Company Overview - Safe Harbor Financial, a fintech leader, provides financial services and credit facilities for the regulated cannabis industry [1][5] - The company has facilitated over $25 billion in deposit transactions across more than 41 states and US territories with regulated cannabis markets [5] Event Participation - Terry Mendez, CEO of Safe Harbor, will participate as a featured "Conscious Capitalist" at the Psychedelic Science 2025 conference [1][2] - The conference is the largest of its kind, bringing together various stakeholders in the psychedelic and cannabis industries [2] Workshop Details - The Conscious Capitalism Workshop, likened to a "Shark Tank" format, focuses on mentorship and allows startups to pitch ideas to impact investors [3] - Mendez will provide real-time feedback and insights on values-based business building in regulated sectors [3][4] Company Goals - Safe Harbor aims to provide cannabis operators with affordable access to expertise and solutions, enhancing operational efficiency and cost control [5]

Core Insights - Safe Harbor Financial, a fintech leader in the cannabis industry, is participating in the Benzinga Cannabis Capital Conference from June 8-10, 2025, in Chicago [1][2] - The CEO, Terry Mendez, will be part of a panel discussing financial resilience in the cannabis market on June 9, 2025 [2] - Safe Harbor has facilitated over $25 billion in deposit transactions for cannabis-related businesses across more than 41 states and territories [4] Company Overview - Safe Harbor provides compliance, monitoring, and validation services to financial institutions serving the cannabis, hemp, and CBD sectors [4] - The company emphasizes accountability, transparency, and risk mitigation while adhering to Bank Secrecy Act obligations [4] - Safe Harbor aims to foster long-term partnerships and drive growth in local economies through its services [4]

Core Insights - Safe Harbor Financial has formed a strategic partnership with Bennett Thrasher to enhance financial compliance and advisory services for cannabis businesses in regulated markets [1][2] - The collaboration aims to address financial challenges faced by operators in the cannabis industry, providing essential tools and guidance for growth [2][3] Company Overview - Safe Harbor Financial is a fintech leader that facilitates financial services and credit facilities specifically for the cannabis industry, having facilitated over $25 billion in deposit transactions across more than 41 states [8] - Bennett Thrasher is a prominent accounting and advisory firm with over 45 years of experience, offering a range of services including tax, audit, and advisory [4] Services Offered - The partnership provides a comprehensive suite of financial services tailored for cannabis businesses, including annual audits, tax preparation, ongoing financial advisory, corporate valuations, M&A support, and CFO services [6][7] - These services are designed to improve audit readiness, enhance credibility with stakeholders, and provide strategic financial guidance [7] Industry Context - Operators in the cannabis industry face unique financial challenges, such as navigating the complexities of 280E tax law and limited access to traditional advisory services [3] - The partnership aims to fill a critical gap in financial infrastructure, enabling cannabis businesses to operate with greater efficiency and confidence [2][3]

