| LM Funding America Achieves Over 648% Revenue Growth to $13.0 Million for 2023GlobeNewswireApril 01, 2024 Mined 423.4 Bitcoins in 2023 Valued at Approximately $12.3 Million at an Average Market Revenue Value of Approximately $29,000 per Bitcoin Held 153.6 Bitcoin at February 29, 2024, Valued at Approximately $10.8 Million Based on Recent Bitcoin Price of $70,000 Reports Working Capital of Approximately $7.4 Million and LM Funding Stockholders' Equity of $36.2 Million ($14.52 per share) as of December 31, 2023 Conference Call to Be Held Today at 11:00 am ET TAMPA, Fla., April 01, 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 months and full year ended December 31, 2023. Operational Highlights Approximately 5,900 Bitcoin mining machines in operation at hosting sites as of December 31, 2023Mined 423.4 Bitcoin in 2023, which generated approximately $12.3 million in revenue based on the $29,000 average price of Bitcoin in 2023As of December 31, 2023, held 95.1 Bitcoin valued at approximately $3.4 millionAs of February 29, 2024, held 153.6 Bitcoin valued at approximately $10.8 million based on recent Bitcoin price of approximately $70,000Revenue for the three and twelve months ended December 31, 2023, increased approximately 262% and 648%, respectively over the same periods last yearNet loss for the three months ended December 31, 2023, was $1.6 million as compared to $19.7 million for the 2022 comparable quarter.Achieved positive Core EBITDA (defined below) of $345 thousand for the three months ended December 31, 2023, compared to a Core EBITDA loss of $1.7 million for the same period last year. 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.Bruce Rodgers, Chairman and CEO of LM Funding, commented, "We made tremendous progress building our Bitcoin mining operations in 2023, our first full year as a Bitcoin mining company. We are extremely pleased with our results as we mined 423.4 Bitcoins valued at approximately $12.3 million based on the average price of Bitcoin during the year. This success drove an almost 648% increase in the Company's revenue for the year as compared to 2022. In 2023, we adopted an 'Infrastructure Light' strategy, aiming to lessen market risks and fluctuations by concentrating our investments on Bitcoin and mining devices that closely track Bitcoin's value. Additionally, we continue to purchase state-of-the-art mining equipment in anticipation of the upcoming Bitcoin halving, expected to occur in late April or early May of this year. Considering current market conditions and the future outlook for Bitcoin, which recently reached a new all-time high of approximately $73,800, we remain extremely optimistic about the future, as halving events have historically preceded new all-time high Bitcoin prices in the six months post-halving." Richard Russell, Chief Financial Officer of LM Funding, further noted, "We ended the year with cash plus Bitcoin, valued as of December 31, 2023, of approximately $5.8 million. Including the Bitcoin that we mined through the end of February 2024, our reported Bitcoin holdings of 153.6 Bitcoin are valued at approximately $10.8 million based on the recent Bitcoin price of approximately $70,000. Our working capital stood at $7.4 million as of December 31, 2023, and the equity of LM Funding shareholders was $36.2 million, or $14.52 per share. Given the strength of our balance sheet, we have not had the need to sell any of our Bitcoin holdings through February 2024 to fund our operations and we remain highly encouraged and optimistic regarding the financial outlook for both Bitcoin and the business." Financial Highlights Total revenue for the fourth quarter ended December 31, 2023, was approximately $4.1 million, an increase of $2.9 million, or approximately 262%, compared to $1.1 million for the fourth quarter of 2022. Total revenue for the year ended December 31, 2023, was approximately $13.0 million, an increase of $11.3 million, or more than 648%, from $1.7 million in 2022. These increases were primarily due to digital mining revenue of $3.9 million and $12.3 million in the three months and year ended December 31, 2023, compared with $0.9 million of digital mining revenue for both comparable periods in 2022 as the Company commenced our Bitcoin mining operations in September 2022. The average BTC price for the three and twelve months ended December 31, 2023 used for purposes of recognizing as