting services
deposit (Note 4)
|
|
2,200,452
|
|
2,200,452
|
Real estate assets
owned
|
|
80,057
|
|
80,057
|
Long-term investments -
debt security (Note 5)
|
|
2,402,542
|
|
2,402,542
|
Less: Allowance for
losses on debt security (Note 5)
|
|
(1,052,542)
|
|
(1,052,542)
|
Long-term investments -
debt security, net (Note 5)
|
|
1,350,000
|
|
1,350,000
|
Long-term investments -
equity securities (Note 5)
|
|
437,924
|
|
464,778
|
Investment in Seastar
Medical Holding Corporation (Note 5)
|
|
4,812,750
|
|
10,608,750
|
Notes receivable from
Seastar Medical Holding Corporation (Note 5)
|
|
2,216,649
|
|
-
|
Operating lease - right
of use assets (Note 8)
|
|
264,321
|
|
265,658
|
Other assets
|
|
10,726
|
|
10,726
|
Long-term
assets
|
|
39,439,134
|
|
42,697,957
|
Total assets
|
|
$
46,142,456
|
|
$
53,189,618
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
1,682,392
|
|
1,570,906
|
Note payable -
short-term (Note 6)
|
|
298,382
|
|
475,775
|
Due to related parties
(Note 7)
|
|
62,829
|
|
75,488
|
Current portion of
lease liability (Note 8)
|
|
99,569
|
|
90,823
|
Total current
liabilities
|
|
2,143,172
|
|
2,212,992
|
|
|
|
|
|
Lease liability - net
of current portion (Note 8)
|
|
170,295
|
|
179,397
|
Long-term
liabilities
|
|
170,295
|
|
179,397
|
Total
liabilities
|
|
2,313,467
|
|
2,392,389
|
|
|
|
|
|
Stockholders' equity
(Note 9)
|
|
|
|
|
Preferred stock, par
value $.001; 150,000,000 shares authorized; no shares issued and
outstanding as of March 31, 2023 and December 31, 2022
|
|
-
|
|
-
|
Common stock, par value
$.001; 350,000,000 shares authorized; 13,091,883 shares issued and
outstanding as of March 31, 2023 and December 31, 2022
|
|
13,092
|
|
13,092
|
Additional paid-in
capital
|
|
92,389,697
|
|
92,195,341
|
Accumulated
deficit
|
|
(48,403,539)
|
|
(43,017,207)
|
Total LM Funding
America stockholders' equity
|
|
43,999,250
|
|
49,191,226
|
Non-controlling interest
|
|
(170,261)
|
|
1,606,003
|
Total stockholders'
equity
|
|
43,828,989
|
|
50,797,229
|
Total liabilities and
stockholders' equity
|
|
$
46,142,456
|
|
$
53,189,618
|
LM Funding America,
Inc. and Subsidiaries Consolidated Statements of Operations
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
|
Digital mining
revenues
|
|
$
2,090,851
|
|
$
-
|
Specialty finance
revenue
|
|
182,836
|
|
152,132
|
Rental
revenue
|
|
39,831
|
|
38,872
|
Total
revenues
|
|
2,313,518
|
|
191,004
|
Operating costs and
expenses:
|
|
|
|
|
Digital mining cost of
revenues (exclusive of depreciation and amortization shown
below)
|
|
1,667,673
|
|
-
|
Staff costs &
payroll
|
|
932,835
|
|
4,292,197
|
Professional
fees
|
|
572,356
|
|
774,820
|
Settlement costs with
associations
|
|
-
|
|
160
|
Selling, general and
administrative
|
|
239,464
|
|
114,920
|
Real estate management
and disposal
|
|
31,803
|
|
31,481
|
Depreciation and
amortization
|
|
801,873
|
|
3,094
|
Collection
costs
|
|
9,808
|
|
(3,820)
|
Impairment loss on
mined digital assets
|
|
199,554
|
|
-
|
Realized gain on sale
of mined digital assets
|
|
(424,333)
|
|
-
|
Other operating
costs
|
|
251,911
|
|
8,384
|
Total operating costs
and expenses
|
|
4,282,944
|
|
5,221,236
|
Operating
loss
|
|
(1,969,426)
|
|
(5,030,232)
|
Realized loss on
securities
|
|
-
|
|
(395,181)
|
Unrealized gain on
convertible debt security
|
|
-
|
|
288,320
|
Unrealized gain on
marketable securities
|
|
5,790
|
|
130
|
Impairment loss on
prepaid mining machine deposits
|
|
(36,691)
|
|
-
|
Unrealized loss on
investment and equity securities
|
|
(5,822,854)
|
|
(986,399)
|
Realized gain on sale
of purchased digital assets
|
|
1,917
|
|
-
|
Digital assets other
income
|
|
-
|
|
4,366
|
Other income - coupon
sales
|
|
603,591
|
|
-
|
Dividend
income
|
|
-
|
|
1,375
|
Interest
income
|
|
55,077
|
|
98,370
|
Loss before income
taxes
|
|
$
(7,162,596)
|
|
$
(6,019,251)
|
Income tax
expense
|
|
-
|
|
-
|
Net loss
|
|
$
(7,162,596)
|
|
$
(6,019,251)
|
Less: Net loss
attributable to non-controlling interest
|
|
1,776,264
|
|
291,200
|
Net loss attributable
to LM Funding America Inc.
