LMFAHIGH SIGNALOPERATIONAL10-K

LMFA has fundamentally transformed from a two-business model to a three-business model by establishing Bitcoin treasury operations as a standalone strategic pillar, backed by $27.2 million in capital raises used to purchase 211 Bitcoins.

This represents a major strategic pivot where LMFA is positioning itself as a Bitcoin treasury company rather than solely a mining operation, similar to MicroStrategy's approach of using equity raises to accumulate Bitcoin reserves. The company is now explicitly retaining mined Bitcoin and purchasing additional Bitcoin with raised capital, fundamentally changing its cash flow profile and risk exposure to Bitcoin price movements.

Comparing 2026-03-31 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

The financial picture shows mixed operational performance with revenue declining roughly 20% while operating expenses grew substantially, leading to deteriorating operating cash flow that worsened by 17%. However, the balance sheet strengthened significantly with current assets growing 74% and total debt declining 64%, reflecting the substantial capital raised for Bitcoin purchases. The decline in stockholders' equity despite asset growth suggests either Bitcoin value fluctuations or the dilutive impact of equity raises, creating a complex risk-reward profile for investors.

FINANCIAL STATEMENT CHANGES
Provision for Credit Losses
P&L
-99.6%
$141K→581

Provisions reduced 99.6% — improving credit quality or reserve release boosting reported earnings.

SG&A Expense
P&L
+93.7%
$817K→$1.6M

SG&A up 93.7% — significant increase in sales or administrative costs, monitor impact on operating leverage.

Current Assets
Balance Sheet
+74%
$13.5M→$23.5M

Current assets grew 74% — improving short-term liquidity or inventory/receivables build.

Total Debt
Balance Sheet
-64.1%
$518K→$186K

Debt reduced 64.1% — deleveraging strengthens balance sheet and reduces financial risk.

Capital Expenditure
Cash Flow
+27.4%
$1.7M→$2.2M

Capex increased 27.4% — ongoing investment in capacity or infrastructure for future growth.

Revenue
P&L
-19.6%
$11.0M→$8.8M

Revenue softened 19.6% — monitor whether this is cyclical or structural.

Stockholders Equity
Balance Sheet
-17.3%
$37.0M→$30.6M

Equity decreased 17.3% — buybacks or losses reducing book value, monitor solvency ratios.

Operating Cash Flow
Cash Flow
-17.1%
-$11.9M→-$14.0M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Total Assets
Balance Sheet
+16.5%
$44.0M→$51.3M

Asset base grew 16.5% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-03-31
ADDED
( we , our , LMFA , or the Company ) currently maintains three distinct business operations: our Bitcoin treasury operations, Bitcoin mining business and our specialty finance business.
Our investment strategy with respect to our Bitcoin treasury operations involves retaining a majority of our currently held Bitcoin and acquiring new Bitcoin through our mining operations.
We may sell or leverage our Bitcoin to support operational needs and strategic initiatives.
We conduct this business through our wholly owned subsidiary, US Digital, a Florida limited liability company, which we formed in 2021 to develop and operate our Bitcoin mining business.
Bitcoin Treasury Operations and Strategy During August 2025, we raised approximately $21.3 million in net proceeds from capital raises and we purchased 164 Bitcoins with substantially all of the proceeds from such offering.
During December 2025, we raised an additional $5.9 million in net proceeds from capital raises and we purchased an additional 47 Bitcoins with substantially all of the proceeds from such offering.
Our Bitcoin treasury strategy for the next twelve months includes acquiring and holding Bitcoin, using cash flows from operations that exceed working capital requirements, and from time to time, subject to market conditions, issuing equity or debt securities or engaging in other capital raising transactions with the objective of using the proceeds to purchase Bitcoin.
We have not set any specific target for the amount of Bitcoin we seek to hold, and we will continue to monitor market conditions in determining whether to engage in additional Bitcoin purchases.
This overall strategy also contemplates that we may periodically sell Bitcoin for general corporate purposes or in connection with strategies that generate tax benefits in accordance with applicable law, enter into additional capital raising transactions, including those that could be collateralized by its Bitcoin holdings, and consider pursuing strategies to create income streams or otherwise generate funds using our Bitcoin holdings.
As of December 31, 2025, we controlled 211.4 Bitcoins and 145 Bitcoins were pledged as collateral for a $11 million loan.
REMOVED
( we , our , LMFA , or the Company ) currently has two lines of business: our Bitcoin mining business and our specialty finance business.
We conduct this business through a wholly owned subsidiary, US Digital Mining and Hosting Co, LLC, a Florida limited liability company ( US Digital ), which we formed in 2021 to develop and operate our Bitcoin mining business.
Equipment Purchases From 2021 through 2024, we have purchased an aggregate of 6,270 Antminer Bitcoin mining machines of varying configurations, as follows: Type of Miner Year Delivered Avg TH/Power Number of Miners S19J Pro 2022 100/2950 2,773 S19J Pro 2023 100/2950 2,691 S19 XP 2023 140/3010 497 S21 2024 200/3500 309 We have written off approximately 430 machines as of December 31, 2024.
As of December 31, 2024, we own approximately 5,840 machines with total hashing capacity of approximately 0.634 EH/s.
Mining Site As of December 31, 2024, we owned a 15 MW hosting site located in Oklahoma ( Oklahoma site ) with 3,006 installed S19J Pro Antminer machines which have a total projected hashrate of 301 PH.
As of March 15, 2025, we have 4,320 installed S19 J Pro Antminer machines at the Oklahoma site which have a total projected hashrate of 432 PH.
We have another 719 mining machines in storage at the Oklahoma site.
During fiscal year 2024, we moved 5,039 mining machines from our three hosting companies to the Oklahoma site of which approximately 2,033 were stored in containers at Oklahoma site and not plugged into power as of December 31, 2024.
Hosting Contracts The Company used three companies to host its miners in 2024: Core Scientific Inc.
( Core ), Giga Energy Inc ( GIGA ) and Tech Infrastructure JV I LLC ( Tech Infrastructure ).
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