revenue was approximately $36,500 and $29,000, respectively.Net loss attributable to LM Funding shareholders for the three months ended December 31, 2023, was approximately $1.6 million, which included a $0.5 million non-cash, unrealized gain on investment and equity securities, and a $0.8 million impairment on our previously owned Symbiont assets, compared to a net loss of approximately $19.7 million for the 2022 comparable quarter, which included a $6.6 million non-cash, unrealized loss on investment and equity securities and a $1.1 million impairment on our Symbiont assets. Net loss attributable to LM Funding shareholders for the year ended December 31, 2023, was approximately $15.9 million, which included a $9.8 million non-cash, unrealized loss on investment and equity securities, and a $0.8 million impairment on our previously owned Symbiont assets, compared to a net loss of approximately $29.2 million for the year ended December 31, 2022, which included a $4.4 million non-cash, unrealized gain on investment and equity securities, and a $1.1 million impairment on the Symbiont assets.Positive Core EBITDA for the three months ended December 31, 2023, totaled approximately $0.3 million compared to a Core EBITDA loss of $1.7 million in the prior year's comparable quarter. Core EBITDA loss for the twelve months ended December 31, 2023, totaled approximately $0.2 million, compared with Core EBITDA loss of $6.5 million in 2022. The improvements in Core EBITDA for the three and twelve-month periods ended December 31, 2023, were primarily due to the existence of material Bitcoin mining operations in the current year that did not exist in the prior year. 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 was approximately $2.4 million, with digital assets of $3.4 million, and working capital of $7.4 million as of December 31, 2023, based on 95.1 BTC at a price of approximately $36,000 as of December 31, 2023. The current BTC market price has fluctuated between $62,000 and $73,000 in recent weeks. In 2023, the Company also received approximately $2.7 million from SeaStar Medical Holdings as a partial repayment of their outstanding note receivable.Total LM Funding stockholders' equity was approximately $36.2 million, or $14.52 per share, as of December 31, 2023 (with the per-share amount calculated as LMFA stockholders' equity divided by approximately 2,492,964 shares outstanding as of December 31, 2023).Investor Conference Call LM Funding will host a conference call today, April 1, 2024, at 11:00 A.M. Eastern Time to discuss the Company's financial results for the fourth quarter ended December 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 +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 212125. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2917/50187 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 April 1, 2025. A telephone replay of the call will be available approximately one hour following the call, through April 15, 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 50187. 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 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 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, LLCTel: (212) 671-1020Email: LMFA@crescendo-ir.com (tables follow) LM Funding America, Inc. and Subsidiaries Consolidated Balance Sheets (Audited)December 31,December 31,20232022AssetsCash$2,401,831$4,238,006Digital Assets (Note 2)3,416,256888,026Finance receivables19,22126,802Marketable securities (Note 5)17,8604,290Notes receivable from Seastar Medical Holding Corporation (Note 5)-3,807,749Receivable from sale of Symbiont assets200,000-Prepaid expenses and other assets4,067,2121,233,322Income tax receivable31,187293,466Current assets10,153,56710,491,661Fixed assets, net (Note 3)24,519,61027,272,374Deposits on mining equipment (Note 4)20,837525,219Hosting services deposits (Note 4)-2,200,452Notes receivable from Seastar Medical Holding Corporation (Note 5)1,440,498-Long-term investments - debt security (Note 5)-2,402,542Less: Allowance for losses on debt security (Note 5)-(1,052,542)Long-term investments - debt security, net (Note 5)-1,350,000Long-term investments - equity securities (Note 5)156,992464,778Investment in Seastar Medical Holding Corporation (Note 5)1,145,48610,608,750Operating lease - right of use assets (Note 7)189,009265,658Other assets86,79810,726Long-term