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CleanCore Solutions, Inc. (ZONE) Reports First Quarter FY 2025 Financial Results and Provides Business Update

13.11.2024 by admin

Omaha, NE, Nov. 13, 2024 (GLOBE NEWSWIRE) — CleanCore Solutions, Inc. ZONE (“CleanCore” or the “Company“), developer of patented technology that works as a safe and low-cost replacement for traditional cleaning chemicals, today reported its first quarter 2025 financial results and provided a business update.

“We continued to make important progress during the quarter including expanding our customer base and entering new verticals that are seeking effective cleaning solutions that also provide cost savings,” commented, Clayton Adams, CEO of CleanCore Solutions. “Our past quarter, although we experienced 12% year-over-year revenue growth, was impacted by increased costs associated with going public and a lengthier sales cycle due to the structure of the global Fortune 500 clients in our pipeline. Our strategic shift to add a direct sales model, combined with increased investment in our sales force and marketing efforts, is projected to substantially boost our monthly recurring revenues in the coming quarters.”

“Our early market traction is evident in our new customer agreements. For example, we recently announced an initial Purchase Agreement with a large building service contractor within the transportation field. We also expanded our penetration within the education vertical with Montessori Schools, which follows deployment of over 200 cleaning systems at a leading university located in the western United States. We believe the demand for our innovative products reflects a strong industry shift toward sustainable solutions that prioritize both safety and environmental impact as well as cost savings. CleanCore’s eco-friendly, health-conscious solutions are designed for high-traffic, sensitive environments such as restaurants, schools and daycares, hotels, airports, and transportation fleets. We are extremely excited about the future of our Company as we begin to reap the benefits of our investments and strategic positioning.”

Financial Results
Revenue for the three months ended September 30, 2024 was approximately $365,000 compared to approximately $326,000 for the three months ended September 30, 2023. General and administrative expenses increased to approximately $916,000 for the three months ended September 30, 2024 compared to approximately $510,000 for the three months ended September 30, 2023. This increase was primarily related to an increase in professional fees, costs related to going public, European certifications needed for overseas distribution, and stock related compensation. Net loss for the three months ended September 30, 2024 was approximately $856,000 compared to approximately $437,000 for the three months ended September 30, 2023.

The Company’s quarterly report on Form 10-Q for the quarterly period ended September 30, 2024 is scheduled to be filed with the U.S. Securities and Exchange Commission today. The Form 10-Q will also be available on the Company’s website.

About CleanCore Solutions
CleanCore Solutions, Inc. ZONE is dedicated to revolutionizing cleaning and disinfection practices by harnessing the power of its patented aqueous ozone technology. The Company’s mission is to empower its customers with cost-effective, sustainable solutions that surpass traditional cleaning methods. Through innovation and commitment to excellence, CleanCore strives to create a healthier, greener future for generations to come.

For more information, please visit https://www.cleancoresol.com/.

Forward Looking Statements
This press release contains information about our views of future expectations, plans, and prospects with respect to CleanCore’s business, financial condition, and results of operations that constitute or may constitute forward-looking statements. Any and all forward-looking statements are based on the management’s beliefs, assumptions, and expectations of CleanCore’s future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Although CleanCore believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. CleanCore does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. Forward-looking statements are subject to a number of factors, risks, and uncertainties, some of which are not currently known to us, that may cause CleanCore’s actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Actual results may differ materially from the expectations discussed in forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks set forth in “Risk Factors” included in our filings with the SEC.

Investor Relations:
Crescendo Communications, LLC
Email: zone@crescendo-ir.com
Tel: (212) 671-1020

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Markets News

Customer Retention Drives GrowGeneration's Q3 Results: Sales Up, Revenue Down

13.11.2024 by admin

GrowGeneration Corp. GRWG, a major U.S. retailer of hydroponic and organic gardening products, reported its Q3 2024 financial results Tuesday afternoon with a mixed performance. Net sales declined 10.2% year-over-year, totaling $50 million, down from $55.7 million in the same quarter of 2023.

The drop was driven by the closure of 25 retail locations as part of the company’s ongoing restructuring. However, positive momentum was seen in same-store sales, which grew by 12.5%, buoyed by strong commercial sales and robust customer retention.

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Gross Profit And Margins Under Pressure

Gross profit fell by 33.2%, decreasing from $16.2 million in Q3 2023 to $10.8 million in Q3 2024. The gross profit margin also contracted significantly, dropping to 21.6% from 29.1% in the prior year.

The decline was attributed to restructuring activities, including inventory disposal costs and reduced vendor discounts. Despite the margin pressure, proprietary brand sales increased to 23.8% of cultivation and gardening net sales, compared to 19.4% in the same period last year.

