10-K/A: LM Funding America Files Amended 10-K to Update Director and Executive Information

LM Funding America amends its annual report on Form 10-K to update information regarding directors, executive officers, compensation, and related matters.

Summary

• LM Funding America, Inc. filed an amendment to its annual report on Form 10-K for the year ended December 31, 2024.
• The amendment restates Items 10, 11, 12, 13, and 14 of Part III of the Form 10-K to provide information previously intended to be incorporated by reference from the company's proxy statement.
• The amendment also includes updated certifications from the company's principal executive officer and principal financial officer, and updates the Exhibit Index to reflect the inclusion of these certifications.
• The document provides details on the company's directors, including their backgrounds and experience.
• It also outlines the compensation of the company's named executive officers for 2024 and 2023, including salary, bonus, stock awards, and other compensation.
• The filing details the security ownership of certain beneficial owners and management, as of April 28, 2025.
• The document also describes certain relationships and related transactions, and director independence.
• Finally, it discloses the principal accounting fees and services provided by MaloneBailey, LLP for 2024 and 2023, with audit fees totaling $486,820 in 2024 and $373,375 in 2023.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing, presenting factual information about the company's directors, executive compensation, and corporate governance. The sentiment is neutral to slightly positive as it reflects compliance and transparency.

Positives

• The company has a majority of independent directors, ensuring oversight and governance.
• The company has established key committees (Audit, Compensation, and Nominating and Governance) to manage various aspects of its operations.
• The company has adopted a code of ethics and insider trading policies to promote compliance and ethical behavior.

Future Outlook

The amendment does not reflect events occurring after the date of the Original Filing or modify or update those disclosures that may be affected by subsequent events; such subsequent matters are addressed in subsequent reports filed by the Company with the SEC.

Industry Context

This filing is a standard regulatory requirement for publicly traded companies to ensure transparency and provide updated information to investors.

Comparison to Industry Standards

• The director compensation program, with annual retainers and stock option awards, is generally in line with industry standards for companies of similar size and market capitalization.
• The audit fees paid to MaloneBailey, LLP should be compared to those of peer companies to assess whether they are reasonable and competitive.

Related Party Transactions

• The Company engaged BLG on behalf of many of its Association clients to service and collect the accounts and to distribute the proceeds as required by Florida law and the provisions of the purchase agreements between the Company and the Associations.
• One of our directors, Ms. Gould, served as the General Manager of BLG and also currently serves as the General Manager of BLGAL.
• Initially, the Company paid BLG a fixed monthly fee of $82,000 per month for services rendered.
• On February 1, 2022, the Services Agreement was amended to reduce the monthly compensation payable under the Services Agreement to $53,000, and on March 28, 2024, the Services Agreement was amended to further reduce the monthly compensation payable under the Services Agreement to $43,000.
• Further, a termination fee of $150,000 was paid to BLG in connection with the assignment of the Services Agreement.

Stakeholder Impact

• Shareholders receive updated information on the company's leadership and governance.
• Employees are subject to the company's code of ethics and insider trading policies.
• The company's relationships with related parties are disclosed, ensuring transparency.

Next Steps

• The company will continue to file subsequent reports with the SEC to address matters occurring after the date of the original filing.
• Shareholders may communicate with the Board of Directors through the established procedures.

Key Dates

Keywords

directors, executive compensation, corporate governance, audit fees, LM Funding America, 10-K/A, financial reporting