lmfa-ex991

TAMPA, FL May 16, 2022 – LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a technology-based specialty finance company offering unique funding solutions to community associations that has expanded into the cryptocurrency mining business, today announced its financial results for the three months ended March 31, 2022.

“We are excited to receive our first shipments of mining machines from Bitmain and look forward to generating our first Bitcoin anticipated in the third quarter of 2022,” stated Mr. Bruce Rodgers, Chief Executive Officer and Chairman of LM Funding. “We expect the recent downturn in Bitcoin pricing may provide us with pricing discounts on machines we currently have under contract as well as opportunities to purchase additional machines at lower prices.”

On April 21, 2022, LMF Acquisition Opportunities, Inc. (“LMAO”) entered into an Agreement and Plan of Merger with LMF Merger Sub, Inc., a Delaware corporation and direct, wholly owned subsidiary of LMAO, and SeaStar Medical, Inc., a Delaware corporation.

LM Funding America, Inc., together with its subsidiaries, is 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. The company offers funding to Associations by purchasing a certain portion of the associations' rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments. The company is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association's financial needs, including under the company’s New Neighbor Guaranty™ program. The company is also entering the cryptocurrency mining business through a new subsidiary, US Digital Mining and Hosting Co., LLC.

This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. 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. Important factors which could materially affect our results and our future performance include, without limitation, our ability to implement our plan to develop and grow a cryptocurrency mining business specializing in Bitcoin,our ability to purchase defaulted consumer receivables at appropriate prices, competition to acquire such receivables, our dependence upon third party law firms to service our accounts, our ability to obtain funds to purchase receivables, ability to manage growth or declines in the business, changes in government regulations that affect our ability to collect sufficient amounts on our defaulted consumer receivables, the impact of class action suits and other litigation, our ability to keep our software systems

updated to operate our business, our ability to employ and retain qualified employees, our ability to establish and maintain internal accounting controls, changes in the credit or capital markets, changes in interest rates, deterioration in economic conditions, and negative press regarding the debt collection industry which may have a negative impact on a debtor’s willingness to pay the debt we acquire, as well as other factors set forth under “Risk Factors” in our most recent Annual Report on Form 10-K and our other filings with the SEC, which are available at www.sec.gov. The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial condition, and results of operations.

	For the Three Months Ended March 31,
	2022			2021
Revenues:
Interest on delinquent association fees	$	101,268		$	77,444
Administrative and late fees		16,708			15,071
Recoveries in excess of cost - special product		17,365			29,473
Underwriting and other revenues		16,791			22,703
Rental revenue		38,872			31,917
Total revenues		191,004			176,608

Operating Expenses:
Staff costs and payroll		4,292,197			1,301,981
Professional fees		774,820			482,943
Settlement costs with associations		160			-
Selling, general and administrative		114,920			99,769
Recovery of cost from related party receivable		-			(10,000	)
Real estate management and disposal		31,481			18,290
Depreciation and amortization		3,094			1,696
Collection costs		(3,820	)		2,048
Other operating expenses		8,384			7,545
Total operating expenses		5,221,236			1,904,272
Operating loss		(5,030,232	)		(1,727,664	)
Realized gain (loss) on securities		(395,181	)		5,671,464
Unrealized gain on convertible debt security		288,320			-
Unrealized gain on marketable securities		130			-
Unrealized gain (loss) on investment and equity securities		(986,399	)		595,392
Digital assets other income		4,366			-
Interest income		98,370			13,055
Interest expense		-			(464	)
Dividend income		1,375			-

Income (loss) before income taxes		(6,019,251	)		4,551,783
Income tax expense		-			(3,484	)
Net income (loss)		(6,019,251	)		4,548,299
Less: Net income (loss) attributable to non-controlling interest		291,200			(171,866	)
Net income (loss) attributable to LM Funding America Inc.	$	(5,728,051	)	$	4,376,433

Earnings/(loss) per share:
Basic income (loss) per common share - net income (loss) - attributable to LM Funding	$	(0.44	)	$	0.87
Diluted income (loss) per common share - net income (loss) - attributable to LM Funding	$	(0.44	)	$	0.80
Weighted average number of common shares outstanding:
Basic		13,060,736			5,047,498
Diluted		13,060,736			5,439,398

