PWCM 8-K
Powercompute, Inc. (PWCM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 14, 2026, LM Funding America, Inc. (the “Company”) issued a press release announcing its financial results for the Three and Six Months ended June 30, 2026.
The information furnished in this Item 2.02, including Exhibit 99.1, is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that Section. This information will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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Exhibit |
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Description |
99.1 |
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104 |
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Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL) |
***
This Current Report on Form 8-K may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainty. Words such as “anticipate,” “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. Such statements are based on the Company’s current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Investors are cautioned that there can be no assurance actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various risks and uncertainties. Investors should refer to the risks detailed from time to time in the reports the Company files with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as well as other filings on Form 10-Q and periodic filings on Form 8-K, for additional factors that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PowerCompute, Inc. |
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Date: |
August 14, 2026 |
By: |
/s/ Richard Russell |
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Richard Russell, Chief Financial Officer |
PowerCompute Reports Second Quarter 2026 Financial Results
Agreement with Vast.ai Marks the Company's Entry into the HPC and AI infrastructure Market
Revenues Increased 9.8% Year-Over-Year; Mined 27.9 Bitcoin in the Second Quarter of 2026
Subsequent to Quarter End, the Company Strengthened Its Balance Sheet by Refinancing $18 Million of Debt through New Debt Facility with Arch Lending, Significantly Lowering Interest Costs
TAMPA, Fla., August 14, 2026 -- PowerCompute, Inc. (NASDAQ: PWCM) (“PowerCompute” or the “Company”), a Bitcoin treasury and mining company expanding into high-performance computing (“HPC”) and artificial intelligence (“AI”) infrastructure, today reported financial results for the three and six months ended June 30, 2026.
Q2’26 Financial Results
Q2’26 and Recent Operational Highlights
Management Commentary
"During the second quarter we made the decision to expand our strategic direction into HPC and AI infrastructure," said Bruce Rodgers, Chairman, President and Chief Executive Officer of PowerCompute. "Our power-first approach remains our central advantage: we own 26 megawatts of energized, low-cost capacity today, and greenfield power takes years to replicate. Our work now is converting that advantage into contracted compute revenue.
"Our proof-of-concept deployment in Oklahoma is underway and has begun generating initial revenue from our engagements generated through Vast. The deployment is small and early, and we are treating it as a learning exercise rather than a milestone. The refinancing we completed after quarter-end lowered our borrowing cost materially, though the facility is short-dated and we remain focused on strengthening our liquidity position. We have real work ahead, and we intend to do it deliberately."
"Revenue was flat sequentially amid the continued soft Bitcoin price environment and grew 9.8% year-over-year on higher Bitcoin production," said Richard Russell, Chief Financial Officer of PowerCompute. "Core EBITDA loss narrowed to $2.8 million from $8.4 million in Q1 2026, largely because a smaller decline in Bitcoin price reduced the fair market value adjustment on mined Bitcoin by $2.5million and $1.5 million on the Loss on fair value of digital assets receivable. That improvement reflects Bitcoin price movement rather than a change in operating performance; mining margin was 29.0% for the quarter, down from 41.0% a year ago on lower Bitcoin prices. Following quarter-end we refinanced approximately $18 million of debt with Arch Lending at an interest rate of approximately 2% APR, compared with 12% on the prior financing package, materially reducing our interest expense. The Arch facility is a 30-day revolving facility secured by Bitcoin from our treasury, and its rate and availability are subject to renewal.”
Investor Conference Call
PowerCompute will host a conference call today, Friday, August 14, 2026 at 8:30 AM EDT, to discuss these results. A question-and-answer session will follow management's presentation.
Conference Call Details:
About PowerCompute
PowerCompute, Inc. (Nasdaq: PWCM) is a Bitcoin treasury and mining company expanding into high-performance computing and artificial intelligence infrastructure. Founded in 2008 and headquartered in Tampa, Florida, the Company
operates 26 megawatts of wholly-owned power infrastructure across facilities in Oklahoma and Mississippi. The Company also operates a technology-enabled specialty finance business providing funding to nonprofit community associations primarily in the State of Florida. For more information, please visit https://www.power-compute.com.
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, the volatility of Bitcoin and other cryptocurrency prices, risks related to the use of Bitcoin as collateral for the Arch Facility, including the requirement to post additional collateral if the value of Bitcoin declines, our ability to satisfy the terms and conditions of the Arch Facility or to extend such loans on satisfactory terms, our ability to successfully enter and operate in the high-performance computing and AI infrastructure business, the availability and cost of GPU and related infrastructure equipment, competition in the HPC and AI compute market, our ability to finance our site acquisitions and cryptocurrency mining operations, the risks of operating in the cryptocurrency mining business and our ability to grow that business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, and our ability to identify and acquire additional mining sites. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations.