assets27,559,23042,697,957Total assets$37,712,797$53,189,618Liabilities and stockholders' equityAccounts payable and accrued expenses2,064,9091,570,906Note payable - short-term (Note 6)567,586475,775Due to related parties (Note 9)22,84575,488Current portion of lease liability (Note 7)110,38490,823Total current liabilities2,765,7242,212,992Lease liability - net of current portion (Note 7)85,775179,397Long-term liabilities85,775179,397Total liabilities2,851,4992,392,389Stockholders' equity (Note 10)Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of December 31, 2023 and December 31, 2022--Common stock, par value $.001; 350,000,000 shares authorized; 2,492,964 shares issued and outstanding as of December 31, 2023 and 2,232,964 as of December 31, 20222,4932,233Additional paid-in capital95,145,37692,206,200Accumulated deficit(58,961,461)(43,017,207)Total LM Funding America stockholders' equity36,186,40849,191,226Non-controlling interest(1,325,110)1,606,003Total stockholders' equity34,861,29850,797,229Total liabilities and stockholders' equity$37,712,797$53,189,618LM Funding America, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)Three Months Ended December 31,Years Ended December 31,2023202220232022Revenues:Digital mining revenues$3,946,485$903,403$12,289,131$945,560Specialty finance revenue75,901175,853550,445626,773Rental revenue33,02841,378144,514161,618Total revenues4,055,4141,120,63412,984,0901,733,951Operating costs and expenses:Digital mining cost of revenues (exclusive of depreciation and amortization shown below)2,668,770994,2669,406,9401,033,226Staff costs and payroll1,121,7966,536,2915,858,73619,422,723Professional fees634,535637,4651,863,0383,158,446Settlement costs with associations--10,000160Selling, general and administrative168,632188,749851,806635,268Real estate management and disposal19,10534,012146,716110,465Depreciation and amortization1,495,614434,3024,983,480478,020Collection costs12,342(5,524)29,875(12,213)Impairment loss on mined digital assets143,31778,924965,96779,794Realized gain on sale of mined digital assets(738,526)-(2,070,508)-Other operating costs295,5691,229,749999,9591,504,047Total operating costs and expenses5,821,15410,128,23423,046,00926,409,936Operating loss(1,765,740)(9,007,600)(10,061,919)(24,675,985)Realized gain (loss) on securities2,632-4,420(349,920)Realized gain on convertible debt securities---287,778Unrealized gain (loss) on marketable securities7,134(19,930)13,570(56,830)Impairment loss on prepaid machine deposits-(3,150,000)(36,691)(3,150,000)Impairment loss on prepaid hosting deposits(184,236)(1,790,712)(184,236)(1,790,712)Impairment loss on Symbiont assets-(1,052,542)(750,678)(1,052,542)Unrealized gain (loss) on investment and equity securities546,563(6,610,843)(9,771,050)4,423,985Impairment loss on digital assets-(63,935)-(467,406)Realized gain on sale of purchased digital assets-20,2541,91720,254Loss on disposal of assets(9,389)(38,054)(9,389)(38,054)Digital assets other income--5,658Other income - coupon sales--639,472-Gain on adjustment of note receivable allowance--1,052,542-Other income - finance revenue--37,660-Dividend income---3,875Interest income, net38,705129,731249,586394,678Credit loss22,344---Loss before income taxes(1,341,987)(21,583,631)(18,814,796)(26,445,221)Income tax expense(60,571)(126,388)(60,571)(1,438,066)Net Loss$ (1,402,558)$ (21,710,019)$ (18,875,367)$ (27,883,287)Less: loss (income) attributable to non-controlling interest(189,208)2,016,3852,931,113(1,356,914)Net loss attributable to LM Funding America Inc.$ (1,591,766)$ (19,693,634)$ (15,944,254)$ (29,240,201)Basic loss per common share$(0.67)$(8.82)$(6.98)$(13.10)Diluted loss per common share$(0.67)$(8.82)$(6.98)$(13.10)Weighted average number of common shares outstandingBasic2,362,9642,231,6812,283,8362,231,681Diluted2,362,9642,231,6812,283,8362,231,681LM Funding America, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Audited)Years ended December 31,20232022CASH FLOWS FROM OPERATING ACTIVITIES:Net loss$(18,875,367)$(27,883,287)Adjustments to reconcile net loss to net cash used in operating activitiesDepreciation and amortization4,983,480478,020Noncash lease expense98,53695,098Stock compensation1,095,7051,098,331Stock option expense1,843,73116,571,978Accrued investment income(159,692)(392,412)Accrued recovery of legal fees-(55,364)Impairment loss on digital assets965,967547,200Impairment loss on mining machine