Business
LM Funding Reports Net Income of $4.4 Million or $0.87 Per Basic Common Share for the First Quarter of 2021
TAMPA, Fla., May 14, 2021 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ:LMFA) ("LM Funding" or "LMFA"), a technology-based specialty finance company,
About this update from Lm Funding America, Inc.
[{"type":"text","content":"TAMPA, Fla., May 14, 2021 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ:LMFA) (\"LM Funding\" or \"LMFA\"), a technology-based specialty finance company, today announced its financial results for the three months ended March 31, 2021. Financial Highlights for the Three Month Period Ended March 31, 2021: Revenues declined to $177 thousand in 2021 from $341 thousand in Q1 2020.Operating loss was $1,728 thousand in 2021 compared to a loss of $561 thousand in Q1 2020.Recognized a $5.7 million realized gain from a transaction with BORQS Technologies Inc. (‘Borqs’) initially projected to net $2 million.Sponsor interest in LMF Acquisition Opportunities, Inc. (‘LMAO’) resulted in recognition of a net unrealized gain on securities of $0.6 million on the Company’s $5.7 million purchase of LMAO’s warrants and Class B common shares.Net income during the quarter totaled $4.4 million, or $0.87 per basic common share.Cash increased to $17.8 million on March 31, 2021 from $11.5 million on December 31, 2020. “Thus far in 2021 we continue to expand our ‘We Buy Problems’ mission. In addition to $4.4 million in net income during the quarter, our cash position has increased to $17.8 million or $3.29 per basic common share as of March 31st,” said Bruce M. Rodgers, Chairman and CEO of LM Funding. “Revenues from our community association receivables business declined as we continue to develop a digital asset technology strategy to unlock the potential of this business. We expanded our core business of buying discounted debt and collecting it through court proceedings with the Borqs transaction. We entered the Borqs transaction projecting to net $2 million and we were pleased to realize a $5.7 million return. Going forward, we will continue to look for other technology enabled specialty finance business opportunities that can leverage our existing platform and expertise. We also expect our SPAC sponsorship and digital asset strategy to contribute to earnings in the foreseeable future as our core business navigates through the economy’s re-emergence from Covid restrictions.” Operational Highlights for the First Quarter of 2021 to Date: LM Funding is developing a digital asset technology strategy to grow its community association receivables business both organically and through acquisitions.LMFA announced plans to purchase up to $2 million in digi...