LM Funding America (LMFA) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Trading Symbol	LMFA
Entity Registrant Name	LM FUNDING AMERICA, INC.
Entity Central Index Key	1,640,384
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	3,300,000
Entity Public Float		$ 0

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Assets
Cash	$ 8,997,798	$ 2,027,694
Finance receivables:
Original product	1,537,101	2,430,456
Special product - New Neighbor Guaranty program, net of allowance for credit losses of $125,000 and $0, respectively	715,534	1,042,805
Due from related party	406,219	463,900
Prepaid expenses and other assets	151,362	310,688
Debt issue costs, net	197,959	290,688
Fixed assets, net	158,692	162,396
Real estate assets owned	285,341	42,731
Deferred tax asset	2,162,380
Total assets	14,612,386	6,771,358
Liabilities and stockholders' equity/members' deficit
Notes Payable	7,729,605	7,431,938
Accounts payable and accrued expenses	466,783	344,721
Deferred revenue - origination fees	51,740	61,966
Deferred tax liability	41,803
Other liabilities and obligations	57,989	65,910
Total liabilities	8,347,920	7,904,535
Members' deficit (see note 9)		(1,144,212)
Stockholders' equity
Common stock, par value $.001; 10,000,000 shares authorized; 3,300,000 shares issued and outstanding	3,300
Additional paid-in capital	6,281,322
Accumulated deficit	(20,156)
Noncontrolling interest		11,035
Total stockholders' equity/(members' deficit)	6,264,466	(1,133,177)
Total liabilities and stockholders’ equity/(members' deficit)	$ 14,612,386	$ 6,771,358

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Allowance for credit losses	$ 125,000	$ 0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,300,000	3,300,000
Common stock, shares, outstanding	3,300,000	3,300,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues
Interest on delinquent association fees	$ 5,588,697	$ 6,432,878
Administrative and late fees	544,067	709,846
Recoveries in excess of cost - special product	345,686	136,655
Underwriting and origination fees	302,154	243,366
Rental revenue	180,157	126,644
Total revenues	6,960,761	7,649,389
Operating Expenses
Staff Costs & Payroll	1,288,342	1,301,137
Professional fees	819,343	565,537
Settlement costs with associations	805,180	373,422
Selling, general and administrative	686,721	716,503
Real estate management and disposal	270,574	190,743
Depreciation and amortization	247,646	152,668
Collection costs	206,998	715,547
Provision for credit losses	125,000
Other operating	68,565	102,476
Operating expenses	4,518,369	4,118,033
Operating Income	2,442,392	3,531,356
Interest expense	717,305	985,023
Income before income taxes	1,725,087	2,546,333
Income tax benefit	146,555
Net income	1,871,642	2,546,333
Net (income) attributable to non-controlling interest	(139,865)	(163,869)
Net (income) loss	(1,731,777)	(2,382,464)
Net loss to common stockholders	$ (20,156)
Loss per share attributable to the stockholders of LM Funding America, Inc.
Basic	$ (0.01)
Diluted	$ (0.01)
Weighted average number of common shares outstanding
Basic	3,300,000
Diluted	3,300,000
Predecessor [Member]
Operating Expenses
Net (income) loss	$ (1,751,933)	$ (2,382,464)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Non-controlling Interest [Member]	Before Stock Offering [Member]	Before Stock Offering [Member]Non-controlling Interest [Member]	After Stock Offering [Member]	After Stock Offering [Member]Accumulated Deficit [Member]	After Stock Offering [Member]Non-controlling Interest [Member]	LM Funding Management, LLC [Member]	CGR 63, LLC [Member]	CGR 63, LLC [Member]Before Stock Offering [Member]	BRR Holding, LLC [Member]	BRR Holding, LLC [Member]Before Stock Offering [Member]
Balance at Dec. 31, 2013	$ (2,545,797)				$ 1,716						$ (1,273,494)	$ (1,274,019)
Distributions	(1,133,713)				(154,550)						(490,000)	(489,163)
Net income (loss), allocated	2,546,333				163,869						1,191,232	1,191,232
Balance at Dec. 31, 2014	(1,133,177)				11,035						(572,262)	(571,950)
Close out capital account											$ 572,262	(572,262)
Redemption of membership interest	(1,960,010)											(1,960,010)
Distributions	(3,940,474)				(36,015)							(3,904,459)
Net income (loss), allocated	1,871,642					$ 1,887,103	$ 135,170	$ (15,461)	$ (20,156)	$ 4,695			$ 1,716,452		$ 35,481
Balance at Dec. 31, 2015	6,264,466	$ 3,300	$ 6,281,322	$ (20,156)
Balance, shares at Dec. 31, 2015		3,300,000
Deferred tax asset	1,974,022		1,974,022
Reorganization			(5,256,748)									$ 5,292,229		$ (35,481)
Initial public stock offering	9,688,196	$ 3,300	9,684,896
Initial public stock offering, shares		3,300,000
Purchase of non-controlling interest	(250,000)		(135,115)		$ (114,885)
Stock option expense	$ 14,267		$ 14,267

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest on delinquent association fees	$ 5,588,697	$ 6,432,878
Administrative and late fees	544,067	709,846
Recoveries in excess of cost - special product	345,686	136,655
Underwriting and origination fees	291,928	183,621
Rental revenue	180,157	126,644
Staff costs and payroll	(1,288,342)	(1,301,137)
Other operating expenses	(2,694,649)	(2,785,306)
Interest paid	(717,305)	(1,080,631)
Net cash provided by operating activities	2,250,239	2,422,570
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(43,761)	(146,325)
Proceeds / (payments) for real estate assets owned	(242,610)	(22,500)
Net cash provided by investing activities	934,255	1,085,246
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings	2,172,626	7,431,938
Principal repayments	(1,874,959)	(8,252,849)
Redemption of membership interest	(1,960,010)
Distributions	(3,904,459)	(979,163)
Return of capital to non-controlling interest	(36,015)	(154,550)
Advances (repayments) to related party	57,681	21,090
Proceeds from initial public stock offering, net (See Note 9)	9,688,196
Purchase of non-controlling interest	(250,000)
Debt issue costs	(107,450)	(311,438)
Net cash provided by (used in) financing activities	3,785,610	(2,244,972)
NET INCREASE IN CASH	6,970,104	1,262,844
CASH - BEGINNING OF YEAR	2,027,694	764,850
CASH - END OF YEAR	8,997,798	2,027,694
Original Product [Member]
CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections (funding) of finance receivables	893,355	1,327,507
Special Product [Member]
CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections (funding) of finance receivables	$ 327,271	$ (73,436)

