LM Funding America (LMFA) 10-K 14 Apr 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Apr. 14, 2020	Jun. 30, 2019
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Trading Symbol	LMFA
Entity Registrant Name	LM FUNDING AMERICA, INC.
Entity Central Index Key	0001640384
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	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,320,261
Entity Public Float			$ 2,583,714
Entity Interactive Data Current	Yes
Security Exchange Name	NASDAQ
Title of 12(b) Security	Common Stock par value $0.001 per share
Entity File Number	001-37605
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3844457
Entity Address, Address Line One	1200 Platt Street
Entity Address, Address Line Two	Suite 1000
Entity Address, City or Town	Tampa
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33602
City Area Code	813
Local Phone Number	222-8996
Document Annual Report	true
Document Transition Report	false
Stock Warrants [Member]
Document Information [Line Items]
Trading Symbol	LMFAW
Security Exchange Name	NASDAQ
Title of 12(b) Security	Warrants to Purchase Common Stock

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash	$ 1,069,823	$ 3,520,753
Finance receivables:
Original product (Note 2)	273,711	425,012
Special product - New Neighbor Guaranty program, net of allowance for credit losses of (Note 3)	129,272	237,043
Due from related party (Note 11)	152,783	25,507
Other investments - related party receivable		1,507,375
Prepaid expenses and other assets	147,568	155,420
Current assets	1,773,157	5,871,110
Fixed assets, net	35,533	33,818
Real estate assets owned (Note 5)	21,084	122,604
Operating lease - right of use assets (Note 8)	260,260
Other assets	11,021	32,036
Other investments - related party receivable	1,500,000
Goodwill (Note 6)	4,039,586
Long-term assets	5,867,484	188,458
Total assets	7,640,641	6,059,568
Liabilities and stockholders' equity
Accounts payable and accrued expenses	354,876	188,354
Related party convertible note payable	3,461,782
Notes payable - short-term (Note 7)	170,212	42,875
Tax liability	14,226
Other liabilities and obligations	21,153	19,690
Current liabilities	4,022,249	250,919
Notes payable - long-term (Note 7)	517,584
Operating lease liability (Note 8)	265,883
Long-term liabilities	783,467
Total liabilities	4,805,716	250,919
Stockholders' equity (Note 10)
Common stock, par value $.001; 30,000,000 shares authorized; 3,134,261 and 3,124,961 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively	3,134	3,125
Additional paid-in capital	17,326,553	17,295,408
Accumulated deficit	(14,494,762)	(11,489,884)
Total stockholders' equity	2,834,925	5,808,649
Total liabilities and stockholders’ equity	$ 7,640,641	$ 6,059,568

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	3,134,261	3,124,961
Common stock, shares outstanding	3,134,261	3,124,961

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenues
Interest on delinquent association fees	$ 1,510,237	$ 2,084,287
Administrative and late fees	145,295	230,756
Recoveries in excess of cost - special product	97,361	118,540
Underwriting fees and other revenues	215,068	246,904
Net commission revenue	639,815
Rental revenue	417,612	709,050
Total revenues	3,025,388	3,389,537
Operating expenses
Professional fees	1,872,305	1,331,482
Settlement costs with associations	68,188	40,027
Selling, general and administrative	515,488	323,030
Real estate management and disposal	460,978	627,384
Depreciation and amortization	63,760	68,263
Collection costs	(17,893)	19,025
Recovery of cost from related party receivable	(190,000)
Provision for credit losses	266	581
Impairment of goodwill	1,650,000
Other operating	62,113	17,964
Total operating expenses	5,894,526	3,801,885
Operating loss	(2,869,138)	(412,348)
Gain on disposal of assets	(6,421)
Gain on litigation		(405,000)
Interest expense	142,161	464,811
Total other expenses	135,740	59,811
Loss before income taxes	(3,004,878)	(472,159)
Net loss to common stockholders	$ (3,004,878)	$ (472,159)
Loss per share attributable to the stockholders of LM Funding America, Inc.
Basic	$ (0.96)	$ (0.47)
Diluted	$ (0.96)	$ (0.47)
Weighted average number of common shares outstanding
Basic	3,133,689	996,710
Diluted	3,133,689	996,710
Service [Member]
Operating expenses
Staff costs & payroll	$ 1,409,321	$ 1,374,129

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2017	$ 896,983	$ 625	$ 11,914,083	$ (11,017,725)
Balance, shares at Dec. 31, 2017		625,318
Stock issuance for cash	5,206,273	$ 2,500	5,203,773
Stock issuance for cash, shares		2,500,000
Stock option expense	24,770		24,770
Warrants issued with debt	154,676		154,676
Purchase of fractional common shares	(1,894)		(1,894)
Purchase of fractional common shares, shares		(357)
Net loss	(472,159)			(472,159)
Balance at Dec. 31, 2018	5,808,649	$ 3,125	17,295,408	(11,489,884)
Balance, shares at Dec. 31, 2018		3,124,961
Stock option expense	8,834		8,834
Stock issued for warrants exercised	22,320	$ 9	22,311
Stock issued for warrants exercised, shares		9,300
Net loss	(3,004,878)			(3,004,878)
Balance at Dec. 31, 2019	$ 2,834,925	$ 3,134	$ 17,326,553	$ (14,494,762)
Balance, shares at Dec. 31, 2019		3,134,261

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,004,878)	$ (472,159)
Adjustments to reconcile net loss to cash used in operating activities
Depreciation and amortization	63,760	68,263
Warrants issued with debt amortization		154,676
Right to use asset expense	51,809
Stock compensation	8,834	24,770
Goodwill impairment	1,650,000
Recovery of reserve from related party receivable	(190,000)
Amortization of debt issuance costs		291,760
Gain on litigation		(405,000)
Gain on termination of operating lease	(1,421)
Gain on sale of fixed assets	(5,000)
Interest income		(7,375)
Change in operating assets and liabilities:
Prepaid expenses and other assets	176,093	31,517
Advances (repayments) to related party	62,724	(25,507)
Accounts payable and accrued expenses	85,045	(389,599)
Other liabilities and obligations	1,463	(29,663)
Lease liability payments	(44,765)
Deferred taxes	(14,200)
Net cash used in operating activities	(1,160,536)	(758,317)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash received from business acquisition	51,327
Cash paid to purchase fixed assets	(14,049)
Investment in note receivable - related party	(1,500,000)	(1,500,000)
Cash received from sales of fixed assets	5,000
Proceeds for real estate assets owned	80,076	41,527
Net cash used in investing activities	(1,118,574)	(1,143,120)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net of issuance cost		5,206,273
Proceeds from borrowings		500,000
Principal repayments	(194,140)	(580,823)
Proceeds from exercise of warrants	22,320
Purchase of fractional common shares		(1,894)
Debt issue costs		(291,760)
Net cash (used in) provided by financing activities	(171,820)	4,831,796
NET (DECREASE) INCREASE IN CASH	(2,450,930)	2,930,359
CASH - BEGINNING OF YEAR	3,520,753	590,394
CASH - END OF YEAR	1,069,823	3,520,753
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION
Cash paid for interest	41,374	29,401
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Debt discount on issuance of warrants		154,676
Insurance financing	127,490	84,670
Financing loan for purchase of fixed asset	12,892
ROU asset obligation recognized	331,477
Original Product [Member]
CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections of finance receivables	151,301	212,925
Special Product [Member]
CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections of finance receivables	$ 107,771	$ 102,428