Investor and Media Contact
KCSA Strategic Communications
Philip Carlson
212-896-1233
PowerCompute, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)
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Three Months ended June 30, |
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Six Months ended June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
Revenues: |
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Digital mining revenues |
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$ 2,008,220 |
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$ 1,806,364 |
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$ 3,986,400 |
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$ 4,080,304 |
Specialty finance revenue |
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87,771 |
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94,945 |
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195,428 |
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162,334 |
Rental revenue |
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20,593 |
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27,015 |
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43,723 |
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57,023 |
Total revenues |
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2,116,584 |
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1,928,324 |
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4,225,551 |
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4,299,661 |
Operating costs and expenses: |
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Digital mining cost of revenues (exclusive of depreciation and amortization shown below) |
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1,571,273 |
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1,288,399 |
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3,439,617 |
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2,836,694 |
Curtailment and energy sales |
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(145,071) |
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(223,269) |
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(512,666) |
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(372,955) |
Staff costs and payroll |
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1,113,824 |
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1,087,627 |
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2,431,099 |
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2,138,104 |
Depreciation and amortization |
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840,142 |
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2,039,343 |
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1,669,970 |
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4,076,921 |
Loss (gain) on fair value of Bitcoin, net |
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1,318,607 |
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(3,761,139) |
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5,103,025 |
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(1,951,163) |
Professional fees |
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450,389 |
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308,829 |
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796,083 |
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673,314 |
Selling, general and administrative |
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345,317 |
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375,420 |
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721,745 |
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685,384 |
Real estate management and disposal |
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20,008 |
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22,420 |
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33,383 |
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58,734 |
Collection costs |
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12,804 |
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8,589 |
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25,184 |
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25,941 |
Settlement costs with associations |
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- |
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- |
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- |
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3,693 |
Loss (gain) on disposal of assets |
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(2,739) |
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99,578 |
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(2,739) |
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286,359 |
Other operating costs |
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447,123 |
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259,012 |
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808,218 |
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514,960 |
Total operating costs and expenses |
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5,971,677 |
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1,504,809 |
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14,512,919 |
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8,975,986 |
Operating income (loss) |
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(3,855,093) |
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423,515 |
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(10,287,368) |
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(4,676,325) |
Unrealized gain (loss) on marketable securities |
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8,110 |
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(5,110) |
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5,730 |
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(13,820) |
Unrealized gain (loss) on investment and equity securities |
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(1,111) |
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(130,890) |
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12,913 |
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(156,874) |
Impairment loss on prepaid mining machine deposit |
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(17,193) |
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- |
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(17,193) |
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- |
Gain on Galaxy loan derivative |
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1,669,659 |
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- |
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1,692,033 |
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- |
Loss on fair value of purchased Bitcoin, net |
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- |
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- |
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- |
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(52,704) |
Loss on fair value of digital assets receivable |
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(1,700,773) |
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- |
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(4,879,213) |
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- |
Change in credit loss reserve on digital assets receivable |
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3,393 |
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- |
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9,187 |
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- |
Interest expense |
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(687,087) |
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(227,546) |
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(1,232,258) |
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(448,452) |
Interest income |
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14,532 |
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531 |
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15,064 |
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1,676 |
Income (loss) before income taxes |
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(4,565,563) |
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60,500 |
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(14,681,105) |
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(5,346,499) |
Income tax expense |
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- |
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- |
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- |
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- |
Net income (loss) |
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$ (4,565,563) |
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$ 60,500 |
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$(14,681,105) |
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$(5,346,499) |
Less: loss (gain) attributable to non-controlling interest |
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1,253 |
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40,054 |
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(2,419) |
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48,379 |
Net income (loss) attributable to PowerCompute, Inc. |
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$ (4,564,310) |
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$ 100,554 |
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$(14,683,524) |
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$ (5,298,120) |
Less: deemed dividends (Note 6) |
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(40,023) |