PART I – FINANCIAL INFORMATION [Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited Q1 2025 financial statements reveal significant deterioration, including a net loss and negative operating cash flow, raising substantial doubt about going concern [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets significantly decreased to $6.66 million, and the stockholders' deficit worsened to -$16.95 million Condensed Consolidated Balance Sheet Highlights (as of March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | 931,397 | 2,324,647 | | Total Assets | 6,655,102 | 13,218,287 | | Total Liabilities | 23,604,509 | 25,506,301 | | Total Stockholders' Deficit | (16,949,407) | (12,288,014) | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, the company reported a net loss of $0.31 million, a significant reversal from prior-year net income, driven by a 52% revenue decline Statement of Operations Summary (For the three months ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Revenue | 1,932,352 | 4,050,799 | | Total operating expenses | 3,410,275 | 3,725,858 | | Operating (loss)/income | (1,477,923) | 324,941 | | Net (loss)/income | (313,627) | 2,049,676 | | Diluted (loss)/income per share | (0.11) | 0.73 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash used in operating activities was $1.14 million, a significant reversal from prior-year cash provided, reducing cash and equivalents to $931,397 Cash Flow Summary (For the three months ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | (1,140,730) | 1,475,123 | | Net cash provided by investing activities | 3,245 | 3,014 | | Net cash used in financing activities | (255,765) | (740,544) | | Net (decrease)/increase in cash and cash equivalents | (1,393,250) | 737,593 | | Cash and cash equivalents – end of period | 931,397 | 5,626,362 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail critical accounting policies, a significant 'going concern' warning, impairment charges, PCCU note amendments, revenue declines, and material weaknesses in internal controls - The company specializes in providing financial solutions, including banking and lending access, for the cannabis industry through partnerships with financial institutions[26](index=26&type=chunk)[27](index=27&type=chunk) - There is **substantial doubt** about the Company's ability to continue as a going concern, with **cash of $931,397** projected to support operations only through September 30, 2025, alongside a **working capital deficit of $6.7 million** and an **operating loss of $1.5 million** for the quarter[37](index=37&type=chunk)[41](index=41&type=chunk) - Management's plans to address the going concern issue include seeking strategic partnerships, renegotiating debt, using stock-based compensation, and exploring new financing, but the success of these plans is uncertain[43](index=43&type=chunk) - On April 7, 2025, Nasdaq notified the company of non-compliance with listing requirements due to a **stockholders' equity deficit of $12.3 million**, below the **$2.5 million** minimum[42](index=42&type=chunk)[102](index=102&type=chunk) - The company recorded a **full goodwill impairment charge of $6.06 million** and full impairment of finite-lived intangible assets for the fiscal year ended December 31, 2024, with no impairment in Q1 2025[63](index=63&type=chunk)[65](index=65&type=chunk)[67](index=67&type=chunk) - Effective December 31, 2024, the company's indemnification liability to **PCCU** for loan losses was eliminated under an amended agreement, revising the fee and interest income structure[75](index=75&type=chunk)[86](index=86&type=chunk) - Subsequent to the quarter, the **CFO and three board members resigned** for personal reasons, and a new director and audit committee chair was appointed[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025's poor results to significant revenue declines, especially in loan interest and investment income, coupled with increased professional services costs, raising substantial doubt about going concern Revenue Breakdown Q1 2025 vs Q1 2024 | Revenue Type | Q1 2025 ($) | Q1 2024 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Account fee income | 1,072,465 | 1,620,994 | (548,529) | (33.84)% | | Investment income | 300,435 | 773,819 | (473,384) | (61.18)% | | Loan interest income | 540,222 | 1,636,756 | (1,096,534) | (66.99)% | | **Total Revenue** | **1,932,352** | **4,050,799** | **(2,118,447)** | **(52.30)%** | Operating Expenses Q1 2025 vs Q1 2024 | Expense Type | Q1 2025 ($) | Q1 2024 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Compensation and employee benefits | 1,342,261 | 2,280,038 | (937,777) | (41.13)% | | General and administrative expenses | 990,826 | 984,220 | 6,606 | 0.67% | | Professional services | 1,016,182 | 460,950 | 555,232 | 120.45% | | **Total Operating Expenses** | **3,410,275** | **3,725,858** | **(315,583)** | **(8.47)%** | - The decrease in loan interest income is attributed to a revised loan yield allocation formula under the **Amended PCCU CAA**[181](index=181&type=chunk)[182](index=182&type=chunk) - Professional services expenses increased significantly due to higher legal fees, including a **$300,000 accrual** for a potential employment-related legal settlement[187](index=187&type=chunk) Adjusted EBITDA Reconciliation (Non-GAAP) | Metric | Three months Ended March 31, 2025 ($) | Three months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Net (loss)/income | (313,627) | 2,049,676 | | EBITDA | (199,400) | 1,960,672 | | **Adjusted EBITDA** | **(1,227,243)** | **1,087,360** | - The company's **cash of $931,397** as of March 31, 2025, is insufficient to fund operations for the next 12 months, raising **substantial doubt** about its ability to continue as a going concern[217](index=217&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, SHF Holdings, Inc. is not required to provide information regarding market risk - The Company is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide information regarding market risk[238](index=238&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to multiple material weaknesses in internal control over financial reporting - Management concluded that disclosure controls and procedures were not effective as of March 31, 2025[240](index=240&type=chunk)[243](index=243&type=chunk) - Multiple material weaknesses were identified, including deficiencies in **Revenue Recognition** (PCCU calculations), **Financial Instruments** (Amended PCCU Note classification), **Going Concern** assessment, **Information Technology** access controls, **Stock Compensation** forfeiture recording, and **Forward Purchase Receivables** reclassification and valuation[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[250](index=250&type=chunk)[252](index=252&type=chunk)[254](index=254&type=chunk) - The company is implementing remediation plans for these weaknesses, including developing new tools, enhancing monthly review processes, and strengthening IT access controls[246](index=246&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[253](index=253&type=chunk)[255](index=255&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including the Abaca case, but management does not anticipate a material adverse effect from their final disposition - The company is subject to various legal proceedings; details on the Abaca legal case are in Note 12 of the financial statements[260](index=260&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, SHF Holdings, Inc. is not required to provide information for this item - The Company is a smaller reporting company and is not required to provide the information otherwise required by this Item 1A[261](index=261&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period - None[262](index=262&type=chunk) [Defaults Upon Senior Securities](index=54&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report for the period - None[263](index=263&type=chunk) [Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[264](index=264&type=chunk) [Other Information](index=54&type=section&id=Item%205.%20Other%20Information) During Q1 2025, no director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No director or officer adopted or terminated any "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended March 31, 2025[265](index=265&type=chunk) [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including merger agreements, corporate governance documents, and Sarbanes-Oxley certifications - A list of exhibits filed with the report is provided, including merger agreements, corporate governance documents, and executive certifications[267](index=267&type=chunk)[268](index=268&type=chunk)

