Good morning, ladies and gentlemen. And welcome to LM Funding America’s Second Quarter 2022 Financial Results and Business Update Conference Call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Mr. David Waldman of Investor Relations. David, over to you.

Good morning. And thank you for joining LM Funding America second quarter 2022 conference call. On the call with us today are Bruce Rodgers, Chief Executive Officer; and Rick Russell, Chief Financial Officer of LM Funding. This morning the company announced its operating results for the quarter ended June 30, 2022 and its financial condition 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 US Securities and Exchange Commission, which can also be accessed on the company's Web site as well as the SEC’s Web site@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 second quarter of 2022 and the company's financial condition as of June 30, 2022, we'd 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 several risks, uncertainties and assumptions, as described in the company's Form 10-K file with the US Securities and Exchange Commission on March 31, 2022. 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 those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements, its 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 other 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 the 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. With that, I'll now turn the call over to Bruce Rodgers. Please go ahead, Bruce.

Thank you, David. And thank you, everyone for joining us today, I will speak quite a bit more slowly than that. We're excited to begin to be again hosting earnings calls and look forward to hosting these calls every quarter to keep our investors regularly updated on our progress. I'm pleased to report that we are successfully executing on our bitcoin mining strategy, which began in late 2021. We've already placed nearly 2,900 of our mining machines that we committed to purchase last year at a facility with Compute North, a multistate data hosting company. In addition, we are currently on track to have over 5,000 miners operational by the end of the fourth quarter, which would provide us a capacity of approximately 504 petahash. In 2021, we negotiated a contract to purchase mining machines with our mining machine supplier containing variable pricing terms pegged to the price of bitcoin. The price of bitcoin has declined since contracting to purchase these machines, leaving us with more than $2 million in rebate credits, which would significantly improve our return on investment on these machines. Based on the current price of bitcoin, we would expect the machines we have already purchased once fully operational would generate approximately 820 bitcoins on an annualized basis, which we could hold or we can reinvest in additional miners. Overall, we believe the volatility in the market has created significant opportunities for us to acquire distressed assets at attractive prices. But regardless of bitcoin pricing, we plan to maintain our disciplined approach of opportunistically purchasing and cost effectively operating bitcoin mining machines in order to maximize long term value for our shareholders. We believe we're in the right place at the right time with a very solid and sustainable business model to capitalize on our growth opportunities…

Thanks, Bruce and good morning everyone. Revenues for three months ended June 30, 2022, totaled $234,000 compared to $328,000 for three months ended June 30, 2021, which reflects the timing of association fee payout. Operating expenses totaled $5.6 million for three months ended June 30, 2022 compared to $642,000 for the three months ended June 30, 2021. The increase is primarily attributed to increases in noncash stock compensation, as well as professional fees and other operating expenses. For the three months ended June 30, 2022, net income attributed to LM Funding shareholders was $2.8 million compared to $11.1 million for the three months ended June 30, 2021. Net income in the second quarter of 2022 included an unrealized gain on investment and equity securities of $12.2 million related to the company's interest in LMAO, partially offset by $3.6 million of noncash stock based compensation expense. The 2021 second quarter included an $8.5 million realized gain on securities and $2.5 million unrealized gain on convertible debt security, both relates to the company's investment [invoice]. Turning to our balance sheet. As Bruce mentioned earlier, we ended the quarter with $17 million of cash and $21.2 million working capital, which we believe provides a sufficient liquidity to execute on our current bitcoin mining strategy. In addition, we have no significant long term debt and ended the quarter with [stockholders] equity of $65.2 million or $4.90 per share. Finally, net cash used by operations was just $154,000 during the six months ended June 30, 2022, reinforcing our lean operations as we get ready to commit bitcoin mining operations. That completes our prepared remarks. I would now like to open the call for questions. Operator, could you please assist us with that?

Ladies and gentlemen, the floor is now open for questions [Operator Instructions]. Your first question is coming from Matthew Galinko of the Maxim Group.

Can we start with how the rebate credits work? Are they useful only on a additional purchase of equipment, is there an expiration on them, are they transferable? Help us understand how those work.

What happens is the final price of these miners are not completed until a couple of days before shipment. So we're paying the down payment and prepayments up until that time. And when it's shipped, the final price is determined, essentially on bitcoins. So we either get a credit going forward -- if that credit is let's call it, $1 million we owe for that 4%, that shipment, we get in -- the payment that we owe is $1.2 million, we only pay $200,000. So we get the immediate benefit of that credit.

And then I think you're sort of cash out about $13.5 million through the second quarter for deposits on mining equipment and hosting. Are you fully paid up for the equipment order and the hosting, or do you have more to pay on both?

Well, we had two more shipments coming into this third quarter. If the rebate credits hold up, we would really only be paying for shipping costs. So we prepaid the [competing] work deposit already and all the other machines. So really, we own the final or the final [40%] on the two remaining shipments that we have coming in. And we believe the credits from the price reduction will cover any amount that would normally be due to Bitmain, and we don't only have to be paying shipment -- shipping cost.

And it's just the spot price when they're shipping?

It's below that, but it's a -- Bitmain’s pricing is a bit -- not as clear it would be…

We don't know if our contract is similar to all contracts. So we probably shouldn't get into specifics about our contract.

I guess, maybe last question for me, and I'll jump back into queue. For those of us who are well immersed in SPAC transactions on the sponsor side, anymore or what are the next steps towards changes in value of what you have on the balance sheet?

Well, the value is essentially $6.31 per share for the Class B shares that we own…

So put differently SPACs open at 30 SPAC at a $10 price. We have recognized $6.71 of that $10 on the dSPAC on our balance sheet to date. And the delta there is recognizing the potential of a deal not closing, et cetera, et cetera. So we're one moment in time when the dSPACs before the market starts trading, it starts at 10.

Thank you. Okay, we don't appear to have any further questions in the queue. I will now hand back over for any closing remarks.

I'd like to thank everybody for participating on our second quarter 2022 conference call. The future is extremely bright for LM Funding with a number of important upcoming catalysts. As we commence our bitcoin mining operations in the second half and work towards completing the merger between our SPAC LMAO and SeaStar Medical. We appreciate the ongoing support of our shareholders and look forward to updating you on our progress as developments unfold. Thank you.

Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.