deposits36,6913,150,000Impairment loss on hosting deposits184,2361,790,712Impairment loss on Symbiont assets750,678-Unrealized loss (gain) on marketable securities(13,570)56,830Unrealized loss (gain) on investment and equity securities9,771,050(4,423,985)Loss on disposal of fixed assets9,38938,054Realized loss (gain) on securities(4,420)349,920Realized gain on convertible note receivable-(287,778)Realized gain on sale of digital assets(2,072,425)(20,254)Proceeds from securities744,0362,565,893Convertible debt and interest converted into marketable securities-844,882Investments in marketable securities(739,616)(844,882)(Reversal of) allowance loss on debt security(1,052,542)1,052,542Change in operating assets and liabilities:Prepaid expenses and other assets189,407651,472Hosting deposits(36,691)(3,202,764)Repayments to related party(52,643)(45,732)Accounts payable and accrued expenses177,478393,260Mining of digital assets(12,289,131)(945,560)Proceeds from sale of digital assets10,874,701-Lease liability payments(95,948)(98,569)Income tax receivable262,279(293,466)Deferred taxes and taxes payable-(326,178)Net cash used in operating activities(3,404,681)(9,136,039)CASH FLOWS FROM INVESTING ACTIVITIES:Net collections of finance receivables - original product(6,428)13,993Net collections of finance receivables - special product14,009(12,602)Capital expenditures(1,625,284)(15,382)Investment in notes receivable - Seastar Medical Holding Corporation(125,000)(3,753,090)Collection of notes receivable2,651,943-Investment in digital assets(35,157)(988,343)Proceeds from sale of purchased digital assets27,815518,931Financing activities for Symbiont asset acquisition(402,361)-Symbiont asset sale1,800,000-Deposits for mining equipment-(14,649,614)Net cash from (used in) investing activities2,299,537(18,886,107)CASH FLOWS FROM FINANCING ACTIVITIES:Loan principal and insurance financing repayments(624,481)(299,033)Issue costs from the issuance of common stock(106,550)-Net cash used in financing activities(731,031)(299,033)NET DECREASE IN CASH(1,836,175)(28,321,179)CASH - BEGINNING OF PERIOD4,238,00632,559,185CASH - END OF PERIOD$ 2,401,831$ 4,238,006SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIESInsurance financing$716,292$660,120ROU assets and operating lease obligation recognized$21,887$300,787Reclassification of mining equipment deposit to fixed assets, net$1,177,226$26,961,095Capital expenditures in accrued liabilities$1,035,374$718,416Reclassification of Reverse stock split$10,859$-SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATIONCash paid for taxes$-$2,057,710Cash paid for interest$-$-NON-GAAP FINANCIAL INFORMATION (unaudited)Our reported results are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We also disclose Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA") and Core Earnings before Interest, Tax, Depreciation and Amortization ("Core EBITDA") which adjusts for unrealized loss on investment and equity securities, unrealized gain on convertible debt securities, impairment loss on mined digital assets, impairment of intangible long-lived assets, impairment of prepaid hosting deposits, impairment of mining machine deposits and gain on adjustment of note receivable allowance and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners. The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA: Years Ended December 31,Three Months Ended December 31,2023202220232022Net income (loss)$(18,875,367)$(27,883,287)$(1,402,558)$(21,710,019)Income tax expense60,5711,438,06660,571126,388Interest expense-4,416-4,416Depreciation and amortization4,983,480478,0201,495,614434,302Income (loss) before interest, taxes & depreciation$(13,831,316)$(25,962,785)$153,627$(21,144,913)Unrealized loss (gain) on investment and equity securities9,771,050(4,423,985)(546,563)6,610,843Realized gain on convertible debt securities-(287,778)--Impairment loss on prepaid mining machine deposits36,6913,150,000-3,150,000Impairment loss on mined digital assets965,96779,794143,31778,924Impairment loss on digital assets-467,406-63,935Impairment loss on Symbiont assets750,6781,052,542-1,052,542Gain on adjustment of note receivable allowance(1,052,542)---Impairment loss on prepaid hosting deposits184,2361,790,712184,2361,790,712Stock compensation and option expense2,939,43617,670,309410,5846,725,592Core income (loss) before interest, taxes & depreciation$(235,800)$(6,463,785)$345,201$(1,672,365)COMTEX_450172592/2010/2024-04-01T08:00:38 