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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

LM Funding Reports First Quarter 2019 Financial Results

May 16, 2019

TAMPA, Fla., May 16, 2019 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a technology-based specialty finance and travel insurance broker company, today announced its financial results for the first quarter ended March 31, 2019.

Bruce Rodgers, LM Funding’s Chief Executive Officer, commented, “Our first quarter was highlighted by the acquisition and integration of IIU, Inc. a global medical travel insurance broker company. Going forward, we will continue to evaluate attractive acquisition opportunities to maximize shareholder value. At the same time, we remain focused on providing financing solutions to condominium and homeowner associations.”

First Quarter 2019 Financial and Operational Highlights:

-- In January 2019, LM Funding completed the accretive acquisition of IIU, Inc. (“IIU”); -- As of March 31, 2019, the Company had $3.4 million in cash as compared to $3.5 million at December 31, 2018; -- Operating revenues totaled $762,699 for the first quarter of 2019 as compared to $963,733 for the same period the year prior; -- Rental revenue, totaled $147,669 as compared to $222,445 for the same period the year prior; -- Operating expenses increased to $1.2 million as compared to $972,651 the year prior, driven by higher professional fees associated in part with fees for the IIU acquisition and operating expenses associated with IIU operations offset in part by a significant reduction in staff costs and payroll; and -- Reported a net loss of $457,018 as compared to a net loss of $8,918 for the first quarter 2018.

First Quarter Financial Results:For the quarter ended March 31, 2019, total operating revenues were $762,699, compared to $963,733 in the first quarter of 2018. This includes rental revenue of $147,669, compared to $222,445 for the quarter ended March 31, 2018. IIU generated approximately $100,000 in revenue during the first quarter of 2019.

Operating expenses for the first quarter of 2019 was $1.2 million, compared to $972,651 the year prior. This was primarily attributable to IIU acquisition expenses and $76,000 of IIU operating expenses.

Net loss for the quarter ended March 31, 2019 was $457,018, compared to a net loss of $8,918 for the first quarter of 2018.

At March 31, 2019, the Company had cash and cash equivalents of $3.4 million, compared with $3.5 million at December 31, 2018.

About LM Funding America:LM Funding America, Inc., together with its subsidiaries, is 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. The Company, through its IIU, Inc. subsidiary, also offers global medical insurance products for international travelers, specializing in policies covering high risk destination, emerging markets and foreign travelers coming to the United States. All policies are fully underwritten with no claim risk remaining with the Company.

Forward-Looking Statements: This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company’s most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. The occurrence of any of these risks and uncertainties could have a material adverse effect on the company’s business, financial condition, and results of operations.

Company Contact: Investor Contacts: Bruce Rodgers, Chairman and CEO Valter Pinto / Scott Eckstein KCSA Strategic Communications LM Funding America, Inc. Tel (212) 896-1254 / (212) 896-1210 Tel (813) 222-8996 valter@kcsa.com / seckstein@kcsa.com investors@lmfunding.com

LM Funding America, Inc. and Subsidiaries Condensed Consolidated Balance Sheets

March 31, December 31, 2019 2018 ------------- ------------- (Unaudited) ASSETS Cash $ 3,378,783 $ 3,520,753 Finance receivables: Original product - net 385,058 425,012 Special product - New Neighbor Guaranty program, net 245,255 237,043 Prepaid expenses and other assets 169,366 155,420 Due from related party - 25,507 Fixed assets, net 40,659 33,818 Real estate assets owned 52,977 122,604 Operating lease - right of use assets 24,259 - Other investments - 1,507,375 Goodwill 5,809,786 - Other Assets 32,036 32,036 - ----------- - ----------- Total assets $ 10,138,179 $ 6,059,568 - ----------- - ----------- LIABILITIES AND STOCKHOLDERS’ EQUITY Note payable $ 700,876 $ 42,875 Related party convertible note payable 3,581,982 Operating lease liability 24,494 - Accounts payable and accrued expenses 301,066 188,354 Due to related party 62,150 - Tax liability 28,426 - Other liabilities and obligations 61,734 19,690 - ----------- - ----------- Total liabilities 4,760,728 250,919 - ----------- - ----------- Stockholders’ equity: Common stock, par value $.001; 30,000,000 shares authorized; 3,134,261 and 3,124,961 shares issued and outstanding as of March 31, 2019 and December 3,134 3,125 31, 2018, respectively Additional paid-in capital 17,321,219 17,295,408 Accumulated deficit (11,946,902 ) (11,489,884 ) - ----------- - ----------- Total stockholders’ equity 5,377,451 5,808,649 - ----------- - ----------- Total liabilities and stockholders’ equity $ 10,138,179 $ 6,059,568 - ----------- - -----------