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
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 purpose 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 a Florida limited liability company organized in January 2008 under the terms of an Operating Agreement dated effective January 8, 2008 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 acquired IIU, Inc. (“IIU”) global medical insurance products for international travelers, specializing in policies covering high-risk destinations, emerging markets and foreign travelers coming to the United States, . On January 8, 2020, the Company entered into a Stock Purchase Agreement (the “Craven SPA LMFA 4,969,200 During 2019, we were a diversified business with two focuses: • specialty finance company that provides funding to nonprofit community associations primarily located in the state of Florida. We offer incorporated nonprofit community associations, which we refer to as “Associations,” a variety of financial products customized to each Association’s financial needs. Our original product offering consists of providing funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. Historically, we provided funding against such delinquent accounts, which we refer to as “Accounts,” in exchange for a portion of the proceeds collected by the Associations from the Account debtors on the Accounts. We have started purchasing Accounts on varying terms tailored to suit each Association’s financial needs, including under our New Neighbor Guaranty™ program. • purchased on January 16, 2019. IIU provided global medical insurance products for international travelers, specializing in policies covering high-risk destinations, emerging markets and foreign travelers coming to the United States. All policies were fully underwritten with no claim risk remaining with IIU. Specialty Finance The Company has a specialty finance company that provides funding principally to Associations that are almost exclusively located in Florida. The business of the Company is conducted pursuant to relevant state statutes (the “Statutes”), principally Florida Statute 718.116. The Statutes provide each Association lien rights to secure payment from unit owners (property owners) for assessments, interest, administrative late fees, reasonable attorneys’ 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 collect proceeds 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. In Florida if a rate is not specified, the statutory rate is equal to 18% but may not exceed the maximum rate allowed by law. Similarly, the Statutes in Florida 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”). Specialty Health Insurance Our subsidiary IIU through its wholly owned company Wallach and Company (“Wallach”) offers health insurance, travel insurance and other travel services to: • United States citizens and residents traveling abroad • Non United States citizens or residents who travel to the United States These services are typically sold through a policy offered by Wallach and fully underwritten by a third party insurance company. The policies offered include: • HealthCare Abroad - Short term medical insurance, medical evacuation and international assistance for Americans traveling overseas. There is an age limit of 84 years old. • HealthCare Global – up to 6 months coverage for Americans traveling abroad and foreign nationals traveling outside their home countries to destinations other than the United States. There is an age limit of 70 years old. • HealthCare America – up to 90 days coverage for foreign nationals visiting the United States. There is an age limit of 70 years old. • HealthCare International – International medical insurance & assistance for persons living outside their home country. There is an age limit of 70 years old. • HealthCare War – up to 6 months coverage for Americans traveling abroad and foreign nationals traveling outside their home countries to identified war risk areas. There is an age limit of 70 years old. Principles of Consolidation The consolidated financial statements include the accounts of LMFA and its wholly-owned subsidiaries: LM Funding, LLC; LMF October 2010 Fund, LLC; REO Management Holdings, LLC (including all 100% owned subsidiary limited liability companies); LM Funding of Colorado, LLC; LM Funding of Washington, LLC; LM Funding of Illinois, LLC; and LMF SPE #2, LLC and various single purpose limited liability corporations owned by REO Management Holdings, LLC which own various properties. It also includes IIU Inc. and its wholly-owned subsidiary; Wallach & Company. All significant intercompany balances have been eliminated in consolidation Basis of Presentation The consolidated financial statements have been prepared 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 Revenue Recognition Accounting Standards Codification (“ASC”) 606 of the Financial Accounting Standards Board (“FASB”) states an entity needs to conclude at the inception of the contract that collectability of the consideration to which it will be entitled in exchange for the goods and services that will be transferred to the customer is probable. That is, in some circumstances, an entity may not need to assess its ability to collect all of the consideration in the contract. The Company provides funding to Associations by purchasing their rights under delinquent accounts from unpaid assessments due from property owners. Collections on the Accounts may vary greatly in both the timing and amount ultimately recovered compared with the total revenues earned on the Accounts because of a variety of economic and social factors affecting the real estate environment in general . The Company’s contracts with its customers have very specific performance obligations. The Company has determined that the known amount of cash to be realized or realizable on its revenue generating activities cannot be reasonably estimate and as such, classifies its finance receivables as nonaccrual and recognizes revenues in the accompanying statements of income on the cash basis or cost recovery method in accordance with ASC 310-10, Receivables The Company analyzed its remaining revenue streams and concluded there were no changes in revenue recognition with the adoption of the new standard. Under ASC 606, the Company applies the cash basis method to its original product and the cost recovery method to its special product as follows: Finance Receivables—Original Product : Under the Company’s original product, delinquent assessments are funded only up to the Super Lien Amount as discussed above. Recoverability of funded amounts is generally assured because of the protection of the Super Lien Amount. As such, payments by unit owners on the Company’s original product are recorded to income when received in accordance with the provisions of the Florida Statute (718.116(3)) and the provisions of the purchase agreements entered into between the Company and Associations. Those provisions require that all payments be applied in the following order: first to interest, then to late fees, then to costs of collection, then to legal fees expended by the Company and then to assessments owed. In accordance with the cash basis method of recognizing revenue and the provisions of the statute, the Company records revenues for interest and late fees when cash is received. In the event the Company determines the ultimate collectability of amounts funded under its original product are in doubt, payments are applied to first reduce the funded or principal amount. Finance Receivables—Special Product (New Neighbor Guaranty program) : During 2012, the Company began offering associations an alternative product under the program whereby the Company will fund amounts in excess of the Super Lien Amount. Under this special product, the Company purchases substantially all of the delinquent assessments owed to the association, in addition to all accrued interest and late fees, in exchange for payment by the Company of (i) a negotiated amount or (ii) on a going forward basis, all monthly assessments due for a period up to 48 months. Under these arrangements, the Company considers the collection of amounts funded is not assured and under the cost recovery method, cash collected is applied to first reduce the carrying value of the funded or principal amount with any remaining proceeds applied next to interest, late fees, legal fees, collection costs and any amounts due to the Association. Any excess proceeds still remaining are recognized as revenues. If the future proceeds collected are lower than the Company’s funded or principal amount, then a loss is recognized. Net Commission Revenue: The Company acts as an agent in providing health travel insurance policies. As a result, the Company revenue is recorded at net. The Company has determined that the known amount of cash to be realized or realizable on its revenue generating activities can be reasonably estimated and as such, classifies its receivables as accrual and recognizes revenues in the accompanying statements of income on the accrual basis. If a policy is not effective as of the end of a period, then the associated revenue and underwriting costs are deferred until the effective date. The majority of the commission revenue is underwritten by two policy underwriters who pays the Company commissions. 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. However, the Company did have an accrual at December 31, 2019 and 2018, respectively for an allowance for credit losses for this program of $112,027 and $124,359. Under the New Neighbor Guaranty 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; (iii) an association settles an account for less than amounts the Company funded to the Association or (iv) the Association terminates its relationship with the Company’s designated legal counsel. 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 statute of limitations period or whether the deficiency judgment can be sold. If the Company determines that collection through a deficiency judgment or sale of a deficiency judgment is not feasible, the Company writes off the unrecoverable receivable amount. Any losses greater than the recorded allowance will be recognized as expenses. Under the Company’s revenue recognition policies, all finance receivables (original product and special product) are classified as nonaccrual. 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 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 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 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 The Company capitalizes costs incurred to acquire real estate owned properties and any costs incurred to get the units in a condition to be rented. These costs include, but are not limited to, renovation/rehabilitation costs, legal costs, and delinquent taxes. These costs are depreciated over the estimated minimum time period the Company expects to maintain possession of the units. Costs incurred for unencumbered units are depreciated over 20 years and costs for units subject to a first mortgage are depreciated over 3 years. As of December 31, 2019 and 2018, capitalized real estate costs, net of accumulated depreciation, were $21,084 and $122,604, respectively. During the years ended December 31, 2019 and 2018, depreciation expense was $21,444 and $45,577, respectively. 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 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 Association elects (prior to the Company obtaining title through its own election) to maintain ownership and not quitclaim title to the Company, the 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 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, 2019 and 2018, capitalized software costs, net of accumulated amortization, was $nil and $21,951, respectively. Amortization expense for capitalized software costs for the periods ended December 31, 2019 and December 31, 2018 was $21,951 and $23,259, respectively. Right to Use Assets The Company capitalizes all leased assets pursuant to ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. Goodwill Goodwill represents the excess purchase price of acquired businesses over the fair value of the net assets acquired. Goodwill is not amortized, but instead is tested for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. During the year, the Company recorded goodwill of approximately $5.7 milion which represented amounts for the purchase of IIU. For purposes of the 2019 annual test, we will elect to perform a goodwill impairment analysis to assess whether it was more likely than not that the fair value of these reporting units exceeded their respective carrying values. In performing these assessments, management will relay on a number of factors including, but not limited to, macroeconomic conditions, industry and market considerations, cost factors that would have a negative effect on earnings and cash flows, overall financial performance compared with forecasted projections in prior periods, and other relevant reporting unit events, the impact of which are all significant judgments and estimates. This assessment was performed as of December 31, 2019 and showed a $1.65 million impairment due to the sale of IIU on January 8, 2020. The balance of goodwill as of December 31, 2019 and 2018 was approximately $4.1 million and $0, respectively. 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. The Company did not have any unamortized debt issue costs at December 31, 2019 or 2018. The Company incurred $291,760 debt issuance costs in 2018. Any costs will be presented in the accompanying condensed consolidated balance sheets as other assets until the loan proceeds are received which at that time will be reclassified as a direct deduction from the carrying amount of that debt liability in accordance with Accounting Standards Update (“ASU”) 2015-03. Debt Discount On April 2, 2018, the Company entered into a Securities Purchase Agreement (the “SPA”) with a New York-based family office (“Investor”), which was subsequently amended, pursuant to which the Company issued to Investor a Senior Convertible Promissory Note (the “Note”) in the original principal amount of $500,000 in exchange for a purchase price of $500,000. The maturity date of the Note was six months after the date of issuance (subject to acceleration upon an event of default). The Note carried a 10.5% interest rate, with accrued but unpaid interest being payable on the Note’s maturity date. Investor was also issued pursuant to the SPA five- year warrants exercisable at the closing per share bid price on April 2, 2018 to purchase 40,000 shares of the Company’s common stock (the “Warrants”) (see Note 7. Long Term Debt). The 40,000 warrants were valued on the grant date at approximately $3.87 per warrant or a total relative fair value of $154,676 using a Black-Scholes option pricing model with the following assumptions: stock price of $7.40 per share (based on the quoted trading price on the date of grant), volatility of 100.6%, expected term of 5 years, and a risk-free interest rate of 2.55%. The relative fair value of the warrants ($154,676) was treated as a debt discount that was amortized over 6 months. The amortization of the discount was recognized as interest expense of which $154,676 was recognized for the year ended December 31, 2018. Due to the subsequent issuance of stock and warrants on October 31, 2018, these warrants now represent the right to purchase 143,587 shares of common stock at an exercise price of $1.84 per share. These warrants expire in the year 2023. Settlement Costs with Associations 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 Association agrees to pay some monetary compensation to the opposing party or judgments against the Associations for fees of opposing legal counsel or other damages awarded by the courts. The Company indemnifies the Association for these costs pursuant to the provisions of the agreement between the Company and the Association. Costs incurred by the Company for these indemnification obligations for the year ended December 31, 2019 and 2018 were $68,188 and $40,027, 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. Under ASC 740-10-30-5, Income Taxes Prior to the Company’s 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 Company’s 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. The Company issued 2,500,000 of common stock at various times during the month of November 2018 and has weighted average these new shares in calculating loss per share for the relevant period. On October 15, 2018, the Company effected a common share consolidation (“Reverse Stock Split”) by means of a one-for-ten (1:10) reverse split of its outstanding common stock, par value $0.001 per share which resulted in a decrease in outstanding common stock to 625,318 shares. The Reverse Stock Split became effective, on October 16, 2018 and the Company’s common stock began trading on The Nasdaq Global Market on a split-adjusted basis on October 16, 2018. The Company has restated all share amounts to reflect the Reverse Stock Split. 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. The anti-dilutive stock based compensation awards consisted of: For the years ended December 31 2019 2018 Stock Options 19,300 19,300 Stock Warrants – number of shares to purchase 2,879,287 2,763,587 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 Statements of Operations 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 13. Related Party ASC 850 - Related Party Disclosures requires disclosure of related party transactions and certain common control relationships. The Company disclosures related party transactions and such transactions are approved by the Company’s Board of Directors. See Note 11. 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. Non-cash Financing and Investing Activities During the year ended December 31, 2019 and 2018, the Company acquired unencumbered title to certain properties as a result of foreclosure proceedings. Properties were recorded at fair value less cost to dispose of approximately $0 and $0, respectively. The fair value of these properties was first applied to recover the Company’s initial investment with any remaining proceeds applied to interest, late fees, and other amounts owed by the property owner. During the year ended December 31, 2019, the Company acquired fixed assets of $12,892 through a financing loan. ROU Assets and Lease Obligation – for the year ended December 31, 2019 the Company acquired $331,477 of ROU lease asset and liability. Financing of Insurance Premium – the Company financed the purchase of various insurance policies during the year ended December 31, 2019 and 2018 using a $127,000 and $85,000, respectively using a finance agreement. New Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. ASU 2016-02 requires a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and provides certain practical expedients that companies may elect including those contained in ASU 2018-01, "Leases (Topic 842): Lease Easement Practical Expedient for Transition to Topic 842". This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. The Company adopted on January 1, 2019 and elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The adoption of the policy did not have a cumulative impact on retained earnings. As a result of this ASU, the Company recorded $331,477 of ROU assets and liability in 2019. In June 2018, the FASB issued ASU No. 2018-07 " Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting". The standard simplified the accounting for share-based payments granted to nonemployees for goods and services, therefore guidance on such payments to nonemployees would be mostly aligned with the requirements for share-based payments granted to employees. ASU 2018-07 will be effective for us beginning October 1, 2019, but early adoption is permitted (but no earlier than the adoption date of Topic 606). This guidance is effective for us beginning January 1, 2019. Upon adoption, there was no impact to the Company’s consolidated financial statements Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses We have determined that this will not impact our consolidated financial statements at this time. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.

Finance Receivables - Original

Finance Receivables - Original Product	12 Months Ended
	Dec. 31, 2019
Original Product [Member]
Finance Receivables	Note 2. Finance Receivables – Original Product The Company’s original funding product provides financing to 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: 2019 2018 Funded during the current year $ 40,000 $ 79,000 1-2 years outstanding 15,000 35,000 2-3 years outstanding 20,000 18,000 3-4 years outstanding 11,000 7,000 Greater than 4 years outstanding 300,000 411,000 Total 386,000 550,000 Reserve for credit losses (112,000 ) (125,000 ) Total $ 274,000 $ 425,000 Number of active units with delinquent assessments 598 826 Amount of outstanding interest and late fees on active units $ 9,167,000 $ 11,268,000

Finance Receivables - Special P

Finance Receivables - Special Product (New Neighbor Guaranty program)	12 Months Ended
	Dec. 31, 2019
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 amounts 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. As of December 31, 2019, maximum future contingent payments under these arrangements was approximately $36,000. Delinquent assessments and accrued charges under these arrangements as of December 31, are as follows: 2019 2018 Finance receivables, net $ 129,000 $ 237,000 Delinquent assessments 374,000 707,000 Accrued interest and late fees 235,000 465,000 Number of active units with delinquent assessments 31 58

New Neighbor Guaranty Allowance

New Neighbor Guaranty Allowance for Credit Losses	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
New Neighbor Guaranty Allowance for Credit Losses	Note 4. New Neighbor Guaranty 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 amountunder Florida statute and as such no allowance is recorded. Credit losses on the New Neighbor Guaranty product were estimated by the Company and had a remaining balance of approximately $20,000 and $41,000 as of December 31, 2019 and 2018, respectively.

Real Estate Assets Owned

Real Estate Assets Owned	12 Months Ended
	Dec. 31, 2019
Real Estate [Abstract]
Real Estate Assets Owned	Note 5. Real Estate Assets Owned Real estate assets owned as reported in the accompanying consolidated balance sheets consist 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 (free and clear of any mortgage) at December 31, 2019, and 2018, were approximately $21,100 and $122,600 respectively, consisting of one and one units respectively, at these dates. The Company acquired none and none new unencumbered units, net of disposals during 2019 and 2018 that were capitalized at fair value less cost to dispose of approximately $0 and $0, respectively. 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, 2019 and 2018 as a result of foreclosure action were, including those discussed above, 20 and 20, respectively. During 2019 and 2018, the Company sold twenty-three and twenty-seven units, respectively, and realized proceeds of approximately $190,000 and $196,000, 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 2019 or 2018. Rental revenues collected in 2019 and 2018 were approximately $227,000 (net of cost recovery of $0) and $513,000, respectively (net of cost recovery of $10,000). 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, 2019 and 2018 approximates $7,000 and $9,000, respectively.

Goodwill and Acquisition

Goodwill and Acquisition	12 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Goodwill and Acquisition	Note 6. Goodwill and Acquisition On November 2, 2018, the Company invested cash by purchasing a Securities Purchase Agreement (the “IIU SPA”) from IIU Inc. (“IIU”), a synergistic Virginia based travel insurance brokerage company controlled by Craven House N.A. (whose ownership excluding unexercised warrants is approximately 20% of the Company’s outstanding stock as of the date of acquisition), pursuant to which IIU issued to the Company a Senior Convertible Promissory Note (“IIU Note”) in the original principal amount of $1,500,000 in exchange for a purchase price of $1,500,000. The maturity date of the Note is 360 dates after the date of issuance (subject to acceleration upon an event of default). The Note carries a 3.0% interest rate, with accrued but unpaid interest being payable on the Note’s maturity date. The IIU Note allows the Company the right on or after the maturity date to convert any unpaid principal and accrued and unpaid interest of the IIU Note into shares of IIU based on a conversion amount which is the fair value of the common shares of IIU at the time. The conversion price will be reset if IIU issues or sells common shares, convertibles securities or options at a price per share that is less than the conversion price in effect immediately prior to such issue or sale or deemed issuance or sale of such dilutive issuance. On January 16, 2019, the Company entered into a Stock Purchase Agreement with Craven House North America, LLC ( “Craven” IIU global medical insurance products for international travelers, specializing in policies covering high-risk destinations, emerging markets and foreign travelers coming to the United States. All policies are fully underwritten with no claim risk remaining with IIU. The Board of Directors of LMFA approved the purchase of IIU. LMFA purchased 100% of the outstanding stock of IIU for $5,089,357. LMFA paid the Purchase Price at closing as follows: • Cancellation by LMFA of all principal and accrued interest of IIU’s Promissory Note dated November 3, 2018 and issued to LMFA for principal indebtedness and accrued interest of $1,507,375. • LMFA issued to Craven a $3,581,982 Convertible Promissory Note (“Craven note”) for the balance of the Purchase Price. At the option of Craven, the Convertible Note may be paid in restricted common shares of LMFA or cash. The Convertible Note shall bear simple interest at 3% per annum. The Convertible Note shall be due and payable 360 days from the Closing Date. If repaid by LMFA in restricted common stock, the outstanding principal and interest of the Convertible Note shall be paid by LMFA by issuing to Seller a number of restricted common shares equal to the adjusted principal and accrued interest owing on the Convertible Note divided by $2.41. The note principal was subsequently reduced by $120,200 arising from lower than expected Closing Cash and Net Working Capital. Craven had verbally agreed to extend repayment of this Convertible Promissory Note 12 months from April 15, 2019. • Net cash received in the business acquisition was $51,327 As such, the $1.5 million note receivable was cancelled as of January 16, 2019. The following table summarizes the approximate consideration paid and the amounts of the identified assets acquired and liabilities assumed at the acquisition date: January 16, 2019 Total adjusted purchase price $ 4,969,200 Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: Cash 51,300 Prepaid and other current assets 5,200 Profit on purchased policies 14,600 Property, plant and equipment 17,100 Accounts payable (5,100 ) Accrued expenses and other liabilities (62,686 ) Income taxes (28,500 ) Deferred revenue (9,300 ) Debt (703,000 ) Preliminary estimate of the fair value of assets and liabilities assumed (720,386 ) Goodwill $ 5,689,586 We performed an assessment effective as of December 31, 2019 in light of the Company’s sale of IIU on January 8, 2020 which resulted in a $1.65 million goodwill impairment. The accompanying unaudited pro forma statements of operations presents the accounts of LM Funding and IIU for the twelve - months ended December 31, 2019 and 2018, assuming the acquisition occurred on January 1, 2018: 2019 2018 Revenues: 3,039,956 4,058,363 Net revenue 3,039,956 4,058,363 Operating Expenses: 5,907,644 4,254,141 Operating loss (2,867,688 ) (195,778 ) Gain on disposal of assets (6,421 ) - Other income (23,217 ) Gain on litigation - (405,000 ) Investment income - (34,219 ) Interest expense 142,161 496,594 Loss before income taxes (3,003,428 ) (229,936 ) Income tax expense 274 28,426 Net loss $ (3,003,702 ) $ (258,362 ) Net loss per common share: Basic $ (0.96 ) $ (0.26 ) Diluted (0.96 ) (0.26 ) Weighted average number of common shares outstanding: Basic 3,133,689 996,710 Diluted 3,133,689 996,710 IIU generated $639,815 of net commission revenue from January 16, 2019 to December 31, 2019 and $386,968 of operating expenses plus $39,522 of interest expense.

