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Lm Funding America Inc   (LMFA)
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Price: $0.5470 $-0.05 -8.681%
Day's High: $0.5999 Week Perf: 11.72 %
Day's Low: $ 0.51 30 Day Perf: 25.14 %
Volume (M): 393 52 Wk High: $ 1.48
Volume (M$): $ 215 52 Wk Avg: $0.62
Open: $0.59 52 Wk Low: $0.27



 Market Capitalization (Millions $) 7
 Shares Outstanding (Millions) 13
 Employees 22
 Revenues (TTM) (Millions $) 10
 Net Income (TTM) (Millions $) -39
 Cash Flow (TTM) (Millions $) -32
 Capital Exp. (TTM) (Millions $) 2

Lm Funding America Inc

We are a specialty finance company that provides funding to nonprofit community associations primarily located in the state of Florida and, to a lesser extent, nonprofit community associations in the states of Washington and Colorado. We also began operations in Illinois, which is the fourth-largest assessment market in the United States for community associations. 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. More recently, we have started purchasing Accounts on varying terms tailored to suit each Association’s financial needs, including under our New Neighbor Guaranty™ program. We believe that revenues from the New Neighbor Guaranty program, as well as other similar products we may develop in the future, will comprise an increasingly larger piece of our business during the next few years, and we intend to seek to leverage these products to expand our business activities and growth in the states in which we operate.

Under our original business, we purchase Associations’ right to receive a portion of the Association’s collected proceeds from owners that are not paying their assessments. After taking assignment of an Association’s right to receive a portion of the Association’s proceeds from the collection of delinquent assessments, we engage law firms to perform collection work on a deferred billing basis wherein the law firms receive payment upon collection from the account debtors or a predetermined contracted amount if payment from account debtors is less than legal fees and costs owed. Under this business model, we typically fund an amount equal to or less than the statutory minimum an Association could recover on a delinquent account for each Account, which we refer to as the “Super Lien Amount”. Upon collection of an Account, the law firm working on the Account, on behalf of the Association, generally distributes to us the funded amount, interest, and administrative late fees, with the law firm retaining legal fees and costs collected, and the Association retaining the balance of the collection. In connection with this business, we have developed proprietary software for servicing Accounts, which we believe enables law firms to service Accounts efficiently and profitably.


Under the New Neighbor Guaranty program, an Association will generally assign substantially all of its outstanding indebtedness and accruals on its delinquent units to us in exchange for payment by us of monthly dues on each delinquent unit. This simultaneously eliminates a substantial portion of the Association’s balance sheet bad debts and assists the Association to meet its budget by receiving guaranteed monthly payments on its delinquent units and relieving the Association from paying legal fees and costs to collect its bad debts. We believe that the combined features of the program enhance the value of the underlying real estate in an Association and the value of an Association’s delinquent receivables. We intend to leverage our proprietary software platform, as well as our industry experience and knowledge gained from our original business, to expand the New Neighbor Guaranty program and to potentially develop other new products in the future.


Because we acquire and collect on the delinquent receivables of Associations, the Account debtors are third parties that we have little or no information about. Therefore, we cannot predict when any given Account will be paid off or how much it will yield. In assessing the risk of purchasing Accounts, we review the property values of the underlying units, the governing documents of the relevant Association, and the total number of delinquent receivables held by the Association.

Our original product relies upon Florida statutory provisions that effectively protect the principal amount invested by us in each Account. In particular, Section 718.116, Florida Statutes, makes purchasers and sellers of a unit in an Association jointly and severally liable for all past due assessments, interest, late fees, legal fees, and costs payable to the Association. In addition, the statute grants to Associations a so-called “super lien”, which is a category of lien that is given a statutorily higher priority than all other types of liens other than property tax liens. Under the Florida statute, a Florida Association’s super lien has higher priority than all other lien holders, except that in the case of property tax liens. The amount of the Association’s priority over a first mortgage holder that takes title to a property through foreclosure (or deed in lieu), referred to as the Super Lien Amount, is limited to twelve months’ past due assessments or, if less, one percent (1.0%) of the original mortgage amount. Under our contracts with Associations for our original product, we pay Associations an amount up to the Super Lien Amount for the right to receive all collected interest and late fees on Accounts purchased from the Associations. In the past, to protect any amount invested by us in excess of the Super Lien Amount, we purchased insurance from an affiliate of AmTrust North America, or AmTrust, covering all assessments lost during the term of coverage due to a first mortgage foreclosure. As of January 28th, 2016 AmTrust has advised us that they will not continue to offer the insurance coverage we have purchased from them in the past. They represented to us that the nonrenewal is due solely to the fact that they have not generated the premium volume they anticipated.

