Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 10, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Title of 12(b) Security | Common Stock par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Trading Symbol | LMFA | |
Entity Registrant Name | LM FUNDING AMERICA, INC. | |
Entity Central Index Key | 0001640384 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,492,964 | |
Entity File Number | 001-37605 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3844457 | |
Entity Address, Address Line One | 1200 West Platt Street | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Tampa | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33606 | |
City Area Code | 813 | |
Local Phone Number | 222-8996 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash | $ 827,366 | $ 2,401,831 |
Digital Assets (Note 2) | 11,651,969 | 3,416,256 |
Finance receivables | 27,459 | 19,221 |
Marketable securities (Note 5) | 15,700 | 17,860 |
Receivable from sale of Symbiont assets (Note 5) | 200,000 | 200,000 |
Prepaid expenses and other assets | 2,483,368 | 4,067,212 |
Income tax receivable | 31,187 | 31,187 |
Current assets | 15,237,049 | 10,153,567 |
Fixed assets, net (Note 3) | 20,897,314 | 24,519,610 |
Deposits on mining equipment (Note 4) | 1,117,798 | 20,837 |
Notes receivable from Seastar Medical Holding Corporation (Note 5) | 1,440,498 | |
Long-term investments - equity securities (Note 5) | 753,973 | 156,992 |
Investment in Seastar Medical Holding Corporation (Note 5) | $ 1,899,484 | $ 1,145,486 |
Investment, Issuer Affiliation [Extensible Enumeration] | us-gaap:InvestmentAffiliatedIssuerMember | us-gaap:InvestmentAffiliatedIssuerMember |
Operating lease - right of use assets (Note 7) | $ 162,966 | $ 189,009 |
Other assets | 86,798 | 86,798 |
Long-term assets | 24,918,333 | 27,559,230 |
Total assets | 40,155,382 | 37,712,797 |
Liabilities and stockholders' equity | ||
Accounts payable and accrued expenses | 2,042,906 | 2,064,909 |
Note payable - short-term (Note 6) | 325,669 | 567,586 |
Due to related parties (Note 10) | $ 55,290 | $ 22,845 |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] |
Current portion of lease liability (Note 7) | $ 114,148 | $ 110,384 |
Total current liabilities | 2,538,013 | 2,765,724 |
Lease liability - net of current portion (Note 7) | 56,148 | 85,775 |
Long-term liabilities | 56,148 | 85,775 |
Total liabilities | 2,594,161 | 2,851,499 |
Stockholders' equity (Note 9) | ||
Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of March 31, 2024 and December 31, 2023 | ||
Common stock, par value $.001; 350,000,000 shares authorized; 2,492,964 shares issued and outstanding as of March 31, 2024 and 2,492,964 as of December 31, 2023 | 2,493 | 2,493 |
Additional paid-in capital | 95,327,227 | 95,145,376 |
Accumulated deficit | (56,857,610) | (58,961,461) |
Total LM Funding America stockholders' equity | 38,472,110 | 36,186,408 |
Non-controlling interest | (910,889) | (1,325,110) |
Total stockholders’ equity | 37,561,221 | 34,861,298 |
Total liabilities and stockholders’ equity | $ 40,155,382 | $ 37,712,797 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 150,000,000 | 150,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 2,492,964 | 2,492,964 |
Common stock, shares outstanding | 2,492,964 | 2,492,964 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Digital mining revenues, net | $ 4,597,908 | $ 2,090,851 |
Specialty finance revenue | 116,628 | 182,836 |
Rental revenue | 33,068 | 39,831 |
Total revenues | 4,747,604 | 2,313,518 |
Operating costs and expenses: | ||
Digital mining cost of revenues (exclusive of depreciation and amortization shown below) | 2,654,946 | 1,667,673 |
Depreciation and amortization | 2,426,068 | 801,873 |
Gain on fair value of Bitcoin, net | (4,257,515) | |
Impairment loss on mining equipment | 1,188,058 | |
Impairment loss on mined digital assets | 199,554 | |
Realized gain on sale of mined digital assets | (424,333) | |
Professional fees | 509,893 | 572,356 |
Selling, general and administrative | 177,906 | 239,464 |
Real estate management and disposal | 27,189 | 31,803 |
Collection costs | 926 | 9,808 |
Other operating costs | 214,505 | 251,911 |
Total operating costs and expenses | 4,185,002 | 4,282,944 |
Operating income (loss) | 562,602 | (1,969,426) |
Unrealized gain (loss) on marketable securities | (2,160) | 5,790 |
Impairment loss on prepaid machine deposits | (36,691) | |
Unrealized gain (loss) on investment and equity securities | 1,350,979 | (5,822,854) |
Gain on fair value of purchased Bitcoin, net | 57,926 | |
Realized gain on sale of purchased digital assets | 1,917 | |
Loss on disposal of assets | (8,170) | |
Other income - coupon sales | 4,490 | 603,591 |
Interest expense | (70,826) | |
Interest income | 9,125 | 55,077 |
Income (loss) before income taxes | 1,903,966 | (7,162,596) |
Income tax expense | 0 | |
Net Loss | 1,903,966 | (7,162,596) |
Less: loss (income) attributable to non-controlling interest | (414,221) | 1,776,264 |
Net income (loss) attributable to LM Funding America Inc. | $ 1,489,745 | $ (5,386,332) |
Basic income (loss) per common share | $ 0.61 | $ (2.41) |
Diluted income (loss) per common share | $ 0.61 | $ (2.41) |
Weighted average number of common shares outstanding: | ||
Basic | 2,428,203 | 2,232,964 |
Diluted | 2,428,203 | 2,232,964 |
Service [Member] | ||
Operating costs and expenses: | ||
Staff costs and payroll | $ 1,243,026 | $ 932,835 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ 1,903,966 | $ (7,162,596) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 2,426,068 | 801,873 |
Noncash lease expense | 26,043 | 23,224 |
Stock compensation | 71,047 | |
Stock option expense | 110,804 | 194,356 |
Accrued investment income | (8,568) | (53,734) |
Digital assets other income | (4,490) | |
Gain on fair value of Bitcoin, net | (4,315,441) | |
Impairment loss on mining machines | 1,188,058 | |
Impairment loss on digital assets | 199,554 | |
Impairment loss on hosting deposits | 36,691 | |
Unrealized loss (gain) on marketable securities | 2,160 | (5,790) |
Unrealized loss (gain) on investment and equity securities | (1,350,979) | 5,822,854 |
Loss on disposal of fixed assets | 8,170 | |
Realized gain on sale of digital assets | (426,250) | |
Change in operating assets and liabilities | ||
Prepaid expenses and other assets | 1,583,843 | 36,473 |
Advances (repayments) to related party | 32,445 | (12,659) |
Accounts payable and accrued expenses | (22,003) | 111,486 |
Mining of digital assets | (4,597,908) | (2,090,851) |
Proceeds from sale of digital assets | 1,455,141 | |
Lease liability payments | (25,863) | (22,243) |
Net cash used in operating activities | (2,972,648) | (1,092,471) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (263,596) | |
Collection of notes receivable | 1,449,066 | 1,644,834 |
Investment in digital assets | (35,157) | |
Proceeds from sale of digital assets | 1,296,233 | 33,675 |
Deposits for mining equipment | (1,096,961) | (923,687) |
Net cash from investing activities | 1,640,100 | 460,764 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Insurance financing repayments | (241,917) | (177,393) |
Net cash used in financing activities | (241,917) | (177,393) |
NET DECREASE IN CASH | (1,574,465) | (809,100) |
CASH - BEGINNING OF PERIOD | 2,401,831 | 4,238,006 |
CASH - END OF PERIOD | 827,366 | 3,428,906 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES | ||
ROU assets and operating lease obligation recognized | 0 | 21,887 |
Reclassification of mining equipment deposit to fixed assets, net | 54,876 | |
Change in accounting principle (see Note 1) | 614,106 | |
Original Product [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net collections of finance receivables | $ (8,238) | |
Special Product [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net collections of finance receivables | $ 4,695 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Non-Controlling Interest [Member] |
Balance at Dec. 31, 2022 | $ 50,797,229 | $ 2,233 | $ 92,206,200 | $ (43,017,207) | $ 1,606,003 | ||
Balance, shares at Dec. 31, 2022 | 2,232,964 | ||||||
Stock option expense | 194,356 | 194,356 | |||||
Net income (loss) | (7,162,596) | (5,386,332) | (1,776,264) | ||||
Balance at Mar. 31, 2023 | 43,828,989 | $ 2,233 | 92,400,556 | (48,403,539) | (170,261) | ||
Balance, shares at Mar. 31, 2023 | 2,232,964 | ||||||
Balance at Dec. 31, 2023 | 34,861,298 | $ 2,493 | 95,145,376 | (58,961,461) | (1,325,110) | ||
Balance, shares at Dec. 31, 2023 | 2,492,964 | ||||||
Stock option expense | 110,804 | 110,804 | |||||
Stock compensation | 71,047 | 71,047 | |||||
Net income (loss) | 1,903,966 | 1,489,745 | 414,221 | ||||
Balance at Mar. 31, 2024 | $ 37,561,221 | $ 614,106 | $ 2,493 | $ 95,327,227 | $ (56,857,610) | $ 614,106 | $ (910,889) |
Balance, shares at Mar. 31, 2024 | 2,492,964 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 1,489,745 | $ (5,386,332) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non-Rule 10b5-1 Arrangement Modified | false |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations LM Funding America, Inc. (“we”, “our”, “LMFA” or the “Company”) was formed as a Delaware corporation on April 20, 2015. LMFA is the sole member of several entities including LM Funding, LLC, which was organized in January 2008, US Digital Mining and Hosting Co., LLC, which was formed on September 10, 2021 (“US Digital”); LMFA Financing LLC, formed on November 23, 2020, and LMFAO Sponsor LLC, formed on October 29, 2020 (LMFA is a majority member of LMFAO Sponsor LLC). Additionally, US Digital has formed various 100 % owned subsidiaries to engage in business in various states in connection with its Bitcoin mining business. LMFAO Sponsor LLC formed a majority owned subsidiary LMF Acquisition Opportunities Inc. (“LMAO”) on October 29, 2020 which was organized as a special purpose acquisition company that that completed an initial public offering in January 2021, whereupon the company ceased to be majority owned by LMFA. LMF Acquisition Opportunities Inc. was subsequently merged with Seastar Medical Holding Corporation on October 28, 2022. The Company also from time to time organizes other subsidiaries to serve a specific purpose or hold a specific asset. Lines of Business The Company currently operates two lines of business: our cryptocurrency mining business and our specialty finance business. The Bitcoin mining operation deploys our computing power to mine Bitcoin on the Bitcoin network. We conduct this business through our wholly owned subsidiary, US Digital, a Florida limited liability company, which we formed in 2021 to develop and operate our cryptocurrency mining business. With respect to our specialty finance business, the Company has historically engaged in the business 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 each Association’s financial needs. Bitcoin Mining Business We obtain Bitcoin as a result of our mining operations, and we sell Bitcoin from time to time, to support our operations and strategic growth. We plan to convert our Bitcoin to U.S. dollars. We may engage in regular trading of Bitcoin or engage in hedging activities related to our holding of Bitcoin. However, our decisions to hold or sell Bitcoin at any given time may be impacted by the Bitcoin market, which has been historically characterized by significant volatility. Currently, we do not use a formula or specific methodology 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 based on working cash needs and by monitoring the market in real time. As of March 31, 2024 and December 31, 2023 , the Company had approximately 5,900 machines installed, which amounted to operating units capable of producing over 615 petahash and 615 petahash, respectively per second (“EH/s”) of computing power. Specialty Finance Company In our specialty finance business, we purchase an Association’s right to receive a portion of the Association’s collected proceeds from owners that are not paying their assessments. After taking assignment of an Association’s right to receive a portion of the Association’s proceeds from the collection of delinquent assessments, we engage law firms to perform collection work on a deferred billing basis wherein the law firms receive payment upon collection from the account debtors or a predetermined contracted amount if payment from account debtors is less than legal fees and costs owed. Principles of Consolidation The consolidated financial statements include the accounts of LMFA and its wholly-owned subsidiaries: LM Funding, LLC; LMF October 2010 Fund, LLC; REO Management Holdings, LLC (including all 100 % owned subsidiary limited liability companies); LM Funding of Colorado, LLC; LM Funding of Washington, LLC; LM Funding of Illinois, LLC; US Digital (includes all 100 % owned subsidiary limited liability companies) and LMF SPE #2, LLC and various single purpose limited liability corporations owned by REO Management Holdings, LLC which own various properties. It also includes LMFA Sponsor, LLC (a 69.5 % owned subsidiary). All significant intercompany balances have been eliminated in consolidation. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities 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 or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The interim consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and March 31, 2023, respectively are unaudited. In the opinion of management, the interim consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of the results for the interim periods. The accompanying consolidated balance sheet as of December 31, 2023, is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K for fiscal the year ended December 31, 2023. Recently adopted accounting pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-08, Intangible - Goodwill and Other -Crypto Assets (Subtopic 350-60) (“ASC 350-60”). ASC 350-60 requires entities with certain crypto assets to subsequently measure such assets at fair value, with changes in fair value recorded in net income in each reporting period. In addition, entities are required to provide additional disclosures about the holdings of certain crypto assets. Crypto assets that meet all the following criteria are within the scope of the ASC 350-60: (1) meet the definition of intangible assets as defined in the Codification (2) do not provide the asset holder with enforceable rights to or claims on underlying goods, services, or other assets (3) are created or reside on a distributed ledger based on blockchain or similar technology (4) are secured through cryptography (5) are fungible, and (6) are not created or issued by the reporting entity or its related parties. Bitcoin, which is the sole crypto asset mined by the Company, meets each of these criteria. For all entities, the ASC 350-60 amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance). If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. The Company has elected to early adopt the new guidance effective January 1, 2024 resulting in a $ 614 thousand cumulative-effect change to adjust the Company's Bitcoin held on January 1, 2024 with the corresponding entry to beginning accumulated deficit. Segment and Reporting Unit Information Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Chief Executive Officer and1 Chief Financial Officer of the Company comprise the CODM, as a group. The Company has two operating segments as of March 31, 2024, which we refer to as Specialty Finance and Mining Operations. Our corporate oversight function and other components that may earn revenues that are only incidental to the activities of the Company are aggregated and included in the “All Other” category. Refer to Note 9 - Segment Information. Reclassification Certain prior period immaterial amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. Liquidity The accompanying consolidated financial statements of the Company have been prepared assuming the Company will continue as a going concern. The going concern basis of presentation assumes that the Company will continue in operation one year after the date these financial statements are issued and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The evaluation of going concern under the accounting guidance requires significant judgment which involves the Company to consider that it has historically incurred losses in recent years as it has prepared to grow its business through expansion and acquisition opportunities. The Company must also consider its current liquidity as well as future market and economic conditions that may be deemed outside the control of the Company as it relates to obtaining financing and generating future profits. As of March 31, 2024, the Company had $ 0.8 million available cash on-hand and Bitcoin with a fair market value of $ 11.7 million. After considering its current liquidity and future market and economic conditions, the Company has concluded there is no substantial doubt about the Company’s ability to continue as a going concern. