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

1. LMFA reported $2.0M Q4 revenue, down from $4.1M last year. 2. Mined 21.7 Bitcoin at $83,000 average; net income improved to $2.0M. 3. Core EBITDA rose to $3.3M; lower mining costs contributed significantly. 4. Holds 165.8 Bitcoin valued at $14.4M, showing asset growth. 5. Transitioned to a vertically integrated mining model, enhancing efficiency.

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FAQ

Why Bullish?

The company has shown significant improvement in net income and Core EBITDA. Past similar improvements have led to price recoveries in Bitcoin miners.

How important is it?

The significant positive shifts in financial performance and mining strategy can encourage investor interest and affect share price directly.

Why Short Term?

The immediate impact from recent financial results can influence investor sentiment quickly, especially with upcoming opportunities to discuss future plans.

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- Fourth quarter and full-year 2024 total revenue of $2.0 million and $11.0 million, respectively.- Fourth quarter and full-year 2024 CORE EBITDA of $3.3 million and $3.9 million, respectively.- Held 165.8 Bitcoin on February 28, 2025 valued at approximately $14.4 million, as of March 26, 2025 TAMPA, Fla., March 31, 2025 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a Bitcoin mining and technology-based specialty finance company, today reported financial results for the three months and full year ended December 31, 2024. Q4’24 Financial HighlightsAll variances are compared with prior year unless stated otherwise: Mined 21.7 Bitcoin at an average price of approximately $83,000, generating total revenue of approximately $2.0 million. The year-over-year decrease in revenue primarily reflects the effects of the April 2024 Bitcoin Halving event and the transition of miners from storage into the new Oklahoma mining site.Net income attributable to LM Funding shareholders was approximately $2.0 million compared with a net loss of approximately $1.6 million. The improvement in the net income was primarily driven by the new ASU Bitcoin standards that require mark-to-market valuation adjustment for our Bitcoin holdings.Core EBITDA was approximately $3.3 million compared with $0.3 million1. The improvements in Core EBITDA were primarily due to gains on the fair value of Bitcoin in addition to lower digital mining costs and reduced compensation.At year end, cash was approximately $3.4 million. Digital assets were $14.0 million based on 150.2 Bitcoin held at a price of approximately $93,000 as of December 31, 2024.Net book value of equity was approximately $35.3 million as of December 31, 2024 or $7.21 per share2.As of February 28, 2025, held 165.8 Bitcoin valued at approximately $14.4 million as of March 26, 2025 (based on Bitcoin price of approximately $87,000) or Bitcoin per share of $2.813. ________________________1 Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net income can be found below.2,3 Based on shares outstanding of 5,133,412 as of December 31, 2024. Q4’24 Operational Highlights 15 MW site acquisition: The Company further executed its transition from an infrastructure-light strategy, mining at hosted facilities, to a fully vertically integrated strategy with low-cost electricity underpinning its operations. In addition to the low-cost energy, the strategy allows controlled uptime, which LM Funding believes will lead to more efficient mining and higher margins.Mining fleet upgrade: In Q1 2025, the Company partnered with Luxor Technology Corporation to install their proprietary LuxOS firmware on its existing fleet, which could potentially boost the Company’s mining efficiency by 10-15%. This upgrade allows LM Funding to mine Bitcoin at a higher profitability without any additional capex investment. CEO Commentary Bruce Rodgers, Chairman and CEO of LM Funding, commented, “Using the halving as our pivot point of opportunity, we transitioned from an infrastructure-light hosted mining strategy  to a vertically integrated model—one where we manage the infrastructure ourselves, ensuring better margins and mitigating risks associated with third-party hosting arrangements.  