LM Funding America (LMFA) 14 Aug 232023 Q2 Earnings call transcript

Greetings. Welcome to the LM Funding America, Inc.

Second Quarter 2023 Business Update Conference Call. At this time, all participants are in a listen-only mode. a question-and-answer session will follow the formal presentation. Instructions] [Operator

this over recorded. Ayvas. to that turn will is conference the your conference note I being now Please host, Ted

may begin. You

second Good LM you thank quarter America’s morning. call. XXXX for conference And Funding joining

call and Russell, Officer; the Chief LM Officer Richard with Bruce Chief are On Rodgers, today Executive of Financial Funding. us

on XXXX on The company condition as financial announced the for press morning, our is operating results website the that and date. the quarter This its ended lmfunding.com. release posted June company’s XX, of

the Commission addition, its on report also In well has company quarterly www.sec.gov. U.S. accessed at as on filed the with as Securities Form website the the be which XX-Q company’s website, and SEC’s Exchange can

about the XXX-XXX-XXXX. please Communications have at Crescendo company, you questions call any or information If contact the after unlike additional any

company’s contain statements. Before of condition financial results remind everyone conference management and quarter that would to for as XXXX, XX, ended like forward-looking the this operating may reviews June its that we date, the call

of strategy All position, call, forward-looking results financial statements and operations other than for our of operations future our historical facts statements expectations regarding including are in plans future and conference and statements. this contained statements

future the it condition, These and needs. largely statements based business and projections trends long-term operations, operations strategy, current of believes objectives, results financial and on are and expectations about may forward-looking affect financial events that company’s its short-term and

the described XXXX. Securities forward-looking Form various and These assumptions XX, on uncertainties filed in Commission March company’s to with statements are United Exchange subject XX-K and the States risks,

adversely these statements. occur differ this the in assumptions, discussed and anticipated conference not or the may these forward-looking from and implied and events in Because could of actual materially results circumstances risks, call uncertainties forward-looking and

upon should future as forward-looking events. You of rely predictions not statements

are cannot reasonable, the Although or statements achievements. future expectations level of the believes in guarantee activity, it results, that the forward-looking reflected performance company

company disclaims company these any neither any update these any assumes The of nor responsibility of duty completeness forward-looking any of the forward-looking accuracy addition, and statements. to person the statements. In for

in attributable well made their statements forward-looking qualified as these are in by expressly call. others entirety All this conference cautionary to statements, the company as

made You in of by the should these forward-looking all and risks context uncertainties. evaluate the statements company

discussion such The provides our references non-GAAP an measures measures. addition, direct additional information GAAP non-GAAP to today’s the A consistent in the release that most of historical on comparable its believes measurement company include today’s news will and measures In reconciliation of is available to performance. website. comparison

will the Rodgers. to that, now turn over call Bruce Bruce? With I

Ted. thank the us Thanks, I everyone through LM for share of the want price of thanks patience their with team, Good today. joining morning and our On for much Funding quarter. behalf to to our second shareholders continued

quarter businesses company plans. our our shareholders. our our made significant believe our Bitcoin furtherance mining the to towards value We progress Our and strategic objectives lead will of in other for plans strategic considerable and second for

XX, had approximately machines June we Bitcoin. hosting XXXX, facilities electrified and At mining at actively X,XXX mining

at increase per an to revenue ended quarter of XX%, mined in XXXX, first quarter XX.X a mined the the Bitcoin we average of sequential $XX,XXX Bitcoin, June During XXXX, compared Bitcoin. of XXX.X XX, market value

has price fluctuated $XX,XXX has months. several been Bitcoin current The the over higher between last $XX,XXX and and

XXX approximately providing operational we mining mining, As have of petahash and X,XXX XXXX, machines August mining XX, approximately capacity. fully of

occur XXXX. the in Looking having projected next ahead to to event Bitcoin

capacity efficient goal machines our mining rep Our boost lower costs. to average joules to continue energy and per mining to is our terahash procure more

machines. XXX announced that Braiins July, its software In OS+ mining installed of had we company the on

can of the as an Bitcoin increase this machines on XX%, as expect these that the We much to mine. we in increase which to should hashrate number by lead

with mine to there Braiins equipped OS+ Braiins or this operating software as software is hashrate, mining may mine to addition with Bitcoin machines any machines In further increasing advantage with pool with enhancements without pool fees is purchase hashing best increase additional to of through pool use miners believe to the their pay hashrate of the production capital Braiins. to to We our capabilities. having