Mined 423.4 Bitcoins in 2023 Valued at Approximately $12.3 Million at an Average Market Revenue Value of Approximately $29,000 per Bitcoin Held 153.6 Bitcoin at February 29, 2024, Valued at Approximately $10.8 Million Based on Recent Bitcoin Price of $70,000 Reports Working Capital of Approximately $7.4 Million and LM Funding Stockholders' Equity of $36.2 Million ($14.52 per share) as of December 31, 2023 Conference Call to Be Held Today at 11:00 am ET TAMPA, Fla., April 01, 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 months and full year ended December 31, 2023. Operational Highlights Approximately 5,900 Bitcoin mining machines in operation at hosting sites as of December 31, 2023Mined 423.4 Bitcoin in 2023, which generated approximately $12.3 million in revenue based on the $29,000 average price of Bitcoin in 2023As of December 31, 2023, held 95.1 Bitcoin valued at approximately $3.4 millionAs of February 29, 2024, held 153.6 Bitcoin valued at approximately $10.8 million based on recent Bitcoin price of approximately $70,000Revenue for the three and twelve months ended December 31, 2023, increased approximately 262% and 648%, respectively over the same periods last yearNet loss for the three months ended December 31, 2023, was $1.6 million as compared to $19.7 million for the 2022 comparable quarter.Achieved positive Core EBITDA (defined below) of $345 thousand for the three months ended December 31, 2023, compared to a Core EBITDA loss of $1.7 million for the same period last year. 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.Bruce Rodgers, Chairman and CEO of LM Funding, commented, "We made tremendous progress building our Bitcoin mining operations in 2023, our first full year as a Bitcoin mining company. We are extremely pleased with our results as we mined 423.4 Bitcoins valued at approximately $12.3 million based on the average price of Bitcoin during the year. This success drove an almost 648% increase in the Company's revenue for the year as compared to 2022. In 2023, we adopted an 'Infrastructure Light' strategy, aiming to lessen market risks and fluctuations by concentrating our investments on Bitcoin and mining devices that closely track Bitcoin's value. Additionally, we continue to purchase state-of-the-art mining equipment in anticipation of the upcoming Bitcoin halving, expected to occur in late April or early May of this year. Considering current market conditions and the future outlook for Bitcoin, which recently reached a new all-time high of approximately $73,800, we remain extremely optimistic about the future, as halving events have historically preceded new all-time high Bitcoin prices in the six months post-halving." Richard Russell, Chief Financial Officer of LM Funding, further noted, "We ended the year with cash plus Bitcoin, valued as of December 31, 2023, of approximately $5.8 million. Including the Bitcoin that we mined through the end of February 2024, our reported Bitcoin holdings of 153.6 Bitcoin are valued at approximately $10.8 million based on the recent Bitcoin price of approximately $70,000. Our working capital stood at $7.4 million as of December 31, 2023, and the equity of LM Funding shareholders was $36.2 million, or $14.52 per share. Given the strength of our balance sheet, we have not had the need to sell any of our Bitcoin holdings through February 2024 to fund our operations and we remain highly encouraged and optimistic regarding the financial outlook for both Bitcoin and the business." Financial Highlights Total revenue for the fourth quarter ended December 31, 2023, was approximately $4.1 million, an increase of $2.9 million, or approximately 262%, compared to $1.1 million for the fourth quarter of 2022. Total revenue for the year ended December 31, 2023, was approximately $13.0 million, an increase of $11.3 million, or more than 648%, from $1.7 million in 2022. These increases were primarily due to digital mining revenue of $3.9 million and $12.3 million in the three months and year ended December 31, 2023, compared with $0.9 million of digital mining revenue for both comparable periods in 2022 as the Company commenced our Bitcoin mining operations in September 2022. The average BTC price for the three and twelve months ended December 31, 2023 used for purposes of recognizing as revenue was approximately $36,500 and $29,000, respectively.Net