Long-Term Debt and Other Financ

Long-Term Debt and Other Financing Arrangements	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Long-Term Debt and Other Financing Arrangements	Note 7. Long-Term Debt and Other Financing Arrangements Year ended December 31, 2019 2018 Financing agreement with FlatIron capital that is unsecured. Down payment of $28,125 was required upfront and equal installment payments of $8,701 to be made over a 10 month period. The note matured on May 31, 2019. Annualized interest is 5.99% $ - $ 42,875 Financing agreement with FlatIron capital that is unsecured. Down payment of $19,170 was required upfront and equal installment payments of $11,590 to be made over a 11 month period. The note matures on June 1, 2020. Annualized interest is 6.8% 69,540 - Senior secured convertible note to Craven House Capital North America LLC (Related Party), bearing interest at 3.0%. Note was issued on January 16, 2019 and either matured on either January 14, 2020 or became convertible into 1,436,424 shares of the Company's common stock. The value of the beneficial conversion feature as of January 16, 2019 was zero.* 3,461,782 - Promissory note issued by a financial institution, bearing interest at 9.09%, interest and principal payments due monthly of $323. Note is secured by an automobile and was issued on July 26, 2019 with original borrowings of $12,892. The note matures on August 26, 2023. 11,802 - Promissory note issued by a financial institution, bearing interest at 5.85%, interest and principal payments due monthly of $10,932. Note was issued on May 31, 2018 with original borrowings of $608,000 and subsequent borrowings of $141,000 and repayments of $51,000. The note matures on May 30, 2025 and can be prepaid at any time without penalty. This note is secured by the Company’s inventory, chattel paper, accounts, equipment and general intangible intangibles and deposit accounts. 606,454 $ 4,149,578 $ 42,875 *The $3.5 million convertible note was forgiven in connection with Craven’s repurchase of IIU on January 8, 2020 pursuant to the terms of the Craven SPA. On October 5, 2018, the Company exercised its right to terminate the Purchase Agreement originally entered into on April 2, 2018 with the Investor. The Company also repaid the $500,000 note and accrued interest on October 5, 2018. The Company paid the $200,000 Commitment Fee on November 2, 2018. Minimum required principal payments on the Company’s debt as of December 31, 2019 are as follows : Years Ending December 31, 2020 $ 3,631,994 2021 107,013 2022 113,648 2023 119,090 2024 177,833 $ 4,149,578

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8. Commitments and Contingencies Leases The Company leases certain office space, construction and office equipment, vehicles and temporary housing generally under non-cancelable operating leases. Leases with an initial term of one year or less are not recorded on the balance sheet, and the Company generally recognizes lease expense for these leases on a straight-line basis over the lease term. As of December 31, 2019, the Company’s operating leases have remaining lease terms ranging from less than one year to 3 years, some of which include options to renew the leases. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is a lease at inception. Operating lease ROU assets and current and long-term operating lease liabilities are separately stated on the Consolidated Balance Sheet as of December 31, 2019. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The present value of future lease payments are discounted using either the implicit rate in the lease, if known, or the Company’s incremental borrowing rate for the specific lease as of the lease commencement date. The rate was determined as a fair value of the lease over a 37 month period using a 6.5% interest rate for the present value calculation. The Company leased its office under an operating lease beginning March 1, 2014 and ending July 31, 2019. The Company’s new office lease began July 15, 2019 and ends July 31, 2022. It also has a month to month lease for its IIU operations. A related party has a sub-lease for approximately $4,900 per month plus operating expenses. The Company shares this space and the related costs associated with this operating lease with a related party (see Note 11) that also performs legal services associated with the collection of delinquent assessments. The Company entered into a sub-lease with an unrelated party but we stopped receiving such sub-lease rental income in September 2018. Net rent expense recognized for the twelve months ended December 31, 2019 and 2018 were approximated $186,609 and $108,000, respectively. The following table presents supplemental balance sheet information related to operating leases as of December 31, 2019 : Balance Sheet Line Item 2019 Assets ROU assets Right of use asset, net $ 260,260 Total lease assets $ 260,260 Liabilities Current lease liabilities Lease liability $ 94,235 Long-term lease liabilities Lease liability 171,648 Total lease liabilities $ 265,883 Weighted-average remaining lease term (in years) 2.6 Weighted-average discount rate 6.55 % The following table presents supplemental cash flow information and non-cash activity related to operating leases for the twelve months ended December 31, 2019: Operating Leases Operating cash flow information Cash paid for amounts included in the measurement of lease liabilities $ 44,765 Non-cash activity: ROU assets obtained in exchange for lease liabilities (lease cancelled) 26,685 ROU assets obtained in exchange for lease liabilities 304,792 Total ROU assets obtained in exchange for lease liabilities 331,477 The following table presents maturities of operating lease liabilities on an undiscounted basis as of December 31, 2019: Operating Leases 2020 94,235 2021 103,646 2022 68,002 265,883 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 in the ordinary course of business, including either the prosecution or defense of claims arising from contracts by and between us and client Associations. Regardless of the outcome, litigation can have an adverse impact on us because of prosecution, defense, and settlement costs, diversion of management resources and other factors. The Company accrues for contingent obligations, including estimated legal costs, when the obligation is probable and the amount is reasonably estimable. As facts concerning contingencies become known, the Company reassesses its position and makes appropriate adjustments to the consolidated financial statements. Estimates that are particularly sensitive to future changes include those related to tax, legal, and other regulatory matters. We were a defendant in an action entitled Solaris at Brickell Bay Condominium Association, Inc. v. LM Funding, LLC As such, during the fiscal year 2018 the Company adjusted the class action accrual to $100,000 and recorded a $405,000 gain to other income to the statement of operations. The amount was paid during fiscal year 2018.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes Prior to the Company’s 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. Adjustments are recorded based on filed returns when finalized or the related adjustments are identified. Under ASC 740-10-30-5, Income Taxes Significant components of the tax expense (benefit) recognized in the accompanying consolidated statements of operations for the years ended December 31, 2019 and December 31, 2018) are as follows: Year Ended Year Ended December 31, 2019 December 31, 2018 Current tax benefit Federal $ (426,931 ) $ (222,603 ) State (88,334 ) (46,058 ) Total current tax benefit (515,265 ) (268,661 ) Deferred tax expense 84,015 685,416 Valuation allowance (expense) 431,250 (416,755 ) Income tax (reduction) benefit $ - $ - The reconciliation of the income tax computed at the combined federal and state statutory rate of 25.3% for the year ended December 31, 2019 and 25.3% for the year ended December 31, 2018 to the income tax benefit is as follows: Year Ended December 31, Year Ended December 31, 2019 2019 2018 2018 Benefit on net loss $ (849,700 ) 28.3 % $ 413,361 (87.5 )% Nondeductible expenses 418,450 -13.9 % 3,394 (0.7 )% Valuation allowance (expense) 431,250 (14.4 )% (416,755 ) 88.2 % Other items - 0.0 % - 0.0 % Tax benefit/effective rate $ - 0.0 % $ - 0.0 % The significant components of the Company’s deferred tax liabilities and assets as of December 31, 2019 and December 31, 2018 are as follows: As of December 31, 2019 2018 Deferred tax liabilities: Tax expense for internally developed software $ 4,081 $ 9,976 Tax depreciation in excess of book 1,029 4,975 Total deferred tax liabilities 5,110 14,951 Deferred tax assets: Loss carryforwards 2,759,806 2,156,428 Step up in basis at contribution to C-Corp 682,231 853,410 Stock option expense 89,295 87,056 Step up in basis - purchase of non-controlling interest 54,597 59,243 Allowance for credit losses 33,466 41,849 Accrued liabilities 20,572 20,572 Total deferred tax asset 3,639,967 3,218,558 Valuation allowance (3,634,857 ) (3,203,607 ) Net deferred tax asset $ - $ - 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, 2019
Equity [Abstract]
Stockholders' Equity	Note 10. Stockholders’ Equity Stock Issuance Fiscal Year 2019 During the twelve months ended December 31, 2019, warrants for 9,300 shares were exercised for $22,320. Fiscal Year 2018 On October 15, 2018, the Company effected ( the “Reverse Stock Split”) a one-for-ten (1:10) reverse split of its outstanding common stock, par value $0.001 per share which resulted in a decrease in outstanding common stock to 625,318 shares. The Reverse Stock Split became effective, on October 16, 2018 and the Company’s common stock began trading on The Nasdaq Global Market on a split-adjusted basis on October 16, 2018. This reduced the number of outstanding shares of the Company’s common stock from 6,253,189 down to 625,318 resulted in a treasury share buyback of 357 shares for $1,894 in connection with the purchase of fractional shares. The Company has restated all share amounts to reflect the Reverse Stock Split. On October 31, 2018, the Company issued 2,500,000 shares of common stock for net proceeds of $5.2 million after offering costs of $0.2 million. Stock Warrants The following is a summary of the stock warrant plan activity during the years ended December 31, 2019 and 2018: 2019 2018 Number of Warrants Weighted Average Exercise Price Number of Warrants Weighted Average Exercise Price Warrants Outstanding at Beginning of the year 3,843,587 $5.53 1,200,000 $12.50 Granted 125,000 2.64 2,643,587 2.37 Exercised 9,300 2.40 - - Adjustment - - - - Forfeited - - - - Warrants Outstanding and Exercisable at End of Year 3,959,287 $5.45 3,843,587 $5.53 As part of its initial public offering, o n October 23, 2015 the Company issued 1,200,000 warrants that allowed for the right to purchase 1,200,000 shares of common stock at an average exercise price of $12.50 per share. Due to the Reverse Stock Split on October 16, 2018, each warrant may only purchase one-tenth of one share of common stock at $12.50. These warrants have weighted average price of $12.50 per share and a weighted average remaining life of .94 years and 1.81 years as of December 31, 2019 and 2018, respectively. These warrants expire in the year 2020. On October 31, 2018, the Company issued warrants as part of its secondary offering that allowed for the right to purchase 2,500,000 shares of common stock at an exercise price of $2.40 per share. These warrants have average remaining life of 3.8 years as of December 31, 2019. These warrants expire in the year 2023. During the twelve months ended December 31, 2019, warrants for 9,300 shares were exercised for $22,320, respectively. On April 2, 2018, the Company issued warrants that allowed for the right to purchase 40,000 shares of common stock at an exercise price of $6.605 per share. If at any time these warrants are outstanding, the Company combines its outstanding shares of common stock into a smaller number of shares or enters into a corporate action or transaction to change the number of outstanding shares of common stock, then the exercise price will be adjusted along with the number of shares that can be purchased under this agreement. Due to the subsequent issuance of stock and warrants on October 31, 2018, these warrants now represent the right to purchase 143,587 shares of common stock at an exercise price of $1.84 per share. These warrants have an average remaining life of 3.25 years as of December 31, 2019. These warrants expire in the year 2023. As part of its underwriting agreement dated, October 31, 2018, the Company issued additional warrants, effective May 1, 2019, to its underwriter as part of its secondary offering that allowed for the right to purchase 125,000 shares of common stock at an exercise price of $2.64 per share on or after May 1, 2019. These warrants expire on May 2, 2022. 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 May 29, 2018 the Company granted a total of 10,000 stock options to an employee 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. The grant date fair value of the options was $4.68. Total expense to be recognized after adjusting for forfeitures for the employee options is approximately $35,000. 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. There were no awards in fiscal year 2019. The weighted average grant date fair value of the options granted was $4.68 for awards granted in the years ended December 31, 2018 Compensation expense recognized from the vesting of stock options was approximately $9,000 of which $9,000 was for options issued prior to 2019 and $25,000 of which $18,800 was for options issued prior to 2018, respectively for the years ended December 31, 2019 and 2018. The remaining unrecognized compensation cost associated with unvested stock options as of December 31, 2019 and 2018 is approximately $18,000 and $32,000, respectively. At December 31, 2019 and 2018, the stock options had a remaining life of approximately 6 and 7 years, respectively The aggregate intrinsic value of the outstanding common stock options as of December 31, 2019 and 2018 was $0 and $0 respectively. 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 the historical volatility of another public company with a similar business model and comparable 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 a value of zero was used 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: 2018 Risk-free rate 2.65 % Expected life 6 years Expected volatility 108.00 % Expected dividend — The following is a summary of the stock option plan activity during the years ended December 31, 2019 and 2018: 2019 2018 Number of Weighted Average Number of Weighted Average Options Exercise Price Options Exercise Price Options Outstanding at Beginning of the year 19,300 $ 57.91 11,290 $ 111.07 Granted - - 10,000 10.00 Exercised - - - - Adjustment - - 1,010 125.00 Forfeited - - (3,000 ) 120.83 Options Outstanding at End of Year 19,300 $ 60.51 19,300 $ 57.91 Options Exercisable at End of Year 11,800 $ 84.49 6,630 $ 105.68