Operating Expenses Cut, Net Loss Widens

Operating expenses were reduced by 5.4%, falling to $22.9 million as GrowGeneration continued to streamline its operations through store consolidations and cost-cutting measures.

However, these efforts were not enough to offset the impact of lower sales, as the company reported a net loss of $11.4 million, a widening from the $7.3 million loss in Q3 2023. Adjusted EBITDA also showed a deeper loss of $2.4 million, compared to a $0.9 million loss in the prior year.

Cash Reserves Strong Despite Strategic Shifts

The company ended the quarter with a solid cash position, reporting $55.2 million, cash equivalents and marketable securities, with no debt.

CEO Darren Lampert highlighted the company’s financial stability and strategic progress. “Our actions to date have successfully positioned GrowGen for sustainable growth in 2025. We are tracking well against our goal to increase proprietary brand sales to 35% next year.”

The company is gearing up for the launch of its e-commerce platform in Q4 2024, aiming to enhance its digital presence and boost B2B sales. With 19 store consolidations completed in fiscal 2024, GrowGeneration aims to optimize its margins and build a leaner, more profitable operation going forward.

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Finance News

Bond Traders Reload Bets on Fed Cuts After CPI: Markets Wrap

13.11.2024 by admin

(Bloomberg) — The world’s biggest bond market boosted bets the Federal Reserve will slash rates again next month after in-line inflation data.

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Shorter-dated Treasuries rallied on Wednesday, with the yield on two-year notes dropping from the highest since July. Swap traders boosted to about 80% the probability that the Fed will cuts rates again on Dec. 18. Equities struggled to gain traction after this month’s big gains. The dollar held at a two-year high. A surge in Bitcoin that paused earlier Wednesday is regaining steam, sending the cryptocurrency above $90,000.

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The so-called core consumer price index — which excludes food and energy costs — increased 0.3% for a third month and 3.3% from a year ago. Economists see the core gauge as a better indicator of the inflation trend than the overall CPI. Fed Bank of Minneapolis President Neel Kashkari said the top figures from the latest data confirm inflation is headed down toward the central bank’s 2% target.

“Overall, it was a remarkably consensus print that leaves a December cut as the most likely outcome,” said Ian Lyngen at BMO Capital Markets.

The S&P 500 fell 0.1%. The Nasdaq 100 slid 0.4%. The Dow Jones Industrial Average fluctuated.

Treasury 10-year yields declined one basis point to 4.41%. The Bloomberg Dollar Spot Index rose 0.3%.

Wall Street’s Reaction to CPI:

The October inflation data came in right on the nose of survey expectations.

We agree with current market expectations around Fed pricing. Last week, Chair Jerome Powell reinforced that the Fed believes its policy stance is still restrictive, and that they remain on a rate-cutting trajectory. Our base case is that the Fed cuts 25 basis points in December before moving to an “every other meeting” cadence for the firsttwo-year notes part of 2025.

More of the Same. The October CPI release looks like it was cut from the same cloth as the last few reports – that is, flirting with the edge of acceptable levels of inflation driven by services prices.

Stickier services inflation right now is a nuisance for the Fed, like it’s stepped in gum along its rate cut path. The Fed wants to avoid the mistakes of the past by prematurely easing and risking a second wave of inflation, so we’d expect the FOMC to take this risk seriously. This doesn’t take a rate cut off the table for December, but it’s certainly not a slam dunk. Until then, the FOMC will receive one more CPI report before its December session, which should provide further clarity on the general direction of inflation.

The absence of an upside surprise leaves the Fed on track to cut 25bp in December and provides more room for risk-on Trump trades to run, as inflation data on the hotter side could have led the market to start seeing Trump reflationary policy in a less favorable light.

Bang in-line core inflation leaves the Fed on track to cut rates in December. After a run of unseasonably hot autumn data, today’s number cools fears of an imminent slowdown in the pace of rate cuts. Still, with uncertainty over fiscal and trade policies high there is a risk that the Fed may opt to slow the pace of easing as the New Year chill sets in.

The in-line CPI print shows that while substantial progress has been made in the fight against elevated inflation, the “last mile” is proving more challenging. Underlying inflationary pressures remain on a pace that is modestly above the Fed’s 2% target. With inflation holding steady, the market narrative should not see a significant shift as a result of today’s data.

The market may be concerned that we are at an inflection point, with inflation potentially returning to an upward trajectory. We see inflation modestly higher next year. We don’t think today’s CPI data will do much to the market.

With Wednesday’s CPI in-line with expectations, but still stubbornly above the Fed’s 2% goal, the Fed may have only one rate cut left in December before taking a pause from their easing path.

The incredible move in the stock market post-election has effectively eased financial conditions for stock investors. This easing, combined with incoming fiscal stimulus, may warrant a pause on rate cuts by the Fed in the near future to allow the dust to settle and to process more incoming data.