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Nature of Operations LM Funding America, Inc. (“LMFA” or the “Company”) was formed as a Delaware corporation on April 20, 2015. LMFA was formed for the purposes of completing a public offering and related transactions in order to carry on the business of LM Funding, LLC and its subsidiaries (the “Predecessor”). LMFA is the sole member of LM Funding, LLC and operates and controls all of its businesses and affairs. LM Funding, LLC is a Florida Limited Liability Company organized during January 2008 and under the terms of the Operating Agreement effective January 8, 2008 (“Operating Agreement”) as amended, had two members: BRR Holding, LLC and CGR 63, LLC. The members contributed their equity interest to LMFA prior to the closing of its initial public offering. The Company is a specialty finance company that provides funding principally to community associations, almost exclusively located in Florida. The business of the Company is conducted pursuant to relevant state statutes (“Statutes”) principally Florida Statute 718.116. The Statutes provide each community association lien rights to secure payment from unit owners (property owners) for assessments, interest, administrative late fees, reasonable attorney’s fees, and collection costs. In addition, the lien rights granted under the Statutes are given a higher priority (a “Super Lien”) than all other lien holders except property tax liens. The Company provides funding to associations for their delinquent assessments from property owners in exchange for an assignment of the association’s right to proceeds collected pursuant to the Statutes. The Company derives its revenues from the proceeds of association collections. The Statutes specify that the rate of interest an association (or its assignor) may charge on delinquent assessments is equal to the rate set forth in the association’s declaration or bylaws. If a rate is not specified, the statutory rate is equal to 18% but may not exceed the maximum rate allowed by law. The Statutes also stipulate that administrative late fees cannot be charged on delinquent assessments unless so provided by the association’s declaration or bylaws and may not exceed the greater of $25 or 5% of each delinquent assessment. The Statutes limit the liability of a first mortgage holder for unpaid assessments and related charges and fees (as set forth above) in the event of title transfer by foreclosure or acceptance of deed in lieu of foreclosure. This liability is limited to the lesser of twelve months of regular periodic assessments or one percent of the original mortgage debt on the unit (the “Super Lien Amount”). Effective November 1, 2015, LMFA purchased for $250,000 the outstanding 5% ownership in its subsidiary LMF SPE, #2, LLC held by CRE Funding, LLC. Under terms of the agreement, the tax consequences of the transaction are retroactive to December 31, 2014. Principles of Consolidation The consolidated financial statements include the accounts of LM Funding America, Inc. and its wholly-owned subsidiaries: LM Funding, LLC, LMF October 2010 Fund, LLC; REO Management Holdings, LLC; LM Funding of Colorado, LLC; LM Funding of Washington, LLC; and LMF SPE #2, LLC. All significant intercompany balances have been eliminated in consolidation. Basis of Presentation The consolidated financial statements have been prepared by the Company, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The Company prepares its consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”). 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. Significant estimates include the evaluation of any probable losses on amounts funded under the Company’s New Neighbor Guaranty Note 1. Summary of Significant Accounting Policies (Continued) Revenue Recognition Accounting Standards Codification (“ASC”) 605-10-25-1 of the Financial Accounting Standards Board (“FASB”) states revenues are realized or realizable when related assets received or held are readily convertible into known amounts of cash. In those cases where there is no reasonable basis for estimating the “known amount” of cash to be collected, the cash basis or cost recovery method of recognizing revenues may be used. 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 has determined that the known amount of cash to be realized or realizable on its revenue generating activities cannot be reasonably estimated and as such, classifies its finance receivables as nonaccrual and recognizes revenues in the accompanying consolidated statements of income on the cash basis or cost recovery method in accordance with ASC 310-10, . 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 community 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 where 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 community 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. 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. Finance Receivables Finance receivables are recorded at the amount funded or cost (by unit). The Company evaluates its finance receivables at each period end for losses that are considered probable and can be reasonably estimated in accordance with ASC 450-20. As discussed above, recoverability of funded amounts under the Company’s original product is generally assured because of the protection of the Super Lien Amount. As such, the Company did not have any allowance for credit losses related to its original product at December 31, 2015 and 2014. Under the New Neighbor Guaranty Note 1. Summary of Significant Accounting Policies (Continued) The Company estimated an allowance for credit losses of $125,000 as of December 31, 2015 under ASC 450-20 related to its New Neighbor Guaranty program. See note 4. The Company did not have any significant receivable balances at December 31, 2014 that met the criteria of ASC 450-20 and as such, did not have an allowance for credit losses for the New Neighbor Guaranty program at that date. The Company will charge any receivable against the allowance for credit losses when management believes the uncollectibility of the receivable is confirmed. The Company considers writing off a receivable when (i) a first mortgage holder who names the association in a foreclosure suit takes title and satisfies an estoppel letter for amounts owed which are less than amounts the Company funded to the association; (ii) a tax deed is issued with insufficient excess proceeds to pay amounts the Company funded to the association; or (iii) an association settles an account for less than amounts the Company funded to the association. Upon the occurrence of any of these events, the Company evaluates the potential recovery via a deficiency judgment against the prior owner and the ability to collect upon the deficiency judgment within the 20 year statute of limitations period or whether the deficiency judgment can be sold. Additionally, with New Neighbor Guaranty Real Estate Assets Owned In the event collection of a delinquent assessment results in a unit being sold in a foreclosure auction, the Company has the right to bid (on behalf of the community association) for the delinquent unit as attorney in fact, applying any amounts owed for the delinquent assessment to the foreclosure price as well as any additional funds that the Company, in its sole discretion, decides to pay. If a delinquent unit becomes owned by the community association by acquiring title through an association lien foreclosure auction, by accepting a deed-in-lieu of foreclosure, or by any other way, the Company in its sole discretion may direct the community association to quitclaim title of the unit to the Company. Properties quitclaimed to the Company are in most cases acquired subject to a first mortgage or other liens, and are recognized in the accompanying consolidated balance sheets solely at costs incurred by the Company in excess of original funding. At times, the Company will acquire properties through foreclosure actions free and clear of any mortgages or liens. In these cases, the Company records the estimated fair value of the properties in accordance with ASC 820-10, Fair Value Measurements If the Company elects to take a quitclaim title to a unit or property held for sale, the Company is responsible to pay all future assessments on a current basis, until a change of ownership occurs. The community association must allow the Company to lease or sell the unit to satisfy obligations for delinquent assessments of the original debt. All proceeds collected from any sale of the unit shall be first applied to all amounts due the Company plus any additional funds paid by the Company to purchase the unit, if applicable. Rental revenues and sales proceeds related to real estate assets held for sale are recognized when earned and realizable. Expenditures for current assessments owed to associations, repairs and maintenance, utilities, etc. are expensed when incurred. If the community association elects (prior to the Company obtaining title through its own election) to maintain ownership and not quitclaim title to the Company, the community association must pay the Company all interest, late fees, collection costs and legal fees expended, plus the original funding on the unit, which have accrued according to the purchase agreement entered into by the community association and the Company. In this event, the unit will be reassigned to the community association. Fixed Assets The Company capitalizes all acquisitions of fixed assets in excess of $500. Fixed assets are stated at cost. Depreciation is provided on the straight-line method over the estimated useful lives of the assets. Fixed assets are comprised of furniture, computer and office equipment with an assigned useful life of 3 to 5 years. Fixed assets also includes capitalized software costs. Capitalized software costs include costs to develop software to be used solely to meet the Company’s internal needs, consist of employee salaries and benefits and fees paid to outside consultants during the application development stage, and are amortized over their estimated useful life of 5 years. As of December 31, 2015 and December 31, 2014, capitalized software costs, net of accumulated amortization, was $91,729 and $114,988, respectively. Amortization expense for capitalized software costs for the periods ended December 31, 2015 and December 31, 2014 was $23,259 and $1,308, respectively. Note 1. Summary of Significant Accounting Policies (Continued) Debt Issue Costs The Company capitalizes all debt issue costs and amortizes them on a method that approximates the effective interest method over the remaining term of the note payable. Debt issue costs were $197,959 at December 31, 2015 and $290,688 at December 31, 2014. In connection with refinancing certain debt of the Company in 2015, the Company wrote off debt issue costs of approximately $71,000. Settlement Costs with Associations Community associations working with the Company will at times incur costs in connection with litigation initiated by the Company against property owners and or mortgage holders. These costs include settlement agreements whereby the community association agrees to pay some monetary compensation to the opposing party or judgments against the community associations for fees of opposing legal counsel or other damages awarded by the courts. The Company indemnifies the community association for these costs pursuant to the provisions of the agreement between the Company and the community association. Costs incurred by the Company for these indemnification obligations for the year ended December 31, 2015 and 2014 were $805,180 and $373,422, respectively. The Company does not limit its indemnification based on amounts ultimately collected from property owners. Income Taxes Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist of taxes currently due plus deferred taxes resulting primarily from the tax effects of temporary differences between financial and income tax reporting. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Prior to the initial public offering in October 2015, the taxable earnings of the Predecessor were included in the tax returns of its members (separate limited liability companies) and taxed depending on personal tax situations. In connection with the initial public offering, the members contributed ownership interests to the Company (a newly form C-Corporation) and all earnings subsequent to that date (October 23, 2015) are subject to taxes and reflected in the Company’s consolidated financial statements. Loss Per Share Basic loss per share is calculated as net loss to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted loss per share for the period equals basic loss per share as the effect of any stock based compensation awards or stock warrants would be anti-dilutive. Stock-Based Compensation The Company records all equity-based incentive grants to employees and non-employee members of the Company’s Board of Directors in operating expenses in the Company’s Consolidated Statement of Income based on their fair values determined on the date of grant. Stock-based compensation expense, reduced for estimated forfeitures, is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the outstanding equity awards. 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. 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. The Company engages a third party valuation firm to assist in estimating the fair value of its finance receivables. See Note 11. Note 1. Summary of Significant Accounting Policies (Continued) Risks and Uncertainties Funding amounts are secured by a priority lien position provided under Florida law (see discussion above regarding Florida Statute 718.116). However, in the event the first mortgage holder takes title to the property, the amount payable by the mortgagee to satisfy the priority lien is capped under this same statute and would generally only be sufficient to reimburse the Company for funding amounts noted above for delinquent assessments. Amounts paid by the mortgagee would not generally reimburse the Company for interest, administrative late fees and collection costs. Even though the Company does not recognize these charges as revenues until collected, its business model and long-term viability is dependent on its ability to collect these charges. In the event a delinquent unit owner files for bankruptcy protection, the Company may at its option be reimbursed by the association for the amounts funded (i.e., purchase price) and all collection rights are re-assigned to the association. New Accounting Pronouncements Revenue Recognition - On May 28, 2014, the Financial Accounting Standards Board issued ASU 2014-09— which provided new accounting guidance regarding revenue recognition, and is effective for annual periods beginning after December 15, 2017. The Company has not yet evaluated the impact of this new guidance on its consolidated financial statements. Debt Issue Costs - In April 2015, FASB issued ASU 2015-03, (“ASU 2015-03”). The amended guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected by the amendments in this ASU. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015. Subsequent Events The Company has evaluated subsequent events through the date which the consolidated financial statements were issued. Other than events described in Note 13, there were no material subsequent events that required recognition in these consolidated financial statements.

Finance Receivables - Original

Finance Receivables - Original Product	12 Months Ended
	Dec. 31, 2015
Original Product [Member]
Finance Receivables	Note 2. Finance Receivables – Original Product The Company’s original funding product provides financing to community associations only up to the secured or “Super Lien Amount” as discussed in Note 1. Finance receivables for the original product as of December 31, based on the year of funding are approximately as follows: 2015 2014 Funded during the current year $ 94,000 $ 221,000 1-2 years outstanding 87,000 348,000 2-3 years outstanding 193,000 667,000 3-4 years outstanding 390,000 733,000 Greater than 4 years outstanding 773,000 462,000 $ 1,537,000 $ 2,431,000 Number of active units with delinquent assessments 1,983 2,950 Amount of outstanding interest and late fees on active units $ 21,000,000 $ 23,500,000

Finance Receivables - Special P

Finance Receivables - Special Product (New Neighbor Guaranty program)	12 Months Ended
	Dec. 31, 2015
Special Product (New Neighbor Guaranty Program) [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance Receivables	Note 3. Finance Receivables – Special Product (New Neighbor Guaranty program) The Company typically funds amount equal to or less than the “Super Lien Amount”. During 2012 the Company began offering Associations an alternative product under the New Neighbor Guaranty program where the Company funds amounts in excess of the “Super Lien Amount”. Under this special product, the Company purchases substantially all of the outstanding past due assessments due from delinquent property owners, in addition to all interest, late fees and other charges in exchange for the Company’s commitment to pay monthly assessments on a going forward basis up to 48 months. Note 3. Finance Receivables – Special Product (New Neighbor Guaranty program) (Continued) As of December 31, 2015, maximum future contingent payments under these arrangements was approximately $988,000. The Company had mitigated the credit risk for these transactions by insuring the payment of a portion of uncollected assessments paid by the Company during 2015 and 2014, (See Note 4 below). Finance receivables at December 31, 2015 and 2014 related to this special product were approximately $716,000 and $1,043,000, respectively, under agreements with 32 associations covering 175 units at December 31, 2015 and 15 associations covering 245 units at December 31, 2014. Delinquent assessments and accrued charges under these arrangements as of December 31, are as follows: 2015 2014 Delinquent assessments $ 2,018,000 $ 3,089,000 Accrued interest and late fees 1,088,000 2,004,000 Recoveries on the collection of assessments in excess of the Company’s cost during 2015 and 2014 approximated $346,000 and $137,000, respectively.