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Note 11. 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 the Company until and through the date of its initial public offering. Following the initial public offering, Mr. Rodgers transferred his interest in BLG to other attorneys at the firm through a redemption of his interest in the firm, and BLG is now under control of those lawyers. The law firm has historically performed collection work primarily on a deferred billing basis wherein the law firm receives payment for services rendered upon collection from the property owners or at amounts ultimately subject to negotiations with the Company. Under the agreement, the Company pays BLG a fixed monthly fee of $82,000 per month for services rendered. The Company will continue to pay BLG a minimum per unit fee of $700 in any case where there is a collection event and BLG receives no payment from the property owner. This provision has been expanded to also include any unit where the Company has taken title to the unit or where the Association has terminated its contract with either BLG or the Company. Amounts collected from property owners and paid to BLG for 2019 and 2018 were approximately $1,052,000 and $984,000, respectively. As of December 31, 2019 and 2018, receivables from property owners for charges ultimately payable to BLG were approximately $1,883,000 and $2,753,000, respectively. Under the related party agreement with BLG in effect during 2019 and 2018, the Company pays all costs (lien filing fees, process and serve costs) incurred in connection with the collection of amounts due from property owners. Any recovery of these collection costs are accounted for as a reduction in expense incurred. The Company incurred expenses related to these types of costs of $203,000 and $297,000, during 2019 and 2018, respectively. The Company also shares office space and related common expenses with BLG. All shared expenses, including rent, are charged to BLG 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 consolidated balance sheet. The Company assessed the collectability of the amount due from BLG and concluded that even though BLG had repaid $252,771 during 2017, it did not have the ability to repay the remaining balance at the end of 2017 and as such took a reserve of approximately $1.4 million for the balance due as of December 31, 2017. In 2019, the Company subsequently recouped $190,000 of this write-off. Amounts receivable from BLG as of December 31, 2019 and 2018 were approximately $152,800 and $25,500, respectively. LMF has engaged BLG on behalf of many of its Association clients to service and collect the Accounts and to distribute the proceeds as required by Florida law and the provisions of the purchase agreements between LMF and the Associations. In addition, Ms. Gould entered an employment agreement to work part-time for LMF. Ms. Gould’s employment agreement with LMF permits her to also work as General Manager of BLG which pays her additional compensation of $150,000 per year. Consulting Services One of our directors, Martin A. Traber, is Chairman at Skyway Capital Markets which billed us in total $125,000 for a fairness opinion ($15,000 in 2018 and $110,000 in 2019) and $25,000 in 2019 for a future fairness opinion, the total of which represents less than 1% of Skyway Capital Markets annual revenue. We believe that such services were performed on term at least as favorable to us as those that would have been realized in transactions with unaffiliated entities or individuals. The Company advanced Craven $27,738 and anticipates it will be settled in 2020.

Investment in Note Receivable R

Investment in Note Receivable Related Party	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Investment in Note Receivable – Related Party	Note 12. Investment in Note Receivable – Related Party On November 2, 2018, the Company entered into a Securities Purchase Agreement with IIU, pursuant to which IIU issued to the Company a Senior Convertible Promissory Note (the “IIU Note”) in the original principal amount of $1,500,000 in exchange for a purchase price of $1,500,000. The maturity date of the IIU Note was 360 days after the date of issuance (subject to acceleration upon an event of default). The IIU Note carried a 3.0% interest rate, with accrued but unpaid interest being payable on the IIU Note’s maturity date. The IIU Note allowed the Company the right on or after the maturity date to convert any unpaid principal and accrued and unpaid interest of the IIU Note into shares of IIU based on a conversion amount which is the fair value of the common shares of IIU at the time. The Company subsequently purchased 100 On December 20, 2019, the Company loaned $1.5 million to Craven in the form of a secured promissory note (the “Craven Secured Promissory Note”) which had an initial maturity date of April 15, 2020 and carried an interest rate of 0.5% that is to be paid monthly. The Company subsequently extended the due date of the Craven Secured Promissory Note and the monthly interest payments to August 1, 2021. The Craven Secured Promissory Note is secured by, among other things, stock pledge of Craven’s 640,000 common stock of the Company and the assignment of the assets of Craven in favor of the Company.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 13. 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 7.55% and 8.65% for finance receivables at December 31, 2019 and 2018, respectively. The recovery period as of both dates was assumed to be 10 years and 8.5 years at December 31, 2019 and 2018, respectively. The carrying amount and estimated fair value of finance receivables at December 31 2019 and 2018 are as follows: 2019 2018 Carrying Fair Carrying Fair Amount Value Amount Value Finance receivables: Original product $ 274,000 $ 2,995,000 $ 425,000 $ 4,005,000 Special product, net of allowance (1) 129,000 300,000 237,000 543,000 (1) New Neighbor Guaranty program

