LM Funding America, Inc. Reports Annual 2021 Financial Results

TAMPA, Fla., March 31, 2022

"In 2021, we took critical steps to reposition our company into mining Bitcoin while also improving our capitalization structure and balance sheet," said Bruce Rodgers, LM Funding's Chief Executive Officer. "We were successful in closing a $31.5 million equity offering to fund our investment in Bitcoin mining machines and infrastructure."

Full Year 2021 Highlights:

• Generated approximately $31.5 million in net proceeds from an equity offering that is being used to fund our digital asset expansion for which we ordered 5,046 ASIC mining machines from Bitmain for approximately $31.6 million and hosting equipment from Bit5ive for approximately $3.1 million. We currently anticipate the ASIC mining machines to be delivered sometime in the 2^nd quarter of 2022 subject to issues surrounding worldwide logistics impacted by COVID-19 and the war in Ukraine.
• We also received approximately $10.2 million from warrant holders upon the exercise into common shares.
• Operating revenues totaled approximately $0.9 million as compared to approximately $1.26 million for prior year.
• Operating loss increased to approximately $8.4 million as compared to approximately $4.1 million for the prior year due mainly to a $3 million increase in compensation, including stock compensation expense and bonuses, an approximately $0.4 million increase in professional fees and an approximately $0.2 million reduction in the recoupment of a previous bad debt write-off associated with a related party.
• The Company engaged in several opportunistic specialty financing solutions which contributed to net income from continuing operations of approximately $5.0 million as compared to an approximately $4.1 million loss for the prior year. This improvement in operations was due in part to:
• An innovative troubled financing solution that resulted in the realized gain of approximately $13.8 million on the sale of securities.
• Realized gain of approximately $0.5 million from the sale of digital assets, which included Bitcoin.
• Unrealized gain of approximately $0.9 million for investment in LMF Acquisition Opportunities Inc. a special purpose acquisition corporation.
• Net income attributable to LM Funding America Inc was approximately $4.8 million after deducting $0.2 million for the net income attributable to a non-controlling interest as compared to a net loss of approximately $4.0 million for the prior year.

On October 19, 2021, the Company closed an underwritten public offering that included the underwriters' exercise of its option to purchase additional shares, which resulted in the issuance of approximately 7.26 million shares of its common stock and common warrants to up to approximately 7.48 million shares of the Company's common stock. At closing, LM Funding received net proceeds from the offering of approximately $31.5 million.

About LM Funding America:
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.  

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," "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. 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.