New Neighbor Guaranty (NNG) All

New Neighbor Guaranty (NNG) Allowance for Credit Losses	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
New Neighbor Guaranty (NNG) Allowance for Credit Losses	Note 4. New Neighbor Guaranty (NNG) Allowance for Credit Losses Allowance for credit losses are recorded for losses that are considered “probable” and can be “reasonably estimated” in accordance with ASC 450-20. Recoverability of the Company’s Original Product is generally assured because of the protection of the Super Lien under Florida statute and as such no allowance is recorded. Recoverability of the Company’s NNG Product was, in prior years, considered to be generally assured by the purchase of credit insurance. The coverage was not renewed and only claims filed related to foreclosures occurring on or before January 28, 2016 will be covered under the insurance policy. As a result of the insurance policy not being renewed, credit losses on the NNG product were estimated by the Company based on analyzing the investment in each unit as of December 31, 2015 and comparing that balance to the average payout for completed units for the past 12 months. The Company performed an alternative analysis based on a calculation of historical loss experience using insurance recoveries during 2015 and 2014. Based on both these analyses, the Company estimated that an allowance for credit losses of $125,000 was necessary as of December 31, 2015.

Real Estate Assets Owned

Real Estate Assets Owned	12 Months Ended
	Dec. 31, 2015
Real Estate [Abstract]
Real Estate Assets Owned	Note 5. Real Estate Assets Owned Real estate assets owned as reported in the accompanying consolidated balance sheet consists of the fair market value less cost to dispose for those foreclosed units acquired free and clear of any mortgage or other liens plus costs incurred by the Company in excess of original funding on units. Real estate assets owned at December 31, 2015, and 2014, were approximately $285,300 and $42,700 respectively, consisting of eleven and two units owned respectively, at these dates. The Company acquired nine new unencumbered units at the end of 2015 that were capitalized at fair value less cost to dispose of approximately $237,000. Most units are quitclaimed to the Company without the Company incurring additional cost and are subject to mortgage. Total units within the real estate portfolio at December 31, 2015 and 2014 as a result of foreclosure action were, including those discussed above, 43 and 20, respectively. During 2015 and 2014, the Company sold one and five units, respectively, and realized proceeds of approximately $10,000 and $156,000, respectively. Any proceeds collected are first applied to recover the Company’s investment with any remaining proceeds applied next to interest, late fees, legal fees, collection costs and any amounts due to the community association. Any excess proceeds still remaining are recognized as gain on sale of real estate assets. If the future proceeds collected are lower than the Company’s carrying value, then a loss is recognized on the sale. There was no significant gain or loss on the disposal of real estate assets during 2015 or 2014. Rental revenues collected in 2015 and 2014 were approximately $180,000 and $127,000, respectively. As mentioned above, upon a unit being quitclaim deeded to the Company, the Company becomes responsible for current association assessments. The monthly contingent obligation for assessments due on these units to associations as of December 31, 2015 and 2014 approximates $15,000 and $7,000, respectively.

Long-Term Debt and Other Financ

Long-Term Debt and Other Financing Arrangements	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Long-Term Debt and Other Financing Arrangements	Note 6. Long-Term Debt and Other Financing Arrangements Year ended December 31, 2015 2014 Financing agreement with FlatIron capital. Down payment of $16,500 was required upfront and equal installment payments of $9,610 to be made over a 10 month period. Annualized interest is 5.25% $ 48,050 $ — Promissory note issued to a financial institution, bearing interest at 8%, interest payable monthly and principal payments due quarterly. Secured by all of the Company’s rights, title, interest, claims and demands associated with certain condominium units held in LMF SPE #2, LLC and all cash held in LMF SPE #2, LLC. Accrued but unpaid interest is due monthly beginning January 29, 2015. Installment of principal and interest are due quarterly. Note matures on December 30, 2017 and can be prepaid at any time without penalty. 6,241,555 7,431,938 Promissory note issued to a financial institution, bearing interest at 6%, principal of $55,555 per month plus interest due through maturity on February 1, 2018. This loan is collateralized by all of the accounts receivable, contract rights and lien rights arising from or relating to collection of Association payments made by the Company relating to certain Accounts as well as all deposit accounts and cash of LMF October 2010 Fund, LLC. LM Funding, LLC and its members guaranteed this loan. 1,440,000 — $ 7,729,605 $ 7,431,938 Minimum required principal payments on the Company’s debt as of December 31, 2015 are as follows : Years Ending December 31, 2016 $ 2,469,331 2017 5,260,274 $ 7,729,605

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 7. Commitments and Contingencies Leases The Company leases its office under an operating lease beginning March 1, 2014 and ending July 31, 2019 Future minimum lease payments due under this lease as of December 31, 2015 are as follows: Years Ending December 31, 2016 $ 343,000 2017 354,000 2018 364,000 2019 216,000 $ 1,277,000 The Company shares this space and the related costs associated with this operating lease with a related party (see Note 10) that also performs legal services associated with the collection of delinquent assessments. Rent expense recognized in 2015 and 2014 approximated $159,000 and $153,000, respectively. 7. COMMITMENTS AND CONTINGENCIES (Continued) Legal Proceedings Other than the lawsuits described below, we are not currently a party to material litigation proceedings. However, we frequently become party to litigation incident to 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. Solaris at Brickell Bay Condominium Association, Inc. v. LM Funding, LLC , Case No: 2014-20043-C, was brought before the Circuit Court of the Eleventh Judicial Circuit, Miami-Dade Civil Division on July 31, 2014. On May 4, 2011, we entered into a Delinquent Assessments Proceeds Purchase Agreement with the plaintiff (the “Solaris Agreement”). On February 13, 2014, the plaintiff notified us of its intent to rescind the Solaris Agreement, claiming that we had failed to foreclose on Accounts assigned to us under the Solaris Agreement. In response, we requested that the plaintiff pay amounts we believe to be owed to us under the Solaris Agreement. In its complaint, the plaintiff alleges claims such as a usurious loan transaction, state and federal civil Racketeer Influenced and Corrupt Organization Act claims, Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”) violations and other related claims. The plaintiff has requested rescission of the Solaris Agreement, forfeiture of all amounts lent by us to the plaintiff, a declaratory judgment that we have violated FDUTPA, other damages for breach of contract and violations of FDUTPA and attorneys’ fees. We believe these claims are without merit and we have counterclaimed for breach of contract, unjust enrichment, and other claims in the alternative. In the third quarter of 2015, we were successful in having the majority of the plaintiff’s claims against us dismissed. The plaintiff has since refiled a similar styled complaint and we are likewise seeking a dismissal of those allegations. The outcome of this litigation is indeterminate at this time and litigation remains ongoing. Wilmington Savings Fund Society FSB v. Business Law Group PA, LM Funding, LLC, Bruce Rodgers , Case No. 15-CA-009871, was brought before the Thirteenth Judicial Circuit Court for Hillsborough County Florida on October 29th, 2015. LM Funding, LLC received service on November 16, 2015. Plaintiff as trustee brought an action against Business Law Group, P.A., LM Funding, LLC, and Bruce Rodgers individually, alleging broad interactions with only Business Law Group, surrounding a dispute arising in the normal course of litigation. Plaintiff alleges against all parties claims such as violations of FDUTPA, unjust enrichment, and civil conspiracy. The plaintiff has requested declaratory relief that we have violated portions of FDUTPA, restitution, and additional monetary damages, and alleges that it is a proper plaintiff to represent a putative class. We believe these claims are without merit and plan to pursue all remedies available against plaintiff. This litigation is in its early stages and the outcome is indeterminate at this time.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 8. Income Taxes Prior to the initial public offering in October 2015, the earnings of the Predecessor, which was a limited liability company taxed as a partnership, were taxable to its members. In connection with the contribution of membership interests to the Company (a C-Corporation formed in 2015), the net income or loss of the Company after the initial public offering is taxable to the Company and reflected in the accompanying consolidated financial statements. The Company performs an evaluation of the realizability of its deferred tax assets on a quarterly basis. The Company considers all positive and negative evidence available in determining the potential of realizing deferred tax assets, including the scheduled reversal of temporary differences, recent and projected future taxable income and prudent and feasible tax planning strategies. The estimates and assumptions used by the Company in computing the income taxes reflected in the accompanying consolidated financial statements could differ from the actual results reflected in the income tax returns filed during the subsequent year. Significant components of the tax benefit recognized in the accompanying consolidated statement of income for the period subsequent to the initial public offering (October 23, 2015 to December 31, 2015) are as follows: Current tax benefit $ 171,007 Federal 9,953 State 180,960 Deferred tax expense (34,405 ) $ 146,555 8. INCOME TAXES (Continued) The reconciliation of the income tax computed at the combined federal and state statutory rate of 37.63% to the income tax benefit is as follows: Benefit on net loss after initial public offering of $166,711 $ 62,733 37.6 % Nondeductible expenses (7,246 ) (4.3 )% Tax benefit of historical carryover basis at contribution of members' interest 91,068 54.6 % Tax benefit/effective rate $ 146,555 87.9 % The significant components of the Company’s deferred tax liabilities and assets as of December 31, 2015 are as follows: Deferred tax liabilities: Tax expense for internally developed software $ 34,280 Tax depreciation in excess of book 7,523 41,803 Deferred tax assets: Step up in basis at contribution to C-Corp 1,826,688 Loss carryforwards 180,960 Step up in basis - purchase of non-controlling interest 102,325 Allowance for credit losses 47,038 Stock option expense 5,369 2,162,380 Net deferred tax asset $ 2,120,577 As discussed above, the Predecessor effected a transaction resulting in the contribution of member interests to the Company (a newly formed C-Corporation). This transaction was recorded at the carryover basis of the Predecessor for both tax and financial reporting purposes. In accordance with ASC 740-10-45-19, Income Taxes