Going Concern

Going Concern	12 Months Ended
	Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Going Concern	Note 14 Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business within one year after the date the consolidated financial statements are issued. In accordance with Financial Accounting Standards Board, or the FASB, Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), our management evaluates whether there are conditions or events, considered in aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued, no adjustments to the financial statements have been made to account for this uncertainty. The Company has experienced significant operating losses over the past 4 years (2016 through 2019) with cumulative losses of approximately $14,495,000 and negative cashflows from operations. These losses resulted in the usage of all cash proceeds from the Company’s initial public offering in 2015. These factors raise substantial doubt about the Company’s ability to continue as a going concern. On January 8, 2020, the Company settled the $3,461,782 note with $100,787 accrued interest owed to Craven by exchanging the note and accrued interest for ownership of IIU, Inc. On March 23, 2020, t However, we may not have enough cash to satisfy our estimated liquidity needs for the 12 months from the issuance of these financial statements. We cannot state with certainty that the Hanfor merger will close and depending upon the circumstances under which the merger would be terminated, we may not have sufficient liquidity to meet the obligations of the company.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Note 15. Subsequent Events On January 8, 2020, the Company entered into a Stock Purchase Agreement with Craven pursuant to which the Company sold to Craven all of the issued and outstanding shares of IIU for $3,562,569. The purchase price was paid by Craven through the cancellation of the $3,461,782 Convertible Promissory Note issued by LMFA to Craven dated January 16, 2019 plus forgiveness of $100,787 of accrued interest. LMFA 4,969,200 On March 23, 2020, the Company entered into a Share Exchange Agreement, dated March 23, 2020 (the “Share Exchange Agreement”), with Hanfor (Cayman) Limited, a Cayman Islands exempted company (“Hanfor”), and BZ Industrial Limited, a British Virgin Islands business company and the sole stockholder of Hanfor (“Hanfor Owner”). The parties’ respective obligations to complete the Hanfor Exchange Transaction are subject to various closing conditions. The conditions to the Company’s obligation to complete the Hanfor Exchange Transaction will include approval of the Hanfor Exchange Transaction by the Company’s stockholders at a duly called stockholder meeting; the receipt of a fairness opinion by the Company’s board of directors for the Exchange Transaction; the absence of a material adverse change in the business, assets, or operations of Hanfor; the exercise of outstanding warrants to purchase at least 729,167 shares of Company common stock (or the Hanfor Owner purchase of shares in a private placement in lieu thereof); and various customary closing conditions. The conditions to the Hanfor Owner’s and Hanfor’s obligation to complete the Hanfor Exchange Transaction will include the continued listing of the Company’s common stock on the Nasdaq Stock Market ; the absence of a material adverse change in the business, assets, or operations of the Company; and other customary closing conditions. In addition to the foregoing, the Hanfor Share Exchange Agreement contains other customary and negotiated representations, warranties, and covenants, including a covenant not to solicit alternative transactions. Under the agreement, Hanfor Owner is required to deliver to the Company audited financial statements for Hanfor for the 2019 and 2018 fiscal years, with such audited financial statements required to be delivered by May 31, 2020 (subject to extension to June 30, 2020 under specified circumstances). The Company expects to file a preliminary proxy statement relating to the Hanfor Share Exchange Transaction as soon as practicable following the receipt of such financial statements. In connection with the execution of the Share Exchange Agreement, the Company and Hanfor Owner entered into a Stock Purchase Agreement, dated March 23, 2020, pursuant to which Hanfor Owner agreed purchased from Company an aggregate of 520,833 shares of the Company’s The Share Exchange Agreement provides that, within 5 days of the purchase by Hanfor Owner of all 520,833 shares under the Stock Purchase Agreement, Hanfor Owner may appoint a member to the Company’s board of directors, provided that such director designee of Hanfor Owner shall be reasonably satisfactory to the board of directors. The Share Exchange Agreement also contains a provision that permits Hanfor Owner to restructure the transaction by adding or substituting assets in the event that Company stockholder approval is not obtained or cannot be obtained due to reasons relating to the SEC, the Nasdaq Stock Market, or other reasons. The Share Exchange Agreement provides that the parties will have specified termination rights, and further provides that, upon termination of the Share Exchange Agreement under specified circumstances, the Company may be required to pay Hanfor a termination fee of $500,000 (but only in the event of a termination by reason of the Company’s acceptance of a superior proposal), reimburse Hanfor’s transaction expenses, and/or repurchase the shares purchased under the Stock Purchase Agreement. The Share Exchange Agreement may be terminated by any party if the closing of the Hanfor Exchange Transaction does not occur by November 1, 2020, which under certain circumstances can be extended to March 31, 2021. As part of an amended agreement with Maxim Holdings LLC, we issued them 100,000 restricted shares on January 8, 2020 and 86,000 restricted shares on April 13, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
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 purpose 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 a Florida limited liability company organized in January 2008 under the terms of an Operating Agreement dated effective January 8, 2008 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 acquired IIU, Inc. (“IIU”) global medical insurance products for international travelers, specializing in policies covering high-risk destinations, emerging markets and foreign travelers coming to the United States, . On January 8, 2020, the Company entered into a Stock Purchase Agreement (the “Craven SPA LMFA 4,969,200 During 2019, we were a diversified business with two focuses: • specialty finance company that provides funding to nonprofit community associations primarily located in the state of Florida. We offer incorporated nonprofit community associations, which we refer to as “Associations,” a variety of financial products customized to each Association’s financial needs. Our original product offering consists of providing funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. Historically, we provided funding against such delinquent accounts, which we refer to as “Accounts,” in exchange for a portion of the proceeds collected by the Associations from the Account debtors on the Accounts. We have started purchasing Accounts on varying terms tailored to suit each Association’s financial needs, including under our New Neighbor Guaranty™ program. • purchased on January 16, 2019. IIU provided global medical insurance products for international travelers, specializing in policies covering high-risk destinations, emerging markets and foreign travelers coming to the United States. All policies were fully underwritten with no claim risk remaining with IIU. Specialty Finance The Company has a specialty finance company that provides funding principally to Associations that are almost exclusively located in Florida. The business of the Company is conducted pursuant to relevant state statutes (the “Statutes”), principally Florida Statute 718.116. The Statutes provide each Association lien rights to secure payment from unit owners (property owners) for assessments, interest, administrative late fees, reasonable attorneys’ 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 collect proceeds 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. In Florida if a rate is not specified, the statutory rate is equal to 18% but may not exceed the maximum rate allowed by law. Similarly, the Statutes in Florida 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”). Specialty Health Insurance Our subsidiary IIU through its wholly owned company Wallach and Company (“Wallach”) offers health insurance, travel insurance and other travel services to: • United States citizens and residents traveling abroad • Non United States citizens or residents who travel to the United States These services are typically sold through a policy offered by Wallach and fully underwritten by a third party insurance company. The policies offered include: • HealthCare Abroad - Short term medical insurance, medical evacuation and international assistance for Americans traveling overseas. There is an age limit of 84 years old. • HealthCare Global – up to 6 months coverage for Americans traveling abroad and foreign nationals traveling outside their home countries to destinations other than the United States. There is an age limit of 70 years old. • HealthCare America – up to 90 days coverage for foreign nationals visiting the United States. There is an age limit of 70 years old. • HealthCare International – International medical insurance & assistance for persons living outside their home country. There is an age limit of 70 years old. • HealthCare War – up to 6 months coverage for Americans traveling abroad and foreign nationals traveling outside their home countries to identified war risk areas. There is an age limit of 70 years old.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of LMFA and its wholly-owned subsidiaries: LM Funding, LLC; LMF October 2010 Fund, LLC; REO Management Holdings, LLC (including all 100% owned subsidiary limited liability companies); LM Funding of Colorado, LLC; LM Funding of Washington, LLC; LM Funding of Illinois, LLC; and LMF SPE #2, LLC and various single purpose limited liability corporations owned by REO Management Holdings, LLC which own various properties. It also includes IIU Inc. and its wholly-owned subsidiary; Wallach & Company. All significant intercompany balances have been eliminated in consolidation
Basis of Presentation	Basis of Presentation The consolidated financial statements have been prepared 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”) 606 of the Financial Accounting Standards Board (“FASB”) states an entity needs to conclude at the inception of the contract that collectability of the consideration to which it will be entitled in exchange for the goods and services that will be transferred to the customer is probable. That is, in some circumstances, an entity may not need to assess its ability to collect all of the consideration in the contract. The Company provides funding to Associations by purchasing their rights under delinquent accounts from unpaid assessments due from property owners. Collections on the Accounts may vary greatly in both the timing and amount ultimately recovered compared with the total revenues earned on the Accounts because of a variety of economic and social factors affecting the real estate environment in general . The Company’s contracts with its customers have very specific performance obligations. The Company has determined that the known amount of cash to be realized or realizable on its revenue generating activities cannot be reasonably estimate and as such, classifies its finance receivables as nonaccrual and recognizes revenues in the accompanying statements of income on the cash basis or cost recovery method in accordance with ASC 310-10, Receivables The Company analyzed its remaining revenue streams and concluded there were no changes in revenue recognition with the adoption of the new standard. Under ASC 606, the Company applies the cash basis method to its original product and the cost recovery method to its special product as follows: Finance Receivables—Original Product : Under the Company’s original product, delinquent assessments are funded only up to the Super Lien Amount as discussed above. Recoverability of funded amounts is generally assured because of the protection of the Super Lien Amount. As such, payments by unit owners on the Company’s original product are recorded to income when received in accordance with the provisions of the Florida Statute (718.116(3)) and the provisions of the purchase agreements entered into between the Company and Associations. Those provisions require that all payments be applied in the following order: first to interest, then to late fees, then to costs of collection, then to legal fees expended by the Company and then to assessments owed. In accordance with the cash basis method of recognizing revenue and the provisions of the statute, the Company records revenues for interest and late fees when cash is received. In the event the Company determines the ultimate collectability of amounts funded under its original product are in doubt, payments are applied to first reduce the funded or principal amount. Finance Receivables—Special Product (New Neighbor Guaranty program) : During 2012, the Company began offering associations an alternative product under the program whereby the Company will fund amounts in excess of the Super Lien Amount. Under this special product, the Company purchases substantially all of the delinquent assessments owed to the association, in addition to all accrued interest and late fees, in exchange for payment by the Company of (i) a negotiated amount or (ii) on a going forward basis, all monthly assessments due for a period up to 48 months. Under these arrangements, the Company considers the collection of amounts funded is not assured and under the cost recovery method, cash collected is applied to first reduce the carrying value of the funded or principal amount with any remaining proceeds applied next to interest, late fees, legal fees, collection costs and any amounts due to the Association. Any excess proceeds still remaining are recognized as revenues. If the future proceeds collected are lower than the Company’s funded or principal amount, then a loss is recognized. Net Commission Revenue: The Company acts as an agent in providing health travel insurance policies. As a result, the Company revenue is recorded at net. The Company has determined that the known amount of cash to be realized or realizable on its revenue generating activities can be reasonably estimated and as such, classifies its receivables as accrual and recognizes revenues in the accompanying statements of income on the accrual basis. If a policy is not effective as of the end of a period, then the associated revenue and underwriting costs are deferred until the effective date. The majority of the commission revenue is underwritten by two policy underwriters who pays the Company commissions.
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. However, the Company did have an accrual at December 31, 2019 and 2018, respectively for an allowance for credit losses for this program of $112,027 and $124,359. Under the New Neighbor Guaranty 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; (iii) an association settles an account for less than amounts the Company funded to the Association or (iv) the Association terminates its relationship with the Company’s designated legal counsel. 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 statute of limitations period or whether the deficiency judgment can be sold. If the Company determines that collection through a deficiency judgment or sale of a deficiency judgment is not feasible, the Company writes off the unrecoverable receivable amount. Any losses greater than the recorded allowance will be recognized as expenses. Under the Company’s revenue recognition policies, all finance receivables (original product and special product) are classified as nonaccrual.
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 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 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 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 The Company capitalizes costs incurred to acquire real estate owned properties and any costs incurred to get the units in a condition to be rented. These costs include, but are not limited to, renovation/rehabilitation costs, legal costs, and delinquent taxes. These costs are depreciated over the estimated minimum time period the Company expects to maintain possession of the units. Costs incurred for unencumbered units are depreciated over 20 years and costs for units subject to a first mortgage are depreciated over 3 years. As of December 31, 2019 and 2018, capitalized real estate costs, net of accumulated depreciation, were $21,084 and $122,604, respectively. During the years ended December 31, 2019 and 2018, depreciation expense was $21,444 and $45,577, respectively. 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 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 Association elects (prior to the Company obtaining title through its own election) to maintain ownership and not quitclaim title to the Company, the 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 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, 2019 and 2018, capitalized software costs, net of accumulated amortization, was $nil and $21,951, respectively. Amortization expense for capitalized software costs for the periods ended December 31, 2019 and December 31, 2018 was $21,951 and $23,259, respectively.
Right to Use Assets	Right to Use Assets ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases.
Goodwill	Goodwill Goodwill represents the excess purchase price of acquired businesses over the fair value of the net assets acquired. Goodwill is not amortized, but instead is tested for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. During the year, the Company recorded goodwill of approximately $5.7 milion which represented amounts for the purchase of IIU. For purposes of the 2019 annual test, we will elect to perform a goodwill impairment analysis to assess whether it was more likely than not that the fair value of these reporting units exceeded their respective carrying values. In performing these assessments, management will relay on a number of factors including, but not limited to, macroeconomic conditions, industry and market considerations, cost factors that would have a negative effect on earnings and cash flows, overall financial performance compared with forecasted projections in prior periods, and other relevant reporting unit events, the impact of which are all significant judgments and estimates. This assessment was performed as of December 31, 2019 and showed a $1.65 million impairment due to the sale of IIU on January 8, 2020. The balance of goodwill as of December 31, 2019 and 2018 was approximately $4.1 million and $0, 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. The Company did not have any unamortized debt issue costs at December 31, 2019 or 2018. The Company incurred $291,760 debt issuance costs in 2018. Any costs will be presented in the accompanying condensed consolidated balance sheets as other assets until the loan proceeds are received which at that time will be reclassified as a direct deduction from the carrying amount of that debt liability in accordance with Accounting Standards Update (“ASU”) 2015-03.
Debt Discount	Debt Discount On April 2, 2018, the Company entered into a Securities Purchase Agreement (the “SPA”) with a New York-based family office (“Investor”), which was subsequently amended, pursuant to which the Company issued to Investor a Senior Convertible Promissory Note (the “Note”) in the original principal amount of $500,000 in exchange for a purchase price of $500,000. The maturity date of the Note was six months after the date of issuance (subject to acceleration upon an event of default). The Note carried a 10.5% interest rate, with accrued but unpaid interest being payable on the Note’s maturity date. Investor was also issued pursuant to the SPA five- year warrants exercisable at the closing per share bid price on April 2, 2018 to purchase 40,000 shares of the Company’s common stock (the “Warrants”) (see Note 7. Long Term Debt). The 40,000 warrants were valued on the grant date at approximately $3.87 per warrant or a total relative fair value of $154,676 using a Black-Scholes option pricing model with the following assumptions: stock price of $7.40 per share (based on the quoted trading price on the date of grant), volatility of 100.6%, expected term of 5 years, and a risk-free interest rate of 2.55%. The relative fair value of the warrants ($154,676) was treated as a debt discount that was amortized over 6 months. The amortization of the discount was recognized as interest expense of which $154,676 was recognized for the year ended December 31, 2018. Due to the subsequent issuance of stock and warrants on October 31, 2018, these warrants now represent the right to purchase 143,587 shares of common stock at an exercise price of $1.84 per share. These warrants expire in the year 2023.
Settlement Costs with Associations	Settlement Costs with Associations 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 Association agrees to pay some monetary compensation to the opposing party or judgments against the Associations for fees of opposing legal counsel or other damages awarded by the courts. The Company indemnifies the Association for these costs pursuant to the provisions of the agreement between the Company and the Association. Costs incurred by the Company for these indemnification obligations for the year ended December 31, 2019 and 2018 were $68,188 and $40,027, 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. Under ASC 740-10-30-5, Income Taxes Prior to the Company’s 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 Company’s 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. The Company issued 2,500,000 of common stock at various times during the month of November 2018 and has weighted average these new shares in calculating loss per share for the relevant period. On October 15, 2018, the Company effected a common share consolidation (“Reverse Stock Split”) by means of a one-for-ten (1:10) reverse split of its outstanding common stock, par value $0.001 per share which resulted in a decrease in outstanding common stock to 625,318 shares. The Reverse Stock Split became effective, on October 16, 2018 and the Company’s common stock began trading on The Nasdaq Global Market on a split-adjusted basis on October 16, 2018. The Company has restated all share amounts to reflect the Reverse Stock Split. 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. The anti-dilutive stock based compensation awards consisted of: For the years ended December 31 2019 2018 Stock Options 19,300 19,300 Stock Warrants – number of shares to purchase 2,879,287 2,763,587
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 Statements of Operations 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 13.
Related Party	Related Party ASC 850 - Related Party Disclosures requires disclosure of related party transactions and certain common control relationships. The Company disclosures related party transactions and such transactions are approved by the Company’s Board of Directors. 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.
Non-cash Financing and Investing Activities	Non-cash Financing and Investing Activities During the year ended December 31, 2019 and 2018, the Company acquired unencumbered title to certain properties as a result of foreclosure proceedings. Properties were recorded at fair value less cost to dispose of approximately $0 and $0, respectively. The fair value of these properties was first applied to recover the Company’s initial investment with any remaining proceeds applied to interest, late fees, and other amounts owed by the property owner. During the year ended December 31, 2019, the Company acquired fixed assets of $12,892 through a financing loan.
ROU Assets and Lease Obligation	ROU Assets and Lease Obligation – for the year ended December 31, 2019 the Company acquired $331,477 of ROU lease asset and liability.
Financing of Insurance Premium	Financing of Insurance Premium – the Company financed the purchase of various insurance policies during the year ended December 31, 2019 and 2018 using a $127,000 and $85,000, respectively using a finance agreement.
New Accounting Pronouncements	New Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. ASU 2016-02 requires a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and provides certain practical expedients that companies may elect including those contained in ASU 2018-01, "Leases (Topic 842): Lease Easement Practical Expedient for Transition to Topic 842". This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. The Company adopted on January 1, 2019 and elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The adoption of the policy did not have a cumulative impact on retained earnings. As a result of this ASU, the Company recorded $331,477 of ROU assets and liability in 2019. In June 2018, the FASB issued ASU No. 2018-07 " Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting". The standard simplified the accounting for share-based payments granted to nonemployees for goods and services, therefore guidance on such payments to nonemployees would be mostly aligned with the requirements for share-based payments granted to employees. ASU 2018-07 will be effective for us beginning October 1, 2019, but early adoption is permitted (but no earlier than the adoption date of Topic 606). This guidance is effective for us beginning January 1, 2019. Upon adoption, there was no impact to the Company’s consolidated financial statements Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses We have determined that this will not impact our consolidated financial statements at this time. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Summary of Anti-dilutive Stock Based Compensation Awards	The anti-dilutive stock based compensation awards consisted of: For the years ended December 31 2019 2018 Stock Options 19,300 19,300 Stock Warrants – number of shares to purchase 2,879,287 2,763,587

Finance Receivables - Origina_2

Finance Receivables - Original Product (Tables)	12 Months Ended
	Dec. 31, 2019
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: 2019 2018 Funded during the current year $ 40,000 $ 79,000 1-2 years outstanding 15,000 35,000 2-3 years outstanding 20,000 18,000 3-4 years outstanding 11,000 7,000 Greater than 4 years outstanding 300,000 411,000 Total 386,000 550,000 Reserve for credit losses (112,000 ) (125,000 ) Total $ 274,000 $ 425,000 Number of active units with delinquent assessments 598 826 Amount of outstanding interest and late fees on active units $ 9,167,000 $ 11,268,000

Finance Receivables - Special_2

Finance Receivables - Special Product (New Neighbor Guaranty program) (Tables)	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Schedule of Delinquent Assessments and Accrued Charges	Delinquent assessments and accrued charges under these arrangements as of December 31, are as follows: 2019 2018 Finance receivables, net $ 129,000 $ 237,000 Delinquent assessments 374,000 707,000 Accrued interest and late fees 235,000 465,000 Number of active units with delinquent assessments 31 58

Goodwill and Acquisition (Table

Goodwill and Acquisition (Tables)	12 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Summary of Consideration Paid and Amounts of Identified Assets Acquired and Liabilities Assumed	The following table summarizes the approximate consideration paid and the amounts of the identified assets acquired and liabilities assumed at the acquisition date: January 16, 2019 Total adjusted purchase price $ 4,969,200 Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: Cash 51,300 Prepaid and other current assets 5,200 Profit on purchased policies 14,600 Property, plant and equipment 17,100 Accounts payable (5,100 ) Accrued expenses and other liabilities (62,686 ) Income taxes (28,500 ) Deferred revenue (9,300 ) Debt (703,000 ) Preliminary estimate of the fair value of assets and liabilities assumed (720,386 ) Goodwill $ 5,689,586
Summary of Results of Operations for IIU	The accompanying unaudited pro forma statements of operations presents the accounts of LM Funding and IIU for the twelve - months ended December 31, 2019 and 2018, assuming the acquisition occurred on January 1, 2018: 2019 2018 Revenues: 3,039,956 4,058,363 Net revenue 3,039,956 4,058,363 Operating Expenses: 5,907,644 4,254,141 Operating loss (2,867,688 ) (195,778 ) Gain on disposal of assets (6,421 ) - Other income (23,217 ) Gain on litigation - (405,000 ) Investment income - (34,219 ) Interest expense 142,161 496,594 Loss before income taxes (3,003,428 ) (229,936 ) Income tax expense 274 28,426 Net loss $ (3,003,702 ) $ (258,362 ) Net loss per common share: Basic $ (0.96 ) $ (0.26 ) Diluted (0.96 ) (0.26 ) Weighted average number of common shares outstanding: Basic 3,133,689 996,710 Diluted 3,133,689 996,710

Long-Term Debt and Other Fina_2

Long-Term Debt and Other Financing Arrangements (Tables)	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of Debt	Year ended December 31, 2019 2018 Financing agreement with FlatIron capital that is unsecured. Down payment of $28,125 was required upfront and equal installment payments of $8,701 to be made over a 10 month period. The note matured on May 31, 2019. Annualized interest is 5.99% $ - $ 42,875 Financing agreement with FlatIron capital that is unsecured. Down payment of $19,170 was required upfront and equal installment payments of $11,590 to be made over a 11 month period. The note matures on June 1, 2020. Annualized interest is 6.8% 69,540 - Senior secured convertible note to Craven House Capital North America LLC (Related Party), bearing interest at 3.0%. Note was issued on January 16, 2019 and either matured on either January 14, 2020 or became convertible into 1,436,424 shares of the Company's common stock. The value of the beneficial conversion feature as of January 16, 2019 was zero.* 3,461,782 - Promissory note issued by a financial institution, bearing interest at 9.09%, interest and principal payments due monthly of $323. Note is secured by an automobile and was issued on July 26, 2019 with original borrowings of $12,892. The note matures on August 26, 2023. 11,802 - Promissory note issued by a financial institution, bearing interest at 5.85%, interest and principal payments due monthly of $10,932. Note was issued on May 31, 2018 with original borrowings of $608,000 and subsequent borrowings of $141,000 and repayments of $51,000. The note matures on May 30, 2025 and can be prepaid at any time without penalty. This note is secured by the Company’s inventory, chattel paper, accounts, equipment and general intangible intangibles and deposit accounts. 606,454 $ 4,149,578 $ 42,875
Schedule of Principal Payments of Debt	Minimum required principal payments on the Company’s debt as of December 31, 2019 are as follows : Years Ending December 31, 2020 $ 3,631,994 2021 107,013 2022 113,648 2023 119,090 2024 177,833 $ 4,149,578

