Lm Funding America, Inc. · NASDAQ:LMFA
Lm Funding America — Investor Presentation (January 2024)
19 slides from Lm Funding America's investor presentation, Jan 18, 2024
Slide 1: Bitcoin Mining and Specialty Finance Investor Presentation
Exhibit 99.1 Bitcoin Mining and Specialty Finance Investor Presentation January 2024
Slide 2: Forward-Looking Statements
NASDAQ: LMFA Forward-Looking Statements This presentation may contain forward-looking statements the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions a
Slide 3: Financial Highlights
NASDAQ: LMFA Financial Highlights At September 30, 2023 approximately 5,900 miners, electrified and actively mining Bitcoin, providing the Company with approximately 614 petahash of mining capacity Announced Q4 cash receipt of $818 thousand from SeaStar note receivable and $1.8 million from the sale
Slide 4: LM Funding America: Our Management
NASDAQ: LMFA LM Funding America: Our Management Bruce Rodgers, Founder, Chief Executive Officer & Chairman of the Board of Directors • Entrepreneur developed business model and led LMFA through multiple private fundraising rounds leading to IPO in 2015 • Led LMFA through 3 subsequent public offering
Slide 5: Why Bitcoin? Trust(lessness)
NASDAQ: LMFA Why Bitcoin? “Trust(lessness)” Bitcoin is a technology enabling decentralized transactions between parties not requiring an intermediary bank or institution. 5
Slide 6: LMFA's Bitcoin Mining Strategy
NASDAQ: LMFA LMFA’s Bitcoin Mining Strategy Infrastructure Light Low Cost of Capital • Access to lower cost of capital as a public company Purchase Bitcoin Mining • Wholesale purchaser of miners directly from the manufacturer Machines direct from • Secure latest generation of miners at the lowest po
Slide 7: Current Bitcoin Environment
NASDAQ: LMFA Current Bitcoin Environment • 2023 - FASB ASU 2023-08 approved — impairment versus mark to value • 2023 - Bitcoin regulated by CFTC as a commodity due to decentralized structure • 2023 - Bank financing for Bitcoin Miners non-existent • 2024 Halving reduces mining reward from 6.25 to 3.1
Slide 8: Halving
NASDAQ: LMFA Halving • Bitcoin halving is an event where the reward for mining new Bitcoin blocks is cut in half, resulting in miners receiving 50% fewer Bitcoins for verifying transactions • Bitcoin halving occurs every 210,000 blocks which translates to approximately every 4 years • Next halvings
Slide 9: LMFA Halving Strategy
NASDAQ: LMFA LMFA Halving Strategy • Infrastructure light • Acquire S21’s at 200 TH/s - most efficient miners – 17.5 joules/TH • Flexible hosting contracts • Minimize operational losses • Renew hosting contracts post halving https://crypto.com/university/what-is-bitcoin-halving 9
Slide 10: Bitcoin Operational Activities
NASDAQ: LMFA Bitcoin Operational Activities Active Machines • Q1 – 3,700 / 378 PH • Q2 – 5,235 / 543 PH • Q3 – 5,950 / 614 PH 10
Slide 11: Specialty Finance & Association Collections
NASDAQ: LMFA Specialty Finance & Association Collections • The Company began in 2008 with a focus on specialty finance – providing funding to nonprofit community associations primarily located in the state of Florida • Offer incorporated nonprofit community associations a variety of financial produc
Slide 12: Core EBITDA (Non-GAAP)
NASDAQ: LMFA Core EBITDA (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, Our reported results are presented in accordance 2023 2022 2023 2022 with U.S. generally accepted accounting principles (“GAAP”). We also disclose Earnings Net income (loss) $ (4,667,856) $ (6,722,15
Slide 13: Core EBITDA (Non-GAAP) – What If Scenarios
NASDAQ: LMFA Core EBITDA (Non-GAAP) – What If Scenarios Results dependent on BTC results ● Core Income (loss) before interest, taxes & depreciation – 3rd Qtr 2023 $ (616,903) ● Incremental Impact if BTC increases to $40,0000 $1,406,000 ● Core Income (loss) before interest, taxes & depreciation – 3rd
Slide 14: Financial Highlights
NASDAQ: LMFA Financial Highlights At September 30, 2023 approximately 5,900 miners, electrified and actively mining Bitcoin, providing the Company with approximately 614 petahash of mining capacity Announced Q4 cash receipt of $818 thousand from SeaStar note receivable and $1.8 million from the sale
Slide 15: Contact Us
NASDAQ: LMFA Contact Us LM Funding Contact: Bruce M. Rodgers, Esq. 866.235.5001 investors@LMFunding.com www.lmfunding.com 15
Slide 16: Financial Appendix
NASDAQ: LMFA Financial Appendix 16
Slide 17: Financial Results – 3rd Quarter 2023
NASDAQ: LMFA Financial Results – 3rd Quarter 2023 Three Months Ended September 30, 2023 2022 Revenue $ 3,419,508 $ 187,780 Operating costs and expenses 6,589,927 5,452,045 Operating loss (3,170,419) (5,264,265) Other income (loss) (1,497,437) (146,211) Loss before income taxes (4,667,856) (5,410,476
Slide 18: Financial Results – Nine Months Ended 9-30-23
NASDAQ: LMFA Financial Results – Nine Months Ended 9-30-23 Nine Months Ended September 30, 2023 2022 Revenue $ 8,928,676 $ 613,317 Operating costs and expenses 17,224,855 16,281,702 Operating loss (8,296,179) (15,668,385) Other income (loss) (9,176,629) 10,806,795 Loss before income taxes (17,472,80
Slide 19: Summary Cashflow - Update
NASDAQ: LMFA Summary Cashflow - Update Nine Months Ended September 30, Three Months Ended September 30, 2023 2022 2023 2022 Cash Flows used in Operating Activities $ (2,609,712) $ (1,680,547) $ (1,146,488) $ (1,670,025) Cash Flows used in Investing Activities (640,170) (20,588,739) (175,599) (5,345,
LM Funding America — Investor Presentation (January 2024) on 6ix