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates include the evaluation of probable losses on balances due from a related party, the realization of deferred tax assets, the evaluation of contingent losses related to litigation and reserves on notes receivables. We consider our critical accounting estimates to be those related to long-lived asset impairment assessments. Our estimates may change, however, as new events occur and additional information is obtained, and any such changes will be recognized in the consolidated financial statements. Cash The Company maintains cash balances at several financial institutions that are insured under the Federal Deposit Insurance Corporation’s (“FDIC”) Transition Account Guarantee Program. Balances with the financial institutions may exceed federally insured limits. We have approximately $ 492,000 of cash in various institutions that exceed the FDIC or SIPC insurance coverage limit of $ 250,000 . Digital Assets Bitcoin are included in current assets in the consolidated balance sheets due to the Company’s ability to sell Bitcoin in a highly liquid marketplace and such Bitcoin holdings are expected to be realized in cash or sold or consumed during the normal operating cycle of the Company. As a result of adopting ASC 350-60 on January 1, 2024, Bitcoin is measured at fair value as of each reporting period (see Recently Issued Accounting Pronouncements). The fair value of Bitcoin is measured using the period-end closing Bitcoin price from its principal market in accordance with ASC 820, Fair Value Measurement. Since Bitcoin is traded on a 24-hour period, the Company utilizes the price as of midnight UTC time, which aligns with the Company's revenue recognition cut-off. The increase and decrease in fair value from each reporting period is reflected on the consolidated statements of operation as "Gain on fair value of Bitcoin, net". The Company sells Bitcoin and such gains and losses from such transactions are measured as the difference between the cash proceeds and the carrying basis of Bitcoin as determined on a First In-First Out ("FIFO") basis and are recorded within "Gain on fair value of Bitcoin, net". Prior to issuance of the ASU 2023-08 and adoption of ASC 350-60, Bitcoin were recorded at cost less impairment and were classified as indefinite-lived intangible assets in accordance with ASC 350, Intangibles — Goodwill and Other. An intangible asset with an indefinite useful life was not amortized but was assessed for impairment annually, or more frequently, when events or changes in circumstances occurred indicating that it was more likely than not that the carrying amount of the indefinite-lived asset exceeded its fair value. The Company determined the fair value of Bitcoin in accordance with ASC 820, Fair Value Measurement, based on lowest intraday quoted prices from our principal market for such assets (Level 1 inputs). We performed an analysis each month to identify whether events or changes in circumstances indicate that it is more likely than not that our digital assets were impaired. If the carrying value of a digital asset exceeded the fair value so determined, an impairment loss had occurred with respect to those digital assets in the amount equal to the difference between their carrying values and the fair value. To the extent an impairment loss was recognized, the loss established the new cost basis of the asset and subsequent reversal of impairment losses was not permitted under ASC 350, Intangibles – Goodwill and Other. Additionally, in the previous guidance, subsequent increases in Bitcoin prices are not allowed to be recorded (unrealized gains) unless the Bitcoin is sold, at which point the gain is recognized. Accordingly, gains (losses) recognized on fair value of Bitcoin in fiscal year 2024 are not comparable to fiscal year 2023. Bitcoin, which is non-cash consideration earned by the Company through its mining activities, are included as a reconciling item as a cash outflow within operating activities on the accompanying consolidated statements of cash flows. The cash proceeds from the sales of Bitcoin are classified based on the holding period in which the Bitcoin are held. ASC 350-60 specifies that Bitcoin converted nearly immediately into cash would qualify as cash flows from operating activities and all oth er sales would qualify as investing activities. In prior fiscal periods, the Company did not hold its Bitcoin for extended periods of time and such sales proceeds prior to the adoption of ASC 350-60 were reported as cash flows from operating activities. Upon adoption of ASC 350-60, the Company evaluates its sales of Bitcoin and will record Bitcoin sold nearly immediately as operating cash flows and the remainder will be recorded as investing activities. During the quarter ended March 31, 2024, all proceeds from Bitcoin sales were classified as investing activities. Investment in Securities Investment in Securities includes investments in common stocks and convertible notes receivables. Investments in securities are reported at fair value with changes in unrecognized gains or losses included in other income on the income statement. Investments in Unconsolidated Entities We account for investments in less than 50 % owned and more than 20 % owned entities using the equity method of accounting. Because we have elected the fair value option for these securities, unrealized holding gains and losses during the period are included in other income within the Consolidated Statements of Operation. Fair Value of Financial Instruments FASB ASC 825-10, Financial Instruments , requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet. Fixed Assets The Company capitalizes all acquisitions of fixed assets in excess of $ 500 . Fixed assets are stated at cost, net of accumulated depreciation. State and local use tax for equipment shipped from overseas is generally accrued on a quarterly basis at the time equipment is placed in service and is paid to the state in which the equipment is being utilized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and commences once the assets are ready for their intended use. Fixed assets are comprised of furniture, computer, office equipment, buildings and mining machines with assigned useful lives of 3 to 30 years. The Company classifies mining machine deposit payments within "Deposits on mining equipment" in the consolidated balance sheets. As mining machines are received, the respective cost of the mining machines plus the related shipping and customs fees are reclassified from "Deposits on mining equipment" to "Fixed assets, net" in the consolidated balance sheet. Refer to Note 4 - Deposits on Mining Equipment and Hosting Services. In addition, as part of its periodic review of its fixed asset groups during the fourth quarter of 2023, the Company changed the estimated useful life for its mining machines from 5 years to 4 years . The change was accounted for on a prospective basis. The Company operates in an emerging industry for which limited data is available to make estimates of the useful economic lives of mining machines. To the extent that any of the assumptions underlying management’s estimate of useful life of its mining machines are subject to revision in a future reporting period, either as a result of changes in circumstances or through the availability of greater quantities of data, then the estimated useful life could change and have a prospective impact on depreciation expense and the carrying amounts of these assets. Equipment Purchases We ordered 300 S21 Bitmain machines in January 2024 for an aggregate purchase price of approximately $ 1.1 million which were delivered in two shipments, March 2024 and April 2024. Right to Use Assets The Company capitalizes all leased assets pursuant to ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. As of March 31, 2024 and December 31, 2023 right to use assets, net of accumulated amortization, was $ 163 thousand and $ 189 thousand. Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment amount is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. There was $ 1.2 million and nil impairment loss recorded on fixed assets during the three months ended March 31, 2024 and 2023, respectively. Refer to Note 3 - Fixed Assets. Hosting Contracts On September 5, 2022, the Company, through its wholly-owned subsidiary US Digital, entered into a hosting agreement (the “Core Hosting Agreement”) with Core Scientific Inc. (“Core”) pursuant to which Core, under various additional orders, agreed to host approximately 3,000 of the Company's Bitcoin miner machines at a secure location and provide power, maintenance and other services specified in the contract with a term of one year, with automatic renewals unless either party notifies the other party in writing not less than ninety ( 90 ) calendar days before such renewal of its desire for the order not to renew unless terminated sooner pursuant to the terms of the Core Hosting Agreement. The Company entered into a number of amendments in 2023 and 2024 that resulted in Core hosting a total of approximately 4,870 miners. The amended Hosting Agreement results in the terms of the hosting arrangement expiring with respect to approximately 4,400 miners on May 31, 2024 while allowing the terms of the hosting arrangement to continue with respect to approximately 800 miners through December 31, 2024. As required under the Core Hosting Agreement, the Company has paid approximately $ 1.5 milli on as of March 31, 2024 and $ 2.2 million as of December 31, 2023 as a deposit. Under the terms of the amended Hosting Agreement, the deposit for the miners that will be removed in May 2024 is being applied to our invoices. In December 2022, Core filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. Core's bankruptcy filing has not negatively impacted our mining ability at their sites as of the date of this filing. On May 5, 2023, the Company entered into a hosting agreement (the “GIGA Hosting Agreement”) with GIGA Energy Inc. (“GIGA”) pursuant to which GIGA agreed to host 1,080 of the Company's Bitcoin Miner S19J Pro machines at a secure location and provide power, maintenance and other services specified in the contract with a term of one year. On April 12, 2024, the Company amended the contract to allow for an extension of the contract with a 60 day termination notice. As required under the GIGA Hosting Agreemen t, the Company paid $ 173 thousand as a pre-payment in May 20 23 and paid a refundable deposit of $ 173 thousand in August 2023. Revenue Recognition – Bitcoin Mining We recognize revenue in accordance with generally accepted accounting principles as outlined in ASC 606, Revenue From Contracts with Customers, which requires that five steps be followed in evaluating revenue recognition: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation. Our accounting policy on revenue recognition for our Bitcoin mining segment is provided below. Step 1: The Company enters into a contract with a Bitcoin mining pool operator (i.e., the customer) to provide computing power to the mining pools. The contract is terminable at any time by either party and the Company’s enforceable right to compensation only begins when the Company starts providing computing power to the mining pool operator (which occurs daily at midnight Universal Time Coordinated (UTC)). When participating in ratable share pools, in exchange for providing computing power the Company is entitled to a fractional share of the Bitcoin award the mining pool operator receives for successfully adding a block to the blockchain, plus a fractional share of the transaction fees attached to that blockchain. The Company’s fractional share is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm. When participating in a Full Pay Per Share (“FPPS”) mining pool, in exchange for providing computing power to the pool the Company is entitled to compensation, calculated on a daily basis, at an amount that approximates the total Bitcoin that could have been mined using the Company’s computing power, calculated on a look-back basis across previous blocks using the pools hash rate index. Applying the criteria per ASC 606-10-25-1, the contract arises at the point that the Company provides computing power to the mining pool operator, which is beginning contract day at midnight UTC (contract inception), because customer consumption is in tandem with daily earnings of delivery of the computing power. Step 2: In order to identify the performance obligations in a contract with a customer, the Company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct); and The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). Based on these criteria, the Company has a single performance obligation in providing computing power services (i.e., hashrate) to the mining pool operator (i.e., customer). The performance obligation of computing power services is fulfilled daily over-time, as opposed to a point in time, because the Company provides the hashrate throughout the day and the customer simultaneously obtains control of it and uses the asset to produce Bitcoin. The Company has full control of the mining equipment utilized in the mining pool and if the Company determines it will increase or decrease the processing power of its machines and/or fleet (i.e., for repairs or when power costs are excessive) the computing power provided to the customer will be reduced. Step 3: The transaction consideration the Company earns is non-cash digital consideration in the form of Bitcoin, which the Company measures at fair value on the date earned at the daily closing price, which is not materially different from the fair value at contract inception. The transaction consideration the Company earns is all variable since it is dependent on the daily computing power provided by the Company under the FPPS model and total Bitcoin earned by the under the ratable share model. The Company’s Bitcoins earned through the contractual payout formula is not known until the Company’s computational hashrate contributed over the daily measurement period is fulfilled over-time daily between midnight-to-midnight UTC time. The Company’s proportionate amount of the global network transaction fee rewards earned are calculated at the end of each transactional day (midnight to midnight). There are no other forms of variable considerations, such as discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties, or other similar items. The Company does not constrain this variable consideration because it is probable that a significant reversal in the amount of revenue recognized from the contract will not occur when the uncertainty is subsequently resolved and recognizes the noncash consideration on the same day that control is transferred, which is the same day as contract inception. Step 4: The transaction price is allocated to the single performance obligation upon verification for the provision of computing power to the mining pool operator, and total Bitcoin rewards earned by the pool, when applicable under a ratable share model. There is a single performance obligation (i.e., computing power or (hashrate) for the contract; therefore, all consideration from the mining pool operator is allocated to this single performance obligation. Step 5: The Company’s performance is complete in transferring the hashrate service over-time (midnight to midnight) to the customer and the customer obtains control of that asset. In exchange for providing computing power, the Company is entitled to a pro-rata share of the fixed Bitcoin awards earned over the measurement period, plus a pro-rata fractional share of the global transaction fee rewards for the respective measurement period, less net digital asset fees due to the mining pool operator over the measurement period, as applicable. The transaction consideration the Company receives is non-cash consideration, in the form of Bitcoin. The Company measures the Bitcoin at fair value on the date earned using the closing price of Bitcoin on the date earned (midnight UTC), which is not materially different from the fair value at contract inception. There are no deferred revenues or other liability obligations recorded by the Company since there are no payments in advance of the performance. At the end of the 24 hour “midnight-to-midnight” period, there are no remaining performance obligations. Bitcoin earned by the Company through its mining activities are included within operating activities on the accompanying consolidated statements of cash flows. Cost of Revenues The Company includes energy costs and external co-location mining hosting fees in cost of revenues. Depreciation of mining machines is included within "Depreciation and amortization" in the Consolidated Statements of Operations. Revenue Recognition - Specialty Finance Accounting Standards Codification (“ASC”) 606 of the Financial Accounting Standards Board (“FASB”) states an entity needs to conclude at the inception of the contract that collectability of the consideration to which it will be entitled in exchange for the goods and services that will be transferred to the customer is probable. That is, in some circumstances, an entity may not need to assess its ability to collect all of the consideration in the contract. The Company provides funding to Associations by purchasing their rights under delinquent accounts from unpaid assessments due from property owners. Collections on the Accounts may vary greatly in both the timing and amount ultimately recovered compared with the total revenues earned on the Accounts because of a variety of economic and social factors affecting the real estate environment in general . The Company’s contracts with its specialty finance customers have very specific performance obligations. The Company has determined that the known amount of cash to be realized or realizable on its revenue generating activities cannot be reasonably estimate and as such, classifies its finance receivables as nonaccrual and recognizes revenues in the accompanying statements of income on the cash basis or cost recovery method in accordance with ASC 310-10, Receivables . The Company’s operations also consist of rental revenue earned from tenants under leasing arrangements which provide for rent income. The leases have been accounted for as operating leases. For operating leases, revenue is recorded based on cash rental payments was collected during the period. The Company analyzed its remaining revenue streams and concluded there were no changes in revenue recognition with the adoption of the new standard. Under ASC 606, the Company applies the cash basis method to its original product and the cost recovery method to its special product as follows: Finance Receivables—Original Product : Under the Company’s original product, delinquent assessments are funded only up to the Super Lien Amount as discussed above. Recoverability of funded amounts is generally assured because of the protection of the Super Lien Amount. As such, payments by unit owners on the Company’s original product are recorded to income when received in accordance with the provisions of the Florida Statute (718.116(3)) and the provisions of the purchase agreements entered into between the Company and Associations. Those provisions require that all payments be applied in the following order: first to interest, then to late fees, then to costs of collection, then to legal fees expended by the Company and then to assessments owed. In accordance with the cash basis method of recognizing revenue and the provisions of the statute, the Company records revenues for interest and late fees when cash is received. In the event the Company determines the ultimate collectability of amounts funded under its original product are in doubt, payments are applied to first reduce the funded or principal amount. Finance Receivables—Special Product (New Neighbor Guaranty program) : During 2012, the Company began offering associations an alternative product under the New Neighbor Guaranty program whereby the Company will fund amounts in excess of the Super Lien Amount. Under this special product, the Company purchases substantially all of the delinquent assessments owed to the association, in addition to all accrued interest and late fees, in exchange for payment by the Company of (i) a negotiated amount or (ii) on a going forward basis, all monthly assessments due for a period up to 48 months. Under these arrangements, the Company considers the collection of amounts funded is not assured and under the cost recovery method, cash collected is applied to first reduce the carrying value of the funded or principal amount with any remaining proceeds applied next to interest, late fees, legal fee |