energization Bitcoin the first our We end the in Bitcoin completed XXXX. the quarter We pivoted XXXX. of purchase miners quarter Bitcoin focus Bitcoin with our to mined the in XXXX XXX.X XX.X at delivery XXXX, of mining of and of and XX.X first second in

our Since price X,XXX XXX business generating our Bitcoin the to should the beginning capacity of since growth increased beginning XXXX. from believe better our mining machines of reflect QX, mining stock We machines, we have petahash. mining the X,XXX in mining

highlight product, assets, quarter the Inc.’s acquisition our was Assembly $X.X to its horse leading services from enterprise recent platform. significant the financial A flagship the including bid Symbiont.io, of successful million blockchain stalking

Assembly such as for of transactions shared securities to and institutions financial handle blockchain. financial was issuance, loans, management the various a and developed contracts on investment tracking

This entry for into contracts us acquisition with developed customers. the advanced smart affords offering an business real technology

quarter. technology dialogues develop assets to further this We our with partners license, and are announce currently in developments and expect to sell Symbiont

non-profit to which associations, the has to offering since XXXX. involves stable of business, community fairly conclusion With legacy the respect funding our remained business

stockholders’ share book between find XX, XX% million, we of summary, equity discount a discrepancy as a such that In equivalent June it share. per This represents XXXX, the shares and to $X.XX of $XX.X our trading of $X.XX to substantial price at recent value. puzzling exists our per outstanding

by the plan, mindful stock suffered are monetizing we the this microcap market we market, narrow of disproportionately, and gap. valuation on weakness more executing and Symbiont mining the that optimistic assets remain the our can Bitcoin we especially diligently in broader While within strategic

period for to Rick? XXXX. financial like Russell, to the I’d review the Chief Rick three-month over note, Financial call Funding, XX, LM that Officer June of the On will ended turn results who

$XXX,XXX ended revenue XX% XX, $X ended $XXX,XXX million XX, strong good everyone. months $X.X of XXXX. experienced first -- to million for the the Total revenues quarter more XXXX, three Thanks, three compared from June increased to XXXX. Bruce, of have months sequential for we growth morning, by quarterly than Furthermore, the and June

in the digital million XXXX, of was the no quarter to there comparable revenue mining mining for second June quarter. whereas Revenues of XX, XXXX, Bitcoins for include the due three the XXXX months XXX.X of ended $X mine

compared expenses three mining increase three $X.X offset a in for a XXXX. to primarily $X.X million Operating increase costs, partially XX, XXXX. for million and $X.X decrease months a is decrease attributable digital by fees stock million June to XX, compared to million XXXX, ended ended $X million second compensation in The million June of depreciation, $X.X quarter the as professional totaled the months in $X.X increase $XXX,XXX in a the

compared securities. XXXX, months million attributable and for investment LM the the $X.X ended net income of $XX.X three unrealized non-cash June $X.X a on million included securities, quarter shareholders For on XXXX, investments second which unrealized $X.X was net to and the included Funding million, loss which loss of equity million XX, a to equity gain

the to operations quarter, ended XXXX gain million, adjustment our was Core core mining primarily quarter $X EBITDA on $X.X to June XXXX, Symbiont Bitcoin a comparable compared EBITDA due allowance. loss XX, and for in the million of of the receivable note

We Turning with execute mining to $X $X.X our worth our capital ended sheet. Bitcoin million Bitcoin strategy. million current to believe with of on working the cash, quarter sufficient million. and $X.X provides we liquidity balance us which

or quarter $X.XX have we equity $XX.X In per the stockholders’ and ended with minimal million addition, debt of long-term share.

between the June XXXX, three $XXX,XXX change months XXXX. net the XX, non-cash three driven to ended the received as to Bitcoin by ended XXXX. revenue in activities consideration, June the used Bitcoin operations Finally, three ended to liquidity in cash primarily the operating by i.e., mining net used was compared This compared XX, by cash during months difference XX, operations $XXX,XXX provided operations cash was Bitcoin June mined support in months of in

now would you to prepared our open please us Operator, concludes I for remarks. the questions. with call like That assist that? could

