Mined 423.4 Bitcoins in 2023 Valued at Approximately
Market Revenue Value of Approximately
Held 153.6 Bitcoin at
Conference Call to Be Held Today at
Operational Highlights
- Approximately 5,900 Bitcoin mining machines in operation at hosting sites as of
December 31, 2023 - Mined 423.4 Bitcoin in 2023, which generated approximately
$12.3 million in revenue based on the$29,000 average price of Bitcoin in 2023 - As of
December 31, 2023 , held 95.1 Bitcoin valued at approximately$3.4 million - As of
February 29, 2024 , held 153.6 Bitcoin valued at approximately$10.8 million based on recent Bitcoin price of approximately$70,000 - Revenue for the three and twelve months ended
December 31, 2023 , increased approximately 262% and 648%, respectively over the same periods last year - Net loss for the three months ended
December 31, 2023 , was$1.6 million as compared to$19.7 million for the 2022 comparable quarter. - Achieved positive Core EBITDA (defined below) of
$345 thousand for the three months endedDecember 31, 2023 , compared to a Core EBITDA loss of$1.7 million for the same period last year. Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net loss is set forth below in this press release.
Financial Highlights
- Total revenue for the fourth quarter ended
December 31, 2023 , was approximately$4.1 million , an increase of$2.9 million , or approximately 262%, compared to$1.1 million for the fourth quarter of 2022. Total revenue for the year endedDecember 31, 2023 , was approximately$13.0 million , an increase of$11.3 million , or more than 648%, from$1.7 million in 2022. These increases were primarily due to digital mining revenue of$3.9 million and$12.3 million in the three months and year endedDecember 31, 2023 , compared with$0.9 million of digital mining revenue for both comparable periods in 2022 as the Company commenced our Bitcoin mining operations inSeptember 2022 . The average BTC price for the three and twelve months endedDecember 31, 2023 used for purposes of recognizing as revenue was approximately$36,500 and$29,000 , respectively. - Net loss attributable to LM Funding shareholders for the three months ended
December 31, 2023 , was approximately$1.6 million , which included a$0.5 million non-cash, unrealized gain on investment and equity securities, and a$0.8 million impairment on our previously owned Symbiont assets, compared to a net loss of approximately$19.7 million for the 2022 comparable quarter, which included a$6.6 million non-cash, unrealized loss on investment and equity securities and a$1.1 million impairment on our Symbiont assets. Net loss attributable to LM Funding shareholders for the year endedDecember 31, 2023 , was approximately$15.9 million , which included a$9.8 million non-cash, unrealized loss on investment and equity securities, and a$0.8 million impairment on our previously owned Symbiont assets, compared to a net loss of approximately$29.2 million for the year endedDecember 31, 2022 , which included a$4.4 million non-cash, unrealized gain on investment and equity securities, and a$1.1 million impairment on the Symbiont assets. - Positive Core EBITDA for the three months ended
December 31, 2023 , totaled approximately$0.3 million compared to a Core EBITDA loss of$1.7 million in the prior year's comparable quarter. Core EBITDA loss for the twelve months endedDecember 31, 2023 , totaled approximately$0.2 million , compared with Core EBITDA loss of$6.5 million in 2022. The improvements in Core EBITDA for the three and twelve-month periods endedDecember 31, 2023 , were primarily due to the existence of material Bitcoin mining operations in the current year that did not exist in the prior year. Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net loss is set forth below in this press release. - Cash was approximately
$2.4 million , with digital assets of$3.4 million , and working capital of$7.4 million as ofDecember 31, 2023 , based on 95.1 BTC at a price of approximately$36,000 as ofDecember 31, 2023 . The current BTC market price has fluctuated between$62,000 and$73,000 in recent weeks. In 2023, the Company also received approximately$2.7 million fromSeaStar Medical Holdings as a partial repayment of their outstanding note receivable. - Total LM Funding stockholders’ equity was approximately
$36.2 million , or$14.52 per share, as ofDecember 31, 2023 (with the per-share amount calculated as LMFA stockholders’ equity divided by approximately 2,492,964 shares outstanding as ofDecember 31 , 2023).
