LMP Automotive Announces Delay Of Q2 Financial Results

Delay of its Second Quarter 2022 Financial Results

As LMP continues its evaluation of (i) the proper identification and elimination of intercompany transactions, (ii) estimates of chargeback reserves for finance and insurance products and (iii) various financial presentation matters related to the Company's business, in each case, in the context of its ongoing preparation of its Annual Report on Form 10-K for the year ended December 31, 2021, LMP will be unable to timely report its financial results for the second quarter of 2022.

There is a significant change in our results of operations in the second fiscal quarter of 2022 when compared to the results from the corresponding period in the prior year, primarily as a result of acquisitions that closed during the course of calendar year 2021. During the first ten months of 2021, the Company acquired a majority interest in 15 new vehicle franchises, comprising 8 new dealership locations. The Company also acquired a majority interest in LTO Holdings, LLC, a Connecticut based automotive leasing company with an associated collision center that was subsequently disposed during the fourth quarter. These acquisitions transformed the Company, enabling it to offer a wide array of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, finance and insurance products and automotive repair and maintenance.

The following is an approximation of these changes:

• Revenue for the quarter ended June 30, 2022 increased approximately $24 million when compared to the same period a year ago; and

• Gross Profit for the quarter ended June 30, 2022 increased approximately $6 million when compared to the same period a year ago.

The following are preliminary estimates of our performance for the quarter ending June 30, 2022:

• Revenue to be approximately $164 million
• Overall Gross Profit to be approximately $32 million
• Cash at approximately $36 million

Year to Date 2022 Financial Update

• Year to date, we are witnessing robust gross profits and revenue growth, Revenue and gross profits for the quarter ended June 30, 2022 are the highest in the Company's history
• Cash on August 1, 2022 was approximately $37 million, our highest on record

Sam Tawfik, the Company's Chairman and Chief Executive Officer commented, "With our current cash position which continues to build as we generate profits and modest leverage, we are committed to responsibly managing our business and prudently creating value for our shareholders."

LMP intends to both release its financial results for 2021 and file its Annual Report on Form 10-K and release its financial results for the first quarter of 2022 and file its Periodic Report on Form 10-Q for the first and second quarters of 2022 as soon as reasonably practicable.