Digital Asset
Digital Asset | 3 Months Ended |
Mar. 31, 2024 | |
Digital Assets [Abstract] | |
Digital Asset | Note 2. Digital Asset Digital assets consisted of the following: March 31, 2024 December 31, 2023 March 31, 2023 Bitcoin $ 11,637,319 $ 3,406,096 $ 1,751,914 Tether 14,650 10,160 - Total digital assets $ 11,651,969 $ 3,416,256 $ 1,751,914 Bitcoin March 31, 2024 December 31, 2023 March 31, 2023 Number of Bitcoin held 163.4 95.1 83.6 Carrying basis - per Bitcoin $ 48,046 $ 35,816 $ 20,956 Fair value - per Bitcoin $ 71,306 $ 42,273 $ 28,486 Carrying basis of Bitcoin $ 7,850,671 $ 3,406,096 $ 1,751,914 Fair value of Bitcoin $ 11,637,319 $ 4,020,202 $ 2,381,442 The carrying basis represents the valuation of Bitcoin at the time the Company earns the Bitcoin through mining activities. The carrying basis for Bitcoin held prior to the adoption of ASU 2023-08 was determined on the "cost less impairment" basis. Fair value of Bitcoin was determined using Level 1 inputs. The following table presents a roll-forward of Bitcoin for the three months ended March 31, 2024, based on the fair value model under ASU 2023-08: March 31, 2024 Bitcoin as of December 31, 2023 $ 3,406,096 Cumulative effect of the adoption of ASU 2023-08 (See Note 1) 614,106 Beginning balance: Bitcoin as of January 1, 2024 4,020,202 Addition of Bitcoin from mining activities 4,597,908 Disposition of Bitcoin from sales ( 1,296,232 ) Gain on fair value of Bitcoin, net 4,315,441 End of period $ 11,637,319 During the three months ended March 31, 2024, the Company realized total gains on Bitcoin of $ 519 thousand and did no t realize any losses on Bitcoin. The following table presents a roll-forward of Bitcoin for the three months ended March 31, 2023, prior to the adoption of ASU 2023-08, based on the cost less impairment model under ASC 350: March 31, 2023 Beginning of year $ 888,026 Purchase of Bitcoin 35,157 Production of Bitcoin 2,090,851 Impairment loss on mined Bitcoin ( 199,554 ) Carrying amount of Bitcoin sold ( 1,062,566 ) End of period 1,751,914 |
Fixed Assets, net
Fixed Assets, net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, net | Note 3. Fixed Assets, net The components of fixed assets as of March 31, 2024 and December 31, 2023 are as follows: Useful Life (Years) March 31, 2024 December 31, 2023 Mining machines 4 $ 28,602,298 $ 29,799,782 Real estate assets owned 30 80,057 80,057 Furniture, computer and office equipment 3 - 5 230,062 230,063 Gross fixed assets 28,912,417 30,109,902 Less: accumulated depreciation ( 8,015,103 ) ( 5,590,292 ) Fixed assets, net $ 20,897,314 $ 24,519,610 As of March 31, 2024 and December 31, 2023, there were approximately 5,900 mining machines in service at various hosting sites. The Company’s depreciation expense recognized for the three months ended March 31, 2024 and 2023 was $ 2.4 million and $ 0.8 million, respectively . In order to accommodate an expected incoming shipment of S 21 mining machines in April 2024, management identified 365 mining machines at a Core hosting facility that would require relocation. As part of its impairment testing management considered the possible cashflows and probabilities associated with the relocation and continued use of 365 mining machines at a separate hosting facility location and the potential sale of such assets to a third party. Based on the assessment performed, management concluded a sale was probable and an impairment of $ 1.2 M on the mining machines was recorded as of March 31, 2024, which was calculated as the net carrying value of the 365 mining machines of $ 1.3 M less the expected sales price of $ 79 thousand. The loss was recorded on our Consolidated Statements of Operations as "Impairment loss on mining equipment" for the three months ended March 31, 2024. On April 16, 2024, the 365 mining machines were sold to a third party for $ 79 thousand. There was no additional loss recognized upon the asset sale. There was no impairment loss recorded on fixed assets during the three months ended March 31, 2023. |
Deposits On Mining Equipment an
Deposits On Mining Equipment and Hosting Services | 3 Months Ended |
Mar. 31, 2024 | |
Deposits on Mining Equipment and Hosting Services [Abstract] | |
Deposits on Mining Equipment and Hosting Services | Note 4. Deposits on Mining Equipment and Hosting Services As further described in Note 1, the Company has entered into a series of mining machine purchase agreements, hosting and colocation service agreements in connection with our cryptocurrency mining operations which required deposits to be paid in advance of the respective asset or service being received. As of March 31, 2024 and December 31, 2023, the Company has a total of $ 1.1 million and $ 20 thousand, respectively, classified as "Deposits on mining equipment". As of March 31, 2024 and December 31, 2023, the Company has a total of $ 1.7 million and 3.1 million in hosting deposits, respectively, classified as "Prepaid expenses and Other assets" as these assets are associated with hosting contracts that expire in 2024. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Investments | Note 5. Investments Marketable Securities Our marketable equity securities are publicly traded stocks measured at fair value using quoted prices for identical assets in active markets and classified as Level 1 within the fair value hierarchy. Marketable equity securities as of March 31, 2024 and December 31, 2023, and activity for the three months ended March 31, 2024 and year ended December 31, 2023, are as follows: Cost Cost of Shares Sold Gross Unrealized Gain (Loss) Fair Value Marketable equity securities, March 31, 2024 $ 17,860 $ - $ ( 2,160 ) $ 15,700 Marketable equity securities, December 31, 2023 $ 743,906 $ ( 739,616 ) $ 13,570 $ 17,860 No marketable securities were sold during the three months ended March 31, 2024 and 2023. Notes receivable from Sale of Symbiont assets The Company entered into a secured promissory note and loan agreement with Symbiont.IO, Inc. (“Symbiont”) on December 1, 2021 under which the Company loaned Symbiont an aggregate principal amount of $ 2 million bearing interest at a rate of 16 % per annum. The outstanding principal, plus any accrued and unpaid interest, became due and payable on December 1, 2022 but was not paid. The Symbiont note was secured by a first priority perfected security interest in the assets of Symbiont. Symbiont filed for bankruptcy on December 1, 2022. On June 5, 2023, the Company purchased substantially all of the assets of Symbiont (the “Symbiont Assets”) by means of a credit bid of the full amount of the note payable owed by Symbiont to the Company. The Symbiont Assets were comprised principally of intellectual property and software code relating to Symbiont’s financial services blockchain enterprise platform. The assets were recorded as intangible assets at an amount equal to the total consideration of $ 2.8 million. On December 26, 2023, the Company entered into an asset purchase agreement with Platonic Holdings, Inc. (“Platonic”) pursuant to which we agreed to sell to Platonic the Symbiont Assets. The sale of the Symbiont Assets closed on December 27, 2023. The sales proceeds were $ 2.0 million, of which $ 0.2 million is being held in a customary indemnity escrow until December 26, 2024. Amounts held in escrow are recorded as "Receivable from the sale of Symbiont assets" in the consolidated balance sheets as of March 31, 2024 and December 31, 2023. Notes receivable from Seastar Medical Holding Corporation As of March 31, 2024, there was no outstanding principal and accrued interest and as of December 31, 2023, there was $ 1,127 thousand of principal and $ 13 thousand of accrued interest on the Amended Sponsor Note included in "Note receivable from Seastar Medical Holding Corporation" on the consolidated balance sheets. As of March 31, 2024, there was no outstanding principal and accrued interest and as of December 31, 2023, there was $ 296 thousand of principal and $ 3 thousand of accrued interest on the amended LMFA Note in "Notes receivable from Seastar Medical Holding Corporation" on the consolidated balance sheets. On January 29, 2024 Seastar fully repaid the remaining balance of principal and accrued interest on the Notes which totaled approximately $ 1.4 million as of the payoff date. March 31, 2024 December 31, 2023 March 31, 2023 Notes receivable from Seastar Medical Holding Corporation $ - $ 1,440,498 $ 2,216,649 End of period $ - $ 1,440,498 $ 2,216,649 March 31, 2024 March 31, 2023 Beginning of year $ 1,440,498 $ 3,807,749 Repayment of Seastar Medical Holding Corporation notes receivable ( 1,449,066 ) ( 1,644,834 ) Accrued interest income 8,568 53,734 End of period $ - $ 2,216,649 Long-term Investments Long-term investments held to maturity in equity securities consist of the following: LMF Acquisition Opportunities Inc. and SeaStar Medical - Warrants The Company, through its affiliate LMFA Sponsor LLC ("Sponsor"), owns an aggregate 5,738,000 private placement warrants in SeaStar Medical, Inc., a Delaware corporation (“SeaStar Medical”). For the three months ended March 31, 2024 and 2023, our re-measurement of the fair value of the private placement warrants resulted in an unrealized gain of approximately $ 597 thousand and unrealized loss of $ 26 thousand, respectively. The unrealized loss is included within "Unrealized gain on investment and equity securities" within the consolidated statements of operations. Long-term investments for the SMHC (formerly LMAO) warrants consist of the following: March 31, 2024 December 31, 2023 March 31, 2023 Seastar Medical Holding Corporation (formerly LMAO) warrants $ 753,973 $ 156,992 $ 437,924 End of period $ 753,973 $ 156,992 $ 437,924 March 31, 2024 March 31, 2023 Beginning of year $ 156,992 $ 464,778 Unrealized gain (loss) on equity securities 596,981 ( 26,854 ) End of period $ 753,973 $ 437,924 SeaStar Medical Holding Corporation - Common Stock As of March 31, 2024 and December 31, 2023, Sponsor holds 2,587,500 shares, or approximately 3.4 % of the total common shares of SeaStar Medical, along with 5,738,000 private placement warrants. Taking into consideration the approximately 30 % minority interest in Sponsor, the percentage of ownership in the total common shares of SeaStar Medical that is attributable to the Compa ny is approximately 2.4 %. Our investment in SeaStar Medical common stock qualifies for equity-method accounting, for which we have elected the fair value option which requires the Company to remeasure our retained interest in SeaStar Medical at fair value and include any resulting adjustments as part of a gain or loss on investment. The fair value calculation related to our retained interest in SeaStar Medical is based upon the observable trading price of SeaStar Medicals Class A common stock. The Company determined that our investment in SeaStar Medical meets the criteria for the equity method of accounting, for which we have elected the fair value option. We remeasure our retained interest in SeaStar Medical's common stock at fair value and include any resulting adjustments as part of our gain or loss on investments. The fair value of our retained interest in SeaStar Medical's common stock is classified as Level 1 in the fair value hierarchy as the fair value is based upon the observable trading price of ICU common stock. The trading price of ICU common stock as of March 31, 2024 and 2023 was $ 0.73 and $ 1.86 pe r share, respectively. Changes in fair value are recorded in the income statement during the period of change. For the three months ended March 31, 2024 and 2023 , our re-measurement of the fair value of ICU common stock resulted in an unrealized gain of approximately $ 0.8 million and unrealized loss of approximately $ 5.8 million, respectively. The unrealized gain (loss) is included within "Unrealized gain (loss) on investment and equity securities" within the consolidated statements of operations. Long-term investments for the SeaStar Medical common stock consist of the following: March 31, 2024 December 31, 2023 March 31, 2023 Seastar Medical Holding Corporation common stock $ 1,899,484 $ 1,145,486 $ 4,812,750 End of period $ 1,899,484 $ 1,145,486 $ 4,812,750 March 31, 2024 March 31, 2023 Beginning of year $ 1,145,486 $ 10,608,750 Unrealized gain (loss) on equity investment 753,998 ( 5,796,000 ) End of period $ 1,899,484 $ 4,812,750 The net unrealized gain (loss) on securities from the Company’s investment in SeaStar Medical's common stock and warrants totaled approximately $ 1.4 million and ($ 5.8 ) million for the three months ended March 31, 2024 and 2023, respectively. |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements | Note 6. Debt and Other Financing Arrangements Debt of the Company consisted of the following at March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Financing agreement with Imperial PFS that is unsecured. Down payment of $ 3,438 was required upfront and equal installment payments of $ 3,658 to be made over a 11 month period. The note matures on July 1, 2024 . Annualized interest is 12.05 %. 10,973 21,945 Financing agreement with Imperial PFS that is unsecured. Down payment of $ 36,544 was required upfront and equal installment payments of $ 41,879 to be made over an 10 month period. The note matures on August 1, 2024 . Annualized interest is 9.6 %. 209,386 335,022 Financing agreement with Imperial PFS that is unsecured. Down payment of $ 30,000 was required upfront and equal installment payments of $ 35,103 to be made over a 6 month period. The note matures on June 1, 2024 . Annualized interest is 12.05 %. 105,310 210,619 $ 325,669 $ 567,586 Minimum required principal payments on the Company's debt as of March 31, 2024 are as follows: Maturity Amount 2024 $ 325,669 $ 325,669 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7. Commitments and Contingencies Leases The Company leases certain office space and office equipment under non-cancelable operating leases. Leases with an initial term of one year or less are not recorded on the balance sheet, and the Company generally recognizes lease expense for these leases on a straight-line basis over the lease term. As of March 31, 2024, the Company’s long term operating leases have remaining lease terms of 17 - 26 months and include options to renew the lease. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants. The Company does not have any material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease right-of-use ("ROU") assets and current and long-term operating lease liabilities are separately stated on the Consolidated Balance Sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The present value of future lease payments are discounted using either the implicit rate in the lease, if known, or the Company’s incremental borrowing rate for the specific lease as of the lease commencement date. The ROU asset is also adjusted for any prepayments made or incentives received. The lease terms include options to extend or terminate the lease only to the extent it is reasonably certain any of those options will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company accounts for lease components (e.g., fixed payments) separate from the non-lease components (e.g., common-area maintenance costs) for its building lease. For office equipment, the company does not separate lease components (e.g., fixed payments) from the non-lease components (e.g., service costs). The Company’s office lease began July 15, 2019 and is due to expire on July 31, 2025 . This office space is in a building owned by a board member. The Company shares this space and the related costs associated with this operating lease with a related party (see Note 10 - Related Party Transactions) that also performs legal services associated with the collection of delinquent assessments. The related party has a sub-lease for approximately $ 2,500 per month plus operating expenses. On February 27, 2023, the Company executed a lease for office equipment which has been classified as an operating lease. The lease term is 39 months. As of the effective date of the lease, the Company recorded an adjustment to the right-of-use asset and lease liability in the amount of $ 22 thousand based on the net present value of lease payments discounted using an estimated incremental borrowing rate of 7.35 %. Lease expense recognized for the three months ended March 31, 2024 and 2023 was approximately $ 29 thousand and $ 28 t housand, respectively. Sub-lease income for the three months ended March 31, 2024 and 2023 was approximately $ 7 thousand and $ 15 thousand, respectively. The following table presents supplemental balance sheet information related to operating leases as of March 31, 2024 and December 31, 2023: Balance Sheet Line Item March 31, 2024 December 31, 2023 Assets ROU assets Right of use asset, net $ 162,966 $ 189,009 Total lease assets $ 162,966 $ 189,009 Liabilities Current lease liabilities Lease liability $ 114,148 $ 110,384 Long-term lease liabilities Lease liability 56,148 85,775 Total lease liabilities $ 170,296 $ 196,159 Weighted-average remaining lease term (in years) 1.5 1.7 Weighted-average discount rate 7.49 % 7.49 % The following table presents supplemental cash flow information and non-cash activity related to operating leases for the three months ended March 31, 2024 and 2023: March 31, 2024 2023 Operating cash flow information Cash paid for amounts included in the measurement of lease liabilities $ ( 25,863 ) $ ( 22,243 ) Non-cashflow information ROU assets and operating lease obligation recognized $ - $ 21,887 The following table presents maturities