Please question. Galinko [Operator question first Certainly. your coming Your Group. Maxim post from Instructions] Sure. Matthew is at

live. is line Your

for you -- playing my out? maybe with a bit talk next thoughts that how event more see question. start next about into or that into having strategy Thank bit -- taking Hi. for year? looking the Is you your little going little the maybe a maybe on more we your Can expected

a the of Matt. probably XX,XXX-foot that having level Sure, from worldwide. half profitability the a basically will Well, fall view, machines into means

to on or that we want XX the Pros. and Pros at which efficiency be we there, purchases focused the our the top of XPs is why have XJ J -- before purchase recent you So end curve most

-- infrastructure-light an have are we plan. we Then

we rejiggering and by having host spread have period the our before contracts due coming curve a having in of been go sort with up. of price contracts hosting our we and the created have people of have because discrepancy other around kind goes we and So in the hosting things having, there supply around sideways period kicks after demand and past, more the

can low contracts economics go renegotiate is plan our and So produced keep be having position our that the in we lean terahash have on to our joules and stay fast infrastructure-light should the forward. different machines, per

And equipment. Is Thanks. touching maybe what mining optimization then that? of strategies Braiins that expect across what’s you on implementation out to bring the like guess, your -- something on timing Got or the subset fleet I rolling on more the broadly of it. a

Rick is Russell. this So

works won’t entire lot, And On is our of hosting and throughout the power lot the a in Braiins it but software, be with there’s it going out a adjustments environment, Braiins on, rolled we run don’t fleet. where it at of think, core, run giga. but fleet machines, I on bulk to the other Texas usage the the do our we generally, those

Symbiont, on are think I the you then months. you hoping you And mentioned, next -- announce it. to few Got in something might

us sense that’s acquisition, are to plan going? help you sort guess, bit on of with closing or color So, how what’s your more could a little I according that going since things

Sure.

there than So its more seem acquired seems be about we lot to the on and and features, and have a out in robust attracting lot it marketplace its learned we encouraging be both what’s to an of which that is awful attention. have and what functionality

converting We rule a some if work great, the it some will maybe that world of can source open done of was technology the manner be might but and it you proprietary to better. have learned criticisms in

uses to going that for we is in customer to a everyone different projects there the that this that the be commercialize for required to people believe talking about, that looking of different so, believes And that are are at CapEx we targeting. level the they are base

require interests for different And requires different all use money course, negotiations and and things money and technology. those of of the objectives

going it’s it how as to great, hasn’t itself go. going it’s so to And revealed just

Got it.

Okay. steady guess, to do the me expect in last Maybe a I just for to side question evolution is plans for be sort mining on on of I the or and for state months think the you have the fleet, -- of thinking with terms size any the going the higher the you replace units efficiency of if failures, them you there? into what’s next few in having fleet,

us get we and buying to to yes, executive our plans to are -- hexahash. part, latter machines X all The the are replace So efficiency. increase comp incentivized

Rick So the so and combination do and guys Texas of through from everybody that a machines finding at machines at right at are to so. the are right the motivated mines in to today out looking price capital deploying that and I down the at broker hosting price, do there’s

time constantly right machines. are the on working to it’s we be so acquiring And that,

We are so. our best capital do to just of looking sources at

Got it. you. Thank

Your Instructions] is next H.C. question [Operator Wainwright. Kevin from Dede with coming

Doblin Rick. Hi, Thanks behalf for question. Michael on your to more bit Dede. on [ph] calling Kevin Bruce of my and taking fleet. was get hoping a This I color is

content or going So you that mind purchasing sites are you for do in agreements are your then X now? pretty invest how expanding hosting machines? you new so specific right much to And front you in and to providers any on mentioned, have also, with hexahash planning

offers Bitcoin cash we the the X incentives on that. question, of of for The to and that and on us. to first coupons keep piling haven’t up that around amount hexahash, certain on we get willing machine. released of we any amount a there’s money To we obviously, could then without. those the hand turn have that And that talk we question, hand are their Bitmain guidance cost better into then sell have machines customers then operate to So, amount

earnings respond will we and at our then looking to stock these markets And call there. our opportunity hoping that and always capital provide some well we are and

sources status can you So ways of of that’s machines. the buy that

You can very we are to also much. leverage but our reluctant borrow money, position

land to being to are And for up so as miles more -- geographically coin technologies you are mined then And as to up buildings power transformers sites going all although source it’s hosting why things also and dispersed with like them and mine and guys dispersed tied that, well dispersed, our and isn’t we dispersed. mining these that frequent the by into hosting equate so CapEx new plan space, many get don’t actual that’s that And as are are we are we and question, a seeing racking people pursue open new not. then asking when the for we that we with forming. politically always your currently and ways and new geographically flyer

have helpful. Good. Great. In will That’s for to to regard there. we wait I your guess, announcements Symbiont,

more or Symbiont’s bit of Are current are to you look esoteric individual stick assets? with to of Assembly branding going a So rebrand to question. you an the going