While the Fed may have a few rate cuts left in them before they enter a holding pattern, the belly and back end of the yield curve may see a further selloff that began in September with the Fed’s initial 50 basis point cut. The Fed cutting short-term rates along with future fiscal stimulus may both ignite inflation again and provide cause for longer term interest rates to rise. We see 10-year Treasury bond yields climbing to 5% in 2025.

The CPI coming in as expected across all components triggered a sigh of relief from Treasuries.

Equity futures edged higher, but with the equity market extended following days of strong performance, the focus was on Treasury yields as concerns over still stubborn inflation has dominated headlines.

Still, the 2.6% year-over-year print, while expected, may keep the Fed mindful from declaring victory over its campaign to quell inflation.

No surprises from the CPI, so for now the Fed should be on course to cut rates again in December. Next year is a different story, though, given the uncertainty surrounding potential tariffs and other Trump administration policies. The markets are already weighing the possibility that the Fed will cut fewer times in 2025 than previously thought, and that they may hit the pause button as early as January.

A hotter-than-expected inflation number could have convinced the Fed to stand pat at its next meeting, so the in-line number can almost be considered as a beat. A December cut is still in the cards.

After the massive rally we’ve seen in stocks, investors are looking for any sort of excuse that can usher in a pullback. Despite core CPI ticking higher for its third-straight month and headline CPI rising, a batch of in-line inflation data isn’t likely to do the trick.

Markets resolved higher following the election, instilling a “buy the dip” mentality on Wall Street. If the market were to sell off in the short term, the pullbacks are likely to be shallow as fund managers buy the dip and look to chase performance into year-end.

Current market odds are pricing in about a 60/40 chance of a 25 basis point rate cut in December. At the very least, this report likely won’t worsen those odds, and perhaps more likely, it could add to investors’ confidence that the Fed will again lower rates. However, a lot will hinge on the upcoming PCE report and non-farm payrolls report later this month and in early December, respectively.

Remember, the Fed is unlikely to be swayed by one data point. Instead, the committee will weigh multiple reports and data points when deciding on its next interest rate decision. If PCE comes in higher than expected and the jobs report is strong, then we could see expectations for a rate cut fall.

The sticky components of inflation continue to ease, giving the Fed some leeway to cut rates next month but they will most likely pause in January. The strength of some cohorts of the consumer is keeping upward pressure on prices as consumer spending hasn’t slowed yet. Stronger than expected economic growth is likely keeping bond yields elevated.

It’s time to stop worrying about the Fed and inflation. Stocks have been on autopilot since the election and today’s numbers do nothing to hurt the trend. December is still in play for a cut.

There were no upside or downside surprises in the October CPI data, which is on balance encouraging because that means inflation continues to normalize.

Corporate Highlights:

Cava Group Inc. raised its full-year outlook for a third straight quarter and posted quarterly sales that beat market expectations, the latest example of a fast-casual company winning over diners while the rest of the industry struggles.
Spirit Airlines Inc. is closing in on a deal with creditors that would restructure its crushing debt load in bankruptcy court after discussions for a tie-up with rival Frontier Group Holdings Inc. fell apart.
Mastercard Inc. projected slower annual net revenue growth for the 2025 to 2027 period, it said Wednesday ahead of its investor day.
Volkswagen AG raised investment plans in Rivian Automotive Inc. by $800 million, signaling its commitment to the US partner even as electric-vehicle demand softens and the incoming Trump administration threatens to curtail supportive policies.
Spotify Technology SA reported third-quarter growth in subscribers and profit margins, saying lower marketing and personnel costs helped the music streaming service overcome a tough climate for advertising.
Charter Communications Inc. agreed to buy Liberty Broadband Corp. in an all-stock transaction.
Instacart posted strong revenue in the third quarter, a sign of resilience in its core grocery delivery business. However, it forecast adjusted earnings in the current period that fell short of analysts’ expectations.
Groupon Inc., a shopping deals website, cut its adjusted Ebitda guidance for the full year.
Wonder Group Inc. is buying Grubhub from Just Eat Takeaway.com NV for about $650 million, acquiring the restaurant delivery service at a steep discount to the $7.3 billion price tag it commanded during the early days of the Covid pandemic.