of operating lease liabilities on an undiscounted basis as of March 31, 2024: Lease Maturity Table Operating Leases 2024 92,011 2025 85,324 2026 3,163 (less: imputed interest) ( 10,202 ) $ 170,296 Legal Proceedings Except as described below, we are not currently a party to material pending or known threatened litigation proceedings. However, we frequently become party to litigation in the ordinary course of business, including either the prosecution or defense of claims arising from contracts by and between us and client Associations. Regardless of the outcome, litigation can have an adverse impact on us because of prosecution, defense, and settlement costs, diversion of management resources and other factors. The Company accrues for contingent obligations, including estimated legal costs, when the obligation is probable and the amount is reasonably estimable. As facts concerning contingencies become known, the Company reassesses its position and makes appropriate adjustments to the consolidated financial statements. Estimates that are particularly sensitive to future changes include those related to tax, legal, and other regulatory matters. In October 2021, we entered into a sale and purchase agreement (the “Uptime Purchase Agreement”) with Uptime Armory LLC (“Uptime”) pursuant to which US Digital agreed to purchase, and Uptime agreed to supply to US Digital, an aggregate of 18 modified 40-foot cargo containers (“POD5ive containers”) that will be designed to hold and operate 280 S19 Pro Antminers manufactured by Bitmain. The purchase price of the POD5ive containers totals $ 3.15 million, of which $ 2.4 million or 75 % was paid in 2021 as a non-refundable down payment and the remaining 25 % was paid after Uptime delivered a “notice of completion” of the equipment in 2022. However, no containers have been delivered as of December 31, 2023. On November 8, 2022, LMFA filed an action in Florida circuit court against Uptime Armory, LLC and Bit5ive, LLC in a case styled US Digital Mining and Hosting Co. LLC v. Uptime Amory, LLC and Bit5ive, LLC (Fla. 11thCir. Ct., November 8, 2022). In that action, we alleged breach of contract and violation of the Florida Deceptive and Unfair Trade Practices Act and are seeking, among other things, damages of $ 3.15 million for non-delivery of the 18 POD5ive containers. The Defendants in this action filed a motion to compel confidential arbitration action. The court has now stayed the action in the Florida Circuit Court, and ordered the parties to confidential arbitration governed by the American Arbitration Association and the case is proceeding to arbitration. We recorded an impairment charge of $ 3.15 million on our mining machine deposit in the fourth quarter of 2022 and is reported on our Consolidated Statements of Operations as Impairment loss on prepaid mining machine deposits. The arbitrator has ruled in favor of US Digital’s dispositive motions against Uptime Armory and Bit5ive. Entities Uptime Armory, LLC, Uptime Hosting, LLC, and Bit5ive, LLC have filed for Assignment for the Benefit of Creditors. LMFA US Digital’s Proof of Claim against entities was filed in the Circuit Court of the eleventh Judicial Circuit, in and for Miami-Dade County, Florida in the amount of Arbitrator’s award of $ 3.2 million (owed joint and several with Bit5ive, LLC). In October 2021, US Digital also entered into a hosting agreement with Uptime Hosting LLC (the “Hosting Agreement”) to host the Company’s 18 POD5ive containers at a secure location and provide power, maintenance and other services specified in the contract for 6 cents per kilowatt with a term of one year. Under the Hosting Agreement we paid a deposit of $ 0.8 million in 2021 and were required to pay an additional deposit for each container three months prior to delivery at the hosting site of $ 44 thousand and a final deposit for each container one month prior to arrival at the hosting site of $ 44 thousand. The deposits paid for hosting services under the Hosting Agreement are refundable. On June 29, 2022, the Company and Uptime Hosting LLC entered into a Release and Termination Agreement in which the Hosting Agreement was terminated and Uptime Hosting LLC agreed to pay the $ 0.8 million. We recorded an impairment charge of $ 0.8 million on our prepaid hosting deposit in the fourth quarter of 2022 which is reported on our Consolidated Statements of Operations as Impairment loss on prepaid hosting deposits. On September 2, 2022 , LMFA filed in Florida circuit court a legal action against Uptime Hosting LLC in an action styled US Digital Mining and Hosting Co, LLC v. Uptime Hosting, LLC (Fla. 13thCir. Ct. Sept. 2, 2022) for the return of the deposit and other damages, alleging breach of contract and violation of the Florida Deceptive and Unfair Trade Practices Act. LMFA has amended its complaint. This is now an action for (i) breach of contract against Uptime and Bit5ive, (ii) violation of Florida’s Uniform Fraudulent Transfer Act against Uptime; (iii) violation of Florida’s Uniform Fraudulent Transfer Act against Bit5ive; (iv) violation of Florida’s Uniform Fraudulent Transfer Act against Block Consulting and Robert Collazo (v) violation of Florida Fraudulent Asset Conversion against Block Consulting Services, 6301 Southwest Ranches, LLC, Robert D Collazo, Jr. and Elyam Moral-Collazo; (vi) violation of Florida Deceptive and Unfair Trade Practices Act against all Defendants, (vii) equitable lien against Robert D Collazo, Jr., Elyam Moral-Collazo and 6301 Southwest Ranches, LLC., and (viii) equitable lien against Defendants Robert D Collazo, Jr., Elyam Moral-Collazo and 6301 Southwest Ranches, LLC. Currently the proceedings have been stayed by the court while defendants seek new counsel. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8. Stockholders’ Equity Reverse Stock Split On February 23, 2024, the Board approved a one-for-six ( 1:6 ) reverse split of the Company’s issued and outstanding common stock, par value $ 0.001 per share, pursuant to which every six outstanding shares of common stock was converted into one share of common stock (the “Reverse Stock Split”). The Reverse Stock Split was effected by the filing of an amendment to our Certificate of Incorporation on March 7, 2024 which provided that the Reverse Stock Split become effective at 12:01 a.m. eastern time on March 12, 2024. The amendment provided that no fractional shares shall be issued and, in lieu thereof, any person who would otherwise be entitled to a fractional share of common stock as a result of the Reverse Stock Split would be entitled to receive one share of common stock. The Company’s common stock began trading on The Nasdaq Capital Market on a split-adjusted basis on March 12, 2024. The Company has retroactively adjusted all share amounts and per share data herein to give effect to the Reverse Stock Split. Stock Options The following is a summary of the stock option plan activity during the three months ended March 31, 2024 and 2023: 2024 2023 Number of Weighted Average Number of Weighted Average Options Exercise Price Options Exercise Price Options outstanding at beginning of the year 599,597 $ 9.00 186,877 $ 19.56 Granted - - - - Cancelled - - - - Forfeited - - - - Options outstanding at March 31, 599,597 $ 9.00 186,877 $ 19.56 Options exercisable at March 31, 383,152 $ 10.81 34,402 $ 67.20 Stock compensation expense recognized for t he three months ended March 31, 2024 and 2023 related to stock options was approximately $ 0.1 million and $ 0.2 million, respectively. There was $ 0.5 million of unrecognized compensation cost associated with unvested stock options remaining as of March 31, 2024. The aggregate intrinsic value of the outstanding common stock options as of March 31, 2024 and December 31, 2023 was nil . The remaining weighted average life of the options as of March 31, 2024 was approximately 8.8 years. Stock Issuance The following is a summary of the restricted share activity during the three months ended March 31, 2024 and 2023: 2024 2023 Number of Weighted Average Number of Weighted Average Restricted Shares Award Price Restricted Shares Award Price Restricted Shares outstanding at beginning of the year 86,667 $ 4.51 - $ - Vested ( 65,000 ) 4.51 - - Restricted Shares outstanding at March 31, 21,667 $ 4.51 - $ - The Company expensed $ 71 thousand and nil for the three months ended March 31, 2024 and 2023. There was $ 5 thousand of unrecognized compensation cost associated with unvested restricted stock remaining as of March 31, 2024. Warrants The following is a summary of the warrant activity during the three months ended March 31, 2024 and 2023: 2024 2023 Number of Warrants Weighted Average Exercise Price Number of Warrants Weighted Average Exercise Price Warrants outstanding at beginning of the year 1,274,807 $ 30.04 1,279,573 $ 30.00 Granted - - - - Exercised - - - - Forfeited - - - - Warrants outstanding and exercisable at March 31, 1,274,807 $ 30.04 1,279,573 $ 30.00 The aggregate intrinsic value of the outstanding common stock warrants as of March 31, 2024 and 2023 was nil . The remaining weighted average life of the warrants as of March 31, 2024 was 2.5 years. At the Market Program On June 26, 2023, the Company entered into an Equity Distribution Agreement (the “Distribution Agreement”) with Maxim Group LLC (the “Agent”), pursuant to which the Company may, from time to time, at the Company's discretion, offer and sell shares of the Company’s common stock, having an aggregate offering price of up to $ 4.7 million (the “Shares”), through the Agent, acting as sales agent. The Shares to be sold under the Distribution Agreement, if any, will be issued and sold pursuant to the Company’s shelf registration statement which was filed with the Securities and Exchange Commission (“SEC”) on July 30, 2021 (the “Registration Statement”) and was declared effective on August 16, 2021. A prospectus supplement related to the Company’s at the market offering ("ATM") program with the Agent under the Distribution Agreement was filed with the SEC on June 26, 2023. The ATM program is expected to remain in effect until June 26, 2024. As of March 31, 2024, no sales have been made under the ATM program, and an aggregate gross sales limit of $ 2.7 million remains available for issuance under the ATM program. Approximately $ 138 thousand of legal and professional fees incurred related to the establishment of the ATM program were deferred and recorded within "Prepaid expenses and other assets" on the Consolidated Balance Sheets and will be amortized ratably as stock is issued under the program. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Note 9. Segment Information The Company applies ASC 280, Segment Reporting, in determining its reportable segments. The Company has two reportable segments: Specialty Finance and Mining Operations. The guidance requires that segment disclosures present the measure(s) used by the CODM to decide how to allocate resources and for purposes of assessing such segments’ performance. The Company’s CODM uses revenue, income from operations and income before taxes of our reporting segments to assess the performance of the business of our reportable operating segments. No operating segments have been aggregated to form the reportable segments. The corporate oversight function, and other components that may earn revenues that are only incidental to the activities of the Company are aggregated and included in the “All Other” category. The Specialty Finance segment generates revenue from providing funding to nonprofit community associations. The Mining Operations segment generates revenue from the Bitcoin the Company earns through its mining activities. Three Months Ended March 31, 2024 Specialty Finance Mining Operations All Other Total Revenue, net $ 149,696 $ 4,597,908 $ - $ 4,747,604 Depreciation and amortization 1,366 2,423,062 1,640 2,426,068 Operating income (loss) ( 307,084 ) 2,272,837 ( 1,403,151 ) 562,602 Unrealized gain on investment and equity securities - - 1,350,979 1,350,979 Gain on fair value of purchased Bitcoin, net - - 57,926 57,926 Unrealized loss on marketable securities - - ( 2,160 ) ( 2,160 ) Loss on disposal of assets - ( 8,170 ) - ( 8,170 ) Other income - coupon sales - 4,490 - 4,490 Interest income - - 9,125 9,125 Interest expense - ( 70,826 ) - ( 70,826 ) Income (loss) before income taxes ( 307,084 ) 2,198,331 12,719 1,903,966 Fixed Asset Additions - - - - Three Months Ended March 31, 2023 Specialty Finance Mining Operations All Other Total Revenue, net $ 222,667 $ 2,090,851 $ - $ 2,313,518 Depreciation and amortization 2,966 797,869 1,038 801,873 Operating loss ( 211,646 ) ( 456,802 ) ( 1,300,978 ) ( 1,969,426 ) Unrealized loss on investment and equity securities - - ( 5,822,854 ) ( 5,822,854 ) Realized gain on sale of purchased digital assets - - 1,917 1,917 Unrealized gain on marketable securities - - 5,790 5,790 Impairment loss on prepaid hosting deposits - ( 36,691 ) - ( 36,691 ) Other income - coupon sales - 603,591 - 603,591 Interest income - - 55,077 55,077 Income (loss) before income taxes ( 211,646 ) 110,098 ( 7,061,048 ) ( 7,162,596 ) Fixed Asset Additions - 316,874 1,596 318,470 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10. Related Party Transactions Legal services for the Company associated with the collection of delinquent assessments from property owners was performed by a law firm (Business Law Group “BLG”) which was owned solely by Bruce M. Rodgers, the chairman and CEO of the Company, until and through the date of its initial public offering in 2015. Following the initial public offering, Mr. Rodgers transferred his interest in BLG to other attorneys at the firm through a redemption of his interest in the firm. The law firm has historically performed collection work primarily on a deferred billing basis wherein the law firm receives payment for services rendered upon collection from the property owners or at amounts ultimately subject to negotiations with the Company. On February 1, 2022, the Company consented to the assignment by BLG to the law firm BLG Association Law, PLLC (“BLGAL”) of the Services Agreement, dated April 15, 2015, previously entered into by the Company and Business Law Group, P.A. (the “Services Agreement”). The Services Agreement had set forth the terms under which Business Law Group, P.A. would act as the primary law firm used by the Company and its association clients for the servicing and collection of association accounts. Bruce M. Rodgers is a 50 % owner of BLGAL. Under the agreement, the Company paid BLG a fixed monthly fee of $ 53 thousand per month for services rendered during the three months ended March 31, 2023. The Company pays BLG a minimum per unit fee of $ 700 in any case where there is a collection event and BLG received no payment from the property owner, including any unit where the Company has taken title to the unit or where the Association has terminated its contract with either BLG or the Company. On March 28, 2024, BLGAL and the Company reduced the monthly compensation payable to the law firm from $ 53 thousand to $ 43 thousand effective January 1, 2024. The Company had originally engaged BLG on behalf of many of its Association clients to service and collect the Accounts and to distribute the proceeds as required by Florida law and the provisions of the purchase agreements between LMF and the Associations. This engagement was subsequently assigned to BLGAL as described above. Ms. Gould, who is a Director of the Company, worked as the General Manager of BLG and works as the General Manager of BLGAL. Amounts paid to BLGAL for the three months ended March 31, 2024 and 2023 were $ 129 thousand and $ 159 thousand, respectively. Under the Services Agreement in effect during the three months ended March 31, 2024 and 2023, the Company pays all costs (lien filing fees, process and serve costs) incurred in connection with the collection of amounts due from property owners. Any recovery of these collection costs is accounted for as a reduction in expense incurred. The Company incurred expenses related to collection costs for the three months ended March 31, 2024 and 2023 in the amounts of $ 14 thousand and $ 4 thousand, respectively. Recoveries during the three months ended March 31, 2024 and 2023 were $ 15 thousand and $ 14 thousand, respectively. The Company also shares office space, personnel and related common expenses with BLGAL. All shared expenses, including rent, are charged to BLGAL based on an estimate of actual usage. Any expenses of BLGAL paid by the Company that have not been reimbursed or settled against other amounts are reflected as due from related parties in the accompanying consolidated balance sheet. BLGAL was charged a total of $ 7 thousand and $ 15 thousand f or the office sub-lease during the three months ended March 31, 2024 and 2023, respectively. Amounts payable to BLGAL as of March 31, 2024 and December 31, 2023 were approximately $ 57 thousand and $ 24 thousand, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events On May 13, 2024, the Company entered into a $ 1.5 million secured loan ("Secured Note") with Brown Family Enterprises LLC which pays ten percent ( 10 %) interest per annum, simple interest on a monthly basis until the Secured Note is paid in full. The note matures on May 14, 2025 . T he Company granted to the holders of the Secured Note a secured interest in substantially all of the Company's assets and interests. The Company received the funds as of May 15, 2024. