TAMPA,
Fla., May 16, 2022 /PRNewswire/ -- LM Funding
America, Inc. (NASDAQ: LMFA) ("LM Funding" or the
"Company"), a technology-based specialty finance company
offering unique funding solutions to community associations that
has expanded into the cryptocurrency mining business, today
announced its financial results for the three months ended
March 31, 2022.
We are excited to receive our first
shipments of mining machines from Bitmain and look forward to
generating our first Bitcoin anticipated in the third quarter of
2022
Financial Highlights for the Three Month Period Ended
March 31, 2022:·
- Paid an additional $7.1 million
in first quarter to Bitmain for the 5,046 machines on order, of
which 841 have been delivered, and anticipate shipments of 841
machines per month from June 2022
through October 2022.
- Cash position of $24.5 million as
of March 31, 2022.
- The Company had $23.9 million in
deposits on mining machines.
- Net equity per share on March 31,
2022 was $4.48 (calculated as
stockholders' equity divided by 13,091,955 shares outstanding as of
March 31, 2022).
- Revenues increased to $191,000
for the quarter ended March 31, 2022
as compared with $177,000 for the
comparable quarter in 2021.
- Net cash used by operating activities was approximately
$528,000 for the first quarter
2022.
- Net loss attributable to LM Funding for the first quarter of
2022 was $5.7 million, which includes
$3.6 million of stock
option/compensation expense and a realized loss on securities of
$0.4 million, versus net income of
$4.4 million for the first quarter of
2021, which included a $5.7 million
realized gain on securities.
"We are excited to receive our first shipments of mining
machines from Bitmain and look forward to generating our first
Bitcoin anticipated in the third quarter of 2022," stated Mr.
Bruce Rodgers, Chief Executive
Officer and Chairman of LM Funding. "We expect the recent
downturn in Bitcoin pricing may provide us with pricing discounts
on machines we currently have under contract as well as
opportunities to purchase additional machines at lower prices."
On April 21, 2022, LMF Acquisition
Opportunities, Inc. ("LMAO") entered into an Agreement and Plan of
Merger with LMF Merger Sub, Inc., a Delaware corporation and direct, wholly owned
subsidiary of LMAO, and SeaStar Medical, Inc., a Delaware corporation.
About LM Funding America:
LM Funding America, Inc., together with its subsidiaries, is 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. The company offers funding to
Associations by purchasing a certain portion of the associations'
rights to delinquent accounts that are selected by the Associations
arising from unpaid Association assessments. The company is also
involved in the business of purchasing delinquent accounts on
various terms tailored to suit each Association's financial needs,
including under the company's New Neighbor Guaranty™ program.
The company is also entering the cryptocurrency mining business
through a new subsidiary, US Digital Mining and Hosting Co., LLC.
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," "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. Important
factors which could materially affect our results and our future
performance include, without limitation, our ability to implement
our plan to develop and grow a cryptocurrency mining business
specializing in Bitcoin,our ability to purchase defaulted consumer
receivables at appropriate prices, competition to acquire such
receivables, our dependence upon third party law firms to service
our accounts, our ability to obtain funds to purchase receivables,
ability to manage growth or declines in the business, changes in
government regulations that affect our ability to collect
sufficient amounts on our defaulted consumer receivables, the
impact of class action suits and other litigation, our ability to
keep our software systems updated to operate our business, our
ability to employ and retain qualified employees, our ability to
establish and maintain internal accounting controls, changes in the
credit or capital markets, changes in interest rates, deterioration
in economic conditions, and negative press regarding the debt
collection industry which may have a negative impact on a debtor's
willingness to pay the debt we acquire, as well as other factors
set forth under "Risk Factors" in our most recent Annual Report on
Form 10-K and our other filings with the SEC, which are available
at www.sec.gov. The occurrence of any of these risks and
uncertainties could have a material adverse effect on the company's
business, financial condition, and results of operations.
Company Contact:
Bruce M. Rodgers,
Chairman and CEO
LM Funding America,
Inc.