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- |
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(40,023) |
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- |
Net income (loss) attributable to common shareholders |
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$ (4,604,333) |
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$ 100,554 |
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$(14,723,547) |
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$ (5,298,120) |
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Basic income (loss) per common share (Note 1) |
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$ (5.26) |
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$ 0.49 |
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$ (16.99) |
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$ (25.80) |
Diluted income (loss) per common share (Note 1) |
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$ (5.26) |
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$ 0.49 |
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$ (16.99) |
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$ (25.80) |
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Weighted average number of common shares outstanding |
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Basic |
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875,050 |
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205,336 |
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866,689 |
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205,336 |
Diluted |
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875,050 |
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205,336 |
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866,689 |
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205,336 |
PowerCompute, Inc. and Subsidiaries Consolidated Balance Sheets
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June 30, |
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December 31, |
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2026 |
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2025 |
Assets |
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Cash |
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$ 853,788 |
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$ 1,424,426 |
Marketable securities |
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43,110 |
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37,380 |
Prepaid expenses and other assets |
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759,533 |
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1,198,486 |
Finance receivables |
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3,272 |
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17,533 |
Digital assets - current (Note 2) |
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751,547 |
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2,563,474 |
Digital assets - collateral (Note 2) |
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5,500,000 |
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5,500,000 |
Digital assets receivable, net (Note 2) |
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10,183,164 |
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12,678,014 |
Galaxy loan derivative asset (Note 4) |
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979,600 |
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47,673 |
Income tax receivable |
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- |
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31,187 |
Current assets |
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19,074,014 |
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23,498,173 |
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Fixed assets, net (Note 3) |
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8,620,463 |
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9,917,350 |
Intangible assets, net (Note 3) |
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6,196,193 |
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6,327,769 |
Deposits on mining equipment |
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14,974 |
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1,597 |
Investment in Seastar Medical Holding Corporation |
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37,986 |
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25,073 |
Digital assets - long-term (Note 2) |
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- |
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8,233,035 |
Digital assets - collateral (Note 2) |
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2,200,000 |
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2,200,000 |
Right of use assets (Note 5) |
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617,099 |
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728,995 |
Other assets |
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325,988 |
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384,234 |
Long-term assets |
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18,012,703 |
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27,818,053 |
Total assets |
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$ 37,086,717 |
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$ 51,316,226 |
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Liabilities and stockholders’ equity |
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Accounts payable and accrued expenses |
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1,515,657 |
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1,745,875 |
Note payable - short-term (Note 4) |
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6,588,035 |
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7,006,912 |
Master digital currency loan (Note 4) |
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10,809,494 |
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10,920,838 |
Due to related parties (Note 7) |
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76,826 |
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48,319 |
Current portion of lease liability (Note 5) |
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207,472 |
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194,618 |
Total current liabilities |
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19,197,484 |
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19,916,562 |
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Note payable - long-term (Note 4) |
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1,952,752 |
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1,932,502 |
Lease liability - net of current portion (Note 5) |
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411,972 |
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590,368 |
Long-term liabilities |
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2,364,724 |
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2,522,870 |
Total liabilities |
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21,562,208 |
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22,439,432 |
Stockholders’ equity (Note 6) |
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Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and December 31, 2025 |
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- |
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- |
Common stock, par value $.001; 350,000,000 shares authorized; 934,662 and 564,940 shares issued and outstanding as of June 30, 2026 and December 31, 2025 |
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935 |
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565 |
Additional paid-in capital |
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124,528,398 |
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123,199,948 |
Accumulated deficit |
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(107,266,452) |
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(92,582,928) |
Total PowerCompute stockholders’ equity |
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17,262,881 |
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30,617,585 |
Non-controlling interest |
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(1,738,372) |
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(1,740,791) |
Total stockholders’ equity |
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15,524,509 |
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28,876,794 |
Total liabilities and stockholders’ equity |
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$ 37,086,717 |
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$ 51,316,226 |
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PowerCompute, Inc. and Subsidiaries Consolidated Statements of Cash Flows
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Six Months ended June 30, |
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2026 |
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2025 |
CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net loss |
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$ (14,681,105) |
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$ (5,346,499) |
Adjustments to reconcile net loss to net cash used in operating activities |
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Depreciation and amortization |
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1,669,970 |
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4,076,921 |
Noncash lease expense |
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111,896 |
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96,373 |
Amortization of debt issue costs and debt discount |