With our Oklahoma facility, we secured low-cost power for our miners and now we own and totally control our mining infrastructure and costs. This vertical integration significantly reduces our fleet-wide energy costs and improves our operations for enhanced uptime and mining efficiency. Looking forward, our strong balance sheet and lean operations position us to grow our mining revenue by seeking to acquire new mining sites with similar size, prices, and terms.” CFO Commentary Richard Russell, CFO of LM Funding, stated, "Throughout our expansion last year, we remained disciplined in our spending. By actively maintaining a low-cost structure - from power sourcing and infrastructure investments to staffing and equipment - we were able to successfully navigate a challenging year for the industry and our first Bitcoin Halving event, which occurred in April 2024. This strategic cost control enabled us to achieve profitability in 2024 on a Core EBITDA basis, as well as grow our Bitcoin treasury, which is a significant piece of our long-term strategy. By retaining a portion of our Bitcoin mined, we not only capture potential upside for shareholders but also deepen our alignment with the broader Bitcoin industry." Full Year 2024 Financial HighlightsAll variances are compared with prior year unless stated otherwise: Mined 170.6 Bitcoin at an average price of approximately $61,000, generating total revenue of approximately $11.0 million. The year-over-year decrease in revenue primarily reflects the effects of the April 2024 Bitcoin halving event.Net loss attributable to LM Funding shareholders for the year ended December 31, 2024, was approximately $7.3 million compared with a net loss of approximately $15.9 million in 2023.Core EBITDA income for the twelve months ended December 31, 2024 was approximately $3.9 million, compared with a Core EBITDA loss of $0.2 million in 2023. The improvements in Core EBITDA were primarily due to gains on the fair value of Bitcoin in addition to lower digital mining costs and reduced compensation. Investor Conference Call LM Funding will host a conference call today, March 31, 2025, at 8:00 A.M. Eastern Time to discuss the Company’s financial results for the quarter and full year ended December 31, 2024, as well as the Company’s corporate progress and other developments. A copy of this earnings release and investor presentation are available on the Company’s Investor Relations website at https://www.lmfunding.com/investors.   Conference Call Details Date: March 31, 2025 Time: 8:00 AM EST Participant Call Links:  Live Webcast: Link Participant Call Registration: Link  About LM Funding America LM Funding America, Inc. (Nasdaq: LMFA), operates as a Bitcoin mining and specialty finance company. The company was founded in 2008 and is based in Tampa, Florida. For more information, please visit https://www.lmfunding.com. 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, the risks of operating in the cryptocurrency mining business, our limited operating history in the cryptocurrency mining business and our ability to grow that business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, our ability to identify and acquire additional mining sites, the ability to finance our site acquisitions and cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, changes in governmental regulations that affect our ability to collected sufficient amounts on defaulted consumer receivables, changes in the credit or capital markets, changes in interest rates, and negative press regarding the debt collection industry. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations. For investor and media inquiries, please contact: Investor RelationsOrange GroupYujia ZhailmfundingIR@orangegroupadvisors.com      LM Funding America, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited)       December 31, December 31,   2024   2023      Assets    Cash $3,378,152  $2,401,831 Digital assets - current (Note 4)  9,021,927   3,416,256 Finance receivables  21,051   19,221 Marketable securities (Note 7)  27,050   17,860 Receivable from sale of Symbiont assets (Note 7)  200,000   200,000 Prepaid expenses and other assets  827,237   4,067,212 Income tax receivable  31,187   31,187 Current assets  13,506,604   10,153,567      Fixed assets, net (Note 5)  18,376,948   24,519,610 Intangible assets, net (Note 5)  5,478,958   - Deposits on mining equipment (Note 6)  467,172   20,837 Notes receivable from Seastar Medical Holding Corporation (Note 7)  -   1,440,498 Long-term investments - equity securities (Note 7)  4,255   156,992 Investment in Seastar Medical Holding Corporation (Note 7)  200,790   1,145,486 Digital assets - long-term (Note 4)  5,000,000   - Operating lease - right of use assets (Note 9)  938,641   189,009 Other assets  73,857   86,798 Long-term assets  30,540,621   27,559,230 Total assets $44,047,225  $37,712,797      Liabilities and stockholders' equity    Accounts payable and accrued expenses  989,563   2,064,909 Note payable - short-term (Note 8)  386,312   567,586 Due to related parties (Note 11)  15,944   22,845 Current portion of lease liability (Note 9)  170,967   110,384 Total current liabilities  1,562,786   2,765,724      Note payable - long-term (Note 8)  6,365,345   - Lease liability - net of current portion (Note 9)  776,535   85,775 Long-term liabilities  7,141,880   85,775 Total liabilities  8,704,666   2,851,499      Stockholders' equity (Note 12)    Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of December 31, 2024 and December 31, 2023  -   - Common stock, par value $.001; 350,000,000 shares authorized; 5,133,412 shares issued and outstanding as of December 31, 2024 and 2,492,964 as of December 31, 2023  4,602   2,493 Additional paid-in capital  102,685,470   95,145,376 Accumulated deficit  (65,662,731)  (58,961,461)Total LM Funding America stockholders' equity  37,027,341   36,186,408 Non-controlling interest  (1,684,782)  (1,325,110)Total stockholders' equity  35,342,559   34,861,298 Total liabilities and stockholders’ equity $44,047,225  $37,712,797       LM Funding America, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)           Three Months Ended December 31, Years Ended December 31,   2024   2023   2024   2023 Revenues:        Digital mining revenues $1,814,169  $3,946,485  $10,432,605  $12,289,131 Specialty finance revenue  140,377   75,901   443,599   550,445 Rental revenue  30,678   33,028   123,444   144,514 Total revenues  1,985,224   4,055,414   10,999,648   12,984,090 Operating costs and expenses:        Digital mining cost of revenues (exclusive of depreciation and amortization shown below)  1,248,083   2,668,770   6,990,856   9,406,940 Staff costs and payroll  907,883   1,121,796   4,556,781   5,858,736 Depreciation and amortization  658,757   1,495,614   7,774,161   4,983,480 Gain on fair value of Bitcoin, net  (4,254,031)  (383,497)  (7,350,805)  - Impairment loss on mining equipment  191,317   261,191   1,379,375   - Impairment loss on mined digital assets  -   280,278   -   965,967 Realized gain on sale of mined digital assets  -   (999,717)  -   (2,070,508)Professional fees  434,251   634,535   2,057,165   1,863,038 Selling, general and administrative  234,366   168,632   817,041   851,806 Real estate management and disposal  70,483   19,105   159,913   146,716 Collection costs  4,647   12,342   41,043   29,875 Settlement costs with associations  -   -   -   10,000 Loss on disposal of assets  81,594   9,389   136,100   9,389 Other operating costs  232,168   542,105   899,569   999,959 Total operating costs and expenses  (190,482)  5,830,543   17,461,199   23,055,398 Operating income (loss)  2,175,706   (1,775,129)  (6,461,551)  (10,071,308)Unrealized gain on marketable securities  8,206   7,134   9,190   13,570 Impairment loss on prepaid machine deposits  -   -   (12,941)  (36,691)Impairment loss on prepaid hosting deposits  -   (184,236)  -   (184,236)Unrealized loss on investment and equity securities  (244,809)  546,563   (1,097,433)  (9,771,050)Impairment loss on Symbiont assets  -   -   -   (750,678)Gain on fair value of purchased Bitcoin, net  (18,729)  -   39,197   - Credit loss on Seastar note receivable  -   22,344   -   - Realized gain on securities  -   2,632   -   4,420 Realized gain on sale of purchased digital assets  -   -   -   1,917 Gain on adjustment of note receivable allowance  -   -   -   1,052,542 Other income - coupon sales  -   -   4,490   639,472 Other income - financing revenue  -   -   -   37,660 Interest expense  (211,946)  -   (443,700)  - Interest income  182,620   38,705   307,316   249,586 Income (loss) before income taxes  1,891,048   (1,341,987)  (7,655,432)  (18,814,796)Income tax expense  -   (60,571)  -   (60,571)Net income (loss) $ 1,891,048  $ (1,402,558) $ (7,655,432) $ (18,875,367)Less: loss attributable to non-controlling interest  74,760   (189,208)  340,056   2,931,113 Net income (loss) attributable to LM Funding America Inc. $ 1,965,808  $ (1,591,766) $ (7,315,376) $ (15,944,254)Less: deemed dividends (Note 12)  (5,090,619)  -   (6,794,924)  - Net loss attributable to common shareholders $ (3,124,811) $ (1,591,766) $ (14,110,300) $ (15,944,254)         Basic loss per common share (Note 1) $(0.86) $(0.67) $(5.02) $(6.98)Diluted loss per common share (Note 1) $(0.86) $(0.67) $(5.02) $(6.98)         Weighted average number of common shares outstanding        Basic  3,650,624   2,362,964   2,808,064   2,283,836 Diluted  3,650,624   2,362,964   2,808,064   2,283,836           LM Funding America, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited)   Years Ended December 31,   2024   2023 CASH FLOWS FROM OPERATING ACTIVITIES:    Net loss $(7,655,432) $(18,875,367)Adjustments to reconcile net loss to net cash used in operating activities    Depreciation and amortization  7,774,161   4,983,480 Noncash lease expense  109,842   98,536 Amortization of debt issue costs  35,435   - Stock compensation  76,322   