Key events this week:

Eurozone GDP, Thursday
US PPI, jobless claims, Thursday
Fed speakers include Jerome Powell, John Williams and Adriana Kugler, Thursday
China retail sales, industrial production, Friday
US retail sales, Empire manufacturing, industrial production, Friday

Some of the main moves in markets:

Stocks

The S&P 500 fell 0.1% as of 10:15 a.m. New York time
The Nasdaq 100 fell 0.4%
The Dow Jones Industrial Average was little changed
The Stoxx Europe 600 fell 0.6%
The MSCI World Index fell 0.3%

Currencies

The Bloomberg Dollar Spot Index rose 0.3%
The euro fell 0.5% to $1.0569
The British pound fell 0.4% to $1.2703
The Japanese yen fell 0.2% to 154.96 per dollar

Cryptocurrencies

Bitcoin rose 3.5% to $91,382.37
Ether rose 0.4% to $3,294.45

Bonds

The yield on 10-year Treasuries declined one basis point to 4.41%
Germany’s 10-year yield advanced two basis points to 2.39%
Britain’s 10-year yield advanced one basis point to 4.51%

Commodities

This story was produced with the assistance of Bloomberg Automation.

Spirit Airlines stock plunges 60% as company reportedly preps bankruptcy filing

13.11.2024 by admin

Spirit Airlines (SAVE) stock plunged as much as 64% early Wednesday, the most on record, as the budget airline explores a deal with creditors to restructure its debt amid a reported threat of bankruptcy after merger talks with Frontier collapsed.

On Tuesday, a Wall Street Journal report said the airline is preparing to file for bankruptcy protection, in a filing that could occur within weeks as its tie-up discussions with Frontier broke down.

This report followed a separate statement from the company late Tuesday, which said it has been in “constructive discussions” to iron out a restructuring deal with holders of its senior secure notes due in 2025.

If an agreement with creditors is executed, it “is expected to lead to the cancellation of the company’s existing equity,” said Spirit. If a deal with noteholders is not reached, the carrier said it would consider all alternatives.

Spirit stock has fallen over 90% this year.

Spirit also said on Tuesday it would not be able to file its quarterly results for the period ending September 30, as restructuring negotiations have also diverted significant management time and internal resources from completing its financial statements.

The carrier has struggled to get out from a mountain of debt as merger talks with other airlines have failed to materialized.

Last month, Spirit and Frontier had reportedly revived merger talks. Initial tie-up discussions between the two airlines in 2022 ended after JetBlue (JBLU) outbid Frontier. However, the JetBlue merger was blocked in January by a federal judge over antitrust concerns.

Wall Street has grown increasingly bearish on the airline, with analysts maintaining zero Buy ratings, 4 Hold recommendations, and 8 Sell recommendations on the stock, according to Bloomberg data.

TD Cowen analysts lowered their full year estimates under the assumption that the airline “significantly shrinks in a restructuring,” in a client note late Tuesday.

“[Tuesday’s] news also creates the risk of customers booking away from the airline resulting in even greater pressure on liquidity,” TD Cowen analyst Tom Fitzgerald wrote.

“In the event of a restructuring, focus will then shift to the fate of Spirit’s fleet,” Fitzgerald added. “We expect the airline to sell off the remaining encumbered assets to pay off the associated debt on the aircraft and work to reject leases on the rest of the fleet.”

Last month Spirit said it would furlough more than 300 pilots in January and sell older aircraft in order to cut costs.

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Earnings News

LM Funding America, Inc. Reports Financial Results and Provides Business Update for the Third Quarter of 2024

13.11.2024 by admin

TAMPA, Fla., Nov. 13, 2024 (GLOBE NEWSWIRE) — LM Funding America, Inc. LMFA (“LM Funding” or the “Company”), a cryptocurrency mining and technology-based specialty finance company, today provided a business update and reported financial results for the three and nine months ended September 30, 2024.

Financial highlights

Held 142.3 Bitcoin on September 30, 2024, Valued at Approximately $12.4 Million Based on Recent Bitcoin Price of $87,000
Digital mining cost of revenues (exclusive of depreciation and amortization) as a percentage of digital mining revenues showed substantial improvement versus the prior year quarter.

CEO commentary

Bruce Rodgers, Chairman and CEO of LM Funding, remarked, “Following the April halving event, we initiated a vertical integration strategy, focusing on locations with low-cost power and strong expansion potential. We are committed to identifying cost-effective sites that will enable the Company to drive growth and increase shareholder value. Additionally, we are excited to see Bitcoin recently reach an all-time high above $87,000—a milestone that reinforces our strategy of mining and holding Bitcoin as the price approaches the industry’s target of over $100,000 by 2025.”

Strategic Developments

Vertical Integration Strategy: Following the halving event, the Company transitioned from an infrastructure-light approach to a vertical integration strategy. This shift, strategically coordinated with the expiration of hosting contracts, allowed the Company to secure lower-cost power sources ($0.3 – 0.5 cents per MW) and relocate miners to more cost-effective operations and expansion opportunities. This resulted in substantial improvement in our digital mining cost of revenues (exclusive of depreciation and amortization) as a percentage of digital mining revenues as compared to the prior year quarter.
Leadership Appointment: Ryan Duran has been named president of the Company’s US Digital Mining and Hosting Co LLC, a subsidiary. Duran will play a pivotal role in shaping the strategic direction and optimizing operational efficiency, positioning LM Funding at the forefront of the rapidly evolving cryptocurrency mining industry.

