LM FUNDING AMERICA, INC. 8-K

What Happened

• LM Funding America, Inc. (ticker: LMFA) filed an 8-K reporting that Nasdaq notified the company on July 7, 2026 that it has not yet regained compliance with the $1.00 bid-price requirement (Nasdaq Listing Rule 5550(a)(2). Nasdaq granted an additional 180-calendar-day cure period through January 4, 2027.
• The company announced and filed a Certificate of Amendment on July 9, 2026 to effect a reverse stock split (ratio not specified in the summary) and issued a press release the same day announcing the action. Trading of LMFA continues on the Nasdaq Capital Market while the compliance period remains in effect.

Key Details

• Initial noncompliance notice: received January 7, 2026 for 30 consecutive business days with closing bid below $1.00 (through January 6, 2026).
• Second notice: received July 7, 2026; Nasdaq granted an additional cure period until January 4, 2027 because LMFA met other listing standards (market value of publicly held shares) except the bid-price rule.
• Cure condition: regain compliance by having a closing bid of at least $1.00 per share for a minimum of 10 consecutive business days, or effect the reverse stock split.
• If not cured by January 4, 2027, Nasdaq will notify LMFA of delisting; the company may appeal but success is not assured.

Why It Matters

• The company is taking a formal step (reverse stock split) to raise its per-share price and try to meet Nasdaq’s $1.00 listing requirement. This is a common remedy but can affect share count and per-share metrics.
• Trading is not immediately affected, but failure to regain compliance by January 4, 2027 could lead to delisting, which would materially affect liquidity and where the stock trades. Investors should monitor the closing price, company announcements, and any details on the reverse split ratio and effective date.