SCHEDULE: Intracoastal Capital Discloses 7.6% Stake in LM Funding

Intracoastal Capital LLC, along with Mitchell P. Kopin and Daniel B. Asher, reported a 7.6% beneficial ownership stake in LM Funding America, Inc. as of December 29, 2025.

Summary

• Mitchell P. Kopin, Daniel B. Asher, and Intracoastal Capital LLC (collectively, the "Reporting Persons") have filed a Schedule 13G, disclosing their beneficial ownership in LM Funding America, Inc. Common Stock.
• As of December 29, 2025, the Reporting Persons collectively beneficially owned 1,166,207 shares of Common Stock, representing 7.6% of the class.
• This ownership consists of 161,451 shares directly held by Intracoastal Capital and 1,004,756 shares issuable upon the exercise of Intracoastal Warrant 1.
• The beneficial ownership calculation is based on 12,209,413 shares of Common Stock outstanding as of December 19, 2025, plus additional shares issued and issuable from warrants.
• The Reporting Persons initially held approximately 9.99% beneficial ownership (1,355,094 shares) immediately following the execution of a Securities Purchase Agreement (SPA) on December 19, 2025.
• Several warrants (Intracoastal Warrant 1, 2, and 3) contain blocker provisions, limiting exercise if it would result in beneficial ownership exceeding 9.99% or 4.99% (for Warrant 3) of the Common Stock.
• Intracoastal Warrant 2 is not exercisable until stockholder approval of the issuance of its underlying shares.
• The Reporting Persons certify that the securities were not acquired and are not held for the purpose of changing or influencing control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 5

Explanation: The filing is a factual disclosure of beneficial ownership and does not contain information that would significantly alter the perceived sentiment towards the company, beyond confirming a significant passive investment.

Positives

• The filing indicates a significant passive investment by a group of investors, which can be interpreted as a vote of confidence in LM Funding America, Inc.'s long-term prospects.
• The passive nature of the investment, as indicated by the Schedule 13G filing, suggests the investors are not seeking to influence or change control of the company, potentially contributing to stability.

Negatives

• The reported beneficial ownership decreased from an initial 9.99% (1,355,094 shares) immediately after the SPA on December 19, 2025, to 7.6% (1,166,207 shares) as of December 29, 2025, primarily due to the application of blocker provisions and the specific calculation methodology for beneficial ownership.
• The presence of multiple warrants with complex blocker provisions (e.g., 9.99% and 4.99% limits) adds complexity to fully understanding the potential future ownership structure and dilution.

Risks

• The filing does not contain specific company-related operational or financial risks. It primarily details beneficial ownership.

Future Outlook

No explicit forward-looking statements or guidance regarding company performance, operational strategy, or financial projections are provided in this beneficial ownership disclosure.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11."

Industry Context

This filing is a standard disclosure of a significant passive ownership stake in a publicly traded company. It does not provide specific industry-wide trends or competitive analysis.

Related Party Transactions

• The filing details a Securities Purchase Agreement (SPA) between LM Funding America, Inc. and Intracoastal Capital LLC, which led to the issuance of shares and warrants to the Reporting Persons.

Stakeholder Impact

• Shareholders: The issuance of shares and warrants under the SPA could result in dilution, impacting existing shareholders' percentage ownership.
• Shareholders: The presence of a significant passive investor group (7.6%) may provide a level of stability and investor confidence, but also introduces a large block holder.

Key Dates

Keywords

LM Funding America Inc., Common Stock, Schedule 13G, Beneficial Ownership, Intracoastal Capital LLC, Mitchell P. Kopin, Daniel B. Asher, Passive Investment, Warrants, Blocker Provisions