LM Funding America, Inc.

Greetings. Welcome to the LM Funding America Inc. Second Quarter 2023 Business Update Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to your host, Ted Avis. You may begin.

Good morning, and thank you for joining LM Funding America's second quarter 2023 conference call. On the call with us today are Bruce Rogers, Chief Executive Officer, and Richard Russell, Chief Financial Officer of LM Funding. This morning, the company announced its operating results for the quarter ended June 30, 2023, and our financial conditions as of that date. The press release is posted on the company's website, lmfunding.com. In addition, the company has filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. Before management reviews the company's operating results for the quarter ended June 30, 2023, and its financial condition as of that date, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations are forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to various risks, uncertainties, and assumptions described in the company's Form 10-K filed with the United States Securities and Exchange Commission on March 31, 2023. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur, and actual results could differ materially and adversely from these anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made in this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. In addition, Today's discussion will include references to non-GAAP measures. The company believes that such information provides an additional measurement and consistent historical comparison of its performance. A reconciliation of the non-GAAP measures to the most direct comparable GAAP measure is available in today's news release on our website. With that, I will now turn the call over to Bruce Rogers. Bruce?

Thanks, Ted. Good morning, and thanks to everyone for joining us today. On behalf of the LM funding team, I want to thank our shareholders for their continued patience with our share price through much of the second quarter. Our company made significant progress in the second quarter towards our Bitcoin mining and other objectives in furtherance of our strategic plans. We believe our strategic plans for our businesses will lead to considerable value for our shareholders. At June 30, 2023, we had approximately 5,230 mining machines electrified at hosting facilities and actively mining Bitcoin. During the quarter end of June 30, 2023, we mined 106.6 Bitcoin, a sequential increase of 16% compared to 91.6 Bitcoin mined in the first quarter of 2023, at an average market revenue value of $27,900 per Bitcoin. The current Bitcoin price has been higher and has fluctuated between $29,000 and $31,000 over the last several months. As of August 14, 2023, we have approximately 5,950 mining machines fully operational and mining, providing approximately 615 petahash of mining capacity. Looking ahead to the next Bitcoin halving event, projected to occur in 2024, our goal is to continue to procure more energy-efficient mining machines to boost our rep mining capacity and lower our average joules per terahash cost. In July, we announced that the company had installed Brains OS Plus software on 360 of its mining machines. We expect this to increase the hash rate on these machines by as much as 25%, which should lead to an increase in the number of Bitcoins that we can mine. In addition to increasing hash rate, there is further advantage to mining Bitcoin with machines operating Brains OS Plus software. as machines equipped with this software may mine with any pool or mine with brains pool without having to pay pool fees to brains. We believe the best use of our capital is to increase hash rate production through the purchase of additional miners and enhancements to their hashing capabilities. We pivoted our focus to Bitcoin mining with the purchase, delivery, and energization of our first miners completed at the end of 2022. We mined 53.4 Bitcoin in 2022, 91.7 Bitcoin in the first quarter of 2023, and 106.6 Bitcoin in the second quarter of 2023. Since the beginning of Q1, we have increased our mining capacity from 3,000 mining machines to 5,950 mining machines, generating 615 petash. We believe our stock price should better reflect the growth in our Bitcoin mining business since the beginning of 2023. A significant highlight from the recent quarter was our successful $2.6 million stalking horse bid, leading to the acquisition of Symbiont Inc.' 's assets, including its flagship product, the Assembly Financial Services Blockchain Enterprise Platform. Assembly was developed for financial institutions to handle the issuance, tracking, and management of various financial transactions, such as loans, investment contracts, and securities on a shared blockchain. This acquisition affords us entry into the smart contracts business with an advanced technology offering developed for real customers. We are currently in dialogues with technology partners to license, develop, and sell our Symbiont assets and expect to announce further developments this quarter. With respect to our legacy business, which involves offering funding to nonprofit community associations, the business has remained fairly stable since the conclusion of 2022. In summary, we find it puzzling that such a substantial discrepancy exists between our stockholders' equity of $39.9 million, equivalent to $2.72 per outstanding share as of June 30, 2023, and the recent trading price of our shares at $0.70 per share. This represents a 75% discount to book value. While we are mindful of the broader weaknesses in the stock market, especially within the microcap market that has suffered disproportionately, We remain optimistic that by diligently executing our strategic plan, mining more Bitcoin, and monetizing the Symbion assets, we can narrow this valuation gap. On that note, I'd like to turn the call over to Rick Russell, Chief Financial Officer of LM Funds, who will review the financial results for the three-month period ended June 30, 2023.