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LM Funding America(LMFA) - 2025 Q1 - Quarterly Report
LMFALM Funding America(LMFA)2025-05-15 21:00
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Bitcoin Mining Performance - The company mined 24.3 Bitcoin in the three months ended March 31, 2025, down from 86.4 Bitcoin in the same period of 2024[159]. - The average revenue per Bitcoin mined during the three months ended March 31, 2025, was 93,578,comparedto93,578, compared to 53,217 in the same period of 2024, representing an increase of 76%[159]. - The cost of mining one Bitcoin, including miner-related depreciation, was 149% of the average Bitcoin mining revenue for the three months ended March 31, 2025, compared to 101% in 2024[159]. - The company mined 24.3 Bitcoin at an average price of approximately 94thousandduringthethreemonthsendedMarch31,2025,comparedto86.4Bitcoinatanaveragepriceofapproximately94 thousand during the three months ended March 31, 2025, compared to 86.4 Bitcoin at an average price of approximately 53 thousand in 2024[167]. - Bitcoin mining costs decreased by 1.3millionto1.3 million to 1.4 million for the three months ended March 31, 2025, from 2.7millionin2024[169].FinancialPerformance−TotalrevenueforthethreemonthsendedMarch31,2025,decreasedby2.7 million in 2024[169]. Financial Performance - Total revenue for the three months ended March 31, 2025, decreased by 2.3 million to 2.4millionfrom2.4 million from 4.7 million for the same period in 2024[166]. - The company’s digital mining revenues for the three months ended March 31, 2025, were 2,273,940,adecreasefrom2,273,940, a decrease from 4,597,908 in the same period of 2024[159]. - The net loss for the three months ended March 31, 2025, was 5.4million,comparedtoanetincomeof5.4 million, compared to a net income of 1.9 million for the same period in 2024[176]. - For the three months ended March 31, 2025, the company reported a net loss of 5,406,999comparedtoanetincomeof5,406,999 compared to a net income of 2,353,838 in the same period of 2024[191]. - Core income before interest, taxes, and depreciation for Q1 2025 was a loss of 2,824,945,downfromaprofitof2,824,945, down from a profit of 4,427,960 in Q1 2024[191]. - Operating expenses increased by 3.8millionto3.8 million to 7.5 million for the three months ended March 31, 2025, up from 3.7millionin2024[168].−Cashandcashequivalentsdecreasedto3.7 million in 2024[168]. - Cash and cash equivalents decreased to 1.03 million as of March 31, 2025, from 3.38millionattheendof2024[181].−Thecompanyhadworkingcapitalof3.38 million at the end of 2024[181]. - The company had working capital of 8.3 million as of March 31, 2025, reflecting a decrease of 3.7millionsinceDecember31,2024[179].AssetValuationandMarketConditions−AsofMarch31,2025,thecompanyheldapproximately160.2Bitcoinwithacarryingvalueof3.7 million since December 31, 2024[179]. Asset Valuation and Market Conditions - As of March 31, 2025, the company held approximately 160.2 Bitcoin with a carrying value of 14.5 million and a fair value of 13.2million[155].−TheBitcoinpricerangeforthequarterendedMarch31,2025,wasbetween13.2 million[155]. - The Bitcoin price range for the quarter ended March 31, 2025, was between 76,555 and 109,358,reflectingsignificantvolatilityinthemarket[153].−Thefairmarketadjustmentonmineddigitalassetsresultedinalossof109,358, reflecting significant volatility in the market[153]. - The fair market adjustment on mined digital assets resulted in a loss of 1.8 million for the three months ended March 31, 2025, compared to a gain of 4.3millionin2024[168].−Thecompanyrecognizedanunrealizedlossonsecuritiesof4.3 million in 2024[168]. - The company recognized an unrealized loss on securities of 26 thousand for the three months ended March 31, 2025, compared to an unrealized gain of 1.4millionin2024[173].−Thecompanyreportedanunrealizedlossoninvestmentandequitysecuritiesof1.4 million in 2024[173]. - The company reported an unrealized loss on investment and equity securities of 25,984 in Q1 2025, contrasting with an unrealized gain of 1,350,979inQ12024[191].OperationalCapacityandManagement−Thecompanyhasatotalhashingcapacityofapproximately0.612EH/swith5,600miningmachinesasofMarch31,2025[156].−Thecompanyhasa15MWhostingsiteinOklahomawith4,320installedS19JProAntminermachines,increasingitstotalprojectedhashrateto432PH[157].−Thecompany’smanagementactivelymanagesenergyconsumptiontoincreaseprofitability,withcurtailmentdecisionsmadeinreal−timebasedonpowerpricesandBitcoinvalue[162].FutureOutlook−ThenextBitcoinhalvingeventisanticipatedtooccuraroundApril2028,whichmaysignificantlyimpactBitcoinpricesandminingprofitability[148].AccountingandReporting−TherewerenocriticalaccountingestimatesforthethreemonthsendedMarch31,2025,indicatingstabilityinfinancialreportingpractices[192].−Thecompanyhasnotmadeanymaterialchangestoitscriticalaccountingpoliciesandestimatescomparedtothepreviousannualreport[193].−Therearenooff−balancesheetarrangementsreportedbythecompany,reflectingastraightforwardfinancialstructure[195].−Asasmallerreportingcompany,thecompanyisnotrequiredtodisclosequantitativeandqualitativemarketriskinformation[196].InterestandDepreciation−Interestexpenseincreasedto1,350,979 in Q1 2024[191]. Operational Capacity and Management - The company has a total hashing capacity of approximately 0.612 EH/s with 5,600 mining machines as of March 31, 2025[156]. - The company has a 15 MW hosting site in Oklahoma with 4,320 installed S19 J Pro Antminer machines, increasing its total projected hashrate to 432 PH[157]. - The company’s management actively manages energy consumption to increase profitability, with curtailment decisions made in real-time based on power prices and Bitcoin value[162]. Future Outlook - The next Bitcoin halving event is anticipated to occur around April 2028, which may significantly impact Bitcoin prices and mining profitability[148]. Accounting and Reporting - There were no critical accounting estimates for the three months ended March 31, 2025, indicating stability in financial reporting practices[192]. - The company has not made any material changes to its critical accounting policies and estimates compared to the previous annual report[193]. - There are no off-balance sheet arrangements reported by the company, reflecting a straightforward financial structure[195]. - As a smaller reporting company, the company is not required to disclose quantitative and qualitative market risk information[196]. Interest and Depreciation - Interest expense increased to 220,906 in Q1 2025 from 70,826inQ12024,indicatingasignificantriseinborrowingcosts[191].−Depreciationandamortizationexpensesroseto70,826 in Q1 2024, indicating a significant rise in borrowing costs[191]. - Depreciation and amortization expenses rose to 2,037,578 in Q1 2025, compared to 1,976,196inQ12024[191].−Thecompanyincurreda1,976,196 in Q1 2024[191]. - The company incurred a 1.2 million impairment on mining equipment during the three months ended March 31, 2024, with no impairment loss reported for the same period in 2025[171].