Core Insights - SHF Holdings, Inc. (Safe Harbor Financial) has formed a strategic partnership with FundCanna to enhance financial services for the cannabis industry, focusing on accessible funding and compliant banking solutions [1][2][3] Company Overview - Safe Harbor Financial is a fintech leader providing financial services to the regulated cannabis industry, having facilitated over $25 billion in deposit transactions across more than 41 states and U.S. territories [7] - FundCanna specializes in providing flexible capital solutions tailored for cannabis operators, offering customizable and reliable funding products [4][5] Partnership Details - The partnership allows FundCanna to refer clients to Safe Harbor for banking services, while Safe Harbor will refer clients to FundCanna for various credit-based solutions [2][3] - This collaboration aims to address the financial challenges faced by cannabis operators, particularly in light of regulatory hurdles and limited access to traditional capital [3] Industry Context - The cannabis industry continues to experience significant limitations from traditional financial institutions, necessitating innovative financial solutions [3] - The partnership is positioned to provide an end-to-end solution for cannabis businesses, enhancing their ability to manage cash flow and pursue growth opportunities [3]

Revenue and Income - For the year ended December 31, 2024, total revenue decreased by 13.21% to $15,242,560 compared to $17,562,903 in 2023[190] - Account fee income declined by 25.16% to $6,447,201 from $8,614,945, primarily due to a reduction in the number of accounts and average monthly ending deposit balance[190] - Loan interest income increased significantly by 122.90% to $6,625,576 compared to $2,972,434 in 2023[190] - Investment income from PCCU decreased from $5,803,114 in 2023 to $1,903,422 in 2024, resulting in a reduction of investment hosting fees from $1,445,517 to $457,105[196] - The revenue from the Commercial Alliance Agreement for the year ended December 31, 2024, was $12,601,271, compared to $10,761,245 for the year ended December 31, 2023, reflecting an increase of approximately 17.1%[267] Account and Deposit Metrics - Average monthly ending deposit balance decreased by 42.49% to $117,847,512 from $204,923,090[182] - The average active accounts dropped by 18.78% to 757 from 932[182] - The average account balance decreased by 29.16% to $155,728 from $219,835[182] - CRB related deposits as of December 31, 2024, were $116,064,487, a decrease from $129,350,998 as of December 31, 2023[267] Expenses and Financial Performance - Adjusted EBITDA for 2024 was $2,888,868, down from $3,607,681 in 2023, attributed to decreased account fee income and higher professional expenses[177] - Total operating expenses were reduced by $15,959,906, or 41.68%, from $38,293,952 in 2023 to $22,334,046 in 2024[200] - The total operating expenses for the Commercial Alliance Agreement in 2024 were $1,052,693, down from $2,056,303 in 2023, indicating a decrease of approximately 48.9%[268] Cash Flow and Working Capital - Cash and cash equivalents decreased from $4,888,769 in 2023 to $2,324,647 in 2024[210] - The Company generated $430,477 in cash from operations in 2024, an improvement from cash used of $832,144 in 2023[212] - The Company reported a net working capital deficit of $983,833 at the end of 2024, compared to a deficit of $135,355 at the end of 2023[219] Debt and Obligations - Interest expense decreased by $561,346, from $1,094,736 in 2023 to $533,390 in 2024, primarily due to restructuring of obligations[206] - The Company has renegotiated its senior secured loan with PCCU, deferring principal payments for February and March 2025[222] - The Company modified the outstanding principal of $10,748,408 with an interest rate of 4.25% per annum, unlocking $6,437,050 in cash flow, significantly improving liquidity[223] - As of December 31, 2024, the Company reclassified short-term obligations of the PCCU Note totaling $2,883,167 as non-current liabilities[224] Impairments and Financial Reporting - The Company recorded a full goodwill impairment charge of $6.06 million due to the fair value of the asset group being lower than its carrying amount[243] - Impairment charges of $0.05 million for market-related intangible assets, $0.05 million for customer relationships, and $2.99 million for developed technologies were also recorded[244] - The Company identified material weaknesses in internal controls over financial reporting as of December 31, 2024[251] Strategic Initiatives and Future Outlook - The company anticipates a reversal of the trend in account numbers as it focuses on its lending program[182] - The Company has implemented stock-based compensation to attract talent, alongside cost reductions through lower headcount and operational spending[225] - Management has substantial doubt about the Company's ability to continue as a going concern for at least twelve months from the issuance of the financial statements[226] - The Amended Commercial Alliance Agreement extends the term through December 31, 2028, with automatic two-year renewal periods[263] - Under the Amended CAA, the Company will pay a single asset hosting fee calculated as 0.01 multiplied by the average daily balance of account relationships[266] - The Company is classified as an emerging growth company, allowing it to delay adopting new accounting standards until they apply to private companies[250] Compliance and Regulatory Matters - The company successfully navigated over 16 state and federal banking exams, ensuring compliance in a regulated environment[167] - The Company’s obligations under the PCCU CAA include paying 25% of investment earnings as a hosting fee to PCCU[262] - The deferred consideration from the Abaca acquisition is accounted for as a derivative liability, with fair value assessments influenced by stock price and market conditions[249] - The Company utilizes a Monte-Carlo Simulation for the valuation of forward purchase derivatives, maintaining the established valuation for 2023 and 2024[241]