Tel (813) 222-8996
investors@lmfunding.com
|
|
LM FUNDING AMERICA,
INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Interest on delinquent association fees
|
|
$
|
101,268
|
|
|
$
|
77,444
|
|
|
Administrative and late fees
|
|
|
16,708
|
|
|
|
15,071
|
|
|
Recoveries in excess of cost - special product
|
|
|
17,365
|
|
|
|
29,473
|
|
|
Underwriting and other revenues
|
|
|
16,791
|
|
|
|
22,703
|
|
|
Rental revenue
|
|
|
38,872
|
|
|
|
31,917
|
|
|
Total revenues
|
|
|
191,004
|
|
|
|
176,608
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
Staff costs and payroll
|
|
|
4,292,197
|
|
|
|
1,301,981
|
|
|
Professional fees
|
|
|
774,820
|
|
|
|
482,943
|
|
|
Settlement costs with associations
|
|
|
160
|
|
|
|
-
|
|
|
Selling, general and administrative
|
|
|
114,920
|
|
|
|
99,769
|
|
|
Recovery of cost from related party receivable
|
|
|
-
|
|
|
|
(10,000)
|
|
|
Real estate management and disposal
|
|
|
31,481
|
|
|
|
18,290
|
|
|
Depreciation and amortization
|
|
|
3,094
|
|
|
|
1,696
|
|
|
Collection costs
|
|
|
(3,820)
|
|
|
|
2,048
|
|
|
Other operating expenses
|
|
|
8,384
|
|
|
|
7,545
|
|
|
Total operating
expenses
|
|
|
5,221,236
|
|
|
|
1,904,272
|
|
|
Operating
loss
|
|
|
(5,030,232)
|
|
|
|
(1,727,664)
|
|
|
Realized gain (loss) on securities
|
|
|
(395,181)
|
|
|
|
5,671,464
|
|
|
Unrealized gain on convertible debt security
|
|
|
288,320
|
|
|
|
-
|
|
|
Unrealized gain on marketable securities
|
|
|
130
|
|
|
|
-
|
|
|
Unrealized gain (loss) on investment and equity
securities
|
|
|
(986,399)
|
|
|
|
595,392
|
|
|
Digital assets other income
|
|
|
4,366
|
|
|
|
-
|
|
|
Interest income
|
|
|
98,370
|
|
|
|
13,055
|
|
|
Interest expense
|
|
|
-
|
|
|
|
(464)
|
|
|
Dividend income
|
|
|
1,375
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
|
(6,019,251)
|
|
|
|
4,551,783
|
|
|
Income tax
expense
|
|
|
-
|
|
|
|
(3,484)
|
|
|
Net income
(loss)
|
|
|
(6,019,251)
|
|
|
|
4,548,299
|
|
|
Less: Net income (loss)
attributable to non-controlling interest
|
|
|
291,200
|
|
|
|
(171,866)
|
|
|
Net income (loss)
attributable to LM Funding America Inc.
|
|
$
|
(5,728,051)
|
|
|
$
|
4,376,433
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per
share:
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per common share - net income (loss) -
attributable to LM Funding
|
|
$
|
(0.44)
|
|
|
$
|
0.87
|
|
|
Diluted income (loss) per common share - net income (loss) -
attributable to LM Funding
|
|
$
|
(0.44)
|
|
|
$
|
0.80
|
|
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
13,060,736
|
|
|
|
5,047,498
|
|
|
Diluted
|
|
|
13,060,736
|
|
|
|
5,439,398
|
|
|
LM FUNDING AMERICA,
INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
March 31, 2022
|
|
|
December 31,
2021
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
24,536,467
|
|
|
$
|
32,559,185
|
|
Finance
receivables:
|
|
|
|
|
|
|
|
|
Original product - net
|
|
|
20,543
|
|
|
|
13,993
|
|
Special product - New
Neighbor Guaranty program, net of allowance for credit losses
of
|
|
|
16,148
|
|
|
|
14,200
|
|
Short-term investments
