LM FUNDING AMERICA INC
For the period ended Sep 30, 2024. Filed Nov 13, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 13, 2024
PWCM$0.54+3.0%Stored close · as of Nov 9, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Financial Statements
LM Funding America, Inc. and Subsidiaries Consolidated Balance Sheets
| September 30, | December 31, | |
|---|---|---|
| 2024 (Unaudited) | 2023 | |
| Assets | ||
| Cash | $5,913,215 | $2,401,831 |
| Digital assets - current (Note 2) | 3,983,800 | 3,416,256 |
| Finance receivables | 25,410 | 19,221 |
| Marketable securities (Note 5) | 18,844 | 17,860 |
| Receivable from sale of Symbiont assets (Note 5) | 200,000 | 200,000 |
| Current portion of notes receivable from Tech Infrastructure JV I LLC (Note 5) | 711,840 | - |
| Prepaid expenses and other assets | 416,516 | 4,067,212 |
| Income tax receivable | 31,187 | 31,187 |
| Current assets | 11,300,812 | 10,153,567 |
| Fixed assets, net (Note 3) | 17,311,254 | 24,519,610 |
| Deposits on mining equipment (Note 4) | 20,847 | 20,837 |
| Notes receivable from Seastar Medical Holding Corporation (Note 5) | - | 1,440,498 |
| Notes receivable from Tech Infrastructure JV I LLC - net of current portion (Note 5) | 2,269,863 | - |
| Long-term investments - equity securities (Note 5) | 8,944 | 156,992 |
| Investment in Seastar Medical Holding Corporation (Note 5) | 440,910 | 1,145,486 |
| Digital assets - long-term (Note 2) | 5,000,000 | - |
| Operating lease - right of use assets (Note 7) | 109,380 | 189,009 |
| Other assets | 73,857 | 86,798 |
| Long-term assets | 25,235,055 | 27,559,230 |
| Total assets | $36,535,867 | $37,712,797 |
| Liabilities and stockholders' equity | ||
| Accounts payable and accrued expenses | 1,400,228 | 2,064,909 |
| Note payable - short-term (Note 6) | 1,520,564 | 567,586 |
| Due to related parties (Note 10) | 64,386 | 22,845 |
| Current portion of lease liability (Note 7) | 109,931 | 110,384 |
| Total current liabilities | 3,095,109 | 2,765,724 |
| Note payable - long-term (Note 6) | 4,844,084 | - |
| Lease liability - net of current portion (Note 7) | 4,924 | 85,775 |
| Long-term liabilities | 4,849,008 | 85,775 |
| Total liabilities | 7,944,117 | 2,851,499 |
| Stockholders' equity (Note 8) | ||
| Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of September 30, 2024 and December 31, 2023 | - | - |
| Common stock, par value $.001; 350,000,000 shares authorized; 2,956,042 shares issued and outstanding as of September 30, 2024 and 2,492,964 as of December 31, 2023 | 2,822 | 2,493 |
| Additional paid-in capital | 97,827,489 | 95,145,376 |
| Accumulated deficit | (67,628,539) | (58,961,461) |
| Total LM Funding America stockholders' equity | 30,201,772 | 36,186,408 |
| Non-controlling interest | (1,610,022) | (1,325,110) |
| Total stockholders' equity | 28,591,750 | 34,861,298 |
| Total liabilities and stockholders’ equity | $36,535,867 | $37,712,797 |
LM Funding America, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)
| Three Months Ended September 30, · Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2024 · 2023 · 2024 · 2023 | ||||||
| Revenues: | ||||||
| Digital mining revenues | $1,127,455 | $3,283,473 | $8,618,436 | $8,342,646 | ||
| Specialty finance revenue | 97,558 | 101,535 | 303,222 | 474,544 | ||
| Rental revenue | 30,460 | 34,500 | 92,766 | 111,486 | ||
| Total revenues | 1,255,473 | 3,419,508 | 9,014,424 | 8,928,676 | ||
| Operating costs and expenses: | ||||||
| Digital mining cost of revenues (exclusive of depreciation and amortization shown below) | 730,716 | 2,708,473 | 5,742,773 | 6,737,971 | ||
| Staff costs and payroll | 1,567,984 | 1,340,665 | 3,648,898 | 4,736,940 | ||
| Depreciation and amortization | 2,349,634 | 1,516,873 | 7,115,404 | 3,487,866 | ||