Core Insights - Safe Harbor Financial reported positive Adjusted EBITDA for the last three years, with Adjusted Working Capital at approximately $2 million [1][7] - The company modified its Commercial Alliance Agreement with Partner Colorado Credit Union, allowing for a growth strategy under new CEO Terry Mendez [1][5] - Loan Interest Income saw significant increases of 82% in Q4 2024 and 123% for the full year compared to the previous year [6][8] Financial Performance - Q4 2024 revenue was approximately $3.7 million, a decrease from $4.5 million in Q4 2023, but an increase from $3.5 million in Q3 2024 [7] - Full-year 2024 revenue totaled approximately $15.2 million, down from $17.6 million in 2023, primarily due to reduced deposit activity [11] - Operating expenses for 2024 decreased over 42% to approximately $22.3 million from $38.3 million in 2023 [12] Operational Highlights - The company processed over $25 billion in cannabis-related funds, marking a significant milestone on its 10th anniversary [8][13] - Safe Harbor originated a $1.5 million secured credit facility for a Missouri cannabis operator, enhancing its role as a financial partner in the cannabis sector [8][13] - The Amended Commercial Alliance Agreement with PCCU extends the term through December 31, 2028, providing financial flexibility [5][9] Adjusted Metrics - Adjusted EBITDA for 2024 was approximately $2.9 million, compared to $3.6 million in 2023 [7][29] - The company reported a net loss of approximately $48.3 million for 2024, which includes significant non-cash expenses related to goodwill and intangible asset impairments [15][20] - Adjusted Working Capital, after accounting for non-cash liabilities, was calculated at approximately $2 million [31]

