LM Funding America (LMFA) Registration Filing summary

Company overview and business model

• Operates two main businesses: cryptocurrency mining (Bitcoin) and specialty finance for nonprofit community associations, primarily in Florida.

• Bitcoin mining is conducted through a wholly owned subsidiary, US Digital Mining and Hosting Co, LLC, with operations started in late September 2022.

• Specialty finance business involves purchasing rights to delinquent association receivables and providing funding to associations, including through the New Neighbor Guaranty program.

• Utilizes proprietary software to service receivables and partners with law firms for collections.

Financial performance and metrics

• As of September 6, 2024, 2,806,857 shares of common stock are issued and outstanding; no preferred stock is outstanding.

• Outstanding warrants (excluding prefunded) total 3,011,177 shares at an average exercise price of $2.94 per share.

Use of proceeds and capital allocation

• Will not receive proceeds from the resale of shares by the selling securityholder.

• May receive up to $5.2 million in gross proceeds if all common warrants are exercised in cash at $2.98 per share; proceeds will be used for working capital and general corporate purposes.