Investor Conference Call
LM Funding will host a conference call today,
The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for
A webcast replay will be available on the investor relations section of the Company’s website at https://www.lmfunding.com/investors/news-events/ir-calendar through
About
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 guaranties 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
Contact:
Tel: (212) 671-1020
Email: LMFA@crescendo-ir.com
(tables follow)
2023 | 2022 | |||||||
Assets | ||||||||
Cash | $ | 2,401,831 | $ | 4,238,006 | ||||
Digital Assets (Note 2) | 3,416,256 | 888,026 | ||||||
Finance receivables | 19,221 | 26,802 | ||||||
Marketable securities (Note 5) | 17,860 | 4,290 | ||||||
Notes receivable from | - | 3,807,749 | ||||||
Receivable from sale of Symbiont assets | 200,000 | - | ||||||
Prepaid expenses and other assets | 4,067,212 | 1,233,322 | ||||||
Income tax receivable | 31,187 | 293,466 | ||||||
Current assets | 10,153,567 | 10,491,661 | ||||||
Fixed assets, net (Note 3) | 24,519,610 | 27,272,374 | ||||||
Deposits on mining equipment (Note 4) | 20,837 | 525,219 | ||||||
Hosting services deposits (Note 4) | - | 2,200,452 | ||||||
Notes receivable from | 1,440,498 | - | ||||||
Long-term investments - debt security (Note 5) | - | 2,402,542 | ||||||
Less: Allowance for losses on debt security (Note 5) | - | (1,052,542 | ) | |||||
Long-term investments - debt security, net (Note 5) | - | 1,350,000 | ||||||
Long-term investments - equity securities (Note 5) | 156,992 | 464,778 | ||||||
Investment in | 1,145,486 | 10,608,750 | ||||||
Operating lease - right of use assets (Note 7) | 189,009 | 265,658 | ||||||
Other assets | 86,798 | 10,726 | ||||||
Long-term assets | 27,559,230 | 42,697,957 | ||||||
Total assets | $ | 37,712,797 | $ | 53,189,618 | ||||
Liabilities and stockholders' equity | ||||||||
Accounts payable and accrued expenses | 2,064,909 | 1,570,906 | ||||||
Note payable - short-term (Note 6) | 567,586 | 475,775 | ||||||
Due to related parties (Note 9) | 22,845 | 75,488 | ||||||
Current portion of lease liability (Note 7) | 110,384 | 90,823 | ||||||
Total current liabilities | 2,765,724 | 2,212,992 | ||||||
Lease liability - net of current portion (Note 7) | 85,775 | 179,397 | ||||||
Long-term liabilities | 85,775 | 179,397 | ||||||
Total liabilities | 2,851,499 | 2,392,389 | ||||||
Stockholders' equity (Note 10) | ||||||||
Preferred stock, par value | - | - | ||||||
Common stock, par value | 2,493 | 2,233 | ||||||
Additional paid-in capital | 95,145,376 | 92,206,200 | ||||||
Accumulated deficit | (58,961,461 | ) | (43,017,207 | ) | ||||
Total | 36,186,408 | 49,191,226 | ||||||
Non-controlling interest | (1,325,110 | ) | 1,606,003 | |||||
Total stockholders' equity | 34,861,298 | 50,797,229 | ||||||
Total liabilities and stockholders' equity | $ | 37,712,797 | $ | 53,189,618 | ||||
Three Months Ended | Years Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenues: | ||||||||||||||||
Digital mining revenues | $ | 3,946,485 | $ | 903,403 | $ | 12,289,131 | $ | 945,560 | ||||||||
Specialty finance revenue | 75,901 | 175,853 | 550,445 | 626,773 | ||||||||||||
Rental revenue | 33,028 | 41,378 | 144,514 | 161,618 | ||||||||||||
Total revenues | 4,055,414 | 1,120,634 | 12,984,090 | 1,733,951 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||
Digital mining cost of revenues (exclusive of depreciation and amortization shown below) | 2,668,770 | 994,266 | 9,406,940 | 1,033,226 | ||||||||||||
Staff costs and payroll | 1,121,796 | 6,536,291 | 5,858,736 | 19,422,723 | ||||||||||||
Professional fees | 634,535 | 637,465 | 1,863,038 | 3,158,446 | ||||||||||||
Settlement costs with associations | - | - | 10,000 | 160 | ||||||||||||
Selling, general and administrative | 168,632 | 188,749 | 851,806 | 635,268 | ||||||||||||
Real estate management and disposal | 19,105 | 34,012 | 146,716 | 110,465 | ||||||||||||
Depreciation and amortization | 1,495,614 | 434,302 | 4,983,480 | 478,020 | ||||||||||||
Collection costs | 12,342 | (5,524 | ) | 29,875 | (12,213 | ) | ||||||||||
Impairment loss on mined digital assets | 143,317 | 78,924 | 965,967 | 79,794 | ||||||||||||
Realized gain on sale of mined digital assets | (738,526 | ) | - | (2,070,508 | ) | - | ||||||||||