loss attributable to LM Funding shareholders for the three months ended December 31, 2023, was approximately $1.6 million, which included a $0.5 million non-cash, unrealized gain on investment and equity securities, and a $0.8 million impairment on our previously owned Symbiont assets, compared to a net loss of approximately $19.7 million for the 2022 comparable quarter, which included a $6.6 million non-cash, unrealized loss on investment and equity securities and a $1.1 million impairment on our Symbiont assets. Net loss attributable to LM Funding shareholders for the year ended December 31, 2023, was approximately $15.9 million, which included a $9.8 million non-cash, unrealized loss on investment and equity securities, and a $0.8 million impairment on our previously owned Symbiont assets, compared to a net loss of approximately $29.2 million for the year ended December 31, 2022, which included a $4.4 million non-cash, unrealized gain on investment and equity securities, and a $1.1 million impairment on the Symbiont assets.Positive Core EBITDA for the three months ended December 31, 2023, totaled approximately $0.3 million compared to a Core EBITDA loss of $1.7 million in the prior year's comparable quarter. Core EBITDA loss for the twelve months ended December 31, 2023, totaled approximately $0.2 million, compared with Core EBITDA loss of $6.5 million in 2022. The improvements in Core EBITDA for the three and twelve-month periods ended December 31, 2023, were primarily due to the existence of material Bitcoin mining operations in the current year that did not exist in the prior year. 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 was approximately $2.4 million, with digital assets of $3.4 million, and working capital of $7.4 million as of December 31, 2023, based on 95.1 BTC at a price of approximately $36,000 as of December 31, 2023. The current BTC market price has fluctuated between $62,000 and $73,000 in recent weeks. In 2023, the Company also received approximately $2.7 million from SeaStar Medical Holdings as a partial repayment of their outstanding note receivable.Total LM Funding stockholders' equity was approximately $36.2 million, or $14.52 per share, as of December 31, 2023 (with the per-share amount calculated as LMFA stockholders' equity divided by approximately 2,492,964 shares outstanding as of December 31, 2023).Investor Conference Call LM Funding will host a conference call today, April 1, 2024, at 11:00 A.M. Eastern Time to discuss the Company's financial results for the fourth quarter ended December 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 +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 212125. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2917/50187 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 April 1, 2025. A telephone replay of the call will be available approximately one hour following the call, through April 15, 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 50187. 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 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 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, LLCTel: (212) 671-1020Email: LMFA@crescendo-ir.com (tables follow) LM Funding America, Inc. and Subsidiaries Consolidated Balance Sheets (Audited)December 31,December 31,20232022AssetsCash$2,401,831$4,238,006Digital Assets (Note 2)3,416,256888,026Finance receivables19,22126,802Marketable securities (Note 5)17,8604,290Notes receivable from Seastar Medical Holding Corporation (Note 5)-3,807,749Receivable from sale of Symbiont assets200,000-Prepaid expenses and other assets4,067,2121,233,322Income tax receivable31,187293,466Current assets10,153,56710,491,661Fixed assets, net (Note 3)24,519,61027,272,374Deposits on mining equipment (Note 4)20,837525,219Hosting services deposits (Note 4)-2,200,452Notes receivable from Seastar Medical Holding Corporation (Note 5)1,440,498-Long-term investments - debt security (Note 5)-2,402,542Less: Allowance for losses on debt security (Note 5)-(1,052,542)Long-term investments - debt security, net (Note 5)-1,350,000Long-term investments - equity securities (Note 5)156,992464,778Investment in Seastar Medical Holding Corporation (Note 5)1,145,48610,608,750Operating lease - right of use assets (Note 7)189,009265,658Other assets86,79810,726Long-term assets27,559,23042,697,957Total assets$37,712,797$53,189,618Liabilities and