	March 31, 2022			December 31, 2021
	(Unaudited)
ASSETS
Cash	$	24,536,467		$	32,559,185
Finance receivables:
Original product - net		20,543			13,993
Special product - New Neighbor Guaranty program, net of allowance for credit losses of		16,148			14,200
Short-term investments - convertible debt securities (Note 7)		845,424			539,351
Marketable securities (Note 7)		308,950			2,132,051
Short-term investments - debt security (Note 7)		2,106,082			2,000,000
Prepaid expenses and other assets		944,464			1,251,852
Income tax receivable (Note 4)		143,822			-
Note receivable from related party (Note 7)		310,000			-
Digital assets, net (Note 9)		504,366			-
Current assets		29,736,266			38,510,632
Fixed assets, net		14,820			17,914
Real estate assets owned		80,057			80,057
Operating lease - right of use assets (Note 5)		337,413			59,969
Long-term investments - equity securities (Note 7)		949,754			1,973,413
Investments in unconsolidated affiliates (Note 7)		4,713,390			4,676,130
Deposit on mining equipment (Note 8)		23,893,672			16,775,100
Other assets		10,726			10,726
Long-term assets		29,999,832			23,593,309
Total assets	$	59,736,098		$	62,103,941

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses		325,489			463,646
Note payable - short-term (Note 3)		57,344			114,688
Due to related party (Note 2)		373,800			121,220
Current portion of lease liability (Note 5)		90,072			68,002
Income tax payable (Note 4)		-			326,178
Other liabilities		1,725			-
Total current liabilities		848,430			1,093,734
Lease liability - long-term (Note 5)		248,475			-
Long-term liabilities		248,475			-
Total liabilities		1,096,905			1,093,734

Stockholders’ equity:
Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively		-			-
Common stock, par value $0.001; 350,000,000 shares authorized; 13,091,883 and 13,017,943 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively		13,092			13,018
Additional paid-in capital		78,173,269			74,525,106
Accumulated deficit		(19,505,057	)		(13,777,006	)
Total stockholders’ equity		58,681,304			60,761,118
Non-controlling interest		(42,111	)		249,089
Total stockholders’ equity		58,639,193			61,010,207
Total liabilities and stockholders’ equity	$	59,736,098		$	62,103,941

	For the Three Months Ended March 31,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(6,019,251	)	$	4,548,299
Adjustments to reconcile net loss to cash used in operating activities
Depreciation and amortization		3,094			1,696
Right to use non cash lease expense		23,343			25,808
Stock compensation		329,500			-
Stock option expense		3,318,737			-
Accrued investment income		(96,657	)		(12,784	)
Digital assets other income		(4,366	)
Gain on deconsolidation of affiliate		-			(43,623	)
Unrealized gain on convertible debt security		(288,320	)		-
Unrealized gain on marketable securities		(130	)		(595,392	)
Unrealized loss on investment and equity securities		986,399			-
Realized (gain) loss on securities		395,181			(5,671,464	)
Proceeds from securities		1,428,050			21,218,918
Investment in convertible note receivable converted into marketable security		-			(15,547,454	)
Change in assets and liabilities
Prepaid expenses and other assets		280,208			710,163
Digital assets, net		(500,000	)		-
Accounts payable and accrued expenses		(136,430	)		157,514
Advances (repayments) from related party		252,580			200,749
Lease liability payments		(30,242	)		(24,971	)
Income tax payable		(326,178	)		3,484
Income tax receivable		(143,822	)		-
Net cash provided by (used in) operating activities		(528,304	)		4,970,943

CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections of finance receivables - original product		(6,550	)		14,206
Net collections of finance receivables - special product		(1,948	)		(1,020	)
Payments for real estate assets owned		-			(62,432	)
Deposit for mining equipment		(7,118,572	)		-
Investment in convertible note receivable		-			(1,666,500	)
Loan to purchase securities		-			1,784,250
Investment in note receivable - related party		(310,000	)		-
Repayment of loan to purchase securities		-			(1,784,250	)
Investment in unconsolidated affiliate		-			(5,738,000	)
Net cash (used in) provided by investing activities		(7,437,070	)		(7,453,746	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal repayments		-			(343,687	)
Insurance financing repayments		(57,344	)		(468,061	)
Exercise of warrants		-			9,544,623
Net cash provided by (used in) financing activities		(57,344	)		8,732,875
NET INCREASE (DECREASE) IN CASH		(8,022,718	)		6,250,072
CASH - BEGINNING OF YEAR		32,559,185			11,552,943
CASH - END OF YEAR	$	24,536,467		$	17,803,015

SUPPLEMENTAL DISCLOSURES OF NON-CASHFLOW INFORMATION
ROU assets and operating lease obligation recognized	$	300,787		$	-
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION
Cash paid for taxes	$	470,000			-