Our primary objective is to utilize our competitive strengths, including our proprietary technology and our management’s experience and expertise in buying and collecting Association Accounts, to grow our business in Florida and in other states by identifying, evaluating, pricing, and acquiring Association Accounts and maximizing collections of such Accounts in a cost efficient manner. The principal elements of our strategy are comprised of the following:

Capitalizing on our brand and existing strategic relationships to identify and acquire Association Accounts. We market our “We Buy Problems” and “You Are Always Better off with LM Funding” brands primarily through trade shows throughout Florida and, to a lesser extent, at national events. Participation in these shows and events has enabled us to form strategic relationships throughout the Association services industry and has served to provide a positive reputation in the industry. We leverage our brand and strategic relationships with law firms and Associations to identify and purchase Accounts.

Partnering with Associations’ advisors such as law firms, management companies, accountants, Association lenders, and others to efficiently identify and acquire Accounts on a national basis. The point of purchase for Accounts is at the individual Association board of directors level; therefore, establishing and maintaining relationships with the advisors of those boards is important to our business strategy. Our strategic relationships with Association boards’ advisors provide us with opportunities to meet with Association boards on favorable terms and help us to gain their trust and confidence.

Providing our proprietary software to our partner law firms in order to cost effectively track, control, and collect purchased Accounts and maintain low fixed overhead. Our proprietary software enables law firms’ lawyers to efficiently handle approximately 1,000 accounts at a time with a high degree of uniformity and accuracy based upon historical caseload per lawyer of Business Law Group, P.A., one of our partner law firms. This enables our law firms to operate more efficiently and profitably, while simultaneously enabling us to cost effectively track and control our Accounts on a real-time basis.

Utilizing increased access to capital and lines of credit to expand our product offerings nationally. As a specialty finance company, capital is our inventory. Access to capital has always determined the speed of our growth and the amount of upfront funding we can provide with our products. We believe that increased access to capital will enable us to pursue more opportunities to buy Accounts and to develop a wider array of specialty finance products.

Extending secured commercial loans as a means to acquiring large blocks of Accounts. We intend to pursue the extension of secured loans to commercial partners who, as a condition of such loans, would be required to drive large blocks of accounts to us. Banks, management companies, law firms, and large Associations control large blocks of Accounts that we may be able to acquire if we help meet their capital needs.

Pursuing acquisitions of providers in the Association Account servicing industry. A number of smaller collection companies continue to operate in the community association market. Some have funded Accounts that we can acquire. Others have customer relationships which can serve as a valuable platform for selling our products. We will continue to explore opportunities to expand our footprint in both the states in which we operate and by looking to make strategic acquisitions in states we wish to expand to.



   Company Address: 1200 West Platt Street Tampa 33606 FL
   Company Phone Number: 222-8996   Stock Exchange / Ticker: NASDAQ LMFA
   LMFA is expected to report next financial results on March 30, 2024.


   

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Lm Funding America Inc

LM Funding America Inc Surpasses Expectations with Strong Financial Performance in Q3 2023



LM Funding America Inc (NASDAQ: LMFA), a cryptocurrency mining and technology-based specialty finance company, recently announced its financial results for the period of July to September 2023. The company showcased significant improvements in key financial metrics, including reduced loss per share, increased revenue, and a narrower net loss. This article aims to outline these facts and provide insights into the company's performance during this period.
Financial Results Overview:
1. Earnings per Share (EPS):
- In Q3 2023, LM Funding America decreased its loss per share to $-0.33, as compared to $-0.51 in the same period last year.
- Additionally, there was an improvement in EPS from $-0.35 per share in the previous reporting season.

Lm Funding America Inc

LM Funding America Inc. Shatters Expectations with Mind-Blowing 1262.559% Revenue Surge in Q2 2023 Amidst Economic Downturn


Article:
As a financial analyst, I closely study the performance of various companies across different sectors. One company's recent financial results have caught my attention due to its unexpected revenue improvement. LM Funding America Inc (LMFA) has demonstrated a staggering revenue growth of 1262.559% year on year to reach $3.20 million in the second quarter of 2023. Remarkably, while the rest of the Miscellaneous Financial Services sector witnessed a decline of -36.62% in revenue, LMFA has showcased exceptional top-line growth.
The second quarter financials of LMFA have surprised many industry experts, considering the current economic climate. Despite the challenging landscape, LMFA managed to successfully boost its revenue figures significantly. Comparing it to the preceding quarter, the company showcased an impressive 38.129% surge in revenue, up from $2.31 million. However, it is important to note that despite the positive revenue growth, LMFA incurred losses amounting to $-0.35, indicating that there is room for further improvement.

Lm Funding America Inc

Lm Funding America Inc Reports Significant Revenue Growth of 1111.241% in Fiscal Q1 2023, Despite Net Deficit

Lm Funding America Inc, a factoring company primarily focused on the funding of litigation cases, has reported its financial results for the first quarter of 2023. Despite a net deficit of $-7.163 million, the company experienced significant improvements in its earnings per share (EPS) and revenue.
According to the company's report, Lm Funding America Inc had a loss per share of $-0.41 in the first financial quarter of 2023, which is a decrease from the loss per share of $-0.44 reported in the same quarter a year prior. The EPS also improved from $-0.95 per share in the preceding reporting season. This provides evidence of the company's efforts to improve its financial performance.






 

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