LM Funding America(US:LMFA)2022-08-17 16:47Financial Data and Key Metrics Changes - Revenues for Q2 2022 totaled $234,000, a decrease from $328,000 in Q2 2021, reflecting the timing of association fee payouts [15] - Operating expenses increased to $5.6 million in Q2 2022 from $642,000 in Q2 2021, primarily due to noncash stock compensation and professional fees [15] - Net income attributed to shareholders was $2.8 million in Q2 2022, down from $11.1 million in Q2 2021, which included significant realized and unrealized gains [15] Business Line Data and Key Metrics Changes - The bitcoin mining strategy is progressing well, with nearly 2,900 mining machines operational and a target of over 5,000 by Q4 2022, aiming for a capacity of approximately 504 petahash [9][10] - The legacy business of providing funding to nonprofit community associations remains stable and unaffected by macroeconomic challenges, but resources are being redirected towards bitcoin mining [10] Market Data and Key Metrics Changes - The company ended Q2 2022 with $17 million in cash and $21 million in working capital, with no long-term debt, providing a solid foundation for bitcoin mining operations [13][14] - Stockholder equity was approximately $65.2 million, equating to $4.98 per share, while the market price was $1.07 per share, indicating a significant market disconnect [14] Company Strategy and Development Direction - The company is focusing on its bitcoin mining operations, which are expected to transform the business in the coming quarters [10] - The merger with SeaStar Medical is seen as a significant opportunity, with the potential to unlock value for shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the bitcoin mining business, highlighting the potential for significant growth as new mining assets come online [13] - The company is committed to a disciplined approach in acquiring and operating bitcoin mining machines to maximize long-term shareholder value [10] Other Important Information - An unrealized gain of $12.2 million was recognized for the interest in LMAO for Q2 2022, reflecting the potential of the merger with SeaStar Medical [11][15] - The company plans to enhance investor relations through regular updates and presentations [14] Q&A Session Summary Question: How do the rebate credits work? - The final price of miners is determined shortly before shipment, allowing for credits based on bitcoin prices, which can reduce immediate payment obligations [18][19] Question: Are all payments for mining equipment and hosting completed? - The company has pre-paid deposits and expects rebate credits to cover remaining costs, only incurring shipping fees for upcoming shipments [20][21] Question: What are the next steps regarding the SPAC transaction? - The value of Class B shares is recognized on the balance sheet, with ongoing assessments of the potential deal closing [23]