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Stockholders' Equity	Note 9. Stockholders’ Equity Initial Public Offering In October 2015, LMFA closed its initial public offering of 1,200,000 units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock, at a public offering price of $10.00 per unit. The units were listed on the Nasdaq Capital Market under the symbol “LMFAU” and commenced trading on October 23, 2015. The shares of common stock and warrants comprising the units began trading separately on December 8, 2015, and the units ceased trading on December 7, 2015. Shares of LM Funding America, Inc. common stock trade on the Nasdaq Capital Market under the symbol “LMFA” and the warrants trade on the Nasdaq Capital Market under the symbol “LMFAW”. The Company received aggregate proceeds from the offering of $12,000,000 and incurred costs related to the offering of approximately $2,312,000. Net proceeds of approximately $9,688,000 were credited to additional paid-in capital. Immediately prior to the offering, the members of the Predecessor contributed all of their membership interests to the Company and their related member account balances totaling a deficit of approximately $5,257,000 were closed against additional paid-in capital. The former members of the Predecessor recognized taxable gains associated with both deficit capital accounts and redemption transactions noted below resulting in a step up in income tax basis for assets of the Predecessor and favorable tax benefits to the Company. The Company recorded a deferred tax asset related to the tax effect of these transactions with or among shareholders of approximately $1,974,000 with a corresponding increase to additional paid-in of capital in accordance with ASC 740-20-45-11, Income Taxes 9. SHAREHOLDERS’ EQUITY Minority Interest Purchase Effective November 1, 2015, LM Funding America, Inc. purchased for $250,000 the outstanding 5% ownership in its subsidiary LMF SPE #2 held by CRE Funding, LLC. Under the terms of the agreement, the tax consequences of the transaction are retroactive to December 31, 2014. Redemption of Membership Interest In January 2015, the Company and another related party entity redeemed the membership interests in LM Funding, LLC beneficially owned by one of its co-founders, Frank C. Silcox, for an aggregate redemption price of $2,000,000 ($1,960,000 paid by the Company). The redemption was recorded as a reduction in capital. The redemption of allowed management and the members of LM Funding, LLC to have more flexibility to execute its business strategy. Stock Options The 2015 Omnibus Incentive Plan provides for the issuance of stock options, stock appreciation rights, performance shares, performance units, restricted stock, restricted stock units, shares of our common stock, dividend equivalent units, incentive cash awards or other awards based on our common stock. Awards may be granted alone or in addition to, in tandem with, or (subject to the 2015 Omnibus Incentive Plan’s prohibitions on repricing) in substitution for any other award (or any other award granted under another plan of ours or of any of our affiliates). On October 22, 2015 the Company granted to the President of the Company pursuant to his employment contract 94,500 stock options with an exercise price of $10.00. These stock options vest evenly over a three year period. The maximum term of an option is 10 years from the date of grant. The Black-Scholes pricing model was used to determine the fair value of the stock options granted by the Company. The Company recognizes this value as an expense over the period in which the stock options vest. The grant date fair value of the options granted was $2.36. The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options that have no vesting restrictions. The model requires the use of subjective assumptions. Expected volatility was based on historical volatility of another public company similar operating similar businesses and market share as the Company. The expected life (in years) was determined using historical data to estimate options exercise patterns. The Company does not expect to pay any dividends for the foreseeable future thus zero was in the calculation. The risk free interest rate was based on the rate for US Treasury bonds commensurate with the expected term of the granted options. Significant assumptions used in the option-pricing model to fair value options granted were as follows: 2015 Risk-free rate 1.93 % Expected life 6 years Expected volatility 25.00 % Expected dividend — 9. STOCKHOLDERS’ EQUITY The following is a summary of the stock option plan activity during 2015 and 2014: Number of Weighted Average Options Exercise Price Options Outstanding at December 31, 2014 — $ — Granted 94,500 10.00 Exercised — — Forfeited — — Options Outstanding at December 31, 2015 94,500 $ 10.00 Options Exercisable at December 31, 2015 6,038 $ 10.00

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2015
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 are performed by a law firm (Business Law Group “BLG”) which was owned solely by Bruce M. Rodgers, the Chief Executive Officer of LMFA until through the date of the initial public offering. The law firm performs collection work 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. Effective January 1, 2015 the Company entered into a new related party agreement with this law firm regarding the allocation of proceeds related to collection costs. Under the previous agreement, all cash collected from third parties related to collection costs (lien filing fees, process and serve costs) were allocated to the related party law firm. Under the new agreement, any recovery of these collection costs are accounted for as a reduction in expense incurred by the Company. The Company incurred expenses related to these types of costs of $506,000 and $716,000, during 2015 and 2014, respectively. Amounts collected from property owners and paid to BLG for 2015 and 2014 were approximately $1,581,000 and $2,296,000, respectively. Legal fees charged to the Company by BLG in excess of amounts collected from property owners during 2015 were approximately $95,000. There were no legal fees charged to the Company by BLG in excess of amounts collected from property owners during 2014. As of December 31, 2015 and 2014, receivables from property owners for charges ultimately payable to BLG approximate $5,649,000 and $6,605,000, respectively. The Company also shares office space and related common expenses with BLG. All shared expenses, including rent, are charged to the legal firm based on an estimate of actual usage. Any expenses of BLG paid by the Company that have not been reimbursed or settled against other amounts are reflected as due from related parties in the accompanying balance sheet. Amounts receivable from BLG as of December 31, 2015 and 2014 were approximately $406,000 and $464,000, respectively. After the change in ownership discussed below, u pon the occurrence of a triggering even wherein BLG received no payment from the delinquent unit owner, the Company pays BLG $700. For the period, the Company incurred 113 cases where no payment was received by BLG and the Company incurred expense of $79,100. The Company also began paying BLG $7,000 per month following the change in ownership. On October 23, 2015 our Chairman and Chief Executive Officer, Bruce M. Rodgers, transferred his interest in BLG to other attorneys at the firm through a redemption of his interest in the firm, and BLG is now under control of those lawyers. This enables Mr. Rodgers to work full-time for the Company and to focus his efforts exclusively on implementing our business strategy.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 11. Fair Value of Financial Instruments The Company estimates that the fair value of its financial assets and liabilities approximate carrying value except for its finance receivables. FASB ASC 820, Fair Value Measurements and Disclosures defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to classify its fair value estimates based on the “Level” of reliability of data inputs used in those estimates. Under this guidance, financial instruments are categorized within the fair value hierarchy as follows: Level 1 inputs – Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be assessed at the measurement date. Level 2 inputs – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs – Unobservable inputs significant to the fair value estimate that are supported by little or no market pricing and are based on the Company’s estimates and assumptions that presumably market participants would use. The Company considers the data inputs used to estimate the fair value of its finance receivables to fall within Level 3 of the fair value hierarchy. Fair value measurements as noted below are based on the income approach using a discount rate of 9.10% and 6.25% for finance receivables at December 31, 2015 and 2014, respectively. The recovery period as of both dates was assumed to be 8.5 years. The carrying amount and estimated fair value of finance receivables at December 31 are as follows: 2015 2014 Carrying Fair Carrying Fair Amount Value Amount Value Finance receivables: Original product $ 1,537,101 $ 8,695,000 $ 2,430,456 $ 15,415,000 Special product, net of allowance (1) 715,534 1,460,000 1,042,805 1,290,000 (1) For New Neighbor Guaranty program

Reconciliation of Net Income to

Reconciliation of Net Income to Cash Provided by Operating Activities	12 Months Ended
	Dec. 31, 2015
Reconciliation Of Net Income To Cash Provided By Operating Activities [Abstract]
Reconciliation of Net Income to Cash Provided by Operating Activities	Note 12. Reconciliation of Net Income To Cash Provided By Operating Activities 2015 2014 Net income $ 1,731,777 $ 2,382,464 Adjustments to reconcile net income to cash provided by operating activities Non-controlling interest 139,865 163,869 Depreciation and amortization 247,646 152,668 Decrease (increase) in prepaid expenses and other assets 159,326 (148,266 ) Increase (decrease) in accounts payable and accrued expenses 122,062 (18,357 ) Decrease in deferred revenue - origination fees (10,226 ) (59,745 ) Decrease in accrued interest payable — (95,608 ) Increase (decrease) in other liabilities and obligations 6,344 45,545 Income tax benefit (146,555 ) — $ 2,250,239 $ 2,422,570

