LM Funding America(US:LMFA)2025-05-15 21:00Bitcoin 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, 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 $94 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 $1.3 million to $1.4 million for the three months ended March 31, 2025, from $2.7 million in 2024[169]. Financial Performance - Total revenue for the three months ended March 31, 2025, decreased by $2.3 million to $2.4 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, 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 $5.4 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 $5,406,999 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, down from a profit of $4,427,960 in Q1 2024[191]. - Operating expenses increased by $3.8 million to $7.5 million for the three months ended March 31, 2025, up from $3.7 million in 2024[168]. - Cash and cash equivalents decreased to $1.03 million as of March 31, 2025, from $3.38 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 $3.7 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 $13.2 million[155]. - The Bitcoin price range for the quarter ended March 31, 2025, was between $76,555 and $109,358, 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 $4.3 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 $1.4 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 $1,350,979 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 $70,826 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 $1,976,196 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].