LM Funding America(US:LMFA)2026-03-31 12:00Revenue Performance - Total revenues for the year ended December 31, 2025, decreased by approximately $2.2 million to approximately $8.8 million from approximately $11.0 million in 2024[286]. - Bitcoin mining revenues decreased to approximately $8.3 million for the year ended December 31, 2025, down from $10.4 million in 2024[287]. - Specialty finance revenues increased by 2.0% to approximately $452 thousand in 2025 compared to approximately $444 thousand in 2024[289]. Bitcoin Mining Operations - The company held approximately 211 Bitcoin as of December 31, 2025, compared to 150 Bitcoin as of December 31, 2024[274]. - The average revenue per Bitcoin mined increased to $100,649 in 2025 from $61,152 in 2024[279]. - The direct costs to mine one Bitcoin, including miner-related depreciation, were $156,522 in 2025, compared to $86,290 in 2024[279]. - Bitcoin mining revenues decreased to 82.3 Bitcoin with an average price of approximately $102 thousand in 2025, down from 170.6 Bitcoin at approximately $61 thousand in 2024, primarily due to the halving in April 2024 and 4,000 mining machines being offline[288]. - The company owned approximately 7,200 machines with a total hashing capacity of approximately 0.75 EH/s as of December 31, 2025, up from 5,840 machines with 0.63 EH/s in 2024[275]. - The company’s Bitcoin treasury strategy involves retaining a majority of its Bitcoin and acquiring new Bitcoin through mining operations[269]. - The company’s mining operations are subject to significant risks, including volatility in Bitcoin prices and changes in energy costs[270]. Financial Losses - The operating loss for the year ended December 31, 2025, was $22.9 million, compared to a loss of $6.5 million in 2024[286]. - The company recorded a net loss attributable to common shareholders of $28.5 million for the year ended December 31, 2025, compared to $14.1 million in 2024[286]. - The net loss attributable to LM Funding America, Inc. was approximately $26.9 million in 2025, compared to a net loss of approximately $7.3 million in 2024[312]. - The company reported a net loss of $26,975,191 for the year ended December 31, 2025, compared to a net loss of $7,655,432 in 2024, indicating a significant increase in losses[327]. - Core loss before interest, taxes, and depreciation for 2025 was $10,912,674, a decline from a core income of $4,076,871 in 2024, highlighting deteriorating operational performance[327]. Operating Costs and Expenses - Operating costs and expenses rose by approximately $14.2 million, or 81.1%, to approximately $31.7 million in 2025 from approximately $17.5 million in 2024, driven by increased fair market value loss on digital assets and staff costs[290]. - Bitcoin mining costs of revenues were approximately $5.8 million, or 69.9% of digital mining revenues in 2025, compared to approximately $7.0 million, or 67%, in 2024[291]. - The company incurred a $5.4 million impairment on mining equipment in 2025, up from $1.4 million in 2024, primarily related to machines to be held and used[300]. - The company incurred an impairment loss on mining equipment of $5,391,857 in 2025, compared to $1,379,375 in 2024, indicating increased challenges in asset valuation[327]. Cash and Debt Management - As of December 31, 2025, the company had $1.4 million in cash and cash equivalents and $18.5 million in digital assets, compared to $3.4 million and $14.0 million, respectively, in 2024[314]. - The company raised $27.3 million in net proceeds from equity financing transactions in 2025, compared to $6.9 million in 2024[319]. - Net cash used in operations was approximately $14.0 million in 2025, compared to $11.9 million in 2024[321]. - Total outstanding debt as of December 31, 2025, amounted to $19,860,252, up from $6,751,657 in 2024, reflecting a substantial increase in financial obligations[325]. - The company paid $734,000 in principal and financing repayments during the year ended December 31, 2025, compared to $709,000 in 2024, showing a slight increase in repayment activity[325]. - Minimum required principal payments on the company's debt for 2026 are projected to be $18,056,511, with an additional $2,000,000 due in 2027[325]. - The company reported an interest expense of $1,124,685 for 2025, up from $443,700 in 2024, indicating rising costs associated with debt[327]. - The annualized interest rates on various financing agreements range from 8.6% to 12%, reflecting the cost of borrowing for the company[325]. Financial Reporting and Accounting - The company does not have any off-balance sheet arrangements, which may simplify financial reporting and risk assessment[329]. - There are no critical accounting estimates for the years ended December 31, 2025 or 2024, suggesting stability in accounting practices[328].