LM Funding America Reports Mixed Financial Results for Q3 and Nine Months Ended September 30, 2024

LM Funding America, Inc. (LMFA) reported its financial results for the three and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, total revenues decreased to $1.3 million from $3.4 million in Q3 2023. Digital mining revenues fell to $1.1 million, down from $3.3 million, while the specialty finance segment generated $97,557, a decline from $136,035 in the prior year. The company reported an operating loss of $4.4 million for the quarter, compared to a loss of $3.2 million in Q3 2023. The net loss attributable to common shareholders increased to $6.4 million, up from $4.4 million in the same quarter last year.

For the nine months ended September 30, 2024, total revenues rose slightly to $9.0 million from $8.9 million in 2023. Digital mining revenue increased to $8.6 million, compared to $8.3 million in the prior year, while specialty finance revenue decreased to $396,000 from $586,000. The operating loss for the nine-month period was $8.6 million, slightly higher than the $8.3 million loss reported in 2023. However, the net loss before income taxes improved significantly to $9.5 million from $17.5 million in the previous year.

The company’s cash position improved markedly, with cash and cash equivalents totaling $5.9 million as of September 30, 2024, compared to $2.4 million at the end of 2023. Total liquidity increased to $9.9 million from $5.8 million. The company reported net cash used in operating activities of $8.7 million for the nine months, a significant increase from $2.6 million in 2023, primarily due to the reclassification of $6.8 million in Bitcoin proceeds from mining as investing activities.

Strategically, LMFA has continued to expand its mining operations, with approximately 5,900 machines capable of producing over 639 EH/s of computing power. The company also engaged in significant financing activities, raising $2.3 million from equity offerings and $6.4 million from borrowings during the nine-month period. Notably, the company entered into a $5 million senior secured term loan in August 2024, secured by Bitcoin.

The company’s financial health reflects ongoing challenges in the cryptocurrency market, but it has made strides in improving liquidity and managing operational costs. The adoption of new accounting standards has also impacted the reporting of digital assets, contributing to a more favorable assessment of the company's financial position.