stockholders' equityAccounts payable and accrued expenses2,064,9091,570,906Note payable - short-term (Note 6)567,586475,775Due to related parties (Note 9)22,84575,488Current portion of lease liability (Note 7)110,38490,823Total current liabilities2,765,7242,212,992Lease liability - net of current portion (Note 7)85,775179,397Long-term liabilities85,775179,397Total liabilities2,851,4992,392,389Stockholders' equity (Note 10)Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of December 31, 2023 and December 31, 2022--Common stock, par value $.001; 350,000,000 shares authorized; 2,492,964 shares issued and outstanding as of December 31, 2023 and 2,232,964 as of December 31, 20222,4932,233Additional paid-in capital95,145,37692,206,200Accumulated deficit(58,961,461)(43,017,207)Total LM Funding America stockholders' equity36,186,40849,191,226Non-controlling interest(1,325,110)1,606,003Total stockholders' equity34,861,29850,797,229Total liabilities and stockholders' equity$37,712,797$53,189,618LM Funding America, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)Three Months Ended December 31,Years Ended December 31,2023202220232022Revenues:Digital mining revenues$3,946,485$903,403$12,289,131$945,560Specialty finance revenue75,901175,853550,445626,773Rental revenue33,02841,378144,514161,618Total revenues4,055,4141,120,63412,984,0901,733,951Operating costs and expenses:Digital mining cost of revenues (exclusive of depreciation and amortization shown below)2,668,770994,2669,406,9401,033,226Staff costs and payroll1,121,7966,536,2915,858,73619,422,723Professional fees634,535637,4651,863,0383,158,446Settlement costs with associations--10,000160Selling, general and administrative168,632188,749851,806635,268Real estate management and disposal19,10534,012146,716110,465Depreciation and amortization1,495,614434,3024,983,480478,020Collection costs12,342(5,524)29,875(12,213)Impairment loss on mined digital assets143,31778,924965,96779,794Realized gain on sale of mined digital assets(738,526)-(2,070,508)-Other operating costs295,5691,229,749999,9591,504,047Total operating costs and expenses5,821,15410,128,23423,046,00926,409,936Operating loss(1,765,740)(9,007,600)(10,061,919)(24,675,985)Realized gain (loss) on securities2,632-4,420(349,920)Realized gain on convertible debt securities---287,778Unrealized gain (loss) on marketable securities7,134(19,930)13,570(56,830)Impairment loss on prepaid machine deposits-(3,150,000)(36,691)(3,150,000)Impairment loss on prepaid hosting deposits(184,236)(1,790,712)(184,236)(1,790,712)Impairment loss on Symbiont assets-(1,052,542)(750,678)(1,052,542)Unrealized gain (loss) on investment and equity securities546,563(6,610,843)(9,771,050)4,423,985Impairment loss on digital assets-(63,935)-(467,406)Realized gain on sale of purchased digital assets-20,2541,91720,254Loss on disposal of assets(9,389)(38,054)(9,389)(38,054)Digital assets other income--5,658Other income - coupon sales--639,472-Gain on adjustment of note receivable allowance--1,052,542-Other income - finance revenue--37,660-Dividend income---3,875Interest income, net38,705129,731249,586394,678Credit loss22,344---Loss before income taxes(1,341,987)(21,583,631)(18,814,796)(26,445,221)Income tax expense(60,571)(126,388)(60,571)(1,438,066)Net Loss$ (1,402,558)$ (21,710,019)$ (18,875,367)$ (27,883,287)Less: loss (income) attributable to non-controlling interest(189,208)2,016,3852,931,113(1,356,914)Net loss attributable to LM Funding America Inc.$ (1,591,766)$ (19,693,634)$ (15,944,254)$ (29,240,201)Basic loss per common share$(0.67)$(8.82)$(6.98)$(13.10)Diluted loss per common share$(0.67)$(8.82)$(6.98)$(13.10)Weighted average number of common shares outstandingBasic2,362,9642,231,6812,283,8362,231,681Diluted2,362,9642,231,6812,283,8362,231,681LM Funding America, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Audited)Years ended December 31,20232022CASH FLOWS FROM OPERATING ACTIVITIES:Net loss$(18,875,367)$(27,883,287)Adjustments to reconcile net loss to net cash used in operating activitiesDepreciation and amortization4,983,480478,020Noncash lease expense98,53695,098Stock compensation1,095,7051,098,331Stock option expense1,843,73116,571,978Accrued investment income(159,692)(392,412)Accrued recovery of legal fees-(55,364)Impairment loss on digital assets965,967547,200Impairment loss on mining machine deposits36,6913,150,000Impairment loss on hosting deposits184,2361,790,712Impairment