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Summary of Supplemental Balance Sheet Information Related to Operating Leases	The following table presents supplemental balance sheet information related to operating leases as of December 31, 2019 : Balance Sheet Line Item 2019 Assets ROU assets Right of use asset, net $ 260,260 Total lease assets $ 260,260 Liabilities Current lease liabilities Lease liability $ 94,235 Long-term lease liabilities Lease liability 171,648 Total lease liabilities $ 265,883 Weighted-average remaining lease term (in years) 2.6 Weighted-average discount rate 6.55 %
Summary of Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases	The following table presents supplemental cash flow information and non-cash activity related to operating leases for the twelve months ended December 31, 2019: Operating Leases Operating cash flow information Cash paid for amounts included in the measurement of lease liabilities $ 44,765 Non-cash activity: ROU assets obtained in exchange for lease liabilities (lease cancelled) 26,685 ROU assets obtained in exchange for lease liabilities 304,792 Total ROU assets obtained in exchange for lease liabilities 331,477
Schedule of Future Minimum Lease Payment Due	The following table presents maturities of operating lease liabilities on an undiscounted basis as of December 31, 2019: Operating Leases 2020 94,235 2021 103,646 2022 68,002 265,883

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Components of Provision for Income Taxes	Significant components of the tax expense (benefit) recognized in the accompanying consolidated statements of operations for the years ended December 31, 2019 and December 31, 2018) are as follows: Year Ended Year Ended December 31, 2019 December 31, 2018 Current tax benefit Federal $ (426,931 ) $ (222,603 ) State (88,334 ) (46,058 ) Total current tax benefit (515,265 ) (268,661 ) Deferred tax expense 84,015 685,416 Valuation allowance (expense) 431,250 (416,755 ) Income tax (reduction) benefit $ - $ -
Schedule of Reconciliation of Tax Provision with Expected Provision	The reconciliation of the income tax computed at the combined federal and state statutory rate of 25.3% for the year ended December 31, 2019 and 25.3% for the year ended December 31, 2018 to the income tax benefit is as follows: Year Ended December 31, Year Ended December 31, 2019 2019 2018 2018 Benefit on net loss $ (849,700 ) 28.3 % $ 413,361 (87.5 )% Nondeductible expenses 418,450 -13.9 % 3,394 (0.7 )% Valuation allowance (expense) 431,250 (14.4 )% (416,755 ) 88.2 % Other items - 0.0 % - 0.0 % Tax benefit/effective rate $ - 0.0 % $ - 0.0 %
Components of Deferred Tax Assets and Liabilities	The significant components of the Company’s deferred tax liabilities and assets as of December 31, 2019 and December 31, 2018 are as follows: As of December 31, 2019 2018 Deferred tax liabilities: Tax expense for internally developed software $ 4,081 $ 9,976 Tax depreciation in excess of book 1,029 4,975 Total deferred tax liabilities 5,110 14,951 Deferred tax assets: Loss carryforwards 2,759,806 2,156,428 Step up in basis at contribution to C-Corp 682,231 853,410 Stock option expense 89,295 87,056 Step up in basis - purchase of non-controlling interest 54,597 59,243 Allowance for credit losses 33,466 41,849 Accrued liabilities 20,572 20,572 Total deferred tax asset 3,639,967 3,218,558 Valuation allowance (3,634,857 ) (3,203,607 ) Net deferred tax asset $ - $ -

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Summary of Stock Warrants	Stock Warrants The following is a summary of the stock warrant plan activity during the years ended December 31, 2019 and 2018: 2019 2018 Number of Warrants Weighted Average Exercise Price Number of Warrants Weighted Average Exercise Price Warrants Outstanding at Beginning of the year 3,843,587 $5.53 1,200,000 $12.50 Granted 125,000 2.64 2,643,587 2.37 Exercised 9,300 2.40 - - Adjustment - - - - Forfeited - - - - Warrants Outstanding and Exercisable at End of Year 3,959,287 $5.45 3,843,587 $5.53
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: 2018 Risk-free rate 2.65 % Expected life 6 years Expected volatility 108.00 % Expected dividend —
Summary of Stock Option Plan Activity	The following is a summary of the stock option plan activity during the years ended December 31, 2019 and 2018: 2019 2018 Number of Weighted Average Number of Weighted Average Options Exercise Price Options Exercise Price Options Outstanding at Beginning of the year 19,300 $ 57.91 11,290 $ 111.07 Granted - - 10,000 10.00 Exercised - - - - Adjustment - - 1,010 125.00 Forfeited - - (3,000 ) 120.83 Options Outstanding at End of Year 19,300 $ 60.51 19,300 $ 57.91 Options Exercisable at End of Year 11,800 $ 84.49 6,630 $ 105.68

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2019
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 2019 and 2018 are as follows: 2019 2018 Carrying Fair Carrying Fair Amount Value Amount Value Finance receivables: Original product $ 274,000 $ 2,995,000 $ 425,000 $ 4,005,000 Special product, net of allowance (1) 129,000 300,000 237,000 543,000 (1) New Neighbor Guaranty program

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional information (Detail)

Jan. 10, 2020USD ($)

Jan. 08, 2020USD ($)

Jan. 16, 2019USD ($)

Jan. 15, 2019USD ($)

Nov. 02, 2018USD ($)

Oct. 31, 2018$ / sharesshares

Oct. 15, 2018$ / sharesshares

Apr. 02, 2018USD ($)$ / sharesshares

Jan. 31, 2019USD ($)

Dec. 31, 2019USD ($)Ownership$ / shares$ / Assessmentshares

Dec. 31, 2018USD ($)$ / sharesshares

Dec. 31, 2014

Mar. 23, 2020

Nov. 30, 2018shares

Oct. 16, 2018shares

Oct. 14, 2018shares

Summary Of Significant Accounting Policies [Line Items]

Goodwill

$ 4,039,586

Capitalized real estate costs, net of accumulated depreciation

21,084

$ 122,604

Depreciation expense

21,444

45,577

Operating lease, payments

44,765

Impairment of goodwill

1,650,000

Debt issuance costs incurred

291,760

Principal amount

4,149,578

Settlement costs with associations

68,188

40,027

Valuation allowance deferred tax assets

$ 3,634,857

$ 3,203,607

Common stock, shares issued | shares

3,134,261

3,124,961

2,500,000

Reverse stock split, description

one-for-ten

one-for-ten

Reverse stock split, conversion ratio

0.1

Common stock, par value | $ / shares

$ 0.001

$ 1

$ 1

Common stock, shares outstanding | shares

625,318

3,134,261

3,124,961

625,318

6,253,189

Right of use lease asset and liability

$ 331,477

Purchase of insurance policies

127,000

$ 85,000

Financing loan [Member]

Summary Of Significant Accounting Policies [Line Items]

Fixed assets acquired

12,892

Stock Warrants [Member]

Summary Of Significant Accounting Policies [Line Items]

Common stock shares issuable upon exercise of warrants | shares

143,587

40,000

Warrants, price per share | $ / shares

$ 1.84

$ 6.605

Warrants right to purchase | shares

143,587

Warrants expire year

2023

ASU 2016-02 [Member]

Summary Of Significant Accounting Policies [Line Items]

Right of use asset, net

260,260

Amortization expense for right to use assets

51,809

Operating lease, payments

$ 45,615

Special Product [Member]

Summary Of Significant Accounting Policies [Line Items]

Delinquent assessments maximum due period purchases basis

48 months

Original Product [Member]

Summary Of Significant Accounting Policies [Line Items]

Allowance for credit losses

$ 112,000

125,000

Minimum [Member]

Summary Of Significant Accounting Policies [Line Items]

Estimated useful lives

20 years

Minimum [Member] | First Mortgage [Member]

Summary Of Significant Accounting Policies [Line Items]

Estimated useful lives

3 years

Subsequent Event [Member]

Summary Of Significant Accounting Policies [Line Items]

Impairment of goodwill

$ 1,650,000

Debt instrument, interest rate percentage

86.50%

IIU Inc. [Member]

Summary Of Significant Accounting Policies [Line Items]

Purchase price

$ 4,969,200

Net fair value of assets

720,386

Goodwill

5,689,586

$ 5,700,000

Goodwill impairment

$ 1,650,000

Impairment of goodwill

$ 4,100,000

0

IIU Inc. [Member] | Subsequent Event [Member]

Summary Of Significant Accounting Policies [Line Items]

Impairment of goodwill

$ 1,650,000

Stock Purchase Agreement [Member] | Craven House Capital North America LLC [Member] | Subsequent Event [Member]

Summary Of Significant Accounting Policies [Line Items]

Sale of stock under agreement

3,562,569

Stock Purchase Agreement [Member] | Craven House Capital North America LLC [Member] | Senior Convertible Promissory Notes [Member]

Summary Of Significant Accounting Policies [Line Items]

Proceeds from issuance of debt funded in repurchase and cancellation of debt

$ 3,461,782

Forgave amount accrued interest

100,787

Securities Purchase Agreement [Member]

Summary Of Significant Accounting Policies [Line Items]

Common stock shares issuable upon exercise of warrants | shares

40,000

Warrants, price per share | $ / shares

$ 3.87

Fair value of warrants

$ 154,676

Securities Purchase Agreement [Member] | Stock Warrants [Member]

Summary Of Significant Accounting Policies [Line Items]

Stock price | $ / shares

$ 7.40

Debt discount, amortization period

6 months

Interest expense

154,676

Securities Purchase Agreement [Member] | Volatility [Member] | Stock Warrants [Member]

Summary Of Significant Accounting Policies [Line Items]

Warrants, assumptions

100.6

Securities Purchase Agreement [Member] | Expected Term [Member] | Stock Warrants [Member]

Summary Of Significant Accounting Policies [Line Items]

Warrants, assumptions

5

Securities Purchase Agreement [Member] | Risk-free Interest Rate [Member] | Stock Warrants [Member]

Summary Of Significant Accounting Policies [Line Items]

Warrants, assumptions

2.55

Securities Purchase Agreement [Member] | IIU Inc. [Member]

Summary Of Significant Accounting Policies [Line Items]

Purchase price

$ 5,089,357

$ 5,089,357

Securities Purchase Agreement [Member] | IIU Inc. [Member] | Subsequent Event [Member]

Summary Of Significant Accounting Policies [Line Items]

Net fair value of assets

(720,386)

Principal amount

$ 4,969,200

Securities Purchase Agreement [Member] | Senior Convertible Promissory Notes [Member]

Summary Of Significant Accounting Policies [Line Items]

Principal amount

$ 1,500,000

Purchase price of notes issued

$ 1,500,000

Debt instrument term

360 days

Debt instrument, interest rate percentage

3.00%

Subsidiaries [Member]

Summary Of Significant Accounting Policies [Line Items]

Number of members | Ownership

2

Maximum statutory delinquent assessments rate

18.00%

Maximum administrative late fees | $ / Assessment

25

Percentage of maximum administrative late fees on delinquent assessment

5.00%

Minimum acquisition cost that requires capitalization to fixed assets

$ 500

Capitalized software costs, net of accumulated amortization

21,951

Amortization expense for capitalized software costs

21,951

23,259

Unamortized debt issue costs

0

0

Debt issuance costs incurred

291,760

Settlement costs with associations

68,188

40,027

Fair value of properties

$ 0

0

Subsidiaries [Member] | Capitalized Software [Member]

Summary Of Significant Accounting Policies [Line Items]

Estimated useful life

5 years

Subsidiaries [Member] | HealthCare Abroad [Member]

Summary Of Significant Accounting Policies [Line Items]

Age limit

84 years

Subsidiaries [Member] | HealthCare Global [Member]

Summary Of Significant Accounting Policies [Line Items]

Age limit

70 years

Subsidiaries [Member] | HealthCare America [Member]

Summary Of Significant Accounting Policies [Line Items]

Age limit

70 years

Subsidiaries [Member] | HealthCare International [Member]

Summary Of Significant Accounting Policies [Line Items]

Age limit

70 years

Subsidiaries [Member] | HealthCare War [Member]

Summary Of Significant Accounting Policies [Line Items]

Age limit

70 years

Subsidiaries [Member] | Special Product [Member]

Summary Of Significant Accounting Policies [Line Items]

Delinquent assessments maximum due period purchases basis

48 months

Allowance for credit losses

$ 20,016

40,758

Subsidiaries [Member] | Original Product [Member]

Summary Of Significant Accounting Policies [Line Items]

Allowance for credit losses

$ 112,027

$ 124,359

Subsidiaries [Member] | Maximum [Member] | Furniture [Member]

Summary Of Significant Accounting Policies [Line Items]

Estimated useful lives

5 years

Subsidiaries [Member] | Maximum [Member] | Computer [Member]

Summary Of Significant Accounting Policies [Line Items]

Estimated useful lives

5 years

Subsidiaries [Member] | Maximum [Member] | Office Equipment [Member]

Summary Of Significant Accounting Policies [Line Items]

Estimated useful lives

5 years

Subsidiaries [Member] | Maximum [Member] | HealthCare Global [Member]

Summary Of Significant Accounting Policies [Line Items]

Coverage period

6 months

Subsidiaries [Member] | Maximum [Member] | HealthCare America [Member]

Summary Of Significant Accounting Policies [Line Items]