1,095,705 Stock option expense  443,220   1,843,731 Professional fees paid in common shares  100,001   - Accrued investment income  (197,104)  (159,692)Digital assets other income  (4,490)  - Gain on fair value of Bitcoin, net  (7,390,002)  - Impairment loss on mining machines  1,379,375   - Impairment loss on digital assets  -   965,967 Impairment loss on mining machine deposits  12,941   36,691 Impairment loss on hosting deposits  -   184,236 Impairment loss on Symbiont assets  -   750,678 Unrealized gain on marketable securities  (9,190)  (13,570)Realized gain on securities  -   (4,420)Unrealized loss on investment and equity securities  1,097,433   9,771,050 Loss on disposal of fixed assets  136,100   9,389 Allowance for loss on debt security  -   - Proceeds from securities  -   744,036 Realized gain on sale of digital assets  -   (2,072,425)Reversal of allowance loss on debt security  -   (1,052,542)Investments in marketable securities  -   (739,616)Change in operating assets and liabilities:    Prepaid expenses and other assets  3,781,133   189,407 Hosting deposits  (12,941)  (36,691)Repayments to related party  (6,901)  (52,643)Accounts payable and accrued expenses  (1,075,346)  177,478 Mining of digital assets  (10,432,605)  (12,289,131)Proceeds from sale of digital assets  —   10,874,701 Lease liability payments  (108,131)  (95,948)Income tax receivable  —   262,279 Net cash used in operating activities  (11,946,179)  (3,404,681)CASH FLOWS FROM INVESTING ACTIVITIES:    Net collections of finance receivables - original product  1,059   (6,428)Net collections of finance receivables - special product  (2,889)  14,009 Capital expenditures  (1,732,472)  (1,625,284)Proceeds from sale of fixed assets  78,806   - Acquisition of Tech Infrastructure JV I LLC assets  (3,642,870)  - Investment in note receivable  (3,587,195)  (125,000)Collection of note receivable  -   2,651,943 Collection of note receivable - related party  1,449,066   - Investment in digital assets  (485,500)  (35,157)Proceeds from sale of digital assets  8,309,104   27,815 Proceeds from the sale of tether  11,928   - Symbiont asset acquisition  -   1,800,000 Financing activities for Symbiont asset acquisition  -   (402,361)Distribution to members  (19,616)  - Net cash provided by investing activities  379,421   2,299,537 CASH FLOWS FROM FINANCING ACTIVITIES:    Proceeds from borrowings  6,329,910   - Insurance financing repayments  (709,491)  (624,481)Exercise of warrants  4,748,971   Exercise of options  25,000   - Proceeds from equity offering  2,148,689   - Issue costs for the issuance of common stock  —   (106,550)Net cash provided by (used in) financing activities  12,543,079   (731,031)NET INCREASE (DECREASE) IN CASH  $ 976,321  $(1,836,175)CASH - BEGINNING OF PERIOD  2,401,831   4,238,006 CASH - END OF PERIOD $3,378,152  $2,401,831       NON-GAAP CORE EBITDA RECONCILIATION Our reported results are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We also disclose Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA") and Core Earnings before Interest, Tax, Depreciation and Amortization ("Core EBITDA") which adjusts for unrealized loss on investment and equity securities, impairment loss on mined digital assets, impairment of long-lived assets, impairment of prepaid hosting deposits, contract termination costs and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners. The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:            Three Months Ended December 31, Years Ended December 31,   2024   2023   2024   2023          Net loss $1,891,048  $(1,402,558) $(7,655,432) $(18,875,367)Income tax expense  -   60,571   -   60,571 Interest expense  211,946   -   443,700   - Depreciation and amortization  658,757   1,495,614   7,774,161   4,983,480 Income (loss) before interest, taxes & depreciation $2,761,751  $153,627  $562,429  $(13,831,316)Unrealized loss on investment and equity securities  244,809   (546,563)  1,097,433   9,771,050 Gain on adjustment of note receivable allowance  -   -   -   (1,052,542)Impairment loss on mined digital assets  -   143,317   -   965,967 Impairment loss on prepaid machine deposits  12,941   -   12,941   36,691 Impairment loss on prepaid hosting deposits  -   184,236   -   184,236 Costs associated with At-the-Market Equity program  -   -   119,050   - Contract termination costs  -   -   250,001   - Impairment loss on Symbiont assets  -   -   -   750,678 Impairment loss on mining equipment  191,317   -   1,379,375   - Stock compensation and option expense  110,805   410,584   519,542   2,939,436 Core income (loss) before interest, taxes & depreciation $3,321,623  $345,201  $3,940,771  $(235,800)         

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