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 13. Subsequent Events Stock options granted in 2016 On January 4, 2016 the Company granted a total of 84,600 stock options to our employees at an exercise price of $12.50 per share. These awards will vest evenly over a three year period. The maximum term of an option is 10 years from the date of grant On January 4, 2016 the company granted a total of 37,904 stock options to consultants of the company at an exercise prices of $12.50 per share. These awards vest immediately upon acceptance of agreement. The maximum term of an option is 10 years from the date of grant On January 4, 2016 the Company granted a total of 25,000 stock options to non-employee directors at an exercise price of $10.00 per share. These awards will vest evenly over a three year period. The maximum term of an option is 10 years from the date of grant Significant assumptions used in the option-pricing model to fair value the above option agreements were as follows: Employees Consultants Board of Directors Risk-free rate 1.90 % 1.73 % 1.90 % Expected life 6 years 5 years 6 years Expected volatility 25.13 % 20.61 % 25.13 % Expected dividend — — — Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On January 4, 2016 (the “Effective Date”), the Company entered into employment agreements (each individually, an “Employment Agreement” and collectively, the “Employment Agreements”) with Steve Weclew (“Mr. Weclew”), the Company’s Chief Financial Officer, and Aaron L. Gordon (“Mr. Gordon”), the Company’s Secretary and General Counsel. Mr. Weclew’s Employment Agreement Under the terms of the Employment Agreement between the Company and Mr. Weclew, Mr. Weclew will serve as Chief Financial Officer of the Company for a term of one year. The term of the Employment Agreement will be automatically renewed each successive year unless Mr. Weclew or the Company provides written notice of termination. Mr. Weclew is to receive a base salary of $200,000 per year, subject to possible merit increases beginning in 2017. In addition, Mr. Weclew is eligible to receive an annual bonus and long term incentive awards as determined by the Company’s Board of Directors and is eligible to participate in any equity incentive plan, stock option plan, or similar plan adopted by the Company. On the Effective Date, Mr. Weclew also received stock options to purchase 25,600 shares of the Company’s common stock under the Company’s 2015 Omnibus Incentive Plan (“Plan”) at a price equal to $12.50 per share. These stock options vest over a three year period in equal annual installments beginning on the one year anniversary of the Effective Date. Additional grants under the Plan may be made to Mr. Weclew based upon an evaluation of his performance by the Company’s Board of Directors. If the Company terminates Mr. Weclew’s employment “without cause” or Mr. Weclew resigns “for good reason” during the term of his Employment Agreement, Mr. Weclew will be entitled to receive his accrued salary and accrued bonus, as well as cash in an amount equal to his salary in equal installments over a 12 month period, subject to certain set-offs for amounts earned in substantially similar full-time employment. As a condition to receiving such accrued bonus amounts and severance payments, Mr. Weclew must execute, deliver, and not revoke a general release in favor of the Company. In addition, all unvested restricted shares, options and warrants granted during the term of the Employment Agreement will become fully vested and non-forfeitable. If Mr. Weclew’s employment terminates during the term of the Employment Agreement due to death or disability, Mr. Weclew or his beneficiaries will be entitled to receive his accrued salary and accrued bonus and all unvested restricted shares, options and warrants granted during the term of the Employment Agreement will become fully vested and non-forfeitable. If Mr. Weclew’s employment terminates “for cause” or Mr. Weclew resigns “without good reason” during the term of the Employment Agreement, Mr. Weclew will be entitled to receive his accrued salary. The Employment Agreement includes non-competition and non-solicitation covenants that will be in effect while Mr. Weclew is employed by the Company and for the two year period following the termination of his employment. 13. SUBSEQUENT EVENTS (Continued) Mr. Gordon’s Employment Agreement Under the terms of the Employment Agreement between the Company and Mr. Gordon, Mr. Gordon will serve as Secretary and General Counsel of the Company for a term of one year. The term of the Employment Agreement will be automatically renewed each successive year unless Mr. Gordon or the Company provides written notice of termination. Mr. Gordon is to receive a base salary of $125,000 per year, subject to possible merit increases beginning in 2017, as well as an automobile and cellular phone allowance of $600 per month. In addition, Mr. Gordon is eligible to receive an annual bonus and long term incentive awards as determined by the Company’s Board of Directors and is eligible to participate in any equity incentive plan, stock option plan, or similar plan adopted by the Company. On the Effective Date, Mr. Gordon also received stock options to purchase 17,600 shares of the Company’s common stock under the Plan at a price equal to $12.50 per share. These stock options vest over a three year period in equal annual installments beginning on the one year anniversary of the Effective Date. Additional grants under the Plan may be made to Mr. Gordon based upon an evaluation of his performance by the Company’s Board of Directors. If the Company terminates Mr. Gordon’s employment “without cause” or Mr. Gordon resigns “for good reason” during the term of his Employment Agreement, Mr. Gordon will be entitled to receive his accrued salary and accrued bonus, as well as cash in an amount equal to his salary in equal installments over a 12 month period, subject to certain set-offs for amounts earned in substantially similar full-time employment. As a condition to receiving such accrued bonus amounts and severance payments, Mr. Gordon must execute, deliver, and not revoke a general release in favor of the Company. In addition, all unvested restricted shares, options and warrants granted during the term of the Employment Agreement will become fully vested and non-forfeitable. If Mr. Gordon’s employment terminates during the term of the Employment Agreement due to death or disability, Mr. Gordon or his beneficiaries will be entitled to receive his accrued salary and accrued bonus and all unvested restricted shares, options and warrants granted during the term of the Employment Agreement will become fully vested and non-forfeitable. If Mr. Gordon’s employment terminates “for cause” or Mr. Gordon resigns “without good reason” during the term of the Employment Agreement, Mr. Gordon will be entitled to receive his accrued salary. The Employment Agreement includes non-competition and non-solicitation covenants that will be in effect while Mr. Gordon is employed by the Company and for the two year period following the termination of his employment. The foregoing is only a brief description of the material terms of the Employment Agreements, does not purport to be a complete description of the Employment Agreements, and is qualified in its entirety by reference to the Employment Agreements, which are filed as Exhibits 10.1 and 10.2 to this Current Report on Form 8-K and are incorporated herein by reference. AmTrust Policy To protect any amount invested by us in excess of the Super Lien Amount, we purchased insurance from an affiliate of AmTrust North America, or AmTrust, covering all assessments lost during the term of coverage due to a first mortgage foreclosure resulting in a Super Lien Amount payoff, less a deductible equal to six months of assessments. Effective January 28, 2016 the AmTrust insurance policy was non-renewed. All existing units which have had a triggering event as of the non-renewal date will be insured through November 30th, 2016. Any new units acquired subsequent to the non-renewal date will not be covered under this policy. Management believes this will not have an adverse impact on expenses as historically the company was paying more in insurance premiums compared with insurance claims. Florida Office of Financial Regulation As a result of the Florida’s Office of Financial Regulation’s (“OFR”) examination of LM Funding, LLC, we have agreed to become licensed as a consumer debt collector.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations LM Funding America, Inc. (“LMFA” or the “Company”) was formed as a Delaware corporation on April 20, 2015. LMFA was formed for the purposes of completing a public offering and related transactions in order to carry on the business of LM Funding, LLC and its subsidiaries (the “Predecessor”). LMFA is the sole member of LM Funding, LLC and operates and controls all of its businesses and affairs. LM Funding, LLC is a Florida Limited Liability Company organized during January 2008 and under the terms of the Operating Agreement effective January 8, 2008 (“Operating Agreement”) as amended, had two members: BRR Holding, LLC and CGR 63, LLC. The members contributed their equity interest to LMFA prior to the closing of its initial public offering. The Company is a specialty finance company that provides funding principally to community associations, almost exclusively located in Florida. The business of the Company is conducted pursuant to relevant state statutes (“Statutes”) principally Florida Statute 718.116. The Statutes provide each community association lien rights to secure payment from unit owners (property owners) for assessments, interest, administrative late fees, reasonable attorney’s fees, and collection costs. In addition, the lien rights granted under the Statutes are given a higher priority (a “Super Lien”) than all other lien holders except property tax liens. The Company provides funding to associations for their delinquent assessments from property owners in exchange for an assignment of the association’s right to proceeds collected pursuant to the Statutes. The Company derives its revenues from the proceeds of association collections. The Statutes specify that the rate of interest an association (or its assignor) may charge on delinquent assessments is equal to the rate set forth in the association’s declaration or bylaws. If a rate is not specified, the statutory rate is equal to 18% but may not exceed the maximum rate allowed by law. The Statutes also stipulate that administrative late fees cannot be charged on delinquent assessments unless so provided by the association’s declaration or bylaws and may not exceed the greater of $25 or 5% of each delinquent assessment. The Statutes limit the liability of a first mortgage holder for unpaid assessments and related charges and fees (as set forth above) in the event of title transfer by foreclosure or acceptance of deed in lieu of foreclosure. This liability is limited to the lesser of twelve months of regular periodic assessments or one percent of the original mortgage debt on the unit (the “Super Lien Amount”). Effective November 1, 2015, LMFA purchased for $250,000 the outstanding 5% ownership in its subsidiary LMF SPE, #2, LLC held by CRE Funding, LLC. Under terms of the agreement, the tax consequences of the transaction are retroactive to December 31, 2014.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of LM Funding America, Inc. and its wholly-owned subsidiaries: LM Funding, LLC, LMF October 2010 Fund, LLC; REO Management Holdings, LLC; LM Funding of Colorado, LLC; LM Funding of Washington, LLC; and LMF SPE #2, LLC. All significant intercompany balances have been eliminated in consolidation.
Basis of Presentation	Basis of Presentation The consolidated financial statements have been prepared by the Company, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The Company prepares its consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”).
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. Significant estimates include the evaluation of any probable losses on amounts funded under the Company’s New Neighbor Guaranty
Revenue Recognition	Revenue Recognition Accounting Standards Codification (“ASC”) 605-10-25-1 of the Financial Accounting Standards Board (“FASB”) states revenues are realized or realizable when related assets received or held are readily convertible into known amounts of cash. In those cases where there is no reasonable basis for estimating the “known amount” of cash to be collected, the cash basis or cost recovery method of recognizing revenues may be used. 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 has determined that the known amount of cash to be realized or realizable on its revenue generating activities cannot be reasonably estimated and as such, classifies its finance receivables as nonaccrual and recognizes revenues in the accompanying consolidated statements of income on the cash basis or cost recovery method in accordance with ASC 310-10, . 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 community 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 where 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 community 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.
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.
Financing Receivables	Finance Receivables Finance receivables are recorded at the amount funded or cost (by unit). The Company evaluates its finance receivables at each period end for losses that are considered probable and can be reasonably estimated in accordance with ASC 450-20. As discussed above, recoverability of funded amounts under the Company’s original product is generally assured because of the protection of the Super Lien Amount. As such, the Company did not have any allowance for credit losses related to its original product at December 31, 2015 and 2014. Under the New Neighbor Guaranty Note 1. Summary of Significant Accounting Policies (Continued) The Company estimated an allowance for credit losses of $125,000 as of December 31, 2015 under ASC 450-20 related to its New Neighbor Guaranty program. See note 4. The Company did not have any significant receivable balances at December 31, 2014 that met the criteria of ASC 450-20 and as such, did not have an allowance for credit losses for the New Neighbor Guaranty program at that date. The Company will charge any receivable against the allowance for credit losses when management believes the uncollectibility of the receivable is confirmed. The Company considers writing off a receivable when (i) a first mortgage holder who names the association in a foreclosure suit takes title and satisfies an estoppel letter for amounts owed which are less than amounts the Company funded to the association; (ii) a tax deed is issued with insufficient excess proceeds to pay amounts the Company funded to the association; or (iii) an association settles an account for less than amounts the Company funded to the association. Upon the occurrence of any of these events, the Company evaluates the potential recovery via a deficiency judgment against the prior owner and the ability to collect upon the deficiency judgment within the 20 year statute of limitations period or whether the deficiency judgment can be sold. Additionally, with New Neighbor Guaranty
Real Estate Assets Owned	Real Estate Assets Owned In the event collection of a delinquent assessment results in a unit being sold in a foreclosure auction, the Company has the right to bid (on behalf of the community association) for the delinquent unit as attorney in fact, applying any amounts owed for the delinquent assessment to the foreclosure price as well as any additional funds that the Company, in its sole discretion, decides to pay. If a delinquent unit becomes owned by the community association by acquiring title through an association lien foreclosure auction, by accepting a deed-in-lieu of foreclosure, or by any other way, the Company in its sole discretion may direct the community association to quitclaim title of the unit to the Company. Properties quitclaimed to the Company are in most cases acquired subject to a first mortgage or other liens, and are recognized in the accompanying consolidated balance sheets solely at costs incurred by the Company in excess of original funding. At times, the Company will acquire properties through foreclosure actions free and clear of any mortgages or liens. In these cases, the Company records the estimated fair value of the properties in accordance with ASC 820-10, Fair Value Measurements If the Company elects to take a quitclaim title to a unit or property held for sale, the Company is responsible to pay all future assessments on a current basis, until a change of ownership occurs. The community association must allow the Company to lease or sell the unit to satisfy obligations for delinquent assessments of the original debt. All proceeds collected from any sale of the unit shall be first applied to all amounts due the Company plus any additional funds paid by the Company to purchase the unit, if applicable. Rental revenues and sales proceeds related to real estate assets held for sale are recognized when earned and realizable. Expenditures for current assessments owed to associations, repairs and maintenance, utilities, etc. are expensed when incurred. If the community association elects (prior to the Company obtaining title through its own election) to maintain ownership and not quitclaim title to the Company, the community association must pay the Company all interest, late fees, collection costs and legal fees expended, plus the original funding on the unit, which have accrued according to the purchase agreement entered into by the community association and the Company. In this event, the unit will be reassigned to the community association.
Fixed Assets	Fixed Assets The Company capitalizes all acquisitions of fixed assets in excess of $500. Fixed assets are stated at cost. Depreciation is provided on the straight-line method over the estimated useful lives of the assets. Fixed assets are comprised of furniture, computer and office equipment with an assigned useful life of 3 to 5 years. Fixed assets also includes capitalized software costs. Capitalized software costs include costs to develop software to be used solely to meet the Company’s internal needs, consist of employee salaries and benefits and fees paid to outside consultants during the application development stage, and are amortized over their estimated useful life of 5 years. As of December 31, 2015 and December 31, 2014, capitalized software costs, net of accumulated amortization, was $91,729 and $114,988, respectively. Amortization expense for capitalized software costs for the periods ended December 31, 2015 and December 31, 2014 was $23,259 and $1,308, respectively.
Debt Issue Costs	Debt Issue Costs The Company capitalizes all debt issue costs and amortizes them on a method that approximates the effective interest method over the remaining term of the note payable. Debt issue costs were $197,959 at December 31, 2015 and $290,688 at December 31, 2014. In connection with refinancing certain debt of the Company in 2015, the Company wrote off debt issue costs of approximately $71,000.
Settlement Costs with Associations	Settlement Costs with Associations Community associations working with the Company will at times incur costs in connection with litigation initiated by the Company against property owners and or mortgage holders. These costs include settlement agreements whereby the community association agrees to pay some monetary compensation to the opposing party or judgments against the community associations for fees of opposing legal counsel or other damages awarded by the courts. The Company indemnifies the community association for these costs pursuant to the provisions of the agreement between the Company and the community association. Costs incurred by the Company for these indemnification obligations for the year ended December 31, 2015 and 2014 were $805,180 and $373,422, respectively. The Company does not limit its indemnification based on amounts ultimately collected from property owners.
Income Taxes	Income Taxes Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist of taxes currently due plus deferred taxes resulting primarily from the tax effects of temporary differences between financial and income tax reporting. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Prior to the initial public offering in October 2015, the taxable earnings of the Predecessor were included in the tax returns of its members (separate limited liability companies) and taxed depending on personal tax situations. In connection with the initial public offering, the members contributed ownership interests to the Company (a newly form C-Corporation) and all earnings subsequent to that date (October 23, 2015) are subject to taxes and reflected in the Company’s consolidated financial statements.
Loss Per Share	Loss Per Share Basic loss per share is calculated as net loss to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted loss per share for the period equals basic loss per share as the effect of any stock based compensation awards or stock warrants would be anti-dilutive.
Stock-Based Compensation	Stock-Based Compensation The Company records all equity-based incentive grants to employees and non-employee members of the Company’s Board of Directors in operating expenses in the Company’s Consolidated Statement of Income based on their fair values determined on the date of grant. Stock-based compensation expense, reduced for estimated forfeitures, is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the outstanding equity awards.
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.
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. The Company engages a third party valuation firm to assist in estimating the fair value of its finance receivables. See Note 11.
Risks And Uncertainties	Risks and Uncertainties Funding amounts are secured by a priority lien position provided under Florida law (see discussion above regarding Florida Statute 718.116). However, in the event the first mortgage holder takes title to the property, the amount payable by the mortgagee to satisfy the priority lien is capped under this same statute and would generally only be sufficient to reimburse the Company for funding amounts noted above for delinquent assessments. Amounts paid by the mortgagee would not generally reimburse the Company for interest, administrative late fees and collection costs. Even though the Company does not recognize these charges as revenues until collected, its business model and long-term viability is dependent on its ability to collect these charges. In the event a delinquent unit owner files for bankruptcy protection, the Company may at its option be reimbursed by the association for the amounts funded (i.e., purchase price) and all collection rights are re-assigned to the association.
New Accounting Pronouncements	New Accounting Pronouncements Revenue Recognition - On May 28, 2014, the Financial Accounting Standards Board issued ASU 2014-09— which provided new accounting guidance regarding revenue recognition, and is effective for annual periods beginning after December 15, 2017. The Company has not yet evaluated the impact of this new guidance on its consolidated financial statements. Debt Issue Costs - In April 2015, FASB issued ASU 2015-03, (“ASU 2015-03”). The amended guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected by the amendments in this ASU. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015.
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through the date which the consolidated financial statements were issued. Other than events described in Note 13, there were no material subsequent events that required recognition in these consolidated financial statements.

