LM Funding America Inc. 2025年季度报告

LM FUNDING AMERICA, INC. TABLE OF CONTENTS PART I.FINANCIAL INFORMATION Item 1.Financial Statements December 31, 2024LM Funding America, Inc. and Subsidiaries Consolidated Statements of Operations for the Three Months Ended March 31, 2025 and 2024 (unaudited)4 LM Funding America, Inc. and Subsidiaries Consolidated Statements of Cash Flows for the Three Months EndedMarch 31, 2025 and 2024 (unaudited)5 LM FUNDING AMERICA, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSFOR THE THREE MONTHS ENDEDMARCH 31, 2025 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations LM Funding America, Inc. (“we”, “our”, “LMFA” or the “Company”) was formed as a Delaware corporation on April 20, 2015. LMFA is the sole member of several entities including LM Funding, LLC, which was organized in January 2008; US DigitalMining and Hosting Co., LLC, which was formed on September 10, 2021 (“US Digital”); LMFA Financing LLC, formed onNovember 23, 2020; and LMFAO Sponsor LLC, which was formed on October 29, 2020 (LMFA is a majority member ofLMFAO Sponsor LLC). US Digital has created various100% owned subsidiaries to engage in business in various states in The Company also from time to time organizes other subsidiaries to serve a specific purpose or hold a specific asset. Lines of Business The Company currently operates two lines of business: our Bitcoin mining business and our specialty finance business. Our Bitcoin mining operation deploys our computing power to mine Bitcoin on the Bitcoin network. We conduct this businessthrough our wholly owned subsidiary, US Digital, a Florida limited liability company, which we formed in 2021 to develop andoperate our Bitcoin mining business. With respect to our specialty finance business, the Company has historically engaged in thebusiness of providing funding to nonprofit community associations primarily located in the state of Florida. We offer incorporated Bitcoin Mining Business We obtain Bitcoin as a result of our mining operations, and we sell Bitcoin from time to time, to support our operations andstrategic growth. We plan to convert our Bitcoin to U.S. dollars. We may engage in regular trading of Bitcoin or engage in hedgingactivities related to our holding of Bitcoin. However, our decisions to hold or sell Bitcoin at any given time may be impacted by theBitcoin market, which has been historically characterized by significant volatility. Currently, we do not use a formula or specific As of March 31, 2025 and December 31, 2024, the Company had approximately5,600and5,840machines respectively, whichamounted tooperating units capable of producing over612petahash and615petahash, respectively, per second (“EH/s”) of Specialty Finance Company In our specialty finance business, we purchase an Association’s right to receive a portion of the Association’s collected proceedsfrom owners that are not paying their assessments. After taking assignment of an Association’s right to receive a portion of theAssociation’s proceeds from the collection of delinquent assessments, we engage law firms to perform collection work on a Principles of Consolidation The consolidated financial statements include the accounts of LMFA and its wholly-owned subsidiaries: LM Funding, LLC; REOManagement Holdings, LLC (including all100% owned subsidiary limited liability companies); LM Funding of Colorado, LLC;LM Funding of Washington, LLC; LM Funding of Illinois, LLC; US Digital (includes all100% owned subsidiary limited liabilitycompanies) and various single purpose limited liability corporations owned by REO Management Holdings, LLC which own Basis of Presentation Theaccompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of theSecurities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in the annualconsolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or misleading.The interim consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025and March 31, 2024, respectively, are unaudited. In the opinion of management, the interim consolidated financial statementsinclude all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of the results for theinterim periods. The accompanying consolidated balance sheet as of December 31, 2024, is derived from the audited consolidated Recently adopted accounting pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)No. 2023-08, Intangible - Goodwill and Other -Crypto Assets (Subtopic 350-60) (“ASC 350-60”). ASC 350-60 requires entities with certaincrypto assets to subsequently measure such assets at fair value, with changes in fair value recorded in net income in each reportingperiod. In addition, entities are r