Other operating costs | 295,569 | 1,229,749 | 999,959 | 1,504,047 | ||||||||||||
Total operating costs and expenses | 5,821,154 | 10,128,234 | 23,046,009 | 26,409,936 | ||||||||||||
Operating loss | (1,765,740 | ) | (9,007,600 | ) | (10,061,919 | ) | (24,675,985 | ) | ||||||||
Realized gain (loss) on securities | 2,632 | - | 4,420 | (349,920 | ) | |||||||||||
Realized gain on convertible debt securities | - | - | - | 287,778 | ||||||||||||
Unrealized gain (loss) on marketable securities | 7,134 | (19,930 | ) | 13,570 | (56,830 | ) | ||||||||||
Impairment loss on prepaid machine deposits | - | (3,150,000 | ) | (36,691 | ) | (3,150,000 | ) | |||||||||
Impairment loss on prepaid hosting deposits | (184,236 | ) | (1,790,712 | ) | (184,236 | ) | (1,790,712 | ) | ||||||||
Impairment loss on Symbiont assets | - | (1,052,542 | ) | (750,678 | ) | (1,052,542 | ) | |||||||||
Unrealized gain (loss) on investment and equity securities | 546,563 | (6,610,843 | ) | (9,771,050 | ) | 4,423,985 | ||||||||||
Impairment loss on digital assets | - | (63,935 | ) | - | (467,406 | ) | ||||||||||
Realized gain on sale of purchased digital assets | - | 20,254 | 1,917 | 20,254 | ||||||||||||
Loss on disposal of assets | (9,389 | ) | (38,054 | ) | (9,389 | ) | (38,054 | ) | ||||||||
Digital assets other income | - | - | 5,658 | |||||||||||||
Other income - coupon sales | - | - | 639,472 | - | ||||||||||||
Gain on adjustment of note receivable allowance | - | - | 1,052,542 | - | ||||||||||||
Other income - finance revenue | - | - | 37,660 | - | ||||||||||||
Dividend income | - | - | - | 3,875 | ||||||||||||
Interest income, net | 38,705 | 129,731 | 249,586 | 394,678 | ||||||||||||
Credit loss | 22,344 | - | - | - | ||||||||||||
Loss before income taxes | (1,341,987 | ) | (21,583,631 | ) | (18,814,796 | ) | (26,445,221 | ) | ||||||||
Income tax expense | (60,571 | ) | (126,388 | ) | (60,571 | ) | (1,438,066 | ) | ||||||||
Net Loss | $ | (1,402,558 | ) | $ | (21,710,019 | ) | $ | (18,875,367 | ) | $ | (27,883,287 | ) | ||||
Less: loss (income) attributable to non-controlling interest | (189,208 | ) | 2,016,385 | 2,931,113 | (1,356,914 | ) | ||||||||||
Net loss attributable to | $ | (1,591,766 | ) | $ | (19,693,634 | ) | $ | (15,944,254 | ) | $ | (29,240,201 | ) | ||||
Basic loss per common share | $ | (0.67 | ) | $ | (8.82 | ) | $ | (6.98 | ) | $ | (13.10 | ) | ||||
Diluted loss per common share | $ | (0.67 | ) | $ | (8.82 | ) | $ | (6.98 | ) | $ | (13.10 | ) | ||||
Weighted average number of common shares outstanding | ||||||||||||||||
Basic | 2,362,964 | 2,231,681 | 2,283,836 | 2,231,681 | ||||||||||||
Diluted | 2,362,964 | 2,231,681 | 2,283,836 | 2,231,681 | ||||||||||||
Years ended | ||||||||
2023 | 2022 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (18,875,367 | ) | $ | (27,883,287 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
Depreciation and amortization | 4,983,480 | 478,020 | ||||||
Noncash lease expense | 98,536 | 95,098 | ||||||
Stock compensation | 1,095,705 | 1,098,331 | ||||||
Stock option expense | 1,843,731 | 16,571,978 | ||||||
Accrued investment income | (159,692 | ) | (392,412 | ) | ||||
Accrued recovery of legal fees | - | (55,364 | ) | |||||
Impairment loss on digital assets | 965,967 | 547,200 | ||||||
Impairment loss on mining machine deposits | 36,691 | 3,150,000 | ||||||
Impairment loss on hosting deposits | 184,236 | 1,790,712 | ||||||
Impairment loss on Symbiont assets | 750,678 | - | ||||||
Unrealized loss (gain) on marketable securities | (13,570 | ) | 56,830 | |||||
Unrealized loss (gain) on investment and equity securities | 9,771,050 | (4,423,985 | ) | |||||
Loss on disposal of fixed assets | 9,389 | 38,054 | ||||||
Realized loss (gain) on securities | (4,420 | ) | 349,920 | |||||
Realized gain on convertible note receivable | - | (287,778 | ) | |||||
Realized gain on sale of digital assets | (2,072,425 | ) | (20,254 | ) | ||||
Proceeds from securities | 744,036 | 2,565,893 | ||||||
Convertible debt and interest converted into marketable securities | - | 844,882 | ||||||
Investments in marketable securities | (739,616 | ) | (844,882 | ) | ||||
(Reversal of) allowance loss on debt security | (1,052,542 | ) | 1,052,542 | |||||
Change in operating assets and liabilities: | ||||||||