Finance Receivables - Origina21

Finance Receivables - Original Product (Tables)	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Schedule of Finance Receivables for Original Product	Finance receivables for the original product as of December 31, based on the year of funding are approximately as follows: 2015 2014 Funded during the current year $ 94,000 $ 221,000 1-2 years outstanding 87,000 348,000 2-3 years outstanding 193,000 667,000 3-4 years outstanding 390,000 733,000 Greater than 4 years outstanding 773,000 462,000 $ 1,537,000 $ 2,431,000 Number of active units with delinquent assessments 1,983 2,950 Amount of outstanding interest and late fees on active units $ 21,000,000 $ 23,500,000

Finance Receivables - Special22

Finance Receivables - Special Product (New Neighbor Guaranty program) (Tables)	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Schedule of Delinquent Assessments and Accrued Charges	Delinquent assessments and accrued charges under these arrangements as of December 31, are as follows: 2015 2014 Delinquent assessments $ 2,018,000 $ 3,089,000 Accrued interest and late fees 1,088,000 2,004,000

Long-Term Debt and Other Fina23

Long-Term Debt and Other Financing Arrangements (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of Debt	Year ended December 31, 2015 2014 Financing agreement with FlatIron capital. Down payment of $16,500 was required upfront and equal installment payments of $9,610 to be made over a 10 month period. Annualized interest is 5.25% $ 48,050 $ — Promissory note issued to a financial institution, bearing interest at 8%, interest payable monthly and principal payments due quarterly. Secured by all of the Company’s rights, title, interest, claims and demands associated with certain condominium units held in LMF SPE #2, LLC and all cash held in LMF SPE #2, LLC. Accrued but unpaid interest is due monthly beginning January 29, 2015. Installment of principal and interest are due quarterly. Note matures on December 30, 2017 and can be prepaid at any time without penalty. 6,241,555 7,431,938 Promissory note issued to a financial institution, bearing interest at 6%, principal of $55,555 per month plus interest due through maturity on February 1, 2018. This loan is collateralized by all of the accounts receivable, contract rights and lien rights arising from or relating to collection of Association payments made by the Company relating to certain Accounts as well as all deposit accounts and cash of LMF October 2010 Fund, LLC. LM Funding, LLC and its members guaranteed this loan. 1,440,000 — $ 7,729,605 $ 7,431,938
Schedule of Principal Payments of Debt	Minimum required principal payments on the Company’s debt as of December 31, 2015 are as follows : Years Ending December 31, 2016 $ 2,469,331 2017 5,260,274 $ 7,729,605

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payment Due	Future minimum lease payments due under this lease as of December 31, 2015 are as follows: Years Ending December 31, 2016 $ 343,000 2017 354,000 2018 364,000 2019 216,000 $ 1,277,000

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Components of Provision for Income Taxes	Significant components of the tax benefit recognized in the accompanying consolidated statement of income for the period subsequent to the initial public offering (October 23, 2015 to December 31, 2015) are as follows: Current tax benefit $ 171,007 Federal 9,953 State 180,960 Deferred tax expense (34,405 ) $ 146,555
Schedule of Reconciliation of Tax Provision with Expected Provision	8. INCOME TAXES (Continued) The reconciliation of the income tax computed at the combined federal and state statutory rate of 37.63% to the income tax benefit is as follows: Benefit on net loss after initial public offering of $166,711 $ 62,733 37.6 % Nondeductible expenses (7,246 ) (4.3 )% Tax benefit of historical carryover basis at contribution of members' interest 91,068 54.6 % Tax benefit/effective rate $ 146,555 87.9 %
Components of Deferred Tax Assets and Liabilities	The significant components of the Company’s deferred tax liabilities and assets as of December 31, 2015 are as follows: Deferred tax liabilities: Tax expense for internally developed software $ 34,280 Tax depreciation in excess of book 7,523 41,803 Deferred tax assets: Step up in basis at contribution to C-Corp 1,826,688 Loss carryforwards 180,960 Step up in basis - purchase of non-controlling interest 102,325 Allowance for credit losses 47,038 Stock option expense 5,369 2,162,380 Net deferred tax asset $ 2,120,577