Ryan Duran, President of USDM, stated, “I look forward to driving our vertical integration strategy as we acquire cost-effective sites to lower our operating costs.”

Quarterly Operational Highlights – Three Months ended September 30, 2024

Bitcoin Mining: Mined 18.5 Bitcoins in Q3 2024, generating approximately $1.1 million in revenue at an average Bitcoin price of $60,870.
Bitcoin Holdings: As of September 30, 2024, the Company held 142.3 Bitcoins valued at approximately $12.4 million based on a price of $87,000 on November 11, 2024.
Revenue Impact: Total revenue for the third quarter of 2024 was approximately $1.3 million, a decrease of $2.1 million from the same period last year, primarily due to the anticipated effects of the April 2024 Bitcoin halving event and the transition of our mining machines to a new hosting site.
Net Loss: The net loss for the third quarter was $4.8 million compared to a net loss of $4.7 million for the comparable quarter in 2023.

Quarterly Financial Highlights – Three Months ended September 30, 2024

Revenue: Digital mining revenue decreased to $1.1 million in Q3 2024 from $3.3 million in Q3 2023, despite an increase in Bitcoin prices, due to reduced mined volume arising from the April halving event and the repositioning of miners during the quarter.
Operating Expenses: Operating expenses decreased to $5.7 million from $6.6 million year-on-year, due primarily to a decrease in digital mining costs in Bitcoin fair value offset in part by an increase in depreciation and amortization costs. Digital mining cost of revenues (exclusive of depreciation and amortization) as a percentage of digital mining revenues showed substantial improvement versus the prior year quarter.
Net Loss: LM Funding reported a net loss attributable to shareholders of approximately $6.4 million, factoring in $1.7 million of deemed dividends resulting from warrant repricing and a $0.3 million unrealized loss on securities, compared to a $4.4 million loss in the prior year.
Core EBITDA: Core EBITDA loss was $1.6 million in Q3 2024 from $0.6 million in Q3 2023, although positive Core EBITDA for nine months of 2024 increased to $0.6 million due to expanded Bitcoin operations. (Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net loss can be found below).

CFO commentary
Richard Russell, CFO of LM Funding, stated, “We closed the quarter with approximately $14.9 million in cash and Bitcoin. With the recent rapid increase in BTC prices above $87,000, we continue to be very optimistic about the financial prospects of Bitcoin and our business outlook.”

Investor Conference Call

LM Funding will host a conference call today, November 13, 2024, at 11:00 A.M. Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 2024, as well as the Company’s corporate progress and other developments.

The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 424451. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2917/51557 or on the investor relations section of the company’s website, https://www.lmfunding.com/investors/news-events/ir-calendar.

A webcast replay will be available on the investor relations section of the company’s website at https://www.lmfunding.com/investors/news-events/ir-calendar through November 13, 2025. A telephone replay of the call will be available approximately one hour following the call, through November 27, 2024, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 51557.

About LM Funding America

LM Funding America, Inc., LMFA and its subsidiaries are a cryptocurrency mining business that commenced Bitcoin mining operations in September 2022. The Company also operates a technology-based specialty finance company that provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois, by funding a certain portion of the Associations’ rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments.

Forward-Looking Statements

This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company’s most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, uncertainty created by the risks of operating in the cryptocurrency mining business, uncertainty in the cryptocurrency mining business in general, problems with hosting vendors in the mining business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, the ability to finance our planned cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, the potential need for additional capital in the future, changes in governmental regulations that affect our ability to collect sufficient amounts on defaulted consumer receivables, changes in the credit or capital markets, changes in interest rates, negative press regarding the debt collection industry, and the risk of pandemics such as the COVID-10 pandemic. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations.

Contact:
Crescendo Communications, LLC
Tel: (212) 671-1020
Email: LMFA@crescendo-ir.com


LM Funding America, Inc. and Subsidiaries Consolidated Balance Sheets


	September 30,			December 31,
	2024 (Unaudited)				2023

Assets
Cash	$	5,913,215		$	2,401,831
Digital assets – current (Note 2)		3,308,428			3,416,256
Finance receivables		25,410			19,221
Marketable securities (Note 5)		18,844			17,860
Receivable from sale of Symbiont assets (Note 5)		200,000			200,000
Current portion of notes receivable from Tech Infrastructure JV I LLC (Note 5)		711,840			–
Prepaid expenses and other assets		416,516			4,067,212
Income tax receivable		31,187			31,187
Current assets		10,625,440			10,153,567