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711,540 |
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42,528 |
Stock option expense |
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530,448 |
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135,426 |
Accrued interest expense on finance lease |
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26,244 |
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30,553 |
Loss (gain) on fair value of Bitcoin, net |
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5,103,025 |
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(1,898,459) |
Loss on fair value of digital assets receivable |
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4,879,213 |
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- |
Impairment loss on mining machine deposit |
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17,193 |
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- |
Unrealized loss (gain) on marketable securities |
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(5,730) |
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13,820 |
Gain on Galaxy loan derivative |
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(1,692,033) |
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- |
Change in credit loss reserve on digital assets receivable |
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(9,187) |
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- |
Unrealized loss (gain) on investment and equity securities |
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(12,913) |
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156,874 |
Loss (gain) on disposal of fixed assets |
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(2,739) |
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286,359 |
Write-off of income tax receivable |
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31,187 |
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- |
Change in operating assets and liabilities: |
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Prepaid expenses and other assets |
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480,006 |
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398,424 |
Due to related party |
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28,507 |
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5,449 |
Accounts payable and accrued expenses |
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(230,218) |
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540,514 |
Mining of digital assets |
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(3,986,400) |
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(4,080,304) |
Lease liability payments |
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(191,786) |
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(171,474) |
Net cash used in operating activities |
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(7,222,882) |
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(5,713,495) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
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Net collections (investment) of finance receivables - original product |
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8,332 |
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(2,434) |
Net collections (investment) in finance receivables - special product |
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5,929 |
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(2,635) |
Capital expenditures |
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(252,145) |
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(377,212) |
Collection of note receivable |
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- |
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200,000 |
Proceeds from sale of fixed assets |
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- |
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953,153 |
Investment in digital assets - Tether |
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(5,296) |
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(30,315) |
Proceeds from sale of Bitcoin |
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6,555,285 |
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3,323,773 |
Proceeds from the sale of Tether |
|
3,173 |
|
29,460 |
Change in deposits for mining equipment |
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- |
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(986,690) |
Distribution to members |
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- |
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(1,015) |
Net cash provided by investing activities |
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6,315,278 |
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3,106,085 |
CASH FLOWS FROM FINANCING ACTIVITIES: |
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Insurance financing repayments |
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(461,406) |
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(410,877) |
Proceeds from warrant exercise, net of issuance costs |
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2,909 |
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- |
Proceeds from the issuance of common stock, net of issuance costs |
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795,463 |
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- |
Issuance costs |
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- |
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(6,285) |
Net cash provided by (used in) financing activities |
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336,966 |
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(417,162) |
NET DECREASE IN CASH |
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(570,638) |
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(3,024,572) |
CASH - BEGINNING OF PERIOD |
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1,424,426 |
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3,378,152 |
CASH - END OF PERIOD |
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$ 853,788 |
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$ 353,580 |
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SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES |
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Insurance financing |
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$ - |
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$ 168,324 |
Recognition of Galaxy loan derivative |
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$ 760,105 |
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$ - |
Digital assets transferred to digital assets receivable, net |
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$ 2,375,176 |
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$ - |
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION |
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Cash paid for taxes |
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$ - |
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$ - |
Cash paid for interest |
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$ 568,015 |
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$ 337,850 |
Non-GAAP Financial Measures
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 (gain) on investment and equity securities, loss (gain) on disposal of mining equipment, loss on impairment of prepaid mining machine deposits, 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:
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Three Months ended June 30, |
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Six Months ended June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Net income (loss) |
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$ (4,565,563) |
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$ 60,500 |
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$(14,681,105) |
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$ (5,346,499) |
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Income tax expense |
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- |
|
- |
|
|
- |
|
- |
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Interest expense |
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687,087 |
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227,546 |
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|
1,232,258 |
|
448,452 |
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Depreciation and amortization |
|
840,142 |
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2,039,343 |
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|
1,669,970 |
|
4,076,921 |
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Income (loss) before interest, taxes & depreciation |
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$ (3,038,334) |
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$ 2,327,389 |
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$ (11,778,877) |
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$ (821,126) |
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Unrealized loss (gain) on investment and equity securities |
|
1,111 |
|
130,890 |
|
|
(12,913) |
|
156,874 |
||
Impairment loss on prepaid mining machine deposits |
|
17,193 |
|
- |
|
|
17,193 |
|
- |
||
Loss (gain) on disposal of mining equipment |
|
(2,739) |
|
99,578 |
|
|
(2,739) |
|
286,359 |
||
Stock compensation and option expense |
|
199,299 |
|
24,621 |
|
|
530,448 |
|
135,426 |
||
Core income (loss) before interest, taxes & depreciation |
|
$ (2,823,470) |
|
$ 2,582,478 |
|
|
$ (11,246,888) |
|
$ (242,467) |
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|
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