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations LM Funding America, Inc. (“we”, “our”, “LMFA” or the “Company”) was formed as a Delaware corporation on April 20, 2015. LMFA is the sole member of several entities including LM Funding, LLC, which was organized in January 2008, US Digital Mining and Hosting Co., LLC, which was formed on September 10, 2021 (“US Digital”); LMFA Financing LLC, formed on November 23, 2020, and LMFAO Sponsor LLC, formed on October 29, 2020 (LMFA is a majority member of LMFAO Sponsor LLC). Additionally, US Digital has formed various 100 % owned subsidiaries to engage in business in various states in connection with its Bitcoin mining business. LMFAO Sponsor LLC formed a majority owned subsidiary LMF Acquisition Opportunities Inc. (“LMAO”) on October 29, 2020 which was organized as a special purpose acquisition company that that completed an initial public offering in January 2021, whereupon the company ceased to be majority owned by LMFA. LMF Acquisition Opportunities Inc. was subsequently merged with Seastar Medical Holding Corporation on October 28, 2022. The Company also from time to time organizes other subsidiaries to serve a specific purpose or hold a specific asset. Lines of Business The Company currently operates two lines of business: our cryptocurrency mining business and our specialty finance business. The Bitcoin mining operation deploys our computing power to mine Bitcoin on the Bitcoin network. We conduct this business through our wholly owned subsidiary, US Digital, a Florida limited liability company, which we formed in 2021 to develop and operate our cryptocurrency mining business. With respect to our specialty finance business, the Company has historically engaged in the business 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 each Association’s financial needs. Bitcoin Mining Business We obtain Bitcoin as a result of our mining operations, and we sell Bitcoin from time to time, to support our operations and strategic growth. We plan to convert our Bitcoin to U.S. dollars. We may engage in regular trading of Bitcoin or engage in hedging activities related to our holding of Bitcoin. However, our decisions to hold or sell Bitcoin at any given time may be impacted by the Bitcoin market, which has been historically characterized by significant volatility. Currently, we do not use a formula or specific methodology 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 based on working cash needs and by monitoring the market in real time. As of March 31, 2024 and December 31, 2023 , the Company had approximately 5,900 machines installed, which amounted to operating units capable of producing over 615 petahash and 615 petahash, respectively per second (“EH/s”) of computing power. Specialty Finance Company In our specialty finance business, we purchase an Association’s right to receive a portion of the Association’s collected proceeds from owners that are not paying their assessments. After taking assignment of an Association’s right to receive a portion of the Association’s proceeds from the collection of delinquent assessments, we engage law firms to perform collection work on a deferred billing basis wherein the law firms receive payment upon collection from the account debtors or a predetermined contracted amount if payment from account debtors is less than legal fees and costs owed. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of LMFA and its wholly-owned subsidiaries: LM Funding, LLC; LMF October 2010 Fund, LLC; REO Management Holdings, LLC (including all 100 % owned subsidiary limited liability companies); LM Funding of Colorado, LLC; LM Funding of Washington, LLC; LM Funding of Illinois, LLC; US Digital (includes all 100 % owned subsidiary limited liability companies) and LMF SPE #2, LLC and various single purpose limited liability corporations owned by REO Management Holdings, LLC which own various properties. It also includes LMFA Sponsor, LLC (a 69.5 % owned subsidiary). All significant intercompany balances have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities 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 or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The interim consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and March 31, 2023, respectively are unaudited. In the opinion of management, the interim consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of the results for the interim periods. The accompanying consolidated balance sheet as of December 31, 2023, is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K for fiscal the year ended December 31, 2023. |
Recently adopted/issued accounting pronouncements | Recently adopted accounting pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-08, Intangible - Goodwill and Other -Crypto Assets (Subtopic 350-60) (“ASC 350-60”). ASC 350-60 requires entities with certain crypto assets to subsequently measure such assets at fair value, with changes in fair value recorded in net income in each reporting period. In addition, entities are required to provide additional disclosures about the holdings of certain crypto assets. Crypto assets that meet all the following criteria are within the scope of the ASC 350-60: (1) meet the definition of intangible assets as defined in the Codification (2) do not provide the asset holder with enforceable rights to or claims on underlying goods, services, or other assets (3) are created or reside on a distributed ledger based on blockchain or similar technology (4) are secured through cryptography (5) are fungible, and (6) are not created or issued by the reporting entity or its related parties. Bitcoin, which is the sole crypto asset mined by the Company, meets each of these criteria. For all entities, the ASC 350-60 amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance). If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. The Company has elected to early adopt the new guidance effective January 1, 2024 resulting in a $ 614 thousand cumulative-effect change to adjust the Company's Bitcoin held on January 1, 2024 with the corresponding entry to beginning accumulated deficit. |
Segment and Reporting Unit Information | Segment and Reporting Unit Information Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Chief Executive Officer and1 Chief Financial Officer of the Company comprise the CODM, as a group. The Company has two operating segments as of March 31, 2024, which we refer to as Specialty Finance and Mining Operations. Our corporate oversight function and other components that may earn revenues that are only incidental to the activities of the Company are aggregated and included in the “All Other” category. Refer to Note 9 - Segment Information. |
Reclassifications | Reclassification Certain prior period immaterial amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. |
Liquidity | Liquidity The accompanying consolidated financial statements of the Company have been prepared assuming the Company will continue as a going concern. The going concern basis of presentation assumes that the Company will continue in operation one year after the date these financial statements are issued and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The evaluation of going concern under the accounting guidance requires significant judgment which involves the Company to consider that it has historically incurred losses in recent years as it has prepared to grow its business through expansion and acquisition opportunities. The Company must also consider its current liquidity as well as future market and economic conditions that may be deemed outside the control of the Company as it relates to obtaining financing and generating future profits. As of March 31, 2024, the Company had $ 0.8 million available cash on-hand and Bitcoin with a fair market value of $ 11.7 million. After considering its current liquidity and future market and economic conditions, the Company has concluded there is no substantial doubt about the Company’s ability to continue as a going concern. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates include the evaluation of probable losses on balances due from a related party, the realization of deferred tax assets, the evaluation of contingent losses related to litigation and reserves on notes receivables. We consider our critical accounting estimates to be those related to long-lived asset impairment assessments. Our estimates may change, however, as new events occur and additional information is obtained, and any such changes will be recognized in the consolidated financial statements. |
Cash | Cash The Company maintains cash balances at several financial institutions that are insured under the Federal Deposit Insurance Corporation’s (“FDIC”) Transition Account Guarantee Program. Balances with the financial institutions may exceed federally insured limits. We have approximately $ 492,000 of cash in various institutions that exceed the FDIC or SIPC insurance coverage limit of $ 250,000 . |
Digital Assets | Digital Assets Bitcoin are included in current assets in the consolidated balance sheets due to the Company’s ability to sell Bitcoin in a highly liquid marketplace and such Bitcoin holdings are expected to be realized in cash or sold or consumed during the normal operating cycle of the Company. As a result of adopting ASC 350-60 on January 1, 2024, Bitcoin is measured at fair value as of each reporting period (see Recently Issued Accounting Pronouncements). The fair value of Bitcoin is measured using the period-end closing Bitcoin price from its principal market in accordance with ASC 820, Fair Value Measurement. Since Bitcoin is traded on a 24-hour period, the Company utilizes the price as of midnight UTC time, which aligns with the Company's revenue recognition cut-off. The increase and decrease in fair value from each reporting period is reflected on the consolidated statements of operation as "Gain on fair value of Bitcoin, net". The Company sells Bitcoin and such gains and losses from such transactions are measured as the difference between the cash proceeds and the carrying basis of Bitcoin as determined on a First In-First Out ("FIFO") basis and are recorded within "Gain on fair value of Bitcoin, net". Prior to issuance of the ASU 2023-08 and adoption of ASC 350-60, Bitcoin were recorded at cost less impairment and were classified as indefinite-lived intangible assets in accordance with ASC 350, Intangibles — Goodwill and Other. An intangible asset with an indefinite useful life was not amortized but was assessed for impairment annually, or more frequently, when events or changes in circumstances occurred indicating that it was more likely than not that the carrying amount of the indefinite-lived asset exceeded its fair value. The Company determined the fair value of Bitcoin in accordance with ASC 820, Fair Value Measurement, based on lowest intraday quoted prices from our principal market for such assets (Level 1 inputs). We performed an analysis each month to identify whether events or changes in circumstances indicate that it is more likely than not that our digital assets were impaired. If the carrying value of a digital asset exceeded the fair value so determined, an impairment loss had occurred with respect to those digital assets in the amount equal to the difference between their carrying values and the fair value. To the extent an impairment loss was recognized, the loss established the new cost basis of the asset and subsequent reversal of impairment losses was not permitted under ASC 350, Intangibles – Goodwill and Other. Additionally, in the previous guidance, subsequent increases in Bitcoin prices are not allowed to be recorded (unrealized gains) unless the Bitcoin is sold, at which point the gain is recognized. Accordingly, gains (losses) recognized on fair value of Bitcoin in fiscal year 2024 are not comparable to fiscal year 2023. Bitcoin, which is non-cash consideration earned by the Company through its mining activities, are included as a reconciling item as a cash outflow within operating activities on the accompanying consolidated statements of cash flows. The cash proceeds from the sales of Bitcoin are classified based on the holding period in which the Bitcoin are held. ASC 350-60 specifies that Bitcoin converted nearly immediately into cash would qualify as cash flows from operating activities and all oth er sales would qualify as investing activities. In prior fiscal periods, the Company did not hold its Bitcoin for extended periods of time and such sales proceeds prior to the adoption of ASC 350-60 were reported as cash flows from operating activities. Upon adoption of ASC 350-60, the Company evaluates its sales of Bitcoin and will record Bitcoin sold nearly immediately as operating cash flows and the remainder will be recorded as investing activities. During the quarter ended March 31, 2024, all proceeds from Bitcoin sales were classified as investing activities. |
Investment in Securities | Investment in Securities Investment in Securities includes investments in common stocks and convertible notes receivables. Investments in securities are reported at fair value with changes in unrecognized gains or losses included in other income on the income statement. |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities We account for investments in less than 50 % owned and more than 20 % owned entities using the equity method of accounting. Because we have elected the fair value option for these securities, unrealized holding gains and losses during the period are included in other income within the Consolidated Statements of Operation. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments FASB ASC 825-10, Financial Instruments , requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet. |
Fixed Assets | Fixed Assets The Company capitalizes all acquisitions of fixed assets in excess of $ 500 . Fixed assets are stated at cost, net of accumulated depreciation. State and local use tax for equipment shipped from overseas is generally accrued on a quarterly basis at the time equipment is placed in service and is paid to the state in which the equipment is being utilized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and commences once the assets are ready for their intended use. Fixed assets are comprised of furniture, computer, office equipment, buildings and mining machines with assigned useful lives of 3 to 30 years. The Company classifies mining machine deposit payments within "Deposits on mining equipment" in the consolidated balance sheets. As mining machines are received, the respective cost of the mining machines plus the related shipping and customs fees are reclassified from "Deposits on mining equipment" to "Fixed assets, net" in the consolidated balance sheet. Refer to Note 4 - Deposits on Mining Equipment and Hosting Services. In addition, as part of its periodic review of its fixed asset groups during the fourth quarter of 2023, the Company changed the estimated useful life for its mining machines from 5 years to 4 years . The change was accounted for on a prospective basis. The Company operates in an emerging industry for which limited data is available to make estimates of the useful economic lives of mining machines. To the extent that any of the assumptions underlying management’s estimate of useful life of its mining machines are subject to revision in a future reporting period, either as a result of changes in circumstances or through the availability of greater quantities of data, then the estimated useful life could change and have a prospective impact on depreciation expense and the carrying amounts of these assets. |
Equipment Purchases | Equipment Purchases We ordered 300 S21 Bitmain machines in January 2024 for an aggregate purchase price of approximately $ 1.1 million which were delivered in two shipments, March 2024 and April 2024. |
Right to Use Assets | Right to Use Assets The Company capitalizes all leased assets pursuant to ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. As of March 31, 2024 and December 31, 2023 right to use assets, net of accumulated amortization, was $ 163 thousand and $ 189 thousand. |
Impairment of Long-Lived Assets | Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment amount is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. There was $ 1.2 million and nil impairment loss recorded on fixed assets during the three months ended March 31, 2024 and 2023, respectively. Refer to Note 3 - Fixed Assets. |
Hosting Contracts | Hosting Contracts On September 5, 2022, the Company, through its wholly-owned subsidiary US Digital, entered into a hosting agreement (the “Core Hosting Agreement”) with Core Scientific Inc. (“Core”) pursuant to which Core, under various additional orders, agreed to host approximately 3,000 of the Company's Bitcoin miner machines at a secure location and provide power, maintenance and other services specified in the contract with a term of one year, with automatic renewals unless either party notifies the other party in writing not less than ninety ( 90 ) calendar days before such renewal of its desire for the order not to renew unless terminated sooner pursuant to the terms of the Core Hosting Agreement. The Company entered into a number of amendments in 2023 and 2024 that resulted in Core hosting a total of approximately 4,870 miners. The amended Hosting Agreement results in the terms of the hosting arrangement expiring with respect to approximately 4,400 miners on May 31, 2024 while allowing the terms of the hosting arrangement to continue with respect to approximately 800 miners through December 31, 2024. As required under the Core Hosting Agreement, the Company has paid approximately $ 1.5 milli on as of March 31, 2024 and $ 2.2 million as of December 31, 2023 as a deposit. Under the terms of the amended Hosting Agreement, the deposit for the miners that will be removed in May 2024 is being applied to our invoices. In December 2022, Core filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. Core's bankruptcy filing has not negatively impacted our mining ability at their sites as of the date of this filing. On May 5, 2023, the Company entered into a hosting agreement (the “GIGA Hosting Agreement”) with GIGA Energy Inc. (“GIGA”) pursuant to which GIGA agreed to host 1,080 of the Company's Bitcoin Miner S19J Pro machines at a secure location and provide power, maintenance and other services specified in the contract with a term of one year. On April 12, 2024, the Company amended the contract to allow for an extension of the contract with a 60 day termination notice. As required under the GIGA Hosting Agreemen t, the Company paid $ 173 thousand as a pre-payment in May 20 23 and paid a refundable deposit of $ 173 thousand in August 2023. |
