# EDGAR Filing Document

**Accession Number:** 0001640384
**File Stem:** 0000950170-23-011154
**Filing Date:** 2023-3
**Character Count:** 22671
**Document Hash:** daff372e1e38d0b860b512116f8245d4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-011154.hdr.sgml**: 20230331

**ACCESSION NUMBER**: 0000950170-23-011154

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230331

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230331

**DATE AS OF CHANGE**: 20230331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LM FUNDING AMERICA, INC.
- **CENTRAL INDEX KEY:** 0001640384
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37605
- **FILM NUMBER:** 23783354

**BUSINESS ADDRESS:**
- **STREET 1:** 1200 WEST PLATT STREET
- **STREET 2:** SUITE 100
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33606
- **BUSINESS PHONE:** 813-222-8996

**MAIL ADDRESS:**
- **STREET 1:** 1200 WEST PLATT STREET
- **STREET 2:** SUITE 100
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33606

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** March 31, 2023<br>

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LM FUNDING AMERICA, INC.

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Delaware | 001-37605 | 47-3844457 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 1200 West Platt Street<br>Suite 100 |  |  |
| Tampa**,** Florida |  | 33606 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code:** 813 222-8996<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | |
|:---|:---|
| **<br>Title of each class** | **<br>Name of each exchange on which registered** |
| Common Stock par value $0.001 per share<br> LMFA | The Nasdaq Stock Market LLC |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On March 31, 2023, LM Funding America, Inc. (the "Company") issued a press release announcing its financial results for the Twelve Months ended December 31, 2022 and 2021.

The information furnished in this Item 2.02, including Exhibit 99.1, is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liability under that Section. This information will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

**Item 9.01 Financial Statements and Exhibits.**

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| | |
|:---|:---|
| **Exhibit** <br>**Number** | **Description** |
| 99.1 | [<u>Financial Results Press Release dated March 31, 2023</u>](lmfa-ex99_1.htm) |
| 104 | <u>Cove</u>r Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | LM Funding America, Inc. |
| Date: | March 31, 2023 | By:  | /s/ Richard Russell |
|  |  |  | Richard Russell, CFO |

---

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## Ex-99

![img17863145_0.jpg](img17863145_0.jpg)

Exhibit 99.1

**LM Funding America, Inc. Provides Year-End Business Update; <br>Reports Successful Repositioning into Bitcoin Mining Strategy**

Full-Year 2022 Revenue Increased by 93% and Mined 51 Bitcoins in the Fourth Quarter 2022

Approximately 2,800 Mining Machines Fully Operational Providing the Company with 280 PH/s of Mining Capacity at 2022 Year-End

Reports Working Capital of $8.3 Million and LMFA Stockholders' Equity of <br>$49.2 Million ($3.76 per share) as of December 31, 2022

**TAMPA, FL, March 31, 2023-- LM Funding America, Inc. (NASDAQ: LMFA) ("LM Funding" or the "Company"),** a cryptocurrency mining and technology-based specialty finance company, today provided a business update and reported financial results for the year ended December 31, 2022.

**Operational Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Approximately 2,800 Bitcoin mining machines in operation as of December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Placed approximately 700 machines in operation in the first quarter 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Anticipate an additional approximately 2,300 machines installed by June 30, 2023, to bring total installed capacity to approximately 600 PH/s.

Bruce Rodgers, Chairman and CEO of LM Funding, commented, "In 2021, we made the strategic decision to transform LM Funding into a Bitcoin mining company, and subsequently took measures to reposition the Company. Late in 2021, we placed an order for approximately 5,000 Bitcoin mining machines. As we progressed through 2022, we experienced a period of transition, locating and electrifying some of our mining machines, and initiating our Bitcoin mining operations. We also opportunistically capitalized on lower hardware pricing to order an additional 665 machines in the second half of 2022, bringing the total number of assets on hand to approximately 5,660 Bitcoin mining machines at year-end 2022. The Company subsequently purchased additional XP mining machines in early January 2023. When all 5,850 machines are fully operational, the Company anticipates total mining capacity of approximately 600 PH/s. We believe the decision to transform the Company into a Bitcoin mining company was the right one and that the results we demonstrated in the fourth quarter will accelerate as we continue to acquire, locate, electrify, and commence mining of Bitcoin on additional machines."

Richard Russell, Chief Financial Officer of LM Funding commented, "In addition to our revenue growth, our balance sheet remains solid. As of December 31, 2022, we had $4.2 million in cash, approximately 55 Bitcoins valued at $0.8 million, working capital of $8.3 million, and LMFA stockholders' equity of $49.2 million, or $3.76 per share. As a result, we believe we are well capitalized to execute on our growth strategy, which we believe will drive significant value for our shareholders in the years to come."