Fixed assets, net (Note 3)		17,311,254			24,519,610
Deposits on mining equipment (Note 4)		20,847			20,837
Notes receivable from Seastar Medical Holding Corporation (Note 5)		–			1,440,498
Notes receivable from Tech Infrastructure JV I LLC – net of current portion (Note 5)		2,269,863			–
Long-term investments – equity securities (Note 5)		8,944			156,992
Investment in Seastar Medical Holding Corporation (Note 5)		440,910			1,145,486
Digital assets – long-term (Note 2)		5,675,372			–
Operating lease – right of use assets (Note 7)		109,380			189,009
Other assets		73,857			86,798
Long-term assets		25,910,427			27,559,230
Total assets	$	36,535,867		$	37,712,797

Liabilities and stockholders’ equity
Accounts payable and accrued expenses		1,400,228			2,064,909
Note payable – short-term (Note 6)		1,520,564			567,586
Due to related parties (Note 10)		64,386			22,845
Current portion of lease liability (Note 7)		109,931			110,384
Total current liabilities		3,095,109			2,765,724

Note payable – long-term (Note 6)		4,844,084			–
Lease liability – net of current portion (Note 7)		4,924			85,775
Long-term liabilities		4,849,008			85,775
Total liabilities		7,944,117			2,851,499

Stockholders’ equity (Note 8)
Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of September 30, 2024 and December 31, 2023		–			–
Common stock, par value $.001; 350,000,000 shares authorized; 2,956,042 shares issued and outstanding as of September 30, 2024 and 2,492,964 as of December 31, 2023		2,822			2,493
Additional paid-in capital		97,827,489			95,145,376
Accumulated deficit		(67,628,539	)		(58,961,461	)
Total LM Funding America stockholders’ equity		30,201,772			36,186,408
Non-controlling interest		(1,610,022	)		(1,325,110	)
Total stockholders’ equity		28,591,750			34,861,298
Total liabilities and stockholders’ equity	$	36,535,867		$	37,712,797

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

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Revenues:
Digital mining revenues	$	1,127,455		$	3,283,473		$	8,618,436		$	8,342,646
Specialty finance revenue		97,558			101,535			303,222			474,544
Rental revenue		30,460			34,500			92,766			111,486
Total revenues		1,255,473			3,419,508			9,014,424			8,928,676
Operating costs and expenses:
Digital mining cost of revenues (exclusive of depreciation and amortization shown below)		730,716			2,708,473			5,742,773			6,737,971
Staff costs and payroll		1,567,984			1,340,665			3,648,898			4,736,940
Depreciation and amortization		2,349,634			1,516,873			7,115,404			3,487,866
Gain on fair value of Bitcoin, net		(104,744	)		–			(3,096,774	)		–
Impairment loss on mining equipment		–			–			1,188,058			–
Impairment loss on mined digital assets		–			383,497			–			822,650
Realized gain on sale of mined digital assets		–			(261,191	)		–			(1,331,982	)
Professional fees		628,686			419,173			1,622,914			1,228,503
Selling, general and administrative		209,088			201,151			582,675			683,174
Real estate management and disposal		31,144			26,453			89,430			127,611
Collection costs		15,054			8,098			36,396			17,533
Specialty finance revenue
Settlement costs with associations		–			–			–			10,000
Loss on disposal of assets		12,449			–			54,506
Other operating costs		229,784			246,735			667,401			704,589
Total operating costs and expenses		5,669,795			6,589,927			17,651,681			17,224,855
Operating loss		(4,414,322	)		(3,170,419	)		(8,637,257	)		(8,296,179	)
Unrealized gain (loss) on marketable securities		(3,296	)		2,058			984			6,436
Impairment loss on prepaid machine deposits		(12,941	)		–			(12,941	)		(36,691	)
Unrealized loss on investment and equity securities		(346,866	)		(778,078	)		(852,624	)		(10,317,613	)
Impairment loss on Symbiont assets		–			(750,678	)		–			(750,678	)
Gain on fair value of purchased Bitcoin, net		–			–			57,926			–
Realized gain on securities					1,788						1,788
Realized gain on sale of purchased digital assets		–			–			–			1,917
Credit loss on Seastar Medical Holding Corporation notes receivable		–			(22,344	)		–			(22,344	)
Gain on adjustment of note receivable allowance		–			–			–			1,052,543
Other income – coupon sales		–			10,160			4,490			639,472
Other income – financing revenue		–			–			–			37,660
Interest expense		(124,035	)		–			(231,754	)		–
Interest income		98,343			39,657			124,696			210,881
Loss before income taxes		(4,803,117	)		(4,667,856	)		(9,546,480	)		(17,472,808	)
Income tax expense		–			–			–			–
Net loss	$	(4,803,117	)	$	(4,667,856	)	$	(9,546,480	)	$	(17,472,808	)
Less: warrant repricing (Note 8)		(1,704,305	)		–			(1,704,305	)		–
Less: loss attributable to non-controlling interest		105,043			250,880			265,296			3,120,321
Net loss attributable to LM Funding America Inc.	$	(6,402,379	)	$	(4,416,976	)	$	(10,985,489	)	$	(14,352,487	)