Revenue recognition - Bitcoin Mining | Revenue Recognition – Bitcoin Mining We recognize revenue in accordance with generally accepted accounting principles as outlined in ASC 606, Revenue From Contracts with Customers, which requires that five steps be followed in evaluating revenue recognition: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation. Our accounting policy on revenue recognition for our Bitcoin mining segment is provided below. Step 1: The Company enters into a contract with a Bitcoin mining pool operator (i.e., the customer) to provide computing power to the mining pools. The contract is terminable at any time by either party and the Company’s enforceable right to compensation only begins when the Company starts providing computing power to the mining pool operator (which occurs daily at midnight Universal Time Coordinated (UTC)). When participating in ratable share pools, in exchange for providing computing power the Company is entitled to a fractional share of the Bitcoin award the mining pool operator receives for successfully adding a block to the blockchain, plus a fractional share of the transaction fees attached to that blockchain. The Company’s fractional share is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm. When participating in a Full Pay Per Share (“FPPS”) mining pool, in exchange for providing computing power to the pool the Company is entitled to compensation, calculated on a daily basis, at an amount that approximates the total Bitcoin that could have been mined using the Company’s computing power, calculated on a look-back basis across previous blocks using the pools hash rate index. Applying the criteria per ASC 606-10-25-1, the contract arises at the point that the Company provides computing power to the mining pool operator, which is beginning contract day at midnight UTC (contract inception), because customer consumption is in tandem with daily earnings of delivery of the computing power. Step 2: In order to identify the performance obligations in a contract with a customer, the Company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct); and The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). Based on these criteria, the Company has a single performance obligation in providing computing power services (i.e., hashrate) to the mining pool operator (i.e., customer). The performance obligation of computing power services is fulfilled daily over-time, as opposed to a point in time, because the Company provides the hashrate throughout the day and the customer simultaneously obtains control of it and uses the asset to produce Bitcoin. The Company has full control of the mining equipment utilized in the mining pool and if the Company determines it will increase or decrease the processing power of its machines and/or fleet (i.e., for repairs or when power costs are excessive) the computing power provided to the customer will be reduced. Step 3: The transaction consideration the Company earns is non-cash digital consideration in the form of Bitcoin, which the Company measures at fair value on the date earned at the daily closing price, which is not materially different from the fair value at contract inception. The transaction consideration the Company earns is all variable since it is dependent on the daily computing power provided by the Company under the FPPS model and total Bitcoin earned by the under the ratable share model. The Company’s Bitcoins earned through the contractual payout formula is not known until the Company’s computational hashrate contributed over the daily measurement period is fulfilled over-time daily between midnight-to-midnight UTC time. The Company’s proportionate amount of the global network transaction fee rewards earned are calculated at the end of each transactional day (midnight to midnight). There are no other forms of variable considerations, such as discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties, or other similar items. The Company does not constrain this variable consideration because it is probable that a significant reversal in the amount of revenue recognized from the contract will not occur when the uncertainty is subsequently resolved and recognizes the noncash consideration on the same day that control is transferred, which is the same day as contract inception. Step 4: The transaction price is allocated to the single performance obligation upon verification for the provision of computing power to the mining pool operator, and total Bitcoin rewards earned by the pool, when applicable under a ratable share model. There is a single performance obligation (i.e., computing power or (hashrate) for the contract; therefore, all consideration from the mining pool operator is allocated to this single performance obligation. Step 5: The Company’s performance is complete in transferring the hashrate service over-time (midnight to midnight) to the customer and the customer obtains control of that asset. In exchange for providing computing power, the Company is entitled to a pro-rata share of the fixed Bitcoin awards earned over the measurement period, plus a pro-rata fractional share of the global transaction fee rewards for the respective measurement period, less net digital asset fees due to the mining pool operator over the measurement period, as applicable. The transaction consideration the Company receives is non-cash consideration, in the form of Bitcoin. The Company measures the Bitcoin at fair value on the date earned using the closing price of Bitcoin on the date earned (midnight UTC), which is not materially different from the fair value at contract inception. There are no deferred revenues or other liability obligations recorded by the Company since there are no payments in advance of the performance. At the end of the 24 hour “midnight-to-midnight” period, there are no remaining performance obligations. Bitcoin earned by the Company through its mining activities are included within operating activities on the accompanying consolidated statements of cash flows. Revenue Recognition - Specialty Finance Accounting Standards Codification (“ASC”) 606 of the Financial Accounting Standards Board (“FASB”) states an entity needs to conclude at the inception of the contract that collectability of the consideration to which it will be entitled in exchange for the goods and services that will be transferred to the customer is probable. That is, in some circumstances, an entity may not need to assess its ability to collect all of the consideration in the contract. The Company provides funding to Associations by purchasing their rights under delinquent accounts from unpaid assessments due from property owners. Collections on the Accounts may vary greatly in both the timing and amount ultimately recovered compared with the total revenues earned on the Accounts because of a variety of economic and social factors affecting the real estate environment in general . The Company’s contracts with its specialty finance customers have very specific performance obligations. The Company has determined that the known amount of cash to be realized or realizable on its revenue generating activities cannot be reasonably estimate and as such, classifies its finance receivables as nonaccrual and recognizes revenues in the accompanying statements of income on the cash basis or cost recovery method in accordance with ASC 310-10, Receivables . The Company’s operations also consist of rental revenue earned from tenants under leasing arrangements which provide for rent income. The leases have been accounted for as operating leases. For operating leases, revenue is recorded based on cash rental payments was collected during the period. The Company analyzed its remaining revenue streams and concluded there were no changes in revenue recognition with the adoption of the new standard. Under ASC 606, the Company applies the cash basis method to its original product and the cost recovery method to its special product as follows: Finance Receivables—Original Product : Under the Company’s original product, delinquent assessments are funded only up to the Super Lien Amount as discussed above. Recoverability of funded amounts is generally assured because of the protection of the Super Lien Amount. As such, payments by unit owners on the Company’s original product are recorded to income when received in accordance with the provisions of the Florida Statute (718.116(3)) and the provisions of the purchase agreements entered into between the Company and Associations. Those provisions require that all payments be applied in the following order: first to interest, then to late fees, then to costs of collection, then to legal fees expended by the Company and then to assessments owed. In accordance with the cash basis method of recognizing revenue and the provisions of the statute, the Company records revenues for interest and late fees when cash is received. In the event the Company determines the ultimate collectability of amounts funded under its original product are in doubt, payments are applied to first reduce the funded or principal amount. Finance Receivables—Special Product (New Neighbor Guaranty program) : During 2012, the Company began offering associations an alternative product under the New Neighbor Guaranty program whereby the Company will fund amounts in excess of the Super Lien Amount. Under this special product, the Company purchases substantially all of the delinquent assessments owed to the association, in addition to all accrued interest and late fees, in exchange for payment by the Company of (i) a negotiated amount or (ii) on a going forward basis, all monthly assessments due for a period up to 48 months. Under these arrangements, the Company considers the collection of amounts funded is not assured and under the cost recovery method, cash collected is applied to first reduce the carrying value of the funded or principal amount with any remaining proceeds applied next to interest, late fees, legal fees, collection costs and any amounts due to the Association. Any excess proceeds still remaining are recognized as revenues. If the future proceeds collected are lower than the Company’s funded or principal amount, then a loss is recognized. Net Commission Revenue: The Company acts as an agent in providing health travel insurance policies. As a result, the Company revenue is recorded at net. The Company has determined that the known amount of cash to be realized or realizable on its revenue generating activities can be reasonably estimated and as such, classifies its receivables as accrual and recognizes revenues in the accompanying statements of income on the accrual basis. If a policy is not effective as of the end of a period, then the associated revenue and underwriting costs are deferred until the effective date. The majority of the commission revenue is underwritten by two policy underwriters who pays the Company commissions. |
Cost of Revenues | Cost of Revenues The Company includes energy costs and external co-location mining hosting fees in cost of revenues. Depreciation of mining machines is included within "Depreciation and amortization" in the Consolidated Statements of Operations. |
Coupon Sales | Coupon Sales From time to time the Company receives coupons from Bitmain to incentivize purchases of equipment. Coupons have a stated face value in dollars and can be applied against future invoices for purchased machines. Coupons are transferable and there are not restrictions on the sale to third parties. Occasionally, the Company sells coupons to third parties in exchange for cash consideration or digital assets. As there is currently no active market for the buying and selling of Bitmain coupons, the Company has determined that the fair value of coupons received is nil at the time of receipt therefore revenue associated with the sale of such coupons is not recognized until the sale transaction has been completed and consideration has been received from the third party. During the three months ended March 31, 2024 and March 31, 2023, the Company sold Bitmain coupons for $ 4 thousand and $ 604 thousand, which was recognized as other income within "Other income - coupon sales" in the Consolidated Statements of Operations. |
Income Taxes | Income Taxes The Company’s calculation of its tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions. The Company recognizes tax liabilities for uncertain tax positions based on management’s estimate of whether it is more likely than not that additional taxes will be required. The Company had no uncertain tax positions as of March 31, 2024 and December 31, 2023. Deferred income taxes are recognized in the consolidated financial statements for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates. Temporary differences arise from net operating losses, differences in depreciation methods of archived images, and property and equipment, stock-based and other compensation, and other accrued expenses. A valuation allowance is established when it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability for U.S., or the various state jurisdictions, may be materially different from managements estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities. Interest and penalties are included in tax expense. Income tax expense/(benefit) from operations for the three months ended March 31, 2024 and 2023 was $ nil in each period, which resulted primarily from maintaining a full valuation allowance against the Company's deferred tax assets. |
Income (Loss) Per Share | Income (Loss) Per Share Basic income (loss) per share is calculated as net income (loss) to common stockholders divided by the weighted average number of common shares outstanding during the period. The weighted average shares used in calculating income per share for the three months ended March 31, 2024 includes 65 thousand restricted shares that were legally issued during the year ended December 31, 2023 and vested during the three months ended March 31, 2024 based on their respective vesting date and excludes 22 thousand restricted shares that were legally issued during the year ended December 31, 2023 but not vested as of March 31, 2024. No issuance or vesting of restricted shares occurred during the three months ended March 31, 2023. Diluted income (loss) per share for the periods equal to basic income (loss) per share as the effect of any convertible notes, stock-based compensation awards or stock warrants would be anti-dilutive. The anti-dilutive stock-based compensation awards consisted of: March 31, 2024 December 31, 2023 Stock Options 599,597 599,597 Stock Warrants 1,274,807 1,274,807 Restricted Shares 21,667 86,667 |
Contingencies | Contingencies The Company accrues for contingent obligations, including estimated legal costs, when the obligation is probable and the amount is reasonably estimable. As facts concerning contingencies become known, the Company reassesses its position and makes appropriate adjustments to the consolidated financial statements. Estimates that are particularly sensitive to future changes include those related to tax, legal and other regulatory matters. |
Stock-Based Compensation | Stock-Based Compensation The Company records all equity-ba sed incentive grants to employees and non-employee members of the Company’s Board of Directors in operating expenses in the Company’s Consolidated Statements of Operations based on their fair values determined on the date of grant. Stock-based compensation expense, reduced for estimated forfeitures, is recognized over the requisite service period of the award, which is generally the vesting term of the outstanding equity awards. The expense attribution method is straight-line or accelerated graded-vesting depending on the nature of the award. |
Non-cash Activities | Non-cash Activities ROU assets and operating lease obligation recognized - Due to the execution of its office equipment operating lease during the three months ended March 31, 2024 and 2023, the Company recognized a lease liability and ROU asset associated with the lease in the amount of nil and $ 22 thousand, respectively. Reclassification of mining equipment deposit to fixed assets, net - During the three months ended March 31, 2024 and 2023 as mining machines were received, the Company reclassified nil and $ 55 thousand of mining machine costs plus related shipping and customs fees from "Deposits on mining equipment" to "Fixed assets, net" in the consolidated balance sheets, respectively. Change in equity due to change in accounting principal ASC 350-60 - The Company has elected to early adopt the new guidance effective January 1, 2024 resulting in a $ 614 thousand cumulative-effect change to adjust the Company's Bitcoin held on January 1, 2024 with the corresponding entry to beginning accumulated deficit. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Anti-dilutive Stock Based Compensation Awards and Convertible Notes | The anti-dilutive stock-based compensation awards consisted of: March 31, 2024 December 31, 2023 Stock Options 599,597 599,597 Stock Warrants 1,274,807 1,274,807 Restricted Shares 21,667 86,667 |
Digital Asset (Tables)
Digital Asset (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Digital Assets [Abstract] | |
Schedule of Digital assets (Bitcoin and Tether) | Digital assets consisted of the following: March 31, 2024 December 31, 2023 March 31, 2023 Bitcoin $ 11,637,319 $ 3,406,096 $ 1,751,914 Tether 14,650 10,160 - Total digital assets $ 11,651,969 $ 3,416,256 $ 1,751,914 Bitcoin March 31, 2024 December 31, 2023 March 31, 2023 Number of Bitcoin held 163.4 95.1 83.6 Carrying basis - per Bitcoin $ 48,046 $ 35,816 $ 20,956 Fair value - per Bitcoin $ 71,306 $ 42,273 $ 28,486 Carrying basis of Bitcoin $ 7,850,671 $ 3,406,096 $ 1,751,914 Fair value of Bitcoin $ 11,637,319 $ 4,020,202 $ 2,381,442 |
Schedule of Rollforward of Bitcoin | The following table presents a roll-forward of Bitcoin for the three months ended March 31, 2024, based on the fair value model under ASU 2023-08: March 31, 2024 Bitcoin as of December 31, 2023 $ 3,406,096 Cumulative effect of the adoption of ASU 2023-08 (See Note 1) 614,106 Beginning balance: Bitcoin as of January 1, 2024 4,020,202 Addition of Bitcoin from mining activities 4,597,908 Disposition of Bitcoin from sales ( 1,296,232 ) Gain on fair value of Bitcoin, net 4,315,441 End of period $ 11,637,319 The following table presents a roll-forward of Bitcoin for the three months ended March 31, 2023, prior to the adoption of ASU 2023-08, based on the cost less impairment model under ASC 350: March 31, 2023 Beginning of year $ 888,026 Purchase of Bitcoin 35,157 Production of Bitcoin 2,090,851 Impairment loss on mined Bitcoin ( 199,554 ) Carrying amount of Bitcoin sold ( 1,062,566 ) End of period 1,751,914 |
Fixed Assets, net (Tables)