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Schedule of Significant Assumptions Used in Option-pricing Model to Fair Value Options Granted	Significant assumptions used in the option-pricing model to fair value options granted were as follows: 2015 Risk-free rate 1.93 % Expected life 6 years Expected volatility 25.00 % Expected dividend —
Summary of Stock Option Plan Activity	The following is a summary of the stock option plan activity during 2015 and 2014: Number of Weighted Average Options Exercise Price Options Outstanding at December 31, 2014 — $ — Granted 94,500 10.00 Exercised — — Forfeited — — Options Outstanding at December 31, 2015 94,500 $ 10.00 Options Exercisable at December 31, 2015 6,038 $ 10.00

Fair Value of Financial Instr27

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Schedule of Carrying Amount and Estimated Fair Value of Finance Receivables	The carrying amount and estimated fair value of finance receivables at December 31 are as follows: 2015 2014 Carrying Fair Carrying Fair Amount Value Amount Value Finance receivables: Original product $ 1,537,101 $ 8,695,000 $ 2,430,456 $ 15,415,000 Special product, net of allowance (1) 715,534 1,460,000 1,042,805 1,290,000 (1) For New Neighbor Guaranty program

Reconciliation of Net Income 28

Reconciliation of Net Income to Cash Provided by Operating Activities (Tables)	12 Months Ended
	Dec. 31, 2015
Reconciliation Of Net Income To Cash Provided By Operating Activities [Abstract]
Schedule of Reconciliation of Net Income to Cash Provided by Operating Activities	2015 2014 Net income $ 1,731,777 $ 2,382,464 Adjustments to reconcile net income to cash provided by operating activities Non-controlling interest 139,865 163,869 Depreciation and amortization 247,646 152,668 Decrease (increase) in prepaid expenses and other assets 159,326 (148,266 ) Increase (decrease) in accounts payable and accrued expenses 122,062 (18,357 ) Decrease in deferred revenue - origination fees (10,226 ) (59,745 ) Decrease in accrued interest payable — (95,608 ) Increase (decrease) in other liabilities and obligations 6,344 45,545 Income tax benefit (146,555 ) — $ 2,250,239 $ 2,422,570

Subsequent Events (Tables)

Subsequent Events (Tables)	12 Months Ended
	Dec. 31, 2015
Schedule of Significant Assumptions Used in Option-pricing Model to Fair Value Options Granted	Significant assumptions used in the option-pricing model to fair value options granted were as follows: 2015 Risk-free rate 1.93 % Expected life 6 years Expected volatility 25.00 % Expected dividend —
Stock Options Granted in 2016 [Member]
Schedule of Significant Assumptions Used in Option-pricing Model to Fair Value Options Granted	Significant assumptions used in the option-pricing model to fair value the above option agreements were as follows: Employees Consultants Board of Directors Risk-free rate 1.90 % 1.73 % 1.90 % Expected life 6 years 5 years 6 years Expected volatility 25.13 % 20.61 % 25.13 % Expected dividend — — —

Summary of Significant Accoun30

Summary of Significant Accounting Policies - Additional information (Detail)	Nov. 01, 2015USD ($)	Dec. 31, 2015USD ($)Ownership	Dec. 31, 2014USD ($)
Summary Of Significant Accounting Policies [Line Items]
Allowance for credit losses		$ 125,000	$ 0
Debt issue costs, net		$ 197,959	$ 290,688
Special Product [Member]
Summary Of Significant Accounting Policies [Line Items]
Delinquent assessments maximum due period purchases basis		48 months
Subsidiaries
Summary Of Significant Accounting Policies [Line Items]
Number of members | Ownership		2
Maximum statutory delinquent assessments rate			18.00%
Maximum administrative late fees			$ 25
Percentage of maximum administrative late fees on delinquent assessment			5.00%
Credit insurance purchases basis on delinquent assessments period		6 months	6 months
Recoveries under credit insurance program		$ 236,000	$ 81,000
Maximum potential recovery period from statute of limitations period		20 years
Minimum acquisition cost that requires capitalization to fixed assets		$ 500
Capitalized software costs, net of accumulated amortization		91,729	114,988
Amortization expense for capitalized software costs		23,259	1,308
Debt issue costs, net		197,959	290,688
Wrote off debt issue costs		71,000
Settlement costs with associations		$ 805,180	$ 373,422
Subsidiaries | Furniture [Member] | Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives		3 years
Subsidiaries | Furniture [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives		5 years
Subsidiaries | Computer [Member] | Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives		3 years
Subsidiaries | Computer [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives		5 years
Subsidiaries | Office Equipment [Member] | Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives		3 years
Subsidiaries | Office Equipment [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives		5 years
Subsidiaries | Special Product [Member]
Summary Of Significant Accounting Policies [Line Items]
Delinquent assessments maximum due period purchases basis			48 months
Allowance for credit losses		$ 125,000
Subsidiaries | Original Product [Member]
Summary Of Significant Accounting Policies [Line Items]
Allowance for credit losses		$ 0	$ 0
Subsidiaries | CRE Funding LLC [Member]
Summary Of Significant Accounting Policies [Line Items]
Purchase amount of minority interest	$ 250,000
Percentage held by minority interest	5.00%

Finance Receivables - Origina31

Finance Receivables - Original Product - Schedule of Finance Receivables for Original Product (Detail) - Original Product [Member]	12 Months Ended
	Dec. 31, 2015USD ($)Unit	Dec. 31, 2014USD ($)Unit
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	$ 1,537,000	$ 2,431,000
Number of active units with delinquent assessments | Unit	1,983	2,950
Amount of outstanding interest and late fees on active units	$ 21,000,000	$ 23,500,000
Funded During The Current Year [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	94,000	221,000
1-2 Years Outstanding [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	87,000	348,000
2-3 Years Outstanding [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	193,000	667,000
3-4 Years Outstanding [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	390,000	733,000
Greater Than 4 Years Outstanding [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	$ 773,000	$ 462,000

Finance Receivables - Special32

Finance Receivables - Special Product (New Neighbor Guaranty program) - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015USD ($)UnitAssociation	Dec. 31, 2014USD ($)UnitAssociation
Accounts Notes And Loans Receivable [Line Items]
Recoveries on collection of assessments in excess of cost	$ 345,686	$ 136,655
Special Product [Member]
Accounts Notes And Loans Receivable [Line Items]
Delinquent assessments maximum due period purchases basis	48 months
Maximum future contingent payments	$ 988,000
Finance receivables outstanding	$ 716,000	$ 1,042,805
Number of associations | Association	32	15
Number of units covered | Unit	175	245

Finance Receivables - Special33

Finance Receivables - Special Product (New Neighbor Guaranty program) - Schedule of Delinquent Assessments and Accrued Charges (Detail) - Special Product [Member] - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accounts Notes And Loans Receivable [Line Items]
Delinquent assessments	$ 2,018,000	$ 3,089,000
Accrued interest and late fees	$ 1,088,000	$ 2,004,000

New Neighbor Guaranty (NNG) A34

New Neighbor Guaranty (NNG) Allowance for Credit Losses - Additional Information (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Accounts Notes And Loans Receivable [Line Items]
Allowance for credit losses	$ 125,000	$ 0
New Neighbor Guaranty (NNG) [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for credit losses	$ 125,000

Real Estate Assets Owned - Addi

Real Estate Assets Owned - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015USD ($)Property	Dec. 31, 2014USD ($)Property
Real Estate [Abstract]
Real estate assets owned	$ 285,341	$ 42,731
Number of units in real estate assets owned | Property	11	2
Number of units in real estate assets owned capitalized | Property	9
Real estate assets owned capitalized at fair value less cost for disposal	$ 237,000
Real estate portfolio, number of units | Property	43	20
Number of units sold | Property	1	5
Proceeds from sale of units	$ 10,000	$ 156,000
Gain or loss on disposal of real estate assets	0	0
Rental revenue	180,157	126,644
Monthly contingent obligation for assessments due to associations	$ 15,000	$ 7,000

Long-Term Debt and Other Fina36

Long-Term Debt and Other Financing Arrangements - Schedule of Debt (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Notes payable	$ 7,729,605	$ 7,431,938
Financing agreement with FlatIron capital [Member]
Debt Instrument [Line Items]
Notes payable	48,050
Promissory Note One [Member]
Debt Instrument [Line Items]
Notes payable	6,241,555	$ 7,431,938
Promissory Note Two [Member]
Debt Instrument [Line Items]
Notes payable	$ 1,440,000

Long-Term Debt and Other Fina37

Long-Term Debt and Other Financing Arrangements - Schedule of Debt (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2015USD ($)
Financing agreement with FlatIron capital [Member]
Debt Instrument [Line Items]
Down payment for note payable	$ 16,500
Debt instrument, periodic payment	$ 9,610
Debt instrument due period	10 months
Debt instrument, interest rate percentage	5.25%
Promissory Note One [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate percentage	8.00%
Unpaid interest monthly due, start date	Jan. 29, 2015
Debt instrument, maturity date	Dec. 30, 2017
Promissory Note Two [Member]
Debt Instrument [Line Items]
Debt instrument, periodic payment	$ 55,555
Debt instrument, interest rate percentage	6.00%
Debt instrument, maturity date	Feb. 1, 2018

Long-Term Debt and Other Fina38

Long-Term Debt and Other Financing Arrangements - Schedule of Principal Payments of Debt (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Debt Instruments [Abstract]
2,016	$ 2,469,331
2,017	5,260,274
Notes payable	$ 7,729,605	$ 7,431,938

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Commitments And Contingencies Disclosure [Abstract]
Operating lease ending date	Jul. 31, 2019
Operating lease beginning date	Mar. 1, 2014
Rent expense	$ 159,027	$ 152,988

Commitments and Contingencies40

Commitments and Contingencies - Schedule of Future Minimum Lease Payment Due - (Detail)	Dec. 31, 2015USD ($)
Commitments And Contingencies Disclosure [Abstract]
2,016	$ 343,000
2,017	354,000
2,018	364,000
2,019	216,000
Total future minimum lease payments	$ 1,277,000