- convertible debt securities (Note 7)
|
|
|
845,424
|
|
|
|
539,351
|
|
Marketable securities
(Note 7)
|
|
|
308,950
|
|
|
|
2,132,051
|
|
Short-term investments
- debt security (Note 7)
|
|
|
2,106,082
|
|
|
|
2,000,000
|
|
Prepaid expenses and
other assets
|
|
|
944,464
|
|
|
|
1,251,852
|
|
Income tax receivable
(Note 4)
|
|
|
143,822
|
|
|
|
-
|
|
Note receivable from
related party (Note 7)
|
|
|
310,000
|
|
|
|
-
|
|
Digital assets, net
(Note 9)
|
|
|
504,366
|
|
|
|
-
|
|
Current assets
|
|
|
29,736,266
|
|
|
|
38,510,632
|
|
Fixed assets,
net
|
|
|
14,820
|
|
|
|
17,914
|
|
Real estate assets
owned
|
|
|
80,057
|
|
|
|
80,057
|
|
Operating lease - right
of use assets (Note 5)
|
|
|
337,413
|
|
|
|
59,969
|
|
Long-term investments -
equity securities (Note 7)
|
|
|
949,754
|
|
|
|
1,973,413
|
|
Investments in
unconsolidated affiliates (Note 7)
|
|
|
4,713,390
|
|
|
|
4,676,130
|
|
Deposit on mining
equipment (Note 8)
|
|
|
23,893,672
|
|
|
|
16,775,100
|
|
Other assets
|
|
|
10,726
|
|
|
|
10,726
|
|
Long-term assets
|
|
|
29,999,832
|
|
|
|
23,593,309
|
|
Total assets
|
|
$
|
59,736,098
|
|
|
$
|
62,103,941
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
|
325,489
|
|
|
|
463,646
|
|
Note payable -
short-term (Note 3)
|
|
|
57,344
|
|
|
|
114,688
|
|
Due to related party
(Note 2)
|
|
|
373,800
|
|
|
|
121,220
|
|
Current portion of
lease liability (Note 5)
|
|
|
90,072
|
|
|
|
68,002
|
|
Income tax payable
(Note 4)
|
|
|
-
|
|
|
|
326,178
|
|
Other
liabilities
|
|
|
1,725
|
|
|
|
-
|
|
Total current
liabilities
|
|
|
848,430
|
|
|
|
1,093,734
|
|
Lease liability -
long-term (Note 5)
|
|
|
248,475
|
|
|
|
-
|
|
Long-term
liabilities
|
|
|
248,475
|
|
|
|
-
|
|
Total liabilities
|
|
|
1,096,905
|
|
|
|
1,093,734
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred stock, par value $.001; 150,000,000 shares
authorized; no shares issued
and outstanding as of March 31, 2022 and
December 31, 2021, respectively
|
|
|
-
|
|
|
|
-
|
|
Common stock, par value $0.001; 350,000,000 shares
authorized; 13,091,883 and
13,017,943 shares issued and outstanding as of
March 31, 2022 and December 31, 2021, respectively
|
|
|
13,092
|
|
|
|
13,018
|
|
Additional paid-in capital
|
|
|
78,173,269
|
|
|
|
74,525,106
|
|
Accumulated deficit
|
|
|
(19,505,057)
|
|
|
|
(13,777,006)
|
|
Total stockholders'
equity
|
|
|
58,681,304
|
|
|
|
60,761,118
|
|
Non-controlling
interest
|
|
|
(42,111)
|
|
|
|
249,089
|
|
Total stockholders'
equity
|
|
|
58,639,193
|
|
|
|
61,010,207
|
|
Total liabilities and
stockholders' equity
|
|
$
|
59,736,098
|
|
|
$
|
62,103,941
|
|
LM FUNDING AMERICA,
INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
|
2022
|
|
|
2021
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(6,019,251)
|
|
|
$
|
4,548,299
|
|
Adjustments to
reconcile net loss to cash used in operating activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
3,094
|
|
|
|
1,696
|
|
Right to use non cash lease expense
|
|
|
23,343
|
|
|
|
25,808
|
|
Stock compensation
|
|
|
329,500
|
|
|
|
-
|
|