Fixed Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Components of Fixed Assets | The components of fixed assets as of March 31, 2024 and December 31, 2023 are as follows: Useful Life (Years) March 31, 2024 December 31, 2023 Mining machines 4 $ 28,602,298 $ 29,799,782 Real estate assets owned 30 80,057 80,057 Furniture, computer and office equipment 3 - 5 230,062 230,063 Gross fixed assets 28,912,417 30,109,902 Less: accumulated depreciation ( 8,015,103 ) ( 5,590,292 ) Fixed assets, net $ 20,897,314 $ 24,519,610 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Marketable Equity Securities | Marketable equity securities as of March 31, 2024 and December 31, 2023, and activity for the three months ended March 31, 2024 and year ended December 31, 2023, are as follows: Cost Cost of Shares Sold Gross Unrealized Gain (Loss) Fair Value Marketable equity securities, March 31, 2024 $ 17,860 $ - $ ( 2,160 ) $ 15,700 Marketable equity securities, December 31, 2023 $ 743,906 $ ( 739,616 ) $ 13,570 $ 17,860 |
Schedule of Notes Receivable | March 31, 2024 December 31, 2023 March 31, 2023 Notes receivable from Seastar Medical Holding Corporation $ - $ 1,440,498 $ 2,216,649 End of period $ - $ 1,440,498 $ 2,216,649 March 31, 2024 March 31, 2023 Beginning of year $ 1,440,498 $ 3,807,749 Repayment of Seastar Medical Holding Corporation notes receivable ( 1,449,066 ) ( 1,644,834 ) Accrued interest income 8,568 53,734 End of period $ - $ 2,216,649 |
Schedule of Long-term Investment - Equity Securities | Long-term investments for the SMHC (formerly LMAO) warrants consist of the following: March 31, 2024 December 31, 2023 March 31, 2023 Seastar Medical Holding Corporation (formerly LMAO) warrants $ 753,973 $ 156,992 $ 437,924 End of period $ 753,973 $ 156,992 $ 437,924 March 31, 2024 March 31, 2023 Beginning of year $ 156,992 $ 464,778 Unrealized gain (loss) on equity securities 596,981 ( 26,854 ) End of period $ 753,973 $ 437,924 |
Summary of Investment in Unconsolidated Affiliates | Long-term investments for the SeaStar Medical common stock consist of the following: March 31, 2024 December 31, 2023 March 31, 2023 Seastar Medical Holding Corporation common stock $ 1,899,484 $ 1,145,486 $ 4,812,750 End of period $ 1,899,484 $ 1,145,486 $ 4,812,750 March 31, 2024 March 31, 2023 Beginning of year $ 1,145,486 $ 10,608,750 Unrealized gain (loss) on equity investment 753,998 ( 5,796,000 ) End of period $ 1,899,484 $ 4,812,750 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt of the Company consisted of the following at March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Financing agreement with Imperial PFS that is unsecured. Down payment of $ 3,438 was required upfront and equal installment payments of $ 3,658 to be made over a 11 month period. The note matures on July 1, 2024 . Annualized interest is 12.05 %. 10,973 21,945 Financing agreement with Imperial PFS that is unsecured. Down payment of $ 36,544 was required upfront and equal installment payments of $ 41,879 to be made over an 10 month period. The note matures on August 1, 2024 . Annualized interest is 9.6 %. 209,386 335,022 Financing agreement with Imperial PFS that is unsecured. Down payment of $ 30,000 was required upfront and equal installment payments of $ 35,103 to be made over a 6 month period. The note matures on June 1, 2024 . Annualized interest is 12.05 %. 105,310 210,619 $ 325,669 $ 567,586 |
Schedule of Principal Payments of Debt | Minimum required principal payments on the Company's debt as of March 31, 2024 are as follows: Maturity Amount 2024 $ 325,669 $ 325,669 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Supplemental Balance Sheet Information Related to Operating Leases | The following table presents supplemental balance sheet information related to operating leases as of March 31, 2024 and December 31, 2023: Balance Sheet Line Item March 31, 2024 December 31, 2023 Assets ROU assets Right of use asset, net $ 162,966 $ 189,009 Total lease assets $ 162,966 $ 189,009 Liabilities Current lease liabilities Lease liability $ 114,148 $ 110,384 Long-term lease liabilities Lease liability 56,148 85,775 Total lease liabilities $ 170,296 $ 196,159 Weighted-average remaining lease term (in years) 1.5 1.7 Weighted-average discount rate 7.49 % 7.49 % |
Summary of Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases | The following table presents supplemental cash flow information and non-cash activity related to operating leases for the three months ended March 31, 2024 and 2023: March 31, 2024 2023 Operating cash flow information Cash paid for amounts included in the measurement of lease liabilities $ ( 25,863 ) $ ( 22,243 ) Non-cashflow information ROU assets and operating lease obligation recognized $ - $ 21,887 |
Schedule of Future Minimum Lease Payment Due | The following table presents maturities of operating lease liabilities on an undiscounted basis as of March 31, 2024: Lease Maturity Table Operating Leases 2024 92,011 2025 85,324 2026 3,163 (less: imputed interest) ( 10,202 ) $ 170,296 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Stock Option Plan Activity | The following is a summary of the stock option plan activity during the three months ended March 31, 2024 and 2023: 2024 2023 Number of Weighted Average Number of Weighted Average Options Exercise Price Options Exercise Price Options outstanding at beginning of the year 599,597 $ 9.00 186,877 $ 19.56 Granted - - - - Cancelled - - - - Forfeited - - - - Options outstanding at March 31, 599,597 $ 9.00 186,877 $ 19.56 Options exercisable at March 31, 383,152 $ 10.81 34,402 $ 67.20 |
Summary of Restricted Share Activity | The following is a summary of the restricted share activity during the three months ended March 31, 2024 and 2023: 2024 2023 Number of Weighted Average Number of Weighted Average Restricted Shares Award Price Restricted Shares Award Price Restricted Shares outstanding at beginning of the year 86,667 $ 4.51 - $ - Vested ( 65,000 ) 4.51 - - Restricted Shares outstanding at March 31, 21,667 $ 4.51 - $ - |
Summary of Stock Warrants | The following is a summary of the warrant activity during the three months ended March 31, 2024 and 2023: 2024 2023 Number of Warrants Weighted Average Exercise Price Number of Warrants Weighted Average Exercise Price Warrants outstanding at beginning of the year 1,274,807 $ 30.04 1,279,573 $ 30.00 Granted - - - - Exercised - - - - Forfeited - - - - Warrants outstanding and exercisable at March 31, 1,274,807 $ 30.04 1,279,573 $ 30.00 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended March 31, 2024 Specialty Finance Mining Operations All Other Total Revenue, net $ 149,696 $ 4,597,908 $ - $ 4,747,604 Depreciation and amortization 1,366 2,423,062 1,640 2,426,068 Operating income (loss) ( 307,084 ) 2,272,837 ( 1,403,151 ) 562,602 Unrealized gain on investment and equity securities - - 1,350,979 1,350,979 Gain on fair value of purchased Bitcoin, net - - 57,926 57,926 Unrealized loss on marketable securities - - ( 2,160 ) ( 2,160 ) Loss on disposal of assets - ( 8,170 ) - ( 8,170 ) Other income - coupon sales - 4,490 - 4,490 Interest income - - 9,125 9,125 Interest expense - ( 70,826 ) - ( 70,826 ) Income (loss) before income taxes ( 307,084 ) 2,198,331 12,719 1,903,966 Fixed Asset Additions - - - - Three Months Ended March 31, 2023 Specialty Finance Mining Operations All Other Total Revenue, net $ 222,667 $ 2,090,851 $ - $ 2,313,518 Depreciation and amortization 2,966 797,869 1,038 801,873 Operating loss ( 211,646 ) ( 456,802 ) ( 1,300,978 ) ( 1,969,426 ) Unrealized loss on investment and equity securities - - ( 5,822,854 ) ( 5,822,854 ) Realized gain on sale of purchased digital assets - - 1,917 1,917 Unrealized gain on marketable securities - - 5,790 5,790 Impairment loss on prepaid hosting deposits - ( 36,691 ) - ( 36,691 ) Other income - coupon sales - 603,591 - 603,591 Interest income - - 55,077 55,077 Income (loss) before income taxes ( 211,646 ) 110,098 ( 7,061,048 ) ( 7,162,596 ) Fixed Asset Additions - 316,874 1,596 318,470 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 12, 2024 | May 05, 2023 Machine | Sep. 05, 2022 Machine | May 31, 2024 Miner | Apr. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) Petahash Machine shares | Aug. 31, 2023 USD ($) | May 31, 2023 USD ($) | Mar. 31, 2024 USD ($) Petahash Miner Machine Segment shares | Mar. 31, 2023 USD ($) shares | Dec. 31, 2024 Miner | Dec. 31, 2023 USD ($) Machine Petahash | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Operating segments | Segment | 2 | |||||||||||
Available cash on-hand | $ 827,366 | $ 827,366 | $ 2,401,831 | |||||||||
Bitcoin fair market value amount | 11,700,000 | 11,700,000 | ||||||||||
Cash institutions exceed the FDIC | 492,000 | 492,000 | ||||||||||
SIPC insurance coverage limit amount | $ 250,000 | $ 250,000 | ||||||||||
Number of bitcoin mining operations | Petahash | 615 | 615 | 615 | |||||||||
Uncertain tax positions | $ 0 | $ 0 | $ 0 | |||||||||
Income tax expense/(benefit) | 0 | $ 0 | ||||||||||
Fixed assets | 20,897,314 | 20,897,314 | 24,519,610 | |||||||||
Right to use assets, net of accumulated amortization | $ 162,966 | 162,966 | $ 189,009 | |||||||||
Impairment loss | 1,200,000 | 0 | ||||||||||
Adjustment to right-of-use asset and lease liability | 0 | 22,000 | ||||||||||
Reclassification of mining equipment deposits to fixed assets, net | 0 | 55,000 | ||||||||||
Other income - coupon sales | $ 4,000 | $ 604,000 | ||||||||||
Subsequent Event [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Hosting contracts termination notice period | 60 days | |||||||||||
Special Product [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Delinquent assessments maximum due period purchases basis | 48 months | |||||||||||
Subsidiary Limited Liability [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Percentage of ownership in subsidiary limited liability companies | 100% | |||||||||||
Symbiont [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Aggregate purchase price of asset | $ 2,800,000 | |||||||||||
ASU 2023-08 [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Cumulative-effect change to adjust bitcoin | $ 614,000 | |||||||||||
Maximum [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Furniture, computer, office equipment, buildings and mining machines, useful lives | 30 years | 30 years | ||||||||||
Minimum [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Furniture, computer, office equipment, buildings and mining machines, useful lives | 3 years | 3 years | ||||||||||
Mining Machine [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Installation of machines | Machine | 5,900 | 5,900 | 5,900 | |||||||||
Estimated useful lives | 4 years | 4 years | 5 years | |||||||||
Other Capitalized Property Plant and Equipment [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Fixed assets | $ 500 | $ 500 | ||||||||||
Purchase Agreement [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Aggregate purchase price of asset | $ 1,100,000 | $ 1,100,000 | ||||||||||
Core Hosting Agreement [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Payment for deposit | $ 1,500,000 | $ 2,200,000 | ||||||||||
Number of hosting agreement contract machine | Machine | 3,000 | |||||||||||
Number of hosting agreement contract miners | Miner | 4,870 | |||||||||||
Renewal initial term | 90 days | |||||||||||
GIGA Hosting Agreement [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Deposit prepayment | $ 173,000 | |||||||||||
Refundable deposit amount paid | $ 173,000 | |||||||||||
Number of hosting agreement contract machine | Machine | 1,080 | |||||||||||
Forecast [Member] | Core Hosting Agreement [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Number of hosting agreement contract miners | Miner | 4,400 | 800 | ||||||||||
REO Management Holdings, LLC [Member] | Maximum [Member] | Subsidiary Limited Liability [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Percentage of ownership in subsidiary limited liability companies | 100% | |||||||||||
US Digital Mining and Hosting Co., LLC [Member] | Subsidiary Limited Liability [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Percentage of ownership in subsidiary limited liability companies | 100% | |||||||||||
LMF Acquisition Opportunities Inc [Member] | Subsidiary Limited Liability [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Percentage of ownership in subsidiary limited liability companies | 69.50% | |||||||||||
Restricted Stock [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Number of restricted shares, vested | shares | 65,000 | 0 | ||||||||||
Number of non vested stock | shares | 22,000 | 22,000 | ||||||||||
Unconsolidated Entities [Member] | Maximum [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Ownership percentage | 50% | 50% | ||||||||||
Unconsolidated Entities [Member] | Minimum [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Ownership percentage | 20% | 20% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Anti-dilutive Stock Based Compensation Awards and Convertible Notes (Detail) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Restricted shares [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive stock based compensation awards | 21,667 | 86,667 |
Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive stock based compensation awards | 599,597 | 599,597 |
Stock Warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive stock based compensation awards | 1,274,807 | 1,274,807 |
Digital Asset - Schedule of Dig
Digital Asset - Schedule of Digital Assets (Details) - USD ($) | Mar. 31, 2024 | Jan. 01, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Digital Assets [Line Items] | |||||
Carrying value of digital assets | $ 11,651,969 | $ 3,416,256 | $ 1,751,914 | ||
Bitcoin [Member] | |||||
Digital Assets [Line Items] | |||||
Carrying value of digital assets | 11,637,319 | $ 3,406,096 | 3,406,096 | $ 1,751,914 | $ 888,026 |
Tether [Member] | |||||
Digital Assets [Line Items] | |||||
Carrying value of digital assets | $ 14,650 | $ 10,160 |
Digital Asset - Schedule of Bit
Digital Asset - Schedule of Bitcoin (Details) - Bitcoin [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 Bitcoin $ / shares | Mar. 31, 2023 Bitcoin $ / shares | Dec. 31, 2023 Bitcoin $ / shares | |
Digital Assets [Line Items] | |||
Number of Bitcoin held | Bitcoin | 163.4 | 83.6 | 95.1 |
Carrying basis - per Bitcoin | $ 48,046 | $ 20,956 | $ 35,816 |
Fair value - per Bitcoin | 71,306 | 28,486 | 42,273 |
Carrying basis of Bitcoin | 7,850,671 | 1,751,914 | 3,406,096 |
Fair value of Bitcoin | $ 11,637,319 | $ 2,381,442 | $ 4,020,202 |
Digital Asset - Additional Info
Digital Asset - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Digital Assets [Line Items] | |
Realized gains on bitcoin | $ 519,000 |
Realized losses on bitcoin | $ 0 |
Digital Asset - Schedule of Rol
Digital Asset - Schedule of Roll Forward of Bitcoin (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Digital Assets [Line Items] | |||
Beginning of Year | $ 3,416,256 | ||
Gain on fair value of Bitcoin, net | (4,257,515) | ||
End of period | 11,651,969 | $ 11,651,969 | $ 1,751,914 |
Bitcoin [Member] | |||
Digital Assets [Line Items] | |||
Beginning of Year | 3,406,096 | 3,406,096 | 888,026 |
Purchase of digital assets | 35,157 | ||
Production of digital assets | 2,090,851 | ||
Addition of Bitcoin from mining activities | 4,597,908 | ||
Impairment loss on mined digital assets | (199,554) | ||
Disposition of digital assets | (1,296,232) | ||
Gain on fair value of Bitcoin, net | 4,315,441 | ||
Carrying amount of Bitcoin sold | (1,062,566) | ||
End of period | $ 11,637,319 | 11,637,319 | $ 1,751,914 |
ASU 2023-08 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Bitcoin [Member] | |||
Digital Assets [Line Items] | |||
Beginning of Year | 614,106 | ||
ASU 2023-08 [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Bitcoin [Member] | |||
Digital Assets [Line Items] | |||
Beginning of Year | $ 4,020,202 |
Fixed Assets, net - Components
Fixed Assets, net - Components of Fixed Assets (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Property Plant And Equipment [Line Items] | ||
Gross fixed assets | $ 28,912,417 | $ 30,109,902 |
Less: accumulated depreciation | (8,015,103) | (5,590,292) |
Fixed assets, net | $ 20,897,314 | $ 24,519,610 |
Mining Machine [Member] | ||
Property Plant And Equipment [Line Items] | ||
Useful Life (Years) | 4 years | 5 years |
Gross fixed assets | $ 28,602,298 | $ 29,799,782 |
Real Estate Assets Owned [Member] | ||
Property Plant And Equipment [Line Items] | ||
Useful Life (Years) | 30 years | |
Gross fixed assets | $ 80,057 | 80,057 |
Furniture, Computer and Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross fixed assets | $ 230,062 | $ 230,063 |
Furniture, Computer and Office Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Useful Life (Years) | 3 years | |
Furniture, Computer and Office Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Useful Life (Years) | 5 years |
Fixed Assets, net - Additional
Fixed Assets, net - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Apr. 16, 2024 USD ($) Machine | Mar. 31, 2024 USD ($) Machine | Mar. 31, 2023 USD ($) | Dec. 31, 2023 Machine | |
Property, Plant and Equipment [Line Items] | ||||
Sale of impairment | $ 1,200,000 | |||
Expected price | 1,300,000 | |||
Less than the expected price | $ 79,000 | |||
Machines sold to third party | $ 79,000 | |||
Additional loss recognized upon the asset sale | $ 0 | |||
Impairment loss | $ 0 | |||
Mining Machine [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Expected incoming shipment of machines | Machine | 21 | |||
Number of machines into service | Machine | 5,900 | 5,900 | ||
Number of machines relocation | Machine | 365 | |||
Number of machines in storage | Machine | 365 | |||
Sold of machine | Machine | 365 | |||
Furniture, Computer and Office Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 2,400,000 | $ 800,000 |
Deposits on Mining Equipment _2
Deposits on Mining Equipment and Hosting Services - Additional information (Detail) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Deposit [Line Items] | ||
Deposit on mining equipment | $ 1,117,798 | $ 20,837 |
Mining Machine [Member] | ||
Deposit [Line Items] | ||
Deposit on mining equipment | 1,100,000 | 20,000 |
Hosting Agreement [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Deposit [Line Items] | ||
Hosting fee deposits | $ 1,700,000 | $ 3,100,000 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) | 3 Months Ended | |||||
Dec. 26, 2024 | Dec. 26, 2023 | Mar. 31, 2024 | Jan. 29, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Schedule of Investments [Line Items] | ||||||