Financial Performance - Adjusted EBITDA for Q4 2024 was positive at $63,581, compared to $1.3 million in Q4 2023[4] - Total revenue for Q4 2024 was approximately $3.7 million, a decrease from approximately $4.5 million in Q4 2023, while full-year revenue was approximately $15.2 million, down from $17.6 million in 2023[4][10] - The company recognized a net loss of approximately $48.3 million for the full year 2024, compared to a net loss of approximately $17.3 million in 2023[11] - Revenue for the year ended December 31, 2024, was $15,242,560, a decrease of 13.4% from $17,562,903 in 2023[17] - Net loss for 2024 was $48,319,475, compared to a net loss of $17,279,847 in 2023, representing an increase in loss of 179.5%[17] - Basic and diluted net loss per share for 2024 was $(17.43), compared to $(8.12) in 2023, indicating a significant increase in loss per share[17] - Adjusted EBITDA for 2024 was $2,888,868, a decrease of 19.9% from $3,607,681 in 2023[25] Operating Expenses - Operating expenses for the full year 2024 decreased over 42% to approximately $22.3 million, compared to $38.3 million in 2023[11] - Total operating expenses decreased to $22,334,046 in 2024 from $38,293,952 in 2023, reflecting a reduction of 41.6%[17] - Compensation and Employee Benefits expense decreased 32% to approximately $1.4 million in Q4 2024 compared to $2.1 million in Q4 2023[4] - The company incurred interest expense of $533,390 in 2024, a decrease of 51.2% from $1,094,736 in 2023[17] Cash and Working Capital - Cash and cash equivalents as of December 31, 2024, were $2.3 million, down from $4.9 million at the end of 2023[12] - Adjusted Working Capital was approximately $2 million as of December 31, 2024[4] - The company reported a net working capital deficit of $983,833 at the end of 2024, but adjusted working capital was $2,009,784 after accounting for non-cash liabilities[27] - Cash and cash equivalents at the end of 2024 were $2,324,647, down from $4,888,769 at the end of 2023, reflecting a decrease of 52.5%[21] Debt and Tax Benefits - A modification of the debt obligation with Partner Colorado Credit Union unlocked over $6 million in cash flow over the next two years[7] - The company recognized a deferred tax benefit of $43,859,686 in 2024, compared to a tax benefit of $(1,829,701) in 2023[25] - Impairment of goodwill in 2024 was $6,058,000, down from $13,208,276 in 2023, showing a reduction of 54.1%[17] Business Operations and Market Position - The company processed over $25 billion in cannabis-related funds, marking a significant milestone on its 10th anniversary[6] - Safe Harbor has facilitated over $25 billion in deposit transactions for cannabis-related businesses across more than 41 states and US territories[28] - The company provides compliance, monitoring, and validation services to financial institutions serving the cannabis industry[28] - Safe Harbor aims to drive growth in local economies and foster long-term partnerships through its services[28] - The company emphasizes high standards of accountability, transparency, and risk mitigation measures in line with Bank Secrecy Act obligations[28] - Future growth prospects and market size for Safe Harbor are subject to trends in the cannabis industry and potential changes in U.S. and state laws[29] - Safe Harbor's projected financial and operational performance will be compared to its competitors and historical performance[29] - The company may introduce new product and service offerings in the future[29] - Safe Harbor's securities may be affected by volatility in capital markets[29] - The company does not undertake any duty to update forward-looking statements made in its communications[29] - Contact information for investor relations is provided for further inquiries[30]

Company Overview - SHF Holdings, Inc., operating as Safe Harbor Financial, is a fintech leader providing financial services and credit facilities to the regulated cannabis industry [1][4] - The company has facilitated over $25 billion in deposit transactions across more than 41 states and U.S. territories with regulated cannabis markets over the past decade [4] Leadership Announcement - Michael (Mike) Regan has been appointed as the Head of Investor Relations and Data Science at Safe Harbor [1][2] - Regan has a strong background in investment analysis and product innovation, with experience at Credit Suisse, Deutsche Bank, and in the legal cannabis sector since 2019 [2][3] Strategic Focus - Regan will focus on enhancing investor understanding of the company's growth initiatives and developing innovative products using Safe Harbor's extensive databases [2][3] - The company aims to advance its growth strategies through programs such as Safe Harbor Protects, Safe Harbor Lends, Safe Harbor Connects, and Safe Harbor Enables [3]

Core Viewpoint - Safe Harbor Financial, under the leadership of newly appointed CEO Terry Mendez, aims to leverage its position as a fintech leader in the regulated cannabis industry to develop innovative financial solutions that address industry-specific challenges [1][2]. Group 1: Company Overview - Safe Harbor has processed over $25 billion in cannabis-related funds through its network of partner banks, marking a significant achievement in its 10-year history [3]. - The company provides compliance, monitoring, and validation services to financial institutions, facilitating traditional banking services for cannabis-related businesses across more than 41 states and U.S. territories [10]. Group 2: Financial Strategy - Safe Harbor successfully negotiated a debt modification with Partner Colorado Credit Union (PCCU), unlocking over $6 million in cash and extending the due date to October 2030 while maintaining a 4.25% interest rate [4]. - This debt modification reflects PCCU's confidence in Safe Harbor's strategy and enhances the company's financial flexibility to pursue growth opportunities [4]. Group 3: Future Plans - The long-term vision for Safe Harbor is to transform from a specialized banking services provider into a multi-faceted fintech platform, leveraging industry relationships and regulatory expertise to create greater value for clients and shareholders [9]. - A Special Shareholder Meeting is scheduled for March 13, 2025, to discuss the company's go-forward strategy and a proposal for a reverse stock split to comply with Nasdaq listing requirements [5][6].