Stock option expense
|
|
|
3,318,737
|
|
|
|
-
|
|
Accrued investment income
|
|
|
(96,657)
|
|
|
|
(12,784)
|
|
Digital assets other income
|
|
|
(4,366)
|
|
|
|
|
|
Gain on deconsolidation of affiliate
|
|
|
-
|
|
|
|
(43,623)
|
|
Unrealized gain on convertible debt security
|
|
|
(288,320)
|
|
|
|
-
|
|
Unrealized gain on marketable securities
|
|
|
(130)
|
|
|
|
(595,392)
|
|
Unrealized loss on investment and equity
securities
|
|
|
986,399
|
|
|
|
-
|
|
Realized (gain) loss on securities
|
|
|
395,181
|
|
|
|
(5,671,464)
|
|
Proceeds from securities
|
|
|
1,428,050
|
|
|
|
21,218,918
|
|
Investment in convertible note receivable converted into
marketable security
|
|
|
-
|
|
|
|
(15,547,454)
|
|
Change in assets and
liabilities
|
|
|
|
|
|
|
|
|
Prepaid expenses and other assets
|
|
|
280,208
|
|
|
|
710,163
|
|
Digital assets, net
|
|
|
(500,000)
|
|
|
|
-
|
|
Accounts payable and accrued expenses
|
|
|
(136,430)
|
|
|
|
157,514
|
|
Advances (repayments) from related party
|
|
|
252,580
|
|
|
|
200,749
|
|
Lease liability payments
|
|
|
(30,242)
|
|
|
|
(24,971)
|
|
Income tax payable
|
|
|
(326,178)
|
|
|
|
3,484
|
|
Income tax receivable
|
|
|
(143,822)
|
|
|
|
-
|
|
Net cash provided by (used in) operating
activities
|
|
|
(528,304)
|
|
|
|
4,970,943
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net
collections of finance receivables - original product
|
|
|
(6,550)
|
|
|
|
14,206
|
|
Net
collections of finance receivables - special product
|
|
|
(1,948)
|
|
|
|
(1,020)
|
|
Payments for real estate assets owned
|
|
|
-
|
|
|
|
(62,432)
|
|
Deposit for mining equipment
|
|
|
(7,118,572)
|
|
|
|
-
|
|
Investment in convertible note receivable
|
|
|
-
|
|
|
|
(1,666,500)
|
|
Loan to purchase securities
|
|
|
-
|
|
|
|
1,784,250
|
|
Investment in note receivable - related party
|
|
|
(310,000)
|
|
|
|
-
|
|
Repayment of loan to purchase securities
|
|
|
-
|
|
|
|
(1,784,250)
|
|
Investment in unconsolidated affiliate
|
|
|
-
|
|
|
|
(5,738,000)
|
|
Net cash (used in) provided by investing
activities
|
|
|
(7,437,070)
|
|
|
|
(7,453,746)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Principal repayments
|
|
|
-
|
|
|
|
(343,687)
|
|
Insurance financing repayments
|
|
|
(57,344)
|
|
|
|
(468,061)
|
|
Exercise of warrants
|
|
|
-
|
|
|
|
9,544,623
|
|
Net cash provided by (used in) financing
activities
|
|
|
(57,344)
|
|
|
|
8,732,875
|
|
NET INCREASE (DECREASE)
IN CASH
|
|
|
(8,022,718)
|
|
|
|
6,250,072
|
|
CASH - BEGINNING OF
YEAR
|
|
|
32,559,185
|
|
|
|
11,552,943
|
|
CASH - END OF YEAR
|
|
$
|
24,536,467
|
|
|
$
|
17,803,015
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF NON-CASHFLOW
INFORMATION
|
|
|
|
|
|
|
|
|
ROU
assets and operating lease obligation recognized
|
|
$
|
300,787
|
|
|
$
|
-
|
|
SUPPLEMENTAL DISCLOSURES OF CASHFLOW
INFORMATION
|
|
|
|
|
|
|
|
|
Cash paid for taxes
|
|
$
|
470,000
|
|
|
|
-
|
|
View original
content:https://www.prnewswire.com/news-releases/lm-funding-america-inc-reports-first-quarter-2022-financial-results-301548270.html
SOURCE LM Funding America