Coverage period

90 days

Subsidiaries [Member] | Maximum [Member] | HealthCare War [Member]

Summary Of Significant Accounting Policies [Line Items]

Coverage period

6 months

Subsidiaries [Member] | Minimum [Member] | Furniture [Member]

Summary Of Significant Accounting Policies [Line Items]

Estimated useful lives

3 years

Subsidiaries [Member] | Minimum [Member] | Computer [Member]

Summary Of Significant Accounting Policies [Line Items]

Estimated useful lives

3 years

Subsidiaries [Member] | Minimum [Member] | Office Equipment [Member]

Summary Of Significant Accounting Policies [Line Items]

Estimated useful lives

3 years

Subsidiaries [Member] | Securities Purchase Agreement [Member]

Summary Of Significant Accounting Policies [Line Items]

Term of warrants issued

5 years

Common stock shares issuable upon exercise of warrants | shares

40,000

Subsidiaries [Member] | Securities Purchase Agreement [Member] | Senior Convertible Promissory Notes [Member]

Summary Of Significant Accounting Policies [Line Items]

Principal amount

$ 500,000

Purchase price of notes issued

$ 500,000

Debt instrument term

6 months

Debt instrument, interest rate percentage

10.50%

REO Management Holdings, LLC [Member] | Maximum [Member] | Subsidiary Limited Liability [Member]

Summary Of Significant Accounting Policies [Line Items]

Percentage of ownership in subsidiary limited liability companies

100.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Summary of Anti-dilutive Stock Based Compensation Awards (Detail) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive stock based compensation awards	19,300	19,300
Stock Warrants - Number of Shares to Purchase [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive stock based compensation awards	2,879,287	2,763,587

Finance Receivables - Origina_3

Finance Receivables - Original Product - Schedule of Finance Receivables for Original Product (Detail) - Original Product [Member]	12 Months Ended
	Dec. 31, 2019USD ($)Unit	Dec. 31, 2018USD ($)Unit
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	$ 386,000	$ 550,000
Reserve for credit losses	(112,000)	(125,000)
Finance receivables, net	$ 274,000	$ 425,000
Number of active units with delinquent assessments | Unit	598	826
Amount of outstanding interest and late fees on active units	$ 9,167,000	$ 11,268,000
Funded During The Current Year [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	40,000	79,000
1-2 Years Outstanding [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	15,000	35,000
2-3 Years Outstanding [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	20,000	18,000
3-4 Years Outstanding [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	11,000	7,000
Greater Than 4 Years Outstanding [Member]
Accounts Notes And Loans Receivable [Line Items]
Finance receivables outstanding	$ 300,000	$ 411,000

Finance Receivables - Special_3

Finance Receivables - Special Product (New Neighbor Guaranty program) - Additional Information (Detail) - Special Product [Member]	12 Months Ended
	Dec. 31, 2019USD ($)
Accounts Notes And Loans Receivable [Line Items]
Delinquent assessments maximum due period purchases basis	48 months
Maximum future contingent payments	$ 36,000

Finance Receivables - Special_4

Finance Receivables - Special Product (New Neighbor Guaranty program) - Schedule of Delinquent Assessments and Accrued Charges (Detail) - Special Product [Member]	12 Months Ended
	Dec. 31, 2019USD ($)Unit	Dec. 31, 2018USD ($)Unit
Accounts Notes And Loans Receivable [Line Items]
Finance receivables, net	$ 129,000	$ 237,000
Delinquent assessments	374,000	707,000
Accrued interest and late fees	$ 235,000	$ 465,000
Number of active units with delinquent assessments | Unit	31	58

New Neighbor Guaranty Allowan_2

New Neighbor Guaranty Allowance for Credit Losses - Additional Information (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
New Neighbor Guaranty [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for credit losses	$ 20,000	$ 41,000

Real Estate Assets Owned - Addi

Real Estate Assets Owned - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019USD ($)Property	Dec. 31, 2018USD ($)Property
Real Estate [Abstract]
Real estate assets owned	$ 21,084	$ 122,604
Number of units in real estate assets owned | Property	1	1
Number of units, net of disposals in real estate assets owned capitalized | Property	0	0
Real estate assets owned capitalized at fair value less cost for disposal	$ 0	$ 0
Real estate portfolio, number of units | Property	20	20
Number of units sold | Property	23	27
Proceeds from sale of units	$ 190,000	$ 196,000
Gain or loss on disposal of real estate assets	0	0
Rental revenues	227,000	513,000
Net of cost recovery	0	10,000
Monthly contingent obligation for assessments due to associations	$ 7,000	$ 9,000

Goodwill and Acquisition - Addi

Goodwill and Acquisition - Additional Information (Details) - USD ($)	Mar. 23, 2020	Jan. 10, 2020	Jan. 08, 2020	Apr. 15, 2019	Jan. 16, 2019	Jan. 15, 2019	Nov. 02, 2018	Jan. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Principal amount									$ 4,149,578
Net cash received from business acquisition									51,327
Impairment of goodwill									1,650,000
Net commission revenue									639,815
Operating Expenses:									5,894,526	$ 3,801,885
Interest expense									142,161	464,811
Subsequent Event [Member]
Business Acquisition [Line Items]
Debt instrument, interest rate percentage	86.50%
Impairment of goodwill		$ 1,650,000
IIU Inc. [Member]
Business Acquisition [Line Items]
Purchase price								$ 4,969,200
Impairment of goodwill									4,100,000	$ 0
Net commission revenue									639,815
Operating Expenses:									386,968
Interest expense									$ 39,522
IIU Inc. [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Impairment of goodwill			$ 1,650,000
Securities Purchase Agreement [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Denominator for conversion of convertible note to restricted common shares	$ 2.40
Securities Purchase Agreement [Member] | IIU Inc. [Member]
Business Acquisition [Line Items]
Percentage of stock purchased					100.00%	100.00%
Purchase price					$ 5,089,357	$ 5,089,357
Securities Purchase Agreement [Member] | IIU Inc. [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Principal amount			$ 4,969,200
Securities Purchase Agreement [Member] | Senior Convertible Promissory Notes [Member]
Business Acquisition [Line Items]
Ownership excluding unexercised warrants percentage							20.00%
Principal amount							$ 1,500,000
Purchase price of notes issued							$ 1,500,000
Debt instrument term							360 days
Debt instrument, interest rate percentage							3.00%
Promissory Notes [Member] | IIU Inc. [Member]
Business Acquisition [Line Items]
Extinguishment of principal indebtedness and accrued interest					$ 1,507,375
Convertible Promissory Note [Member] | IIU Inc. [Member]
Business Acquisition [Line Items]
Debt instrument term				12 months	360 days
Debt instrument, interest rate percentage					3.00%
Extinguishment of principal indebtedness and accrued interest					$ 1,500,000
Face amount of debt instrument					$ 3,581,982
Denominator for conversion of convertible note to restricted common shares					$ 2.41
Debt instrument reduced amount					$ 120,200

Goodwill and Acquisition - Summ

Goodwill and Acquisition - Summary of Consideration Paid and Amounts of Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)	Jan. 16, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill (Note 6)		$ 4,039,586
IIU, Inc and Wallach and Company [Member]
Business Acquisition [Line Items]
Total adjusted purchase price	$ 4,969,200
Cash	51,300
Prepaid and other current assets	5,200
Profit on purchased policies	14,600
Property, plant and equipment	17,100
Accounts payable	(5,100)
Accrued expenses and other liabilities	(62,686)
Income taxes	(28,500)
Deferred revenue	(9,300)
Debt	(703,000)
Preliminary estimate of the fair value of assets and liabilities assumed	(720,386)
Goodwill (Note 6)	$ 5,689,586

Goodwill and Acquisition - Su_2

Goodwill and Acquisition - Summary of Results of Operations for IIU (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Revenues:	$ 3,025,388	$ 3,389,537
Operating Expenses:	(5,894,526)	(3,801,885)
Operating loss	(2,869,138)	(412,348)
Gain on disposal of assets	(6,421)
Gain on litigation		(405,000)
Interest expense	142,161	464,811
Loss before income taxes	(3,004,878)	(472,159)
Net loss to common stockholders	$ (3,004,878)	$ (472,159)
Loss per share attributable to the stockholders of LM Funding America, Inc.
Basic	$ (0.96)	$ (0.47)
Diluted	$ (0.96)	$ (0.47)
Weighted average number of common shares outstanding
Basic	3,133,689	996,710
Diluted	3,133,689	996,710
L M Funding And I I U Inc [Member]
Business Acquisition [Line Items]
Revenues:	$ 3,039,956	$ 4,058,363
Net revenue	3,039,956	4,058,363
Operating Expenses:	5,907,644	4,254,141
Operating loss	(2,867,688)	(195,778)
Gain on disposal of assets	(6,421)
Other income		(23,217)
Gain on litigation		(405,000)
Investment income		(34,219)
Interest expense	142,161	496,594
Loss before income taxes	(3,003,428)	(229,936)
Income tax expense	274	28,426
Net loss to common stockholders	$ (3,003,702)	$ (258,362)
Loss per share attributable to the stockholders of LM Funding America, Inc.
Basic	$ (0.96)	$ (0.26)
Diluted	$ (0.96)	$ (0.26)
Weighted average number of common shares outstanding
Basic	3,133,689	996,710
Diluted	3,133,689	996,710

Long-Term Debt and Other Fina_3

Long-Term Debt and Other Financing Arrangements - Schedule of Debt (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Notes payable	$ 4,149,578	$ 42,875
Financing agreement with FlatIron capital maturing in May 31, 2019 [Member]
Debt Instrument [Line Items]
Notes payable		$ 42,875
Financing agreement with FlatIron capital maturing in June 1, 2020 [Member]
Debt Instrument [Line Items]
Notes payable	69,540
Convertible Senior Note [Member]
Debt Instrument [Line Items]
Notes payable	3,461,782
Promissory note issued by a financial institution maturing in August 26, 2023 [Member]
Debt Instrument [Line Items]
Notes payable	11,802
Promissory note issued by a financial institution maturing in May 30, 2025 [Member]
Debt Instrument [Line Items]
Notes payable	$ 606,454

Long-Term Debt and Other Fina_4

Long-Term Debt and Other Financing Arrangements - Schedule of Debt (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2019USD ($)shares
Debt Instrument [Line Items]
Principal amount	$ 4,149,578
Financing agreement with FlatIron capital maturing in May 31, 2019 [Member]
Debt Instrument [Line Items]
Down payment for note payable	28,125
Debt instrument, periodic payment	$ 8,701
Debt instrument due period	10 months
Debt instrument, maturity date	May 31, 2019
Debt instrument, interest rate percentage	5.99%
Financing agreement with FlatIron capital maturing in June 1, 2020 [Member]
Debt Instrument [Line Items]
Down payment for note payable	$ 19,170
Debt instrument, periodic payment	$ 11,590
Debt instrument due period	11 months
Debt instrument, maturity date	Jun. 1, 2020
Debt instrument, interest rate percentage	6.80%
Convertible Senior Note [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Jan. 14, 2020
Debt instrument, interest rate percentage	3.00%
Debt instrument, issuance date	Jan. 16, 2019
Debt instrument, to be converted shares | shares	1,436,424
Debt instrument, convertible, beneficial conversion feature	$ 0
Promissory note issued by a financial institution maturing in August 26, 2023 [Member]
Debt Instrument [Line Items]
Debt instrument, periodic payment	$ 323
Debt instrument, maturity date	Aug. 26, 2023
Debt instrument, interest rate percentage	9.09%
Debt instrument, issuance date	Jul. 26, 2019
Principal amount	$ 12,892
Promissory Notes [Member]
Debt Instrument [Line Items]
Debt instrument, periodic payment	$ 10,932
Debt instrument, maturity date	May 30, 2025
Debt instrument, interest rate percentage	5.85%
Debt instrument, issuance date	May 31, 2018
Principal amount	$ 608,000
Subsequent borrowings	141,000
Repayments	$ 51,000

Long-Term Debt and Other Fina_5

Long-Term Debt and Other Financing Arrangements - Additional Information (Detail) - USD ($)	Jan. 08, 2020	Nov. 02, 2018	Oct. 05, 2018
Common Stock Purchase Agreement [Member]
Debt Instrument [Line Items]
Commitment fee paid		$ 200,000
Securities Purchase Agreement [Member] | Senior Convertible Promissory Notes [Member]
Debt Instrument [Line Items]
Repayments of notes payable including accrued interest			$ 500,000
Stock Purchase Agreement [Member] | Senior Convertible Promissory Notes [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Repayments of IIU pursuant to the terms of the craven SPA	$ 3,500,000

Long-Term Debt and Other Fina_6

Long-Term Debt and Other Financing Arrangements - Schedule of Principal Payments of Debt (Detail)	Dec. 31, 2019USD ($)
Debt Instruments [Abstract]
2020	$ 3,631,994
2021	107,013
2022	113,648
2023	119,090
2024	177,833
Principal amount	$ 4,149,578

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loss Contingencies [Line Items]
Operating lease remaining lease term	2 years 7 months 6 days
Lease expiration period	37 months
Operating lease discount rate	6.50%
Operating lease beginning date	Mar. 1, 2014
Operating lease ending date	Jul. 31, 2019
Rent expense	$ 186,609	$ 108,000
Accrued costs of Settlement Agreement		100,000	$ 505,000
Reimburse to Plaintiff's opposing counsel		99,000
Litigation settlement agreement, gain recorded to		$ 405,000
New Office Lease [Member]
Loss Contingencies [Line Items]
Operating lease beginning date	Jul. 15, 2019
Operating lease ending date	Jul. 31, 2022
Business Law Group [Member]
Loss Contingencies [Line Items]
Sublease Income	$ 4,900
Minimum [Member]
Loss Contingencies [Line Items]
Operating lease remaining lease term	1 year
Maximum [Member]
Loss Contingencies [Line Items]
Operating lease remaining lease term	3 years