Prepaid expenses and other assets | 189,407 | 651,472 | ||||||
Hosting deposits | (36,691 | ) | (3,202,764 | ) | ||||
Repayments to related party | (52,643 | ) | (45,732 | ) | ||||
Accounts payable and accrued expenses | 177,478 | 393,260 | ||||||
Mining of digital assets | (12,289,131 | ) | (945,560 | ) | ||||
Proceeds from sale of digital assets | 10,874,701 | - | ||||||
Lease liability payments | (95,948 | ) | (98,569 | ) | ||||
Income tax receivable | 262,279 | (293,466 | ) | |||||
Deferred taxes and taxes payable | - | (326,178 | ) | |||||
Net cash used in operating activities | (3,404,681 | ) | (9,136,039 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Net collections of finance receivables - original product | (6,428 | ) | 13,993 | |||||
Net collections of finance receivables - special product | 14,009 | (12,602 | ) | |||||
Capital expenditures | (1,625,284 | ) | (15,382 | ) | ||||
Investment in notes receivable - | (125,000 | ) | (3,753,090 | ) | ||||
Collection of notes receivable | 2,651,943 | - | ||||||
Investment in digital assets | (35,157 | ) | (988,343 | ) | ||||
Proceeds from sale of purchased digital assets | 27,815 | 518,931 | ||||||
Financing activities for Symbiont asset acquisition | (402,361 | ) | - | |||||
Symbiont asset sale | 1,800,000 | - | ||||||
Deposits for mining equipment | - | (14,649,614 | ) | |||||
Net cash from (used in) investing activities | 2,299,537 | (18,886,107 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Loan principal and insurance financing repayments | (624,481 | ) | (299,033 | ) | ||||
Issue costs from the issuance of common stock | (106,550 | ) | - | |||||
Net cash used in financing activities | (731,031 | ) | (299,033 | ) | ||||
(1,836,175 | ) | (28,321,179 | ) | |||||
CASH - BEGINNING OF PERIOD | 4,238,006 | 32,559,185 | ||||||
CASH - END OF PERIOD | $ | 2,401,831 | $ | 4,238,006 | ||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
Insurance financing | $ | 716,292 | $ | 660,120 | ||||
ROU assets and operating lease obligation recognized | $ | 21,887 | $ | 300,787 | ||||
Reclassification of mining equipment deposit to fixed assets, net | $ | 1,177,226 | $ | 26,961,095 | ||||
Capital expenditures in accrued liabilities | $ | 1,035,374 | $ | 718,416 | ||||
Reclassification of Reverse stock split | $ | 10,859 | $ | - | ||||
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION | ||||||||
Cash paid for taxes | $ | - | $ | 2,057,710 | ||||
Cash paid for interest | $ | - | $ | - | ||||
NON-GAAP FINANCIAL INFORMATION (unaudited)
Our reported results are presented in accordance with
The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:
Years Ended | Three Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net income (loss) | $ | (18,875,367 | ) | $ | (27,883,287 | ) | $ | (1,402,558 | ) | $ | (21,710,019 | ) | |||||
Income tax expense | 60,571 | 1,438,066 | 60,571 | 126,388 | |||||||||||||
Interest expense | - | 4,416 | - | 4,416 | |||||||||||||
Depreciation and amortization | 4,983,480 | 478,020 | 1,495,614 | 434,302 | |||||||||||||
Income (loss) before interest, taxes & depreciation | $ | (13,831,316 | ) | $ | (25,962,785 | ) | $ | 153,627 | $ | (21,144,913 | ) | ||||||
Unrealized loss (gain) on investment and equity securities | 9,771,050 | (4,423,985 | ) | (546,563 | ) | 6,610,843 | |||||||||||
Realized gain on convertible debt securities | - | (287,778 | ) | - | - | ||||||||||||
Impairment loss on prepaid mining machine deposits | 36,691 | 3,150,000 | - | 3,150,000 | |||||||||||||
Impairment loss on mined digital assets | 965,967 | 79,794 | 143,317 | 78,924 | |||||||||||||
Impairment loss on digital assets | - | 467,406 | - | 63,935 | |||||||||||||
Impairment loss on Symbiont assets | 750,678 | 1,052,542 | - | 1,052,542 | |||||||||||||
Gain on adjustment of note receivable allowance | (1,052,542 | ) | - | - | - | ||||||||||||
Impairment loss on prepaid hosting deposits | 184,236 | 1,790,712 | 184,236 | 1,790,712 | |||||||||||||
Stock compensation and option expense | 2,939,436 | 17,670,309 | 410,584 | 6,725,592 | |||||||||||||
Core income (loss) before interest, taxes & depreciation | $ | (235,800 | ) | $ | (6,463,785 | ) | $ | 345,201 | $ | (1,672,365 | ) |
Source:
2024 GlobeNewswire, Inc., source