LM Funding America director receives stock option covering 157,140 shares

Rhea-AI Filing Summary

Insider option grant reported: Andrew L. Graham, a director of LM Funding America, Inc. (LMFA), was granted a stock option on 08/27/2025 under the company's Non-Employee Director Compensation Plan. The option covers 157,140 shares of common stock with an exercise price of $1.26 per share and an expiration date of 08/27/2035.

The award vests in two equal tranches: one-half vests on the 180th day after the grant date and the remaining one-half vests on the first anniversary of the grant date. The Form 4 was signed by Andrew L. Graham on 08/28/2025 and discloses the grant as a direct beneficial ownership interest.

Positive

• Alignment of interests: Option grant links director compensation to shareholder outcomes by providing equity upside.
• Clear vesting schedule: Two-step vesting (180 days and one year) encourages continued board service and provides transparency.
• Proper disclosure: Form 4 reports direct beneficial ownership and includes exercise price and expiration date.

Negative

• Dilution risk: The grant covers 157,140 shares, which could dilute existing shareholders depending on total shares outstanding.
• Long exercise window: Options expire in 2035, extending potential dilution over a long period.

Insights

Financial Analyst

TL;DR: Routine director option grant; timing and size appear standard, limited immediate market impact.

The grant of 157,140 stock options at a $1.26 exercise price to a non-employee director aligns with typical compensation practices for boards of smaller public companies. Vesting is time-based in two equal tranches (180 days and one year), which encourages continued board service. Without additional context on outstanding share count or recent equity grants, the filing represents a governance/compensation item rather than a material corporate event.

Corporate Governance Expert

TL;DR: Compensation disclosure is clear and follows plan terms; vesting schedule is standard for director awards.

The Form 4 cites the Non-Employee Director Compensation Plan (amended November 18, 2022) as the grant vehicle. The two-step vesting (180 days and one year) is a common mechanism to retain independent directors. The filing properly reports direct beneficial ownership and provides the option expiration date, meeting Section 16 reporting standards. This is a routine governance disclosure with no stated exceptions or irregularities.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Graham Andrew L.

(Last) (First) (Middle)

1200 PLATT STREET

SUITE 100

(Street)

TAMPA FL 33606

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
LM FUNDING AMERICA, INC. [ LMFA ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director		10% Owner
	Officer (give title below)		Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
08/27/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option (right to buy)	$1.26	08/27/2025		A		157,140		(1)	08/27/2035	Common Stock	157,140	$0	157,140	D

Explanation of Responses:

1. Option awards to purchase shares of common stock were granted under the Non-Employee Director Compensation Plan, as amended on November 18, 2022. Shares subject to the options will vest as to one-half on the 180th day after the grant date and as to one-half on the date that is the first anniversary of the grant date.

	/s/ Andrew L. Graham	08/28/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

What did Andrew L. Graham report on his Form 4 for LMFA?

He reported a grant of a stock option covering 157,140 shares on 08/27/2025 with an exercise price of $1.26 and expiration on 08/27/2035.

How does the option vest according to the Form 4 for LMFA?

The option vests in two equal parts: one-half on the 180th day after the grant date and one-half on the first anniversary of the grant date.

Under which plan were the options granted in the LMFA Form 4?

Options were granted under the Non-Employee Director Compensation Plan, as amended on November 18, 2022.

When was the Form 4 signed and filed for LMFA?

The Form 4 was signed by Andrew L. Graham on 08/28/2025, reporting the 08/27/2025 grant.

Is the reported ownership direct or indirect in the LMFA Form 4?

The filing indicates the options and resulting shares are held with direct (D) beneficial ownership by the reporting person.