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

For the Three Months Ended March 31, ------------------------ 2019 2018 ----------- --------- Revenues: Interest on delinquent association fees $ 414,275 $ 550,862 Administrative and late fees 39,493 68,328 Recoveries in excess of cost - special product 21,770 67,537 Underwriting and other revenues 40,724 54,561 Net commission revenue 98,768 - Rental revenue 147,669 222,445 - --------- - ------- Total revenues 762,699 963,733 - --------- - ------- Operating Expenses: Staff costs and payroll 288,398 402,283 Professional fees 602,712 335,107 Settlement costs with associations 1,892 15,712 Selling, general and administrative 111,271 72,548 Provision for credit losses - 581 Real estate management and disposal 197,128 119,362 Depreciation and amortization 19,120 22,155 Collection costs (23,087 ) 602 Other operating expenses 14,496 4,301 - --------- - ------- Total operating expenses 1,211,930 972,651 - --------- - ------- Operating loss (449,231 ) (8,918 ) Interest expense 7,787 - - --------- - ------- Loss before income taxes (457,018 ) (8,918 ) Income tax benefit - - - --------- - ------- Net loss $ (457,018 ) $ (8,918 ) - --------- - ------- Loss per share: Basic $ (0.15 ) $ (0.01 ) Diluted (0.15 ) (0.01 ) Weighted average number of common shares outstanding: Basic 3,131,939 625,319 Diluted 3,131,939 625,319

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

For the Three Months ended March 31, ------------------------- 2019 2018 ----------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (457,018 ) $ (8,918 ) Adjustments to reconcile net loss to cash used in operating activities Depreciation and amortization 16,693 22,155 Right to use asset depreciation 2,426 - Stock Compensation 3,500 (540 ) Change in assets and liabilities Accounts receivable 1,643 (1,408 ) Prepaid expenses 4,147 (18,532 ) Accounts payable and accrued expenses 31,235 (139,119 ) Advances (repayments) to related party 87,657 27,480 Other liabilities 42,044 (17,644 ) Lease liability payments (2,191 ) - - --------- - -------- Net cash used in operating activities (269,864 ) (136,526 ) - --------- - -------- CASH FLOWS FROM INVESTING ACTIVITIES: Net collections of finance receivables - original product 39,954 62,264 Net collections of finance receivables - special product (8,212 ) 1,108 Net cash received from business acquisition 51,327 - Proceeds for real estate assets owned 63,183 1,085 - --------- - -------- Net cash provided by investing activities 146,252 64,457 - --------- - -------- CASH FLOWS FROM FINANCING ACTIVITIES: Principal repayments (40,678 ) (23,417 ) Exercise of warrants 22,320 - Debt issue costs - (30,000 ) - --------- - -------- Net cash used in financing activities (18,358 ) (53,417 ) - --------- - -------- NET INCREASE (DECREASE) IN CASH (141,970 ) (125,486 ) CASH - BEGINNING OF YEAR 3,520,753 590,394 - --------- - -------- CASH - END OF YEAR $ 3,378,783 $ 464,908 - --------- - -------- SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION Cash paid for interest $ 7,787 $ - Income tax $ - $ - SUPPLEMENTAL DISCLOSURES OF NON-CASHFLOW INFORMATION ROU asset obligation recognized $ 26,685 $ -