Marketable equity securities, Cost of Shares Sold | $ 0 | $ (739,616) | $ 0 | |||
Note payable - short-term (Note 6) | 325,669 | 567,586 | ||||
Symbiont IO [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Asset acquired for total consideration | $ 2,800,000 | |||||
Symbiont Assets [Member] | ROFR Agreement {Member] | Notes Receivable | ||||||
Schedule of Investments [Line Items] | ||||||
Annual interest rate | 16% | |||||
Investment maturity date | Dec. 01, 2021 | |||||
Asset Purchase Agreement [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Sale proceeds of asset | $ 2,000,000 | |||||
Asset Purchase Agreement [Member] | Forecast [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Amount held in customary indemnity escrow | $ 200,000 | |||||
Maximum [Member] | Symbiont Assets [Member] | ROFR Agreement {Member] | Notes Receivable | ||||||
Schedule of Investments [Line Items] | ||||||
Note payable - short-term (Note 6) | $ 2,000,000 | |||||
Seastar Medical [Member] | Credit Agreement [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Accrued interest income on debt securities | 0 | 13,000 | ||||
Seastar Medical [Member] | Credit Agreement [Member] | LMF Acquisition Opportunities Inc [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Accrued interest income on debt securities | 0 | $ 1,400,000 | 3,000 | |||
Seastar Medical [Member] | Credit Agreement [Member] | Related Party [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Amount loaned under credit agreement | 0 | 1,127,000 | ||||
Seastar Medical [Member] | Credit Agreement [Member] | Related Party [Member] | LMF Acquisition Opportunities Inc [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Amount loaned under credit agreement | $ 0 | $ 1,400,000 | $ 296,000 |
Investments - Summary of Market
Investments - Summary of Marketable Equity Securities (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Investments [Abstract] | |||
Marketable equity securities, Cost | $ 17,860 | $ 743,906 | |
Marketable equity securities, Cost of Shares Sold | 0 | (739,616) | $ 0 |
Marketable equity securities, Gross Unrealized Gain (Loss) | (2,160) | 13,570 | |
Marketable equity securities, Fair Value | $ 15,700 | $ 17,860 |
Investments - Schedule of Notes
Investments - Schedule of Notes Receivable (Details) - Long Term Investments - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Beginning of year | $ 1,440,498 | $ 3,807,749 | |
Accrued interest income on debt securities | 8,568 | 53,734 | |
End of period | 2,216,649 | ||
Seastar Medical [Member] | |||
Notes receivable from Seastar Medical Holding Corporation | 2,216,649 | $ 1,440,498 | |
Repayment of Seastar Medical Holding Corporation notes receivable | $ (1,449,066) | $ (1,644,834) |
Investments - LMFAO and SM Warr
Investments - LMFAO and SM Warrants and SMHC Common Stock - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Investments [Line Items] | |||
Unrealized gain (loss) on investment and equity securities | $ 1,350,979 | $ (5,822,854) | |
LMFA Sponsor LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Purchased aggregate of private placement warrants | 5,738,000 | ||
Seastar Medical Corporation [Member] | |||
Schedule of Investments [Line Items] | |||
Percentage of ownership, common shares | 2.40% | ||
Class A Common Stock [Member] | Seastar Medical Corporation [Member] | |||
Schedule of Investments [Line Items] | |||
Shares holds by sponsor | 2,587,500 | 2,587,500 | |
Percentage of common stock hold by sponsors | 3.40% | 3.40% | |
Seastar Medical [Member] | |||
Schedule of Investments [Line Items] | |||
Share Price | $ 0.73 | $ 1.86 | |
Gain or loss on equity investment in unconsolidated subsidiary | $ 800,000 | $ 5,800,000 | |
LMF Acquisition Opportunities Inc [Member] | Seastar Medical Corporation [Member] | |||
Schedule of Investments [Line Items] | |||
Minority interest | 30% | ||
Private Placement Warrants [Member] | LMFA Sponsor LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Unrealized gain (loss) on equity securities | $ 597,000 | (26,000) | |
Warrant [Member] | Class A Common Stock [Member] | Seastar Medical Corporation [Member] | |||
Schedule of Investments [Line Items] | |||
Private warrants hold by sponsors | 5,738,000 | 5,738,000 | |
Common Stock And Warrants [Member] | |||
Schedule of Investments [Line Items] | |||
Unrealized gain (loss) on investment and equity securities | $ 1,400,000 | $ (5,800,000) |
Investments - Schedule of Long
Investments - Schedule of Long Term Investment - Equity Securities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Beginning of year | $ 1,145,486 | |
End of period | 1,899,484 | |
Stock Warrants [Member] | ||
Beginning of year | 156,992 | |
End of period | 753,973 | $ 437,924 |
Long Term Investments | ||
Beginning of year | 156,992 | 464,778 |
Unrealized gain (loss) on equity securities | 596,981 | (26,854) |
End of period | $ 753,973 | $ 437,924 |
Investments - Summary of Invest
Investments - Summary of Investment in Unconsolidated Affiliates (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Beginning of year | $ 1,145,486 | |
Unrealized gain (loss) on investment and equity securities | 1,350,979 | $ (5,822,854) |
End of period | 1,899,484 | |
Seastar Medical Holding Corporation. [Member] | ||
Beginning of year | 1,145,486 | 10,608,750 |
Unrealized gain (loss) on investment and equity securities | 753,998 | (5,796,000) |
End of period | $ 1,899,484 | $ 4,812,750 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Schedule of Debt (Detail) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Notes payable | $ 325,669 | $ 567,586 |
Financing agreement with Imperial PFS capital maturing in July 1, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 10,973 | 21,945 |
Financing agreement with Imperial PFS capital maturing in August 1, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 209,386 | 335,022 |
Financing agreement with Imperial PFS capital maturing in June 1, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 105,310 | $ 210,619 |
Debt and Other Financing Arra_4
Debt and Other Financing Arrangements - Schedule of Debt (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Financing agreement with Imperial PFS capital maturing in July 1, 2024 [Member] | |
Debt Instrument [Line Items] | |
Down payment for note payable | $ 3,438 |
Debt instrument, maturity date | Jul. 01, 2024 |
Annual interest rate | 12.05% |
Debt instrument, periodic payment | $ 3,658 |
Debt instrument due period | 11 months |
Financing agreement with Imperial PFS capital maturing in August 1, 2024 [Member] | |
Debt Instrument [Line Items] | |
Down payment for note payable | $ 36,544 |
Debt instrument, maturity date | Aug. 01, 2024 |
Annual interest rate | 9.60% |
Debt instrument, periodic payment | $ 41,879 |
Debt instrument due period | 10 months |
Financing agreement with Imperial PFS capital maturing in June 1, 2024 [Member] | |
Debt Instrument [Line Items] | |
Down payment for note payable | $ 30,000 |
Debt instrument, maturity date | Jun. 01, 2024 |
Annual interest rate | 12.05% |
Debt instrument, periodic payment | $ 35,103 |
Debt instrument due period | 6 months |
Debt and Other Financing Arra_5
Debt and Other Financing Arrangements - Schedule of Principal Payments of Debt (Details) | Mar. 31, 2024 USD ($) |
Debt Instruments [Abstract] | |
2024 | $ 325,669 |
Principal amount | $ 325,669 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | |||||||
Feb. 27, 2023 USD ($) | Nov. 08, 2022 USD ($) Container | Sep. 02, 2022 | Oct. 31, 2021 USD ($) Container BitcoinMachine | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 29, 2022 USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Adjustments to right of use of assets and lease liabilities | $ 22,000 | |||||||
Operating lease discount rate | 7.35% | |||||||
Sublease Income | $ 7,000 | $ 15,000 | ||||||
Lease expense | 29,000 | $ 28,000 | ||||||
Lessee operating lease term of contract | 39 months | |||||||
Impairment charge | $ 3,150,000 | |||||||
Amount of Arbitrator's award | $ 3,200,000 | |||||||
Hosting Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of manufacturing specialty containers | BitcoinMachine | 18 | |||||||
Impairment charge | $ 800,000 | |||||||
Payment for deposit | $ 800,000 | |||||||
Additional deposit for each container three months prior to delivery at the hosting site | 44,000 | |||||||
Final deposit for each container one month prior to arrival at the hosting site | $ 44,000 | |||||||
Lawsuit filing date | September 2, 2022 | |||||||
Name of defendant | Uptime Hosting LLC | |||||||
Release and Termination Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Deposit receivable on termination | $ 800,000 | |||||||
Business Law Group [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Sublease Income | $ 2,500 | |||||||
New Office Lease [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Operating lease beginning date | Jul. 15, 2019 | |||||||
Operating lease expire date | Jul. 31, 2025 | |||||||
Pod5ive Containers [Member] | Uptime Purchase Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Pod5ive cargo containers | Container | 18 | |||||||
Aggregate purchase price of asset | $ 3,150,000 | |||||||
Payment require to payable to acquire assets | $ 2,400,000 | |||||||
Percentage of first payment require payable to acquire assets | 75% | |||||||
Percentage of second payment require payable to acquire assets | 25% | |||||||
Number of manufacturing specialty containers | Container | 18 | |||||||
Legal action instituted, value | $ 3,150,000 | |||||||
Minimum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Operating lease remaining lease term | 17 months | |||||||
Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Operating lease remaining lease term | 26 months |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Assets and Liabilities, Lessee [Abstract] | ||
ROU assets | $ 162,966 | $ 189,009 |
Current lease liabilities | 114,148 | 110,384 |
Long-term lease liabilities | 56,148 | 85,775 |
Total lease liabilities | $ 170,296 | $ 196,159 |
Weighted-average remaining lease term (in years) | 1 year 6 months | 1 year 8 months 12 days |
Weighted-average discount rate | 7.49% | 7.49% |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating cash flow information | ||
Lease liability payments | $ (25,863) | $ (22,243) |
ROU assets and operating lease obligation recognized | $ 0 | $ 21,887 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Future Minimum Lease Payment Due (Detail) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 92,011 | |
2025 | 85,324 | |
2026 | 3,163 | |
(less: imputed interest) | (10,202) | |
Total lease liabilities | $ 170,296 | $ 196,159 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Plan Activity (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Number of Options | ||
Number of Options, Outstanding at Beginning of the year | 599,597 | 186,877 |
Number of Options, Granted | 0 | 0 |
Number of Options, Cancelled | 0 | 0 |
Number of Options, Forfeited | 0 | 0 |
Number of Options, Outstanding at End of Year | 599,597 | 186,877 |
Number of Options, Exercisable at End of Year | 383,152 | 34,402 |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Outstanding at Beginning Balance | $ 9 | $ 19.56 |
Weighted Average Exercise Price, Granted | 0 | 0 |
Weighted Average Exercise Price, Cancelled | 0 | 0 |
Weighted Average Exercise Price, Forfeited | 0 | 0 |
Weighted Average Exercise Price, Outstanding at Ending Balance | 9 | 19.56 |
Weighted Average Exercise Price, Exercisable | $ 10.81 | $ 67.2 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Restricted Share Activity (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of restricted shares outstanding at, beginning balance | 86,667 | 0 |
Number of restricted shares, vested | (65,000) | 0 |
Number of restricted shares outstanding at, ending balance | 21,667 | 0 |
Weighted Average, Outstanding at Beginning Balance | $ 4.51 | $ 0 |
Weighted Average Award Price, vested | 4.51 | 0 |
Weighted Average, Outstanding at ending balance | $ 4.51 | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 3 Months Ended | ||||
Feb. 23, 2024 $ / shares | Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares | Jun. 26, 2023 USD ($) | |
Class Of Stock [Line Items] | |||||
Reverse stock split, description | On February 23, 2024, the Board approved a one-for-six (1:6) reverse split of the Company’s issued and outstanding common stock, par value $0.001 per share, pursuant to which every six outstanding shares of common stock was converted into one share of common stock (the “Reverse Stock Split”). The Reverse Stock Split was effected by the filing of an amendment to our Certificate of Incorporation on March 7, 2024 which provided that the Reverse Stock Split become effective at 12:01 a.m. eastern time on March 12, 2024. | ||||
Reverse stock split ratio | 0.1667 | ||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||
Number of options granted | shares | 0 | 0 | |||
Stock option exercise per share | $ / shares | $ 0 | $ 0 | |||
Recognized stock compensation expense of stock options | $ 100,000 | $ 200,000 | |||
Aggregate intrinsic value of outstanding common stock options | 0 | $ 0 | |||
Stock compensation | $ 71,047 | ||||
Remaining weighted average life of the options | 8 years 9 months 18 days | ||||
Remaining weighted average life of the warrants | 2 years 6 months | ||||
Common stock, aggregate offering price | $ 2,493 | $ 2,493 | |||
Aggregate gross sales limit | 4,747,604 | 2,313,518 | |||
Stock Options [Member] | |||||
Class Of Stock [Line Items] | |||||
Unrecognized compensation cost of stock options | 500,000 | ||||
Restricted shares [Member] | |||||
Class Of Stock [Line Items] | |||||
Unrecognized compensation cost of stock options | $ 5,000 | ||||
Equity Distribution Agreement | |||||
Class Of Stock [Line Items] | |||||
Common stock, aggregate offering price | $ 4,700,000 | ||||
Sale of stock under ATM program | shares | 0 | ||||
Aggregate gross sales limit | $ 2,700,000 | ||||
Legal and professional fees incurred related to ATM program | 138,000 | ||||
Consulting in Blockchain and Crypto Currency Field [Member] | Two Vendors [Member] | Restricted shares [Member] | |||||
Class Of Stock [Line Items] | |||||
Stock compensation | $ 71,000 | $ 0 | |||
Stock Warrants [Member] | |||||
Class Of Stock [Line Items] | |||||
Number of restricted shares, granted | shares | 0 | 0 | |||
Warrants, aggregate intrinsic value outstanding | $ 0 | $ 0 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Stock Warrants (Detail) - Warrant [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of restricted shares outstanding at, beginning balance | 1,274,807 | 1,279,573 |
Number of warrants, granted | 0 | 0 |
Number of warrants, exercised | 0 | 0 |
Number of warrants, forfeited | 0 | 0 |
Number of restricted shares outstanding at, ending balance | 1,274,807 | 1,279,573 |
Weighted Average, Outstanding at Beginning Balance | $ 30.04 | $ 30 |
Weighted Average Exercise Price, granted | 0 | 0 |
Weighted Average Exercise Price, exercised | 0 | 0 |
Weighted Average Exercise Price, forfeited | 0 | 0 |
Weighted Average, Outstanding at ending balance | $ 30.04 | $ 30 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 Segment | |
Segment Reporting [Abstract] | |
Reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenue, net | $ 4,747,604 | $ 2,313,518 |
Depreciation and amortization | 2,426,068 | 801,873 |
Operating income (loss) | 562,602 | (1,969,426) |
Unrealized gain (loss) on investment and equity securities | 1,350,979 | (5,822,854) |
Gain on fair value of purchased Bitcoin, net | 57,926 | |
Realized gain on sale of purchased digital assets | 1,917 | |
Unrealized gain (loss) on marketable securities | (2,160) | 5,790 |
Impairment loss on prepaid hosting deposits | (36,691) | |
Loss on disposal of assets | (8,170) | |
Other income - coupon sales | 4,490 | 603,591 |
Interest income | 9,125 | 55,077 |
Interest expense | (70,826) | |
Income (Loss) before income taxes | 1,903,966 | (7,162,596) |
Fixed Asset Additions | 318,470 | |
Operating Segments [Member] | Specialty Finance [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 149,696 | 222,667 |
Depreciation and amortization | 1,366 | 2,966 |
Operating income (loss) | (307,084) | (211,646) |
Income (Loss) before income taxes | (307,084) | (211,646) |
Operating Segments [Member] | Mining Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 4,597,908 | 2,090,851 |
Depreciation and amortization | 2,423,062 | 797,869 |
Operating income (loss) | 2,272,837 | (456,802) |
Impairment loss on prepaid hosting deposits | (36,691) | |
Loss on disposal of assets | (8,170) | |
Other income - coupon sales | 4,490 | 603,591 |
Interest expense | (70,826) | |
Income (Loss) before income taxes | 2,198,331 | 110,098 |
Fixed Asset Additions | 316,874 | |
All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 1,640 | 1,038 |
Operating income (loss) | (1,403,151) | (1,300,978) |
Unrealized gain (loss) on investment and equity securities | 1,350,979 | (5,822,854) |
Gain on fair value of purchased Bitcoin, net | 57,926 | |
Realized gain on sale of purchased digital assets | 1,917 | |
Unrealized gain (loss) on marketable securities | (2,160) | 5,790 |
Interest income | 9,125 | 55,077 |
Income (Loss) before income taxes | $ 12,719 | (7,061,048) |
Fixed Asset Additions | $ 1,596 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Mar. 28, 2024 | Feb. 01, 2022 | Jan. 02, 2017 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Subsidiaries [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Recoveries incurred | $ 15 | $ 14 | ||||
Business Law Group Association Law [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Reduction in compensation payable | $ 43 | $ 53 | ||||
Ownership percentage | 50% | |||||
Receivable from related party | 57 | $ 24 | ||||
Business Law Group [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Monthly payment for cases | 53 | |||||
Minimum fee paid per unit | $ 700 | |||||
Collection from property owners | 129 | 159 | ||||
Office sublease income | 7 | 15 | ||||
Business Law Group [Member] | Out of Pocket Collection Costs [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses incurred by company | $ 14 | $ 4 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent event [Member] $ in Millions | May 13, 2024 USD ($) |
Subsequent Event [Line Items] | |
Secured loan | $ 1.5 |
Interest on a monthly basis | 10% |
Maturity Date | May 14, 2025 |