Commitments and Contingencies_2

Commitments and Contingencies - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Detail)	Dec. 31, 2019USD ($)
Assets And Liabilities Lessee [Abstract]
ROU assets	$ 260,260
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OperatingLeaseRightOfUseAsset
Current lease liabilities	$ 94,235
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OperatingLeaseLiability
Long-term lease liabilities	$ 171,648
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OperatingLeaseLiability
Total lease liabilities	$ 265,883
Weighted-average remaining lease term (in years)	2 years 7 months 6 days
Weighted-average discount rate	6.55%

Commitments and Contingencies_3

Commitments and Contingencies - Summary of Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases (Detail)	12 Months Ended
	Dec. 31, 2019USD ($)
Operating cash flow information
Cash paid for amounts included in the measurement of lease liabilities	$ 44,765
Non-cash activity:
ROU assets obtained in exchange for lease liabilities (lease cancelled)	26,685
ROU assets obtained in exchange for lease liabilities	304,792
Total ROU assets obtained in exchange for lease liabilities	$ 331,477

Commitments and Contingencies_4

Commitments and Contingencies - Schedule of Future Minimum Lease Payment Due (Detail)	Dec. 31, 2019USD ($)
Commitments And Contingencies Disclosure [Abstract]
2020	$ 94,235
2021	103,646
2022	68,002
Total future minimum lease payments due	$ 265,883

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Loss Carryforwards [Line Items]
Valuation allowance	$ 3,634,857	$ 3,203,607
Combined federal and state statutory rate	25.30%	25.30%
U.S. and Various State Authorities [Member]
Operating Loss Carryforwards [Line Items]
Taxe examination, year under examination	2016 2016 2017 2018 2019
Predecessor [Member]
Operating Loss Carryforwards [Line Items]
Net deferred tax asset					$ 91,068
Redemption consideration, taxable gain					5,250,000
Fresh-start adjustment, increase in equity					1,970,000
Predecessor [Member] | Federal [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 2,033,000	$ 1,408,000	$ 2,977,000	$ 3,850,000	$ 512,000
Net operating loss carryforwards expiration period			2037	2036	2035

Income Taxes - Components of Pr

Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Current tax benefit
Federal	$ (426,931)	$ (222,603)
State	(88,334)	(46,058)
Total current tax benefit	(515,265)	(268,661)
Deferred tax expense	84,015	685,416
Valuation allowance (expense)	$ 431,250	$ (416,755)

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation of Tax Provision with Expected Provision (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Benefit on net loss	$ (849,700)	$ 413,361
Nondeductible expenses	418,450	3,394
Valuation allowance (expense)	$ 431,250	$ (416,755)
Benefit on net loss, percentage	28.30%	(87.50%)
Nondeductible expenses, percentage	(13.90%)	(0.70%)
Valuation allowance (expense), percentage	(14.40%)	88.20%
Other items, percentage	0.00%	0.00%
Tax benefit/effective rate, percentage	0.00%	0.00%

Income Taxes - Components of De

Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Deferred tax liabilities:
Tax expense for internally developed software	$ 4,081	$ 9,976
Tax depreciation in excess of book	1,029	4,975
Total deferred tax liabilities	5,110	14,951
Deferred tax assets:
Loss carryforwards	2,759,806	2,156,428
Stock option expense	89,295	87,056
Step up in basis - purchase of non-controlling interest	54,597	59,243
Allowance for credit losses	33,466	41,849
Accrued liabilities	20,572	20,572
Total deferred tax asset	3,639,967	3,218,558
Valuation allowance	(3,634,857)	(3,203,607)
C Corporation [Member]
Deferred tax assets:
Step up in basis at contribution	$ 682,231	$ 853,410

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail)	Oct. 31, 2018USD ($)$ / sharesshares	Oct. 15, 2018USD ($)$ / sharesshares	May 29, 2018USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares	Oct. 16, 2018shares	Oct. 14, 2018shares	Apr. 02, 2018$ / sharesshares	Dec. 31, 2017USD ($)	Oct. 23, 2015$ / sharesshares
Class Of Stock [Line Items]
Proceeds from exercise of warrants | $				$ 22,320
Reverse stock split, description		one-for-ten		one-for-ten
Reverse stock split, conversion ratio		0.1
Common stock, par value | $ / shares		$ 0.001		$ 1	$ 1
Common stock, shares outstanding		625,318		3,134,261	3,124,961	625,318	6,253,189
Buyback of treasury share		357
Value of treasury shares repurchased | $		$ 1,894
Common stock issued	2,500,000
Proceeds from issuance of common stock | $	$ 5,200,000				$ 5,206,273
Offering costs | $	$ 200,000
Number of options granted					10,000
Weighted average exercise price of options | $ / shares					$ 10
Options granted, weighted average grant date fair value | $ / shares					$ 4.68
Recognized compensation expense of stock options | $				$ 9,000	$ 25,000
Share-based compensation arrangement by share-based payment award				0
Remaining unrecognized compensation cost | $				$ 18,000	$ 32,000
Stock options remaining life, years				6 years	7 years
Aggregate intrinsic value of outstanding common stock options | $				$ 0	$ 0
Options Issued Prior to 2017 [Member]
Class Of Stock [Line Items]
Recognized compensation expense of stock options | $				$ 9,000	$ 18,800
Employee Two [Member]
Class Of Stock [Line Items]
Number of options granted			10,000
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
Options granted, weighted average grant date fair value | $ / shares			$ 4.68
Recognized compensation expense of stock options | $			$ 35,000
Stock Warrants [Member]
Class Of Stock [Line Items]
Number of warrants, excercised				9,300
Warrants issued to purchase of common stock	143,587							40,000
Warrants issued to purchase of common stock average exercise price per share | $ / shares	$ 1.84							$ 6.605
Warrants, year of expiration				2023
Warrants, average remaining life				3 years 3 months
Common stock shares issuable upon exercise of warrants	143,587							40,000
Warrants, price per share | $ / shares	$ 1.84							$ 6.605
Stock Warrants [Member] | Initial Public Offering [Member]
Class Of Stock [Line Items]
Reverse stock split, description					one-tenth
Warrants issued to purchase of common stock										1,200,000
Warrants issued to purchase of common stock average exercise price per share | $ / shares					$ 12.50					$ 12.50
Warrants, weighted average price | $ / shares										$ 12.50
Warrants, weighted average remaining life				11 months 8 days	1 year 9 months 21 days
Warrants, year of expiration				2020
Warrants, aggregate intrinsic value outstanding | $				$ 0					$ 0
Common stock shares issuable upon exercise of warrants										1,200,000
Warrants, price per share | $ / shares					$ 12.50					$ 12.50
Stock Warrants [Member] | Secondary Offering [Member]
Class Of Stock [Line Items]
Warrants issued to purchase of common stock	2,500,000
Warrants issued to purchase of common stock average exercise price per share | $ / shares	$ 2.40
Warrants, year of expiration	2023
Warrants, average remaining life				3 years 9 months 18 days
Common stock shares issuable upon exercise of warrants	2,500,000
Warrants, price per share | $ / shares	$ 2.40
Additional Warrants [Member] | Secondary Offering [Member]
Class Of Stock [Line Items]
Warrants issued to purchase of common stock	125,000
Warrants issued to purchase of common stock average exercise price per share | $ / shares	$ 2.64
Common stock shares issuable upon exercise of warrants	125,000
Warrants, price per share | $ / shares	$ 2.64
Warrants expiration date	May 2, 2022

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock Warrants (Detail) - Stock Warrants [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Class Of Warrant Or Right [Line Items]
Number of Warrants, beginning balance	3,843,587	1,200,000
Number of warrants, granted	125,000	2,643,587
Number of warrants, excercised	9,300
Number of warrants, ending banlance	3,959,287	3,843,587
Weighted Average Exercise Price, beginning balance	$ 5.53	$ 12.50
Weighted Average Exercise Price, granted	2.64	2.37
Weighted Average Exercise Price, excercised	2.40
Weighted Average Exercise Price, ending balance	$ 5.45	$ 5.53

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, 2018
Equity [Abstract]
Risk-free rate	2.65%
Expected life	6 years
Expected volatility	108.00%

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Stock Option Plan Activity (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Number of Options
Number of Options, Outstanding at Beginning of the year	19,300	11,290
Number of Options, Granted		10,000
Number of Options, Exercised
Number of Options, Adjustment		1,010
Number of Options, Forfeited		(3,000)
Number of Options, Outstanding at End of Year	19,300	19,300
Number of Options, Exercisable at End of Year	11,800	6,630
Weighted Average Exercise Price
Weighted Average Exercise Price, Outstanding at Beginning Balance	$ 57.91	$ 111.07
Weighted Average Exercise Price, Granted		10
Weighted Average Exercise Price, Exercised
Weighted Average Exercise Price, Adjustment		125
Weighted Average Exercise Price, Forfeited		120.83
Weighted Average Exercise Price, Outstanding at Ending Balance	60.51	57.91
Weighted Average Exercise Price, Exercisable	$ 84.49	$ 105.68

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail)	Jan. 02, 2017USD ($)$ / Unit	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Subsidiaries [Member]
Related Party Transaction [Line Items]
Recoveries incurred		$ 221,000	$ 278,000
Collection from property owners		1,052,000	984,000
Business Law Group [Member]
Related Party Transaction [Line Items]
Monthly payment for cases	$ 82,000
Minimum fee paid per unit | $ / Unit	700
Receivables from property owners ultimately payable to law firm		1,883,000	2,753,000
Reserve balance due to related parties				$ 1,400,000
Receivable from related party		152,800	25,500
Repayment received from related party				$ 252,771
Amount written-off regained		190,000
Payments of additional compensation		150,000
Business Law Group [Member] | Out of Pocket Collection Costs [Member]
Related Party Transaction [Line Items]
Expenses incurred by company		203,000	297,000
Skyway Capital Markets [Member]
Related Party Transaction [Line Items]
Total fees received for providing fairness opinion		125,000
Fees received for providing fairness opinion		$ 110,000	$ 15,000
Skyway Capital Markets [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Percentage of Annual Revenue		1.00%
Skyway Capital Markets [Member] | Future Services [Member]
Related Party Transaction [Line Items]
Fees received for providing fairness opinion		$ 25,000
Craven [Member]
Related Party Transaction [Line Items]
Receivable from related party		$ 27,738
Settlement date		2020

Investment in Note Receivable_2

Investment in Note Receivable Related Party - Additional information (Detail) - USD ($)	Dec. 20, 2019	Jan. 16, 2019	Jan. 15, 2019	Nov. 02, 2018	Jan. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Principal amount						$ 4,149,578
IIU Inc. [Member]
Related Party Transaction [Line Items]
Purchase price					$ 4,969,200
Securities Purchase Agreement [Member] | IIU Inc. [Member]
Related Party Transaction [Line Items]
Percentage of stock purchased		100.00%	100.00%
Purchase price		$ 5,089,357	$ 5,089,357
Senior Convertible Promissory Notes [Member] | Securities Purchase Agreement [Member]
Related Party Transaction [Line Items]
Principal amount				$ 1,500,000
Purchase price of notes issued				$ 1,500,000
Debt instrument maturity period				360 days
Debt instrument, interest rate percentage				3.00%
Craven Secured Promissory Note [Member] | Craven [Member]
Related Party Transaction [Line Items]
Principal amount	$ 1,500,000
Debt instrument, interest rate percentage	0.50%
Debt instrument, due date	Apr. 15, 2020
Debt Instrument, extended maturity date	Aug. 1, 2021
Common shares pledged other than secured promissory notes	640,000

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Additional Information (Detail) - Level 3 [Member]	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Measurement Input, Discount Rate [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value measurement discount rate	0.0755	0.0865
Measurement Input, Expected Term [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value measurement recovery period	10 years	8 years 6 months

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Schedule of Carrying Amount and Estimated Fair Value of Finance Receivables (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Finance receivables:
Original product	$ 273,711	$ 425,012
Special product, net of allowance	129,272	237,043
Level 3 [Member] | Carrying Amount [Member]
Finance receivables:
Original product	274,000	425,000
Special product, net of allowance	129,000	237,000
Level 3 [Member] | Fair Value [Member]
Finance receivables:
Original product	2,995,000	4,005,000
Special product, net of allowance	$ 300,000	$ 543,000

Going Concern - Additional Info

Going Concern - Additional Information (Detail) - USD ($)	Mar. 23, 2020	Jan. 08, 2020	Dec. 31, 2019
Financial Support For Nonconsolidated Legal Entity [Line Items]
Cumulative operating losses			$ 14,495,000
Hanfor [Member] | Subsequent Event [Member]
Financial Support For Nonconsolidated Legal Entity [Line Items]
Cash infusion	$ 1,250,000
Termination period	8 months
IIU Inc. [Member] | Subsequent Event [Member]
Financial Support For Nonconsolidated Legal Entity [Line Items]
Repayments of notes payable		$ 3,461,782
Accrued interest		$ 100,787

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($)	Apr. 13, 2020	Mar. 23, 2020	Jan. 08, 2020	Dec. 31, 2019	Jan. 31, 2019
Subsequent Event [Line Items]
Principal amount				$ 4,149,578
Subsequent Event [Member]
Subsequent Event [Line Items]
Debt instrument, interest rate percentage		86.50%
Termination fees		$ 500,000
Stock issued and restricted shares	86,000		100,000
Subsequent Event [Member] | Minimum [Member]
Subsequent Event [Line Items]
Exercise of outstanding warrants		729,167
Securities Purchase Agreement [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock issued		520,833
Denominator for conversion of convertible note to restricted common shares		$ 2.40
IIU Inc. [Member]
Subsequent Event [Line Items]
Net fair value of assets					$ (720,386)
IIU Inc. [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Purchase price			$ 3,461,782
Accrued interest			100,787
IIU Inc. [Member] | Securities Purchase Agreement [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock value			3,562,569
Purchase price			3,461,782
Accrued interest			100,787
Principal amount			4,969,200
Net fair value of assets			720,386
Goodwill fair value			$ 5,689,586