Financial Obligation (Form 8-K)

Item 2.03 Creation of a Direct Financial Obligation

SE & AJ Liebel Second Tranche Funding

As previously disclosed, on September 15, 2025, LM Funding America, Inc. (the "Company") entered into an Amendment to Loan Agreement and Loan Documents (the "Loan Agreement Amendment") by and among the Company, each of LM Funding, LLC and US Digital Mining and Hosting Co., LLC (subsidiaries of the Company), as guarantors (jointly and severally, the "Guarantors"), and SE & AJ Liebel Limited Partnership, as lender (the "Lender"). The Loan Agreement Amendment amended the Loan Agreement previously entered into on August 6, 2024, among the Company, the Guarantors, and the Lender. Pursuant to the Loan Agreement Amendment, the Company obtained an additional loan of up to $2.0 million from the Lender comprised of a $1.3 million advance on the date of the Loan Agreement Amendment and an additional borrowing in the amount of $700,000 that the Company had the right to draw down in a second tranche (the "Second Tranche").

In accordance with the terms of the Loan Agreement Amendment, on October 21, 2025, the Company provided notice to the Lender requesting funding of the Second Tranche in an amount equal to $700,000, and on the same day, the Lender advanced the Second Tranche to the Company net of certain loan fees.