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**Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Total revenue for the twelve months ended December 31, 2022, was approximately $1.7 million, an increase of $0.8 million, or 93% from $0.9 million for the full-year 2021. The increase was primarily due to an increase in Bitcoin mining revenue of $0.9 million that was predominately generated in the fourth quarter of 2022 in connection with the commencement of our Bitcoin mining operations in late 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cash of approximately $4.2 million, digital assets of $0.9 million, and working capital of $8.3 million as of December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Total LMFA stockholders' equity of $49.2 million and net equity per share of $3.76 as of December 31, 2022. (Calculated as LMFA stockholders' equity divided by 13,091,883 shares outstanding as of December 31, 2022)

**About LM Funding America**

LM Funding America, Inc., (Nasdaq: LMFA) together with its subsidiaries, is a cryptocurrency mining business that commenced Bitcoin mining operations in September 2022. The Company also operates a technology-based specialty finance company that provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois, by funding a certain portion of the Associations' rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments.

**Forward-Looking Statements**

Contact:

Crescendo Communications, LLC

Tel: (212) 671-1020

Email: LMFA@crescendo-ir.com

(tables follow)

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**LM Funding America, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited)**

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Assets |  |  |
| Cash | $4238006 | $32559185 |
| Digital Assets  | 888026 | - |
| Finance receivables | 26802 | 28193 |
| Marketable securities  | 4290 | 2132051 |
| Short-term investments - convertible debt securities | - | 539351 |
| Short-term investments - debt securities  | - | 2027178 |
| Notes receivable from Seastar Medical Holding Corporation  | 3807749 | - |
| Prepaid expenses and other assets | 1233322 | 1224674 |
| Income tax receivable | 293466 | - |
| Current assets | 10491661 | 38510632 |
| Fixed assets, net | 27192317 | 17914 |
| Deposits on mining equipment | 525219 | 15986700 |
| Hosting services deposit  | 2200452 | 788400 |
| Real estate assets owned | 80057 | 80057 |
| Long-term investments - debt security | 2402542 | - |
| Less: Allowance for losses on debt security | (1052542) | - |
| Long-term investments - debt security, net | 1350000 | - |
| Long-term investments - equity securities  | 464778 | 1973413 |
| Investment in Seastar Medical Holding Corporation | 10608750 | - |
| Investment in unconsolidated affiliate  | - | 4676130 |
| Operating lease - right of use assets  | 265658 | 59969 |
| Other assets | 10726 | 10726 |
| Long-term assets | 42697957 | 23593309 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $53189618 | $62103941 |
| Liabilities and stockholders' equity |  |  |
| Accounts payable and accrued expenses | 1570906 | 463646 |
| Note payable - short-term  | 475775 | 114688 |
| Due to related parties | 75488 | 121220 |
| Current portion of lease liability  | 90823 | 68002 |
| Income tax payable  | - | 326178 |
| Total current liabilities | 2212992 | 1093734 |
| Lease liability - long-term  | 179397 | - |
| Long-term liabilities | 179397 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2392389 | 1093734 |
| Stockholders' equity  |  |  |
| &nbsp;&nbsp;Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | - | - |
| &nbsp;&nbsp;Common stock, par value $.001; 350,000,000 shares authorized; 13,091,883 and 13,017,943 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | 13092 | 13018 |
| &nbsp;&nbsp;Additional paid-in capital | 92195341 | 74525106 |
| &nbsp;&nbsp;Accumulated deficit | (43017207) | (13777006) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total LM Funding America stockholders' equity | 49191226 | 60761118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest | 1606003 | 249089 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 50797229 | 61010207 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $53189618 | $62103941 |

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**LM Funding America, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)** 