| Gain on fair value of Bitcoin, net | (104,744) | - | (3,096,774) | - | ||
| Impairment loss on mining equipment | - | - | 1,188,058 | - | ||
| Impairment loss on mined digital assets | - | 383,497 | - | 822,650 | ||
| Realized gain on sale of mined digital assets | - | (261,191) | - | (1,331,982) | ||
| Professional fees | 628,686 | 419,173 | 1,622,914 | 1,228,503 | ||
| Selling, general and administrative | 209,088 | 201,151 | 582,675 | 683,174 | ||
| Real estate management and disposal | 31,144 | 26,453 | 89,430 | 127,611 | ||
| Collection costs | 15,054 | 8,098 | 36,396 | 17,533 | ||
| 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: loss attributable to non-controlling interest | 105,043 | 250,880 | 265,296 | 3,120,321 | ||
| Net loss attributable to LM Funding America Inc. | $(4,698,074) | $(4,416,976) | $(9,281,184) | $(14,352,487) | ||
| Less: deemed dividends (Note 8) | (1,704,305) | - | (1,704,305) | - | ||
| Net loss attributable to common shareholders | $(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 | $ | - | |
LM Funding America, Inc. and Subsidiaries Consolidated Statements of Changes in Stockholders’ Equity
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
| Common Stock | ||||||
|---|---|---|---|---|---|---|
| Shares | Amount | Additional paid-in capital | Accumulated Deficit | Non-Controlling Interest | Total Equity | |
| Balance - December 31, 2022 | 2,232,964 | $2,233 | $92,206,200 | $(43,017,207) | $1,606,003 | $50,797,229 |
| Stock option expense | - | - | 194,356 | - | - | 194,356 |
| Net loss | - | - | - | (5,386,332) | (1,776,264) | (7,162,596) |
| Balance - March 31, 2023 | 2,232,964 | $2,233 | $92,400,556 | $(48,403,539) | $(170,261) | $43,828,989 |
| Stock option expense | - | - | 1,147,739 | - | - | 1,147,739 |
| Issuance of restricted stock | 260,000 | 260 | 564,670 | - | - | 564,930 |
| Net loss | - | - | - | (4,549,179) | (1,093,177) | (5,642,356) |
| Balance - June 30, 2023 | 2,492,964 | $2,493 | $94,112,965 | $(52,952,718) | $(1,263,438) | $39,899,302 |
| Stock option expense | - | - | 269,700 | - | - | 269,700 |
| Issuance of restricted stock | - | - | 352,127 | - | - | 352,127 |
| Net loss | - | - | - | (4,416,976) | (250,880) | (4,667,856) |
| Balance - September 30, 2023 | 2,492,964 | $2,493 | $94,734,792 | $(57,369,694) | $(1,514,318) | $35,853,273 |
| Balance - December 31, 2023 | 2,492,964 | $2,493 | $95,145,376 | $(58,961,461) | $(1,325,110) | $34,861,298 |
| Stock option expense | - | - | 110,804 | - | - | 110,804 |
| Stock compensation | - | - | 71,047 | - | - | 71,047 |
| Cumulative effect of change in accounting principle (See Note 1) | - | - | - | 614,106 | - | 614,106 |
| Net income | - | - | - | 1,489,745 | 414,221 | 1,903,966 |
| Balance - March 31, 2024 | 2,492,964 | $2,493 | $95,327,227 | $(56,857,610) | $(910,889) | $37,561,221 |
| Stock option expense | - | - | 110,805 | - | - | 110,805 |
| Stock compensation | - | - | 5,275 | - | - | 5,275 |
| Member distributions | - | - | - | - | (19,616) | (19,616) |
| Net loss | - | - | - | (6,072,855) | (574,474) | (6,647,329) |
| Balance - June 30, 2024 | 2,492,964 | $2,493 | $95,443,307 | $(62,930,465) | $(1,504,979) | $31,010,356 |
| Stock issued for option exercise | 6,219 | 6 | 24,994 | - | - | 25,000 |
| Stock issued for services | 29,674 | 30 | 99,971 | - | - | 100,001 |
| Warrant exercise | 149,185 | 15 | - | - | - | 15 |
| Shares issued for cash in public offering, net | 278,000 | 278 | 2,148,411 | - | - | 2,148,689 |
| Stock option expense | - | - | 110,806 | - | - | 110,806 |
| Net loss | - | - | - | (4,698,074) | (105,043) | (4,803,117) |
| Balance - September 30, 2024 | 2,956,042 | $2,822 | $97,827,489 | $(67,628,539) | $(1,610,022) | $28,591,750 |
LM FUNDING AMERICA, INC. AND SUBSIDIARIES
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.