Basic loss per common share (Note 1)	$	(2.41	)	$	(1.97	)	$	(4.35	)	$	(6.51	)
Diluted loss per common share (Note 1)	$	(2.41	)	$	(1.97	)	$	(4.35	)	$	(6.51	)

Weighted average number of common shares outstanding
Basic		2,659,974			2,246,745			2,525,160			2,206,187
Diluted		2,659,974			2,246,745			2,525,160			2,206,187

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

	Nine Months Ended September 30,
		2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(9,546,480	)	$	(17,472,808	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		7,115,404			3,487,866
Noncash lease expense		79,629			70,545
Stock compensation		76,322			917,057
Stock option expense		332,415			1,611,795
Professional fees paid in common shares		100,001			–
Accrued investment income		(123,076	)		(130,990	)
Digital assets other income		(4,490	)		–
Gain on fair value of Bitcoin, net		(3,154,700	)		–
Impairment loss on mining machines		1,188,058			–
Impairment loss on digital assets		–			822,650
Impairment loss on hosting deposits		12,941			36,691
Impairment loss on Symbiont assets		–			750,678
Unrealized gain on marketable securities		(984	)		(6,436	)
Realized gain on securities		–			(1,788	)
Unrealized loss on investment and equity securities		852,624			10,317,613
Loss on disposal of fixed assets		54,506			–
Proceeds from securities		–			554,036
Realized gain on sale of digital assets		–			(1,333,899	)
Credit loss on Seastar Medical Holding Corporation notes receivable		–			22,344
Reversal of allowance loss on debt security		–			(1,052,543	)
Investments in marketable securities		–			(739,616	)
Change in operating assets and liabilities:
Prepaid expenses and other assets		3,650,696			(123,221	)
Hosting deposits		–			(54,691	)
Advances (repayments) to related party		41,541			(31,090	)
Accounts payable and accrued expenses		(664,681	)		682,405
Mining of digital assets		(8,618,436	)		(8,352,805	)
Proceeds from sale of digital assets		–			7,487,058
Lease liability payments		(81,304	)		(70,563	)
Net cash used in operating activities		(8,690,014	)		(2,609,712	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections of finance receivables – original product		(4,618	)		(8,765	)
Net collections of finance receivables – special product		(1,571	)		14,009
Capital expenditures		(1,228,428	)		(1,913,303	)
Proceeds from sale of fixed assets		78,806			–
Investment in Tech Infrastructure JV I LLC note receivable		(2,867,195	)		–
Investment in note receivable		–			(100,000	)
Collection of notes receivable		1,449,066			1,761,727
Investment in digital assets		–			(35,157	)
Proceeds from sale of digital assets		6,821,185			43,678
Proceeds from the sale of tether		3,003			–
Symbiont asset acquisition		–			(402,359	)
Distribution to members		(19,616	)		–
Net cash from (used in) investing activities		4,230,632			(640,170	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings		6,344,084			–
Insurance financing repayments		(547,022	)		(499,453	)
Insurance financing		–			86,886
Exercise of options		25,000			–
Proceeds from equity offering		2,333,112			–
Issue costs for equity offering		(184,408	)		(106,550	)
Net cash from (used in) financing activities		7,970,766			(519,117	)
NET DECREASE IN CASH		3,511,384			(3,768,999	)
CASH – BEGINNING OF PERIOD		2,401,831			4,238,006
CASH – END OF PERIOD	$	5,913,215			469,007

SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES

ROU assets and operating lease obligation recognized	$	–		$	21,887
Reclassification of mining equipment deposit to fixed assets, net	$	–		$	1,177,226
Change in accounting principle (see Note 1)	$	614,106		$	–
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION
Cash paid for taxes	$	–		$	–
Cash paid for interest	$	222,697		$	–

NON-GAAP FINANCIAL INFORMATION (unaudited)

Our reported results are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We also disclose Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”) and Core Earnings before Interest, Tax, Depreciation and Amortization (“Core EBITDA”) which adjusts for unrealized loss on investment and equity securities, impairment loss on mined digital assets, impairment of long-lived assets, impairment of prepaid hosting deposits, contract termination costs and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners.

