Revenue Performance - Total revenues for the year ended December 31, 2024, decreased by approximately $2.0 million to approximately $11.0 million from approximately $13.0 million in 2023[264]. - Bitcoin mining revenues decreased to approximately $10.4 million for the year ended December 31, 2024, down from $12.3 million in 2023[264]. - Specialty finance revenues for the year ended December 31, 2024, were approximately $444,000, representing a decrease of 19.4% compared to approximately $550,000 in 2023[266]. Bitcoin Mining Operations - The company mined 170.6 Bitcoin in 2024 with an average Bitcoin price of approximately $61,000, compared to 423.4 Bitcoin at an average price of approximately $29,000 in 2023[265]. - Bitcoin mining costs of revenues for 2024 were approximately $7.0 million, or 67% of digital mining revenues, compared to approximately $9.4 million, or 77%, in 2023[268]. - The company generated $10.4 million from Bitcoin mining operations in 2024, down from $12.3 million in 2023, with cash used in operations increasing to approximately $11.9 million in 2024 from $3.4 million in 2023[300]. Financial Position - The company held approximately 150 Bitcoin as of December 31, 2024, with a carrying value of approximately $14.0 million, compared to 95 Bitcoin valued at approximately $3.4 million in 2023[252]. - The company had cash and cash equivalents of $3.4 million and digital assets valued at $14.0 million as of December 31, 2024, an increase from $2.4 million and $3.4 million, respectively, as of December 31, 2023[294]. - The company's total outstanding debt as of December 31, 2024, is $6,751,657, an increase from $567,586 in 2023[303]. Loss and Impairment - The company recorded a net loss attributable to common shareholders of approximately $14.1 million for the year ended December 31, 2024, compared to a net loss of approximately $15.9 million in 2023[263]. - The company incurred a $1.4 million impairment loss on mining equipment for the year ended December 31, 2024, compared to nil for the year ended December 31, 2023[277]. - The company incurred $1,379,375 in impairment loss on mining equipment during 2024[306]. Financing and Interest - The company raised $6.9 million in net proceeds from equity financing transactions during the year ended December 31, 2024, compared to nil in 2023[298]. - The company reported an annualized interest expense of $443,700 for the year ended December 31, 2024[306]. - Annualized interest rates on various financing agreements range from 9.35% to 12%[303]. Other Financial Metrics - Core income before interest, taxes, and depreciation for 2024 was $3,940,771, a significant improvement from a loss of $235,800 in 2023[306]. - The company recognized a gain on the fair value of Bitcoin of $7.4 million for the year ended December 31, 2024, compared to nil for the year ended December 31, 2023[274]. - The company recognized an unrealized loss on investment and equity securities of approximately $1.1 million for the year ended December 31, 2024, compared to an unrealized loss of approximately $9.8 million for the year ended December 31, 2023[282]. Debt Obligations - Minimum required principal payments on the company's debt for 2025 are $386,312 and for 2026 are $6,500,000, totaling $6,886,312[303]. - The company paid $709,000 in principal and financing repayments during the year ended December 31, 2024, compared to $624,000 in 2023[303]. Miscellaneous - The company has no off-balance sheet arrangements[308]. - There are no critical accounting estimates for the year ended December 31, 2024[307].
LM Funding America(LMFA) - 2024 Q4 - Annual Report