I I know don’t not know to that’s make the answer, the decision. I going but that that one am

that those. very, We be to better I those surrounding have some very people are their own on ourselves would things, tech views with and defer think, successful savvy we

Makes sense.

regulatory the have Now you terms the of in of what received sort current terms to how in of regulatory assets feedback Symbiont complaint landscape? can’t landscape,

on your you Symbiont Could am effects unaware assets. question? regulatory of landscape on I elaborate any

kind a regulatory place terms say, about general, the in versus, right MiCA in specifically now. question in in that’s crypto being Europe of of Europe’s U.S. general blockchain, Just -- put and machine

take XX,XXX are things a change can Symbiont need level, Just to you really tech off? before about you do foot landscape the see or square optimistic feeling

Yeah.

a at Bitcoin heart for keeps environment clearer and getting kind are miners of we miner clearer. regulatory Bitcoin So and being

going a are for hoping changing will not accounting as There’s are What are lot us. I commodity, there we side. the not We guess, we really be will to treated a on be change security. we

keeping rather gets a But We trading come it really it allow fair time each mark us I and the much out its market than impaired. of to value until on just there’s do think lowest this matter need it’s there. vendor and point guidance that, to quarter to that, not thing approved, resistance

was as of things and it for run On the our it into tokenization had the and look have such financial a coins really institutions exchanges and private doesn’t, use blockchain of asset that that. designed never a some Symbiont issuing the towards so owned like

that public able that thing to register traded yeah, we to to That be blockchain present robust that need very less very could be -- and having a would a turned a for path and itself into it’s we regulatory on, to a it’s tokenization. would Now be blockchain. exchange pivot rather But security path interesting. see to interest a public But, and can us. us

Okay. Great. thank Well, Rick. you and so Bruce much,

Thank you.

Thanks.

Center. your Please is question. Jack Richardson coming from question with Your next Expressway post

Your line is live.

on are you well, Jack, mute.

me? Hello. Can you hear

Great. Okay.

Yeah.

is conference be I proprietary me fees? just -- power, I per This matter. the call or not. just one cost my really The of is first is question am not will including this a please for This have very question is, stockholder. and kilowatt tell what offended. is if hosting I average this

[ph]. all it and service it’s Well, around $X.XX includes fees

Okay.

the think, walk that’s entity, [Technical I street somebody again, real the and system estate kilowatt, machine charge Difficulty]. the the the around rack, for

And [Technical real that include and includes and does maintenance estate that Difficulty]

We do structure everything for light.

cost. in an it’s of kind all So

Okay.

when So goes that machine it? can the you correct? Is down, fix

set up machines. That’s Yeah. we how our

correct. That’s

Okay.

or days your net in mentioned, as miners your again? ago -- of of of that number what a Rick, -- presentation, number in does what what couple And had August, Okay. you

I believe it’s X,XXX like exchange.

exchange. X,XXX

right. All Okay.

Yeah. Yeah.

right. All

just of mix petahash. XXX have about that’s It’s we XPs, a at

I question guess, is, I LMFA that And rigs follow-up assume hosted? all Okay. the in are a

Yes.

But somebody another. Yeah. or

All right. Okay.

Okay.

you. Thank

Thank you.

This back does closing over the question-and-answer And to conclude any remarks. call for will management the now I session. turn

call. second The participating company’s mining you. for been like Thank Bitcoin successful to-date. has to I’d to conference our XXXX in quarter everyone thank pivot

sheets. our debt existing to well software adding mining our improve additional to reinvest continue hashrate We of mining designed to the cutting-edge purchase as as free, machines, revenues mining

We efficient to continue machines. mining invest an purchase of efficient Bitcoin way believe through believe most Bitcoin highly to the in appreciation class. the of is long-term as in We the asset

the are the of continue the have and mining pleased we summary, we quarter made second will with Bitcoin In during of to progress XXXX and the machines believe in more we electrify transition that to future. extremely momentum as acquire our accelerate

on to forward developments for our are will today look support for questions. provide We to us continue and to new We emerge. from speaking updates joining soon. Thank your you ongoing thankful the our we shareholders and you progress as for

conference. This does conclude today’s

time. lines for participation. you your this Thank disconnect at your may You