loss on Symbiont assets750,678-Unrealized loss (gain) on marketable securities(13,570)56,830Unrealized loss (gain) on investment and equity securities9,771,050(4,423,985)Loss on disposal of fixed assets9,38938,054Realized loss (gain) on securities(4,420)349,920Realized gain on convertible note receivable-(287,778)Realized gain on sale of digital assets(2,072,425)(20,254)Proceeds from securities744,0362,565,893Convertible debt and interest converted into marketable securities-844,882Investments in marketable securities(739,616)(844,882)(Reversal of) allowance loss on debt security(1,052,542)1,052,542Change in operating assets and liabilities:Prepaid expenses and other assets189,407651,472Hosting deposits(36,691)(3,202,764)Repayments to related party(52,643)(45,732)Accounts payable and accrued expenses177,478393,260Mining of digital assets(12,289,131)(945,560)Proceeds from sale of digital assets10,874,701-Lease liability payments(95,948)(98,569)Income tax receivable262,279(293,466)Deferred taxes and taxes payable-(326,178)Net cash used in operating activities(3,404,681)(9,136,039)CASH FLOWS FROM INVESTING ACTIVITIES:Net collections of finance receivables - original product(6,428)13,993Net collections of finance receivables - special product14,009(12,602)Capital expenditures(1,625,284)(15,382)Investment in notes receivable - Seastar Medical Holding Corporation(125,000)(3,753,090)Collection of notes receivable2,651,943-Investment in digital assets(35,157)(988,343)Proceeds from sale of purchased digital assets27,815518,931Financing activities for Symbiont asset acquisition(402,361)-Symbiont asset sale1,800,000-Deposits for mining equipment-(14,649,614)Net cash from (used in) investing activities2,299,537(18,886,107)CASH FLOWS FROM FINANCING ACTIVITIES:Loan principal and insurance financing repayments(624,481)(299,033)Issue costs from the issuance of common stock(106,550)-Net cash used in financing activities(731,031)(299,033)NET DECREASE IN CASH(1,836,175)(28,321,179)CASH - BEGINNING OF PERIOD4,238,00632,559,185CASH - END OF PERIOD$ 2,401,831$ 4,238,006SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIESInsurance financing$716,292$660,120ROU assets and operating lease obligation recognized$21,887$300,787Reclassification of mining equipment deposit to fixed assets, net$1,177,226$26,961,095Capital expenditures in accrued liabilities$1,035,374$718,416Reclassification of Reverse stock split$10,859$-SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATIONCash paid for taxes$-$2,057,710Cash paid for interest$-$-NON-GAAP FINANCIAL INFORMATION (unaudited)Our reported results are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We also disclose Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA") and Core Earnings before Interest, Tax, Depreciation and Amortization ("Core EBITDA") which adjusts for unrealized loss on investment and equity securities, unrealized gain on convertible debt securities, impairment loss on mined digital assets, impairment of intangible long-lived assets, impairment of prepaid hosting deposits, impairment of mining machine deposits and gain on adjustment of note receivable allowance and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners. The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA: Years Ended December 31,Three Months Ended December 31,2023202220232022Net income (loss)$(18,875,367)$(27,883,287)$(1,402,558)$(21,710,019)Income tax expense60,5711,438,06660,571126,388Interest expense-4,416-4,416Depreciation and amortization4,983,480478,0201,495,614434,302Income (loss) before interest, taxes & depreciation$(13,831,316)$(25,962,785)$153,627$(21,144,913)Unrealized loss (gain) on investment and equity securities9,771,050(4,423,985)(546,563)6,610,843Realized gain on convertible debt securities-(287,778)--Impairment loss on prepaid mining machine deposits36,6913,150,000-3,150,000Impairment loss on mined digital assets965,96779,794143,31778,924Impairment loss on digital assets-467,406-63,935Impairment loss on Symbiont assets750,6781,052,542-1,052,542Gain on adjustment of note receivable allowance(1,052,542)---Impairment loss on prepaid hosting deposits184,2361,790,712184,2361,790,712Stock compensation and option expense2,939,43617,670,309410,5846,725,592Core income (loss) before interest, taxes & depreciation$(235,800)$(6,463,785)$345,201$(1,672,365)COMTEX_450172592/2010/2024-04-01T08:00:38 |
0.83% $0.02
