Business
LM Funding America, Inc. Reports Annual 2021 Financial Results
TAMPA, Fla., March 31, 2022 /PRNewswire/ -- LM Funding America, Inc. (NASDAQ: LMFA) ("LM Funding" or the "Company"), a technology-based specialty finance
About this update from Lm Funding America, Inc.
[{"type":"text","content":"TAMPA, Fla., March 31, 2022 /PRNewswire/ -- LM Funding America, Inc. (NASDAQ: LMFA) (\"LM Funding\" or the \"Company\"), a technology-based specialty finance company offering unique funding solutions to community associations that is expanding into the cryptocurrency mining business, today announced its financial results for the full year ended December 31, 2021. \nreposition our company into mining Bitcoin while also improving our capitalization structure and balance sheet\"In 2021, we took critical steps to reposition our company into mining Bitcoin while also improving our capitalization structure and balance sheet,\" said Bruce Rodgers, LM Funding's Chief Executive Officer. \"We were successful in closing a $31.5 million equity offering to fund our investment in Bitcoin mining machines and infrastructure.\"\nFull Year 2021 Highlights:\nGenerated approximately $31.5 million in net proceeds from an equity offering that is being used to fund our digital asset expansion for which we ordered 5,046 ASIC mining machines from Bitmain for approximately $31.6 million and hosting equipment from Bit5ive for approximately $3.1 million. We currently anticipate the ASIC mining machines to be delivered sometime in the 2nd quarter of 2022 subject to issues surrounding worldwide logistics impacted by COVID-19 and the war in Ukraine. We also received approximately $10.2 million from warrant holders upon the exercise into common shares. Operating revenues totaled approximately $0.9 million as compared to approximately $1.26 million for prior year. Operating loss increased to approximately $8.4 million as compared to approximately $4.1 million for the prior year due mainly to a $3 million increase in compensation, including stock compensation expense and bonuses, an approximately $0.4 million increase in professional fees and an approximately $0.2 million reduction in the recoupment of a previous bad debt write-off associated with a related party. The Company engaged in several opportunistic specialty financing solutions which contributed to net income from continuing operations of approximately $5.0 million as compared to an approximately $4.1 million loss for the prior year. This improvement in operations was due in part to: An innovative troubled financing solution that resulted in the realized gain of approximately $13.8 million on the sale ...