|
|
$
(5,386,332)
|
|
$
(5,728,051)
|
|
|
|
|
|
Basic loss per common
share
|
|
$
(0.41)
|
|
$
(0.44)
|
|
|
|
|
|
Diluted loss per common
share
|
|
$
(0.41)
|
|
$
(0.44)
|
Weighted average number
of common shares outstanding
|
|
|
|
|
Basic
|
|
13,091,883
|
|
13,060,736
|
Diluted
|
|
13,091,883
|
|
13,060,736
|
LM Funding America,
Inc. and Subsidiaries Consolidated Statements of Cash Flows
(unaudited)
|
|
|
|
Three Months ended
March 31,
|
|
|
2023
|
|
2022
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net loss
|
|
$
(7,162,596)
|
|
$
(6,019,251)
|
Adjustments to
reconcile net loss to cash used in operating
activities
|
|
|
|
|
Depreciation and
amortization
|
|
801,873
|
|
3,094
|
Noncash lease
expense
|
|
23,224
|
|
23,343
|
Stock
compensation
|
|
-
|
|
329,500
|
Stock option
expense
|
|
194,356
|
|
3,318,737
|
Accrued investment
income
|
|
(53,734)
|
|
(96,657)
|
Digital assets other
income
|
|
-
|
|
(4,366)
|
Impairment loss on
digital assets
|
|
199,554
|
|
-
|
Impairment loss on
prepaid mining machine deposits
|
|
36,691
|
|
-
|
Unrealized gain on
convertible debt security
|
|
-
|
|
(288,320)
|
Unrealized gain on
marketable securities
|
|
(5,790)
|
|
(130)
|
Unrealized loss on
investment and equity securities
|
|
5,822,854
|
|
986,399
|
Realized loss on
securities
|
|
-
|
|
395,181
|
Realized gain on sale
of digital assets
|
|
(426,250)
|
|
-
|
Proceeds from
securities
|
|
-
|
|
1,428,050
|
Change in operating
assets and liabilities:
|
|
|
|
|
Prepaid expenses and
other assets
|
|
36,473
|
|
280,208
|
Advances (repayments)
to related party
|
|
(12,659)
|
|
252,580
|
Accounts payable and
accrued expenses
|
|
111,486
|
|
(136,430)
|
Stablecoin
|
|
-
|
|
(500,000)
|
Mining of digital
assets
|
|
(2,090,851)
|
|
-
|
Proceeds from sale of
digital assets
|
|
1,455,141
|
|
-
|
Lease liability
payments
|
|
(22,243)
|
|
(30,242)
|
Deferred taxes and
taxes payable
|
|
-
|
|
(326,178)
|
Income taxes
receivable
|
|
-
|
|
(143,822)
|
Net cash used in
operating activities
|
|
(1,092,471)
|
|
(528,304)
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Net collections of
finance receivables - original product
|
|
-
|
|
(6,550)
|
Net collections of
finance receivables - special product
|
|
4,695
|
|
(1,948)
|
Capital
expenditures
|
|
(263,596)
|
|
-
|
Investment in note
receivable
|
|
-
|
|
(310,000)
|
Collection of note
receivable
|
|
1,644,834
|
|
|
Investment in digital
assets
|
|
(35,157)
|
|
-
|
Proceeds from sale of
purchased digital assets
|
|
33,675
|
|
-
|
Deposits for mining
equipment
|
|
(923,687)
|
|
(7,118,572)
|
Net cash provided by
(used in) investing activities
|
|
460,764
|
|
(7,437,070)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Insurance financing
repayments
|
|
(178,620)
|
|
(57,344)
|
Insurance
financing
|
|
1,227
|
|
-
|
Net cash used in
financing activities
|
|
(177,393)
|
|
(57,344)
|
NET DECREASE IN
CASH
|
|
(809,100)
|
|
(8,022,718)
|
CASH - BEGINNING OF
YEAR
|
|
4,238,006
|
|
32,559,185
|
CASH - END OF
YEAR
|
|
$
3,428,906
|
|
$
24,536,467
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES OF NON-CASH INVESTING AND FINANCING
ACTIVITIES
|
|
|
|
|
ROU assets and
operating lease obligation recognized
|
|
$
21,887
|
|
$
300,787
|
Reclassification of
mining equipment deposit to fixed assets, net
|
|
$
54,874
|
|
$
-
|
SUPPLEMENTAL
DISCLOSURES OF CASHFLOW INFORMATION
|
|
|
|
|
Cash paid for
taxes
|
|
$
-
|
|
$
470,000
|
NON-GAAP FINANCIAL INFORMATION
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, unrealized gain on convertible
debt securities 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
March 31,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
Net loss
|
|
$
(7,162,596)
|
|
$
(6,019,251)
|
Income tax
expense
|
|
-
|
|
-
|
Interest
expense
|
|
-
|
|
-
|
Depreciation and
amortization
|
|
801,873
|
|
3,094
|
Loss before interest,
taxes & depreciation
|
|
$
(6,360,723)
|
|
$
(6,016,157)
|
Unrealized loss on
investment and equity securities
|
|
5,822,854
|
|
986,399
|
Unrealized gain on
convertible debt securities
|
|
-
|
|
(288,320)
|
Stock compensation and
option expense
|
|
194,356
|
|
3,648,237
|
Core loss before
interest, taxes & depreciation
|
|
$
(343,513)
|
|
$
(1,669,841)
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lm-funding-america-inc-achieves-over-1-100-year-over-year-revenue-growth-to-2-1-million-for-the-first-quarter-of-2023--301824167.html
SOURCE LM Funding America