Income Taxes - Components of Pr

Income Taxes - Components of Provision for Income Taxes(Detail) - USD ($)	2 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015
Current tax benefit
Federal	$ 171,007
State	9,953
Current tax benefit, total	180,960
Deferred tax expense	(34,405)
Income tax benefit	$ 146,555	$ 146,555

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	2 Months Ended	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Operating Loss Carryforwards [Line Items]
Combined federal and state statutory rate	(37.60%)	37.63%
Net deferred tax asset	$ 2,120,577	$ 2,120,577
Predecessor [Member]
Operating Loss Carryforwards [Line Items]
Net deferred tax asset	91,068	91,068
Redemption consideration, taxable gain		5,250,000
Fresh-start adjustment, increase in equity	$ 1,970,000	$ 1,970,000

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation of Tax Provision with Expected Provision (Detail) - USD ($)	2 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Benefit on net loss after initial public offering of $166,711	$ 62,733
Nondeductible expenses	(7,246)
Tax benefit of historical carryover basis at contribution of members' interest	91,068
Income tax benefit	$ 146,555	$ 146,555
Benefit on net loss after initial public offering of $166,711, percentage	37.60%	(37.63%)
Nondeductible expenses, percentage	(4.30%)
Tax benefit of historical carryover basis at convention, percentage	54.60%
Tax benefit/effective rate, percentage	87.90%

Income Taxes - Components of De

Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail)	Dec. 31, 2015USD ($)
Deferred tax liabilities:
Tax expense for internally developed software	$ 34,280
Tax depreciation in excess of book	7,523
Total deferred tax liabilities	41,803
Deferred tax assets:
Step up in basis at contribution to C-Corp	1,826,688
Loss carryforwards	180,960
Step up in basis - purchase of non-controlling interest	102,325
Allowance for credit losses	47,038
Stock option expense	5,369
Total deferred tax assets	2,162,380
Net deferred tax asset	$ 2,120,577

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail)	Nov. 01, 2015USD ($)	Oct. 22, 2015$ / sharesshares	Oct. 31, 2015USD ($)Unit$ / shares	Jan. 31, 2015USD ($)	Dec. 31, 2015USD ($)$ / sharesshares
Class Of Stock [Line Items]
Proceeds from initial public stock offering, net (See Note 9)					$ 9,688,196
Net proceeds from initial public offering					9,688,196
Deferred tax asset					1,974,022
Redemption of membership interest				$ 2,000,000	$ 1,960,010
Number of options granted | shares					94,500
Weighted average exercise price of options | $ / shares					$ 10
Options granted, grant date fair value | $ / shares					$ 2.36
Recognized compensation expense of stock options					$ 14,000
Remaining unrecognized compensation cost					$ 209,000
Date of recognize for remaining unrecognized compensation cost					Oct. 31, 2018
Stock options remaining life, years					10 years
President [Member]
Class Of Stock [Line Items]
Number of options granted | shares		94,500
Weighted average exercise price of options | $ / shares		$ 10
Vesting period of stock options		3 years
Maximum term of an option from the date of grant		10 years
Subsidiaries | CRE Funding LLC [Member]
Class Of Stock [Line Items]
Purchase amount of minority interest	$ 250,000
Percentage held by minority interest	5.00%
LM Funding America, Inc [Member]
Class Of Stock [Line Items]
Redemption of membership interest				$ 1,960,000
IPO [Member]
Class Of Stock [Line Items]
Number of units closed in initial public offering | Unit			1,200,000
Public offering price | $ / shares			$ 10
Proceeds from initial public stock offering, net (See Note 9)			$ 12,000,000
Costs incurred related to initial public offering			2,312,000
Net proceeds from initial public offering			9,688,000
Close out members' account			5,257,000
Deferred tax asset			$ 1,974,000

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Significant Assumptions Used in Option-pricing Model to Fair Value Options Granted (Detail)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Risk-free rate	1.93%
Expected life	6 years
Expected volatility	25.00%

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock Option Plan Activity (Detail)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Number of Options
Number of Options, Granted | shares	94,500
Number of Options, Outstanding at Ending Balance | shares	94,500
Number of Options, Exercisable | shares	6,038
Weighted Average Exercise Price
Weighted Average Exercise Price, Granted | $ / shares	$ 10
Weighted Average Exercise Price, Outstanding at Ending Balance | $ / shares	10
Weighted Average Exercise Price, Exercisable | $ / shares	$ 10

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail)	2 Months Ended	12 Months Ended
	Dec. 31, 2015USD ($)case	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Related Party Transaction [Line Items]
Cases incurred with no payment | case	113
Subsidiaries
Related Party Transaction [Line Items]
Proceeds from property owners		$ 299,000
Collection from property owners		1,581,000	$ 2,296,000
Business Law Group [Member]
Related Party Transaction [Line Items]
Expenses incurred by company	$ 79,100
Legal fees paid		95,000	0
Receivables from property owners ultimately payable to law firm	5,649,000	5,649,000	6,605,000
Receivables from property owners	406,000	406,000	464,000
Payment upon triggering event	700	700
Monthly payment for cases	$ 7,000
Business Law Group [Member] | Out of Pocket Collection Costs [Member]
Related Party Transaction [Line Items]
Expenses incurred by company		$ 506,000	$ 716,000

Fair Value of Financial Instr49

Fair Value of Financial Instruments - Additional Information (Detail) - Level 3 [Member]	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value measurement discount rate	9.10%	6.25%
Fair value measurement recovery period	8 years 6 months	8 years 6 months

Fair Value of Financial Instr50

Fair Value of Financial Instruments - Schedule of Carrying Amount and Estimated Fair Value of Finance Receivables (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Finance receivables:
Original product	$ 1,537,101	$ 2,430,456
Special product, net of allowance	715,534	1,042,805
Level 3 [Member] | Carrying Amount [Member]
Finance receivables:
Original product	1,537,101	2,430,456
Special product, net of allowance	715,534	1,042,805
Level 3 [Member] | Fair Value [Member]
Finance receivables:
Original product	8,695,000	15,415,000
Special product, net of allowance	$ 1,460,000	$ 1,290,000

Reconciliation of Net Income 51

Reconciliation of Net Income to Cash Provided by Operating Activities - Schedule of Reconciliation of Net Income to Cash Provided by Operating Activities (Detail) - USD ($)	2 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Reconciliation Of Net Income To Cash Provided By Operating Activities [Abstract]
Net income		$ 1,731,777	$ 2,382,464
Adjustments to reconcile net income to cash provided by operating activities
Non-controlling interest		139,865	163,869
Depreciation and amortization		247,646	152,668
Decrease (increase) in prepaid expenses and other assets		159,326	(148,266)
Increase (decrease) in accounts payable and accrued expenses		122,062	(18,357)
Decrease in deferred revenue - origination fees		(10,226)	(59,745)
Decrease in accrued interest payable			(95,608)
Increase (decrease) in other liabilities and obligations		6,344	45,545
Income tax benefit	$ (146,555)	(146,555)
Net cash provided by operating activities		$ 2,250,239	$ 2,422,570

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($)	Jan. 04, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Number of options granted		94,500
Weighted average exercise price of options		$ 10
Options granted, grant date fair value		$ 2.36
Recognized compensation expense of stock options		$ 14,000
Subsequent Event [Member] | Employees [Member]
Subsequent Event [Line Items]
Number of options granted	84,600
Weighted average exercise price of options	$ 12.50
Vesting period of stock options	3 years
Maximum term of an option from the date of grant	10 years
Options granted, grant date fair value	$ 1.27
Recognized compensation expense of stock options	$ 107,000
Subsequent Event [Member] | Consultants [Member]
Subsequent Event [Line Items]
Number of options granted	37,904
Weighted average exercise price of options	$ 12.50
Maximum term of an option from the date of grant	10 years
Options granted, grant date fair value	$ 0.70
Recognized compensation expense of stock options	$ 26,000
Subsequent Event [Member] | Non-Employee Director [Member]
Subsequent Event [Line Items]
Number of options granted	25,000
Weighted average exercise price of options	$ 10
Vesting period of stock options	3 years
Maximum term of an option from the date of grant	10 years
Options granted, grant date fair value	$ 1.90
Recognized compensation expense of stock options	$ 48,000
Subsequent Event [Member] | Chief Financial Officer [Member]
Subsequent Event [Line Items]
Term of employment agreement	1 year
Base salary	$ 200,000
Number of monthly equal installments of base salary payment	12 months
Term of employment before termination	2 years
Subsequent Event [Member] | Chief Financial Officer [Member] | Omnibus Incentive Plan [Member]
Subsequent Event [Line Items]
Vesting period of stock options	3 years
Stock options issued to purchase common stock	25,600
Purchase price of stock options	$ 12.50
Starting period of equal annual installments of stock options	1 year
Subsequent Event [Member] | Secretary and General Counsel [Member]
Subsequent Event [Line Items]
Vesting period of stock options	3 years
Term of employment agreement	1 year
Base salary	$ 125,000
Stock options issued to purchase common stock	17,600
Purchase price of stock options	$ 12.50
Starting period of equal annual installments of stock options	1 year
Number of monthly equal installments of base salary payment	12 months
Term of employment before termination	2 years
Cellular phone monthly allowance	$ 600

Subsequent Events - Schedule of

Subsequent Events - Schedule of Significant Assumptions Used in Option-pricing Model to Fair Value Options Granted (Detail)	Jan. 04, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Risk-free rate		1.93%
Expected life		6 years
Expected volatility		25.00%
Subsequent Event [Member] | Employees [Member]
Subsequent Event [Line Items]
Risk-free rate	1.90%
Expected life	6 years
Expected volatility	25.13%
Subsequent Event [Member] | Consultants [Member]
Subsequent Event [Line Items]
Risk-free rate	1.73%
Expected life	5 years
Expected volatility	20.61%
Subsequent Event [Member] | Board of Directors [Member]
Subsequent Event [Line Items]
Risk-free rate	1.90%
Expected life	6 years
Expected volatility	25.13%