LM Funding (LMFA) director option award: 52,380 shares at $1.26

Rhea-AI Filing Summary

LM Funding America, Inc. (LMFA) director Martin A. Traber was granted options to purchase 52,380 shares of common stock on 08/27/2025 under the Non-Employee Director Compensation Plan. The options have an exercise price of $1.26 per share and 52,380 underlying common shares are reported as beneficially owned following the grant. The filing states the options will vest one-half on the 180th day after the grant date and one-half on the first anniversary of the grant date. The Form 4 is signed by an attorney-in-fact, Richard D. Russell, on 08/28/2025.

Positive

• Director alignment: Grant aligns Martin A. Traber’s incentives with shareholders through equity-based compensation
• Clear vesting schedule: Vesting terms specified as one-half after 180 days and one-half at the one-year anniversary
• Documented under plan: Award made under the Non-Employee Director Compensation Plan, indicating an established compensation framework

Negative

• None.

Insights

Corporate Governance Expert

TL;DR: Routine director equity award; aligns director incentives with shareholders without unusual terms.

The grant of 52,380 stock options at a $1.26 exercise price to a non-employee director is a standard governance practice to link compensation to company performance. The disclosed vesting schedule—half after 180 days and half at the one-year anniversary—is explicit and intended to retain board members. The award was made under the company’s Non-Employee Director Compensation Plan as amended on November 18, 2022, which indicates a pre-existing compensation framework rather than an ad hoc grant. This filing does not disclose accelerated vesting, special transfer restrictions, or other atypical provisions.

Securities Analyst

TL;DR: Incremental equity issuance to a director; not clearly material to valuation on its own.

The Form 4 reports an award of options representing 52,380 underlying shares exercisable at $1.26. The report shows those options as beneficially owned following the transaction. Because the filing contains only the grant details and vesting timetable, it provides limited information on aggregate outstanding options or dilution impact. Absent further disclosure of total share count or prior holdings in this filing, the award appears routine and not immediately value-altering by itself.

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^*

TRABER MARTIN A

(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 Options (right to buy)	$1.26	08/27/2025		A		52,380		(1)	08/27/2035	Common Stock	52,380	$0	52,380	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/ Richard D. Russell, Attorney-in-Fact for Martin A. Traber	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 LMFA director Martin A. Traber receive on 08/27/2025?

He was granted 52,380 stock options to purchase common stock with an exercise price of $1.26 per share.

When do the options granted to Martin A. Traber vest?

The filing states the options vest one-half on the 180th day after the grant date and one-half on the first anniversary of the grant date.

Under what plan were the options granted?

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

Who signed the Form 4 and when was it signed?

The Form 4 is signed by Richard D. Russell, Attorney-in-Fact for Martin A. Traber on 08/28/2025.

How many shares are reported as beneficially owned after the grant?

The filing reports 52,380 shares (underlying the options) as beneficially owned following the transaction.