LM Funding America Inc 2025年季度报告

Non-accelerated filer☑Smaller reporting companyEmerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period forcomplying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐ TABLE OF CONTENTSFINANCIAL INFORMATIONFinancial StatementsLM Funding America, Inc. and Subsidiaries Consolidated Balance Sheets as of March 31, 2025 (unaudited) andDecember 31, 2024LM Funding America, Inc. and Subsidiaries Consolidated Statements of Operations for the Three Months Ended 2SIGNATURES 6The accompanying notes are an integral part of these unaudited consolidated financial statements. FOR THE THREE MONTHS ENDEDMARCH 31, 2025(UNAUDITED)Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESNature of Operations 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 of connection with its Bitcoin mining business. The Company also from time to time organizes other subsidiaries to serve a specific purpose or hold a specific asset.Lines of BusinessThe Company currently operates two lines of business: our Bitcoin mining business and our specialty finance business. operate 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 nonprofit community associations, which we refer to as “Associations,” a variety of financial products customized to eachAssociation’s financial needs.Bitcoin Mining BusinessWe obtain Bitcoin as a result of our mining operations, and we sell Bitcoin from time to time, to support our operations and Bitcoin market, which has been historically characterized by significant volatility. Currently, we do not use a formula or specificmethodology to determine whether or when we will sell Bitcoin that we hold, or the number of Bitcoins we will sell. Rather, decisions to hold or sell Bitcoins are currently determined by management by monitoring the market in real time.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 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 ownvarious properties. It also includes LMFA Sponsor LLC (a69.5% owned subsidiary). All significant intercompany balances havebeen eliminated in consolidation. 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 annual consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed oromitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make theinformation not include 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 consolidatedfinancial statements presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.Recently adopted accounting pronouncementsIn 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 required to provide additional disclosures about the holdings of certain crypto assets. Crypto assets for fiscal years beginning after December 15, 2024, including interim periods within those years. Early adoption is permitted forboth interim and annual financial statements that have not yet been issued (or made available for issuance). If an entity adopts theamendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. The to adjust the Company's Bitcoin held on January 1, 2024 with the corresponding entry to beginning accumulated defic