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| | | |
|:---|:---|:---|
|  | **Years ended December 31,** | **Years ended December 31,** |
|  | **2022** | **2021** |
| Revenues |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on delinquent association fees | $359012 | $471923 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative and late fees | 70686 | 69369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries in excess of cost - special product | 100470 | 95904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting fees and other revenues | 96605 | 120176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental revenue | 161618 | 141569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital mining revenues | 945560 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 1733951 | 898941 |
| Operating costs and expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital mining cost of revenues (exclusive of depreciation and amortization shown below) | 1033226 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Staff costs & payroll | 19422723 | 6257375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 3158446 | 2271808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement costs with associations | 160 | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 635268 | 417963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | (10177) | (10000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recovery of cost from related party receivable | - | (200000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate management and disposal | 110465 | 132283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 478020 | 11087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collection costs | (12213) | 4459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on mined digital assets | 79794 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating costs | 1514224 | 444345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 26409936 | 9331320 |
| Loss from operations | (24675985) | (8432379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gain (loss) on securities | (349920) | 13817863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gain on convertible debt securities | 287778 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on convertible debt security | - | (407992) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on marketable securities | (56830) | (1387590) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on purchased digital assets | (467406) | (23720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on prepaid mining machine deposits | (3150000) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on prepaid hosting deposits | (1790712) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit loss on debt securities | (1052542) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on investment and equity securities | 4423985 | 886543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gain on sale of digital assets | 20254 | 502657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets | (38054) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital assets other income | 5658 | 3775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend income | 3875 | 2113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 399094 | 211427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (4416) | (653) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on forgiveness of note payable | - | 157250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before income taxes | $(26445221) | $5329294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | (1438066) | (326178) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $(27883287) | $5003116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Net income attributable to non-controlling interest | (1356914) | (243898) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) attributable to LM Funding America Inc. | $(29240201) | $4759218 |
| Basic income (loss) per common share | $(2.23) | $0.70 |
| Diluted income (loss) per common share | $(2.23) | $0.60 |
| Weighted average number of common shares outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 13084185 | 6828704 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 13084185 | 7927255 |

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**LM Funding America, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited)**

**(unaudited)** 

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| | | |
|:---|:---|:---|
|  | **Years ended December 31,** | **Years ended December 31,** |
|  | **2022** | **2021** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| Net income (loss) | $(27883287) | $5003116 |
| **Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 478020 | 1383 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncash lease expense | 95098 | 100698 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation | 1098331 | 219667 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | 16571978 | 2323118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation - employees | - | 292500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued investment income | (392412) | (74520) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued recovery of legal fees | (55364) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt forgiveness | - | (157250) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on deconsolidation of affiliate | - | (43623) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on digital assets | 547200 | 23720 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on mining machine deposits | 3150000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on hosting deposits | 1790712 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of fixed assets | 38054 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on convertible debt security | - | 407992 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on marketable securities | 56830 | 1387590 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on investment and equity securities | (4423985) | (886543) |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for loss on debt security | 1052542 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized loss (gain) on securities | 349920 | (13817863) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gain on sale of digital assets | (20254) | (502657) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gain on convertible note securities | (287778) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from securities | 2565893 | 30400433 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in convertible note receivable converted into marketable security | - | (16582571) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in convertible note receivable | - | (5000000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible debt and interest converted into marketable securities | 844882 | 4231758 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in marketable security | (844882) | (3651400) |
| &nbsp;&nbsp;**Change in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 651471 | (845853) |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances (repayments) to related party | (45732) | 89235 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 393261 | 349644 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits for hosting fees | (3202764) | (788400) |
| &nbsp;&nbsp;&nbsp;&nbsp;Mining of digital assets | (945560) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liability payments | (98569) | (103646) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes and taxes payable | (326178) | 326178 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable | (293466) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities | (9136039) | 2702706 |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net collections of finance receivables - original product | 13993 | 102024 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net collections of finance receivables - special product | (12602) | 38557 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (15382) | (14411) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in note receivable | - | (2000000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in note receivable - Seastar Medical Holding Corporation | (3753090) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in digital assets | (988343) | (1419958) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of digital assets | 518931 | 1898895 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan to purchase securities | - | 1784250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of loan to purchase securities | - | (1784250) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits for mining equipment | (14649614) | (15986700) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in unconsolidated affiliate | - | (5738000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for real estate assets owned | - | (60006) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (18886107) | (23179599) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan principal and insurance financing repayments | (299033) | (220363) |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of warrants | - | 10247124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from stock subscription | - | 31456374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | (299033) | 41483135 |
| NET INCREASE (DECREASE) IN CASH | (28321179) | 21006242 |
| CASH - BEGINNING OF YEAR | 32559185 | 11552943 |
| **CASH - END OF YEAR** | $**4238006** | $**32559185** |
| **SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES** |  |  |
| Insurance financing | $660120 | $210260 |
| ROU assets and operating lease obligation recognized | 300787 | - |
| Reclassification of mining equipment deposit to fixed assets, net | 26961095 | - |
| **SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION** |  |  |
| Cash paid for interest | $- | $1892 |
| Cash paid for taxes | 2057710 | - |

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