The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:


	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023

Net loss	$	(4,803,117	)	$	(4,667,856	)	$	(9,546,480	)	$	(17,472,808	)
Interest expense		124,035			–			231,754			–
Depreciation and amortization		2,349,634			1,516,873			7,115,404			3,487,866
Income (loss) before interest, taxes & depreciation	$	(2,329,448	)	$	(3,150,983	)	$	(2,199,322	)	$	(13,984,942	)
Unrealized loss on investment and equity securities		346,866			778,078			852,624			10,317,613
Gain on adjustment of note receivable allowance		–			–			–			(1,052,543	)
Impairment loss on mined digital assets		–			383,497			–			822,650
Impairment loss on prepaid hosting deposits		–			–			–			36,691
Costs associated with At-the-Market Equity program		–			–			119,050			–
Contract termination costs		250,001			–			250,001			–
Impairment loss on Symbiont assets		–			750,678			–			750,678
Impairment loss on mining equipment		–			–			1,188,058			–
Stock compensation and option expense		110,806			621,827			408,737			2,528,852
Core income (loss) before interest, taxes & depreciation	$	(1,621,775	)	$	(616,903	)	$	619,148		$	(581,001	)

Markets News

Rivian Recalls Over 5000 R1 Vehicles After Halloween Software Update Interrupted Exterior Lights

13.11.2024 by admin

EV startup Rivian Automotive RIVN recalled 5,128 units of its R1T trucks and R1S SUVs together owing to concerns about a recent software update disabling certain exterior lights, the National Highway Traffic Safety Administration (NHTSA) said on Wednesday.

What Happened: In the recalled model year 2025 vehicles, a particular software update, released on Oct. 15, prevented some exterior lights from turning on when the car costume feature was activated, the regulator said.

The car costume feature was released on Oct. 18 and the company identified on the same day that it was impacting the vehicles’ external lighting system and disabled the feature remotely. Deactivated exterior lightning, NHTSA said, reduces the vehicle’s visibility to other drivers, increasing the risk of a crash.

All vehicles were subsequently remedied on the same day. The company is not aware of any crashes, injuries, or fatalities owing to the issue, the regulator said.

The car costume feature was part of Rivian’s Halloween software update aimed at allowing customers to give their vehicles spooky costumes for a limited time as part of the festival.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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Finance News

Stock market today: Dow, S&P 500, Nasdaq trade mixed as inflation print keeps Fed rate cut on track

13.11.2024 by admin

New inflation data out Wednesday showed consumer prices rose as forecast in October, keeping the Federal Reserve on track to lower interest rates again in December.

“There is progress on inflation,” Claudia Sahm, chief economist at New Century Advisors, told Yahoo Finance following the data’s release. “We are pointed in the right direction, but it has been a slow grind. And this is another month that fits in that slow grind.”

The outlook remains uncertain as economists warn of another potential inflation resurgence following the election of Donald Trump as the nation’s next president.

Trump and his proposed policies have been viewed as potentially more inflationary due to the president-elect’s campaign promises of high tariffs on imported goods, tax cuts for corporations, and curbs on immigration.

Immediately following Wednesday’s release, markets continued to price in another 25 basis point rate cut in December after the central bank cut rates by that amount last week. Traders currently see a more than 80% chance the Fed cuts rates by 0.25% next month, up from just under 60% on Tuesday, according to data from CME’s FedWatch Tool.

“It is clear that the Federal Reserve’s job is still unfinished and that markets are correct in repricing federal funds rate expectations going forward,” Raymond James’ chief economist Eugenio Alemán wrote in a note to clients following the report.

“Under this environment, it is only oil and gasoline prices that are keeping inflation contained. That is, any surge in oil and gas prices could severely compromise the Fed’s inflation target. The Fed should be particularly concerned about the services less energy component of CPI.”

REPEAT – Dorel Industries Will Hold a Conference Call to Discuss Its Third Quarter Results

13.11.2024 by admin

MONTREAL, Nov. 13, 2024 (GLOBE NEWSWIRE) — Dorel Industries, Inc. DII DII.A))

CONFERENCE CALL:
OPEN TO:	Analysts, investors and all interested parties
DATE:	Thursday, November 14, 2024
TIME:	1:00 PM Eastern Time
CALL:	1-844-763-8274

THE PRESS RELEASE WILL BE PUBLISHED BEFORE MARKETS OPEN THE SAME DAY THROUGH GLOBENEWSWIRE.

Please dial in 15 minutes before the conference begins.

If you are unable to call in at this time, you may access a recording of the meeting by calling 1-855-669-9658 and entering the passcode 1819669 on your phone. This recording will be available on Thursday, November 14, 2024 as of 4:30 PM until 11:59 PM on Thursday, November 21, 2024.

MEDIA WISHING TO QUOTE AN ANALYST SHOULD CONTACT THE ANALYST PERSONALLY FOR PERMISSION.

Interested parties may also listen to a live webcast at https://www.dorel.com/eng/shareholder-information.

For further information contact John Paikopoulos, Dorel Industries Inc. at 514-934-3034.